Subject: Polity

Note4Students

Demand for separate states is not new. Recent agitation by gorkhaland activists brought the issue again into the lime light. So this topic is important.

Introduction

The last few years have seen a constant tug of war between the champions of smaller states and larger states. The centre has received demands for India have at least 50 states including a separate Mithilanchal in Bihar, Saurastra in Gujrat, Coorg or, Kodagu in Karnataka, Gondwana in Madhya Pradesh, Mahakosal in Orissa, Bodoland in Assam, Gorkhaland in West Bengal, Vidharba in Maharashtra, Bundelkhand in U.P. and M.P., Haritpradesh and Poornanchal in U.P. Mayawati even proposed to divide Uttar Pradesh into four smaller states – Purvanchal, Bundelkhand, Awadh Pradesh and Pashchim Pradesh.

Analysis

Gorkhaland Issue

1. Darjeeling and Kalimpong districts, particularly the hill portion excluding the southern tehsils of Phansidewa, Kharibari, Siliguri and Matigara, have been in a politically driven near-total civic upsurge since June 12.
2. The provocation was the May 16 decision by West Bengal government to institute a three-language formula in school education throughout the state.
3. Under the formula, Bengali will be compulsorily taught up to Class X, although students would not have to take an examination in the subject.
4. The Bimal Gurung led Gorkha Janamukti Morcha (GJM), which wields substantial political influence over the nearly five lakh Nepali-speaking Gorkha people inhabiting the two districts, is spearheading the ongoing protests. It considers the West Bengal government’s decision a threat to the Gorkha ethno-cultural identity and socio-economic interests.
5. Although the West Bengal government has now withdrawn the controversial order, the GJM has revived an earlier demand for statehood for the Gorkha people.
6. Further, GJM members have not only resigned from the Gorkhaland Territorial Administration (GTA) but the party along with 12 other Gorkha outfits has also decided to render the institution of the GTA non-functional by preventing the holding any further elections to the body.
7. The present Gorkhaland movement is a search and a fight for this lost IDENTITY.
8. Only a separate STATE can give them this IDENTITY and nothing less.

Why there is a demand for smaller sates

1. The issue of language and culture-which had shaped the earlier process of reorganization– shifted to those of better governance and greater participation, administrative convenience, economic viability in the developmental needs of sub regions.
2. There are of course emotional considerations such as culture, language, religion and a sense of economic and regional deprivation.
3. The lack of industry, an agrarian crisis and a low level of infrastructural facilities push such States into adopting a model of development where growth can be achieved in spite of these handicaps.
4. This, as we witnessed with the examples of the three smaller States, results in an unprecedented exploitation of raw materials such as the mining of minerals instead of the creation of industry,
5. wanton land deals, a boost to the construction industry and the conversion of fertile agricultural land into speculative real estate transactions, since agriculture in any case was untenable and non-profitable.
6. Smaller State the only key for better development It’s a well-known fact that creation of smaller state in India had experiences the betterment of Indian economy. The growth of GDP, better governance and development. Therefore, creation of smaller states is the immediate needs for the development of Indian democracy
7. Small states are better in administration and regional differences are not an issue
8. Regional issues such as a, person belonging to another sect may not be in confrontation with a person the resident of the same state but different province and prejudices will decrease and more people of the same small state and same province will have a say in their state affairs.

Arguments Against

1. Creation of smaller state will divide India.
2. The feeling of nationalism would diminish in the cries of regional autonomy. Creation of smaller states will take India to Pre- British era.
3. As for Jharkhand is concerned – worst politics have been going on and as a result it has not able to achieve the desired growth as promised prior to its formation.
4. Bihar on the other hand with its minimal natural resources has been able to achieve second highest GDP after bifurcation.
5. Small states depend to a substantial extent on central government for financial aid.
6. It will not be economically prudent to set up new states as it would incur expenditure to set up state machinery.
7. A new state may find itself lacking in infrastructure, which requires time, money and efforts to build. On the political front too there are many challenges that smaller states have to face, as the dream of new smaller states was ushered in by the leaders need
8. Diversity is too inextricably linked
9. The idea of a modern nation state derives from the idea that its people all have a common identity like a religion or culture. The English inhabit England and the French inhabit France, each one having a multitude of cultural stereotypes.
10. Those countries are used to being a homogeneous society governing the same land for hundreds of years.
11. With India however the diversity and multiculturalism is so connected in Indian culture that the idea of separate sovereign nation states wouldn’t be viable as all Indian states have such a diverse mix of Indians. To create a nation state based on the idea of culture or language in such a diverse society would cause hatred of the outsiders who the natives felt didn’t belong in that state

Way Forward

1. The situation demands that the government needs to handle the issue by better political governance, fiscal management and rule of law.
2. Rather, division of states calls for a thorough evaluation of physical features like land equality and topography, agro-climatic conditions, socio-cultural factors, natural and human resource availability, density of population, means of communication, existing administrative culture and effectiveness of its district and regional administrative units and so on
3. It is a time for a Second States Reorganization Commission that can redraw Indian Federal map, creating many smaller states and keeping in mind economic viability. The current demand for the breaking up of larger states needs to be examined seriously and dispassionately in its historical and contemporary context
4. A more effective autonomous institution could also be considered in the form of an empowered body statutorily on par with 6th Schedule areas and assigned, say, all the functional areas under the State List except law and order, maintenance of infrastructure like national and state highways, power transmission networks and disaster relief establishment.
5. Concomitant revenue raising powers may also be devolved to such an autonomous institution to avoid its undue financial dependence on the state government.
6. Another issue would be the provision of legislative authority to this entity vis-a-vis its functional and territorial jurisdiction. If such a provision existed, the state government would not have been able to implement its controversial decision on the Bengali language in the school curriculum.

Questions:

Q.) Do you think lack of development is the only reason for the demand of new states?

Note4Students/Syllabus Mapping: GS2

The ongoing Qatar crisis threatens to unsettle the regional stability of West Asia along with its multiplier repercussions in the dynamics of the geo-politic of the region. The stability of the west Asian region is not only critical in itself but also plays a crucial role in India’s Look west policy. The stakes are high. The West Asian region deeply mired in Syrian crisis and the deep Sunni-Shia  rivalry of Iran and Saudi has always been a favorite topic for UPSC and Qatar crisis with its implications on India definitely makes it a potential hot topic for 2017 CSE Mains in the context of global geo politics.

 

Qatar Crisis –Issues in context?

1. Qatar crisis is the manifestation of the diplomatic breakdown between Qatar and Saudi Arabia and its allies in the west Asian region that threatens to upset the stability of the region.
2. Four Arab countries out of which three are also the members of Gulf Cooperation Council – Saudi Arabia, the United Arab Emirates and Bahrain along with Egypt  have cut off diplomatic ties with Qatar as well as suspended land, sea, air travel routes to and from the country.
3. Libya, Yemen and Maldives have also joined the diplomatic boycott.
4. Saudi Arabia, Egypt, Bahrain and the United Arab Emirates have handed over a list of 13-point demand list to the Qatari regime
5. The list reportedly demands Qatar to conclude all trade ties with Iran, end military cooperation with Turkey and shut down the Al Jazeera news network.
6. Qatar is however, reluctant to comply with the conditions made by GCC and has remarked the ‘demands’ as ‘non-negotiable’.

 

Trigger points  for Qatar Crisis:

1. Qatar has been accused by Saudi Arab of supporting radical Islamist groups like the Muslim Brotherhood and the ISIS- over the issue of its state sponsored terrorism.
2. Tensions between Qatar and its neighboring countries doubled when the state-run news agency of Qatar ‘Al  Jazeera’ published an article in which the Qatar’s ruling emir, Sheikh Tamin bin Hamad Al Thani was quoted praising Israel and Iran – Saudi Arab’s biggest rivals in the region.
3. The growing closeness of Qatar’s ruling emir and Iran is a sticky point which undermines the hegemony of Saudi Arabia in the region.
4. Qatar’s exclusive and independent foreign policy in the region is a sticking point for Saudi Arabia and its allies, challenging its political clout in the region.

Qatar’s perspective:

1. Amid the ongoing Qatar crisis, Doha has recently implied that although they are looking forward to work together with other Gulf nations, they are reluctant to discuss any measures that impinge the sovereignty of Qatar.
2. Qatar denies that it supports militant organizations, and many experts see the blockade as an attempt by Saudi Arabia to reign in Qatar’s increasingly independent foreign policy.

How does the Qatar crisis impact India?

1. Energy crisis: Half of India’s energy import needs from the Persian Gulf and Qatar, small in size, are the world’s top seller of liquefied natural gas (LNG). Qatar’s dispute with Arab states will most likely put LNG market on the burner.
2. Lobby for sides: Given the risky and volatile conditions of the region, India may be drawn into this ideological war which may disturb the balanced relationship and take part in the “Shia-Sunni”, “Arab-Persian” or “Wahabi-Salafi” divide.
3. Livelihood crisis: With Qatar hosting 2022 FIFA World Cup and many Indian workers are working there in terms of the project related to the World Cup, it threatens the livelihood of around 60000 Indians working there. Indian company L&T have won contracts to construct stadium there.
4. Safety and Security concerns: Apart from that around six million Indians live and work in West Asia and in Qatar in particular, there are 6,00,000 Indian workers. Remittances of this large expatriate community are most likely to be affected too.
5. Rise in air fares: Flying restriction on Qatar will lead to sharp rise of airfares from Doha to India as more Indians are expected to return back home.
6. Tensions may reach backyard:  Since Maldives is involved, there might not be an immediate effect, but if the rift continues and intensifies, there may be negative repercussions for India where Qatar crisis or rather Gulf crisis may reach our backyard.
7. Regional Instability: Energy imports might not get affected until Gulf countries follow through with sanctions but in case of countries like Yemen and Libya, any tensions in these regions will have a consequential impact on thousands of Indian workers.

Way forward:

The Gulf Cooperation Council countries need to negotiate and find a solution keeping the group’s collective agenda in mind. Qatar needs to choose between aligning its policies with those of regional heavyweight. Diplomacy and multi-stakeholder cooperation is the key to the resolution to the ongoing crisis. From the Indian perspective, India should not treat Qatar crisis as Gulf issue and assert its diplomatic ties with Saudi Arabia and UAE to ease the pain of Qatar.

Note4Students

The Union Cabinet has decided to disallow the use of the red beacon on vehicles on India’s roads. Starting May 1, only vehicles on emergency services, such as ambulances, fire trucks and police cars, will be permitted the use of a beacon from now, a blue-coloured one. For this, the Central Motor Vehicles Rules of 1989 are to be amended, so that the Central and State governments lose the power to nominate categories of persons for the red-beacon distinction.

Introduction

In 2013, a Supreme Court bench had asked the central and state government as to how they plan to remove the VIP culture. It had also directed States to amend the Motor Vehicle Rules to restrict the use of the red beacon and impose an exemplary fine on those who misused it. More than 80000 VIPs are given escort by central and state governments. So the challenge is how to stop the security of such personnel from flashing their sirens. The privileges given to MPs, MLAs, judges at various places cause a lot of trouble for public. Even these places like toll plazas and airports have list of exempted people. The President expressed his wish to not be called with various titles and the PM expressed himself as Pradhan Sevak.

Origin/Cause of VIP Culture

This was a part of the colonial hangover. In India, the beacon became a symbol of VIP and public servants who believe in the arm chair bureaucracy. It was the legacy of a mentality of those who served British Government and treated the natives as slaves. Vehicles with beacon lights have no place in a democratic country. People often find these flashing lights as an example of power and VIP status rather than security aids. Even lower-level politicians and officials misuse the beacons to show off their importance, especially in smaller towns. So, this is a welcome step by Government in order to change the culture to reduce the gap between the ruler and those being ruled. Security should be unobtrusive.

Benefits of the decision

1. It is a blow to the colonial hangover of the arm chair bureaucracy and public servants.
2. The Supreme Court in Abhay Singh v. Union of India case termed red beacons a “menace”.
3. It said, red lights symbolise power and a stark differentiation between those who are allowed to use it and those who are not.
4. A large number of those using vehicles with beacon lights really disregard ordinary citizens on the road.
5. SC also cited that the use of beacon lights on the vehicles of public representatives and civil servants has no parallel in the world democracies.
6. This will reduce the trust-deficit and gap between citizens and leaders/administrators.

What more needs to be done

1. It is a symbolic beginning of ending of the VIP culture in India.
2. We must ban the traffic diversions and road blocks when VIPs pass by.
3. Humble behaviour of leaders in western countries should be popularised in India.
4. Attitude change of the leaders is a must here. Rules cannot be made in every possible situations. Hence conscience is the real guide of a person, especially the leaders.
5. Awareness among citizens of their rights and amongst the leaders of their duties.

Conclusion

1. There should be complete rejection of VIP culture. When the ruling classes refuse to imbibe and embody the concept of political equality as a way of life, there seems to be no alternative other than forcing them to be humble before the public. All leaders and administrators should imbibe such democratic values which are the founding stones of the largest democracy. The removal of beacons is a huge democratic decision. Though the implementation will take time and at the same time awareness generation is also important. Beacon lights shouldn’t become status symbol but should be need based. The VIP culture will take time to go away from mind-set but an initiation has been made which was required for a long time.

Questions

Q.) What do you understand by VIP culture? How has it affected governance in the country? Critically analyse.

References

The Hindu

The Indian Express

Note4Students

Debate of patriotism and nationalism gained traction after the judgment of the SC .Critics argued that nationalism is an intrinsic value of behaviour which cannot be enforced through judgements. And such enforcements will not be able to instil the patriotic feeling in the mind of people. So, in the larger perspective, this discussion tries to understand the basic principles of fundamental duties and intrinsic mind set of the people in the light of SC order .

Introduction

1. The Supreme Court directed that all the cinema halls in India shall play the National Anthem before the feature film starts and all present in the hall are obliged to stand up to show respect to the National Anthem..
2. Dipak Misra and Amitava Roy had passed the order while hearing a petition referring to the provisions in the Preventions of Insults of National Honour Act, 1971.
3. Supreme Court referred to clause (a) of Article 51(A), Fundamental Duties, occurring in Part IVA of the Constitution, which reads as follows:

Analysis

DIRECTIVES OF SUPREME COURT

1. There shall be no commercial exploitation to give financial advantage or any kind of benefit
2. There shall not be dramatization of the National Anthem and it should not be included as a part of any variety show. It is because when the National Anthem is sung or played it is imperative on the part of every one present to show due respect and honour.
3. National Anthem or a part of it shall not be printed on any object and also never be displayed in such a manner at such places which may be disgraceful to its status and tantamount to disrespect. It is because when the National Anthem is sung, the concept of protocol associated with it has its inherent roots in National identity, National integrity and Constitutional Patriotism.
4. All the cinema halls in India shall play the National Anthem before the feature film starts and all present in the hall are obliged to stand up to show respect to the National Anthem.
5. Prior to the National Anthem is played or sung in the cinema hall on the screen, the entry and exit doors shall remain closed so that no one can create any kind of disturbance which will amount to disrespect to the National Anthem. After the National Anthem is played or sung, the doors can be opened.
6. When the National Anthem shall be played in the Cinema Halls, it shall be with the National Flag on the screen.
7. The abridged version of the National Anthem made by any one for whatever reason shall not be played or displayed.

Arguments for National Anthem

1. It is clear as crystal that it is the sacred obligation of every citizen to abide by the ideals engrafted in the Constitution. And one such ideal is to show respect for the National Anthem and the National Flag.
2. Constitutional patriotism: The court noted that a time has come, the citizens of the country must realize that they live in a nation and are duty bound to show respect to National Anthem which is the symbol of the Constitutional Patriotism and inherent national quality.
3. It does not allow any different notion or the perception of individual rights that have individually thought of have no space. The idea is constitutionally impermissible
4. The moral values and the national pride is not the obligation of only the armed forces, this is the fundamental duty of all citizens. The Children in the country should be taught lessons in nationalism and patriotism right from the beginning.
5. Infusion of national values: Right from childhood we should inculcate in the minds of our children respect to the great National symbols. If the nation doesn’t exist, we don’t exist. These symbols are the symbols of sovereignty and honour of the nation. Every citizen has the right to uphold it and respect it and that is the reason it has been mentioned in the constitution under Article 51A.

Criticism

1. Past experience: It was mandatory for cinema halls to play the national anthem after every movie in the 1960s after the Indo-China war. And since it was played after the movie, it was a common sight to see people start leaving the theatre while the national anthem was playing, and so the practice was slowly discontinued.
2. The ushers in cinema halls tell us that if the practice is started again, it will again lead to chaos and confusion
3. Understanding the real problem: If the younger generation has been oblivious about national symbols then the fault lies elsewhere. This problem can’t be solved by insisting in cinema theatres to sing National Anthem.
4. One can’t say if we don’t play National Anthem in the cinema theatres we will become less patriotic or less nationalistic.
5. There is no empirical evidence to show that people have become less nationalistic or less patriotic. Whenever nation faces a crisis people rise as one man and defends the nation as we have seen in these many years. This shows people are patriotic.
6. Judicial overreach: This is the domain of the executive and the legislature and not of the Supreme Court. Critics pointed towards the judicial overreach of apex court.
7. The question remains is what if a person can’t stand due to some disabilities.
8. Under Article 142 the Supreme Court decrees and orders are enforceable throughout the country but those are in respect of a cause or matter which comes up for the Supreme Court. There are doubts whether this particular order comes under that category.
9. People have inherent feeling and respect for national symbols, that’s the reasons people spontaneously stand up whenever National Anthem is sung. No one should be enforced or compelled to do that and respect should come within.
10. The Supreme Court used an expression “Constitutional Patriotism” but patriotism cannot be constitutional.
11. Compulsion from an outside source will create certain feelings and adverse reaction which is not good.
12. Our founding fathers of constitution were aware and that is why they also observed that the respect for the nation and its symbols should not be enforced by the state.

Way forward

1. Opinions of people should be taken into account.
2. When national anthem is forced down on millions of people, like this, it detracts from the specialty of the anthem.
3. If court believes that the nationalism is dwindling among the people, SC should direct the government to take serious steps to inculcate patriotism from school level itself.

Questions

“Nationalism should not impose upon the people. It is an intrinsic value of each individual”. Analyse the statement in the light of recent SC judgement on playing national anthem in the cinema hall

 

Note4Students:

There has been lingering issues of inefficiency, pendency of cases and vacancy of judges within the Indian judiciary. Recently union government sought the opinion of attorney general with regards to the AIJS. So discussion over AIJS is important.

Introduction

1. Article 309 of the Constitution deals with the recruitment and conditions of service of persons serving the Union or a State.
2. It empowers the appropriate Legislature to regulate the recruitment and conditions of service of persons appointed to public services and post in connection with the affairs of the Union or of any State.
3. The Constitution was amended in 1977 to provide for an AIJS under Article 312.
4. Under article 312,if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest so to do, Parliament may by law provide for the creation of one or more all-India services (including an all-India judicial service)] common to the Union and the States
5. Earlier recommendations: The first Law Commission recommended the creation of an AIJS.  It opined that such a course is necessary in the interest of efficiency of the subordinate judiciary.
6. This proposal was considered in the Law Ministers’ Conference held in the year 1960, but the proposal was shelved.
7. The 8^th Law Commission while examining the problem of arrears in trial courts, recommended formation of an AIJS.

Analysis

Problems of subordinate judiciary:

1. Vacancies: There are at least 4,400 vacancies for judges in the subordinate judiciary, including for district judges.
2. There always 20 per cent vacancies in the courts.
3. Vacancies are never filled in time because the judiciary is unable to attract talent.
4. Not attractive: Today the subordinate judiciary depends entirely on state recruitment. But the brighter law students do not join the state judicial services because they are not attractive.
5. Career progression: With no career progression, no one with a respectable bar practice wants to become an additional district judge, and deal with the hassles of transfers and postings.
6. Quality : Consequently, the quality of the subordinate judiciary is by and large average, although there are some bright exceptions.
7. By extension, at least one-third of high court judges elevated from the subordinate judiciary are also mostly average. As a result, the litigants are left to suffer.
8. Pendency of cases :As of December 31, 2015, 51.2 per cent of all cases pending in the subordinate courts have been pending for more than two years.

Why AIJS Required

1. Improved quality: It will improve the quality of judicial officers in high courts.
2. Proved quality: One-third of the judges would enter the high courts through the route of promotion from subordinate courts. Judges of the Supreme Court are drawn from the high courts. In this process, the persons eventually selected into the judiciary would be of proven competence.
3. Quality of judgements: Simultaneously, the quality of adjudication and the dispensation of justice would undergo transformative changes across the judicial system, from the lowest to the highest levels. This can have far-reaching impact on the quality of justice and on people’s access to justice as well.
4. Accountability: A career judicial service will make the judiciary more accountable, more professional, and arguably, also more equitable.
5. Time consumption: Well trained and qualified judicial officers would be instrumental to reduce the time required for the litigation.

Recommendations of the National Judicial Pay Commission

1. The AIJS should be constituted only in the cadre of District Judges as per provisions of Article 312 (3) of the Constitution.  The District Judges directly recruited and promoted should constitute the AIJS.
2. The selection for direct recruitment should be by the National Judicial Commission / UPSC and the promotes by the respective High Courts.
3. The qualification for direct recruitment to AIJS should be in conformity with that prescribed under Article 233(2) of the Constitution.
4. Service Judges also should be allowed to compete for recruitment of AIJS, by appropriately amending Article 233(2) of the Constitution.
5. Not exceeding 25% of the posts in the cadre of District Judges in every State should be earmarked for direct recruitment.
6. The age limit for recruitment to AIJS should be between 35 years to 45 years.
7. Appointment: The National Judicial Commission / UPSC, after selecting the candidates for direct recruitment to the cadre of District Judges, must allocate to the States / UTs, the candidates equal to the vacancies that are surrendered by them.
8. The High Court thereupon will recommend those names to the Governor for appointment as per Article 233 of the Constitution.

Arguments against AIJS

1. Status of Legal education: The Bar Council of India has mismanaged legal education. Within this incredibly small talent pool, the judiciary competes by offering unremunerated pay and limited avenues for career advancement.so attractive remuneration will increase the quality of the judicial system.
2. Disadvantages of national exam A “national exam” risks shutting out those from less privileged backgrounds from being able to enter the judicial services
3. Inadequate knowledge of regional language would corrode judicial efficiency both with regard to understanding and appreciating parole evidence pronouncing judgments.
4. Career prospects of state judiciary members: Promotional avenues of the members of the State judiciary would be severely curtailed causing heart burning to those who have already entered the service and manning of the State judicial service would be adversely effected.
5. Statistics from different time period’s :shows that both the decentralised approach of each High Court conducting its own appointment and a centralised one of all India civil services seem to have roughly the same efficacy in filling up the vacancy.
6. Erosion of control of the High Court over subordinate judiciary would impair independence of the judiciary.
7. Overburdened judicial officers If clerical task of judicial officers has removed, entrusted to non-judicial clerks , it will help judges to focus on judicial matters. This will infuse more efficiency. AS per independent studies conducted by Centre for Civil Society and Daksh, clerical tasks constitute almost half of subordinate judges’ time.
8. Source of real experience Richness of judiciary comes from experience and exposure to real cases which the AIJS exam will take away from.

Conclusion

The problems of the Indian judiciary at all levels have reached catastrophic level. The public is losing confidence in the judiciary despite the latter’s assertions. Data show that they are acting on this belief by filing fewer cases year on year. It is likely to be a combination of delays, cost, uncertainty, inefficiency and corruption. So, solution of these problems lies in the identifying a sustainable mechanism of appointment. That mechanism should address the negative aspects of the AIJS and de centralised appointment system.

Questions:

1. Do you support the idea of constituting an “All India Judicial Service .?

2. The constitution of AIJS will solve the problems of judiciary. Critically analyse

 

 

Image Source

Note4students

It is very important for India to defend its IPR. And India wants to protect its rights in world trade.

Introduction

Last year, Indian Government has released India’s National Intellectual Property Rights (IPR) Policy. The Policy which is in compliance with WTO’s (World Trade Organisation) agreement on TRIPS (Trade Related aspects of IPRs), aims to sustain entrepreneurship and boost Prime Minister Narendra Modi’s pet scheme ‘Make in India.’

Why we need this Policy?

1. Global drug brands led by US companies have been pushing for changes to India’s intellectual property rules for quite some time now. They have often complained about India’s price controls and marketing restrictions.
2. Also, an IPR policy is important for the government to formulate incentives in the form of tax concessions to encourage research and development (R&D). It is also critical to strengthen the Make In India, Startup and Digital India schemes.
3. The IPR policy comes at a time when India and other emerging countries faces fresh challenges from the developed world and mega regional trade agreements such as the Trans-Pacific Partnership (TPP).

Aim of the Policy

1. The Policy aims to push IPRs as a marketable financial asset, promote innovation and entrepreneurship, while protecting public interest.
2. The plan will be reviewed every five years in consultation with stakeholders.
3. In order to have strong and effective IPR laws, steps would be taken — including review of existing IP laws — to update and improve them or to remove anomalies and inconsistencies.
4. The policy is entirely compliant with the WTO’s agreement on TRIPS.
5. Special thrust on awareness generation and effective enforcement of IPRs, besides encouragement of IP commercialisation through various incentives.
6. What do Policy say on Interanational Treaties and Agreements?
7. India will engage constructively in the negotiation of international treaties and agreements in consultation with stakeholders.
8. The government will examine accession to some multilateral treaties which are in India’s interest, and become a signatory to those treaties which India has de facto implemented to enable it to participate in their decision making process

Suggestion for DIPP

1. It suggests making the department of industrial policy and promotion (DIPP) the nodal agency for all IPR issues.
2. Copyrights related issues will also come under DIPP’s ambit from that of the Human Resource Development (HRD) Ministry.
3. On Compulsory Licensing – According to the policy, India will retain the right to issue so-called compulsory licenses to its drug firms, under “emergency” conditions.
4. Also, the government has indicated that there is no urgent need to change patent laws that are already fully World Trade Organization–compliant.
5. So India has resisted pressure from the US and other Western countries to amend its patent laws.
6. The policy also specifically does not open up Section 3(d) of the Patents Act, which sets the standard for what is considered an invention in India, for reinterpretation.
7. As per the WTO norms, a CL can be invoked by a government allowing a company to produce a patented product without the consent of the patent owner in public interest.
8. Under the Indian Patents Act, a CL can be issued for a drug if the medicine is deemed unaffordable, among other conditions, and the government grants permission to qualified generic drug makers to manufacture it.

Possible Benefits of the Policy

1. The new policy will try to safeguard the interests of rights owners with the wider public interest, while combating infringements of intellectual property rights.
2. By 2017, the window for trademark registration will be brought down to one month. This will help in clearing over 237,000 pending applications in India’s four patent offices.
3. It also seeks to promote R&D through tax benefits available under various laws and simplification of procedures for availing of direct and indirect tax benefits.
4. Unlike earlier where copyright was accorded to only books and publications, the recast regime will cover films, music and industrial drawings. A host of laws will also be streamlined — on semi-conductors, designs, geographical indications, trademarks and patents.
5. The policy also puts a premium on enhancing access to healthcare, food security and environmental protection.
6. Policy will provide both domestic and foreign investors a stable IPR framework in the country. This will promote a holistic and conducive ecosystem to catalyse the full potential of intellectual property for India’s growth and socio–cultural development while protecting public interest.
7. It is expected to lay the future roadmap for intellectual property in India, besides putting in place an institutional mechanism for implementation, monitoring and review. The idea is to incorporate global best practices in the Indian context and adapt to the same.

Question

Q.) “According to the IPR policy, India will retain the right to issue so-called compulsory licenses to its drug firms, under “emergency” conditions.” Discuss the concerns of some of the westerner countries which are against this policy of India

Source:

The Hindu

PIB

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Note4Student:

The deficiencies of UGC have been highlighted by various reports and committees. At such a time, the idea of setting up this body has come forward. Its probable a question might be asked.

Context

With an aim to simplify and consolidate the mass of regulations and compliances that currently operate in the sector, the Central Government has proposed to do away with the All India Council for Technical Education (AICTE) and the University Grants Commission (UGC) and replace them with a single body, tentatively titled Higher Education Empowerment Regulation Agency (HEERA).

What are UGC and AICTE?

UGC (university Grants Commission)

1. The UGC has two primary responsibilities: (a) providing funds to educational institutions; and (b) coordinating, determining and maintaining standards in institutions of higher education.
2. Its main functions are: promoting and coordinating education in universities, determining and maintaining standards for teaching, examination and research in universities, framing regulations on minimum standards for education, disbursing grants to universities and colleges, liaising between the CG, State governments and higher educational institutions, and advising the CG and State governments on possible policy measures to improve higher education in India.

AICTE (All India Council of Technical Education)

1. AICTE is a professional council constituted by the government to govern technical education in India.
2. AICTE’s objectives include: promoting quality in technical education, planning the co-ordination and development of the technical education system and regulation of technical education and maintenance of norms and standards for technical education in India.

Why does India’s higher education need a reform?

1. The idea to have a single higher education regulator is not a new one, but has been recommended by various committees set up by previous governments. While the National Knowledge Commission (2006) had recommended an independent regulatory authority for higher education, the Committee on Renovation and Rejuvenation of Higher Education (2009) had also advocated an apex regulatory body by converging multiple agencies in the field of higher education.
2. The TSR Subramanian committee, which had been tasked with coming up with a new education policy, too called for the scrapping of the UGC and AICTE.
3. The UGC Review Committee in 2014 had also recommended the commission be replaced with an apex institution named National Higher Education Authority.

What will be HEERA’s role and function?

1. HEERA is expected to eliminate the overlaps in the jurisdiction and remove irrelevant regulatory provisions.
2. It will bring the regulation of both technical and non-technical higher education institutions under one umbrella.
3. The way UGC and AICTE have been roundly criticised for their poor handling of higher education so far, HEERA is likely to be structured in a manner that addresses these deficiencies.

Advantages of HEERA:

1. The introduction of a unified regulator for both UGC and AICTE would eliminate all overlaps in jurisdiction and also do away with regulatory provisions that may no longer be relevant.
2. Sponsoring bodies of institutes of higher education would no longer be required to approach multiple authorities for clearances, which is likely to promote ease of development of institutions of higher learning.
3. HEERA is also expected to have sharper teeth than the extant AICTE and UGC: the HEERA Law is likely to empower HEERA to take strict penal action against defaulting institutions.
4. The multiple sets of rules and sub-regulations prescribed by UGC and AICTE, unfortunately, seem to have acted as a deterrent to the development of premier educational institutions would be done away with by setting up of a single body.
5. India has separated technical and non-technical education which is “outmoded and out of sync” with the rest of the world. Having a single regulator would result in better outcomes.
6. Having a single statutory body for higher education will simplify and consolidate the mass of regulations and compliances that currently operate in the sector.

Conclusion:

1. The multiple sets of rules and sub-regulations prescribed by UGC and AICTE, unfortunately, seem to have acted as a deterrent to the development of premier educational institutions. There has long been a need for change in the regime governing higher education in India.
2. The separation between the standards governing technical and non-technical education is seen as unnecessary and illusory. Therefore, the time is ripe for single unified authority for the regulation of higher education in the country.

Present situation

Though, India’s higher education sector needs reforms which are pending since long, the government’s plan to replace the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE) with a single higher education regulator seems to have hit a roadblock with the HRD ministry putting the idea on hold.

Source

http://indianexpress.com/article/education/ugc-aicte-to-be-scrapped-replaced-by-heera-reports-4691511/

http://www.thehindu.com/education/the-heera-conundrum/article19384415.ece

http://www.thehindu.com/education/colleges/new-body-to-replace-ugc-aicte/article18730891.ece

http://www.livemint.com/Education/YitGMlErQCF6PqnJoVWnTI/HRD-plan-to-replace-UGC-AICTE-with-single-regulator-in-limb.html

Question:

Q.1) The higher education reforms in India have been pending since long. Do you think at such a time, the creation of a body like HEERA will be game changing? Examine.

Q.2) In view of the multiple sets of rules and sub-regulations prescribed by UGC and AICTE,  which have unfortunately, acted as a deterrent to the development of premier educational institutions, the time is ripe for single unified authority for the regulation of higher education in the country. In this context, discuss the advantages of HEERA, a proposed body.

Note4Students

Recently the Government amended the RBI Act to hand over the job of monetary policy-making in India to a newly constituted Monetary Policy Committee (MPC). The new MPC is to be a six-member panel that is expected to bring “value and transparency” to rate-setting decisions. It has started to function recently.

Background/ Introduction

1. India’s central bank used to take its monetary policy decisions based on the multiple indicator approach. Its rate decisions were expected to take into account inflation, growth, employment, banking stability and the need for a stable exchange rate.
2. RBI would be subject to hectic lobbying ahead of each policy review and trenchant criticism after it. The Government would clamour for lower rates while consumers bemoaned high inflation. Bank chiefs would want rate cuts, but pensioners would want high rates.
3. The MPC is not new and traces back to 2002 when the Y. V. Reddy Committee recommended for a MPC to decide policy actions. Subsequently, suggestions were made to set up a MPC in 2006 by the Tarapore Committee, in 2007 by the Percy Mistry Committee, in 2009 by the Raghuram Rajan Committeeand then in 2013, both in the report of the Financial Sector Legislative Reforms Commission (FSLRC) and the  Urjit R. Patel (URP) Committee.
4. According to the URP Committee, “Heightened public interest and scrutiny of monetary policy decisions and outcomes has propelled a worldwide movement towards a committee based approach to decision making with a view to bringing in greater transparency and accountability in India.”
5. It suggested that RBI abandon the ‘multiple indicator’ approach and make inflation targeting the primary objective of its monetary policy.
6. The erstwhile technical advisory committee (TAC) that earlier advised the RBI on interest rates. The TAC is made up of external academicians and members from within the RBI, including the governor, and it meets ahead of every monetary policy.
7. The TAC has no voting rights, while the MPC have them. TAC is an advisory committee and the RBI can disregard its advice, which governors have done in several instances.The members of the TAC, which was first constituted in 2005, have had tenures of two years.

Newly Created MPC

1. The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016,  to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth.
2. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.
3. A Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy decisions.
4. The meetings of the Monetary Policy Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting

Composition

1. Altogether, the MPC will have six members – the RBI Governor (Chairperson), the RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board and the remaining three members would represent the Government of India.
2. These Government of India nominees are appointed by the Central Government based on the recommendations of a  search cum selection committee consisting of the cabinet secretary (Chairperson), the RBI Governor,  the secretary of the Department of Economic Affairs, Ministry of Finance, and three experts in the field of economics or banking as nominated by the central government.
3. The three central government nominees will hold office for a period of four years and will not be eligible for re-appointment. These three central government nominees in MPC are mandated to be persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy.
4. RBI Act prohibits appointing any Member of Parliament or Legislature or public servant, or any employee / Board / committee member of RBI or anyone with a conflict of interest with RBI or anybody above the age of 70 to the MPC.
5. The Central government also retains powers to remove any of its nominated members from MPC subject to certain conditions.

Working and Functions of MPC

1. The proceedings of MPC are confidential and the quorum for a meeting shall be four Members, at least one of them shall be the Governor and in his/her absence, the Deputy Governor who is the Member of the MPC.
2. The MPC takes decisions based on majority vote (by those who are present and voting). In case of a tie, the RBI governor will have the second or casting vote. The decision of the Committee would be binding on the RBI.
3. As per the Act, RBI has to organise at least four meetings of the MPC in a year. (More meetings can be held if the RBI Governor is of that opinion)
4. The government may, if it considers necessary, convey its views, in writing, to the MPC from time to time.
5. RBI is mandated to furnish necessary information to the MPC to facilitate their decision making and if any Member of the MPC, at any time, requests the RBI for additional information, including any data, models or analysis, the same have to be provided, not just to that member but to all members.

International Comparisons:

1. With the introduction of the monetary policy committee, the RBI will follow a system similar to the one followed by most global central banks.
2. The US Federal Reserve sets its benchmark fund rate through the Federal Open Market Committee(FOMC). The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations.
3. Bank of England also has a MPCto decide the official interest rate in the United Kingdom . The MPC meets every month to set the interest rate and meets over three days.  A representative from the Treasury also sits with the Committee at its meetings. The purpose is to ensure that the MPC is fully briefed on fiscal policy developments and other aspects of the Government’s economic policies.

Conclusion

1. Till now RBI was having complete autonomy over monetary policy rates. But now the same will be decided by MPC, in which RBI as half member including presiding officer.  Though to some extent autonomy of RBI reduced, but still RBI remains in charge of monetary policy decisions.
2. Monetary policy of Reserve Bank of India will go under review in October. This is the first time monetary policy review will held under the new regime of a monetary policy committee.

MODEL QUESTIONS

Q. Why a new institution named Monetary Policy Commission was given with the responsibility of monetary policy?

Q. The Monetary Policy is one of the most important decision in a country. The new institution will collectively decide and implement the monetary policy in a better manner. Comment.

References:

• http://www.arthapedia.in/index.php?title=Monetary_Policy_Committee_(MPC)
• http://www.livemint.com/Opinion/SSiMaHHRH5VFzGOAISg4KL/The-evolving-monetary-policy-committee-culture.html
• http://pib.nic.in/newsite/PrintRelease.aspx?relid=151264
• http://www.thehindubusinessline.com/opinion/columns/slate/all-you-wanted-to-know-about-monetary-policy-committee/article8807786.ece

 

Note4Students

Creating employment opportunities is a challenge for every reigning government. Indian has ranked 130th in 2017 Ease of Doing Business index.it is important to take necessary actions to transform India into a business friendly destination. This will attract more FDI and create more job opportunities. So abolition of FIPB deserves deeper analysis.

Introduction

The Foreign Investment Promotion Board (FIPB) was a national agency of Government of India, with the remit to consider and recommend foreign direct investment (FDI) which does not come under the automatic route.

It acted as a single window clearance for proposals on foreign direct investment (FDI) in India. The Foreign Investment Promotion Board (FIPB) was housed in the Department of Economic Affairs, Ministry of Finance.

Recent Developments

The Union Cabinet approved phasing out of the 25-year-old Foreign Investment Promotion Board (FIPB)

Successor mechanism

The Department of Industrial Policy and Promotion (DIPP) under the Commerce ministry will be in charge of its successor mechanism.

This includes the old FIPB portal that has now been placed under the DIPP under a new name – the Foreign Investment Facilitation Portal

Henceforth, the work relating to processing of applications for FDI and approval of the Government thereon under the extant FDI Policy and Foreign Exchange Management Act, shall now be handled by the concerned Ministries/Departments in consultation with the Department of Industrial Policy & Promotion (or the DIPP, in the) Ministry of Commerce, which will also issue the Standard Operating Procedure for processing of applications and decision of the Government under the extant FDI policy.

National Security

1. In cases of applications where there are security concerns, the home ministry’s approval will be required.

Analysis

Reasoning behind the abolition

1. ‘Maximum Governance and Minimum Government The move to phase out the FIPB is aimed at making India a more attractive FDI destination and increasing FDI inflows by providing greater ease of doing business and promoting the ‘Maximum Governance and Minimum Government’ principle.

Diminished Importance

1. FIPB was the epitome of license raj, where powerful bureaucrats decided the fate of a foreign investor willing to pump in precious foreign investment into India.
2. But in today’s more liberalised India, the FIPB’s role had already shrunk considerably, especially after the Narendra Modi government further relaxed FDI norms for many sectors last year.
3. Currently around 91-95% of FDI inflow happens through the automatic route, adding that there are only 11 sectors (including defence and retail) needing government approval.
4. The FIPB has successfully implemented e-filing and online processing of FDI applications.

Concerns And Challenges

1. The Office Memorandum made Department of Industrial Policy & Promotion (DIPP) as the nodal agency for coordinating FDI proposals requiring government approval and entrusted it with the task of preparing and issuing a standard operating procedure (SOP) for processing the FDI applications.
2. it is encouraging to see that SOP has explicitly provided timelines for all ministries/ departments involved at different stages, there still remains scope where these timelines are not strictly binding
3. While the cabinet’s decision is seen as a simplification of the existing procedure to seek clearance on FDI proposals, experts have also raised doubts whether line ministries are equipped to take such decisions on an expedited manner.

Liberising norms

1. Cumbersome rules, not the FIPB, have been responsible for a less than enthusiastic response from foreign investors in some sectors.
2. For instance, global insurers can hold up to 49% ownership in Indian ventures but only if Indians retain management and control over these entities — this is an onerous definition of control that has inhibited deal-making. Despite allowing 100% FDI in food retail, rules prohibit foreign players from using a small fraction of their shelf space for non-food items, affecting investment plans. This, in a sector that can create millions of jobs and boost farm incomes.
3. Archaic land acquisition and labour laws continue to make it difficult for large factories to come up.
4. If the government considers liberalising the norms for foreign investors in the wake of the recent Tata-Docomo dispute, it would go a long way towards creation of a far more stable investor-friendly taxation regime that will bolster investor confidence.

Conclusion

1. FIPB has been handling the task of approving and vetting FDI proposals for more than 25 years, it will be interesting to see how the new authorities fill its shoes under the new regime.
2. While initial glitches within the ministry or while coordinating between different designated authorities are expected, DIPP is expected to assume a pro-active approach and hand-holding them to settle down in the new set-up and deliver the expectations of the business community efficiently.
3. “Abolition of FIPB will propel the inflow of FD”I-comment
4. “India needs to create a business friendly eco system to reduce the unemployment.” Analyse the statement in the light of abolition of FIPB

Note4Students

Demonetization was a bold step by the union government. It affected every walk of life. Demonetisation should be scrutinized to understand the impact. So understanding various macro-economic parameters pertain to demonetisation would help to realise the state of economy in general and goal achievements of demonetisation in particular.

Introduction

Every policy has a stated goal as well as secondary consequences, some of which are unintended. It is still quite possible that demonetisation will have positive consequences over a longer period—the growth in the direct tax base, the switch in the financial holdings of households from cash to bank deposits, the increased use of digital payments. That is what its supporters are now banking on. The question to be asked is whether the potential long-term benefits will be greater than the short-term costs that the Indian economy had to bear.

Fact sheet

1. The Annual Report of RBI shows that during the year 2016-’17, Rs 41.5 crores worth of fake currency notes in the form of old Rs 500 and Rs 1,000 notes were detected in the banking system.
2. This is well above the Rs 27.4 crores of fake currency detected in these denominations in 2015-’16.
3. The estimate of the total fake currency in the system was Rs 400 crores. It is safe to say that fake currency in Rs 500 and Rs 1,000 denominations was eliminated as those notes can no longer be used anywhere.
4. However, counterfeits of new Rs 500 and Rs 2,000 notes are already being intercepted, which suggests that the elimination of fake currency is not a lasting benefit and perhaps alternative approaches are required to address this problem.
5. 98.96% of the Rs15.44 trillion notes invalidated by demonetisation had been deposited with banks.
6. With limited fiscal and monetary space, any big bang stimulus is unlikely. Inflation is expected to breach 4% mark in January-March 2018. In order to match last fiscal’s growth performance (7.1%), the economy has to grow an average rate of 7.6% in next three-quarters, which presently appears to be difficult.

Analysis

Achievements

1. Increase in tax collection: As a result of demonetization drive, there is a substantial increase in the number of Income Tax Returns (ITRs) filed. The number of Returns filed as on August 5, 2017 registered an increase of 24.7% compared to a growth rate of 9.9% in the previous year.
2. Curb on Black money: Transactions of more than 3 lakh registered companies are under the radar of suspicion while one lakh companies were struck off the list. The government has already identified more than 37000 shell companies which were engaged in hiding black money and hawala transactions. Around 163 companies which were listed on the exchange platforms were suspended from trading, pending submission of proof documents.
3. Impact on terrorism and naxalism
   i. As a result of demonetization of SBNs, terrorist and naxalite financing stopped almost entirely.
   ii. No high quality FICN was found / seized by intelligence operations, including at the Indo-Bangladesh Border since demonetization.
   iii.Further, it also adversely affected the hawala operators and dabba trading venues.
4. Promoted Digital Payment: In 2015-16, the value of transactions for debit and credit cards was ₹1.6 lakh crore and ₹2.4 lakh crore, respectively; in 2016-17, it was ₹3.3 lakh crore for each. Also, in 2016, the National Electronic Funds Transfer handled 160 crore transactions valued at ₹120 lakh crore, up from around 130 crore transactions worth ₹83 lakh crore in the previous year. Note that the demonetisation impact would only have been registered in the final four to five of 2016-17. The gains in 2017-18 will be even more.

Drawbacks

FIGURE: growth slow down

Black money

1. . It was thought that if cash was squeezed out, the black economy would be eliminated.
2. But cash is only one component of black wealth: about 1% of it.
3. It has now been confirmed that 98.8% of demonetised currency has come back to the Reserve Bank of India.
4. Further, of the ₹16,000 crore that is still out, most of it is accounted for. In brief, not even 0.01% of black money has been extinguished.
5. Black money is a result of black income generation. This is produced by various means which are not affected by the one-shot squeezing out of cash. Any black cash squeezed out by demonetisation would then quickly get regenerated. So, there is little impact of demonetisation on the black economy, on either wealth or incomes

GDP growth

1. GDP growth in the first quarter of 2017-18, at 5.7 per cent, compared with 7.9% in the same quarter a year ago, was way lower than consensus estimates by Reuters (6.6%) and Bloomberg (6.5%). Both supply and demand were impacted due to a combination of demonetisation
2. The big failure of demonetisation is that it was carried out without preparation and caused big losses to the unorganised sector. This has not been factored into the recent data on growth rate, so the loss to the economy would be in lakhs of crores of rupees. Farmers, traders and the youth are all agitating.

Agriculture

1. Another factor that did not support growth as anticipated is agriculture, particularly in view of the record food grain production in 2016-17.
2. Agricultural growth declined to 2.3% from 5.2% in January-March 2017 and 2.5% in April-June 2016. In view of record foodgrain production, it appears the shortfall is mainly due to the underperformance of allied sectors, namely dairy, fisheries etc.
3. The main negative economic consequence of demonetisation has been the disruption of unorganized supply chains that are dependent on cash transactions; it is still not clear how smoothly they were being rebuilt as the economy was remonetized.
4. RBI annual report shows a rather dramatic spike in the number of suspicious transaction reports filed by banks, financial institutions and intermediaries in 2016-17—it was up from 61,361 in the previous year to a staggering 361,214.

Job Loss

Demonetization decision may have resulted in the loss of roughly 1.5 million jobs, according to survey data put out by the Centre for Monitoring Indian Economy (CMIE). CMIE’s data is based on the result of consecutive waves of household surveys performed from January 2016 to April 2017 .

Monetary policy

1. The RBI formally became an inflation targeting central bank in 2016 but the liquidity surge in the banking system that came about in the aftermath of demonetisation complicated the conduct of monetary policy.
2. In addition to the conventional reverse repo auctions (an exercise to remove excess cash from the banking system), the RBI introduced an array of instruments to absorb demonetisation induced liquidity from banks.
3. Chief among them was the hike in incremental Cash Reserve Ratio – the percentage of cash deposits that banks must keep with the RBI– at 100% on deposits accrued between September 16 and November 11, and the increase in ceiling on the issuance of securities under Market Stabilisation Bonds.
4. While the increase in incremental Cash Reserve Ratio dented banks’ earnings as banks do not earn interest on the cash reserve parked with the RBI,
5. The issuance of Market Stabilisation Bonds marked a departure from their traditional role. These bonds are generally issued to mop up the excess supply of rupees arising from the RBI’s intervention to purchase dollars.
6. While the increase in these bonds represent an increase in quasi-fiscal cost (the interest payments are made by the government and this shows up as fiscal costs instead of appearing as reduced RBI profits) to the government, the repeated auctioning of such bonds (as the RBI report acknowledges) tends to push up the yields which may be contrary to the stance of monetary policy, which may be accommodative or at best neutral in the present low growth and investment regime.
7. The mopping up of liquidity eroded the RBI’s earnings.
8. Additionally, its expenditure on printing of currency doubled from last year. Overall, while its income for the year decreased by 23.56%, its expenditure increased by 107.8% resulting in a sharp decline in the RBI’s surplus

Conclusion

1. Available data points to a lingering impact of demonetisation.
2. All economic data points are from the organised/corporate sector. The unorganised/informal sector was badly impacted by demonetisation and the present data set has not been able to capture its impact. The annual survey of industries will be able to capture the impact of demonetisation on the unorganised/informal sector, but this will come with a lag. The organised/corporate sector depends on the unorganised/informal sector for provision of intermediate goods and services, which are used in final production. The Central Statistical Office is using only the database of the Ministry of Corporate Affairs. The true picture may emerge only after the annual surveys of industries results are available.
3. Tax reforms and effective monitoring of suspicious transactions are a better alternative for addressing the issues that the policy-makers sought to fix through demonetisation.

Q.) Demonetisation succeeded in achieving its stated objectives. Critically comment