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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Spirit of federalism lies in consultation

    op-ed snap | Polity | Mains Paper 2: Federalism

    Context

    Recently, various State governments raised concerns about Central unilateralism in the enactment of critical laws on subjects in the Concurrent List of the Seventh Schedule.

    Objection of the state against Centre legislating on the subject in Concurrent List without consulting States

    • Unilateral legislation on subjects in Concurrent list: Kerala Chief Minister stated that it is not in the essence of federalism for the Union government to legislate unilaterally, on the subjects in the Concurrent List.
    • Encroaching on powers of States: Tamil Nadu Chief Minister raised the issue by calling on other Chief Ministers against the Union government encroaching on powers under the State and Concurrent Lists.
    • The Kerala Legislative Assembly unanimously passed a resolution against the Electricity (Amendment) Bill, 2020.
    • The Tamil Nadu Legislative Assembly passed a resolution against the controversial farm laws.

    Background of the Concurrent List

    • The Concurrent List gives the Union and the State Legislatures concurrent powers to legislate on the subjects contained in it.
    • Purpose of Concurrent List: The fields in the Concurrent List were to be of common interest to the Union and the States, and the power to legislate on these subjects to be shared with the Union so that there would be uniformity in law across the country.

    Union government extending its control on subjects in the Concurrent List and State list

    1) Farm laws: Encroaching on the powers of States

    • Parliament passed the farm laws without consulting the States.
    • State List subject: The laws, essentially related to Entry 14 (agriculture clause) belonging to the State List.
    • However, Parliament passed the law citing Entry 33 (trade and commerce clause) in the Concurrent List.
    • Against legal principle set by the Supreme Court: The Supreme Court, beginning from the State of Bombay vs F.N. Balsara case, said that if an enactment falls within one of the matters assigned to the State List and reconciliation is not possible with an entry in the Concurrent or Union List after employing the doctrine of “pith and substance”, the legislative domain of the State Legislature must prevail.

    2) Major Port Authorities Act 2021 and Indian Ports Bill: Centre taking away the power of State

    • The Major Ports Authorities Act, 2021, was passed by Parliament earlier this year.
    • Goa objected to the law, stating that it would lead to the redundancy of the local laws.
    • Concurrent List subject: When it comes to non-major ports, the field for legislation is located in Entry 31 of the Concurrent List. 
    • The Indian Ports Act, 1908, presently governs the field related to non-major ports.
    • As per the Indian Ports Act, 1908, the power to regulate and control the minor ports remained with the State governments.
    • The new draft Indian Ports Bill, 2021, proposes the Maritime State Development Council (MSDC), which is overwhelmingly controlled by the Union government.

    3) Electricity (Amendment) Bill,2020: Centre taking away powers of State

    • Various States like West Bengal, Tamil Nadu and Kerala have also come forward against the Electricity (Amendment) Bill, 2020.
    • The field related to electricity is traceable to Entry 38 of the Concurrent List.
    • The power to regulate the sector was vested with the State Electricity Regulatory Commissions (SERCs), members of which were appointed by the State government.
    • The proposed amendment seeks to establish National Selection Committee, dominated by members nominated by the Union government that will make appointments to the SERCs.
    • The amendment also proposes the establishment of a Centrally-appointed Electricity Contract Enforcement Authority (ECEA).
    • In effect, the power to regulate the electricity sector would be taken away from the State government.

    Way forward

    • Consultation with States: The National Commission to Review the Working of the Constitution (NCRWC), or the Venkatachaliah Commission, had recommended that individual and collective consultation with the States should be undertaken through the Inter-State Council established under Article 263 of the Constitution.
    • Coordination of policy and action in concurrent jurisdiction: The Sarkaria Commission Report had recommended that there should be a coordination of policy and action in all areas of concurrent or overlapping jurisdiction through a process of mutual consultation.
    • Limit powers to ensuring uniformity: The Sarkaria Commission further recommended that the Union government, while exercising powers under the Concurrent List, limit itself to the purpose of ensuring uniformity in basic issues of national policy and not more.
    • Responsibility of Centre: The Supreme Court itself had held in the S.R. Bommai vs Union of India case, the States are not mere appendages of the Union.
    • The Union government should ensure that the power of the States is not trampled with.

    Consider the question “There has been instances of protest by the State government against Centre legislating unilaterally on subjects in Concurrent List. What are the implications of this for the federalism? Suggest the way forward.”

    Conclusion

    The essence of cooperative federalism lies in consultation and dialogue, and unilateral legislation without taking the States into confidence will lead to more protests on the streets.

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  • Insolvency and Bankruptcy Code

    New Code for Creditors (CoC) under IBC

    | Economics | Mains Paper 3: Indian Economy

    The insolvency regulator has called for public comments on a proposal to introduce a code of conduct for Committees of Creditors (CoC), of companies undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).

    Before proceeding, try this PYQ first:

    Q. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (CSP 2017)

     

    (a) It is a procedure for considering the ecological costs of developmental schemes formulated by the Government.

    (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

    (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

    (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

     

    Post your answers here.

    About IBC

    • The IBC, 2016 is the bankruptcy law of India that seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
    • It is a one-stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement.
    • The code aims to protect the interests of small investors and make the process of doing business less cumbersome.

    Key features

    Insolvency Resolution: The Code outlines separate insolvency resolution processes for individuals, companies, and partnership firms. The process may be initiated by either the debtor or the creditors. A maximum time limit, for completion of the insolvency resolution process, has been set for corporates and individuals.

    1. For companies, the process will have to be completed in 180 days, which may be extended by 90 days, if a majority of the creditors agree.
    2. For startups (other than partnership firms), small companies, and other companies (with assets less than Rs. 1 crore), the resolution process would be completed within 90 days of initiation of request which may be extended by 45 days.

    Insolvency regulator: The Code establishes the Insolvency and Bankruptcy Board of India, to oversee the insolvency proceedings in the country and regulate the entities registered under it. The Board will have 10 members, including representatives from the Ministries of Finance and Law, and the RBI.

    Insolvency professionals: The insolvency process will be managed by licensed professionals. These professionals will also control the assets of the debtor during the insolvency process.

    Bankruptcy and Insolvency Adjudicator: The Code proposes two separate tribunals to oversee the process of insolvency resolution, for individuals and companies:

    1. National Company Law Tribunal: for Companies and Limited Liability Partnership firms; and
    2. Debt Recovery Tribunal: for individuals and partnerships

    What is the recent development?

    Ans. Code of conduct for Committees of Creditors (CoC)

    • A CoC is to be composed of financial creditors to the Corporate Debtor (CD) — or operational creditors in the absence of unrelated financial creditors.
    • Under the IBC, CoC is empowered to take key decisions, including decisions on haircuts for creditors, that are binding on all stakeholders, including those dissenting.
    • The CoC is also empowered to seek and choose the best resolution plan for a corporate debtor from the market, and its role is vital for a timely and successful resolution for a CD.
    • The IBBI noted that a code of conduct for CoCs would promote transparent and fair working on the part of CoCs.

    What are the issues that the code of conduct is seeking to address?

    • Several cases in which certain lenders have withdrawn funds from a CD undergoing insolvency proceeding and contributed to delays in the insolvency process.
    • Delays in resolution are seen as contributing to the loss of value in corporate debtors and have become a key criticism of the IBC, with over 75 percent of proceedings having crossed the 270-day timeline.
    • The IBBI highlighted cases in which representatives of lenders have had to seek approval from seniors for decisions such as an appointment of resolution professionals.
    • IBBI has recommended that a code of conduct require that members of the CoC nominate representatives with sufficient authorization to participate in meetings and make decisions during the process.
    • The regulator also highlighted cases where lenders have withdrawn funds from a corporate debtor during insolvency or liquidation proceedings.

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  • Goods and Services Tax (GST)

    Govt must constitute GST tribunal: SC

    | Economics | Mains Paper 3: Indian Economy

    The Supreme Court has warned that the government had no option but to constitute the Goods and Services Tax (GST) Appellate Tribunal.

    What is GST Appellate Tribunal?

    • The GST Appellate Tribunal (GSTAT) is the second appeal forum under GST for any dissatisfactory order passed by the First Appellate Authorities.
    • The National Appellate Tribunal is also the first common forum to resolve disputes between the centre and the states.
    • Being a common forum, it is the duty of the GST Appellate Tribunal to ensure uniformity in the redressal of disputes arising under GST.
    • It holds the same powers as the court and is deemed Civil Court for trying a case.

    Constitution of the GST Appellate Tribunal

    The GSTAT has the following structure:

    1. National Bench: The National Appellate Tribunal is situated in New Delhi, constitutes a National President (Head) along with 2 Technical Members (1 from Centre and State each)
    2. Regional Benches: On the recommendations of the GST Council, the government can constitute (by notification) Regional Benches, as required. As of now, there are 3 Regional Benches (situated in Mumbai, Kolkata and Hyderabad) in India.
    3. State Bench and Area Bench

    Why in news now?

    • The GST tribunal has not been constituted even four years after the central GST law was passed in 2016.
    • Section 109 of the GST Act mandates the constitution of the Tribunal.
    • Citizens aggrieved are constrained to approach respective High Court and the same was overburdening the work of the High Courts.

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    Back2Basics: Goods and Services Tax

    • The GST is a value-added tax levied on most goods and services sold for domestic consumption.
    • It was launched into operation on the midnight of 1st July 2017.
    • It subsumed almost all domestic indirect taxes (petroleum, alcoholic beverages, and stamp duty are the major exceptions) under one head.
    • The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.
    • GST is levied at four rates viz. 5%, 12%, 18% and 28%. The schedule or list of items that would fall under these multiple slabs is worked out by the GST council.

    Types

    • The GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST).
    • Import of goods or services would be treated as inter-state supplies and would be subject to Integrated Goods & Services Tax (IGST) in addition to the applicable customs duties.

    The GST Council

    • It is a constitutional body (Article 279A) for making recommendations to the Union and State Government on issues related to GST.
    • The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in charge of Finance or Taxation of all the States.
    • It is considered as a federal body where both the centre and the states get due representation.

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Right to Sit to be mandated in Tamil Nadu

    | Polity | Mains Paper 2: Parliament & State Legislatures

    The Tamil Nadu government has tabled a Bill in the Legislative Assembly making it mandatory for establishments to provide seating facilities for employees.

    Right to Sit

    • The Right to Sit is aimed to benefit thousands of employees of large and small establishments, particularly those working in textile and jewelry showrooms.
    • Persons employed in shops and establishments in the State are made to stand throughout their duty time resulting in varied health issues.
    • The bill mandates for every premises of establishments to have suitable seating arrangements for all employees so that they may take advantage of any opportunity to sit in the course of their work.
    • This would avoid the ‘on their toes’ situation throughout the working hours.

    Inspired from Kerala

    • A few years ago, workers of textile showrooms in Kerala had gone on a protest demanding the ‘Right to Sit’, prompting the government there to amend the Kerala Shops and Establishments Act in 2018.
    • This in turn provided seating arrangements for them.

    A move for women

    • Most owners of shops and other retail outlets forbid women, the bulk of the shop workforce, to sit.
    • Even leaning against a wall was punished. They have varicose veins and joint pain from standing.
    • Toilet breaks were strictly limited. This has led to urinary infections, kidney problems.

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  • International Space Agencies – Missions and Discoveries

    Inspiration4: SpaceX’s first all-civilian space mission

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    SpaceX has announced its ‘Inspiration4’ mission, the first all-civilian, non-governmental spaceflight, for launch.

    What is Inspiration4?

    • Inspiraton4 is a part of an effort to raise funds for pediatric treatment and research facility that focuses on children’s catastrophic diseases, particularly leukemia and other cancers.
    • The mission involves circling the Earth for three days and then splashing down into the Atlantic Ocean.
    • Inspiration4 will orbit the Earth at 575km, higher than the International Space Station (408km) and the Hubble space telescope (547km).
    • This will be the farthest distance travelled by a crewed mission since 2009, when astronauts last went to repair the Hubble.
    • The Dragon module that the group will be using has also been modified for the mission.
    • Usually, the SpaceX module is used for travelling to the ISS, where it has to dock or join the floating laboratory.

    UPSC may ask an MCQ asking: Which of the following is/are the space missions related to human flights? It may throw up 4-5 options (which we all get confused at after few months) like Cassini , InSight , Messanger, Voyager etc.

    Key feature: Dome window

    • Since Inspiration4 is not going to the ISS, the docking port has been removed and has been replaced with a dome window instead.
    • This dome window will offer breath-taking views of the Earth for the four travellers.
    • The window has been inspired by the Cupola, a module on the ISS used to make observations about our planet.

    Why is the mission significant?

    • According to a report in the Independent, the journey will present an opportunity for collecting large amounts of health data that will aid in planning future crewed space missions.
    • As per the report, they will collect data on ECG (electrocardiograph) activity, movement, sleep, heart rate, and rhythm, blood oxygen saturation, cabin noise and light intensity, which will help in assessing behavioral and cognitive changes over the journey.
    • The travelers will undergo balance and prescription tests just before and after their journey to assess their response to the change in gravity.
    • The immune system function will also be monitored by collecting blood. Their organ systems will also be monitored by an AI-powered ultrasound device.

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  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    Odisha’s Manda buffalo gets unique, indigenous tag

    Prelims Only | Agriculture | Mains Paper 3: Economics Of Animal-Rearing

    The National Bureau of Animal Genetic Resources (NBAGR) has recognized the Manda buffalo, found in the Eastern Ghats and plateau of Koraput region of Odisha, as the 19th unique breed of buffaloes found in India.

    Manda Buffalo

    • The Manda are resistant to parasitic infections, less prone to diseases and can live, produce and reproduce at low or nil input systems.
    • These buffaloes have ash grey and grey coat with copper-coloured hair.
    • The lower part of the legs up to the elbow is light in colour with copper colour hair at the knee. Some animals are silver-white in colour.
    • Four breeds of cattle — Binjharpuri, Motu, Ghumusari and Khariar — and two breeds of buffalo — Chilika and Kalahandi — and one breed of sheep, Kendrapada, have already received NBAGR recognition.

    Their economic significance

    • The small, sturdy buffaloes are used for ploughing in their native habitat of the Koraput, Malkangiri and Nabarangpur districts.
    • There are around 1,00,000 buffaloes of this breed in the native tract mostly contributing to the family nutrition of households and assisting in all the agricultural operations in the undulated hilly terrain for generations.
    • The average milk yield of these buffaloes is 2 to 2.5 litres in single milking with more than 8% fat. However, a few of those yield up to 4 litres.
    • After going through the findings, the NBAGR made an assessment and recognised it as an indigenous and unique buffalo.

    Now pls do not ignore this PYQ:

    Q.What is/are unique about ‘Kharai Camel’, a breed found in India?

    1. It is capable of swimming up to three kilometres in seawater.
    2. It survives by grazing on mangroves.
    3. It lives in the wild and cannot be domesticated.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    Post your answers here.

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  • Reform in India’s reservation system

    | Governance | Mains Paper 2: Government Scheme/Policies

    Context

    While it is undeniable that affirmative action has been one of the protagonists of Indian democracy’s success stories, these have also accumulated a fair share of problems and call for immediate policy attention and debate.

    Problems with the current policy of reservation

    • With the reservation of seats in political and public institutions of the state, it was thought that the hitherto marginalised groups would be able to find place in the power sharing and decision-making processes.
    • This strategy of removal of disabilities has not translated into an equalisation of life chances for many groups in our heterogeneous society.

    What are the problems?

    1) Problem of reification

    • The Justice G. Rohini Commission’s report on the sub-categorisation of OBCs based on the last five years’ data on  central government jobs and OBC admissions to central higher education institutions highlights this problem.
    • The commission concluded that 97% of central OBC quota benefits go to just under 25% of its castes.
    • As many as 983 OBC communities — 37% of the total — have zero representation in both central government jobs and admissions to central universities.
    • Also, the report states that just 10% of the OBC communities have accrued 24.95% of jobs and admissions.
    • Clearly, the assumption that the disadvantages of every sub-group within each category are the same is severely misplaced.
    • Consequently, asymmetrical distribution of reservation has severely deterred political projects of unified subaltern solidarity.

    2) Insufficiency of data

    • There is a dire need of accurate data pertaining to the socio-economic condition of different social groups.
    • Though caste-based reservations have been pivotal in animating upward social mobility we hardly have sufficient data about the actual reach and access of this policy measure.
    • We do not know what liberalisation has done to castes which remained tied to more traditional sources of income and were incapable of realising the new opportunities provided by the opening of the economy.
    • What is urgently required is a mechanism that can address this lacuna and make the system more accountable and sensitive to intra-group demands.

    Way forward

    • Since every further categorisation will only lead to reification and fragmentation in the long run, two things are required.
    • Evidence based policy option: We need to develop a wide variety of context-sensitive, evidence-based policy options that can be tailored to meet specific requirements of specific groups.
    • Institution: We need an institution alike the Equal Opportunities Commission of the United States or the United Kingdom which can undertake two important but interrelated things:
    • 1) Make a deprivation index correlating data from the socio-economic-based census of different communities.
    • 2) Undertake an audit on performance of employers and educational institutions on non-discrimination and equal opportunity and issue codes of good practice in different sectors.
    • This will make the formulation of policy and its monitoring simpler at an institutional level.
    • Similar suggestions were made a decade ago in the recommendations that the expert committee for an Equal Opportunities Commission (2008) made in its comprehensive report that it submitted to the Ministry of Minority Affairs.

    Conclusion

    As evident, a socio-economic caste-based census becomes a necessary precondition to initiate any meaningful reform in the affirmative action regime in India.

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  • Disinvestment in India

    National monetisation pipeline has narrow outlook

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Context

    Recently, FM announced the National Monetisation Pipeline (NMP) to lease a slew of “brownfield” (already developed) but underutilised public sector assets to the private sector with the objective of raising Rs 6 lakh crore.

    About the NMP

    • The assets identified for lease include roads, railways, ports, power, mining, aviation, oil and gas pipelines, warehouses, hotels and even two sports stadia.
    • The idea is to create “structured public-private partnerships” to unlock value from public sector assets and to recycle the revenues so raised into new infrastructure.
    • But the move raises several concerns.

    3 concerns with NMP

    1) Government is preferring financial value of assets over public welfare

    • The design of the NMP is out of sync with existential challenges — global warming, pandemics, geopolitical chaos and fundamentalism.
    •  The assets are valued on the basis of conventional financial metrics (enterprise value, book value, net present value, the costs of comparable assets).
    • The model seemingly absolves the government from the responsibility to unlock the intrinsic “social” (to include “smart” and “clean” ) value of these assets.

    2) It will lead to concentration of capital

    • NMP is designed to attract deep-pocketed financial institutions (PE firms) and industrial conglomerates.
    • This is because the valuations are so high that few other entities will have the resources or the risk carrying capacity to respond.
    • The result will be a deepening of the concentration of capital and existing inequalities.
    • There will be economic and social implications.

    3) Addressing the system problem

    • The government should have asked itself a fundamental question before placing a substantial share of public assets on the block:
    • Why have these assets been so poorly managed?
    • Was it because of bad leadership, inadequate talent within the PSEs, and/or systemic and structural shortcomings?
    • If the reason for low productivity was poor leadership or lack of talent, the transfer of these assets to a different, private sector-led organisational and investment structure would make sense.
    • Structural issues: But if the reason had to do with structural impediments, then such a change may not be warranted, at least not in the first instance.
    •  The example, gas pipelines GAIL are hugely underutilized, but this is not because of the “inefficiency” of GAIL, the PSE operator.
    • It is because of structural factors such as the shortage of domestic gas supplies; the regressive taxation system; the relatively uncompetitive price of gas and the perennial tussle between the Centre and state governments over land access.
    • A similar point can be made about most of the other assets identified for monetisation.
    • Their low productivity is because their PSE operators have faced a combination of systemic hurdles related to weak dispute resolution mechanisms; regulatory miasma; lack of transparency in governance; pricing distortions and intrusive bureaucratic intervention.
    • Way forward: So, until and unless these systemic problems are addressed, the private sector will find it difficult to harness the full value of these assets and the transfer of operatorship to them will offer at best a partial palliative.

    Conclusion

    Private-public investment structures make sense, but they must be modeled to also generate social value. In today’s world, there are no shortcuts to sustainable development.

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  • Hunger and Nutrition Issues – GHI, GNI, etc.

    The nutrition-hygiene link

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Context

    A recent UNICEF report stated that nearly 12 lakh children could die in low-income countries in the next six months due to a decrease in routine health services and an increase in wasting. Nearly three lakh such children would be from India.

    Problem of nutrition in India and factors responsible for it

    • The National Family Health Survey (NFHS 5) indicates that since the onset of the pandemic, acute undernourishment in children below the age of five has worsened.
    • According to the latest data, 37.9 per cent of children under five are stunted, and 20.8 per cent are wasted — a form of malnutrition in which children are too thin for their height.
    • Comparison with other countries: This is much higher than in other developing countries where, on average, 25 per cent of children suffer from stunting and 8.9 per cent are wasted.
    • Factors: Inadequate dietary intake is the most direct cause of undernutrition.
    • Several other factors also affect nutritional outcomes, such as contaminated drinking water, poor sanitation, and unhygienic living conditions.
    • According to the World Health Organisation, 50 per cent of all mal- and under-nutrition can be traced to diarrhoea and intestinal worm infections.
    • Nutrition and water, sanitation, and hygiene (WASH) are intricately linked, and changes in one tend, directly or indirectly, to affect the other.
    • Poor hygiene and sanitation in developing countries lead to a sub-clinical condition called “environmental enteropathy” in children.
    • Environmental enteropathy is a disorder of the intestine which prevents the proper absorption of nutrients, rendering them effectively useless.
    • Childhood diarrhoea is a major public health problem in low- and middle-income countries, leading to high mortality in children under five.
    • According to NFHS 4, approximately 9 percent of children under five years of age in India experience diarrhoeal disease.

    Way forward

    • Investment in WASH: The link between WASH and nutrition suggests that greater attention to, and investments in, WASH are a sure-shot way of bolstering the country’s nutritional status.
    • Addressing nutrition sanitation problems together: Both WASH and nutrition must be addressed together through a lens of holistic, sustainable community engagement to enable long-term impact.
    • One of the first instances of the link between WASH and nutrition appeared in the Convention on the Rights of the Child in 1989, which urges states to ensure “adequate nutritious foods and clean drinking water” to combat disease and malnutrition.
    • Safe drinking water, proper sanitation, and hygiene can significantly reduce diarrhoeal and nutritional deaths.
    • Multistructural approach: What we require is a coordinated, multisectoral approach among the health, water, sanitation, and hygiene bodies, not to mention strong community engagement.
    • WHO has estimated that access to proper water, hygiene, and sanitation can prevent the deaths of at least 8,60,000 children a year caused by undernutrition.

    Conclusion

    At the end of the day, all sides are working towards a common goal: A safe and healthy population and the hope that the 75th year of Independence becomes a watershed moment in India’s journey.

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  • BRICS Summits

    BRICS

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Context

    The 13th BRICS summit is set to be held on September 9 in digital format under India’s chairmanship

    Challenges and opportunities for BRICS

    • The importance of BRICS is self-evident: it represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.
    • Weathering geopolitical challenges: Member states have been carrying BRICS forward in an era of complex geopolitics.
    • They have bravely continued holding dozens of meetings and summits, even as India-China relations were strained after Galwan valley incident.
    • Internal challenges: There is also the reality of the strained relations of China and Russia with the West, and of serious internal challenges preoccupying both Brazil and South Africa.
    • On the other hand, a potential bond emerged due to the battle against COVID-19.
    • Challenges to trade ties: BRICS has been busy deepening trade and investment ties among its member states.
    • The difficulty stems from China’s centrality and dominance of intra-BRICS trade flows.
    • How to create a better internal balance remains a challenge, reinforced by the urgent need for diversification and strengthening of regional value chains.
    • China’s aggression: Beijing’s aggressive policy, especially against India, puts BRICS solidarity under exceptional strain.
    • Lack of support: BRICS countries have not done enough to assist the Global South to win their optimal support for their agenda.

    Does BRICS truly matter?

    • The grouping has gone through a reasonably productive journey.
    • Acts as a bridge: It strove to serve as a bridge between the Global North and Global South.
    • It developed a common perspective on a wide range of global and regional issues.
    • It established the New Development Bank; created a financial stability net in the form of Contingency Reserve Arrangement; and is on the verge of setting up a Vaccine Research and Development Virtual Center.

    Immediate goals: 4 priorities

    • As the current chair, India has outlined four priorities.
    • Reforms of multilateral institutions: The first is to pursue reform of multilateral institutions ranging from the United Nations, World Bank and the International Monetary Fund to the World Trade Organization and now even the World Health Organization.
    • Reform needs global consensus which is hardly feasible in the current climate of strategic contestation between the U.S. and China and the devastation caused by COVID-19.
    • Nevertheless, Indian officials rightly remind us that BRICS emerged from the desire to challenge dominance (by the U.S.) in the early years of the century, and it remains committed to the goal of counter-dominance (by China) now.
    • Combating terrorism: Tragic developments concerning Afghanistan have helped to focus attention sharply on this overarching theme, stressing the need to bridge the gap between rhetoric and action.
    • China, for example, feels little hesitation in supporting clear-cut denunciations of terrorist groups and supports Pakistan, which is host to several international terrorist groups.
    • BRICS is attempting to pragmatically shape its counter-terrorism strategy by crafting the BRICS Counter Terrorism Action Plan.
    • Counter Terrorism Action Plan contains specific measures to fight radicalisation, terrorist financing and misuse of the Internet by terrorist groups.
    • Technology and digital solution: Promoting technological and digital solutions for the Sustainable Development Goals and expanding people-to-people cooperation are the other two BRICS priorities.

    Conclusion

    It is necessary for leaders, officials and academics of this grouping to undertake serious soul-searching and find a way out of the present predicament.

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