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  • Freebie model of Governance

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

    Context

    The newly elected Punjab government’s announcement of providing up to 300 units of free power to every household has raised questions: What constitutes “freebies”?

    Two categories for providing support

    • In India government provides two types of support.
    • 1] support to low-income households for augmenting their consumption of selected goods and services.
    • 2] Government also provides incentives to support selected categories of investors and producers.
    • Different objectives: The economic objectives in these two categories are quite different.
    • The first category would include the free or subsidised provision of foodgrains and services such as health and education.
    • Examples of the second group include the central government’s recent initiative for production-linked incentives to various sectors and tax concessions.
    • In the past, incentives in the form of reduction of corporate taxes have been offered to promote investment in general, or in certain regions such as backward areas.

    What commodities should be distributed free?

    • The key question is to decide what commodities should be distributed free or at a subsidised level and what the level of subsidy should be.
    • Essential goods: The provision of foodgrains at a heavily subsidised price to target groups has found general acceptance, particularly among political parties, even though there are some critics of the measure.
    • The distribution of commodities which are considered “essential”, primarily foodgrains, faces no criticism.
    • Merit goods: There is also a category of goods which are called “merit” goods where significant positive externalities are associated with their consumption — for instance, health and education-related provisions, including mid-day meals and breakfast.
    • In such cases, subsidisation is justified: If only market prices prevail, the community will consume less than what is socially desirable.

    What should be the suitable mode of providing support?

    • The question of a suitable model for providing budgetary support arises in the context of both consumption and production-supporting initiatives.
    • 1] In the first case, budgetary support to a targeted segment of the population for augmenting their consumption of essential items may be provided either through direct income support or by a free or highly subsidised provision. 
    • Procurement set up and distribution system: When the provision of subsidised goods is involved, there may, in general, be a requirement of a procurement set-up and a public distribution system.
    • Managing procurement and distribution by government agencies involves additional costs which tend to be higher than the corresponding supply through the market because of leakages and avoidable administrative costs.
    • 2] Production-related incentives: In the case of production-related incentives, alternative methods include direct budgetary support and indirect support through tax concessions.
    •  Both have a differential impact.
    • These schemes also require to be carefully designed to avoid their misuse and minimise their costs. The provision of free power to farmers was often misused.
    • In the case of tax concessions, there have not been any convincing studies as to whether the stated initial objectives were achieved in line with the large budgetary costs.
    • The magnitudes involved amounted to 1.9 per cent and 2.5 per cent of the GDP in 2018-19 and 2019-20 respectively.

    What should be a prudent fiscal limit for funding such programmes?

    • Let us consider the case of distribution of commodities that are meant to support consumption.
    • Limited budgetary resources: This question should be considered in light of our limited budgetary resources.
    • Stagnating revenue to GDP ratio: In India, the revenue to GDP ratio has been stagnating over a long period of time.
    • During 2010-11 to 2019-20, combined revenue receipts of central and state governments, relative to GDP, have languished in the narrow range of 18.4 per cent to 20.3 per cent.
    • In contrast, in many developed and emerging market economies, this ratio tends to be much higher.
    • In 2019, these ratios were 36 per cent and 30.1 per cent for the UK and USA.

    Suggestions

    • It is advisable to limit the distribution of commodities and services at highly subsidised levels to essential and merit goods.
    • Infrastructure expansion: Production may be incentivised more effectively by other methods such as infrastructure expansion.
    • Determining the total quantum of support: In respect of production-related incentives also, greater care is required for determining the total quantum of support as well as the specific forms of such support.
    • Limit of 10 %: It would be prudent to limit overall fiscal support for the distribution of commodities to less than 10 per cent of the total expenditure of the central government and state governments until their revenue GDP or GSDP ratios are successfully increased in a sustained way.

    Conclusion

    Governments that do not pay adequate attention to the strength of their fisc eventually become exposed to the cost of the choices that they make.

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    Back2Basics: Merit goods

    • Merit goods are the goods that are provided generally by the government to certain sections of the society.
    • Unlike in the case of pure public goods, the merit goods are not provided to the entire society; rather they are given to certain targeted people.
    • The government here believe that the deserving people may under-consume such goods and hence provides these to them at low cost or no cost.

    Positive externalities

    • A positive externality exists if the production and consumption of a good or service benefits a third party not directly involved in the market transaction.
    • For example, education directly benefits the individual and also provides benefits to society as a whole through the provision of more informed and productive citizens.

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  • Freedom of Speech – Defamation, Sedition, etc.

    IPC Sec 295A: Dealing with Hate Speech and Blasphemy

    | Indian Society | Mains Paper 1: Communalism, Secularism, Regionalism

    The debate surrounding the comments by some political spokespersons has put the spotlight on the IPC Sec 295A which deals with criticism of or insult to religion.

    What is the news?

    • India does not have a formal legal framework for dealing with hate speech.
    • However, a cluster of provisions, loosely termed hate speech laws, are invoked.
    • There are primarily some laws to deal with offences against religions.

    What is Section 295A?

    • Section 295A, define the contours of free speech and its limitations with respect to offences relating to religion.
    • It prescribes punishment for deliberate and malicious acts, intended to outrage religious feelings of any class by insulting its religion or religious beliefs.
    • It calls for imprisonment of either description for a term which may extend to [three years], or with fine, or with both.
    • It has been invoked on a wide range of issues from penalising political satire and seeking bans on or withdrawal of books to even political critique on social media.

    Chapters to penalise religious offences

    Section 295A is one of the key provisions in the IPC chapter to penalise religious offences. The same chapter includes offences to penalise:

    1. Damage or defilement of a place of worship with intent to insult the religion (Section 295)
    2. Trespassing in a place of sepulture (burial) (Section 297)
    3. Uttering, words, etc, with deliberate intent to wound the religious feelings of any person (Section 298) and
    4. Disturbing a religious assembly (Section 296)

    Origins of the law

    • Colonial origins of the hate speech provisions are often criticised for the assumption that Indians were susceptible to religious excitement.
    • Section 295A was brought in 1927.
    • The antecedents of Section 295A lie in the communally charged atmosphere of North India in the 1920s.
    • The amendment was a fallout of an acquittal under Section 153A of the IPC by the Lahore High Court in 1927 in Rajpaul v Emperor, popularly known as the Rangila Rasool case.

    Frequency of use

    • The state often invokes Section 295A along with 153A of the IPC, which penalises promoting enmity between different groups on grounds of religion, race, place of birth, residence, language, etc.
    • It acts prejudicial to maintenance of harmony and Section 505 of the IPC that punishes statements conducing to public mischief.

    What about online hate speech?

    • In cases where such speech is online, Section 66A of the Information Technology Act was invoked.
    • However, in a landmark verdict in 2015, the Supreme Court struck down Section 66A as unconstitutional on the ground that the provision was “vague” and a “violation of free speech”.
    • However, the provision continues to be invoked.

    Issues with such laws

    • The broad, vague terms in the laws are often invoked in its misuse.
    • Lower conviction rates for these provisions indicate that the process — where a police officer can arrest without a warrant — is often the punishment.
    • Critics have pointed out that these laws are intended for the state to step in and restore “public order” rather than protect free speech.

     

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  • Foreign Policy Watch: India-ASEAN

    Back in news: India- ASEAN Relations

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

    The Foreign Minister of Myanmar is unlikely to be part of the 24th ASEAN-India Ministerial summit.

    What is the news?

    • Myanmar’s absence is the souring ASEAN-Myanmar.
    • This is after the coup that overthrew the Aung San Suu Kyi government in Myanmar.
    • This shows India’s concern over the junta in Myanmar which has refused to enter into a negotiation

    What is ASEAN?

    • ASEAN is a political and economic union of 10 member states in Southeast Asia.
    • It brings together ten Southeast Asian states – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – into one organisation.
    • It was established on 8th August 1967 in Bangkok, Thailand with the signing of the Bangkok Declaration by the founding fathers of the countries of Indonesia, Malaysia, Thailand, Singapore, and the Philippines.
    • The preceding organisation was the Association of Southeast Asia (ASA) comprising of Thailand, the Philippines, and Malaysia.
    • Five other nations joined the ASEAN in subsequent years making the current membership to ten countries.

    India-ASEAN Relations: A Backgrounder

    • Look-East Policy in 1992 gave an upthrust to India -ASEAN relation and helped India in capitalizing its historical, cultural and civilizational linkages with the region.
    • India entered into a Free Trade Agreement (FTA) in goods with the region in 2003 which has facilitated the bilateral trade which now stands at approximately USD 76 Billion.
    • Further, the launch of Act East Policy in 2014 has added a new vigour to India-ASEAN relations.

    Significance of ASEAN to India

    • ASEAN’s centrality in India’s foreign policy – A cohesive, responsive, and prosperous ASEAN is central to India’s Indo-Pacific Vision and India’s Act East Policy and contributes to Security and Growth for All in the Region (SAGAR).
    • Economic – ASEAN is the one of the largest market in the world comparative to the EU and North American markets.
      • It’s also the 4th most popular investment destination globally.
    • Investment opportunities for Indian businesses – Cost of production is lower in Laos, Cambodia, and Myanmar, which means that Indian firms can gain significantly by investing in these countries.
    • Countering China – Cooperation between India and ASEAN is crucial to counter China’s power projection in the region. Both have territorial and border issues with China, disputes over the South China Islands and waters for ASEAN and over land boundaries for India.
    • Integration with regional and global supply chains – Increasing engagement with ASEAN is pivotal to facilitate India’s integration with regional and global supply chain movements.
    • North-East development – Connectivity projects with the ASEAN nations keeping Northeast India at the centre can ensure the economic growth of the land-locked north-eastern states.
      • Collaboration with the ASEAN nations is necessary to counter insurgency in the Northeast, combat terrorism, etc.
    • Maritime security – The Indian Ocean carries 90% of India’s trade and its energy sources. Presence of choke points such as the Malacca strait makes the South-East Asian region significant for countering traditional and non-traditional maritime threats like piracy and terrorism.
    • Indian Diaspora – About 9-8% of the population in Malaysia and Singapore is of Indian origin, in Myanmar-4% and Indonesia about 0.5%.

    Areas of Cooperation

    • Economic Cooperation – ASEAN is India’s 4th largest trading partner.
      • India signed FTA in goods in 2009 and an FTA in services and investments in 2014 with ASEAN.
      • India has a Comprehensive Economic Cooperation Agreement (CECA) with various countries of the ASEAN region which has resulted in concessional trade and a rise in investments.
    • Political Cooperation – ASEAN-India Centre (AIC) was established to undertake policy research, advocacy and networking activities with organizations and think-tanks in India and ASEAN.
      • Delhi Dialogue – Annual Track 1.5 event for discussing politico-security and economic issues between ASEAN and India.
    • Financial Assistance – India provides financial assistance to the ASEAN nations through various mechanism like ASEAN-India Cooperation Fund, ASEAN-India S&T Development Fund and ASEAN-India Green Fund.
    • Connectivity – India has been undertaking several connectivity projects like India-Myanmar-Thailand Trilateral (IMT) Highway and the Kaladan Multimodal Project.
      • India is also trying to establish a Maritime Transportation Agreementwith ASEAN and also Plans for a Railway link between New Delhi in India to Hanoi in Vietnam.
    • Socio-Cultural Cooperation – Programmes to boost People-to-People Interaction with ASEAN are organized, such as inviting ASEAN students to India, Special Training Course for ASEAN diplomats, Exchange of Parliamentarians, etc.
    • Defence Cooperation – Joint Naval and Military exercises are conducted between India and most ASEAN countries.
      • Vietnam has traditionally been a close friend on defense issues, Singapore is also an equally important partner.
    • Maritime Cooperation – adopted Delhi Declaration and decided to identify Cooperation in the Maritime Domain as the key area of cooperation under the ASEAN-India strategic partnership.
      • India is developing its maiden deep-sea port in a strategically located Sabang port in Indonesia.

    REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP) AGREEMENT

    • RCEP is a Free Trade Agreement (FTA) that has been signed between 15 countries including the 10 ASEAN members, China, Japan, South Korea, Australia, and New Zealand.
      • RCEP was first proposed in 2011 with an aim to create a consolidated market for the ASEAN countries and their trade partners.
      • RCEP now forms the world’s largest trade bloc, covering over 2.2 billion people and accounting for 30% of the world’s economy.
    • Though India was a part of the RCEP’s negotiations, it dropped out in November 2019, citing significant outstanding issues that remain unresolved.

    Reasons behind India pulling out of RCEP

    • Trade imbalance with RCEP members – India’s trade deficit with RCEP countries has almost doubled in the last five-six years.
    • Chinese Angle – From a geopolitical perspective, RCEP is China-led or is intended to expand China’s influence in Asia. India has already signed FTA with all the countries of RCEP except China.
    • Signing of RCEP can lead to cheaper products from China flooding the Indian market.
    • Lack of adequate protection for domestic industries – India’s proposals for strict Rules of Origin (to prevent routing of products from non-RCEP countries) and an Auto-trigger mechanism to impose tariffs when imports crossed a certain threshold which were not accepted.
    • Lack of Service component – Most developed RCEP countries where India can export services, have been unwilling to negotiate wide-ranging disciplines in services that can create new market access for trade in services in this region.
    • Concerns by local industries – A large number of sectors including dairy, agriculture, steel, automobiles, etc had expressed serious apprehensions on RCEP citing dominance of cheap foreign goods would dampen its business.
    • India’s FTA experience – India’s FTAs has generally led to greater imports than exports, giving rise to high trade deficits with FTA partners like South Korea, Japan, and ASEAN.

    Possible Implications of India not joining RCEP

    Protectionist image – Withdrawal from RCEP along with other recent measures like call for self-reliance under Atmanirbhar Abhiyan, etc can be perceived as India taking a protectionist stance in terms of trade policy.

    Lost opportunity for India’s export sector – RCEP was envisaged to strengthen Asian supply chains, bring in investments and boost the member countries’ competitiveness in global markets.

    Effect on bilateral ties with RCEP countries – There are concerns that the decision will hamper India’s bilateral trade with RCEP member countries as they would be inclined to bolster trade within the bloc.

    Lost opportunity in securing a position in the post COVID world: RCEP is expected to help member countries emerge from the economic devastation caused by the pandemic through access to regional supply chains.

    Arguments for reviewing India’s decision

    • Global Economic Stagnation due to Covid-19 pandemic – RCEP can serve as a bulwark in containing the free fall of the global economy and re-energising economic activity.
      • RCEP presents a unique opportunity to support India’s economic recovery, inclusive development, and job creation even as it helps strengthen regional supply chains.
    • Economic Realism – India should deter seeing RCEP only from the Chinese perspective.
      • India can draw inspiration from Japan & Australia, as they chose to bury their geopolitical differences with China to prioritise what they collectively see as a mutually beneficial trading compact.
    • Strategic Need – RCEP’s membership is a prerequisite to having a say in shaping RCEP’s rules, which is necessary to safeguard India’s interests and the interests of several countries that are too small to stand up to the largest member, China.
    • As the summary of the final agreement shows, the pact does cover and attempt to address some issues that India had flagged, including rules of origin, trade in services, movement of persons. Therefore, this makes the case of India to review its decision and look RCEP through the lens of economic realism.

    Challenges in India-ASEAN Relations

    • China factor – India’s effort in this regard is meagre when compared to China’s dominance in the region
      • China’s assertive military, political and economic rise, as well as the South China Sea disputes have divided ASEAN without unanimity amongst them.
    • Economic challenges – India has an unfavourable balance of trade with the ASEAN nations.
    • RCEP deal – India walking out of RCEP can become a sticking point between India and ASEAN, since India’s domestic market was considered a key element in the RCEP negotiations.
      • India has not signed RCEP for various reasons like non-transparency in RCEP, RCEP’s non-accounting of India’s service sector relaxations, etc.
      • By not signing the RCEP India also lose access to new market opportunities created in East Asia.
    • Slow development in Bilateral relations – Many bilateral deals with these nations are yet to be finalised, leading to the halting of various aspects of diplomatic ties.
    • Delayed projects – Though India has committed to many connectivity projects, they have not been completed at the rate on par with China
      • China, on the other hand, through its BRI, is able to gain the trust of these countries.

    India’s pulling out of the RCEP deal shows the limitations of the ties with the ASEAN nations. Maintaining cordial ties, both bilaterally and multilaterally with these nations is essential for both India’s economic and security interests.

    South-East Asian nations are looking at India to take on a greater role for the economic integration of the region and for ensuring an open and inclusive Indo-Pacific. Many of the members of the ASEAN perceive India as a much-needed counterbalance to China.

    Way Forward

    • An alternative economic corridor based multimodal connectivity such as Mekong-India Economic Corridor may be promoted, which will connect Indian coast with unexplored Southeast Asian coast and beyond.
      • Strengthening land, air, and sea linkages will enhance people-to-people flows, as well as boost business, investment, and tourism.
      • With China having three times more commercial flights than India to Southeast Asia, improving air connectivity between India and ASEAN countries should also be high on the agenda.
    • India has proposed setting up of an ASEAN-India Network of Universities (AINU) to enhance our educational ties.
    • India can become the military partner after the Atma Nirbar Bharat, Make in India projects are successfully implemented.
      • No ASEAN country has close military ties with China as they never trusted China for military alliance.
    • Concept of QUAD must be expanded to include the ASEAN countries and become a QUAD+ arrangement.
      • Vietnam and Indonesia have expressed a positive note on QUAD in the region.
    • Digital technologies – Given the reluctance of ASEAN states to take help from Chinese giants in the field (due to concerns regarding China’s ability to own data), Indian IT sector may take some advantage.
    • Strengthening cultural connect – Tourism can be further encouraged between India and the ASEAN with some creative branding by the two sides.

    Failure of South Asian Association for Regional Cooperation (SAARC) has made India look outside South Asia towards countries of Southeast Asia for economic and political cooperation.

    The ASEAN region has become strategically important for India due to its growing importance in the world politics. And for India to be a regional power as it claims to be, continuing to enhance its relations with ASEAN in all spheres must be a priority.

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

    Cabinet approves mega 5G auction

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    The Union Cabinet has approved the auction of airwaves capable of offering fifth generation, or 5G, telecom services, including ultra-high-speed Internet, and gave its nod for setting up of captive 5G networks by big tech firms.

    What is the news?

    • The auction of over 72 GHz of the spectrum will be held by July-end.
    • Auctions will be held at reserve prices recommended by the sector regulator, Telecom Regulatory Authority of India (TRAI).
    • TRAI had earlier recommended about a 39% reduction in the reserve or floor price for the sale of 5G spectrum for mobile services.

    What is 5G technology?

    • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
    • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

    Three bands of 5G

    (1) Low band spectrum

    • It has shown great promise in terms of coverage and speed of internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
    • This means that while telcos can use and install it for commercial cellphones users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for the specialized needs of the industry.

    (2) Mid-band spectrum

    • It offers higher speeds compared to the low band but has limitations in terms of coverage area and penetration of signals.
    • Telcos and companies, which have taken the lead on 5G, have indicated that this band may be used by industries and specialized factory units for building captive networks that can be molded into the needs of that particular industry.

    (3) High-band spectrum

    • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
    • Internet speeds in the high-band spectrum of 5G have been tested to be as high as 20 Gbps (gigabits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

    Where does India stand in the 5G technology race?

    • On par with the global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalize on the better network speeds and strength that the technology promised.
    • Indian private telecom players have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands so that they would be able to plan the rollout of their services accordingly.
    • One big hurdle, however, is the lack of flow of cash and adequate capital with some companies due to their AGR dues.

    Global progress on 5G

    • More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis.
    • In countries like the US, some companies have taken the lead when it comes to rolling out commercial 5G for their users.
    • A South Korean company, which had started researching on 5G technology way back in 2011, has, on the other hand, take the lead when it comes to building the hardware for 5G networks for several companies.

     

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  • Railway Reforms

    First train under Bharat Gaurav Scheme inaugurated

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    The ‘Bharat Gaurav’ train service from Coimbatore to Shirdi, a first of its kind in the country, was inaugurated at the Coimbatore North Railway Station.

    What are Bharat Gaurav trains?

    • Bharat Gaurav express trains are operated by private players, who have the right to use the rail infrastructure provided by the Indian Railways.

    About Bharat Gaurav Scheme

    • Under this Scheme, theme-based tourist circuit trains, on the lines of the Ramayana Express, can be run either by private or State-owned operators.
    • Till now, the Railways had passenger segments and goods segments.
    • Now, it will have a third segment for tourism under the Bharat Gaurav.
    • The scheme has been developed after extensive stakeholder discussions and a lot of State Governments, including Odisha, Rajasthan, Karnataka and Tamil Nadu, have shown interest.

    Key features

    • Service providers, who can be an individual, company, society, trust, joint venture or consortium will be free to decide themes/circuits.
    • They will offer an all-inclusive package to tourists including rail travel, hotel accommodation and sightseeing arrangement, visit to historical/heritage sites, tour guides etc.
    • They have full flexibility to decide the package cost.
    • The service providers will also be able to design/furnish the interior of the coaches based on the theme and put branding or advertising inside and outside of the train.

     

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  • Indian Missile Program Updates

    Prithvi-II Missile successfully test-fired

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

    Successfully test-fire of indigenously developed, nuclear-capable Prithvi-II Missile was recently held.

    Prithvi-II Missile

    • The Prithvi-II surface-to-surface missile has a strike range of 350 km.
    • It is capable of carrying 500-1,000 kilogram of warheads and is powered by liquid propulsion twin engines.
    • It was inducted into the armory of Indian defence forces in 2003.
    • It is a nine-metre-tall, single-stage liquid-fuelled missile.
    • The state-of-the-art missile uses advanced inertial guidance system with manoeuvering trajectory to hit its target.
    • It is the first missile to have been developed by the DRDO under the Integrated Guided Missile Development Programme (IGMDP).

    Other variants of Prithvi

    • The Prithvi missile project encompassed developing three variants for use by the Indian Army, Indian Air Force and the Indian Navy.
    • The initial project framework of the Integrated Guided Missile Development Program outlines the variants in the following manner:
    1. Prithvi I (SS-150) – Army version, 150 km range with a payload of 1,000 kg
    2. Prithvi II (SS-250) – Air Force version, 350 km range with a payload of 500 kg
    3. Prithvi III (SS-350) – Naval version, 350 km range with a payload of 1,000 kg

    Significance of the test-fire

    • Developed as a battlefield missile, it can carry a nuclear warhead in its role as a tactical nuclear weapon.
    • This is the second such test fire of nuclear capable highly manoeuvrable missile in weeks.

     

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  • Women empowerment issues – Jobs,Reservation and education

    Child Marriage in India

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Context

    There has been an ongoing debate on whether increasing the age of marriages can solve the problem of child marriage in India.

    Background

    • It is defined as a marriage of a girl or boy before the age of 18 and refers to both formal marriages and informal unions in which children under the age of 18 live with a partner as if married.
    • The Prohibition of Child Marriage (Amendment) Bill, 2021, fixes 21 years as the marriageable age for women.

    Prevalence of child marriage in India

    •  NFHS-5 data show that about 25% of women aged 18-29 years married before the legal marriageable age of 18.
    • Marginal decline: The proportion has declined only marginally from NFHS-4 (28%).
    • Higher in rural India: Expectedly, the prevalence is higher in rural than urban India (28% and 17%, respectively).
    • West Bengal has the highest prevalence (42%), followed by Bihar and Tripura (40% each).
    • Oddly, the decline in child marriage has been paltry at best in these high-prevalence States.
    • At the other end of the spectrum are Goa, Himachal Pradesh and Kerala (6% to 7%).
    • 39% of child marriages in India take place among Adivasis and Dalits.
    • The share of advantaged social groups is 17% and the remaining share is of Other Backward Classes.

    Role of structural issues in adverse health and educational outcomes

    • Impact: Studies associate early marriage of women with early pregnancy, lower likelihood of accessing ante-natal care, higher risks of maternal morbidity and mortality, poor nutritional status of women and poor nutritional and educational outcomes of children.
    • These studies seem to provide a rather compelling case for increasing the age of marriage of women from 18 to 21 years, as a delayed marriage might offer significant public health dividends.
    • Structural factors at play: But a closer reading of the evidence shows that the association between child marriage and adverse health outcomes does not emerge in a vacuum. 
    • Rather, it is abetted by structural factors, including social norms, poverty, and women’s education.
    • Role of social norms: It is because of social norms in many regions and cultures that parents begin preparations for a girl’s marriage once she has reached menarche.
    • Role of poverty: A large proportion of child marriages take place primarily because of poverty and the burden of the huge costs of dowry associated with delayed marriages.
    • Role of education:  The NHFS-5 data confirm that a significant proportion of child marriages takes place among women with less than 12 years of schooling and households that are socially and economically disadvantaged.
    • The average age at marriage increases from 17 years among women who are illiterate and have had up to five years of schooling to 22 years among women who have had more than 12 years of schooling.
    • This indicates that an increase in years of schooling goes hand in hand with an increase in age at marriage.
    • While an increase in education is most likely to delay marriage, the increase in age at marriage may or may not increase women’s education.

    Why the age of marriage of women matters

    • Age of marriage has bearing on maternal mortality rates, fertility levels, nutrition of mother and child, sex ratios, and, on a different register, education and employment opportunities for women.
    • It is also argued that other factors — such as poverty and health services — were far more effective as levers for improving women’s and children’s health and nutritional status.
    • Child marriage curtail a girl’s opportunities to continue her education.
    • And in turn, the lack of educational opportunities plays an important role in facilitating child marriage.

    Way forward

    • The fact that about one-fourth of women (18-29 years) in India have married before 18 years despite the law tells us that legally increasing the age of marriage may not fully prevent child marriages. 
    • 1] Ensure education for at least up to 12 years: Much of the benefits can be reaped by ensuring that women complete education at least up to 12 years.
    • Bangladesh shows that improving women’s education and imparting modern skills to them that increase their employability reduces child marriage and improves health and nutrition.
    • 2] Educational attainment criteria in schemes: Schemes which ease the financial burden of marriage but the eligibility criteria of which should essentially link to educational attainment in addition to age demand attention.
    • The lessons from Janani Suraksha Yojana and the zeal demonstrated in ending open defecation might provide valid insights here.

    Conclusion

    A legalistic approach to increasing the age at marriage will produce positive results only if it leads to an improvement in women’s education and skill acquisition for employability. In the absence of an enhancement in women’s schooling or skills, a legalistic approach to ending child marriage might become counterproductive.

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

    International North–South Transport Corridor (INSTC)

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

    Iran started the first transfer of Russian goods to India via a new trade corridor which transits the West Asian nation, people on the Iranian side familiar with the developments told news outlets.

    The cargo will travel through the International North-South Transport Corridor (INSTC).

    What is the news?

    • The cargo ship departed St. Petersburg for the Caspian Sea port city of Astrakhan.
    • It will reach the northern Iranian port of Anzali and then will be transferred by road to the southern port of Bandar Abbas on the Persian Gulf.
    • From Bandar Abbas it will reach via ship to India at Jawaharlal Nehru Port Trust (JNPT).

    International North–South Transport Corridor (INSTC)

    • The INSTC is a 7,200 km-long multimodal transportation network encompassing sea, road, and rail routes to offer the shortest route of connectivity.
    • It was established on 12th September 2000 in St. Petersburg, by Iran, Russia and India for the purpose of promoting transportation cooperation among the Member States.
    • It links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe.
    • It will move freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.

    Significance of INSTC

    • Trade facilitation: INSTC is aimed at reducing the carriage cost between India and Russia by about 30 per cent and bringing down the transit time by more than half.
    • New corridor in making: It has the potential to transform the economies of countries along the corridor into specialized manufacturing, logistics, and transit hubs by facilitating access to newer markets.
    • Multimodal transit: The recent Suez Canal blockade, which cost the global economy hefty damage amounting to US$9 billion, has amplified the optimistic outlook towards the INSTC as a cheaper and faster alternative multimodal transit corridor.

    Benefits offered to India

    • Export promotion: The INSTC connects India with Central Asia, and Russia, and has the potential to expand up to the Baltic, Nordic, and Arctic regions, increasing the scope of trade multifold.
    • Ease of trade: For India, it provides a shorter trade route with Iran, Russia, and beyond to Europe, creating scope for increased economic engagement.
    • Alternative Route to Central Asia: It opens up a permanent alternative route for India to trade with Afghanistan and Central Asia, given the hurdles in the direct route through Pakistan.

     

     

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  • Historical and Archaeological Findings in News

    ASI Act to be made more flexible

    Prelims Only | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Union Culture Minister said the Archaeological Survey of India (ASI) was working on an amendment to make the law that provides for the preservation of monuments and archaeological sites “more flexible and people-friendly”.

    What is the news?

    • The ASI is working to amend Ancient Monuments and Archaeological Sites and Remains (AMASR) Act 1958.
    • It particularly seeks to change the current 100-metre prohibited area around protected monuments to site-specific limits.

    What is the AMASR Act?

    • The AMASR Act provides for the preservation of ancient and historical monuments and archaeological sites and remains of national importance.
    • It also provides for the regulation of archaeological excavations and for the protection of sculptures, carvings and other like objects.
    • The Archaeological Survey of India (ASI) functions under the provisions of this act.
    • The rules stipulate that area in the vicinity of the monument, within 100 metres is prohibited area.
    • The area within 200 meters of the monument is regulated category. Any repair or modifications of buildings in this area requires prior permission.

    About Archaeological Survey of India (ASI)

    • The ASI is an attached office of the Ministry of Culture.
    • It was founded in 1861 by Alexander Cunningham who also became its first Director-General.
    • Under the provisions of the AMASR Act of 1958, the ASI administers more than 3650 ancient monuments, archaeological sites and remains of national importance.
    • These can include everything from temples, mosques, churches, tombs, and cemeteries to palaces, forts, step-wells, and rock-cut caves.
    • The Survey also maintains ancient mounds and other similar sites which represent the remains of ancient habitation.
    • The ASI is headed by a Director-General who is assisted by an Additional Director General, two Joint Directors General, and 17 Directors.

     

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  • Indian Army Updates

    What is Agnipath Scheme?

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

    Defence Minister announced the ‘Agnipath’ scheme for the recruitment of youth in the armed forces for four years.

    Agnipath Scheme

    • This will be the only form of recruitment of soldiers into the three defence services from now.
    • The scheme aims at strengthening national security and for providing an opportunity to the youth to serve in the armed forces.
    • Recruits under the scheme will be known as ‘Agniveers’.
    • After completing the four-year service, they can apply for regular employment in the armed forces.
    • They may be given priority over others for various jobs in other government departments.
    • The move is expected to decrease the average age profile of armed forces personnel from the current 32 to 24-26 years over a period of time.

    Working of the scheme

    • The process of recruitment will commence in 90 days with a planned intake of 46,000 young men and women this year.
    • Enrolment to all three services will be through a centralized online system, with special rallies and campus interviews at recognized technical institutes.
    • Recruitment will be carried out on an “All India All Class” basis with the eligibility age ranging from 17.5 to 21, with medical and physical fitness standards in accordance with existing norms.

    Payouts of the Agniveers

    • The ‘Agniveers’ will receive an annual package of ₹4.76 lakh in the first year to ₹6.92 lakh in the fourth year, apart from risk and hardship and other allowances as applicable.
    • Under the ‘Seva Nidhi’ package, they will receive about ₹11.71 lakh, including contribution and interest, on completion of service.
    • The recruits will have to contribute 30% of their monthly emoluments to Seva Nidhi, with a matching contribution made by the government.
    • There will be no entitlement to gratuity and pension benefits under the scheme.
    • However, the ‘Agniveers’ will be provided a non-contributory life insurance cover of ₹48 lakh during their service.

     

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