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  • Regional Comprehensive Economic Partnership (RCEP)

    Economic implications of India opting out of RCEP

    | Economics | Mains Paper 3: Indian Economy

    Even as India opted to stay out after walking out of discussions last year, the new trading bloc has made it clear that the door will remain open for India to return to the negotiating table.

    Must read:

    China-led RCEP takes off without India

    Try answering this also:

    Q.Signing the Regional Comprehensive Economic Partnership (RCEP) agreement would have given more substance to India’s Act East policy. Analyse.

    Why did India walk out?

    • India decided to exit RCEP negotiations over “significant outstanding issues”.
    • Its decision was to safeguard the interests of industries like agriculture and dairy and to give an advantage to the country’s services sector.
    • The current structure of RCEP still does not address these issues and concerns.

    How far is China’s presence a factor?

    (1) Escalated tensions

    • Escalated tension with China is considered to be a major reason for India’s decision.
    • Major issues that were unresolved during RCEP negotiations were related to the exposure that India would have to China.

    (2) Surge in imports

    • This included India’s fears that there was “inadequate” protection against surges in imports.
    • It felt there could also be a possible circumvention of rules of origin— the criteria used to determine the national source of a product.
    • In the absence of this, other partner countries could dump their products by routing them through other countries that enjoyed lower tariffs.

    (3) Inability for countermeasures

    • India was unable to ensure countermeasures like an auto-trigger mechanism to raise tariffs on products when their imports crossed a certain threshold.
    • It also wanted RCEP to exclude most-favoured-nation (MFN) obligations from the investment, especially to countries with which it has border disputes.

    (4) No assurance of market access to India

    • RCEP also lacked clear assurance over market access issues in countries such as China and non-tariff barriers on Indian companies.
    • The agreement would have forced India to extend benefits given to other countries for sensitive sectors like defence to all RCEP members.

    (5) Trade balances paradox

    • India’s stance on the deal also comes as a result of learnings from unfavourable trade balances that it has with several RCEP members, with some of which it even has Free Trade Agreements.
    • India has trade deficits with 11 of the 15 RCEP countries, and some experts feel that India has been unable to leverage its existing FTAs with several RCEP members to increase exports.

    What can the decision cost India?

    • There are concerns that India’s decision would impact its bilateral trade ties with RCEP member nations, as they may be more inclined to focus on bolstering economic ties within the bloc.
    • The move could potentially leave India with less scope to tap the large market that RCEP presents —the size of the deal is mammoth, as the countries involved account for over 2 billion of the world’s population.
    • Given attempts by countries like Japan to get India back into the deal, there are also worries that India’s decision could impact the Australia-India-Japan network in the Indo-Pacific.

    What are India’s options now?

    • India, as an original negotiating participant of RCEP, has the option of joining the agreement without having to wait 18 months as stipulated for new members in the terms of the pact.
    • RCEP signatory states said they plan to commence negotiations with India once it submits a request of its intention to join and it may participate in meetings as an observer prior to its accession.
    • A possible alternative for India is to review its existing bilateral FTAs with some of these RCEP members as well as newer agreements with potential for Indian exports.
    • There is also a growing view that it would serve India’s interest to invest strongly in negotiating bilateral agreements with the US and the EU, both currently a work in progress.

    Conclusion

    • A country can never get into FTAs merely to provide its market to the partner countries.
    • When we accommodate our partner countries, our objective is also to increase the presence of our products in the markets of partners, and India hasn’t been able to achieve the latter objective.

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  • Zoonotic Diseases: Medical Sciences Involved & Preventive Measures

    What is mRNA vaccine?

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

    The Moderna and Pfizer vaccines which recently announced their success use the same technology, based on messenger RNA, or mRNA.

    Try this PYQ first:

    Q.‘RNA interference (RNAi)’ technology has gained popularity in the last few years. Why?

    1. It is used in developing gene silencing therapies.
    2. It can be used in developing therapies for the treatment of cancer.
    3. It can be used to develop hormone replacement therapies.
    4. It can be used to produce crop plants that are resistant to viral pathogens.

    Select the correct answer using the code given below:

    (a) 1, 2 and 4

    (b) 2 and 3

    (c) 1 and 3

    (d) 1 and 4 only

    What is mRNA?

    • Messenger RNA (mRNA) is a single-stranded RNA (Ribo Nucleic Acid) molecule that is complementary to one of the DNA strands of a gene.
    • The mRNA is an RNA version of the gene that leaves the cell nucleus and moves to the cytoplasm where proteins are made.
    • During protein synthesis, an organelle called a ribosome moves along the mRNA, reads its base sequence, and uses the genetic code to translate each three-base triplet, or codon, into its corresponding amino acid.

    What is the mRNA vaccine?

    • Such vaccines make use of the messenger RNA molecules that tell the body’s cells what proteins to build.
    • The mRNA, in this case, is coded to tell the cells to recreate the spike protein of the coronavirus SARS-CoV-2, which causes Covid-19.
    • It is the spike protein — which appears as spikes on the surface of the coronavirus — that initiates the process of infection; it allows the virus to penetrate cells, after which it goes on to replicate.
    • A coronavirus vaccine based on mRNA, once injected into the body, will instruct the body’s cells to create copies of the spike protein.
    • In turn, this is expected to prompt the immune cells to create antibodies to fight it.
    • These antibodies will remain in the blood and fight the real virus if and when it infects the human body.

    Back2Basics: Ribo Nucleic Acid (RNA)

    • RNA is an important biological macromolecule that is present in all biological cells.
    • It is principally involved in the synthesis of proteins, carrying the messenger instructions from DNA, which itself contains the genetic instructions required for the development and maintenance of life.
    • In some viruses, RNA, rather than DNA, carries genetic information.
    • The type of RNA dictates the function that this molecule will have within the cell.
    • Aside from the coding region of messenger RNA (mRNA) molecules that will be translated into proteins, other cellular RNA elements are involved in different processes.

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  • Wetland Conservation

    Lonar Lake, Sur Sarovar declared as Ramsar sites

    National Parks/WS | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    The Lonar Lake in Maharashtra and Sur Sarovar, also known as Keetham lake, in Agra, have been added to the list of recognised Ramsar sites.

    Make a note of all freshwater and saltwater lakes in India.

    Lonar Lake

    • Lonar Lake, also known as Lonar crater, is a notified National Geo-heritage Monument, saline (pH of 10.5), Soda Lake, located at Lonar in Buldhana district, Maharashtra.
    • It was created by an asteroid collision with earth impact during the Pleistocene Epoch.
    • It is one of the four known, hyper-velocity, impact craters in basaltic rock anywhere on Earth.
    • It sits inside the Deccan Plateau—a massive plain of volcanic basalt rock created by eruptions some 65 million years ago.

    Sur Sarovar

    • It is a scenic lake just outside Agra on the Agra – Delhi highway (NH 2) and a declared bird sanctuary.
    • The riverine belt of River Yamuna surrounds the area of Sur-Sarovar.
    • It is today home to more than 165 species of migratory and resident birds.
    • It is the same place that inspired the famed poet Soordas to compose the “Bhakti Kavya” one of the finest pieces of devotional poetry.

    Two amongst many

    • India now has 41 wetlands, the highest in South Asia, with two more added to the list of recognised sites of international importance under the treaty of Ramsar Convention.
    • Recently, Kabartal in Bihar’s Begusarai district was recognised as a wetland of international importance, the first such wetland in the State, under the Ramsar Convention.
    • The Asan Conservation Reserve in Dehradun, the first wetland from Uttarakhand to be recognised by Ramsar convention, was added to the list in October this year.

    Back2Basics: Wetlands

    • A wetland is a distinct ecosystem that is flooded by water, either permanently or seasonally, where oxygen-free processes prevail.
    • The primary factor that distinguishes wetlands from other landforms or water bodies is the characteristic vegetation of aquatic plants, adapted to the unique hydric soil.
    • Wetlands provide a wide range of important resources and ecosystem services such as food, water, fibre, groundwater recharge, water purification, flood moderation, erosion control and climate regulation.

    What is the Ramsar Convention?

    • The Ramsar Convention on Wetlands of International Importance Especially as Waterfowl Habitat is a treaty for the conservation and sustainable use of such sites.
    • The convention, signed in 1971 in the Iranian city of Ramsar, is one of the oldest inter-governmental accords for preserving the ecological character of wetlands.
    • Also known as the Convention on Wetlands, it aims to develop a global network of wetlands for the conservation of biological diversity and for sustaining human life.
    • Over 170 countries are party to the Ramsar Convention and over 2,000 designated sites covering over 20 crore hectares have been recognised under it.

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

    PLI Scheme extended to 10 key Sectors

    | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Manufacturing holds key to the economic prosperity of the country. The article examines the significance of Production Linked Incentive Scheme to boost manufacturing in India.

    Need for increasing manufacturing capabilities

    • The world of manufacturing is now more interconnected than ever before with all major industries—automobile, electronics, pharmaceuticals, textiles, etc—operating as a global value-chain.
    • In order to integrate India as a pivotal part of this modern economy, there is a strong need to step up our manufacturing capabilities in sectors of high growth, including the cutting edge technology sectors.
    • A strong and dynamic manufacturing sector will fuel India’s economic growth by allowing companies producing in India to penetrate effectively into the global supply chains across various sectors.
    • Apart from enhancing exports, it will also reduce our import dependencies and spur domestic consumption.
    • ‘Atmanirbhar Bharat’ has brought manufacturing to the centre stage and emphasised its significance in driving India’s growth.

    Factors favouring India

    • India offers an attractive domestic market, with a large population in the educated and earning segment.
    • It also has a strong institutional framework which allows for a smooth functioning of the industry.
    • A concerted effort towards attracting substantial investments for the creation of large manufacturing facilities, combined efficiency and economies of scale, can help Indian companies globally competitive and integrate with the global markets.

    How Production Linked Scheme (PLI) will help achieve these objectives

    • The Production Linked Incentive (PLI) Scheme is designed to incentivise incremental production for a limited number of eligible anchor entities in each of the selected sectors.
    • These selected entities will invest in technology, plant & machinery, as well as in R&D.
    • The scheme will also have beneficial spillover effects by the creation of a widespread supplier base for the anchor units established under the scheme.
    • Along with the anchor unit, these supplier units will also help to generate massive primary and secondary employment opportunities.
    • The sectors for PLI have been shortlisted on the basis of their potential for economic growth, extent of benefit to the rural economy, revenue and employment generation.
    • A key benefit of the PLI Scheme is that it can be implemented in a very targeted manner to attract investments in areas of strength and to strategically enter certain segments of global value chains (GVCs).
    • This will help bring scale and size in key sectors and create and nurture global champions.
    • The scheme incentivises upcoming technologies that represent the biggest economic opportunities of the 21st century.
    • The scheme intends to generate large-scale employment by incentivising the development of traditional, labour intensive sectors like Food Processing and Textiles.
    • The current basket of Indian manufacturing constitutes of large volume of low-value products.
    • The scheme aims to correct this by encouraging large manufacturers to bring technology and to build capabilities for high-value output thereby providing higher returns to the upstream producers.
    • It will also enable an increase in exports.
    • The scheme envisages globally-integrated manufacturing in sectors such as automobile and auto components, pharmaceuticals, telecommunications, white goods and steel.
    • These are crucial sectors in terms of their strategic importance, contribution to the GDP and employment-generation potential.

    Conclusion

    Given the scale of incentives, which is around Rs 1,96,000 crore, the manufacturing sector of the country is set to transform in the next few years. Its contribution to the GDP will significantly improve, leading to unprecedented investment and job creation.

    Source:-

    https://www.financialexpress.com/opinion/pli-scheme-will-help-india-nurture-manufacturing-giants/2128992/

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  • Foreign Policy Watch: India-Canada

    India-Canada relations

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

    Track 1.5 dialogue

    •  The third round of India-Canada Track 1.5 Dialogue, comprising senior diplomats, officials and independent experts, will be held on a virtual platform.
    • This promising interaction represents a major, deliberate endeavour to boost the bilateral relationship.

    Convergence on China issue

    • Common challenges of the COVID-19 era accelerated the momentum of bilateral engagement.
    • Canada’s travails with China, starting with the arrest of Huawei’s chief financial officer in Canada in December 2018.
    • Later, the ‘hostage diplomacy’ practised by Beijing which arrested two Canadian nationals, has caused huge stress in Canada-China relations, turning Canadian public opinion against China.
    • This opened the door to a closer relationship with India.
    • In this backdrop, developments concerning the Indo-Pacific —  strengthening of the Quad and the growing interest of France, Netherlands and Germany to be active players in the region — are of immense relevance to Ottawa.
    • The forthcoming dialogue can deepen the India-Canada convergence on this issue.

    Principal area’s of bilateral cooperation

    • Canada-India merchandise trade exceeded C$10 billion in 2019.
    • Canada’s cumulative investment, including foreign direct investment and by Canadian pension funds, is a substantive C$55 billion.
    • Addressing virtually the ‘Invest India’ conference in Canada on  Prime Minister pointed out that mature Canadian investors have been present in India for many years and assured them that no barriers would come in their way.
    • Indian students are increasingly being educated in Canada, and a quarter million of them spent an estimated $5 billion in tuition fees and other expenses last year, a solid contribution to the Canadian economy.
    • Of 330,000 new immigrants accepted by Canada last year, 85,000 i.e. nearly 25%, were from India.
    • The Indian diaspora in Canada is now 1.6 million-strong, representing over 4% of the country’s total population.
    • The principal areas of bilateral cooperation are best defined by five Es: Economy, Energy, Education, Entertainment and Empowerment of women.
    • In particular, the digital domain holds immense potential, given Canada’s proven assets in technology — especially its large investment in Artificial Intelligence, innovation and capital resources, and India’s IT achievements, expanding digital payment architecture and policy modernisation.

    Conclusion

    Divided by geographical distance but united through clear common interests and shared values, India and Canada will begin their steady journey of progress, this time with a laser-like focus on common goals as well.

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  • Air Pollution

    Air pollution in India

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Despite efforts from several levels, air pollution is getting worse day by day. The article suggests the strategy to deal with the issue of air pollution.

    Solvable problem

    • Pollution is very much a solvable problem but it cannot be solved on an emergency basis.
    • It has to be dealt with firmly and gradually.
    • Why gradually? Because there are many sources of pollution and it would be prohibitively costly to stop them or even significantly reduce them all at once.

    Replacing existing technologies with existing technology

    • The biggest sources air polltion nationally are cooking fires, coal-fired power plants, various industries, crop residue burning, and construction and road dust. Vehicles are further down on the list.
    • Dealing with all these sources will require a gradual replacement of existing technologies with new technologies.
    • Cooking fires must be replaced with LPG, induction stoves, and other electric cooking appliances.
    • Old coal power plants must be closed and replaced with wind and solar power and batteries while newer plants must install new pollution control equipment.
    • No new coal-fired power plants should be built — with renewables being cheaper, coal is obsolete for power generation.
    • Other industries that use coal will have to gradually switch over to cleaner fuel sources such as gas or hydrogen while becoming more energy-efficient at the same time.
    • Farmers will have to switch crops or adopt alternative methods of residue management.
    • Diesel and petrol vehicles must gradually be replaced by electric or hydrogen fuel cell vehicles running on power generated from renewables.

    Legal measures and issues

    • Governments can make clean investments more profitable and dirty investments less profitable by taxing polluting activities and subsidising clean investments.
    • The judiciary is more powerful but has far less scientific and technical competence.
    • It tends to act only during crises and focus on past mistakes rather than planning to prevent new ones.

    Reforms in regulatory agency

    • Our existing laws do not allow the central and state pollution boards to levy pollution fee or cess based on pollution emissions.
    • Since closing down an industry is a drastic step, it almost never happens.
    • We need a regulatory agency that can levy pollution fee or cess, is that the regulatory decision need not be an all-or-nothing decision.
    • Pollution fees can start small, and the EPA can announce that they will rise by a certain percentage every year.
    • The regulatory agency should be given some independence,like
    • 1) a head appointed for a five-year term removable only by impeachment.
    • 2) a guaranteed budget funded by a small percentage tax on all industries.
    • 3) autonomy to hire staff and to set pollution fees after justification through scientific studies.
    • Three advantages of the regulator with such powers would be-
    • 1) Politicians in power can pass on the blame for decisions on pollution fees to the EPA.
    • 2) Pollution fees raise revenue for the government.
    • 3) If the law establishing an independent EPA is written to require that changes to pollution fees and regulations must be published in advance, and cannot involve abrupt changes, then surprises are avoided.
    • Industry opposition will be muted, especially if industry gets a piece of the revenue to invest in new technologies.

    Conclusion

    Our pollution problem has taken decades to grow into the monster that it is. It can’t be killed in a day. We need the scientific and technical capacity that only a securely funded independent EPA can bring to shrink pollution down to nothing.

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  • Regional Comprehensive Economic Partnership (RCEP)

    China-led RCEP takes off without India

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

    The Regional Comprehensive Economic Partnership (RCEP), a mega trade bloc comprising 15 countries led by China has come into existence.

    Try answering this:

    Q.Signing the Regional Comprehensive Economic Partnership (RCEP) agreement would have given more substance to India’s Act East policy. Analyse.

    About RCEP

    • Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) between –
    1. The 10 members of ASEAN
    2. Additional members of ASEAN +3 = China, Japan, South Korea
    3. Members with which ASEAN countries have FTA = Australia, New Zealand
    • The group is expected to represent at least 30% of the global GDP and will emerge as the largest free trade agreement in the world.
    • It includes more than 3 billion people, has a combined GDP of about $17 trillion, and accounts for about 40 per cent of world trade.

    India’s reluctance

    • India’s ties with China in recent months have been disturbed by the military tension in eastern Ladakh along the LAC.
    • In the meantime, India has also held a maritime exercise with Japan, Australia, and the United States for the “Quad” that was interpreted as an anti-China move.
    • However, these moves did not influence Japanese and Australian plans regarding RCEP.

     Leverage for China

    • Despite the pandemic, the RCEP is certainly leverage for China and shows the idea of decoupling from China is not a substantive issue in a regional sense.
    • The agreement means a lot for China, as it will give it access to Japanese and South Korean markets in a big way, as the three countries have not yet agreed on their FTA.

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  • North-East India – Security and Developmental Issues

     Assam-Mizoram Boundary Dispute

    | Polity | Mains Paper 2: Federalism

    The recent violence and tension on the Assam-Mizoram border underline the differences the two States have had since 1972 when Mizoram was carved out of Assam as a Union Territory.

    Try answering this:

    Q.Assam has had boundary problems with almost all of its north-eastern neighbours. Discuss.

    *Also note the states bordering Assam.

    What is the Dispute?

    • Mizoram was carved out of Assam as a Union Territory in 1972. In 1987, it became a full-fledged state.
    • The two states have sparred over where the border lies in the past, leading to the occasional violence.
    • The disagreement stems from differing views on which border demarcation to follow.
    • Mizoram’s perception of the border is based on an 1875 notification that flows from the Bengal Eastern Frontier Regulation Act of 1873.
    • The Act demarcated the Lushai Hills from the plains and valleys in the North East, restricting free travel between the two zones. The hills were deemed to be “excluded areas”.
    • Assam, for its part, goes by a 1933 notification by the state government that demarcated the Lushai Hills, as Mizoram was then known, from the province of Manipur.

    The Assamese problem

    • Assam has had boundary problems with all its north-eastern neighbours, except Manipur and Tripura that had existed as separate entities.
    • The primary reason is that the other States, a part of Assam during the British rule, have contested the boundaries since they became States, beginning with Nagaland in 1963.
    • Assam has accepted several recommendations of border commissions set up by the Supreme Court, but other States have been sticking to “historical boundaries” that go back to the period before 1826.
    • However, the border residents have to bear the brunt of the unrest unless an acceptable solution is arrived at.

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Sex Ratio in India

    DOMR | | Mains Paper 1: Population & Associated Issues

    A 2018 report on “vital statistics of India based on the Civil Registration System” shows crucial data of sex ratios of major states in India.

    Sex Ratio

    • Sex ratio at birth is the number of females born per thousand males.
    • Sex ratios are among the most basic of demographic parameters and provide an indication of both the relative survival of females and males and the future breeding potential of a population.

    Try this PYQ

    Q.Consider the following specific stages of demographic transition associated with economic development:

    1. Low birth rate with a low death rate
    2. High birth rate with a high death rate
    3. High birth rate with a low death rate

    Select the correct answer using the codes given below:

    (a) 1, 2 and 3 only

    (b) 3, 2 and 1 only

    (c) 2, 3 and 1 only

    (d) 3, 2 and 1 only

    Statewise data

    • Arunachal Pradesh recorded 1,084 females born per thousand males, followed by Nagaland (965) Mizoram (964), Kerala (963) and Karnataka (957).
    • The worst was reported in Manipur (757), Lakshadweep (839) and Daman & Diu (877), Punjab (896) and Gujarat (896).
    • Delhi recorded a sex ratio of 929, Haryana 914 and Jammu and Kashmir 952.
    • The number of registered births increased to 2.33 crore in 2018 from 2.21 crore registered births the previous year.

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  • Foreign Policy Watch: India-Middle East

    UAE’s Golden Visa Program

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

    The United Arab Emirates will extend its “golden” visa system — which grants 10-year residency in the West Asian nation — to certain professionals, specialised degree-holders and others.

    Do you know?

     India is the world’s top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018 a/c to the World Bank.

    Golden Visa Programme

    • The “Golden Card” programme is open to investors and “exceptional talents” such as doctors, engineers, scientists, students and artists.
    • The visa categories include:
    1. General investors who will be granted a 10 years visa
    2. Real estate investors, who can get a visa for 5 years Visa
    3. Entrepreneurs and talented professionals such as doctors, researchers and innovators: 10 years Visa
    4. Outstanding students — will also be permitted residency visas for 5 years
    • All categories of visas can be renewed upon expiry.

    Benefits for India

    • The Indian expatriate community is reportedly the largest ethnic community in the UAE, constituting roughly about 30 per cent of the country’s population of around nine million.
    • Though most of the Indians living in the UAE are employed, about 10 per cent of the Indian population constitutes dependent family members, according to the Indian Embassy.

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