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GS Paper: GS2

  • Governing OTT Platforms

    In a move that will have a far-reaching impact, the Union government has brought Over The Top (OTT) platforms, or video streaming service providers under the ambit of the Ministry of Information and Broadcasting (MIB).

    Try answering this

    Q.What is Over the Top (OTT) media services? Critically analyse the benefits and challenges offered by the OTT media services in India.

    Background

    • The MIB has found a vast swathe of unregulated content, namely news online and Over the top (OTT) platforms which had escaped any architecture of regulation.
    • The print was regulated by the Press Council of India and Television, both News and Entertainment were being regulated by the Cable Networks Regulation Act (2005).
    • However, the content on online, the Government felt, fell into a black hole with no oversight.

    What are OTT Media?

    • An over-the-top (OTT) media service is a streaming media service offered directly to viewers via the Internet.
    • OTT bypasses cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such content.
    • The term is most synonymous with subscription-based video-on-demand (SVoD) services that offer access to film and television content.
    • They are typically accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players, or televisions with integrated Smart TV platforms.

    Regulating OTT

    • Currently, there is no law or autonomous body governing digital content. The recent move will give the government control over OTT platforms, which were unregulated till now.
    • From time to time, the government had indicated the necessity to monitor these platforms.
    • In October 2019, the government had indicated that it will issue the “negative” list of don’ts for the video streaming services like Netflix and Hotstar.
    • It also wanted the platforms to come up with a self-regulatory body on the lines of the News Broadcasting Standards Authority.

    Self-regulation is not sufficient

    • Anticipating the government’s intervention, in January 2019, video streaming services had signed a self-regulatory code that laid down a set of guiding principles for content on these platforms.
    • The code adopted by the OTTs prohibited five types of content:
    1. Content that deliberately and maliciously disrespects the national emblem or national flag,
    2. Any visual or storyline that promotes child pornography
    3. Any content that “maliciously” intends to outrage religious sentiments
    4. Content that “deliberately and maliciously” promotes or encourages terrorism and
    5. Any content that has been banned for exhibition or distribution by law or court
    • The government had refused to support this code.

    What lies ahead?

    • The government had been giving enough hints from time to time that it wanted to regulate digital media but the exact nature of the regulation it wanted to bring was not clear.
    • The government considers digital media and digital aggregators in the same breath but they are different things.
    • It is unclear whether it is looking at licensing or entry barriers, or any other curbs in digital media.
    • However, monitoring content 24×7 has its own challenges. Whether the Ministry will set up a committee involving the public to look into complaints received remains to be seen.

  • Home Ministry amends FCRA rules

    The Ministry of Home Affairs (MHA) has relaxed FCRA norms for farmer, student, religious and other groups who are not directly aligned to any political party to receive foreign funds if the groups are not involved in “active politics”.

    Must read:

    What is Foreign Contribution (Regulation) Act, and how does it control donations?

    What is the FCRA?

    • The Foreign Contribution Regulation Act (FCRA), 2010 regulates foreign donations and ensures that such contributions do not adversely affect the internal security of our country.
    • The Act, first enacted in 1976, was amended in the year 2010 when a slew of new measures was taken by the Union Home Ministry to regulate foreign donations. It was again amended in September this year.
    • It is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    What are the new rules?

    • The new rule says- the organisations specified under clauses (v) and (vi) of sub-rule (1) shall be considered to be of political nature, if they participate in active politics or party politics, as the case may be.
    • The 2011 rules on said clauses dealt with “guidelines for the declaration of an organisation to be of a political nature, not being a political party”.
    • It said that the Central government could specify an organisation as that of political nature based on six criteria.

    Defining ‘Political group’

    • Clause V of Rule 3 (FCRA 2011) qualified a political group as, “organisations of farmers, workers, students, youths based on caste, community, religion, language or otherwise, which is not directly aligned to any political party, but whose objectives or activities, include steps towards advancement of political interests of such groups.
    • The activities include: habitually engagement in or employ common methods of political action like rasta roko, jail bharo, rail roko, bandh or hartal in support of public causes.

    Why such a move?

    • As per the FCRA, members of legislatures, political parties, government officials, judges and media persons are prohibited from receiving any foreign contribution.
    • The new rules make new FCRA registrations more stringent.

  • Shanghai Cooperation Organisation (SCO)

    In an indirect reference to the Chinese infrastructure projects in PoK, our PM has urged members of the Shanghai Cooperation Organisation (SCO) to respect “territorial integrity” and “sovereignty”.

    What is SCO?

    • After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
    • The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
    • The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
    • Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority.
    • The fight against the “three evils” of terrorism, separatism and extremism has become its mantra. Today, areas of cooperation include themes such as economics and culture.

    Try this PYQ now:

    Q. In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?

    (a) United Nations Environment Programme

    (b) World Trade Organization

    (c) ASEAN- India Free Trade Agreement

    (d) G-20 Summits

    India’s entry to the SCO

    • India and Pakistan both were observer countries.
    • While Central Asian countries and China were not in favour of expansion initially, the main supporter — of India’s entry in particular — was Russia.
    • A widely held view is that Russia’s growing unease about an increasingly powerful China prompted it to push for its expansion.
    • From 2009 onwards, Russia officially supported India’s ambition to join the SCO. China then asked for its all-weather friend Pakistan’s entry.

    Tap to read more about SCO

  • What is OPEC+?

    Oil prices jumped by close to 10% for its biggest daily gain in almost six months after news of a highly effective vaccine against COVID-19 and Saudi Arabia’s assurance that an OPEC+ oil output deal could be adjusted to balance the market.

    About OPEC

    • OPEC stands for Organization of the Petroleum Exporting Countries.
    • It is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
    • It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
    • It is headquartered in Vienna, Austria.
    • OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
    • Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.

    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.

    Why OPEC plus came into existence?

    • When Russia concluded the Vienna Agreement in 2016, the Russian leadership believed that it would help prepare the country for the Russian presidential elections in March 2018.
    • Higher oil prices ensured the Kremlin’s financial capacity to lead a successful electoral campaign.
    • This changed the regime’s priorities – from satisfying the needs of the general population to ensuring the sustainability of the Kremlin’s alliance with powerful tycoons, including that controlling oil production.
    • For Saudi Arabia, turning what had been an ad hoc coalition into a formal group provides a hedge (protection) against future oil-market turbulence.
    • For Russia, the formalization of the group helps expand Putin’s influence in the Middle East
    • However, both reportedly aimed at causing a drop in oil prices in order to hit US shale producers, who have continued to benefit from OPEC production cuts by expanding their market share.

  • Armenia, Azerbaijan agree on peace deal

    Armenia and Azerbaijan agreed on a deal with Russia to end fierce clashes over Nagorno-Karabakh after a string of Azerbaijani victories in its fight to retake the disputed region.

    Ending up the bloodshed

    • During the course of the conflict, over 1200 have lost their lives as per the Nagorno-Karabakh authorities, while thousands have been displaced.
    • Since the conflict started in September, multiple ceasefire agreements have been signed between the two sides, but none so far have been successful.
    • The deal is meant to end the conflict between the two nations.
    • Russia’s role in the conflict has been somewhat opaque since it supplies arms to both countries and is in a military alliance with Armenia called the Collective Security Treaty Organisation.

    What is the Nagorno-Karabakh region?

    • Straddling western Asia and Eastern Europe, Nagorno-Karabakh is internationally recognised as part of Azerbaijan, but most of the region is controlled by Armenian separatists.
    • It has been part of Azerbaijan territory since the Soviet era.
    • When the Soviet Union began to collapse in the late 1980s, Armenia’s regional parliament voted for the region’s transfer to Armenia; the Soviet authorities turned down the demand.
    • Years of clashes followed between Azerbaijan forces and Armenian separatists.
    • The violence lasted into the 1990s, leaving tens and thousands dead and displacing hundreds of thousands.
    • In 1994, Russia brokered a ceasefire, by which time ethnic Armenians had taken control of the region.

    Consider this PYQ:

    Q.The area is known as ‘Golan Heights’ sometimes appears in the news in the context of the events related to: (CSP 2015)

    a) Central Asia
    b) Middle East
    c) South-East Asia
    d) Central Africa

    Who controls it?

    • While the area remains in Azerbaijan, it is today governed by separatist Armenians who have declared it a republic called the “Nagorno-Karabakh Autonomous Oblast”.
    • While the Armenian government does not recognise Nagorno-Karabakh as independent, it supports the region politically and militarily.

    Ethnicity and the conflict

    • Ethnic tensions from decades ago have a crucial role in the dispute.
    • While the Azeris claim that the disputed region was under their control in known history, Armenians maintain that Karabakh was a part of the Armenian kingdom.
    • At present, the disputed region consists of a majority Armenian Christian population, even though it is internationally recognised as a part of Muslim-majority Azerbaijan.

  • Unfurling India’s foreign policy concerns

    The article analyses two major concerns of India which would be influenced by the policies adopted by the next U.S. President. 

    Concern for India

    • What policy President-elect Joe Biden will adopt in its foreign policy will has bearing on India.
    • There are two foreign policy issues which are of great concern and interest — China and Iran in that order.
    • For the world, the equation between the United States and China may be the relationship of the greatest consequence.
    • For India, the most consequential relationship is not with the U.S. — as is sometimes claimed — but one with China.
    • What happens in greater West Asia will always remain of concern, but those interests will not be affected one way or the other by who is the President of the U.S.

    Quad dynamics and China

    • In the Trump years, India signed all the ‘foundational’ agreements with America.
    • India also bought billions of dollars worth of military hardware from them.
    • India resisted converting the Quad into a primarily military or strategic grouping, and is in fact aimed solely at containing China.
    • The Quad is an anti-China coalition.
    • How far it can be successful in containing the Dragon remains to be seen.
    • India’s External Affairs Minister has stated, India will not join any military alliance.
    • However, given the fact that all the other three, and perhaps five or six in future, are already in strategic alliance with one another and with the U.S., it is highly likely that India too will be forced to agree to some form of military alliance at a future date.
    • But no external power would want to get involved on our side in case of major hostilities with China.
    • On the other hand, if there is a major skirmish or worse in the South China Sea, the other members of the Quad will expect us to join them in fighting China, in an area far removed from our shores.

    Approach towards China

    • If Mr. Biden adopts a more conciliatory approach towards China, India may find ourselves in a difficult situation.
    • We do not want China to be permanently hostile to us; it will absorb huge resources, human and material.
    • The strong rhetoric employed in relation to China will need to be tempered.
    • Public opinion which has been worked up against China may make it difficult to do so immediately but the government is efficient in managing and moulding public opinion.

    Approach toward Iran

    • It may be difficult for Mr. Biden to quickly reverse Mr. Trump’s adventurist policy towards Iran.
    • It may not be possible for him given the domestic compulsions, to readopt JCPOA in its original form.
    • But he will surely, if slowly, engage Tehran in talks and negotiations through Oman or some other intermediary, to reduce tensions in the region.
    • India may be able to buy Iranian oil, and sell our pharma and other goods to that country.
    • The government may also feel less constrained in investing openly in oil and other infra projects in Iran, including the rail project in which Indian Railways Construction Ltd has been interested.

    Conclusion

    While India can’t expect the reversal of all Trump era policies, there will be certain changes in the stance adopted by the new U.S. President and India should be prepared to deal with it.

  • 15th Finance Commission submits report to President

    The 15th Finance Commission, chaired by NK Singh, on Monday submitted its final report for 2021-22 to 2025-26 to the President.

    Try this PYQ:

    With reference to the Finance Commission of India, which of the following statements is correct?

    (a) It encourages the inflow of foreign capital for infrastructure development

    (b) It facilitates the proper distribution of finances among the Public Sector Undertakings

    (c) It ensures transparency in financial administration

    (d) None of the statements (a), (b) and (c) given above is correct in this context

    Key recommendations that would feature in its final report:

    • A separate defence and national security: The viability of creating a separate defence and national security fund as suggested by the Centre.
      • States would keenly await these recommendations as it may translate into a lower share of funds for them.
    • GST compensation dues to States: The panel is also expected to factor in unpaid GST compensation dues to States for this year, while working out State’s revenue flow calculations for the years beyond 2022.

    Formula that decides a State’s share:

    Weight in 15th FC Parameters Weight in 14th FC
    15 (2011 Census) Population 27.5 (17.5 – 1972, 10 – 2011 Census)
    15 Area 15
    10 Forest and Ecology 7.5
    45 Income Distance 50
    12.5 Demographic Performance –
    2.5 Tax Effort

    What is the Finance Commission?

    • The Finance Commission (FC) was established by the President of India in 1951 under Article 280 of the Indian Constitution.
    • It was formed to define the financial relations between the central government of India and the individual state governments.
    • The Finance Commission (Miscellaneous Provisions) Act, 1951 additionally defines the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.
    • As per the Constitution, the FC is appointed every five years and consists of a chairman and four other members.
    • Since the institution of the First FC, stark changes in the macroeconomic situation of the Indian economy have led to major changes in the FC’s recommendations over the years.

    Constitutional Provisions

    Several provisions to bridge the fiscal gap between the Centre and the States were already enshrined in the Constitution of India, including Article 268, which facilitates levy of duties by the Centre but equips the States to collect and retain the same.

    Article 280 of the Indian Constitution defines the scope of the commission:

    1. The President will constitute a finance commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.
    2. Parliament may by law determine the requisite qualifications for appointment as members of the commission and the procedure of selection.
    3. The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources.

    Why need the Finance Commission?

    • As a federal nation, India suffers from both vertical and horizontal fiscal imbalances.
    • Vertical imbalances between the central and state governments result from states incurring expenditures disproportionate to their sources of revenue, in the process of fulfilling their responsibilities.
    • However, states are better able to gauge the needs and concerns of their inhabitants and therefore more efficient at addressing them.
    • Horizontal imbalances among state governments result from differing historical backgrounds or resource endowments and can widen over time.
    • The first FC was established in 1951 by Dr B.R. Ambedkar, the then-incumbent law minister, to address these imbalances.

    Important functions

    • Distribution of net proceeds of taxes between Center and the States, to be divided as per their respective contributions to the taxes.
    • Determine factors governing Grants-in-Aid to the states and the magnitude of the same.
    • To make recommendations to the president as to the measures needed to augment the Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the finance commission of the state.
    • Any other matter related to it by the president in the interest of sound finance.

    Members of the Finance Commission

    • The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards.
    • It laid down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers.
    • The Chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who:
    1. Are, or have been, or are qualified, as judges of a high court,
    2. Have knowledge of government finances or accounts, or
    3. Have had experience in administration and financial expertise; or
    4. Have special knowledge of economics

  • How a Biden’s Presidency may affect India?

    Donald Trump’s rise to the White House as well as his exit has led to a wide reactionary response in India.

    Also read:

    [Burning Issue] India US relations in the backdrop of recent hiccups

    (1) Economic Impact

    Trade

    • There are several ways in which the US economy, its health and the policy choices of its government affect India.
    • For one, the US is one of those rare big countries with which India enjoys a trade surplus. In other words, we export more goods to the US than what we import from it.
    • The trade surplus has widened from $5.2 billion in 2001-02 to $17.3 billion in 2019-20.
    • Under a Biden administration, India’s trade with the US could recover from the dip since 2017-18.

    FDI and FPI

    • The US is the fifth-biggest source for Foreign Direct Investment (FDI) into India. Of the total $476 billion FDI that has come in since April 2000, the US accounted for $30.4 billion — roughly 6.5 per cent — directly.
    • Only Mauritius, Singapore, Netherlands, and Japan have invested more FDI since 2000.
    • Apart from FDI the US also accounts for one-third of all Foreign Portfolio Investments (that is, investment in financial assets) into India.

    Ending protectionism

    • A Biden presidency may also see a renewed push towards a rules-based trading system across the world.
    • Instead of outright ad-hocism as was the case under Trump — as well as a move away from the protectionist approach that has been getting strong across the world.

    (2) Visa

    • For instance, how a US President looks at the H1-B visa issue, affects the prospects of Indian youth far more than the youth of any other country.
    • Under Trump, who severely curtailed the visa regime, thanks to his policy of “America First”, India had suffered the most.
    • That could change under Biden, who is unlikely to view immigrants and workers from India with Trump-like suspicion.

    (3) Technology

    • Other points of contention between India and the US are the tricky issue of data localisation or capping prices of medicines and medical devices.
    • These have a better chance of getting towards a resolution as we move away from the radical approach of President Trump to the pragmatism of a Biden presidency.

    (4) Diplomacy

    • Further, under the Trump administration, the US sanctions on Iran severely limited India’s sourcing of cheap crude oil.
    • For an economy such as India, which needs a regular supply of cheap oil to grow fast, a normalization of US-Iran relationship (and lifting of sanctions) would be more than useful.
    • On China, too, while the US apprehensions are unlikely to be fewer. It is more likely that a Biden administration will help India against China, instead of clubbing the two together.

    (5) Climate Action

    • Biden has promised to rejoin the Paris Climate Accord, and this may help countries such as India in dealing with the massive challenges — both technical and financial — on this front.

  • [pib] Income Tax Appellate Tribunal

    PM will inaugurate the office cum residential complex of Income Tax Appellate Tribunal (ITAT) at Cuttack in Odisha.

    Income Tax Appellate Tribunal

    • Income Tax Appellate Tribunal, also known as ITAT, is an important statutory body in the field of direct taxes and its orders are accepted as final, on findings of fact.
    • ITAT was the first Tribunal to be created on 25th January, 1941 and is also known as ‘Mother Tribunal’.
    • Starting with three benches, at Delhi, Bombay and Calcutta it has now grown to 63 Benches and two circuit benches spread across thirty cities of India.
    • With a view to ensuring highest degree of independence of the ITAT, it functions under the Department of Legal Affairs in the Ministry of Law and Justice and is kept away from any kind of control by the Ministry of Finance.

    Did you notice this?

    ITAT was the very first tribunal constituted in India! And it functions under the Ministry of Law and Justice and not the obvious looking Ministry of Finance.

    It’s Functioning

    • It is the second appellate authority under the direct taxes and first independent forum in its appellate hierarchy.
    • The orders passed by the ITAT can be subjected to appellate challenge, on substantial questions of law, before the respective High Court.
    • Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from ₹15 lakh to ₹50 lakh in 2016 Union Budget.

  • India-Maldives relations

    The Soleh government’s ‘India First Policy’ provides respite to India when contrasted with the approach of the predecessors.

    India-Maldives relations

    • India and the Maldives have had bilateral relations for centuries.
    • Maldivian students attend educational institutions in India.
    • Patients from the Maldives come here for super speciality healthcare.
    •  A liberal visa-free regime extended by India has aided the patients.
    • The Maldives is now a major tourist destination for some Indians and a job destination for others.
    • Given the geographical limitations imposed on the Maldives, India has exempted the nation from export curbs on essential commodities.

    Assistance to the Maldives

    • In 1988, under Operation Cactus when a coup was attempted against President, India sent paratroopers and Navy vessels and restored the legitimate leadership.
    • The 2004 tsunami and the drinking water crisis in Male a decade later were other occasions when India rushed assistance.
    • In COVID-19 disruption, India rushed $250 million aid in quick time and also rushed medical supplies to the Maldives, started a new cargo ferry and also opened an air travel bubble, the first such in South Asia.

    Strategic comfort to India

    • Abdulla Yameen was President when the water crisis occurred.
    • Now, the Yameen camp has launched an ‘India Out’ campaign against New Delhi’s massive developmental funding.
    • Maldivian protesters recently demanded the Solih administration to ‘stop selling national assets to foreigners’, implying India.
    • Mr. Yameen’s tilt towards China and bias against India when in power was evident.
    • It is against this background that the Solih administration’s no-nonsense approach towards trilateral equations provide ‘strategic comfort’ to India.

    Concerns for India

    • India should be concerned about the protests as well as the occasional protest within the ruling Maldivian Democratic Party (MDP) of Mr. Solih.
    • There are apparent strains between Mohamed Nasheed, who was the nation’s first President elected under a multiparty democracy and Mr. Yameen.
    • This strain could affect the MDP during the run-up to the 2023 presidential polls.
    • Also, Mr. Nasheed’s on-again-off-again call for a changeover to a ‘parliamentary form of government’ can polarise the overpoliticised nation even more.

    Conclusion

    Given this background and India’s increasing geostrategic concerns in the shared seas, taking forward the multifaceted cooperation to the next stage quickly could also be at the focus of relations of the two countries.