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  • Needed, a more unified Asian voice for Afghanistan

    Context

    As the United States and the North Atlantic Treaty Organization (NATO) end their presence in Afghanistan and set off a churn in the neighbourhood, Central Asia is emerging as a key player.

    Challenges India faces in playing a leading role in Afghanistan

    • Events of the past few years, and the decisions of Russia, the US and China have kept India out of a leading role in Afghanistan.
    • India’s original hesitation in opening talks with the Taliban has cut India out of the current reconciliation process.
    • India’s efforts to build on trade with Afghanistan, shore up development projects and increase educational and training opportunities for Afghan youth have been appreciated, but these cannot grow bigger due to a number of factors.
    • The end of any formal dialogue between India and Pakistan since 2016 and trade since 2019, have resulted in Pakistan blocking India’s over-land access to Afghanistan.
    • India’s alternative route through Chabahar, though operational, cannot be viable or cost-effective also long as U.S. sanctions on Iran are in place.
    • India’s boycott of the Chinese Belt and Road Initiative (BRI) in 2017, and now tensions at the Line of Actual Control make another route to Afghanistan off-limits.
    • The U.S. has announced a formation of a “Quad” on regional connectivity — U.S.-Uzbekistan-Afghanistan-Pakistan that does not include India.

    Why Central Asian countries are interested in Afghanistan?

    • The hope is that the Central Asian window, with the “Stans” (five Central Asian republics of Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan and Uzbekistan) will open new possibilities for India.
    • Calculations of Central Asian neighbours are three-fold:
    • The first is that prosperity for these land-locked countries can only flow from access through Afghanistan to the closest ocean, i.e. the Indian Ocean.
    • Second, that all transit through Afghanistan depends on guarantees of safe passage from the Taliban, backed by the group’s mentors in Pakistan.
    • Third, each of the “Stans” are now a part of China’s BRI, and tying their connectivity initiatives with Beijing’s will bring the double promise of investment and some modicum of control over Pakistan.

    Way forward for India

    • Given the odds, India’s room for manoeuvre with these five countries on Afghanistan appears limited but not without hope.
    • Work on common concerns: To begin with, India and the Central Asian States share common concerns about an Afghanistan overrun by the Taliban.
    • Their common concerns are the worries of battles at their borders, safe havens for jihadist terror groups inside Afghanistan and the spill-over of radicalism into their own countries.
    • Support financially: It is necessary for India to work with them, and other neighbours to shore up finances for the government in Kabul, particularly to ensure that the government structure does not collapse.
    • Cooperation on anti-terrorism: As part of the SCO’s Regional Anti-Terrorist Structure (RATS), India must also step up its engagement with the Central Asian countries on fighting terror.
    • India can support the Afghan National Defense and Security Forces (ANDSF) in terms of airpower.
    • Better ties between neighbours: South Asia must learn from Central Asia’s recent example in knitting together this region more tightly, a task that can only be completed with better ties between India and Pakistan.
    • India’s furtive discussions with the Taliban leadership in Doha make little sense unless a less tactical and more strategic engagement with Pakistan is also envisaged.

    Conclusion

    Countries of Central Asia and South Asia need to find a more unified voice, as they have in recent weeks. Afghanistan’s future will affect both regions much more than it will the distant global powers that currently dominate the debate.

  • Unlocking recovery

    Context

    Many developed countries are poised for strong growth. This will compel their respective central banks to begin normalizing the extremely loose monetary policies. This will require a reorientation of India’s stimulus strategy.

    Global growth momentum

    • On the global front, the growth momentum has been strong, particularly in the US and China, although recent data suggest this has peaked or is even stalling.
    • Post the perceived hawkishness of the last US Federal Reserve policy meeting, the traded interest rate of the benchmark US 10-year treasury bond fell to below 1.3 percent.
    • The falling rate reflects disquiet about the durability of the recovery once the fiscal stimulus starts waning.
    • China recently announced a 0.5 percent cut in the required reserves ratio for banks.
    • Europe’s recovery had begun to inch up, but members of the European Central Bank have begun to push back on market expectations of early tapering.
    • However, some smaller global central banks have started normalizing their respective Quantitative Easing programs.

    Growth momentum in India

    • The encouraging aspect of the recovery is the resilience of many mid-and large-turnover companies in the face of the debilitating public health crisis
    • In India, there are signs that the recovery momentum began to strengthen from mid-June, and of demand accelerating, despite capacity utilization in many industries below thresholds needed for the next round of private investments.
    • In line with the market consensus, we think that 2021-22 growth is likely to be in the 9-10 percent range.
    • Tax collections, another indicator of activity, even if a bit skewed, support this view.
    • A revival of retail consumer demand is critical for sustaining the recovery. Reports from industry associations suggest a somewhat mixed picture.
    • Demand emanating from rural geographies is important for sustaining recovery.
    • Demand for work under MGNREGA suggests continuing stress.
    • Monsoons will be a big contributor.
    • The sowing of Kharif crops stalled in late June but is predicted to pick up again in mid-July.
    • Renewed government intervention is required.

    Factors deciding the trajectory of recovery

    • Inflation: Rising inflation could force a monetary policy normalization faster than presently anticipated.
    • Global recovery: Effects global central banks’ policy tightening will only add to the difficulty of balancing a policy-induced increase in interest rates, moderating financial markets volatility, and maintaining growth incentives.
    • Access to credit: Access to credit remains a crucial input in the recovery matrix, particularly for small and micro-enterprises.
    • The Union government’s Emergency Credit Line Guarantee Scheme (ECLGS) has reportedly been very effective in stabilizing the solvency (and cash flows) of micro and small businesses.

    Way forward

    • Expansion of subvention scheme: The expansion of subvention (ECLGS) is probably the most effective template to incentivize credit flows, leveraging on the government’s balance sheet to take on the first loss risks.
    • At the same time, capex proposals of the Centre and states should gradually draw in private sector capex.
    • Policy intervention to create a level field: Corporate health has improved, with lower debt on balance sheets.
    • Adoption of technology is widespread; this will boost productivity and competitiveness.
    • But these factors reinforce trends in consolidation and market power.
    • It will require policy interventions to create a more level playing field for smaller companies, which is crucial for job creation.

    Conclusion

    Policy support will thus need to adapt from the “revive” to the “thrive” phase, to place India on a sustained 7 percent-plus growth path.

  • Theatre Command under Chief of Defence Staff is not a good idea

    Context

    The government is reportedly planning to re-organise the military into a theatre command under the chief of defence staff (CDS) in which the assets of the Air Force will be split into four and distributed among four operational theatres.

    Background of the creation of CDS

    • In 2012, the Naresh Chandra Committee suggested the creation of a CDS, which would take on overall functions of the chairman, chiefs of committee as well as the responsibilities pertaining to centralised planning, induction, training, intelligence and logistics. 
    • Operations, according to the committee’s suggestion, would continue to be managed by the respective chiefs of staff.
    • However, sometime in 2016-17, this idea was modified to organise the operational assets of the three services into four theatre commands, all of which are now proposed to be brought under the CDS.

    Issues with creating theatre command by dividing Air Force

    • Professional leadership is critical in support elements: The Air Chief’s professional leadership of the Air Force is crucial to orchestrate a variety of support elements like aerial tankers, AWACS (Airborne Warning And Control Systems), AEW, Heliborne support and UAVs in an “offensive operation”.
    • Lack of in-dept understanding: A land theatre command, if given power over the air elements, may not have the confidence to launch such a mission because of the lack of in-depth understanding of the organisational complexity and the risks involved.
    • Dilution of assets may harm effectiveness: Dilution of the combat assets of the Air Force, a 30-squadron force consisting of five or six types of aircraft, might severely affect mission-effectiveness.
    • Role of CDS: It is extremely doubtful if the CDS can cope with the enhanced responsibilities that include operations, albeit through the theatre commanders.
    • That would leave only training, maintenance, and support under the chiefs of staff — a gross under-utilisation of the operational leadership built over 40 years.
    • Resource limitations: Forming a separate air defence command for the air defence of the entire nation seems an impractical idea considering our resource limitations.
    • Current arrangement functioned effortlessly: The current arrangement of a decentralised air defence organisation managed by Air Force geographical commands has functioned faultlessly.
    •  Flexibility: The existing structures afford better flexibility.
    • There will be significant expenditure to construct the operational infrastructure of the theatre commands.
    • Timing: We are trying to effect changes at a time the military is deployed actively.
    • The Chinese have dug in hard, and we do not yet know their strategy.
    • To divide the Air Force into four units at this moment is inadvisable.

    Way forward

    • White paper: There is no white paper on the advantages of the theatre commands or one listing the merits of the CDS donning the mantle of the operational head of the entire military operation.
    • So, a white paper on these aspects could clear the air over the utilities of such moves.
    • Joint planning is a must, but operations are best undertaken by individual services who know what other services are doing and when.

    Conclusion

    Splitting the asset of the Air Force would result in dilution of its power and is not advisable at the current juncture.

  • Dholavira gets into UNESCO World Heritage list

    The Harappan city of Dholavira, in present-day Gujarat, has been named the 40th Indian site on UNESCO’s World Heritage list.

    Dholavira site

    • The IVC acropolis is located on a hillock near present-day Dholavira village in Kutch district, from which it gets its name.
    • It was discovered in 1968 by archaeologist Jagat Pati Joshi.
    • The site’s excavation between 1990 and 2005 under the supervision of archaeologist Ravindra Singh Bisht uncovered the ancient commercial city.

    Key features

    • It is one of the very few well preserved urban settlements in South Asia dating from the 3rd to mid-2nd millennium BCE.
    • It was located in the island of Khadir which was strategic to harness different mineral and raw material sources (copper, shell, agate-carnelian, steatite, lead, banded limestone, among others).
    • It facilitated internal as well as external trade to the Magan (modern Oman peninsula) and Mesopotamian regions.
    • One finds the origin of the Buddhist Stupas in memorials in Dholavira.

    A gem in the IVC acropolis

    • After Mohen-jo-Daro, Ganweriwala and Harappa in Pakistan and Rakhigarhi in Haryana of India, Dholavira is the fifth largest metropolis of IVC.
    • The site has a fortified citadel, a middle town and a lower town with walls made of sandstone or limestone instead of mud bricks in many other Harappan sites.
    • While unlike graves at other IVC sites, no mortal remains of humans have been discovered at Dholavira.

    Its architecture

    • The city demonstrates its multifaceted achievements in terms of urban planning, construction techniques, water management, social governance and development, art, manufacturing, trading, and belief system.
    • The property comprises two parts:
    1. A walled city: Consists of a fortified Castle with attached fortified Bailey and Ceremonial Ground, and a fortified Middle Town and a Lower Town
    2. A cemetery to the west of the city

    Trade and commercial activities

    • Remains of a copper smelter indicate of Harappans, who lived in Dholavira, knew metallurgy.
    • It is believed that traders of Dholavira used to source copper ore from present-day Rajasthan and Oman and UAE and export finished products.
    • It was also a hub of manufacturing jewellery made of shells and semi-precious stones, like agate and used to export timber.
    • Such beads peculiar to the Harappan workmanship have been found in the royal graves of Mesopotamia, indicating Dholavira used to trade with the Mesopotamians.

    Famous for water conservation

    • The expansive water management system designed to store every drop of water available shows the ingenuity of the people to survive against the rapid geo-climatic transformations.
    • Water diverted from seasonal streams, scanty precipitation and available ground was sourced, stored, in large stone-cut reservoirs which are extant along the eastern and southern fortification.
    • To further access water, few rock-cut wells, which date as one of the oldest examples, are evident in different parts of the city, the most impressive one being located in the citadel.
    • Such elaborate water conservation methods of Dholavira is unique and measures as one of the most efficient systems of the ancient world.

    Causes for its decline

    • Harappans, who were maritime people, lost a huge market, affecting the local mining, manufacturing, marketing and export businesses once Mesopotamia fell.
    • From 2000 BC, Dholavira entered a phase of severe aridity due to climate change and rivers like Saraswati drying up.
    • Because of a drought-like situation, people started migrating toward the Ganges valley or towards south Gujarat and further beyond in Maharashtra.
    • In those times the Great Rann of Kutch, which surrounds the Khadir island on which Dholavira is located, used to be navigable, but the sea receded gradually and the Rann became a mudflat.

    Other Harappan sites in Gujarat

    • Before Dholavira was excavated, Lothal, in Saragwala village on the bank of Sabarmati in Dholka taluka of Ahmedabad district, was the most prominent site of IVC in Gujarat.
    • It was excavated between 1955 and 1960 and was discovered to be an important port city of the ancient civilisation, with structures made of mud bricks.
    • From a graveyard in Lothal, 21 human skeletons were found. Foundries for making copperware were also discovered. Ornaments made of semi-precious stones, gold etc. were also found from the site.
    • Besides Lothal, Rangpur on the bank of Bhadar river in Surendranagar district was the first Harappan site in the state to be excavated.
    • Rojdi in Rajkot district, Prabhas near Veraval in Gir Somnath district, Lakhabaval in Jamnagar, and Deshalpar in Bhuj taluka of Kutch are among other Harappan sites in the state.

    Answer this PYQ in the comment box:

    Q.Which one of the following is not a Harappan site? (CSP 2019)

    (a) Chanhudaro

    (b) Kot Diji

    (c) Sohgaura

    (d) Desalpur

    Also read:

    Telangana’s Rudreswara Temple inscribed as a World Heritage Site

  • Electricity (Amendment) Bill, 2021

    The Electricity (Amendment) Bill, 2021 will be introduced and is likely to be pushed for passage in the ongoing monsoon session of Parliament.

    Need for this bill

    • Electricity distribution is at the cutting edge of the power sector.
    • Despite the last 25 years of power sector reforms, the electricity distribution companies are unable to pay the generation and transmission companies as well as banks / financial institutions due to poor financial health.
    • In this situation, patchwork may not turn around the power sector and a holistic approach is the need of the hour.
    • The provisions of the proposed amendment bill have to be seen in this context.

    Key features of Electricity (Amendment) Bill, 2021

    De-licensing: Electricity distribution is delicensed, at least in the letter, giving consumers a choice to choose a distribution company in their area.

    Universal service obligation: There is the provision of a universal service obligation fund, which shall be managed by a government company.  This fund shall be utilized to meet any deficits in cross-subsidy. In case of supply through pre-paid meters, security deposit will not be required.

    Appellate Tribunal for Electricity (APTEL): It is being strengthened by an increasing number of members. The domains from where the chairperson and members of Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERC) will come have been described.

    Renewable Power Obligation: Keeping in view the national climate change goals, the responsibility of fixing renewable power obligations (RPO) is shifted from state commissions to the central government.

    Penalty: Penalty for contravention of the provisions of the Act has been increased up to Rs 1 crore. Non-fulfillment of RPO will attract stringent penalties as per the proposed amendments.

    Important issues not addressed

    • Recovery of dues: Discoms collect revenue from the consumers and feed the supply chain upstream. They are, however, unable to recover their costs, out of which nearly 75-80 percent are power purchase costs.
    • Tariff: A broad guideline to reduce tariffs could have been part of the proposed amendment bill. Recently, the Forum of Regulators came out with a report on cost elements of tariff and suggested measures to reduce the same.
    • AT&C losses: The Aggregate Technical & Commercial (AT&C) losses of 12 states were more than 25 percent and of six states between 15 and 25 percent, according to a report released by the distribution utility forum based on Uday dashboard in 2020.

    Some provisions may backfire

    • Power distribution is proposed to be delicensed. However, the eligibility criteria shall be prescribed by the central government and the conditions for registration by the SERC.
    • There is a provision for amendment and cancellation of registration as well. In case these provisions are implemented similar to a license, the purpose shall be defeated.
    • The newly registered companies are given the facility to use the power allocation as well as the network of existing discom, which may be dilapidated in many cases due to paucity of funds.
    • With such a network, the quality of supply to the electricity consumers will be seriously affected.
    • Financial penalty on discom may not fully compensate and satisfy the consumers in such cased.

    Some of the issues that may be considered for holistic power sector reforms:

    • The provision of coal and railway freight regulators
    • Linkage of AT&C losses as key performance indicator for release of central funds to states by any ministry
    • Provision of a risk management committee and corporate governance within discoms, irrespective of being listed company

    Way forward

    • Fourteen years after the last amendment to the Electricity Act, currently, the focus of the amendment is on competition and compliance.
    • Electricity regulatory commissions hold the key to take this forward.
    • The commissions should be built as strong institutions and their autonomy should be respected and maintained.
    • After providing a robust framework for fair competition, the government should minimize its frequent interventions in the sector.
    • The government interventions often distort the market and maybe resorted to only in case of market failure.

  • South China Sea Dispute

     

    Pentagon chief has said that Beijing’s expansive claims in the South China Sea have “no basis in international law”, taking aim at China’s growing assertiveness in the hotly contested waters.

    South China Sea Dispute

    • It is a dispute over territory and sovereignty over ocean areas, and the Paracels and the Spratlys – two island chains claimed in whole or in part by a number of countries.
    • China, Vietnam, the Philippines, Taiwan, Malaysia, and Brunei all have competing claims.
    • Alongside the fully-fledged islands, there are dozens of rocky outcrops, atolls, sandbanks, and reefs, such as the Scarborough Shoal.
    • China claims by far the largest portion of territory – an area defined by the “nine-dash line” which stretches hundreds of miles south and east from its most southerly province of Hainan.
    • Beijing says its right to the area goes back centuries to when the Paracel and Spratly island chains were regarded as integral parts of the Chinese nation, and in 1947 it issued a map detailing its claims.
    • It showed the two island groups falling entirely within its territory. Those claims are mirrored by Taiwan.

    Spat over Chinese claims

    • China has backed its expansive claims with island-building and naval patrols.
    • The US says it does not take sides in territorial disputes but has sent military ships and planes near disputed islands, calling them “freedom of navigation” operations to ensure access to key shipping and air routes.
    • Both sides have accused each other of “militarizing” the South China Sea.
    • There are fears that the area is becoming a flashpoint, with potentially serious global consequences.

  • PM-CARES Fund should cover COVID orphaned children: SC

    The Supreme Court has clarified that welfare schemes such as the PM CARES Fund should cover both children, who became orphans during the Covid-19 pandemic and those, who became orphans due to Covid-19.

    What is PM-CARES Fund?

    • The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was created on 28 March 2020 following the COVID-19 pandemic in India.
    • The fund will be used for combat, containment, and relief efforts against the coronavirus outbreak and similar pandemic-like situations in the future.
    • The PM is the chairman of the trust. Members will include the defense, home, and finance ministers.
    • The fund will also enable micro-donations. The minimum donation accepted for the PM CARES Fund is ₹10.
    • The donations will be tax-exempt and fall under corporate social responsibility.

    Why cover orphaned children?

    • Over 75,000 children have been orphaned, abandoned, or have lost a parent during the COVID pandemic.
    • It is feared that many of them may become victims of human trafficking rackets or descend into crime.

    Under the scrutiny of the court

    • The Supreme Court has endorsed the PM CARES Fund as a “public charitable trust” to which donors contribute voluntarily.
    • The court said that PM-CARES is “not open” for a PIL petitioner to question the “wisdom” that created the fund in an hour of need.
    • The court dismissed the idea that the PM CARES was constituted to “circumvent” the National Disaster Response Fund (NDRF).

  • Organ Transplantation in India

    The Government of India is implementing National Organ Transplant Programme (NOTP) to promote organ donation and transplantation across all States/Union Territories (UTs).

    National Organ Transplant Programme (NOTP)

    • In 2019, the GoI implemented the NOTP for promoting deceased organ donation.
    • Organ donation in India is regulated by the Transplantation of Human Organs and Tissues Act, 1994.

    Types of Organ Donations

    • The law allows both deceased and living donors to donate their organs.
    • It also identifies brain death as a form of death.
    • Living donors must be over 18 years of age and are limited to donating only to their immediate blood relatives or, in some special cases, out of affection and attachment towards the recipient.

    (1) Deceased donors:

    • They may donate six life-saving organs: kidneys, liver, heart, lungs, pancreas, and intestine.
    • Uterus transplant is also performed, but it is not regarded as a life-saving organ.
    • Organs and tissues from a person declared legally dead can be donated after consent from the family has been obtained.
    • Brainstem death is also recognized as a form of death in India, as in many other countries.
    • After a natural cardiac death, organs that can be donated are cornea, bone, skin, and blood vessels, whereas after brainstem death about 37 different organs and tissues can be donated, including the above six life-saving organs

    (2) Living donors:

    They are permitted to donate the following:

    • one of their kidneys
    • portion of pancreas
    • part of the liver

    Features of the NOTP

    • Under the NOTP a National Level Tissue Bank (Biomaterial Centre) for storing tissues has been established at National Organ and Tissue Transplant Organization (NOTTO), New Delhi.
    • Further, under the NOTP, a provision has also been made for providing financial support to the States for setting up of Bio- material centre.
    • As of now a Regional Bio-material centre has been established at Regional Organ and Tissue Transplant Organization (ROTTO), Chennai, Tamil Nadu.

    More moves for facilitation:  Green Corridors

    • Studies have suggested that the chances of transplantation being successful are enhanced by reducing the time delay between harvest and transplant of the organ.
    • Therefore, the transportation of the organ is a critical factor. For this purpose, “green corridors” have been created in many parts of India.
    • A “green corridor” refers to a route that is cleared out for an ambulance carrying the harvested organs to ensure its delivery at the destination in the shortest time possible.

    About NOTTO

    National Organ and Tissue Transplant Organization (NOTTO) is a national level organization set up under the Directorate General of Health Services, Ministry of Health and Family Welfare.

    1. National Human Organ and Tissue Removal and Storage Network
    2. National Biomaterial Centre (National Tissue Bank)

    [I] National Human Organ and Tissue Removal and Storage Network

    • This has been mandated as per the Transplantation of Human Organs (Amendment) Act 2011.
    • The network will be established initially for Delhi and gradually expanded to include other States and Regions of the country.
    • Thus, this division of the NOTTO is the nodal networking agency for Delhi and shall network for Procurement Allocation and Distribution of Organs and Tissues in Delhi.
    • It functions as apex centre for All India activities of coordination and networking for procurement and distribution of Organs and Tissues and registry of Organs and Tissues Donation and Transplantation in the country.

    [II] National Biomaterial Centre (National Tissue Bank)

    • The Transplantation of Human Organs (Amendment) Act 2011 has included the component of tissue donation and registration of tissue Banks.
    • It becomes imperative under the changed circumstances to establish National level Tissue Bank to fulfill the demands of tissue transplantation including activities for procurement, storage and fulfil distribution of biomaterials.
    • The main thrust & objective of establishing the centre is to fill up the gap between ‘Demand’ and ‘Supply’ as well as ‘Quality Assurance’ in the availability of various tissues.

    The centre will take care of the following Tissue allografts:

    1. Bone and bone products
    2. Skin graft
    3. Cornea
    4. Heart valves and vessels

  • Emigration Bill 2021 does not go far enough

    Context

    The Emigration Bill 2021 could be introduced in Parliament soon and presents a long-overdue opportunity to reform the recruitment process for nationals seeking employment abroad.

    An overview of Emigration Act 1983

    • Labour migration is governed by the Emigration Act, 1983.
    • The Act sets up a mechanism for hiring through government-certified recruiting agents — individuals or public or private agencies.
    • It outlines obligations for agents to conduct due diligence of prospective employers,
    • Sets up a cap on service fees.
    • Establishes a government review of worker travel and employment documents (known as emigration clearances) to 18 countries mainly in West Asian states and South-East Asian countries.

    What are the improvements in Emigration Bill 2021?

    • It launches a new emigration policy division.
    • It establishes help desks and welfare committees.
    • It requires manpower agencies to conduct pre-departure briefings for migrants.
    • It increases accountability of brokers and other intermediaries who are also involved in labour hiring.

    Shortcoming in Emigration Bill 2021

    • Lacks human rights framework: The 2021 Bill lacks a human rights framework aimed at securing the rights of migrants and their families.
    • For example, in a country such as the Philippines, it explicitly recognises the contributions of Filipino workers and “the dignity and fundamental human rights and freedoms of the Filipino citizens”.
    • Workers to bear recruitment payments and service charges: the Bill permits manpower agencies to charge workers’ service fees, and even allows agents to set their own limits.
    • This provision goes against International Labour Organization (ILO) Private Employment Agencies Convention No. 181 and the ILO general principles and operational guidelines for fair recruitment.
    • The ILO Convention and guidelines recognises that it is employers, not workers who should bear recruitment payments including the costs of their visas, air travel, medical exams, and service charges to recruiters.
    • Criminalise worker: The Bill permits government authorities to punish workers by cancelling or suspending their passports and imposing fines up to ₹50,000 for violating any of the Bill’s provisions.
    • Criminalising the choices migrant workers make is deplorable, runs contradictory to the purpose of protecting migrants and their families, and violates international human rights standards.
    •  Recruiters and public officials could misuse the law to instil fear among workers and report or threaten to report them.
    • Gender dimension not adequadely addressed: This Bill does not also adequately reflect the gender dimensions of labour migration where women have limited agency in recruitment compared to their counterparts.
    • Women are more likely to be employed in marginalised and informal sectors and/or isolated occupations in which labour, physical, psychological, and sexual abuse are common.
    • Limited space for representation: The Bill also provides limited space for worker representation or civil society engagement in the policy and welfare bodies that it sets up.

    Way forward

    • The Ministry of External Affairs must start at the top, and draft a clearer purpose which explicitly recognises the contributions of Indian workers, the unique challenges they face, and uphold the dignity and human rights of migrants and their families.

    Conclusion

    The new Bill is better than the Emigration Act 1983, but more reforms are needed to protect Indian workers.

  • Revival of Construction sector

    Context

    The latest estimates of the fourth quarter of financial year 2020-21 (January-March) brought some relief, for policymakers.

    Interpreting the construction sector GVA increase

    • The construction sector showed a 15 per cent increase in gross value added (GVA) in the last quarter, which is nearly double the growth experienced by the sector in the previous year (7.7 per cent).
    • Sign of better times: The buoyant growth of this sector has been hailed by policymakers not just as a sign of better times to come,
    • Addressing distress: Growth in the construction sector is also considered as the capacity of the economy to address the distress that households have faced in the past year.
    • Addressing needs of workforce: The Chief Economic Advisor pointed to the high growth rates in construction possibly to indicate that growth would address the needs of the beleaguered workforce.
    • The Union budget 2021 has also allocated a considerable sum towards infrastructure and construction in the hopes of the sector playing a catalysing role.

    Issues with relying on the growth of high-employment sector

    • No strong correlation: While GVA and/or GDP are considered as indicators of economic health, it has been argued in detail how it may not be prudent to rely on these alone as measures of economic welfare.
    • In particular, mere growth in a sector may not necessarily translate into benefits for its workers.
    • In the last quarter of 2019-2020, when construction GVA grew at nearly 8 per cent, employment in the same sector grew by 3 per cent based on our estimates from CMIE-CPHS.
    • Fallback employment option: The fact that employment grew in this sector even during a crisis year is largely because of the fact that the construction sector emerged as a fallback employment option for many displaced workers.
    • During “normal” times, the sector typically employs only about 10-15 per cent of India’s total workforce.
    • Even if this sector were to expand in line with its GVA growth, it will not be able to provide employment beyond a certain level.
    • Employment alone is not enough: Moreover, employment alone is not enough.
    • Earnings for an average daily wage worker in the sector have actually declined this year.
    • Again, the overall economic growth in GVA in the sector has not been passed on to the workers.

    Way forward

    • Any relief effort that relies solely on economic growth as a means to uplift workers will be sorely inadequate as we see from the experience of workers in construction.
    • The need of the hour is to go beyond relying on sectoral growth as a means of delivering relief to workers.
    • Direct transfers of cash and food are also needed, as is livelihood support through employment guarantee programmes.

    Conclusion

    While boosting growth of high-employment sectors is one strategy to adopt, this has its limitations. The capacity of a sector is limited in terms of the number of workers that it can absorb, and the extent to which growth can benefit workers.

    Back2Basics: What is GVA?

    • Gross value added (GVA) is an economic productivity metric that measures the contribution of a corporate subsidiary, company, or municipality to an economy, producer, sector, or region.
    • GVA is essentially a measure of the “net” value of output — deducting the cost of any input that went into its production from its total value.
    • GVA thus adjusts gross domestic product (GDP) by the impact of subsidies and taxes (tariffs) on products.