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  • Equitable education and health care needed for better future

    Equitable health and educationContext

    • To create the foundation for the next century, we need to invest in equitable education and health care in the next 25 years not just for the elite, but for all.

    What is current status of education?

    • Expenditure on Education: The expenses on education as a percentage to GDP, India lags behind some developed/ developing nations.
    • Infrastructure deficit: Dilapidated structures, single-room schools, lack of drinking water facilities, separate toilets and other educational infrastructure is a grave problem.
    • Student-teacher ratio: Another challenge for improving the Indian education system is to improve the student teacher ratio.

    What is current status of healthcare?

    • Weak delivery: Current health infrastructure in India paints a dismal picture of the healthcare delivery system in the country.
    • Unpreparedness: Public health experts believe that India is ill-equipped to handle emergencies.
    • Technical glitches in urban areas: It is not prepared to tackle health epidemics, particularly given its urban congestion.

    A systemic approach to reforming education system in the country needs

    • Dynamic pedagogy: Academic interventions involve the adoption of grade competence framework instead of just syllabus completion.
    • Directional efforts: Effective delivery of remedial education for weaker students like after-school coaching, audio-video based education.
    • Administrative reforms: that enable and incentivize teachers to perform better through data-driven insights, training, and recognition. Example: Performance based increments in Salary.

    equitable education and healthA systemic approach to reforming healthcare system in the country needs

    • Universal health coverage: Access to healthcare in India is not equitable—the rich and the middle class would survive the COVID-19 or any other crisis but not the poor.
    • Increasing healthcare professionals in numbers: India has handled the COVID-19 pandemic exceptionally well. However, India is in dire need of more medical staff and amenities.
    • Revamping medical education: If the government wants to stay successful in fighting the COVID-19 pandemic, it needs to rapidly build medical institutions and increase the number of doctors.
    • Cross-subsidization of health-care: How the poor managed without, or even with, any government insurance scheme is a big question. They can make up for the loss by cross-subsidizing treatments of patients with premium insurance policies.

    Recent initiatives

    • PLI scheme: In view of these challenges, the government announced various policies like PLI scheme for domestic manufacturing of active pharmaceutical ingredients (APIs).
    • National Digital Health Mission: It also announced the National Digital Health Mission.

    Way forward

    • India’s healthcare system is too small for such a large population.
    • There seems to be a long battle ahead. The public healthcare system cannot be improved overnight.
    • The country needs all hands on deck during and after this crisis—both public and private sectors must work together and deliver universal health coverage for all citizens.

    Conclusion

    • Providing expanded access to high quality education and healthcare supports—particularly for those young people who today lack such access—will not only expand economic opportunity for those individuals, but will also likely do more to strengthen the overall state economy.

    Mains question

    Q. To create the foundation for the next century, we need to invest in education and health in the next 25 years not just for the elite, but for all. Critically examine

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  • Data diplomacy

    Context

    • The government has withdrawn the Personal Data Protection Bill from Parliament after several amendments were proposed by the Joint-Parliamentary Committee.

    Definition of data

    • Data is a collection of discrete values that convey information, describing quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted.

    What is Data Protection?

    • Data protection refers to policies and procedures seeking to minimise intrusion into the privacy of an individual caused by collection and usage of their personal data.

    What is data localisation?

    • Data localization or data residency law requires data about a nation’s citizens or residents to be collected, processed, and/or stored inside the country, often before being transferred internationally.

    What is Data Governance?

    • Data governance is a collection of processes, roles, policies, standards, and metrics that ensure the effective and efficient use of information in enabling an organization to achieve its goals. Data governance defines who can take what action, upon what data, in what situations, using what methods.

    Interesting facts

    • Over 90% of all the data in the world was created in the past 2 years;
    • The total amount of data being captured and stored by industry doubles every 1.2 years;
    • If you burned all of the data created in just one day onto DVDs, you could stack them on top of each other and reach the moon – twice.

    Data sovereignty of India

    • Definition: India has placed itself at the heart of the battle, its foreign policy vision fuelled by the principle of ‘data sovereignty’—a broad notion that supports the assertion of sovereign writ over data generated by citizens within a country’s physical boundaries.
    • Issues: The ideal of “data sovereignty”, and global attempts to leverage it, has come under heavy criticism from various stakeholders who are of the view that the concept violates the principle of “free and open internet”. They also argue that “data sovereignty” hampers innovation and economic growth, and is a ruse for authoritarian digital governance.

    India’s Data Diplomacy: Three Pillars

    • Pillar 1: India’s data for India’s development

    The flagship ‘Digital India’ programme clearly views data as the cornerstone of India’s socioeconomic future—one where the government leverages the Indian citizen’s data for the benefit of the people themselves, and not solely for profit-making.

    • Pillar 2: Cross-border data flows and digital trade

    In keeping with its foreign policy tradition of actively shaping debates on global trade rules, India has been an active participant in the ongoing contestation on regulating cross-border data flows.

    • Pillar 3: Securitising the economic

    The final pillar of India’s data diplomacy has been predicated ostensibly on safeguarding its citizens’ data from external threats.

    Why data is important?

    • Improve People’s Lives: Data will help you to improve quality of life for people you support: Improving quality is first and foremost among the reasons why organizations should be using data.
    • Make Informed Decisions: Data = Knowledge. Good data provides indisputable evidence, while anecdotal evidence, assumptions, or abstract observation might lead to wasted resources due to taking action based on an incorrect conclusion.
    • Stop Molehills from Turning into Mountains: Data allows you to monitor the health of important systems in your organization: By utilizing data for quality monitoring, organizations are able to respond to challenges before they become full-blown crisis.
    • Get The Results You Want: Data allows organizations to measure the effectiveness of a given strategy: When strategies are put into place to overcome a challenge, collecting data will allow you to determine how well your solution is performing, and whether or not your approach needs to be tweaked or changed over the long-term.

    Conclusion

    • The fulcrum of India’s data diplomacy should be predicated on the rule of law and the genuine protection of fundamental rights enshrined in the Constitution. A commitment to the rule of law and accountability for all actors sets India apart from present adversaries like China and offers an opportunity to burnish its reputation globally.

    Mains question

    Q.Data is considered as new gold across the globe in this context analyse data sovereignty along with status of data diplomacy of India.

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  • Constitution Bench to hear Delhi statehood plea

    A Constitution Bench led by Justice D.Y. Chandrachud will hear the legal battle between the Centre and the Government of Delhi for control over officials in the national capital.

    What is a Constitution Bench?

    • The constitution bench is the name given to the benches of the Supreme Court of India.
    • The Chief Justice of India has the power to constitute a Constitution Bench and refer cases to it.

    Constitution benches are set up when the following circumstances exist:

    1. Interpretation of the Constitution: Article 145(3) provides for the constitution of at least five judges of the court which sit to decide any case “involving a substantial question of law as to the interpretation” of the Constitution of India.
    2. President of India seeking SC’s opinion: When the President has sought the Supreme Court’s opinion on a question of fact or law under Article 143 of the Constitution. Article 143 of the Constitution provides for Advisory jurisdiction to the SC. As per the provision, the President has the power to address questions to the apex Court, which he deems important for public welfare.
    3. Conflicting Judgments: When two or more three-judge benches of the Supreme Court have delivered conflicting judgments on the same point of law, necessitating a definite understanding and interpretation of the law by a larger bench.
    • The Constitution benches are set up on ad hoc basis as and when the above-mentioned conditions exist.
    • Constitution benches have decided many of India’s best-known and most important Supreme Court cases, such as:
    1. K. Gopalan v. State of Madras (Preventive detention)
    2. Kesavananda Bharati v. State of Kerala (Basic structure doctrine) and
    3. Ashoka Kumar Thakur v. Union of India (OBC reservations) etc.

    Why in news now?

    • A 2018 Constitution bench decision interpreting Article 239AA had not dealt with an aspect having a bearing on the dispute over services, CJI agreed.
    • The proceedings have their genesis in the Delhi HC judgment of August 4, 2017, whereby it held that for the purposes of administration, the L-G was not bound by the aid and advice of the Council of Ministers in every matter.
    • On appeal, the SC on February 15, 2017, referred the matter to decide on the interpretation of Article 239AA.

    What is the 2018 Judgment all about?

    • By a majority decision in July, 2018, the Constitution bench upheld the respective powers of the state Assembly and the Parliament.
    • It said that while the CoM must communicate all decisions to the L-G, this does not mean that the L-G’s concurrence is required.
    • In case of a difference of opinion, the L-G can refer it to the President for a decision.
    • The L-G has no independent decision-making power but has to either act on the ‘aid and advice’ of the CoM or is bound to implement the decision of the President on a reference being made.
    • The bench, which limited itself to the interpretation of Article 239AA, left individual issues to be decided by regular benches.

    When power tussle began?

    • Subsequently in 2019, a two-judge bench of the SC dealt with some individual issues arising from the power tussle between the Centre and the NCT government.
    • It ruled that the Anti-Corruption Branch of the Delhi government cannot investigate corruption cases against central government officials.
    • The power to appoint commissions under the Commission of Inquiry Act, 1952, would be vested with the Centre and not the Delhi government, the judgment said.

    Issue over control of administrative services

    • The judges, however, differed on who should have control over administrative services.
    • This was challenged again in the SC where the Centre contended that the two judges could not take a decision on the question.
    • The 2018 Constitution bench judgment had not interpreted the expression “insofar as any such matter as applicable to Union Territories” appearing in Article 239AA.
    • The Centre has urged SC CJI Ramana to refer the matter to a five-judge Constitution bench so that the question of law can be settled before the dispute over who has control over services can be looked into.

    Article 239AA of the Indian Constitution

    • Article 239AA granted Special Status to Delhi among Union Territories (UTs) in the year 1991 through the 69th Constitutional Amendment.
    • It provided a Legislative Assembly and a Council of Ministers responsible to such Assembly with appropriate powers.
    • That’s when Delhi was named as the National Capital Region (NCT) of Delhi.
    • As per this article – Public Order, Police & Land in NCT of Delhi fall within the domain and control of Central Government which shall have the power to make laws on these matters.
    • For remaining matters of State List or Concurrent List, in so far as any such matter is applicable to UTs, the Legislative Assembly shall have the power to make laws for NCT of Delhi.

     

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  • ‘Kerala Savari’: India’s first online taxi service as a public option

    Kerala has soft launched ‘Kerala Savari’, the country’s first online taxi service owned by a State government, to ensure fair and decent service to passengers along with fair remuneration to auto-taxi workers.

    What is Kerala Savari?

    • Operated by the Motor Workers Welfare Board under the aegis of the Labour Department, the Kerala Savari ensures safe travel for the public at ‘government approved fares’ without any ‘surge pricing’.
    • The ‘Kerala Savari’ app would be made available to the public on online platforms shortly as it is under the scrutiny of Google now.

    Why such initiative?

    • The alleged unfair trade practices and violation of consumer rights by private app-based cab aggregators have come as a major concern for governments.
    • Recently, the Central Consumer Protection Authority (CCPA) had issued notices to cab aggregators Ola and Uber for unfair trade practices and violation of consumer rights which include:
    1. Charging exorbitant fares during peak hours
    2. Unprofessional behaviour from the part of drivers
    3. Lack of proper response from customer support, and
    4. Undue levy of cancellation charges despite the cab driver refusing to accept the ride booked by the passenger etc.
    • It is against this backdrop that the Kerala government has decided to come up with an app-based platform to offer auto-taxi service for the public.

    What are the main attractions of ‘Kerala Savari’?

    • There will be no fluctuation in fares on Kerala Savari irrespective of day or night or rain.
    • But Kerala Savari only 8% service charge in addition to the rate set by the government, whereas the private cab aggregators charge up to 20 to 30% service charge.

    What are the security-related features of ‘Kerala Savari’?

    • Kerala Savari is claimed as a safe and reliable online service for women, children, and senior citizens.
    • This consideration has been given importance in app designing and driver registration.
    • A police clearance certificate is mandatory for drivers joining the scheme apart from the required proper training.
    • A panic button system has been introduced in the app.
    • It has also been decided to install GPS in vehicles at a subsidised rate.

    Will the new government initiative end the monopoly of private cab aggregators?

    • Kerala has over five lakh autorickshaws and one lakh cabs.
    • The State government plans to bring all auto-taxi workers engaged in the sector under the new platform.
    • Since smartphone literacy is high in Kerala, the State is hopeful of bringing them under the scheme in a short span of time.
    • In addition, the Kerala government has also decided to provide fuel, insurance, and tyre subsidies for vehicle owners in the future and has already initiated talks with major companies in this regard.
    • After the evaluation of the first phase of the project in Thiruvananthapuram, it will be extended to the entire State in a phased manner.
    • Kerala Savari is expected to reach Kollam, Ernakulam, Thrissur, Kozhikode, and Kannur municipal limits within a month.
    Regulation of Cab Aggregators in India

    • The Motor Vehicles Amendment Act 2019 seeks to regulate Cab aggregators in India
    • It’s the first time cab aggregators have got statutory recognition as “digital intermediaries” or “transport aggregators”.
    • They are now defined as marketplaces that can be used by passengers to connect with a driver for moving from one place to another.
    • The Centre will issue broad guidelines from time to time and the states will rely on them to frame their own rules to regulate the industry.
    • The aggregators will also have to comply with the provisions of the Information Technology Act, 2000.
    • This means they will have to follow rules on storing data safely to protect the identity of users.

     

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  • Tigray Crisis in Ethiopia

    The director-general of the World Health Organization (WHO), described the Tigray crisis region as the “worst humanitarian disaster on earth”.

    What is the news?

    • Ethiopia has been on the brink of a civil war.
    • On Nov 4 2020, Prime Minister Abiy Ahmed declared war on the country’s Tigray region.
    • The Tigray region is ruled by the Tigray People’s Liberation Front (TPLF).
    • The war was declared in response to the TPLF’s attack on a federal military base in Tigray.

    Tigray Crisis: A backgrounder

    • The animosity between Tigrayans and Eritrea goes back to the Ethiopian-Eritrean war that occurred between 1998 and 2000.
    • It occurred approximately two decades ago was extremely brutal and resulted in the deaths of thousands of soldiers.
    • The roots of this crisis can be traced to Ethiopia’s system of government. Since 1994, Ethiopia has had a federal system in which different ethnic groups control the affairs of 10 regions.
    • The Tigray People’s Liberation Front (TPLF) – was influential in setting up this system.
    • It was the leader of a four-party coalition that governed Ethiopia from 1991, when a military regime was ousted from power.
    • Under the coalition, Ethiopia became more prosperous and stable, but concerns were routinely raised about human rights and the level of democracy.

    How did it escalate into a crisis?

    • Eventually, discontent morphed into protest, leading to a government reshuffle that saw Mr Abiy appointed PM.
    • Abiy liberalized politics, set up a new party (the Prosperity Party), and removed key Tigrayan government leaders accused of corruption and repression.
    • Meanwhile, Abiy ended a long-standing territorial dispute with neighbouring Eritrea, earning him a Nobel Peace Prize in 2019.
    • These moves won Abiy popular acclaim, but caused unease among critics in Tigray.
    • Tigray’s leaders see Abiy’s reforms as an attempt to centralize power and destroy Ethiopia’s federal system.

    How bad is the humanitarian situation?

    • Tigray and its neighbouring regions are facing starvation.
    • There is an absence of medical facilities, no access to their own money due to shut-down banking services, ethnic and physical violence, and raids at the hands of warring forces.
    • The government declared a ceasefire on humanitarian grounds but in an effort to break the TPLF in June last year, imposed a blockade on Tigray.
    • This made it impossible to deliver humanitarian, economic, and medical assistance to Tigrayans.

    Also read:

    [Burning Issue] Ethiopian Crisis and the Geopolitics

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  • Anganwadi scheme

    Context

    • The economic fallout of COVID-19 makes the necessity of quality public welfare services more pressing than ever.
    • The Integrated Child Development Services (ICDS) programme is one such scheme.

    What is ICDS?

    • ICDS caters to the nutrition, health and pre-education needs of children till six years of age as well as the health and nutrition of women and adolescent girls.

    What is anganwadi scheme?

    • The scheme was started in 1975 and aims at the holistic development of children and empowerment of mother.
    • It is a Centrally-Sponsored scheme. The scheme primarily runs through the Anganwadi centre. The scheme is under the Ministry of Women and Child Development.

    Need for focus on early childhood care and education (ECCE)

    • Low enrolment: The National Family Health Survey-5 (NFHS-5) finds only 13.6 per cent of children enrolled in pre-primary schools.
    • Weakest link: With its overriding focus on health and nutrition, ECCE has hitherto been the weakest link of the anganwadi system.
    • Low awareness: Unfortunately, due to a lack of parental awareness compounded by the daily stresses of poverty, disadvantaged households are unable to provide an early learning environment.

    Data to remember

    According to government data, the country has 13.77 lakh Anganwadi centres (AWCs).

    A meaningful ECCE programme in anganwadis

    • Activity-based framework which reflect local context: To design and put in place a meaningful activity-based ECCE framework that recognises the ground realities with autonomy to reflect the local context and setting.
    • Remove non-ICDS work: Routine tasks of anganwadi workers can be reduced and non-ICDS work, such as surveys, removed altogether.
    • Extend Anganwadi time: Anganwadi hours can be extended by at least three hours by providing staff with an increase in their present remuneration, with the additional time devoted for ECCE.
    • Change in policy mindset: ICDS needs a change in policy mindset, both at central and state levels, by prioritising and monitoring ECCE.
    • Engagement with parents: Anganwadi workers must be re-oriented to closely engage with parents, as they play a crucial role in the cognitive development of young children.

     

    Case study / value addition

    In Andhra Pradesh and Telangana, anganwadi centres have been geotagged to improve service delivery.

    Gujarat has digitised the supply chain of take-home rations and real-time data is being used to minimise stockouts at the anganwadi centres.

    Way forward

    • Government must act on the three imperatives. First, while infrastructure development and capacity building of the anganwadi remains the key to improving the programme, the standards of all its services need to be upscaled.
    • Second, states have much to learn from each other’s experiences.
    • Third, anganwadi centres must cater to the needs of the community and the programme’s workers.

    Conclusion

    • Nearly 1.4 million anganwadis of the Integrated Child Development Services (ICDS) across India must provide ECCE for the millions of young children in low-income households.

    Mains question

    Q. Some educationists have suggested that owing to the high workload of anganwadi workers, ECCE in anganwadis would remain a non-starter. Critically examine this statement and give dynamic suggestions to improve EECE in anganwadis.

     

     

     

  • Kashmir Voters’ List Upgrade to include Non-Locals

    Kashmir Voters’ List Upgrade to include Non-Locals

    Recently the J&K Chief Electoral Officer (CEO) announced that anyone “who is living ordinarily in J&K” can avail the opportunity to get enlisted as a voter in the Union Territory in accordance with the provisions of the Representation of the People Act.

    Why in news?

    • Many people who were not enlisted as voters in the erstwhile State of J&K are now eligible to vote after the reading down of Article 370 on August 5, 2019.
    • The Election Commission of India (ECI) was expecting an addition of 20-25 lakh new voters in the final list in J&K.
    • This has created furore among the out-streamed politicians of the erstwhile state.

    What did the EC announce?

    • There is no need to have a domicile certificate of J&K to become a voter.
    • An employee, a student, a labourer or anyone from outside who is living ordinarily in J&K can enlist his or her name in the voting list.
    • Around 25 lakh new voters are expected to be enrolled in J&K, which has 76 lakh voters on the list. The projected 18-plus population of J&K was around 98 lakh.
    • After the abrogation of special provisions of Article 370, the Representation of the People Act 1950 and 1951 is applicable in J&K, which allows ordinarily residing persons to get registered in the electoral rolls of J&K.

    New Voters in J&K

    • Armed forces posted in J&K could also register as voters and could possibly participate in the first ever Assembly polls in the youngest Union Territory (UT) of the country.
    • The existing electoral roll is being mapped into the newly delimited Assembly constituencies as per the Delimitation Commission’s final order made applicable by the Union Law Ministry.

    Why are electoral rolls being revised?

    • The ECI is working on fresh electoral rolls in J&K after the J&K Delimitation Commission carved out seven new Assembly constituencies in the UT earlier this year.
    • The Delimitation Commission has re-drawn many constituencies and fresh electoral rolls are essential to prepare the ground for any announcement of elections in J&K.
    • The last Assembly elections took place long back in 2014.
    • In a latest move, the ECI has decided that it will also include any person who has attained the age of 18 years on or before October 1, 2022 in the fresh electoral rolls.
    • The final electoral roll would be published in November.

    Why such move?

    • Prior to August 5, 2019 when J&K had special constitutional powers, the Assembly electoral rolls in the State were drawn up according to the separate J&K Representation of the People Act 1957.
    • Therein only permanent residents of J&K were eligible to get registered in the Assembly rolls.
    • To get voting rights, Permanent Resident Certificate and domicile certificates had to be shown.
    • Several lakh residents from West Pakistan and Pakistan Occupied Kashmir, who had migrated to J&K and were living there for decades,
    • They had no voting rights in Assembly elections till August 5, 2019 but were able to vote in the parliamentary elections.

    Why has the ECI announcement caused a furore?

    • All pseudo liberal and fundamentalist political parties in J&K have reacted sharply to the ECI announcement.
    • J&K’s main regional parties also called Gupkar parties have expressed concerns that the move will open the floodgates and turn locals into an electoral minority.
    • Separatists expressed concern that there was a plan to bring 25 lakh non-locals and make them eligible to cast their votes in the next J&K elections.

     

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  • Delhi Police’s use of Facial Recognition Technology

    A Right to Information (RTI) response revealed that the Delhi Police treats matches of above 80% similarity generated by its facial recognition technology (FRT) system as positive results.

    Why in news?

    • India has seen the rapid deployment of facial recognition technology (FRT) in recent years, both by the Union and State governments, without putting in place any law to regulate their use.

    What is Facial Recognition Technology?

    • Facial recognition is an algorithm-based technology that creates a digital map of the face by identifying and mapping an individual’s facial features, which it then matches against the database to which it has access.
    • It can be used for two purposes:

    (A) 1:1 verification of identity

    • Here the facial map is obtained for the purpose of matching it against the person’s photograph on a database to authenticate their identity.
    • Increasingly it is being used to provide access to any benefits or government schemes.

    (B) One-to-many identification

    • There is the one-to-many identification of identity wherein the facial map is obtained from a photograph or video and then matched against the entire database to identify the person in the photograph or video.
    • Law enforcement agencies such as the Delhi Police usually procure FRT for 1:n identification.
    • It generates a probability or a match score between the suspect who is to be identified and the available database of identified criminals.
    • A list of possible matches are generated on the basis of their likelihood to be the correct match with corresponding match scores.
    • However, ultimately it is a human analyst who selects the final probable match from the list of matches generated by FRT.

    Why is the Delhi Police using facial recognition technology?

    • The Delhi Police first obtained FRT for the purpose of tracing and identifying missing children.
    • The procurement was authorised under the 2018 direction of the Delhi High Court in Sadhan Haldar vs. NCT of Delhi.

    Issues with FRT use

    • The use of FRT presents two issues:
    1. Issues related to misidentification due to inaccuracy of the technology and
    2. Issues related to mass surveillance due to misuse of the technology
    • Extensive research into the technology has revealed that its accuracy rates fall starkly based on race and gender.
    • This can result in a false positive rate, where a person is misidentified as someone else, or a false negative where a person is not verified as themselves.
    • Cases of a false positive result can lead to bias against the individual who has been misidentified.
    • On the other hand, cases of false negative results can lead to exclusion of the individual from accessing essential schemes. Ex. Failure of biometric based authentication under Aadhaar for an 90 YO person.

    Authority to Delhi Police

    • The Delhi Police is matching the photographs/videos against photographs collected under Section three and four of the Identification of Prisoners Act, 1920.
    • This provision has now been replaced by the Criminal Procedure (Identification) Act, 2022.
    • This Act allows for wider categories of data to be collected from a wider section of people, i.e., “convicts and other persons for the purposes of identification and investigation of criminal matters”.

    Why discuss this?

    • At present, India does NOT have a data protection law or a FRT specific regulation to protect against misuse.
    • In such a legal vacuum, there are no safeguards to ensure that authorities use FRT only for the purposes that they have been authorised to, as is the case with the Delhi Police.
    • FRT can enable the constant surveillance of an individual resulting in the violation of their fundamental right to privacy.
    • Yet again the nation-security narrative comes into picture which cannot be ignored.
    • It is feared that the Act will lead to overbroad collection of personal data in violation of internationally recognised best practices for the collection and processing of data.
    • This revelation raises multiple concerns as the use of facial recognition can lead to wrongful arrests and mass surveillance resulting in privacy violations (if used for propaganda politics).

     

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  • What’s at stake in talks for a UK-India Free Trade Agreement (FTA)?

    India and the UK recently revived talks for a Free Trade Agreement (FTA) to encourage trade and investment. The FTA between India and UK is expected to be signed by October.

    What is a Free Trade Agreement (FTA)?

    • It is an agreement between two or more countries to minimize barriers to imports and exports of products and services among them.
    • It includes reducing tariffs, quotas, subsidies or prohibitions which could limit exchange of goods and services across borders.
    • The FTA might allow free trade among the two nations with a few exceptions.
    • This involves a formal and mutual agreement signed between two or more countries.
    • The agreement could be comprehensive and include goods, services, investment, intellectual property, competition, government procurement and other areas.

    What is the status of the India-UK FTA?

    • India and the United Kingdom have a multi-dimensional strategic partnership and are actively engaged in bilateral trade.
    • The two countries agreed to begin formal negotiations for an FTA in January 2022, aiming to advance trade and investment relations between them.
    • The fifth round of FTA talks concluded on 29 July, and the expectation is that negotiations would be completed and the stage set for the FTA by October.
    • The FTA is important for both countries as it would provide a boost and create a robust framework of overall trade and investment between the two countries.

    Which are the countries with which India has FTAs?

    • As of April 2022, India had 13 FTAs, including the South Asian Free Trade Area, and with Nepal, Bhutan, Thailand, Singapore, Japan and Malaysia.
    • The 13 also include the agreements with Mauritius, UAE and Australia signed during the last five years.
    • Additionally, India has also signed six limited Preferential Trade Agreements.

    What is the level of India-UK trade?

    • Bilateral trade stands at $50 billion (ie approx. $35 billion in services and $15 billion in merchandise).
    • India is UK’s 12th largest trading partner and accounts for 1.9% of UK’s total trade in four quarters to the end of 2022.
    • UK is the seventh largest export destination for India.
    • The trade balance maintained by India with UK has largely been a surplus.
    • Top three services exported from India to UK are technical, trade-related and other business services, professional and management consulting services and travel.

    How will an FTA with UK benefit India?

    • Apart from reducing tariffs, the FTA also looks at lowering non-tariff barriers, particularly technical  barriers to trade around rules of origin, investor  protection and IPR.
    • MoUs on joint recognition of certain educational qualifications and an outline pact on healthcare workforce have already been signed.
    • Also, both UK and India have set up panels for a totalization deal being advocated by India and permitting Indian legal services for the UK.

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement – discussed above

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

     

    Also read

    [Sansad TV] Perspective: Free Trade Agreement

     

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  • SC uphold PMLA amendments

    Context

    • At least 17 Opposition parties have dubbed as “dangerous” the recent Supreme Court judgement upholding amendments made in 2019 to the Prevention of Money Laundering Act (PMLA), giving more powers to agencies such as the Enforcement Directorate (ED).

    What are the concerns for this verdict?

    • Violate fundamental rights: Petitions were filed against the amendments, which the challengers claimed would violate personal liberty, procedures of law and the constitutional mandate.
    • Complex process: The petitioners included many veteran politicians who all claimed that the “process itself was the punishment”.
    • Coercion of ED: There were submissions that the accused’s right against self-incrimination suffered when the ED summoned them and made them sign statements on threats of arrest.

    What is PMLA?

    • Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted by the government to prevent money-laundering and to provide for confiscation of property derived from money-laundering.

    What is money laundering?

    • Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source.

    What is ED?

    • The Directorate of Enforcement is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance, Government Of India.

    What acts it covers?

    • Prevention of Money Laundering Act (PMLA)
    • Fugitive Economic Offenders Act
    • Foreign Exchange Management Act
    • Foreign Exchange Regulation Act (FERA)

    Roles and functions of the ED

    • Summon, Search and seizure: The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
    • Arrest and detentions: On the basis of that, the authorities will decide if an arrest is needed as per Section 19 (power of arrest).
    • Attachment of property: Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning. It is not necessary to summon the person first and then start with the search and seizure.
    • Filing of chargesheet: If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.

    Why ED is making news?

    • Selective witch-hunt: The ED has often been attacked for initiating investigations, raiding and questioning leaders of opposition parties, be it under the current regime or under past governments.

    Why ED is on target?

    • Huge discretions: The ED is the only Central agency in the country that does not require permission from the government to summon or prosecute politicians or government functionaries for committing economic offences like money laundering.
    • Used for petty crimes: PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.
    • Actual purpose denigrated: PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from the trade in narcotics.
    • Violations of Rights: PMLA was enacted in response to India’s global commitment to combat the menace of money laundering. Instead, rights have been “cribbed, cabined and confined”.

    Issues with PMLA

    • Misuse of central agencies: PMLA is being pulled into the investigation of even ordinary crimes by the Enforcement Directorate.
    • Seizing of assets: Assets of genuine victims have been attached. The ED could just walk into anybody’s house.
    • Politically motivated raids: In all this, the fundamental purpose of PMLA to investigate the conversion of “illegitimate money into legitimate money” was lost.
    • Opacity of charges: Petitioners pointed out that even the Enforcement Case Information Report (ECIR) – an equivalent of the FIR – is considered an “internal document” and not given to the accused.
    • Vagueness over evidence: The accused is called upon to make statements that are treated as admissible in evidence.
    • Harassment: The ED begins to summon accused persons and seeks details of all their financial transactions and of their family members.
    • Against individual liberty: The initiation of an investigation by the ED has consequences that have the potential of curtailing the liberty of an individual.

    Way ahead

    • It is unlikely that corruption can be substantially reduced without modifying the way government agencies operate.
    • The fight against corruption is intimately linked with the reform of the investigations.
    • Therefore the adjudicating authorities must work in cooperation and ensure the highest standards of transparency and fairness.

    Mains question

    Q. The trust in premier investigating institutions, and their credibility, is at stake. Is the ED a tool to investigate financial skulduggery or a stick to browbeat opposition leaders? Critically examine.

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