Gross Non-Performing Assets (NPAs) of banks are expected to rise to 8-9% this fiscal from 7.5% as on March 31, 2021 but they would still remain below the peak of 11.2% seen at the end of fiscal 2018.
What are Non-Performing Assets?
For a bank, the loans given by the bank is considered as its assets.
Any asset which stops giving returns to its investors for a specified period of time is known as Non-Performing Asset (NPA).
So, if the principle or the interest or both the components of a loan is not being serviced to the lender (bank), then it would be considered as NPA.
Classification of NPAs in India
According to the RBI, a NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.
Substandard Assets: Assets which has remained NPA for a period less than or equal to 12 months.
Doubtful Assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
Loss Assets: As per RBI, loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.
NPAs of Agriculture Loans
In terms of Agriculture/Farm Loans, the NPA is defined as under:
For short duration crop such as paddy, Jowar, Bajra etc. if the loan (instalment/interest) is not paid for 2 crop seasons, it would be termed as an NPA.
For Long Duration Crops, the above would be 1 Crop season from the due date
Reasons for NPAs in India
Impact of NPA on Economy
Depositors’ loss: Depositors do not get rightful returns and many times may lose uninsured deposits.
High interest on lending: Banks may begin charging higher interest rates on some products to compensate NPA loan losses.
Trust issues: Bad loans imply redirecting of funds from good projects to bad ones. Hence, the economy suffers due to loss of good projects and failure of bad investments
Steps taken to curb NPA
(A) By the Govt
Mission Indradhanush:to make the working of public sector bank more transparent and professional in order to curb the menace of NPA in future.
Insolvency and Bankruptcy Code: To make it easier for banks to recover the loans from the debtors.
Stringent NPA recovery rules: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act or SARFESI Act of 2002 was amended in 2016.
(B) By RBI
RBI introduced number of measures in last few years which include:
Corporate Debt Restructuring (CDR) mechanism,
Setting up a Joint Lenders’ Forum, providing banks to disclose the real picture of bad loans, asking them to increase provisioning for stressed assets,
Other terms related to NPAs
Write-off effect
A loan write-off is a tool used by banks to clean up their balance-sheets.
If a loan turns bad on the account of the repayment defaults for at least three consecutive quarters, the exposure (loan) can be written off.
A loan write-off sets free the money parked by the banks for the provisioning of any loan.
Twin Balance Sheet
It deals with two balance sheet problems. One with Indian companies and the other with Indian Banks.
Debt accumulation on companies is very high and thus they are unable to pay interest payments on loans.
Four Balance Sheet Challenge
In his paper named ‘India’s Great Slowdown’, Arvind Subramanian (former Chief Economic Advisor) mentions the new ‘Four balance sheet challenge’.
It includes the original two sectors – infrastructure companies and banks, plus NBFCs and real estate companies.
The International Monetary Fund (IMF) has unveiled its 2nd World Economic Outlook (WEO) Report.
About WEO Report
The WEO is a report by the IMF that analyzes key parts of the IMF’s surveillance of economic developments and policies in its member countries.
It also projects developments in the global financial markets and economic systems.
The report comes out twice every year — April and October.
It is based on a wide set of assumptions about a host of parameters — such as the international price of crude oil — and set the benchmark for all economies to compare one another with.
Key takeaways from the October 2021 WEO
The central message was that the global economic recovery momentum had weakened due to the pandemic-induced supply disruptions.
It is the increasing inequality among nations that IMF was most concerned about.
The dangerous divergence in economic prospects across countries remains a major concern.
Reasons for the slowdown
There are two key reasons:
Large disparities in vaccine access
Differences in policy support
What about Employment?
Ans. There is a lag.
Employment around the world remains below its pre-pandemic levels.
This reflects a mix of negative output gaps, worker fears of on-the-job infection in contact-intensive occupations, childcare constraints, labour demand changes due to automation etc.
The main concern is the gap between recovery in output and employment which is likely to be larger in emerging markets and developing economies than in advanced economies.
Further, young and low-skilled workers are likely to be worse off than prime-age and high-skilled workers, respectively.
Implications for India
Ans. Reduce India’s growth momentum
IMF has suggested that India’s economic recovery is gaining ground.
Some sectors such as the IT-services sectors have been practically unaffected by Covid, while the e-commerce industry is doing brilliantly.
However, the recovery in unemployment is lagging the recovery in output (or GDP).
This matters immensely for India as it reflects jobless growth.
India was already facing a deep employment crisis before the Covid crisis, and it became much worse after it.
Lack of adequate employment levels would again drag down overall demand and affect the growth momentum.
Threats to growth momentum
Usual unemployment: Even before the pandemic, India already had a massive unemployment crisis.
Sector-wise recovery: India is witnessing a K-shaped recovery. That means different sectors are recovering at significantly different rates.
Unorganized sector: A weak recovery for the informal/unorganized sectors implies a drag on the economy’s ability to create new jobs or revive old ones.
Contact-based services: Such services which can create many more jobs, are not seeing a similar bounce-back.
How informal is India’s economy?
A NSO report titled ‘Measuring Informal Economy in India’ gives a detailed account of informal Indian economy.
It shows the share of different sectors of the economy in the overall Gross Value Added and the share of the unorganised sector therein.
The share of informal/unorganised sector GVA is more than 50% at the all-India level, and is even higher in certain sectors.
It creates a lot of low-skilled jobs such as construction and trade, repair, accommodation, and food services.
The European Union has recalled some packaged food items which were made up of Indian GMO.
GM crops in India
The Genetic Engineering Appraisal Committee (GEAC) under Environment Ministry oversees the approval of GM Crops in India.
Bt cotton: It is the only GM crop that has been approved for commercial cultivation in 2002.
Bt Brinjal: Resistant to brinjal shoot fly, it was approved by GEAC in 2009. However due to 10 years moratorium imposed on GM crops by the Technical Expert Committee (TEC) appointed by the Supreme Court of India, its commercialization has stalled.
GM Dhara Mustard Hybrid 11: DMH 11 developed by Delhi University is pending for commercial release as GEAC has advised to generate complete safety assessment.
However, unauthorized HtBt Cotton and Bt Brinjal are being grown commercially, with hundreds of growers blatantly defying the governmental ban.
What about GM Rice?
GM rice is not grown commercially in India.
However, multiple GM rice varieties have been approved for confined field trials.
There seems a possibility of cross-contamination from such field trials directly or through seed leakages.
India’s rice exports
India’s annual rice exports amount to 18 million tonnes worth ₹65,000 crore, and reach more than 75 countries.
What is the EU move?
A European candy has recalled several batches of its product from the market due to the use of rice flour with genetically modified (GM) contamination that allegedly originated in India.
The EU notification has identified the product as ‘Unauthorised genetically modified (p35S and tNos) rice flour from India’.
Impact of the EU move
This has led to the loss of reputation of India and its agricultural market.
With such a move by the EU, it is Indian farmers and exporters who have much to lose.
Threats posed by GM crops
It is believed that consumption of genetically engineered foods can cause the development of diseases which are immune to antibiotics.
Besides, as these foods are new inventions, not much is known about their long term effects on human beings.
Genetically modified rice may potentially cause serious public health and environmental problems.
Two major issues about GM rice are their tendencies to provoke allergic reactions and the uncertainty of gene transfers.
What can be done to reverse this?
Ban on field trials of GM crops
Slapping liability for illegal release of GMOs into the environment on developers
Probe to identify the source of the GM rice contamination
Try answering this PYQ:
With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:
GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.
GM mustard has the genes that allow the plant cross-pollination and hybridization.
GM mustard has been developed jointly by the IARI and Punjab Agricultural University.
Which of the statements given above is/are correct?
The Union government has rechristened Mount Harriet, a historical tourist spot in the Andaman and Nicobar Islands, as ‘Mount Manipur’ to commemorate the1891 Anglo-Manipur war.
Manipur’s connection to Mount Harriet
After the Anglo-Manipur War of 1891, several Manipuris who had fought the British in the war, including Maharaja Kulachandra Dhwaja Singh, were exiled to the British penal colony in the Andaman Islands.
Since the cellular jail (Kalapani) was yet to be built, Kulachandra and the prisoners were kept on Mount Harriet, a hillock in what is now the Ferragunj tehsil of South Andaman district.
23 men, including King Kulachandra and his brothers, were “transported for life” to the Andamans.
While some died there, Kulachandra was released and shifted elsewhere before his death.
This is why Mount Harriet is an important symbol of the Anglo-Manipur War of 1891.
About Anglo-Manipur War of 1891
Considered an epoch in the history of Manipur, the Anglo-Manipur War was fought between the kingdom of Manipur and the British over a month in 1891.
The battle was triggered by a coup in the palace of Manipur, which had been marked by internal factionalism in the years leading up 1891.
The British government took advantage of the internal dissension among the princes of the royal family.
Battle for throne
In 1886, when Surchandra inherited the throne from his father Chandrakirti Singh, the kingdom of Manipur was not under the British rule but had links with the crown through different treaties.
However, Surchandra ascension to the throne was controversial and his younger brothers — Kulachadra, Tikendrajit — revolted against him.
The1890 coup by the rebel faction deposed Surchandra, and proclaimed Kulachandra, the next oldest brother, the king.
Surchandra fled to Calcutta seeking British help to reinstate him.
Instead, the British dispatched James Quinton, the Chief Commissioner of Assam, with an army to Manipur.
His mission was to recognise Kulachandra as the king under the condition that they be allowed to arrest the coup leader Crown Prince Tikendrajit and deport him from Manipur.
This aggressive imposition of British law in a sovereign state was rejected by the king, precipitating the Anglo-Manipuri War of 1891.
Its aftermath
In the first phase of the war, the British surrendered and their officers — including Quinton — were executed in public.
In the second phase, the British attacked Manipur from three sides, and finally capture the Kangla Fort in Imphal.
Prince Tikendrajit and four others were hanged by the British, while Kulachandra, along with 22 others, were banished to the Andaman Islands.
Significance of the war
Many say the war was described as a blow to British prestige.
In India, it was viewed as being part of the general uprising against British rule in the country, soon after after the Revolt of 1857.
The war led to Manipur officially becoming a princely state under the indirect rule of the British crown.
GS-1 Urbanization, their problems and their remedies
GS-2 Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.
GS-3 Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices; Public Distribution System – Objectives, Functioning, Limitations, Revamping; Issues of Buffer Stocks and Food Security; Technology Missions; Economics of Animal-Rearing.
GS-4 Public/Civil service values and Ethics in Public administration: laws, rules, regulations and conscience as sources of ethical guidance
HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?
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The Essay Paper in Mains makes or breaks your dream of becoming an IAS officer. Do you know a well-structured essay uplifts your rank by more than a 100 notches?
While the performance of students is more or less the same in GS papers (especially 1,2,3), but in the case of essay the variation of marks is rather huge (in 60s to 160). Yes, a single Essay paper can create a gulf of 100 marks.
If you have not yet started writing essays or if you’re confused on how to write quality answers within a short duration, then this webinar is for you!
Open to All, Attend the Webinar Essay FLT.
The orientation session is about learning the basics of essay writing. We welcome all the sincere and serious aspirants who understand the value of scoring 120+ in the essay paper. This is the only paper where mere management of time and thoughts will fetch you marks more than any other paper.
Who must join the webinar?
One who is attempting Mains in 2021.
One who is going to attempt Prelims 2022.
Anyone who has a basic understanding of the UPSC syllabus.
What can you learn from this webinar?
1. Right sources to prepare Essay Paper for Mains.Is just reading GS Subjects and Current Affairs enough for Essay Paper?
2. Understanding the type of questions asked. What are the 8 broad themes of essay?
3. Brainstormingthe topic before writing. What are the 10 parameters by which your essay will be evaluated?
4. Organising your thoughts into paragraphs. How to divide the 1200 word essay into well-structured paragraphs?
5. Framing the correct thesis statement. How to sound persuasive yet logical?
6. Different types of introduction you can write for your essay. What kind of anecdotes work?
7. Developing balanced main body arguments. How to be less biased with an interdisciplinary approach?
8. Concluding the essay perfectly. How can you score additional marks over here?
Arpit Sir will also hold a Q&A Session where beginners and veterans can clarify their doubts.
So attend this webinar and start the very first step of essay writing in the right direction!
Webinar Details
Date – 22nd October 2021(Friday)
Time – 4:00PM-5:00PM
About Arpit Sir
Arpit Sir has the experience of attending all the stages of UPSC CSE – prelims, mains and interview. He has been mentoring aspirants for the last 8 years. According to him, enjoying the process of preparation will prevent the fear of the end result.
Recently a report on Plastic Waste Management was released by Ministry of Housing and Urban Affairs.
Also the Environment Ministry has issued draft rules on Extended Producer Responsibility (EPR) that mandate producers of plastic packaging material to collect all of their produce by 2024.
Introduction
Plastic is ubiquitous, it’s visibly the backbone of globalisation. Plastic, without doubt, is the miracle commodity that has uses ranging from increasing shelf lives of eatables to medical equipment and automotive.
Plastic products have become an integral part of our daily life as a result of which the polymer is produced at a massive scale worldwide.
Its broad range of application is in packaging films, wrapping materials, shopping and garbage bags, fluid containers, clothing, toys, household and industrial products, and building materials.
Why is Plastic so popular?
Durability and low maintenance
Low material replacement
Low weight
Cheaper availability
Plastic Consumption in India
The CPCB Report of 2019-20 states that 3.4 million metric tonnes of plastic waste is generated in India annually.
The global average of plastic per capita consumption is 28 kg and India has a per capita plastic consumption of 11 kg.
India recycles over 60 per cent of its plastic (a/c to MoHUA), which was way higher than the recycling capacity of any developed country.
Only nine per cent of the plastic waste produced between 1950 and 2015 was recycled globally, according to a study by researchers from the University of California, Santa Barbara, and others.
Hazards of Plastic
[A] Solid Waste generation
The disposal of plastics is one of the least recognized and most highly problematic areas of plastic’s ecological impact.
Ironically, one of plastic’s most desirable traits: its durability and resistance to decomposition, is also the source of one of its greatest liabilities when it comes to the disposal of plastics.
A very small amount of total plastic production (less than 10%) is effectively recycled; the remaining plastic is sent to landfills.
It is destined to remain entombed.
[B] Ecological Impact
(i) Groundwater and soil pollution
Plastic is a material made to last forever, and due to the same chemical composition, plastic cannot biodegrade; it breaks down into smaller and smaller pieces.
When buried in a landfill, plastic lies untreated for years.
In the process, toxic chemicals from plastics drain out and seep into groundwater, flowing downstream into lakes and rivers.
The seeping of plastic also causes soil pollution and have now started resulting in presence of micro plastics in soil.
(ii) Water Pollution
The increased presence of plastic on the ocean surface has resulted in more serious problems.
Since most of the plastic debris that reaches the ocean remains floating for years as it does not decompose quickly, it leads to the dropping of oxygen level in the water.
It has severely affected the survival of marine species.
When oceanic creatures and even birds consume plastic inadvertently, they choke on it which causes a steady decline in their population.
In addition to suffocation, ingestion, and other macro-particulate causes of death in larger birds, fish, and mammals.
[C] Health Hazards
Burning of plastic results into formation of a class of flame retardants called as Halogens.
Collectively, these harmful chemicals are known to cause the following severe health problems: cancer, neurological damage, endocrine disruption, birth defects and child developmental disorders etc.
Plastic Waste Management (PWM Rules) in India
These rules first rolled out in 2016 were amended and named as ‘Plastic Waste Management (Amendment) Rules, 2018. Its salient features include:
Applied to: These rules shall apply to every Waste Generator, Local Body, Gram Panchayat, Manufacturer, Importer, Producer and Brand Owner.
Thickness of virgin plastic: Carry bags made of virgin or recycled plastic, shall not be less than 50 ( now 120 after Amendment in 2021) microns in thickness.
Waste Generators including institutional generators, event organizers shall not litter the plastic waste, shall segregate waste and handover to authorized agency and shall pay user fee.
Local Bodies shall be responsible for development and setting up of infrastructure for segregation, collection, storage, transportation, processing and disposal.
State Pollution Control Board (SPCB)/ Pollution Control Committee (PCC) shall be the authority for enforcement of the provisions of PWM Rules, 2018, relating to registration, manufacture of plastic etc.
The draft Plastic Waste Management Rules, 2021 has necessitated a few changes in the country’s handling of its plastic waste.
Expanded applicability: One, the amendment has extended the applicability of the rules to brand-owner, plastic waste processor, including the recycler, co-processor, etc.
New definitions: It will also include new definitions of:
Non-woven plastic bag
Plastic waste processing
Single-use plastic (SUP) item
Thermoset plastic
Thermoplastic
Increased thickness: The ministry has proposed increasing the thickness of carry bags made of virgin plastic to 120 microns from 50 microns.
Ban on certain items: The draft also proposes a ban on the manufacture, import, stocking, distribution, sale and use of specific single-use plastic from January 1, 2022. These include plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, and thermocol (extended polystyrene) for decoration.
Strategy for PWM
Issues in Plastic Management
Recycling here means ‘Down-cycling’
Most plastics that we claim can be recycled in India are rather down-cycled to some other material.
They are recyclable but recycled products are more harmful to the environment as this contains additives and colors.
The recycling of a virgin plastic material can be done 2-3 times only, because after every recycling, the plastic material deteriorates due to thermal pressure and its life span is reduced.
Hence recycling is not a safe and permanent solution for plastic waste disposal.
A classic example is that of PET bottles being recycled to t-shirts.
Way Forward
Given the broad range of possible actions to curb single-use plastics and their mixed impact, UN Environment has drawn up a 10-step roadmap for governments:
Target the most problematic single-use plastics: by conducting a baseline assessment to identify the most problematic single-use plastic.
Consider the best actions to tackle the problem: (e.g. regulatory, economic, awareness, voluntary actions), given the country’s socio-economic standing.
Assess the potential social, economic and environmental impacts (positive and negative) of the preferred short-listed instruments/actions, by considering how will the poor be affected.
Identify and engage key stakeholder groups – retailers, consumers, industry representatives, local government, manufacturers, civil society, environmental groups etc.
Raise public awareness about the harm caused, by clearly explaining the decision and any punitive measures that will follow.
Promote alternatives: Before the ban or levy comes into force, the availability of alternatives need to be assessed.
Provide incentives to industry by introducing tax rebates or other conditions to support its transition.
Use revenues collected from taxes or levies on single-use plastics to maximize the public good, thereby supporting environmental projects or boosting local recycling.
Enforce the measure chosen effectively, by making sure that there is clear allocation of roles and responsibilities.
Monitor and adjust the chosen measure if necessary and update the public on progress.
Best strategies:
Adoption of ‘Circular Economy’
A circular economy aims to eliminate waste, not just from recycling processes, but throughout the lifecycles of products and packaging.
A circular economy aims to maximize value and eliminate waste by improving the design of materials, products and business models.
Extended Producer’s Responsibilities (EPR)
State/ ULB to introduce ‘Buy back Depository Mechanism’ with a predefined buy back price printed on plastic products.
A national Framework on EPR is proposed where the producers/importers/brand owner is required to contribute to the EPR corpus fund at the central level.
Plastic Credit Mechanism
A producer is not required to recycle their own packaging, but to ensure that an equivalent amount of packaging waste has been recovered and recycled to meet their obligation.
Producers are mandated to acquire evidence of recycling or recovery called the Plastic Credit from properly accredited processors.
Conclusion
Managing plastic waste requires effective knowledge, not only among those who produce the plastic, but also among those who handle it.
Brand owners, consumers, recyclers and regulatory authorities need to take long strides in ensuring that we first inventorize the total amount of plastic waste that we generate by means of proper calculations.
Best step would be to identify the avenues where the use of plastic can be minimised. The brand owner and manufacturer should try and understand the fates a plastic packaging material would meet after its purpose of packaging has been served.
Last, as consumers, we should ensure that all plastic waste leaving our homes is segregated and is not contaminated with food waste.
Normally, the power-generating companies maintain around 30 days of inventory of coal, but, currently, this has come down to three days.
Factors responsible for the crisis
Supply side issue: On the supply side, because of low investment, coal cannot be mined more than the capacity which exists today. Hence, the increase in supplies will be gradual.
High global prices: The global coal crisis has led to higher prices.
Here, too, a sudden resurgence in demand after the pandemic has exposed the supply limitations.
The international price has gone up by almost 40 per cent in the last month.
China factor: China – a major producer and consumer – has also faced this problem as it has tried to save coal for the future and imposed restrictions on mining to go green.
Emphasis on lowering the dependence on import: In India, coal imports have been traditionally high.
Under its atmanirbharta drive, the government has voiced concerns on this issue and asked generators to be more self-reliant.
Coal dependency came down over time, which also coincided with a lower phase of economic growth.
The same has happened in China where the government has taken the greening concept seriously and asked coal producers to control production and power generators and move over to other greener fuels.
This has made coal producers less willing to increase investment.
Why power companies are reluctant to import coal?
Ideally, power companies should import coal.
But that increases the cost of power production and power tariffs cannot be revised easily, like in the case of crops.
The power sector, however, already has its woes.
Distribution companies have been running losses due to their inability to cut down on transmission losses or increase tariffs.
As their losses mount, the amount overdue to the generators increases.
Therefore, the producers are not willing to increase their costs.
How it would impact the economy?
The economy has been showing signs of recovering and the October-December period is crucial because there are expectations of pent-up demand helping to accelerate growth.
Any disruption in the power supply can push back this process.
The challenge is that today all the three sectors, agriculture, industry and households, are equally important.
A lot of business is being conducted from home after the pandemic, and power disruptions will come in the way of work.
If power companies start revising their tariffs, inflation will shoot up.
Conclusion
The coal shortage problem is very serious as it affects power supply, which is the backbone of all economic activity. All stakeholders – the Centre, states, miners and power generators – must work together and plan the strategy going ahead.
A document has emerged from the Centre for Policy Research (CPR) in the nature of an alternative to the present foreign and defence policies named ‘India’s Path to Power: Strategy in a world adrift’. It is authored by eight well-known strategists and thinkers.
Background of the document
In 2012, many of the same authors had produced another document, ‘Non-alignment 2.0’, in the light of the global changes at that time, as a contribution to policymaking, without criticising the policies of the government.
The present document, however, is in the nature of an alternative to the foreign and defence policies of the government, as some of its tenets are not considered conducive to finding a path to power for India in the post-pandemic world.
Change in foreign policy
The first term of the Modi government was remarkable for its innovative, bold and assertive foreign policy, which received general approbation.
After his unconventional peace initiatives with Pakistan failed, he took a firm stand and gained popularity at home.
His wish to have close relations with the other neighbours did not materialise, but his helpful attitude to them even in difficult situations averted any crisis.
He brought a new symphony into India-U.S. relations and engaged China continuously to find a new equation with it. India’s relations with Israel and the Arab countries became productive.
In its second term, the government dealt with some of the sensitive matters, which were essentially of a domestic nature such as Article 370, citizenship issues and farming regulation.
The external dimensions of these matters led to a challenge to the government’s foreign policy.
Suggestions in the Centre for Policy Research report
Impact of domestic issues on foreign policy: The finding of the report is that domestic issues have impacted foreign policy and, therefore, India should set its house in order to stem the tide of international reaction.
This assertion at the beginning of the report is the heart of the report and it is repeated in different forms.
Importance of globalisation: The report rightly points out that “it would be incorrect and counterproductive for India to turn its back on globalisation…”
Revival of SAARC: The report also suggests that SAARC should be revived and that India should rejoin the Regional Comprehensive Economic Partnership and continue its long-standing quest for membership in the Asia-Pacific Economic Cooperation.
Strategic autonomy: The report also stresses the importance of strategic autonomy in today’s world where change is the only certainty.
Relations with the US and China: As for the India-U.S.- China triangle, the report makes the unusual suggestion that India should have better relations individually with both the U.S. and China than they have with each other.
The report concludes that since China will influence India’s external environment politically, economically and infrastructurally, there is no feasible alternative to a combination of engagement and competition with China.
Pakistan policy: The report asserts, “as long as our objectives of policy towards Pakistan are modest, resumption of dialogue and a gradual revival of trade, transport and other links are worth pursuing.”
Conclusion
The significance of the report is that it reveals the end of the era of consensus foreign policy and presents a shadow foreign policy for the first time in India. It remains to be seen whether any of the opposition parties will adopt it and fight the next election on the platform provided by the report.
