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  • Food Processing Industry: Issues and Developments

    [pib] Scheme for formalization of Micro Food Processing Enterprises (FME)

    The Union Cabinet has given its approval to a new Centrally Sponsored Scheme – “Scheme for Formalization of Micro food processing Enterprises (FME)” for the Unorganized Sector on All India basis.

    Practice question for mains:

    Q. Discuss the scope and significance of Food Processing Industries in India.  Also discuss how can it benefit India becoming the global food store.

    Background

    • There are about 25 lakh unregistered food processing enterprises which constitute 98% of the sector and are unorganized and informal.
    •  Nearly 66 % of these units are located in rural areas and about 80% of them are family-based enterprises.
    • This sector faces a number of challenges including the inability to access credit, high cost of institutional credit, lack of access to modern technology, inability to integrate with the food supply chain and compliance with the health & safety standards.
    • Strengthening this segment will lead to a reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching Government objective of doubling farmers’ income.

    Details of the Scheme for FME

    • The Union Cabinet has sanctioned an outlay of Rs.10,000 crore.
    • The expenditure will be shared by GOI and the States in the ratio of 60:40.

    Salient features

    • It will be a Centrally Sponsored Scheme. Expenditure to be shared by the Government of India and States at 60:40.
    • 2, 00,000 micro-enterprises are to be assisted with credit linked subsidy.
    • The scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
    • Cluster approach.
    • Focus on perishables.

    Support for Individual micro-units:

    • Micro enterprises will get credit-linked subsidy @ 35% of the eligible project cost with a ceiling of Rs.10 lakh.
    • The beneficiary contribution will be a minimum of 10% and balance from the loan.
    • On-site skill training & Handholding for DPR and technical upgradation.

    Implementation strategy

    • The scheme will be rolled out on All India basis.
    • Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for the loan to members for working capital and small tools.
    • Grant will be provided to FPOs for backward/forward linkages, common infrastructure, packaging, marketing & branding.

    Administrative and Implementation Mechanisms

    • The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, FPI.
    • A State/ UT Level Committee (SLC) chaired by the Chief Secretary will monitor and sanction/ recommend proposals for expansion of micro-units and setting up of new units by the SHGs/ FPOs/ Cooperatives.
    • The States/ UTs will prepare Annual Action Plans covering various activities for implementation of the scheme, which will be approved by the Government of India.
    • A third-party evaluation and mid-term review mechanism would be built in the programme.
    • The State/ UT Government will notify a Nodal Department and Agency for implementation of the Scheme.

    Establishment of a National Portal & MIS

    • A National level portal would be set-up wherein the applicants/ individual enterprise could apply to participate in the Scheme.
    • All the scheme activities would be undertaken on the National portal.

    Benefits of the Scheme

    • Nearly eight lakh micro-enterprises will benefit through access to information, better exposure and formalization.
    • Credit linked subsidy support and hand-holding will be extended to 2,00,000 micro-enterprises for expansion and upgradation.
    • It will enable them to formalize, grow and become competitive.
    • The project is likely to generate nine lakh skilled and semi-skilled jobs.
    • The scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs and entrepreneurs in the Aspirational Districts.
    • Better integration with organized markets.
    • Increased access to common services like sorting, grading, processing, packaging, storage etc.
  • Microfinance Story of India

    [pib] Emergency Credit Line Guarantee Scheme (ECLGS)

    The Union Cabinet has given its approval for the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs and MUDRA borrowers.

    Practice question for Mains :

    Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.

    About ECLGS

    • Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
    • The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
    • The Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020.

    Aims and objectives

    • The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line.
    • The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers.
    • It aims to provide a 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

    Salient features

    • The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.
    • Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
    • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
    • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

    Benefits of the scheme

    • The scheme aims to mitigate the distress caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.
    • The scheme is expected to provide credit to the sector at a low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.
    • By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.

    Must read

    [Burning Issues] Fiscal Push for MSME Sector of India (Part I)

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

    [pib] Pradhan Mantri Matsya Sampada Yojana (PM-MSY) for boosting fisheries sector

    The Union Cabinet has approved the “Pradhan Mantri Matsya Sampada Yojana”.

    Practice question for Mains:

    Q. Only after the Indian Independence, has fisheries together with agriculture been recognized as an important sector. Examine the scope & challenges of aquaculture in India.

    About the PMMSY

    • The PMMSY aims to bring about the Blue Revolution through sustainable and responsible development of the fisheries sector in India.
    • With the scheme, highest ever investment of Rs. 20050 crores are being made in the fisheries sector.
    • It will be implemented over a period of 5 years from FY 2020-21 to FY 2024-25 in all States/Union Territories.

    Aims and objectives of PMMSY

    • Harnessing of fisheries potential in a sustainable, responsible, inclusive and equitable manner
    • Enhancing of fish production and productivity through expansion, intensification, diversification and productive utilization of land and water
    • Modernizing and strengthening of the value chain – post-harvest management and quality improvement
    • Doubling fishers and fish farmers incomes and generation of employment
    • Enhancing contribution to Agriculture GVA and exports
    • Social, physical and economic security for fishers and fish farmers
    • Robust fisheries management and regulatory framework

    Implementation strategy

    The PMMSY will be implemented as an umbrella scheme with two separate components namely:

    (a) Central Sector Scheme and

    (b) Centrally Sponsored Scheme

    • Majority of the activities under the Scheme would be implemented with the active participation of States/UTs.
    • A well-structured implementation framework would be established for the effective planning and implementation of PMMSY.
    • For optimal outcomes, ‘Cluster or area-based approach’ would be followed with requisite forward and backward linkages and end to end solutions.

    Back2Basics: Fisheries sector of India

    • Fisheries and aquaculture are an important source of food, nutrition, employment and income in India.
    • The sector provides livelihood to more than 20 million fishers and fish farmers at the primary level and twice the number along the value chain.
    • The Gross Value Added (GVA) of the fisheries sector in the national economy during 2018-19 stood at 1.24% of the total National GVA and 7.28% share of Agricultural GVA.
    • The sector has immense potential to double the fishers and fish farmers’ incomes as envisioned by government and usher in economic prosperity.
    • Fisheries sector in India has shown impressive growth with an average annual growth rate of 10.88% during the year from 2014-15 to 2018-19.
  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Rajiv Gandhi Kisan Nyaya Yojana in Chhattisgarh

    The Rajiv Gandhi Kisan Nyaya Yojana has been approved by the Chhattisgarh state govt. on 19th death anniversary of the former Prime Minister, yesterday.

    Practice question for Mains:

    Q. Various income support mechanisms for farmers are more of a populist measure with no impact on ground zero. Critically examine.

    Rajiv Gandhi Kisan Nyaya Yojana

    • It is a new income support programme under which Farmers in Chhattisgarh would get up to ₹13,000 an acre a year.
    • Rice and maize farmers would get ₹10,000 an acre while sugarcane farmers would get ₹13,000. The money would be distributed in four instalments.
    • In the first instalment, ₹1,500 crores would be distributed among 18 lakh farmers, more than 80% of the small and marginal.
    • The scheme would cover rice, maize and sugarcane farmers to begin with, and would expand to other crops later.

    Benefits of the scheme

    • This will help farmers through the agricultural cycle and hopefully help with extension activities.
    • The injection of cash among the rural population would generate a demand that shielded Chhattisgarh from the economic slowdown last year.
    • This will reduce distress migration, and enhance food security for the State.
  • Foreign Policy Watch: India-China

    Tracking Chinese diplomacy

    We are no stranger to the assertive nature of China in geopolitics. But had it always been the same? This article captures the transformation of the nature of Chinese diplomacy. Two personalities that had a profound impact on the nature of the diplomacy of that country are Zhou Enlai and Deng Xiaoping. Each of them imparted special characteristic to diplomacy. Now, that all seems lost from present China. Read the article to know about the contribution of two personalities and trends in Chinese diplomacy now.

    Zhou Enlai: Preference for Persuasion and compromise

    “All diplomacy is a continuation of war by other means.” – Zhou Enlai

    • If Mao Zedong represented the crude face of Chinese communism, then Zhou was the epitome of its refinement.
    • Zhou preferred to seduce his opponents through word and gesture in the pursuit of national self-interest.
    • Force was used rarely, and only when all other means of persuasion failed.
    • So, amid Korean War in 1950, when the U.S. Army crossed into North Korea, Zhou Enlai delivered message against crossing 38th Parallel through Indian Ambassador, instead publicly declaring this.
    • He chose to give diplomacy a chance.

    Role in First Indochina War

    • In 1954, the Chinese made their entry onto the world stage in Geneva.
    • The Vietnamese were winning against the French in the First Indochina War.
    • And the Americans were preparing to intervene fearing that another “domino” would fall to communism.
    • China’s self-interest lay in ending this war while denying the U.S. a foothold in its backyard.
    • Zhou’s strategy was to undermine western unity.
    • His watchwords were persuasion and compromise.
    • He even gave “face” to the French who had just lost to the Vietnamese in the battle of Dien Bien Phu, by travelling the “extra mile” to meet Prime Minister of France to secure the peace.

    Low profile at Afro-Asian Conference in Bandung

    • In 1955, at the Afro-Asian Conference in Bandung, Zhou used the same tactics to pursue another objective: Developing relations with leaders of the Afro-Asian countries.
    • He deliberately kept a low profile, allowing Prime Minister Jawaharlal Nehru and Indonesian President Sukarno to take the lead.
    • His tactic, he reported to Mao, was “not to be involved in provocative or disruptive debate”.
    • His guidance to his team was to “strive to expand the united front of the world peace force.
    • He also instructed the team to create conditions for establishing diplomatic work or diplomatic relations between China and a number of Afro-Asian countries.

    So, how Zhou shaped China’s foreign policy?

    • Zhou’s style of diplomacy came to define Chinese foreign policy over the next half-century.
    • The strategy was consistent: avoid isolation, build solidarity with non-aligned countries, divide the West.
    • The tactics were called ‘united front’ — isolate the main threat by building unity with all other forces.
    • Under Zhou, diplomats of calibre kept handled the task of diplomacy with skill and held firm even in storms like the Cultural Revolution.
    • When the tide rose, these diplomatic fishermen gathered the fish — expanding China’s global presence and gaining international acceptability.
    • When it ebbed, they saw to it that the ship remained firmly moored.
    • They navigated the Cold War, playing the Soviets against the Americans.
    • To relieve pressure, Zhou opened border talks with the Soviets and channels to the U.S.
    • Public animosity did not deter him from turning on the full extent of his diplomatic skills on either Alexei Kosygin or Henry Kissinger.
    • In February 1972, he persuaded U.S. President Richard Nixon to abandon Taiwan.
    • It was a staggering act of diplomacy.

    Deng Xiaoping: hide our capacities and bide our time

    “Observe calmly; secure our position; cope with affairs calmly; hide our capacities and bide our time; be good at maintaining a low profile; and never claim leadership.”

    • In the 1980s, Deng Xiaoping took up the reins.
    • Deng supplemented Zhou’s strategy with a “24-Character Strategy” of his own(the above quote).

    Character of Chinese diplomacy in Deng Xiaoping’s time

    • “24-Character Strategy” became the ‘mantra’ of Chinese diplomacy.
    • Chinese diplomats measured their words and kept their dignity.
    • They projected power but rarely used more words than needed.
    • They were masters of their brief because Zhou had taught them that the real advantage in negotiations was to know more than the other side.
    • They flattered acquaintances, calling them “old friends”.
    • They built relationships by making it a point to engage the less friendly interlocutors with greater courtesies than friends.
    • Behind closed doors, they were tireless in reducing opposition through negotiation.
    • And skillfully in putting the onus of responsibility for failure on the other party.
    • And occasionally, they would hold out a veiled threat with a look of concern rather like an uncle anxious to save you from embarrassment.
    • But they rarely offended.

    Tumultuous period of 1980s and 1990s and entry into WTO

    • The 1980s and 1990s were the peak for Chinese diplomacy.
    • The U.S. President George Bush and Russian leader Mikhail Gorbachev visited China.
    • They normalised relations, settled borders and won hearts and minds through general financial help.
    • So effective was Chinese diplomacy that the Americans even broke their own sanctions imposed after the 1989 ‘Tiananmen Incident’, within a matter of four weeks.
    • A decade later, the U.S. and the European Union bought into Chinese assurances that it would soon transition to a market economy.
    • And helped steer China into the World Trade Organization.

    After Deng Xiaoping: Arrogance and threats in diplomacy

    • Deng died in 1997. China prospered just as Deng had imagined.
    • It began to occupy centre stage in world diplomacy, but the basics of Chines diplomacy started changing
    • A new generation of diplomats, with knowledge of the English language and a careerist mindset, has started to destroy the foundations set down by Zhou and Deng.
    • Arrogance has replaced humility.
    • Persuasion is quickly abandoned in favour of the stick when countries take actions contrary to Chinese wishes.
    • The Chinese pursue unilateralism instead of compromise in the South China Sea.
    • In place of ‘united front’ tactics, they are bent on creating irritations simultaneously with multiple China neighbouring countries.
    • Avenging the ‘Century of Humiliation’ that endured in the hands of western imperial powers from roughly 1839-1840 to 1949 is on their mind now.
    • To avenge that they adopt a one-size-fits-all approach.
    • But they forget that much of the world has done nothing to China and, indeed, shares a similar historical experience.
    • Statements of fact or reasoned opinion are seen by them as insult or humiliation.
    • Foreign governments are educated about their responsibilities in managing the media and the narrative, even as the Chinese manipulate the same media to serve their purposes.
    • They expect to receive gratitude for everything they do, including handling COVID-19, as if it was only done with the foreigner in mind.
    • The veneer of humility has thinned.
    • The reserves of goodwill are fast depleting. The ship seems to be adrift at sea.

    Questions related to China has been a recurrent theme in the UPSC papers. Consider the question asked in 2017  “China is using its economic relations and positive trade surplus as a tool to develop potential military power status in Asia. In light of this statement discuss its impact on India and her neighbours.”

    Conclusion

    In the post-pandemic world, India and the rest of the world will have to reckon the role played by China in the pandemic. In such a changing scenario India will do well to take note of the changing trends of Chinese diplomacy.


  • Coronavirus – Economic Issues

    Exploring the avenues to fill the budgetary gaps

    What are the options available with the government to fill up the budgetary gaps created by the stimulus package? Well, one seems to be exercising its disinvestment or privatisations plans. But like always disinvestment comes with its own set of issues. The next could be raising the taxes and duties on the fuels. But this will defeat the very purpose of the package. Third option is borrowing. But borrowing in the external currency is another problem story. Let’s figure this all out with this article….

    Containing the fiscal deficit through privatisation

    • Government is apparently hopeful that money could come partly from the new privatisation programme.
    • Finance Minister recently said that privatisation — a policy that has already gained momentum in the last budget, would now be the order of the day.
    • According to the new Public Sector Enterprises Policy (PSEP), a list of strategic sectors will be notified where there will be no more than four public sector enterprises.
    • The PSEP is a strategic move intended to rationalise the public sector.
    •  Before the COVID-19 crisis, the government needed the privatisation money partly because its revenue from GST among other things was declining.
    • And this void could only partly be filled by alternative sources of tax revenues such as that on fuel.
    • Today, the government needs this money in order to contain the fiscal deficit.
    • So, the privatisation programme has suddenly been expanded.
    • The Centre has set a budget target of Rs 2.1 lakh crore from disinvestment in the current fiscal year.

    Progress made so far on disinvestment process

    • Towards the end of 2019, the government approved the privatisation of BPCL and the Shipping Corporation of India.
    • In addition to selling stakes in the Container Corporation of India, THDC and NEEPCO.
    • The government had initially planned to complete its “strategic disinvestment” in BPCL and Air India by the end of this fiscal year.
    • It now wants it completed earlier. Some estimate say that the government’s disinvestment in BPCL, SCI and CONCOR could fetch it Rs 78,400 crore.
    • Should India’s flying Maharaja also find a buyer, the government could raise over Rs 1,05,000 crore.

    Issues with privatisation

    • The revenue from privatisation is a one-off benefit and generally, only profit-making units are sold at a good price.
    • Privatisation is a two-way street — it requires a buyer and a seller. Who will be the buyers?
    • Excessive political interference with the private sector makes owning an ex-government entity risky.
    • A handful of Indian capitalists who are already at the helm of oligopolies may be in a position — financially and politically — to buy the big PSUs.
    • If they were allowed to grow even more by acquiring public entities, sectors of the economy would be under the influence of quasi-monopolies.
    • This could foster crony capitalism and may even result in the making of oligarchs.

    Where else can the government find the money it needs?

    1. Increasing tax and duties on fuel

    • Government has already increased the excise duty on petrol and diesel by Rs 3 per litre — the steepest hike since 2012.
    • The government imposed additional taxes while global crude oil prices fell.
    • As oil prices can only go up after the last round of negotiations between Russia and Saudi Arabia, the Indian government will not be in a position to use this source of revenue again.
    • Such a move would contradict the very idea of a relief and stimulus package anyway. Why?
    • An increase in the excise duty or tax would affect purchasing power, when the package is supposed to help the poor and to boost demand.
    • Low demand and lowest investment rate:  Even before the present crisis, industrialists complained that 25 per cent of their productive capacity was idle.
    • And that’s why their investment rate had never been this low, in the 21st century at least.

    2. Borrowing money and issues with it

    • Even if some privatisation helps India financially, it seems that the country will need to borrow money.
    • External borrowing, however, is problematic. There are three issues with external borrowing-
    • 1) The only way governments pay back external borrowings is by wisely using borrowed capital to drive high GDP growth and generating revenues.
    • Which is unlikely to happen any time soon as a recession is round the corner.
    • 2) The rupee is at its lowest level compared to the US dollar.
    • Any more devaluation will only make it harder for the government to pay back its debt.
    • Since external borrowings must be paid back in borrowed currency, exports and foreign reserves or gold reserves are generally the only two reliable options.
    • The third one being borrowing more to pay back the previous debts — a slippery slope to pay government debt.
    • However, India should account for the inevitable global slump in international demand and a consequent drop in its exports.
    • Other countries may also move towards “atmanirbharta” and over-regulate imports.
    • 3)  Indian industries are already a bit debt-laden.
    • Following factors compelled industries to resort to overseas borrowing-
    • i)The risk in the banking sector, tight liquidity in debt markets,
    • ii) Comparatively lower international borrowing rates
    • iii) The RBI’s ECB rationalising measures.
    • More overseas borrowing, combined with the industry’s high debt status, could lead to rating agencies downgrading India’s investment prospects — deterring foreign investments in the process.

    3. Foreign reserves and other options

    • On the positive side, India’s foreign reserves stand at an all-time high which could be strategically used to finance its needs.
    • The rest may have to come from privatisation, taxation, loans and more international aid.
    • Already, India is receiving more funds from the World Bank, the ADB and the Japanese ODA.
    • India may help others, but it needs aid too.

    Consider the question- “The government had to declare the relief and stimulus package in the wake of corona crisis. This expenditure leads to budgetary gaps. What are the options with the government to close this gap? Examine the issues associated with these options.”

    Conclusion

    The government must weigh each option with due consideration and explore all the possible avenues. Options like privatisation or borrowing must be exercised with caution. As these decisions could have severe consequences for the economy in the future.

     

     

     

     

     

     

     

  • Terrorism and Challenges Related To It

    Terrorism and its ideologies

    Pakistan is a unique country in the sense that it is both a victim and the perpetrator of terrorism. This article explains the situations which made Pakistan home to the terrorism. So, why some terrorist organisations turned against Pakistan? What are the ideologies followed by various terrorist organisation and how it makes a difference in their functioning? Read to know…

    Terrorism paradox of Pakistan: Both Victim and perpetrator

    • This Terrorism paradox can be traced to the deliberate policy of the Pakistani state to create and foster terrorist groups in order to engage in low-intensity warfare with its neighbours.
    • Pakistan first operationalised this strategy in regard to Afghanistan in 1973.
    • And intensified it with the cooperation of the U.S. and Saudi Arabia after the Marxist coup of 1978 after which USSR entered Afghanistan.

    Soviet withdrawal and rise in insurgency in Kashmir

    • The Soviet withdrawal in 1989 left the Pakistani military with a large surplus of Islamist fighters that it had trained and armed.
    • Islamabad decided to use this “asset” to intensify the insurgency in the Kashmir Valley.

    Radicalisation of Pakistani population

    • The decade-long Afghan “jihad” in Afghanistan had also radicalised a substantial segment of the Pakistani population.
    • Radicalisation was intense in the North-West Frontier Province and Punjab.
    • Sectarian divisions were also on the rise not only between Sunnis and Shias but also among various Sunni sects.
    • The division was intense between two Sunni sects-the puritanical Deobandis and the more syncretic and Sufi-oriented Barelvis.
    • In the process, a number of homegrown terrorist groups emerged that the Pakistan Army co-opted for its use in Kashmir and the rest of India.
    • But, it soon became clear that Pakistan had created a set of Frankenstein’s monsters some of whom turned against their creator.
    • The Musharraf government, under American pressure, decided to collaborate with the latter in the overthrow of the Taliban regime in Afghanistan.
    • This resulted in some of the terrorist organisation turning against Pakistan.

    Monsters who don’t spare even its creator

    • The Tehreek-e-Taliban Pakistan (TTP), which has ideological affinity with the Afghan Taliban.
    • The TTP and its affiliates have fought pitched battles with the Pakistan Army in the Federally-Administered Tribal Areas (FATA) and parts of the NWFP.
    • Also, the Jaish-e-Mohammad (JeM) has not hesitated to launch terrorist attacks on targets within Pakistan as well, especially against the Shias and Sufi shrines.

    Did all terrorist organisation turn against Pakistan?

    • No!
    • Consider the case of ‘loyalist’ LeT.
    • Lashkar-e-Taiba (LeT), is a classic example of a “loyalist” terrorist organisation that has played by the rules set by the Pakistani military.
    • It only launches attacks on targets outside Pakistan, primarily in India.
    • As the evidence in the case of the Mumbai carnage of 2008 clearly indicates LeT operations are coordinated with the Inter-Services Intelligence (ISI).
    • ISI provides it with intelligence and logistical support in addition to identifying specific targets.
    • This is why the LeT and its front organisations have continued to receive the military’s patronage and unstinting support.
    • Consequently, its leader, Hafiz Saeed, was until recently provided protection by the Pakistani state.

    Ideological differences

    • Both the LeT and the Jaish-e-Mohammed (JeM) have been engaged in attacks on Indian targets identified by Pakistan’s ISI.
    • The difference between LeT and JeM lies in the fact that while the LeT is more pragmatic and less ideological.
    • The JeM is highly ideological and sectarian.
    • JeM draws its ideological inspiration from a very extreme form of Deobandi puritanism.
    • That extreme form considers all those who do not believe in its philosophy beyond the pale of Islam.
    • For many JeM diehards, these include not only Shias and Barelvis but also the Pakistani state and the Pakistani military.
    • LeT on the other hand does not consider Muslims of different theological orientations as non-believers and therefore legitimate targets of attack.
    • This relatively “liberal” interpretation is related to the fact that LeT draws its ideological inspiration from the sect called the Ahl-e-Hadis, which composes only a small proportion of Pakistan’s Muslim population and cannot afford to engage in sectarian conflict.
    • Moreover, it draws its membership from different Muslim sects including the Sufi-oriented Barelvis and the puritanical Deobandis.
    • Both these factors drive LeT toward greater tolerance in sectarian terms and to eschew intra-Islamic theological battles.
    • Its primary goals are political; above all, driving India out of Kashmir.
    • This jells well with the objectives of the Pakistani military and makes LeT and Hafiz Saeed, favourites of the Pakistani establishment.

    Consider the question asked by UPSC in 2017-“The scourge of terrorism is a grave challenge to national security. What solution do you suggest to curb this growing menace? What are the major sources of terrorist funding?

    Conclusion

    The fact that using terrorist outfits for state objectives is a highly risky business whose blowback cannot be predicted and can have very negative consequences for the stability of the state itself.

     

  • The Crisis In The Middle East

    Israel swears in ‘Unity Government’

    Israel’s Parliament swore in its new unity government led by PM Netanyahu and his former rival Benny Gantz, ending the longest political crisis in their nation’s history.

    The strategic location of Gaza strip, West Bank, Dead Sea etc. creates a hotspot for a possible map based prelims question.  Consider this PYQ from 2015 CSP:

    Q. The area known as ‘Golan Heights’ sometimes appears in the news in the context of the events related to:

    a) Central Asia
    b) Middle East
    c) South-East Asia
    d) Central Africa

    What is a Unity Government?

    • A national unity government, government of national unity (GNU), or national union government is a broad coalition government consisting of all parties (or all major parties) in the legislature.
    • Such a coalition is usually formed during a time of war or another national emergency.
    • A general coalition government is a form of government in which political parties cooperate, reducing the dominance of any one party within that “coalition”.

    Practice question for mains:

    Q. Discuss the role and significance of Leader of Opposition and the Opposition Party and their constructive criticism in a Parliamentary form of government.

    What is the Israeli deal?

    • Israel’s unity government starts work amid the coronavirus pandemic and after a political crisis that saw three inconclusive elections and left the country in political limbo for more than 500 days.
    • The coalition government was agreed last month between veteran right-wing leader Netanyahu and the centrist Gantz, a former army chief.
    • The incoming government has aimed to apply Israeli sovereignty over West Bank settlements.
    • The govt. now aims to push on with controversial plans to annex large parts of the occupied West Bank.

    Significance

    • Netanyahu said that it’s time to apply the Israeli law and write another glorious chapter in the history of Zionism citing the issue of Jewish settlements in the occupied Palestinian territory.
    • Such a move is seen likely to cause international uproar and inflame tensions in the West Bank.
    • The region is home to nearly three million Palestinians and some 400,000 Israelis living in settlements considered illegal under international law.

    Back2Basics

    West Bank Annexation plans

    U.S. Secretary of State Mike Pompeo met Israeli PM Benjamin Netanyahu to discuss plans to annex parts of the West Bank.

    The strategic location of Gaza strip, West Bank, Dead Sea etc. creates a hotspot for a possible map based prelims question.  Consider this PYQ from 2015 CSP:

    Q. The area known as ‘Golan Heights’ sometimes appears in the news in the context of the events related to:

    a) Central Asia
    b) Middle East
    c) South-East Asia
    d) Central Africa

    Where is West Bank Located?

    • The West Bank is located to the west of the Jordan River.
    • It is a patch of land about one and a half times the size of Goa, was captured by Jordan after the 1948 Arab-Israeli War.
    • Israel snatched it back during the Six-Day War of 1967 and has occupied it ever since.
    • It is a landlocked territory, bordered by Jordan to the east and Israel to the south, west, and north.
    • Following the Oslo Accords between the Israeli government and the Palestine Liberation Organization (PLO) during the 1990s, part of the West Bank came under the control of the Palestinian Authority.
    • With varying levels of autonomy, the Palestinian Authority controls close to 40 percent of West Bank today, while the rest is controlled by Israel.

    Back2Basics: Gaza Strip

    • The Gaza Strip is a small boot-shaped territory along the Mediterranean coast between Egypt and Israel.
    • A couple of years later in 2007, Hamas, an anti-Israel military group, took over Gaza Strip. The militia group is often involved in violent clashes with the Israeli Defence Forces.
    • While Palestine has staked claim to both territories — West Bank and Gaza Strip — Israel’s objective has been to keep expanding Jewish settlements in these regions.
  • Citizenship and Related Issues

    Overseas Citizenship of India (OCI) Visa Issue

    In a bid to allay fears of the OCI cardholders over the temporary suspension of their long-term visas, the Ministry for External Affairs has said the government will soon take an appropriate decision.

    UPSC may ask a statement based question in prelims considering various privileges of the OCI cardholders.

    What is the issue?

    • A large number of Indian citizens whose children are OCI cardholders and several people of Indian-origin having the card are unable to travel to India, even for emergency reasons, because of the temporary suspension of their long-term visa.

    Who is an Overseas Citizen?

    • An OCI is a category introduced by the government in 2005.
    • Persons of Indian Origin (PIOs) of certain categories as specified in the Citizenship Act, 1955 are eligible for being OCI cardholders.
    • Some of the benefits for PIO and OCI cardholders were different until 2015 when the government merged these two categories.
    • The MHA defines an OCI as a person who was a citizen of India on or after January 26, 1950; or was eligible to become a citizen of India on that date; or who is a child or grandchild of such a person, among other eligibility criteria.
    • According to Section 7A of the OCI card rules, an applicant is not eligible for the OCI card if he, his parents or grandparents have ever been a citizen of Pakistan or Bangladesh.

    Privileges to an OCI

    • OCI cardholders can enter India multiple times, get a multipurpose lifelong visa to visit India, and are exempt from registering with Foreigners Regional Registration Office (FRRO) no matter how long their stay.
    • If an individual is registered as an OCI for a period of five years, he/she are eligible to apply for Indian citizenship.
    • At all Indian international airports, OCI cardholders are provided with special immigration counters.
    • OCI cardholders can open special bank accounts in India, they can buy the non-farm property and exercise ownership rights and can also apply for a driver’s license and PAN card.
    • However, OCI cardholders do not get voting rights, cannot hold a government job and purchase agricultural or farmland.
    • They cannot run for public office either, nor can they travel to restricted areas without government permission.

    Back2Basics

    https://www.civilsdaily.com/news/explained-how-an-indian-citizen-is-defined/

  • J&K – The issues around the state

    Jammu and Kashmir notifies amended domicile certificate rules

    The J&K administration has notified the J&K grant of domicile certificate procedure rules 2020 and set a fast track process in motion to issue the certificates within a stipulated time of 15 days.

    Practice mains question:

    Discuss how the new domicile rules for the UT of Jammu and Kashmir would enable its full integration with the mainstream India.

    New domicile rules

    • Domicile certificates have now been made a basic eligibility condition for appointment to any post under the Union Territory of J&K following the amendments in the previous Act.
    • These rules provide a simple time-bound and transparent procedure for issuance of domicile certificates in such a manner that no category of person is put to any inconvenience.
    • There is a timeline of 15 days for issuance of certificates. Under the amended rules, eligible non-locals can also apply for the certificate.
    • To make the process transparent and time-bound, any officer not able to issue the certificate would be penalized ₹50,000. The amount would be recovered from his salary.
    • The new process will allow West Pakistan refugees, safai karamcharis and children of women who married non-locals to apply for jobs here.

    Who can avail the domicile certificates?

    • All Permanent Resident Certificate holders and their children living outside J&K can apply for the certificates.
    • Kashmiri migrants living in or outside J&K can get domicile certificates by simply producing their Permanent Residence Certificate (PRC), ration card copy, voter card or any other valid document.
    • A special window is also provided to migrants who have not registered with the Relief and Rehabilitation department.
    • Bonafide migrants can apply with the Relief and Rehabilitation department by providing documents like electoral rolls of 1988, proof of registration as a migrant in any State in the country or any other valid document.

    Earlier Criteria for Domiciles

    Satisfying any of the criteria mentioned below, a person would be deemed as a domicile of the UT of Jammu and Kashmir:

    • A person who has resided for a period of 15 years in the UT of J&K or
    • A person who has studied for a period of seven years and appeared in Class 10th/12th examination in an educational institution located in the UT of J&K
    • Someone who is registered as a migrant by the Relief and Rehabilitation Commissioner (Migrants)
    • Children of Central government officials, All India Services, PSUs, autonomous body of Centre, Public Sector Banks, officials of statutory bodies, Central Universities, recognised research institutes of Centre who have served in J&K for a total period of 10 years
    • Children of such residents of J&K who reside outside J&K in connection with their employment or business or other professional or vocational reasons but their parents fulfil any of the conditions provided

    Job criteria for new domiciles

    • The domiciles will be eligible for the purposes of appointment to any post carrying a pay scale of not more than Level 4.
    • The Level 4 post comprises positions such as gardeners, barbers, office peons and waterman and the highest rank in the category is that of a junior assistant.
    • The reservation for domiciles would not apply to Group A and Group B posts, and like other UTs, recruitment would be done by the UPSC.

    Must read:

    [Burning Issues] J&K New Domicile Rules

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