💥UPSC 2027,2028 Mentorship (June Batch) + Access XFactor Notes & Microthemes PDF
Talk to mentor

Civilsdaily

Login

Type: op-ed snap

  • G20 : Economic Cooperation ahead

    India’s Leadership of G-20 and SCO: Challenges and Realities

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India,India & Its Neighborhood – Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: India's presidency of international groupings

    Mains level: Current geopolitical climate, India's g20 presidency, challenges and way ahead

    Central Idea

    • India’s year-long presidency of the G-20 and leadership of the Shanghai Cooperation Organization (SCO) should not create unrealistic expectations about the dividends India can reap from these summits. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. The need for India is to proceed with caution during its presidency.

    Overview of the current geopolitical climate

    • Tensions and distrust between the US-led camp and China/Russia-led camp pose a threat of global conflict.
    • China is on a major diplomatic-cum-strategic offensive across Asia, particularly in West Asia, and is flexing its naval and military muscle in the East and Southeast Asian seas.
    • India is facing challenges due to China’s offensive and its efforts to widen the arc of conflict with India.
    • The situation in Ukraine is fraught, with the US and its allies providing advanced weaponry and training to Ukrainian troops, while Russia is receiving support from its allies.
    • India’s ties with Russia are not necessarily anchored in defense cooperation, and India is looking more to the West, especially the US, for state-of-the-art weaponry.
    • India needs to proceed with caution while holding the presidency of the G-20 and the SCO and balance the contradictory demands of the two institutions and the Global South.

    Reasons for the distrust between the two camps; United States and China/Russia

    • Economic competition: The US and China are in a race for economic and technological supremacy, with both countries vying for dominance in fields such as artificial intelligence, 5G networks, and cybersecurity. This has led to tensions between the two countries.
    • Military competition: The US and China are also in a race for military supremacy, with both countries investing heavily in their armed forces and developing advanced weapons systems. This has led to concerns about a potential arms race between the two countries.
    • Territorial disputes: China has territorial disputes with several countries in the region, including India, Japan, Vietnam, and the Philippines. This has led to tensions and concerns about China’s expansionist policies.
    • Human rights issues: The US and other Western countries have criticized China and Russia for their human rights records, including issues such as the treatment of Uighur Muslims in China and the treatment of political dissidents in Russia. This has led to tensions between these countries and the West.
    • Political influence: The US has accused China and Russia of attempting to interfere in its political processes, including the 2016 US presidential election. This has led to concerns about the countries’ intentions and their influence in other countries.
    • Strategic competition: The US and China/Russia have differing visions for the international order, which has led to strategic competition and tensions between them. The US seeks to uphold the current order, while China and Russia seek to challenge it and establish a new order that reflects their interests and values.
    • COVID-19 pandemic: The COVID-19 pandemic has further exacerbated tensions between the US and China, with both countries blaming each other for the outbreak and its spread.

    Issues for India specifically with China

    • Border disputes: India and China have long-standing border disputes, which have led to multiple conflicts over the years. The recent clashes in the Galwan Valley in June 2020 resulted in the deaths of Indian and Chinese soldiers and have further escalated tensions between the two countries.
    • China’s aggressive behavior: China’s assertive stance and expansionist policies in the South and East China Seas, as well as its attempts to limit India’s influence in the Indian Ocean Region, have led to tensions between the two countries.
    • China’s regional initiatives: China’s regional initiatives such as the China-Pakistan Economic Corridor (CPEC) and the China-Indian Ocean Region Forum are of concern to India as they may limit India’s strategic and economic interests in the region.
    • The Quad: China sees India’s partnership in the Quad (an informal strategic grouping of India, Australia, Japan, and the US) as a threat to its regional ambitions, and has openly criticized the grouping.
    • Cyber warfare and hybrid tactics: India is also concerned about China’s ability to engage in cyber warfare and hybrid tactics, including the adoption of cyber tactics and the ‘politics of water’ by re-directing the Himalayan rivers.

    Other turmoil’s in India’s immediate neighborhood

    • Afghanistan: The situation in Afghanistan appears to be steadily worsening and is now beginning to affect nations on its periphery. India has lost all traction with the Taliban in Afghanistan.
    • Pakistan: The relations between India and Pakistan are strained due to various reasons, including cross-border terrorism.
    • Sri Lanka: The political situation in Sri Lanka has been unstable in recent years, and it has caused concerns for India.
    • Nepal: The political situation in Nepal has been unstable in recent years, with frequent changes in government and disagreements over the new constitution. India has also had strained relations with Nepal over various issues, including border disputes.
    • Myanmar: The military coup in Myanmar in February 2021 has led to widespread protests and violence, causing concerns for India’s security in its Northeast region as well as affecting India’s strategic interests in the region.

    Way ahead

    • Identifying commonalities: India should focus on identifying areas of commonality between the G-20, the SCO, and the Global South, such as sustainable development, climate change, and economic cooperation, and work towards promoting these goals in each forum.
    • Prioritizing issues: India should prioritize the issues that are most important to its national interests, such as regional security and economic development, and work towards finding solutions that are mutually acceptable to all parties.
    • Engaging with all parties: India should engage with all parties in each forum, including the major powers, to ensure that its voice is heard and its interests are taken into account.
    • Building coalitions: India should work towards building coalitions with like-minded countries within each forum, such as other developing countries, to promote its interests and priorities.
    • Developing strategic partnerships: India should develop strategic partnerships with key players in each forum, such as China and Russia in the SCO, to promote regional stability and cooperation.

    Conclusion

    • India needs to be aware of the persisting challenges it faces, tone down the high expectations being generated of reaping a rich dividend from helming the G-20 and the SCO, and proceed with caution. It must chart a course that balances the contradictory demands of the G-20 and the SCO and even more so that of the Global South. India should not claim to have attained its goal of being a global power, as there are many obstacles that have to be overcome before India can achieve its predetermined goal.

    Mains Question

    Q. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. In light of this discuss the issues for India specifically with China and how other turmoil’s in immediate neighborhood compounding the problems for India.

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also Read:

    India could lead the G20 agenda in a unique way

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Digital India Initiatives

    Smart Meters to Bring a Revolution in the Power Sector

    op-ed snap | Economics | Mains Paper 3: S&T – Applications In Everyday Life

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Digitalization of power sector

    Mains level: Power sector reforms, challenges and measures

    Smart Meters

    Central Idea

    • India is replacing conventional electric meters with prepaid smart meters to bring a revolution in the power sector. The majority of smart meter users have begun to experience some of the technology benefits. However, the low uptake of smart meter apps and access to detailed electricity bills are some of the road bumps that need to be solved.

    What are Smart Meters?

    • Smart meters are next-generation digital electricity meters that measure energy consumption and communicate this information back to the utility company in near real-time.
    • Unlike traditional electric meters that require manual reading, smart meters automatically send readings to the utility company, enabling a two-way communication between the meter and the utility.

    A study on Smart Meters

    • A recent study by the Council on Energy, Environment and Water (CEEW) found that the majority of smart meter users have already begun to experience some of the technology benefits.
    • The study covered about 2,700 urban households that use prepaid or postpaid smart meters across six States.
    • Half the users reported improvements in billing regularity, and two-thirds said paying bills had become easier.
    • Around 40% of users alluded to multiple co-benefits such as a greater sense of control over their electricity expenses, a drop in instances of electricity theft, and improved power supply to the locality.
    • In fact, 70% of prepaid smart meter users said they would recommend the technology to their friends and relatives.
    • These findings give confidence that India’s smart metering transition is heading in the right direction.

    Advantages of Smart Meters over traditional electric meters

    • Accurate billing: Smart meters enable accurate billing as they eliminate the need for estimated bills, providing customers with accurate and transparent information about their energy usage.
    • Near real-time data: Smart meters provide near real-time data on energy consumption, enabling customers to monitor their usage and make informed decisions about their energy consumption.
    • Dynamic pricing: Smart meters have the potential to enable dynamic pricing, where electricity tariffs vary depending on the time of day, season or other factors, incentivizing customers to use energy when it’s cheaper and reducing demand during peak hours.
    • Improved energy management: Smart meters allow utilities to better manage energy supply and demand, reduce power outages, and integrate renewable energy sources more effectively.
    • Energy theft detection: Smart meters can help detect and respond to energy theft, reducing losses for utilities and ensuring a fair distribution of energy costs.
    • Customer control: Smart meters provide customers with more control over their energy consumption, allowing them to better manage their energy usage and reduce their bills.

    Challenges in the Smart Meter Deployment

    • High installation costs: The upfront cost of installing smart meters can be significant, and may be a barrier to adoption for utilities or customers.
    • Technical challenges: Installing and integrating smart meters into existing grid infrastructure can be technically complex, requiring significant upgrades to communication networks and other equipment.
    • Data privacy and security: Smart meters collect and transmit sensitive customer data, raising concerns about data privacy and security.
    • User adoption: Encouraging customers to adopt smart meters can be a challenge, particularly if they are unfamiliar with the technology or if there is a lack of education around the benefits of smart meters.
    • Interoperability: Ensuring that smart meters are interoperable with different communication protocols and standards can be a challenge, particularly in areas with multiple utility providers.
    • Regulatory challenges: The regulatory environment can also be a challenge, particularly if regulations around smart meters are unclear or if there is resistance from stakeholders such as utility providers or consumer groups.

    Ways to improve smart meter deployment

    • Education and awareness: Utilities and governments can run awareness campaigns to educate customers about the benefits of smart meters, and how they can help reduce energy consumption and save money. These campaigns should target different socio-economic groups, and provide actionable tips and information on how to use smart meters to their advantage.
    • Co-ownership and collaboration: Utilities and government bodies should collaborate to ensure a smooth installation and recharge experience for users, and leverage smart meter data for revenue protection and consumer engagement. Discoms (distribution companies) should take the driving seat and co-own the program with Advanced Metering Infrastructure Service Providers (AMISPs) who are responsible for installing and operating the AMI system.
    • Innovative and scalable data solutions: Discoms, system integrators, and technology providers should collaborate to devise innovative and scalable data solutions to effectively use smart meter data to unlock their true value proposition. This would require an ecosystem that fosters innovation in analytics, data hosting and sharing platforms, and enables key actors to collaboratively test and scale new solutions.
    • Empower consumers: Policymakers and regulators must strengthen regulations to empower consumers to unlock new retail markets. They must also enable simplification and innovation in tariff design and open the retail market to new business models and prosumagers (producers, consumers, and storage users). Regulations should be put in place concerning phase-out of paper bills, arrear adjustment, frequency of recharge alerts, buffer time, rebates, and data privacy.
    • Interoperability: It is crucial to ensure that smart meters are interoperable with different communication protocols and standards. This can be achieved through standardization, certification, and testing programs.
    • Pilot programs and learning opportunities: Utilities and governments can run pilot programs to test new smart meter technologies and business models, and learn from the results to scale up successful models.

    Smart Meters

    Conclusion

    • India is on a unique journey of meeting its growing electricity demand while decarbonizing its generation sources. Smart meters comprise a critical part of the transition toolbox, by way of enabling responsible consumption, efficient energy management, and cost-effective integration of distributed energy resources. A user-centric design and deployment philosophy will be crucial for the success of India’s smart metering initiative. With the effective implementation, India can improve smart meter deployment and user satisfaction, making the smart-meter revolution a reality.

    Facts for prelims:

    Electricity Regulatory Commissions (ERCs):

    • ERCs are independent statutory bodies established by the government to regulate the generation, transmission, distribution, and trading of electricity in a particular state or region.
    • The primary role of ERCs is to protect the interests of electricity consumers by ensuring that electricity is supplied to them at reasonable and affordable rates while ensuring the financial viability of the electricity sector.
    • ERCs also have the power to issue licenses to power generation and distribution companies, set tariffs, and adjudicate disputes between stakeholders in the electricity sector.

    Mains Question

    Q. India is replacing conventional electric meters with prepaid smart meters to bring a revolution in the power sector. In this light discuss advantages and challenges of deploying smart meters. How India can improve smart meter deployment and user satisfaction, making the smart-meter revolution a reality?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also Read:

    Electricity Amendment Bill 2022 – Addressing the transition and equity

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Foreign Policy Watch: India-Middle East

    CEPA is the Growth Engine For India-UAE Bilateral Trade

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: India-UAE relations and latest developments

    Mains level: One year of India-UAE CEPA, its significance and impact

    CEPA

    Central Idea

    • The India-UAE Comprehensive Economic Partnership Agreement (CEPA) signifies a deep, fraternal, and strategically important relationship between the two countries that goes beyond just economic cooperation. The success of the agreement in stimulating economic growth and providing investment opportunities has unlocked new possibilities for multi-sectoral collaboration and partnerships

    Background: India-UAE relationship

    • Historical ties: The India-UAE relationship has been shaped by centuries of cultural and economic engagement on the Indian Ocean’s network of exchange. The two countries share historical ties that go back to pre-modern times, with Arab traders having visited the west coast of India since the fourth century AD.
    • India’s third-largest trading partner: The UAE emerged as India’s third-largest trading partner, highlighting the two countries’ positive outlook towards economic cooperation.
    • Trade partnership strengthened with oil: The India-UAE partnership was forged first on the trade of traditional items, and then strengthened with oil. It found a formal dimension after the creation of the UAE Federation in 1971, and then accelerated in the 1990s when a liberalised India embraced the opportunity to export to the UAE and markets beyond.
    • Relationship is today more than an economic partnership: It speaks to the Emirates’s deep, fraternal, and strategically important relationship with India, reinforcing the UAE’s position as a key partner in India’s foreign policy. The two countries share strong cultural and people-to-people ties, with a significant Indian diaspora in the UAE.
    • key partner in India’s development agenda: The UAE has been a key partner in India’s development agenda, including investments in the oil and gas sector, renewable energy, and infrastructure. The UAE has also been supportive of India’s efforts in combating terrorism and enhancing security cooperation.

    India- UAE Comprehensive Economic Partnership Agreement (CEPA)

    • The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is a bilateral trade agreement that aims to strengthen economic ties between the two countries.
    • The CEPA covers a wide range of subjects, including trade in goods, trade in services, investment, intellectual property rights, and competition policy.
    • The CEPA has been in the making for several years, with negotiations starting in 2017 and the agreement finally coming into force on May 1, 2022. The agreement builds on the decades of mutual enterprise between the two countries, with the UAE emerging as India’s third-largest trading partner.

    How India- UAE CEPA benefits both the countries?

    • Increased trade: The CEPA is expected to significantly increase trade volumes between India and the UAE, with the potential to create new investment opportunities and increase business partnerships. This will help both countries to diversify their trade relationships beyond their traditional trading partners.
    • Diversified trade: The CEPA covers a wide range of subjects, including trade in goods, trade in services, investment, intellectual property rights, and competition policy, allowing for a more diversified trade relationship between the two countries.
    • Access to new markets: The CEPA is inspiring innovators and investors, catalysing SMEs, startups, and India Inc to make decisive inroads into new markets, particularly the Emirati market, and from there to the Middle East, Africa, and Europe. This will benefit both countries in terms of access to new markets and opportunities.
    • Support for entrepreneurship: The CEPA provides support for startups in both India and the UAE, enabling them to explore growth and diversification into each other’s markets, as well as other markets in the region and beyond. The India-UAE Startup Bridge will also enable them to attract investment from venture capitalists and angel investors.
    • Addressing developmental challenges: The CEPA provides a trade lens to tackle issues such as energy and food security, agriculture, and sustainability, making it a strategic catalyst in addressing vital developmental challenges.

    CEPA

    Facts for prelims: UPI in UAE

    • Indian travelers can now seamlessly make payments in the UAE using the UPI-based apps.
    • National Payments Corporation of India (NPCI) has partnered with the Mashreq Bank’s NEOPAY to enable UPI-based payments in the Gulf Nation.
    • UPI payments will only be possible in UAE shops that have NEOPAY terminals. The user should have a bank account with an Indian bank account along with a mobile app like BHIM that supports UPI payments.
    • Currently, UPI payments are accepted in Bhutan and Nepal. It is likely to go live in Singapore by the end of this year.
    • Back in 2021, the UPI services were launched in Bhutan in collaboration with its central bank, the Royal Monetary Authority.

    Way ahead?

    • Looking ahead, the India-UAE CEPA presents a unique opportunity to further deepen economic and strategic ties between the two countries. Some of the key steps that can be taken to build on the success of the CEPA include:
    • Strengthening infrastructure: India and the UAE can collaborate to strengthen infrastructure, including ports, airports, and logistics networks, to facilitate the movement of goods and people between the two countries.
    • Enhancing cooperation in emerging sectors: The two countries can explore cooperation in emerging sectors such as renewable energy, artificial intelligence, and fintech, among others, to promote innovation and economic growth.
    • Promoting investment: Both India and the UAE can take steps to promote investment in each other’s markets, including through the creation of investment promotion agencies, bilateral investment treaties, and other measures.
    • Strengthening cultural ties: Cultural exchanges and people-to-people contacts can be further enhanced to deepen the historical and cultural ties between the two countries.
    • Addressing developmental challenges: The CEPA provides a platform for addressing key developmental challenges faced by both countries, such as energy and food security, sustainability, and agriculture. Further efforts can be made to leverage this platform to achieve meaningful progress in these areas.

    Conclusion

    • The UAE-India CEPA has unlocked new possibilities for multi-sectoral collaboration and partnerships, leading the nations to build competitive, resilient, sustainable, and vibrant economies.

    Mains Question

    Q. India-UAE completed its one year of Comprehensive Economic Partnership Agreement (CEPA) implementation. In this background discuss impact on the Bilateral Trade.

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    India-UAE Food Security Partnership Stands to Benefit From Multiple Points of Convergence

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Urban Transformation – Smart Cities, AMRUT, etc.

    Aspirational Cities Programme (ACP): A Step in the Right Direction

    op-ed snap | Governance | Mains Paper 1: Population & Associated Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Maharashtra's Aspirational Cities Programme

    Mains level: Urbanization challenges and measures

    ACP

    Central Idea

    • Maharashtra’s Aspirational Cities Programme (ACP) aims to address the challenges of rapid urbanisation by adopting a holistic approach to urban governance. The ACP is set to focus on improved governance, address persistent civic issues, and increase funding avenues for the urban local bodies. The success of the ACP could have a significant impact on Maharashtra’s economy and lead to ease of living in urban areas.

    Urban population of India

    • According to the Census of India 2011, the urban population of India was 377 million, which accounted for 31.16% of the total population. Around 590 million people would live in the cities by 2030.
    • While cities constitute about 3 per cent of the land in the country, they generate 70 per cent of the Gross Domestic Product (GDP) and contribute substantially to economic growth and opportunities.
    • There is a robust relationship between the index of cities’ liveability and the country’s GDP per capita suggesting that long-term growth is only feasible if the city attributes in terms of providing equitable access to basic services, residences, and improved economic management are woven seamlessly through digital service delivery platforms.

    Challenges of urbanization in Maharashtra

    • Deficient Infrastructure: Maharashtra’s cities are grappling with issues of deficient infrastructure, such as inadequate roads, public transport, water supply, and waste management systems.
    • Air Pollution: Urbanization has led to an increase in air pollution in Maharashtra’s cities, primarily due to vehicular emissions and industrial activities.
    • Social Inequities: The growth of informal settlements and slums in Maharashtra’s cities has led to social inequities, with the urban poor lacking access to basic services, such as healthcare, education, and housing.
    • Mobility and Migration: Maharashtra’s cities continue to face the challenge of frequent mobility and migration, with an inward net movement of people for better livelihood opportunities.
    • Vulnerabilities to Disasters and Climate Change: Rapid urbanization has increased the vulnerability of Maharashtra’s cities to disasters and climate change, such as floods and heatwaves.
    • Poor Urban Planning: Many of the challenges faced by Maharashtra’s cities are a result of poor urban planning, with a lack of coordination between various government departments and inadequate implementation of policies and programmes.

    What is Aspirational Cities Programme (ACP)?

    • The Aspirational Cities Programme (ACP) is an initiative of the Government of Maharashtra aimed at addressing the challenges of rapid urbanization in the state by adopting a holistic approach to urban governance.
    • The ACP has identified 57 cities that have been proposed for the programme. Service level benchmarking will be done for the cities based on the data collected on the Performance Assessment System of the Government of Maharashtra.
    • The performance of the 57 selected cities would be monitored and ranked quarterly through a standard digital monitoring platform with indicators on the themes of urban infrastructure, education, urban services, skill development, and climate change.
    • The ACP is based on three priority areas: inclusive urban development, scientific data methods for assessing and monitoring outcomes, and citizen participation in civic affairs.

    ACP

    The Maharashtra government’s Aspirational Cities Programme (ACP) focuses on three priority areas

    1. Inclusive Urban Development: The ACP aims to bring an integrated approach to urban programming that involves all development sectors. This is aimed at ensuring that the benefits of urban development reach all sections of society, including the most vulnerable.
    2. Scientific Data Methods: The ACP seeks to adopt scientific data methods for assessing and monitoring the outcomes of both state and central schemes. This will provide a better understanding of the impact of various policies and programmes on the ground.
    3. Citizen Participation: The ACP aims to enhance the voice and participation of citizens in civic affairs through physical and digital means. This is aimed at ensuring that governance is citizen-centric and responsive to the needs and aspirations of the people.

    Other key features of Maharashtra’s ACP

    • Improved Governance: The ACP is set to focus on improved governance, address persistent civic issues, and increase funding avenues for the urban local bodies. This is aimed at ensuring that the governance of cities is efficient, transparent, and accountable.
    • Service Level Benchmarking: Service level benchmarking will be done for the cities based on the data collected on the Performance Assessment System of the Government of Maharashtra. This will enable the state government to monitor and rank the performance of the 57 selected cities quarterly through a standard digital monitoring platform.
    • Provision of Adequate Potable Tap Water: The ACP agenda includes provisioning adequate potable tap water to all households by taking advantage of the ambitious Jal Jeevan Mission.
    • Reformed Property Tax: The ACP aims to reform property tax by delinking it from the reasonable rental value method and adopting the market value of the property as a base for assessment.

    Facts for prelims

    What is Urban 20 (U20)?

    • Within the G20 ecosystem, a city diplomacy initiative called the Urban 20 (U20) was launched in December 2017.
    • As one of the formal Engagement Groups under G20, the U20 forum was meant to collectively raise critical urban issues of G20 cities during the G20 negotiations.
    • Despite U20’s concerted efforts to run parallel to G20, the absence of any written constitution, procedures, or formal agreement has made U20 unable to effectively address the aspirations and concerns of cities.

    Conclusion

    • It is time to accept the reality that New India is moving from its villages to the cities, and therefore, the need for renewed thinking and policies that are citizen-centric. The ACP is an example of a policy that puts people first as part of urban development. This effort by the Government of Maharashtra is strategically contextualised with the Viksit Bharat vision for India in 2047.

    Mains Question

    Q. New India is moving from its villages to the cities which highlights the need for renewed thinking and policies that are citizen-centric. In light of this discuss how Maharashtra’s Aspirational Cities Programme (ACP) could help to address the challenges of urbanization

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also Read:

    [Sansad TV] Perspective: Urban Planning

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • G20 : Economic Cooperation ahead

    SAI20 and India’s Presidency of G20

    op-ed snap | Economics | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: SAI20 engagement group and India’s presidency

    Mains level: SAI20 and CAG's leadership and sustainable economic growth

    SAI20

    Central Idea

    • Under India’s presidency, the G20 leaders will be focusing on collective progress, equity, and inclusive growth, with the summit theme of One Earth, One Family, One Future. India’s commitment to green development, circular economy, and lifestyle behavior changes aim to achieve the 2030 Sustainable Development Goals. The Comptroller & Auditor General of India (CAG) will chair SAI20, the Engagement Group for Supreme Audit Institutions (SAls) of G20 countries in Goa in June.

    Top Priority areas for SAI20 deliberations Under India’s presidency

    • The Comptroller & Auditor General of India (CAG) will chair SAI20 in Goa in June this year.
    • Two priority areas have been selected for SAI20 deliberation:
    1. Blue economy
    2. Responsible Artificial Intelligence

    What is SAI20?

    • SAI20 stands for Supreme Audit Institutions (SAIs) of G20 countries.
    • It is a forum where SAIs from G20 countries can engage with each other to share their experiences and expertise in auditing public policies and governance practices.
    • The group meets annually to discuss important issues related to public auditing and to develop joint initiatives to promote good governance and accountability in their respective countries.

    What is Blue Economy?

    • Blue Economy is defined by the World Bank as the Sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ecosystem.
    • Gunter Pauli’s book, The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
    • The UN first introduced blue economy at a conference in 2012 and underlined sustainable management, based on the argument that marine ecosystems are more productive when they are healthy. In fact, the UN notes that the Blue Economy is exactly what is needed to implement SDG 14, Life Below Water.
    • The term ‘blue economy’ includes not only ocean-dependent economic development but also inclusive social development and environmental and ecological security.

    Key functions and significance of Supreme Audit Institutions (SAIs)

    • Independent audits: SAIs conduct independent audits of government finances and operations to ensure that public funds are being used in accordance with the law, and that government agencies are operating effectively and efficiently.
    • Promoting transparency and accountability: SAIs promotes transparency and accountability by making audit reports publicly available, and by providing information to the public about government spending and operations.
    • Improving governance: By identifying weaknesses and inefficiencies in government operations, SAIs can help to improve governance and promote more effective use of public resources.
    • Supporting the legislative branch: SAIs supports the legislative branch by providing information and analysis that can help lawmakers make informed decisions about government programs and policies.
    • Ensuring compliance with laws and regulations: SAIs ensure compliance with laws and regulations by reviewing government operations and financial statements to ensure that they comply with applicable laws and regulations.
    • Fostering international cooperation: Through international organizations such as the International Organization of Supreme Audit Institutions (INTOSAI), SAIs collaborates and share best practices with their counterparts in other countries to promote good governance and accountability globally.

    Facts for prelims

    What is Compendium of Asset Accounts of Natural Resources?

    • The Compendium of Asset Accounts of Natural Resources is a comprehensive report prepared by the Comptroller and Auditor General of India (CAG) in line with the United Nations system of Environmental and Economic Accounts.
    • It is the first-ever country-wide compendium of natural resource accounting methodologies and provides a guide for the Indian government to utilize natural resources optimally.
    • The report covers various aspects of natural resources such as forests, minerals, water, and land, and includes accounts of physical quantities, values, and transactions related to these resources.
    • The main objective of the compendium is to improve the management of natural resources and promote sustainable development.

    SAI20

    How CAG can lead the SAI20 engagement group?

    • Setting the agenda: The CAG can set the agenda for SAI20 deliberations, identifying priority areas for discussion and ensuring that they align with the broader goals of the G20 and the United Nations.
    • Providing technical expertise: The CAG can provide technical expertise in auditing and public finance management, which can help other SAIs in the group to develop their capacity and improve their performance.
    • Developing audit toolkits: The CAG can take the lead in developing audit toolkits, which can help SAIs in the group to assess development in coastal stretches, track marine water quality, and promote sustainable development.
    • Building consensus: The CAG can work towards building consensus among SAIs in the group, promoting constructive dialogue and agreement on how to improve auditing of performance in specific areas of ocean-based activities.
    • Strengthening accountability: The CAG can use SAI20 to promote transparency, accountability, and good governance in ocean-based activities, which can help ensure that economic growth benefits are shared fairly across generations.

    Conclusion

    • The toolkits being prepared by SAI20 under the leadership of the CAG of India will be presented at the SAI20 Engagement Group meet, which will provide a unique opportunity for constructive dialogue and agreement to improve auditing of performance in specific areas of ocean-based activities. This collaborative effort would not only build capacity for auditors across SAI20 member countries but also help regional auditing communities by providing a common and replicable auditing tool.

    Mains Question

    Q. The Comptroller & Auditor General of India (CAG) will chair SAI20 (Supreme Audit Institutions) of G20 countries this year. In this light discuss the role of SAI 20 and How CAG can lead the engagement group for sustainable economic growth?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

     Also read:

    Blue Economy: India’s G20 Presidency Offers An Opportunity

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Financial Inclusion in India and Its Challenges

    Contributory Guaranteed Pension Scheme (CGPS): A Considerable Alternative

    op-ed snap | Economics | Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: OPS, NPS and CGPS

    Mains level: Contributory Guaranteed Pension Scheme (CGPS) Analysis

    Scheme

    Central Idea

    • The debate on pensions is heating up as several state governments announce their reversion to the old pension scheme (OPS). However, economists have frowned upon this move, citing two major reasons. Firstly, since the state has to bear the full burden of pensions, it may become fiscally unsustainable in the long run. Secondly, an unsustainable rise in pension allocation in the budget can come at the cost of other welfare expenditures allocated to the poor and marginalized sections.

    What is mean by pension?

    • A pension is a retirement plan that provides a stream of income to individuals after they retire from their job or profession. It can be funded by employers, government agencies, or unions and is designed to ensure a steady income during retirement.

    What is Old Pension Scheme (OPS)?

    • The OPS, also known as the Defined Benefit Pension System, is a pension plan provided by the government for its employees in India.
    • Under the OPS, retired government employees receive a fixed monthly pension based on their last drawn salary and years of service.
    • This pension is funded by the government and paid out of its current revenues, leading to increased pension liabilities.

    Scheme

    What is the National Pension System (NPS)?

    • The Union government under PM Vajpayee took a decision in 2003 to discontinue the old pension scheme and introduced the NPS.
    • The scheme is applicable to all new recruits joining the Central Government service (except armed forces) from April 1, 2004.
    • On the introduction of NPS, the Central Civil Services (Pension) Rules, 1972 was amended.

    What are two arguments against reverting to the old pension scheme?

    • Fiscal Unsustainability: Since the State has to bear the full burden of pensions, it will become fiscally unsustainable in the medium to long run.
    • Trade-Off with Welfare Expenditure: Such an unsustainable rise in pension allocation in the Budget can only come at the cost of other more pressing welfare expenditures allocated to the poor and marginalized sections.

    The commonality between the two arguments

    • Both arguments assume that the fiscal revenues are fixed, which is not necessarily the case if the government has its priorities right.
    • Both arguments assume that unsustainable rise in pension allocation in the Budget can only come at the cost of other more pressing welfare expenditures allocated to the poor and marginalized sections.

    Scheme

    Why Public sector workers are asking for a guaranteed pension in place of the NPS?

    • Fluctuating pension returns: The NPS is market-based, which means that the pension returns fluctuate according to the returns prevailing in the market. This creates uncertainty and makes it difficult for employees to plan for their post-retirement life.
    • Guaranteed pension: Public sector workers are looking for a guaranteed pension that will provide them with a fixed amount after retirement. This will ensure a stable and predictable post-retirement life for them.
    • Employee contribution: In the new contributory guaranteed pension scheme (CGPS), a large part of the pension will be funded by the employees themselves. This is in contrast to the old pension scheme (OPS) where no contribution was required from the employees.
    • Protection against market fluctuations: The CGPS provides protection to employees against market fluctuations. If the market return happens to be higher than the guaranteed pension, the State gets to pocket the difference. On balance, the additional burden on the CGPS may be marginal compared to the NPS.
    • Burden-sharing: The CGPS ensures that the burden of uncertainty does not fall on employees alone. In the OPS, elite workers gain at the cost of their brethren lower on the income ladder. However, in the CGPS, the burden is only the employer’s contribution part, exactly as in the NPS.

    Potential disadvantages of a CGPS

    • Higher contribution burden on employees: Under the CGPS, employees will continue to contribute a fixed percentage of their basic pay towards their pension. This may put a higher burden on them compared to the current system, where their contribution fluctuates based on market returns.
    • Additional administrative burden: Implementing a new pension scheme like CGPS may involve additional administrative burden and costs for the government, which could be challenging to manage efficiently.
    • Uncertainty of market returns: While the CGPS guarantees a fixed pension amount, it does not provide any certainty on the market returns. If the market returns are lower than expected, the government will have to bear the burden of paying the difference between the guaranteed pension and the actual pension.

    Facts for prelims: CGPS vs NPS

    Parameter Contributory Guaranteed Pension Scheme (CGPS) National Pension scheme (NPS)
    Type of Scheme Guaranteed Pension Scheme Market-linked Pension Scheme
    Contributions Made by both employee and employer Made by the employee only
    Pension Amount Guaranteed 50% of the last drawn salary, adjusted for inflation Market-linked, varies according to returns
    Risk Risk is shared by both employee and employer Risk is borne entirely by the employee
    Burden on exchequer Burden is only on the employer’s contribution part Burden is on the entire pension amount
    Upside State gets to pocket the excess if the market return is higher No upside for the State
    Fiscal sustainability Can be sustainable with proper rationalisation of taxes Unsustainable in the medium to long run

    Way ahead

    • The government could consider implementing the Contributory Guaranteed Pension Scheme (CGPS) as an alternative to the New Pension Scheme (NPS) for public sector workers.
    • The CGPS would allow the state to pocket any excess returns from the market, rather than bearing the entire burden of uncertain market returns as in the NPS.
    • The government should consider rationalizing taxes, such as implementing inheritance and wealth taxes, to increase its revenue and reduce its dependence on fixed fiscal revenues.
    • The government should set up a special task force to rationalize pensions and address the issue of pension sustainability in the long run.
    • A possible downside to the CGPS is that it may require a higher contribution from employees, which could affect their take-home pay during their working life. However, this could be addressed by offering tax breaks or other incentives to encourage employees to contribute to the scheme.

    Conclusion

    • The current debate on pensions in India has brought forth the need for a well-designed and sustainable pension scheme that can cater to the needs of public sector workers while being fiscally responsible. The CGPS presents a viable alternative to the OPS and the NPS providing public sector workers with a guaranteed pension after they retire while also being largely funded by the employees themselves. While there may be some challenges in implementing the CGPS, with proper planning and execution, the CGPS could serve as a model for sustainable and equitable pension schemes that can support the growing needs of an ageing workforce in India.

    Mains question

    Q. The debate on pensions is heating up as several state governments announce their reversion to the old pension scheme. Do you think Contributory Guaranteed Pension Scheme (CGPS) presents a viable alternative to the OPS and the NPS?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    Reversal To Old Pension Scheme (OPS): Potential Impact

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Foreign Policy Watch: India-Pacific Island Nations

    Pacific Island Countries (PICs): India’s Development Diplomacy

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Pacific Island countries

    Mains level: Geostrategic significance of Pacific Island countries and India's development diplomacy

    Pacific

    Central Idea

    • Indian Prime Minister Narendra Modi’s visit to Papua New Guinea (PNG) has strategic importance as it marks the Third Forum for India-Pacific Islands Cooperation (FIPIC), which India is co-hosting along with PNG in Port Moresby. India’s involvement with the region is crucial from a geostrategic perspective as it is viewed by the US as a means to counter China in the Indo-Pacific. In this context, India is gradually tuning itself towards the Pacific Island Countries (PICs) by building development partnerships on critical issues.

    Pacific

    Forum for India-Pacific Islands Cooperation (FIPIC)

    • The Forum for India-Pacific Islands Cooperation (FIPIC) is a multilateral grouping that aims to enhance India’s relations with the Pacific Islands region. It was launched in November 2014 during Indian Prime Minister Narendra Modi’s visit to Fiji.
    • The FIPIC includes 14 Pacific Island countries, namely Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.
    • The forum serves as a platform for India to engage with the Pacific Island countries on issues such as climate change, renewable energy, disaster management, health, and education, among others.
    • The forum also provides an opportunity for India to strengthen its strategic presence in the Indo-Pacific region and counter China’s growing influence in the region.

    Why should India focus on Pacific Island Countries (PICs)?

    • Strategic location: The PICs are strategically located in the South Pacific and inhabit almost one-sixth of the world’s population. These islands have occupied common spheres of influence and interest for major superpowers like the US, France, Japan, Australia, and the United Kingdom (UK).
    • Resource-rich region: The PICs are inherently resource-rich in natural minerals and hydrocarbons. They are known for massive biodiversity, diverse ocean life, and extensive mangroves.
    • Countering China: China’s foray into the region in the form of resource extraction, increasing naval presence in the South China Sea, and investments under the Belt and Road Initiative (BRI) has unnerved the neighbourhood. India’s engagement with the Pacific nations is viewed by the US as a means to counter China in the Indo-Pacific.
    • Diplomatic importance: India’s engagement with the PICs is significant for diplomatic reasons, as it can increase India’s influence in the Indo-Pacific region. India’s foreign policy considerations are progressively being structured around the notion of diplomacy for development. This India Way of foreign policy fits well for the larger Global South.
    • Development partnerships: India can build development partnerships with PICs on critical issues including climate resilience, digital health, renewable energy, and disaster risk reduction.
    • Economic opportunities: The PICs offer economic opportunities for India, especially in the areas of green transition and climate change, technology transfer, capacity building, encouraging trade and commerce, etc.

    Pacific

    Facts for prelims: PIC’s

    Region Countries Resources Strategic Importance Physical Location
    Melanesia Fiji, Papua New Guinea, Solomon Islands, Vanuatu Minerals, timber, fish, gold, copper, oil, gas Natural resources, biodiversity, proximity to shipping lanes 1°N to 14°S, 124°E to 168°E
    Micronesia Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau Fish, phosphate, coconut products Strategic military location, control of the Pacific Ocean, climate change impacts 1°N to 11°N, 130°E to 176°E
    Polynesia American Samoa, Cook Islands, French Polynesia, Niue, Samoa, Tonga, Tuvalu, Wallis and Futuna Fish, forestry, agriculture, tourism Tourism, cultural significance, strategic military location 14°S to 27°S, 123°W to 162°E

    What is Development Diplomacy?

    • Development diplomacy is a foreign policy approach that emphasizes cooperation and partnership on development issues with other countries as a means of achieving shared goals and promoting mutual interests.
    • The focus is on building relationships with other nations based on shared values and common objectives, rather than on traditional notions of power and influence.
    • Development diplomacy recognizes the interdependence of nations in an increasingly globalized world, and seeks to create win-win partnerships that benefit all parties involved.

    key initiatives taken by India under Development diplomacy in Papua New Guinea (PNG)

    • Line of Credit: India has offered a $100 million Line of Credit (LoC) to Papua New Guinea for infrastructure development.
    • Climate resilience: India has partnered with PNG for a project aimed at developing climate-resilient agriculture. Under this project, Indian experts are sharing their expertise on climate-resilient agriculture practices and technology transfer.
    • Healthcare: India has offered training for healthcare professionals in PNG, and has also provided medical equipment and supplies.
    • Education: India has offered scholarships to students from PNG to study in India, as well as providing vocational training for PNG youth.
    • Renewable energy: India has partnered with PNG to promote the use of renewable energy sources such as solar and wind power.
    • Capacity building: India has provided training for PNG government officials in areas such as public administration, governance, and disaster management.
    • Trade and commerce: India have sought to enhance trade and investment relations with PNG, including through the promotion of Indian businesses and the facilitation of PNG investment in India.

    Conclusion

    • India’s involvement with the Pacific Island Countries (PICs) is crucial from a geostrategic perspective, as it is viewed by the US as a means to counter China in the Indo-Pacific. India’s unique approach to development cooperation fits well for the larger Global South, and it can be a possible pathway for advancing Southern-driven partnerships in the PICs. With the G20 Presidency giving India leverage as an important economy in world politics, the FIPIC can be viewed as a suitable opportunity for New Delhi to realign itself in the emerging world order.

    Mains Question

    Q. What do you understand by mean Development diplomacy? Why India should increase its focus on pacific island countries?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    The Small Island Developing States (SIDS) in Indian Ocean region (IOR)

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • G20 : Economic Cooperation ahead

    Digitalizing Climate-Smart Agriculture: Framework for G20 Countries

    op-ed snap | Economics | Mains Paper 3: Agriculture and related issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Initiatives for Climate smart agriculture

    Mains level: Climate-smart agriculture, digitalization, role of G20 and way ahead

    Agriculture

    Central Idea

    • Climate-smart agriculture (CSA) is a part of India’s and the G20 countries’ Sustainable Development Goals (SDGs) vision. It is a complex, mega-scale challenge. The objective of CSA is to optimise a country’s agriculture productivity, resilience, and emissions in response to climate change (long-term, irreversible changes in temperature, precipitation, humidity, pressure, and wind). The G20 can play a key role in addressing the challenge of climate-smart agriculture

    What is Climate-smart agriculture (CSA)?

    • Sustainable agricultural practice: Climate-smart agriculture (CSA) refers to the sustainable agricultural practices that help to increase food production and farmer incomes, improve resilience to climate change, and reduce greenhouse gas emissions.
    • CSA aims to achieve three goals simultaneously: (1) sustainably increasing agricultural productivity and incomes, (2) adapting and building resilience to climate change, and (3) reducing and/or removing greenhouse gas emissions, where possible.
    • It involves a combination of strategies, technologies, and policies that are tailored to the specific needs and conditions of each country’s agriculture sector.

    Challenges for Climate-smart agriculture (CSA)

    • Complex and multi-dimensional: CSA is a complex and multi-dimensional challenge that requires integrated solutions, which may be difficult to implement and require significant investments.
    • Lack of awareness and knowledge: Many farmers are not aware of the benefits of CSA and may not have the knowledge or skills to implement it effectively.
    • Access to finance: Financing for CSA practices may be limited, especially for smallholder farmers who may lack collateral or access to credit.
    • Policy and institutional constraints: Policies and institutions may not be aligned to support the adoption and scaling up of CSA practices.
    • Technical and technological challenges: CSA requires the use of appropriate technologies and practices, which may not be available or accessible in some regions.
    • Climate change impacts: The impacts of climate change, such as droughts, floods, and other extreme weather events, may negatively affect the productivity and resilience of agricultural systems, making it difficult to implement CSA practices.
    • Data and information gaps: There may be gaps in data and information on the impacts of CSA practices, making it difficult to assess their effectiveness and scale them up.

    G20’s role in addressing these challenges

    • The G20 must play a key role in addressing the challenge of CSA by adopting the ontological framework, method, and recommendations to set the agenda for research, policy, and practice.
    • The G20 must constitute a committee to formulate a systemic agenda for systematic research, policies, and practices for the digitalisation of CSA in a country using the ontology.
    • The Think20 Engagement Groups provide research and policy advice to the G20 and are ideal forums to develop the ontological framework as the G20 presidency rotates between the member countries each year.
    • The ontology of CSA must be adopted globally as a framework for all G20 countries by adapting the crop and region taxonomies to each country.
    • The G20 committee must help countries collaborate in their efforts, coordinate their policies, and communicate their learnings.
    • The G20 must set the trajectory for the digitalisation of CSA within the G20 and globally and must provide a ‘map’ for the global effort.

    Facts for prelims

    Initiatives

    Description
    National Innovations in Climate Resilient Agriculture (NICRA) A network project launched by the Indian Council of Agricultural Research (ICAR) in 2011 to enhance resilience of Indian agriculture to climate change
    Soil Health Card Scheme Launched in 2015 to provide farmers with information on the nutrient status of their soil and recommend appropriate soil health management practices
    Pradhan Mantri Fasal Bima Yojana Launched in 2016 to provide farmers with insurance coverage and financial support in the event of crop losses due to adverse weather conditions
    Paramparagat Krishi Vikas Yojana Launched in 2015 to promote organic farming practices in India and reduce the use of chemical fertilizers and pesticides
    National Mission for Sustainable Agriculture (NMSA) Launched in 2010 to promote sustainable agriculture practices in India and enhance agricultural productivity and income of farmers
    Rashtriya Krishi Vikas Yojana Launched in 2007 to support agricultural development in India through the provision of financial assistance for various agricultural activities
    National Agriculture Market (e-NAM) Launched in 2016 to create a unified national market for agricultural commodities in India through the use of technology and digital platforms
    Kisan Credit Card Scheme Launched in 1998 to provide farmers with access to affordable credit for agricultural and related activities
    Pradhan Mantri Krishi Sinchai Yojana Launched in 2015 to promote efficient use of water resources in agriculture and enhance water use efficiency in farming
    Zero Budget Natural Farming (ZBNF) A farming practice that aims to eliminate the use of synthetic inputs in agriculture and promote natural farming techniques

    Recommendations to the G20

    1. Outcome Management:
    • Productivity: Encourage the adoption of sustainable soil management practices, provide subsidies and financial incentives for efficient irrigation techniques, and invest in R&D of improved seed varieties.
    • Resilience: Promote crop diversification, develop a comprehensive risk management strategy, and support agroforestry practices.
    • Emissions Management: Develop and implement policies that promote reduced tillage practices, provide financial incentives and support for the adoption of renewable energy technologies, and develop and implement regulations and standards for sustainable livestock management practices.
    1. Regional Management: Utilise digitalisation tools and technologies to effectively differentiate CSA management across regions in India, gather real-time data and information on regional variations, deliver customised and region-specific extension services to farmers, optimise resource use, and facilitate stakeholder engagement and collaboration.
    2. Crop Management:
    • Differentiation of CSA management across crops: Identify the unique agro-ecological and socioeconomic conditions of each crop and design region-specific policies and programmes that promote CSA practices and technologies.
    • Integration of CSA management across crops: Promote the use of integrated crop management practices that focus on optimising resource use, reducing greenhouse gas emissions, and enhancing productivity across multiple crops.
    • Precision crop management: Adopt precision agriculture techniques that utilise real-time data and information to optimise resource use and increase productivity.
    1. Digital Semiotics Management:
    • Collect and analyse weather data: India has a vast network of weather stations across the country that collect data on temperature, precipitation, humidity, pressure, and wind fields. This data can be used to analyse weather patterns and identify trends that affect crop growth and yield. Machine learning algorithms can be used to process the data and provide real-time insights to farmers on weather forecasts, pest and disease outbreaks, and optimal planting and harvesting times.
    • Develop crop-specific models: India has a diverse range of crops grown across different regions, each with unique requirements for temperature, precipitation, and other climatic factors. Crop-specific models can be developed using data and information on climate
    • Promote precision agriculture: Precision agriculture involves the use of digital technologies such as sensors, drones, and satellite imaging to monitor crop health and growth, and provide real-time recommendations to farmers. By incorporating weather data and information into precision agriculture technologies, farmers can make data-driven decisions that are tailored to the local climatic conditions.
    • Build farmer capacity: To effectively use data and information on climate variability, farmers need to have the skills and knowledge to interpret and apply this information to their farming practices. Training programmes and extension services can be developed to build farmer capacity in using digital tools and interpreting weather data. These programmes can be designed to be accessible and affordable to all farmers, including smallholder farmers.

    Agriculture

    Conclusion

    • The digitalisation of CSA requires a roadmap. Addressing the challenge of CSA is a prerequisite to meeting the challenge of food security, and digitalisation is essential to this task. The G20 must set the trajectory for the digitalisation of CSA within the G20 and globally and must provide a map for the global effort to achieve the Sustainable Development Goals vision.

    Mains Question

    Q. What do you understand by mean Climate-smart agriculture (CSA)? Discuss the challenges for CSA and suggest a way ahead for G20 how it can address these challenges?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

     Also read:

    Idea of Urban Agriculture and Use of Technology

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    Oil and Gas Price Volatility: India’s Farsighted Governance

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Read the prelims box

    Mains level: Oil and Gas policy, volatility and measures taken

    Oil and Gas

    Central Idea

    • The present government has taken several measures to protect Indian consumers from international oil and gas price volatility. The recent Cabinet decision to approve a series of critical Administered Price Mechanism (APM) gas pricing reforms will further advance this objective. These reforms aim to protect Indians from extreme price volatility, promote more innovation and investments in exploration and production (E&P), and provide clarity for planned capex investments in gas-based sectors.

    Reasons for oil and gas price volatility

    • Global supply and demand: The balance between global supply and demand for oil and gas is a key factor in price volatility. If there is a surplus of supply, prices may decrease, while if there is a shortage of supply, prices may increase.
    • Geopolitical tensions: Political tensions between countries, such as trade disputes or conflicts, can affect oil and gas prices. For example, if there is a threat of war or supply disruption in a major oil-producing country, prices may rise.
    • Weather conditions: Extreme weather events, such as hurricanes or cold snaps, can impact oil and gas production and distribution, leading to price fluctuations.
    • Economic growth: Economic growth can drive up demand for oil and gas, which can lead to higher prices. Conversely, economic slowdowns can reduce demand and lead to lower prices.
    • OPEC decisions: The Organization of the Petroleum Exporting Countries (OPEC) plays a significant role in global oil prices by controlling production levels. Decisions made by OPEC, such as production cuts or increases, can affect prices.

    Measures taken by the Indian government to protect consumers from oil and gas price volatility?

    • Increasing domestic Administered Price Mechanism (APM) gas allocation: This step was taken to provide more clarity for planned capital expenditure investments in gas-based sectors and diverting gas from non-priority sectors to transport and domestic segments.
    • APM gas pricing reforms: The recent Cabinet decision to approve a series of critical APM gas pricing reforms will further advance the objective of protecting Indian consumers from extreme price volatility. These reforms achieve two major goals: First, to protect Indians from extreme price volatility, and second, to promote more innovation and investments in exploration and production (E&P).
    • Benchmarking APM prices: The government decided to insulate domestic gas consumers as well as national oil companies from such volatility by benchmarking APM prices to a slope of 10 per cent of Indian crude basket price to be determined on a monthly basis, together with a ceiling of $6.5/MMBTU and floor of $4.5/MMBTU for nomination fields.
    • Reduction in fertiliser subsidies: After these reforms, the reduction in fertiliser subsidies is expected to be more than Rs 2,000 crore each year.
    • Incentivising investment in the E&P sector: These reforms will also help incentivise investment in the E&P sector by providing a floor price for mature fields of nomination while also incentivising new wells of nomination fields which will receive 20 per cent higher prices.
    • Expansion of gas pipeline network and CGD stations: Since 2014, India has increased the length of its gas pipeline network from 14,700 km to 22,000 km in 2023. The number of CGD-covered districts in India has increased from 66 in 2014 to 630 in 2023 while CNG stations have gone up from 938 in 2014 to 5,283 in 2023.

    Facts for prelims

    Type of Oil/Gas Production Process Applications Advantages Disadvantages Pollutants
    Crude Oil Extracted from oil wells through drilling Transportation, fuel for power generation, industrial uses High energy density, easy to transport Air pollution, carbon emissions, oil spills Carbon monoxide, nitrogen oxides, sulfur dioxide
    Natural Gas Extracted from gas wells through drilling or extracted alongside crude oil Power generation, heating, cooking, industrial uses Cleanest burning fossil fuel, high energy efficiency Methane emissions, can leak during production and transportation Carbon dioxide, nitrogen oxides
    Liquefied Petroleum Gas (LPG) Extracted during crude oil refining or extracted alongside natural gas Cooking, heating, transportation Clean burning, easy to store and transport Non-renewable, carbon emissions during production and transportation Carbon monoxide, nitrogen oxides
    Compressed Natural Gas (CNG) Extracted alongside crude oil or natural gas Transportation, cooking Lower emissions than petrol and diesel, cost-effective Requires specialized vehicles and refueling stations, less energy-dense than petrol and diesel Carbon monoxide, nitrogen oxides
    Shale Gas Extracted through hydraulic fracturing of shale rock formations Power generation, heating, cooking, industrial uses Abundant, reduces dependence on foreign oil, lower carbon emissions than coal Requires large amounts of water, potential for groundwater contamination, methane leaks Carbon dioxide, nitrogen oxides

    Way ahead for India’s oil and gas sector

    • Encourage and promote domestic oil and gas production: The government should continue to incentivize domestic oil and gas production to reduce dependence on imports and minimize price volatility. This could be achieved by introducing more investor-friendly policies, simplifying regulations, and exploring untapped reserves.
    • Develop a comprehensive energy policy: India needs to develop a comprehensive energy policy that outlines a clear vision for the sector’s development and growth. This policy should take into account environmental concerns, technological advancements, and future energy demands.
    • Increase investment in infrastructure: The government should invest in building critical infrastructure like pipelines, terminals, and storage facilities to improve supply chain efficiency and reduce transportation costs. This will also enable the country to tap into more remote oil and gas reserves.
    • Promote alternative sources of energy: Given the pressing need to reduce greenhouse gas emissions, India should promote alternative sources of energy such as solar, wind, and hydropower. This will not only help in meeting India’s climate goals but also reduce the dependence on fossil fuels.
    • Improve pricing transparency: India should work towards improving pricing transparency in the oil and gas sector. This will help to ensure a level playing field for all players, promote healthy competition, and enable consumers to make informed decisions.
    • Strengthen international partnerships: India should strengthen its partnerships with other countries, particularly those in the Gulf region, to ensure a stable supply of oil and gas. This will also help in diversifying sources of energy and reduce dependence on a few countries.
    • Foster innovation: The government should incentivize research and development in the oil and gas sector to encourage innovation and promote the use of advanced technologies. This could help in improving extraction techniques, reducing environmental impact, and optimizing resource utilization.

    Conclusion

    • India’s efforts to protect its consumers from international oil and gas price volatility are commendable. The recent APM gas pricing reforms will further advance this objective and promote more innovation and investments in exploration and production (E&P) and provide clarity for planned capex investments in gas-based sectors. With a growing demand for natural gas, India is well on its way to realizing a gas-based economy as part of its broader energy transition goals. The vision of a cleaner, greener, and more sustainable energy future for India is steadily becoming a reality.

    Mains question

    Q. Discuss the factors behind Oil and gas sector being volatile. What are the measures taken by the Indian government to protect consumers from oil and gas price volatility?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    What should India do in the current international energy market?

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Foreign Policy Watch: India-China

    India-China Border Tensions: An Assessment of the Current Situation and Proactive Steps for India

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Border states, Places in news, Prelims box

    Mains level: India- China border conflicts and measures

    Border

    Central Idea

    • India needs to take proactive measures to address the ongoing border crisis with China in Ladakh, rather than relying on a status quo approach. The government’s silence and euphemistic language on the issue have given the impression of incompetence and inaction, leading to concerns over India’s capability to handle the situation

    Brief background on the Ladakh border issue

    • The border dispute dates back to the 1950s and 60s, when China made claims to the region and occupied large parts of it.
    • In 1962, the two countries fought a brief war over the issue, which ended in a Chinese victory and the establishment of a de facto border line known as the Line of Actual Control (LAC).
    • Since then, the two countries have had several standoffs and skirmishes in the region, with tensions escalating in recent years. T
    • he latest border standoff in Ladakh began in May 2020 and continues to remain unresolved.

    The Depsang crisis of 2013

    • Depsang Plains of Ladakh: The Depsang crisis of 2013 refers to a tense border standoff between India and China that took place in the Depsang Plains of Ladakh in April-May 2013.
    • Chinese troops set up a camp: The crisis began when Chinese troops set up a camp in the Depsang Plains, which is located about 19 km inside what India considers to be its territory.
    • Strategically important area: The area is strategically important as it overlooks the strategically important Darbuk-Shyok-Daulat Beg Oldie (DSDBO) road that India had built to improve its connectivity to the border areas.
    • Negotiations and agreement over the withdrawal: The situation was resolved after three weeks of negotiations, with the Chinese agreeing to withdraw their troops in exchange for a pledge from India to scale down its military presence in the area.
    • The crisis led to other standoffs: The crisis highlighted the long-standing boundary dispute between India and China, which has led to several other standoffs and skirmishes over the years.

    What is the current situation?

    • The current situation at the Ladakh border is that some areas have witnessed disengagement, while two areas, Depsang and Demchok, remain unresolved. Indian soldiers are not allowed to touch 26 of the 65 patrolling points in Ladakh.
    • Diplomatic meetings and talks between corps commanders have not elicited any progress since September last year. Regular meetings between Indian and Chinese Ministers, Foreign and Defence, have not yielded results either.
    • India needs to find a way to transfer the pressure back to China, as Beijing has never compromised unless it has been forced into an uncomfortable spot.

    Border

    Facts for prelims

    States

    		 Border with China

    Important Passes
    Jammu and Kashmir 1597 km Khardung La Pass, Chang La Pass, Marsimik La Pass, Saser La Pass
    Arunachal Pradesh

     

    		 1126 km

     

    		 Bum La Pass, Kibithu Pass, Tawang
    Uttarakhand 345 km Mana Pass, Lipulekh Pass, Niti Pass
    Sikkim 220 km Nathu La Pass, Jelep La Pass
    Himachal Pradesh 200 km Shipki La Pass, Kaurik Pass

    Way ahead: Steps to transfer the pressure back to China

    • Bold use of imagination: The political leadership needs to use its imagination boldly to find a way to impose its will upon China.
    • Be proactive: India needs to be proactive in dealing with China, as Beijing has never compromised unless it has been forced into an uncomfortable spot.
    • Tactful action on LAC: Tactical actions on the LAC need to be daring, and the military needs to be used as an instrument to pursue policy ends and try to impose its will upon the adversary.
    • Increase strategic thought: Strategic thought in Delhi needs to be bold and innovative to find a way to wrest the initiative from China.
    • Avoid fear of military escalation: India’s fear of military escalation is holding back progress in the Ladakh border issue, and the government needs to overcome this fear to take proactive steps.
    • Utilize diplomatic channels: India should leverage diplomatic channels and international forums to put pressure on China to resolve the border issue.
    • Strengthen domestic capabilities: India should focus on building domestic capabilities, including military and economic, to match up to China’s strengths and position itself better in negotiations.

    Border

    Conclusion

    • India needs to take proactive measures to address the ongoing border crisis with China in Ladakh. A status quo approach can no longer be the answer, and India will have to wrest the initiative from China. Failure to do so would be a national failure for India, and the government must show boldness and imagination to resolve the crisis.

    Mains Question

    Q. India is going through the tough phase over the issues of border with China. In this backdrop discuss what proactive measures that India needs to take considering the current developments situation of the border conflicts?

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    India-China: Border Management Mechanism

    Get an IAS/IPS ranker as your 1: 1 personal mentor