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Climate Crisis, India’s Solution – Mission LiFE
Context
- Prime Minister Narendra Modi on October 20 unveiled the action plan for Mission LiFE (Lifestyle for Environment), an India-led global mass movement that will nudge individuals and communities for action to protect and preserve the environment.
What is LiFE?
- Importance of individual efforts: Mission LiFE makes environmental protection and conservation a participative process and recognizes the importance of each effort no matter how small or big to save the environment both at the level of the individual and at the level of the community.
- Chaning utilization attitude: The idea promotes an environmentally conscious lifestyle that focuses on ‘mindful and deliberate utilization’ instead of ‘mindless and wasteful consumption’.
- Creating social networks: The LIFE Movement aims to utilize the power of collective action and nudge individuals across the world to undertake simple climate-friendly actions in their daily lives. The LIFE movement, additionally, also seeks to leverage the strength of social networks to influence social norms surrounding climate.
- Creating Pro-planet people: The Mission plans to create and nurture a global network of individuals, namely ‘Pro-Planet People’ (P3), who will have a shared commitment to adopt and promote environmentally friendly lifestyles.
- Seeks to behavioral change and individual actions: Through the P3 community, the Mission seeks to create an ecosystem that will reinforce and enable environmentally friendly behaviors to be self-sustainable. LIFE recognizes that small individual actions can tip the balance in the planet’s favour.
Do you know pro-planet initiatives worldwide?
- Denmark: Denmark promotes the use of bicycles by limiting parking within the city Centre and providing exclusive bike lanes.
- Japan: Japan has its unique “walk-to-school” mandate, which has been in practice since the early 1950s.
Why is the need for such movement?
- Wrong perception about conservation: Environment protection, has for far too long been perceived as a policy issue by the general masses. There has been a perception that only national governments and international organizations can do something to protect the Earth and environment.
How mission LiFE will be helpful?
- Mindless consumption of resources: The human race is plundering Planet Earth at a pace that far outstrips its capacity and ability to support life. A recent study says that if the current rate of consumption were to continue, by 2050, humans would need two more planets, in addition to the Earth, to continue to exist.
- Declining natural resources and beauty: This means that we could be staring at major climatic crises in the years to come and our future generations may never get to experience the beauty of nature, the glaciers, the oceans, the snow and the rivers, that we have been fortunate to see and experience.
- Unsustainable consumption pattern: What threatens our existence more than anything else is the pace at which we are producing and consuming. The consumption pattern of the world is mindless and pays scant regard to the environment.
- Attitude change through mission LiFE: Mission LiFE tries to remind the world that the mindset of “use and throw” must immediately be replaced by “reduce, reuse and recycle” so that our scarce resources are not overexploited, and the world doesn’t crumble under the weight of all the waste that it is generating by the second.
- Small efforts big Impact: Mission LiFE is a philosophy which shows how this can be made possible. It shows the power of small efforts to make big impacts. It believes in the individual’s capacity to change the world. It is the mantra to reverse historical and cultural wrongs wrecked upon the environment. Mission LiFE is the call to action for citizens and governments to save the planet.
What are India’s efforts for LiFE?
- Environment friendly culture: In India, the cultural ethos of limiting needs and treating the environment and its resources with reverence has produced very visible results. India constitutes 17 per cent of the world’s population, but our contribution to global carbon emissions is only four per cent.
- Less carbon footprint per head: Against the developed world’s carbon footprint of four tonnes per head, the carbon footprint of an average Indian counts to only 1.5 tonnes.
- Multiple global initiatives: Despite not being part of the problem, with numerous global initiatives such as the International Solar Alliance, the One Sun One World One Grid initiative, and the Coalition for Disaster Resilient Infrastructure, India has taken the lead in presenting and building solutions for the world by bringing the global community together.
- Focus on collective actions of world community: The need to build these global alliances to fight climate change stems from the understanding that only collective action can save the world from the vagaries of climate change that are increasingly becoming a reality and are rising in ferocity.
- Mindful utilization of resources: India offering knowledge from its religious and cultural ethos to the world, Mission LiFE aims to pull the world away from a “mindless and destructive” consumerist approach towards a “mindful and deliberate utilization” of resources. It is also, at the same time, an effort to prevent India from heading that way.
- Shift towards sustainable policies: India is already working towards building a circular economy and moving towards a stage where all our energy requirements are met through the use of renewables. Our policies are all aligned towards ensuring sustainable development, where nature is not disregarded for development but where the most marginalized are not left to their destiny by denying them development.
Conclusion
- Actions against climate change is not just a fervent hope but an emergent necessity. Through mission LiFE India is trying to portray climate crisis from individual perspective. Mission LiFE has a potential to transform climate change movement into the mass movement.
Mains Question

How Mission LiFE will help in conservation of Environment? Critically analyze the India’s efforts to make LiFE a successful mission?

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October 28, 2022
Back in news: Gilgit-Baltistan
Defence Minister has said that the mission of full integration of Jammu & Kashmir that started on August 5, 2019 will be complete when Gilgit-Baltistan and areas of Pakistan-occupied Kashmir (PoK) will reunite with India.

Gilgit-Baltistan: How Pakistan occupied it?
- During the first Indo-Pak war of October 1947, Pakistan occupied 78,114 sq. km of the land of Jammu and Kashmir, including the ‘Northern Areas’.
- The Northern Areas is the other name of Gilgit-Baltistan (GB) that Pakistan has used for administrative reasons because it was a disputed territory.
- In 2020, it became the fifth State of Pakistan after Sindh, Punjab, Balochistan and Khyber Pakhtunkhwa.
GB through history
- The political nature of Gilgit-Baltistan has been directionless from the beginning.
- Pakistan initially governed the region directly from the central authority after it was separated from ‘Azad Jammu and Kashmir’ on April 28, 1949.
- On March 2, 1963, Pakistan gave away 5,180 sq km of the region to China, despite local protests.
- Under PM Zulfiqar Ali Bhutto, the name of the region was changed to the Federally Administered Northern Areas (FANA).
- Pakistan passed the Gilgit-Baltistan Empowerment and Self Governance Order in 2009, which granted “self-rule” to the ‘Northern Areas’.
Its geographical features
- It is home to K-2, the second-tallest mountain in the world.
- Tourism remains restricted by many factors, including military hostility, though the region has some of ancient Buddhist sculptures and rock edicts.
- It is also home to an old Shia community, which often finds itself subjected to persecution in Pakistan’s urban centers.
- At present, a Governor and an elected Chief Minister rule the region, which is divided into Gilgit, Skardu, Diamer, Astore, Ghanche, Ghizer and Hunza-Nagar.
Geographic significance of the region
- Geographic tri-junction of Himalaya, Hindu Kush and Pamir, GB possesses the most startling views of natural beauty.
- Apart from several high-altitude lakes, the region is also home to three of world’s longest glaciers outside of the polar region, including the world’s highest war field, the Siachen glacier.
Strategic importance of GB
- GB is home to some of the world’s most important and contentious strategic points capable of creating unremitting wars.
- The region holds extreme volatility and if gets subjected to desuetude can cause a ruckus in the entire regions of South Asia, Central Asia and China, ultimately affecting the entire world.
- The mountain province consists of 3 core divisions: Gilgit, Baltistan and Diamer.
- This region is further divided into 10 districts along with its Shaksgam valley – which was gifted to China by occupier Pakistan in 1963 border agreement – of 5,180 square km.
Economic Potential
- Home to valuable earthy resources, GB is rich in mineral deposits.
- These include metallic, non-metallic, energy minerals, precious stones and different rocks of industrial use.
- The southern areas of this region have substantial deposits of nickel, lead, copper and zircon.
- In its northern regions, it contains deposits of iron, silver, gold, garnet and topaz.
- Almost all of its mining potential is untapped and capable of generating ample wealth.
Chinese vested interest
- Gilgit-Baltistan is important for China as it is the gateway for the China Pakistan Economic Corridor (CPEC).
- Significantly, the ongoing stand-off with China at the LAC in Eastern Ladakh has a Gilgit-Baltistan connection.
- The Darbuk-Shyok-DBO road of India is viewed as a tactical roadway to access the Karakoram Pass, which provides China crucial access to Gilgit-Baltistan and Pakistan.
Why should India reclaim GB?
- Gilgit Baltistan is an integral part of Indian Territory illegally occupied by Pakistan.
- It is the key to the destruction of Chinese influence in South Asia; the string of China-Pakistan’s pearl necklace and also the Brahmastra for India against China.
- India controlling GB can turn out to be the worst nightmare for China and eventually for Pakistan
Can India take back the BG/POK?
- India can certainly get back POK, Gilgit-Baltistan as all of that territory belongs to India.
- However, military use could trigger a nuclear response from Pakistan as the trigger is in the hands of terrorists and the army.
- Diplomatic channels are another option but it will take too much time.
- Pakistan now is appearing to destabilize all way worse than Sri Lanka did. It might collapse some day in near future.
Try this PYQ:

If you travel through the Himalayas, you are likely to see which of the following plants naturally growing there?
1. Oak
2. Rhododendron
3. Sandalwood
Select the correct option using the code given below:

(a) 1 and 2 only

(b) 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Post your answers here.
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October 28, 2022
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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October 28, 2022
Two Lakshadweep beaches get Blue Flag Certification
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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October 28, 2022
India’s first indigenous Overhauser Magnetometer
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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October 28, 2022
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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October 28, 2022
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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October 27, 2022
MSP: Must be Effective
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.
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.
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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October 27, 2022
Why Private Investment is Lagging in India?
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.
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.
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.
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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October 27, 2022
FATF, Fighting the Terrorism or Just Another Diplomatic Arena
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.
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.
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
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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October 27, 2022

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