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  • Russian Invasion of Ukraine: Global Implications

    Food Security and Energy Crisis In The South Asian neighbourhood

    op-ed snap | Economics | Mains Paper 3: Inclusive Growth & Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Russia-Ukraine war, global implications , Food and energy cisis

    Central Idea

    • To be sure, the Ukraine-Russia conflict has thrown the energy markets into a crisis in several Global South nations. In addition, the supply cuts by edible-oil exporting countries, alongside the rise in fuel prices, have led to a surge in food prices, making food security a primary concern, especially for the vulnerable sections of society. In addition, China’s COVID-19 surge has dampened global economy, especially in BoB.

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    How the South Asian neighbourhood is in flux?

    • Sri Lanka and Pakistan: Sri Lanka and Pakistan are facing economic headwinds, with the former having gone through a full-blown economic collapse and the latter facing huge external debts, power shortages, and extreme inflation.
    • Bangladesh: The IMF sanctioned a precautionary loan of US $4.7 billion to Bangladesh amidst the precarious macroeconomic situation in the country, with high inflation and volatility of the Bangladeshi Taka.
    • Myanmar: A post-coup Myanmar sees a shutdown of businesses and a massive spike in unemployment.
    • Nepal: Nepal, too, sees widening trade deficits and declining foreign exchange reserves.

    How Russia-Ukraine war challenges Food security?

    • Russia-Ukraine war and the resulting food crisis: Ukraine and Russia play a significant role in the global food supply chains, further affecting low- and middle-income countries and vulnerable populations already grappling with hunger in the post-pandemic world.
    • Wheat suppliers: Since both countries exported more than one-third of the world’s wheat and barley, and about 70 percent of sunflower oil, governments around the world were severely hit as the war stopped exports of around 20 million tons of Ukrainian grain.
    • Agricultural commodities exports to Asia have dried up: An estimated 6 million tons of agricultural commodities were exported monthly to Asia, Africa, and the Middle East. As of June 2022, this number had dried up to a fifth of its original value.
    • Ripple effects on food prices and availability: According to the United Nations’ (UN) Food and Agriculture Organization (FAO), global food prices have risen by 20 percent. It further predicts a rise in the undernourished population to be between 7.6 to 13.1 million, because of the conflict situation and its ripple effects on food prices and availability.

    Sri Lanka: A case of Food security crisis

    • The economic meltdown in Sri Lanka wreaked havoc on the food security of the local population.
    • For Sri Lanka, the sudden switch to organic farming in 2021 worsened its trade performance in the agricultural sector.
    • The island nation had to import sugar, rice, and various other commodities, including intermediate goods in which the economy had had a previous surplus.
    • By 2022, the tea industry, which was a major commodity of exchange, incurred losses of approximately US $425 million, further worsening the economy’s foreign exchange situation.

    Energy crisis

    • Heavy on energy imports: The data analysis on energy imports shows that all the countries in Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC), especially India, Myanmar, and Bhutan, rely heavily on energy imports.
    • Fuel dependency makes the region highly vulnerable to external shocks: The trade dependency on fuel is a major curse for the region, making it highly vulnerable to exogenous macroeconomic shocks. The Russia-Ukraine conflict underscores the importance of nations having self-reliance regarding energy.
    • Absence of infrastructure and synchronisation in BIMSTEC Grid plan: Despite the BIMSTEC countries having developed a ‘Plan of Action for Energy Cooperation in BIMSTEC’ and also signed a MoU for the establishment of the BIMSTEC Grid Interconnection in August 2018, the absence of required infrastructure and adaptive power market, the lack of synchronisation of the grid system, the lack of financial policies, and other related issues have made progress in energy cooperation slow among the countries in the region.

    Bangladesh: In a tough spot

    • Unable to set in motion the transition to renewable energy, alongside heavy dependence on fuel imports, Bangladesh, especially, has been placed in a tough spot concerning energy security.
    • The Russia-Ukraine conflict has added more fuel to this fire. With energy prices climbing upwards and subsidy bills increasing, the fiscal balances and current account deficits have been worrisome for Bangladesh’s economy.
    • The government had to finally put in place some austerity measures. The domestic prices of diesel, kerosene, octane, and petrol were increased to achieve price parity with its neighbours such as India, China, and Nepal.

    Way ahead

    • Safeguard against food security crisis: It becomes imperative for regional groupings to set up safeguards against crises where their food security is affected by geopolitical events and domestic macroeconomic threats.
    • Food Bank for BIMSTEC: The idea of a food bank for the BIMSTEC countries modelled on the Association of Southeast Nations (ASEAN) Food Bank is a good start as it will aid in stabilising prices.
    • India urged to develop regional strategy and promoting millets: Recently, in November 2022, India hosted the second Agriculture Ministerial-level meeting of the BIMSTEC nations, where it urged the member countries to develop a regional strategy for transforming agriculture and promoting millets into the food systems.
    • Millets have potential to ameliorate food insecurity: Promotion and intra-regional trade of food items such as millets, where these countries have surplus production, can help ameliorate food insecurity to a large extent.
    • Self-reliance in energy: Overdependence on fuel will make the region more vulnerable and affect its financial stability. Therefore, developing a domestic energy market is critical for the region. This can be achieved by accelerating the green transition.
    • For instance: FDI from Japanese firms has constantly seen more impacts and spillovers in the Indian economy. If Japanese firms’ economies of scale and their potential in developing different green energy technologies could be fully utilised, it would reduce the regional dependence on China, which is currently the dominant player in the domain of solar energy.

    Conclusion

    • Regional economies have huge potential to invest in research for green transition technologies and sustainable agriculture which can help them have self-reliant energy and food markets respectively. Led by India, the Bay of Bengal region can lead the way in innovations in renewable forms of energy such as solar and wind.

    Mains Question

    Q. The South Asian neighbourhood is in flux. Discuss the major challenges and suggest a way ahead.

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  • Cyber Security – CERTs, Policy, etc

    Cyberattacks: India’s Opportunity To Conceptualize Global Cyber Security Framework

    op-ed snap | Security Issues | Mains Paper 3: Cyber Security

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Ransomware, Recent events of Cyberattacks and malwares

    Mains level: Cyberattacks, cyber security infrastructure. Read the attached article

    Cyberattacks

    Central Idea

    • The past few weeks have highlighted the soft underbelly of our fast-expanding digital networks. Ransomwares have emerged as the most predominant of malicious cyberattacks. Here, the perpetrators demand hefty payments for the release of withheld data. Data show that over 75% of Indian organisations have faced such attacks, with each breach costing an average of ₹35 crore of damage.

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    Two recent ransomware attacks

    1. Ransomware attack on AIIMS: The first was the ransomware attack on the servers of India’s premium institute, the All-India Institute of Medical Sciences. Nearly 40 million health records were compromised and it took over two weeks for the systems to be brought online.
    2. BlackCat breached Solar Industries Ltd.: Soon afterwards, a ransomware gang, BlackCat, breached the parent company of Solar Industries Limited, one of the Ministry of Defence’s ammunition and explosives manufacturers, and extracted over 2 Terabyte of data.

    Cyberattacks

    What is mean by Cyber-attack?

    • Cyberattacks are unwelcome attempts to steal, expose, alter, disable or destroy information through unauthorized access to computer systems.
    • These attacks can target various entities such as governments, businesses, organizations, or individuals, and can have serious consequences such as theft of sensitive information, financial loss, reputational damage, or disruption of critical services.

    Who is behind cyberattacks?

    • Criminal organizations, state actors and private persons can launch cyberattacks against enterprises. One way to classify cyberattack risks is by outsider versus insider threats.
    1. Outsider threats: External cyber threats include; Organized criminals or criminal groups Professional hackers, like state-sponsored actors, Amateur hackers, like hacktivists
    2. Insider threats: Insider threats are users who have authorized and legitimate access to a company’s assets and abuse them either deliberately or accidentally. They include, Employees careless of security policies and procedures, Disgruntled current or former employees, Business partners, clients, contractors or suppliers with system access

    Growing vulnerability

    • There are malwares that could infect all kinds of computer systems: With the lines between the physical and digital realms blurring rapidly, every critical infrastructure, from transportation, power and banking systems, would become extremely vulnerable to the assaults from hostile state and non-state actors.
    • For instance; Cyber capabilities are also playing a pivotal role: As seen in the ongoing conflict in Ukraine, where electronic systems in warheads, radars and communication devices have reportedly been rendered ineffective using hacking and GPS jamming.
    • Cyber security breaches would only increase: With the introduction of 5G and the arrival of quantum computing, the potency of malicious software, and avenues for digital security breaches would only increase.
    • For instance: This year, cybercrimes are expected to cause damage worth an estimated $8 trillion worldwide.

    India’s cybersecurity architecture

    • CERT-In: In 2022, the Indian Computer Emergency Response Team (CERT-In), which is India’s cybersecurity agency, introduced a set of guidelines for organisations to comply with when connected to the digital realm. This included the mandatory obligation to report cyberattack incidents within hours of identifying them, and designating a pointsperson with domain knowledge to interact with CERT-In.
    • Draft Digital Personal Protection Bill, 2022: India’s draft Digital Personal Protection Bill 2022 proposes a penalty of up to ₹500 crore for data breaches.
    • Defence Cyber Agency (DCyA): Recently, India’s armed forces created a Defence Cyber Agency, capable of offensive and defensive manoeuvres. All Indian States have their own cyber command and control centres.
    • Cybercrime Co-ordination centre: The Indian Cybercrime Co-ordination Centre (I4C) established by the Ministry of Home Affairs, acts as a nodal point in the response against cybercrime by coordinating with state police forces across the country. It also co-ordinates the implementation of mutual legal assistance treaties (MLAT) with other countries.

    Have you heard about “Bluebugging”?

    • It is a form of hacking that lets attackers access a device through its discoverable Bluetooth connection.
    • Once a device or phone is blue-bugged, a hacker can listen to the calls, read and send messages and steal and modify contacts.
    • It started out as a threat for laptops with Bluetooth capability. Later hackers used the technique to target mobile phones and other devices.

    Limitations In India’s cybersecurity infrastructure

    • Lack of tools to identify: Most organisations lack the tools to identify cyberattacks, let alone prevent them.
    • Scarcity of cybersecurity professional: India also faces an acute scarcity of cybersecurity professionals. India is projected to have a total workforce of around 3,00,000 people in this sector in contrast to the 1.2 million people in the United States.
    • Private sector participation is limited: Most of our organizations are in the private sector, and their participation remains limited in India’s cybersecurity structures.

    Global understanding is essential

    • International cooperation is critical: With most cyberattacks originating from beyond our borders, international cooperation would be critical to keep our digital space secure. It would also be a cause which would find resonance abroad.
    • Cybersecurity treaties: India has already signed cybersecurity treaties, where the countries include the United States, Russia, the United Kingdom, South Korea and the European Union.
    • Multinational frameworks are there but there is no truly global framework: Even in multinational frameworks such as the Quad and the I2U2 (which India is a member of) there are efforts to enhance cooperation in cyber incident responses, technology collaboration, capacity building, and in the improvement of cyber resilience. Yet, there is no truly global framework, with many operating in silos.
    • UNGA established two processes on ICT: The United Nations General Assembly establish two processes on the issues of security in the information and communication technologies (ICT) environment.
    • The Open-ended Working Group (OEWG), comprising the entire UN membership, established through a resolution by Russia.
    • The other is the resolution by the U.S., on the continuation of the Group of Governmental Experts (GGE), comprising 25 countries from all the major regions.
    • Differ vastly on many aspects of Internet: The two antagonistic permanent members of the UN Security Council, counted among India’s most important strategic partners, differ vastly on many aspects of the Internet, including openness, restrictions on data flow, and digital sovereignty. Amidst the turbulent current world events, these UN groups would struggle to have effective dialogues.

    Conclusion

    • The G-20 summit this year in India, which will see participation by all the stakeholders driving the global levers of power, is a rare opportunity to bring together domestic and international engagement groups across the spectrum, and steer the direction of these consultations. India could make an effort to conceptualize a global framework of common minimum acceptance for cybersecurity. This would be one of the most significant contributions made by any nation towards collective security in modern times.

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  • R&D Expenditure And The Perils of Inadequate Data

    op-ed snap | Economics | Mains Paper 3: Government Budgeting,Issues relating growth and development, employment

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Gross Domestic Expenditure On Research and Development

    Mains level: Research and development in India

    Central Idea

    • India’s research and development (R&D) expenditure-GDP ratio of 0.7% is very low when compared to major economies and is much below the world average of 1.8%. The main reason is the low investment in R&D by the corporate sector.

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    Overview: Spending’s on R&D in India

    • While the corporate sector accounts for about two-thirds of gross domestic expenditure on R&D (GERD) in leading economies, its share in India is just 37%. There is evidence, however, suggesting that India’s GERD data are an underestimate.
    • A 2022 infobrief of the National Science Foundation (NSF) of the United States on Foreign R&D by U.S.-based multinational corporations (MNCs) shows a spend of $9.5 billion (₹649.7 billion) on R&D in India in 2018, which increased to $9.8 billion (₹690.2 billion) in the following year.
    • There are MNCs from other leading countries also spending on R&D in India.
    • But the latest Research and Development Statistics, published by the Department of Science and Technology (DST) in 2020, has provided an estimate of ₹60.9 billion R&D spending in 2017-18 by foreign MNCs, which is only about 10% of what U.S. firms have reported to have spent in India on R&D.

    What is Gross Domestic Expenditure On R&D (GERD)?

    • Gross domestic spending on R&D is defined as the total expenditure (current and capital) on R&D carried out by all resident companies, research institutes, university and government laboratories, etc., in a country.
    • It includes R&D funded from abroad, but excludes domestic funds for R&D performed outside the domestic economy.
    • This indicator is measured in USD constant prices using 2015 base year and Purchasing Power Parities (PPPs) and as percentage of GDP.
    • It is often used as an indicator of a country’s level of innovation and technological progress.

    Issues with the current system

    • NSTMIS compiles GERD data: The National Science and Technology Management Information System (NSTMIS) of the DST is the agency that compiles GERD statistics in India.
    • Challenge is to collect data from private sector: It is easier to gather the information on R&D by the government sector, the higher education sector and public sector enterprises. The challenge lies in collecting data from the private corporate sector.

    There are two key factors that make the official R&D estimates grossly inadequate

    1. The method used for identification of R&D performing firms does not capture all the R&D performing firms.
    • NSTIMS uses DSIR and Prowess to identify R&D units: A study found only 11% of 298 firms receiving foreign investment (2004-16) for R&D were registered with DSIR. Prowess covers only 3.5% of currently active registered enterprises in India. Leading enterprises in new technology areas may not be listed in both databases, such as SigTuple Technologies.
    • The DSIR list may not have many of the actual R&D performers for two reasons: Firms which consider government incentives as not attractive enough or that are sensitive about sharing critical information with the DSIR may not be inclined to register themselves with the DSIR. 2. It may be difficult for R&D firms in services such as software and R&D services to meet the requirement of having separate infrastructure for R&D to distinguish it from their usual business. In fact, many of the R&D performing enterprises in new technology areas may come under the services category.
    1. The survey conducted by the NSTMIS is the key source of R&D statistics of India
    • Data from Secondary sources works only if firms disclose their R&D spending: If firms don’t respond to the survey, data is collected from secondary sources like annual reports and Prowess. Some firms don’t report R&D spending despite their technology activities, patents and innovators. They may not feel obliged to report accurately to Indian regulatory authorities.
    • For instance: A review of the documents submitted to the Ministry of Corporate Affairs (MCA) by some R&D-oriented firms shows that there are firms which do not report any spending on R&D in spite of their declarations that suggest that they are engaged in activities of technology development, adoption and adaptation.

    What is to be done?

    • Short term measure: the NSTMIS should use the patents granted data, both in India and the U.S., in addition to its current method to identify R&D performing enterprises.
    • Mandatory disclosure: Annual R&D estimates can be prepared from mandatory disclosures that the enterprises are required to make to the MCA.
    • Technologies can be employed to ensure compliance and proper reporting: In order to ensure compliance and proper reporting, technologies can be used like in the case of revamped income-tax return forms where various sections are interlinked.
    • Spending data should be made an essential component of ESG: Additionally, proper disclosure of information to regulatory agencies, including R&D spending data, should be made an essential component of the environmental, social and governance (ESG) ranking of enterprises.

    Conclusion

    • Concrete data on R&D spending is crucial as it helps to identify areas needing investment, promotes economic growth, informs policymaking decisions, tracks progress, and evaluates policy effectiveness in promoting innovation and technological development. Transforming India’s R&D statistics to truly reflect the R&D ecosystem calls for short-term and medium-term measures.

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  • Monetary Policy Committee Notifications

    Repo Rate Hike: Impact Should be Considered Before Making Decisions

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Inflation

    Mains level: The role of MPC, Inflation, repo rate and its impact

    Rate

    Central Idea

    • In its last meeting, held just a few days after the Union budget, the monetary policy committee (MPC) of the RBI had voted to raise the benchmark repo rate by 25 basis points. The MPC noted that calibrated action was warranted to break the persistence in core inflation. This surprise uptick in inflation is likely to complicate the policy choices before the MPC members when it meets next in the first week of April.

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    What is Basis points we often hear about?

    • A basis point is a unit of measurement used to express changes in interest rates, bond yields, and other financial indicators.
    • One basis point is equal to one-hundredth of a percentage point, or 0.01%.
    • For example, If the Reserve Bank of India (RBI) raises the repo rate by 25 basis points, it means that the interest rate has increased by 0.25%.

    What it indicates?

    • If the Reserve Bank of India (RBI) keeps raising the repo rate by basis points, it is an indication that the central bank is tightening its monetary policy stance to manage inflationary pressures in the economy.

    Back to basics: Monetary Policy Committee (MPC)

    • Committee of RBI to fix the benchmark policy: The Monetary Policy Committee (MPC) is a committee of the RBI, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
    • To bring transparency and accountability: The RBI Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC to bring more transparency and accountability in fixing India’s Monetary Policy.
    • Policy is published after discussion: The policy is published after every meeting with each member explaining his opinions.
    • Answerable to GOI: The committee is answerable to the Government of India if the inflation exceeds the range prescribed for three consecutive months.

    What is Inflation?

    • Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices.
    • Typically, prices rise over time, but prices can also fall (a situation called deflation).

    The current trends of Inflation

    • Rise in retail inflation: Retail inflation, as measured by the consumer price index, rose to 6.52 per cent in January, up from 5.72 per cent in December, reversing the declining trend seen in the preceding months.
    • Much of the surge was driven by food inflation: The consumer food price index rose to 5.94 per cent, up from 4.19 the month before, driven largely by cereals.
    • Price pressure remain across the economy: Inflation remained elevated in clothing and footwear, household goods and services, personal care effects and education, signalling that price pressures remain fairly broad-based across the economy.

    RBI’s Upper tolerance limit for inflation

    • Highest level of inflation that can be tolerated: The upper tolerance limit for inflation set by the Reserve Bank of India (RBI) is the highest level of inflation that the RBI will tolerate before taking action to bring inflation back within its target range.
    • RBI’s limit: The target range is defined in terms of the Consumer Price Index (CPI) inflation and the RBI has set an upper tolerance limit of 6% and a lower tolerance limit of 2% with a central target of 4%. This means that the RBI aims to keep CPI inflation within the range of 2-6%, with a target of 4%.
    • Tools to contain inflation: If inflation exceeds the upper tolerance limit of 6%, the RBI is required to take steps to bring inflation back within the target range. The RBI uses a variety of monetary policy tools to control inflation, including adjusting the policy interest rate, changing reserve requirements for banks, and using open market operations to manage liquidity in the financial system.

    Conclusion

    • Monetary policy experts Varma and Goyal suggest pausing to observe the impact of previous tightening before taking further action. Despite a cumulative 250 basis point increase, inflation is still expected to remain above the 6% target. The full impact of previous tightening should be considered before making any decisions.

    Mains Question

    Q. What is upper threshold of the RBI’s inflation targeting framework? Discuss the impact of policy interest rate hikes on the economy.

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  • Anti Defection Law

    Anti-defection Law and The Loopholes

    op-ed snap | Polity | Mains Paper 2: Parliament & State Legislatures

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Tenth Schedule of the Constitution

    Mains level: Anti-defection law and the challenges

    defection

    Central Idea

    • On February 17, the Election Commission of India (ECI) allotted the name ‘Shiv Sena’ and the party’s Bow and Arrow symbol to Maharashtra Chief Minister Eknath Shinde’s faction, in effect recognizing it as the original party founded by Babasaheb Thackeray.  Strengthening Anti-defection law becomes relevant again.

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    Background: The most dramatic and unique political crisis

    • Division in the party: The political crisis in Maharashtra began last year after a group of 40 of the 55 Sena MLAs walked out of the Maha Vikas Aghadi (MVA) alliance under the leadership of Mr. Shinde, which caused a division in the party.
    • Fight of Name and Symbol: Both the Uddhav Thackeray and Shinde sides staked claim to the party name and symbol, each claiming to represent the real Shiv Sena.
    • The ECI said that it had based its decision on a test of majority: It said the group of MLAs supporting the Shinde faction got nearly 76% of the votes polled for the 55 winning Shiv Sena candidates in the 2019 Maharashtra Assembly elections, while the Uddhav Thackeray faction got 23.5% of votes.

    Exam Spotlight

    • The crisis has thrown the spotlight once again on the anti-defection law, whose purpose is to prevent political defections.

    What is Anti-defection Law?

    • Tenth Schedule: The Anti-Defection Law under the Tenth Schedule of the Constitution punishes MPs/ MLAs for defecting from their party by taking away their membership of the legislature.
    • Power to the speaker: It gives the Speaker of the legislature the power to decide the outcome of defection proceedings.
    • 52nd Amendment Act, 1985: It was added to the Constitution through the Fifty-Second (Amendment) Act, 1985 when Rajiv Gandhi was PM. The law applies to both Parliament and state assemblies.

    What was the need to have this law then?

    1. Vies in favour
    • Defection was recognized as an evil that needed to be curbed: Defections cause destabilization and lead to governments falling, which can have negative impacts on the country’s political and economic stability.
    • Law helps to stabilise party system: The law helps to stabilize party systems by consolidating control of the party leadership instead of relying on ideological cohesion or ownership by constituent legislators.
    1. Views against it
    • Law would curb freedom of opinion of the representatives: Some people thought that the law would curb freedom of speech and affect the free exercise of opinion by the members of the legislature who are elected by the people.
    • Undermines the representative system of democracy: The law effectively does away with the representative system of democracy in India by framing democracy as a contest between factions rather than a system of representation and accountability.
    • Limiting the ability of legislators: The law consolidates power in the hands of the party leadership, potentially limiting the ability of individual legislators to represent their constituents’ interests.

    How the law is faring today?

    • Recent events shows that the law needs to be tightened: The kinds of defections which used to take place before the passing of this law are not taking place now. But recent events show that this law needs to be tightened.
    • Third paragraph of tenth schedule was deleted: A little tightening was done earlier by doing away with a split, that is, paragraph three of the Tenth Schedule of the Constitution. It had said, if there is a split in a particular party, and one-third of the legislators move along with the breakaway group, they will not be disqualified. So, split was a defence against disqualification.
    • No authoritative interpretation of the law: there is a very disturbing trend, which is to interpret paragraph four (decision on questions as to disqualification on ground of defection) in a particular way, because there is no authoritative declaration of law from the Supreme Court on the exact application of it.
    • No timeline fixed for the Speaker: In the 10th Schedule currently, there is no timeline fixed for the Speaker to determine the issue and the purpose of this anti-defection law is defeated.

    Conclusion

    • People are principal stakeholders in a democracy; parties are merely the institutional intermediaries. Democracy needs stable parties, but controlling legislators removes their representative role. Need of the hour is to fix the loopholes in the system because the continuous cycle of instability adversely affects the people, who are the primary stakeholders in a democracy and suffer the most.

    Mains Question

    Q. The events of spilt within the political are rising posing a challenge to the Anti defection law In this backdrop discuss the need of Anti defection law?

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Four-day workweek: Analysis

    op-ed snap | Economics | Mains Paper 3: Issues relating growth and development, employment

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: 4-day work week, advantages and disadvantages

    Four-day workweek

    Central Idea

    • Much is being made about the major breakthrough in one of the largest-ever experiments with a four-day workweek in Britain. Sixty-one companies were part of the six-month trial and 56 of them have opted to continue with the program, while 18 have made it permanent. 4 Day Week Global trial, overseen by Autonomy, aimed to improve work-life balance by allowing workers to work four days instead of five with the same salary and workload.

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    Advantages of implementing a four-day workweek

    • Improved Work-life balance: Having a positive work-life balance can also allow professionals to adopt a better attitude about their work, as they can return to their jobs well-rested. This can help employees remain productive and enthusiastic while working.
    • Increased job satisfaction: With more free time, employees may feel more satisfied with their jobs and be more engaged at work.
    • Reduced absenteeism and turnover: Offering a four-day workweek could make companies more attractive to potential employees, and employees may be less likely to miss work or leave their jobs if they have a better work-life balance.
    • Increased productivity: Some studies have shown that shorter workweeks can actually boost productivity, as employees may be more focused and efficient during their work hours.
    • Positive environmental impact: Working four days per week decreases the number of times a professional commute to work. This is helpful to the environment, as most vehicles produce emissions that can harm the environment.

    Four-day workweek

    Potential disadvantages

    • Limited impact: The benefits of a four-day workweek may be limited in certain industries or job types, such as those that require shift work or have strict deadlines.
    • Increased workload: Employees may feel pressure to complete the same amount of work in fewer hours, resulting in an increased workload and potential burnout.
    • Reduced productivity: Some employees may find it difficult to maintain focus and productivity over longer workdays. This could lead to a decrease in overall output and quality of work.
    • Impact on customer service: If businesses are closed for an extra day each week, it may be more difficult to provide customer service or maintain consistent operating hours.
    • Reduced income: With a shorter workweek, employees may see a reduction in their pay, which could be a disadvantage for those who rely on their income to cover living expenses.

    Examples of companies/organizations considering a four-day workweek

    • Microsoft Japan: In 2019, the tech giant conducted a trial where employees worked a four-day week and saw a 40% increase in productivity.
    • Iceland: A number of companies and organizations in Iceland have experimented with shorter workweeks, including the country’s government, which is exploring a four-day workweek for public servants.
    • New Zealand: Unilever New Zealand recently announced it would be trialing a four-day workweek for all of its employees, while the country’s prime minister, Jacinda Ardern, has previously spoken in favor of the idea.
    • Spain: The government of Spain has proposed a three-year trial of a four-day workweek, with the goal of improving work-life balance and boosting productivity.

    Four-day workweek

    Feasibility of Four-day workweek in India’s context

    • Will require a careful analysis: The feasibility and impact of a four-day workweek in India would depend on various factors such as industry type, workforce demographics, and cultural norms. Implementing a four-day workweek in India would require careful analysis of various factors.
    • For instance: With the rise of remote work and the increased focus on work-life balance four day week option could be helpful to enhance productivity with improved work life balance in corporate sector.
    • Complex regulations: India’s labour laws and regulations are complex and provide significant protections for workers. Any changes to work arrangements, including a four-day workweek, would need to comply with these laws and ensure that employees’ rights and benefits are protected.
    • For example: Any reduction in working hours would need to be accompanied by appropriate compensation and benefits to ensure that employees do not suffer financial losses.
    • Specific needs of industries: The feasibility of a four-day workweek would depend on the specific needs of different industries.
    • For instance: While some knowledge-based sectors may be well-suited to a four-day workweek, industries that require continuous operations or shift work, such as manufacturing or healthcare, may face significant challenges in implementing a shorter workweek.

    Conclusion

    • It’s important to carefully consider the potential advantages and disadvantages of a four-day workweek before implementing it in any workplace. The impact may vary depending on the specific work arrangements and the needs of the employees and customers.

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  • Digital India Initiatives

    UPI: Internationalization of Digital Payments

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: UPI, PayNow link, UPI LITE, etc

    Mains level: UPI and Internationalization of Digital Payments architecture

    UPI

    Central Idea

    • On Tuesday, the Union government unveiled India’s first cross-border real-time payments systems linkage, with the Unified Payments Interface (UPI) connecting with Singapore’s PayNow payment system.

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    What is Unified Payments Interface (UPI)

    • UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
    • It eliminates the risk of sharing bank account details by the remitter.
    • UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and it also enables a user to send or receive money.

    What is PayNow?

    • It is a fast payment system in Singapore.
    • It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
    • It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.

    UPI

    Overview: Remarkable success of UPI

    • Changed the landscape of electronic payments: The introduction of UPI in 2016-17 led to a dramatic change in the electronic payments landscape of the country.
    • Instrumental in dramatic growth of digital payments: Along with the JAM trinity of Jan Dhan, Aadhaar and mobile phones, this payment architecture has been instrumental in facilitating the dramatic growth of digital payments in the country, aided by a conducive regulatory framework.
    • Value and volume increasing day by day: Over the years, various reports by the RBI have documented the significant increase in digital payments transactions in the country, with per person digital transactions growing both in terms of value and volume.
    • Dramatic surge during the pandemic: Contactless payments also witnessed a surge during the pandemic. In fact, as per another study, roughly one-third of households surveyed had transacted digitally for the first time during the lockdown.
    • Statistics for instance:
    1. In January 2023, roughly 8 billion transactions were carried out on the UPI platform, whose value touched almost Rs 13 lakh crore.
    2. In comparison, in January 2020, just prior to the pandemic, 1.3 billion transactions were routed through the UPI platform, which touched Rs 2.1 lakh crore in value.
    • Aided in accelerating financial inclusion: The convenience of real-time transfer of payments, the zero-cost framework for users, the rapid expansion in the acceptance touch-points, have encouraged its widespread adoption. This has also aided in accelerating financial inclusion by providing access to financial services at low cost.

    Did you know? “UPI Lite”

    • UPI Lite is a on device wallet feature similar to the ones seen on popular digital payment apps such as Paytm, Freecharge, MobiKwik and others.
    • The feature will allow you to make faster near real-time small value payments without internet connection via the money added in the wallet.
    • In phase one, UPI Lite will process transactions in near offline mode i.e. debit offline and credit online, and at a later point, UPI Lite will process transactions in complete offline mode i.e. debit and credit both offline.

    UPI

    All you need to know about UPI-PayNow interlinkage facility

    • How is the interlinkage benefit users?
    1. With this facility, funds held in bank accounts or e-wallets can be transferred to /from India using just the UPI ID, mobile number, or Virtual Payment Address (VPA), which is essentially the address to or through which you can make UPI money transfers.
    2. With this payment facility, both inward and outward remittances will happen instantly.
    • Who can undertake remittance transactions through this facility: Account holders of participating banks and financial institutions in India and Singapore.
    • Participating banks in India and Singapore:
    1. Banks from India are Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India (SBI). Going forward, the UPI-PayNow interlinkage will cover more banks and financial institutions.
    2. From Singapore, DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution) are selected.
    3. Popular payment platforms such as PhonePe and Google Pay have been excluded from the ambit of this framework. Perhaps, over time, these platforms will also be brought under this framework, aiding in its widespread adoption.
    • The daily transaction limit:
    1. Banks in India have not communicated about any restrictions on transfers yet.
    2. It is Rs 60,000 (around SGD 1,000). Initially, DBS customers can use PayNow-UPI only to transfer funds up to SGD 200 per transaction, capped at SGD 500 per day.
    3. There is no such communication about capping for transferring funds through Liquid Group (Non-Bank Financial Institution) to India.

    UPI

    Conclusion

    • The UPI-PayNow interlinkage is a milestone moment for cross-border transfers. Not only India but the world has witnessed how UPI revolutionized the landscape of domestic digital payment infrastructure. With this encouraging development we are now going to see a similar revolution in the cross-border payments space as well. This internationalization of the digital payments architecture, will help bring down both the cost and the time associated with such transfers, bringing benefits to migrant workers, students, and professionals, among others.

    Mains Question

    Q. Recently India launched its first cross-border real-time payments systems linkage with Singapore. In this light highlight Discuss remarkable success of UPI and prospect of internationalization of UPI.

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  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    India’s Rich Biodiversity Needs Science Based Implementation

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: 30×30 pledge, PM-STIAC, PM-PRANAM, MISHTI, Amrit Dharohar scheme

    Mains level: Government initiatives for biodiversity conservation

    Biodiversity

    Central Idea

    • The sum and variation of our biological wealth, known as biodiversity, is essential to the future of this planet. India currently hosts 17% of the planet’s human population and 17% of the global area in biodiversity hotspots, placing it at the helm to guide the planet in becoming biodiversity champions.

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    What is 30×30 pledge?

    • The importance of our planet’s biodiversity was strongly articulated at the United Nations Biodiversity Conference in Montreal, Canada.
    • On December 19, 2022, 188 country representatives adopted an agreement to halt and reverse biodiversity loss by conserving 30% of the world’s land and 30% of the world’s oceans by 2030, known as the 30×30 pledge.

    Government’s efforts, Programs with potential

    • Green Growth push in Budget: The Union Budget 2023 mentioned Green Growth as one of the seven priorities or Saptarishis. The emphasis on green growth is welcome news for India’s biological wealth as the country is facing serious losses of natural assets such as soils, land, water, and biodiversity.
    • Green India Mission: The National Mission for a Green India aims to increase forest cover on degraded lands and protect existing forested lands.
    • Green Credit Programme: The Green Credit Programme has the objective to incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies.
    • The MISHTI Program: The Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) is particularly significant because of the extraordinary importance of mangroves and coastal ecosystems in mitigating climate change.
    • PM-PRANAM: The Prime Minister Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) for reducing inputs of synthetic fertilizers and pesticides is critical for sustaining our agriculture.
    • Amrit Dharohar scheme: The Amrit Dharohar scheme is expected to encourage optimal use of wetlands, and enhance biodiversity, carbon stock, eco-tourism opportunities and income generation for local communities. If implemented in letter and spirit, Amrit Dharohar, with its emphasis on sustainability by balancing competing demands, will benefit aquatic biodiversity and ecosystem services.
    • For instance: The recent intervention by the Ministry of Environment, Forest and Climate Change to stop the draining of Haiderpur, a Ramsar wetland in Uttar Pradesh, to safeguard migratory waterfowl is encouraging.

    Programs must be science-based

    • Evidence-based implementation: It is critical that these programs respond to the current state of the country’s biodiversity with evidence-based implementation.
    • A science-based and inclusive monitoring programme: A science-based and inclusive monitoring programme is critical not only for the success of these efforts but also for documentation and distillation of lessons learnt for replication, nationally as well as globally.
    • Employing modern concepts of sustainability: New missions and programmes should effectively use modern concepts of sustainability and valuation of ecosystems that consider ecological, cultural, and sociological aspects of our biological wealth.
    • Setting clear boundaries and priorities: With clear system boundaries, prioritisation of the benefits to resource people, and fund-services (rather than stock-flows) as the economic foundation for generating value has enormous potential for multiple sustainable bio-economies.
    • Efficient water use patterns: The future of our wetland ecosystems will depend on how we are able to sustain ecological flows through reduction in water use in key sectors such as agriculture by encouraging changes to less-water intensive crops such as millets as well as investments in water recycling in urban areas using a combination of grey and blue-green infrastructure.
    • Focus must be on ecological restoration: As far as the Green India Mission is concerned, implementation should focus on ecological restoration rather than tree plantation and choose sites where it can contribute to ecological connectivity in landscapes fragmented by linear infrastructure.
    • Choices should be made on evidences of resilience: Choice of species and density should be informed by available knowledge and evidence on resilience under emerging climate change and synergies and trade-offs with respect to hydrologic services.
    • Careful site selection for mangrove initiative: Site selection should also be carefully considered for the mangrove initiative with a greater emphasis on diversity of mangrove species with retention of the integrity of coastal mud-flats and salt pans themselves, as they too are important for biodiversity.
    • Effort in response: In response to these needs, we hope that the National Mission on Biodiversity and Human Wellbeing (Mission to green India’s economy, restore natural capital, and make India a global leader in applied biodiversity science) already approved by PM-STIAC, will be immediately launched by the government.

    Did you know?

    Grey and Blue-Green Infrastructure

    • Grey infrastructure: It refers to traditional man-made infrastructure, such as buildings, roads, and bridges, that are designed to provide human-made services like transportation, water supply, and waste management.
    • Blue-green infrastructure: It is designed to mimic the functions of natural ecosystems, such as wetlands, rivers, and forests, to provide services like stormwater management, water purification, and carbon sequestration.
    • Example: It includes, Rainwater harvesting systems that capture rainwater and recharge groundwater, green roofs that provide insulation and absorb rainwater, Urban parks and green spaces that improve air quality and provide habitat for wildlife, Wetlands and retention ponds that filter pollutants and store excess water during floods
    • Sustainable and resilient: Blue-green infrastructure is often seen as a more sustainable and resilient alternative to traditional grey infrastructure, as it can help to mitigate the impacts of climate change, reduce urban heat island effects, and enhance the quality of life for urban residents

    Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC):

    • PM-STIAC is a high-level advisory body that provides strategic guidance on science, technology, and innovation to the Prime Minister of India.
    • Advises the Indian Prime Minister on science and technology policy, identifying emerging areas, recommending missions and projects, and enhancing the effectiveness of science and technology to tackle national challenges.
    • The council comprises eminent scientists, technologists, entrepreneurs, and policymakers who are appointed by the Prime Minister.
    • PM-STIAC also serves as a forum for stakeholders from academia, industry, and government to interact and collaborate on science and technology initiatives.

    Local community involvement

    • Efforts must be inclusive: Each of these efforts must be inclusive of local and nomadic communities where these initiatives will be implemented.
    • Traditional practices should be integrated: Traditional knowledge and practices of these communities should be integrated into the implementation plans.

    Conclusion

    • Each of the above-mentioned programs has the potential to greatly improve the state of our nation’s biodiversity if their implementation is based on the latest scientific and ecological knowledge.

    Mains Question

    Q. What is 30×30 pledge? Discuss some of the key programs taken by the government to promote green growth and biodiversity conservation.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Deputy Speaker Is An Officer of Parliament

    op-ed snap | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Speaker and Deputy speaker

    Mains level: Importance of Deputy speaker, Constitutional provisions, Parliamentary rules

    Officer

    Central Idea

    • The present Lok Sabha has not elected a Deputy Speaker even after three years and seven months of its term, and the non-election has reached the Supreme Court, which has reportedly sent notice to the Union government; historically, a Deputy Speaker is as important as the Speaker for the House.

    What is the practice?

    • Two presiding officers in Lok Sabha: There are two presiding officers for the Lok Sabha, namely the Speaker and the Deputy Speaker, who are elected by the members of the House.
    • Article 93 of the constitution: Under Article 93 of the Constitution, as soon as the House meets after the election these two presiding officers are elected one after the other.
    • Practice of electing speaker and deputy speaker: The practice followed so far has been to elect the Speaker after the oath-taking. Thereafter, within a few days, the Deputy Speaker is also elected.

    Officer

    Office of Deputy Speake Speaker of the Lok Sabha

    • The Deputy Speaker of the Lok Sabha is not subordinate to the speaker of Lok Sabha; is responsible for the Lok Sabha. and
    • He/she is the second-highest-ranking legislative officer of the Lok Sabha.
    • He/ She acts as the presiding officer in case of leave of absence caused by death or illness of the Speaker of the Lok Sabha.

    Pin this Note

    • It is by convention that the position of Deputy Speaker is offered to the opposition party in India.
    • But if a government does not favour an Opposition member for political reasons, it is free to choose a member from its own party.

    The Historical Significance of the office

    • Government of India Act of 1919: The history of the office of Deputy Speaker goes back to the government of India Act of 1919 when he was called Deputy President as the Speaker was known as the president of the central legislative assembly.
    • Role is necessary to share the responsibility of running the House: Although the main functions of a Deputy Speaker were to preside over the sittings of the assembly in the absence of the Speaker and chair the select committees etc., the position was considered necessary to share the responsibility of running the House with the Speaker and guide the nascent committees.

    Did you know?

    • The first Speaker was G V Mavalankar and the first Deputy Speaker was M Ananthasayanam Ayyangar who was elected by the Constituent Assembly (Legislative) on September 3, 1948.
    • Later under the new Constitution, M Ananthasayanam Ayyangar was elected the first Deputy Speaker of the House of the people on May 28, 1952.

    Officer

    Importance of the Office

    • Powers Under Article 95(1) of the Constitution: The Deputy Speaker gets all the powers of the Speaker when the office of the Speaker is vacant, so the Deputy Speaker can also determine the petitions relating to disqualification under the 10th Schedule of the Constitution.
    • Speaker is powerless in matters of revising: The Speaker is powerless in the matter of revising or overruling a decision of the Deputy Speaker. No appeal lies to the Speaker against a ruling given by the Deputy Speaker.

    Conclusion

    • Although the Deputy Speaker gets to exercise these powers only in the absence of the Speaker his decisions are final and binding when he gives a ruling. In the eventuality of the Speaker remaining absent for a longer time due to illness or otherwise the government will have to grapple with the unpredictability of a ruling or an adverse decision by a Deputy Speaker who comes from the Opposition ranks. Article 93 contains a mandatory provision which needs to be carried out by the House.

    Officer

    Mains Question

    Q. Speaker and Deputy speaker of Lok Sabha are known as Officers of the parliament. In this context discuss the importance Deputy speaker.

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  • Foreign Policy Watch: India-United States

    The India-US ICET: Transformative Impact On Bilateral Relations

    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: ICET

    Mains level: India-US relations and technology cooperation, Significance of India

    ICET

    Centra Idea

    • Earlier this month, the U.S. and India inaugurated their initiative on critical and emerging technologies (ICET). The promise of this initiative, if fulfilled, could have a transformative impact on India-U.S. relations. On the eve of the dialogue, National Security Adviser Ajit Doval said that the big need was to convert intentions and ideas into deliverables. This is where there has usually been a slip.

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    Background

    • India’s attempts towards US Technology Parallels: Since the 1960s, India has made many attempts to jump on the U.S. technology bandwagon.
    • Failed because of mismatch: But all of them have failed, primarily because of the mismatch between the two countries on the purposes for which they collaborated.
    • The ICET is perhaps better positioned: Unlike the earlier iterations, it comes at a time when India, too, has developed technological and managerial capacities and is emerging as a major economic power.

    ICET

    What is Initiative on Critical and Emerging Technologies (ICET)?

    • Launched by PM Modi and President Joe Biden: The ICET initiative was launched by Indian Prime Minister Narendra Modi and U.S. President Joe Biden in May 2022.
    • Goal to elevate and expand Indo-US Partnership: strategic technology partnership and defense industrial cooperation between the governments, businesses, and academic institutions of the two countries.
    • Directly monitored by PMO and White house: The Prime Minister’s Office in Delhi and the White House in Washington will oversee and direct the ICET.
    • Six focus areas of co-development and co-production: Strengthening innovation ecosystems, defence innovation and technology cooperation, resilient semiconductor supply chains, space, STEM talent, and next generation telecom.

    American aid so far

    • Significant role in India’s development efforts and quest for technological capability: A major driver of the process was the Cold War which persuaded the U.S. to provide sweeping assistance in a range of areas to India. While the Soviet Union emerged as a major player in areas like steel, heavy electricals, petroleum and mining, the U.S. focused on modernising engineering and management education, science and technology (S&T), and agriculture.
    • Nuclear energy cooperation: US helped build India’s first reactors for research and power. An entire generation of Indian nuclear scientists were trained in the U.S., including some who subsequently helped in making nuclear weapons.
    • Aid in Education in initial phase and vice versa: The massive aid provided by the U.S. to modernise Indian education, especially engineering and management, should have led to a growing industrial sector, but the Indian economy stalled in the 1960s and India ended up with a system where IIT and IIM graduates ended up benefiting the U.S. economy.
    • Aid in agriculture: The one area in which India did get lasting and important benefits was agriculture where American S&T helped trigger the Green Revolution and end an era of food shortages.
    • Gandhi-Reagan Science and Technology Initiative: The Gandhi-Reagan Science and Technology Initiative led to the 1984 India-U.S. MoU on sensitive technologies, commodities and information.
    • New American willingness to promote Indian S&T and the arms industry: In 1987, the U.S. agreed to assist India’s Light Combat Aircraft (Tejas) programme and allowed the sale of front-line GE 404 engine to India.

    ICET

    Current Status

    • India has steadily advanced in status as a friend of the U.S. and has purchased U.S. weapons and systems worth billions of dollars.
    • It is now deemed to be a Major Defence Partner, though not a Major Non-Nato Ally, a much more useful designation that Pakistan still retains.
    • The course has not been problem-free witness the pressure India faced under CAATSA and on account of its oil trade with Russia.

    Ambitious goals

    • Great deal for India: The ICET has set up a range of ambitious goals which mean a great deal for India. Some of them are aspirational, others political. A few are over the top, such as the belief that the U.S. will help India to develop advanced jet engines.
    • Licence for jet engines: As of now, all that is on the table is the possible licence manufacture of GE-404/414 engines for the LCA. This is not new. But cutting-edge jet engines are the crown jewels of the U.S., which the country will not part with.

    ICET

    Conclusion

    • After presenting the Union Budget, the finance minister said in an interview, “This is a golden opportunity for India. We should really not miss the bus this time.” The remark is truer of the technology and industrialisation bus that the ICET could be.

    Mains question

    Q. What is Initiative on Critical and Emerging Technologies (ICET)? Highlight the significance of ICET for India while noting down the American cooperation so far.

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