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  • Direct Benefits Transfers

    How would Direct Benefit Transfer (DBT) of power subsidy work?

    30 May 2020 | | Governance
    Mains Paper 2: Government Scheme/Policies

    Context

    • Punjab has been providing free power to the agriculture sector.
    • The new Electricity Amendment Bill 2020 has proposed providing subsidy on power to farmers through DBT, which is contrary to the prevailing ‘free power’ system in Punjab.

    Free or subsidised power is being provided to millions of consumers in almost every state. Punjab is no exception but its free power scheme is. Other states can learn from the example of Punjab, here.

    Practice questions for mains:

    Q. Discuss the efficacy of Direct Benefit Transfer in power subsidy for farmers.

    Punjab on knees

    • Before it submits suggestions regarding the Electricity Amendment Bill 2020, recently drafted by the Union Power Ministry to amend the Electricity Act 2003, a big challenge lies ahead for the Punjab government.
    • Under the garb of DBT, it is a move to stop the free power supply to them.

    What is the current system of power subsidy for farmers in Punjab?

    • At present, Punjab is supplying free power to 14.16 lakh electricity-run tubewells of the agriculture sector which are getting power through 5,900 Agricultural Pumpset Feeders (APFs).
    • These APFs are metered and the Punjab Power Corporation charges the state government for consumed units recorded in metered APFs.

    The Free Power Scheme

    • Farmers are getting power supply for their Kharif and Rabi crops from these feeders as per the recommendations of the Punjab Agriculture University (PAU), Ludhiana.
    • It is supplied for around eight hours every day in Kharif season and four hours on alternate days during Rabi crop season.
    • The state government pays around Rs 6,000 crore power subsidy bill to Power Corporation every year under the scheme to the farming sector.

    What would change under the DBT allowed under the new Electricity Bill 2020?

    • Under DBT, farmers will have to pay the bill for the power consumed for agriculture purposes.
    • After that, they will get the subsidy in their bank accounts through DBT.
    • A meter would be installed on every individual tubewell.

    Issues with Punjab farmer

    • Approximately the annual power bill will come to around Rs 46,000 to Rs 48,000, and farmers are required to pay a bill of Rs 4,000 per month.
    • In Punjab, 67 per cent of farmers come under the small and marginal categories with 1-2 hectares land.
    • Paying bills in advance is not possible for them due to debt.
    • If farmers don’t pay their bills, the department will disconnect their connection, which could lead to farmers’ agitation.

    Can it work like DBT on LPG gas cylinders?

    • The bill suggests the subsidy be paid directly to consumers in cash on the pattern of LPG subsidy.
    • This proposal should be tried in a pilot project and if results are encouraging, only then it should be included in the amendment bill.
    • It is not feasible to provide meters on every pump set up across the country and then give cash subsidy every month after the consumer has paid the bill.

    Punjab government’s own DBT scheme titled ‘Paani Bachao Paisa Kamao’ is also working here. How it is different from DBT under the new Bill?

    • The Punjab government’s scheme is a voluntary one.
    • The farmers who have adopted it need to get install a power meter on their tubewell but are not required to pay any power bill.
    • The main purpose of PBPK is to save groundwater by using it judiciously because, under the traditional system, several farmers are misusing the water by over-irrigating the crops due to free power available to them.

    What do farmers’ organisations think of this?

    • Farmers’ organisations say that if the Punjab government agrees to this bill, they will fight it tooth and nail.
    • From where will poor farmers pay such heavy bills when they get an income after six months following the sale of their crop, they ask.
    • Anywhere in the world, the agrarian sector cannot run without the support of the government as it is the base of every human being who is dependent on farmers’ produce from his/her morning tea to dinner.

    Back2Basics

    [pib] Draft Electricity Act (Amendment) Bill, 2020

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  • Electoral Reforms In India

    Delimitation Commission for NE states and UTs

    30 May 2020 | | Governance
    Mains Paper 2: Representation Of People’s Act

    Lok Sabha speaker has nominated 15 MPs to assist the Delimitation Commission in redrawing the Lok Sabha and the Assembly constituencies of the northeastern states and the Union Territories.

    Practice question for mains:

    Q. What is the Delimitation of Constituencies? Discuss its significance.

    What is Delimitation? Why is it needed?

    • Delimitation is the act of redrawing boundaries of Lok Sabha and state Assembly seats to represent changes in population.
    • In this process, the number of seats allocated to different states in Lok Sabha and the total number seats in a Legislative Assembly may also change.
    • The main objective of delimitation is to provide equal representation to equal segments of a population.
    • It also aims at a fair division of geographical areas so that one political party doesn’t have an advantage over others in an election.

    Legal status

    • Delimitation is carried out by an independent Delimitation Commission (DC).
    • The Constitution mandates that its orders are final and cannot be questioned before any court as it would hold up an election indefinitely.

    How is delimitation carried out?

    • Under Article 82, the Parliament enacts a Delimitation Act after every Census.
    • Once the Act is in force, the Union government sets up a DC made up of a retired Supreme Court judge, the Chief Election Commissioner and the respective State Election Commissioners.
    • The Commission is supposed to determine the number and boundaries of constituencies in a way that the population of all seats, so far as practicable, is the same.
    • The Commission is also tasked with identifying seats reserved for Scheduled Castes and Scheduled Tribes; these are where their population is relatively large.
    • All this is done on the basis of the latest Census and, in case of difference of opinion among members of the Commission, the opinion of the majority prevails.

    Implementation

    • The draft proposals of the DC are published in the Gazette of India, official gazettes of the states concerned and at least two vernacular papers for public feedback.
    • The Commission also holds public sittings.
    • After hearing the public, it considers objections and suggestions, received in writing or orally during public sittings, and carries out changes, if any, in the draft proposal.
    • The final order is published in the Gazette of India and the State Gazette and comes into force on a date specified by the President.

    How often has delimitation been done in the past?

    • The first delimitation exercise in 1950-51 was carried out by the President (with the help of the Election Commission).
    • The Constitution at that time was silent on who should undertake the division of states into Lok Sabha seats.
    • This delimitation was temporary as the Constitution mandated redrawing of boundaries after every Census. Hence, delimitation was due after the 1951 Census.

    Why more independence to DC?

    • Pointing out that the first delimitation had left many political parties and individuals unhappy, the EC advised the government that all future exercises should be carried out by an independent commission.
    • This suggestion was accepted and the DC Act was enacted in 1952.
    • DCs’ has been set up four times — 1952, 1963, 1973 and 2002 under the Acts of 1952, 1962, 1972 and 2002.
    • There was no delimitation after the 1981 and 1991 Censuses.

    Why postponed till 2026?

    • Although the freeze on the number of seats in Lok Sabha and Assemblies should have been lifted after the 2001 Census, another amendment postponed this until 2026.
    • This was justified on the ground that a uniform population growth rate would be achieved throughout the country by 2026.
    • So, the last delimitation exercise — started in July 2002 and completed on May 31, 2008 — was based on the 2001 Census and only readjusted boundaries of existing Lok Sabha and Assembly seats and reworked the number of reserved seats.

    Back2Basics: History of Delimitation in J&K

    • Delimitation of J&K’s Lok Sabha seats is governed by the Indian Constitution, but the delimitation of its Assembly seats (until special status was abrogated recently) was governed separately by its Constitution and J&K Representation of the People Act, 1957.
    • As far as the delimitation of Lok Sabha seats is concerned, the last DC of 2002 was not entrusted with this task. Hence, J&K parliamentary seats remain as delimited on the basis of the 1971 Census.
    • As for Assembly seats, although the delimitation provisions of the J&K Constitution and the J&K RP Act, 1957, are similar to those of the Indian Constitution and Delimitation Acts.
    • They mandate a separate DC for J&K. In actual practice, the same central DC set up for other states was adopted by J&K in 1963 and 1973.
    • While the amendment of 1976 to the Indian Constitution suspended delimitation in the rest of the country till 2001, no corresponding amendment was made to the J&K Constitution.
    • Hence, unlike the rest of the country, the Assembly seats of J&K were delimited based on the 1981 Census, which formed the basis of the state elections in 1996.
    • There was no census in the state in 1991 and no DC was set up by the state government after the 2001 Census as the J&K Assembly passed a law putting a freeze on fresh delimitation until 2026.

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

    ‘Rozgar Setu’ Scheme for skilled workers

    30 May 2020 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    The Madhya Pradesh has announced the launch of the ‘Rozgar Setu’ Scheme to help secure employment for skilled workers who have returned.

    State schemes are quite often seen in the news. They are very important from the prelims perspective:

    Rytha Bandu (Telangana): Cash transfer scheme of Rs 5,000/acre, per season

    KALIA (Krushak Assistance for Livelihood and Income Augmentation) Scheme (Odisha)

    Mukhya Mantri Krishi Aashirwad Yojana (Jharkhand)

    Krishak Bandhu Scheme (West Bengal)

    ‘Rozgar Setu’ Scheme

    • The ‘Rozgar Setu’ scheme to provide work to the maximum number of returned skilled workers.
    • After such workers requiring employment are identified, the government will contact factory and workshop owners and contractors overseeing infrastructure projects such as road and bridge construction.
    • This would fulfil the manpower requirement of industries as well as provide employment to workers during the COVID-19 pandemic.

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Expansion of the Amery Ice Shelf

    30 May 2020 | | Environment
    Mains Paper 1: Important Geophysical Phenomena

     

    There would be a 24% increase in the expansion of the Amery Ice Shelf (AIS) boundaries in Antarctica by 2021 and another 24 per cent by 2026 from its 2016 positions, the National Centre for Polar and Ocean Research (NCPOR) in Goa has predicted.

    Practice question for mains:

    Q. Discuss the interrelation between Cryosphere and Climate change in context to the melting ice shelves in the Antarctic region.

    Amery Ice Shelf (AIS)

    • The Amery Ice Shelf is a broad ice shelf in Antarctica at the head of Prydz Bay between the Lars Christensen Coast and Ingrid Christensen Coast.
    • It is part of Mac. Robertson Land.
    • The name “Cape Amery” was applied to a coastal angle mapped on February 11, 1931.
    • The AIS is one of the largest glacier drainage basins in the world, located on the east coast of Antarctica, at about 70ºS Latitude, 70ºE Longitude.
    • The AIS dynamics and mass balance help in understanding the changes in the global climate scenario.

    Significance of the study

    • NCPOR observations revealed a critical cooling of the sea surface temperature, resulting in an advancement of the ice shelf by 88 per cent in the past 15 years.
    • These changes would contribute in a major way to climate variability.
    • The study clearly demonstrated the future dynamism of ocean heat fluctuation and Antarctic Amery ice shelf mass shifting-extent.

    Back2Basics: Ice Shelves

    • The floating sheets of ice called ‘ice shelves’ play a multi-faceted role in maintaining the stability of a glacier. Ice shelves connect a glacier to the landmass.
    • The ice sheet mass balance, sea stratification, and bottom water formation are important parameters for the balancing of a glacier. Latent and sensible heat processes do play important roles here.
    • The insulation of ice shelves from atmospheric forcing is dependent on a temperature gradient that the ocean cavity beneath the ice shelves provides.
    • It is the pressure exerted by the ice shelves upon the ocean cavity that determines this temperature gradient.

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  • Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

    Missile Park ‘AGNEEPRASTHA’

    30 May 2020 | | Internal Security
    Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Foundation Stone for a Missile Park “AGNEEPRASTHA” was recently laid at INS Kalinga, Vizag.

    Caution: Agneeprastha is a missile park of the eastern naval command of the Indian Navy. It has nothing to do with the Agni missiles.

    Missile Park ‘Agneeprastha’

    • ‘Agneeprastha’ aims to capture glimpses of Missile History of INS Kalinga since 1981 till date.
    • The Missile Park has been set up with a replica of missiles and Ground Support Equipment (GSE) that showcase the evolution of missiles handled by the unit.
    • The exhibits have been created from scrap / obsolete inventory which have been reconditioned in-house.
    • The main attraction is P-70 ‘Ametist’, an underwater launched anti-ship missile from the arsenal of the old ‘Chakra’ (Charlie-1 submarine) which was in service with IN during 1988-91.
    • It will also provide a one-stop arena for motivation and stimulation of inquisitive minds regarding the missiles and related technologies, from school children to naval personnel and their families.

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  • New Species of Plants and Animals Discovered

    Species in news: Amaltas or Indian Laburnum

    30 May 2020 | Prelims Only | Environment
    Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    The Amaltas or Indian laburnum has begun blooming this summer.

    Try this PYQ from CSP 2018:

    Q. Why is a plant called Prosopis juliflora often mentioned in news?

    (a) Its extract is widely used in cosmetics.

    (b) It tends to reduce the biodiversity in the area in which it grows

    (c) Its extract is used in the pesticides.

    (d) None of the above

    Amaltas Tree

    • The Amaltas (Cassia fistula linn), native to South-East Asia is one of the most widespread trees in India and South-East Asia, with their presence both in cities as well as in moist and dry forests.
    • It has drooping clusters of bright fragrant yellow flowers with five petals and characteristic cylindrical fruits.
    • The Amaltas is known by so many names — Indian Laburnum, Golden Shower, Purging Fistula, Pudding-pipe tree, Girmala, Rajbrikh, Alash, Kiar, Kirwara, Ali — showing us how common and loved it is.
    • It is both the national tree and the national flower of Thailand and is also the state flower of Kerala.

    Features of Amaltas

    • This middle-sized deciduous tree is leafless only for a brief time, between March and May.
    • The new leaves are glossy, a trait that they lose on maturing, and are mostly bright green, though sometimes a rich copper too.
    • It flowers from April to June, partly alongside the emergence of new leaves, but it’s not uncommon to find the Amaltas in flower as late as September.
    • The bark is yellowish at first, slowly coarsens with age and turning dark grey.

    Significance

    • The tree is mostly known to be ornamental and few know of its benefits as a medicinal plant, and one that’s loved by some mammals, bees, and butterflies.
    • The bark is used to make dye and the pulp in the fruit pod also serves as a strong purgative agent, which also helps animals that feed on it.
    • A medicinal preparation with the roots of the tree is used to cure leprosy and skin diseases and the leaves are used to get rid ulcers, in traditional medicine.

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  • Foreign Policy Watch: India-Nepal

    For a reset in India-Nepal relations

    29 May 2020 | | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Over the past few years, we have been  witness to the deteriorating India-Nepal relations. Reserves of goodwill which India had accumulated is fast depleting in Nepal. The latest issue over the map is a new addition to the decline in relations. This article stresses the need for political maturity to find the solution to the complex issue of the underlying problem.

    Need for the fundamental reset in relations between Indian and Nepal

    • The immediate provocation for the contention is the long-standing territorial issue surrounding Kalapani.
    • It is a patch of land near the India-Nepal border, close to the Lipulekh Pass on the India-China border.
    • However, the underlying reasons are far more complex.
    • Yet, Nepali Prime Minister K.P. Sharma Oli’s exploitation of the matter, by raising the banner of Nepali nationalism and painting India as a hegemon, is part of a frequent pattern.
    • Which indicates that relations between the two countries need a fundamental reset.

    Let’s look at the historical background of the India-Nepal border

    • India inherited the boundary with Nepal, established between Nepal and the East India Company in the Treaty of Sugauli in 1816.
    • Kali river constituted the boundary, and the territory to its east was Nepal.
    • The dispute relates to the origin of Kali.
    • Near Garbyang village in Dharchula Tehsil of the Pithoragarh district of Uttarakhand, there is a confluence of different streams coming from north-east from Kalapani and north-west from Limpiyadhura.
    • The early British survey maps identified the north-west stream, Kuti Yangti, from Limpiyadhura as the origin.
    • But after 1857 changed the alignment to Lipu Gad, and in 1879 to Pankha Gad, the north-east streams, thus defining the origin as just below Kalapani.
    • Nepal accepted the change and India inherited this boundary in 1947.

    More past events dealing with the LIpulech pass

    • The Maoist revolution in China in 1949, followed by the takeover of Tibet, created deep misgivings in Nepal.
    • So, India was ‘invited’ by Nepal to set up 18 border posts along the Nepal-Tibet border.
    • The westernmost post was at Tinkar Pass, about 6 km further east of Lipulekh.
    • In 1953, India and China identified Lipulekh Pass for both pilgrims and border trade. After the 1962 war, pilgrimage through Lipulekh resumed in 1981, and border trade, in 1991.
    • In 1961, King Mahendra visited Beijing to sign the China-Nepal Boundary Treaty that defines the zero point in the west, just north of Tinkar Pass.
    • By 1969, India had withdrawn its border posts from Nepali territory.
    • The base camp for Lipulekh remained at Kalapani, less than 10 km west of Lipulekh.
    • In their respective maps, both countries showed Kalapani as the origin of Kali river and as part of their territory.
    • After 1979, the Indo-Tibetan Border Police has manned the Lipulekh Pass.

    So, when was the issue of the origin of Kali river raised?

    • After the 1996 Treaty of Mahakali -Kali river is also called Mahakali/Sarada further downstream-the issue of the origin of Kali river was first raised in 1997.
    • The matter was referred to the Joint Technical Level Boundary Committee that had been set up in 1981 to re-identify and replace the old and damaged boundary pillars along the India-Nepal border.
    • The Committee clarified 98% of the boundary, leaving behind the unresolved issues of Kalapani and Susta when it was dissolved in 2008.
    • It was subsequently agreed that the matter would be discussed at the Foreign Secretary level.
    • Meanwhile, the project to convert the 80-km track from Ghatibagar to Lipulekh into a hardtop road began in 2009 without any objections from Nepal.

    Objections raised by Nepal to the new map released by India

    • The Survey of India issued a new political map (eighth edition) on November 2, 2019, to reflect the change in the status of Jammu and Kashmir as two Union Territories.
    • Nepal registered a protest though the map in no way had changed the boundary between India and Nepal.
    • However, on November 8, the ninth edition was issued.
    • The delineation remained identical but the name Kali river had been deleted.
    • Predictably, this led to stronger protests, with Nepal invoking Foreign Secretary-level talks to resolve issues.

    New map released by Nepal and issues with it

    • A new map of Nepal based on the older British survey reflecting Kali river originating from Limpiyadhura in the north-west of Garbyang was adopted by parliament and notified on May 20.
    • On May 22, a constitutional amendment proposal was tabled to include it in a relevant Schedule.
    • The new alignment adds 335 sq km to Nepali territory, territory that has never been reflected in a Nepali map for nearly 170 years.

    Following issue explains why there is need for rewriting the fundamental of India-Nepal relations

    1. Nepali nationalism is being equated to anti-Indianism

    • Prime Minister Narendra Modi has often spoken of the “neighbourhood first” policy.
    • But the relationship took a nosedive in 2015 when India first got blamed for interfering in the Constitution-drafting in Nepal.
    • And then for an “unofficial blockade” that generated widespread resentment against the country.
    • It reinforced the notion that Nepali nationalism and anti-Indianism were two sides of the same coin.

    2. China factor

    • In Nepali thinking, the China card has provided them the leverage to practise their version of non-alignment.
    • In the past, China maintained a link with the Palace and its concerns were primarily related to keeping tabs on the Tibetan refugee community.
    • With the abolition of the monarchy, China has shifted attention to the political parties as also to institutions like the Army and Armed Police Force.
    • Also, today’s China is pursuing a more assertive foreign policy and considers Nepal an important element in its growing South Asian footprint.

    3. India has ignored the changing political narrative for long

    • The reality is that India has ignored the changing political narrative in Nepal for far too long.
    • India remained content that its interests were safeguarded by quiet diplomacy even when Nepali leaders publicly adopted anti-Indian postures.
    • Long ignored by India, it has spawned distortions in Nepali history textbooks and led to long-term negative consequences.
    • For too long India has invoked a “special relationship”, based on shared culture, language and religion, to anchor its ties with Nepal.
    • Today, this term carries a negative connotation — that of a paternalistic India that is often insensitive and, worse still, a bully.
    • The 1950 Treaty of Peace and Friendship which was sought by the Nepali authorities in 1949  is viewed as a sign of an unequal relationship, and an Indian imposition.
    • The purpose of the treaty was to continue the special links Nepal had with British India and it  provides for an open border and right to work for Nepali nationals
    • Yet, Nepali authorities have studiously avoided taking it up bilaterally even though Nepali leaders thunder against it in their domestic rhetoric.

    Consider the question, “Examine the issues that have been testing the old ties between India and Nepal.”

    Conclusion

    The urgent need today is to pause the rhetoric on territorial nationalism and lay the groundwork for a quiet dialogue where both sides need to display sensitivity as they explore the terms of a reset of the “special relationship”. A normal relationship where India can be a generous partner will be a better foundation for “neighbourhood first” in the 21st century.

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  • Foreign Policy Watch: India-Africa

    Deepening India’s engagement with Africa amid pandemic

    29 May 2020 | op-ed snap | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Long thought to be the backwater of the world, Africa has been successful in shading its past image and emerge on the global stage as region hard to ignore. And countries across the world are vying to increase their engagement with the region. This article examines the scope for increasing the ties with the region amid the pandemic.

    India’s association with African Union

    • Africa Day is observed every year on May 25 to commemorate the founding of the Organisation of African Unity, now known as the African Union.
    • India has been closely associated with it on account of its shared colonial past and rich contemporary ties.
    • The Manohar Parrikar Institute for Defence Studies and Analyses has hosted an Africa Day Round Table annually for the last four years in order to commemorate this epochal event.

    Economy and pandemic

    • The World Bank in its April report, assessed that the COVID-19 outbreak has sparked off the Sub-Saharan Africa (SSA) region’s first recession in 25 years.
    • Growth is expected to plummet to between -2.1 and -5.1 per cent in 2020, from a modest 2.4 per cent in 2019.
    • With high rates of HIV, malaria, diabetes, hypertension and malnourishment prevalent, a large number of Africans were already faced with a health and economic crisis.
    • The steep decline in commodity prices has spelt disaster for the economies of Nigeria, Zambia and Angola.

    Need for financial support

    • Precarious fiscal positions have ruled out any major governmental stimulus.
    • Public debt has mounted.
    • According to the World Bank, the SSA region paid $35.8 billion in total debt service in 2018.
    • Which is 2.1 per cent of regional gross domestic product (GDP).
    • Together, African countries have sought a $100 billion rescue package.
    • This rescue package includes a $44 billion waiver of interest payment by the world’s 20 largest economies.
    • The IMF’s debt service relief of $500 million is meant for 25 countries of which 19 are in Africa, but that is a drop in the bucket.
    • It is clear that without outside support, Africa will find it very difficult to meet the challenge.

    Why the increased interest in engagement with Africa?

    • Africa’s rich natural resources, long-term economic potential, youthful demography and influence as a bloc of 54 countries in multi-lateral organisations is apparent.
    • Many have an eye for economic opportunities, including in energy, mining, infrastructure and connectivity. 
    • Japan hosted the 7th Tokyo International Conference for African Development (TICAD) in August 2019.
    • Russia hosted the first-ever Russia-Africa Summit last year.
    • Brazil, home to the largest population of people of African descent outside of Africa, has also sought to develop closer ties.
    • Cuba has sent medical teams to help Africa.

    Chinese Bonhomie with the region

    • China’s engagement of Africa, as elsewhere, is huge but increasingly regarded as predatory and exploitative.
    • Its annual trade with Africa in 2019 stood at $208 billion, in addition to investments and loans worth $200 billion.
    • Traditionally, China’s participation in infrastructure projects has been astonishing.
    • Having famously built the 1,860 km Tanzania-Zambia railway line in 1975, and the Addis Ababa-Djibouti and Mombasa-Nairobi lines more recently, China is now eyeing to develop the vast East Africa Master Railway Plan.
    • It is also developing the Trans-Maghreb Highway, the Mambilla Hydropower Plant in Nigeria, the Walvis Bay Container Terminal in Windhoek and the Caculo Cabaca Hydropower project in Angola.
    • At the Forum for China-Africa Cooperation (COCAC) in 2018, China set aside $60 billion in developmental assistance.
    • And it was followed by a whopping $1 billion Belt and Road (BRI) Infrastructure Fund for Africa.
    • China has followed up with robust health sector diplomacy in the wake of the pandemic.
    • But its image has been tarnished by defective supplies of PPE gear and discriminatory behaviour against Africans in Guangzhou.
    • This also led to an embarrassing diplomatic row.

    India’s relations with Africa

    • In the last few years, India’s relations with Africa saw a revival.
    • India-Africa trade reached $62 billion in 2018 compared to $39 billion during 2009-10.
    • After South Asia, Africa is the second-largest recipient of Indian overseas assistance with Lines of Credit (LOC) worth nearly $10 billion (42 per cent of the total) spread over 100 projects in 41 countries.
    • Ties were boosted at the India Africa Forum Summit (IAFS) in 2015.
    • 40 per cent of all training and capacity building slots under the ITEC programme have traditionally been reserved for Africa.
    • Approximately 6,000 Indian soldiers are deployed in UN peace-keeping missions in five conflict zones in Africa.
    • Bilateral cooperation includes solar energy development, information technology, cyber security, maritime security, disaster relief, counter-terrorism and military training.
    • India has also launched several initiatives to develop closer relations, including the first-ever India Africa Defence Ministers conclave in February this year on the margins of the Defence Expo 2020.
    • India provides about 50,000 scholarships to African students each year.
    • The huge Indian diaspora is a major asset.
    • India had planned to host the Fourth India Africa Forum Summit in September this year.
    • However, the COVID-19 pandemic may cause it to be delayed.

    India’s support amid covid pandemic

    • India has already despatched medical assistance to 25 African countries.
    • PM Modi has had a telephonic talk with President Cyril Ramaphosa of South Africa who is the current chairperson of the African Union, and separately others such as the presidents of Uganda and Ethiopia.
    • India could consider structuring a series of virtual summits in zonal groups with African leaders across the continent over the next few months.
    • That could both provide a platform for a cooperative response to the pandemic and also serve as a precursor to the actual summit in the future.
    • The Ministry of External Affairs has already extended the e-ITEC course on “COVID-19 Pandemic: Prevention and Management Guidelines for Healthcare Professionals” to healthcare workers in Africa.
    • The Aarogya Setu App and the E-Gram Swaraj App for rural areas for mapping COVID-19 are technological achievements that could be shared with Africa.
    • Since the movement of African students to India for higher education has been disrupted, India may expand the e-VidyaBharti (tele education) project to establish an India-Africa Virtual University. Agriculture and food security can also be a fulcrum for deepening ties.
    • With the locust scourge devastating the Horn of Africa and the pandemic worsening the food crisis, India could ramp up its collaboration in this sector.
    • India could also create a new fund for Africa and adapt its grant-in-aid assistance to reflect the current priorities.
    • This could include support for new investment projects by Indian entrepreneurs especially in the pharmaceutical and healthcare sectors in Africa.

    Time for Quad Plus to propose cooperation with African countries

    • Both India and Japan share a common interest in forging a partnership for Africa’s development.
    • It is time for the Quad Plus, in which the US, India, Japan and Australia have recently engaged other countries such as the ROK, Vietnam, New Zealand, Israel and Brazil, to exchange views and propose cooperation with select African countries abutting the Indian Ocean.
    • After all, the Indo-Pacific straddles the entire maritime space of the Indian Ocean.

    Consider the 2015 question asked by the UPSC “Increasing interest of India in Africa has its pros and cons. Critically examine”

    Conclusion

    The pandemic is a colossal challenge but it may create fresh opportunities to bring India and Africa closer together.

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  • Foreign Policy Watch: India-China

    India-China confrontation: Not a standalone event

    29 May 2020 | op-ed snap | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The recent India-China standoff in Ladakh points to a larger picture of the Chinese agenda of regional dominance. The US-China tension has proved to be the backdrop against which the Ladakh standoff is playing out. This article suggests that this standoff is not a standalone event. It could well be a trigger for domino effect.

    What the intensification of tension between India-China suggests?

    1) China is feeling threatened

    • An authoritarian regime whose legitimacy rests primarily on its economic performance is faced with a situation where growth is expected to plummet.
    • It is a sign that Beijing is increasingly feeling beleaguered.
    • In response, it has embarked on a strategy of brinkmanship with several goals in mind.
    • External adventurism, when cloaked in the garb of ultra-nationalism, can shore up a regime’s legitimacy at home.

    2) It could be a move to divert the attention of the world

    • Simultaneously, it can act as a diversionary measure to escape international criticism for Beijing’s attempt to cover up the spread of the coronavirus.
    • Many countries hold China responsible for the huge cost in human lives and suffering as well as the unprecedented economic distress.
    • In the face of such criticism, the Chinese regime is increasingly using jingoistic jargon to build up domestic support.
    • President Xi Jinping’s recent speech to the PLA is an outstanding example of this strategy.
    • He exhorted the Chinese armed forces to “prepare for war” in order to “resolutely safeguard national sovereignty” and “the overall strategic stability of the country”.
    • This is a sign that the Communist Party of China (CPC) feels increasingly threatened both domestically and externally.

    Let’s look at the deterioration of the US-China relations

    • China’s relations with the U.S. have been going downhill almost since the beginning of the Donald Trump presidency.
    • Washington has periodically imposed economic sanctions on China and Beijing has retaliated in kind.
    • Trade talks have faltered because of growing protectionist sentiments in the U.S. and Chinese inability to adequately respond to them.
    • The chipping away at Hong Kong’s autonomous status by Beijing and the suppression of the pro-democracy movement in Hong Kong has led to severe criticism by the U.S. administration and in the Congress.
    • Differences over the issue of Taiwan have added to tensions, with China viewing the U.S. as the primary impediment preventing Taiwan’s integration.
    • The Trump administration has significantly increased support to Taiwan with arms sales that have added to China’s concern.

    U.S.-China rivalry in South-China Sea

    • Above all, the U.S.-China rivalry in the South China Sea acts as the potential flashpoint that may well lead to a shooting war.
    • So far, it has been careful that these moves do not trigger a serious confrontation with the U.S.
    • Washington has a strong interest in preventing China from asserting control over the South China Sea as maintaining free access to this waterway is important to it for economic reasons.
    • It also has defence treaty obligations to the Philippines, which has vigorously contested Chinese territorial claims.
    • Further, China’s control of the South China Sea would be a major step toward replacing the U.S. as the foremost power in the Indo-Pacific region.

    India-China relation questions have been the leitmotif in the UPSC papers. Just the theme of the question changes. Consider 2017 question “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 as her neighbour.”

    Conclusion

    Increased Chinese adventurism could result in an escalation of U.S.-China confrontation in the South China Sea. If that happens, the India-China face-off in Ladakh could become part of a much larger “great game”, with the U.S. trying to preserve the status quo and China attempting to change it to further its objective of regional dominance at the U.S.’s expense. The current India-China crisis should, therefore, be seen in its proper context and not as an isolated event.

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  • FDI in Indian economy

    Foreign direct investment (FDI) in India

    29 May 2020 | DOMR | Economics
    Mains Paper 3: Investment Models

    The FDI in India grew by 13% to a record of $49.97 billion in the 2019-20 financial years, according to official data.

    Get aware with the recently updated FDI norms. Key facts mentioned in this newscard can make a direct statement based MCQ in the prelims.

    Ex. FDI source in decreasing order: Singapore – Mauritius – Netherland – Ceyman Islands – Japan – France

    Data on FDI

    • The country had received an FDI of $44.36 billion during April-March 2018-19.
    • The sectors which attracted maximum foreign inflows during 2019-20 include services ($7.85 billion), computer software and hardware ($7.67 billion), telecommunications ($4.44 billion), trading ($4.57 billion), automobile ($2.82 billion), construction ($2 billion), and chemicals ($1 billion).
    • Singapore emerged as the largest source of FDI in India during the last fiscal with $14.67 billion investments.
    • It was followed by Mauritius ($8.24 billion), the Netherlands ($6.5 billion), the U.S. ($4.22 billion), Caymen Islands ($3.7 billion), Japan ($3.22 billion), and France ($1.89 billion).

    What is FDI?

    • An FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
    • It is thus distinguished from a foreign portfolio investment by a notion of direct control.
    • FDI may be made either “inorganically” by buying a company in the target country or “organically” by expanding the operations of an existing business in that country.
    • Broadly, FDI includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans”.
    • In a narrow sense, it refers just to building a new facility, and lasting management interest.

    FDI in India

    • Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA), driven by then FM Manmohan Singh.
    • There are two routes by which India gets FDI.

    1) Automatic route: By this route, FDI is allowed without prior approval by Government or RBI.

    2) Government route: Prior approval by the government is needed via this route. The application needs to be made through Foreign Investment Facilitation Portal, which will facilitate the single-window clearance of FDI application under Approval Route.

    • India imposes a cap on equity holding by foreign investors in various sectors, current FDI in aviation and insurance sectors is limited to a maximum of 49%.
    • In 2015 India overtook China and the US as the top destination for the Foreign Direct Investment.

    Back2Basics

    Amendment in the FDI Policy for curbing opportunistic takeovers/acquisitions of Indian companies

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