Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Centralisation in Education
The article tracks the evolution of the India education system after Independence. While the decentralisation and active encouragement underscores the initial years, recent trends shows a growing emphasis on centralisation.
How Government support contributed to rise of educational institutions
- In the initial decades after Independence, the government was conscious of various social, economic and financial challenges.
- So, the government strongly supported universities, encouraging them to further develop an academic .
- The IITs and IIM along with institutions of academic excellence like the IISc, Indian Statistical Institute, and JNU emerged as model institutions.
- The institutional and academic autonomy offered was central to their emerging as premier institutions.
- Other universities revised curricula and set about the task of reforming the university as a space for healthy academic engagement.
Rise of decentralisation in collective decision making
- The above changes were marked by the growing importance of various large representative institutional bodies.
- For example, institutional bodies like faculty committees, committees of courses, board of studies, university senates, academic councils and executive councils grew in importance.
- These bodies oversaw the administrative and academic functioning of the university and ensured collective decision-making.
- Debate over ideological positions, scholarly beliefs shaped the process of nation-building in independent India.
Policy changes and its impact (2005-15)
- The constitution of the National Knowledge Commission and privatisation of education undermined the deliberative and independent character of these institutions of higher education.
- Administrative and academic decisions were imposed from above.
- Discussions within various academic bodies were discouraged.
- The imposition of the semester system and a four-year undergraduate programme in many public and private universities were hallmarks of this new era of bureaucratic centralisation.
- The academic achievements of scholars from Indian universities were undermined.
- Those in positions of authority within the universities were encouraged to undermine academic bodies and limit their role.
New government intervention after 2015
- Futher changes were introduced starting from 2015.
- Choice Based Credit System was introduced and there were renewed attempts to privatise higher education linked to an emphasis on rankings.
- The government started to look into minute details pertaining to academic curricula, the teaching-learning process and the parameters that governed academic research within the university.
Centralisation in Covid-19 pandemic
- The centralisation trend intensified with the outbreak of the COVID-19 pandemic.
- The Central government and the University Grants Commission have imposed themselves on the daily functioning of all higher educational institutions.
- This represents a new government-oriented bureaucratic centralisation.
- Decisions about the conclusion of academic term, the modalities for evaluation and the conduct of the teaching-learning process have become exclusive government prerogatives.
- The various academic bodies that had original jurisdiction over these matters have been made redundant.
- How and whether examinations are to be conducted has become an issue of contention between State and Central governments.
Consider the question “Centralisation of the decision making instead of at institutional level in educational institutions and universities lies at many woes of the higher education in India. Comment.”
Conclusion
The time has come for institutions of higher education in India to recover their lost voice and restore the fertile academic space where ideas are discussed and debated rather than suppressed and dismissed.
Original article:
https://www.thehindu.com/opinion/lead/the-lost-voice-of-the-indian-university/article32105945.ece
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From UPSC perspective, the following things are important :
Prelims level: ASEAN
Mains level: Paper 2- Growing aggression of China in the Indo-Pacific and increasing coordination among Indo-Pacific nations to counter it.
The focus of this article is on the U.S. policy in the Indo-Pacific and its relations with its allies there in countering China.
Instances of China’s aggression
- Galwan Valley is not an exception in Beijing’s recent behaviour in Asia.
- China has also engaged in a tense geopolitical confrontation with its other neighbours.
- Stand-offs with Vietnam and Malaysia in the South China Sea and threatening Australia with boycotts are a few examples.
Response to China
- Beijing’s aggressiveness is fueling debates about the underlying costs of reliance on China.
- China’s aggression is also increasing support for closer coordination between other Indo-Pacific partners.
- Indian, Japan, Malaysia, and Australia have all taken concrete steps to reduce their economic exposure to Beijing.
- India and Australia recently inked a new military logistics agreement in the “virtual summit”.
- A similar agreement between Delhi and Tokyo may follow.
- The Quadrilateral Dialogue between Australia, India, Japan, and the United States is growing stronger and even expanding.
- And recently Association of Southeast Asian Nations (ASEAN) issued one of their strongest statements to date on the South China Sea.
- The ASEAN statement insisted that maritime disputes must be resolved in accordance with the UN Law of the Sea treaty.
Asian multilateralism: Born out of crises
- Recently the “Milk Tea Alliance”, reaction of people, born to forge solidarity between Taiwanese, Hong Kongers, and Southeast Asians online to deal with Chinese cyberbullying.
- The Chiang Mai Initiative — a financial swap mechanism between China, Japan, South Korea, and Southeast Asia — emerged in the aftermath of the late 1990s financial crisis.
- ASEAN, created in 1967, did not convene its first heads of state meeting until fall of Saigon in 1976 in the Vietnam War.
Role of the U.S.
- The COVID-19 crisis is remaking the geopolitics of the Indo-Pacific.
- The ongoing crisis has made countries aware of seriousness of Chinese dominance.
- This situation has given the U.S. opportunity it has long sought: 1) More credible multilateral coordination among allies, 2) Pushback against online disinformation. 3) The desire to better integrate like-minded economies and supply chains.
- But the crisis is also raising renewed questions about the American leadership.
- The question now facing the U.S. is whether or not it can harness this new regional momentum.
Alienating allies
- U.S. continues to make unforced errors that create distance with U.S. allies and partners.
- For example, its focus on cutting support for the WHO and asserting that COVID-19 originated in a Wuhan lab alienated Canberra.
- Similarly, the administration’s suspension of various worker visas will almost certainly have serious repercussions in India.
What should be the U.S. approach to Asia?
- The U.S. needs to make two major shifts.
- First, U.S. policy needs to start supporting, rather than attempting to commandeer, regional efforts to build a less China-centric future for the Indo-Pacific.
- While Chinese aggression provides powerful motivation for coordination, U.S. partners are seeking an agenda that is framed in broader terms than simply rallying to counter Beijing.
- If the U.S. wants to reduce reliance on Beijing and “re-couple” investments and supply chains among allied nations, it is going to have to make compromises.
- U.S. should work with Indo-Pacific partners on the issues that they prioritise and provided them with space for independent action.
- Second, Washington should avoid repeating Beijing’s mistakes of bullying.
- U.S. should offer a clear alternative in word and deed to China’s “Wolf Warrior” diplomacy.
- Moves such as demanding that a G-7 communiqué refer to COVID-19 as the “Wuhan virus” and blocking mask shipments to close allies are the kind of counterproductive bullying.
Options for Asian countries
- Beijing’s recent aggression is not an aberration but part of a growing pattern.
- As Beijing’s confidence in its growing material and military power solidifies, its neighbours will need to think carefully about the long-term decisions necessary to preserve an open regional order.
- Facing the unprecedented health and economic crises spawned by COVID-19, the U.S. and Asian partners will need to coordinate more closely.
- Asian countries should strengthen their own regional networks.
- This Asian network will challenge the views of those in both Washington and Beijing who would see the region only as a sparring ground.
Conclusion
For American and Asian leaders, the choice is stark: encourage and foster this trend, recognising that stronger regional coordination will require more compromises as well as tougher choices, or resist it and risk being left behind.
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From UPSC perspective, the following things are important :
Prelims level: European Union
Mains level: Paper 2- Commonalities and areas of cooperation with the EU
India and the EU have many things in common. And there are many areas in which both can expand the cooperation. This article explores commonalities and the areas which offer the scope for enhancing the cooperation.
Common interests
- Both aim to enhance strategic autonomy and their global standing.
- Diversifying strategic value chains is also a common interest.
- Both seek to address the issue of climate change on an urgent basis.
Economic ties with the EU
- The EU is India’s largest trading partner accounting for €80 billion worth of trade in goods in 2019.
- This is equal to 11.1% of total Indian trade.
- The EU is also the biggest foreign investor, with €67.7 billion worth of investments made in 2018.
- Which is equal to 22% of total FDI inflows.
Scope for improving the economic ties
- The EU’s investments in China amounted to €175.3 billion (2018).
- So, India could succeed in attracting EU investment that might be moving out of China.
- To attract this outflowing investment, India must address the mutual trust deficit.
- Enhanced business cooperation can help both the EU and India diversify their strategic value chains.
- Increasing people’s mobility and connectivity is another area that can create opportunities for innovation and growth.
Talks on FTA
- Both sides need to move further on the Free Trade Agreement.
- A new study from the European Parliament estimates the impact of an EU-India trade agreement between €8 billion and €8.5 billion.
- The study also mentions additional potential gains from enhanced coordination on the provision of global public goods, such as environmental standards.
Cooperation on climate change
- Under the new industrial strategy, the Green Deal, the EU has set an ambitious target to be carbon-emission neutral by 2050.
- If the EU and India succeed in transforming into carbon-neutral economies by 2050, we all would gain from the investment.
Strategic partnership with EU
- The Indo-Pacific region is becoming contentious, so India should capitalise on its geopolitical leverage there.
- Cooperation with like-minded, democratic powers can support this effort, especially towards assertive competitors like China.
- The EU as a whole offers more to India than the strongest bilateral relations with individual EU member state.
- New Delhi must learn how to maximise benefits from this strategic partnership.
- The disruption caused by COVID-19 has been the occasion for the EU to prove its worth.
- “Next-generation EU proposal” submitted by the European Commission has economic as well as geopolitical implications.
- The proposal shows that the ties that bind the EU extend well beyond treaties and individual members’ self-interest.
- The EU champions the rules-based international order, so the EU and India must act to promote sustainable reform of multilateral institutions starting from the WTO.
Consider the question “India-EU ties with many common interests assume significance as rule-based order is being challenged by the rise of exceptionalism. Comment.”
Conclusion
A strong partnership would help both the EU and India become global decision-makers and tackle the challenges caused by the disruption of global order collectively.
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From UPSC perspective, the following things are important :
Prelims level: Atmanirbhar Bharat Abhiyan
Mains level: Paper 3- Atmanirbhar Bharat Abhiyan and need for skilling the youth.
As India embarks on the path of self-reliance through Atmanirbhar Bharat Abhiyan, it has to nurture the skilled workforce. This article highlights the need to upgrade the skills or upskill the youth to meet the employment needs of technology-driven 21st century.
Context
- The effects of the pandemic are expected to have a lasting impact on every sphere of activity.
- Considering this impact, India announced the Atmanirbhar Bharat Abhiyan to propel the country on the path of self-sustenance.
Objectives
- Atmanirbhar Bharat has twin objectives- short term and long term.
- 1) Reviving different spheres of the economy in the short term.
- 2) Insulating India from any future global economic downturn, by making it robust in the long run.
- The Abhiyan seeks to build capacities across sectors and promote local products.
- Further, it would focus on scaling up manufacturing, accelerating infrastructure development, attracting investments and promoting a consumption-led growth.
Youth: Strength of India
- About 65 per cent of India’s population is below 35 years and 50 per cent is below 25 years.
- With a huge, educated young population, India is uniquely poised to realise its demographic potential.
- The fact that Indians are heading several MNCs shows that there is no dearth of knowledge and talent in the country.
- However, we need to upgrade the skills or upskill the youth to meet the employment needs of technology-driven 21st century.
Opportunities and challenges
- Pandemic and is being seen by many as an opportunity to upgrade their knowledge and acquire new skills.
- The fourth industrial revolution has triggered a paradigm change in which digital technology drives the job market.
- Remote working with increasing adoption of digital technology might continue to be dominant mode of working for the near future.
- It is estimated that nearly 70 per cent of the world’s learners are affected by school closures due to pandemic across education levels.
- Artificial intelligence, machine learning, data science, cloud computing and Internet of Things will be area of interest for companies.
- With people opting to online buying, companies will seek to adopt new online marketing strategies.
- Another important issue that needs to be addressed is ensuring equitable employment through higher participation of women in the workforce.
Way forward for Atmanirbhar Bharat
1) Local to glocal
- There have been some reassuring developments with an accent on “local to glocal”
- The production of several lakh PPE kits, a collaboration of automobile industries to produce ventilators, manufacture of more than 70 Made in India products by the DRDO are just a few examples of the capability of Indian scientists, IT professionals and technocrats.
2) Reducing import
- We must aim to gradually reduce imports in every sector from crude oil to heavy machinery.
- This reduction should be based on the locally available resources, talent, and skills of the human capital.
3) Globally competitive product
- While remaining vocal about local, we must aim at making Indian products to be globally competitive.
- We should try to stay ahead in the innovation-led knowledge economy.
- PSUs and the private sector should not only complement but collaborate wherever feasible.
- The private sector must massively step up investments R&D. PSUs too need to modernise in terms of technology.
Consider the question “Atmanirbhar Bharat Abhiyan has the aim of reviving the Indian economy. Examine its objective and how it seeks to revive the economy”
Conclusion
To remain globally competitive with a well-assured future, we need to focus on “skills, scale and speed”. India has the potential to emerge as the global hub for providing skilled manpower to other nations.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Police reforms and criminalisation of politics.
The root cause of impunity with which police perpetrated crimes lies in the in a nexus. The nexus between politicians, criminals and government functionaries needs to be broken down. This article suggests the ways to do that.
The context
- The recent custodial deaths in Tamil Nadu and encounter of a criminal by the UP police showed the police in a bad light.
- However, when we dig deeper into the problem we realise that its root lies in the nexus of politicians, criminals and the government functionaries.
Past attempt to break the nexus
- In 1993, the Vohra Committee had submitted a report on the nexus between the criminals, politicians and government functionaries.
- DIB suggested that an institution be set up to effectively deal with the menace.
- There were discussions in parliament, but the matter ended there.
- There was hardly any follow-up action.
Criminalisation of politics
- The number of members of parliament with criminal background has been going up with every successive election.
- It was, according to the Association of Democratic Reforms, 30 per cent in 2009, 34 per cent in 2014 and 43 per cent in 2019.
- The present UP Assembly has 36 per cent or 143 MLAs with criminal cases against them.
- This lead to the administration turning a blind eye to the illegal activities of the criminals.
- The nexus has proliferated and grown in strength down the years.
- It creates an environment where the criminals who are part of the nexus are able to dodge the due processes of law.
Suggestions
- 1) We must have a law which debars persons with serious criminal cases from entering the assemblies and the Parliament.
- 2) The criminal justice system must be revamped as recommended by the Malimath Committee.
- 3) The Supreme Court’s directions on police reforms must be implemented.
- 4) An institution comprising representatives of the police/CBI/NIA, IB, IT department, Revenue Intelligence and Enforcement Directorate should be set up to monitor the activities of the mafia and criminal syndicates in the country.
- 5) A Central act on the lines of MCOCA should be enacted to curb the activities of organised criminal gangs.
- 6) The concept of federal crime, as recommended by the Second Administrative Reforms Commission, should be accepted.
- Crimes with all-India ramifications or are trans-national in character, like those of terrorism and organised crimes, should be brought within the ambit of federal crimes.
Consider the question “The nexus of criminals, politicians and government functionaries is at the root of many problems the country faces today. Examine the problems created by the nexus and suggest ways to deal with the problem.”
Conclusion
We must, without further delay, build an environment where police become an instrument of service to the people, where monsters like Dubey do not thrive and become a menace to society.
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From UPSC perspective, the following things are important :
Prelims level: Smart Cities Mission
Mains level: Paper 2- Lack of focus on public health in smart cities mission
“Smart Cities Mission” lacks the focus on public health. This article highlights the consequences of this. The article suggests strengthening the of local governments and provisions for the livelihood through an urban employment guarantee scheme.
“Smart Cities Mission”: Progress so far
- The ‘Smart Cities Mission’, a flagship programme of the government, completed five years, in June 2020.
- The Mission had sought to make 100 selected cities “smart”.
- Cities are being developed under “Area-Based Development” model.
- Under this model, a small portion of the city would be upgraded by retrofitting or redevelopment.
- Many of the projects undertaken under the ‘Smart Cities Mission’ are behind schedule.
- According to the Ministry of Housing and Urban Affairs, of the 5,151 smart city projects, only 1,638 projects have been completed.
- In terms of expenditure, of the total investment of ₹2,05,018 crore, only projects worth ₹26,700 crore have been completed.
Lack of focus on Public health in Smart Cities Mission
- ‘Smart Cities Mission’ has given little importance to basic services such as public health.
- An analysis shows that only 69 of over 5,000 projects undertaken under the Mission were for health infrastructure.
- These projects are for an estimated cost of ₹2,112 crore, amounting to just around one per cent of the total mission cost.
- Hence, public health seems to be a major blind spot in India’s smart city dreams.
Public Health: Essential local government function
- ‘Smart Cities Mission’ had the stated aim of improving the quality of life of urban residents.
- Further, public health is an essential local government function in India’s constitutional scheme.
- As per the 74th Amendment ( 12th Schedule), “public health” is one of the 18 functions that are to be devolved to the municipalities.
- However, public health infrastructure of cities has often been neglected over the years.
Strengthening Local Governments
- Success of Kerala in containing the pandemic has shown how a decentralised political and administrative system can be effective.
- It is important to strengthen local government capacities.
- Investment in urban public health systems is needed.
- Promoting programmes that improve the livelihoods of urban vulnerable communities should be the priority.
- Programs such as the National Urban Livelihoods Mission and National Urban Health Mission, need to be strengthened.
Focus on Urban Employment
- It is time to consider the introduction of a national urban employment guarantee programme.
- Kerala has been running such a scheme since 2010.
- States such as Odisha, Himachal Pradesh and Jharkhand have also recently launched similar initiatives in the wake of the COVID-19 crisis.
Consider the question “Covid pandemic has highlighted the lack of focus on public health in our Smart Cities Mission. Suggest the measures to make our cities resilient and source of livelihood.
Conclusion
As Indian cities face an unprecedented challenge, it is important to get the priorities of urban development right and invest in programmes that improve the health and livelihoods of its residents.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Illegalities by the police
Custodial deaths in Tamil Nadu and death of a criminal in UP has brought to the fore the issue of illegalities carried out by the police. This article discusses the ways in which people face such illegalities and need for the reforms.
Issue of illegalities by police
- It is common practice in police stations to ignore the statute, laid down processes and Supreme Court guidelines.
- So frequent is the brazen disobedience to the law that a lot of illegality seems to have morphed into accepted practice.
Following are the ways in which police illegalities are carried out
1) Custodial deaths
- The National Crime Records Bureau records 853 custodial deaths between 2010 to 2018.
- At 1,636, the National Human Rights Commission puts the death figure much higher.
- For this, just 3 policemen have been convicted.
2) Issues of encounters
- The Supreme Court is clear that in each encounter case, an FIR must be registered and the matter probed independently.
- If false, an “encounter” is premeditated murder.
- Encounter threaten the basis of the rule of law.
3) Avoiding registering complaint
- Avoiding registration of complaint is the most common problem faced by the people.
- Even when the complaint is registered its magnitude is often diluted.
- It is difficult for women, in particular, to get crimes registered.
- So, in 2013, the law itself had to be changed.
- Now a policeman who refuses to register a complaint of a sexual assault faces a two-year sentence.
- The crime rate in India in 2018, it stood at 383.5 per 1,00,000 population.
- By contrast, the crime rate in the US was over 2,500 per 1,00,000 .
- This difference in crime rate highlights the reluctance by the police to registering crime.
- This low crime rate on paper makes a fine excuse for governments to leave vacancies unfilled, go short on equipment and upgrades.
- At 158, India’s police to population ratio which is police staff per 1,00,000 citizens, is one of the worst in the world.
4) Detention without cause
- People with prior records form a pool of easy pickings, as do the powerless.
- Often it is because the local public wants a quick arrest and the police want a scapegoat.
5) Discrimination in arrest and investigation
- In the Tuticorin custodial murder, it took six days, the Madras High Court’s dogged intervention and a national hue and cry before six policemen could be arrested.
- While police act swiftly in some cases, it goes soft against in other cases.
Mechanisms and Checks and balances
- There are many checks and balances from taluka to the national level to avoid police transgressions.
- Internally, there are disciplinary mechanisms.
- Outside, there are the courts.
- Every state has human rights commissions, special interest bodies like the scheduled castes and scheduled tribes, women, and minorities commissions, and some have the police complaints authorities.
- The Supreme Court’s clear directions coupled with the criminal code provide ample safeguards against excess.
Why these checks and balances fail
- In real life, internal mechanisms are overindulgent of illegal behaviour, obscure and dilatory.
- The first responder lower courts are constrained by capacity and circumstance.
- Very few of the over one hundred guardian bodies dotted around the country work effectively
Issues with the Guardian bodies
- Many bodies are without any functions and powers.
- Others are deliberately left understaffed and under-resourced.
- The Andhra Pradesh SHRC has no chairperson nor members.
- Gujarat, Bihar, Chhattisgarh, Kerala and Tamil Nadu SHRCs function with acting chairs.
- The few institutions that have the power and resources restrain their own functioning through terminal timidity.
Consider the question “Issue of the illegalities by the police raises the question of guarding the guardians. Examine the ways in which police illegalities are manifested and suggest ways to deal with the issue.”
Conclusion
The number and regularity of heinous crimes by the police calls out for root and branch repair of the police and the many guardian agencies tasked with keeping them lawful.
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From UPSC perspective, the following things are important :
Prelims level: FRBM Act
Mains level: Paper 2- Issue of devolution to state under the recommendations of 14th finance commission.
Faultlines in the Centre-State fiscal relations have widened due to Covid. This article examines how States are not getting what they should as per the 14th Finance Commission report.
Centre-state tussle
- The tussle for the rights of States has been focused on Article 356.
- Partial behaviour by the Governors, regional party governments were politically destabilised.
- Little was done to implement the report of Justice R.S. Sarkaria Commission on Centre-State relations.
- The new faultline in the Centre-State relation could be over the way report of 14th Finance Commission is being implemented.
- This began well before COVID-19, but the pandemic and its economic disruption have brought things to an edge.
Issues over the implementation of 14th Finance Commission report
- The 14th Finance Commission report in 2015 promised devolution of more finances to the States.
- As part of the process, States would have new responsibilities, especially in the social sector.
- The Goods and Services Tax (GST) regime was also justified as a grand bargain that would eventually leave all States better off.
- In reality, tax devolution to States has been consistently below 14th Finance Commission projections.
- One reason for this has been the economic slowdown, and lower-than-expected GST collections.
- The shortfall in GST collection for 2018-2019 was 22% when compared to projections.
- Payments to the States have been delayed as well.
- There is a ₹6.84 lakh crore gap between what the 14th Finance Commission promised to States and what they have received.
- States undertook programmes and projects spending 46% more than the Central Government; today the figure is 64%.
- Despite spending less than the states the Centre’s fiscal deficit exceeds the consolidated State deficit by 14%.
Need to revisit the FRBM provisions
- Due to pandemic, the fiscal deficit for States, collectively, is inevitably going to breach the projection of 2.04%.
- As per provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, the GSDP can actually accommodate a fiscal deficit of 3%.
- Now, post-pandemic, this limit will be crossed.
- The FRBM has an “escape clause” that allows for a one-time relaxation of the fiscal deficit threshold upto 0.5% in a time of exigency.
- The escape clause has been utilised by the Centre but it has proven woefully insufficient in addressing the current crisis.
- Fiscal policymakers and technocrats agree that the rigidity of the FRBM has to be revisited.
- It should allow for greater flexibility and consultation as to when and how the “escape clause” can be applied.
- The Centre has gone in for subjective interpretation, imposing conditions that are outside the scope of the FRBM.
Consider the question “Fiscal tensions have emerged as a new front in the Centre-State relations. Suggest the steps the Centre should take to address it.”
Conclusion
Centre government needs to be more considerate of the financial woes of the State and try to deliver on the recommendations of the 14th Finance Commission report.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Fiscal Council and why it won't be the solution
Why there is a need for Fiscal Council?
- With a complex polity and manifold development challenges, India need institutional mechanisms for prudent fiscal practices.
- An independent fiscal council can bring about much needed transparency and accountability in fiscal processes across the federal polity.
- International experience suggests that a fiscal council improves the quality of debate on public finance, and that, in turn, helps build public opinion favourable to fiscal discipline.
- In a globalised world of enormous capital flows, market volatility across the world and especially in emerging markets, in response to monetary policy changes in major economies, and geopolitical tensions that ebb and flow, causing currencies and commodity prices to swing, countries like India need macroeconomic management as an active function round the year.
- Also, it is supposed to report to the parliament regarding the practicability of government forecasts in the budget. This will make executive more responsible in budget preparation.
- For the last eight years the projections of the government has fallen short by a consistent 10 percent, leading to fund cuts in the middle of the year. Thus, an independent Fiscal council would evaluate budget proposals and forecasts using objective criteria.
- This would also boost confidence in global credit rating agencies about government’s fiscal commitment.
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From UPSC perspective, the following things are important :
Prelims level: The SC judgement
Mains level: Paper 2- Electoral reforms
This article discusses the issue of criminalisation in politics and the reasons for its persistence despite several judgements by the Supreme Courts to deal with the issue.
The Feb 2020 SC order
- In a February 2020 judgement the Supreme Court has asked the political parties to state the reasons for the selection of candidates.
- The Court also asked to specify as also as to why other individuals without criminal antecedents could not be selected as candidates.
- If a political party fails to comply, it would be “… in contempt of this Court’s orders/directions.”
- The political party and its leadership would for the first time have to publicly own up to criminalisation of politics.
- The judgment notes that “ in 2019 as many as 43% of MPs had criminal cases pending against them”.
- India is the only democratic country with a free press where we find a problem of this dimension.
What did the earlier orders require?
- (a) each candidate shall submit a sworn affidavit giving financial details and criminal cases.
- (b) each candidate shall inform the political party in writing of criminal cases against him or her.
- (c) the party shall put up on its website and on social media as well as publish in newspapers the names and details of such candidates.
Why the problem persists
- Survey after survey show that people around the country are unhappy with the quality of governance.
- Given limited choices, they vote as best as they can.
- Meanwhile, electoral bonds bring secrecy back into political funding.
- Several laws and court judgments have not helped much, as the data show.
- There lack of enforcement of laws and judgments.
- It is also not clear what penalty would be imposed if the recent orders are not followed.
Way forward
- Monitoring the affidavits of candidates can help in compliance.
- Working with the EC to ensure that information is promptly available on their websites.
- Widely circulating this information to voters using all the social media tools available.
- Monitoring the compliance with the Supreme Court judgment to see if details of tainted candidates are promptly put up on their websites, and on their social media handles, along with proper reasons for giving them ticket.
- Voters also need to be vigilant about misuse of money, gifts and other inducements during elections.
- The waters will be muddied with fake news, trolling, and fanciful claims, concerted efforts to tackle the menace of fake news are required.
Consider the question “Despite several judgements from the Supreme Court the issue of criminalisation in politics still persists. Examine the reasons for the persistence of the issues. Suggest the measures to deal with the issues.”
Conclusion
we may not see dramatic changes in the quality of candidates. Campaigns may continue to be more and more personal and even abusive. But all these steps are required, however insignificant they may seem.
Original link
https://www.thehindu.com/opinion/lead/owning-up-to-criminalisation-in-politics/article32035186.ece
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Overhauling India's digital payments, accounting and transactions.
This article examines the issues with governments account problems and their implications. It also suggests the ways to deal with the problems with data management in India.It is is line with the suggestions made by the CAG in this regard.
Problem with government account keeping
- The Union budget grew from Rs 197 crore in 1947 to Rs 30 lakh crore last year.
- Total government expenditure may be higher than Rs 70 lakh crore. (states+union)
- But the form and manner of keeping accounts have more or less remained unchanged since Independence.
- Manual transactions and manual payments often lead to manually entered data at different stages in different databases on different systems.
- This makes data unreliable, violates the principle of “single source of truth”.
- This also sabotages transparency and good governance.
Issues with computerisation by government
- Government “computerisation” has often mechanised manual processes rather than “re-engineered processes”.
- This has created siloed IT systems.
- It has created various separate databases that lack modern data sharing protocols for organic linking like APIs (Application Programming Interfaces).
- It leaves fiscal data being incomparable as basic as salary expenditure across states.
- It creates the problem of obscurity in which large expenditures are booked under omnibus head called other.
- Non-traceable actual expenditure against temporary advances drawn or funds drawn on contingent bills.
- It creates the problem of misclassification so that grants in aid is classified as capital expenditure and bookings under suspense heads.
3 Steps to deal with the issues
1) 100% end-to-end data capture
- All receipts and expenditure transactions including demands, assessment, and invoices should be received, processed, and paid electronically.
2) Data governance for standards
- Data standards are rules for describing and recording data elements with precise meanings that enable integration, sharing, and interoperability.
- Prescribing data elements for all transactions will ensure standardisation.
- This standardisation will clarify ambiguity, minimise redundant data, and create protocols for integration across different databases across entities receiving government funds.
- It will also integrate entities collecting revenues on behalf of the government, and those discharging core functions on behalf of the government.
- Government-wide data standards coupled with real-time data captured end-to-end will enable the use of cognitive intelligence tools like analytics, artificial intelligence, machine learning.
- These tools, will support the establishment of budget baselines, detecting anomalies, data-driven project/activity costing, performance comparisons across departments and agencies, and benchmarking.
3) Technology architecture
- The element of technology architecture must ensure that all IT government systems should conform to a prescribed open architecture framework.
- This framework should ensure robust security and maintaining privacy.
How will these 3 steps help
- It will help in recognising off-budget transactions, the last Union budget took steps towards this fiscal transparency and consolidation.
- These steps will ensure business continuity: electronic records cannot be lost or misplaced like files or paper records.
- It will also provide an incontrovertible audit trail.
- It will enable Parliament and legislatures to draw “assurance” that each rupee due to the government has been collected, and each rupee has been spent for the purpose it was allocated.
Consider the question “Government expenditure has increased manifold since 1947 but the form and manner of keeping data have remained more or less the same. In light of this examine the issues with payments, accounting and transactions data system of the government. Suggest the measures to improve it.”
Conclusion
A citizen-centric view of a single source of truth encompassing every rupee of public money would make the 299 remarkable people who wrote India’s Constitution proud of this 21st-century citizen empowerment innovation.
Original Op-ed
https://indianexpress.com/article/opinion/columns/digitising-the-state-6496692/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 16 (4A)
Mains level: Paper 2- Reservations and issues with it
Provision of reservation has helped in correcting the historical injustice in some way. However, the recent decline in government jobs and policy changes could undermine the provision of reservation.
How reservation helped SCs and OBCs: Some figures
- In the Central Administrative Services, SCs reached 14 per cent of the Class C in 1984.
- They reached 14.3 per cent of Class B in 2003.
- In Class C,13.3 per cent in 2015.
- In the Central Public Sector Enterprises (CPSEs), their proportion rose from 14.6 per cent in 2004 to 18.1 per cent in 2014.
- In parallel, the SCs’ literacy rate jumped from 21.38 per cent in 1981 to 66.1 per cent in 2011.
- After the Mandal Commission report was implemented, OBCs started to benefit from it.
- In 2013, OBCs – 52 per cent of India’s population according to the Mandal report – represented 8.37 per cent of Class A in the Central Government Services, 10.01 per cent of Class B and 17.98 per cent of Class C.
- Their percentage in the CPSEs jumped from 16.6 per cent in 2004 to 28.5 per cent in 2014.
Number of jobs declining
- First, the number of vacancies has surged, from 5.5 lakh in 2006 to 7.5 lakh in 2014 so far as central government employment is concerned.
- Second, the total number of employees has dropped between 2003 and 2012, from 32.69 lakh to 26.30 lakh in the Central Government Services.
- The number of Dalits benefiting from reservations has been reduced by 16 per cent from 5.40 lakh to 4.55 lakh.
- While the number of OBCs benefiting from reservations had jumped from 14.89 lakh in 2008 to 23.55 lakh in 2012, it has dropped to 23.38 lakh the year after.
- Reservations have also been undermined by lateral entry into the bureaucracy.
- This new procedure undermined the reservations system because the quotas did not apply.
Judgements that affect the idea of reservation
- In one judgment the UGC was allowed to shift the unit of provision of reservations from a university as a whole to the departmental level.
- Such a shift has reduced the quantum of reserved seats and restricted the entry of lower castes.
- Small departments, where vacancies are few, would be indivisible — thereby no seats would be reserved.
- As a result, only 2.5 per cent posts were reserved for SCs, none for STs and 8 per cent for OBCs.
- However, the impact of the ordinance and the subsequent Bill passed by the Parliament in March and July 2019, reversing the Supreme Court’s judgment, is yet to be seen.
- In another judgement, Supreme Court ruled that reservation in job promotions was not a fundamental right.
- This ruling undermined the effect of an amendment to the Constitution that had been introduced by the Narasimha Rao government in 1995 and that had resulted in article 16(4A).
- Article 16(4A) had circumvented a facet of the 1992 decision of the Supreme Court to allow reservation for SCs and STs in promotions.
- In 2001 the 85th amendment extended the benefit of reservations in favour of the SCs/STs in matters of promotion with consequential seniority.
- This time, in 2020, the Government of India has decided not to contest the decision of the Supreme Court.
Policy changes that affect the reservation
- The National Commission for Backward Classes has issued a notice to the health ministry complaining that the post-Mandal 27 per cent quota was not implemented systematically.
- The funds earmarked for Dalit education in the Indian budget were reduced by the previous government.
- While this budget item, within the Special Component Plan is supposed to be proportional to the demographic weight of the Dalits, 16.6 per cent, it fluctuated between 9 and 6.5 per cent.
Conclusion
Reservations have been one of the most effective techniques of positive discrimination in India and helped in the goal of delivering social justice. So, any policy that affects it must be reconsidered.
Original link
https://indianexpress.com/article/opinion/columns/reservation-in-india-privatisation-push-nirmals-sitharaman-backward-castes-6494931/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CEA
Mains level: Paper 3- Challenges renewable energy faces and solutions
The article analyses the problems renewable energy faces in India and suggests the pathways to overcome these challenges.
India’s commitments and goals
- India has committed in the 2015 Paris Agreement to reduce GHG emissions intensity by 33-35% below 2005 levels.
- It also committed to achieve 40% of installed electric power capacity from non-fossil sources by 2030.
- At the UN General Assembly in 2019, we announced a target of 450 GW of renewable energy (RE) by 2030.
Let’s look into CEA study
- The optimal electricity mix study of the Central Electricity Authority (CEA), estimated 430 GW non-hydro renewables (280 GW solar + 140 GW wind + 10 GW bio) by 2030.
- Study put thermal capacity at 266 GW by 2030.
- So, it puts the percentage of non-fossil fuel (RE + hydro + nuclear) in installed capacity by 2030 at 64%.
- Which is much higher than India’s Paris commitment.
Coal contradiction
- The target for coal production at 1.5 billion tonnes, which was set in 2015, has been reinforced recently to be achieved by 2024.
- Privatisation of coal mining and recent auctions have given a meaningful thrust to this.
- Looked at the target set for renewable energy, targets for cola production convey contradictory signals.
- The targeted coal production of 1.5 billion tonnes, even by 2030, would mean thermal generation capacity could double over the current 223 GW.
- In that case, even with targeted RE capacity, we will not achieve our emissions intensity Paris commitment.
- Can a global green champion announce doubling its coal production in five years?
Problems with Renewables
1. Policy Issues
- Solar deployment has seen policy challenges both from Centre and states, these include-
- Continuous changes in duty structure.
- Renegotiation of PPAs.
- Curtailment of solar power.
- Extremely delayed payments in some states.
- Policy flip-flops on open access and net metering.
- Delays by state agencies and regulators.
- Land possession difficulties.
- Transmission roadblocks even in solar parks.
2. Solar cell manufacturing constraints
- Our capacity for cell manufacture is 3 GW, though workable capacity is actually around 2 GW.
- Domestically manufactured cells are more expensive and less efficient.
- There is little upgrade in a rapidly changing world of technology.
- 90% of cells and 80% modules are imported largely from China or Chinese companies elsewhere.
- Wafer imports are 100% as we don’t manufacture ingots/wafers.
- For every GW with an average cost of Rs 5,000 crore in 2019, more than half goes to China.
3. Storage constraints
- Hydro pump storage is limited in quantity and there will be an issue of costs.
- The other project is a solar-wind hybrid with batteries installed after a few years.
- Neither intends to meet peak power demand or even the baseload.
- Forecasts suggest lowering of battery costs by 50% by 2030.
- It makes sense to wait before we go for large-scale storage.
Manufacturing domestically
- 1) At the least plan to make 5 GW of ingot/wafer manufacturing capacity urgently.
- We may require electricity supply at about Rs 3 per unit, and dedicated power plants.
- The risk of technology obsolescence would need to be factored in.
- Policy, fiscal and financial support prescriptions should aim at creating globally competitive industry.
- 2) We need to develop batteries suitable for extreme Indian weather conditions but globally benchmarked.
- This demands a mission approach, getting our best people and institutions together, properly funded and tasked to get a battery out in the next three years.
- 3) We must also simultaneously launch a hydrogen mission—target heavy vehicle mobility through fuel cells.
- It may become a solution for RE storage, too.
The issue of supply-demand mismatch
- In the last two decades, we have been overestimating demand and increasing supply.
- Our demand projections for 2030 are wildly high.
- PLF in 2018-19 was 60.30, declining to 56.08 in 2019-20 and hovering around 50% with the Covid-19 impact.
- Even the latest CEA review of ‘optimal’ mix talks of thermal PLF of 59% in 2030!
- This is inefficient and costly.
- Thermal PLF must be taken to over 80%.
The suggested pathways
- 1. Build thermal capacity as per CEA estimates and quickly. None after 2030. Retire inefficient plants. Plan for miner rehabilitation.
- 2. Accelerate RE after 2030 with storage. Aim for 10 GW solar and 5 GW wind annually.
- 3. Develop 5-10 GW ingot/wafer manufacturing capacity urgently and diversify import sources even at some extra cost.
- 4. Develop a battery for Indian conditions in three years; full battery manufacturing in India in five years.
- 5. Revisit the manner of solar generation. Prioritise decentralised and solar agriculture.
- 6. Plan for hydrogen economy with pilot projects and dedicated highways for long and heavy haul traffic.
- 7. Put a strong energy demand management system into place with much stronger energy efficiency and the conservation movement.
Consider the question “Central Electricity Authority finalised the optimal electricity mix study recently setting the targets for the future. Examine the constraints that expansion of solar energy faces and suggest the pathways to overcome the challenges.”
Conclusion
Embracing the RE will help India economically and strategically. It will also help it achieve its targets in its fight against climate change.
Back2Basics: Central Electricity Authority
- Central Electricity Authority (CEA) is an organization originally constituted under Section 3(1) of the repealed Electricity (Supply) Act, 1948, since substituted by Section 70 of the Electricity Act, 2003.
- It was established as a part-time body in 1951 and made a full-time body in 1975.
- The functions and duties of CEA are delineated under Section 73 of the Electricity Act, 2003
Plant Load Factor (PLF)
- Plant Load Factor (PLF) is the ratio of average power generated by the plant to the maximum power that could have been generated for a given time period.
Original Op-ed
https://www.financialexpress.com/opinion/what-india-should-do-to-get-its-energy-transition-right/2016648/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Achievements of Indians
Prasanta Chandra Mahalanobis, India’s ‘Plan Man’ and the architect of the country’s statistical system is more relevant now in times of Covid pandemic when we grapple with the lack of data.
Analysing 1944 Bengal famine
- He conducted a large-scale sample survey of Bengal’s famine between July 1944 and February 1945.
- Sample survey helped in causal analysis and to assess the extent of the disaster and an estimate of the number of people affected.
Relevance today
- Bengal’s famine survey reminds us that we need estimates of the millions who will lose jobs or livelihoods in today’s pandemic.
- The extent of feasibility, success and problem of online access also needs to be properly estimated in this new dawn.
- Mahalanobis is perhaps more relevant today when the accuracy of different sorts of data is under the scanner.
- Mahalanobis envisaged large-scale sample surveys as statistical engineering rather than pure theory of sampling.
- He was instrumental in establishing the National Sample Survey (NSS) in 1950 and the Central Statistical Organization in 1951.
Data accuracy
- Mahalanobis was very careful about data accuracy in his surveys.
- In Kautilya’s Arthashastra, there is mention of the need for cross-checking by an independent set of agents for data collection.
- This, according to Mahalanobis, was the “striking feature in the Arthashastra”.
- This might have prompted him to have an independent supervisory staff during the conduct of field operations by the NSS.
- His initial training in Physics might have made him conscious about errors in measurement and observation.
- The desire to have built-in cross-checks and to get an estimate of errors in sampling led him to introduce the Inter-Penetrating Network of Subsamples.
- The network is considered as the curtain-raiser for re-sampling procedures like Bootstrap.
- Bootstrap is a revolutionary concept of statistics.
Difficulties in conducting surveys
- Even Mahalanobis could have faced hardship had he wished to conduct surveys now.
- First, even in pre-COVID-19 India, it’s widely reported that surveyors were facing tremendous resistance from people due to some sociopolitical reasons.
- Pronab Sen, Chairman of the Standing Committee on Economic Statistics, and former Chief Statistician, expressed his concern that the survey system is already in “deep trouble”.
- Conducting household surveys with the Census as the frame would be “very tough” going ahead.
- The problem will intensify due to COVID-19.
Use of technology for survey
- Mahalanobis never shied away from technology.
- He was instrumental in bringing computers to India.
- The Mahalanobis-led Indian Statistical Institute procured India’s first computer in 1956 and the second in 1959.
Consider the question asked in 2019 “How was India benefitted from the contributions of Sir M.Visvesvaraya and Dr M. S. Swaminathan in the fields of water engineering and agricultural science respectively?”
Conclusion
Mahalanobis wrote: “Statistics are a minor detail, but they do help.” This is an eternal truth. What Mahalanobis didn’t spell out is that one needs a top statistician for listening to the heartbeats of data and for framing data-based policy decisions for human welfare and national development.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: The East China Sea, the Bohai Sea, the Yellow Sea, the South China Sea
Mains level: Paper 2-India's Indo-Pacific vision and China's BRI
As India tries to diffuse the tension along the disputed northern border with China, it must focus on the other potential fronts that China could open. India Ocean could be the next one. This article examines the centrality of the Indian Ocean for China and their approach to the region.
India’s Indo-Pacific vision
- This vision is based on our historical associations with this region.
- This vision also acknowledges the importance of the Indian Ocean in building prosperity in this century.
- So, the key points of this vision are thus-
- 1) Inclusiveness, openness and ASEAN centrality and unity.
- 2) India does not see the Indo-Pacific Region as a strategy or as a club of limited members.
- 3) It is not directed against any country.
China should have equal access
- China is not a littoral state in the Indian Ocean.
- Historically, Chinese naval activity was limited to the East China Sea, the Bohai Sea, the Yellow Sea, and the South China Sea.
- In today’s context, China is the second-largest economy and the world’s largest trading nation.
- The sea-lanes of communication in the Indian Ocean are vital to her economy and security.
- Under international law, China should have equal access to the Indian ocean.
China’s “Malacca Dilemma”
- China thinks that others would block the Malacca Straits to “contain” the Chinese.
- So, China has strategized to dominate not just the Malacca Straits, but the ocean beyond it.
- The PLA Navy (PLAN) made its first operational deployment in the Gulf of Aden in 2008.
- In 2009 China planned for overseas base or facility.
- In 2010 a China State Oceanic Administration report alluded to plans to build aircraft carriers.
BRI: Overcoming the deficiencies China face in India Ocean
- The US hegemony and India’s regional influence in the Indian Ocean are thought of as a challenge to China.
- So, China focused on 3 inherent deficiencies that they wanted to overcome.
- (a) China is not a littoral state.
- (b) Its passage through key maritime straits could be easily blocked.
- (c) The possibility of US-India cooperation against China.
- How to overcome these deficiencies?
- (1) carefully selecting sites to build ports — Djibouti, Gwadar, Hambantota, Sittwe and Seychelles.
- (2) By conducting activities in a low-key manner to “reduce the military colour as much as possible”.
- (3) By not unnerving India and America by cooperating at first, then slowly penetrating into the Indian Ocean, beginning with detailed maritime surveys, ocean mapping, HADR, port construction and so on.
China acting on the plans
- The PLA’s new base in Djibouti is the prototype for more “logistics” facilities to come.
- More port construction projects like Gwadar and Hambantota, are being offered to vulnerable countries.
- These projects are commercially unviable but have military possibilities,
- Chinese “civilian” vessels routinely conduct surveys in the EEZ of littoral states.
- In January 2020 the PLA Navy conducted tripartite naval exercises with Russia and Iran in the Arabian Sea.
- They have the largest warship building programme in the world.
Consider the question “What constitutes India’s Indo-Pacific vision? Elaborate on the factors that explain China’s reluctance to subscribe to this vision.”
Conclusion
The idea of Indo-Pacific might potentially derail the carefully crafted Chinese plan. So, they now wish to cause alarm by raising fears about Great Power “strategic collision” caused by the so-called American-led “containment” strategy. It is important to look past their propaganda.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Policy changes and reforms needed for growth of India
There is no doubt that an economically prosperous India will be well placed to deal with China effectively. So, to achieve this prosperity India urgently needs to embark upon the path of reforms.
How much China has moved ahead
- In 1987, both countries’ nominal GDPs were almost equal.
- China’s economic opening-up has left India behind, contributing to a military imbalance.
- China’s economy was nearly five times larger than India’s in 2019.
- Not coincidentally, from rough parity in 1989, China’s military spending last year more than tripled India’s.
- Heightened vigilance along the LAC demands summoning scarce resources.
- If India cannot close the economic gap and build military muscle, Beijing may feel emboldened to probe the subcontinent’s land and maritime periphery.
Reforms: Key to progress
- In 1991, India enacted changes allowing markets to set commodity prices.
- But it did not similarly liberalise land, labour and capital.
- Now, the government has delivered mixed messages about a revitalised reform agenda.
- Some States have temporarily lifted labour restrictions.
- Some others intend to make land acquisition easier.
But a call for self-sufficiency could do harm
- India emphasis on self-reliance could inhibit growth and constrain investment in a more vigorous foreign and defence policy.
- Greater self-sufficiency is desired.
- Home-grown manufacturing of critical medicinal ingredients or digital safeguards on citizens’ personal data would reduce vulnerabilities.
- Imposing restriction to help the local defence industry would hamper acquisitions helping balance China.
Competition from other countries
- China is facing intense scrutiny for its role in the pandemic, geopolitical competition, trade wars, and economic coercion.
- Businesses are revisiting whether or not to diversify suddenly exposed international value chains.
- India’s competitors [like Bangladesh, Vietnam] are trying to attract the businesses shifting out form China.
- These countries are highlighting their regulatory predictability, stable tax policies, and fewer trade obstacles.
- While India remains outside the Regional Comprehensive Economic Partnership, competitors are wooing companies seeking lower trade barriers.
- Asian countries are pushing ahead: Vietnam just inked a trade deal with the European Union that threatens to eat into India’s exports.
Way forward
- India needs increased exports and investments to provide more well-paying jobs, technology.
- Before committing to long-term, multi-billion investments, companies often want to test India’s market through international sales.
- Liberalisation remains the tried-and-true path to competitiveness.
- If India can unite its people and rapidly strengthen capabilities, it will likely discover that it can deal with China effectively.
Consider the question “Do you agree with the view that slowdown in the reforms in land, labour and capital after the reforms of 1991 restricted Indias economic progress? Give reasons in support of your argument.
Conclusion
The choices that India makes to recapture consistent, high growth will determine its future. Bold reforms offer the best option to manage Beijing and achieve greater independence on the world stage.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Export of India's agricultural products
Mains level: Paper 3- Increasing India's net agri-exports
India has been the net exporter of agricultural commodities since 1991, however, there is scope for increasing its net export. This article suggests the strategy to achieve this.
Foreign exchange reserve: then and now in terms of grains
- In the mid-1960s the country had about $400 million.
- If India had spent all its foreign currency reserves just on wheat imports, it could have imported about seven million tonnes (mt) of wheat.
- Today, India has foreign exchange reserves of more than $500 billion.
- Even if the country has to buy 20 mt of wheat at a landed cost of $250/tonne, it will spend just $5 billion it is just one per cent of its foreign exchange reserves.
- In that sense, the biggest reform in the last three decades that has led to “aatma nirbharta” in food is the correction of the exchange rate.
- Another factor is coupling and the gradual integration of India with the world economy.
- This has helped India increase its foreign exchange reserves from $1.1 billion in 1991 to more than $500 billion today.
India: Net exporter of agricultural products
- India has been the net exporter of agricultural products ever since the economic reforms began in 1991.
- The golden year of agri-trade was 2013-14 when net agricultural trade surplus was $24.7 billion.
- In 2019-20, agri-exports were just $36 billion, and the net agri-trade surplus at $11.2 billion.
- With this dull performance doubling agri-exports by 2022 looks almost impossible.
Let’s look at what India exports
- Marine products with $6.7 billion exports top the list.
- The second is rice at $6.4 billion of which basmati is at $4.6 billion and common rice at $2.0 billion.
- Next is spices at $3.6 billion.
- Other items are buffalo meat at $3.2 billion, sugar at $2.0 billion, tea and coffee at $1.5 billion, fresh fruits and vegetables at $1.4 billion, and cotton at $1 billion.
Strategy to increase export
- If one chalks out a strategy we would need to keep in mind the principle of “comparative advantage”.
- That means exporting more where we have a competitive edge, and importing where we lack competitiveness.
- Together power and fertiliser subsidies account for about 10-15 per cent of the value of rice and sugar produced on a per hectare basis.
- So, we should offer similar incentives for exports of high-value agri-produce like fruits and vegetables, spices, tea and coffee, or even cotton, as we do for rice and sugar?
Decreasing the edible oil imports
- On the agri-imports front, the biggest item is edible oils — worth about $10 billion i.e. more than 15 MT.
- India needs to decrease imports through augmenting productivity and increasing the recovery ratio of oil from oilseeds and in case of palm oil, from fresh fruit bunches.
- The maximum potential of increasing production lies in oil palm.
- This is the only plant that can give about four tonnes of oil on a per hectare basis.
- India has about 2 million hectares that are suitable for oil palm cultivation — this can yield 8 mt of palm oil.
- But it needs a long term vision and strategy.
Issue of subsidy to rice and sugar
- Rice and sugar cultivation are subsidised through free power and highly subsidised fertilisers, especially urea.
- It is leading to the virtual export of water because of their high water requirements.
- One kg of rice requires 3,500-5,000 litres of water for irrigation, and one kg of sugar consumes about 2,000 litres of water.
- This leads to increased pressure on scarce water and highly inefficient use of fertilisers.
- It may be worth noting that almost 75 per cent of the nitrogen in urea is not absorbed by plants.
- It either evaporates into the environment or leaches into groundwater making it unfit for drinking.
Consider the question “While India has been the net exporter of agricultural products ever since the economic reforms of 1991, it is far from realising its potential to become the leading agri-produce exporter. In light of this, suggest the strategy that India should follow to increase India’s net agri-exports.”
Conclusion
The government must focus on augmenting export and decrease import dependence in agricultural products which will further its goal of aatmanirbharta and doubling the farmers’ income.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FDI
Mains level: Paper 3- Differentiating between trade and investment
Differentiating between trade and investment is necessary for reaping the benefits that come with foreign investment in firms. However, the concerns over the source of funds are not unfounded. So, some caution is warranted in dealing with FDI.
Let’s look into the debate
- Government is asking its citizens to aim for self-reliance.
- So, should India continue to allow investment inflows from China? This is the debate.
- China has invested $4 billion in Indian startups in the past 5 years.
- This amount would be higher if funds located in tax havens with Chinese ownership are also accounted for.
Some of the questions raised in the debate
- Is trade of products like buttons, crockery same as long-term foreign investments in high-risk new age technology-driven products?
- Is it economically prudent for a country to fulfil all its capital requirements or compromise on innovation due to lack of thereof?
Trade vs FDI
- Trade just helps the country fulfil its requirements of those goods and services (G&S) that may not available in the country.
- Investments provide the capital to build infrastructure that can plug the G&S deficit, even, sell it to other markets.
- Trade just provides entry of G&S.
- FDI inflow is a route for transferring capabilities, technology, building linkages, business capabilities etc.
- FDI helps generate employment, public assets, tax revenues and develop markets, none of this is contributed by the trade of merchandise.
- Foreign investment does have an adverse impact on domestic markets in the short-run by crowding out domestic competition or investment.
- In fact, attracting FDI in employment-intensive sectors can create positive economic and social spillovers.
- Possibilities to increase exports often arise from companies with significant levels of FDI.
- Foreign investor exposes itself to regulatory, economic and geo-political risks of the country.
Foreign investment in Indian firms: Two aspects to consider
- While discussing the funding composition of the likes of Paytm, OYO hotel chain or Ola, two aspects need to be considered.
- 1) These companies are Indian companies operating under the law of land, creating economic opportunities for the youth and contributing to the welfare of the Indian community.
- 2) Success of these ventures is not solely due to the investment, but because of the novelty of the product offering.
- Investments in start-ups involve high risk; the list of failed start-ups with Chinese investment is bound to be much longer.
- In the absence of technology giants in India, we may also end up draining the brain to countries with a stronger financial ecosystem for fresh ideas.
Apprehension over FDI in India
- Apprehensions related to investments from any country per se, are not unwarranted in India.
- This is mainly because history suggests foreign investment can potentially lead to economic colonisation.
- However, times have changed and so has the world order.
- Steady inflow of investments can exist without impacting the economic or political stability of the country.
- To do so we should practice some of the following recommendations.
How to address the concern over FDI
- Investment funds can be set up outside the home country of the investor or be routed through companies located at tax havens.
- It is not always possible to map the investor to the country.
How to solve this problem
- To solve this identify sectors based on sensitivity, the investment required, technology, employment and social impact.
- Tighten regulations related to data storage and access by companies through data localisation in these sensitive sectors.
- Modify the offset policy in defence to ensure a certain portion of the profits is invested in the SMEs.
- To further India’s interests in nascent sectors such as machine learning, HealthTech, maximum period for an investor to be invested in a greenfield should be limited to 10 years.
- All firms receiving foreign investment should have a plan to contribute to India’s exports within the product lifecycle and minimum employment generation.
- Ease listing norms for firms so that funds through public and private placement can be raised by wholly Indian owned companies.
- BSE SME & Start-ups Platform has helped 322 companies raise Rs. 3,320.48 crores from the market. Start-ups should be encouraged to make use of the platform wherever possible.
- Domestic procurement of raw material and intermediate goods has to be non-negotiable as far as possible.
Consider the question “What are the challenges and opportunities associated with foreign investment and suggest the ways to address the challenges.”
Conclusion
From being treated as a ‘dumping bazaar’ to now attracting investors, India does not need to shy away from investments; it certainly needs to be wary of pure trade which limits India’s potential and drive to produce indigenously.
Back2Basics: Offset policy
- The offset policy, introduced in 2005, mandates foreign suppliers to spend at least 30% of the contract value in India.
- It was first revised in 2006 and then again in 2011 and in 2016. Another round of tweaking is currently underway.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: APIs
Mains level: Paper 3- Indian pharmaceutical industry
Abrupt ban on import from China would harm the India pharmaceutical industry and disrupt the supply of several essential medicines. Any attempt at reducing the dependence on China for APIs should be strategies, argues the author.
Dependence of Indian pharma industry on China
- India is the third-largest producer of finished drugs in the world.
- However, India relies significantly on China for supplies of active pharmaceutical ingredients APIs.
- An estimated 70 per cent of API requirements of India’s pharmaceutical industry are sourced from China.
- For some drugs, such as paracetamol and ibuprofen, this dependence is almost 100 per cent.
- This import reliance has been fuelled by environmental controls in India and competition with China, which has higher volumes of production and lower costs.
Implications of banning import from China
- Restricting or banning the import of APIs would cause significant disruption to the Indian pharmaceutical industry
- The pharmaceutical industry had $40 billion in revenues in 2018-19, according to Pharmexcil.
- Such a prospect is especially of concern to potential patients.
- Indian pharmaceutical industry annually exports $20 billion worth of medicine.
- An ad hoc or reactive decoupling could disrupt the production of a wide range of medicines in India and globally.
- Such disruption could affect the availability of Dexamethasone and painkillers, such as paracetamol and ibuprofen, as well as antibiotics, such as penicillin.
- The impacts would be especially high in low and middle-income countries.
- In many African countries, in fact, India supplies almost 50 per cent of the medicines in value terms.
Lessons from the past: Policy initiative matters
- Market share of foreign-owned multinationals in India was 80-90 per cent in 1970 in the pharmaceutical industry.
- It fell to 50 per cent by the early 1980s, and down to 23 per cent today.
- The prices of medicines in India fell from being amongst the highest in the world to amongst the lowest.
- But this did not happen through sudden decoupling from foreign multinationals or a complete boycott or ban on imports.
- The 1970 Indian Patent Act removed product patent protection in pharmaceuticals.
- So, the 1970 Patent Act is widely lauded for facilitating the growth of India’s industry.
- India also benefited from the 1973 Foreign Exchange Regulation Act (FERA) and the subsequent New Drug Policy (1978).
- Thus, a series of policy initiatives succeeded in tilting the balance in favour of Indian-owned firms.
But does it mean we have to depend on China forever?
- No, but reducing dependence on China will not be easy to achieve.
- In India, any decoupling from China must be strategic, with significant policy support.
- It will take time for a paced indigenisation.
Government moves to reduce dependence for API
- In March, the government announced Rs 3,000 crore to develop three bulk drug parks.
- The government also announced Rs 6,940 crore to manufacturers of 53 bulk drugs over the next eight years.
- Planning ahead towards greater domestic production of APIs, as well as reduced dependence on China, is an understandable and sensible policy objective.
- Despite a decline in recent decades, India has a stronger starting point than most countries given the continued presence of some API production capabilities.
- Indian firms have capacities, for instance, to produce COVID-19 treatments, including Remdesivir.
Consider the question “What are the APIs? Why India depends on other countries for it and what are implications of it? Suggest ways to reduce this dependence.”
Conclusion
In the short run, boycotts or bans would be counter-productive for the Indian industry, while also affecting access to much-needed medicines to India’s citizens and beyond. In the long run, however, reducing dependence on China would be strategically prudent.
Back2Basics: What are APIs?
- Active pharmaceutical ingredient (API), is the term used to refer to the biologically active component of a drug product (e.g. tablet, capsule).
- Drug products are usually composed of several components.
- The API is the primary ingredient.
- Other ingredients are commonly known as “excipients” and these substances are always required to be biologically safe, often making up a variable fraction of the drug product.
- The procedure for optimizing and compositing this mixture of components used in the drug is known as “formulation.”
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UNSC
Mains level: Paper 2- India as non-permanent member of the UNSC
As a non-permanent member of the UNSC for the next two years, India will have to navigate through a tumultuous world. Anti-terrorism will be top priority for India.
India at UNSC
- India will be back in the United Nations Security Council for a two-year term beginning January 1, 2021.
- Two-year term will be a critical time in the history of the UN.
- It is hoped that by then COVID-19 will have subsided, a U.S. President will have been elected.
- And the contours of a new world order may have emerged.
How elections take place
- The basic contest for the non-permanent seats takes place in the respective regional groups and their sub-groups.
- Voting in the General Assembly is to fulfil the requirement of countries having to secure a two-thirds majority of the member states.
- But regional endorsement is becoming difficult.
- Last time, it was Kazakhstan which vacated the place for India.
- This time, it was Afghanistan. India could not have got the endorsement without such gestures from friendly countries.
What will be India’s priorities as a member of UNSC
- India will continue to provide leadership and a new orientation for a reformed multilateral system.
- How far the UN will be able to reform itself in the new situation remains uncertain.
- The UN did not succeed in either defining terrorism or in adopting the Comprehensive Convention on International Terrorism.
- Counter-terrorism will be one of the highest priorities for India at the UNSC.
Permanent member of India issue
- India’s election as a non-permanent member has understandably ignited the hope that its quest for permanent membership.
- Nothing is farther from the truth.
- Seeking to amend the Charter to add new permanent members is difficult task.
- None of the proposals has the possibility of securing two-thirds majority of the General Assembly and the votes of the five permanent members.
- A majority of the UN members are against the privileges of the permanent members, particularly the veto.
- India’s performance in the Council will not lead to its elevation to permanent membership as the opposition to any expansion is not India-specific.
Role of India as non-permanent member
- The non-permanent members have a collective veto over every resolution in the Council.
- As a part of collective veto, India will have a higher profile at the UN for the next two years
- Permanent members can prevent the adoption of resolutions by themselves through veto.
- But they need at least nine votes to get a resolution passed.
- India will also have a rare peep into the consultations chamber of the UNSC, which is closed to non-members of the Council.
- India will get involved in many issues in which it may not have any direct interest.
- Since India does not have a veto, it shall have to proceed cautiously not to offend anyone.
Consider the question “India has been chosen as the non-permanent member of the UNSC and will be there at the critical time in the history of the UNSC. What should be India’s priority and approach as a member of the UNSC?”
Conclusion
India’s mission in New York has earned a reputation that it is next only to the permanent members in influence. But whether it will be able to deal with traditional challenges in novel ways will depend on the turns and twists in an uncertain world.
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