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  • All-India Household Consumer Expenditure Survey

    The All-India Household Consumer Expenditure Survey, usually conducted by the National Statistical Office (NSO) every five years, is set to resume this year after a prolonged break.

    What is the Consumer Expenditure Survey (CES)?

    • The CES is traditionally a quinquennial (recurring every five years) survey conducted by the government’s National Sample Survey Office (NSSO).
    • It is designed to collect information on the consumer spending patterns of households across the country, both urban and rural.
    • Typically, the Survey is conducted between July and June and this year’s exercise is expected to be completed by June 2023.

    Utility of the survey

    • The data gathered in this exercise reveals the average expenditure on goods (food and non-food) and services.
    • It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
    • It is used to arrive at estimates of poverty levels in different parts of the country and to review economic indicators such as the GDP, since 2011-12.

    Why need this survey?

    • India has not had any official estimates on per capita household spending.
    • It provides separate data sets for rural and urban parts, and also splice spending patterns for each State and Union Territory, as well as different socio-economic groups.

    What about the previous survey?

    • The survey was last held in 2017-2018.
    • The government announced that it had data quality issues.
    • Hence the results were not released.

     

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  • Strontium: A Cyber-Espionage Group

    Recently, Microsoft said that it had disrupted cyberattacks from a Russian nation-state hacking group called ‘Strontium’.

    What is Strontium?

    • Strontium, also known as Fancy Bear, Tsar Team, Pawn Storm, Sofacy, Sednit or Advanced Persistent Threat 28 (APT28) group, is a highly active and prolific cyber-espionage group.
    • It is one of the most active APT groups and has been operating since at least the mid-2000s, making it one of the world’s oldest cyber-spy groups.
    • It has access to highly sophisticated tools to conduct spy operations, and has been attacking targets in the US, Europe, Central Asia and West Asia.
    • The group is said to be connected to the GRU, the Russian Armed Forces’ main military intelligence wing.
    • The GRU’s cyber units are believed to have been responsible for several cyberattacks over the years and its unit 26165 is identified as Fancy Bear.

    How does it attack networks?

    • The group deploys diverse malware and malicious tools to breach networks.
    • In the past, it has used X-Tunnel, SPLM (or CHOPSTICK and X-Agent), GAMEFISH and Zebrocy to attack targets.
    • These tools can be used as hooks in system drivers to access local passwords, and can track keystroke, mouse movements, and control webcam and USB drives.
    • APT28 uses spear-phishing (targeted campaigns to gain access to an individual’s account) and zero-day exploits (taking advantage of unknown computer-software vulnerabilities) to target specific individuals and organizations.
    • It has used spear-phishing and sometimes water-holing to steal information, such as account credentials, sensitive communications and documents.
    • A watering hole attack compromises a site that a targeted victim visits to gain access to the victim’s computer and network.

     

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  • Why are blue straggler stars different from the norm?

    Researchers from the Indian Institute of Astrophysics, Bengaluru have studied the eccentricities of blue straggler stars.

    What are Blue Straggler Stars?

    • A blue straggler is a main-sequence star in an open or globular cluster that is more luminous and bluer than stars at the main sequence turnoff point for the cluster.
    • Blue stragglers were first discovered by Allan Sandage in 1953 while performing photometry of the stars in the globular cluster M3.

    What did the Indian researchers study?

    • Eccentricity is the deviation of a planets’ or stars’ orbit from circularity — the higher the eccentricity, the greater the elliptical orbit.
    • For this, the researchers also made use of the observations by the UVIT instrument (Ultra Violet Imaging Telescope) of ASTROSAT, India’s first science observatory in space.

    (a) Stellar ageing of stars

    • To know what blue stragglers are, it is necessary to understand how stars are classified and their evolution, studied.
    • Our Sun, for example, is what is called a main sequence star, and, given its mass and age, it is expected that once it has converted all its hydrogen into helium, its core will get denser, while outer layers expand.
    • So, it will bloat into a red giant.
    • After this phase, its fuel spent, it will shrink, becoming a smaller, cooling star called a white dwarf star at the end of its life.

    (b) Sequencing of stars

    • To study the behaviour of the star, you could plot a graph of the colour of a star, which is an indication of its surface temperature, against its magnitude, which is related to the total energy given off by it.
    • If you do this for all the stars in a globular cluster, a large number of stars are seen to find a place within a band known as the main sequence.
    • Our Sun is a main sequence star, too, and the expectation is that all main sequence stars follow a pattern of evolution pretty much like our Sun’s fate, which was described earlier.
    • There are a few stars that, just at the stage of their lives, when they are expected to start expanding in size and cooling down, do just the opposite.
    • They grow brighter and hotter and blue in colour, thus standing out from the cooler red stars in their vicinity in the colour-magnitude diagram.
    • Since they lag behind their peers in the evolution, they are called stragglers, more specifically, blue stragglers, because of their hot, blue colour.

    Outcome of the research: Reasons for Blue Stragglers behaviour

    • The puzzle of why a blue straggler is more massive, and energetic than expected may be resolved in several ways.
    • One that these do not belong to the family of stars in the cluster, and hence are not expected to have the group properties.
    • Second, the straggler draws matter from the giant companion and grows more massive, hot and blue, and the red giant ends up as a normal or smaller white dwarf.
    • The third possibility is that the straggler draws matter from a companion star, but that there is a third star that facilitates this process.

     

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  • Palli in Jammu becomes India’s First Carbon-Neutral Panchayat

    Palli village in Samba district of Jammu and Kashmir has become the first panchayat in the country to become carbon-neutral, fully powered by solar energy.

    Various feats achieved

    • All its records have been digitised and the benefits of all the Central schemes are available in this village around 17 km from Jammu.
    • Palli village, with its enthusiastic and dedicated elected representatives full of dreams, has shown how to implement the Glasgow pledge (Panchamrita) made by PM Modi.
    • It has set an example of the slogan Sabka Prayas (everyone’s efforts).

    What is Carbon Neutrality?

    • Carbon neutrality refers to achieving net-zero carbon dioxide emissions or buying enough carbon credits to make up the difference.
    • This can be done by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society.
    •  It is used in the context of carbon dioxide-releasing processes associated with transportation, energy production, agriculture, and industry.
    •  The term carbon neutral also includes other greenhouse gases, usually carbon-based, measured in terms of their carbon dioxide equivalence.
    • The term “net-zero” is increasingly used to describe a broader and more comprehensive commitment to decarbonization and climate action.
    • Net-zero emissions are achieved when your organization’s emissions of all greenhouse gases (CO2-e) are balanced by greenhouse gas removals

    Methodology

    Carbon-neutral status can be achieved in two ways:

    • Carbon offsetting: Balancing carbon dioxide emissions with carbon offsets — the process of reducing or avoiding greenhouse gas emissions or removing carbon dioxide from the atmosphere to make up for emissions elsewhere. If the total greenhouse gasses emitted is equal to the total amount avoided or removed, then the two effects cancel each other out and the net emissions are ‘neutral’.
    • Reducing emissions: Reducing carbon emissions can be done by moving towards energy sources and industrial processes that produce fewer greenhouse gases, thereby transitioning to a low-carbon economy. Shifting towards the use of renewable energy such as hydro, wind, geothermal, and solar power, as well as nuclear power, reduces greenhouse gas emissions.

    Agreement and Target

    • The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
    • Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.
    • Article 4.1 of the Paris Agreement asks countries to reach global peaking of greenhouse gas emissions as soon as possible.
    • It also requires countries to undertake rapid reductions in carbon emissions to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases.

    Back2Basics:  Panchamrita

    • ‘Panchamrita’ is a traditional method of mixing five natural foods — milk, ghee, curd, honey, and jaggery.
    • These are used in Hindu and Jain worship rituals. It is also used as a technique in Ayurveda.
    • The PM euphemistically termed his scheme as ‘Panchamrita’ meaning the ‘five ambrosia’.
    • Under Panchamrita’, India will:
    1. Get its non-fossil energy capacity to 500 gigawatts by 2030
    2. Meet 50 percent of its energy requirements till 2030 with renewable energy
    3. Reduce its projected carbon emission by one billion tonnes by 2030
    4. Reduce the carbon intensity of its economy by 45 percent by 2030
    5. Achieve net-zero by 2070

     

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  • What is different now in communal violence in India

    Context

    India has a long history of communal violence. Just how similar or different are the recent episodes? And what kind of dangers do they pose to the polity and society?

    What is different this time?

    • Religious processions: It should first be noted that such processions have historically been some of the largest triggers for communal riots.
    • Such processions can be, and have been, intensely political, often morphing from the religious to the communal.
    • Communalism Vs. Religiosity: Communalism in South Asia has always been distinguished from religiosity.
    • Religiosity may be about deeper meanings of life, but communalism is about a coercive assertion of power or a bloody search for retribution, often historically construed and presented.
    • Thus, it is not the coexistence of religious processions and riots that is surprising today.
    • What is different this time? Ram Navami and Hanuman Jayanti are not the principal religious processions touching off riots.
    • Eroding neutrality of state: The second difference that in the past, processions might have caused riots, but the state rarely gave up the principle of neutrality in dealing with them.
    • When a state either explicitly favours a community or looks away when a particular community is hounded, intimidated and attacked, it is no longer a riot, but a pogrom.
    • The rapidly eroding religious neutrality of the government in several states is one of the most alarming political developments.
    • In recent months, there have been spectacles of calls to murder in Dharam Sansads (religious assemblies).
    • Such speech is criminally liable. India’s Constitution prohibits speech that endangers “public order”.
    • In the past, it was invariably hard to find clear evidence of who led the riots.
    • The riot leaders now openly proclaim call for violence.
    • Such leaders are either not punished, or are merely given a slap on the wrist and some of them are even celebrated as heroes and rewarded with high office.
    • New research on vigilantism makes it clear that vigilantism, especially lynchings, cannot flourish unless the state provides impunity to vigilante groups.

    Conclusion

    Even though India has a long history of communal violence the recent episodes of violence are different and pose grave dangers to the polity and society.

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  • Digital Service Tax

    Context

    Over the past four years, 137 countries have engaged intensively with the OECD to find a solution to the tax challenges arising from digitalisation. Like any international agreement, finding a middle ground has been difficult and a series of compromises have been made.

    What makes it difficult to tax the digital economy?

    • Operation across the border: The unique feature of the digital economy is that firms can operate seamlessly across borders and users and their data contribute to their profits.
    • However, this made it harder to tax such an economy.
    • It was not clear how profits were to be pinned down to any jurisdiction.
    • Political issues: Taxing digital economy became a political issue because the largest technology firms are tax residents of developed countries and redefining digital presence as the basis of taxation would potentially allow large markets like India more right to tax.
    • Developing vs. developed countries: Developing countries wanted that profits from digital operations should be fractionally apportioned to markets while developed countries believe that a fraction of residual profit, mainly arising from marketing functions, should be taxed in markets.

     Equalisation levy and DST issue

    • The divergence in developed and developing countries as explained above compelled countries to implement unilateral measures.
    • India was the first country to implement a gross equalisation levy on turnover.
    • This is not covered by tax treaties.
    • So, while the income tax act does not apply to the levy, credit is available for the tax paid by the company in its home country.
    • Similarly, several other countries have announced or implemented a digital services tax (DST).
    • In 2021, India expanded the scope of the equalisation levy.
    • The US initiated the US Trade Representative investigations which found DST to be discriminatory, and then announced retaliatory tariffs.

    Two-pillar approach and issues with its adoption

    • The DSTs encouraged the US to actively participate in finding a consensus-based solution.
    • As talks progressed, the OECD announced that the issue of allocation of taxing rights would be actively considered and adopted a two-pillar approach.
    • Pillar One approach: The first pillar was to define the rules for taxing digital companies.
    • Sovereignty issue: Pillar One was to go beyond digital companies and apply to large companies with annual revenue over € 20 billion. To ensure certainty to taxpayers, the solution will require excessive global coordination.
    • Whether this will undermine sovereignty, remains to be seen.
    • Therefore, it is important to consider if the consensus approach is worth pursuing.
    • EL may still apply to companies not covered by OECD proposal: In fact, the EL may apply to companies that are not covered by the OECD proposal, leaving one to wonder whether it will truly address the tax challenges from digitalisation. 
    • Complications: Corporations that argue in favour of simplicity must also consider the potential benefits from an EL like tax that sets aside the complications of attributing profits to complex functions.
    • The OECD approach creates a fiction of reallocation, where the profits reallocated through Pillar One could in fact be compensated for by taxing back global profits taxed below 15 per cent.

    Conclusion

    As per Pillar One proposal, DSTs will be removed once the OECD approach is ratified in 2023. It is imperative therefore that countries assess the price of compromise.

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  • NITI Aayog gets a new Vice-Chairman

    The government has appointed Suman K. Bery as the vice-chairman of the NITI Aayog following the resignation of Rajiv Kumar.

    What is NITI Aayog?

    • The NITI Aayog serves as the apex public policy think tank of the GoI.
    • It was established in 2015, by the NDA government, to replace the Planning Commission which followed a top-down model.
    • It advises both the centre and states on social and economic issues.
    • It is neither a constitutional body nor a statutory body but the outcome of an executive resolution. It was not created by the act of parliament.

    Composition of NITI Aayog

    • The Prime Minister of India is the chairperson/chairman of the NITI Aayog.
    • The PM appoints one Vice-Chairperson, who holds the rank of a cabinet minister.
    • It includes the Chief Ministers of all the states and Union territories.
    • It has Regional Councils for looking after contingencies in regional areas. It is convened and chaired by the Prime Minister of India and includes concerned chief ministers and Lt. Governors.
    • The Prime Minister nominates Personalities with skilled knowledge, who are experts in particular domains as special invitees.
    • There are full-time members who hold the rank of ministers.
    • There is a maximum of two Part-time members who are invited from leading organisations, universities, and research centres.
    • The Prime Minister also appoints one Chief Executive Officer (CEO) who holds the rank of a Secretary.

    Aims, Agenda, and Objectives of NITI Aayog

    The purpose with which NITI Aayog was formed in place of the Planning Commission was a far-sighted vision. It was important to boost the development of India in the emerging global scenario. The objectives are:

    • To generate a platform for national development, sectors and strategies with the collaboration of states and centre.
    • To boost the factor of cooperative federalism between the centre and the states. For national development, it is necessary for both wings to work in synergy.
    • To develop such mechanisms which work at the ground root level for progressive growth. A nation develops when its regions and states develop.
    • To work on long term policies and strategies for long-term development. To set up a system for monitoring progress so that it can be used for analysing and improving methods.
    • To provide a platform for resolving inter-departmental issues amicably.
    • To make it a platform where the programmes, strategies, and schemes can be monitored on a day to day basis, and it could be understood which sector needs more resources to develop.
    • To upgrade technological advancements in such a manner that focus can be made on iNITIatives and programmes.
    • To ensure India’s level and ranking at the worldwide level and to make India an actively participating nation.
    • To progress from food security towards nutrition and standardised meals and focus on agricultural production.
    • To make use of more technology to avoid misadventures and corruption in governance.
    • To make the working system more transparent and accountable.

    NITI Aayog – Seven Pillars of Effective Governance

    • NITI Aayog works on principles like Antyodaya (upliftment of poor), inclusion (to include all sections under one head), people participation, and so on.
    • NITI Aayog is a body that follows seven pillars of governance. They are:
    1. To look after pro-people agenda so that the aspirations and desires of no one are compromised.
    2. To respond and work on the needs of citizens.
    3. Make citizens of the nation involve and participate in various streams.
    4. To empower women in all fields, be it social, technical, economic, or other.
    5. To include all sects and classes under one head. To give special attention to marginalised and minority groups.
    6. To provide equal opportunity for the young generation.
    7. To make the working of government more accountable and transparent. It will ensure less chance of corruption and malpractices.

     

    Also read:

    [Burning Issue] Niti Ayog – A critical Analysis

     

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  • What laws govern tapping a phone; what are the checks in place?

    A lady IPS officer is facing an FIR in Mumbai for allegedly tapping the phones of a Rajya Sabha MP in Maharashtra.

    How are phones tapped in India?

    • In the era of fixed-line phones, mechanical exchanges would link circuits together to route the audio signal from the call.
    • When exchanges went digital, tapping was done through a computer.
    • Today, when most conversations happen through mobile phones, authorities make a request to the service provider.
    • The service provider is bound by law to record the conversations on the given number and provide these in real time through a connected computer.

    Who can tap phones?

    • The State Police have the powers to tap phones.
    • Ten Central agencies are authorised to do so: Intelligence Bureau, CBI, Enforcement Directorate, Narcotics Control Bureau, Central Board of Direct Taxes, Directorate of Revenue Intelligence, National Investigation Agency, R&AW, Directorate of Signal Intelligence, and the Delhi Police Commissioner.
    • Tapping by any other agency would be considered illegal.

    What laws govern this?

    • Phone tapping in India is governed by The Indian Telegraph Act, 1885.
    • Section 5(2) says that “on the occurrence of any public emergency, or in the interest of the public safety”, phone tapping can be done by the Centre or states.
    • It can be done in the interest of “public safety”, “sovereignty and integrity of India, the security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of an offence”.
    • There is an exception for the press: “press messages intended to be published in India of correspondents accredited to the Central Government or a State Government shall not be intercepted or detained, unless their transmission has been prohibited under this sub-section”.
    • The competent authority must record reasons for tapping in writing.

    Who authorises phone tapping?

    • Rule 419A of the Indian Telegraph (Amendment) Rules, 2007, says phone tapping orders “shall not be issued except by an order made by the Secretary to the GoI in the Ministry of Home Affairs.
    • It can be authorised by the Secretary to the State Government in-charge of the Home Department in the case of a State Government.
    • The order has to be conveyed to the service provider in writing; only then can the tapping begin.

    What happens in an emergency?

    • In unavoidable circumstances, such an order may be issued by an officer, not below the rank of a Joint Secretary to the GoI, who has been authorised by the Union Home Secretary, or the State Home Secretary.
    • In remote areas or for operational reasons, if it is not feasible to get prior directions, a call can be intercepted with the prior approval of the head or the second senior-most officer of the authorised law enforcement agency at the central level, and by authorised officers, not below the rank of Inspector General of Police, at the state level.
    • The order has to be communicated within three days to the competent authority, who has to approve or disapprove it within seven working days.
    • If the confirmation from the competent authority is not received within the stipulated seven days, such interception shall cease.
    • For example, during the 26/11 attacks in Mumbai, the authorities had no time to follow the complete procedure, and so a mail was sent to the service provider by the Intelligence Bureau.

    What are the checks against misuse?

    • The law is clear that interception must be ordered only if there is no other way of getting the information.
    • The directions for interception remain in force, unless revoked earlier, for a period not exceeding 60 days.
    • They may be renewed, but not beyond a total of 180 days.
    • Any order issued by the competent authority has to contain reasons, and a copy is to be forwarded to a review committee within seven working days.
    • At the Centre, the committee is headed by the Cabinet Secretary with the Law and Telecom Secretaries as members.
    • In states, it is headed by the Chief Secretary with the Law and Home Secretaries as members.
    • The committee is expected to meet at least once in two months to review all interception requests.

    What if misuse occurs?

    • When the Review Committee is of the opinion that the directions are not in accordance with the provisions referred to above it may set aside the directions.
    • It may order for destruction of the copies of the intercepted message or class of messages.
    • Under the rules, records pertaining to such directions shall be destroyed every six months unless these are, or are likely to be, required for functional requirements.
    • Service providers too are required to destroy records pertaining to directions for interception within two months of discontinuance of the interception.

    Is the process transparent?

    • There are multiple provisions aimed at keeping the process transparent.
    • Directions for interception are to specify the name and designation of the officer or the authority to whom the intercepted call is to be disclosed.
    • The directions have to be conveyed to designated officers of the service providers in writing by an officer not below the rank of SP or Additional SP or equivalent.
    • The officer is expected to maintain records with details of the intercepted call.
    • The designated nodal officers of the service providers are supposed to issue acknowledgment letters to the security/law enforcement agency within two hours on receipt of an intimation.
    • They are to forward every 15 days a list of interception authorisations received to the nodal officers of the security and law enforcement agencies for confirmation of authenticity.
    • It makes the service providers responsible for actions of their employees.
    • In case of unauthorised interception, the service provider may be fined or even lose its licence.

     

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  • India extends duration of $400 mn Currency Swap to SL

    India has extended the duration of a $400 million currency swap facility with Sri Lanka which it had concluded with the island nation in January this year.

    What are Currency Swaps?

    • A currency swap, also known as a cross-currency swap, is an off-balance sheet transaction in which two parties exchange principal and interest in different currencies.
    • Currency swaps are used to obtain foreign currency loans at a better interest rate than could be got by borrowing directly in a foreign market.

    Practice question for mains:

    Q. What are Currency Swaps? Discuss the efficacy of Currency Swap Agreements for enhancing bilateral cooperation in Indian context.

    How does it work?

    • In a swap arrangement, RBI would provide dollars to a Lankan central bank, which, at the same time, provides the equivalent funds in its currency to the RBI, based on the market exchange rate at the time of the transaction.
    • The parties agree to swap back these quantities of their two currencies at a specified date in the future, which could be the next day or even three months later, using the same exchange rate as in the first transaction.
    • These swap operations carry no exchange rate or other market risks, as transaction terms are set in advance.

    Why does one need dollars?

    • FPIs investors look for safer investments but the current global uncertainty over COVID outbreak has led to a shortfall everywhere in the global markets.
    • This has pulled down foreign exchange reserves of many small and developing countries.
    • This means that the government and the RBI cannot lower their guard on the management of the economy and the external account.

    Benefits of currency swap

    • The absence of an exchange rate risk is the major benefit of such a facility.
    • This facility provides the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.
    • Swaps agreements between governments also have supplementary objectives like the promotion of bilateral trade, maintaining the value of foreign exchange reserves with the central bank and ensuring financial stability (protecting the health of the banking system).

     

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  • Postal ballot for NRIs being contemplated

    Chief Election Commissioner, during a recent visit to South Africa and Mauritius, urged Non-Resident Indians (NRIs) to register as overseas electors and told them that a proposal on postal ballots for NRIs was being contemplated by the Election Commission of India.

    Why in news now?

    • CECs interactions with NRIs came after Union Law Minister informed the Lok Sabha in March that the government was exploring the possibility of allowing online voting for NRIs.
    • The ECI had written to the Law Ministry in 2020 proposing that NRIs be allowed to vote through postal ballots, following which the matter has been under consideration by the government.
    • The ECI at present allows NRIs to register as overseas electors as long as they have not acquired the citizenship of another country.
    • They have to reach their respective polling booths to cast their votes in person on voting day.

    Classification of Overseas Indians

    Overseas Indians, officially known as Non-resident Indians (NRIs) or Persons of Indian Origin (PIOs), are people of Indian birth, descent or origin who live outside the Republic of India:

    (A) Non-Resident Indian (NRI)

    • Strictly asserting non-resident refers only to the tax status of a person who, as per section 6 of the Income-tax Act of 1961, has not resided in India for a specified period for the purposes of the Act.
    • The rates of income tax are different for persons who are “resident in India” and for NRIs.

    (B) Person of Indian Origin (PIO)

    Person of Indian Origin (PIO) means a foreign citizen (except a national of Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka and/or Nepal), who:

    • at any time held an Indian passport OR
    • either of their parents/grandparents/great-grandparents were born and permanently resident in India as defined in GoI Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of any of the aforesaid countries OR
    • is a spouse of a citizen of India or a PIO.

    (C) Overseas Citizenship of India (OCI)

    • After multiple efforts by leaders across the Indian political spectrum, a pseudo-citizenship scheme was established, the “Overseas Citizenship of India”, commonly referred to as the OCI card.
    • The Constitution of India does not permit full dual citizenship.
    • The OCI card is effectively a long-term visa, with restrictions on voting rights and government jobs.

     

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