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  • Costs of neglecting new Arabian business

    The article contrasts the over-emphasis put on the ties with Iran with the neglect of ties with Arab countries in India’s foreign policy. It explores the inherent difficulties in dealing with Iran. And opportunities for India in Arab countries.

    Context

    • Iran is accorded high priority in India’s foreign policy.
    • This stands in stark contrast to the under-appreciation of relationship with Arab countries.

    Reasons for a special relationship with Iran

    • Historical connections.
    • Civilisational bonds.
    • Energy supplies.
    • Regional security.
    • Geographic and demographic size, the geopolitical location next door.
    • Natural resources and the extraordinary talents of its people.

    Importance of Arab countries for India

    • Millions of Indian immigrants in the Arab nations.
    • Massive hard currency remittances from them, and the density of commercial engagement with the Arab Gulf is important for India.
    • The UAE and Saudi Arabia have, in recent years, extended invaluable support in countering terrorism and blocked attempts to condemn India in the Muslim world.

    Let’s analyse the issue of railway contract in Iran

    • Large countries with major foreign investments and projects win some and lose some.
    • Then there is no escaping the political risk associated with foreign projects.
    • And politics, both domestic and international, is all-consuming in Iran.
    • The sanctions regime imposed by the US has crippled the Iranian economy.
    • India is careful not to attract the US sanctions.
    • India did gain an exemption from the US sanctions regime for its participation in the Chabahar port project in Iran.
    • But they don’t apply to some of the partners suggested by Iran in the railway project.
    • So, Iran would like India to break the US sanctions regime.
    • A prudent India is resisting that temptation.
    • It would rather lose the railway contract than get into the raging crossfire between the US and Iran.

    Issue of balancing the relations with Iran and U.S.

    • India’s Iran policy cannot be seen as a test of India’s “strategic autonomy”.
    • Some expect Delhi to conduct its relationship with Iran without a reference to either a cost-benefit calculus or Iran’s troubled relationship with others with whom India has important partnerships.
    • No government in Delhi can buy into that proposition.
    • Criticism of the government policy is similar to what happened in 2005 over India’s stance on Iran’s covert nuclear programme.
    • Delhi’s vote against Iran in the International Atomic Energy Agency drew criticism.
    • But governments stand proved right when Iran concluded a nuclear deal of its own with the US and major powers, a decade later.
    • Iran surely can take care of its own interests, and there is little reason why Delhi must back Tehran in every one of its fights with Washington.

    India should focus on Arab countries

    • The Arab world has had its doors open for political, economic and technological cooperation with India.
    • Three moderate Arab nations — Egypt, Saudi Arabia and the UAE — are confronting radical forces in the region and are valuable partners for India in countering forces of destabilisation.
    •  There is real Chinese economic action in the Arab world as the region embraces China’s Belt and Road Initiative.
    • India is no minor economic force in the Arab world, having had a much longer engagement with the region than China.
    • Delhi must up its own commercial game in the Arab world, and one of the new possibilities for India lies in the domain of new technologies.
    • There is emerging sentiment among the Gulf Arabs to reduce the over-dependence on oil, promote alternative energy sources, invest in higher education, and develop technology hubs.

    Consider the question “India’s relations with Iran has always been driven by the geopolitical contexts. This poses an inherent challenge for both countries. In light of this examine the importance of Iran for India and challenges India’s foreign policy faces in dealing with Iran.”

    Conclusion

    India must focus on elevating India’s economic partnership with the Arab world to the next level. For India, the costs of neglecting the new possibilities for wide-ranging Arabian business are far higher than a lost railway contract in Iran.

  • Explained: Consumer Protection Act, 2019

    The Consumer Protection Act, 2019 has come into effect from July 20, replacing the earlier Consumer Protection Act, 1986.

    Consumer Protection Act_Provisions of Consumer Protection Act 2019

    What are the Rights of the Consumers?

    Try this question from our AWE initiative 

    Compare and contrast the Consumer Protection Act 1986 with that of the Consumer Protection Bill 2018. How far do you think the changes made are consumer centric towards benefiting the consumer more? Examine. (250 W/ 15 M)

    Consumer Protection Act, 2019: Key Features

    1) Definition of consumer

    • A consumer is defined as a person who buys any good or avails a service for a consideration. 
    • It does not include a person who obtains a good for resale or a good or service for commercial purpose. 
    • It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

    2) Rights of consumers

    The following consumer rights have been defined in the Act, including the right to:

    • be protected against marketing of goods and services which are hazardous to life and property;
    • be informed of the quality, quantity, potency, purity, standard and price of goods or services;
    • be assured of access to a variety of goods or services at competitive prices; and
    • seek redressal against unfair or restrictive trade practices.
       

    3) Establishment of Central Consumer Protection Authority

    • The central government will set up a CCPA to promote, protect and enforce the rights of consumers. 
    • It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. 
    • The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations. 

    4) Penalties for misleading advertisement

    • The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement. 
    • In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years. 
    • CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year.
    • For every subsequent offence, the period of prohibition may extend to three years.  

    5) Consumer Disputes Redressal Commission

    • CDRCs will be set up at the district, state, and national levels. 
    • A consumer can file a complaint with CDRCs in relation to: unfair or restrictive trade practices; defective goods or services etc.
    • Complaints against an unfair contract can be filed with only the State and National   Appeals from a District CDRC will be heard by the State CDRC. 
    • Appeals from the State CDRC will be heard by the National CDRC.  Final appeal will lie before the Supreme Court.

    6) Jurisdiction of CDRCs

    • The District CDRC will entertain complaints where value of goods and services does not exceed Rs one crore. 
    • The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore. 
    • Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.
       

    7) Product liability

    • Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service. 
    • To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Act.

    With inputs from: PRS

  • What is the Non-Aligned Movement (NAM)?

    Non-alignment is an old concept today, and India has adopted an approach of “issue-based alignment”, according to External Affairs Minister S. Jaishankar.

    Try this question for mains:

    Q.“The gradual exit of the US from institutional geopolitics has created an ocean of opportunity for small nations”. Discuss.

    What is the Non-Aligned Movement (NAM)?

    • The NAM is a forum of 120 developing world states that are not formally aligned with or against any major power bloc.
    • The group was started in Belgrade, Yugoslavia in 1961.
    • After the UN, it is the largest grouping of states worldwide.

    Its formation

    • NAM emerged in the context of the wave of decolonization that followed World War II.
    • It was created by Yugoslavia’s President, Josip Broz Tito, India’s first PM, Jawaharlal Nehru, Egypt’s second President Gamal Abdel Nasser, Ghana’s first president Kwame Nkrumah, and Indonesia’s first President, Sukarno.
    • All five leaders believed that developing countries should not help either the Western or Eastern blocs in the Cold War.
    • As a condition for membership, the states of the NAM cannot be part of a multilateral military alliance (such as the NATO) or have signed a bilateral military agreement with one of the “big powers” involved in Great Power conflicts.
    • However, its idea does not signify that a state ought to remain passive or even neutral in international politics.

    Its relevance today

    • One of the challenges of the NAM in the 21st century has been to reassess its identity and purpose in the post-Cold War era.
    • The movement has continued to advocate for international cooperation, multilateralism, and national self-determination, but it has also been increasingly vocal against the inequities of the world economic order.
    • On the contrary, from the founding of the NAM, its stated aim has been to give a voice to developing countries and to encourage their concerted action in world affairs.

    The geopolitics of opportunity

    • Non-alignment was a term of a particular era and geopolitical landscape. One aspect was independence, which remains a factor of continuity for India.
    • The consequences of global shifts, including the US and the assertiveness of China, are opening spaces for middle powers like India, Japan, the EU and others.

    US repositioning has impacted everyone

    • The consequence of repositioning of the US, that the big umbrella is now smaller than it used to be, has allowed many other countries to play more autonomous roles.
    • India needs to take more “risks”, as the world expected it to take a more proactive stance on various issues including connectivity, maritime security, terrorism, climate change and terrorism.

  • Adjusted Gross Revenue (AGR) in Telecom Sector

    The Centre and telcos assured the Supreme Court that they would not conduct any re-assessment or re-calculation of the Adjusted Gross Revenue (AGR) dues, which now stands at ₹1.6 lakh crore.

    Try this question for mains:

    Q.What are the various challenges faced by India’s telecom before the upgradation to 5G technology?

    What is AGR?

    • Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
    • It is divided into spectrum usage charges and licensing fees, pegged between 3-5 per cent and 8 per cent respectively.

    What is the issue?

    • The Bench observed that 15 or 20 years was not a reasonable time period and the telcos must come forward with an appropriate time frame.
    • The Centre had earlier urged the court that up to 20 years be given to the firms for the payments.
    • The telcos said they were in no position to give fresh bank guarantees for the payments.

    Why is AGR important?

    • The definition of AGR has been under litigation for 14 years.
    • While telecom companies argued that it should comprise revenue from telecom services, the DoT’s stand was that the AGR should include all revenue earned by an operator, including that from non-core telecom operations.
    • The AGR directly impacts the outgo from the pockets of telcos to the DoT as it is used to calculate the levies payable by operators.

    Read the complete issue here at:

    https://www.civilsdaily.com/news/explained-adjusted-gross-revenue-agr-in-telecom-sector/

  • BlackRock Android Malware

    Various security firms have alerted about new malware, called BlackRock.

    Try this question from CSP 2018:

    Q.The terms ‘WannaCry, Petya, Eternal Blue’ sometimes mentioned news recently are related to

    (a) Exoplanets

    (b) Cryptocurrency

    (c) Cyberattacks

    (d) Mini satellites

    BlackRock

    • BlackRock isn’t exactly a new malware. In fact, it is based on the leaked source code of the Xeres malware, itself derived from a malware called LokiBot.
    • The only big difference between BlackRock and other Android banking trojans is that it can target more apps than previous malwares.

    How does it work?

    • BlackRock works like most Android malware. Once installed on a phone, it monitors the targeted app.
    • When the user enters the login and/or credit card details, the malware sends the information to a server.
    • BlackRock uses the phone’s Accessibility feature and then uses an Android DPC (device policy controller) to provide access to other permissions.
    • It can be used to send and steal SMS messages, hide notifications, keylogging, AV detection, and much more.

    Threats posed

    • The new malware can steal information like passwords and credit card information from about 377 smartphone applications, including Amazon, Facebook, and Gmail.
    • It is so powerful that it makes antivirus applications useless.

  • [pib] Asteroid 2020 ND

    NASA has issued a warning that a huge “Asteroid 2020 ND” will move past Earth on July 24.

    Try this question from CSP 2014:

    Q.What is a coma, in the content of astronomy?

    (a) Bright half of material on the comet

    (b) Long tail of dust

    (c) Two asteroids orbiting each other

    (d) Two planets orbiting each other

    What are Asteroids?

    • Asteroids are small, rocky objects that orbit the Sun. They are leftover from the formation of our solar system.
    • Although asteroids orbit the Sun like planets, they are much smaller than planets.
    • There are lots of asteroids in our solar system. Most of them live in the main asteroid belt—a region between the orbits of Mars and Jupiter.
    • Some asteroids go in front of and behind Jupiter. They are called Trojans.
    • Asteroids that come close to Earth are called Near-Earth Objects, NEOs for short. NASA keeps a close watch on these asteroids.

    Asteroid 2020 ND

    • The 2020 ND is about 170 metres-long.
    • It will be as close as 0.034 astronomical units (5,086,328 kilometres) to our planet and is travelling at a speed of 48,000 kilometres per hour.
    • Its distance from Earth has placed it in the “Potentially Hazardous Asteroids (PHAs)” category.

    How are PHAs defined?

    • PHAs are currently defined based on parameters that measure the asteroid’s potential to make threatening close approaches to the Earth.
    • NASA classifies objects like these as ‘near-Earth objects’ (NEOs) as they get nudged by other planets’ gravitational attraction resulting in their proximity to our solar system.
    • It is not necessary that asteroids classified as PHAs will impact the Earth. It only means there is a possibility for such a threat.

    Can they be deflected?

    • Over the years, scientists have suggested different ways to ward off such threats, such as blowing up the asteroid before it reaches Earth or deflecting it off its Earth-bound course by hitting it with a spacecraft.
    • The most drastic measure undertaken so far is the Asteroid Impact and Deflection Assessment (AIDA), which includes NASA’s Double Asteroid Redirection Test (DART) mission and the ESA’s Hera.
    • Both mission’s target is Didymos, a binary near-Earth asteroid, one of whose bodies is of the size that could pose the most likely significant threat to Earth.
    • In 2018, NASA announced that it had started the construction of DART, which is scheduled to launch in 2021 with an aim to slam into the smaller asteroid of the Didymos system at around 6 km per second in 2022.
    • Hera, which is scheduled to launch in 2024, will arrive at the Didymos system in 2027 to measure the impact crater produced by the DART collision and study the change in the asteroid’s orbital trajectory.

    Back2Basics: Near-Earth objects (NEOs)

    • NEOs are comets and asteroids nudged by the gravitational attraction of nearby planets into orbits which allows them to enter the Earth’s neighbourhood.
    • These objects are composed mostly of water ice with embedded dust particles, and occasionally approach close to the Earth as they orbit the Sun.
    • NASA’s Center for Near-Earth Object Study (CNEOS) determines the times and distances of these objects as and when their approach to the Earth is close.

  • [pib] Manodarpan Initiative

    The Union HRD Ministry will launch the Manodarpan Initiative, today.

    Try this question from CSP 2016:

    Q.’Rashtriya Garima Abhiyaan’ is a national campaign to:

    (a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood

    (b) release the sex workers from their practice and provide them with alternative sources of livelihood

    (c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers

    (d) release the bonded labourers from their bondage and rehabilitate them

    Manodarpan Initiative

    • ‘Manodarpan’ covers a wide range of activities to provide psychosocial support to students, teachers and families for Mental Health and Emotional Wellbeing during the COVID outbreak and beyond.
    • It contains advisory, practical tips, posters, videos, do’s and don’ts for psychosocial support, FAQs and online query system.
    • It aims to provide psychosocial support to students for their mental health and well-being.
    • It has been included in the Atmanirbhar Bharat Abhiyan, as a part of strengthening human capital and increasing productivity and efficient reform and initiatives for the education sector.
    • A toll-free helpline will also be launched as part of the initiative for a country-wide outreach to students from schools, colleges and universities.
    • Through this helpline, tele-counselling will be provided to the students to address their mental health and psychosocial issues.

  • Changing dynamics in China-Pakistan collusion against India

    India has always been aware of the China-Pak collusion and their mutual support to each others’ actions. But the underlying basis has been changing now. It is no longer Pakistan seeking Chinese support in J&K as much as it is the other way around.

    Preparedness for a two-front war

    • The debate regarding India’s capability to fight a war in which there is full collusion between China and Pakistan has generally remained inconclusive.
    • Most detractors of the belief regarding China’s military-operational support to Pakistan, have leaned on the argument that China will adopt a policy to suit its interests.
    • Both in 1965 and 1971, China made some promises to Pakistan but chose to stay away.
    • Of course, that was during the Cold War — a completely different international strategic environment.

    China-Pakistan collection action in Kashmir

    • Pakistan increased its proxy campaign in J&K almost in sync with two China-related trends.
    • First, enhanced PLA assertiveness in Eastern Ladakh.
    • Second, the announcement of the Belt and Road Initiative (BRI).
    • A progressively altering Chinese attitude towards the Kashmir issue started to take shape as early as 2008-09, with issuing stapled visas to Indians residing in J&K and denial of a visa to the Northern Army Commander were signs of it.
    • This support was also witnessed on issues like the Nuclear Suppliers Group (NSG), Pakistan’s involvement in global terrorism and the abrogation of Article 370.

    Pincer approach in Ladakh

    • It is no longer Pakistan seeking Chinese support for its adventurism as much as it is the other way around.
    • The mutuality of interests has increased and military coordination has become a larger part of the overall strategy.
    • China may force further escalation this season depending upon how the world responds to its expansionism.
    • China could also adopt a posture which prepares it, along with Pakistan, towards a future “pincer approach” in Ladakh.
    • Along with Ladakh — Arunachal, Sikkim and the Central Sector are very part of the expanded collusive strategy.
    • But it is Ladakh where the effect is intended most and it is there that the pincer approach may prove more challenging for India.

    Suggestions for India

    • Assuming that confrontation with the Sino-Pak combine is inevitable now or later, one of the ways for India to offset this is to project sufficient capability.
    • The diplomatic and military domains have to play this out effectively.
    • India cannot be seen to be alone or militarily weak.
    • It has tremendous support internationally which must translate into a higher level of strategic support.
    • Militarily, Pakistan should never be able to perceive that it will be allowed to fight as per choice and conceived strategy.
    • China’s success or failure in such adventurism will set the course of its future strategy against its multiple adversaries.
    • That is the psyche which India must exploit to prevent escalation and win this and impending standoffs without fighting.
    • This needs a rapid and all-out national effort with the highest priority accorded to it, including budgeting.

    Conclusion

    India cannot afford to focus only on the northern borders. A firm and full strategy to deal with Pakistan in all contingencies has now become imperative.

  • Concerns over Australia in the Malabar Exercise

    While the idea of inviting Australia to join Malabar is being explored, we must not forget the concerns with it. This article examines such concerns.

    Context

    • India’s Ministry of Defence discussed the issue of adding Australia to the trilateral Malabar naval exercise.
    • If materialised, it will be the first time since 2007 that all members of Quad-India, U.S., Japan and Australia will participate in a joint military drill.

    Possible consequences of the move

    • The Chinese leadership sees the maritime Quadrilateral as an Asian-NATO that seeks only to contain China’s rise.
    •  India’s intention to involve Australia in the Malabar drill could only be construed as a move directed against Beijing.

    India’s perspective

    • Following the stand-off in Ladakh, many Indian analysts believe the time is right for India to shed its traditional defensiveness in the maritime domain.
    • The realists advocate an alliance with the U.S., Japan and Australia to counter Chinese moves in the Indian Ocean.

    Concerns

    1) Contrary message to China

    • While India and China are negotiating a truce, Australia’s participation in the Malabar exercise sends contrary signals to Beijing.
    • If China responded aggressively in the Eastern Indian Ocean, it could needlessly open up a new front in the India-China conflict.

    2) Only modest gains for India

    • U.S. and its Pacific partners want to form a maritime coalition to implement a ‘rules-based order’ in the Indo-Pacific littorals.
    • India’s priority is to acquire strategic capabilities to counter a Chinese naval presence in the Indian Ocean.
    •  Indian Navy is yet to develop the undersea capability to deter Chinese submarines in the eastern Indian Ocean.
    • With U.S. defence companies hesitant to share proprietary technology the gains for India, in exchange for signing up the ‘military-quad’, are modest.
    • Without strategic technology transfers, Indian Navy’s deterrence potential in the Indian Ocean Region (IOR) will not improve much.

    3) Operational issue: India will be drawn into power dynamics of the Asia-Pacific

    • With the strategic contest between the U.S. and China, there is every possibility that the military-Quad will be used to draw India into the security dynamics of the Asia-Pacific.
    • The U.S. would expect its Indo-Pacific partners, including India, to assist the U.S. Navy in its South China Sea endeavour.
    •  The U.S. and Japanese navies have little spare capacity for sustained surveillance and deterrence operations in the IOR.
    • Australia is an exception and is ready and able to partner India in securing the Eastern Indian Ocean.

    4) Timing

    • A balancing coalition must come together at a time when the nature and magnitude of the threat are wholly manifest.
    • But, despite a growing presence in the Indian Ocean, the Chines Navy is yet to physically threaten Indian interests at sea.
    • So, the onus of the first move to precipitate a crisis in the Eastern Indian Ocean lies with the Indian Navy.

    Conclusion

    Upgrading the trilateral Malabar to a quadrilateral, without acquiring the requisite combat and deterrence capability, could yield gains for India in the short term, but would prove ineffective in the long run.

  • Exporting agri-inputs

    Some changes could make India exporter of agri-inputs. The article examines bottlenecks that holds India back and suggests the policy changes in key agri-inputs-seeds, fertilisers and machinery.

    Context

    In the following 3 key agri-inputs India has the untapped potential. What is needed is policy changes.

    1) Seeds

    • India can emerge as an important seed producer and a large exporter of seeds to many developing countries in South and South-east Asia as well as Africa.
    • The country can produce very competitively-priced seeds for hybrid rice, hybrid corn, hybrid Bt HT cotton, and several vegetables including tomato, potato and okra.
    • For this to happen, we have to set our regulatory system right.
    • Let’s use the case of cotton.
    • India’s decision in March 2002 to allow Bt cotton made India the largest producer of cotton in the world and the second-largest exporter of cotton by 2013-14.
    • But due to policy changes since 2014-15 and issues such as trait fees companies stopped the introduction of new generation of seeds
    • Now there is an “illegal” spread of Bt HT cotton in Maharashtra.
    • This is partly because our regulatory system is complex.
    • And more so because the present government has ideological blinkers against modern science.
    • This is the biggest bottleneck holding India back from becoming the seed capital of the developing world.

    2) Fertilisers

    • India has been a net importer of fertiliser nutrients (NPK) for almost two decades.
    • In 2019-20, India imported fertilisers worth $6.7 billion, topping the list is urea $2.9 billion.
    • We are totally dependent on imports and likely to remain so in case of MOP and in the case of DAP.
    •  In the case of urea, India wants to be atmanirbhar by opening up five new urea plants in the public sector with a total capacity of 6.35 MMT.
    • Almost 70 per cent of the gas being used in urea plants is imported at a price much higher than the price of domestic gas.
    • The cost is going to be more than $400/tonne when the international price generally hovers between $250-300/tonne.
    • The government should allow existing private sector urea plants to expand and produce at a much lower cost.
    • The best way to achieve self-reliance in fertilisers is to change the system of fertiliser subsidies.

    Suggestion on changes in fertiliser subsidies

    • 1) Deposit equivalent cash directly into farmers’ accounts, calculated on a per hectare basis.
    • 2) Free up fertiliser prices.
    • 3) Allow the private sector plants to compete and expand urea production in a cost-competitive manner.

    3) Farm machinery

    • Before the Green Revolution, India produced only 880 tractor units.
    • It increased to about 9,00,000 units in 2018-19.
    • So, India is the largest tractor manufacturer in the world.
    • India also exported almost 92,000 tractors, largely to African and ASEAN countries.
    • Though Green Revolution gave tractor production a push, the real break-through came after de-licensing in 1991.
    • The new class of entrepreneurs and start-ups are coming up with special apps for “Uberisation of tractor services”.
    • In an economy of small landholders, owning a tractor is a high-cost proposition as it is not fully utilised.
    • This needs to be made more efficient by creating a market for tractor services.

    Consider the question “Despite having the potential to transform itself into the exporter of agri-inputs, India ends up being the importer of some of them. In light of this examine India’s potential to become the exporter of agri-input products and suggest the measures to achieve this.”

    Conclusion

    The private sector is our strength. The only thing the government has to do is to unshackle them from the chains of controls and webs of unnecessary regulations. They will make an Atmanirbhar Bharat.