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GS Paper: GS2

  • What the 16th Finance Commission needs to do differently

    What’s the news?

    • India’s fiscal landscape, transformed by GST, calls for a comprehensive reevaluation of fiscal federalism to address tax-sharing challenges and regional disparities.

    Central idea

    • The 122nd Constitutional Amendment of 2016 and the subsequent introduction of the GST regime in 2017 reshaped India’s fiscal landscape, replacing production-based taxation with a consumption-oriented approach. This shift highlights the importance of reevaluating fiscal federalism as the 16th Finance Commission forms, addressing tax-sharing principles and regional balance in taxation.

    What is meant by fiscal federalism?

    • Fiscal federalism refers to the division of financial responsibilities and resources between different levels of government within a federal or decentralized system.
    • It encompasses the principles and mechanisms by which revenues are generated, collected, shared, and spent by various levels of government, typically at the national (central) and subnational (state or regional) levels.
    • India operates as a federal republic with a multi-tiered system of governance, and fiscal federalism is an essential aspect of this arrangement.

    Potential challenges faced by the 16th Finance Commission

    • Revisiting Tax-sharing Principles: The 16th Finance Commission faces the challenge of reexamining and redesigning tax-sharing principles due to the shift from production-based to consumption-based taxation under the GST regime.
    • Efficient Tax Collection: Variations in the cost of tax collection (ranging from 7 to 10 percent) have emerged as a challenge, given the joint collection of taxes by the Union and states under GST.
    • Redesigning Horizontal Distribution: The Commission must address the challenge of redesigning criteria for distributing the divisible pool among states to ensure equitable distribution of tax revenues and grants.
    • Reviewing the Compensation Scheme: The necessity, viability, and desirability of the GST compensation scheme must be reviewed by the Commission, considering the performance of GST revenues over the past six years.
    • Institutional Relationships: Establishing formalized institutional relationships between the GST Council and the Finance Commission presents a challenge in the evolving federal financial structure.

    The need for a comprehensive reevaluation of India’s fiscal federalism

    • Shift to the GST Regime: The introduction of the Goods and Services Tax (GST) regime represents a monumental shift in India’s taxation system. This change from a production-based tax system to a consumption-based one necessitates a reevaluation of fiscal federalism to align with this new tax paradigm.
    • Impact on Vertical and Horizontal Imbalances: The transition from a production-based to a consumption-based tax system has the potential to rectify historical vertical imbalances in tax revenue distribution. However, it also introduces new horizontal imbalances among states due to varying consumption patterns and economic development levels.
    • Equitable Resource Allocation: To ensure a fair distribution of resources among states, it is imperative to revisit the criteria for resource allocation. The reevaluation should consider the principles of fiscal federalism and the specific needs of each state within the GST framework.
    • Efficiency and Transparency: An updated fiscal federalism framework can lead to increased efficiency and transparency in revenue collection, sharing, and utilization. This can help streamline fiscal processes and reduce inefficiencies.
    • Adaptation to Changing Economic Realities: India’s economic landscape is dynamic, with evolving challenges and opportunities. A comprehensive reevaluation allows fiscal policies to adapt to these changes, ensuring they remain relevant and effective.
    • Fiscal Responsibility: To ensure fiscal sustainability, a reevaluation should assess the long-term fiscal health of both the central government and state governments. It can recommend measures to manage fiscal deficits and public debt responsibly.

    Way forward

    • Mandate of the 16th Finance Commission: The government should promptly constitute the 16th Finance Commission with a clear mandate to reexamine the tax-sharing principles and other related fiscal matters.
    • Define Comprehensive Terms of Reference (ToR): The ToR for the 16th Finance Commission should be carefully formulated to guide the Commission in addressing the challenges posed by the GST regime and its impact on fiscal federalism.
    • Pooling of Indirect Tax Sovereignty: Given the significant changes in the tax landscape, the Commission should comprehensively assess the pooling of indirect tax sovereignty between the Union and states under the GST system.
    • Redesign Tax-sharing Principles: The Commission should undertake a thorough review and redesign of tax-sharing principles, especially with regard to the divisible pool, unsettled IGST, and settlement frequencies, in alignment with the GST structure.
    • Distribution Criteria Reevaluation: Reevaluate the criteria for distributing the divisible pool among states, particularly for equalizing grants, to ensure that they align with the new consumption-based tax system and address regional imbalances effectively.
    • Formalize Institutional Relationships: Formalize and strengthen the institutional relationship between the GST Council and the Finance Commission to facilitate seamless coordination, information exchange, and alignment of fiscal policies.
    • Engage with Stakeholders: Engage in extensive consultations with relevant stakeholders, including state governments, economists, and experts, to gather diverse perspectives and insights.

    Conclusion

    • The 16th Finance Commission must reshape India’s fiscal federalism for the GST era by redefining the divisible pool, improving tax collection efficiency, revisiting distribution criteria, reviewing compensation, and formalizing institutional relationships. Flexible terms of reference are crucial for these essential reforms to align the fiscal system with the new tax paradigm and promote equitable growth.

    Also read:

    Finance Commission and the Challenges of Fiscal Federalism

  • Disentangling the 2030 global renewable energy target

    What’s the news?

    • The 28th Conference of Parties (COP28) of the UNFCCC is scheduled to take place in Dubai from November 30 to December 12.

    Central idea

    • The upcoming COP28 of the UNFCCC has put forth a bold proposal to triple global renewable energy capacity by 2030. This aspiration is echoed in the G-20 declaration, albeit in a less committed manner. While the idea of such a target is appealing, a deeper examination raises significant concerns.

    Current State of Renewable Energy Capacity

    • As of 2021, renewable energy sources (RES) accounted for 39% of the global installed capacity for electricity generation, totaling 3026 gigawatts (GW). However, their contribution to total electricity generation stood at only 28%.
    • Among RES, hydropower constituted over half, with solar and wind energy contributing about 36%.
    • To achieve the goal of tripling renewable energy capacity by 2030, we would need to add approximately 6,000 GW of RES capacity, primarily from solar and wind sources.

    Regional Disparities

    • Electricity demand growth varies significantly among countries at different stages of development.
    • Developing nations like China and India experience rapid electricity demand growth, with annual consumption rates of 6.6% and 6.3%, respectively, between 2010 and 2019.
    • In contrast, the European Union (EU) saw a decline of 0.3%, and the United States experienced minimal 0.12% growth.
    • Only 21% of electricity in the U.S. is sourced from RES, including hydro and biomass. In the EU, 37% of electricity comes from RES.
    • The U.S. would need only about 26 GW of new RE capacity to meet additional demand. Its share of the global tripling target of 6000 GW by 2030 would be a mere 0.4%.
    • In contrast, India would require about 717 GW of RE capacity, constituting a 12% share of the target.

    Challenges in achieving the goal of tripling global renewable energy capacity

    • Timeline for Capacity Addition: Tripling renewable energy (RE) capacity by 2030 presents a significant challenge in terms of the timeline for constructing and operationalizing renewable energy projects.
    • Scale of Electricity Generation: Achieving the target of tripling RE capacity would require generating approximately 13,000 terawatt-hours (TWh) of electricity from renewable sources alone.
    • Global Electricity Demand Growth: Global electricity demand has been growing at an average rate of 2.6% (pre-COVID-19 decade average). Meeting the tripling target implies that renewable energy would need to account for 38% of total global electricity production. Sustaining such growth in renewable energy production in line with demand is a complex task.

    What are the issues with the global RES target?

    • Lack of Transparency in Origin: The origin of the global RES target proposed at COP28 lacks transparency. It appears to draw inspiration from the International Renewable Energy Agency (IRENA), but without clear documentation.
    • Inequitable Regional Distribution: The proposed target, as per the IRENA analysis, suggests that most of the non-RES capacity to be added by 2030 would be in developing regions.
    • Absolute Projections vs. Relative Targets: Absolute projections of installed RES capacity may not align with the growth in energy demand. Relative targets, which are less dependent on demand growth matching expectations, are considered more flexible and robust.
    • Dependency on Non-RES Capacity: Achieving a substantial increase in RES capacity may require corresponding non-RES capacity for grid stability and reliable energy supply.
    • Lack of Viable Storage Options: There is currently a lack of viable storage options at the scale envisioned by ambitious RES targets. Energy storage is essential to ensuring a stable energy supply when renewable sources are not generating electricity.
    • Challenges in Building National Grids: Scaling up RES capacity to such high levels would require extensive national grid development. Finding the necessary resources for these grids is challenging, particularly given the existing difficulties in meeting climate finance targets.
    • Targets for Developed Nations: The most vocal proponents of the global RES target do not have corresponding domestic targets. For instance, while India has committed to ambitious goals internationally, countries like the United States and the European Union lack absolute targets domestically. Their targets are often market signals rather than government-intervened commitments.

    Way forward

    • Transparent Origin of Targets: Ensure transparency in the origin and basis of global renewable energy targets, such as those proposed at COP28. Clearly communicate how and why these targets were formulated.
    • Equitable Distribution of Responsibility: Advocate for an equitable sharing of responsibility among nations. Developed countries should commit to absolute domestic targets that align with their global climate commitments.
    • Relative Targets: Consider using relative targets alongside absolute targets. Relative targets are less dependent on specific demand growth projections, providing greater flexibility.
    • Support for Developing Nations: Provide financial and technical assistance to developing countries to help them meet their renewable energy targets. This includes support for grid development, energy storage, and renewable energy infrastructure.
    • Fossil Fuel Phase-Out: Encourage developed nations to accelerate the phase-out of fossil fuel-based electricity production. This step is vital for reducing carbon emissions and creating space for renewable energy capacity.
    • Investment in Energy Storage: Invest in research, development, and deployment of energy storage solutions at the scale required by ambitious renewable energy targets. Reliable energy storage is essential for grid stability.
    • Climate Finance Commitments: Commit to fulfilling climate finance targets, including the annual $100 billion target, to support climate-related projects across sectors, including renewable energy.
    • Policy Alignment: Align domestic policies with international climate agreements, such as the Paris Agreement. Governments should implement policies that promote renewable energy growth and the phase-out of fossil fuels.

    Conclusion

    • As COP28 approaches, developing nations, especially India, should endorse the global tripling of the RES capacity target only if developed nations commit to absolute, equitable, and commensurate targets domestically. Achieving equity in responsibility is crucial to the success of the global renewable energy transition.

  • Explained: Special Session of Parliament

    Central Idea

    • The Union government of India has announced a special session of Parliament to be held in the newly constructed building.
    • This session holds particular significance as it marks the first official use of the new parliamentary facility.

    Special Session of Parliament: An Overview:

    • A special session of Parliament refers to a unique meeting convened outside of the regular parliamentary sessions.
    • The term “special session” is not explicitly mentioned in the Constitution of India.
    • Its convening is carried out as per the provisions of Article 85(1) of the Constitution.

    Procedure of calling such Session

    • Article 85(1) of the Indian Constitution stipulates the procedure for summoning Parliament.
    • This constitutional provision grants the President the authority to call Parliament into session, including special sessions, as deemed necessary.
    • It says:

    “The President shall from time to time summon each House of Parliament to meet at such time and place as he/she thinks fit, but six months shall not intervene between its last sitting in one session and the date appointed for its first sitting in the next session.”

    Historical Context of Special Sessions:

    Special sessions of Parliament have varied in their focus and format over the years:

    [A] Special Sessions with Debates:

    • 2015: A special session commemorated Dr. B.R. Ambedkar’s 125th birth anniversary.
    • 1997: Parliament convened to mark India’s 50th anniversary of independence.
    • 1962: The agenda included a discussion on the India-China war situation.

    [B] Midnight Special Sessions (Without Debates):

    • 1972: A session was held to celebrate 25 years of India’s independence.
    • 1992: A special session marked the 50th anniversary of the Quit India Movement.
    • 2017: A session was convened to mark the rollout of the Goods and Services Tax (GST).

  • President launches Ayushman Bhav Campaign

    Central Idea

    • The President of India, Mrs. Murmu, virtually launched the Ayushman Bhav campaign and the Ayushman Bhava portal.

    Ayushman Bhav Campaign  

    • The Ayushman Bhav campaign aims to deliver healthcare services to the remotest corners of India, playing a pivotal role in achieving the campaign’s ambitious objectives.
    • It is designed to ensure that every individual receives essential health services, aligning with the overarching goals of Ayushman Bhav.
    • The campaign’s goals, include-
    1. Facilitating access to Ayushman cards
    2. Generating ABHA IDs
    3. Raising awareness about critical health schemes and disease conditions, such as non-communicable diseases, tuberculosis, and sickle cell disease.

    Three Components of Ayushman Bhav:

    • President highlighted the three integral components of Ayushman Bhav:
    1. Ayushman – Apke Dwar 3.0
    2. Ayushman Melas at Health and Wellness Centres (HWC) and Community Health Clinics (CHC)
    3. Ayushman Sabhas in every village and panchayat
    • These components are expected to accelerate the delivery of healthcare services at grassroots levels, contributing to the creation of a healthier nation.

    Back2Basics: Ayushman Bharat Scheme

    Launch Year 2018
    Objective Universal Health Coverage and Financial Protection
    Components 1. Pradhan Mantri Jan Arogya Yojana (PM-JAY)

    2. Health and Wellness Centers (HWCs)
    Target Beneficiaries Economically disadvantaged families, rural populations, vulnerable communities
    Coverage Health insurance for eligible families, covering various medical expenses
    Services Offered Comprehensive healthcare services, including preventive, promotive, and curative care
    Impact Improved health indicators, reduced financial burden on beneficiaries, enhanced healthcare infrastructure
    Vision To make healthcare a fundamental right for all Indian citizens

  • Draft UN Cyber Crime Convention

    Central Idea

    • The Union Home Ministry recently reviewed the draft of the UN Cyber Crime Convention.
    • The purpose of this review was to assess the necessary changes in India’s existing systems if the convention is signed and ratified by the country.

    UN Cybercrime Convention (Draft)
    Background
    • Under negotiation, aiming to reshape global criminal laws regarding cross-border access to personal data, surveillance, and international cooperation in cybercrime cases.
    Timeline
    • The convention is scheduled for adoption in January 2024, with member states working towards consensus.
    • A vote may occur if consensus is not reached.
    Content of Zero Draft
    • Zero draft outlines the convention’s scope, provisions, and areas of discussion.
    Focus Areas of Concern 1. Scope of Cybercrimes: The draft narrows the list of cybercrimes but leaves room for expanding the scope through references to other international conventions.

    2. Speech-Related Offenses: While removing certain content-related offenses, it reintroduces them by applying the convention to crimes established under other international conventions.

    3. Surveillance Powers: The draft retains surveillance powers, raising concerns about the lack of consensus on legal safeguards.

    4. Use of Budapest Convention Language: Some provisions in Chapter IV are based on the 2001 Budapest Convention but with weakened safeguards.
    Recommendations
    • Groups advocate for strong safeguards, including the justification for surveillance powers, independent authorization, transparency, and enforcement mechanisms.
    • They propose authorizing international human rights bodies to oversee convention implementation.
    • Ongoing negotiations may lead to changes in the draft text, emphasizing the need to monitor developments regarding human rights and cybersecurity.

     

    Why discuss this?

    • India enacted the Digital Personal Data Protection Act in August, ushering in a framework for personal data protection within the country.
    • This legislation allows personal data to be processed in the interest of India’s sovereignty, integrity, and state security while fulfilling legal obligations.
    • Notably, it also mandates that firms disclose to users the identity of other firms entrusted with their data for processing.
    • However, the Act explicitly exempts firms from disclosing or sharing data in the case of lawful interception of data.

    India’s position on the Convention

    India put forth several key positions:

    1. Deleting Data Transfer Clause: India advocated for the deletion of a clause that encourages state parties to “establish bilateral or multilateral arrangements” to facilitate the transfer of personal data. This underscores India’s emphasis on the sovereignty of its data and its desire to maintain control over cross-border data transfers.
    2. Authorization for Data Transfer: India expressed its agreement with the clause stating that state parties may transfer personal data to a third country or an international organization only with the prior written authorization of the original transferring state party, subject to effective and appropriate safeguards. This reflects India’s commitment to ensuring data security and responsible handling.
    3. Designation of Points of Contact: The draft convention outlines that each state party should designate a point of contact available 24/7 to provide immediate assistance for investigations, prosecutions, or judicial proceedings related to cyber criminal offenses. This demonstrates India’s commitment to effective cooperation in addressing cybercrimes.

  • International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA)

    Central Idea

    • In a global seminar organized by the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) and the Food and Agriculture Organisation (FAO), President of India underscored the importance of safeguarding farmers’ rights.

    About ITPGRFA

    Description
    Objective Conservation and sustainable use of plant genetic resources for food and agriculture.
    Enactment Year 2001
    Key Principles Conservation, Access and Benefit-Sharing, Farmers’ Rights.
    Coverage Multilateral system covering 64 vital crop species.
    Implementation Encourages signatory countries to integrate treaty provisions into national legislation.
    Monitoring Establishes a system for monitoring treaty implementation and reporting.
    Global Impact Contributes to preserving agricultural biodiversity, sustainable agriculture, and equitable access to genetic resources.
    India’s Role India actively participates and supports the treaty, providing rights to farmers for unbranded seeds and registering their varieties, serving as a model for the world.

  • How fraternity in India is different from the idea enshrined in the Constitution

    fraternity

    Central Idea

    • In the context of India’s independence struggle and the subsequent establishment of a constitutional democracy, the interplay of liberty, equality, and fraternity was deemed crucial for a diverse society on the brink of independence.
    • This essay delves into the historical origins of fraternity, its journey through different civilizations, and its significance in India’s socio-political landscape.

    Understanding Fraternity

    • The concept of fraternity, often overshadowed by liberty and equality, plays a pivotal role in the realm of politics.
    • Philosopher Angel Puyol, in his book “Political Fraternity: Democracy beyond Freedom & Democracy,” argues that fraternity is central to the emancipation and empowerment of people.

    Origins of the Concept

    • Ancient Greece: The roots of fraternity can be traced back to ancient Greece, where philosophers like Plato emphasized the importance of sharing knowledge and wisdom among individuals. This early discourse hinted at the notion of political fraternity.
    • Medieval Europe: In the Middle Ages, fraternity found expression primarily through religion, especially within the context of Christian society in Europe. It began to evolve from a religious concept to a political one.
    • French Revolution: The concept of fraternity gained prominence during the French Revolution of 1789, symbolized by the revolutionary triptych of ‘liberte, egalite, fraternite.’ Fraternity, in this context, became a fundamental principle of civic-political friendship.

    Friendship among Equals

    • Integral Value System: Fraternity thrived within community ties, with a foundation built on integral values. It prioritized the collective over the individual, gradually giving way to religious morality and a ‘way of life.’
    • Shared History: For fraternity to flourish, individuals must share a harmonious past. This shared history should be amicable, free from ideological divisions rooted in social inequalities among different communities.

    Fraternity in India’s Context

    • Unique Societal Landscape: India’s fraternal bonds face unique challenges due to its history of social hierarchies and caste divisions. The shared history is marred by the caste system, hindering the principles of equality and liberty.
    • Secular Conception: To foster fraternity in India, it must be rooted in politics, where caste privileges can be challenged. Fraternity should be cultivated through political conditioning, separate from moral considerations.

    Role in Indian Constitution

    • Constitutional Objective: The Indian Constitution recognizes the significance of fraternity in a society marked by various hierarchical social inequalities. It considers fraternity, along with liberty and equality, as a foundational political objective.
    • Affirmative Actions: Measures like affirmative actions, including the reservation system, aim to establish equality among diverse social groups in terms of access to social and economic resources.

    Limits to Fraternity

    • Ignoring Inequalities: Fraternity loses its meaning if it overlooks social inequalities and promotes social solidarity built on animosity towards others. Such solidarity often perpetuates the status quo and reinforces privilege at the expense of the marginalized.
    • Nationalism vs. Fraternity: Belligerent nationalism can replace the call for fraternity, casting religious minorities as enemies. This has historically led to social and political discrimination against religious minorities in India.
    • Fundamentalism’s Impact: Fundamentalism, in any form, contradicts the essence of fraternity, as fanaticism is incompatible with true fraternity.

    Conclusion

    • In India, the coexistence of caste and political fraternity, given the prevailing social milieu, presents challenges. To foster political fraternity, it is imperative to address social inequalities and caste divisions.
    • The future of Indian politics will determine whether fraternity or caste consciousness prevails, as the two are often incompatible.
    • Achieving true political fraternity requires navigating these complexities while prioritizing the principles of equality, liberty, and solidarity across diverse social groups.

  • India urges Sri Lanka to fulfill commitments for Tamil aspirations

    tamil

    Central Idea

    • India has expressed its concerns about the slow progress made by Sri Lanka in fulfilling its commitments to address the aspirations of the Tamil community.
    • India’s representative at the UN Human Rights Council in Geneva emphasized the inadequacy of progress.

    Tamil issue in Sri Lanka

    • Violent persecution against the Tamil population erupted in the form of the 1956, 1958, 1977, 1981, and 1983 anti-Tamil pogroms in Sri Lanka.
    • Over 13 years since the end of Sri Lanka’s civil war, in which tens of thousands of civilians were killed and disappeared, survivors continue demanding justice and accountability for war-time crimes.
    • In the post-war years, Sri Lanka’s human rights defenders have frequently flagged concerns over persisting militarisation, especially in the Tamil-majority north and east; repression, and the shrinking space for dissent.

    Why discuss this?

    • Reconciliation and Human Rights: Despite the war’s conclusion, the country still faces challenges in reconciling its ethnic divisions and ensuring the protection of human rights.
    • Economic Crisis: In addition to its unresolved conflict, Sri Lanka has experienced a severe economic crisis that began in the previous year, leaving a significant portion of its population vulnerable. The crisis has led to increased poverty levels and food insecurity for many households.

    UN Human Rights Council’s Concerns

    • Political and Democratic Reforms: The UN Deputy High Commissioner for Human Rights highlighted the delay in implementing political and democratic reforms, even a year after a significant protest movement.
    • Food Insecurity: UNHRC pointed out that approximately 37% of households in Sri Lanka face acute food insecurity, indicating the extent of the economic challenges.
    • Political Participation: Delays in holding local government elections and reconstituting Provincial Councils have limited citizens’ political participation and free expression.
    • Land Acquisition: The UN official raised concerns about escalating tensions in Sri Lanka’s north and east due to land acquisition for military installations, conservation efforts at Hindu or Muslim sites, and forestry protection.

    India’s Position

    • Power Devolution: India reiterated its support for the aspirations of the Tamil community for equality, justice, dignity, and peace.
    • Limited sovereignty: It also emphasized its commitment to the unity, territorial integrity, and sovereignty of Sri Lanka by implementing the 13th Amendment.

    UN Review and Sri Lanka’s Response

    • The UN Human Rights Council is currently reviewing Sri Lanka’s commitments, and there will be no vote on a resolution at this session.
    • While acknowledging Sri Lanka’s initiatives in truth-seeking and reconciliation, the High Commissioner’s report emphasized the need for urgent confidence-building measures for genuine reconciliation and transitional justice.
    • The Sri Lankan government rejected the report and labelled previous Council resolutions as intrusive and polarizing.

    Conclusion

    • India’s call for Sri Lanka to fulfil its commitments to address Tamil aspirations reflects ongoing concerns about the progress of reconciliation and human rights in the country.
    • The economic crisis and delays in political reforms have further complicated the situation, necessitating meaningful actions to promote genuine reconciliation and transitional justice.
    • The review at the UN Human Rights Council serves as an important platform for monitoring Sri Lanka’s efforts in this regard.

  • African Union and the G20: Africa on the high table

    What’s the news?

    • India’s 18th G20 Summit, held under the dynamic leadership of Prime Minister Narendra Modi, made history by admitting the African Union (AU) into the G20.

    Central idea

    • The addition of the African Union as the 21st member brings substantial weight to the G20. It significantly enhances the G20’s global economic and financial governance. With Africa’s representation, the G20 becomes a more inclusive and influential body, covering a vast portion of the world’s population, GDP, and trade.

    Africa’s Stake and Strength

    • Stake in G20 Inclusion:
    • Representation: Africa’s inclusion in the G20 through the African Union (AU) provides the continent with a significant voice and presence in global economic and financial governance.
    • Global Economic Impact: Africa’s inclusion in the G20 is notable because it represents the continent’s growing economic influence. Africa possesses substantial resources, including agricultural land, minerals, metals (including rare earth minerals), and a young workforce.
    • Developmental Challenges: Africa faces numerous developmental challenges, including widespread poverty, conflict, political instability, climate stress, environmental degradation, and socioeconomic devastation from various crises. These challenges underscore the importance of Africa’s participation in the G20 for addressing global public goods (GPGs) and development issues.
    • Strengths Leveraged in the G20:
    • Resource Abundance: Africa’s wealth of natural resources positions it as a significant contributor to G20 discussions on resource utilization, sustainable development, and global economic growth.
    • Economic Integration: Africa’s ongoing economic and political integration, including initiatives like the African Free Trade Area and “Agenda 2063: The Africa We Want,” demonstrate its commitment to becoming an economic powerhouse.
    • Demographic Advantage: Africa’s large and youthful population presents opportunities for future global economic growth and trade partnerships.
    • Alignment with Global Goals: Africa’s role in achieving global goals, particularly the Sustainable Development Goals (SDGs), underscores its importance within the G20 for coordinated efforts to meet these goals.

    Benefits of the AU’s inclusion in the G20

    • Enhanced Representation and Credibility: The AU’s inclusion makes the G20 more representative and enhances its credibility as a global decision-making body.
    • Effective Policy Implementation: AU’s participation is expected to improve the implementation of G20 policies, programs, measures, principles, and initiatives.
    • African Voice and Influence: The AU’s presence provides Africa with a voice, participation, and leadership role at the global high table, enabling African countries to influence the global agenda and priorities.
    • Cooperation and Leveraging Resources: The AU’s inclusion fosters cooperation within the G20 and allows for the mutual leveraging of Africa’s abundant resources for the benefit of all member nations.

    Strategic Benefits for India

    • Deepened Partnerships: India can strengthen its strategic, political, economic, technological, trade, and people-to-people partnerships with African nations. AU’s inclusion provides India with a unique opportunity to foster deeper relationships across various sectors.
    • Regional and Sub-Regional Engagement: India can engage with African countries on both regional and sub-regional levels. This enables India to extend its influence and cooperation beyond individual nations and into larger African regions.
    • Collaboration with Like-Minded Partners: India can collaborate with like-minded partners from the North, such as Japan and the United States, to further its interests in Africa. These partnerships can lead to joint initiatives and investments in the continent.
    • Diplomatic Trust: Prime Minister Modi’s successful efforts to secure the AU’s inclusion in the G20 have earned the trust and gratitude of African nations. This trust can translate into diplomatic goodwill and cooperation on various global issues.
    • A Counterbalance: The AU’s presence in the G20 can serve as a counterbalance to China’s efforts to influence African countries, especially in matters related to UN Security Council reform. India’s alignment with African interests can bolster its position.
    • Economic Opportunities: Africa’s economic growth and integration present opportunities for Indian businesses to invest and trade in the region. India can leverage its participation in the G20 to facilitate economic engagement with African partners.
    • Global Influence: By actively engaging with African nations within the G20, India can enhance its global influence and stature as a country that promotes inclusive development and cooperation.

    G20’s global mission

    • Conclusion Global Economic and Financial System: The G20 plays a pivotal role in shaping the global economic, financial, and monetary system. It strives to establish a framework that is fair and adheres to established rules and principles.
    • Providing Global Public Goods (GPGs): The G20 is committed to providing global public goods, which can encompass shared resources, technologies, and knowledge that benefit all nations. These may include international tax packages and initiatives in areas like digital health.
    • Addressing Global Public Bads (GPBs): Beyond providing public goods, the G20 addresses global public bads—issues and threats that transcend national borders. This involves taking concerted actions against challenges such as money laundering, counterterrorism financing, and other transnational risks.
    • Supporting Developing Countries:
    • A significant aspect of the G20’s mission is to create a level playing field for developing countries. It involves taking affirmative measures to assist those nations facing the most significant challenges.
    • Key areas of focus include reforming Multilateral Development Banks (MDBs), providing stimulus for achieving the Sustainable Development Goals (SDGs), financing initiatives related to green development and climate transition, issuing Special Drawing Rights (SDRs) during crises, and addressing food security and supply chain disruptions.

    Conclusion

    • Admitting the African Union into the G20 during India’s presidency is a historic achievement that enhances the G20’s credibility and inclusivity. AU’s inclusion adds a valuable perspective to the G20’s discussions and decisions, making it a more powerful and representative body on the world stage.

     

  • Analysing where India stands in the G20

    What’s the news?

    • The 18th G20 Summit, hosted by India in New Delhi from September 9 to 10, revolved around the theme One Earth, One Family, One Future. This global forum convened to deliberate on crucial issues encompassing food security, climate change, energy, development, healthcare, and digitalization.

    Central idea

    • The G20 Summit marked a successful conclusion as India transferred the G20 Presidency to Brazil. India’s performance across various socioeconomic metrics within the G20 context reveals a mixed picture of progress and challenges.

    GDP per capita comparison (1970–2022)

    • 1970: India’s GDP per capita was $111.97, ranking 18th out of 19 regions analyzed. India had one of the lowest GDP per capita figures among the group.
    • 2022: By 2022, India’s GDP per capita had risen significantly to $2,388.62. However, despite this growth, India had moved to the last position among the 19 regions, indicating that other regions had experienced more substantial economic growth during this period.

    Human Development Index (HDI) comparison (1990–2021)

    • 1990: In 1990, India’s HDI stood at 0.43, indicating a relatively low level of human development. At that time, India ranked towards the lower end of the list among the 19 countries and regions analyzed.
    • 2021: By 2021, India’s HDI had improved to 0.63, signifying significant progress in terms of human development over the decades. However, despite this improvement, India still ranked at the bottom of the list among the 19 regions, highlighting the need for further advancements in various aspects of human development, including life expectancy, education, and living standards.

    Health Metrics Comparison

    • Life Expectancy (1990-2021):
      • In 1990, India had an average life expectancy of 45.22 years.
      • China, at the same time, had a lower average life expectancy of 33.27 years.
      • By 2021, India’s life expectancy had increased to 67.24 years.
      • Despite this improvement, India’s ranking remained the same, and China surpassed India in terms of life expectancy.
    • Infant Mortality Rate (1990-2021):
      • In 1990, India had an infant mortality rate of 88.8 per 1,000 live births, ranking it at the bottom of the 20 regions analyzed.
      • By 2021, India’s infant mortality rate had improved to 25.5 per 1,000 live births.
      • India’s ranking improved to 19th place, just ahead of South Africa (26.4), but it still lags behind many other regions in terms of infant mortality.

    Labor Force Participation Rate (LFPR) Comparison (1990-2021-22)

    • 1990:
      • In 1990, India’s LFPR for individuals above 15 years of age was 54.2%.
      • This LFPR ranking placed India at the 18th position among the 20 regions analyzed.
      • India was ahead of Italy (49.7%) and Saudi Arabia (53.3%) in LFPR.
    • 2021-22:
      • By 2021-22, India’s LFPR had decreased to 49.5%.
      • This decline resulted in a slip in India’s ranking to 19th place.
      • India was now only ahead of Italy (49.4%) among the 20 regions in terms of LFPR.

    Women’s Representation in Parliament (1998-2022)

    • 1998:
      • In 1998, women constituted 8.1% of the Indian Parliament.
      • At that time, India ranked 15th out of the 19 regions analyzed in terms of women’s representation in Parliament.
      • While there were women in leadership positions, India’s representation was relatively low compared to some other regions.
    • 2022:
      • By 2022, women’s representation in the Indian Parliament had nearly doubled to 14.9%.
      • However, despite this increase, India’s ranking had slipped to the 18th position among the 19 regions.
      • India was just ahead of Japan (9.9%) in terms of women’s representation in Parliament.

    Environmental Progress

    • Carbon Emissions (1990 and 2020):
      • In 1990, India was the lowest emitter of CO2 among the 20 regions analyzed.
      • This demonstrated India’s relatively low carbon emissions at that time.
      • In 2020, India maintained its status as the lowest emitter of CO2 among the same regions, indicating a consistent trend of relatively low carbon emissions.
    • Renewable Energy Adoption (1990 and 2015):
      • In 1990, most G20 nations, excluding the U.S. and Mexico, generated less than 2% of their electricity from renewables.
      • By 2015, India had made some progress, with 5.36% of its electricity coming from renewable sources.
      • However, India’s ranking in this regard was 13th out of the 20 regions analyzed, suggesting relatively slow progress in adopting eco-friendly energy sources compared to some other G20 nations.

    Conclusion

    • As India hands over the G20 Presidency to Brazil, there is an opportunity for the nation to build on its successes and address areas that require further attention to achieve a more balanced and equitable socioeconomic landscape