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  • Poverty Eradication – Definition, Debates, etc.

    NITI Aayog’s Multidimensional Poverty Index (MPI)

    The Government think-tank NITI Aayog has released the National Multidimensional Poverty Index (MPI).

    Multidimensional Poverty Index (MPI)

    • This baseline report of India’s first-ever national MPI measure is based on the reference period of 2015-16 of the National Family Health Survey (NFHS)- 4.
    • It uses the globally accepted and robust methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
    • It captures multiple and simultaneous deprivations faced by households.

    Parameters used

    • The NMPI is calculated using 12 indicators — nutrition, child and adolescent mortality, antenatal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account,
    • They have been grouped under three dimensions namely, health, education and standard of living.

    Why NFHS-4?

    • Data collected during the NFHS-4 (2015-2016) corresponds to the period before the full roll out of new governments’ flagship schemes.
    • Hence it serves as a useful source for measuring the situation at baseline i.e. before large-scale rollout of nationally important schemes.

    How is the data used?

    • The national MPI 2021 is calculated using the household microdata collected at the unit-level for the NFHS-4 that is used to derive the baseline multidimensional poverty.
    • Further, the country’s progress would be measured using this baseline in the NFHS-5, for which the data was collected between 2019 and 2020.
    • The progress of the country with respect to this baseline will be measured using the NFHS-5 data collected in 2019-20.

    Key highlights NMPI

    • As per the index, 51.91% of the population in Bihar is poor, followed by Jharkhand (42.16%), Uttar Pradesh (37.79%), Madhya Pradesh (36.65%) and Meghalaya (32.67%).
    • On the other hand, Kerala registered lowest population poverty levels (0.71%), followed by Puducherry (1.72%), Lakshadweep (1.82%), Goa (3.76%) and Sikkim (3.82%).
    • Other States and UTs where less than 10% of the population are poor include Tamil Nadu (4.89%), Andaman & Nicobar Islands (4.30%), Delhi (4.79%), Punjab (5.59%), Himachal Pradesh (7.62%) and Mizoram (9.8%).

     

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  • Places in news: Solomon Islands

    Australia has announced sending police, troops and diplomats to the Solomon Islands to help after anti-Government demonstrators.

    Solomon Islands

    • Solomon Islands is a sovereign country consisting of six major islands and over 900 smaller islands in Oceania, to the east of Papua New Guinea and northwest of Vanuatu.
    • Its capital, Honiara, is located on the largest island, Guadalcanal.
    • The country takes its name from the Solomon Islands archipelago, which is a collection of Melanesian islands that also includes the North Solomon Islands (a part of Papua New Guinea).
    • It excludes outlying islands, such as the Santa Cruz Islands and Rennell and Bellona.

     

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    ‘Go back to committees’ is the farm laws lesson

    Context

    The Prime Minister has informed the nation that the Government is going to repeal the farm laws. This victory indeed takes India’s politics to a new phase — a phase of robust non-political movements with a certain staying power.

    Trajectory of the enactment of the farm laws and its shortcomings

    • Farmers not taken into confidence: These laws have a far-reaching impact on the farmers and it was very improper and quite unwise to push them through without taking the farmers into confidence.
    • Question on urgency: Under Article 123 of the Constitution the President can legislate on a matter when there is great urgency in the nature of an emergency and the sitting of Parliament is quite some time away.
    • Farm laws which make radical changes in the farm sector and affect the life of farmers in very significant ways do not have the kind of urgency which necessitates immediate legislation through the ordinances.
    • Bills not referred to committee: It is a wrong impression that Bills which are brought to replace the ordinances are not or cannot be referred to the standing committees of Parliament.
    • The Speaker/Chairman has the authority to refer any Bill except a money Bill to the standing committees.

    Significance of parliamentary committees

    • Consultation with Parliament and its time honoured system is a sobering and civilising necessity for governments howsoever powerful they may feel.
    • The accumulated wisdom of the Houses is an invaluable treasure.
    • The experience of centuries shows that scrutiny of Bills by the committees make better laws.
    • The case of the farm laws holds an important lesson for this Government or any government.
    • A proper parliamentary scrutiny of pieces of legislation is the best guarantee that sectoral interest will not jeopardise basic national interest.
    •  So, in any future legislation on farmers it is absolutely necessary to involve the systems of Parliament fully so that a balanced approach emerges.

    Way forward

    •  Available data shows that Bills are very rarely referred to the committees these days.
    • Discretion in the presiding officer: House rules have vested the discretion in the presiding officers in the matter of referring the Bills to committees.
    • No reasoned decisions of the presiding officers for not referring them are available.
    • Since detailed examination of Bills by committees result in better laws, the presiding officers may, in public interest, refer all Bills to the committees with few exceptions.
    • In the light of the horrendous experience of the Government over the farm laws, the present practice of not referring the Bills to committees should be reviewed. 

    Consider the question ” The experience of centuries shows that scrutiny of Bills by the committees make better laws. In context of this, examine the significance of the parliamentary committees and why fewer bills have been referred to the committees in the recent past?”

    Conclusion

    Speaker Om Birla has spoken about strengthening the committee system in the recent presiding officers’ conference. One way of strengthening it is by getting all the important Bills examined by them.

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  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    India, while moving to renewable energy needs to focus on sustainable well-being

    Context

    With current per capita emissions that are less than half the global average, India’s pledge to reach ‘net zero’ emissions by 2070 has cemented India’s credentials as a global leader.

    Implication of net-zero by 2070

    • The political implication of the date 2070 is that the world should get to ‘net-zero’ by 2050.
    • For that, the rich countries will need to do more and step up closer to their share of the carbon budget.
    • India’s stand also signals that it will not act under external pressure, as requiring equal treatment is the hallmark of a global power, and will have an impact on other issues.

    How focus on coal harms developing countries

    • The subject of oil was not touched at COP26, even as automobile emissions are the fastest growing emissions, because it is a defining feature of western civilisation.
    • Most abundant source of energy: Coal is the most abundant energy source, essential for base load in electrification, and the production of steel and cement.
    • Its use declines after the saturation level of infrastructure is reached.
    • Declining role of G-7 in rule setting: That India and China working together forced the G7 to make a retraction has signalled the coming of a world order in which the G7 no longer sets the rules.
    • Specific language on finance and adaptation: After 40 years there is more specific language on both finance and adaptation finally recognising that costs and near-term effects of climate change will hit the poorest countries hardest.

    Feasibility of the goal of ‘net-zero’ by 2070

    • Seeing the challenge in terms of the scale and the speed of the transformation of the energy system assumes that India will follow the pathway of western civilisation.
    • Transition to electrification: India is urbanising as it is industrialising, moving directly to electrification, renewable energy and electric vehicles, and a digital economy instead of a focus on the internal combustion engine.
    • Most of the infrastructure required has still to be built and automobiles are yet to be bought.
    • Investment vs. incurring cost: India will not be replacing current systems and will be making investments, not incurring costs.

    Challenge for the West

    • The consumption of affluent households both determines and accelerates an increase of emissions of carbon dioxide.
    • This is followed by socio-economic factors such as mobility and dwelling size.
    • In the West, these drivers have overridden the beneficial effects of changes in technology reflected in the material footprint and related greenhouse-gas emissions.
    • The West has yet to come out with a clear strategy of how it will remain within the broad contours of its carbon budget.
    • And increasing inequality and a rise of protectionism and trade barriers imposing new standards need to be anticipated.
    • This knowledge is essential for national policy as well as the next round of climate negotiations.

    Way forward for India

    • Climate change has to be addressed by the West by reducing consumption, not just greening it.
    • Shifting the consumption pattern: Consumption patterns need to be ‘shifted away from resource and carbon-intensive goods and services, e.g. mobility from cars and aircraft to buses and trains.
    • Reducing the carbon intensity: Along with’ reducing demand, resource and carbon intensity of consumption has to decrease, e.g. expanding renewable energy, electrifying cars and public transport and increasing energy and material efficiency’.
    • Equal distribution of wealth and affordable energy use: Equally important, will be achieving a’ more equal distribution of wealth with a minimum level of prosperity and affordable energy use for all’, e.g., housing and doing away with biomass for cooking.
    • Focused research group: The Government now needs to set up focused research groups for the conceptual frame of sustainable well-being.
    • It should analyse the drivers of affluent overconsumption and circulate synthesis of the literature identifying reforms of the economic systems as well as studies that show how much energy we really need for a decent level of well-being.

    Role for legislature

    • Fundamental duty: After the Stockholm Declaration on the Global Environment, the Constitution was amended in 1976 to include Protection and Improvement of Environment as a fundamental duty.
    • Use of provision under Article 253: Parliament used Article 253 to enact the Environment Protection Act to implement the decisions reached at the Stockholm Conference.
    • Enabling new set of legislation: The decisions at COP26 enable a new set of legislation around ecological limits, energy and land use, including the efficient distribution and use of electricity, urban design and a statistical system providing inputs for sustainable well-being.

    Consider the question “Examine the feasibility of India’s ‘net-zero’ target by 2070, also suggest the way forward for India to achieve the target by focusing on sustainable well being”

    Conclusion

    For India, in parallel with the infrastructure and clean technology thrust, the focus on a decent living standard leads to behavioural change in the end-use service, such as mobility, shelter and nutrition — for change modifying wasteful trends.

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  • Foreign Policy Watch: India-Bangladesh

    Land Boundary Agreement (LBA) with Bangladesh

    Union Home Minister has said that the Northeast States will be linked by road and railway to Bangladesh in a year or two under the historic Land Boundary Agreement (LBA).

    Land Boundary Agreement (LBA)

    • India and Bangladesh have signed the LBA in 2014 to ensure proper connectivity in the region.
    • The operationalization of LBA lays the way for the exchange of 162 enclaves under the control of either country as per the 1974 pact.
    • Under the Agreement, 111 border enclaves will be transferred to Bangladesh in exchange for 51 that will become part of India.
    • The agreement settles an old land boundary dispute which dates back to colonial times as India transfers 111 border enclaves to Bangladesh in exchange for 51 enclaves.
    • It also settles the question of citizenship for over 50,000 people residing under these enclaves.

    Why was such an agreement needed?

    • India and Bangladesh share a 4,096 km land boundary covering West Bengal, Assam, Tripura, Meghalaya and Mizoram.
    • This is the largest among the international boundaries that India shares with its neighbors.
    • On this boundary, some 50,000-100,000 people reside in so-called Chitmahals or Indo-Bangladeshi enclaves.
    • There are 102 Indian enclaves inside Bangladesh and 71 Bangladeshi ones inside India.
    • Inside those enclaves are also 28 counter-enclaves and one counter-counter-enclave, called Dahala Khagrabari.

    The inception of the agreement

    • For the first time, a vision to solve this issue had been enshrined in the Indira-Mujib pact of 1972.
    • Accordingly, the India-Bangladesh LBA was signed between the two countries in 1974.
    • However, this agreement need ratification from the parliaments of both countries as it involved the exchange of the territories.
    • While Bangladesh had ratified it as back as 1974 only, it was not ratified by the Indian parliament till 2014.
    • The 119th Amendment Bill 2013 sought to ratify the land boundary agreement between the two countries.

    Key features of the LBA

    • The LBA envisages a transfer of 111 Indian enclaves to Bangladesh in return for 51 enclaves to India.
    • The area transferred to India is less than that transferred by India to Bangladesh. In totality, India incurs a net loss in terms of area occupancy.
    • This remained a major concern of opposition from the north-eastern affected states and west Bengal.
    • Also, most of the area concerned is occupied by the tribals of the North-Eastern states and hence the swapping takes away their land rights leaving them more vulnerable.
    • Current Status of the Constitution (119th Amendment) Bill has been passed by the Parliament of India on 7th May 2015.
    • While India will gain 510 acres of land, ten thousand acres of land will notionally go to Bangladesh.
    • This legislation will redraw India’s boundary with Bangladesh by exchanging enclaves in Assam, West Bengal, Tripura and Meghalaya.

    Implications of the Agreement

    • It will secure the long-stranded boundary and enable to curb the illegal migration, smuggling and criminal acts across the border.
    • It would help those stateless citizens by granting them citizenship from their respective countries. It would help settle the boundary dispute at several points in Meghalaya, Tripura, Assam, and West Bengal.
    • It would improve the access to underdeveloped north-eastern states and would further enhance the developmental works in the region.
    • It would help to increase the connectivity with south-east Asia as part of India’s North-eastern policy.

     

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  • Goods and Services Tax (GST)

    Finance Ministry backs three-rate GST structure

    The Government can rationalize the GST rate structure without losing revenues by rejigging the four major rates of 5%, 12%, 18% and 28% with a three-rate framework of 8%, 15% and 30%, as per a National Institute of Public Finance and Policy (NIPFP) study.

    GST Slabs

    • In India, almost 500+ services and over 1300 products fall under the 4 major GST slabs.
    • These comprise rates of 5%, 12%, 18%, and 28%. The GST Council periodically revises the items under each slab rate to adjust them according to industry demands and market trends.
    • The updated structure ensures that the essential items fall under lower tax brackets, while luxury products and services entail higher GST rates.
    • The 28% rate is levied on demerit goods such as tobacco products, automobiles, and aerated drinks, along with an additional GST compensation cess.

    Why harmonize GST slabs?

    • Multiple rate changes since the introduction of the GST regime in July 2017 have brought the effective GST rate to 11.6% from the original revenue-neutral rate of 15.5%.
    • Merging the 12% and 18% GST rates into any tax rate lower than 18% may result in revenue loss.
    • The nature of rate changes has also meant that over 40% of taxable turnover value now falls in the 18% tax slab, thus any move to dovetail that slab with a lower rate will trigger losses.

    What next?

    • Restructuring GST rates is a timely idea to improve revenues.
    • It is important to sequence the transition to the new rate structure so as to minimize the costs associated with tax compliance, administration, and economic distortions.

     

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  • Blockchain Technology: Prospects and Challenges

    Cryptocurrencies regulation across the World

    The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was listed for introduction in Parliament’s Winter Session.

    About the Bill

    • The bill aims to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India”.
    • It seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.

    How are cryptocurrencies regulated in countries around the world?

    The stance of countries and regulators has ranged from:

    1. A total ban on these financial assets Ex. China
    2. Allowing them to operate with some regulations
    3. Allowing virtual currency trading in the absence of any guidelines Ex. El Salvador
    • Governments and regulators remain divided on how to categorize it as a currency or asset — and how to control it from an operational point of view.
    • The evolution of the policy and regulatory response has been uncharacteristically discordant, with no apparent coordination in the responses of countries.

    Among the countries that haven’t issued detailed regulations, there are those that have recognized and defined these currencies.

    [A] CANADA

    • It defines virtual currency  under its Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, as:

    (a) a digital representation of value that can be used for payment or investment purposes that is not a fiat currency and that can be readily exchanged for funds or for another virtual currency that can be readily exchanged for funds; or

    (b) a private key of a cryptographic system that enables a person or entity to have access to a digital representation of value referred to in paragraph (a).

    • The Canada Revenue Authority (CRA) generally treats cryptocurrency as a commodity for purposes of the country’s Income Tax Act.

    [B] ISRAEL

    • Israel in its Supervision of Financial Services Law includes virtual currencies in the definition of financial assets.
    • The Israeli securities regulator has ruled that cryptocurrency is a security subject, while the Israel Tax Authority defines cryptocurrency as an asset and demands 25% on capital gains.

    [C] GERMANY

    • In Germany, the Financial Supervisory Authority qualifies virtual currencies as “units of account” and therefore, “financial instruments”.
    • It considers Bitcoin to be a crypto token given that it does not fulfill typical functions of a currency.
    • However, citizens and legal entities can buy or trade crypto assets as long as they do it through exchanges and custodians licensed with the German Federal Financial Supervisory Authority.

    [D] UNITED KINGDOM

    • In the UK, Her Majesty’s Revenue & Customs, do not consider crypto assets to be currency or money.
    • It further notes that cryptocurrencies have a unique identity and cannot, therefore, be directly compared to any other form of investment activity or payment mechanism.

    [E] UNITED STATES

    • In US different states have different definitions and regulations for cryptocurrencies.
    • While the federal government does not recognize cryptocurrencies as legal tender, definitions issued by the states recognize the decentralized nature of virtual currencies.

    [F] THAILAND

    • In Thailand, digital asset businesses are required to apply for a license, monitor for unfair trading practices, and are considered “financial institutions” for anti-money laundering purposes.

    Conclusion

    • While most of these countries do not recognize cryptocurrencies as legal tender, they do recognize the value these digital units represent.
    • Almost all countries consider their functions as either a medium of exchange, unit of account, or a store of value (any asset that would normally retain purchasing power into the future).
    • Like India, several other countries have moved to launch a digital currency backed by their central bank.

     

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  • Foreign Policy Watch: India-Australia

    Australia’s controversial Religious Discrimination Bill

    Australian PM Scott Morrison has introduced a contentious piece of anti-discrimination legislation called the “Religious Discrimination Bill” in their parliament.

    What is the Bill about?

    • The bill aims to eliminate discrimination on the ground of religious beliefs or activities.
    • It will ensure Australians are protected from discrimination on the basis of religious belief or activity.
    • The timing of the introduction of this bill, ahead of the federal elections is being seen as an attempt by the Morrison government to target religious voters.

    What does the Religious Discrimination Bill say?

    • The Act makes it unlawful to discriminate against a person on the grounds of religious belief or activity in a range of areas of life including work, education, access to premises, and the provision of goods, services, and accommodation.
    • Discrimination is unlawful if it occurs, for example, because of a religious belief or activity that the person holds or engages in.
    • It is also unlawful if it occurs because of the person’s association with someone else who holds or engages in a religious belief or activity, regardless of whether or not they themselves hold or engage in a religious belief or activity.

    Contentious provisions

    • The bill also allows faith-based organizations such as religious schools to hire and enrol people from particular faiths.
    • The bill states that religious bodies can give preference, “in good faith, to persons who hold or engage in a particular religious belief or activity”.
    • It goes on to say that a religious body does not discriminate against a person under this Act by engaging, in good faith, in conduct that a person of the same religion as the religious body could reasonably consider.

    Because of this clause, the bill has alarmed some LGBTQI groups and some legal experts who say that the bill will discriminate against gay teachers and students.

    Criticisms

    • Some critics of the bill see it as a piece of legislation that is legalizing hate.
    • Some are questioning the government and asking for proof that people are discriminated against on the basis of religion in the country.
    • Further, there are also demands to protect gay students from discrimination.

     

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    What is Pre- Legislative Consultation Policy?

    The Union Government has listed 29 Bills (26 new and three pending) to be tabled in the winter session of Parliament.

    What is Pre-Legislative Consultation Policy?

    • In 2014, the Pre-Legislative Consultation Policy was adopted, mandating a host of rules, including that whenever the Government makes any law, it must place a draft version of it in the public domain for at least 30 days.
    • This policy provides a forum for citizens and relevant stakeholders to interact with policymakers.
    • The policy also says that along with the draft, a note explaining the law in simple language and justifying the proposal, its financial implication, impact on the environment and fundamental rights, a study on the social and financial costs of the bill, etc. should be uploaded.
    • The respective departments should also upload the summary of all the feedback that they receive on the circulated draft.

    Why in news?

    • Since the inception of the policy, 227 of the 301 bills introduced in Parliament have been presented without any prior consultation.
    • Of the 74 placed in the public domain for comment, at least 40 did not adhere to the 30-day deadline.

    The inception of the PLCP

    • The PLCP was formulated based on the broad recommendations of the National Advisory Council in 2013 and the National Commission to Review the Working of the Constitution (2002).
    • It aimed to create an institutionalized space for public participation in lawmaking processes.

    Empowerment through Pre legislative consultation policy

    • A Pre legislative consultation policy has numerous merits and can help nudge our country in the right direction.
    • Given how diverse this nation is, it is crucial that we have a means for citizens to get directly involved in the formulation of policy decisions, especially those that have a direct stake in the bill and its nature.
    • If we fail to do so we will risk falling behind the times. Countries like Britain and South Africa and even the state of Kerala already have already set up effective PLP processes.
    • If anything, Kerala’s effective model is proof of how effective this process can be at home.
    • Furthermore, this policy has the capacity to make historically marginalized groups feel more included and cared for.

    Significance of the policy

    • This policy provides a forum for citizens and relevant stakeholders to interact with the policymakers in the executive during the initial stages of lawmaking.
    • Protests in the recent past over laws such as the farm laws, the RTI Amendment Act, the Transgender Persons (Protection of Rights) Act, etc. have all highlighted that there is discontent among relevant stakeholders and the public at large since they were not looped in while framing such laws.
    • Public consultations enhance transparency, increase accountability, and could result in the building of an informed Government where citizens are treated as partners and not as subjects.

    Status of its implementation

    • During the 16th Lok Sabha (May 2014 to May 2019) 186 bills were introduced in Parliament, of which 142 saw no consultation prior to introduction.
    • From the 44 bills placed in the public domain for receipt of comments, 24 did not adhere to the 30-day deadline.
    • During the 17th Lok Sabha (June 2019 to present), 115 bills were introduced in Parliament, of which 85 saw no consultation prior to introduction.
    • From the 30 bills placed in the public domain for receipt of comment, 16 of them did not adhere to the 30-day deadline.
    • The tentative schedule for the winter session indicates that a total of 29 bills are listed for introduction and passing. Of these, 17 saw no prior consultation while from the 12 that were placed in the public domain, only six adhered to the 30-day deadline.

    Why is implementation difficult?

    • Though it is required that the mandates of an approved policy be heeded by all Government departments, the absence of a statutory or constitutional right has watered down its effect.
    • The effective implementation of the policy requires subsequent amendments in executive procedural guidelines like the Manual of Parliamentary Procedures and Handbook on Writing Cabinet Notes.
    • However, during a subsequent amendment to the Manual of Parliamentary Procedures, the Ministry of Parliamentary Affairs ignored the Ministry of Law and Justice when it requested them to incorporate PLCP provisions in the manual.

    Conclusion

    • Incorporation of pre-legislative consultation in the procedures of the Cabinet, Lok Sabha, Rajya Sabha etc. should be prioritized.
    • Similarly, it must be required of ministers while introducing the bill to place an addendum note on the details of the pre-legislative consultation.
    • Empowering citizens with a right to participate in pre-legislative consultations through a statutory and constitutional commitment could be a gamechanger.

     

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  • Indian Navy Updates

    Trilateral Exercise ‘Dosti’

    The 15th edition of the biennial trilateral coast guard exercise ‘Dosti’ involving India, the Maldives and Sri Lanka is underway in the Maldives.

    Exercise Dosti

    • The aim of this exercise is to further fortify the friendship, enhance mutual operational capability, and exercise interoperability and to build cooperation.
    • Both the Maldives and Sri Lanka are of strategic importance to New Delhi and to its maritime security interests.
    • 2021 marks 30 years since these exercises were first launched.

    Significance of the exercise

    • These exercises help during joint operations and missions undertaken by countries and also help enhance interoperability.
    • Although piracy is not a major issue in this part of the Indian ocean, these kinds of exercises also help coast guards with training for possibilities.
    • These exercises help develop a better understanding of the other nation’s coast guard operations and how to enhance coordination during different kinds of missions.

    What it involves

    • The scope of these exercises are wide-ranging.
    • India, Sri Lanka and the Maldives have agreed to work on what they called the “four pillars” of security cooperation.
    • These involved the areas of marine security, human trafficking, counter-terrorism and cyber security.

     

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