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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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  • Women empowerment issues – Jobs,Reservation and education

    A multi-pronged approach to end child marriage

    Context

    Reports suggest that more child marriages have been noticed during the Covid pandemic.

    Covid-19 and Girls

    Socio-economic impacts of Covid-19 are gendered, evident in the form of educational inequality, sexual violence, and increased household burden.

    • Increased domestic violence: In India, the National Commission for Women reported 2.5 times to increase in domestic violence during the initial months of nationwide lockdown.
    • Abuse & Trafficking: Closure of schools and pandemic induced poverty has increased the vulnerability of children especially the girl child to abuse and trafficking
    • School dropout: UNESCO’s Global Education Monitoring Report (2021) throws light on increased educational inequalities for adolescent girls during the Covid-19 crisis. UNESCO estimates that around 11 million girls may not return to school.
    • School Closures pushed Children into Labour: In 2021, says UNESCO, 24 million children may not find their way back to schools after the pandemic. Any child who is not in school is a potential child laborer.
    • Child Marriages: India witnessed an increase in the number of child marriages since 2020. Girls are further at risk – married off early, these child brides are also often child laborers.
    • Reduced Education Budget: Despite knowing the impact of the Pandemic on the education system & thus on Children’s future, the Union budget has Rs 5,000 crore less to spend on education for children this year.
    • Digital gender gap: The digital gender gap deters girls’ remote education and access to information.

    Child Marriage

    • It is defined as a marriage of a girl or boy before the age of 18 and refers to both formal marriages and informal unions in which children under the age of 18 live with a partner as if married.
    • UNICEF estimates suggest that each year, at least 1.5 million girls under 18 get married in India, which makes it home to the largest number of child brides in the world – accounting for a third of the global total.
    • A recent study by the Lancet shows that up to 2.5 million more girls (below the age of 18) around the world are at risk of marriage in the next 5 years because of the Covid-19 pandemic.

    Prevalence of child marriage in India

    • Data from the fourth round of the National Family Health Survey (NFHS4) in 2015-16 shows that even before Covid, one in four girls in India was being married before 18.
    • Around 8 percent of women aged 15-19 years were mothers or pregnant at the time of the survey.
    • The first phase findings of NFHS5 (2019-20) show that the needle has not moved substantially on ending child marriage.

    Why did Child Marriages have increased during Lockdowns?

    • Lack of Alert Mechanism: Earlier, when child marriages happened at wedding halls, temples, etc, there were people who would alert the relevant authorities or activists who would be able to reach on time to stop it.
      • But now, with marriages happening at homes, we may get fewer alerts and our going there could be treated as trespass.
    • Pandemic Induced Pressures: Economic pressures due to the pandemic have pushed poor parents to marry off girls early.
      • With no schools, the safety of children, particularly girls, was a major reason for the increase in violence against children and child marriages.

    Causes for Child Marriages

    • Age Factor: Some parents consider the age period of 15-18 as unproductive, especially for girls, so they start finding a match for their child during this age period.
      • Further, the Right To Education Act makes education free and compulsory up to the age of 14 only.
    • Insecurity: Law and Order are still not able to provide a secure environment for the girls in adolescent age, so some parents get their girl child married at a young age.
    • Other Reasons:
      • Poverty,
      • Political and financial reasons,
      • Lack of education,
      • Patriarchy and gender inequalities, etc.

    Consequences of child marriage

    • Violation of human rights: Child marriage violates girls’ human rights. It makes them almost invisible to policy.
    • Impact on education and health: It cuts short their education, harms their health, and limits their ability to fulfill themselves as productive individuals participating fully in society.
    • The low domestic status of teenage wives typically condemns them to long hours of domestic labor; poor nutrition and anemia; social isolation; domestic violence; early childbearing; and few decision-making powers within the home.
    • Malnutrition: Poor education, malnutrition, and early pregnancy lead to low birth weight of babies, perpetuating the intergenerational cycle of malnutrition.
    • The costs of child marriage include teenage pregnancy, population growth, child stunting, poor learning outcomes for children, and the loss of women’s participation in the workforce.

    What should be the policy interventions to end child marriage?

    • CCTs: Conditional cash transfers (CCTs) have been the main policy instrument introduced by most states in the last two decades to end child marriage.
    • CCTs alone cannot change social norms. We need a comprehensive approach.
    • Legislative measures: Legislation is one part of the approach.
    • Karnataka amended the Prohibition of Child Marriage Act in 2017, declaring every child marriage, making it a cognizable offense.
    • Expansion of education: These include expansion of secondary education, access to safe and affordable public transport, and support for young women to apply their education to earn a livelihood.
    • Expansion of education goes beyond access. Girls must be able to attend school regularly, remain there, and achieve.
    • States can leverage their network of residential schools, girls’ hostels, and public transport, especially in underserved areas, to ensure that teenage girls do not get pushed out of education.
    • Teachers should hold regular gender equality conversations with high school girls and boys to shape progressive attitudes that will sustain them into adulthood.
    • Empowerment measures: Empowerment measures, too, are required to end child marriage, such as community engagement through programs like Mahila Samakhya.
    • Children’s village assemblies in the 2.5 lakh gram panchayats across India can provide a platform for children to voice their concerns.
    • Government actions driving social change: Field bureaucrats across multiple departments, including teachers, Anganwadi supervisors, panchayat, and revenue staff, all of whom interact with rural communities, should be notified as child marriage prohibition officers.
    •  Decentralizing birth and marriage registration: Most important of all, decentralizing birth and marriage registration to gram panchayats will protect women and girls with essential age and marriage documents, thus better enabling them to claim their rights.

    Consider the question “What are the consequence of child marriage? Suggest the measures to deal with the issue.”

    Conclusion

    We need to adopt a comprehensive approach to deal with the problem of child marriage. The approach should include a focus on education and legal measures.

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  • Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

    The growth and inclusion potential of India’s telecom sector

    Context

    Shortly after the Cabinet announced nine structural and procedural reforms in September to address the deep financial woes of telcos, Vodafone Idea and Bharti Airtel hiked their tariff.

    About the package for telecom sector

    • The telecom relief package announced by the government in September supports proposals that have been repeatedly presented to the government by the regulator, industry associations and think tanks.
    • Risk of duopoly: With the risk of a duopoly looming large, the government was pushed to take up these long-pending decisions that included nine key changes.
    • Provisions in the package: Besides providing immediate relief on payment of licence fee and penalties due to the government, the package increased FDI limits, extended licence tenure to 30 years from 20, removed charges on spectrum-sharing and proposed timelines for spectrum auctions.
    • The package will undoubtedly have a positive short-term impact and perhaps safeguard competition in the future.

    Reforms and  challenge of addressing the inequality

    • From socialist to market-oriented economy: In July this year, we celebrated three decades of India’s 1991 reforms, one that catapulted India from being a socialist economy with a heart but no trickle-down, to a market-oriented economy with a mind but also very little trickle-down.
    • Inequality has been a feature of both models.
    • The 2018 Oxfam report showed that 10 per cent of the richest Indians took home 77.4 per cent of wealth (compared to 73 per cent the year before).
    • Moreover, 58 per cent of India’s wealth was in the hands of 1 per cent of the country’s population.
    • Changes in the modes of distribution: In the pre-1991 period, the principal modes of redistribution were taxation and public sector operations.
    • In the post-1991 period, it has been a combination of taxation, technology, smartphones and the associated direct benefit transfers.

    Role of telecom sector in addressing the challenge of achieving growth and inclusion

    • High growth dividend of telecom sector: Every 10 per cent increase in investment in telecom, for example, leads to a 3.2 per cent increase in GDP growth for India.
    • Not only is the growth dividend positive, it is large.
    • Mobile as a mean of financial integration: At the same time, the mobile phone has become a means for sophisticated financial integration, as shown by the expanding usage of pre-paid payment instruments and mobile banking.
    • The Jan-Dhan Yojana (JDY) attempts to include the marginalised and unbanked through technology.
    • As of October 2021, a total of 440 million bank accounts have been opened and more than 310 million RuPay cards have been issued under the latter, indicating the large unmet demand for banking services.
    • Making transfers predictable and targeted: The Jan-Dhan-Aadhaar-Mobile (JAM) trinity ties the Aadhaar number to an active bank account, making income transfers predictable and targeted.
    • There is already evidence that payments through Aadhaar-linked bank accounts have increased efficiency and reduced leakages.

    Way forward

    • Predictable and less erratic telecom policy: The benefits of digitalisation could have been much larger and more widespread had telecom policy been more predictable and less erratic.
    • That Indian reforms more often than not happen on the back of a crisis is true for the telecom sector.
    • The principal motive of the New Telecom Policy of 1999 was to rescue the deeply indebted sector of its own reckless bidding by replacing the fixed licence fee system with a revenue-sharing regime.
    • In hindsight, it was the right thing to do since it threatened business continuity.
    • The move to auction spectrum “for all times to come” in 2008 was necessitated by the administrative bungling in spectrum assignment.
    • Quick adaptation: A question we pose is why did it take a crisis — a grave one at that — to push the needle on policy change?
    • It is a a reasonable expectation of policy to adapt quickly and not wait for a crisis to emerge.

    Consider the question “Telecom sector could play an important role in achieving the growth with inclusion. In context of this, examine the challenges facing the sector and suggest the measures to deal with these challenges.”

    Conclusion

    The seemingly naïve question about the adaptation in policies may not be as credulous for the intensely dynamic digital markets. For there is no point shutting the stable door after the horse has bolted.

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  • Modern Indian History-Events and Personalities

    [pib] Who was Lachit Borphukan?

    The Prime Minister has paid tributes to Lachit Borphukan on Lachit Diwas.

    Who was Lachit Borphukan?

    • The year was 1671 and the decisive Battle of Saraighat was fought on the raging waters of the Brahmaputra.
    • On one side was Mughal Emperor Aurangzeb’s army headed by Ram Singh of Amer (Jaipur) and on the other was the Ahom General Lachit Borphukan.
    • He was a commander in the Ahom kingdom, located in present-day Assam.
    • Ram Singh failed to make any advance against the Assamese army during the first phase of the war.
    • Lachit Borphukan emerged victorious in the war and the Mughals were forced to retreat from Guwahati.

    Lachit Diwas

    • On 24 November each year, Lachit Divas is celebrated statewide in Assam to commemorate the heroism of Lachit Borphukan.
    • On this day, Borphukan has defeated the Mughal army on the banks of the Brahmaputra in the Battle of Saraighat in 1671.
    • The best passing out cadet of National Defence Academy has conferred the Lachit gold medal every year since 1999 commemorating his valour.

    Try this PYQ:

    Q.What was the immediate cause for Ahmad Shah Abdali to invade and fight the Third Battle of Panipat:

    (a) He wanted to avenge the expulsion by Marathas of his viceroy Timur Shah from Lahore

    (b) The frustrated governor of Jullundhar Adina Beg khan invited him to invade Punjab

    (c) He wanted to punish Mughal administration for non-payment of the revenues of the Chahar Mahal (Gujrat Aurangabad, Sialkot and Pasrur)

    (d) He wanted to annex all the fertile plains of Punjab upto borders of Delhi to his kingdom

    Post your answers here.

     

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