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  • Cabinet approves continuation of PM-AASHA to provide better prices to farmers

    Why in the News?

    The government has approved the extension of the PM-AASHA scheme, allocating ₹35,000 crore, to ensure farmers receive better prices for their produce and to regulate price fluctuations of essential commodities for consumers.

    What is PM-AASHA?

    Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is an umbrella scheme launched by the Government of India in September 2018, aimed at ensuring remunerative prices for farmers’ produce. It integrates various existing schemes to provide a comprehensive approach to price support, including:

    • Price Support Scheme (PSS): Physical procurement of specific crops by central agencies.
    • Price Deficiency Payment Scheme (PDPS): Direct payments to farmers for the difference between the Minimum Support Price (MSP) and market prices.
    • Pilot of Private Procurement & Stockist Scheme (PPPS): Involvement of private players in crop procurement.

    The scheme has been extended until 2025-26 with a financial outlay of ₹35,000 crore to enhance its effectiveness and reach.

    What are the implications of PM-AASHA?

    • Income Security: By ensuring MSP, PM-AASHA aims to stabilize farmers’ incomes and protect them from price fluctuations in the market.
    • Increased Production: The assurance of remunerative prices is expected to encourage farmers to increase production, particularly in pulses and oilseeds, which have historically been underproduced.
    • Market Stability: The scheme helps regulate prices of essential commodities, making them affordable for consumers while ensuring fair compensation for producers.
    • Strengthened Procurement Mechanism: The integration of various schemes under PM-AASHA enhances the overall procurement process, making it more efficient and transparent.

    What are the issues related to MSP?

    • Limited Coverage: MSP is primarily applicable to a few crops like wheat and rice, leaving many farmers without guaranteed prices for their produce.
    • Inefficient Procurement Infrastructure: The existing infrastructure for procurement is inadequate, leading to delays and inefficiencies that affect farmers’ ability to sell their produce at MSP.
    • Lack of Awareness: Many farmers are unaware of their rights regarding MSP or how to access these benefits effectively.
    • Regional Disparities: There are significant regional disparities in the implementation of MSP. States like Punjab and Haryana benefit more from MSP due to better procurement systems, while farmers in other states may struggle to access these benefits.
    • Market Distortions: The MSP system leads to market distortions, encouraging overproduction of certain crops while neglecting others.

    What should be done to resolve the issues related to MSP?

    • Expand MSP Coverage: The government should consider extending MSP to a wider range of crops, particularly those that are crucial for food security and farmer livelihoods.
    • Enhance Procurement Infrastructure: Investments should be made in developing better procurement facilities, including storage and transportation systems, especially in rural areas.
    • Increase Awareness Campaigns: Implementing educational programs for farmers about their rights regarding MSP and how they can benefit from it would empower them significantly.

    Mains PYQ:

    Q What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap?  (UPSC IAS/2016)

  • Bombay HC strikes down amended IT rules

    Why in the News?

    The Bombay High Court on Friday struck down the amended IT Rules, 2023, which allowed the Centre to establish a fact-check unit for monitoring government-related misinformation.

    Background of the Case

    • In April 2023, the Ministry of Electronics and IT (MEiTY) amended the Information Technology (IT) Rules, 2021, to establish a Fact Check Unit (FCU) aimed at identifying “fake, false, and misleading” information about the Central government on social media platforms.

    Reason Behind the Strike Down

    • Violation of Fundamental Right: Justice Chandurkar struck down the amended IT Rules 2023 on grounds that they violated Articles 14 (right to equality), 19 (freedom of speech and expression), and 19(1)(g) (freedom to practice any profession) of the Constitution.
    • Lack of clear defination: The terms “fake, false and misleading” were deemed vague due to the absence of clear definitions, leading to potential misuse and a chilling effect on intermediaries’ operations.
      • The ruling emphasized that the lack of clarity in the rules could lead to arbitrary censorship by the government, undermining democratic principles.

    What are the IT Rules 2023?

    • The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 empower the government to mandate social media platforms like Facebook, Twitter, Instagram, and YouTube to remove content deemed “fake, false or misleading” regarding government affairs.
    • The Fact Check Unit (FCU) was designated as the authority to identify such content. If intermediaries failed to comply with its directives, they risked losing their safe harbour status under Section 79 of the IT Act, 2000.

    The implications of FCU: 

    • Potential censorship of political discourse and criticism.
    • Increased pressure on social media platforms to comply with government directives.
    • A risk of undermining independent journalism and fact-checking efforts by civil society organizations.

    Way forward: 

    • Clear Definitions and Safeguards: Introduce precise definitions for terms like “fake, false, and misleading” and establish an independent oversight mechanism to prevent arbitrary censorship, ensuring the protection of free speech and democratic values.
    • Strengthen Accountability: Encourage collaboration between the government, civil society, and tech platforms to create transparent and accountable fact-checking processes while protecting intermediaries’ safe harbour status and upholding freedom of expression.

  • Adjusted Gross Revenue (AGR)

    Why in the News?

    The Supreme Court has dismissed the curative petitions filed by major telecom service providers, seeking relief from the 2019 judgment regarding Adjusted Gross Revenue (AGR) dues.

    What is Adjusted Gross Revenue (AGR)?

    • AGR is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
    • It forms the basis for calculating telecom companies’ dues to the government, including the license fee and spectrum usage charges (SUC).
    • The AGR is divided into:
    1. Spectrum Usage Charges (SUC): These are pegged at 3-5% of AGR, depending on the telecom company’s spectrum holdings.
    2. License Fees: Telecom operators are required to pay 8% of their AGR as a license fee to the government.

    Contention over AGR Calculation

    • The DoT maintains that AGR should include all revenues earned by telecom companies, including non-telecom sources such as deposit interest, asset sales, and dividends.
    • Telecom operators, on the other hand, insist that AGR should only include revenues generated from core telecom services, excluding income from non-telecom sources like interest and capital gains.

    Legal Disputes on AGR

    1. Beginning of the Dispute (2005): The AGR saga began in 2005 when the Cellular Operators Association of India (COAI) challenged the government’s definition of AGR in court. The dispute centered on whether non-telecom revenue should be included in the AGR calculation.
    2. TDSAT Ruling (2015): In 2015, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruled in favor of telecom companies. TDSAT held that AGR should include only revenue from core telecom activities and exclude non-core sources such as rent, profit from the sale of assets, dividends, and interest income.
    3. Supreme Court Ruling (2019): Setting aside the TDSAT decision, the SC upheld the DoT’s definition of AGR on October 24, 2019, declaring that AGR must include all revenue sources, including non-telecom activities like interest and capital gains. This ruling significantly increased the financial liabilities of telecom companies, as they had to pay outstanding dues.

    Financial Impact of the AGR Ruling

    The Supreme Court ruling had serious financial implications for telecom companies:

    • Massive Liabilities: Telecom companies, especially Vodafone Idea and Bharti Airtel, faced huge financial liabilities. The ruling resulted in unpaid dues amounting to over ₹1.4 lakh crore, which included penalties and interest.
    • Vodafone Idea’s Crisis: Vodafone Idea, in particular, was hit hard by these liabilities and faced potential insolvency, with its future in the Indian telecom sector hanging in the balance.
    • Sector Consolidation: The financial pressure from the AGR liabilities led to the consolidation of the telecom sector, with smaller players exiting the market.

    PYQ:

    [2019] In India, which of the following review the Independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2

    (b) 1, 3 and 4

    (c) 3, 4 and 5

    (d) 2 and 5

  • Bio-RIDE Scheme

    Why in the News?

    The Union Cabinet has approved the “Biotechnology Research Innovation and Entrepreneurship Development (Bio-RIDE) scheme” to support cutting-edge research and development in biotechnology.

    About Bio-RIDE Scheme

    Details
    Objective To support cutting-edge research, bio-entrepreneurship, and bio-manufacturing in biotechnology.
    Total Outlay ₹9,197 crore for the 15th Finance Commission period (2021-22 to 2025-26).
    Components
    • Merges Biotechnology Research and Development (R&D) and Industrial & Entrepreneurship Development (I&ED).
    • Introduces Bio-manufacturing and Bio-foundry as new components.
    Key Aims
    • Fostering Innovation: Promote bio-entrepreneurship and strengthen India’s position in biotechnology.
    • Bridging Gaps: Accelerate research and product development.
    Implementation Focus
    • Promoting Bio-Entrepreneurship: Seed funding, incubation, mentorship for startups.
    • Advancing Innovation: Grants for research in synthetic biology, bio-pharma, and bio-plastics.
    Focus Areas
    • Extramural Funding for research in agriculture, healthcare, bioenergy, and environmental sustainability.
    • Nurturing human resources in biotechnology.
    Industry-Academia Collaboration Synergies between academic institutions and industry to accelerate commercialization of bio-based products.
    Significance
    • Enhances bio-innovation and supports sustainable development.
    • Contributes to achieving green goals and global leadership in biotechnology.

     

    PYQ:

    [2019] Atal Innovation Mission is set up under the

    (a) Department of Science and Technology

    (b) Ministry of Labour and Employment

    (c) NITI Aayog

    (d) Ministry of Skill Development and Entrepreneurship
  • [21st September 2024] The Hindu Op-ed: The stakes in Sri Lanka’s ninth Presidential election 

    [21st September 2024] The Hindu Op-ed: The stakes in Sri Lanka’s ninth Presidential election 

    PYQ Relevance:

    Q). ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement. (UPSC CSE 2022)
    Q). In respect of India — Sri Lanka relations, discuss how domestic factors influence foreign policy. (UPSC CSE 2013)

    Mentor’s Comment:  The preference for leftist and rightist ideologies in global geopolitics is influenced by a variety of factors, each reflecting distinct political, economic, and social dynamics. In times of economic distress, leftist ideologies often resonate with populations facing inequality and poverty. They advocate for social welfare programs, wealth redistribution, and increased government intervention in the economy to address systemic issues. 

    The recent presidential elections in Sri Lanka, held on September 21, 2024, marked a significant turning point in the country’s political landscape. Anura Kumara Dissanayake, the leader of the leftist National People’s Power (NPP) coalition and chief of the Janatha Vimukthi Peramuna (JVP), emerged victorious, signaling a departure from the traditional political parties that have dominated Sri Lankan politics for decades.

    _

    Let’s learn!

    Why in the News?

    There are some significant political developments following the recent ninth presidential election held on September 21, 2024.

    • It marks the first time in Sri Lanka’s history that a presidential election required a second round of counting to determine the winner.
    • This change reflects a significant shift in the electoral landscape since the introduction of the executive presidency in 1978.

    What does leftist victory signify for Sri Lanka’s political landscape?

    • Political Paradigm Shift: Dissanayake’s leadership marks the first time a president with a pronounced leftist ideology has taken office, indicating a potential shift towards more state intervention in the economy. It signals a rejection of the traditional parties that have dominated Sri Lankan politics for decades.
    • Public Sentiment and Economic Crisis: Dissanayake’s campaign focused on anti-corruption and economic reform, resonating with voters who blame corruption for the nation’s economic collapse.
    • Geopolitical Implications: The new administration’s leftist leanings may influence Sri Lanka’s foreign relations, particularly its ties with China and India, as Dissanayake is perceived as potentially favoring China.

    What are the future Governance challenges?

    • Need for Parliamentary Majority: Although elected president, Dissanayake faces the challenge of securing a parliamentary majority to implement his policies effectively.
    • Balancing Act: He must navigate between leftist ideals and the need for foreign investment and cooperation, particularly with entities like the IMF, which has provided crucial financial support.
    • Addressing Tamil Aspirations: Engaging with the Tamil minority and addressing their calls for greater autonomy will be critical for national unity and stability.
    • Systemic Change: the Leftist party has promised to address systemic corruption and may seek to abolish or reform the executive presidency, reflecting a desire for democratic renewal.
    Implication on India:

    • Economic Impact: Sri Lanka’s share in India’s total exports has declined from 2.16% in FY15 to just 1.3% in FY22. India relies heavily on the port of Colombo for global trade, with approximately 60% of India’s transhipment cargo handled by the port.
    • Strategic Implications: India sees the crisis as an opportunity to counter China’s influence in Sri Lanka, which has been a concern due to Sri Lanka’s proximity to China. India has provided $4 billion in financing facilities to Sri Lanka.
    • Strengthening Bilateral Relations: Although India’s support during the crisis has generated goodwill, underlying anti-India sentiment and the need for Sri Lanka to balance relations with multiple major economies pose challenges to deeper engagement.
    • Refugee Influx: India has witnessed a large influx of ethnic Tamil community refugees from Sri Lanka during past political or social crises.

    How will this address the ongoing economic crisis?

    • Renegotiation of IMF Terms: The leftist leaders have committed to renegotiating the austerity measures imposed by the IMF.
      • Further, they also have plans to adjust taxation policies, including raising the personal income tax exemption threshold and removing VAT on essential goods.
    • Production-Based Economy: The present government envisions transforming into a production-based economy. This shift aims to reduce reliance on imports and enhance local production capabilities.
    • Bilateral Debt Agreements: Sri Lanka inherits a complex debt situation but aims to seek better terms for existing agreements with international creditors, including China and India. Hence they will prioritize negotiations that enhance fiscal sustainability while addressing public needs.

    Opportunities for India:

    • Tea Exports: Amid the decline in Sri Lanka’s tea production, India is well-positioned to capture markets significantly in countries that import orthodox tea, such as Iran, Turkey, Iraq, China, and Canada.
    • Textile Exports: Indian apparel exporters are receiving orders from the UK and Latin American countries where Indian textiles had very little or no presence before the crisis.

    Conclusion: As the first leftist candidate to be elected president, he faces the daunting challenge of steering the nation through its worst economic crisis while navigating complex geopolitical dynamics and entrenched political interests.

  • Nagaland’s King Chilli Festival

    Why in the News?

    The village of Seiyhama in Nagaland hosted the 3rd edition of the Naga King Chilli Festival, celebrating the importance of the Naga king chilli, one of the world’s hottest chillies.

    About Naga King Chilli

    • The Naga King Chilli, also known as Raja Mircha or Bhut Jolokia, is one of the world’s hottest chillies, with heat levels exceeding 1 million Scoville Heat Units (SHU).
    • It is primarily grown in the Northeast Indian states of Nagaland, Assam, Manipur, and Arunachal Pradesh.
    • In 2006, it was certified by the Guinness World Records as the hottest chilli in the world, a title it held for several years.
    • In 2008, it received a GI tag, recognizing its unique origin and significance in the global spice market.
    • The chilli has a heat range of 800,000 to 1,041,427 SHU, making it significantly hotter than common chillies like the jalapeño, which has a SHU of 2,500 to 8,000.
    • Benefits offered:
      • Rich in capsaicin, it is known for its pain-relieving properties and potential health benefits, such as boosting metabolism, promoting heart health, and relieving pain and inflammation.
      • Traditionally, the chilli has been used to preserve food in Nagaland’s hot, humid climate, helping to extend the shelf life of food and reduce waste.
    • Cultivation:
      • The chilli is grown in bamboo groves using ancient cultivation methods.
      • Farming begins in December or January, with peak harvests in August and September.
      • Approximately 150 households in Seiyhama village, Nagaland, cultivate the Naga King Chilli, with the annual harvest reaching 14,000 kg, valued at ₹70 lakh.

    PYQ:

    [2015] Which of the following has/have been accorded ‘Geographical Indication’ status?

    1. Banaras Brocades and Sarees

    2. Rajasthani Daal-Bati-Churma

    3. Tirupathi Laddu

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 only 3 only

    (d) 1, 2 and 3

  • [pib] Pest-Control Pheromone Dispenser

    Why in the News?

    A new sustainable pheromone dispenser has been developed through a collaborative research project by scientists from Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) and ICAR–National Bureau of Agricultural Insect Resources (ICAR–NBAIR).

    What is the Pest-Control Pheromone Dispenser?

    Details
    What is it? A device designed to release pheromones that alter the behaviour of pests, primarily used in agriculture to control infestations and prevent crop damage.
    Developed By A collaborative project by scientists from Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru, and ICAR–National Bureau of Agricultural Insect Resources (ICAR–NBAIR), India.
    How it Works
    • Releases synthetic pheromones that mimic natural insect signals.
    • Attracts pests to traps or disrupts mating cycles, preventing infestations.
    Technology
    • Uses mesoporous silica matrix technology for controlled release.
    • Ensures consistent pheromone release, independent of external factors like temperature.
    Benefits
    • Cost-effective: Fewer replacements of pheromones reduce overall costs.
    • Labor-saving: Longer intervals between replacements lower labor requirements.
    • Environmentally friendly: Reduces chemical pesticide use, promoting sustainable agriculture.
    • Increased efficacy: Stable release rate ensures effective pest control over extended periods.
    Scalability Suitable for both small-scale farms and large industrial agricultural operations, making it highly scalable.

     

    PYQ:

    [2018] With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:

    1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.

    2. GM mustard has the genes that allow the plant cross-pollination and hybridization.

    3. GM mustard has been developed jointly by the IARI and Punjab Agricultural University.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

  • Square Kilometer Array (SKA) becomes partially functional

    Why in the News?

    The Square Kilometer Array (SKA), the world’s largest radio telescope, has carried out its first observations, marking a major milestone.

    About Square Kilometer Array (SKA) Project:

    Details
    Project Overview SKA is a global project aimed at building the world’s largest radio telescope network to explore the universe, galaxies, dark matter, and extraterrestrial life.
    Construction Phases Two phases:

    1. SKA-Mid in South Africa operates in higher frequency ranges.
    2. SKA-Low in Australia operates in lower frequency ranges.

    Phase 1 (SKA- Mid) began in December 2022. Full operations expected by 2029.
    Headquarters Jodrell Bank Observatory, UK
    Site Locations Telescope arrays in Australia (low-frequency) and South Africa (mid-frequency).
    Design and Features
    • 197 parabolic radio antennae in South Africa
    • 131,072 low-frequency antennae in Australia

    These are capable of detecting faint radio signals from vast distances.
    Global Consortium 16 member countries, including Australia, South Africa, India, China, Japan, and several European nations.
    India’s Role
    • India’s Giant Metrewave Radio Telescope (NCRA, TIFR) is a key partner
    • SKA India consortium (20+ institutions) involved in software, signal processing, and digital hardware development
    Key Technologies Advanced interferometer system using wave interference for data collection.
    Scientific Objectives
    • Explore galaxies at the edge of the universe
    • Study the ‘Dark Ages’ and phenomena like dark matter and dark energy
    • Search for extraterrestrial life
    Frequency Range Operates between 50 MHz to 15.4 GHz
    Global Collaboration Key collaboration among India, Australia, South Africa, Italy, and other member nations for data generation, analysis, and installation of antennas.

     

    PYQ:

    [2022] Launched on 25th December, 2021, James Webb Space Telescope has been much in the news since then. What are its unique features which make it superior to its predecessor Space Telescopes? What are the key goals of this mission? What potential benefits does it hold for the human race?

    [2015] In the context of modern scientific research, consider the following statements about ‘IceCube’, a particle detector located at South Pole, which was recently in the news:

    1. It is the world’s largest neutrino detector, encompassing a cubic kilometre of ice.

    2. It is a powerful telescope to search for dark matter

    3. It is buried deep in the ice.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3 only
  • [20th September 2024] The Hindu Op-ed: Acclamation for an Indian leadership that still endures

    [20th September 2024] The Hindu Op-ed: Acclamation for an Indian leadership that still endures

    PYQ Relevance:

    Q) Do you think BIMSTEC is a parallel organisation like the SAARC? Waht are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation? (UPSC CSE 2022)

    Q) The Indian Diaspora has an important role to play in the South-East Asian country’s economy and society. Appraise the role of Indian Diaspora in South- East Asia in this context (UPSC CSE 2017)

    Q) What problems were pertinent to the decolonization in the Malay Peninsula? (UPSC CSE 2017)

    Mentor’s Comment:  Malaysian PM Anwar Ibrahim’s recent visit to India highlighted the enduring legacy of Jawaharlal Nehru and India’s leadership role in shaping the Global South agenda. He praised India’s G20 Chairmanship and Voice of Global South Summits, emphasizing the importance of Nehru’s vision for a just and prosperous nation. Despite domestic criticism, Nehru’s reputation remains intact globally. Anwar’s references to historical Indian figures reflect shared cultural heritage and intellectual ties. The visit aimed to strengthen India-Malaysia relations and promote cooperation on global issues while acknowledging complexities surrounding minority rights and regional conflicts.

    _

    Let’s learn!

    Why in the News?

    Malaysian PM Anwar Ibrahim during his visit to India (August 19-21, 2024),  praised India’s role in shaping the Global South agenda, highlighting its capacity for cooperation with the Global North and commending India’s G20 Chairmanship.

    Enduring Legacy of Nehru
    • Struggle against Imperialism: Nehru was deeply concerned with the fight against European colonial powers, particularly in Asia. 
    He believed newly independent nations should unite to resist imperialism and promote their sovereignty.
    • Asian Relations Conference: In 1947, Nehru organized the Asian Relations Conference in New Delhi, which aimed to foster solidarity among Asian countries and chart a collective path forward in the post-colonial era.
    • Non-Alignment Movement: Nehru championed the concept of non-alignment, advocating that newly independent states should not align with either the USA or the USSR during the Cold War. 
    This approach allowed these nations to maintain their sovereignty and avoid being drawn into great power conflicts.
    • Bandung Conference: Nehru played a crucial role in this conference, where leaders from Asian and African nations gathered to promote economic and cultural cooperation while opposing colonialism.
    This conference laid the groundwork for the Non-Aligned Movement (NAM), which sought to protect the interests of developing nations.

    Historical overview of India-Malaysia Relations since Nehru:

    • Early Ties and Independence: India and Malaysia share historical ties dating back over a millennium, influenced by trade and cultural exchanges established during the Chola Empire (9th-13th centuries).
      • India established diplomatic relations with the Federation of Malaya in 1957, coinciding with Malaysia’s independence.
    • Strengthening Bonds in the 1960s: The relationship flourished in the 1960s due to the personal rapport between Indian PM J. Nehru and Malaysian PM T. Rahman. This era marked a significant phase of political, economic, and socio-cultural cooperation.
    • Enhanced Strategic Partnership: In 2015, during Prime Minister Narendra Modi’s visit, India-Malaysia relations were elevated to an Enhanced Strategic Partnership, reflecting a commitment to deepen cooperation across various sectors.
    • High-Level Visits: Numerous high-level visits have nurtured ties, including visits by Indian Prime Ministers such as Indira Gandhi and Manmohan Singh, and Malaysian leaders like Mahathir Mohamad and Najib Razak.
    Areas of Cooperation:

    • Geopolitical Cooperation: Both countries are members of key international forums like the Commonwealth, NAM, and ASEAN, facilitating mutual cooperation on global issues.
    • Defense Ties: Since signing a defense cooperation memorandum in 1993, India and Malaysia have expanded military collaboration through joint exercises and training programs.
    • Economic Relations: Bilateral trade reached approximately USD 19.5 billion, with Malaysia being India’s 13th largest trading partner. Both nations engage in significant investment activities across various sectors.
    • Cultural and Diaspora Links: Malaysia hosts a large Indian diaspora (over 2.95 million), fostering cultural ties through institutions like the Indian Cultural Centre in Kuala Lumpur.

    Challenges and Complexities:

    • Political Dynamics: The relationship has faced challenges due to domestic political sentiments in Malaysia, particularly during Mahathir Mohamad’s tenure when he had to balance his Indian heritage with Malay nationalism.
    • Controversies: Issues such as the treatment of Indian expatriates in Malaysia have occasionally strained relations, but diplomatic efforts have often resolved these tensions.

    Conclusion: India-Malaysia relations since post-independence, despite facing challenges, the bilateral relationship remains robust, characterized by ongoing cooperation in various sectors and mutual respect for each nation’s sovereignty and cultural diversity

    https://www.thehindu.com/opinion/op-ed/acclamation-for-an-indian-leadership-that-still-endures/article68660980.ece

  • FATF on India: Effective Money Laundering system, low prosecution

    Why in the News?

    The FATF placed India in the “regular follow-up” category for having an “effective” anti-money laundering and counter-terror financing system but highlighted the need for significant improvements in prosecuting such cases.

    Key Highlights of the FATF Mutual Evaluation Report on India:

    • “Regular Follow-up” Category: India has been placed in the “regular follow-up” category, signifying that its system for combating money laundering and terror financing is effective.
      • Financial institutions need better risk profiling of customers, and the Ministry of Corporate Affairs (MCA) registry needs improved monitoring for accurate ownership information.
    • Money Laundering Risks: The primary sources of money laundering in India come from fraud, cyber-enabled fraud, corruption, and drug trafficking.
      • Terror threats are mainly linked to Islamic State or al-Qaeda groups in Jammu and Kashmir.
    • Non-Profit Organisations (NPOs): India should strengthen measures to prevent abuse of the NPO sector for terror financing, and enhance outreach to NPOs at risk.
    • Improvements in Sanctions Framework: India needs to improve its targeted financial sanctions framework to ensure the timely freezing of funds and assets related to terror financing.
    • Domestic Politically Exposed Persons (PEPs): The report urged India to define domestic PEPs under its anti-money laundering laws and improve identification and risk-based measures related to them.
    • Delay in prosecution: The report noted delays in prosecution due to review petitions are still pending, which delays the resolution of cases under the PMLA.

    Challenges faced by the Indian Government:

    • Prosecution and Conviction Delays: Despite an increase in investigations, the number of prosecutions and convictions remains low, with significant delays in concluding trials, especially under the PMLA.
    • Constitutionality Issues: Legal challenges to the constitutionality of the PMLA between 2014-2022 disrupted the momentum in terror financing and money laundering prosecutions.
    • Risk Profiling of Financial Customers: There is a need for better risk profiling of customers in financial institutions to address money laundering more effectively.
    • Inaccurate Ownership Information: Ensuring accurate owner information in the Ministry of Corporate Affairs (MCA) registry remains a challenge, especially concerning investments from tax havens.
    • Non-Profit Organisations: Ensuring that non-profits are not abused for terror financing requires better coordination and focused outreach by authorities.
    • Lack of Definition for Domestic PEPs: While India has defined foreign PEPs, the absence of a clear definition for domestic PEPs under PMLA creates a gap in the anti-money laundering framework.
    • Fast-Tracking Trials: The need to fast-track trials in money laundering and terror financing cases is recognized, but progress in addressing this challenge remains slow.

    Way Forward: 

    • Strengthen Legal and Institutional Framework: India should establish clear definitions for domestic Politically Exposed Persons (PEPs) under anti-money laundering laws and enhance targeted financial sanctions to ensure timely asset freezing.
    • Enhance Risk Management and Monitoring: Financial institutions should improve risk profiling and implement stricter Know Your Customer (KYC) processes, while the Ministry of Corporate Affairs should ensure accurate ownership data, especially for investments from tax havens.

    Mains PYQ:

    Q Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (UPSC IAS/2021)