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  • What is the News Broadcasting & Digital Standards Authority (NBDSA)?

    The NBDSA has fined the news channel for turning a news debate on hijab into a “communal issue” and not adhering to guidelines.

    What is the News Broadcasting & Digital Standards Authority (NBDSA)?

    • The NBDSA is a self-regulatory agency set up by news and digital broadcasters.
    • It is an independent body set up by the News Broadcasters & Digital Association (NBDA), which serves as a representative of private television news, current affairs and digital broadcasters.
    • It describes itself as “the collective voice of the news, current affairs and digital broadcasters in India.”
    • Funded entirely by its members, the NBDA has 26 news and current affairs broadcasters (comprising 119 news and current affairs channels) as its members.
    • Various senior members of Indian media organisations serve on its Board of Directors.

    Composition of the NBDSA

    • The body includes a Chairperson who is to be an eminent jurist, and other members such as news editors, and those experienced in the field of law, education, literature, public administration, etc.
    • They are to be nominated by a majority of the Board.
    • Former Supreme Court judge and jurist AK Sikri is currently serving as the Chairperson.

    Functioning of NBDSA

    • Within this structure, it lays-down and foster high standards, ethics and practices in news broadcasting, including entertaining and deciding complaints against or in respect of broadcasters.
    • These standards mention a focus on objectivity, impartiality, maintaining discretion when reporting on crime against women and children, not endangering national security, etc.

    Powers and authorities

    • NBDSA may initiate proceedings on its own and issue notice or take action in respect to any matter which falls within its regulations.
    • This can also be through complaints referred to the Authority by the Ministry of Information & Broadcasting or any other governmental body, or by anyone else via its website.
    • A “two-tier” procedure is in place for redressing grievances, where any person aggrieved by the content of any broadcast is required to first make a complaint to the concerned broadcaster and then the Authority if dissatisfied.

    Why was the channel fined?

    • The NBDSA held that the programme was in violation of the principles relating to impartiality, neutrality, fairness and good taste and decency.
    • It said that it did not have any problem with the subject but with the narrative of the debate.

     

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  • Two Lakshadweep beaches get Blue Flag Certification

    blue

    The globally recognised and coveted international eco-label ‘Blue Flag’ has been accorded to two new Indian beaches — Minicoy Thundi Beach and Kadmat Beach, both in Lakshadweep.

    What is Blue Flag?

    • The Blue Flag is an exclusive eco-label or certification that is given to coastal locations around the world as a badge of environmental honour.
    • The programme is run by the Copenhagen, Denmark-headquartered Foundation for Environmental Education (FEE), a non-profit organization.
    • It seeks to contribute to the Sustainable Development Goals (SDGs) of the United Nations.
    • It started in France in 1985 and has been implemented in Europe since 1987, and in areas outside Europe since 2001 when South Africa joined.
    • Certification is awarded annually. A total 5,042 beaches, marinas, and tourism boats in 48 countries have been awarded the label so far.

    Criteria for certification

    It has 33 stringent criteria under four major heads for the beaches, that is-

    1. Environmental Education and Information
    2. Bathing Water Quality
    3. Environment Management and Conservation and
    4. Safety and Services

    Total blue beaches in India

    India now has 12 blue beaches. The other 10 Indian beaches on the list, according to the FEE site, are-

    1. Shivrajpur in Gujarat’s Devbhumi Dwarka district
    2. Ghogla beach in Diu
    3. Kasarkod (Uttara Kannada) and
    4. Padubidri (Udupi) in Karnataka;
    5. Kappad (Kozhikode) in Kerala
    6. Eden beach in Puducherry
    7. Kovalam (Chennai) in Tamil Nadu
    8. Rushikonda (Visakhapatnam) in Andhra Pradesh
    9. Golden beach in Puri, Odisha; and
    10. Radhanagar Swarajdeep in Andaman and Nicobar

    About the Foundation for Environmental Education (FEE)

    • The FEE is headquartered in Copenhagen, Denmark.
    • It was founded in 1981 as the Foundation for Environmental Education in Europe (FEEE).
    • Currently, it has 77 member countries.

    Its other programmes include:

    • Green Key
    • Eco Schools
    • Young Reporters for the Environment
    • Learning about Forests
    • Global Forest Fund

     

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  • India’s first indigenous Overhauser Magnetometer

    magnet

    Indian scientists have developed an indigenous Overhauser Magnetometer, one of the most accurate magnetometers extensively used by all magnetic observatories around the world.

    What are Overhauser Magnetometers?

    • A magnetometer is a scientific instrument used to measure the strength and direction of the magnetic field.
    • OVH magnetometers are known for their higher accuracy, higher sensitivity, and efficient power consumption.
    • They find applications in all magnetic observatories worldwide as well as in international space programs.
    • It has so far been imported for such purposes in India.

    Feats achieved

    • The performance of this indigenously made magnetometer is at par with a commercial OVH sensor that is currently installed at the magnetic observatories of IIG.
    • The Indian OVH sensor reproduced the geomagnetic diurnal variations accurately and precisely.
    • It showed the signatures of various space weather events such as geomagnetic storms, sudden impulses, etc.
    • It would also be of potential help to develop a sensitive magnetic resonance imaging (MRI) instrument.

    Benefits of OVH magnetometers

    • OVH magnetometers reduce the cost of sampling and sensing experiments essential for geomagnetic sampling.
    • It can reduce India’s dependence on commercial OVH magnetometers for performing geomagnetic field measurements.

     

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  • AIIB set to lend Pakistan $500 million

    The Asian Infrastructure Investment Bank (AIIB) is scheduled to lend $500 million to Pakistan in this month.

    Asian Infrastructure Investment Bank (AIIB)

    • The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia, began operations in January 2016.
    • It aims to stimulate growth and improve access to basic services by furthering interconnectivity and economic development in the region through advancements in infrastructure.
    • AIIB has now grown to 102 approved members worldwide.
    • The US & Japan are not its members.
    • It is a brainchild of China. It has invested in 13 member regions.

    Capital and shareholding of AIIB

    • It has authorized capital of US 100 billion dollars and subscribed capital of USD 50 billion.
    • It offers sovereign and non-sovereign finance for projects in various sectors with an interest rate of London Interbank Offered Rate (LIBOR) plus 1.15 % and a repayment period of 25 years with 5 years in grace period.
    • China is the largest shareholder in AIIB with a 26.06% voting power, followed by India with 7.62% and Russia with 5.92% voting power.

    Try this question from CSP 2019

    Q.With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements

    1. AIIB has more than 80 member nations.
    2. India is the largest shareholder in AIIB.
    3. AIIB does not have any members from outside Asia.

    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

     

    Post your answers here.

     

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  • 27th October 2022| Daily Answer Writing Enhancement

    Topics for Today’s questions:

    GS-1          Factors responsible for the location of primary, secondary, and tertiary sector industries in various parts of the world (including India).

    GS-2         Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

    GS-3        Conservation, environmental pollution and degradation, environmental impact assessment.

    GS-4        Ethics and Human Interface

    Question 1)

     

    Q.1 Enlist the factors responsible for the location of jute industry in India. Also, discuss the challenges faced by the industry. (15 Marks)

     

    Question 2)

    Q.2 What do you understand by pressure groups? Citing examples, state the different types of techniques used by pressure groups. (10 Marks)

    Question 3)

    Q.3 Highlighting the significance of forests, elaborate upon the challenges of forest management in India. (10 Marks)

    Question 4)  

    Q.4 Man is not only a product of his environment but can also modify the environment. Do you agree with this view? Justify your answer with suitable examples. (10 Marks)

     

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  • MSP: Must be Effective

    msp

    Context

    • The CACP recommendations on Minimum Support Prices (MSP) for the mandated six Rabi crops wheat, barley, gram, lentil, rapeseed and mustard, and safflower are arrived by considering several factors.

    What is MSP?

    • MSP is a part of India’s Agriculture Price Policy. The MSP for various crops is announced by the central government at the beginning of every crop season on the recommendation of CACP.
    • MSP is price at which the government purchases crops from the farmers. It is the guaranteed ‘minimum floor price’ that farmer must get from the government in case the market price of the crops falls below the MSP.
    • The Rationale behind MSP is to support the farmer from excess fall in the crop prices, it is like an insurance policy for the farmers to save them from price falls.
    • The most important aim of the MSP policy is to save the Indian farmer from making distress sales. In the event of glut and bumper harvest, when market prices fall below the announced MSP, the government through its agencies buys the entire stock offered by the farmers at the MSP.

    What are the factors included in MSP calculation?

    • Factors taken into consideration are as follows:
    1. Cost of production,
    2. Supply and demand situation of various crops in domestic and global markets,
    3. Domestic and world prices along with trade opportunities,
    4. Terms of trade between agriculture and non-agriculture sector,
    5. Optimal utilization of land, water and other production resources,
    6. A minimum of 50 per cent mark-up over the cost of production.

    msp

    Why the relook at MSP calculation is necessary?

    • Though on the surface the list looks comprehensive, there are two missing concerns given the present-day challenges, necessitating a change in the MSP formula.
    1. Acreage
    2. Water usage
    • Rising MSP leads to water conflict: There is ample data-based evidence to show the causal relation between acreage and MSP movements. Rising MSPs of water-intensive crops has resulted in some of the water conflicts over river basins as shown by recent studies in the Cauvery and the Teesta River basins.
    • MSP for rice and wheat: This is also because MSP for rice and wheat, where government agencies like Food Corporation of India play a role in procurement, has created a reference for market prices. Ever since the MSP was introduced in the late 1970s, it became the “floor” price-setter for rice and wheat.
    • Higher MSP for water consuming cereals: Between 1980 and 2000, the MSPs of rice and wheat increased at a much faster rate than those of the “coarse” cereals (like jowar, bajra and ragi) which eventually led to movement of the terms-of-trade (defined as ratio of prices of competing crops, e.g., rice and millets) in Favour of the water-consuming cereals.
    • Shifting of High acreage to High MSP crop: This led to acreages moving largely in Favour of water consuming staples, whose crop-water requirements are many times of that of the drier millets. In the case of Cauvery and Teesta, the introduction of dry season paddy and its expansion created reliance on irrigation thereby Fuelling demand for water.
    • Non promotion of rabi millets: Though the MSP formula claims to take into account land and water use, it needs to be noted here that there is a need for Rabi millets (e.g., ragi) to be promoted through MSPs. This is because the millets are less water-consuming as compared to many other alternatives including wheat. However, there does not seem to be any MSP announced for Rabi millets.
    • Higher MSP for less water consuming crop is needed: In the process, it will be crucial to take into consideration the estimates of irrigation water need for specific crops, redefine the Rabi basket by including millets, and declare a higher MSP for less water-consuming crops vis-à-vis the high-water consuming crops.

    msp

    Nutritional security in MSP calculation

    • Nutritional security is not included in MSP calculation: The other consideration that is missing from the MSP formula is the consideration of the nutritional security. Ideally, the MSP regime should remunerate those crops that have a higher nutritional value per unit of resource use.
    • Rabi crops are more water efficient: Ragi is the most efficient water user in producing calories. Bajra followed by wheat and ragi are the better performers in terms of water efficiency in producing iron. For the case of fiber, ragi is the most water efficient crop followed by barley and maize demonstrating the same water efficiency.
    • Rabi crops are nutrition rich: Maize is the most efficient water user in producing carbohydrates with ragi being second and wheat third. With reference to fat production, bajra takes the first position followed by ragi and wheat. Ragi is the best performer in the case of calcium production. Wheat and ragi do equally well with phosphorus production per unit of water at the margin.
    • Missing MSP estimate: However, so far, the MSP formula has not taken into consideration the health and the nutritional aspect. Irrespective of the season, the nutritional aspect needs to be figured into the MSP recommendations, and more nutritional crops should command higher support prices.

    Conclusion

    • Present MSP regime is biased in Favor of rice and wheat. MSP can be utilized as great tool to achieve crop diversification by incentivizing cultivation of water efficient and nutrition rich millets. India can achieve the regional as well as financial balance in distribution of MSP by proper estimation of MSP and promotion accordingly.

    Mains Question

    How is MSP calculated? Analyse the linkages of MSP and water conflict and suggest the solution to overcome the water inefficiency by MSP.

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  • Why Private Investment is Lagging in India?

    Private

    Context

    • Last month, Finance Minister asked captains of industry what was holding them back from investing in manufacturing. She likened industry to Lord Hanuman from the Ramayana by stating that industry did not realize its own strength and that it should forge ahead with confidence. She said, “This is the time for India, we cannot miss the bus”.

    What is present situation of private investment?

    • Tax cut rate of domestic companies: In the hope of revitalizing private investment, the government had in September 2019 cut the tax rate for domestic companies from 30% to 22% if they stopped availing of any other tax SOP (standard operating procedure).
    • Weak private investment: Expert says that Indian private sector investment has been weak for almost a decade now. If we look at drivers of economic growth right now, there are amber lights flashing. The export story will be under threat because of the global slowdown, the government’s ability to support domestic demand would also be limited as the fiscal deficit comes down.
    • Impact of k-shaped recovery: Because of the K-shaped recovery, private consumption is only concentrated in some parts of the income pyramid.

    Private

    Analyzing the investment scenario

    • Investment to GDP ratio: As in the June edition of the Ministry of Finance’s Monthly Economic Review, the fixed investment to GDP ratio was 32% in 2021-22. However, there is need for caution in reading the most recent data, as they are subject to revision.
    • The National Accounts Statistics: It provides disaggregation of gross capital formation (GCF) by sectors, type of assets and modes of financing; over 90% of GCF consists of fixed investments.
    • No change in investment distribution: The investment distribution has hardly changed over the last decade, with the public sector’s share remaining 20%.
    • Fall in share of agriculture and industry: Between 2014-15 and 2019-20, the shares of agriculture and industry in fixed capital formation/GDP fell from 7.7% and 33.7% to 6.4% and 32.5%, respectively.
    • Rise in service sectors: Services’ share rose to 52.3% in 2019-20 compared to 49% in 2014-15.The rise in the services sector is almost entirely on transport and communications. The share of transport has doubled from 6.1% to 12.9% during the same period. Within transportation, it is mostly roads.
    • Decline in the share of investment: Its share in the investment ratio (column 2.1) fell from 19.2% in 2011-12 to 16.5% in 2019-20. This indicates that ‘Make in India’ failed to take off, import dependence went up, and India became deindustrialised. Import dependence on China is alarming for critical materials such as fertilizers, bulk drugs (active pharmaceutical ingredients or APIs) and capital goods. Instead of boosting investment and domestic technological capabilities, the ‘Make in India’ campaign frittered away time and resources to raise India’s rank in the World Bank’s Ease of Doing Business Index.
    • Decline in foreign capital in GFC: The contribution of foreign capital to financing GCF fell to 2.5% in 2019-20 from 3.8% in 2014-15 (or 11.1% in 2011-12). With declining investment share, industrial output growth rate fell from 13.1% in 2015-16 to a negative 2.4% in 2019-20, as per the National Accounts Statistics.

    Private

    What is Consumer’s demand situation?

    • Average Consumer sentiment index: Private companies invest when they are able to estimate profits, and that comes from demand. The Centre for Monitoring Indian Economy’s (CMIE) consumer sentiment index is still below pre-pandemic levels but is far higher than what was seen 12-18 months ago.
    • Buoyant Aggregate demand: RBI’s Monetary policy report dated September 30 says, Data for Q2 (ended Sept) indicate that aggregate demand remained buoyant, supported by the ongoing recovery in private consumption and investment demand. It shows that seasonally adjusted capacity utilization rose to 74.3% in Q1 the highest in the last three years.
    • High household savings: Along with household savings intentions remaining high, might hold the key to the investment cycle kicking in.

    Private

    Conclusion

    • Both public and private investment is necessary for sustainable growth trajectory of any economy. Global uncertainty, Ukraine war, oil prices have added to the skepticism of private investors. However, India’s macroeconomic performance is much better than those of developed and developing economies. Private investors must take these into account before holding back their investment.

    Mains Question

    Q. What role private investment plays in Indian economy? Analyse the post-pandemic private investment situation in India?

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  • FATF, Fighting the Terrorism or Just Another Diplomatic Arena

    FATF

    Context

    • On October 21, the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, announced the removal of Pakistan from its Grey List. The announcement was expected.

    What is FATF?

    • Inter-governmental organization: The FATF, a 39-member inter-governmental organization with its headquarters in Paris, was set up in 1989 by the Group of Seven (G7) countries with the aim of setting global standards for countering the menace of money laundering.
    • Terror financing included under FATF mandate: Following the terror attacks on September 11, 2001, the objective of countering the financing of terrorism was added to the FATF’s mandate. Later, its objectives were further expanded to counter the financing of proliferation of weapons of mass destruction.

    FATF

    How FATF functions?

    • Three level mandate: The FATF seeks to fulfil its three-pronged mandate by drawing up a list of guidelines. Known as the FATF Recommendations or FATF Standards, these are meant to ensure a coordinated global response to prevent.
    1. organized crime,
    2. corruption and
    3. Terrorism
    • Domestic plus international regulatory measures: They encompass a range of domestic legislative, regulatory and enforcement actions, as well as international cooperation measures, that states are expected to adopt and implement.
    • Consensus based decision: The FATF and its associate, or regional, members such as the Asia Pacific Group on Money Laundering (APG) take their decisions on the basis of consensus. More than 200 countries and jurisdictions are committed to implementing the FATF’s recommendations.

    FATF

    What is grey listing and black listing?

    • Monitoring the adherence to recommendations: The FATF monitors adherence to its recommendations by periodic evaluations of the anti-money laundering (AML), combating financing of terrorism (CFT) and proliferation financing (PF) regimes of member countries and jurisdictions which voluntarily submit to its monitoring.
    • Strategic deficiencies by countries: Countries which exhibit strategic deficiencies in their AML/CFT/PF regimes are placed under a scheme of “increased monitoring” informally known as Grey Listing.
    • Action plan to address the deficiencies: States placed under the Grey List are expected to swiftly put in place the requisite measures to address their deficiencies on the basis of Action Plans drawn up and evaluated through a process of consultation with the FATF.
    • Serious strategic deficiency: States that exhibit serious strategic deficiencies in their AML/CFT/ PF regimes are placed under a Black List formally known as High-Risk Jurisdictions subject to a Call for Action.
    • Serious economic consequences may follow: While Grey Listing amounts to a warning, Black Listing entails serious economic consequences by making it incumbent on governments, international lenders and commercial entities to conduct enhanced due diligence checks while transacting business with the designated countries and, in extreme cases, apply “counter-measures” against offenders.

    Present status of listing by FATF?

    • Grey listing: Following the removal of Pakistan, there are 23 countries on the FATF’s Grey List.
    • Black listing: There are only three countries on the Black List, North Korea, Iran and Myanmar. These listing processes of the FATF are driven predominantly by the pulls and pressures of international power politics and not merely by technical parameters.

    How Pakistan has been grilled by FATF for Terror financing?

    • In 2008 Pakistan removed from listing: Pakistan has been placed in and removed from the Grey List in the past too. The first time was from February, 2008 to June, 2010, when it was removed from the list after it supposedly demonstrated progress in improving its AML/AFT regime.
    • Mumbai terror attack and grey list: The terrorist attacks in Mumbai on November 26, 2008 took place while Pakistan was on the Grey List for the first time. The second time was from February, 2012 to February, 2015, by the end of which period it had supposedly made significant progress in improving its AML/CFT regime.
    • Osama bin laden killing: The elimination of Osama bin Laden in the American raid on Abbottabad on May 2, 2011 took place after Pakistan’s exit from the Grey List for the first time and before its placement on the list for the second time.
    • From 2018-2022: Pakistan was placed in the Grey List for the third time in June, 2018 and remained there till October, 2022. During this period, it was compelled to put in place several legislative, administrative and regulatory measures to improve its compliance with international AML/CFT standards.
    • Action against individual and organisations: In recent years, there has been increasing realisation among FATF members that it is the effectiveness of action taken against individuals and entities of concern rather than pro-forma technical compliance” that should form the basis of judging the extent of adherence to FATF standards.
    • Conviction of hafiz Saeed: It is this more realistic approach coupled with the implicit threat of being moved from the Grey List to the Black List that finally compelled Pakistan to prosecute, convict, fine and jail, on terrorism financing charges, Lashkar-e-Tayyaba (LeT) Amir, Hafiz Muhammad Saeed, LeT’s chief operational commander, Zakiur Rehman Lakhvi and Sajid Majeed aka Sajid Mir, “operational manager” of the 26/11 Mumbai attacks, after having pronounced him missing and dead.
    • Jaish-e-Mohammed: A disingenuous attempt by Pakistan to persuade a visiting FATF verification team in August-September 2022 that Jaish-e-Mohammed (JeM) Amir, Maulana Masood Azhar, had escaped to Afghanistan was strongly countered by a spokesman of the Afghan Taliban.

    How Pakistan manages pressure form FATF?

    • with the support of USA: It is well known that much of the diplomatic heavy lifting to place Pakistan in the Grey List in June 2018 and keep it on the list for an extended period of time was done by the US. There had been a feeling among those following developments at the FATF that American pressure on Pakistan would continue till such time as the US needed Pakistan to bring the Afghan Taliban to the negotiating table and once the US withdrawal from Afghanistan was completed, the pressure on Pakistan would ease. Subsequent developments have validated this assessment.
    • Help of China and turkey: Although the threat of being moved from the Grey List to the Blacklist remained hanging over Pakistan’s head, this was never a realistic possibility, considering the likely opposition to any such move by Pakistan’s staunch friends in the FATF, such as China, Malaysia, Turkey and Saudi Arabia

    FATF

    Conclusion

    • India will have to continue mustering all available instruments and options to deny Pakistan operating space to wield the jihadi weapon, till such time as there is convincing evidence of a consensus among the generals in Rawalpindi that the weapon has outlived its utility and needs to be renounced once and for all.

    Mains Question

    How FATF is useful international forum for fight against terrorism? How was Pakistan forced by FATF to take actions against mastermind of 26/11 attack?

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  • [Sansad TV] Diplomatic Dispatch: India-Australia Ties

    Context

    As External Affairs Minister Dr S Jaishankar has just completed a visit to Australia after attending the annual Foreign Ministers’ Framework Dialogue. In this article we take a deep dive into India’s relationship with Australia.

    India-Australia Relations: A Backgrounder

    • The India-Australia bilateral relationship has undergone evolution in recent years, developing along a positive track, into a friendly partnership.
    • The two nations have much in common, underpinned by shared values of a pluralistic, Westminster-style democracy, Commonwealth traditions, expanding economic engagement etc.
    • Several commonalities include strong, vibrant, secular and multicultural democracies, free press, independent judicial system and English language.

    Historical Perspective

    • The historical ties between India and Australia started immediately following European settlement in Australia from 1788.
    • All trade, to and fro from the penal colony of New South Wales was controlled by the British East India Company through Kolkata.
    • India and Australia established diplomatic relations in the pre-Independence period, with the establishment of India Trade Office in Sydney in 1941.
    • The end of the Cold War and simultaneously, India’s decision to launch major economic reforms in 1991 provided the first positive move towards development of bilateral ties.

    Various dimensions of ties

    [A] Political partnership

    • Both the countries are members of G-20, ASEAN Regional Forum (ARF), IORA (Indian Ocean Rim Association), Asia Pacific Partnership on Climate and Clean Development, East Asia Summit and the Commonwealth.
    • Australia has been extremely supportive of India’s quest for membership of the APEC (Asia Pacific Economic Cooperation).
    • Australia whole-heartedly welcomed India’s joining of the MTCR (Missile Technology Control Regime).

    [B] Trade and Economy

    • India is the 5th largest trade partner of Australia with trade in goods and services.
    • Two-way trade between India and Australia was worth A$24.3 billion ($18.3 billion) in 2020, up from just $13.6 billion in 2007, according to the Australian government.
    • After a series of attempts, in 2016, Australia opened the door for uranium exports to India.
    • An Australia-India Strategic Research Fund (AISRF) which was established in 2006, supports collaboration between scientists in India and Australia on cutting-edge research.

    [C] Cultural ties

    • There is a longstanding people-to-people ties, ever increasing Indian students coming to Australia for higher education.
    • Growing tourism and sporting links, especially Cricket and Hockey, have played a significant role in further strengthening bilateral relations between the two countries.
    • India is one of the top sources of skilled immigrants to Australia.
    • The number of Indian students continue to grow with approximately 105,000 students presently studying in Australian universities.
    • After England, India is the second largest migrant group in Australia in 2020.

    [D] Strategic Partnership

    • In 2009, India and Australia established a ‘Strategic Partnership’, including a Joint Declaration on Security Cooperation which has been further elevated to Comprehensive Strategic Partnership in 2020.
    • The Mutual Logistics Support Agreement has been signed during the summit that should enhance defence cooperation and ease the conduct of large-scale joint military exercises.
    • There is a technical Agreement on White Shipping Information Exchange.
    • Both nations conduct bilateral maritime exercise AUSINDEX. In 2018, Indian Air Force participated for the first time in the Exercise Pitch Black in Australia.
    • Foreign and Defence Ministers of both countries agreed to meet in a ‘2+2’ format biennially.
    • The first-ever Quad Leaders’ Virtual Summit held on 12 March 2021 saw the participation of Prime Ministers of India, Australia, Japan and President of USA.
    • A Civil Nuclear Cooperation Agreement between the two countries was signed in September 2014 during the visit of then-PM Tony Abbott to India.

    Significance of the ties

    • COVID Management: Australia is one of the few countries that has managed to combat COVID-19 so far through “controlled adaptation” by which the coronavirus has been suppressed to very low levels.
    • STEM: From farming practices through food processing, supply and distribution to consumers, the Australian agribusiness sector has the desired R&D capacity, experience and technical knowledge.
    • Natural resources: Australia is rich in natural resources that India’s growing economy needs. It also has huge reservoirs of strength in higher education, scientific and technological research.
    • Alliance with US: The two countries also have increasingly common military platforms as India’s defence purchases from the US continue to grow.
    • Affinity with ASEAN: Australia has deep economic, political and security connections with the ASEAN and a strategic partnership with one of the leading non-aligned nations, Indonesia.
    • Containing China: The Indo-Pacific region has the potential to facilitate connectivity and trade between India and Australia. Both nations can leverage their equation in QUAD to contain China.

    International cooperation

    • Support at UNSC: Australia supports India’s candidature in an expanded UN Security Council.
    • APEC: Australia is an important player in APEC and supports   India’s membership in the organization. In 2008, Australia became an Observer in SAARC.

    Some irritants in ties

    • Trade imbalance: India’s trade deficit with Australia has been increasing since 2001-02 due to India-Australia Free Trade Agreement. It is also a contentious issue in the ongoing RCEP negotiations which India left.
    • High tariff on agri products in India: India has a high tariff for agriculture and dairy products which makes it difficult for Australian exporters to export these items to India.
    • Non-tariff barriers in Australia: At the same time, India facesnon-tariff barriers and its skilled professionals in the Australian labour market face discrimination.
    • Visa Policy: India wants greater free movement and relaxed visa norms for its IT professionals, on which Australia is reluctant.
    • Future of QUAD: Australian lobby has sparked speculation over the fate of the Quadrilateral Consultative Dialogue (the ‘Quad) involving India, Australia, Japan and the United States.
    • Nuclear reluctance: Building consensus on non-nuclear proliferation and disarmament has been a major hurdle given India’s status as a nuclear power.    
    • Racism against Indians: Increasing Racist attacks on Indians in Australia has been a major issue.  

    Way forward

    • Upgradation of 2+2 format: It is prudent too for New Delhi and Canberra to elevate the ‘two plus two’ format for talks from the Secretary level to the level of Foreign and Defence Ministers.
    • Removal of trade barriers: Both nations need to resolve disputes at the WTO with regard to the Australian sector can act as a serious impediment.
    • Balancing China: An ‘engage and balance’ China strategy is the best alternative to the dead end of containment.

    Conclusion

    • Given the changing geopolitics, both Canberra and New Delhi are keen to move beyond mere rhetoric and build a robust partnership
    • The key is to keep the Australia story thriving in India, and India story thriving in Australia on a consistent basis in public memory.
    • This involves a holistic multi-stakeholder strategy and approach which deepens understanding and appreciation of each other.

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  • EV firms divided over Battery-Swapping Policy

    battery

    Battery Swapping could only be leveraged up to a certain limit and was not a complete solution to push electric vehicle (EV) adoption says some auto industry.

    What is Battery Swapping?

    • Battery swapping is a mechanism that involves exchanging discharged batteries for charged ones.
    • This provides the flexibility to charge these batteries separately by de-linking charging and battery usage, and keeps the vehicle in operational mode with negligible downtime.
    • Battery swapping is generally used for smaller vehicles such as two-wheelers and three-wheelers with smaller batteries that are easier to swap, compared to four-wheelers and e-buses, although solutions are emerging for these larger segments as well.

    What is BaaS?

    • Battery-as-a-service (BaaS) is seen as a viable charging alternative.
    • Manufacturers can sell EVs in two forms: Vehicles with fixed or removable batteries and vehicles with batteries on lease.
    • If you buy an electric scooter with battery leasing, you do not pay for the cost of the battery—that makes the initial acquisition almost 40% cheaper.
    • Users can swap drained batteries for a fully charged one at a swap station. The depleted batteries are then charged on or off-site.
    • The advantages of swapping include low downtimes for commercial fleets, reduced space requirements, and lower upfront costs.
    • It is also a viable solution for those who don’t have parking spots at home.

    Draft Battery Swapping Policy 2021: Key Proposals

    • Rationalizing taxes on battery: The draft policy has suggested that the GST Council consider reducing the differential across the tax rates on Lithium-ion batteries and electric vehicle supply equipment. Currently, the tax rate on the former is 18 per cent, and 5 per cent on the latter.
    • Incentivization for swapping enabled vehicles: The policy also proposes to offer the same incentives available to electric vehicles that come pre-equipped with a fixed battery to electric vehicles with swappable batteries. The size of the incentive could be determined based on the kWh (kilowatt hour) rating of the battery and compatible EV.
    • Terms of contracts for battery providers: The government will specify a minimum contract duration for a contract to be signed between EV users and battery providers to ensure they continue to provide battery swapping services after receiving the subsidy.
    • Public battery charging stations: The policy also requires state governments to ensure public battery charging stations are eligible for EV power connections with concessional tariffs. It also proposes to install battery swapping stations at several locations like retail fuel outlets, public parking areas, malls, kirana shops and general stores etc.
    • Tariff rationalization: It also proposes to bring such stations under existing or future time-of-day (ToD) tariff regimes, so that the swappable batteries can be charged during off-peak periods when electricity tariffs are low.
    • Registration ease: Transport Departments and State Transport Authorities will be responsible for easing registration processes for vehicles sold without batteries or for vehicles with battery swapping functionality.
    • Unique identification number (UIN): The policy also proposes to assign a UIN to swappable batteries at the manufacturing stage to help track and monitor them. Similarly, a UIN number will be assigned to each battery swapping station.
    • Locations: The NITI Aayog has proposed that all metropolitan cities with a population of more than 40 lakh will be prioritized for the development of battery swapping networks under the first phase, which is within 1-2 years of the draft policy getting finalized.

    Why hasn’t BaaS taken off yet?

    • Hefty taxes: There are economic and operational constraints. Energy service providers offering swapping solutions have to charge 18% goods and services tax (GST) for swapping, compared to 5% GST on the purchase of an EV.
    • No incentives yet: Additionally, the government’s FAME-II incentives are not offered to vehicles sold with BaaS or swap station operators.
    • Lack of interoperability infrastructure: While these are economic disadvantages compared to direct charging solutions, the lack of a dense and interoperable battery swap infrastructure has also hindered the roll-out.

    Issues highlighted by industry

    • Swapping will require a great deal of battery standardisation which may reduce innovation and would curb investments.
    • Other concerns include accountability for a sub-optimal battery brought in to a swapping station or if it caught fire.
    • Battery swapping has reduced initial investments by EV owners.

    Issues with BaaS

    • Standardization of specifications: There is a need for standardization of safety specifications as well as the battery.
    • Safety hazard: Swapping in the various permutations and combinations of batteries at a station where they have not been tested for compatibility could lead to safety hazards.
    • Non-competitive nature: Also, mandating only one type of battery to  be eligible for  concessions  would be  disadvantageous  to  many  players.

    Significance of battery swapping

    • High Cost of EVs: An EV, by industry standards, is 1.5-2x costlier than IC Engine counterpart and at least half the cost is from the battery pack.
    • Cost reduction: Many manufacturers are offering batteries separately from a vehicle, reducing the cost. In that case, a fleet owner can buy vehicles without battery and utilize battery swapping.
    • Range Anxiety: Another major reason stopping people from buying EVs is range anxiety, or in simple terms, the fear of battery getting empty without finding a charging station.
    • Inadequate charging infrastructure: Unlike petrol pumps, EV charging stations are rare to spot and that further increases the range anxiety exponentially, especially while going on a road trip.
    • Hazard management: In case of a Swapping Station, one can simply locate a station, go and replace the empty battery with a new one.

     

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