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Why in news?

1. Recently, the government approved the establishment of India’s first mega coastal economic zone (CEZ) at Jawaharlal Nehru Port (JNPT) in Maharashtra.
2. The CEZ will be located in the north Konkan region spread across Nasik, Thane, Mumbai, Pune, and Raigarh.
3. It will be part of 14 mega CEZ under the National Perspective Plan of the Sagarmala Programme.

What is Coastal Economic Zone?

1. It is a spatial economic region that could extend along 300-500 km of coastline and around 200-300 km inland from the coastline.
2. Each CEZ will be a grouping of coastal districts within a state.
3. It will provide a geographical boundary within which port led industrialization can be developed through uniform policy along the ports and coastal states.
4. Under CEZ, investor and business-friendly environment including ease of doing business, swift environmental clearances etc.

Significance

1. These CEZs are aimed at promoting the development of port-proximate industrial clusters, encourage port-led development, reduction of logistics costs and time for the movement of goods and enhance the global competitiveness of Indian manufacturing sector.
2. CEZ will facilitate export-led coastal economy based on labour-intensive sectors and will result in employment creation.
3. It will increase export growth since large manufacturing industries are assisted by ancillary industries in the CEZ.
4. CEZ would attract foreign investments with technology, capital, goods management and connections to the global markets.
5. It will create an ecosystem around the CEZ in which productive cluster of the small and medium firm would arise and flourish.

Challenges

1. Lack of availability of land with the states along with huge acquisition and compensation costs have delayed the implementation of the project.
2. Lack of sufficient infrastructure for evacuation of cargo at major and non-major ports resulting in a poor mix of modal transportation, low penetration of coastal and inland shipping, lack of scale and deep draft at ports also lead to the poor growth.
3. Involvement of multiple agencies might lead to a fragmented approach in the development of infrastructure for promoting industrialization, trade, tourism, and transportation across the country.

Way forward

Port-led industrialization through the development of CEZ expected to provide impetus to the “Make in India” initiative of the Government of India that will aid in the creation of jobs in India. However, speedier clearances without concern for the environment will be detrimental for the sustainable development as well. Hence proper environment impact assessment is needed before the actual implementation

Practice question

Critically evaluate the features, significance, and challenges associated with the development of Coastal Economic Zone in India.

Why in News?

The Parliament has amended the Child Labour (Prohibition and Regulation) Act, 1986 and passed Child Labour (Prohibition and Regulation) Amendment Bill, 2016 in July 2016.

What is Child Labour?

The term “child labour” is often defined as work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development (International Labour Organization).

Key Statistics of Child Labour in India

1. 1 in every 11 children in India works to earn a living, according to statistics by Action Aid India
2. There are five states which are India’s biggest child labour employers-Bihar, Uttar Pradesh, Rajasthan, Madhya Pradesh and Maharashtra, as per data given out by save children NGO.
3. National capital Delhi is responsible for a share of 1 million child labour alone.
4. A recent analysis by CRY of census data in the country shows that the overall decrease in child labour is only 2.2 per cent year on year, over the last 10 years.
5. Also it has revealed that child labour has grown by more than 50 percent in urban areas.
6. There are 33 million child labourers between the ages of 5 – 18 years in INDIA as per census 2011 data and 10.13 million between the ages of 5- 14 years.
7. Considering that there are 444 million children India under the age of 18, they form 37 percent of the total population in the country.

Current Scenario of Child Labour

1. India is one of the leading countries in Asia has 33 million children employed in various forms of child labour.
2. India yet to ratify the Minimum age convention 1973 (No 138) of the International labour organization (ILO) that lays down ground rules for employment of minors across the globe.
3. According to a Live mint report ,the government last year amended child labour laws to allow children below 14 to work in family businesses and the entertainment industry (excluding circuses ) in order to create” a balance between the need for education for a child and reality of the socio-economic condition and social fabric of the country”.
4. The amendment modified the definition of adolescents- to children between 14 and 18 years of age and barred them from working in any hazardous industries only.

Constitutional Safeguards for Children 

The constitution provides various safeguards for children which are as follows:

1. Article 15(3) gives the power to the State to enact laws to protect children.
2. Article 21A provides free and compulsory education to all children between the ages of 6 and 14.
3. Article 24 prohibits employment of children under the age of 14 years in hazardous industries.
4. Article 39 (e) provides that the State shall direct its policy to ensure that the tender age of children is not abused.
5. Article 45 provides that State shall endeavour to provide early childhood care and education to children below the age of six years.
6. Article 47 provides that it is the duty of the State to raise the level of nutrition and standard of living and to improve public health.

Salient features of the Child Labour (Prohibition and Regulation) Amendment Act Bill

1. The Bill proposes a ban on employment of children below 14 years in all occupations except in family business and in entertainment industry provided education of the child does not get hampered.
2. It prohibits employment of adolescents (a person between 14 and 18 years of age) in hazardous occupations as specified (mines, inflammable substance and hazardous processes).
3. The central government may add or omit any hazardous occupation from the list included in the Bill.
4. It enhances the punishment for employing any child in an occupation and for employing an adolescent in a hazardous occupation. For the first time, the fine has been increased from 20000 to 50000 Rs and 6 months to 2 years imprisonment. For repeat offenders, the offence is cognizable and proposes a punishment of 1-3 years.
5. The Bill proposes relaxed penal provisions for parents. In case of parents being repeat offenders, it proposes a fine of 10000 rupees.
6. It empowers the government to make periodic inspection of places at which employment of children and adolescents are prohibited.
7. It also sets up a Child and Adolescent Labour Rehabilitation Fund to be set up under the Act for rehabilitation of children and adolescents.

Arguments in Favour

1. The amendments intend to preserve Indian art and craft by enabling parents with traditional skills to pass them on to their children.
2. The setting up of a Child and Adolescent Labour Rehabilitation Fund will help to improve the condition of the children and sponsor education for them.
3. It prescribes a more stringent penalty for Violators and high term of jail and fine with non-bailable charges.
4. It gives more autonomy to various institutions involved in child labour protection rehabilitation and redevelopment y empowering the government to make periodic inspection of places.

Arguments in Against

• Reversing the gains

In 1986, the Child Labour (Prohibition and Regulation) Act had after much discussion and expansion included 83 occupations. The new amendment reverses the gain by bringing down the list of hazardous occupations for children to include just mining, inflammable substances and explosives.

• Open discretion of government authorities

Further, the occupations listed as hazardous can be removed, according to Section 4 — not by Parliament but by government authorities at their own discretion. This leaves it to open discretion.

• Promoting family labour

It allows child labour in “family or family enterprises” or allows the child to work in the entertainment industry. Most of the child labour is in work with family members. Not defining the nature and time limitation will act as a main obstruction to their educational endeavour.

• Non-uniform implementation

List of hazardous factories can be amended by the state government, thus, leading to the non-uniform implementation of this act.

• Making lawful what was unlawful earlier

It allows that the children may work after school hours or during vacations, thus, actually making lawful a large part of child work that was earlier unlawful.

• Roughly defined purpose of Fund

Funding from the child rehabilitation fund is not directly linked to education and development rather it aims towards these goals without any mentioned method thus not giving any specific list of objectives.

Way forward

1. The Constitution of India mandates the state to secure a healthy childhood to all its children by virtue of Article 21-A, 24, 39(e), (f), 41 and 45.
2. Despite this, slavery is the keynote of industrial life in India and child labour prevails in one or the other nook and corner.
3. Even after the new Amendment Act, the blueprint for tackling child labour has multifarious lacunas and is not conducive in providing the fullest extent of justice to its children. The complete abolishment of child labour is still a distant dream.
4. It is high time to realize that child labour is not just a social issue but a moral one. The cardinal right to free and compulsory education to children is a fundamental right and child labour is antagonistic to this basic right of a child.

Practice Question

Critically examine the Key features of the Child Labour (Prohibition and Regulation) Amendment Act?

Why in News

1. The Law Commission has recommended that gambling and betting on sports, including cricket, be allowed as regulated activities taxable under the direct and indirect tax regimes and used as a source for attracting foreign direct investment (FDI)
2. The commission’s report, “Legal Framework: Gambling and Sports Betting including Cricket in India”, recommends a number of changes in the law for regulating betting and generating tax revenues from it

Definition of Gambling & Betting

• Betting is considered to be a form of gambling. The main difference between the two activities is that in gambling ‘the stakes’ or ‘the wager’ is placed on an event without any basis of the outcomes, whereas in betting the stakes are placed, based on at least an idea or the performance about the said betting event.
• Kautilya’s Arthashastra defined gambling as wagering with inanimate objects such as dice; and betting as something that involved challenges and was concerned with cockfights, animal races and similar contests.

Law Commission Recommendations

1. Parliament may also enact a model law for regulating gambling that may be adopted by the States or in the alternative, the Parliament may legislate in the exercise of its powers under Articles 249 or 252 of the Constitution.
2. Gambling and betting, if any, should be offered only by Indian licensed operators from India possessing valid licenses granted by the game licensing authority.
3. Gambling must be classified into two categories, namely ‘proper gambling’ and ‘small gambling’. ‘Proper gambling’ would be characterized by higher stakes, whereas individuals belonging to the lower income groups will have to confine themselves to ‘small gambling’.
4. The transactions made between and among operators and players/participants indulging in these activities should mandatorily be made ‘cashless’.
5. Any income derived from such activities should be made taxable under the Income Tax Act, 1961, the Goods and Services Tax Act, 2017.

Consequences that ensue due to unregulated Gambling and Betting

• Some of the major problems related to illegal gambling and betting activities are the exponential growth of illegal trade and commerce, and corrupt practices such as spot-fixing and match-fixing being employed in sports.
• A total of 2916 cases have been registered under the gambling act in a period of 28 months, i.e., 104 cases per month, on an average.
• The Delhi Police terms gambling as “connecting crime” that connects the gambler with other criminal activities. In order to regain the lost money or in an attempt to ‘invest’ more money into gambling, expecting more return an illegal gambler is bound to end up in committing other crimes like chain snatching, looting, stealing, etc.
• A total ban on gambling and betting activities has not completely eradicated the problem but it has driven it straight to the black-market. This in turn has resulted in making it harder to monitor such illegal activities.
• Illegal betting causes substantial monetary loss to the economy, with profits escaping the purview of taxation, and also increases the circulation of black money in the market.

Advantages of a regulated Gambling and Betting industry

• Protection for the young and vulnerable against the dangers of unwise betting behaviour.
• Employment generation (more than 8000 people are employed in casinos in Goa).
• Fairer and more trusted betting experience for consumers, offering entertainment in a controlled and responsible manner.
• Blow against organized crime like match fixing which threaten to damage public trust both in sport and in the legitimate betting industry.
• Generation of revenues from taxation of sports development and preventing sport betting from being linked to criminality or used to launder proceeds of crime.
• Protection of players, coaches and all involved with sport from unprincipled approaches

Lessons from International Perspective on Gambling & Betting

• Countries across the globe have adopted three approaches in the matter of regulating gambling and betting activities.
• Some Countries, especially those which give primacy to religious morality, have taken the view that the role of government is to protect its citizens from the negative effects of such activities.
• The Countries that give primacy to religious morality often impose a complete ban on gambling, while others view gambling and betting as an industry to drive trade and revenue; and encourage tourism and employment.
• Some countries also operate between these two extremes, striking a balance and permit gambling in a controlled and regulated environment; as a result, they earn substantial revenue from the tax imposed on such activities. This revenue can be utilized for promoting sports, cultural, charitable activities or any other activity aimed at the economic growth or development

What needs to be done?

• Legalizing betting and gambling is not desirable in India in the present scenario. Therefore, the State authorities must ensure enforcement of a complete ban on unlawful betting and gambling.
• However, incapability to enforce a complete ban has resulted in a rampant increase in illegal gambling, resulting in a boom in black-money generation and circulation.
• Since it is not possible to prevent these activities completely, effectively regulating them remains the only viable option.
• But law commission recommends that regulated gambling would ensure detection of fraud and money laundering, etc.
• Such regulation of gambling would require a three-pronged strategy, reforming the existing gambling (lottery, horse racing) market, regulating illegal gambling and introducing stringent and overarching regulations

Practice Question

A complete restriction on betting has not eradicated it but has sent the activity ‘underground’ covered in the murky undertakings of the crime syndicates. In the light of the above statement critically analyse the recent proposal of Law commission to regulate gambling and betting on sports in India?

What is Belt and Road Initiative?

1. The Belt and Road Initiative is a Chinese foreign policy initiative launched by President Xi Jinping in 2013.
2. It consists of two projects named Silk Road Economic Belt (SREB) and Maritime Silk Road (MSR).
3. The objective is to build a trade, investment, and infrastructure network linking Asia with Europe and Africa along the ancient trade routes.
4. China has incorporated Belt and Road Initiative into its constitution.

The significance of BRI for China

1. It makes China an important maritime power in the South China Sea and the Indian Ocean and its littoral countries.
2. It promotes China-led financial institutions such as the Asian Infrastructure Investment Bank (AIIB).
3. Development of Western Provinces:  It will develop poorer western provinces of China, particularly Xinjiang. Xinjiang has had ethnic tensions and is considered to be a vulnerable area for China. The Chinese government made Xinjiang Uighur Autonomous Region as ‘Core zone of Silk Road Economic belt’. The government has been providing incentives to attract manufacturers and real estate developers.
4. Transportation links provide better access to rich European markets and boost trade.
5. Creation of an energy route between the Middle East and Africa will act as a safety valve against any possible prohibition at points like Hormuz and the Malacca Strait.
6. Development of railways, ports, pipelines, and highways across Asia and the Indian Ocean will help China utilize its excess capacity in steel, cement, and infrastructural engineering. This will result in the development of its manufacturing sector further.
7. It will enable China to compete with Transatlantic Trade and Investment Partnership (TTIP) and Trans-Pacific Partnership (TPP) or any other future mechanisms that aim at establishing new trading norms.

Challenges to BRI

• Poor governance and instability in Countries along BRI

1. The varying levels of development and the poor governance conditions of countries along the BRI may hinder infrastructure development, trade, and investment.
2. Furthermore, the political instability in a growing number of countries such as Yemen, Syria etc. along BRI poses serious security concerns for BRI

• Separatist movements and Ethnic Tensions

1. Separatist movements and ethnic tensions especially in Xinjiang proves to be a major challenge for the development of BRI and its linking with neighbouring countries.

• Cooperation from neighboring countries:

1. China has raised several sovereignty-related disputes with neighbouring countries including India which makes them not cooperate with the development of BRI.
2. Moreover, the Potential ecological and environmental consequences, especially in developing countries along the BRI, renders the project undesirable for many countries including India.

• Transparency issues in tenders and deal conditions

1. There are many instances of countries such as Nepal and Pakistan abandoning the deal with China to build the infrastructure project because of the closed tender process and strict deal conditions.

India’s stance

1. India has opposed the BRI and did not attend the 2017 BRI Summit held in Beijing.
2. It mentioned issues of sovereignty, transparency and unilateral decision making.

Why is India reluctant in joining the initiative?

China-Pakistan Economic Corridor (CPEC)

1. CPEC is a flagship programme of the BRI and the main reason for India opposition to the initiative.
2. It is because CPEC passes through Pakistan-Occupied Kashmir (Gilgit-Baltistan) which is a disputed territory between India and Pakistan.
3. Thus CPEC undermines India’s strategic interests and territorial integrity.
4. More importantly, with CPEC, China will get access to the western Indian Ocean through Gwadar port. This will help China in controlling maritime trade and would affect the freedom of navigation and trade-energy security of India.

Unilateral Decision

1. India has alleged that China has taken unilateral decisions. There has been a lack of consultations with India before the launch of BRI.

Concern over China’s expanding presence in neighbouring countries and the Indian Ocean

1. China’s port development projects in the Indian Ocean raises security concerns for India.
2. Increasing Chinese presence in Nepal, Pakistan, Sri Lanka, and Myanmar has raised concerns for India. For India, BRI seems driven by large geopolitical aims.

Transparency issues

1. India has highlighted the importance of openness and transparency
2. According to India, mutual agreements on infrastructure projects should be transparent and debt repayments should be made easier for recipient countries

Why should India join BRI?

1. Economic benefits, Boost to trade, investment, and business engagement
2. It provides direct access to Afghanistan and Central Asia
3. Energy: BRI is expected to normalize India-Pakistan ties. This would remove the obstacles to the implementation of two major energy cooperation projects: the Iran-Pakistan-India gas pipeline and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. This is crucial for India’s energy security.
4. Improve Indo-China ties; India and China may cooperate at many global fronts.
5. Security: Development in Gilgit- Baltistan area would help to curb security threats
6. All neighbouring countries (except Bhutan) and other countries from South-East Asia, Central Asia has joined BRI. Thus, not joining BRI may lead to the isolation of India
7. Many geopolitical issues and differences can be resolved through economic integration.

Way forward

1. More than 65 countries- nearly every country in Asia (except few like Bhutan, Japan), East and Central Europe have joined BRI
2. BRI is particularly significant in times of rising protectionism across the world.
3. The success of BRI largely depends on how China manages its debt since 23 countries that joined BRI are in debt distress.
4. More importantly, the regional cooperation and political stability in countries along BRI is crucial for BRI’s success

Practice questions

1. Give a brief account of Belt and Road initiative and its significance for China vis-à-vis India. Also, identify the key challenges in the implementation of BRI.
2. Do you think that it is in the best interest for India to join the Belt and Road initiative? Critically analyse.