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GS Paper: GS3

  • Taxation in India: Classification, Types, Direct tax, Indirect tax

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    Taxation in India

    The India Constitution is quasi-federal in nature, and the country has three tier government structure.

    To avoid any disputes between the centre and state the Constitution envisage following provisions regarding taxation:

    • Division of powers to levy taxes between centre and state is clearly defined.
    • There are certain taxes which are levied by the centre, but their proceeds are distributed between both centre and the state. Example- Union Excise Duty.
    • There are certain taxes which are levied by the centre, but their proceeds are transferred to the states. Example-Estate duty on property other than agriculture income.
    • There are certain taxes which are levied by the central government, but the responsibility to collect them is vested with the states. Example- Stamp Duty other than included in the Union List.
    • There are certain taxes which are levied by the states, and their proceeds are also kept by states. Example: Erstwhile VAT

    Classification of Taxes in India

    What is a Tax?

    Taxes are generally an involuntary fee levied on individuals and corporations by the government in order to finance government activities. Taxes are essentially of quid pro quo in nature. It means a favour or advantage granted in return for something.

    Key Differences between Direct Tax and Indirect Tax

    Basis Direct Tax Indirect Tax
    Meaning The tax that is levied by the government directly on the individuals or corporations are called Direct Taxes. The tax that is levied by the government on one entity (Manufacturer of goods), but is passed on to the final consumer by the manufacturer.
    Incidence The incidence and impact of the direct tax fall on the same person. The incidence and impact of the tax fall on different persons.
    Examples Income Tax, Corporation Tax and Wealth Tax. VAT, Service tax, GST, Excise duty, entertainment tax and Customs Duty.
    Nature They are progressive in nature. They are regressive in nature.
    Objective Both Social and Economical. Social objective of direct tax is the distribution of income. A person earning more should contribute more in the provision of public service by paying more tax. This provision is also known as progressive taxation. Only Economical. When an indirect tax is levied on a product, both rich and poor must pay at the same rate. A person earning 10 lakh a month pays the same tax on the Wheat purchase as the person earning 3000 Re a month. This principle is called regressive taxation.
    Impact Not at all Inflationary. Is inflationary.

    Understanding Regressive Nature of Indirect Taxes.

    Government Levies a tax of 5 percent on a pack of 5KG Rice worth Re1000.

    Tax Burden on the Pack: 5/100*1000= 50 Re

    • Rich Individual Case (Monthly Earning 1 Lakh)

    He buys the rice pack and pays a tax of 50 Re.

    The proportion of his income that went on paying tax on Rice is 0.05 Percent (50/100000) of his total earning.

    • Poor Individual Case (Monthly income 1000 Re)

    He buys Rice pack and pays a tax of Re 50.

    The proportion of his income that went on paying tax on rice is 5 percent (50/1000) of his total earning.

    As you can clearly see, a poor individual is paying a higher proportion of his income as indirect tax as compared to the richer individual.

    Key Differences between Ad valorem and Specific Tax

    Ad Valorem Tax Specific Tax
    Ad valorem tax is based on the assessed value of the product. In Fact, ‘Ad Valorem’ is a Latin word meaning ‘According to Value’. Specific tax is a fixed amount tax based on the quantity of unit sold.
    Most Ad valorem taxes are levied based on the value of the item purchased. Specific tax is levied based on the volume of the item purchased.
    The tax is usually expressed in percentage. Example GST in India has 5 tax rate slabs- 0, 5. 12, 18 and 28 percent. The tax is usually expressed in specific sums. Example: Excise Duty on Petrol.
    Example: GST, Property tax, sales tax. Example: Excise duty on petrol and liquor products.
    They are progressive in nature. They are regressive in nature.

    Types of Taxes in India

    In India, Taxes are levied on income and wealth. Taxes are broadly classified into two main categories: Direct Tax and Indirect tax. Direct taxes are levied directly on individuals and entities, with income tax and corporate tax being prime examples. These taxes are based on the taxpayer’s ability to pay. Indirect taxes, on the other hand, are imposed on goods and services, such as Goods and Services Tax (GST) and excise duty. Each type of tax plays a crucial role in government revenue and economic regulation, contributing to national development.

    Direct Taxes in India

    Direct taxes in India are levied directly on individuals and corporations based on their income or profit. Key types include Income Tax, imposed on individual earnings; Corporate Tax, charged on company profits; and Wealth Tax (though currently abolished), which taxed an individual’s wealth. These taxes ensure equitable distribution of wealth and provide significant revenue for the government.

    Income Tax

    • Income tax is levied on the income of individuals, Hindu undivided families, unregistered firms and other association of people.
    • In India, the nature of income tax is progressive.
    • For taxation purpose income from all sources is added and taxed as per the income tax slabs of the individual.
    • The budget of 2017-18 proposed the following slab structure:
    Income Slab (less than 60 years) Tax Rate
    Up to 2,50,000 No Tax
    Up to 2,50,000 to 5,00,000 5%
    Up to 5,00,000 to 10,00,000 20%
    Excess of 10,00,000 30%
       

    Surcharge of 10% of income tax where the total income exceeds Rs 50 lakh up to Rs 1 Crore.

    Surcharge of 15% of income tax, where the total income exceeds Rs 1 Crore.

    Corporation Tax

    • Corporation tax levied on the income of corporate firms and corporations.
    • For taxation purpose, a company is treated as a separate entity and thus must pay a separate tax different from personal income tax of its owner.
    • Companies both public and private which are registered in India under the companies act 1956 are liable to pay corporate tax.
    • The Budget 2017-18 proposed following tax structure for domestic corporate firms:
    • For the Assessment Year 2017-18 and 2018-19, a domestic company is taxable at 30%.
    • For Assessment Year 2017-18, the tax rate would be 29% where turnover or gross receipt of the company does not exceed Rs. 5 crores in the previous year 2014-15.
    • However, for Assessment year 2018-19, the tax rate would be 25% where turnover or gross receipt of the company does not exceed Rs. 50 crores in the previous year 2015-16.

    Wealth Tax or Capital Tax

    Estate Duty: First introduced in 1953. It was levied on the total property passing on the death of a person. The whole property of the deceased person constituted his wealth and is liable for the tax. The tax now stands abolish w.e.f 1985.

    Wealth Tax: First introduced in 1957. It was levied on the excess of net wealth (over 30,00,00,0 @ 1 percent) of individuals, joint Hindu families and companies. Wealth tax has been a minor source of revenue. The tax now stands abolish wef 2015.

    Gift Tax: First introduced in 1958. The gift tax was levied on all donations except the one given by the charitable institution’s government companies and private companies. The tax now stands abolished wef 1998.

    Capital Gain Tax: Ay profit or gain that arises from the sale of the capital asset is a capital gain. The profit from the sale of capital is taxed. Capital Asset includes land, building, house, jewellery, patents, copyrights etc.

    • Short-term capital asset – An asset which is held for not more than 36 months or less is a short-term capital asset.
    • Long-term capital asset – An asset that is held for more than 36 months is a long-term capital asset.
      From FY 2017-18 onwards – The criteria of 36 months has been reduced to 24 months in the case of immovable property being land, building, and house property.
    • For instance, if you sell house property after holding it for a period of 24 months, any income arising will be treated as long-term capital gain provided that property is sold after 31st March 2017.

    But this change is not applicable to movable property such as jewellery, debt oriented mutual funds etc. They will be classified as a long-term capital asset if held for more than 36 months as earlier.

    • Tax on long-term capital gain: the Long-term capital gain is taxable at 20% + surcharge and education cess.
    • Tax on the short-term capital gain when securities transaction tax is not applicable: If securities transaction tax is not applicable, the short-term capital gain is added to your income tax return, and the taxpayer is taxed according to his income tax slab.
    • Tax on the short-term capital gain if securities transaction tax is applicable: If securities transaction tax is applicable, the short-term capital gain is taxable at the rate of 15% +surcharge and education cess.

    Indirect Taxes in India

    Indirect taxes in India are levied on goods and services rather than on income or profits. Key examples include the Goods and Services Tax (GST), excise duty, and customs duty, which impact consumer prices and government revenue.

    Custom Duty

    • It is a duty levied on exports and imports of goods.
    • Import duty is not only a source of revenue from the government but also have also been employed to regulate trade.
    • Import duties in India is levied on ad valorem basis.
    • Example: if an Indian plan to buy a Mercedes from abroad. He must pay the customs duty levied on it.
    • The purpose of the customs duty is to ensure that all the goods entering the country are taxed and paid for.
    • Just as customs duty ensures that goods for other countries are taxed, octroi is meant to ensure that goods crossing state borders within India are taxed appropriately.
    • It is levied by the state government and functions in much the same way as customs duty does.

    Excise Duty

    • An excise duty is in the true sense is a commodity tax because it is levied on production of goods in India and not on the sale of the product.
    • Excise duty is explicitly levied by the central government except for alcoholic liquor and narcotics.
    • It is different from customs duty because it is applicable only to things produced in India and is also known as the Central Value Added Tax or CENVAT.

    Service Tax

    • Service tax is levied on the services provided in India.
    • Service tax was first introduced in 1994-95 on three services telephone services, general insurance and share broking.
    • Since then, every year the service net has been widened by including more and more services. We now have an exclusion criterion based on ‘negative list’, where some services are excluded out of tax net.
    • The current rate of service tax in India was 15% before being replaced by Goods and Service tax.

    Value Added Tax

    • The India’s indirect tax structure is weak and produces cascading effects.
    • The structure was by, and large uncertain and complex and its administration was difficult.
    • As a result, various committees on taxation recommended ‘Value Added Tax’. The Indirect Taxation enquiry committee argued for VAT.
    • The VAT has a self-monitoring mechanism which makes tax administration easier.
    • The VAT is properly structured removes distortions.
    • Accordingly, VAT has been introduced in India by all states and UTs (except UTs of Andaman Nicobar and Lakshadweep).
    • The State VAT being implemented till 1 July 2017, had replaced erstwhile Sales Tax of States.
    • The tax is levied on various goods sold in the state, and the amount of the tax is decided by the state itself.

    Goods and Services Tax(GST)

    GST is a comprehensive indirect tax introduced in India on July 1, 2017. It aims to simplify the taxation process by unifying multiple indirect taxes into a single tax structure. GST is applied to the supply of goods and services, with rates varying based on the category of the product or service. The main features of GST include a dual tax structure (Central GST and State GST), seamless input tax credit, and a focus on transparency and efficiency in tax administration. GST has streamlined the tax system, promoting ease of doing business and boosting economic growth in India.

    Indirect Taxes in a nutshell

    Tax Who Levies Revenue goes to Nature Incidence Levied on
    Custom Duty Central Government Centre Govt Progressive Shifts to Final Consumer Export and Import
    Excise Duty/CENVAT Central Government Both Centre and State progressive Shifts to Final Consumer Domestically Manufactured Goods
    Service Tax Central Government Centre Govt Regressive Shifts to Final Consumer All Services
    VAT State Government State Govt Regressive Shifts to Final Consumer Sale of Goods in the States

    Conclusion

    For UPSC aspirants, understanding the intricacies of taxation in India, including its classifications, impacts on the economy, and recent reforms, is essential for comprehensive preparation. This knowledge not only aids in tackling examination questions but also provides insights into India’s fiscal policies and their implications on development.

    FAQs

    Why is understanding direct and indirect taxes important for UPSC?

    Understanding direct and indirect taxes is essential for UPSC aspirants as it provides insights into India’s tax system, economic policies, and fiscal responsibilities. This knowledge is vital for answering questions related to taxation in the UPSC exams.

    Why is understanding taxation in India crucial for UPSC aspirants?

    Understanding taxation in India is crucial for UPSC aspirants because it directly influences the economy and public governance. Knowledge of direct and indirect taxes helps candidates analyze fiscal policies, which are often included in the exam syllabus. This understanding is essential for effective exam preparation and for informed decision-making as future civil servants.

     

    By
    Himanshu Arora
    Doctoral Scholar in Economics & Senior Research Fellow, CDS, Jawaharlal Nehru University

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  • India Internal Security | Various Security forces and agencies and their mandate

    CENTRAL POLICE FORCES (CPFs)

    There are seven Central Police Forces under the Union Government, namely

    • Assam Rifles (AR),
    • Border Security Force (BSF),
    • Central Reserve Police Force (CRPF),
    • Central Industrial Security Force (CISF),
    • Indo-Tibetan Border Police (ITBP),
    • Sashashtra Seema Bal (SSB) and
    • National Security Guard (NSG)

    Assam Rifles (AR)

    Known as ‘Friends of the Hill People’, Assam Rifles, raised initially as Cachar Levy in 1835, is the oldest Police Force in the country with headquarters at Shillong.

    The Force has a dual role of maintaining internal security in the North Eastern region and guarding the Indo- Myanmar Border.

    The Assam Rifles contribution towards assimilation of the people of the North-East into the national mainstream is truly monumental.

    They perform many roles including the provision of internal security under the control of the army through the conduct of counter insurgency and border security operations, provision of aid to the civil power in times of emergency, and the provision of communications, medical assistance and education in remote areas.

    In times of war they can also be used as a combat force to secure rear areas if needed.

    A helping hand for humanitarian causes and in natural calamities.

    Undertakes development activities in the North-East by way of construction of roads and tracks, water sup schemes, schools, community halls, play grounds for village children and repair/ maintenance of buildings in the remote areas.

    Since 2002 It is Border Guarding Force for the Indo–Myanmar border as per the government policy “one border one force” and is also its lead intelligence agency.

    Border Security Force (BSF)

    The Border Security Force (BSF) is the primary Border Guarding police force of India. It was raised in the wake of the 1965 War on 1 December 1965, “for ensuring the security of the borders of India and for matters connected there with”.

    Till 1965 India’s borders with Pakistan were manned by the State Armed Police Battalion.

    BSF was raised in 1965 and the multiplicity of State forces guarding the Indian borders with the neighbouring countries was done away with.

    Its operational responsibility is spread over 6385.36 kms. of international border along Indo-Pakistan, Indo-Bangladesh borders. BSF is also deployed on LoC in J&K under operational control of the Army.

    It currently stands as the world’s largest border guarding force. BSF has been termed as the First Wall of Defence of Indian Territories.

    BSF is the only Central Armed Police force to have its own Air Wing, Marine Wing and artillery regiments, which support the General Duty Battalions in their operations.

    Three battalions of the BSF, located at Kolkata, Guwahati and Patna, are designated as the National Disaster Response Force (NDRF). The battalions are equipped and trained for all natural disasters including combating Nuclear, Biological and Chemical (NBC) disasters.

    Central Reserve Police Force (CRPF)

    Initially raised as Crown Representative Police on July 27, 1939 at Neemuch (MP), the Force was rechristened as Central Reserve Police Force (CRPF) after Independence.

    The Force is presently handling a wide range of duties covering law and order, counter insurgency, anti-militancy and anti terrorism operations.

    The Force plays a key role in assisting States in maintaining public order and countering subversive activities of militant groups.

    The Central Reserve Police Force is the largest of India’s Central Armed Police Forces.

    It is also operating abroad as part of United Nations peacekeeping missions.

    In recent years, the Government of India has decided to use each security agency for its mandated purpose. As a result, the counter-insurgency operations in India have been mainly entrusted to the CRPF.

    Rapid Action Force (RAF)

    The Rapid Action Force (RAF) is a specialised wing of the CRPF.

    It was established in 1991 with headquarters in New Delhi, to deal with riots, riot like situations, crowd control, rescue and relief operations, and related unrest.

    The personnel in RAF are trained and equipped to be an effective Strike Force in communal riots or similar situations.

    These Battalions are located at 10 communally sensitive locations across the country to facilitate quick response in case of such incidents.

    Central Industrial Security Force (CISF)

    Raised in the year 1969, CISF is presently providing security cover to important installations like space and atomic energy establishments, sea ports, airports, coal mines, steel plants, thermal and hydel power plants, oil and petrochemicals installations, heavy industries, defence establishments, security presses, museums and historical monuments.

    The specialized task of airport security was assigned to CISF in the wake of hijacking of Indian Airlines plane to Kandhar.

    The charter of CISF has been expanded to provide security cover to VIPs as well as to provide technical consultancy services relating to security and fire protection to industries in public and private sectors.

    After the Mumbai terrorist attack on November 2008, the mandate of the force has been broadened to provide direct security cover to private sector also by amending the CISF Act.

    Indo-Tibetan Border Police (ITBP)

    Indo-Tibetan Border Police Force was raised in the wake of India China conflict in 1962.

    ITBP is a mountain trained Force. Forces are called “Himveer”.

    It is deployed from the north-western extremity of the Indo-China Border upto the tri-junction of India, China & Nepal covering mountainous terrains.

    Presently, battalions of ITBP are deployed on border guard duties from Karakoram Pass in Ladakh to Diphu La in Arunachal Pradesh, on the India-China border.

    ITBP plays an important role in organizing the annual Kailash Mansarovar Yatra besides providing assistance in disaster management in the central and western Himalayan regions. New challenging role that has emerged for ITBP is disaster management as it is the first responder for natural Disaster in Himalayas.

    ITBP is in the forefront of movement for the preservation of Himalayan environment & ecology.

    Being the only human presence on forward areas, it has taken on itself the task of maintaining the delicate balance of flora and fauna.

    ITBP conducts a large number of medical civic action programmes in remote border and terrorist affected areas to provide free and expert medical, health and hygiene care to the civilian population in remote villages.

    Sashastra Seema Bal (SSB)

    Special Service Bureau (SSB) was set up in the early 1963 in the wake of India China conflict of 1962 to build people’s morale and inculcate spirit of resistance in the border population against threats of subversion, infiltration and sabotage from across the border.

    However, the Force has now been rechristened Sashastra Seema Bal and its charter of duty has been amended. It has been given the border guarding responsibilities along the Indo-Nepal and Indo-Bhutan Borders.

    Role and Mandate of SSB:

    • As a border guarding force and lead intelligence agency (LIA) for Indo-Nepal border and Indo-Bhutan border.
    • To promote sense of security among the people living in the border area.
    • To prevent trans-border crimes and unauthorized entries into or exit from the territory of India.
    • To prevent smuggling and other illegal activities.

    National Security Guard (NSG)

    National Security Guard was raised in 1984, following Operation Blue Star and the assassination of Indira Gandhi, “for combating terrorist activities with a view to protect States against internal disturbances”

    It has been modelled on the pattern of SAS of the UK and GSG-9 of Germany. It is a task oriented Force and has two complementary elements in the form of the Special Action Group (SAG) comprising Army personnel and the Special Rangers Group (SRG) comprising personnels drawn from the Central Police/State Police Forces.

    The NSG’s is trained to conduct counter terrorist task to including counter hijacking tasks on land, sea, and air; Bomb disposal (search, detection and neutralization of IEDs); PBI (Post Blast Investigation) and Hostage Rescue missions.

    The primary role of this Force is to combat terrorism in whatever form it may assume in areas where activity of terrorists assumes serious proportions, and the State Police and other Central Police Forces cannot cope up with the situation.

    The Force is not designed to undertake the functions of the State Police Forces or other Para Military Forces of the Union of India.

    Other forces/institutions

    National Disaster Response Force (NDRF):

    The National Disaster Response Force (NDRF) is a police force constituted “for the purpose of specialist response to a threatening disaster situation or disaster” under The Disaster Management Act, 2005.

    National Disaster Management Authority (NDMA) is the “apex Body for Disaster Management” in India. The Chairman of the NDMA is the Prime Minister.

    NDRF in addition to being able to respond to natural disasters, has Four battalions capable of responding to radiological, nuclear, biological and chemical disasters.

    Role and Mandate of NDRF:

    • Specialized response during disasters
    • Proactive deployment during impending disaster situations
    • Liaison, Reconnaissance, Rehearsals and Mock Drills
    • Impart basic and operational level training to State Response Forces (Police, Civil Defence and Home Guards)
    • Conduct Community Capacity Building Programmes and Public Awareness Campaigns

    Home Guards

    Home Guards constitute a voluntary force, first raised in India in December 1946, to assist the police in controlling civil disturbances and communal riots. Subsequently, the concept of a voluntary citizens’ force was adopted by several States.

    In the wake of Chinese aggression in 1962, the Centre advised the States/Union territories to merge their existing voluntary organisations into a single uniform voluntary force called Home Guards.

    The role of Home Guards is to serve as an auxiliary to the police in the maintenance of internal security, help the community in emergencies such as, air-raids, fires, cyclones, earthquakes, epidemics, etc; assist the administration in the maintenance of essential services, promotion of communal harmony and protection of the weaker sections of society; and participate in socio-economic & welfare activities for the community and perform Civil Defence duties.

    Home Guards are both rural and urban. In the Border States, Border Wing Home Guards Battalions (BWHGs) have been raised, which serve as an auxiliary to the Border Security Force.

    Home Guards are raised under the State/UT Home Guards Acts and Rules. They are recruited from various cross-sections of people, such as doctors, engineers, lawyers, private sector organisations, college and university students, agricultural and industrial workers, etc. who devote their spare time for the organisation to help for the betterment of the community.

    All citizens of India, who are in the age group of 18-50 years, are eligible to become members of Home Guards. The normal tenure of membership in the organisation is 3 to 5 years.

    The National Foundation for Communal Harmony

    The National Foundation for Communal Harmony (NFCH) was set up in 1992 as an autonomous body registered under the Societies Registration Act, 1860, under the administrative control of MHA. The Foundation is providing assistance for the physical and psychological rehabilitation of the child victims of communal, caste, ethnic or terrorist violence, with special reference to their care, education and training besides promoting communal harmony, fraternity and national integration.

    The Foundation also undertakes and encourages activities which promote belief in the principles of non-violence in resolving disputes between different religious and other groups in society.

    Foundation also associates itself under the project ‘SAMANVAYA’ with important inter-community festivals like, “phool-walon-ki-sair” in Delhi and Nauchandi festival in Meerut, with a view to promoting better understanding, communal harmony and national integration. The Foundation provides assistance to non-government organizations under the project “Co-operation” to promote the objective of the Foundation.

     

    CENTRAL INTELLIGENCE AND INVESTIGATIVE AGENCIES

    National Investigative Agencies (NIA)

    NIA was created after the 2008 Mumbai terror attacks as need for a central agency to combat terrorism was realised.

    National Investigation Agency (NIA) acts as the Central Counter Terrorism Law Enforcement Agency.

    The agency is empowered to deal with terror related crimes across states without special permission from the states.

    Various Special Courts have been notified by the Central Government of India for trial of the cases registered at various police stations of NIA under the NIA Act 2008.

    The NIA Special Courts are empowered with all powers of the court of sessions under Code of Criminal Procedure, 1973 for trial of any offense.

    Supreme Court of India has also been empowered to transfer the cases from one special court to any other special court within or outside the state if the same is in the interest of justice in light of the prevailing circumstances in any particular state.

    Bureau of Police Research & Development (BPR&D)

    The Bureau of Police Research & Development was set up in 1970 to identify needs and problems of police in the country, undertake appropriate research project and studies and to suggest modalities to overcome the same.

    It was also mandated to keep abreast of latest developments in the fields of science and

    technology, both in India and abroad, with a view to promoting the use of appropriate technology in police work as a force multiplier.

    Over the years, this organization was also entrusted the responsibility of monitoring the training needs and quality in various State and Central Government police institutions, assisting States in modernization of police forces and looking after the work relating to correctional administration and its modernisation.

    National Crime Records Bureau (NCRB)

    Set up in 1986, the National Crime Records Bureau (NCRB) was assigned the responsibility of crime mapping and analysis, preparing strategy for crime control and modernization of the State police forces with the mission to empower Indian Police with information technology and criminal intelligence.

    Role and Mandate:

    To prepare an enabling IT environment – policy framework, guidelines, architecture, best practices for Police Forces throughout the country

    To obtain, compile, analyze and publish the National Crime Statistics

    To obtain, process and disseminate fingerprint records of criminals including foreign criminals to establish their identity

    To interact with Foreign Police Forces to share IT practices and crime information.

    Central Finger Print Bureau (CFPB)

    The Central Finger Print Bureau came into existence in the year 1955 to trace Inter-State/

    International criminals and is doing a pioneering work in automation of fingerprints at national level by using Automated Fingerprint Identification System (AFIS).

    Narcotics Control Bureau (NCB)

    Narcotics Control Bureau (NCB) was set up in 1986 under the administrative control of Department of Revenue in the Ministry of Finance to function as the nodal agency for taking necessary measures under the provisions of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 for the purpose of preventing and combating abuse of narcotic drugs and psychotropic substances and illicit traffic therein.

    It has been brought under the Ministry of Home Affairs by a notification dated February 18, 2003.

    NCB is also responsible for implementation of the obligations under various International Conventions in respect of countermeasures against illicit traffic, providing assistance to the concerned authorities of various countries and international organizations with a view to facilitating coordination and universal action for prevention and suppression of illicit traffic in narcotic drugs and psychotropic substances. These include control over precursor chemicals, which has been brought under the ambit of NDPS Act, 1985 by an amendment to the Act in 1989. It also acts as a national repository for drug related information.

    Directorate of Revenue Intelligence (DRI):

    DRI is the major intelligence agency which enforces prohibition of smuggling of drugs, gold, diamonds, electronics, foreign currency, counterfeit Indian currency, etc.

    The Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue.

    Role and Mandate:

    Collection of intelligence about smuggling of contraband goods, narcotics, under-invoicing etc. through sources of India and abroad, including secret sources.

    Analysis and dissemination of such intelligence to the field formations for action and working on such intelligence, where necessary.

    To refer cases registered under the Customs Act to the Income Tax Department for action under the Income Tax Act

    Central Bureau of Investigation (CBI):

    At an early stage of World War-II, the Government of India realised that vast increase in expenditure for war efforts had provided opportunities to unscrupulous and anti-social persons, both officials and non-officials, for indulging in bribery and corruption at the cost of public and the Government.

    It was felt that Police and other Law Enforcement Agencies under the State Governments were

    not in a position to cope with the situation. An executive order was, therefore, passed by the Government of India in 1941, setting up the Special Police Establishment (SPE).

    Subsequently, Delhi Special Police Establishment Act, 1946 was brought into existence.

    SPE was renamed the Central Bureau of Investigation on 1st April, 1963.

    CBI derives power to investigate from the Delhi Special Police Establishment Act, 1946. Section 2 of the Act vests DSPE with jurisdiction to investigate offences in the Union Territories only. However, the jurisdiction can be extended by the Central Government to other areas including Railway areas and States under Section 5(1) of the Act, provided the State Government accords consent under the Act.

    Mandate of CBI:

    • Cases in which public servants under the control of the Central Government are involved
    • Cases in which the interests of the Central Government or of any public sector project or undertaking, or any statutory corporation or body set up and financed by the Government of India are involved.
    • Cases relating to breaches of Central Laws with the enforcement of which the Government of India is particularly concerned, e.g.
    1. Breaches of Import and Export Control Orders
    2. Serious breaches of Foreign Exchange Regulation Act,
    3. Passport frauds
    4. Cases under the Official Secrets Act pertaining to the affairs of the Central Government.
    5. Cases of certain specified categories under the Defence of India Act or Rules with which the Central Government is particularly concerned.
    • Other cases of a serious nature, when committed by organized gangs or professional criminals, or cases having ramifications in several States, important cases of kidnapping of children by professional inter-state gangs, etc.
    • These cases are taken up only at the request of or with the concurrence of the State Governments/Union Territories Administrations concerned.

    Intelligence Bureau (IB):

    The Intelligence Bureau (IB) is India’s internal intelligence agency.

    It was recast as the Central Intelligence Bureau in 1947 under the Ministry of Home Affairs.

    The IB was trained by the Soviet KGB from the 1950s onward until the collapse of the Soviet Union.

    IB is used to garner intelligence from within India and also execute counterintelligence and counterterrorism Tasks.

    In addition to domestic intelligence responsibilities, the IB is particularly tasked with intelligence collection in border areas, following the 1951 recommendations of the Himmat Singh Ji Committee (also known as the North and North-East Border Committee), a task entrusted to the military intelligence organisations prior to independence in 1947.

    All spheres of human activity within India and in the neighborhood are allocated to the charter of duties of the Intelligence Bureau. The IB was also tasked with other external intelligence responsibilities as of 1951 until 1968, when the Research and Analysis Wing was formed.

    Research and Analysis Wing (RAW):

    The Research and Analysis Wing (R&AW or RAW) is the primary foreign intelligence agency of India. It was established in 1968 following the intelligence failures of the Sino-Indian and Indo-Pakistani wars, which persuaded the Government of India to create a specialised, independent agency dedicated to foreign intelligence gathering. Previously, both domestic and foreign intelligence had been the purview of the Intelligence Bureau.

    The primary function of R&AW is gathering foreign intelligence and counterterrorism. In addition, it is responsible for obtaining and analysing information about foreign governments, corporations and persons to advise Indian policymakers. It is also involved in the security of India’s nuclear programme.

    In 2004 Government of India added yet another signal intelligence agency called the National Technical Facilities Organisation (NTFO), which was later renamed as National Technical Research Organisation (NTRO). It is believed to be functioning under the titular control of R&AW, although it remains autonomous to some degree. While the exact nature of the operations conducted by NTRO is classified, it is believed that it deals with research on imagery and communications using various platforms.

    The present R&AW objectives include, and are not limited to:

    • Monitoring the political, military, economic and scientific developments in countries which have a direct bearing on India’s national security and the formulation of its foreign policy.
    • Moulding international public opinion and influence foreign governments with the help of the strong and vibrant Indian diaspora.
    • Covert Operations to safeguard India’s National interests.
    • Anti-Terror Operations and neutralising terror elements posing a threat to India

    NATGRID:

    The National Intelligence Grid or NATGRID is the integrated intelligence grid connecting databases of core security agencies of the Government of India to collect comprehensive patterns of intelligence that can be readily accessed by intelligence agencies.

    It was first proposed in the aftermath of the terrorist attacks on Mumbai in 2008.

    NATGRID is an intelligence sharing network that collates data from the standalone databases of the various agencies and ministries of the Indian government.

    It is a counter terrorism measure that collects and collates a host of information from government databases including tax and bank account details, credit card transactions, visa and immigration records and itineraries of rail and air travel.

    This combined data will be made available to 11 central agencies, which are: Research and Analysis Wing, the Intelligence Bureau, Central Bureau of Investigation, Financial intelligence unit, Central Board of Direct Taxes, Directorate of Revenue Intelligence, Enforcement Directorate, Narcotics Control Bureau, Central Board of Excise and Customs and the Directorate General of Central Excise Intelligence.

  • India Internal Security | Role of external state and non-state actors in creating challenges to internal security

    Countries surrounding India have been active in exploiting the volatile situation presented by the turmoil in the northeast. Not only countries such as China, Pakistan, Bangladesh and Myanmar, but also smaller powers such as Bhutan and Nepal have been involved in the region. Through political backing, economic assistance, logistic support, military training or arms supplies these countries have varyingly contributed to the ongoing violence in this region.

    The External State Connections

    China

    Northeastern India is inhabited by Mongoloid tribes who have close ethnic and cultural ties with the tribes in China, Tibet and Burma. Barring Khasis and Jaintias of Meghalaya, almost all hill tribes belong to the Tibeto-Chinese fold and to the Tibeto-Burmese family.

    It was this feeling of affinity towards the border people of erstwhile East Pakistan and Burma that led some of these tribal groups to turn towards their own stock rather than towards the country they resided in.

    Apart from the Nagas, the Chinese also extended moral and material support to the Mizo and Meiti insurgents by arranging for their training in guerilla warfare and subversion in training centres in Yunan province of mainland China and Lhasa in Tibet.

    Bangladesh

    East Pakistan, Bangladesh since 1971, was host to many insurgent activities unleashed against India in the northeastern region.

    The anti-India operations have been largely possible because of the presence of an overwhelming illegal immigrant Bangladeshi population in the northeast. The porosity of the Indo-Bangladesh border has led to many unanticipated problems for India.

    The international terrorist groups like al Qaeda in the Indian Subcontinent (AQIS) and Islamic State of Iraq and Syria (ISIS) have lately focused their attention to the region. Bangladesh has seen a number of terrorist acts in recent times in the form of killing of secular bloggers and liberals purportedly by ISIS or local extremist groups such as Ansarullah Bangla Team (ABT) which draw their inspiration from global Islamism.

    As the extremism grows in Bangladesh, its demonstration effect may lead to increased infusion of fundamentalist ideologies on religious grounds in neighbouring Indian states as well, which may manifest in radicalisation of youth.

    Myanmar

    India shares a 1670 km long land border and a maritime border of 200 km with Myanmar.

    Some Burmese tribals belonging to the Kuki Chin Group are fighting for merger of lands inhabited by them with India.

    The Myanmarese rebels ensure that drugs are brought under their protection up to the Tamu on the Indo-Myanmar border and also upto Bangladesh-Myanmar border. The Indian insurgent groups and the Bangladesh syndicates take over from these locations and thereafter push the drugs inland.

    Countries that are unfriendly towards India find an opportunity in the ongoing turmoil in the northeast and their involvement has made the problems that much more difficult to resolve. Because of geographical proximity, even smaller countries such as Nepal and Bhutan are unable to remain immune to the developments in this region.

    Non State actors

    Act of Terrorism, insurgency or extremism by any individual or a groups which has no direct or indirect linkages with any government or any government organization, is said to be done by non-state actors.

    The emergence of non-state terrorist actors and the rise of their international influence is accelerating. Much of their activity is clandestine and outside the accepted international norms. International and state-sponsored terrorism, often motivated by fundamentalist ideologies, backed by secretive but efficient financial networks, use of IT, clandestine access to chemical-biological and nuclear materials, and illicit drug trafficking, has emerged as a major threat to international stability.

    They pose threats to multireligious, multiethnic and pluralistic societies. India is at the receiving end of these violent elements and is likely to remain a target of international terrorism in the future. Strategies need to be evolved to counter the threat of Weapons of Mass Destruction (WMD) terrorism as well as cyber-terrorism; the latter especially against infrastructural and economic assets such as banking, power, water and transportation sectors.

    Pakistan has been waging a proxy war against India since the 1980s. Since the Kargil War and the military coup of October 12, 1999, Pakistan’s support to cross border terrorism has intensified and is expected to continue in the future. The rapid growth of Islamic fundamentalism in Pakistan is also of serious concern to India.

    Through its nexus with the Taliban and Jihadi elements, as well as its involvement in religious extremism, international terrorism and the narcotics trade, Pakistan poses a threat not only to India but to the stability of the region as well.

    Threats posed by them to internal security of India:

    1. Bomb blasts, attacks on major establishments/public places (Akshardham, 26/11 etc.) which partially dismantles India’s stability
    2. They bring fake currency to India and try to hit Indian economy
    3. They smuggle weapons, drugs (in Punjab/Northeast) in India, directly targeting the  youth
    4. Extremist non state actors also include religious fanatics which propagate religious hatred which can led to communal tensions in the country
    5. They can also incite people for regionalism thus demanding their separate state which further increases secessionist tendencies

    Terrorists/insurgents are receiving weapons mainly from across the borders with the assistance of organised smuggling groups. Most of the arms are coming from Pakistan through the ISI, Pakistani based fundamentalist organisations, Afghan Mujahideen groups and the militants themselves, who bring arms from Durrah in the North West Frontier Province (NWFP).

    The smugglers have also acquired high- powered speed boats, which can land at uncharted beaches and creeks. Arms are also coming through the long and porous Indo-Nepal border. In addition, arms are being smuggled via Bangladesh and Myanmar.

    Today’s terrorists, be they religious extremists, Jehadis, international cults like Aum Shinrikiyo or individual nihilists, may gain access to nuclear, biological, and chemical weapons or raw materials. NBC terrorism today has moved from the stage of far-fetched horror to a contingency that could happen tomorrow. The advances in IT and communications have made terrorism with Weapons/Materials of Mass Destruction easier to carry out.

  • India Internal Security | Broader Framework to Deal with Terrorism

    National security is a multifaceted and all-encompassing concept related to building comprehensive national power. It envisages a symbiotic relationship between internal and external security, reinforcing the premise that a country’s external security posture is organically linked to its internal strength.

    For internal stability, strong political institutions, economic growth, social harmony, efficient law and order machinery, expeditious judicial relief and good governance are prerequisites.

    A sound framework to deal with terrorism would be an integrated and comprehensive whole in keeping with India’s cultural ethos, which would lay down what needs to be done to meet the cross domain and other challenges. Security begets stability, and both are essential for growth and development.

    The major focus areas of the strategy can be:

    To tackle violence

    • Protection of minorities, remote and scattered populations
    • Protection of vital installations
    • Strengthening of counter-terrorism grid through greater functional integration of the efforts through an institutional framework of Operation Groups and Intelligence Groups at all levels
    • Improved technology, gadgetry and equipment for state Police, Central Police Forces and modernization/ strengthening of Police in general to prepare the organization to take over the lead role in the direct anti-terrorism operations
    • Providing specific intelligence to ensure operations with focused target
    • Involving people through volunteer Village Defence Committees, etc.
    • Ensuring that while no quarter is provided to the terrorists, the Security Forces (SFs) take steps to avoid collateral damage (as far as possible) and also to show a humane face to the innocent civilians and thus develop better relations with the local population
    • Dynamic force deployment and flexibility of tactics to counter the changing strategies of terrorists

    To tackle cross-border terrorism

    • Curbing infiltration/ex-filtration
    • Fencing of International Border (IB) and creating obstacles along the Line of Control (LoC) and in depth areas along terrorist routes (supported by multi-tier deployment)
    • Enhancing intelligence capabilities

  • India Internal Security | Linkage of organised crime with terrorism and terror funding

    Crime and terrorism can potentially have a very close linkage. While there may or may not always be a linkage between the two, however, both international case studies and those in India do point towards it.

    Terrorist groups, whether indigenous or sponsored by outside states, need arms and money for their fight against the security forces. Organized crime conglomerates need a clientele and couriers who can smuggle drugs, arms and human beings across the countries and regions.

    If we look at some of the regions in the country affected by terrorism, this linkage becomes apparent. In the Northeast, extortion is the fundamental basis for funding all forms of terrorism. In addition to this, kidnapping has been used extensively for spreading terror and raising funds. Human trafficking, drug trafficking and gun running are some of the other criminal activities that have been common in these areas.

    In J&K, counterfeit currency has been a major source of funding terrorism.  Money laundering plays a significant role. Hawala (money laundering) transactions take place swiftly and effectively in Kashmir. Besides, it is also believed that the ISI uses drug money to fund militant activities in Kashmir.

    In the Maoist terror movements, extortion is yet again a common phenomenon. They have also indulged in robberies of banks to fund their movement. There have also been reports of cuts being enforced on drug yielding crops in the region.

    The Indian Mujahideen has also resorted to crime to raise funds. This includes robberies, kidnappings, etc.

    There are also a number of insurgent groups which over a period of time have morphed into crime syndicates.

    What began as an ideological movement is now merely a means of generating profit. This is especially the case with insurgent groups in Northeast India.

  • India Internal Security | History and Changing face of Terrorism

    History of terrorism in India

    The hand of Pakistan in fuelling the jihad in Kashmir to create an environment of either Azadi (freedom) or joining Pakistan is evident.

    During the Afghan jihad in the 1980s against the Soviet Union, Pakistan trained 80, 000 Mujahideen in training camps established in Pakistan.

    Once the Afghan jihad was over with the end of the cold war and Soviet withdrawal, Pakistan turned its attention on India. At that time, Kashmir was going through a tumultuous phase in the 1980s. There were accusations that the 1987 state elections which witnessed the victory of the Congress-National Conference were rigged. Losing candidates were declared winners. Protests against these elections grew violent in 1988. These rigged elections provided the fuel to the losing parties like the Jamaat-e-Islami, the People’s Conference and the Ittihad-ul-Muslimeen to become part of the main separatist alliance, the All Party Hurriyat Conference.

    Kashmiri leaders like Yasin Malik of the Jammu and Kashmir Liberation Front (JKLF) also took to violence during that period (he renounced violent means in 1994)

    Terrorism in Kashmir exists due to the ability of outfits like LeT and HuM to operate from Pakistan. The hand of Pakistan in fuelling home grown terror groups like Indian Mujahideen (IM) is also suspected especially through the LeT proxy. It was the IM that claimed responsibility  for most of the terror attacks on Indian cities in 2008. The year 2008 also witnessed multiple bomb blasts in Assam in October of that year and the 26/11 terror attacks.

    The terror bombings were also meant to indicate the inability of the security agencies to thwart such terrorist activities. RDX and ammonium nitrate were used during the blasts. This aspect indicated that the terror outfit’s objective was to engineer heavy civilian casualty.

    Earlier terror attacks had involved simultaneous bomb blasts in crowded market places and official complexes. In Mumbai, the seizure of its five star hotels and Nariman house and attacks on its main railway station by the terrorists involved a direct engagement by the terrorists with the security forces.

    The terror cell mostly used the GPS to reach Mumbai through the sea on November 26. (They can use it again in future- Pathankot airbase attack is an example)

    The terror bombings in India were either for “territorial change” or “social control”. The LeT’s involvement in the Mumbai blasts was motivated by its goal of territorial change in Kashmir by incorporating it with Pakistan. SIMI and the Indian Mujahideen were more geared towards social control as they wanted to strengthen their own status amongst their present recruits as well as the target population.

    It can be predicted based on the patterns of the earlier attacks that the terrorists will target urban centres like New Delhi, Ahmedabad, Lucknow or Raipur in the near future, given the wide coverage it receives and the state reaction it effectuates.

    Industrial and upcoming areas like Bangalore, Jamshedpur and Chennai also face terror threat.

    Changing face of Terrorism

    India has been a victim of terrorism and insurgency since Independence.

    In the late 1980s, Kashmir, one of the most strategic states in India and sharing land borders with Pakistan, witnessed the rise of terrorism with visible support from Pakistan. Without the external hand, which includes base areas to terror groups, arms supply, financial help and training terror recruits in Pakistan, the Kashmiri terrorist groups could not have sustained themselves for so long.

    Since 1993, a new trend of terrorism emerged which was not territorially bound as those in the Northeast or Kashmir. This distinctive wave of terrorism targeted Indian cities with the political goal of discrediting India’s economic growth by creating disorder.

    This urban terrorism is a growing threat and needs special emphasis since India’s urban population will grow over the years with massive migration from rural to urban areas in search of better livelihood. This will make it the target of terror groups whose aim is to promote disorder in Indian cities to project the image of instability and lawlessness to the outside world utilizing instant media and the internet.
    A recent phenomenon is the mushrooming of pan-Islamist militant outfits with links to radical organisations in Pakistan, Saudi Arabia, Sudan and some other West Asian countries.

    Fired with religious zeal, a large number of the so-called “jihadis” have already entered into the bordering States and are in the process of penetrating deeper inside the country.

    These bands of religious fanatics are indulging in subversive activities and have expansionist designs. They will work relentlessly for the breakup of the Indian Union.

    While there could be several antecedent causes of terrorism, some of the most significant ones are a perceived sense of injustice by the aggrieved group, and a belief by that group that the use of violence will bring about a change. Thereby, most terrorist groups use their political ends for justifying violent means.

    Weak actors like terrorists therefore establish their “terrible” credibility by public display of violence.

  • India Internal Security | Neighbors as Issue of Security Threat

    India faces myriad security challenges both external and internal. Unlike any other country in the World, Indian security is marred by legacy issues that include unresolved boundary disputes, not coming to terms with the partition of the sub-continent, or culture of competition and challenge in case of one and unwillingness to accept India as a reckonable regional player in the case of the other, undermining Indian strategic space as it seeks to expand its political, economic and strategic influence.

    This has resulted in constant friction with two of its nuclear-armed neighbors with whom India has fought wars; increasingly acting in collusion. There thus exists an omnipresent danger of regional strategic instability with potential for escalation threatening India’s territorial integrity and strategic cohesion.

    India has a land border of over 15000 kilometers with seven countries, sections of which remain contested, or not formally demarcated even after nearly seven decades. At places, there is not even a mutually agreed line of control.

    With eleven neighboring countries (including four across the seas), many of which share cross-border Diasporas with India, internal peace and external security are inextricably intertwined. Given a rising graph of cross-border terrorism over the past two decades, cooperation with neighbors on security is essential.

    Bangladesh

    Threat from Bangladesh assumes serious dimensions since it became a base for northeast insurgent groups like ULFA and Naga factions. Of late, it has also been serving as a conduit for ISI sponsored infiltration of terrorists along India and Bangladesh’s porous border.

    The impact of illegal migration from Bangladesh on India’s security can be identified through two indicators.

    First, conflict over scarce resources, economic opportunities and cultural dominance ensues between the locals and migrants, along with the resultant political instability caused by the mobilisation of popular perception against the migrants by the elites to grab political power.

    Second, the rule of law and integrity of the country are undermined by the illegal migrants engaged in illegal and anti-national activities, such as entering the country clandestinely, fraudulently acquiring identity cards, exercising voting rights in India despite being a Bangladeshi and resorting to transborder smuggling and other crimes.

    The Bodo insurgency, which began as a reaction to the “Assamese domination” after the Assam Accord, and which continues to rage even after signing of two peace accords in 1993 and 2003, has periodically targeted Muslims, perceived as Bangladeshis, in lower Assam.

    The violence against the Muslims, in particular, stems from their fear of being rendered a minority in their own area given the perceived rapid rise of Muslim population. Bodo militants also believe that Muslim settlers support illegal migrants who continue to arrive through the riverine areas and encroach upon land belonging to their community, thus justifying retaliation.

    In  Tripura, where the tribal community has been reduced to a minority because of the large-scale influx of Bengalis. The tribal community has been resisting the settlement of Bengalis from East Bengal/Pakistan, and later Bangladesh, in their land since independence.

    Another outcome of the large-scale settlement of illegal migrants is that a number of mosques and madrasas have come up to cater to the needs of the migrant population in these areas. The construction of mosques and madrasas demonstrates the cultural and religious assertion by the illegal migrants who are overwhelmingly Muslims. The locals, especially the Hindus, believe that these mosques and madrasas, funded by money from Saudi Arabia, Kuwait, Bangladesh, etc., propagate anti-Hindu and anti-India sentiments. It is believed that these activities are conducted by Jamaat-e-Islami members who clandestinely cross over from Bangladesh

    These developments have created resentment against the illegal migrants among the local population, who feel that they are getting marginalised in their own land.

    This also signifies that the issue of illegal migration from Bangladesh is not going to die down and will continue to pose a challenge to the country’s internal security.

    China

    While there have been perceived trust deficit and security dilemma, both real and imagined, between India and China, particularly after 1962 war, it is seldom remembered that India and China enjoy a degree of camaraderie and strategic trust and have not indulged in war again.

    The disintegration of the erstwhile USSR and the end of cold war in 1991, not only transformed the geopolitical spectrum but also removed the major obstacle in the Sino-Indian relations, which in turn gave fillip to strategic trust to Sino-Indian relations.

    China appears to have become increasingly aggressive as it has steadily risen in power and as the influence of the West has progressively declined. It seems to have been spurred by the ineffectual response of the international community, particularly the United States, on the South China Sea discord.

    China’s defence cooperation and its support to Pakistan for missile technology are perceived in India to be threatening. Even though India protests from time to time against the US military aid to Pakistan, it does not find that support as threatening as the Chinese cosiness with Pakistan.

    The attempt by the People’s Liberation Army (PLA) to escalate tension in the trijunction of the India-China Middle Sector of the boundary at Doklam is a new development. It brings Bhutan into the boundary matrix between India and China. The Doklam border tension involves bilateral, trilateral and geopolitical facets.

    Doklam is a fresh attempt by Beijing to exert pressure on India to reframe India-China relations which have not been the best under the current leaderships in the two countries.

    Bhutan’s north-western region is close to Chumbi Valley and to the Tibetan region bordering the Indian state of Sikkim. A settlement between China and Bhutan in this area will have an obvious impact on Indian security. Chumbi Valley is located in the Yadong county of Tibetan Autonomous Region, which is geographically near the Siliguri corridor of northeast India.

    If Siliguri corridor is blocked, whole northeast will be cutoff from India and that is a major concern and a security threat.

    Pakistan

    The internal security problems have become aggravated in recent times with Pakistan’s policy of cross border terrorism, along with its intense hostile anti-India propaganda designed to mislead and sway the loyalties of border population. The intensification of cross border terrorism, targeted to destabilize India, has thrown up new challenges for our border management policy.

    The offensive agenda of Pakistan’s ISI to promote international terrorism and subvert India is expected to intensify. The J&K cauldron is expected to continue. Vigorous efforts are on to revive militancy in Punjab. Insurgent groups in different parts of the country are receiving support and encouragement. Illegal infiltration and smuggling of arms and explosives, narcotics and counterfeit currency are pressing problems.

    Samjhauta Express is being used for gunrunning and drug trafficking. Similar arrangements are needed to ensure foolproof security checks, in respect of buses that ply between India and Pakistan.

    The guarding of the coastal and creek areas of Gujarat pose extreme challenges due to the hostile terrain, inhospitable climatic conditions, hazardous nature of the sea and creek areas on this side of the border, the existence of about 400 sq. kms of mangrove swamp with interlacing intricate stretches of sub-creeks and deep inlets of varying dimensions and further complicated by the ever shifting sand bars. The resources presently available to the BSF, Police and the Customs are inadequate to meet these challenges in coastal and creek areas.

    It is quite possible that Pakistan may use the Gujarat route to push Bangladeshi nationals to India.

    Nepal

    The dynamic nature of the problems concerning management of borders is brought out by the manner in which the sensitivity of India-Nepal border has changed over a period of time. This border, which has been an open one, was once peaceful and trouble-free. However, with the increasing activities of Pakistan’s Inter-Services Intelligence (ISI) in Nepal, the nature of the border has changed completely. These security concerns need to be addressed urgently.

    Myanmar

    Free movement across the Indo-Myanmar border has been the practice from times immemorial due to the ethnic and cultural similarity in the areas adjoining the border.

    Illegal trade activities in a variety of contraband items flourish at Moreh on the Indo-Myanmar border.

    Bhutan

    The border areas on both sides of the Indo-Bhutan border do not have basic infrastructure such as communications, roads, health, education, drinking water facilities etc. These areas are often used as sanctuaries by the insurgent groups of the North East particularly the United Liberation Front of Assam (ULFA) and the National Democratic Front of Bodoland (NDFB).

    Settlements of Bangladeshis are coming up along either side of the Indo- Bhutan border. Many of them are reportedly seeking jobs and employment in the Bhutanese territory, in the garb of Indian citizens. This is another reason to closely monitor the Indo-Bhutan border.

    India must seek to maintain independence of its foreign policy and security choices reflective of its civilizational ethos, while working in partnership with all friendly countries on issues of common interest.

  • India Internal Security | Challenges from within

    International terrorism poses the greatest challenge to the security and stability of the country. It was until recently confined to the state of Jammu & Kashmir but has gradually spread across the length and breadth of the country. The terrorists are opposed to the very idea of India; they want to destroy its icons and its symbols.

    Terrorist modules are active in several urban conglomerations. The security forces and intelligence agencies of the country are quite capable of handling the terrorist threat, but they are hamstrung by government policies.

    We have no comprehensive anti-terror law even though the country has been facing different shades of terrorism for the last nearly fifty years.

    Jammu & Kashmir

    Jammu and Kashmir became an integral part of the Indian Union when the then ruler of the State, Raja Hari Singh, on October 26, 1947, unconditionally signed the instrument of accession in accordance with the legal framework provided for all the Princely States of British India to accede either to India or to Pakistan. The prescribed legal framework did not envisage ratification of accession by the people of a Princely state.

    Pakistan’s refusal to accept the State’s accession to India led it to launch an armed

    aggression in 1947 resulting in forcible occupation of a part of the State that still remains under its illegal control. Pakistan’s non-acceptance of the reality and its ambition to wrest Jammu and Kashmir from India by force led to wars in 1965 and 1971 between the two countries and Pakistan had to face ignominious defeat each time.

    Kashmir is not an Islamic issue and the two-nation theory propagated by Pakistan before and after 1947 has been shown to be irrelevant.

    Pakistan is pursuing a multi-pronged strategy to destabilize India and annex J&K. Militancy is a direct consequence of the unremitting efforts of Pakistan’s covert agencies, particularly its Inter-Services Intelligence (ISI), to exploit the prevailing discontent and destabilize the established authority by creating an anarchic situation.

    Militancy has caused enormous human and economic losses in the State and shattered its economy. There is enough evidence that destabilizing India through actively sponsored terrorism is a matter of state policy for Pakistan.

    Following steps need to be taken to deal with the internal security situation in J&K:

    i) integrate gradually the state of Jammu & Kashmir with the rest of India in all matters;

    ii) deal with the separatist elements with a heavy hand and place a blanket ban on their conspiratorial confabulations with the Pak authorities, both in Delhi and in Islamabad. Any contacts with the terrorist outfits active in/ J&K should be dealt with under the Unlawful Activities (Prevention) Act.

    iii) ensure comprehensive economic development of the State, ensuring accountability in the utilization of funds;

    iv) initiate appropriate measures to bring back and rehabilitate the Kashmiri Pandits who were dislodged from their homes and forced to seek shelter in other parts of the country.

    v) Keep the issue of Pakistan Occupied Kashmir (PoK) alive and put pressure on China to withdraw from the areas it has occupied in J&K.

    The North East

    The region, North East India, comprises States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.

    Broadly, the conflict in the Northeast could be categorised at three levels: Conflict with the Indian state; conflict between different communities considered “indigenous”; and conflict associated with illegal migration. All three are interlinked and intertwined.

    North-east has been convulsed with separatist and secessionist movements of different hues. These movements could broadly be attributed to:

    • a feeling of neglect by the central government;
    • false propaganda by leaders of the area;
    • alienation of tribals;
    • changes in the demographic pattern caused by the influx of people from across the borders;
    • availability of sanctuaries in Myanmar and Bangladesh;
    • assistance to rebel groups by countries inimical to India.

    Insurgency is in some measure due to the ethnic divide accentuated by migrations from without and exacerbated by foreign intervention. Several insurgent groups in the region are currently demanding independence. Apart from maintaining an unacceptably high level of violence in some of the states in the region, they are engaged in widespread extortion from all sections of society.

    Drug smuggling and gun running are rife. Intelligence reports suggest that the ISI is extremely active in fomenting unrest in the area. The paucity of roads, railways, communication facilities, and slow economic growth, have further contributed to the grievances of the local populace.

    Assam also witnessed upheaval due to the large scale influx of foreigners into the State. An analysis of the data indicates that the law & order situation in Assam remains vitiated due to violent activities of ULFA, NDFB and United Peoples Democratic Solidarity (UPDS) (anti- talks faction).

    In Meghalaya, the law & order situation in Garo hills continues to be under strain.

    The security scenario in Tripura also remains a matter of concern. However, NLFT (Nyanbasi Group) has signed a ceasefire agreement.

    Nagaland has been the epicenter of armed insurrection in north-eastern India. The sparks later flew to Mizoram, Manipur and Tripura. In Nagaland, violence between the NSCN (I/M) and NSCN (K) has remained the prominent feature of the current violence profile. NSCM (I/M) has signed a ceasefire agreement with government in August 2015.

    The security scenario in Manipur remains a cause of concern. Manipur has about 15 militant groups operating in the Valley and the Hill districts. Apunba Lup, an umbrella organisation of the Meiteis, with the tacit support of Meitei Extremist Organisations, is demanding withdrawal of the disturbed area status of Manipur under Armed Forces (Special) Powers Act, 1958.

    A disturbing development in the north-east is China’s renewed interest in the region and culpable involvement with the insurgent outfits.

    NORINCO or the China North Industries Corporation, a state owned weapon manufacturing company, has emerged as the largest supplier of arms to the underground of the north-east through Myanmar and Bangladesh. It has office in Bangkok and operates through a network of agents spread over south-east Asia.

    The continued unrest in the north-east is to be attributed essentially to the following factors:

    • an impression among the tribes that the Government of India could be blackmailed into giving concessions by perpetrating violent incidents;
    • widespread corruption among the ruling elite;
    • active involvement of foreign intelligence agencies; and
    • connivance/helplessness of neighbouring countries in permitting insurgent groups to set up training camps and allowing them to procure arms and supply the same to the insurgent outfits.

    The strategy adopted by the Government to improve the situation in the North East includes accelerated infrastructural development, stress on employment and good governance and decentralisation, building friendly relations with neighbouring countries, willingness to meet and discuss legitimate grievances of the people as also a resolve not to tolerate violence.

    The Government of India’s internal security doctrine on north-east will need to take care of the following aspects:

    i) dialogue is to be preferred to armed confrontation but the period of peace talks should be utilised for meaningful exchange of ideas and the insurgent outfit must not be allowed to use this period to enhance its strength in terms of following and weaponry;

    ii) the terms of suspension of operations must be strictly enforced and the insurgent outfit restrained from indulging in extortions, collection of taxes, forcible recruitment and other unlawful activities;

    iii) there should be accountability in the utilisation of funds allotted for development;

    iv) people from the north-east should be given greater opportunities of cultural interaction with the rest of the country.

    Punjab

    The situation in Punjab needs to be kept under close watch. Many pro-Khalistani militants continue to enjoy shelter in Pakistan and there are reports of plans to revive terrorism in Punjab. Subversive propaganda is being aired from Pakistani Punjab.

    There are, meanwhile, disturbing indications of Pak Inter-Services Intelligence (ISI) putting pressure on militant groups of Punjab like the Babbar Khalsa International (BKI), Khalistan Zindabad Force (KZF), Khalistan Tiger Force (KTF), International Sikh Youth Federation (ISYF) and their collaborators in European and North American countries to revive militancy in the Punjab.

    Maoist Insurgency

    The Maoist problem has been described as the biggest internal security threat to the country.

    The salient features of the movement today are as follows:

    • Spread over a large geographical area
    • Increase in potential for violence
    • Expansion in north-east
    • Nexus with other extremist groups

    Presently, about 173 districts across the country are affected by incidents of Maoist violence; out of these 26 have been identified as highly affected. These are mostly in the seven states of Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Maharashtra, Odisha, and West Bengal.

    The Naxals’ potential for violence has increased substantially with their acquisition of sophisticated weapons and expertise in the use of improvised explosive devices (IEDs).

    The Maoists are spreading their tentacles in the north-east and there are disturbing reports about their trying to forge links with the insurgent outfits active in the region.

    The Maoists’ nexus with the other extremist organizations has added to the complexity of the problem. The PW (People’s War) cadres received training in the handling of weapons and IEDs from ex-members of the Liberation Tigers of Tamil Eelam (LTTE). Besides, they have entente cordiale with the NSCN (IM). Some batches of Naxals received arms training from the ULFA. Besides, the Communist Party of India (Maoist) has fraternal relations with the Communist Party of Nepal. Pakistan’s ISI is also trying to reach out to the Maoists.

    The Maoist problem requires a comprehensive approach with emphasis on the following aspects:

    1. The development paradigm pursued since independence, the benefits of which have been disproportionately cornered by the dominant sections at the expense of the poor and which has aggravated the prevailing discontent among marginalised sections of society, deserves to be given a second look and reviewed.
    2. The PLGA will have to be neutralised through sustained counter-insurgency operations. It must, however, be ensured that there is minimum collateral damage.
    3. Socio-economic development of the areas affected will need to be ensured through sincere implementation of the plans.
    4.  The grievance redressal machinery will need to be activated at different levels. Justice must be seen to be delivered.
    5. Land alienated from tribals must be restored to them
    6. Tribals’ rights over forests must be recognized. The provisions of the Forest Rights Act should be enforced.
    7. There should be genuine attempt to win the hearts and minds of the people.
    8. The door for peace talks should always be kept open.

    Illegal Migrations

    One of the biggest problems facing India and having a direct bearing on the country’s economy and security is that of the continuing illegal migration of Bangladeshis into India.

    The factors which have been encouraging the influx from Bangladesh side are:

    • steep rise in population with increasing pressure on land and mounting unemployment,
    • recurrent natural disasters like floods and cyclones, uprooting large segments of humanity, 
    • better economic opportunities in India, 
    • religious persecution of Hindus and discrimination of tribals,

    Islamic interests encouraging expansion of territory, organized immigration by touts and anti-social elements, and porous and easily negotiable international borders.

    The bulk of the Bangladeshi immigrants are in the states of Assam, West Bengal, Bihar, Delhi and the north-eastern states.

    The Supreme Court of India, in a landmark judgment (July 2005), while repealing the notorious The Illegal Migrants (Determination by Tribunal ) (IMDT) Act, observed that “there can be no manner of doubt that the State of Assam is facing ‘external aggression and internal disturbance’ on account of large scale illegal migration of Bangladeshi nationals” and directed the Union of India “to take all measures for protection of the State of Assam from such external aggression and internal disturbance as enjoined in Article 355 of the Constitution”.

    According to Myron Weiner, the global immigration crisis should not, and cannot, be ignored, specifically because it presents serious challenges to states and the preservation of human rights.

    There are three possible options :

    1. Accommodation Control– It involves expanding the level of legal immigration and accepting a chunk of the illegal immigrants. This option is based on the neo-classical economics, which argues that economic benefits accrue from the free movement of the factors of production.
    2. Greater Border Control– This would involve increasing the deployment of police and paramilitary forces to effectively check trans-border movements. Besides, physical barriers like border security fencing may also be erected to prevent unauthorized movements of people from either side. Identity cards could be issued to the citizens so that the detection of illegal immigrants becomes easier.
    3. Intervention– This involves changing the economic, political and social factors in the sending countries which lead to migrations. Such efforts have been made in a number of countries. Somalia, the former Yugoslavia, and Haiti, are three prominent examples. Economic assistance, coercive diplomacy, sanctions, and military interventions are the possible tools.

    Other Threats

    There are threats to internal security from certain other factors also. These include:

    • Regional aspirations
    • Inter-state disputes
    • River water sharing issues
    • Communal problems
    • Caste tensions
    • Demand for reservations, etc.

    These factors also, from time to time, pose a formidable challenge.

    A recent phenomenon is the mushrooming of pan-Islamist militant outfits with links to radical organisations in Pakistan, Saudi Arabia, Sudan and some other West Asian countries. Funded by Saudi and Gulf sources, many new madrassas have come up all over the country in recent years, especially in large numbers in the coastal areas of the West and in the border areas of West Bengal and the North East. Reports of systematic indoctrination of Muslims in the border areas in fundamentalist ideology is detrimental to the country’s communal harmony.

    The challenges can, however, be effectively dealt with and contained if we have a proper internal security doctrine, and the same is implemented in letter and spirit irrespective of the sacrifices the nation may have to make in the process.