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  • Armed Forces (Special Powers) Act

    AFSPA likely to end from Assam

    | Security Issues | Mains Paper 3: Organized Crime & Terrorism

    afspa

    Central Idea: Assam CM has stated that the Armed Forces Special Powers Act (AFSPA) is likely to be completely lifted from the state by the end of the year due to a significant improvement in the law and order situation.

    What is Armed Forces (Special Powers) Act, 1958?

    • Armed Forces Special Powers Act, to put it simply, gives armed forces the power to maintain public order in “disturbed areas.”
    • AFSPA gives armed forces the authority use force or even open fire after giving due warning if they feel a person is in contravention of the law.
    • The Act further provides that if “reasonable suspicion exists”, the armed forces can also arrest a person without a warrant; enter or search premises without a warrant; and ban the possession of firearms.

    A Backgrounder

    • The AFSPA, 1958 came into force in the context of insurgency in the North-eastern States decades ago.
    • It provides “special power” to the Armed Forces applies to the Army, the Air Force and the Central Paramilitary forces etc.
    • It has been long contested debate whether the “special powers” granted under AFSPA gives total immunity to the armed forces for any action taken by them.

    What are the Special Powers?

    • Power to use force: including opening fire, even to the extent of causing death if prohibitory orders banning assembly of five or more persons or carrying arms and weapons, etc are in force in the disturbed area;
    • Power to destroy structures: used as hide-outs, training camps, or as a place from which attacks are or likely to be launched, etc;
    • Power to arrest: without warrant and to use force for the purpose;
    • Power to enter and search premises: without a warrant to make arrest or recovery of hostages, arms and ammunition and stolen property etc.

    Who can declare/notify such areas?

    • The Central Government or the Governor of the State or administrator of the Union Territory can declare the whole or part of the State or Union Territory as a disturbed area.

    Issues with AFSPA

    • Power to kill: Section 4 of the Act granted officers the authority to “take any action” even to the extent to cause the death.
    • Misconduct by Armed Forces: The issue of violation of human rights by actions of armed forces came under the consideration of the Committee on Amendments to Criminal Law (popularly known as Justice Verma Committee) set up in 2012. It observed that- in conflict zones, legal protection for women was neglected.
    • Autocracy: The reality is that there is no evidence of any action being taken against any officer of the armed forces or paramilitary forces for their excesses.

    Recommendations to repeal AFSPA

    • Justice B.P. Jeevan Reddy Commission: The 2004 Committee headed by Justice B.P. Jeevan Reddy, the content of which has never officially been revealed by the Government, recommended that AFSPA be repealed.
    • ARC II: The Administrative Reforms Commission in its 5th Report on ‘Public Order’ had also recommended that AFSPA be repealed.

    Voices for repeal

    • Human rights violations: The repeal of AFSPA is necessary not just for restoring constitutional sanity, but also as a way of acknowledging the dark history of our conduct in Nagaland.
    • Need for ensuring individual dignity: The political incorporation of Nagaland (and all other areas where this law applies) will be set back if the guarantees of the individual dignity of the Indian Constitution are not extended.
    • Not state of exception: We often describe AFSPA in terms of a “state of exception”. But this theoretical term is misleading. How can a law that has been in virtually continuous existence since 1958 be described as an “exception”.
    • Lack of human empathy: At the heart of AFSPA is a profound mutilation of human empathy.

    Conclusion

    • To bring in lasting peace in the North East, the government needs to avoid the trap of watered-down peace accords.
    • While the move to withdraw AFSPA is welcome, it needs to be gradually erased.
    • For that, changes in the ground situation would be crucial. Mere smoke signals or drum-beating can never do the job.

     

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  • Foreign Policy Watch: India-ASEAN

    ASEAN’s China dilemma

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

    What’s the news?

    • In a recent ASEAN meeting, Indonesia, under the leadership of President Joko Widodo, successfully injected fresh perspectives into long-standing ASEAN stances.

    Central idea

    • The recent ASEAN meet in Jakarta, under Indonesia’s chairmanship, showcased the country’s adept handling of regional dynamics and its diplomatic finesse. With the president set to step down in 2024, this summit marked a high point in his leadership. Notably, eight ASEAN nations convened, with Myanmar excluded at the political level and Thailand undergoing a governmental transition.

    Indonesia’s nuanced approach towards the Indo-Pacific

    • Expanding the Arc of Prosperity: President Joko Widodo emphasized the need to expand the arc of prosperity within ASEAN. This highlighted Indonesia’s commitment to regional development and recognized the growing economic importance of the Indo-Pacific.
    • ASEAN Indo-Pacific Forum (AIPF): Indonesia’s leadership resulted in the creation of the AIPF. This forum brought together government leaders from ASEAN countries, partner nations, and prominent figures from the business sector to discuss peace and prosperity in the Indo-Pacific region.
    • Functional Approach: Indonesia’s approach to the Indo-Pacific was notable for its functional orientation. It emphasized cooperation and collaboration over strategic rivalry, aligning with the Quad’s cooperative outlook.
    • Balancing Act with China: While Indonesia’s stance did not explicitly confront China, the absence of China from the AIPF was noticeable. This raises questions about how Indonesia aims to balance its Indo-Pacific approach with its relationship with China.
    • Inclusive Dialogue: Indonesia’s strategy sought to position ASEAN as a key player in shaping the Indo-Pacific’s future. It underscored the importance of inclusive dialogue and cooperation for regional stability and prosperity.
    • Regional Stability and Prosperity: Indonesia’s approach acknowledges that regional stability and prosperity are best achieved through collaboration and engagement rather than through overt confrontation or rivalry.

    Myanmar’s Conundrum

    • Exclusion from Political Level: Myanmar’s absence from the political level at the recent ASEAN summit was consistent with the organization’s practice, highlighting the ongoing internal turmoil since the military coup in February 2021.
    • Indonesia’s Pragmatic Approach: Indonesia, under its ASEAN Chairmanship, demonstrated a pragmatic stance toward the Myanmar issue, recognizing the limitations of the Five-Point Consensus (5PC) framework intended for dialogue and resolution in Myanmar.
    • Office of Special Envoy: Indonesia took a distinctive approach by establishing an office of the special envoy rather than appointing an individual special envoy, allowing for discreet engagement with Myanmar, neighboring nations, India, and ASEAN members.
    • Facilitating Dialogue: The 5PC, once seen as a binding decision, is now considered a facilitating initiative, emphasizing Indonesia’s and ASEAN’s acknowledgment of the complexity of the Myanmar situation. This initiative aims to promote dialogue among various segments within Myanmar.
    • Hosting of the ASEAN Summit: Myanmar’s exclusion from hosting the 2026 ASEAN summit highlighted the growing disconnect between the nation and the regional bloc. Historically, ASEAN used hosting privileges as leverage to address issues within member states, but their effectiveness in the current context remains uncertain.

    China’s Challenge

    • Primary Challenge for ASEAN: China poses the foremost challenge to ASEAN, especially concerning the looming big-power rivalry in the region. The call for peace and prosperity in the region is essentially a plea to prevent the United States and China from displaying their rivalry within ASEAN.
    • Slow Progress on the Code of Conduct: Progress on the South China Sea (SCS) code of conduct has been sluggish. A significant point of contention is the differing interpretations of the United Nations Convention on the Law of the Sea (UNCLOS), which creates obstacles to establishing a binding code of conduct.
    • China’s Standard Map: China’s introduction of a new standard map that claims the territories of several countries, including those in the South China Sea, has added complexity to the situation. Notably, countries like India, Japan, the Philippines, Vietnam, Malaysia, and Indonesia raised their concerns about this map in bilateral discussions with China.
    • Indonesia’s Cautious Approach: Indonesia, as the host of the ASEAN and East Asia Summit (EAS), maintained a cautious approach to the issue of China’s standard map during the summit, where the Chinese Premier was in attendance.
    • Contradictions in Progress: The emphasis on UNCLOS and disputes over China’s map contradict the progress that ASEAN claims to have made on the code of conduct. The main purpose of the code is to govern the South China Sea as an international waterway, not as China’s domestic sea, as implied by the map.

    Challenges to ASEAN Unity

    • Myanmar’s Exclusion: A prominent challenge to ASEAN unity is the exclusion of Myanmar from political-level participation in the recent ASEAN summit. This exclusion stems from the ongoing political crisis in Myanmar, triggered by the military coup in February 2021.
    • Thailand’s Transition: Thailand, another ASEAN member, is facing challenges due to its transitional government formed after an election. Consequently, it had official-level representation at the summit, raising concerns about the level of representation within ASEAN during crucial meetings.

    India in the context of the ASEAN Indo-Pacific Forum (AIPF)

    • Participation in AIPF: India, along with the US, UK, Canada, and Australia, conducted side events at the AIPF. This suggests that India is actively engaged in discussions at the forum.
    • Concerns Over China’s New Map: Several countries, including India, raised bilateral concerns with China regarding its new standard map. This map claims territories that other countries consider their own, causing diplomatic tensions.
    • Interest in the South China Sea: India has a vested interest in the South China Sea due to its trade and strategic considerations. India has been monitoring developments in the region, including China’s territorial claims and their impact on freedom of navigation.

    Why India Needs ASEAN?

    • Significant Trade & Commercial Relations: ASEAN is a major destination for India’s service sectors and a vital source of foreign investments.
    • Development of North East India: ASEAN provides an alternate route for India’s access to North Eastern India, facilitating development and strategic interests.
    • Countering Chinese Expansion: Strengthening ties with ASEAN countries helps India counter Chinese influence in the Indo-Pacific region.
    • Maritime Freedom: Collaboration with ASEAN ensures a free and peaceful Indo-Pacific region based on a rules-based order.
    • Support for Indian Initiatives: ASEAN’s support is crucial for India’s success in regional policies and initiatives.
    • Emerging Market: India benefits from ASEAN’s agricultural and industrial products, while ASEAN relies on India’s demographic dividend.
    • Global Reforms: ASEAN’s global influence aligns with India’s vision for reforms in international forums.
    • Elevating India’s Global Status: Partnership with ASEAN enhances India’s geopolitical standing.

    Strengthening ASEAN’s Position

    • ASEAN Outlook on Indo-Pacific (AOIP): ASEAN is actively working to bolster its position by embracing the ASEAN Outlook on Indo-Pacific (AOIP). This strategic framework emphasizes ASEAN’s central role in the Indo-Pacific region, aiming to reinforce its influence and relevance.
    • Enhanced Coast Guard Coordination: ASEAN is prioritizing improved coordination among its coast guards. This approach signifies a commitment to safeguarding maritime security and effectively managing potential conflicts in the region’s waters.
    • Joint Defense Exercises: ASEAN is engaging in joint defense exercises as part of its efforts to strengthen its position. These exercises are viewed as a robust response to the sluggish progress on the South China Sea (SCS) code of conduct, with the goal of enhancing regional security.
    • Addressing Code of Conduct Challenges: The slow progress on the South China Sea code of conduct is a significant concern for ASEAN. To tackle this issue, ASEAN is promoting the AOIP and intensifying security cooperation, reflecting its determination to address the challenges related to the code of conduct.
    • Continuity through Troika Leadership: In a bid to maintain continuity and unity within ASEAN, Indonesia has formed a troika with the upcoming chairs, Laos and Malaysia. This arrangement aims to provide guidance and ensure ASEAN’s stability and coherence in the face of ongoing challenges and transitions.

    Conclusion

    • Indonesia’s leadership during the ASEAN summit deserves commendation for maintaining stability amidst the region’s complex challenges. In a rapidly changing world, ASEAN’s stability remains of paramount importance. Indonesia’s collaboration with the upcoming chairs, Laos and Malaysia, signals continuity in charting ASEAN’s course forward.

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  • One Nation, One Election: Prospects and Challenges

    One Nation, One Election – wrong problem, bad solution

    op-ed snap | Polity | Mains Paper 2: Federalism,Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    What’s the news?

    • The Center has taken a significant step towards implementing the One Nation, One Election concept by forming a committee led by former President Ram Nath Kovind.

    Central idea

    • The recently concluded special session of Parliament has brought into focus the idea of One Nation, One Election as a means to address the challenges posed by frequent elections in India. While this proposal has gained attention, it requires thorough examination and data-driven deliberation before any decisive steps are taken.

    What is the ONOE plan?

    • Concept: The ONOE plan aims to synchronize the timing of the Lok Sabha and State Assembly elections across all states in India to reduce the frequency of election cycles nationwide.
    • Historical Context:
      • After the enforcement of the Constitution on January 26, 1950, the first-ever general elections for both the Lok Sabha and State Assemblies occurred simultaneously in 1951–1952.
      • This practice continued for the following three Lok Sabha elections until 1967, streamlining the election process.
    • Disruption:
      • In 1959, the cycle was disrupted as the Central government invoked Article 356 of the Constitution, leading to the dismissal of the Kerala government due to a perceived failure of constitutional machinery.
      • Subsequent to 1960, defections and counter-defections among political parties led to the dissolution of several state legislative assemblies.
      • This fragmentation resulted in separate election cycles for the Lok Sabha and state assemblies.
    • Current Scenario: Presently, only specific states such as Arunachal Pradesh, Sikkim, Andhra Pradesh, and Odisha conduct their assembly polls concurrently with the Lok Sabha elections.

    Critical analysis

    Excessive Expenditure: A Questionable Concern

    • Rising Election Costs: The cost of elections has been steadily increasing. In 2019, the expenditure for the general elections was about Rs 9,000 crore, averaging about Rs 100 per voter.
    • Political Party Spending: Political parties spent nearly Rs 3,000 crore during the 2019 Lok Sabha elections, with an estimated Rs 50,000 crore informally spent. Addressing this informal expenditure is a primary concern.
    • Data-Driven Decision-Making: The absence of comprehensive data on total public expenditure for separate versus simultaneous elections limits our understanding. To make informed decisions, a meticulous analysis of costs and potential savings is imperative.

    Diversion of Duty: A Matter of Debate

    • Essential Responsibility: While election duty is considered essential for security forces, it’s also a privilege for civilian officials.
    • Lack of Statistical Data: The absence of statistical data showing the exact number of days dedicated to election duties for simultaneous versus separate elections hinders informed decision-making.

    Disruption in Development: A Misconception

    • Model Code of Conduct (MCC): The MCC primarily restricts certain categories of public expenditure during elections, not all development work.
    • Need for Data: The lack of data demonstrating the extent of disruption in development work is a crucial gap in the argument against simultaneous elections.
    • Historical Perspective: Flexibility in Democracy

    Historical context reveals flexibility in Indian democracy:

    • 15 Years of Simultaneous Elections: From 1951–52 to 1967, elections were held simultaneously for 15 years without a specific constitutional provision.
    • Preserving Political Freedom: Imposing limits on election timing could curb political parties’ freedom to express a lack of confidence or engage in democratic processes.

    Local autonomy vs. centralization

    • Local Impact: State-level elections primarily concern local voters and leaders and should not unduly affect voters in other states or the central government.
    • Centralization of Politics: Centralized campaigning diminishes the focus on local governance, weakening local democratic institutions and representation.

    Urgent Priorities for Reform

    • Pressing Issues Abound: India faces a multitude of pressing issues, from natural disasters to public agitations. These challenges can disrupt normal governance and require immediate attention.
    • Nature’s Fury: Natural disasters, such as heavy rainfall or hazardous air quality, often paralyze regions and demand swift government response to alleviate suffering and manage the aftermath.
    • Educational Disruptions: Factors like heatwaves or international events like the G20 meetings can lead to the closure of educational institutions, affecting students’ routines and demanding educational policy adjustments.
    • Protracted Agitations: Protests and agitations, sometimes lasting for months, can bring normal life to a standstill, necessitating government intervention and resolution.
    • Meaningful Electoral Reforms: Rather than focusing on the mechanical scheduling of elections, there is an urgent need for more substantial electoral reforms that enhance transparency and accountability.
    • Managerial Efficiency: Improving the efficiency of election management can be achieved without the need for onerous constitutional amendments.

    Conclusion

    • The proposal for ONOE is intriguing but lacks the necessary data and robust debate to support its implementation. India should prioritize addressing more pressing governance issues and electoral reforms that enhance transparency.

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  • Modern Indian History-Events and Personalities

    MS Swaminathan: Father of the Green Revolution

    op-ed snap | Trivia | : Achievements Of Indians In S&T,Post-Independence

    Swaminathan

    What’s the news?

    • Monkomb Sambasivan Swaminathan, the legendary agricultural scientist widely regarded as the Father of the Green Revolution, passed away at the age of 98 on September 28. His contributions to agriculture in the 1960s and ’70s transformed India’s farming landscape, ushering in an era of food security.

    Central idea

    • The passing of MS Swaminathan marks the end of an era in Indian agriculture. His unwavering commitment to the welfare of farmers and his pioneering efforts in the Green Revolution have left an indomitable legacy. This op-ed is dedicated to the father of the Green Revolution.

    Early life and education

    • Born on August 7, 1925, in Kumbakonam, Tamil Nadu
    • Initially, I aimed for a career in the civil services and even cleared the civil services examination.
    • He switched to agriculture due to his passion, inspired by the Quit India Movement and the Bengal famine of 1942–43.
    • He enrolled in the Agriculture College in Coimbatore to pursue his interest in agriculture.

    Diverse Roles in Agriculture

    • Swaminathan held various significant positions related to agriculture, both in India and abroad.
    • His roles included Independent Chairman of the Food and Agricultural Organization Council (1981–85), President of the International Union for the Conservation of Nature and Natural Resources (1984–90), and President of the World Wide Fund for Nature (India) from 1989–96.
    • He also served as the Director General of the Indian Council of Agricultural Research (ICAR), among other positions.

    Swaminathan

    The Green Revolution: A Turning Point

    • Swaminathan’s mission was to transform Indian agriculture.
    • Introduced high-yielding crop varieties, improved irrigation facilities, and promoted fertilizer use.
    • Wheat production in India surged from 6 million tonnes in 1947 to 17 million tonnes between 1964 and 1968.
    • The Green Revolution bolstered India’s food security and reduced dependence on imports.

    Swaminathan’s Contributions to the Green Revolution

    • Swaminathan worked on enhancing crop varieties, particularly rice and wheat.
    • He pioneered the development of semi-dwarf wheat varieties to reduce lodging and boost yields.
    • Collaboration with Norman Borlaug resulted in the introduction of dwarfing genes into wheat varieties, leading to the “Wheat Revolution.”
    • Swaminathan recognized the challenges of the Green Revolution, including the displacement of local crop varieties, soil fertility conservation issues, and indiscriminate pesticide use.
    • He also noted the risks of overexploiting groundwater.

    Advocacy for Farmers

    • As the head of the National Commission on Farmers from 2004 to 2006, Swaminathan advocated for the welfare of farmers.
    • He recommended that the Minimum Support Price (MSP) for agricultural produce should be at least 50% more than the cost of production, ensuring fair compensation to farmers.

    Awards and recognition

    • Swaminathan was awarded the first World Food Prize Laureate in 1987 for his contributions to India’s wheat and rice production.
    • He received the Padma Bhushan and Padma Vibhushan, two of India’s highest civilian honors.

    Conclusion

    • As we remember the Father of the Green Revolution, we must also reflect on the challenges that persist in Indian agriculture and work towards a sustainable and equitable future. Swaminathan’s vision and dedication will continue to inspire generations of agricultural scientists and policymakers in their pursuit of a food-secure India.

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  • Nobel and other Prizes

    In news: Dadasaheb Phalke Award

    Prelims Only | History | Mains Paper 1: Arts & Culture

     Central Idea

    • Union Information and Broadcasting Minister announced that veteran actor Waheeda Rehman would be given the Dadasaheb Phalke Lifetime Achievement Award for 2021, honouring her stellar contribution to Indian cinema.

    About Dadasaheb Phalke Award

    Purpose Highest honor in Indian cinema for outstanding contributions to its growth and development.
    Inception Instituted by the Indian government in 1969.
    Named After Dhundiraj Govind Phalke, “Father of Indian Cinema.”
    Components ‘Swarna Kamal’ (Golden Lotus), INR 10 lakh cash prize, certificate, silk scroll, and shawl.
    Presentation By the President of India in the presence of key film industry representatives and officials.
    First Recipient Devika Rani Roerich (1969).

    Who was Dadasaheb Phalke?

    • Early Life: Dhundiraj Govind Phalke, born in 1870 in Trimbak, Maharashtra, had a diverse career. He initially studied engineering and sculpture and later developed a fascination for motion pictures after watching the 1906 silent film ‘The Life of Christ.’
    • Varied Pursuits: Before entering the world of cinema, Phalke worked as a photographer, owned a printing press, and even collaborated with the renowned painter Raja Ravi Varma.
    • Filmmaking Pioneer: In 1913, Phalke scripted, produced, and directed India’s inaugural feature film, the silent masterpiece ‘Raja Harishchandra.’ This groundbreaking film’s commercial success marked the beginning of Phalke’s prolific career in which he created 95 more films and 26 short films over the next 19 years.
    • Father of Indian Cinema: Dhundiraj Govind Phalke is hailed as the “Father of Indian Cinema” for his pioneering contributions to the country’s film industry.

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  • New Species of Plants and Animals Discovered

    Balsams blossom in Munnar

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

    Central Idea

    • The genus Impatiens, locally known as Kasithumba and Onappovu, is currently enchanting tourists with its vibrant pink blooms in Munnar.

    What are Balsams?

    • Distinctive Feature: Balsams are commonly referred to as ‘touch-me-not’ due to the unique behavior of their mature seeds bursting open upon touch and distributing seeds.
    • Sign of Active Micro-Climate: Botanists suggest that the extensive flowering of balsams in Munnar indicates the continued activity of the microclimate in this hill station.
    • Indian Balsam Species: India hosts a total of 220 balsam species, with a significant presence of 135 species in the southern Western Ghats.
    • Balsam Paradise: Idukki, particularly the high ranges around Anamudi, is renowned for its rich diversity of wild balsams. Scientists often term the district as a ‘balsam paradise.’

    Conservation Efforts

    • Balsams in Munnar: Munnar boasts 46 balsam species, extending from Munnar to Chinnar and Bison Valley.
    • Protection in National Park: The Eravikulam National Park alone is home to over 40 wild balsam species, with the Forest Department ensuring their protection.
    • Unparalleled Diversity: Prasad G, working plan officer, highlights that Munnar’s altitude has unveiled 46 balsam species, a level of diversity unmatched elsewhere in the world.
    • Indicator Species: Balsams play a crucial role as indicator species for climate change. Any alterations in the climate of a region are often reflected in the population of these plants.

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Extension to the RoDTEP Scheme

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

    Central Idea

    • In light of a continuous seven-month decline in goods exports until August, the government has taken action to bolster outbound shipments.
    • The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme’s applicability has been extended for nine more months, now in effect until June 30, 2024.

    About RoDTEP Scheme

    Objective To refund central, state, and local duties or taxes on exported products.

    The rebate does not apply to duties and taxes that have already been exempted, remitted, or credited.
    Launch Date Introduced in January 2021.

    Replacement for the Merchandise Export Scheme, which was deemed non-compliant with WTO Rules.
    Rates of Tax Refund Tax refund rates under RoDTEP vary from 0.5% to 4.3% across different sectors.
    Claim Process Exporters can claim the rebate as a percentage of the Freight On Board (FOB) value of their exports.
    Issuance of Rebates Rebates are issued in the form of transferable duty credits or electronic scrips (e-scrips).
    Significance of the Scheme Enhances the competitiveness of Indian products in global markets by refunding various taxes.

    Expected to have a substantial impact on India’s trade volumes, export figures, and competitiveness.

    Enables Indian exporters to meet international export standards and access GST refunds efficiently.

     

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  • Start-up Ecosystem In India

    Centre seeks to ease Angel Tax Provisions

    Prelims Only | Economics | Mains Paper 3: Investment Models

    Central Idea

    • The government has introduced revisions to the angel tax provisions that were initially implemented in this year’s Budget, primarily targeting investments by non-resident investors into startups at a premium over their fair market value.

    Key changes introduced

    • The Central Board of Direct Taxes issued a notification, amending Rule 11UA under the Income Tax Act, incorporating changes to the draft norms released earlier.
    • Five distinct valuation methods for shares have been introduced, accompanied by a 10% tolerance allowance for deviations from accepted share valuations.
    • These changes aim to provide some relief to prospective foreign investors interested in Indian startups.

     

    Angel Investment

    • An angel investor is an individual who provides financial backing to early-stage startups or entrepreneurs, typically in exchange for equity in the company.
    • Angel investors are typically high-net-worth individuals who invest their own personal funds, rather than investing on behalf of a firm or institution.
    • Features of Angel Investing:
    1. Early-stage funding
    2. Equity investment
    3. High-risk, high-reward
    4. Active involvement
    5. Personal investment
    6. Flexible terms
    7. Shorter investment horizon

     What is Angel Tax?

    • Referred to as Angel Tax, this rule is described in Section 56(2)(viib) of the Income Tax Act, 1961.
    • Essentially it’s a tax on capital receipts, unique to India in the global context.
    • This clause was inserted into the act in 2012 to prevent laundering of black money, round-tripping via investments with a large premium into unlisted companies.
    • The tax covers investment in any private business entity, but only in 2016 was it applied to startups.

    Why was angel tax introduced?

    • The complicated nature of VC fundraising with offshore entities, multiple limited partners and blind pools is contentious.
    • There has been some element of money laundering or round-tripping under guise.

    Details of its levy

    • The Angel Tax is being levied on startups at 9% on net investments in excess of the fair market value.
    • For angel investors, the amount of investment that exceeds the fair market value can be claimed for a 100% tax exemption.
    • However, the investor must have a net worth of ₹2 crores or an income of more than ₹25 Lakh in the past 3 fiscal years.

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  • OBOR Initiative

    Nepal refuses to join China’s Global Security Initiative (GSI)

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

    Central Idea

    About Global Security Initiative (GSI)

    • The GSI aims to contribute to global peace and stability by promoting fairness and justice among nations.
    • It was launched in April 2022.
    • Six key principles:
      1. Commitment to Comprehensive Security: Emphasizing cooperation for maintaining world peace and security.
      2. Respect for Sovereignty: Upholding the sovereignty and territorial integrity of all countries, non-interference in internal affairs, and respect for diverse development paths.
      3. UN Charter Principles: Abiding by the UN Charter’s principles, rejecting Cold War thinking, unilateralism, group politics, and bloc confrontations.
      4. Indivisible Security: Addressing the legitimate security concerns of all nations, promoting balanced and sustainable security, and opposing self-security at the expense of others.
      5. Peaceful Conflict Resolution: Advocating dialogue and consultation for resolving international disputes, rejecting double standards, unilateral sanctions, and extraterritorial jurisdiction.
      6. Multifaceted Security: Maintaining security in traditional and non-traditional domains, collaborating on regional conflicts, and addressing global challenges like terrorism, climate change, cybersecurity, and biosecurity.
    • Other Policy Initiatives: President Xi’s new initiatives—GDI, GSI, and Global Civilisation Initiative (GCI)—have become cornerstones of China’s foreign policy during his third term.

    Nepal’s Stance on Chinese Initiatives

    • Supporting Global Development Initiative: Nepal expressed support for China’s Global Development Initiative (GDI) and considered joining the Group of Friends of the GDI.
    • Belt and Road Initiative (BRI): The joint statement reaffirmed cooperation under the Belt and Road Initiative, emphasizing the need to finalize a delayed BRI implementation plan swiftly.

    Key collaborated projects

    • Flagship Cross-Border Railway: Nepal and China are engaged in extensive connectivity projects, including the flagship cross-border railway from Lhasa to Kathmandu.
    • Broad Connectivity Goals: Both countries aim to strengthen connectivity across various sectors like ports, roads, railways, airways, and grids. They are working on the Trans-Himalayan Multi-Dimensional Connectivity Network.
    • Border Port Openings: Nepal and China welcomed the opening of ports like Lizi-Nechung and the reopening of Zhangmu-Khasa for passenger services. They plan to open other border ports like Chentang-Kimathanka and Riwu-Olangchungola soon.
    • Infrastructure Support: China pledged support for projects like the Araniko Highway maintenance, Syaphrubesi-Rasuwagadhi Highway repair, and a 220 KV Cross-Border Power Transmission line. Progress on the feasibility study of the Jilong/Keyrung-Kathmandu Cross-Border Railway was noted, with further cooperation and training initiatives planned.

    Balancing Act by Kathmandu

    • Strategic Balancing: Nepal maintains a careful balance by cooperating on development projects with China while exercising caution on security matters.
    • Commitment on Tibet: Nepal reaffirmed its commitment to China on Tibet, pledging not to allow separatist activities against China on Nepali soil.
    • Support for Sovereignty: China expressed firm support for Nepal’s independence, sovereignty, and territorial integrity.

    Conclusion

    • Nepal’s diplomatic balancing act reflects its cautious approach towards security cooperation while enthusiastically engaging in cross-border connectivity projects.
    • The joint statement highlights Nepal’s support for China’s Global Development Initiative and commitment to the Belt and Road Initiative.
    • Despite declining to explicitly join the Global Security Initiative, Nepal agreed to elements of security collaboration with China.

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  • Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

    Challenge of Phosphorus Scarcity and Pollution: A Need for Innovative Solutions

    Explained | Agriculture | Mains Paper 3: Indian Economy

    Central Idea

    • Phosphorus scarcity poses a growing challenge to global agriculture, with critical implications for food production and environmental sustainability.
    • While the history of land fertilization dates back to ancient agricultural practices, the advent of synthetic fertilizers in the 19th century transformed modern agriculture.
    • However, today’s reliance on synthetic fertilizers, particularly phosphorus, raises concerns about its scarcity and environmental impact.

    Age-Old Challenge of Soil Fertilization

    • Historical Origins: The challenge of fertilizing land dates back to the dawn of agriculture. Early human societies recognized the need to replenish soil nutrients depleted by repeated cycles of cultivation and harvest.
    • Ancient Fertilization: Indigenous communities worldwide devised fertilization techniques, including the use of fish remnants and bird droppings (guano), to restore essential nutrients to the soil.

    Revolutionizing Agriculture with Synthetic Fertilizers

    • 19th Century Advancements: The 19th century witnessed significant progress in chemistry, leading to the creation of synthetic fertilizers. It also marked the identification of key nutrients: nitrogen, phosphorus, and potassium, the foundation of modern chemical fertilizers.
    • Green Revolution’s Impact: The mid-20th-century Green Revolution accelerated the adoption of high-yield crop varieties and intensive fertilizer use, revolutionizing global food production.

    About Phosphorus

    Need Essential nutrient for plant growth, involved in photosynthesis, energy transfer, and root development.
    Impact of Deficiency Leads to stunted growth, reduced flowering, and poor fruit or seed development in plants.
    Types – Superphosphate

    – Triple Superphosphate (TSP)

    – Diammonium Phosphate (DAP)
    Application Applied through broadcasting, banding, or direct placement with seeds during planting.
    Benefits Promotes strong root development, better flowering, fruiting, and overall plant health.
    Environmental Considerations Efficient use is required to prevent runoff and environmental issues like eutrophication.
    Balanced Fertilization Maintain a nutrient balance (N-P-K) in soil to avoid both deficiency and excess of phosphorus.

    Phosphorus Predicament

    • Phosphorus Scarcity: Phosphorus is a finite resource primarily found in specific geological formations. It’s not only depleting but also causing environmental pollution when it enters water bodies, leading to algal blooms and eutrophication.

    Geopolitical Complexities

    • Global Phosphorus Reserves: Today, a small group of countries, including Morocco and the Western Sahara region, controls the majority of the world’s phosphorus reserves. This geopolitical control raises concerns.
    • Cadmium Contamination: Phosphorus often coexists with cadmium, a heavy metal harmful to health. Cadmium-laden fertilizers can contaminate crops, posing health risks.
    • Largest Importer: India is the world’s largest importer of phosphorus, primarily from cadmium-rich deposits in West Africa.
    • Cadmium Susceptibility: Staple crops like paddy in India are vulnerable to cadmium absorption, potentially causing health issues.

    Challenge of Phosphorus Disposal

    • Loss and Wastage: Only a fraction of mined phosphorus is consumed through food; a significant amount is lost to water bodies due to excessive fertilizer application.
    • Sewage Contamination: Most phosphorus consumed ends up in sewage. Inadequate sewage treatment allows phosphorus to accumulate in water bodies, fueling algal blooms and depleting oxygen.

    Exploring Phosphorus Alternatives

    • Precision Agriculture: Reducing chemical fertilizer use through precision agriculture offers one solution to address phosphorus scarcity without compromising yield.
    • Circular Water Economies: Urban sewage can become a valuable source of phosphorus. Two key strategies:
      1. Source Separation Toilets: Collect urine, a concentrated waste stream rich in phosphorus, and convert it into local fertilizer.
      2. Recycling Wastewater and Sludge: Recover nutrients, including phosphorus, from sewage sludge through innovative methods like sludge mining.

    Incentive Challenges

    • Overuse of Fertilizers: In rural India, powerful farmers often sell fertilizers, encouraging smaller farmers to overuse them. This requires better extension services and awareness campaigns.
    • Perceptions of Sewage: In urban India, sewage has historically been stigmatized, affecting regulations and wastewater treatment practices.

    Rethinking the Approach

    • Systemic Change: Fundamental changes are needed, including lowering sewage mining costs, allowing urban-mined phosphorus in agriculture, and shifting utility incentives from discharge standards to nutrient recovery.
    • Multi-Beneficial Solution: Such changes can tackle multiple challenges, including geopolitical dependency, affordable fertilizers, improved water bodies, and public health benefits.

    Conclusion

    • The phosphorus dilemma is a pressing challenge with far-reaching consequences for agriculture, geopolitics, and the environment.
    • As we grapple with dwindling phosphorus reserves and its environmental pollution, innovative solutions must be embraced.
    • Precision agriculture and circular water economies, including source-separating toilets and sewage recycling, offer promising avenues to alleviate the scarcity issue.

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