Notwithstanding the eventual introduction of the Cryptocurrency and Regulation of Official Digital Currency Bill in Parliament, cryptocurrencies continue to proliferate.
Provisions in Income Tax Act 1961 to tax cryptocurrencies
Cryptocurrencies not mentioned in Income Tax Act, 1961: Although the Income Tax Act, 1961 (“IT Act”) does not specifically mention cryptocurrencies, it does cast a wide enough net to bring crypto transactions under its ambit.
Capital asset: Trading in cryptocurrency may be classified as transfer of a ‘capital asset’, taxable under the head ‘capital gains.
Business income: If such cryptocurrencies are held as stock-in trade and the taxpayer is trading in them frequently, the same will attract tax under the head ‘business income’.
Even if one argues that crypto transactions do not fall under the above heads, Section 56 of the IT Act shall come into play, making them taxable under the head ‘Other sources of income’.
Challenges in taxing cryptocurrencies
The above provisions in themselves are not sufficient in order to put in place a simple yet effective taxation regime for cryptocurrencies.
[1] Varied interpretations:
First, the absence of explicit tax provisions has led to uncertainty and varied interpretations being adopted in relation to mode of computation, applicable tax head and tax rates, loss and carry forward, etc.
For instance, the head of income under which trading of self generated cryptocurrency (currencies which are created by mining, acquired by air drop, etc.) is to be taxed is unclear.
Since there is no consistency in the rates provided by the crypto-exchanges, it is difficult to arrive at a fair market value.
Similarly, when a person receives cryptocurrency as payment for rendering goods or services, how should one arrive at the value of the said currency and how should such a transaction be taxed?
[2] Identifying tax jurisdiction
It is often tricky to identify the tax jurisdiction for crypto transactions as taxpayers may have engaged in multiple transfers across various countries and the cryptocurrencies may have been stored in online wallets, on servers outside India.
[3] The anonymity of taxpayer
The identities of taxpayers who transact with cryptocurrencies remain anonymous.
Exploiting this, tax evaders have been using crypto transactions to park their black money abroad and fund criminal activities, terrorism, etc.
[4] Lack of third party information on crypto transaction
The lack of third party information on crypto transactions makes it difficult to scrutinise and identify instances of tax evasion.
One of the most efficient enforcement tools in the hands of Income Tax Department is CASS or ‘computer aided scrutiny selection’ of assessments, where returns of taxpayers are selected inter alia based on information gathered from third party intermediaries such as banks.
However, crypto-market intermediaries like the exchanges, wallet providers, network operators, miners, administrators are unregulated and collecting information from them is very difficult.
[5] Physical goods/services may change hand in return for cryptocurrencies
Even if the crypto-market intermediaries are regulated and follow Know Your Customer (KYC) norms, there remains a scenario, where physical cash or other goods/services may change hands in return for cryptocurrencies.
Such transactions are hard to trace and only voluntary disclosures from the parties involved or a search/survey operation may reveal the tax evaders.
Steps need to be taken
Statutory provision: The income-tax laws pertaining to the crypto transactions need to be made clear by incorporating detailed statutory provisions.
Awareness generation: This should be followed by extensive awareness generation among the taxpayers regarding the same.
Separate mandatory disclosure: The practice of having separate mandatory disclosure requirements in tax returns (as is the case in the United States) should be placed on the taxpayers as well as all the intermediaries involved, so that crypto transactions do not go unreported.
Strengthen international legal framework: Additionally, the existing international legal framework for exchange of information should be strengthened to enable collecting and sharing of information on crypto-transactions.
This will go a long way in linking the digital profiles of cryptocurrency holders with their real identities.
Training tax officers: the Government must impart training to its officers in blockchain technology.
The United Nations Office on Drugs and Crime’s ‘Cybercrime and Anti-Money Laundering’ Section (UNODC CMLS) has developed a unique cryptocurrency training module, which can aid in equipping tax officers with requisite understanding of the underlying technologies.
Consider the question “What are the provision in Income Tax Act 1961 to tax the cryptocurrencies? What are the challenges in taxing cryptocurrencies? “
Conclusion
It is certain that cryptocurrencies are here to stay. A streamlined tax regime will be essential in the formulation of a clear, constructive and adaptive regulatory environment for cryptocurrencies.
In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.
About BrahMos Missile
BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
Such weapons are in the arsenal of most major militaries in the world.
Its capability
BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.
Various versions
The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.
A controversy recently broke out after the National Commission for Protection of Child Rights (NCPCR) recommended that the Delhi government suspend its flagship ‘Desh ke Mentor’ programme.
What is the Desh Ke Mentor Programme?
The programme was launched in October 2021 and is aimed at connecting students in classes IX to XII with voluntary mentors.
People between the ages of 18 and 35 can sign up to be mentors through an app created by a team at the Delhi Technological University and will be connected with students based on mutual interests.
The mentorship entails regular phone calls for a minimum of two months, which can optionally be carried on for another four months.
The idea is for the young mentors to guide students through higher education and career options, preparation for higher education entrance exams, and dealing with the pressure of it all.
How is a person selected to be a mentor?
The registration process takes place on the Desh ke Mentor app.
The volunteer has to fill in information about themselves such as their date of birth, education qualification, profession, organisation they work with and so on.
However, it is optional for them to upload any proof of identity.
Once the registration is complete, the mentor is connected to a set of children of the same gender as themselves whose interests align with theirs.
Students have to take parental consent before becoming a part of the programme.
What are the concerns raised by the NCPCR regarding this process?
It has stated that assigning children to a mentor of the same gender as them does not necessarily assure their safety from abuse.
It has also expressed concern over the lack of police verification of the mentors.
It has a psychometric test which has not been scrutinized by professional practising experts.
It has also stated that limiting interactions to phone calls also does not ensure the safety of children since “child-related crime can be initiated through phone calls as well.”
Back2Basics: National Commission for Protection of Child Rights (NCPCR)
The NCPCR is an Indian statutory body established by an Act of Parliament, the Commission for Protection of Child Rights (CPCR) Act, 2005.
It works under the aegis of the Ministry of Women and Child Development and began operational on 5 March 2007.
It works to ensure that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights perspective as enshrined in the Constitution of India and the UN Convention on the Rights of the Child.
As defined by the commission, a child includes a person up to the age of 18 years.
To mark the contribution of the overseas Indian community in the development of India, the Pravasi Bharatiya Divas is celebrated on 9th January every year.
Indian Diaspora: A backgrounder
Indian Diaspora is a generic term used for addressing people who have migrated from the territories that are currently within the borders of India.
From Google CEO to Nobel laureate scientist Har Gobind Khorana, the list of Indians abroad and their contribution to the world goes endlessly.
One of the greatest economic contributions of Indian Diaspora has been in terms of remittances.
Historical perspective
Imperialism led-migration: The incorporation of the British Empire in India can be linked to the existence of modern Indian Diaspora all over the world.
Indentured labor: Dating back to the nineteenth century, Indian indentured labor was taken over to the British colonies in different parts of the world.
World Wars: In the post World War II period, most of the Indian labor and professionals got scattered and it was a worldwide phenomenon.
European reconstruction: The reconstruction of Europe after the war was provided by Indians and other South Asians, particularly in the United Kingdom and Netherlands.
Modern brain-drain: Most recently, Indians have made their presence visibly felt in professions in countries like the United States, Canada, and Australia.
Major sections of Indian Diaspora
(1) Indians in the Gulf
Around 8.5 million Indians live and work in the Gulf countries, one of the largest concentrations of migrants in the world.
The geographical and historical proximity makes it a convenient destination for Indians.
Today migrants from across India are working and living in the Gulf countries (Saudi Arabia, UAE, Qatar, Bahrain, Oman, and Kuwait).
(2) Indians in USA
In recent decades the population has grown substantially, with 2.4 million Indian immigrants resident in the United States as of 2015.
This makes the foreign-born from India the second-largest immigrant group in the US after Mexicans.
Categorizing Indian’s abroad
Overseas Indians, officially known as Non-resident Indians (NRIs) or Persons of Indian Origin (PIOs), are people of Indian birth, descent or origin who live outside the Republic of India:
(A) Non-Resident Indian (NRI)
Strictly asserting non-resident refers only to the tax status of a person who, as per section 6 of the Income-tax Act of 1961, has not resided in India for a specified period for the purposes of the Act.
The rates of income tax are different for persons who are “resident in India” and for NRIs.
(B) Person of Indian Origin (PIO)
Person of Indian Origin (PIO) means a foreign citizen (except a national of Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka and/or Nepal), who:
at any time held an Indian passport OR
either of their parents/grandparents/great-grandparents were born and permanently resident in India as defined in GoI Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of any of the aforesaid countries OR
is a spouse of a citizen of India or a PIO.
(C) Overseas Citizenship of India (OCI)
After multiple efforts by leaders across the Indian political spectrum, a pseudo-citizenship scheme was established, the “Overseas Citizenship of India”, commonly referred to as the OCI card.
The Constitution of India does not permit full dual citizenship.
The OCI card is effectively a long-term visa, with restrictions on voting rights and government jobs.
Significance of Indian diaspora
(A) Contribution in the freedom struggle
Mahatma Gandhi’s struggle for ending institutionalized discrimination against Indians in South Africa became an inspiring legend for enduring sentimentalism about the diaspora in modern India.
The diaspora also became a vehicle for promoting the cause of Indian independence among the political elites of major countries.
As the independence movement gathered momentum at home, it began to influence many Indian communities abroad.
(B) Diaspora as Cultural extension
The act of migration is not just limited to geographical limits; rather it is a cultural extension.
Let us take the example of the Sikh community. The Sikhs are one of the largest migrants from India to the UK, Canada and many other countries.
They have very well maintained their culture and ethnic existence for decades.
(C) Remittances
Money sent home by migrants is one of the largest financial inflows to developing countries.
According to a World Bank Report, India received approximately 87 billion dollars in remittances in 2021 with USA being the biggest source, accounting for over 20% of these funds.
Without these remittances, India’s balance of payment position would have looked worse.
(D) Diaspora as ‘Agents of change’
Diaspora acts as ‘agents of change’ facilitating and enhancing investment, accelerating industrial development, and boosting international trade and tourism.
Diaspora’s motives to invest in India are long-lasting as many of them wish to establish a long-term base in India.
(E) Technological development and entrepreneurship
Another tangible long-term advantage in nurturing ties with an active diaspora is an accelerated technological sector and increased socio-economic development.
Some examples to illustrate this phenomenon are Bengaluru, Gurugram and Hyderabad as thriving IT hubs that not only house multinational companies (MNCs) but also multiple Indian start-ups.
(F) Enhancing India’s global say
India’s permanent membership to the UNSC can become a reality with support from the diaspora.
Apart from political pressures and ministerial and diplomatic level lobbying, India can leverage its diaspora to influence states such as Canada and Mexico to support India’s membership
Most Importantly,
(G) Diaspora diplomacy
The diaspora’s ability to spread Indian soft power, lobby for India’s national interests, and contribute economically to India’s rise is now well-recognized.
A less tangible but important advantage in having a large immigrant group is “diaspora diplomacy”.
The recent engagement of Indian leaders in US general elections is a continuation of the extraordinary political investment in engaging the Indian diaspora.
India’s engagement with Diaspora: A policy-wise perspective
Many of the themes of India’s contemporary diaspora policy had their origins in the approach of the Indian national movement before independence.
The nationalist backlash against the Indian communities in Africa and Asia in the 1950s and 1960s saw Delhi consciously distance itself from the diasporic communities.
As India turned inwards, Delhi also took a dim view of the “brain drain” as many well-trained Indians began to look for opportunities elsewhere.
It was only in the late 1980s that Delhi began to rethink its approach to the diaspora.
Change in recent years
PM Rajiv Gandhi was the first to appreciate the potential role diaspora could play in advancing national development and improving India’s ties with the US.
In 2000, the Pravasi Bharatiya Divas was commenced to be celebrated and also led to the formation of a separate Ministry for Overseas Indians under PM AB Vajpayee.
Other innovative initiatives like the Know India Programme (KIP) and Study India Programme (SIP) were launched.
These have engaged the youth living abroad and the Tracing the Roots Scheme, through which some Indians have been able to trace their roots in India.
Most recent initiatives
India has been following the spirit of 4 Cs i.e. Connect – Contribute – Celebrate – Care.
There is a dedicated Diaspora Welfare Officer.
The authorities have been ensuring 100 percent grievance redressal through E-Migration Portal, Madad Portal, and CPGRAMS.
Various policy initiatives
Education: NRI seats are reserved in all the medical, engineering and other professional colleges.
Voting rights: The Representation of the People (Amendment) Bill 2017 the provision would help non-resident Indians (NRIs) to participate in the electoral process through ‘proxy voting’.
Know India Program (KIP): It is a flagship initiative for Diaspora engagement which familiarizes Indian-origin youth (18-30 years) with their Indian roots and contemporary India has been refashioned.
Minimum Referral Wages (MRW): A number of policies were announced keeping in mind the protection of welfare and interest of Indians abroad; for example, the 2014 Minimum Referral Wages (MRW).
Easing the passport facility: The last three years saw the launch of Head Post Offices as passport centers enabling thousands more to apply for a passport.
Challenges faced by Diaspora
Racial antagonism: Rising incidence of hate speech and crimes against Indians by the locals due to racism, communalism emboldened by coming of nationalist and ultra-nationalist governments to power in many countries.
Protectionism: Fear of losing jobs and educational opportunities to outsiders has resulted in stricter visa rules in many countries including the USA, Australia, etc.
Terrorism: Sectarian crisis, increasing terrorist activities and war in the Middle East countries (Yemen, Oman, Libya, Syria etc) leave our diaspora vulnerable to attacks.
Political Polarization: Many Indians abroad are turning against India since the change of government and some extreme right wing factionists.
Anti-national tendencies: India has had problems with negative campaigning and foreign funding, coming from abroad, for separatist movements like the Khalistan movement.
Way forward
India has enjoyed being viewed more favorably by the world since 2014, and the diaspora can further these perceptions.
India needs both additional resources as well as better systems to deal with the recurring challenges of supporting citizens abroad.
The diaspora can step up and act as Indian ‘ambassadors’, as it is insufficient and ineffective for a country or its missions abroad to rely only on press releases to change public opinion.
The diaspora can provide the requisite strategic impulse, which makes it all the more important to unlock their potential.
A distant undersea volcano has erupted in spectacular fashion near the Pacific nation of Tonga sending large tsunami waves reaching the shore.
Hunga Volcano
The Hunga-Tonga-Hunga-Ha’apai volcano has erupted regularly over the past few decades.
It consists of two small uninhabited islands, Hunga-Ha’apai and Hunga-Tonga, poking about 100m above sea level 65km north of Tonga’s capital Nuku’alofa.
But hiding below the waves is a massive volcano, around 1800m high and 20 kilometres wide.
During events in 2009 and 2014/15 hot jets of magma and steam exploded through the waves. But these eruptions were small, dwarfed in scale by the January 2022 events.
Researchers suggest this is one of the massive explosions the volcano is capable of producing roughly every thousand years.
Impact of the eruption
The ash plume is already about 20km high.
Most remarkably, it spread out almost concentrically over a distance of about 130km from the volcano, creating a plume with a 260km diameter, before it was distorted by the wind.
The eruption also produced a tsunami throughout Tonga and neighbouring Fiji and Samoa.
Shock waves traversed many thousands of kilometres, were seen from space, and recorded in New Zealand some 2000km away.
All these signs suggest the large Hunga caldera has awoken.
Why is it so explosive even after being underwater?
Answer: Fuel-coolant interaction
If magma rises into sea water slowly, even at temperatures of about 1200 degrees Celsius, a thin film of steam forms between the magma and water.
This provides a layer of insulation to allow the outer surface of the magma to cool.
But this process doesn’t work when magma is blasted out of the ground full of volcanic gas.
When magma enters the water rapidly, any steam layers are quickly disrupted, bringing hot magma in direct contact with cold water.
Volcano researchers call this ‘fuel-coolant interaction’ and it is akin to weapons-grade chemical explosions.
A chain reaction
Extremely violent blasts tear the magma apart.
A chain reaction begins, with new magma fragments exposing fresh hot interior surfaces to water, and the explosions repeat, ultimately jetting out volcanic particles and causing blasts with supersonic speeds.
How has it emerged out to be so big?
The caldera is a crater-like depression around 5km across.
Small eruptions (such as in 2009 and 2014/15) occur mainly at the edge of the caldera, but very big ones come from the caldera itself.
These big eruptions are so large the top of the erupting magma collapses inward, deepening the caldera.
Looking at the chemistry of past eruptions, we now think the small eruptions represent the magma system slowly recharging itself to prepare for a big event.
What next?
This latest eruption has stepped up the scale in terms of violence.
Researchers are still in the middle of this major eruptive sequence and many aspects remain unclear, partly because the island is currently obscured by ash clouds.
Ask Me Anything || How to Stick to UPSC Syllabus & Still Score Above Cut-Off in Prelims 2022? || with Shubham & Anurag Sirs’*Time: *Jan 15, 2022 @06:00 PM (Login 05:45 PM onwards) India*
Success in UPSC Civil Services Examination = 50% Knowledge + 50% Strategy. Both knowledge and strategy are important to clear this exam.
You might have finished reading your mandatory standard books, but still is your preparation complete? Do you remember all the important facts in your current affairs syllabus? Have you practised maps yet? Do you know all the important kingdoms in Ancient & Medieval History? Do you have a strong conceptual clarity on the foundational topics of Prelims? Are there any questions you have come across while practising your test series which you want to discuss in a live webinar? Then, register yourself for our next Ask me Anything Session with Prelims Toppers & UPSC Mentors Shubham & Anurag.
Open to All Free Live Q&A Webinar with Prelims Toppers & Civilsdaily Mentors Anurag & Shubham
How long has it been since you revised your GS subjects? First time reading of all books is always easy. In the second and third time readings, you will realise that your recollection of the topics is still sparse. All the topics might seem new, even when they are already read. In the second and third time readings, not only you are expected to write down notes but also start your subject-wise test series. So, how will you fit in revision study plan with your test series and current affairs schedule in the next five months?
Since, there are five months for Prelims exams to begin in 2022, do you think its too early to start CSAT preparation? CSAT, is only a qualifying paper but it definitely is not a piece of cake. In the past two years, questions testing the analytical, reasoning and aptitude skills of candidates have become tougher. Many toppers have had to write Prelims a second time as they had underestimated CSAT the first time. Case in point, is our Civilsdaily student and IPS Officer Shubham Nagargoje.
Most importantly, if you have not yet started UPSC preparation, but still want to give 2022 a decent attempt, then you might be unsure how you can do justice to Prelims preparation in the last five months. Anurag and Shubham sir will draw the correct roadmap for such learners.
Key-Takeaways of Free Live Ask Me Anything Session with Shubham & Anurag Sir
Both Shubham and Anurag sir have attended interview round of UPSC-CSE as aspirants two to three times respectively and cleared the prelims five to six times respectively with a score above 110 marks. In their Q&A webinar, they will be welcoming doubts from all aspirants in these areas —
1. What to target for prelims 2022? For those who have started their UPSC preparation only this month onwards.
2. How to revise GS for Prelims? How to form a test series and revision schedule that are in sync with each other?
3. Is CSAT a child’s play?
4. The different kinds of Mock Tests for Prelims. What are they and where will you find them?
5. Tricky topics of Prelims 2022. What are the topics where questions deviate from the standard sources?
6. Difference in preparation- Prelims vs Mains Preparation. What are the differences when it comes to books, current affairs sources and taking down notes on same topics?
7. Analysing test performance. How to change or increase your topic-wise sources in GS Prelims after taking a test?
Webinar Details
It’s time to level up and revise the same syllabus that took you one year to complete in the next 5 months! We hope this webinar will help all 2022 aspirants implement the suggestions of Shubham and Anurag sir
Success in UPSC Civil Services Examination = 50% Knowledge + 50% Strategy. Both knowledge and strategy are important to clear this exam.
You might have finished reading your mandatory standard books, but still is your preparation complete? Do you remember all the important facts in your current affairs syllabus? Have you practised maps yet? Do you know all the important kingdoms in Ancient & Medieval History? Do you have a strong conceptual clarity on the foundational topics of Prelims? Are there any questions you have come across while practising your test series which you want to discuss in a live webinar? Then, register yourself for our next Ask me Anything Session with Prelims Toppers & UPSC Mentors Shubham & Anurag.
Open to All Free Live Q&A Webinar with Prelims Toppers & Civilsdaily Mentors Anurag & Shubham
How long has it been since you revised your GS subjects? First time reading of all books is always easy. In the second and third time readings, you will realise that your recollection of the topics is still sparse. All the topics might seem new, even when they are already read. In the second and third time readings, not only you are expected to write down notes but also start your subject-wise test series. So, how will you fit in revision study plan with your test series and current affairs schedule in the next five months?
Since, there are five months for Prelims exams to begin in 2022, do you think its too early to start CSAT preparation? CSAT, is only a qualifying paper but it definitely is not a piece of cake. In the past two years, questions testing the analytical, reasoning and aptitude skills of candidates have become tougher. Many toppers have had to write Prelims a second time as they had underestimated CSAT the first time. Case in point, is our Civilsdaily student and IPS Officer Shubham Nagargoje.
Most importantly, if you have not yet started UPSC preparation, but still want to give 2022 a decent attempt, then you might be unsure how you can do justice to Prelims preparation in the last five months. Anurag and Shubham sir will draw the correct roadmap for such learners.
Key-Takeaways of Free Live Ask Me Anything Session with Shubham & Anurag Sir
Both Shubham and Anurag sir have attended interview round of UPSC-CSE as aspirants two to three times respectively and cleared the prelims five to six times respectively with a score above 110 marks. In their Q&A webinar, they will be welcoming doubts from all aspirants in these areas —
1. What to target for prelims 2022? For those who have started their UPSC preparation only this month onwards.
2. How to revise GS for Prelims? How to form a test series and revision schedule that are in sync with each other?
3. Is CSAT a child’s play?
4. The different kinds of Mock Tests for Prelims. What are they and where will you find them?
5. Tricky topics of Prelims 2022. What are the topics where questions deviate from the standard sources?
6. Difference in preparation- Prelims vs Mains Preparation. What are the differences when it comes to books, current affairs sources and taking down notes on same topics?
7. Analysing test performance. How to change or increase your topic-wise sources in GS Prelims after taking a test?
Webinar Details
It’s time to level up and revise the same syllabus that took you one year to complete in the next 5 months! We hope this webinar will help all 2022 aspirants implement the suggestions of Shubham and Anurag sir
Success in UPSC Civil Services Examination = 50% Knowledge + 50% Strategy. Both knowledge and strategy are important to clear this exam.
You might have finished reading your mandatory standard books, but still is your preparation complete? Do you remember all the important facts in your current affairs syllabus? Have you practised maps yet? Do you know all the important kingdoms in Ancient & Medieval History? Do you have a strong conceptual clarity on the foundational topics of Prelims? Are there any questions you have come across while practising your test series which you want to discuss in a live webinar? Then, register yourself for our next Ask me Anything Session with Prelims Toppers & UPSC Mentors Shubham & Anurag.
Open to All Free Live Q&A Webinar with Prelims Toppers & Civilsdaily Mentors Anurag & Shubham
How long has it been since you revised your GS subjects? First time reading of all books is always easy. In the second and third time readings, you will realise that your recollection of the topics is still sparse. All the topics might seem new, even when they are already read. In the second and third time readings, not only you are expected to write down notes but also start your subject-wise test series. So, how will you fit in revision study plan with your test series and current affairs schedule in the next five months?
Since, there are five months for Prelims exams to begin in 2022, do you think its too early to start CSAT preparation? CSAT, is only a qualifying paper but it definitely is not a piece of cake. In the past two years, questions testing the analytical, reasoning and aptitude skills of candidates have become tougher. Many toppers have had to write Prelims a second time as they had underestimated CSAT the first time. Case in point, is our Civilsdaily student and IPS Officer Shubham Nagargoje.
Most importantly, if you have not yet started UPSC preparation, but still want to give 2022 a decent attempt, then you might be unsure how you can do justice to Prelims preparation in the last five months. Anurag and Shubham sir will draw the correct roadmap for such learners.
Key-Takeaways of Free Live Ask Me Anything Session with Shubham & Anurag Sir
Both Shubham and Anurag sir have attended interview round of UPSC-CSE as aspirants two to three times respectively and cleared the prelims five to six times respectively with a score above 110 marks. In their Q&A webinar, they will be welcoming doubts from all aspirants in these areas —
1. What to target for prelims 2022? For those who have started their UPSC preparation only this month onwards.
2. How to revise GS for Prelims? How to form a test series and revision schedule that are in sync with each other?
3. Is CSAT a child’s play?
4. The different kinds of Mock Tests for Prelims. What are they and where will you find them?
5. Tricky topics of Prelims 2022. What are the topics where questions deviate from the standard sources?
6. Difference in preparation- Prelims vs Mains Preparation. What are the differences when it comes to books, current affairs sources and taking down notes on same topics?
7. Analysing test performance. How to change or increase your topic-wise sources in GS Prelims after taking a test?
Webinar Details
It’s time to level up and revise the same syllabus that took you one year to complete in the next 5 months! We hope this webinar will help all 2022 aspirants implement the suggestions of Shubham and Anurag sir
NEAT, first-of-its-kind government scheme, set in motion over two years ago, has finally taken shape, bringing courses offered by a group of edtech platforms within the reach of college and university students from socio-economically disadvantaged backgrounds.
NEAT Scheme
The National Education Alliance for Technology (NEAT) is implemented by the All India Council for Technical Education (AICTE).
It aims to act as a bridge between edtech companies, academic institutions and students.
The initiative was taken after a Ministry of Education review noted that learning tools developed by edtech platforms that can supplement classroom teaching need to be made more accessible.
Accordingly, it was proposed that a portal be created where edtech platforms can be roped in to display their products after a shortlisting process.
What are the products on display in the portal?
The NEAT portal has separate sections listing products for students and educational institutes respectively.
The companies were shortlisted by independent expert committees leaving no room for favouritism, he said.
Under the B2B (business to business) segment of the portal, courses are on offer for higher education institutes to purchase in bulk for their students.
And the B2C (business to customer) section lists courses that eligible students can browse through and choose from.
The courses range from accounting and finance to coding, including advanced programming languages like python.
How to enroll into this scheme?
There are two different ways through which students can enroll under the scheme.
The basic objective of the scheme is to make students from disadvantaged backgrounds aware of the availability of such opportunities that can help them learn new skills or polish existing ones.
In that regard, the AICTE reached out to higher education institutes across the country, directing them to inform students about the portal and enroll them based on their needs and consent.
The edtech platforms have been allowed to charge fees as per their policies.
How will it benefit students from backward communities?
In order to do that, the government has mandated that every shortlisted company will have to offer free coupons to the extent of 25 per cent of the total registrations for their solution through NEAT portal.
Through this route, the government created a bank of 12.15 lakh free coupons over the last two years.
And it has now started distributing those coupons among students belonging to SC/ST/OBC and EWS categories with the annual family income cap fixed at Rs 8 lakh.
What are the courses in demand?
The top five courses in terms of demand are python programming, C, C++, Java programming, data science, life science and healthcare analysis, and interview preparation.
The ‘Mekedatu march’ has been launched for the implementation of a project to build a reservoir on the Cauvery at Mekedatu near the Tamil Nadu border.
What is the Mekedatu Project?
Mekedatu, meaning goat’s leap, is a deep gorge situated at the confluence of the rivers Cauvery and Arkavathi, about 100 km from Bengaluru, at the Kanakapura taluk in Karnataka’s Ramanagara district.
In 2013, then Karnataka announced the construction of a multi-purpose balancing reservoir project.
The project aimed to alleviate the drinking water problems of the Bengaluru and Ramanagara districts.
It was also expected to generate hydroelectricity to meet the power needs of the state.
Issues with the project
Soon after the project was announced TN has objected over granting of permission or environmental clearance.
Explaining the potential for damage to the lower riparian state of TN, it said that the project was in violation of the final award of the Cauvery Water Disputes Tribunal.
It stated that the project will affect the natural flow of the river Cauvery considerably and will severely affect the irrigation in TN.
What do the Cauvery Water Disputes Tribunal and the Supreme Court say?
The Cauvery Water Disputes Tribunal, in its final order on February 2007, made allocations to all the riparian States — Karnataka, Kerala and Tamil Nadu, apart from the Union Territory of Puducherry.
It also stipulated “tentative monthly deliveries during a normal year” to be made available by Karnataka to Tamil Nadu.
Aggrieved over the final order for different reasons, the States had appealed to the Supreme Court.
In February 2018, the court, in its judgment, revised the water allocation and increased the share of Karnataka by 14.75 thousand million cubic feet (tmc ft) at the cost of Tamil Nadu.
The enhanced quantum comprised 4.75 tmc ft for meeting drinking water and domestic requirements of Bengaluru and surrounding areas.
What is Karnataka planning?
Encouraged by the Supreme Court verdict, Karnataka, which sees the order as an endorsement of its stand, has set out to pursue the Mekedatu project.
Originally proposed as a hydropower project, the revised Mekedatu dam project has more than one purpose to serve.
A hydropower plant of nearly 400 MW has also been proposed.
The Karnataka government has argued that the proposed reservoir will regulate the flow to Tamil Nadu on a monthly basis, as stipulated by the Tribunal and the Supreme Court.
This is why Karnataka has contended that the project will not affect the interests of Tamil Nadu farmers.
In 2019, the global cryptocurrency market was approximately $793 million.
It’s now expected to reach nearly $5.2 billion by 2026, according to a report by the market research organization Facts and Factors.
In just one year—between July 2020 and June 2021—the global adoption of cryptocurrency surged by more than 880 percent.
Carbon footprints of Bitcoins
Increasing popularity of cryptocurrency has environmentalists on edge, as the digital “mining” of it creates a massive carbon footprint due to the staggering amount of energy it requires.
A/c to the Bitcoin Energy Consumption Index, the carbon footprint of Bitcoin is equivalent to that of New Zealand.
Both emit nearly 37 megatons of carbon dioxide into the atmosphere every year.
What is Mining?
Mining is a process in which computational puzzles are solved in order to verify transactions between users, which are then added to the blockchain.
In simpler terms, the works are created, or “minted,” through a process called proof-of-work (PoW), which establishes its unique identity.
How do cryptocurrencies create such a footprint?
Unlike mainstream traditional currencies, bitcoin is virtual and not made from paper or plastic, or even metal.
Bitcoin is virtual but power-hungry as it is created using high-powered computers around the globe.
Bitcoin is created when high-powered computers compete against other machines to solve complex mathematical puzzles.
This is an energy-intensive process that often relies on fossil fuels, particularly coal, the dirtiest of them all.
Conclusion
What this means is that, unlike traditional currency or gold, Bitcoin is not solely a settlement layer, not solely a store of value, and not solely a medium of exchange.
This makes Bitcoin’s relative energy consumption productive in comparison to comparative sectors, given its robust potential uses.
The promise of such an endeavor offers hope for a more sustainable cryptocurrency future.
Whether this will make much difference to the climate crisis in light of government and industrial inaction remains to be seen.
Smash Prelims Program is back after a thumping success in Prelims 2021. Out of 25 students Santosh sir has mentored, 15 have cleared prelims this time.Our students were kind enough to take time out of their hectic Mains preparation and let us know how Santosh sir’s mentorship benefitted them in the exams. We wish them all the very best for the upcoming Mains exam from 7th January onwards!
https://youtu.be/oTRUMSOQEY4
Why Your Focus for Next 5 Months Must be About Scoring Above Cut-Off Marks in UPSC-CSE Prelims? Isn’t the last 1 Month Enough for This?
Every year, the competition for UPSC-CSE is increasing while vacancies are decreasing drastically. This year there are only 712 vacancies as against 2019 which had 927 vacancies. However, atleast 10 lakh students will attempt the prelims exam. This is why right now, it’s important to start having an Olympic Athlete mindset. You need to daily focus on scoring above the cut-off marks in your test series.
Civilsdaily Student and 2019 UPSC-CSE AIR 8 Topper Abhishek Saraf had practiced nearly 6000+ MCQs under us to clear prelims!
What makes prelims tough? It’s because the paper is unpredictable. If this year, science questions are a breeze then the next year you will have to answer advanced concept-based questions. Unlike Mains, Prelims has negative markings.
Toppers like Pranav Vijayvergiya (AIR 65) andSwati Sharma(AIR 17) have found Prelims to be tougher than Mains. In fact, Pranav failed to clear Prelims thrice. But, in his fourth attempt he took Civilsdaily mentorship and cleared Prelims, Mains and Interview in one shot!
Are you feeling low that you are unable to get the required cut-off marks in your test series. Worry not, for about 65% of the UPSC toppers have said that they scored below cut-off marks till December. But by June, they were able to boost their marks to get through the prelims hurdle. It’s time to be like them now.
One has to be good at elimination methods to choose the right option amongst two similar ones. Our Smash Prelims Program started as a pilot project last year with an aim to introduce step-wise improvement in our chosen 25 aspirants. Over a period of 2 months, Santhosh sir inculcated confidence in aspirants who were either newbies or gave too many attempts. This year, we achieved a remarkable 60% success ratio. Next year, we have set our eyes on 100%. Yes, we are ambitious and aspirational just like any other UPSC aspirant.
Why is Mentorship Required for UPSC-CSE Prelims in Every Step – From Test Series, to Study Materials, Classes to Doubt Resolution?
If you are appearing for UPSC-CSE 2022 exams, you might have completed your entire prelims and mains syllabus right now. So what are your main priorities right now? To succeed in UPSC-CSE Prelims 2022, you have to check all these boxes in terms of preparation—
You need clear strategy for next 150 days.
You need to revise effectively to remember whole syllabus at the eve of exam.
You need to practice lots of tests to score accurately, to understand elimination techniques and reduce exam anxiety.
You need to revise current affair of 1.5 years that you have been studying daily.
You need a mentor to fill the critical gaps that have been ignoring till now as you had no one to address them for you.
Santhosh Sir’s Weekly Zoom Session
Do you want to have a mentor who conducts and evaluates medium to advanced test series regularly? A mentor explains to you the different kinds of elimination techniques after you have taken a test series. Before attending a test do you want the mentor to discuss with you the study materials required for the test and provide the right notes with integrated current affairs? While studying a subject, you might have umpteen number of questions. Having someone who responds quickly and explains the topics in simple terms saves your time. And, after a test do you want an experienced mentor to discuss the right answers and motivate you? Do you want the mentor to provide you classes on static+dynamic prelims topics? If yes, then this is the right program for you! The registrations are open for all UPSC 2022 aspirants
Self Preparation with Mentorship: What do Civilsdaily Students think of Santosh Sir’s Mentorship for UPSC-CSE Prelims?
Santhosh Sir, Core Civilsdaily Mentor. He has attended Interview Thrice & Cleared Prelims 6/6 times with above 145 marks.
We asked Santosh sir’s students about their opinion on mentorship — if it was something that saved their time or wasted their time in studies and this is what they had to say:
Kamini: “If I can say in one word, then Santosh sir’s mentorship is unique. Before I joined his program, I used to score 90 marks in Full Length Test Series. Santhosh sir had done in depth analysis of my test papers and suggested ways to reduce the negatives. Right now I am able to score 100+ in advanced test series of not only Civilsdaily but other institutes. He is always available to clear my doubts and solve my issues on call or phone. No issue is too big enough for Santosh sir. He has always told me after you finish a test series, read the same topics again and take another test series the same day to see if your marks improve. From Santosh sir’s polity and economic survey notes, we got questions in 2021 Prelims. I always feel its better to do self studies with mentorship than join coaching institutes and get spoon fed with information.”
Sweetie Raj: “I am a banking professional, living with a joint family. Attending coaching classes is out of question because I won’t have time to read the books myself. Santosh sir helps me self-study by providing me mentorship daily. I study daily from 9PM to 3AM. Santosh sir has been available for 1 hour strategy calls even during this time. No other teacher would have wanted me to succeed as much as he wants me to. I can understand concepts by myself and don’t need help in that. I want someone who pushes me to complete the target modules, checks if I did my mains answer writing for the day and analyses the previous year question papers with me. Because of Santosh sir, I understood that its just not enough reading one book but at the same time I dont have to waste time reading many books. He tells me the topic-wise sources to refer. Also he has designed a study plan for me that I can follow every week. Once, I told Santhosh sir I was missing test series discussion classes as it was conducted at 7PM. Immediately, he provided me recorded videos and kept the session at 8.30PM.”
Specific Features of Smash Prelims 2022 by Santosh Sir
Sincere aspirants who are scoring in the range of 80-90 marks must not attend last minute crash courses right now. They should instead focus on self revision, test series practice and guided mentorship to qualify for UPSC Prelims 2022. Here are the features of Prelims Focused Program by Civilsdaily —
Pillar-1
PRELIMS TESTS:
40 Full Length Tests(12 Basic + 6 Advanced + 10 CA tests + 8 Full tests + 4 CSAT).
In addition to this, in the month of January, we will have 60 sectional tests for practice. This will have 50 questions each. Hence, totally 100 Test Papers (40 FLTs + 60 Sectional Test Papers)
FIRST TEST WILL START ON JANUARY 15TH. SO, REGISTER ASAP.
VALUE ADDITIONS NOTES AND CLASSES BY VETERAN CIVILSDAILY MENTORS like SUDHANSHU SIR, SAJAL SIR & SUKANYA MA’AM
Polity: Sudhanshu sirwill conduct two sessions covering all the Polity Fundamentals, a session analyzing past year papers, another session on important current affairs related to polity this year and will discuss your test solutions.
History: Santosh Gupta sir will conduct a session on Sectoral Developments in Modern History, a session analyzing past year papers, and test discussion.
Economy: Sajal sir will conduct sessions on economic survey, trend analysis, discussion of most important economic current affairs, past year paper analysis, and economy final test discussion.
Geography: Santosh sir will conduct sessions on the most difficult aspects like Geography Mapping, Economic Geography, and Indian Agriculture.
Environment:Sukanya Ma’amwill cover sessions on Environment innovatively. Key concepts like vegetation and biome, Indian wildlife, conventions and protocols, national parks and sanctuaries, agriculture and sustainable development, and environment current affairs will be covered.
Science & Technology: This year’s prelims paper questioned on the basic concepts of science. Keeping this in mind, Santosh Gupta sir will conduct 2 sessions on One basic concept and current affairs of science and technology.
2. Civilsdaily Current Affairs Magazines for 1 year
3. Civilsdaily compilations of Yojna, Kurukshetra, PRS and RS TV.
4. Civilsdaily Budget And Economic Survey Summary.
5. Handouts on key subject-wise static topics to remember the terms and definitions for Prelims 2022.
Pillar-3
Santosh Gupta sir’s mentorship program
1. Introductory mentor call to every aspirant immediately upon commencement of program.
2. Weekly zoom strategy session by Santosh sir for doubt clearance and continuous improvement.
3. 1-1 mentor calls after 3-4 tests by mentor. After every test series, zoom sessions will be conducted by Birendra sir with all members of the batch for test discussion.
4. Support from mentors on the Habitat Group.
5. Frequent sessions with toppers for support and guidance. will have these special features for aspirants.
6. Mentor will guide on the FCE Approach i.e the Factual and Conceptual Methods of Elimination.
7. Mentor call as per request and mandatory check up call by mentor once a month.
Toppers’ Speak: How Civilsdaily Mentorship Helped Me Clear UPSC?
https://www.youtube.com/watch?v=DSwO38weHAA
About Santosh Gupta Sir
Santosh sir has scored above 140 twice in UPSC prelims and 120 plus in all 6 attempts. He has written all 6 mains and has appeared for Interviews 3 times. He has qualified UPSC EPFO and BPSC 56-59th also. As the Prelims coordinator at Civilsdaily, he has helped 15 out of 25 students clear the prelims examination this year.
Last year, the Supreme Court threw open the hallowed portals of the National Defence Academy for women. Something to truly celebrate on January 15, Army Day, this year.
Background
The first batch of women officers was inducted into the Indian Army in non-medical roles via the Short Service Commission in 1992.
Since 2008, women were inducted as permanent commissioned officers in the legal and education corps and as permanent commissioned officers in eight more non-combative corps in 2020.
The low number of women in Army
As recent as 2020, women officers in the Indian army (excluding the medical corps) numbered just about three per cent.
Compare this to 16 per cent in the US, 15 per cent in France and 10 per cent in both Russia and the UK.
Significance of allowing women to NDA
When in February 2020, the Supreme Court decreed that women officers should get command positions on par with male officers, it also effectively dismissed the military’s earlier objection that it would lead to “operational, practical and cultural problems”.
The SC went on to say that denying women commands based on the above argument was discriminatory and reinforced stereotypes.
Last year, the Supreme Court threw open the National Defence Academy for women to compete for the seats and subsequent permanent commission in the Indian army in any corps they desire, including the combat ones.
Addressing the shortage of officers: This may effectively address the long-standing shortage of officers in the Indian army in general. In response to a question in Rajya Sabha a month ago, the Minister of State for Defence said the Army has a shortage of 7,476 officers.
This torch may also help confront the chauvinism, often misspelt as chivalry, that indisputably exists in the Army.
Conclusion
The move promises to change the composition of this arm of the defence force not just quantitatively, but also qualitatively — both dire requirements of the force at present.
Back2Basics: Permanent Commission (PC) Vs. Short Service Commission (SSC)
SSC means an officer’s career will be of a limited period in the Indian Armed Forces whereas a PC means they shall continue to serve in the Indian Armed Forces, till they retire.
The officers inducted through the SSC usually serve for a period of 14 years.
At the end of 10 years, the officers have three options.
A PC entitles an officer to serve in the Navy till he/she retires unlike SSC, which is currently for 10 years and can be extended by four more years, or a total of 14 years.
They can either select for a PC or opt-out or have the option of a 4-years extension.
They can resign at any time during this period of 4 years extension.
Success in UPSC Civil Services Examination = 50% Knowledge + 50% Strategy. Both knowledge and strategy are important to clear this exam.
You might have finished reading your mandatory standard books, but still is your preparation complete? Do you remember all the important facts in your current affairs syllabus? Have you practised maps yet? Do you know all the important kingdoms in Ancient & Medieval History? Do you have a strong conceptual clarity on the foundational topics of Prelims? Are there any questions you have come across while practising your test series which you want to discuss in a live webinar? Then, register yourself for our next Ask me Anything Session with Prelims Toppers & UPSC Mentors Shubham & Anurag.
Open to All Free Live Q&A Webinar with Prelims Toppers & Civilsdaily Mentors Anurag & Shubham
How long has it been since you revised your GS subjects? First time reading of all books is always easy. In the second and third time readings, you will realise that your recollection of the topics is still sparse. All the topics might seem new, even when they are already read. In the second and third time readings, not only you are expected to write down notes but also start your subject-wise test series. So, how will you fit in revision study plan with your test series and current affairs schedule in the next five months?
Since, there are five months for Prelims exams to begin in 2022, do you think its too early to start CSAT preparation? CSAT, is only a qualifying paper but it definitely is not a piece of cake. In the past two years, questions testing the analytical, reasoning and aptitude skills of candidates have become tougher. Many toppers have had to write Prelims a second time as they had underestimated CSAT the first time. Case in point, is our Civilsdaily student and IPS Officer Shubham Nagargoje.
Most importantly, if you have not yet started UPSC preparation, but still want to give 2022 a decent attempt, then you might be unsure how you can do justice to Prelims preparation in the last five months. Anurag and Shubham sir will draw the correct roadmap for such learners.
Key-Takeaways of Free Live Ask Me Anything Session with Shubham & Anurag Sir
Both Shubham and Anurag sir have attended interview round of UPSC-CSE as aspirants two to three times respectively and cleared the prelims five to six times respectively with a score above 110 marks. In their Q&A webinar, they will be welcoming doubts from all aspirants in these areas —
1. What to target for prelims 2022? For those who have started their UPSC preparation only this month onwards.
2. How to revise GS for Prelims? How to form a test series and revision schedule that are in sync with each other?
3. Is CSAT a child’s play?
4. The different kinds of Mock Tests for Prelims. What are they and where will you find them?
5. Tricky topics of Prelims 2022. What are the topics where questions deviate from the standard sources?
6. Difference in preparation- Prelims vs Mains Preparation. What are the differences when it comes to books, current affairs sources and taking down notes on same topics?
7. Analysing test performance. How to change or increase your topic-wise sources in GS Prelims after taking a test?
Webinar Details
It’s time to level up and revise the same syllabus that took you one year to complete in the next 5 months! We hope this webinar will help all 2022 aspirants implement the suggestions of Shubham and Anurag sir
There has been debate on the issue of MSP with some arguing against it while some favouring it.
The issues with MSP
The broad strands of argument against MSP are:
MSP hinders the price discovery: Providing MSP does not allow the market to discover the prices; if market cleared prices are less than MSP, then the only buyer would be the government; this would render the government bankrupt.
FPO as a mechanism to deal with markets: If markets have any distortions, the way to negotiate it is through Farmer Producer Organisations (FPOs) — as demonstrated by Amul.
Provide income support through DBT: A better way to address the possible income gap is to give an income support-based direct benefit transfer (DBT).
Why MSP is necessary?
1] Barriers in agri-markets
Through tariffs and other measures, we have built a national barrier on markets, where gates are opened on the basis of strategic intent.
If we were to open our borders for free movement of grains from elsewhere, we may even argue for unlocking agricultural land for more lucrative purposes without worrying about food self-sufficiency, buffer stocking and domestic food safety.
We may have to accept a national food safety for at least the essential foodgrains and pulses.
2] Role of MSP as price signalling and why it needs to be given as legal guarantee
Disproportionate risk: If we were to look at farming, we realise that this exposes itself to disproportionate risks.
First, there is no stop-loss mechanism after sowing the seed, except for destroying the crop for the season.
This enterprise not only has the usual business risks but also has the enhanced risk of the force majeure elements that destroy the enterprise — a sudden hail storm, drought, unseasonal showers, a pest attack, a locust attack — there are too many things that the farmer cannot control.
Therefore, an MSP provides a powerful signal to the farmer to exercise the choice of sowing a particular crop because the farmer can back-calculate the expected margin.
If MSP is a signal that helps the farmer to choose a crop, then it must remain a choice at the harvest time as well.
The significance of MSP is only when the markets do not clear the price.
In such a situation, the farmer gets a return less than the MSP and by this argument we are escorting the farm fraternity towards bankruptcy.
A legal guarantee is, therefore, needed.
The argument that the state will have to procure all the floating stock in the market and may become bankrupt is fallacious.
The intervention of the state in the markets usually covers information asymmetry, arbitrage and cools the markets when they get overheated.
3] Why not opt for income support instead of MSP?
Income support does not address the issue of viability of the farming operations.
There is no doubt that we need to make farming viable.
It is important to address the prices of each crop as a strategic signalling mechanism: For crops that would be encouraged and those that would be discouraged.
4] Issues with drawing parallels with AMUL
While the Amul model recognised the inherent power of markets, it took about five decades to make the system competitive — the investments were made in breed improvement, free veterinary services, better cattle feed, capital subsidy for processing plants, and return-free capital as investments.
The nature of subsidies was smart and innovative.
Dairying was the last bit to be liberalised, and it enjoyed protection even when we opened up in 1991.
Way forward
Modernise the markets: We need to modernise the markets and storage and processing facilities.
There is no point in conflating modernisation with liberalisation.
Investment: If we need to take Indian agriculture on the path of Amul, we need to start making those investments now.
Consider the question “What are the objectives of providing MSP? How legal basis to MSP could help in making agriculture viable in India?”
Conclusion
Let us use the MSP framework smartly on diversified crops, on a decentralised basis while we develop the markets. A legal guarantee will only assure the farmers that they will not be bankrupted.
The geopolitics of the Indo-Pacific, which is changing fast. As it moves into 2022, the region will carry the imprint of the past five years, and will have to chart a course through inter-state tensions and crises, using both diplomacy and military preparedness.
What will shape the geopolitics and geoeconomics of the Indo-Pacific?
Key players in the region: The region is central to world economy and peace, and nine countries are key players: the US, China, Japan, India, Germany, the UK, Russia, Australia and France.
The geopolitics and geo-economics of the Indo-Pacific will be largely shaped by the interplay of relations among these nations.
US-China relations: Of paramount importance is the US-China equation.
Expect this relationship to be marked by continually adversarial, competitive and cooperative traits.
Beijing’s south/east China policy, aggressive postures towards Taiwan, human rights violations in Xinjiang, the subjugation of Hong Kong’s citizenry and assertive economic outreach in the Indo-Pacific — these will weigh heavily on US-China relations.
A significant role of groupings and individual nations
In this standoff, the role of new groupings and individual nations is significant.
Role of Quad: Foremost are the Quad, a strategic partnership between the US, India, Japan and Australia and the militaristic AUKUS (Australia, UK, US).
India-Australia ties: Meanwhile, India and Australia are on track to deepen ties, not only bilaterally but also with the other two Quad powers.
The next Quad summit, probably hosted by Japan, will cement the grouping.
EU’s role: The EU’s Indo-Pacific strategy, announced last September, aims at increasing its economic and security profile in, and linkages with, the region.
UK’s role: Only by being more strategic and less mercantilist, more candid and assertive with China, and more cooperative with partners such as India, can the EU — and its former member the UK — hope to become vital players in the Indo-Pacific.
ASEAN, located in the middle of the Indo-Pacific waters, faces the heat of China’s aggression and the sharpening great power rivalry.
It must enhance its realism and shed its tendency of wishing away problems.
Suggestions for India
1]Strengthen the Quad – especially by ensuring that the grouping fulfils its commitment to deliver at least one billion vaccine doses to Indo-Pacific nations by December 2022.
India must protect its established relationship with Russia, and show some resilience in dialogue with Beijing.
2] Enhance relations with ASEAN nations: It must enhance cooperation with key Southeast Asian partners —Indonesia, Vietnam, Philippines and Thailand — while humouring ASEAN as a grouping.
3] Give attention to African and Indian Ocean island states: The eastern and southern planks of Africa and the Indian Ocean island states need continued high policy attention and financial resources.
A clear economic and trade agenda to follow the flag in this vital region, is certain to yield long-term dividends.
Consider the question “Indo-Pacific will present India strategic and economic opportunities that India must not miss. However, the region will have to chart a course through inter-state tensions and crises. Comment.”
Conclusion
India has done well by fulfilling its humanitarian duties during the pandemic. Learning how to convert them smartly into economic and strategic opportunities in its periphery is the focused task for the nation in 2022.
Pakistan’s National Security Committee (NSC) approved the country’s first-ever National Security Policy (NSP) – which is designed to be a “Comprehensive National Security Framework” and covers a five-year period from 2022-26. Pakistan’s (official) policy now leaves the door open for trade with India even without the settlement of the Kashmir issue – provided there is headway in bilateral talks. Earlier, Kashmir used to be at the centre stage of all Pakistani outcry.
New Security Policy
The country’s new policy would act as an umbrella document, to be used as a guideline for Pakistan`s foreign, international and defence related policies.
The five-year-policy document, which will span 2022-26, is being touted by the Pakistan government as the country’s first-ever strategy paper of its kind.
Key highlights of the document
Focus on trade: The 100-page policy document has also put out elaborate plans to open trade and business ties with India.
Silent on Kashmir: Kashmir issue with India has been identified as a ‘vital national policy’ issue for Pakistan.
No public discussion: Only a part of the national security policy will be made public.
Defying hostility with India: The document states that Pakistan is not seeking hostility with India for the next 100 years.
Curbing militancy: The new policy also deals with the issue of militant and dissident groups and advocates dialogue with ‘reconcilable elements.’
No re-conciliation with India: There are no prospects of rapprochement with India under the current government.
Others: On the internal front, the new policy identifies five key areas of population/migration, health, climate and water, food security and gender mainstreaming.
Significance of such policy
Pakistan and India have mostly been at loggerheads with each other throughout history.
During the first term of Narendra Modi in 2014, the relations took a positive turn when he announced his intentions to have cordial relations with Pakistan.
He had also visited Islamabad in 2015 unannounced to attend a marriage ceremony in Ex-PMs family.
However, the relations deteriorated following the horrific 2016 Uri attacks.
Concerns with Pakistan’s National Security Policy
The vision laid out in the policy: There are concerns that this will result in increasing unchecked military control within the country and affect the borer-tensions with India as well.
Increased corruption: The Pakistan Army has never fully exposed the country’s defence spending and it does not allow inspection of its huge network of economic businesses and real estate.
Might increase extremism: There are concerns that Pakistan’s National Security Policy will result in increased radical events of extremism in the wake of challenging the security issues.
Hamper country’s growth: Diverting resources from development to military, in addition to Pakistan’s philosophy and attitude, is seen to hamper the country’s social growth and economic management.
Implications of the National Security Policy of Pakistan on India
The policy hints at peace with other countries, especially in the neighbourhood.
Strategic establishment in India would need to look at the policy in the context of security challenges.
The policy will impact Pakistan’s approach to India as an open-ended subject by changing the military engagements and infrastructure built up along the border areas.
The economic pressures and primacy in the National Security Policy make India review its trade policy towards Pakistan and take advantage of better economic dynamics.
India needs to demarcate a clear distinction between geo-politics and geo-economics in the context of provision of the policy.
The policy is unlikely to bring any change in Pakistan’s active support to cross-border terrorism and position on Kashmir.
China as anchor
Stoutly refusing to open up trade with India, Pakistan has looked to other economic and commercial partners among whom China is by far the most important.
The security relationship was the anchor of the China-Pakistan ties. Now, Pakistan hopes that China will offer its assistance to transform its economy.
It looks to the mechanisms under the China-Pakistan Economic Corridor (CPEC) to play a crucial role through connectivity, port development, power production and other investments.
Factors behind the complex bilateral ties between the two countries
(1) Cross-border Terrorism
Terrorism emanating from territories under Pakistan’s control remains a core concern in bilateral relations.
India has consistently stressed the need for Pakistan to take credible, irreversible and verifiable action to end cross-border terrorism against India.
Pakistan has yet not brought the perpetrators of the Mumbai terror attacks 2008 to justice in the ongoing trials, even after all the evidence have been provided to them.
India has firmly stated that it will not tolerate and comprise on issues regarding national security.
Based on attacks in India and involvement of the neighboring country, the Indian Army had conducted surgical strike at various terrorist launch pads across the Line of Control, as an answer to the attack at the army camp in Uri, Jammu and Kashmir.
India had again hit back over the cross-border terror attack on the convey of Indian security forces in Pulwama by carrying out a successful airstrike at a training camp of JeM in Balakot, Pakistan.
(2) Kashmir
Due to political differences between the two countries, the territorial claim of Kashmir has been the subject of wars in 1947, 1965 and a limited conflict in 1999 and frequent ceasefire violations and promotion of rebellion within the Indian side of Jammu and Kashmir.
The then princely state remains an area of contention and is divided between the two countries by the Line of Control (LoC), which demarcates the ceasefire line agreed post-1947 conflict.
(3) Siachen Glacier
Siachen Glacier is located in Northern Ladakh in the Karakoram Range.
Most of the Siachen Glacier is disputed between India and Pakistan. Before 1984, neither of the two countries had any permanent presence on the glacier.
Under the Shimla Agreement of 1972, the Siachen was called barren and useless. This Agreement also did not specify the boundary between India and Pakistan.
When India got intelligence that Pakistan was going to occupy Siachen Glacier, it launched Operation Meghdoot to reach the glacier first.
Following the success of Operation Meghdoot, the Indian Army obtained the area at a higher altitude and Pakistan army getting a much lower altitude. Thus, India has a strategic advantage in this region.
Following the 2003 armistice treaty between the two countries, firing and bombardment have ceased in this area, though both the sides have stationed their armies in the region.
(4) Sir Creek Dispute
Sir Creek is a 96 km estuary in the Rann of Kutch. Rann of Kutch lies between Gujarat (India) and Sindh (Pakistan).
Pakistan claims the entire Sir Creek in accordance with a 1914 agreement that was signed between the Government of Sindh and Rulers of Kutch.
India, on the other hand, claims that the boundary lies mid-channel as per a 1925 map.
If one country agrees to the other’s position, the former will lose a vast amount of Exclusive Economic Zone that is rich with gas and mineral deposits.
(5) Water disputes
The Indus Waters Treaty is the water distribution treaty signed between India and Pakistan, brokered by World Bank.
According to the treaty, three rivers, Ravi, Sutlej and Beas were given to India for exclusive use and the other three rivers, Sindh, Jhelum and Chenab were given to Pakistan.
This treaty failed to address the dispute since source rivers of Indus Basin were in India, having the potential to create drought and famines in Pakistan.
Last year, Modi Government had stated that India would no longer allow its share of river waters to flow into Pakistan in response to the Pulwama terror attack.
According to the 1960 Indus Waters Treaty, India can exploit rivers under its control without disturbing the flow or quantum. India plans to divert its three rivers to the Yamuna.
Major Achievements
Some of the confidence-building measures taken to improve Indo-Pakistan relations are as follows:
(1) Military CBMs
Agreement on the Prohibition of Attack against Nuclear Installations and Facilities was signed in 1988 and ratified in 1990. The first exchange took place on January 1, 1992.
As per the Agreement, India and Pakistan exchange the list of their nuclear installations to prevent attacking each other’s atomic facilities. This practise has been followed to date.
Agreement on Advance Notification on Military Exercises, Manoeuvres and Troop Movements were brought into effect in 1991 played a crucial role in deescalating the tensions on both sides of the LoC.
A communication link between Pakistan Maritime Security Agency and the Indian Coast Guard was established in 2005 to facilitate the early exchange of information regarding anglers who are apprehended for straying into each other’s waters.
A hotline between the Directors-General of Military Operations (DGMOs) of both the countries have been in effect since 1965 and was used in an unscheduled exchange to discuss troop movements and allay tensions in the aftermath of the 26/11 attacks.
(2) Non-military CBMs
Delhi-Lahore Bus Service was initiated in 1999. It was suspended in the aftermath of the 2001 Indian Parliament Attack.
The bus service was later resumed in 2003 when bilateral relations had improved.
This service was recently suspended in 2019 in the aftermath of the abrogation of Article 370 and 35A of the Indian Constitution.
Samjhauta Express was launched following the signing of the Shimla Agreement connects the Pakistani city of Lahore and the Indian town of Attari.
It had been suspended frequently, but due to negotiations, it was restarted. In 2019, it was suspended after the revocation of the special status of Kashmir.
Weekly Bus Service between Srinagar and Muzaffarabad was initiated in 2005. It has withstood the test of times and still operational.
Since 2014, India has been successful in the repatriation of 2133 Indians from Pakistan’s custody (including fishermen), and still, about 275 Indians are believed to be in their custody
The Bilateral Protocol on Visits to Religious Shrines was signed between the two countries in 1974.
The protocol provides for three Hindu pilgrimages and four Sikh pilgrimages every year to visit 15 shrines in Pakistan while five Pakistan pilgrimage visit shrines in India.
An agreement between India and Pakistan for the facilitation of pilgrims to visit Gurdwara Darbar Sahib Kartarpur, Pakistan, was signed on 24 October 2019 in order to fulfill the long-standing demand of the pilgrims to have easy and smooth access to the holy Gurudwara.
Failures in the CBM process
Although there are hotlines connecting both military and political leaders in both countries, they have been scarcely used when required the most.
The absence of communications has led to suspicions and accusations of misinformation.
There is a disproportionate emphasis on military CBMs and inadequate recognition of several momentous non-military CBMs.
Governments of both sides often use CBMs as political tools to win over specific constituencies, which can be very damaging in the long-run.
Public conciliatory statements, which are meant to be CBMs, can have the opposite effect if they are insincere.
Way Forward
(1) Reforming Pakistan’s political structure
Despite the democratic elections in Pakistan, the military wields real power in the country. This holds true especially on matters of defence, national security and foreign policy.
Pakistan’s Inter-Service Intelligence (ISI), consisting for personnel from Pakistan Armed Forces, is often accused of supporting and training separatist militant groups operating in India.
This makes it highly difficult for India to undertake diplomatic relations with the Pakistani government since it is not the decision-maker in the country.
Thus, a strong political reform in Pakistan, one that focuses on the welfare of the Pakistani nationals is vital to improving its relations with India.
(2) People-to-people relations
Propaganda is currently being used by both sides through the media to justify each other’s stand on conflicting issues.
This is creating misconception, hatred and stereotyping among the people of both countries.
This method is also used for political gains of both nations, with the least consideration towards people’s welfare and the need for peace.
Steps must be taken to facilitate travel between the two countries, ease up visa regimes, provide security for tourists, set up student and faculty exchanges, and invite professionals, intellectuals and artists to events to promote the bilateral ties.
(3) Promote trade
Steps that can be undertaken to improve bilateral trade include:
Remove non-tariff barriers and bureaucratic hurdles that are currently impeding trade.
Cut down duties
Improve customs clearance procedures
Proportionate trade is beneficial for both sides and is possible through the right government policies.
(4) Promoting soft diplomacy
Use of Indus Waters Treaty to promote hydro diplomacy. Both nations can come together to construct Water Grid between their territories to address the water problems in the region.
Cultural diplomacy can be used through the exchange of ideas, values, traditions, and other cultural aspects to strengthen bilateral ties, enhance socio-cultural cooperation and promote individual national interest.
Promotion of Cricket diplomacy i.e., the use of cricket as a diplomatic tool to overcome differences between the two countries.
To a certain extent, soft diplomacy improved the people-to-people relations between the two countries and eased the tensions on both sides.
Training and capacity building in Public Sector Undertakings (PSUs) is an area that is gaining importance, particularly due to rapid advancements in technology and other operational methodologies.
To meet the training needs in the current dynamic scenario, it is imperative that there is synergising of resources and a more active exchange of technical knowledge and other related ideas among PSUs.
What are Public Sector Undertakings (PSUs)?
A state-owned enterprise in India is called a PSU or a public sector enterprise.
These companies are owned by the union government of India or one of the many state or territorial governments or both.
The company stock needs to be majority-owned by the government to be a PSU.
PSUs strictly may be classified as central public sector enterprises (CPSEs) or state level public enterprises (SLPEs).
CPSEs are companies in which the direct holding of the Central Government or other CPSEs is 51% or more.
They are administered by the Ministry of Heavy Industries and Public Enterprises.
Need for Capacity Building of PSUs
PSUs play a multifaceted role in India, laying a solid platform for industrial growth. These firms have contributed to economic prosperity by focusing on infrastructure development and expansion.
Many people have found work as a result of these businesses. PSUs want to boost exports while lowering imports.
Modern procedures and capacity building in the form of functional competencies, knowledge, and attitudes will encourage a culture of efficiency and competitiveness.
Issues with PSUs through years
Economic failure: Inefficient PSU’s were largely responsible for the macro-economic crisis faced by India during 1980’s.
Lack of autonomy: Lack of autonomy, political interference, nepotism & corruption has further deteriorated the situation.
Bureaucratic rigidities: The entire mechanism did not turn out as efficient as it ought to be, all thanks to the prevailing hierarchy and bureaucracy.
Revenue losses: Due to the expenditure on items such as interest payments, wages and salaries of PSU employees and subsidies, the Government is left with hardly any surplus for capital expenditure on social and physical infrastructure.
Lack of Competitiveness: In an era of LPG industrial competitiveness has especially assumed an important role, necessitating privatization or disinvestment of PSUs.
Poor performance: Despite the huge injection of funds in the past decades, the functioning of many public sector units (PSUs) has traditionally been characterized by poor management, slow decision-making procedures, lack of accountability etc.
Also in discussion: Strategic disinvestment of PSUs
The Union Cabinet has approved sale of the government’s stake to cut shareholding in select public sector firms below 51% to boost revenue collections that have been hit by slowing economy.
The following main objectives of disinvestment were outlined:
To reduce the financial burden on the Government.
To improve public finances.
To introduce, competition and market discipline.
To fund growth.
To encourage wider share of ownership.
To depoliticize non-essential services.
Why disinvestment?
Presently, the Government has about Rs. 2 lakh crore locked up in PSUs.
Disinvestment of the Government stake is, thus, far too significant. The importance of disinvestment lies in the utilization of funds for:
Financing the increasing fiscal deficit
Financing large-scale infrastructure development
For investing in the economy to encourage spending
For retiring Government debt- Almost 40-45% of the Centre’s revenue receipts go towards repaying public debt/interest
For social programs like health and education
Way forward for capacity building of PSUs
Collaborative Facilities: There is a need to bring about collaboration between training facilities of various PSUs and create a pool of shared resources. It will create cross-synergization and develop a vibrant pool of common resources to be shared.
Centres of Excellences: Resource training should be institutionalized and two or more training institutes should be designated as “Centres of Excellence”.
Geographic Clusters: Identify geographic clusters where several training institutes from separate fields are located.
Thematic Clusters: There are different institutes offering similar core competencies. Tie-ups between such centres could help create Thematic Centres of Excellence.
Ethics standards: PSUs need to be built as agents of socio-economic growth in society. Training inputs can help in developing a sense of responsibility towards nation-building.
Conclusion
PSUs and banks need to collaborate on capacity building, share resources, identify and strengthen the core competencies. This will optimize resource utilization and have benefits of specialization.
Success in UPSC Civil Services Examination = 50% Knowledge + 50% Strategy. Both knowledge and strategy are important to clear this exam.
You might have finished reading your mandatory standard books, but still is your preparation complete? Do you remember all the important facts in your current affairs syllabus? Have you practised maps yet? Do you know all the important kingdoms in Ancient & Medieval History? Do you have a strong conceptual clarity on the foundational topics of Prelims? Are there any questions you have come across while practising your test series which you want to discuss in a live webinar? Then, register yourself for our next Ask me Anything Session with Prelims Toppers & UPSC Mentors Shubham & Anurag.
Open to All Free Live Q&A Webinar with Prelims Toppers & Civilsdaily Mentors Anurag & Shubham
How long has it been since you revised your GS subjects? First time reading of all books is always easy. In the second and third time readings, you will realise that your recollection of the topics is still sparse. All the topics might seem new, even when they are already read. In the second and third time readings, not only you are expected to write down notes but also start your subject-wise test series. So, how will you fit in revision study plan with your test series and current affairs schedule in the next five months?
Since, there are five months for Prelims exams to begin in 2022, do you think its too early to start CSAT preparation? CSAT, is only a qualifying paper but it definitely is not a piece of cake. In the past two years, questions testing the analytical, reasoning and aptitude skills of candidates have become tougher. Many toppers have had to write Prelims a second time as they had underestimated CSAT the first time. Case in point, is our Civilsdaily student and IPS Officer Shubham Nagargoje.
Most importantly, if you have not yet started UPSC preparation, but still want to give 2022 a decent attempt, then you might be unsure how you can do justice to Prelims preparation in the last five months. Anurag and Shubham sir will draw the correct roadmap for such learners.
Key-Takeaways of Free Live Ask Me Anything Session with Shubham & Anurag Sir
Both Shubham and Anurag sir have attended interview round of UPSC-CSE as aspirants two to three times respectively and cleared the prelims five to six times respectively with a score above 110 marks. In their Q&A webinar, they will be welcoming doubts from all aspirants in these areas —
1. What to target for prelims 2022? For those who have started their UPSC preparation only this month onwards.
2. How to revise GS for Prelims? How to form a test series and revision schedule that are in sync with each other?
3. Is CSAT a child’s play?
4. The different kinds of Mock Tests for Prelims. What are they and where will you find them?
5. Tricky topics of Prelims 2022. What are the topics where questions deviate from the standard sources?
6. Difference in preparation- Prelims vs Mains Preparation. What are the differences when it comes to books, current affairs sources and taking down notes on same topics?
7. Analysing test performance. How to change or increase your topic-wise sources in GS Prelims after taking a test?
Webinar Details
It’s time to level up and revise the same syllabus that took you one year to complete in the next 5 months! We hope this webinar will help all 2022 aspirants implement the suggestions of Shubham and Anurag sir
GS-2 Constitution of India—historical underpinnings, evolution, features, amendments, significant provisions and basic structure; Representation of People’s Act
GS-3 Inclusive growth and issues arising from it; Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
GS-4 Probity in Governance: Concept of public service; Philosophical basis of governance and probity
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