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  • Indian Navy Updates

    [pib] Exercise MILAN 2020

    PIB | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Visakhapatnam is set to host an International Naval event ‘MILAN’ in March 2020.

    MILAN 2020

    • It is a multilateral naval exercise aimed to enhance professional interaction between friendly foreign navies and learn from each other’s strengths and best practices in the maritime domain.
    • The Exercise with the theme ‘Synergy Across the Seas’ would provide an excellent opportunity for Operational Commanders of friendly foreign navies to interact with each other in areas of mutual interest.
    • Of the 41 navies invited, confirmations from over 30 navies have been received towards their participation in MILAN 2020.

    In continuity with:

    https://www.civilsdaily.com/news/pib-exercise-milan-2020/

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  • Issues related to Economic growth

    [op-ed snap] Limited scope for sharp recovery

    op-ed snap | Economics | : Government Budgeting,Indian Economy

    Context

    In order to revive the economy, the Government must choose between tax reductions and increasing rural spending.

    The Current Status of the Indian Economy

    • 5 % in 2019-20: The first advance estimate pegs India’s economic growth at 5 per cent in 2019-20.
    • Cause of the slowdown: The slowdown can be attributed largely to a structural demand problem in the economy along with some cyclical
    • Stagnant income and stagnant incomes: Despite largely stagnant incomes, private consumption has been financed over the past few years through lower savings, easy credit, and certain one-offs such as the Seventh Pay Commission led pay-outs.
    • Private consumption is the largest driver of growth.
    • Depleting savings: The household savings rate has dipped to 17.2 per cent of GDP in FY18, from 22.5 per cent in FY13.
    • Depleting credit in the system: Overall credit in the system has dried up.

     Rural economy

    • Low wages and stagnant incomes: Rural wage growth has averaged around 4.5 per cent over the past five years, but adjusting for inflation it has been only 0.6 per cent.
    • Weak real estate sector: The rural population, which was dependent on urban real estate/construction has faced headwinds in the recent past.
    • The sector is experiencing lower private sector investments recently.

    Limited scope for a sharp recovery

    • The following factors render the scope for sharp recovery limited.
    • Consumption issue is structural:  The slowdown in private consumption is a structural issue linked to low household income growth.
    • Low job creation: Low consumption is in turn, linked to the basic problems of low job creation.
    • Low Income: Low consumption is also linked with stagnant farm incomes.
    • None of the above factors is likely to change suddenly, limiting the scope of recovery.
    • Low Investments: Investment is unlikely to rebound sharply given the challenges on both income and balance sheet of the government, private sector, and households.
    • Stressed Government consumption: Which has been supporting growth over the past few years, remains under stress.
    • The combined Centre and states’ fiscal deficit is close to 6.5 per cent of GDP.
    • The public sector is already weighing on the limited domestic financial resources, ruling out space for an aggressive fiscal stimulus.
    • NBFC’s role: Recovery will also depend on the health of the financial sector, especially that of NBFCs.

     Use of the fiscal space

    • Supply-side: The government has shown a clear preference to rely on supply-side measures (like corporate tax cut) to support growth.
    • Need to address demand-side: Expectations will be high that the upcoming Union budget addresses the demand side concerns as well.
    • Spending on rural infrastructure and employment (MGNREGA, PM-KISAN, PMGSY) can decrease pain in rural areas.
    • Given the narrow income tax base, any sacrifice of the fiscal room would be beneficial only for a limited number of people.

    Way forward

    • Widening of the tax base- Given the narrow income tax base, any sacrifice of the fiscal room would be beneficial only for a limited number of people.
    • Broad-basing of the income and consumption profile: Economic reforms in the past have worked to enhance the capacity of the top few hundred million consumers.
    • The next set of reforms should enhance the capacity of those in the middle and the bottom of the income pyramid.
    • Role of the private sector: Given the huge infrastructure gap in the country, it is essential that the private sector’s role in infrastructure creation is much more inclusive.

    Conclusion

    Reforms that increase the productivity of the factors of production, provide an enabling environment for competitive production of goods and services and ensure steady and substantial growth in purchasing power for a larger section of the population should be the focus.

     

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

    [op-ed of the day] Weathering the storm

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Disaster Management

    Context

    State of Climate of India report by IMD should occasion interventions to make people resilient to extreme weather events.

    What does the report confirm?

    • Frequent extreme weather events: The report states that extreme weather events have become par for the course in the country.
    • The report notes that excessive heat, cold and rainfall killed 1,562 people during the year.
    • Intense dry spells, even droughts, were interspersed with floods in several parts of the country
    • Above normal temperature:  The mean temperature last year was 0.36 above normal.
    • The excess rainfall: The country also recorded excess rainfall during both the southwest and northeast monsoons.

    Long-term meteorological trends:

    • The IMD report should be seen in conjunction with long-term meteorological trends.
    • The warmest decade: The World Meteorological Organisation reckons that the decade starting 2011 remains on track to be the warmest on record.
    • Increase in the relative humidity: At the same time, data from the European Centre for Medium-Range Forecast shows that the relative humidity in the mid-troposphere in the Subcontinent has increased by about 2 percent in the past four decades.
    • Such warming has increased the capacity of oceans to form intense cyclonic disturbances.

    Implications for disaster-preparedness:

    • Cyclones: Last year, as the IMD report notes, the Indian Ocean witnessed eight cyclones.
    • Cyclones don’t kill but buildings can turn hazardous during such extreme weather events.
    • The vulnerability of the poor: In Odisha winds blowing at more than 140 kilometers per hour ripped off roofs and window frames in modern houses and also exposed the vulnerability of the mud and bamboo houses of the poor.
    • Guidelines: The Ministry of Housing and Urban Affairs does have guidelines for climate-friendly construction.
    • But planners in coastal cities and towns rarely pay heed to its provisions.
    • Cooperation between the states: The changing dynamics of weather also demands cooperation between states that share a river basin.
    • Maharashtra and Karnataka bickered over opening the gates of the Almatti dam on the Krishna.

    Implications for the farmers:

    • For farmers, vagaries in nature mean disruptions in the entire cropping cycle.
    • This year, Kerala, southern Karnataka, and Gujarat were heavily deficient till July.
    • But within a few days in the last week of July, these states recorded surplus rainfall.
    • Rainwater storage and use: Increasing their resilience calls for efficient rainwater storage and use.

    Conclusion:

    It’s clear that dealing with exceptional weather will require interventions at the national, state and local levels. The Statement on Climate of India 2019 drives home the urgency of such interventions.

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  • Foreign Policy Watch: India-China

    [op-ed snap] A multilateral alternative, by Asia

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

    Context

    After the gap of 200 years, Asian economies are once again larger than the rest of the world combined.

    The Asian Century

    • Providing an alternative order: With the rise of India and China, Asia is providing a multilateral alternative to the world base on values.
    • Asian Century corresponds to the re-emergence of the two countries, leveraging the size and technological competence
    • Civilizational values: Both countries have civilisational values that are different from the west.
    • Peaceful existence: In the case of India and China balance of power is a western construct and both lived in peace across the ages.
    • The rise of China on the global landscape: In 2013, after attaining 15% of global wealth, announced the multilateral Belt and Road Initiative (BRI). In 2014, launched the Asian Infrastructure Investment Bank, challenging the global governance paradigm.
    • India in 2015, established the International Solar Alliance, laying out a distinct global sustainable development framework.
    • Current multilateralism and its problems: The U.S. has recognised the ‘Asian Century’ bypassing multilateralism and recognised Indo-Pacific construct.
    • The U.S. withdrawal from the Paris Agreement and the inclusion of intellectual property rights into the trade regime point to the colonial origin of the present order.

     

    New Framework- Country-specific to global value chain

    • Changing competition: Competition is moving from country-specific to fragmented competition based on global value chains.
    • Imposing the U.S. determined national security standards has led to only a handful of countries agreeing to ban Huawei for 5G technology.
    • The U.S. imposed sanctions on Iran that have affected India’s interests.
    • A different approach of China: It is based on “common interests” as different from the agreed goals of a negotiated treaty. BRI is an example of this.
    • It optimise not maximise the financial returns with countries remaining out of it.
    • The BRI offers the benefit of integration and connectivity with European markets to the member countries.

    Potential of BRI

    • It acts as a strategic framework: It provides a strategic framework for new global institution building.
    • Its scope is as wide as multilateral treaties.
    • Internationalizing the Renminbi: With state-owned enterprises in the infrastructure sector in the sector in BRI and backing from national banks is internationalising the Renminbi.
    • Developing blockchain bases infrastructure: As a leader in digital transactions, China is developing blockchain-based infrastructure in BRI countries. Thus reducing the dependence on the dollar.

    The shared interest of India and China

    • RCEP: China and the rest of the countries are eager that India joins the Regional Comprehensive Economic Partnership (RCEP), which is poised to become the largest trading block.
    • Security and border dispute: With the U.S. pivot to Asia, China is eager to resolve the dispute with India to avoid constraints.
    • Huawei: India has rejected American opposition to Huawei taking part in 5G trials, India allowed all applicants to participate.

        The emergence of new values

    • The emergence of the new order should not be seen through a western prism.
    • The triumvirate: India, the U.S., and China are intertwined with each other. China was the largest supplier of the goods to the U.S. in 2018 and it has been India’s major trading partner.
    • They take part in limited sectoral cooperation on a regional basis.
    • Both the U.S. and China have a regular high-level discussions on strategic issues with India.

        Area of future differences

    • In Asia, differences will center on overlapping priorities.
    • Security-The U.S.’s effort to maintain hegemony.
    • Economy-China’s emphasis on connectivity, markets, and growth.
    • An equitable and sustainable development-India-led framework of digital infrastructure designed as a public good.

       Conclusion

    With the rise of India and China in Asia and the presence of the U.S. with them is going to make the new order centered around Asia a new reality in the near future.

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  • Citizenship and Related Issues

    [op-ed snap] The Indian Constitution’s unitary tilt

    op-ed snap | Polity | Mains Paper 2: Federalism

    Context

    The Centre-State conflict over CAA, and the Constitutional obligation on the state to implement the laws made by the Parliament, has once again brought to the fore the fault lines in the Indian federalism.

    The opposition of the States to the Central law

    • Several state governments have declared that they would not implement the CAA.
    • Legislative Assembly of Kerala passed the resolution stating that the law contradicts the basic values.
    • The resolution is only symbolic.
    • Passage of such a resolution is not constitutionally barred.
    • But it may not be in tune with the federal scheme under the Constitution.

    What are the obligations on the States?

    • Article 256 obligates the State governments to ensure the implementation of the laws made by Parliament.
    • The Centre may give such direction as may appear to be necessary to ensure compliance with the laws made by Parliament.
    • The refusal to enforce the law even after the Centre issues direction would empower the President to impose the President’s Rule in the State.
    • Neither the refusal to implement not the official protests registered by the States carry much legal force.
    • The Calcutta High Court directed the state government to remove anti-CAA advertisements from the website.
    • The High Court barred the state from campaigning against a parliamentary law.

    The diminishing role of the Opposition

    • The parliament has been reduced to a site for procedural formalities.
    • There is a poor understanding of the role of the parliamentary Opposition in Indian politics.
    • Once the elections are over the Opposition is expected not to meddle in the governance.
    • The absence of Leader of Opposition in the Parliament for the last 6 years manifests this attitude.
    • Further, in the absence of the Opposition showing any resilience, national politics seems to be operating without a credible political check.

    The unitary tilt of the Constitution

    • Single-party dominance at the Centre has always revealed the tendency of our Constitution to concentrate the power.
    • The concentration of power is embedded in the very structure of the Constitution.
    • A ‘centrist bias’ of the Constitution further augments the power of single-party dominance.
    • Against the backdrop of the fissiparous tendencies in the backdrop of partition, it was justified for the founders to be hesitant in favour of stronger federalism.

    The rise of Electoral federalism

    • Change in voting patterns.
    • Over the last couple of years, there is huge vote swings between national and State elections in the same constituencies and separated by only a few months.
    • In other words, federalism is not a mere legal division of power, the democracy and voters too are becoming federal.
    • This embrace of electoral federalism may be one of the most significant achievements of Indian democracy.
    • Hence, parties that lose in national elections can still win State elections and form governments.
    • The State governments are thus filling the opposition deficit at the Centre.
    • This shift of opposition from Delhi to State capitals is likely to become the politics over federalism.

    Conclusion

    • The conflict that CAA triggered might become a template for future contestations over the federal question, while the politics seem to be ripe for the advancement of federalism.

     

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  • Goods and Services Tax (GST)

    Explained: Voting at the GST Council

    Explained | Economics | Mains Paper 3: Indian Economy

    • Breaking the tradition of consensus-based decisions in its 37 earlier meetings, the GST Council voted for the first time in its 38th meeting held on December 18.

    GST Council voting rules

    • As per The Constitution (One Hundred and First Amendment) Act, 2016, in case of a voting, every decision of the GST Council has to be taken by a majority of not less than three-fourths of the weighted votes of the members present.
    • The vote of the central government has a weightage of one-third of the total votes cast, and the votes of all the state governments taken together have a weightage of two-thirds of the total votes cast in that meeting.
    • As of now, out of the total 30 states and UTs (excluding J&K), 20 are ruled by the NDA.
    • This essentially means that a vote in the Council could largely be an academic exercise — unless a number of the BJP’s allies switch sides.

    Impacts of imbibing Voting

    • With the precedent of voting now established, consensus at the Council could be challenged again in the future.
    • The rules of voting in the GST Council are such that the odds are stacked in favour of the Centre in the normal course.
    • However, in case of a vote, any disagreements within the ruling coalition at the Centre may bring its support below the three-fourths majority that is needed for the passage of a decision.

    Way Forward

    • Differences of opinion are likely to crop up on proposals to raise rates, especially of the lower slabs, in the future — a concern that made most states rule out an immediate rate hike in the last Council meeting, even as they were in agreement over a broader overhaul of the GST structure.
    • So far, even if states voiced their differences over a proposal in the Council, all decisions had been taken by consensus in the meetings of the GST Council.
    • With a departure from the consensus approach having been made, there could be more instances of voting exercises going forward — especially as revenue-raising measures come up in future meetings.

    Back2Basics

    GST Council

    • The GST Council is a federal body that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.
    • It is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India.
    • The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
    • The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.

    How is the GST Council structured?

    • The Goods and Services Tax (GST) is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A.
    • According to the article, GST Council will be a joint forum for the Centre and the States. It consists of the following members:
    1. The Union Finance Minister will be the Chairperson
    2. As a member, the Union Minister of State will be in charge of Revenue of Finance
    3. The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.

    Terms of reference

    • Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as, the goods and services will be subject or exempted from the Goods and Services Tax.
    • They lay down GST laws, principles that govern the following:
    1. Place of Supply
    2. Threshold limits
    3. GST rates on goods and services
    4. Special rates for raising additional resources during a natural calamity or disaster
    5. Special GST rates for certain States

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  • Coal and Mining Sector

    FDI in coal mining

    | Economics | Mains Paper 3: Investment Models

    The Union Cabinet has approved an ordinance to amend two laws to ease mining rules, enabling foreign direct investment in coal mining.

    About the Ordinance

    • At a Cabinet meeting chaired by PM the ordinance to amend the Mines and Minerals (Development and Regulation) Act, 1957 and the Coal Mines (Special Provisions) Act, 2015 was approved.

    Benefits of the proposed FDI

    • The decision would boost the ease of doing business and increase the growth avenues.
    • The Coal India would be strengthened and the government was aiming at achieving production of one billion tonnes by 2023-2024.
    • The “end-use restrictions” had been done away with allowing “anyone to participate in the auction of coal blocks”.
    • The ordinance would strengthen the auction process of those mines whose leases were expiring on March 31, 2020. Seamless transfer of clearances would also be facilitated.

    Back2Basics

    Foreign Direct Investment (FDI)

    • A 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 are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated economies.
    • FDI frequently involves more than just a capital investment. It may include provisions of management or technology as well.

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

    Lithium-Sulfur Battery

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

    Researchers from Australia have claimed that they have developed the world’s most efficient lithium-sulfur (Li-S) battery, capable of powering a smartphone for five continuous days. With this equivalence, an electric car would be able to drive a distance of over 1,000 km in one charge.

    What are Lithium-Sulfur Batteries?

    • Researchers who have developed this new Li-S battery claim it has an “ultra-high capacity” and has better performance and less environmental impact.
    • This means that they may be able to outperform the Li-ion batteries by more than four times.
    • With Li-ion batteries, some disadvantages include their susceptibility to overheating and their being prone to damage at high voltages.
    • Such batteries also start losing their capacity over time — for instance, a laptop battery in use for a few years does not function as well as a new one.

    Construction

    While the materials used in the Li-S batteries are not different from those in Li-ion batteries, the researchers have reconfigured the design of the sulfur cathodes (a type of electrical conductor through which electrons move) to accommodate higher stress without a drop in overall capacity.

    Advantages of the Li-S batteries

    • Li-S batteries are generally considered to be the successors of the Lithium-ion (Li-ion) batteries because of their lower cost of production, energy efficiency and improved safety.
    • Their cost of production is lower because sulfur is abundantly available.
    • Even so, there have been some difficulties when it comes to commercialising these batteries, mainly due to their short life cycle and poor instantaneous power capabilities.

    Why is this development important?

    • As the market share of electric vehicles (EV) is increasing and people are becoming more aware and conscious of global warming and climate change.
    • There is a need for development in terms of the kind of batteries used in these vehicles.
    • The growth of the EV market is linked to the development of batteries that are cost-effective, more efficient and leave a smaller environmental burden.
    • Today, most EV use Li-ion batteries, but are slowly reaching their theoretical limits of being able to provide roughly up to 300-watt hour per kilogram of energy.
    • Thus arises the need for batteries that can store more energy to run these cars, and Li-S batteries are considered to be a good alternative.

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  • [pib] Mutual Legal Assistance

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

    In furtherance to India’s policy of zero tolerance for crime and in an endeavor to fast track the dispensation of justice, the Ministry of Home Affairs (MHA) has issued Revised Guidelines for Mutual Legal Assistance in Criminal Matters.

    Mutual Legal Assistance guidelines

    • They aim to enhance and streamline the process of international mutual legal assistance in criminal matters.
    • By incorporating various legal and technological developments in the recent years, it aims to make the documentation in this regard more precise and focused as well as compliant with International requirements.
    • The guidelines have also taken into account the concerns raised by various courts for prompt and timely responses in service of documents on persons residing abroad.
    • As an initiative, the revised guidelines have provision for service of documents on authorities of foreign country preferably within 10 days of receipt of request in respect of offences committed against women and children.

    Why need Mutual Legal Assistance?

    • The transnational nature of crime and digital explosion has blurred geographical boundaries for criminal activities.
    • Availability of evidence and criminals outside the sovereign jurisdiction of countries has necessitated the transformation of scope and nature of conventional investigation.

    MLA treaties

    • India has entered into Mutual Legal Assistance Treaties/ Agreements with 42 countries and is signatory to various international conventions i.e. UNCAC, UNTOC etc.
    • The Ministry of Home Affairs (MHA) is the designated ‘Central Authority’ for India. Generally, assistance is sought and received in the form of Mutual Legal Assistance Requests/Letters.

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  • Indian Navy Updates

    [pib] Operation Sankalp

    PIB | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Indian Navy has commenced Maritime Security Operations, code named Op SANKALP, in the Gulf region to ensure safe passage of Indian Flag Vessels transiting through the Strait of Hormuz.

    Op Sankalp

    • Indian Navy warships and aircraft were deployed to establish presence, provide a sense of reassurance to the Indian merchantmen, monitor the ongoing situation and respond to any emergent crises.
    • The operation is being progressed in close coordination with all stakeholders including Ministry of Defence, Ministry of External Affairs, Ministry of Shipping, Ministry of Petroleum and Natural Gas and DG, Shipping.
    • The Navy continues to monitor the situation in the Gulf region and is maintaining presence in the region to ensure security of our sea borne trade and the safety of Indian Flag Merchant Vessels transiting through the region.

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