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  • Forest Conservation Efforts – NFP, Western Ghats, etc.

    [pib] Person in news: Gaura Devi

    PIB | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

     

     

    Union HRD Minister along with senior women officers of the Ministry planted a sapling in memory of Gaura Devi, Chipko Activist in New Delhi.

    Gaura Devi

    • Gaura Devi was born in 1925 in a village named Lata in the state of Uttarakhand. She moved to a nearby village named Reni by the Alaknanda River.
    • She was elected to lead the Mahila Mangal Dal (Women’s Welfare Association) in the wake of the Chipko movement. The organization worked on the protection of community forests.

    Her contributions in Chipko Movement

    • Gaura Devi came to notice in 1974 when she was told that local loggers were cutting the trees.
    • The men of Reni village had been tricked out of the village by news that the government was going to pay out compensation for land used by the army.
    • She challenged the men to shoot her instead of cutting down the trees and she described the forest with her maika (mother’s house).
    • They managed to halt their work by hugging the trees despite the abuse of the armed loggers.
    • They kept guard of the trees that night and over the next three or four days other villages and villagers joined the action. The loggers left leaving the trees.

    Impact

    • After this incident, the Uttar Pradesh Government established a committee of experts to investigate the issue of felling of trees, and the lumber company withdrew its men from Reni.
    • The committee stated that the Reni forest was an ecologically sensitive area and that no trees should be felled there.
    • Thereafter the government of Uttar Pradesh placed a 10-year ban on all tree-felling in an area of over 1150 km².

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    [pib] Quantum coin or ‘qubit’ and Entanglement Theory

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

    Researchers from Raman Research Institute (RRI), an autonomous institution under the Dept. of Science & Technology, have devised a new test for fairness of quantum coin or ‘qubit’ using entanglement theory. The Qubit is the basic unit of information in a quantum computer.

    Entanglement Theory

    • It is a special type of correlation that exists in the quantum world with no classical counterpart.
    • The researchers from RRI made use of this quantum resource to arrive at a test for fairness of a quantum coin (a qubit).
    • Their strategy, which makes use of entanglement, enables better discrimination between quantum states. Such advantage is valuable in quantum sensors.
    • This work is a significant contribution to the domain of quantum state discrimination, which is an essential aspect of quantum information science.
    • It brings out the crucial role of entanglement in improving our ability to discriminate quantum states.
    • In this work the researchers concretely implemented the theoretical idea on the simulation facility of the IBM quantum computer.

    Quantum coins

    • By repeated trials, one can determine the fairness of a classical coin with a confidence which grows with the number of trials.
    • A quantum coin can be in a superposition of heads and tails.
    • Given a string of qubits representing a series of trials, one can measure them individually and determine the state with a certain confidence.
    • The team has shown that there is an improved strategy which measures the qubits after entangling them, which leads to a greater confidence.

    Significance

    • This is a significant contribution to quantum state discrimination, an essential aspect of quantum information science which is expected to influence quantum sensing.
    • The domain of Quantum Information and Quantum Computing Technology is a growing area of research which is expected to influence Data Processing, which in turn, plays a central role in our lives in this Information Age.
    • For instance, bank transactions, online shopping and so on crucially depend on the efficiency of information transfer.
    • Thus the recent work on quantum state discrimination is expected to be valuable in people’s lives in the current era.

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  • Foreign Policy Watch: India-Iran

    The diplomatic cost

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

    Context

    The CAA and violence in Delhi have started to take its toll on India’s secular foreign policy.

    The US and other’s reaction to the situation in India

    • Trump visit to India: President Trump referred to India as a democracy which was peaceful and tolerant. He lauded freedom, rule of law, liberty and protection of human dignity, adding graphically that where India had the holy Ganges, it also had the Golden Temple and Jama Masjid.
      • Assurance to the critics at home: He thereby cleverly reassured critics at home, especially in the US Congress, that he was not ignoring the values the two great democracies shared.
      • However, as the situation in Delhi spun into violence the next day, in an untutored media interaction at the US ambassador’s residence, he ducked questions about the CAA or Delhi riots, nonchalantly remarking it was “up to India” to deal with it.
      • This may have brought comfort to the Indian government but the world at large differed.
    • Response from the other countries: Delhi had already exchanged angry words with Malaysia, Turkey and even Indonesia over their varied critique of India’s handling of its Muslim minority when Iran joined the issue.

    Iran’s response to violence in India

    • Condemnation by foreign ministers: Iranian Foreign Minister Javad Zarif condemned the “wave of organised violence against Indian Muslims”, adding that “Iran has been a friend of India”.
      • India’s foreign ministry summoned the Iranian ambassador to protest the inappropriateness of the minister’s remark.
    • The reaction by the Iranian Supreme Leader: Soon after, Supreme Leader Ali Khamenei found the time, in the middle of the COVID-19 outbreak, to excoriate the Indian government.
      • Adding insult to injury, he appended #IndianMuslimsInDanger.
    • No reaction on China problems: A facile response, can be that Iran is being hypocritical as it has not expressed remorse over the Chinese repression of Uyghurs.
    • The difference in India’s importance to China: China is a veto-wielding member of the UN Security Council, which also sustains the Iranian economy despite US sanctions. On the other hand, India has a Shia population second only to that of Iran.

    Relations with Iran

    • Two consulates in India: There are two Iranian consulates in India in Hyderabad and Mumbai. Iran seeks the third one in Lucknow.
      • Qom also hosts many Shia students, particularly from the Kargil region.
    • Historic links between the two countries: After Humanyun’s exile in Iran (1530-40) before recovering the Indian throne, the Persian language and culture fired the cultural renaissance at the Mughal court.
      • Religio-cultural heritage importance: India is important for Iran for its religio-cultural heritage, unlike China, which is needed for transactional and strategic reasons.
    • Two interrelated questions flow from this reasoning:
      • 1. What is Iran’s importance for India and the trajectory of India-Iran relations over the last two decades?
      • 2. And why is Iran adopting this sharp tone over what the Indian government argues is an internal matter?
    • Convergence in the relations: The closest India-Iran strategic convergence began in the 1990s, particularly after Kabul fell to the Taliban in 1996. These ties blossomed under reformist Iranian President Mohammad Khatami and Indian Prime Minister Atal Bihari Vajpayee.
    • Tehran Declaration: In 2001, the two signed the Teheran Declaration. Khatami in his opening remarks said that Iran always admired India’s secular credentials and Vajpayee had maintained that tradition.
      • In 2003, Khatami was the chief guest at India’s Republic Day and a New Delhi Declaration was issued.
    • Deterioration in relations and impact of India-US relation: The relationship began to slip as Iran’s clandestine nuclear programme and assistance from Pakistan’s rogue scientist A Q Khan was uncovered in mid-2003.
      • Impact of India-US closeness: Concomitantly, India was drawing closer to the US and negotiating a nuclear cooperation agreement.
      • The US used the nuclear issue to cause a cleavage as Indian and Iranian interests began seriously diverging.
      • Taliban factor: In any case, the Taliban had been ejected from Afghanistan and US troops literally surrounded Iran, having in 2003 overthrown Saddam Hussein. Geo-strategy trumped diplomacy.

    The US-Iran relation cycle

    • The nuclear deal with Iran: Iran-US relations also went through a cycle, with President Barack Obama recalibrating US policy towards the Gulf and West Asia.
      • Countering ISIS: Calculating that without Iran, ISIS could not be countered, the US in 2015 endorsed the nuclear deal that P-5 and Germany negotiated to end the nuclear stand-off.
    • Missing warmth of the 1990s: Although India-Iran relations after that returned to near normal as most US sanctions were lifted, the warmth of the 1990s was missing.
      • Iran was now beginning to extend its influence and role across Iraq and West Asia.
    • Maximum Pressure strategy of the US: President Donald Trump in 2016 reversed US policy and since then “maximum pressure” has been applied on Iran via tightened sanctions.
    • India’s engagement with Saudi Arabia and UAE: PM Modi also moved more forthrightly to engage Saudi Arabia and the UAE.
    • The fallout of the US strategy reversal: A fallout of the US policy reversal has been an exacerbation of not only the Shia-Sunni split but a Sunni-Sunni split as Qatar and Turkey are with Iran.

    Changing polity and increasing influence in the neighbourhood

    • Conservatives elected to power: In Iran’s parliamentary election on February 28, extremely conservative members have been elected, the moderates having been vetoed by the Guardians Council earlier.
      • Turnout was a low 43 per cent, due partly to fear of the coronavirus.
    • Increasing influence in the neighbourhood: Iran is even more isolated, though determined to resist US demands, due to communications being curtailed due to the virus.
      • Relations with the Taliban: It has good working relations with the Taliban and converging interests to see that US troops exit the region.
      • The friendly government in Baghdad: Iran is battling to ensure a friendly government in Baghdad, despite the killing of Major General Qasem Soleimani, by keeping militias aligned to it in play.

    Conclusion

    • Perception of India: Khamenei’s tweet reflects the perception that India is in the US-Saudi-Emirati corner and of little use as long as Trump is president.
      • Growing closeness Abu Dhabi, Riyadh and Ahmedabad would have led Iran to this conclusion.
    • Leveraging India’s dependence: In the Islamic world, Iran by publicly defending Indian Muslims embarrasses the silent Saudis.
      • It also calculates that India needs access to Afghanistan through Chabahar to assist the Ghani government or influence developments there.

     

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  • Coronavirus – Economic Issues

    Monetary policy can’t combat the COVID-19 impact

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Context

    Central banks the world over are devising the strategies to deal with the impact of COVID-19 on their economies.

    How the Central banks are responding?

    • US Fed’s response: The huge 50 basis points cut in rates by the U.S. Federal Reserve to lift economic sentiment hit by COVID-19 has disrupted central banking worldwide.
    • Pressure on other Central banks to follow suits: Even as analysts debate whether a monetary policy response is a right strategy, central banks across the world are feeling the pressure to follow suit to the largest rate cut by the Fed since 2008.
    • How banks are responding? Central banks of Australia and Malaysia have cut rates already while others such as the Bank of Japan, Bank of England and the European Central Bank are contemplating joining the caravan.

    How the RBI is responding?

    • First line of economic defence: With monetary policy turning out to be thede facto first line of economic defence against the ill-effects of the virus, the focus in India has turned to the Reserve Bank of India’s response.
    • Hope of rate cut: Yields on 10-year government securities fell by as much as 0.12% in the hope of a rate cut by the RBI and they stayed soft.
    • But what are the central bank’s options?
      • No unilateral rate adjustment: Unlike other countries, the legal framework in India after the setting up of the Monetary Policy Committee (MPC) is such that the RBI cannot unilaterally adjust rates.
      • The MPC will have to meet and deliberate on the situation before the call to cut rates is taken and such a call will have to be based on an assessment of inflation in the economy.

    Is a rate cut the right response?

    • Impact of the virus on the supply side: The first-order impact on the global economy of the spreading virus is a disruption to trade and to global supply chains.
      • With China being the factory of the world, the clampdown in that country has already disrupted supplies of products ranging from cell phone components to bulk drugs and auto components.
      • Factory lines across the world could freeze as supply chains get disrupted.
    • Limits of Monetary policy to deal with the supply-side problem: Monetary policy is excellent to address demand shocks but is a blunt tool when it comes to addressing supply-side issues.
      • Where to spend? People may be encouraged to spend more due to a rate cut but what will they spend on if products go scarce, travel convulses and public spaces such as movie theatres and malls become no-go areas?
    • The rate cut will boost the sentiments only: A rate cut can, at best, help to boost sentiment but that again will be transient as the market’s reaction after the Fed rate cut proves.
      • Expansionary monetary policy cannot improve the situation: The Swedish central bank’s deputy governor Anna Breman has rightly questioned the logic of a rate cut as a response to the coronavirus impact pointing out that an expansionary monetary policy cannot improve the situation.
    • How the RBI might respond? The sentiment being what it is, the RBI may find itself under increasing pressure to act. Given the MPC constraint, it may well choose to do what it did in the February monetary policy– unleash other weapons in its armoury to give the same effect as a rate cut.
      • Thus, we may well see the central bank announcing another tranche of long-term repo operation, akin to the ₹1 lakh crore that it announced in February.
      • That will mean that banks will gain access to three-year funds at the repo rate of 5.15%, much lower than the market rate.
      • And then, there’s Operation Twist which the RBI employed to good effect in December, softening rates at the long end of the yield curve.

    Would any of these measures yield any response?

    • Doubtful results: It’s doubtful if any of these measures can address the hit to economic growth. The virus has undoubtedly surfaced at a very wrong time for the Indian economy which is showing hesitant signs of a return to growth.
    • Which sectors will be impacted the most? The impact will be felt on more than one front. Industries such as pharmaceuticals, electronics and automobiles could be headed for trouble given their high dependence on Chinese inputs.
    • Government’s response: While the government is said to be formulating a response, including the possibility of airlifting supplies, the practicality of this solution needs to be watched as also its impact on costs for the industries concerned.

    Impact on exports and offsetting factor of oil import

    • The biggest problem: The bigger problem could be from a fall in exports, which accounts for 20% of the GDP.
    • Which exporters would feel the heat? If the developed world tips into recession due to the virus, exporters of products ranging from petroleum and textiles to leather and gems and jewellery will feel the heat.
    • Oil offset due to fall in oil prices: The offsetting factor, of course, will be a lower oil import bill due to the sharp fall in oil prices. This may also have a benevolent effect on inflation.
    • But there will be other headaches for the central bank if the developed world embarks on monetary expansion. The RBI will be faced with the challenge of staunching inflows of hot money coming in search of the higher returns available in India.

    Conclusion

    • Hot money concern for RBI: There will be other headaches for the central bank if the developed world embarks on monetary expansion. The RBI will be faced with the challenge of staunching inflows of hot money coming in search of the higher returns available in India.
    • Opportunity in the crisis: As with every crisis, there’s also an opportunity here. Economic growth is bound to suffer in the short-term but there could be long-term spin-offs if domestic industry and government get their acts right.
      • Supply chains can be localised through fresh investments and India can bid to be an alternative to China in the global value chain.
    • India can be an option to China for global supply chain: The COVID-19 crisis has only underlined in red the lesson that global corporations learnt when trade war broke out between the U.S. and China- the global supply chain needs alternative options to China. India is eminently qualified to assume that role. If only our policymakers and industrialists rise up to the challenge.

     

     

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  • Foreign Policy Watch: India-United States

    After the Trump visit

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

    Context

    President Trump’s visit had the right optics. Attention must now turn to India-US priority areas.

    What were the mutual gains and highlights of the visit?

    • Security: Homeland Security is an American expression. For us to own it shows our concerns on cross-border sponsored terrorism.
    • Nuclear technology: Our nuclear VVER power plant technologies are state of the art and of Russian and French design.
      • Fast breeder: Good, but one more is better. We are well on the way to the fast breeder on the thorium route and these nuclear turbines are an essential step.
      • Unlimited thorium: We don’t have much uranium but unlimited thorium, so in the long run, apart from solar, this is the energy future.
      • Insurance obstacle resolved: Obviously, the insurance obstacle, as to who will bear the cost of insurance against disaster damage, which the Americans were raising earlier, has been resolved.
      • We have to build nuclear power to provide the initial feedstock for the thorium-based reactors.
    • No progress on trade pact: There are obviously differences between the two nations on the trade pact.
      • There is “progress”, but otherwise, we don’t know the way forward. Since the event was Ahmedabad-based, Amul is invading America and dairying is real politics.
    • US concerns over Kashmir issue: The US concern on Kashmir and minority rights is real.
      • If the largest foreign office establishment in the world is raising issues through their chief, let’s not bury our head in the sand.
      • Our defence minister expressing sadness at former chief ministers of Jammu and Kashmir being in detention was a gesture to the US President’s stand on pursuing solutions.
    • The bipartisan foreign policy of India shifting: The Americans generally rally behind the President on foreign policy.
      • We are more advanced now and have kicked a bipartisan approach to foreign affairs.
      • Seven decades of a bipartisan policy are thrown away without a word in explanation.

    Challenges to the rights in India

    • Every right is tampered with. Your religion, your identity in a country that never questioned it, you name it, it’s in question.
    • Multiple identity cards not accepted: The Aadhaar card, passport, ration card, election card are not enough. One office doesn’t accept another’s card, even if they carry the same information.
    • A study on a ration card and election cards: A study funded by the Canadian IDRC showed the poor only keep under lock and key the ration and election cards. One saves them from starvation, the other gives them dignity. At least once every five years, the mightiest knock at their door. We must not destroy, we must build.

    Conclusion

    There are obviously differences between the two nations on the trade pact. But apart from trade, there are many areas the cooperation on which can benefit both the countries.

     

     

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  • Issues related to Economic growth

    An unrest, a slowdown and a health epidemic

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Context

    India faces imminent danger from the trinity of social disharmony, economic slowdown and a global health epidemic.

    Social disharmony

    • Violence in Capital: Delhi has been subjected to extreme violence over the past few weeks. We have lost nearly 50 of our fellow Indians for no reason. Several hundred people have suffered injuries.
      • Communal tensions have been stoked and flames of religious intolerance fanned by unruly sections of our society, including the political class.
    • University campuses, public places and private homes are bearing the brunt of communal outbursts of violence.
    • Institutions of law and order have abandoned their dharma to protect citizens. Institutions of justice and the fourth pillar of democracy, the media, have also failed us.

    Impact of social disharmony on the economy

    • Exacerbating the economy: At a time when our economy is floundering, the impact of such social unrest will only exacerbate the economic slowdown.
    • Lack of investment by the private sector: It is now well accepted that the scourge of India’s economy currently is the lack of new investment by the private sector.
      • Investors, industrialists and entrepreneurs are unwilling to undertake new projects and have lost their risk appetite.
      • Increase in fears and risk aversion: Social disruptions and communal tensions only compound investors’ fears and risk aversion.
      • Social harmony, the bedrock of economic development, is now under peril.
    • When policy tweaks stop to matter: No amount of tweaking of tax rates, showering of corporate incentives or goading will propel Indian or foreign businesses to invest, when the risk of eruption of sudden violence in one’s neighbourhood looms large.
    • How the vicious cycle works: Lack of investment means a lack of jobs and incomes, which, in turn, means a lack of consumption and demand in the economy.
      • A lack of demand will only further suppress private investments. This is the vicious cycle that our economy is stuck in.

    Impact of COVID-19 on the economy

    • Global reactions: Nations across the world have sprung into action to contain the impact of this epidemic. China is walling off major cities and public places. Italy is shutting down schools. America has embarked aggressively both to quarantine people as well as hasten research efforts to find a cure.
      • Many other nations have announced various measures to address this issue.
    • What India can learn? India too must act swiftly and announce a mission-critical team that will be tasked with addressing the issue. There could be some best practices we can adopt from other nations.

    Bringing in reforms to address the problems

    • The government must quickly embark on a three-point plan.
      • First, it should focus all energies and efforts on containing the COVID-19 threat and prepare adequately.
      • Two, it should withdraw or amend the Citizenship Act, end the toxic social climate and foster national unity.
      • Three, it should put together a detailed and meticulous fiscal stimulus plan to boost consumption demand and revive the economy.

    Turning a moment of deep crisis into a moment of great opportunity

    • The past instance of turning crisis into an opportunity: In 1991, India and the world faced a similar grave economic crisis, with a balance of payments crisis in India and a global recession caused by rising oil prices due to the Gulf War.
      • But India was able to successfully turn this into an opportunity to reinvigorate the economy through drastic reforms.
    • Turning the present crisis into an opportunity: Similarly, the virus contagion and the slowing down of China can potentially open up an opportunity for India to unleash second-generation reforms to become a larger player in the global economy and vastly improve prosperity levels for hundreds of millions of Indians.
      • To achieve that, we must first rise above divisive ideology, petty politics and respect institutional salience.

    Conclusion

    The India that we know and cherish is slipping away fast. Wilfully stoked communal tensions, gross economic mismanagement and an external health shock are threatening to derail India’s progress and standing. It is time to confront the harsh reality of the grave risks we face as a nation and address them squarely and sufficiently.

     

     

     

     

     

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  • Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

    Online versus offline

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

    Context

    Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise.

    Duopolies and scrutiny by the CCI

    • Duopolies in the most segment: The online marketplace or the platform/intermediation service market is now largely characterised by duopolies in most segments:
      • Amazon and Flipkart in e-commerce, Uber and Ola in transport, Zomato and Swiggy in food service, MakeMyTrip and Yatra in travel bookings.
      • Some niche players do exist in these segments, but by and large, the market has been carved up by large players.
    • Why CCI is scrutinising these companies? Several of these companies have come under the scrutiny of the Competition Commission of India (CCI).
      • What are the issues involved? The issues involved here have far-reaching ramifications for both online and offline market places. Some of the more contentious issues are:
      • Do such market structures restrict online competition?
      • Are the players engaging in predatory pricing?
      • If so, is it driving out both online and offline competition and does this adversely impact consumer welfare?
      • Is there a need for policy intervention, and, if so, what should be the underlying framework?

    Lower barrier to entry not translating into greater competition

    • Market not working as per theory: In theory, the online market structure should facilitate greater competition given the lower barriers to entry. But this may not be the case.
      • Take-over: Most other firms in the segments mentioned above have either been taken over or have folded up.
    • What is the reason for the emergence of such marker structures
    • Positive feedback loop: One explanation for the emergence of these market structures is that as companies grow, with more users coming on board these platforms, they benefit from what CCI calls positive feedback loop.
      • This leads to market concentration.
      • Difficulties for new players: Given the network effects, which are common in digital spaces, it becomes difficult for new players to enter these spaces, and gain market share as there isn’t much space for many such networks.
    • Capital intensive market: Another possible explanation is that, contrary to perception, the online space is highly capital intensive.
      • Deep pockets are required to fund the discounts to get customers on board initially.
      • Such market structures are more likely in capital deficit countries like India.
    • Incumbents restricting new entrant: Incumbents, as in other sectors, may also engage in various strategies to restrict entry and thus competition.
      • Even small actions by these platforms coupled with the network effects can adversely impact competition.

    Predatory pricing-issues involved in it

    • Allegations of predatory pricing driving out the competition: Many allege that these two-sided online platforms engage in predatory pricing or below-cost pricing either by funding it themselves (deep pockets) or by squeezing producers.
      • This drives out the competition — both online as well as offline.
      • Predatory pricing is anti-competition, to begin with.
      • How it is harmful to the customers? While consumers do benefit in the short run, once the competition is driven out, the platform starts raising prices to recoup previous losses.
      • But is it that straightforward?
    • What are the issues involved in predatory pricing?
    • First- Assessing whether a platform is engaged in predatory pricing.
      • In India, it is defined as price falling below average variable cost — may not be a straightforward exercise.
      • Why it is not a straight forward exercise? The dynamics of online pricing (prices change over time), their unique cost structures — in such two-sided platforms, prices/costs on both sides should be seen in conjunction — as well as the impact of economies of scale and organisational efficiency in lowering costs, all need to be factored in.
      • Discount for clearing inventories: Besides, one would also have to take into account that even offline firms engage in deep discounting to clear inventories.
      • As do both online and offline firms to acquire customers in the early stages of their business.
    • Second-The impact of such pricing strategies on competition and on consumer welfare must be carefully assessed.
      • Driving out competitors is not equal to driving out the competition: It is quite likely that once the competition is eliminated and the platform starts to raise prices, new players will enter the market, attracted by higher prices.
      • Driving out competitors may not be the same as driving out the competition — though the extent to which new firms are able to enter the market will depend on the degree to which barriers to entry exist.
      • Concerns of recovering the losses: Platforms will be mindful that losses will be hard to recover, and may not engage in below-cost pricing to drive out competitors for extended periods.
      • Consumers are unlikely to lose out as prices are likely to remain low.
    • Third- Possibility of collusion
      • There is also an argument for closer examination of such market structures because of the possibility of collusion.
      • Customers moving towards cheaper options: In most such markets, as the consumer has little to differentiate between the two platforms, it is the price that sets them apart.
      • Consumers tend to gravitate towards the cheaper option. This ensures continuous competition between the major players to offer low prices.
      • Possibility of customer left with no option: It is possible that at some point, the players will find it in their interest to venture into some sort of agreement that allows both of them to survive, rather than be engaged in a race to the bottom — as has seemingly happened in the telecom sector.
    • Fourth- Linking predatory pricing with abuse of dominant market position must be reexamined.
      • The dominant position is not always linked with predatory pricing: As the experience of the telecom sector shows, a dominant position may not be a prerequisite for predatory pricing.
      • Accepting this argument would imply that if regulatory intervention is required to check predatory pricing, it could kick in before market power or dominance is established.
      • Taking into account deep pockets: Alternatively, the definition of market dominance could be expanded to take into account deep pockets.

    Conclusion

    • Set of guidelines instead of the fixed framework: Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise. Having a fixed predetermined framework is unlikely to be helpful. Instead, it would be more useful to have a set of guiding principles based on which regulatory intervention, if required, can be undertaken.
    • Safeguarding competition not competitors: Competition policy should be driven by safeguarding competition, not competitors. It should seek to bring about greater transparency in pricing and reduce information asymmetry.

     

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  • North-East India – Security and Developmental Issues

    Explained: Behind Meghalaya violence

    Explained | Polity | Mains Paper 2: Federalism

     

     

    Last week, ethnic violence left three dead in Meghalaya. The violence underlined the ethnic complexities of Meghalaya, with tensions coming back to the fore following the passage of the Citizenship (Amendment) Act.

    Multi-ethnic Meghalaya

    • Meghalaya became a state in 1972 when it was carved out of Assam. Before that, Shillong, now Meghalaya’s capital, used to be the capital of Assam.
    • Sharing a 443-km border with Bangladesh, Meghalaya has seen decades of migration from areas that are now in Bangladesh, as well as from various Indian states via Assam.
    • Besides the indigenous groups, Meghalaya’s residents include Bengalis, Nepalis, Marwaris, Biharis and members of various other communities.
    • Meghalaya is a tribal majority state, and the indigenous Khasis, Jaintias and Garos are entitled to 80% reservation in government jobs.
    • Various groups have continuously expressed concerns that illegal migration from Bangladesh and the growth of “outsiders” from other states would overwhelm the indigenous communities.

    Meghalaya violence: The CAA context

    • The CAA relaxes the norms for Hindus from Bangladesh (among six religious groups from three countries) for eligibility to apply for Indian citizenship.
    • Long before that, the legislation was already facing protests in the Northeast, including Meghalaya. Eventually, the Centre decided the CAA will not apply in Sixth Schedule areas.
    • The Sixth Schedule of the Constitution has special provisions for administration of certain areas in the Northeast, including almost the whole of Meghalaya.
    • Despite the large exemption, the concerns have persisted in Meghalaya, and demands for an Inner Line Permit (ILP) regime have gathered fresh momentum.
    • If the ILP system is introduced, every Indian citizen from any other state would require a time-bound permit to visit Meghalaya.

    Signals simmering tensions

    • The last four decades have seen numerous incidents of violence in Meghalaya targeted at non-tribals, including from Bengal and Nepal.
    • The latest bout follows a sustained campaign over the implementation of the Inner Line Permit and unrest in the Northeast over the CAA that led to six deaths in Assam two months ago.
    • The violence last week has an immediate context in the anti-CAA campaign and ILP demand.

    Shillong, then and now

    • Shillong has seen violence against “outsiders” several times in the last four decades.
    • The targets were Bengalis in 1979, Nepalis in 1987, and Biharis in 1992.
    • In 2018, Shillong saw clashes between Khasis and Punjab-origin Dalit Sikhs whose ancestors had settled there over 100 years ago.
    • All that began collapsing after Independence, Constitutional institutions set up to safeguard the interest of the tribes came to be popularly perceived as opportunities to convert these tribal areas into exclusive zones of tribal hegemony.
    • The issue of ‘foreigners’ illegally residing in the state of Meghalaya was one of the most important issues which dominated state politics in the 1970s and 1980s.
    • In 1979, the state was plunged into a crisis for the first time since it was created.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    When does Speaker suspend MPs from Lok Sabha?

    | Polity | Mains Paper 2: Parliament & State Legislatures

    Seven MPs of a political party were suspended for unruly behaviour in the Lok Sabha. The motion was passed by a voice vote.

    What is the reason for suspending an MP?

    • The general principle is that it is the role and duty of the Speaker of Lok Sabha to maintain order so that the House can function smoothly.
    • This is a daunting task even at the best of times.
    • In order to ensure that proceedings are conducted in the proper manner, the Speaker is empowered to force a Member to withdraw from the House (for the remaining part of the day), or to place him/her under suspension.

    What are the rules under which the Speaker acts?

    Rule Number 373 of the Rules of Procedure and Conduct of Business says:

    • The Speaker, if is of the opinion that the conduct of any Member is grossly disorderly, may direct such Member to withdraw immediately from the House, and any Member so ordered to withdraw shall do so forthwith and shall remain absent during the remainder of the day’s sitting.

    To deal with more recalcitrant Members, the Speaker may take recourse to Rules 374 and 374A. Rule 374 says:

    1. The Speaker may, it deems it necessary, name a Member who disregards the authority of the Chair or abuses the rules of the House by persistently and wilfully obstructing the business thereof.
    2. If a Member is so named by the Speaker, the Speaker shall, on a motion being made forthwith put the question that the Member (naming such Member) be suspended from the service of the House for a period not exceeding the remainder of the session: Provided that the House may, at any time, on a motion being made, resolve that such suspension be terminated.
    3. A member suspended under this rule shall forthwith withdraw from the precincts of the House.

    What is the procedure for revocation of a Member’s suspension?

    • While the Speaker is empowered to place a Member under suspension, the authority for revocation of this order is not vested in her.
    • It is for the House, if it so desires, to resolve on a motion to revoke the suspension.

    What happens in Rajya Sabha?

    • Like the Speaker in Lok Sabha, the Chairman of the Rajya Sabha is empowered under Rule Number 255 of its Rule Book to “direct any Member whose conduct is in his opinion grossly disorderly to withdraw immediately” from the House.
    • Any Member so ordered to withdraw shall do so forthwith and shall absent himself during the remainder of the day’s meeting.
    • The Chairman may name a Member who disregards the authority of the Chair or abuses the rules of the Council by persistently and wilfully obstructing business.
    • In such a situation, the House may adopt a motion suspending the Member from the service of the House for a period not exceeding the remainder of the session.
    • The House may, however, by another motion, terminate the suspension.
    • Unlike the Speaker, however, the Rajya Sabha Chairman does not have the power to suspend a Member.

    Way Forward: Striking a balance

    • There can be no question that the enforcement of the supreme authority of the Speaker is essential for smooth conduct of proceedings. A balance has to be struck.
    • However, it must be remembered that her job is to run the House, not to lord over it.
    • The solution to unruly behaviour has to be long-term and consistent with democratic values.
    • A step in that same direction could be to discontinue the practice of herding people out of the visitors’ gallery when the House witnesses chaos.
    • So, the ruling party of the day invariably insists on the maintenance of discipline, just as the Opposition insists on its right to protest. And their positions change when their roles flip.

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  • Freedom of Speech – Defamation, Sedition, etc.

    Freedom in the World 2020

    IOCR | International Relations | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

     

    India has become one of the world’s least free democracies, according to a global survey.

    Freedom in the World Report

    • It is a yearly survey and report by the U.S. based non-governmental organization Freedom House.
    • It measures the degree of civil liberties and political rights in every nation and significant related and disputed territories around the world.
    • The report derives its methodology from the Universal Declaration of Human Rights, adopted by the UN General Assembly in 1948.
    • It covers 195 countries, awarding scores based on political rights indicators such as the electoral process, political pluralism and participation and government functioning, as well as civil liberties indicators related to freedom of expression and belief associational and organisational rights, the rule of law and personal autonomy and individual rights.

    Highlights of the report

     

     

    Deteriorating freedom in India

    • The report ranks India at the 83rd position, along with Timor-Leste and Senegal.
    • This is near the bottom of the pile among the countries categorised as “Free”.
    • India’s score fell by four points to 71, the worst decline among the world’s 25 largest democracies this year.
    • India scored 34 out of 40 points in the political rights category, but only 37 out of 60 in the civil liberties category, for a total score of 71, a drop from last year’s score of 75.
    • The report treats “Indian Kashmir” as a separate territory, which saw its total score drop precipitously from 49 to 28 this year, moving it from a status of “Partly Free” to “Not Free”.

    Reason for the downfall

    • The annulment of autonomy and the subsequent shutdown of Kashmir, the NRC and the CAA, as well as the crackdown on mass protests, have been listed as the main signs of declining freedom in the report.
    • These three actions have shaken the rule of law in India and threatened the secular and inclusive nature of its political system said the report.
    • The report slammed the internet blackout in Kashmir terming it the longest shutdown ever imposed by democracy.
    • It said freedom of expression was under threat in India, with journalists, academics and others facing harassment and intimidation when addressing politically sensitive topics.
    • It warned that the Indian government’s alarming departures from democratic norms under present govt. could blur the values-based distinction between Beijing and New Delhi.

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