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  • In news: China Indian Ocean Region Forum

    china

    China’s top development aid agency convened the first “China-Indian Ocean Region Forum” in the southwestern Chinese city of Kunming.

    What is the China Indian Ocean Region Forum?

    • It is organised by the China International Development Cooperation Agency (CIDCA).
    • It is the latest Chinese initiative focusing on the Indian Ocean Region (IOR).
    • It underlines Beijing’s growing strategic interests in a region where its economic footprint has been deepening.

    What is it about?

    • The CIDCA is China’s new development aid agency similar to the United States Agency for International Development (USAID).
    • It aims to-
    1. Strengthen policy coordination,
    2. Deepen development cooperation,
    3. Increase resilience to shocks and disasters, and
    4. Enhance relevant countries’ capacity to obtain economic benefits through use of marine resources such as fisheries, renewable energy, tourism, and shipping in a sustainable way

    Which countries have backed the forum?

    • The organisers have said the forum was attended by high-level representatives and senior officials from 19 countries.
    • But at least two of those countries, Australia and Maldives, subsequently released statements rebutting the claim, emphasising that they did not participate officially.

    Why such a move by China?

    China’s ambitions in the Indian Ocean have been motivated by three factors-

    • Gaining significance of Indo-Pacific: As the new world order unveils around the Indo-Pacific, Beijing aims to challenge other major powers, such as India, and establish its hegemony.
    • Domestic energy security: Beijing needs the Indian Ocean to ensure its energy security and continue fuelling its growth, which defines its foreign policy and international leverage.
    • Hegemony establishment: Establishing new and alternative institutions with IOR countries helps China display its presence and influence from the China Sea to the Indian Ocean, reflecting its status as a significant power.

    How is China perceiving its interests?

    1. Political corruption: Beijing has cultivated close and personal relationships with political elites and parties of IOR countries, usually through corruption, party funding, and by turning a blind eye to their human rights abuses and democratic infirmities.
    2. Fractionalization: Friendship with different political parties in Pakistan; bonhomie with the Rajapaksa clan in Sri Lanka, and close relations with Maldives’ Abdulla Yameen are some examples of this widespread phenomenon.
    3. Elite capture: In addition, China has often used the elite capture tactic to ensure a pro-China policy and bag geo-economically and strategically significant projects. This includes concessions on Pakistan’s Gwadar Port and Sri Lanka’s Colombo Port City project.

    Where does India stand?

    • India was the lone absentee in the forum ignoring the invitation.
    • China has exposed its intention with the Indian Ocean Region (IOR) countries.
    • New Delhi has viewed China’s recent moves in the region warily, including the recent visit of a Chinese military tracking vessel, the Yuan Wang 5, to Sri Lanka.
    • Moreover, India sees the Indian-Ocean Rim Association (IORA) as an already established platform for the region.

    China’s plans for the IOR

    • The forum has underlined China’s stepped-up interest in the IOR, where it is already a major trading partner for most countries and where sea routes lie vital to China’s economic interests.
    • The CIDCA forum is the latest initiative to reflect Beijing’s view that it has a clear stake in the region, and that more such initiatives are likely.

    Has China out-powered India in the IOR with this move?

    • The Chinese initiative looks like a kind of delayed response.
    • It can be seen only as a comparison and competitor to India’s SAGAR (Security and Growth for All in the Region), as outlined by PM Modi in Mauritius in 2015.
    • The Indian idea is implemented through the nation’s ‘Neighbourhood First’ policy and such other initiatives as ‘‘Project Mausam’ and ‘Integrated Coastal Surveillance System’ (now shared with Maldives).
    • All of them are confined to the Indian Ocean, where India too belongs legitimately, unlike China.

    Conclusion

    • In a way, the new initiative reflects China’s unending greed.
    • It also reflects China’s desire and ambition to measure up to the US in reach and outreach, and through them, geo-economics, geopolitical, and geostrategic comparability.

     

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  • In news: Electoral Bond Scheme

    The government has opened yet another week-long window for electoral bond sales starting December 5.

    What are Electoral Bonds?

    • Electoral bonds are banking instruments that can be purchased by any citizen or company to make donations to political parties, without the donor’s identity being disclosed.
    • It is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of State Bank of India.
    • The citizen or corporate can then donate the same to any eligible political party of his/her choice.
    • An individual or party will be allowed to purchase these bonds digitally or through cheque.

    About the scheme

    • A citizen of India or a body incorporated in India will be eligible to purchase the bond
    • Such bonds can be purchased for any value in multiples of ₹1,000, ₹10,000, ₹10 lakh, and ₹1 crore from any of the specified branches of the State Bank of India
    • The purchaser will be allowed to buy electoral bonds only on due fulfillment of all the extant KYC norms and by making payment from a bank account
    • The bonds will have a life of 15 days (15 days time has been prescribed for the bonds to ensure that they do not become a parallel currency).
    • Donors who contribute less than ₹20,000 to political parties through purchase of electoral bonds need not provide their identity details, such as Permanent Account Number (PAN).

    Objective of the scheme

    • Transparency in political funding: To ensure that the funds being collected by the political parties is accounted money or clean money.

    Who can redeem such bonds?

    • The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.
    • Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last General Election to the Lok Sabha or the State Legislative Assembly, shall be eligible to receive the Electoral Bonds.

    Restrictions that are done away

    • Earlier, no foreign company could donate to any political party under the Companies Act
    • A firm could donate a maximum of 7.5 per cent of its average three year net profit as political donations according to Section 182 of the Companies Act.
    • As per the same section of the Act, companies had to disclose details of their political donations in their annual statement of accounts.
    • The government moved an amendment in the Finance Bill to ensure that this proviso would not be applicable to companies in case of electoral bonds.
    • Thus, Indian, foreign and even shell companies can now donate to political parties without having to inform anyone of the contribution.

    Issues with the Scheme

    • Opaque funding: While the identity of the donor is captured, it is not revealed to the party or public. So transparency is not enhanced for the voter.
    • No IT break: Also income tax breaks may not be available for donations through electoral bonds. This pushes the donor to choose between remaining anonymous and saving on taxes.
    • No anonymity for donors: The privacy of the donor is compromised as the bank will know their identity.
    • Differential benefits: These bonds will help any party that is in power because the government can know who donated what money and to whom.
    • Unlimited donations: The electoral bonds scheme and amendments in the Finance Act of 2017 allows for “unlimited donations from individuals and foreign companies to political parties without any record of the sources of funding”.

    Way ahead

    • The worries over the electoral bond scheme, however, go beyond its patent unconstitutionality.
    • The concern about the possibility of misuse of funds is very pertinent.
    • The EC has been demanding that a law be passed to make political parties liable to get their accounts audited by an auditor from a panel suggested by the CAG or EC. This should get prominence.
    • Another feasible option is to establish a National Election Fund to which all donations could be directed.
    • This would take care of the imaginary fear of political reprisal of the donors.

     

     

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  • Unified Payments Interface (UPI) market cap deadline extended by 2 years

    The National Payments Corporation of India (NPCI) has extended by two years the deadline to comply with its 30 percent cap on the market share of platforms operating on the Unified Payments Interface (UPI).

    What is UPI?

    • Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India (NPCI) facilitating inter-bank transactions.
    • The interface is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform.

    What is the NPCI plan for UPI?

    • NPCI had initially planned to enforce the market cap rules in January 2021.
    • It aimed to limit any single payments app from processing more than 30 per cent of UPI transactions in a month.

    Why extension?

    • The extension is being seen as a major relief for Walmart and Flipkart-backed PhonePe and Google Pay, which currently command a majority of the UPI market share.

    How could it impact UPI platforms?

    • Industry analysts believe the move comes as a shot in the arm for PhonePe and Google Pay, which collectively control more than 80 per cent of UPI’s market share.
    • For platforms like Paytm and WhatsApp Pay, however, the extension could be seen as a natural loss.
    • As of October, Paytm had a market share of 15 per cent on UPI.
    • In comparison, PhonePe had a 47 per cent market share, while GooglePay accounted for around 35 per cent.

    How is UPI performing?

    • According to the Reserve Bank of India’s Payment Vision 2025, UPI is expected to register an average annualized growth of 50 percent.
    • After touching a new high of Rs 12.11 lakh crore in October, the UPI transaction value for the month of November came in at Rs 11.90 lakh crore.
    • However, the transaction count at 7.3 billion in October remained the same in November.

     

    Try this PYQ:

    With reference to digital payments, consider the following statements:

    1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
    2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

    Which of the statements given above is/ are correct? (CSP 2018)

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    [wpdiscuz-feedback id=”2uhz29r4ut” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

     

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  • India tops index on Social Hostilities Index (SHI)

    shi

    In 2020, India has been ranked first in the Social Hostilities Index (SHI) released by US think-tank Pew Research Center.

    What is Social Hostilities Index (SHI)?

    • SHI measures acts of religious hostility by private individuals, organisations or groups in society.
    • The SHI measures acts of religious hostility by private individuals, organizations or groups.
    • The index comprises 13 metrics, including religion-related armed conflict or terrorism and mob or sectarian violence.
    • Questions used to compute the SHI included whether the country saw violence motivated by religious hatred or bias, whether individuals faced harassment or intimidation motivated by religious hatred or bias and whether there was mob violence against those of particular religious groups.

    How bad has India fared?

    • At 9.4 out of a maximum possible score of 10, India’s SHI in 2020 was worse than neighbouring Pakistan and Afghanistan, and a further increase in its own index value for 2019, the Pew data showed.
    • India has faced severe backlash due to its crackdown on a ‘religious’ congregation held in New Delhi defying the COVID pandemic.

    Other components: Government Restrictions Index (GRI)

    • India much better on a second index: the Government Restrictions Index (GRI).
    • This index looks at laws, policies and state actions restricting religious beliefs and practices.
    • China ranked the worst, with a score of 9.3.
    • India’s 34th rank was enough to categorize it among countries with “high” levels of such government restrictions.
    • The GRI comprises 20 measures, including efforts by governments to ban particular faiths, prohibit conversion, limit preaching or give preferential treatment to one or more religious groups

    Official data for substantiation

    • By India’s own official crime statistics, the picture is more mixed.
    • According to police data, religious riots for which cases were filed rose substantially in 2020, and declined again in 2021.
    • But there have been significant variations over time, and the numbers are too low as a share of overall rioting incidents to indicate a definitive trend.
    • Moreover, the home ministry no longer provides data on “communal incidents”, and the National Crime Records Bureau (NCRB) now only publishes data on religious “riots”.

     

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  • India leaps in to ICAO Aviation Safety Rankings

    icao

    In the rankings by the International Civil Aviation Organisation (ICAO), India is now at the 48th position, a “quantum leap” from the 102nd rank it had in 2018.

    ICAO Assessment

    • Under the ICAO standards, the Effective Implementation (EI) of six areas were assessed. They are LEG, ORG, PEL, OPS, AIR and AGA.
    1. LEG is Primary Aviation Legislation and Specific Operating Regulations;
    2. ORG is Civil Aviation Organisation;
    3. PEL is Personnel Licensing and Training;
    4. OPS is Aircraft Operations;
    5. AIR is Airworthiness of Aircraft; and
    6. AGA is Aerodrome and Ground Aid.

    How has India fared in ICAO ranking?

    • With a score of 85.49 per cent each, India and Georgia are at the 48th position.
    • Neighbouring Pakistan is at the 100th spot with a score of 70.39 per cent.

    Global scenario

    • The rankings are topped by Singapore with a score of 99.69 per cent.
    • It is followed by the UAE at the second position with a score of 98.8 per cent and the Republic of Korea is at the third place (98.24 per cent).
    • Others in the top ten are France (4th; 96.42 per cent), Iceland (5th; 95.73 per cent), Australia (6th; 95.04 per cent), Canada (7th; 94.95 per cent), Brazil (8th; 94.72 per cent), Ireland (9th; 94.6 per cent) and Chile (10th; 93.9 per cent).

    What is ICAO?

    • The ICAO is a specialized agency of the UN that coordinates the principles and techniques of international air navigation.
    • It fosters the planning and development of international air transport to ensure safe and orderly growth.
    • ICAO headquarters are located in the Quartier International of Montreal, Quebec, Canada.

    Functions of ICAO

    • Standardization: The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures etc.
    • Investigation standards: ICAO defines the protocols for air accident investigation that are followed by transport safety authorities in countries signatory to the Chicago Convention on International Civil Aviation.

     

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  • Seminar for Marathi aspirants by IPS, Amol Murkut | Career guidance session on how to prepare for government competitive exams including MPSC and UPSC | Register now

    Seminar for Marathi aspirants by IPS, Amol Murkut | Career guidance session on how to prepare for government competitive exams including MPSC and UPSC | Register now

    Marathi Seminar by IPS, Amol Murkut sir | Career guidance session on how to prepare for government competitive exams including MPSC and UPSC | Register & Get Value-added Free notes for MPSC & UPSC

    *Click here to read what will be discussed in this Seminar

    Guys, Every year millions of candidates start and sit for various Govt. job exams. As vacancies are few and aspirants are many, only a minuscule number of candidates can get through these exams.

    Apart from that Government Job vacancies have also dwindled in recent years. So, be it MPSC, UPSC, or any other Govt. job exam every aspirant needs experts’ guidance with some sort of motivation.

    Civilsdaily’s Mentorship Students are today’s UPSC Rankers

    Success is nothing but more than a few simple disciplines practiced every day

    Amol Murkut, IPS

    The journey to the final job offer is very long, especially in today’s time. Have you ever thought about what you would do if finally you find that you faced only failure? What will be the consequences if you choose any other profession just leaving Govt job preparation? Can you easily succeed soon?

    Make hay while the sun shines, the proverb means that we must not let any opportunity slip, but make prompt and full use of it whenever it comes. 

    Opportunities do not always come. If we miss one opportunity, we may miss it forever and suffer consequences. Therefore, we must always take full and prompt advantage of any opportunity that may come our way.

    Acknowledging the need for the removal difficulties of Freshers/unsuccessful students, Dr. Amol Murkut, IPS officer and Super mentor in Civilsdaily is conducting a need of the hour Career guidance session on how to prepare for government competitive exams including MPSC and UPSC. Registration is absolutely free. 

    Details of the Seminar

    Date5th December (Monday)

    Time: 11 am

    Mode: Online/offline (zoom link will be shared with you all)

    Speakers: Amol Murkut, IPS

    Get FREE PDF notes on registration. Register now

    Venue:

    • Offline – CivilsDaily IAS, Pune center
      • (Address: Civilsdaily IAS, First floor, 518, Ramprasad, opposite Radhika Bhel, Sadashiv Peth, Pune, Maharashtra 411030)
    • Online- Zoom link will be emailed to you.

    Post-seminar CivilsDaily will share a special Preparatory Package both for UPSC & MPSC candidates.

    You are also entitled to a personalized intensive mentorship session by a senior IAS mentor wherein you can avail of a personalized study plan, schedule, and doubt resolution session.

    This is for you if you are:

    1. A UPSC/MPSC beginner – confused about the syllabus, prioritizing subjects, making timetables & targets, or just getting started.
    2. A working professional or college student who will be attempting UPSC 2023 with a job. Facing a serious time crunch and mismanagement in UPSC preparation.
    3. A veteran or aspirant trying to improve your rank in UPSC 2023 attempt.

    Strategic planning will help you fully uncover your options, set priorities for them, and define the methods to achieve them.

    Key takeaways of the Seminar

    This is going to be an interactive 1-1 session with Senior mentors and an IPS officer. You will get ample time and opportunity to discuss this with Amol sir. These points will be discussed.

    1. What is the basic but mostly required strategy to crack any Government job is your first attempt? How to make a plan for the day. Day-to-day time management.

    2. Dealing with negative emotions such as despair and stress. How did Soham study when he was feeling down?

    3. His sources for current events, and strategy 

    4. Should an aspirant participate in a study group and prepare? Soham responds.

    6. What practices did Soham altogether avoid what was popular among other aspirants?

    7. What shall be the macro plan for the next coming months

    8. Revision Cycle strategy

    9. Different approach of Prelims and mains and Integrated Preparation of both for MPSC and UPSC – 2023, 24.

    10. Answer Writing Strategy 

    11. Importance of hobby

    12. Essay approach: what things work.

    13. How toppers prioritize momentum mover content and content over structure. ‘How to fix your static answer writing structure, improved with the current affairs?

    14. Whether your answers ought to reflect the editorial standards of The Hindu! What should be the foolproof strategy of note-making from current affairs? What points ought to be included in your notes?

    15. How to create a basic conceptual framework of the current affairs answer before committing anything to paper. Implications of overstretching your imagination.

    16. What is the difference between ‘Opinion-based current affairs’ & ‘Current issues with Fact-based’ questions will also be discussed thoroughly in this webinar.

    17. How to enhance writing patterns, where to take mock regularly, and how many mock tests are optimal?

    Civilsdaily Mentorship is acknowledged by The Hindu

    Some of our Ranker from Maharashtra

  • Shivaji Maharaj and the Agra escape

    Shivaji Maharaj

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    Context

    • Recently, Maharashtra Tourism Minister Mangal Lodha triggered a controversy by equating Chhatrapati Shivaji Maharaj’s legendary Agra escape to Chief Minister Eknath Shinde’s defection from the Uddhav Thackeray-led camp in Maharashtra. His comments drew sharp criticism from political parties and other organisations that venerate Shivaji as a Maratha icon, with no parallel in the past or present.

    Brief Political background of the issue

    • Eknath Shinde’s “revolt” against party leadership and CM Uddhav Thackeray in June this year led to the fall of the coalition government of the Shiv Sena, NCP, and the Congress. He has since taken the reins of Maharashtra as its CM.

    Shivaji Maharaj

    Who was Chhattrapati Shivaji Maharaj?

    • Chhatrapati Shivaji Maharaj (1630-1680): He was born on 19th February, 1630 at Shivneri Fort in District Pune in the present-day state of Maharashtra. He was born to a general Shahaji raje who served different Deccan Sultans over the course of his life and Jijabai, as known to be an influential and determined woman who was an embodiment of self-respect and virtue.
    • Founder of an Independent Maratha kingdom: Shivaji Maharaj was keen on expanding his father’s fiefdom of modern-day Pune into an independent Maratha state. He carved out an independent Maratha kingdom from various Deccan states in the 17th century. At the time of his death, he held around 300 forts over an area that stretched across the Konkan coast, from Surat to near Goa, and was overlooked by the strategic Western Ghats.
    • Contemporary kingdoms and power struggle: At this point of time, several Sultanates (mainly Bijapur, Golkonda and Ahmadnagar) and the Mughals were vying for the control of the Deccan. As Mughal power grew, these Sultanates would become tributaries to the Mughal Empire (while often continuing to bicker among themselves) with the rulers and ruling clans being given positions in the Mughal court.
    • Lifetime conflicts and fights for Swaraj: His conflict with the Adil Shahi Sultanate of Bijapur began when he was only 16. He would spend the rest of his life fighting various opponents, and in the process, laying the foundation for the Maratha Empire which would stretch across large parts of the Indian subcontinent and rule till the 19th Century.
    • Importance of forts in his times: Early in his life, he realised that the key to holding power in the Deccan (or for that matter, many places in India in that era) was to capture and hold important forts. Thus, his strategies would be centred around taking control of forts in strategic locations, often on hilltops. He also repaired and built new forts as his sphere of control increased.

    How is Shivaji Maharaj remembered?

    • An inspiration to fight against the colonial rule: Shivaji remained a Maratha folk legend until two centuries after his death. It was the British Raj and the subsequent anti-colonial movement that marked his increasing stature in history and as a pan Indian hero.
    • From a folk hero to a Pan India hero: Nationalist historians saw him as an example of an local Indian ruler who was able to successfully resist and defeat the powerful and oppressive “outsiders” (Muslim rulers, including both Mughals and the Deccan Sultans). Thus, Shivaji rose from being a folk hero to a nationalist icon, seen as a proto-nationalist himself.
    • Tales of his bravery and just rule used to infuse motivation: Tales of his bravery were told to galvanise a population that was enduring emasculation and injustices under its British overlords. Over the 19th and 20th centuries, the narrative around Shivaji Maharaj emphasised on both his military heroism and his just rule.

    Shivaji Maharaj

    Shivaji Maharaj and the Mughals

    • Meteoric rise: Shivaji Maharaj’s meteoric rise posed challenges to the suzerainty of the Mughals. His first direct encounter with the Mughals was during Aurangzeb’s Deccan campaigns of the 1650s. As Aurangzeb went North to fight for the Mughal throne, Shivaji Maharaj was able to seize further territory.
    • Swift and smart warfare tactics beyond understanding of the Mughals: His tactics against the Mughals were adapted to the specific nature of his force and the flabby Mughal armies. Using swift cavalry attacks, he would raid and pillage Mughal strongholds. While on the rare occasion he would engage in battle to actually capture and hold Mughal positions, most often, he would simply cause much menace, raid the treasury, and leave with the Mughals in terror and disarray.
    • Well know Seize of Surat: Famously, in 1664, he attacked the port of Surat (now in Gujarat) and plundered one of the richest and busiest commercial towns of Mughal India while the local governor hid in a nearby fort.
    • Posed a greatest challenge to Aurangzeb and subsequent treaty of Purandar: As the legend of Shivaji and the physical sphere of his influence grew, Aurangzeb sent a 100,000-strong, well-equipped army under Raja Jai Singh I to subdue him in 1665. After putting up a valiant fight, Shivaji was besieged in the Purandar hill fort.

    The chronology of the great escape

    • Taken to Agra after purandar treaty: He was taken to Aurangzeb’s court in Agra in 1666. He presented Aurangzeb with various gifts, but he felt slighted at the treatment he received in return, and made his displeasure clear in open court.
    • Kept under strict House arrest: Aurangzeb put him under house arrest in Agra. Far away from home and help, Shivaji realised he needed to escape to save himself and his territories. He began to plot a plan to return home and keep up his fight against the Mughals.
    • The perfect plan of escape: The story of Shivaji’s subsequent escape is now part of common lore. The popularly told story involves an elaborate plan, under which he began daily distribution of alms to brahmans. The alms would be sent from his home in Agra in large, covered baskets.
    • The final escape right under the nose of Mughals: After some time, the Mughal guards became lax about checking the contents of the baskets that daily left his house. One day, Shivaji slipped into one of the baskets, and put his young son, Sambhaji, in another basket. It was in these covered baskets that Shivaji and his son left Agra, right under the noses of the Mughals.
    • Smart and swift movement in disguise from the Mughal territory: From there, he would traverse across Mughal territory, living incognito until he reached the safer lands closer to home. Some versions of this story say that he took the disguise of a wandering ascetic while others say he had a number of different disguises. His exact path is not known, though folktales and songs memorialising Shivaji often mention different towns and places he crossed.
    • Embarrassed Aurangzeb regarded him as a king: Aurangzeb was livid and embarrassed. But he chose not to start an immediate conflict with Shivaji again. Instead, he offered Shivaji the title of Raja and guaranteed his authority in the Maratha lands as long as he acknowledged the supremacy of the Mughals and maintained truce.

    Shivaji Maharaj

    Coronation of Shivaji Maharaj to Chhatrapati and the ideal rule

    • By 1669, Shivaji had regrouped and raised an effective army. Using his old guerilla tactics, he would swiftly descend into static Mughal and Bijapuri strongholds, looting and pillaging the shocked Mughals.
    • During this time, Aurangzeb was occupied with Pathan revolts in the North-West corner of his Empire. Shivaji deftly regained his lost positions in the Konkan coast. In 1674, he crowned himself Chhatrapati, officially creating an independent Maratha kingdom.
    • The next six years were spent expanding his rule and forging new political norms, replacing the prevailing Indo-Persian court culture. He promoted the use of Marathi and Sanskrit in his courts and created an elaborate administrative system with a council of ministers known as “Ashta Pradhan.”

    Conclusion

    • Chhatrapati Shivaji Maharaj is not just a name or a person but to many he is an idea, a life and inspiration for today and tomorrow, which has no parallel in the past or the present.
    • Protection of the Swarajya and welfare of his subjects were the motives that pushed Shivaji Maharaj to escape from Agra. Comparing his love for his subjects with the political exigencies and manoeuvers of present-day politicians will be an injustice to the astuteness of Chhatrapati Shivaji Maharaj.

    Mains question

    Q. Chhatrapati Shivaji Maharaj is considered as the king of the people; Discuss how he is remembered today and what qualities make him stand tall and different from those of the past and present?

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  • North East as Gateway to Indo-Pacific Strategy

    Indo-Pacific

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    Context

    • India’s ‘Look East’ and ‘Act East’ policies have moved into the phase of Indo-Pacific policy and strategy. But what we in the national capital interpret as the ‘Indo-Pacific’ is different from the perceptions of this policy in North-eastern and eastern India.

    What is Indo-pacific?

    • The Indo-Pacific is geographic region interpreted differently by different countries.
    • For India, the geography of the Indo-Pacific stretches from the eastern coast of Africa to Oceania whereas, for US, it extends up to the west coast of India which is also the geographic boundary of the US Indo-Pacific command.

    Indo-Pacific

    Importance of North-East

    • Security of India: The Northeast which comprises seven ‘sisters’ or States and one ‘brother’, Sikkim, has been witnessing transformation as it heads towards better security conditions and development
    • Geography and Biodiversity: North-eastern Indian States are blessed with a wide range of physiographic and ecoclimatic conditions and the geographical ‘gateway’ for much of India’s endemic flora and fauna.
    • Siliguri corridor only connecting link: North-East is home to 3.8% of the national population and occupies about 8% of India’s total geographical area. Siliguri corridor, a narrow strip of land in West Bengal, popularly known as “chicken’s neck” connects this region to the rest of mainland India.

    Present condition of north east

    • Improved security: Security conditions have improved significantly since 2017. However, the core issues behind the insurgency have remained unresolved.
    • Serious non-traditional threats: A notable contrast in security assessments of the authorities and others came to the fore. The official perspective was that the pernicious phenomena of smuggling, drug trafficking, transnational border crime, insurgent activity, and the influx of refugees (from Myanmar) represented serious non-traditional threats.
    • Chinese hand in nefarious activities: China was viewed as a ‘constant player’ behind these nefarious activities. This has necessitated vigilance and strict action by the Assam Rifles and other security agencies.
    • Sensitive border management: The insensitive handling of those engaged in lawful exchanges with the neighbouring countries. A balanced view indicates that considerable scope exists for more effective and people-sensitive border management in the future.

    Development as priority in North East

    • Rising road infrastructure: The Northeast is on the right path to concentrate on economic development. More is awaited through improvement in roads linking north-eastern towns and job creation for thousands of graduates produced by local universities.
    • Hub of medical tourism: Manipur needs to be promoted as the hub of medical tourism for other Indian States and neighbours such as Myanmar.
    • Investment needs to increase: The State’s research and development facilities to leverage the region’s biodiversity should be expanded. Accelerated development requires increased investment by Indian corporates and foreign investors as well as better management.
    • Blueprint for economic development: Strategic and business community to contribute to crafting a concrete blueprint for leveraging opportunities relating to commerce, connectivity, and human capital development.

    Cultural diplomacy from North east

    • Showcasing the culture of north east: An ambitious endeavour by 75 artists from nine countries highlighted the region’s ‘unity in diversity’ through music, dance, drama, and cuisine.
    • Education, tourism and trade: Clearly, expanding the reach of cultural diplomacy and people-to-people cooperation through greater educational exchanges, tourism, and trade is desirable.
    • Regional cooperation through cultural exchange: Harsh Vardhan Shringla, former Foreign Secretary, aptly stressed that the “shared culture, history and mutual social threads that tie the region with India also an important component towards fostering regional cooperation”.

    Indo-Pacific

    Cultural dimension to Indo-Pacific

    • Geo-cultural dimension: At Kolkata, intellectuals and performers in the cultural domain from India, the U.S., Japan, Thailand, Sri Lanka, and Bangladesh reflected on the Indo-Pacific construct’s cultural dimensions. Moving beyond geopolitics and geo-economics, neighbors should focus on “the geo-cultural dimension” of the Indo-Pacific.
    • Expanding people to people cooperation: Diplomats from the region agree on the importance of expanded people-related cooperation which would lead to wider acceptance of the Indo-Pacific and consolidation of the Quad.

    Conclusion

    • While implementing India’s Indo-Pacific strategy, voices from Northeast and eastern India must be heard. Thus, beyond ‘Look East’ and ‘Act East’ lies ‘Think and Relate East’, especially within our own country.
  • India’s Central bank digital currency (CBDC) in detail

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    Context

    • The Reserve Bank of India (RBI) has launched the first pilot of the retail digital rupee, also known as e₹-R, on December 1, 2022. The digital token that represents legal tender will be issued in the same denominations as paper currency and coins. The RBI’s pilot on the digital rupee will test the robustness of the new system. Let’s understand it in detail.

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    The first pilot project of retail digital rupee

    • Allowed banks: Initially, only four banks- State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities have been allowed to offer e₹-R. The scope of the pilot will be increased gradually to include more banks, users and locations.
    • Transaction: People will get e₹-R from banks and will be able to make transactions via their digital wallets. The digital rupee can be stored on mobile phones or devices.

    What is a Central bank digital currency (CBDC)?

    • Like fiat currency in digital form: CBDC is a legal tender issued by the central bank in digital form. Like rupee notes or coins, which are in physical form. Like fiat currency, it can also be exchanged between people. Simply, put it’s just like rupee (₹) notes but in digital form (e₹). You can also exchange e₹ for physical currency notes.
    • Unlike fiat currency no need to have account: However, unlike fiat currency that’s usually stored in banks and hence their liability, CBDC is a liability on the RBI’s balance sheet. That’s why you don’t necessarily need to have a bank account to own a digital rupee.

    Why do we need CBDC?

    • Cost efficient management: CBDC will cut the cost related to physical cash management. India spent ₹4,984.80 crore on printing money in FY22 and ₹4,012.10 crore a year before that. These expenses are borne by people, businesses, banks and the RBI. e₹ cuts all kinds of printing, storage, transportation and replacement and settlement costs. Though the RBI will invest a significant amount in building CBDC infrastructure, subsequent marginal operating costs will be very low.
    • Boost to digital economy and financial inclusion: It’ll fulfil the higher cash requirement of the country. The government will be able to make money available in areas where it’s a challenge to provide physical cash. Also, it’ll boost India’s digital economy, enhance financial inclusion, and make the financial system efficient.
    • People will have money in uncertain times: Since e₹ is the central bank money, in any uncertain situation like COVID-19, it’ll save people’s savings. Banks only insure deposits up to Rs 5 lakh. In case of defaults, people could lose their savings.
    • Multiple saving and transaction options: e₹ will provide you with other options like e-wallets, mobile banking, and UPI to make payments.
    • Much safer payment option: e₹ is a safe central bank instrument, with direct access to the RBI money for payment and settlement. It is an electronic version of cash, whose main use case is retail

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    Will CBDC replace UPI?

    • Not expected to substitute but supplement payment option: The CBDC-based payment system is not expected to substitute other modes of existing payment options. It will supplement by providing another payment avenue to people.
    • India already has a sound payment system: UPI uses your money deposited with banks but with CBDC, the money becomes the liability of RBI India already has a sound payment system, with payment products like RTGS, NEFT and UPI, etc., coupled with an exponential increase in digital transactions.

    No interest on e₹? but why?

    • No interest on digital money: According to the RBI, if it starts paying interest on digital money, it could lead to a massive disintermediation in the financial system, in which banks will lose deposits, and thus hurt their credit creation capacity in the economy.
    • Rationale behind No interest on digital rupee: Banks may be compelled to increase deposit rates, which will increase their costs of funding and decrease net interest income. Ultimately, the cost will be passed on to borrowers.
    • CBDC will be attractive payment option without interest: If there is no interest, CBDC can still be attractive as a medium of payment, even while its attractiveness as a savings instrument diminishes. Also, banks would restrain themselves from distributing CBDCs if they find it as a threat to bank deposits, which can hamper credit flows and the adoption of CBDCs.

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    How will CBDC be different from crypto?

    • CBDC is Algorithm based unlike crypto mining: The central bank will be issuing CBDCs based on algorithm-driven processes, rather than mining through competitive reward methods. These algorithms will have energy efficiency and environmental friendliness as their core principles, unlike private crypto mining.
    • Less energy consumption unlike crypto: Therefore, issuance and management of CBDCs are expected to have much lesser energy consumption vis-à-vis more energy-intensive processes normally associated with the mining and distribution of private cryptocurrencies.
    • Legal consumer protection: Unlike private cryptos wherein any individual can compete to mine and create the cryptocurrency, only the central bank can issue the CBDC and can simply opt for conversion of the bank’s existing balances to CBDC balances. So, CBDCs will provide the public with the benefits of virtual currencies, while ensuring consumer protection by avoiding the damaging social and economic consequences of private virtual currencies.

    Why India needs a digital rupee?

    • Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
    • High currency in circulation: India has a fairly high currency-to-GDP ratio.
    • Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.

    Conclusion

    • e₹-R is a digital token that has real value like rupee notes or coins. CBDC will make transactions and currency exchange smoother, and it’ll boost financial inclusion. The RBI’s pilot on the digital rupee will test the robustness of the new system.

    Mains question

    Q. What is central bank digital currency? Why do we need CBDC? It is said that digital rupee is different from crypto currency. Discuss.

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