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  • Capital Markets: Challenges and Developments

    Mutual Funds Risk-o-Meter

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    The capital markets regulator Securities and Exchange Board of India (SEBI) has made it mandatory for mutual funds to assign a risk level to schemes, based on certain parameters.

    Try this PYQ:

    Q.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

    (a) Certificate of Deposit

    (b) Commercial Paper

    (c) Promissory Note

    (d) Participatory Note

    What are Mutual Funds?

    • A Mutual Fund is a trust that collects money from a number of investors who share a common investment objective.
    • Then, it invests the money in equities, bonds, money market instruments and/or other securities.
    • Each investor owns units, which represent a portion of the holdings of the fund.
    • The income/gains generated from this collective investment are distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or NAV.
    • It is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
    • All funds carry some level of risk. With mutual funds, one may lose some or all of the money invested because the securities held by a fund can go down in value.

    What is the risk-o-meter?

    • All mutual funds shall beginning January 1, assign a risk level to their schemes at the time of launch, based on the scheme’s characteristics.
    • SEBI’s decision on the “risk-o-meter”, characterizes the risk level of the schemes on a six-stage scale from “Low” to “Very High”.
    • The risk-o-meter must be evaluated on a monthly basis.

    A compulsory mandate

    • Fund houses are required to disclose the risk-o-meter risk level along with the portfolio disclosure for all their schemes on their own websites as well as the website of the Association of Mutual Funds in India (AMFI) within 10 days of the close of each month.
    • Any change in the risk-o-meter reading with regard to a scheme shall be communicated to the unit-holders of that scheme.

    How will the level of risk be assigned?

    • Which one of the six risk levels — low, low to moderate, moderate, moderately high, high, and very high — would apply, would depend upon the risk value (less than 1 for low risk to more than 5 for very high risk) calculated for the scheme.
    • So if the risk value of a scheme is less than 1, its risk level would be low, and if it is more than 5, the risk will be very high on the risk-o-meter.

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  • Indian Air Force Updates

    [pib] IAF to induct LCA Tejas

    PIB | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    The Union Cabinet has approved procurement of 73 LCA Tejas Mk-1A fighter aircraft and 10 LCA Tejas Mk-1 Trainer aircraft for Indian Air Force.

    Try this PYQ from CSP 2018:

    Q.What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?

    (a) An Israeli radar system

    (b) India’s indigenous anti-missile programme

    (c) An American anti-missile system

    (d) A defence collaboration between Japan and South Korea

    LCA Tejas

    • The Tejas is an Indian single-engine, fourth-generation, multirole light fighter aircraft.
    • It is designed by the Aeronautical Development Agency (ADA) in collaboration with the Aircraft Research and Design Centre (ARDC) of Hindustan Aeronautics Limited (HAL).
    • It came from the Light Combat Aircraft (LCA) programme, which began in the 1980s to replace India’s ageing MiG-21 fighters.
    • The indigenous content of the Tejas was 59.7% by value and 75.5% by a number of lines replaceable units.

    Which are the procured variants?

    • Light Combat Aircraft Mk-1A variant is an indigenously designed, developed and manufactured state-of-the-art modern 4+ generation fighter aircraft.
    • It is the first “Buy (Indian-Indigenously Designed, Developed and Manufactured)” category procurement of combat aircraft.

    Significance

    • Tejas enable IAF to handle repairs or servicing at their base depot so that the turnaround time would get reduced for mission-critical systems.
    • This would enable IAF to sustain the fleet more efficiently and effectively due to the availability of repair infrastructure at respective bases.
    • It will give a further push to Atmanirbhar Bharat initiative and boost indigenization of defence production and the defence industry in the country.

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  • Foreign Policy Watch: India – EU

    Europe’s China gambit will fall short of its stated goals

    | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    Thought the article is not directly related to India, the conclusion of the investment treaty between the EU and China serves as the prelude to the post-pandemic world order which surely matters for India. The article explains the implications of the agreement.

    Investment agreement between EU and China

    • Recently, the EU and China announced the completion of a Comprehensive Agreement on Investment (CAI) between the two.
    • The CAI gives European firms enhanced access to the Chinese market, removes (or relaxes) Chinese government requirements on joint ventures and technology transfer in some sectors.
    • The European Commission has claimed that the CAI allows the EU to maintain its “policy space”, especially in “sensitive” sectors such as energy, infrastructure, agriculture, and public services
    • The deal also promises equal treatment with state enterprises and greater regulatory transparency in China.
    • Moreover, the Chinese government has undertaken some obligations on environmental sustainability and labour rights, notably by agreeing to make “continued and sustained efforts” to ratify the Forced Labour Convention.

    Reaction to the agreement

    • The US reaction ranged from disappointment to outright hostility.
    • The incoming Biden administration would have preferred a unified front against China, by striking an economic deal with Europe first.
    • For others, it was the EU’s apparent misjudgement on China’s human rights promises.

    Post-pandemic world order and role of democracies

    • The Europe-China agreement underscores a fundamental question of the post-pandemic world order: Can democracies remain true to their values while engaging in trade and investment with China?
    • To answer that, we must recognize two facts.
    • First, it is impossible to decouple the economies of the West from the Chinese economy without causing an economic catastrophe.
    • Second, there is little that Western countries can do to reshape China’s state-driven economic model or repressive human- and labour-rights regime.

    What should be the approach in dealing with China

    • The West should pursue more limited, more attainable, and ultimately more defensible goals.
    • Two goals are paramount.
    • First, trade and investment rules should be such that Western firms and consumers are not directly complicit in human-rights abuses in China.
    • Second, such rules should safeguard democratic countries against Chinese practices that could undermine their domestic institutional arrangements on labour, environment, technology, and national security.

    Lack of clarity over arbitration mechanism

    • The agreement contains an arbitration scheme that enables the parties to bring violation complaints against each other.
    • Arbitration scheme could serve as a means for the Chinese government to challenge specific entry barriers against Chinese firms.
    • How much this mechanism will be sensitive towards the issues such as treatment given to workers or the environmental protection is not clear.
    • Similarly, how much deference will panels show to exceptions to market access based on “national security” considerations is not clear.

    Conclusion

    We should not judge the CAI by whether it enables Europe to export its system and values. We should judge it by whether it allows Europe to remain true to its own.

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  • Important Judgements In News

    Issues with suspension of the Farm laws

    op-ed snap | Polity | Mains Paper 2: Executive & Judiciary,Seperation Of Power

    The article deals with the recent Supreme Court order in which it suspended the implementation of the Farm Acts. This order gives rise to several issues. The article deals with these issues.

    What is the issue

    • The Supreme Court has suspended the implementation of the farm laws.
    • The court created a committee to ascertain the various grievances of the farmers.
    • But the Supreme Court has not clarified the legal basis of this suspension.

    What are the issues with the suspension?

    • The court’s action, at first sight, is a violation of separation of powers.
    • It also gives the misleading impression that a distributive conflict can be resolved by technical or judicial means.
    • It is also not a court’s job to mediate a political dispute.
    • Its job is to determine unconstitutionality or illegality.
    • Even in suspending laws there needs to be some prima facie case that these lapses might have taken place.
    • It has set a new precedent for putting on hold laws passed by Parliament without substantive hearings on the content of the laws.
    • Also in appointing the committee, the court has violated the first rule of mediation: The mediators must be acceptable to all parties and appointed in consultation with them.

    Conclusion

    The Supreme Court order has given the government a setback while not addressing the concerns of the protesting farmers. The court needs to consider these facts and mend its implications.

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  • Foreign Policy Watch: India-SAARC Nations

    Reclaiming SAARC

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

    The article examines the issues are making it difficult to function and suggests its revival.

    Dysfunctional SAARC and its implications

    • The year 2020 marked the sixth year since the leaders of the eight nations that make up SAARC were able to meet.
    • India-Pakistan issues have impacted other meetings of SAARC as well.
    • Inactive SAARC is making it easier for member countries, as well as international agencies, to deal with South Asia as a fragmented group.
    • India’s refusal to allow Pakistan to host the SAARC summit is akin to giving Pakistan a ‘veto’ over the entire SAARC process.
    • The events of 2020, particularly the novel coronavirus pandemic and China’s aggressions at the Line of Actual Control (LAC) shone a new spotlight on this mechanism.
    • This should make the government review its position and reverse that trend.

    Reasons India should review its position on SAARC

    1) India attend other forums with Pakistan

    • India continued to attend Shanghai Cooperation Organisation (SCO) meetings along with their Pakistani counterparts.
    • While China’s incursions in Ladakh constituted the larger concern in the year, India did not decline to attend meetings with the Chinese leadership at the SCO, the Russia-India-China trilateral, the G-20 and others.
    • No concerns over territorial claims stopped the government from engaging with Nepal either.

    2) Pandemic caused challenges

    • Reviving SAARC is crucial to countering the common challenges brought about by the pandemic.
    • Studies have shown that South Asia’s experience of the pandemic has been unique from other regions of the world.
    • This experience needs to be studied further in a comprehensive manner in order to counter future pandemics.
    • Such an approach is also necessary for the distribution and further trials needed for vaccines, as well as developing cold storage chains for the vast market that South Asia represents.

    3) Impact of the pandemic on economies of South Asia

    • Apart from the overall GDP slowdown, global job cuts which will lead to an estimated 22% fall in revenue for migrant labour and expatriates from South Asian countries.
    • World Bank have suggested that South Asian countries work as a collective to set standards for labour from the region, and also to promoting a more intra-regional, transnational approach towards tourism, citing successful examples including the ‘East Africa Single Joint Visa’ system.
    • In the longer term, there will be a shift in priorities towards health security, food security, and job security, that will also benefit from an “all-of” South Asia approach.
    • While it will be impossible for countries to cut themselves off from the global market entirely, regional initiatives will become the “Goldilocks option”.

    4) Dealing with the China challenge

    • In dealing with the challenge from China too, both at India’s borders and in its neighbourhood, a unified South Asian platform remains India’s most potent countermeasure.
    • At the border, tensions with Pakistan and Nepal amplify the threat perception from China, while other SAARC members (minus Bhutan), all of whom are Belt and Road Initiative (BRI) partners of China will be hard placed to help individually.
    • Significantly, from 2005-14, China actually wanted to join SAARC.
    • Despite the rebuff, China has continued to push its way into South Asia.

    Conclusion

    Seen through Beijing’s prism, India’s SAARC neighbourhood may be a means to contain India, with the People’s Liberation Army strategies against India over the LAC at present, or in conjunction with Pakistan or Nepal at other disputed fronts in the future. New Delhi must find its own prism with which to view its South Asian neighbourhood as it should be: a unit that has a common future, and as a force-multiplier for India’s ambitions on the global stage.

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  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Paternity Leave in India

    | Indian Society | Mains Paper 1: Salient features of Indian Society

    Indian cricket captain has opted for paternity leave amidst an ongoing tournament. This has led to his criticism as well as praise for prioritizing family.

    Q.Paternity leave is one of the solutions which can help in ending the “motherhood penalty”.  Examine with context to working mothers.

    What is Paternity leave?

    • Paternity leave is a short period of leave for the father to take immediately following childbirth to help care for the child and assist the mother.
    • Parental leave is a longer period of leave granted to look after the infant child, usually after the expiration of paternity/maternity leave.

    Legal Aspects of Paternity Leave in India

    There is no specific or explicit law for paternity leave in India.

    • Maternity leave is governed by the Maternity Benefit Act, 1961 which was last amended in 2017 to enhance the period of maternity leave to 26 weeks from the previous 12 weeks.
    • The Central Civil Service (Leave Rules), 1972 allows for 15 days of paid paternity leave before childbirth or up to 6 months from the date of the delivery of the child.
    • An attempt was made to introduce a pan India legislation on paternity leave in 2017 as a private member’s bill in Lok Sabha, but it was not successful.
    • The Paternity Benefit Bill, 2017, provided for a paid leave of fifteen days which could be availed up to three months from the date when the child was born.
    • It also included an adopted child below the age of three months and applied to men in the organised i.e. private as well as unorganised sectors.

    Popular trends

    • The longest leave –– six months –– is provided by Ikea, which extends rules from home country Sweden to India.
    • Among Indian companies, Zomato made news in 2019 when it decided to give 26-week paternity leave to its employees.

    Precursors in India

    • The Central Government recently announced that male government employees who are ‘single parents’ which included widowers, divorcees, or unmarried men raising children single-handedly would now be entitled to “child care leave” (CCL).
    • Here, they would receive 100% of the leave salary for the first 365 days of leave and 80% of leave salary for the next 365 days.
    • This leave was previously only available to women employees.

    Why paternity leave matters?

    • Most working new mothers (for those who can make that choice) opt for maternity leave either just before the birth or after childbirth.
    • It paves the way for at least their temporary, and sometimes their permanent exit from the workplace.
    • On the other hand, not many fathers experience much difference in their employment and workplace situation after their child is born, which may either be voluntary by not taking time off or involuntary.
    • This structural difference is one of the key components that influence gender dynamics both in the workplace and at home.

    The gender dynamics behind

    • Lack of paternity leave not only robs new fathers of the crucial chance to bond with their newborn child but also reinforces women’s role as the primary caregiver and underpins the belief that child care is predominantly the mother’s job.
    • Paternity leave is a way to directly address the gender dynamic that prevails both at the workplace and at home.
    • The undue burden of childcare that is placed on women at home is bound to and does, spill over into their workplace and professional lives.
    • The natural effect of it is that it puts hurdles across women’s careers and might slow their growth prospects while some women might choose to quit altogether.

    Way forward

    • By only having maternity leaves and not giving due consideration to paternity leave, the stereotype that women belong at home, taking care of children is reinforced.
    • By no means is the introduction of paternity leave a panacea for gendered workplaces, but it will be a significant step in combating and overcoming stereotype.
    • For India, a decent way to begin would be to have a national policy on paternity leave that would include all fathers and would apply irrespective of whether they worked in the organised or unorganised sectors.
    • Shifting from a purely maternity oriented care framework to a parental care framework which would involve both parents would be beneficial for all stakeholders and is what we need today.

    Conclusion

    • A major benefit that accrues from paternity leave is that it eases pressure and stigma from women at the workplace, as they no longer are the only ones who are taking leave for child care purposes.
    • Paternity leave is also one of the solutions which can help in ending the “motherhood penalty”.
    • The motherhood penalty is a term that describes the disadvantages that women with children face as compared to women who don’t in workplaces.
    • Fathers need to be active co-parents and not just helpers to their female partners/wives.
    • And for ones with feminist’s perspectives, they should not look paternity leave as a sole vacation for men.

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  • Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

    Who are the persecuted Hazara Community of Pakistan?

    IOCR | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Pakistan’s Hazaras finally ended a protest and agreed to bury the bodies of 11 coal miners from the community killed by the IS.

    Genocide and Pakistan are the two inseparable metaphors. Pakistan’s treatment of its minorities is the least highlighted global violation of Human Rights. Hindus, Sikhs and Christians are the most persecuted communities.

    Who are the Hazaras?

    • Around 1773, the mountainous region of Hazarajat in modern-day central Afghanistan was annexed and made a part of the territories of the Afghan Empire under Pashtun ruler Ahmad Shah Durrani.
    • The Sunni Muslim majority under the Pashtun ruler resulted in further marginalization of the Shiite Hazara community, to the extent that in the 18th and 19th century.
    • They were forced to leave fertile lowlands in central Afghanistan and make the dry, arid mountainous landscape their new home.

    Their persecution

    • Persecution of the Shiite Hazaras is nothing new in Pakistan or neighbouring Afghanistan.
    • They have been frequently targeted by Taliban and IS militants and other militant groups in both countries.

    Causes of persecution: Ethnicity and Religion

    • Their unique identity, ethnicity and religion always made the Hazaras stand out among the other communities.
    • Hazaras speak Hazaragi, which is close to Dari Persian, the official language of modern-day Afghanistan.
    • The community also shares physical similarities with the Mongols and their speech, specific terms and phrases, reflect strong Central Asian Turkic influences.
    • This sets them apart from their neighbours in Pakistan and other communities within Afghanistan.

    An attempted ethnic cleansing

    • In the 19th century, the Hazara community constituted approximately 67 per cent of Afghanistan’s total population.
    • Since then, primarily due to violence, oppression and targeted massacres, that number has come down to a little as 10 to 20 per cent of the population now.
    • The attacks reached a crescendo in 2013 when three separate bombings killed more than 200 people in Hazara neighbourhoods of Quetta.
    • In the aftermath of this incident, the Shia community in Pakistan had erupted in anger over the Pakistani government’s lack of protection of its minorities.

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  • Crop Insurance – PMFBY, etc.

    PM Fasal Bima Yojana (PMFBY) completes 5 Years of operations

    PIBSchemes | Agriculture | Mains Paper 3: Major Crops & Cropping Patterns

    The Pradhan Mantri Fasal Bima Yojana (PMFBY) has completed 5 Years of successful operations.

    It has become vital these days to remember and recognize every detail of government schemes.

    What is PMFBY?

    • 5 years ago, on 13th January 2016, the GoI took a historic step towards strengthening risk coverage of crops for farmers of India and approved the flagship crop insurance scheme – the PMFBY.
    • The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers.
    • Premium cost over and above the farmer share is equally subsidized by States and GoI.
    • However, GoI shares 90% of the premium subsidy for the North Eastern States to promote the uptake in the region.
    • The average sum insured per hectare has increased from ₹15,100 during the pre-PMFBY Schemes to ₹40,700 under PMFBY.

    Coverage of Risks and Exclusions:

    Following stages of the crop and risks leading to crop loss are covered under the scheme.

    • Prevented Sowing/ Planting Risk: The insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
    • Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
    • Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of a cyclone and cyclonic rains and unseasonal rains.
    • Localized Calamities: Loss/ damage resulting from the occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

    Try this question from CSP 2020:

    Q.Under the Kisan Credit Card Scheme, short-term credit support is given to farmers for which of the following purposes? (CSP 2020)

    1. Working capital for maintenance of farm assets
    2. Purchase of combine harvesters, tractors and mini trucks
    3. Consumption requirements of farm households
    4. Construction of family house and setting up of village cold storage facility
    5. Construction of family house and setting up of village cold storage facility

    Select the correct answer using the code given below:

    (a) 1,2 and 5 only

    (b) 1,3 and 4 only

    (c) 2,3,4 and 5 only

    (d) 1, 2, 3 and 4

    Progress till date

    • The Scheme covers over 5.5 crore farmer applications year on year.
    • Till date, claims worth Rs 90,000 crores have already been paid out under the Scheme.
    • Aadhar seeding has helped in speedy claim settlement directly into the farmer accounts.
    • Even during COVID lockdown period, nearly 70 lakh farmers benefitted and claims worth Rs. 8741.30 crores were transferred to the beneficiaries.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    [pib] Khadi Prakritik Paint – India’s first cow dung paint

    PIB | Economics | Mains Paper 3:

    Union Minister for MSMEs has launched an innovative new paint called Khadi Prakritik Paint – India’s first cow dung paint

    It is very unlikely that an MCQ will be asked in Prelims. However one must know this from mains perspective.

    Khadi Prakritik Paint

    • It is developed by Khadi and Village Industries Commission at his residence.
    • The eco-friendly, non-toxic paint, called “Khadi Prakritik Paint” is a first-of-its-kind product, with anti-fungal, anti-bacterial properties.
    • Khadi Prakritik Paint is available in two forms – distemper paint and plastic emulsion paint.
    • The project was conceptualized by Chairman KVIC in March 2020 and later developed by Kumarappa National Handmade Paper Institute, Jaipur (a KVIC unit).
    • The paint is priced at only Rs. 120 per litre for the distemper, and Rs.225 per litre for the emulsion, almost half the price charged by big paint companies.

    A no lesser brand

    • Khadi Prakritik Emulsion paint meets BIS 15489:2013 standards; whereas Khadi Prakritik Distemper paint meets BIS 428:2013 standards.
    • The paint has successfully passed various test parameters such as application of paint, thinning properties, drying time and finish, among others.
    • It dries in less than 4 hours and has a smooth and uniform finish.

    Why makes it competent?

    • Based on cow dung as its main ingredient, the paint is cost-effective and odourless and has been certified by the Bureau of Indian Standards.
    • The paint is free from heavy metals like lead, mercury, chromium, arsenic, cadmium and others.
    • It will be a boost to local manufacturing and will create sustainable local employment through technology transfer.
    • This technology will increase the consumption of cow dung as a raw material for eco-friendly products and will generate additional revenue to farmers and gaushalas.
    • Utilization of cow dung will also clean the environment and prevent clogging of drains.

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  • Reframing India’s foreign policy priorities

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

    The article highlights the challenges facing the India’s foreign policy and factors responsible for these challenging circumstances.

    Stronger China in 2021 and Impact on India

    • China is about the only major country which had a positive rate of growth at the end of 2020, and its economy is poised to grow even faster in 2021.
    • Europe has recently revived its China links by ‘concluding in principle the negotiations for an EU-China Comprehensive Agreement on Investment’.
    •  The China-EU Investment Treaty which is an indication that Europe values its economy more than its politics.
    • In one swift move, Europe has thus shattered all hope that China would remain ostracised in 2021.
    • India which has greatly curtailed its relations with China in the wake of Chinese aggression in Eastern Ladakh, will find itself in difficult position.

    Major changes in West Asia and implications for India

    • In West Asia, the Abraham Accords have sharpened the division between the Saudi Bloc and Iran-Turkey.
    • Despite the hype surrounding the Abraham Accords the risk of a confrontation between Iran and Israel remains high.
    • This does pose problems for India, since both have relations with it.
    • Meanwhile, China demonstrates a willingness to play a much larger role in the region, including contemplating a 25-year strategic cooperation agreement with Iran.

    Foreing policy challenges for India in 2021

    • No breakthrough in Sino-Indian relations has, or is likely to occur.
    • India-Iran relations today lack warmth.
    • In Afghanistan, India has been marginalised as far as the peace process is concerned.
    • While India’s charges against Pakistan of sponsoring terror have had some impact globally, it has further aggravated tensions between the two neighbours and pushed Pakistan closer to China.
    • Hostility between India and Nepal appears to have reduced lately, relations continue to be strained.
    • Through a series of diplomatic visits, India has made efforts to improve relations with some of its neighbours such as Bangladesh, Myanmar and Sri Lanka, but as of now worthwhile results are not evident.
    • One key takeaway is that as India-China relations deteriorate, India’s neighbours are not averse to taking sides, increasing India’s isolation.
    • India will serve as the president of the powerful UN Security Council for the month of August, 2021, but if it is to make a real impact, it must be seen to possess substantial weight to shape policies, more so in its traditional areas of influence.

    Factors responsible for India’s foreing policy issues

    • There is a perception that India’s closeness to the U.S. has resulted in the weakening of its links with traditional friends such as Russia and Iran.
    • Perhaps the most relevant explanation could be the shifting balance of power in the region in which India is situated, notably the rise of China.
    • The enlarging conflict between the two biggest powers in Asia is compelling many nations to pick sides in the conflict.
    • Othe important factor is that India’s foreign policy suffers from an ideational vacuum.
    • India remains isolated from two important supranational bodies of which it used to be a founding member, viz., the Non-Aligned Movement (NAM) and the South Asian Association for Regional Cooperation (SAARC).

    Conclusion

    As part of the ideational restructuring of India’s foreign policy, what is urgently required, apart from competent statecraft, is the adoption of prudent policies, pursuit of realistically achievable objectives, and, above all, a demonstration of continuity of policy, irrespective of changes in the nature of the Administration.

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