💥UPSC 2027,2028 Mentorship (April Batch) + Access XFactor Notes & Microthemes PDF

Search results for: “”

  • [Burning Issue] Coercive Population policy and related issues

    In recent years, there have been ongoing debates, campaigns, and demands for the implementation of coercive population control policies in India. Evidence shows no effectiveness of policy measures enforcing a two-child or one-child norm and instead highlights their adverse outcomes. The National Family Health Survey (NFHS) – 4 revealed that 24 states in the country have already achieved replacement level fertility of 2.1, which means that couples are increasingly choosing to have two children.

    India’s declining fertility can largely be attributed to key determinants like the increasing emphasis on women’s education and their participation in the labor force.

    Let us look at the future prospectus of population growth and related government policies and measures in India.

    What are the causes of Over Population in India?

    The two main common causes leading to overpopulation in India are:

    (1) The birth rate is still higher than the death rate. We have been successful in declining the death rates but the same cannot be said for birth rates.

    (2) The fertility rate due to the population policies and other measures has been falling but even then it is much higher compared to other countries.

    Various social issues which are leading to overpopulation

    • Early Marriage and Universal Marriage System: Even though the marriageable age of a girl is legally 18 years, the concept of early marriage still prevails. Getting married at a young age prolongs the child bearing age.
    • Poverty and Illiteracy: Impoverished families have this notion that more the number of members in the family, more will be the numbers to earn income. Some feel that more children are needed to look after them in their old age. Indian still lags behind the use of contraceptives and birth control methods and are not willing to discuss or are totally unaware about them.
    • Age old cultural norm: Sons are the bread earners of the families in India. This age old thought puts considerable pressure on the parents to produce children till a male child is born.
    • Illegal migration: Last but not the least, we cannot ignore the fact that illegal migration is continuously taking place from Bangladesh and Nepal is leading to increased population density.

    What are the effects of over-population?

    Some major impacts of the high population are as follows:

    Population Policy by Uttar Pradesh government

    Recently, the government of Uttar Pradesh released a “Population Policy” in which it stated its intention to bring the gross fertility rate in the State down from the existing 2.7 to 2.1 by 2026.

    What are the provisions in the Bill?

    • This draft law, titled the Uttar Pradesh Population (Control, Stabilization and Welfare) Bill, 2021, seeks to provide a series of incentives to families that adhere to a two-child norm.
    • The Bill also intends on disentitling families that breach the norm from benefits and subsidies.
    • It promises public servants who undergo sterilization and adopt a two-child norm several benefits.
    • The draft Bill also contains a list of punishments.
    • A person who breaches the two-child norm will be debarred from securing the benefit of any government-sponsored welfare scheme and will be disqualified from applying to any State government job.
    • Existing government employees who infringe the rule will be denied the benefit of promotion.
    • Transgressing individuals will be prohibited from contesting elections to local authorities and bodies.

    Issues with coercive population control policies

    With such types of coercive population policies, there come a number of issues associated with them. Let us look at some issues in context with India.

    (1) Counter-productive measure

    • International experience shows that any coercion to have a certain number of children is counter-productive and leads to demographic distortions.

    (2) Against international obligations

    • India is committed to its obligations under international law, including the principles contained in the International Conference on Population and Development Programme of Action, 1994.
    • Foremost in those principles was a pledge from nations that they would look beyond demographic targets and focus instead on guaranteeing a right to reproductive freedom.

    (3) Against the right to reproductive freedom and privacy

    • In Suchita Srivastava & Anr vs Chandigarh Administration (2009), the Court found that a woman’s freedom to make reproductive decisions is an integral facet of the right to personal liberty guaranteed by Article 21.
    • This ruling was endorsed by the Supreme Court’s nine-judge Bench verdict in K.S. Puttaswamy vs Union of India (2017).
    • The Constitution sees a person’s autonomy over her body as an extension of the right to privacy. U.P.’s draft law, if enacted, will grossly impinge on the right to reproductive freedom.
    • However, In Javed & Ors vs State of Haryana & Ors (2003), the Court upheld a law that disqualified persons with more than two children from contesting in local body elections.
    • But the present UP Bill is far more disproportionate; therefore, the judgment in Javed can no longer be seen as good law.
    • The UP government will likely argue that there is no violation of privacy here because any decision on sterilization would be voluntary. But, as we know, making welfare conditional is a hallmark of coercion.
    • Therefore, the proposed law will fall foul of a proportionality analysis.

    (4) Sex-selective practices and forced sterilizations

    • The Economic Survey of 2018 points out that ‘son meta preference’ – the desire to have a male child – has resulted in 21 million “unwanted girls” in India.
    • Imposing a two child norm will add to the burden on women, by way of sex selective practices and forced sterilizations.
    • In Devika Biswas vs Union of India (2016), the Court pointed to how these camps invariably have a disparate impact on minorities and other vulnerable groups.
    • This could result in a setback to population stabilization efforts, as it happened during the emergency period in mid-1970s

    (5) Violation of human rights

    • A population control policy is not only a gross violation of fundamental human rights but will also have the maximum impact on the poorest, weakest and most marginalized sections of a country.
    • The National Population Policy, 2000 had “voluntary and informed choice and consent of citizens while availing reproductive health care services, and continuation of the target-free approach in administering family planning services”.
    • A coercive population control measure would be in direct contradiction to the tenets of this policy.

    (6) Impact poor and marginalized people adversely

    • Disincentives through denial of benefits under subsidized food grains through the PDS will impact the poorest and most marginalized sections of the population and worsen their impoverishment.

    (7) High population is not always bad

    • A high population is not necessarily a bad thing for the economy.
    • Population controlling measures will result in:
      • There would simply not be enough people to work for the economy,
      • A large non-productive aging population to support and the government may not have enough resources to support pensions
      • This would lead to de-industrialization.

    (8) Factor of religion

    • Religious polarization makes population control an even more contentious issue in India.
    • The bogey of population explosion is often used (directly or indirectly) to target a particular minority in India. The population controlling measure will impact social harmony.

    China’s experience

    China’s infamous one-child-per-couple policy and the subsequent two-child policy in 2015, have had several unintended consequences ranging from forced sterilizations and abortions to the abandonment of girl children, falling birth rates, skewed sex ratios, a rapidly growing ageing population, and a shrinking workforce.

    What did we learn from our past experiences?

    • The implementation of a one-child or two-child policy law will not result in immediate population reduction.
    • Past trends in fertility and mortality from 1951 to 1981 have shaped the Indian population structure in such a way that there is a ‘bulge’ in the proportion of people in their prime reproductive age.
    • This group accounts for 53% of India’s population today. Even if this group were to produce fewer children compared to previous generations, there will still be an increase in the absolute number of people.
    • This pattern of growth is termed as “Population Momentum”. Approximately 70 percent of the total projected population increase today is due to this large young population in their childbearing years.
    • India with its large proportion of young persons will take some time before the results of declining fertility start showing explicitly.
    • The population of India in 1951 was 35 crore, but by 2011, it had increased to 121 crore. There have been few shortcomings.
      • Firstly, the NPP have a narrow perspective; give much importance to contraception and sterilization. The basic prerequisite of controlling population includes poverty alleviation, improving the standards of living and the spread of education.
      • Secondly, on national scale the policy was not publicized and failed to generate mass support in favor of population control.
      • Thirdly, we have insufficient infrastructure owing to the lack of trained staff, lack of adequate aptitude among the staff and limited use or misuse of the equipment for population control resulted in failure of the policy.
      • Lastly, the use of coercion during the Emergency (1976-77) caused a serious resentment among the masses. This made the very NPP itself very unpopular.

    Way forward

    • Increasing the welfare and status of women and girls, spread of education, increasing awareness for the use of contraceptives and family planning methods, sex education, encouraging male sterilization and spacing births, free distribution of contraceptives and condoms among the poor, encouraging female empowerment, more health care centers for the poor, to name a few, can play a major role in controlling population.
    • The government should raise budgetary allocations in order to ensure expanded contraceptive choices for delaying and spacing births and better access and quality of health care for young people.
    • Social Measures: Population outburst is considered to be a social problem and it is intensely rooted in the civilization. It is therefore necessary to make efforts to eliminate the social iniquities in the country.
    • Minimum age of Marriage: As fertility depends on the age of marriage therefore the minimum age of marriage should be raised. In India minimum age for marriage is 21 years for men and 18 years for women fixed by law. This law should be strongly implemented and people should also be made aware of this through promotion.
    • Raising the Status of Women: There are prevalent biases to women. They are restricted to house. They are still confined to rearing and bearing of children. So women should be given opportunities to develop socially and economically. Free education should be given to them.
    • Spread education: The spread of education changes the views of people. The educated men take mature decisions and prefer to delay marriage and adopt small family custom. Educated women are health mindful and avoid frequent pregnancies and thus help in lowering birth rate.
    • Adoption: is also effective way to curb population. Some parents do not have any child, despite expensive medical treatment. It is recommended that they should adopt orphan children. It will be helpful to orphan children and children to couples.
    • Social Security: is necessary for people. It is responsibility of government to include more and more people under-social security schemes. So that they do not depend upon others in the event of old age, sickness, unemployment with these facilities they will have no desire for more children.
    • Economic Measures: Government must devise policies for more employment opportunities and development of Agriculture and Industry. When their income is increased they would enhance their standard of living and accept small family norms.
    • Urbanization: This can reduce population increase. It is reported that people in urban areas have low birth rate than those living in rural areas.
  • Assam-Mizoram Boundary Dispute

    Five Assam police personnel were killed in an exchange of fire with the Mizoram Police after the protracted border row between the two northeastern States took a violent turn.

    Assam-Mizoram Boundary Dispute

    • At the heart of the dispute over the 165-km Assam-Mizoram boundary are two border demarcations that go back to the days of British colonial rule, and disagreement over which demarcation to follow.
    • British tea plantations surfaced in the Cachar plains – the Barak Valley that now comprises the districts of Cachar, Hailakandi and Karimganj — during the mid-19th century.
    • Their expansion led to problems with the Mizos whose home was the Lushai Hills.
    • In August 1875, the southern boundary of Cachar district was issued in the Assam Gazette.
    • The Mizos say this was the fifth time the British had drawn the boundary between the Lushai Hills and the Cachar plains, and the only time when it was done in consultation with Mizo chiefs.

    Creation of new states

    • But in 1933, the boundary between Lushai Hills and the then princely state of Manipur was demarcated – it said the Manipur boundary began from the trijunction of Lushai Hills, Cachar district of Assam and Manipur state.
    • The Mizos do not accept this demarcation, and point to the 1875 boundary which was drawn in consultation with their chiefs.
    • In the decades after Independence, states and UTs were carved out of Assam – Nagaland (1963), Arunachal Pradesh (UT 1972, formerly NEFA), Meghalaya (UT 1972), Mizoram (UT 1972).

    A matter of perception

    • Mizoram says Assam has been pushing its people 10-12 km inside their territory.
    • Mizoram’s official stand is that the boundary should be demarcated on the basis of notification in 1875 that distinguished the Lushai Hills (erstwhile district of Assam that became Mizoram) from the plains of Cachar.
    • The notification is based on the Bengal Eastern Frontier Regulation Act, 1873, which makes it obligatory for Indians beyond to possess a travel document to enter Mizoram.
    • Assam also has border disputes with Arunachal Pradesh, Meghalaya, and Nagaland.
  • Russia’s Nauka Module for ISS

    Pirs, a Russian module on the International Space Station (ISS) used as a docking port for spacecraft and as a door for cosmonauts to go out on spacewalks. In its place, Russia’s space agency Roscosmos will be attaching a significantly larger module called Nauka.

    What does Russia’s new Nauka module do?

    • Nauka, which is 42 feet long and weighs 20 tonnes, was supposed to be launched as early as 2007, as per the ISS’s original plan.
    • Nauka — meaning “science” in Russian — is the biggest space laboratory Russia has launched to date, and will primarily serve as a research facility.
    • It is also bringing to the ISS another oxygen generator, a spare bed, another toilet, and a robotic cargo crane built by the European Space Agency (ESA).
    • The new module was sent into orbit using a Proton rocket — the most powerful in Russia’s space inventory — on July 21 and will take eight days to reach the ISS.

    What kind of research goes on at the International Space Station?

    • A space station is essentially a large spacecraft that remains in low-earth orbit for extended periods of time.
    • It is like a large laboratory in space and allows astronauts to come aboard and stay for weeks or months to carry out experiments in microgravity.
    • For over 20 years since its launch, humans have continuously lived and carried out scientific investigations on the $150 billion ISS under microgravity conditions, being able to make breakthroughs in research not possible on Earth.

    Back2Basics: International Space Station (ISS)

    • The International Space Station, which launched its first piece in 1998, is a large spacecraft that orbits around the Earth and is home to the astronauts.
    • The ISS is currently the only active space station in the earth’s orbit.
    • The first crew on the space station arrived on November 2, 2000.
    • The space station is home to a minimum of six astronauts, with two bathrooms, a gymnasium, and a big bay window.
    • It is a joint project between five participating space agencies -NASA (USA), Roscosmos (Russia), JAXA (Japan), ESA (Europe), and CSA (Canada).
  • Thane Creek Flamingo Sanctuary proposed as Ramsar Site

    The Mumbai Metropolitan Region is likely to get its first Ramsar site at the Thane Creek Flamingo Sanctuary.

    Thane Creek Flamingo Sanctuary

    • The Maharashtra Government has declared the area along the western bank of Thane Creek as the “Thane Creek Flamingo Sanctuary” since 2015.
    • It is Maharashtra’s second marine sanctuary after the Malvan sanctuary.
    • It is recognized as an “Important Bird Area” by the Bombay Natural History Society.

    About Ramsar Convention

    • The Convention on Wetlands of International Importance (better known as the Ramsar Convention) is an international agreement promoting the conservation and wise use of wetlands.
    • It is the only global treaty to focus on a single ecosystem.
    • The convention was adopted in the Iranian city of Ramsar in 1971 and came into force in 1975.
    • Traditionally viewed as a wasteland or breeding ground of disease, wetlands actually provide fresh water and food and serve as nature’s shock absorber.
    • Wetlands, critical for biodiversity, are disappearing rapidly, with recent estimates showing that 64% or more of the world’s wetlands have vanished since 1900.
    • Major changes in land use for agriculture and grazing, water diversion for dams and canals, and infrastructure development are considered to be some of the main causes of loss and degradation of wetlands.

    What does one mean by Ramsar Site?

    • A Ramsar Site is a wetland area designated to be of international importance under the Ramsar Convention.
    • It provides the framework for national action and international cooperation for the conservation and wise use of wetlands and their resources.
  • [pib] Gold Reserves in India

    The Minister of Mines and Coal has provided useful information regarding gold reserves in India.

    Gold Reserves in India

    • As per National Mineral Inventory data, the total reserves/resources of gold ore (primary) in the country have been estimated at 501.83 million tonnes as of 2015.
    • Out of these, 17.22 million tonnes were placed under the reserves category and the remaining 484.61 million tonnes were under the remaining resources category.
    • In India, the largest resources of gold ore (primary) are located in Bihar (44%) followed by Rajasthan (25%), Karnataka (21%), West Bengal (3%), Andhra Pradesh (3% ), Jharkhand (2 %).
    • The remaining 2% resources of ore are located in Chhattisgarh, Madhya Pradesh, Kerala, Maharashtra, and Tamil Nadu.

    Who takes up their mapping?

    • Geological Survey of India (GSI) is actively engaged in geological mapping followed by mineral exploration (survey) for various mineral commodities including gold.
    • GSI aims to identify potential mineral-rich zones and establish resources.
    • Every year, as per the approved annual Field Season Program, GSI takes up mineral exploration projects in various parts of the country for augmenting mineral resources.
    • Recently, GoI has amended the MEMC Rules to allow auction of composite license at G4 level for deep-seated minerals including Gold.

    Answer this PYQ in the comment box:

    Consider the following statements:

    1. In India, State Governments do not have the power to auction non -coal mines.
    2. Andhra Pradesh and Jharkhand do not have goldmines.
    3. Rajasthan has iron ore mines.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 3 only

  • [pib] Exercise Cutlass Express 2021

    Indian Naval Ship Talwar is participating in Exercise Cutlass Express 2021, being conducted along the East Coast of Africa.

    Exercise Cutlass Express

    • The exercise is an annual maritime exercise conducted to promote national and regional maritime security in East Africa and the Western Indian Ocean.
    • Indian Navy is participating in the exercise in a ‘trainer role’.

    The 2021 edition of the exercise involves the participation of:

    • 12 Eastern African countries, US, UK, India
    • Various international organizations like International Maritime Organization (IMO), United Nations Office on Drugs and Crime (UNODC), Interpol, European Union Naval Force (EUNAVFOR), Critical Maritime Routes Indian Ocean (CRIMARIO), and EUCAP Somalia

    Focus of the exercise

    • The exercise focuses on East Africa’s coastal regions.
    • It is designed to assess and improve combined maritime law enforcement capacity, promote national and regional security and increase interoperability between the regional navies.
    • As part of the exercise, the Indian Navy, together with other partners, shall undertake the training of contingents from various participating countries in various fields across the spectrum of maritime security operations.

    Must read:

    [Prelims Spotlight] Defence Exercises

  • Getting India’s military jointness formula right

    Context

    The Chief of Defence Staff General Bipin Rawat’s recent description of the Indian Air Force (IAF) as a supporting arm and the IAF chief Air Chief Marshal R.K.S. Bhadauria’s rebuttal highlights turbulent journey marking the reorganisation process of the armed forces.

    Issues before IAF

    • The IAF is warning against splitting it into packets.
    • Reports suggest that counting even ageing aircraft, the IAF is 25% short on fighter squadrons.
    • A pan service shortage of about 400 pilots, almost 10% of their authorised strength, further aggravates this.
    • Therefore, the IAF has a point when it warns against splitting assets, for, there may be nothing much to split.

    Way forward

    • Confidence building: A common understanding of the nuances of military airpower is the key.
    • With the experience of operating almost every kind of aircraft the IAF operates, the naval leadership understands air power.
    • This applies to the Indian Army too, in its own way.
    • Confidence needs to be developed that rightly staffed apex joint organisations can draw up professional operational plans for air power.
    • Enhancing military education: Confidence building will need some effort in the short term towards enhancing professional military education though, at the staff level.
    • Analysis before implementation: Major reorganisations must strictly follow the sequence of written concepts, their refinement through consultation, simulation or table top war gaming, field evaluation and final analysis before implementation.
    • This would help address command and control, asset adequacy, individual service roles, operational planning under new circumstances and the adequacy of joint structures.
    • Who gets to lead what also matters.
    • The Western Command between the Indian Army and the IAF, the Northern Command with the Indian Army, Maritime Command with the Indian Navy and the Air Defence Command with the IAF may be an acceptable formula.

    Why jointness?

    • With dwindling budgets, a steadily deteriorating security situation and the march of technology, the armed forces understand the need to synergise.

    Challenges

    • Challenges in co-existence: Different services do not co-exist well where they are colocated.
    • Bitter fights over land, buildings, facilities, etc. harms optimal operational synergising.
    • Allocation challenge: Then there is the issue of giving each other the best, or of wanting to be with each other.
    • Lack of operational charter: The Andaman and Nicobar Command suffered from the lack of a substantial operational charter, and the services not positioning appropriate personnel or resources there.
    • Lack of interest in joint tenure: As a joint tenure did not benefit career, no one strove for it.
    • The U.S., when faced with the same problem, made joint tenures mandatory for promotions.

    Steps to be taken

    • Security strategy: We need a comprehensive National Security Strategy to guide the services develop capacities required in their respective domains.
    • Professional education: We need to transform professional education and inter-service employment to nurture genuine respect for others.
    • Mutual resolution of difference: The armed forces must resolve their differences among themselves, as the politicians or bureaucrats cannot do it.
    • Quality staff: Good quality staff, in adequate numbers, at apex joint organisations, will help to reassure individual services and those in the field that they are in safe hands.
    • Tailored approach: There is need for the acceptance of the fact that what works for other countries need not work for us.

    Conclusion

    We may need tailor-made solutions which may need more genuine thinking. For genuine military jointness, a genuine convergence of minds is critical.

  • Crack UPSC CAPF Assistant Commandant Exam In 10 Days || Exam’s Almost Here, Limited Time To Crack It || Join Immediately

    Crack UPSC CAPF Assistant Commandant Exam In 10 Days || Exam’s Almost Here, Limited Time To Crack It || Join Immediately

    Complete Coverage, Daily Practice, Revision, And Most Expected Questions || Link for FREE CAPF session at 9 pm below

    Dear aspirants,

    The UPSC CAPF Assistant Commandant exam is on August 8. There is not much time but you can still increase your score by over 30 marks and crack the exam in 10 DAYS! Join OFFICERS CLUB by Rohit Sir immediately.

    Here’s what you will get in the Officers club:

    1. 10 Days intensive session with complete coverage.
    2. 18 months Current Affairs. 
    3. Daily Habitat discussions and doubt sessions (chat-based).
    4. Video lectures on important topics.
    5. Google meet session.
    6. 10 Essays, 5 Precis, 4 Notice.
    7. Complete revision

    And more…

    Don’t let this opportunity slide away! Clear the exam in ONE-SHOT!

    Rohit sir is also taking FREE session today at 9:00 pm.

    What do you have to do?

    1. Join Habitat For Absolutely Free Sessions!
    2. Read The Discussions Happening On The General Page.
    3. Click On The Blue Box To Join The Discussion.
    4. Participate, Ask Questions, Engage, And Learn!

    Here is a list of topics and discussions you can join immediately:

    Revise Economics for IAS PrelimsRavi Ranjan11:00 am
    Essay WritingAnand Prakash12:30 pm
    Science and TechDr. Keerti1:00 pm
    Samadhan CSATRavi Ranjan2:00 pm
    UPSC EPFORohit Yadav3:00 pm
    Chat pe News: Current AffairsAnjum Sharma4:30 pm
    Polity Laxmikant Amoghavarsha5:30 pm
    Indian society and Social IssuesSiddharth 6:00 pm
    Samvad: Indian AgricultureRadhika Didwania7:30 pm
    Prelims HeistParth Verma8:30 pm
    Officer club for CAPF AC Rohit Yadav9:00 pm
    Environment MCQsIshika9:30 pm

    And many more…

    Whatever you need, we have it here.

    How to join a discussion?

    After you have joined/registered on Habitat for free, go to the General club. Click on the blue box of the session you want to attend.

  • Score 120+ In UPSC CSAT For Absolutely FREE || Learn The Tricks Of Cracking CSAT With Ravi Sir For No Charge! | 2 pm

    Dear aspirants,

    Be extra-ready for UPSC CSAT with Ravi Sir and smash the exam with a score of 140+ Learn all the tips, tricks, and techniques of scoring high in CSAT for absolutely FREE!

    Join now and you will get:

    1. Daily CSAT practice session.
    2. Tricks to solve problems accurately.
    3. Time-management techniques.
    4. Tips to improve your score.
    5. Detailed analysis of CSAT paper.

    And more…

    Prelims is just around the corner. Grab this opportunity to crack CSAT for absolutely Free!

    Parth sir’s session starts at 2:00 pm

    What do you have to do?

    1. Join Habitat For Absolutely Free Sessions!
    2. Read The Discussions Happening On The General Page.
    3. Click On The Blue Box To Join The Discussion.
    4. Participate, Ask Questions, Engage, And Learn!

    Don’t Miss Out On The Questions That May Help You Succeed!

    Here is a list of topics and discussions you can join immediately:

    Revise Economics for IAS PrelimsRavi Ranjan11:00 am
    Essay WritingAnand Prakash12:30 pm
    Science and TechDr. Keerti1:00 pm
    Samadhan CSATRavi Ranjan2:00 pm
    UPSC EPFORohit Yadav3:00 pm
    Chat pe News: Current AffairsAnjum Sharma4:30 pm
    Polity Laxmikant Amoghavarsha5:30 pm
    Indian society and Social IssuesSiddharth 6:00 pm
    Abhyaas: Answer WritingGarima7:00 pm
    Samvad: Indian AgricultureRadhika Didwania7:30 pm
    Prelims HeistParth Verma8:30 pm
    Parakram Answer Writing sessionRohit Yadav9:30 pm
    Post dinner MCQs for IAS prelimsAmitB10:15 pm

    And many more…

    Whatever you need, we have it here.

    How to join a discussion?

    After you have joined/registered on Habitat for free, go to the General club. Click on the blue box of the session you want to attend.

  • Implications of EU’s new GHG emissions law for Indian industry

    Context

    On July 14, the European Union introduced new legislation, Fit for 55, to cut its GHG emissions by 55 per cent by 2030 and to net-zero by 2050.

    Implications of Fit for 55

    • Legal backing: It turns the EU’s announcement into law, protecting it from the winds of political change.
    • Opportunity for India: It opens new markets for Indian industry, for example for electric vehicles.
    • CBAM: However, it also introduces a potentially adverse policy called the carbon border adjustment mechanism (CBAM).
    • CBAM is meant to discourage consumers from buying carbon-intensive products and encourage producers to invest in cleaner technologies.

    What is CBAM?

    • The EU has had a carbon emission trading system since 2005.
    • With Fit for 55, the EU’s carbon price is likely to go up.
    • High carbon price will make the EU’s domestic products more expensive than imports from countries that do not have such rules.
    • The new CBAM is meant to level the playing field between domestic and imported products.
    • CBAM will require foreign producers to pay for the carbon emitted while manufacturing their products.
    • The adjustment will be applied to energy-intensive products that are widely traded by the EU, such as iron and steel, aluminium, cement, fertiliser, and electricity.

    Why CBAM is a cause for concern for India?

    • India is Europe’s third-largest trading partner, and it does not have its own carbon tax or cap.
    • So, CBAM should be a cause for concern for it.
    • A UNCTAD study predicts that India will lose $1-1.7 billion in exports of energy-intensive products such as steel and aluminium.
    • India’s goods trade with the EU was $74 billion in 2020.

    Way forward for Indian Industry

    • Clean technology partnerships: Indian Industry should enter clean technology partnerships with European industry.
    • Invest in renewables:  Indian companies should invest in more renewable electricity and energy efficiency.
    • Incentivise low-carbon choices: They can adopt science-based targets for emission reduction and internal carbon pricing to incentivise low-carbon choices.
    • Schemes and Government financing: The government can extend the perform-achieve-trade scheme to more industries and provide finance to MSMEs to upgrade to clean technologies.
    • WRI India’s analysis shows that carbon dioxide emissions from the iron and steel industry can be reduced from 900 million tonnes to 500 million tonnes in 2035 through greater electrification, green hydrogen, energy efficiency, and material efficiency.
    • Diversify export: India can try to diversify its exports to other markets and products.

    Consider the question “What is carbon border adjustment mechanism (CBAM) introduced by the EU? What are its implications for Indian industry?” 

    Conclusion

    At present, the CBAM may seem obstructionist. But over the long-term, it can provide regulatory certainty to industry by harmonising carbon prices, and Indian industry can position itself as a strong player in the trade landscape of the future.


    Back2Basics: UNCTAD

    • UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly in 1964.
    • Its headquarters are located in Geneva, Switzerland, and have offices in New York and Addis Ababa.
    • UNCTAD is part of the UN Secretariat.
    • IT report to the UN General Assembly and the Economic and Social Council but have own membership, leadership, and budget.
    • It is also part of the United Nations Development Group.

More posts