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  • Rohingya Deportation case

    The article highlights the issues with the order passed by the Supreme Court allowing the deportation of Rohingya refugees.

    Context

    • Recently, in its order in Mohammad Salimullah v. Union of India, the Supreme Court rejected an application to stay the deportation of Rohingya refugees to Myanmar.

    Principle of non-refoulement

    • The Supreme Court noted the petitioners’ reliance on a judgment of the International Court of Justice (ICJ) dated January 23, 2020, which recorded the genocidal conditions that resulted in 7.75 lakh Rohingyas being forced to take refuge in Bangladesh and India.
    • The Supreme Court relied on the word of the government that the principle of non-refoulement, or forcible repatriation to a place where the refugee’s life is in danger, applies only to signatories to the UN’s Refugee Convention of 1951 or its 1967 Protocol.
    • It must be stated that a UN Special Rapporteur was not heard, as the Court felt that serious objections had been raised to her intervention.
    • The Supreme Court accepted that the right not to be deported flows not from the right to life and liberty under Article 21, which applies to all human beings, but from the right to reside and settle in India under Article 19(1)(g), which applies to citizens alone.

    Why the judgement needs reconsideration

    1) India has recognised genocide as an international crime

    • India is a signatory to the Convention for the Prevention and Punishment of the Crime of Genocide (the Genocide Convention, 1948),
    • Acceding to the Convention in 1959, India has recognised genocide as an international crime, and that the principles of the Convention are “therefore already part of common law of India”.
    •  India has also ratified the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD), the International Covenant on Civil and Political Rights (ICCPR) have a bearing on non-refoulement.
    • Article 6(1) of the ICCPR, which mirrors Article 21 of our Constitution.
    • A number of other UN conventions particularly those dealing with the rights of women (CEDAW) and children (CRC) also have a non-refoulment element in it and both of which have been declared by the Supreme Court to be part of our domestic legal framework.

    2) Prevention of genocide

    • The leitmotif of the Genocide Convention is prevention.
    • Prevention is also central to Article I, under which the contracting parties confirm that genocide is a crime under international law, “which they undertake to prevent and to punish”.

    3) Preemptory norm

    • It is increasingly accepted in public international law, that non-refoulement and other protections emanating from the Genocide Convention, are peremptory norms that apply to state parties as well as non-parties.
    • That non-refoulement is jus cogens, a norm from which there can be no derogation whatsoever. I
    • At least three high courts (Gujarat in 1998, Delhi in 2015, and Calcutta in 2019) have held that non-refoulement is part of the right to life and liberty protected by Article 21 of our Constitution.

    What should the Supreme Court do

    • There are two possible solutions.
    • The first is that in its interim order, the Court specifies that the Rohingya refugees may not be deported unless “the procedure prescribed for such deportation is followed”.
    • It is a long-held principle of Indian jurisprudence that the word “procedure” means “due process”, or a procedure that is just, fair, and reasonable.
    • The Supreme Court can, thus, suo motu clarify that due process requires that they not be deported as long as there exists a reasonable threat of persecution in Myanmar.
    • Alternately, since the order in question is an interim order, the Supreme Court could swiftly hear the main petition on its merits, and clarify the law on non-refoulement and Article 21. 

    Conclusion

    The order on the deportation of Rohingya refugees needs reconsideration by the Supreme Court considering the India’s treaty obligations on the genocide.

  • What the US’s recognition of killings of Armenians as genocide mean

    What is genocide

    • According to Article II of the UN Convention on Genocide of December 1948, genocide has been described as carrying out acts intended “to destroy, in whole or in part, a national, ethnic, racial or religious group”.

    Why Armenians were targeted

    • In a way, the Armenians were victims of the great power contests of the late 19th and early 20th centuries.
    • The resentment started building up after the Russo-Turkish war of 1877-78 in which the Turks lost territories.
    • In the Treaty of Berlin, big powers dictated terms to the Ottomans, including putting pressure on Sultan Abdülhamid II to initiate reforms “in the provinces inhabited by Armenians, and to guarantee their security against the Circassians and Kurds.”
    • The Sultan saw this as a sign of strengthening ties between the Armenians and other rival countries, especially Russia.
    • Post the treaty, there were a series of attacks on Armenians by Turkish and Kurdish militias.
    • In 1908, the Young Turks wrested control from the Sultan and promised to restore imperial glory.
    • Under the Turks, the empire became more and “Turkik” and persecution against the ethnic minorities picked up.
    • In October 1914, Turkey joined the First World War on the side of Germany.
    • In the Caucasus, they fought the Russians, their primary geopolitical rival.
    • But the Ottomans suffered a catastrophic defeat in the Battle of Sarikamish by the Russians in January 1915.
    • The Turks blamed the defeat on Armenian “treachery”.

    How the killings took place

    • As the War was still waging, the Ottomans feared that Armenians in eastern Anatolia would join the Russians if they advanced into Ottoman territories.
    • First, Armenians in the Ottoman Army were executed.
    • On April 24, the Ottoman government arrested about 250 Armenian intellectuals and community leaders. Most of them were later executed.
    • The Ottoman government passed legislation to deport anyone who is a security risk.
    • Then they moved Armenians, including children, en masse to the Syrian Desert. That was a march of death.
    • Before the First World War broke out in 1914, there were 2 million Armenians in the Ottoman Empire.
    • According to a study by the University of Minnesota’s Center for Holocaust and Genocide Studies, in 1922, four years after the War, the Armenian population in the region was about 387,800.
    • This has led historians to believe that up to 1.5 million Armenians were killed during the course of the War.

    What is Turkey’s response

    • Turkey has acknowledged that atrocities were committed against Armenians, but denies it was a genocide which comes with legal implications.
    • Turkey also challenges the estimates that 1.5 million were killed.
    • The Turkish Foreign Ministry has issued a strong statement to Mr. Biden’s announcement saying it doesn’t not have “a scholarly and legal basis, nor is it supported by any evidence”.
    • Turkey has called on the U.S. President to correct the mistake of recognition as genocide.

  • [pib] PM launches distribution of e-property cards under SWAMITVA scheme

    e-Property cards under SWAMITVA scheme

    • The Prime Minister launched the distribution of e-property cards under the SWAMITVA scheme on National Panchayati Raj Day (24 April).
    • 4.09 lakh property owners were given their e-property cards on this occasion, which also marked the rolling out of the SVAMITVA scheme for implementation across the country.
    • Under the scheme, the entire village properties are surveyed by drone and property card are distributed to the owners.
    • The Scheme has infused a new confidence in the villages  as property documents remove uncertainty and reduce the chances of property disputes while protecting the poor from exploitation and corruption.
    • This eases credit possibility also.

    About SWAMITVA Scheme

    • SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas) was launched by Prime Minister on 24th April 2020.
    • It is a Central Sector Scheme to promote a socio-economically empowered and self-reliant rural India.
    • The Scheme has the potential to transform rural India using modern technical tools of mapping and surveying.
    • It paves the way for using the property as a financial asset by villagers for availing loans and other financial benefits.
    • The Scheme will cover around 6.62 Lakh villages of the entire country during 2021-2025.

  • Civil service reforms in India

    The article highlights the role bureaucracy can play in the development of the country and suggests the ways to deal with the challenges faced by the bureaucracy.

    Background of the PSU’s

    • In the 1950s and ’60s, the private sector had neither the capability to raise capital to take the country on the path of industrialisation.
    • The state had to take on the role of industrialising the country by establishing PSUs.
    • The civil services became the natural choice for establishing and managing these units.
    • They delivered substantially, if not fully.
    • Even after privatisation, the bureaucracy would be required for the transition of PSUs from the public to the private sector.

    Need for structural transformation agenda

    • The goal of making India a $5-trillion economy needs a coherent structural transformation agenda and extraordinary implementation capacity.

    1) Dealing with crony capitalisms

    • Since Independence, the political survival of Indian regimes has required pleasing a powerful land-owning class and a highly concentrated set of industrial capitalists.
    • The elites of business houses and land owners share no all-encompassing development agenda.
    • Can the present regime find a way out of this conundrum?

    2) Implementing the development agenda

    • While the agenda is an outcome of political choices, the thinking goes that market mechanisms should be used as far as possible to make economic choices.
    • This argument is at the heart of the privatisation of state assets.
    • However, markets operate well only when they are supported by other kinds of social networks, which include non-contractual elements like trust.
    • Particularly in industrial transformation, there must be an essential complementarity of state structures and market exchange.
    • Only a competent bureaucracy can provide this.
    • It is for this reason that Max Weber argued that the operation of large-scale capitalist enterprise depended upon the kind of order that only a modern bureaucratic state can provide.

    3) Removing the constraints on the bureaucracy

    • The political and permanent executives had to work as a team through mutual respect for each other’s roles as defined in the Constitution.
    • Every deviation from these ideals has lowered the capacity of the state to deliver.
    • This is the result of electoral politics where the essence of the state action is the exchange relationships between the incumbent governments and its supporters.
    • All this is achieved by undermining the impartiality of the bureaucracy in implementing rules and giving opinions frankly.
    • The power to transfer is weaponised to bring the bureaucrats to heel and it works because authority sits with the position not the person.
    • The pressure on officials to behave contrary to the ostensible purpose of the department undermines to a great extent the ability of the state to promote development.
    • If privatisation is to work, then the corruption-transfer mechanism and its effects on the bureaucracy has to go.

    4) Corporate coherence

    • Corporate coherence is the ability of the bureaucracy internally to resist the invisible hands of personal maximisation by undercutting the formal organisational structure through informal networks.
    • If this goes too far, then everything becomes open to sale and the state becomes predatory.

    Consider the question “What are the issues facing civil services in India? Suggest the ways to deal with these issues.”

    Conclusion

    We need to fight the increasing tendency to grab public resources and restore to the bureaucracy its autonomy of action as envisaged in the Constitution by de-weaponising transfers.

  • Polity Titbits: Important Amendments in the Indian Constitution

     

    26th Apr 2021

    First Amendment Act, 1951

    • Empowered the state to make special provisions for the advancement of socially and economically backward classes.
    • Provided for the saving of laws providing for the acquisition of estates, etc.
    • Added Ninth Schedule to protect the land reforms and other laws included in it from the judicial review. After Article 31, Articles 31A and 31B were inserted.

    The Constitution (Seventh Amendment) Act, 1956

    • The Seventh Amendment brought about the most comprehensive changes so far in the Constitution. This amendment was designed to implement the State Reorganisation Act.
    • The Second and Seventh schedules were substantially amended for the purpose of the States Reorganization Act.

    Constitutional (10th Amendment) Act, 1961

    • The Tenth Amendment integrates the areas of Free Dadra and Nagar Haveli with the Union of India and provides for their administration under the regulation of making powers of the President.

    Constitutional (13th Amendment) Act,1963

    • Gave the status of a state to Nagaland and made special provisions for it.

    The Constitution (24th Amendment) Act, 1971

    • It amended Article 13 and 368 with a view to removing all possible doubts regarding the power of Parliament to amend the Constitution and procedure thereof.
    • It gets over the Golak Nath ruling and asserts the power of Parliament, denied to in the Golak Nath, to amend Fundamental Rights.

    The Constitution (Twenty-fifth) Amendment Act, 1971

    • The 25th amendment of the Constitution in 1971 added a new clause, Article 31C to the Constitution. Up to 1971, the position was that Fundamental Rights prevailed over the Directive Principles of State Policy and that a law enacted to implement a Directive Principle could not be valid if it conflicted with a Fundamental Right.
    • Article 31C sought to change this relationship to some extent by conferring primacy on Articles 39(b) and 39(c) over Articles 14, 19 and 31.

    Twenty-Sixth Amendment Act, 1971

    • Abolished the privy purses and privileges of the former rulers of princely states.

    The Constitution (Thirty-fourth Amendment) Act, 1974

    • By this amendment twenty State Acts concerning land ceiling and land tenure reforms were added to the Ninth Schedule to the Constitution.

    The Constitution (Thirty-eight Amendment) Act, 1975 

    • Made the declaration of emergency by the President non-justiciable.
    • Made the promulgation of ordinances by the President, governors and administrators of Union territories non-justiciable.
    • Empowered the President to declare different proclamations of national emergency on different grounds simultaneously

    The Constitution (42nd Amendment) Act, 1976

    • The Amendment was meant to enhance enormously the strength of the Government. The major Amendments made in the Constitution by the 42nd Amendment Act are: Preamble The characterization of India as ‘Sovereign Democratic Republic’ has been changed to ‘Sovereign Socialist Secular Democratic Republic’.
    • The words ‘Unity of the nation’ have been changed to ‘Unity and integrity of the nation’.
    • Parliament and State Legislatures: The life of the Lok Sabha and State Legislative Assemblies was extended from 5 to 6 years.
    • Executive: It amended Article 74 to State explicitly that the President shall act in accordance with the advice of the Council of Ministers in the discharge of his functions.
    • Judiciary: The 42nd Amendment Act inserted Article 32A in order to deny the Supreme Court the power to consider the Constitutional validity of the State law. Another new provision, Article 131A, gave the Supreme Court an exclusive jurisdiction to determine question relating to the Constitutional validity of a central laws. Article 144A and Article 128A, the creatures
      of the Constitutional Amendment Act made further innovation in the area of judicial review of the Constitutionality of legislation. Under Article 144A, the minimum number of judges of the Supreme Court to decide a question of  Constitutional validity of a Central or State law was fixed as at least seven and further, this required two-thirds majority of the judges sitting declare law as unconstitutional. While the power  of the High Court to enforce Fundamental Rights remained untouched, several restrictions were imposed on its power to issue writs ‘for any other purpose’.
    • Federalism: The Act added Article 257A in the Constitution to enable the Centre to deploy any armed force of the Union, or any other force under its control for dealing with any grave situation of law and order in any State.
    • Fundamental Rights and Directive Principles: A major change that was made by42nd Constitutional Amendment was to give primacy to all Directive Principles over the Fundamental Rights contained in Articles 14, 19 or 31.
    • The 42nd Constitutional Amendment added a few more Directive Principles – free legal aid, participations of workers in the management of industries, protection for environment and protection of forests and wildlife of the country.
    • Fundamental Duties: The 42nd Amendment Act inserted Article 51-A to create a new part called IV-A in the Constitution, which prescribed the Fundamental Duties to the citizens.
    • Emergency: Prior to the 42nd Amendment Act, the President could declare an emergency under Article 352 throughout the country and not in a part of the country alone. The Act authorized the President to proclaim emergency in any part of the country.

    The Constitution (44th Amendment) Act, 1978

    • It reduced the life of Lok Sabha and State Legislative Assemblies again to five years and thus restore the status quo ante.
    • It cancelled 39th Amendment which had deprived the Supreme Court of its jurisdiction to decide disputes concerning election of the President and the Vice-President
    • A new provision was added to Article 74(1) saying that the President could require the council of ministers to reconsider its advice to him, either generally or otherwise and the President should Act in accordance with the advice tendered after such re-consideration. Article 257A was Omitted
    • It has been provided that an Emergency can be proclaimed only on the basis of written advice tendered to the President by the Cabinet.
    • Right to Property has been taken out from the list of Fundamental Rights and has been declared a legal right.

    The Constitution (Fifty-first Amendment) Act, 1984

    • The Amendment effectuates some changes in Articles 330 and 332 with a view to provide for reservation of seats in the Lok Sabha for Scheduled Tribes in Meghalaya, Aruncahal Pradesh and Mizoram, as well as in the Legislative Assemblies of Nagaland and Meghalaya.

    The Constitution (52nd Amendment) Act, 1985

    • The amendment is designed to prevent the scourge of defection of Members of Parliament and State Legislatures from one political party to another.

     The Constitution (61st Amendment) Act, 1989

    • The 61st Amendment reduces the voting age from 21 years to 18 years for the Lok Sabha and Assembly election.

    The Constitution (Sixty-fifth Amendment) Act, 1990

    • Article 338 of the Constitution has been amended for the Constitution of a National Commission for Scheduled Castes and Scheduled Tribes consisting of a chairperson, vice-chairperson and five other members who shall be appointed by the President by warrant under his hand and seal.

    The Constitution (Sixty-ninth Amendment) Act, 1991

    • The Amendment Act was to grant Statehood to Delhi as ‘National Capital Territory of Delhi’. It also provides a 70 member assembly and a 7 member Council of Ministers for Delhi.

     The Constitution (73rd Amendment) Act, 1992

    • April 20,1993 as it got rectification by the State legislatures and was assented to by the President of India. After notification, the Panchayati Raj Institutions have now got Constitutional legitimacy.
    • After part VIII of the Constitution, a separate part IX has been added to the Constitution with the addition in Article 243A and fresh Schedule called Eleventh Schedule enumerating the powers and functions of Panchayti Raj Institutions.
    • The Act provides for Gram Sabha, a three-tier model of Panchayati Raj, reservation of seats for SCs and STs in proportion to their population and one-third reservation of seats for women.

    The Constitution (74th Amendment) Act, 1992

    • The Act provides constitutional status to Urban Local Bodies. After part VIII of the Constitution, a separate part IXA has been added to the Constitution with the addition in Article 243A and a fresh schedule called Twelfth schedule enumerating the powers and functions of urban local bodies has been incorporated.
    • The Act provides Municipal Panchayat, Municipal Council and Municipal Corporation, reservation of seats for SCs and STs in proportion to their population and one-third reservation of seats for women

    The Constitution (76th Amendment) Act, 1994

    • This Amendment Act raises the reservation quota of government jobs and seats for admission in the educational institutions in favor of socially and educationally backward classes to 69 per cent in Tamil Nadu.
    • Further, the Amendment Act has been included in the Ninth Schedule of the Constitution to exempt it from the purview of judicial scrutiny

    The Constitution (Seventy-seventh Amendment) Act, 1995

    • This Amendment has added a new clause (4-a) to Article 16 of the Constitution which empowers the State to make any provisions for reservation in promotions in Government jobs in favour of SCs and STs, if it is of opinion that they are inadequately represented in the services under the State.
    • This has been done to nullify the effect of the Supreme Court Judgment in the Mandal Commission Case (Indra Sawhney vs. Union of India) in which the Court has held that reservation in promotions cannot be made.

    The Constitution (80th Amendment) Act, 2000

    • Based on the recommendations of the Tenth Finance Commission, an alternative scheme for sharing taxes between the Union and the State has been enacted by the Constitution (Eightieth Amendment) Act, 2000.
    • Under the new scheme of devolution of revenue between Union and the States, 26 per cent out of gross proceeds of Union taxes and duties is to be assigned to the States in lieu of their existing share in the income-tax, excise duties special excise duties and grants in lieu of tax on railway passenger fares. 

    The Constitution (85th Amendment) Act, 2001

    • This Act amended Article 16 (4A) of the Constitution to provide for consequential seniority in the case of promotion by virtue of rule of reservation for Government servants belonging to the Scheduled Castes and the Scheduled Tribes.

    The Constitution (86th Amendment) Act, 2002

    • With a view to making right to free and compulsory education a fundamental right, the Act inserts a new Article, namely, Article 21A conferring on all children in the age group of 6 to 14 years the right to free and compulsory education.
    • The Act amends in Part-III, Part –IV and Part-IV(A) of the Constitution.

    The Constitution (89th Amendment) Act, 2003

    • The Act adds Article 338A and provides for the creation of National Commission for Scheduled Tribes.

     The Constitution (90th Amendment) Act, 2003

    • The Act amends Article 332 and adds section (6) regarding representation in the Bodo Territorial Areas District in the State of Assam.

    The Constitution (Ninety-one Amendment) Act,2003

    • The Act makes provisions for limiting the size of the Council of Ministers at the Center and in the States and gives teeth to debar a defector from holding any remunerative political post for the remaining tenure of the legislature unless reelected.

    The Constitution (Ninety- third Amendment) Act, 2005

    • Providing reservation for the socially and educationally backward classes, besides the Schedules Castes and the Scheduled Tribes, in private unaided educational institutions.

    The Constitution (97th Amendment) Act, 2012

    • In Part IIIof the constitution, after the words “or unions” the words “Cooperative Societies” was added.
    • In Part IVa new Article 43Bwas inserted, which says: The state shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of the co-operative societies”.
    • After Part IXAof the constitution, a Part IXBwas inserted to accommodate state vs centre roles.

    The Constitution (99th Amendment) Act, 2014

    • The National Judicial Appointments Commission (NJAC) was established by the Union government of India by amending the constitution of India through the 99th Constitutional Amendment Act, 201

    The Constitution (100th Amendment) Act, 2015

    • Constitution (100th Amendment) Act 2015 ratified the land boundary agreement between India and Bangladesh.
    • The act amended the 1st schedule of the constitution to exchange the disputed territories occupied by both the nations in accordance with the 1974 bilateral Land Boundary Agreement.
    • India received 51 Bangladeshi enclaves (covering 7,110 acres) in the Indian mainland, while Bangladesh received 111 Indian enclaves (covering 17,160 acres) in the Bangladeshi mainland

    The Constitution (101st Amendment) Act, 2017

    • Introduced the Goods and Services Tax.

    The Constitution (102nd Amendment) Act, 2018

    • Constitutional status to National Commission for Backward Classes

    The Constitution (103rd Amendment) Act, 2019

    • A maximum of 10% Reservation for Economically Weaker Sections (EWSs) of citizens of classes other than the classes mentioned in clauses (4) and (5) of Article 15, i.e. Classes other than socially and educationally backward classes of citizens or the Scheduled Castes and the Scheduled Tribes.
    • Inserted Clause [6] under Article 15 as well as Inserted Clause [6] under Article 16.

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  • Amid concerns in India and Brazil, the unused vaccine stockpile in US

    Issue of diverting the vaccine stock to India

    • Epidemiologists to industry leaders are urging the Biden administration to release the reserve to countries like India and Brazil, given the assertion that the doses won’t be used in the US.
    • According to Brown University School of Public Health Ashish Jha, the US is “sitting on 35-40 million doses of AstraZeneca vaccine Americans will never use”.
    • In early April, US chief medical adviser Anthony Fauci said the US will likely not need the AstraZeneca shot. 
    • The AstraZeneca vaccine has not been granted Emergency Use Authorization by the US Federal Drug Administration (FDA).
    • With documented cases of blood clots in younger women in Europe correlated with the vaccine, FDA authorisation may be further delayed.

    What has the US said in response

    • Co-ordinator of the US Covid-19 taskforce that the Quad partnership and team is providing assistance across government to the country.
    •  He also stated that as their confidence around our supply increases, we will explore the option of exporting the vaccines.

    Vaccine inequality

    • According to Bloomberg’s Vaccine Tracker, highest-income countries are vaccinating at a pace 25 times faster than the lowest ones.
    • The US has 22.9% of the world’s vaccines but only 4.3% of the world’s population.
    • China has 21.9% and 18.2% respectively, and India 13.8% and 17.7%, according to the tracker.
    • Almost half of all vaccines have gone to 16% of the world’s population.
    • The Washington Post reported that the world’s poorest 92 countries may not be able to vaccinate even 60% of their population for another three years.
    • India has vaccinated 8% per cent of the population with one dose and 1% with two. Brazil has vaccinated less than 12% with one.

    Impact on vaccination in African nations

    • India’s stalled vaccine exports have domino effects on the rollouts in African nations and other developing countries, as Serum’s productions were fuelling efforts globally before India’s second wave.

  • Cybersecurity norms for payment services

    What prompted RBI to take such step

    • Following a series of data breaches faced by operators including Mobikwik and payment aggregator JusPay, the Reserve Bank of India (RBI) will soon issue cybersecurity norms for payment service providers (PSPs).
    • On cyber frauds, Reserve Bank of India has issued very recently basic guidelines on cyber hygiene and cybersecurity for banks and certain NBFCs,
    • The standards for fintech-driven payment services providers will be similar to these cyber hygiene norms issued recently.
    • the critical challenge for regulators would be to speed up the absorption of fintech without undermining the financial system’s integrity or stability.

    UPI dominated by limited players

    •  There are not too many payment systems in India and the number of players is limited.
    • Two apps provide about 70% of third-party services in the UPI system.
    • The concentration of two or three third-party providers in this retail payments space could give rise to competitive weaknesses. 
    • Therefore, the National Payments Corporation of India (NPCI) had laid down a framework for a more even distribution of share of third-party app providers in the UPI system.

  • 26th April 2021 | Prelims Daily with Previous Year Questions

    [WpProQuiz 610]

    [WpProQuiz_toplist 610]

  • Microfinance Institutions

    The article highlights the important role played by the microfinance sector in furthering financial inclusion in India and suggests measures to achieve holistic development of the sector.

    Important role played by microfinance

    • No other form of financial services has had the kind of far-reaching impact, in terms of fostering financial inclusion, as microcredit has.
    • Access to small, collateral-free loans for economically productive purposes has helped transform the lives of millions at the bottom-of-the-pyramid—especially women.
    • Over the past decade, India’s microfinance industry has grown at a compound annual growth rate of 26% to reach ₹2.36 trillion.
    • It has helped 50 million economically vulnerable Indians, 99% of them women, live a life of dignity and financial independence.
    • Assuming that these 50 million people who took a loan to start a small business employed at least one other person, it translates into 50 million additional jobs in the country.
    • This creates a ‘network effect’ that has a social impact at scale.

    Evolution of microfinance industry

    • Recommendations of the Malegam Committee, which became regulations, and practices such as relying on credit bureau data to assess a borrower’s creditworthiness have helped the industry immensely.
    • The vital role that microfinance plays in the last-mile delivery of financial services was acknowledged.
    • Subsequently, eight out of the 10 small finance bank licences granted were also given to microfinance institutions.
    • RBI has sought to undertake a comprehensive review of the sector again, after 10 years, to better align the regulatory framework with the sector’s current realities.

    Steps for development of sector

    • First, Entities should promote financial literacy through group meetings of borrowers.
    • Second, organizations should complement their microcredit operations with social development projects and community-connect initiatives.
    • Third, prospective borrowers’ indebtedness and ability to repay dues should be assessed properly.
    • Fourth, loans must be given only for income-generation purposes.
    • Fifth, every microfinance organization should devote time and resources for capacity building at the grassroots.
    • Sixth, rather than focusing on taking over the existing debt of a borrower, or lending to her further, institutions should focus on bringing new-to-credit customers into the fold.

    Consider the question “How can microcredit stimulate financial inclusion in India? Suggest the measures for the development of microfinance sector in India.”

    Conclusion

    There is much more that we, as a nation, collectively need to do in order to bring a vast population of unbanked and underbanked Indians into the fold of formal financial services.

  • [pib] Exercise VARUNA-2021

    Details of the exercise

    • The 19th edition of the Indian and French Navy bilateral exercise ‘VARUNA-2021’ is scheduled to be conducted in the Arabian Sea from 25th to 27th April 2021.
    • The exercise will see high tempo-naval operations at sea, including advanced air defence and anti-submarine exercises, intense fixed and rotary wing flying operations, tactical manoeuvres, surface and anti-air weapon firings, underway replenishment and other maritime security operations.
    • Units of both navies will endeavour to enhance and hone their war-fighting skills to demonstrate their ability as an integrated force to promote peace, security and stability in the maritime domain.
    • On completion of exercise VARUNA-21, to consolidate accrued best practices and enhance interoperability, Indian Navy’s guided-missile frigate INS Tarkash will continue to exercise with the French Navy’s Carrier Strike Group (CSG) from 28th April to 1st May 2021.
    • During this period, the ship will take part in advanced surface, anti-submarine and air-defence operations with the French CSG.

    Significance of exercise

    • VARUNA-21 highlights growing bonhomie and showcases increased levels of synergy, coordination and inter-operability between the two friendly navies.
    • These interactions further underscore the shared values as partner navies, in ensuring freedom of seas and commitment to an open, inclusive Indo-Pacific and a rules-based international order.

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