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Type: Op-ed

  • Language sensitivity and provisions in Constitution

    Context

    Language sensitivity has been a feature of selfhood in the case of every Indian language.

     Sensitivity to language

    • From ancient times, a sensitivity to language difference has almost been the core of Dravidic self-hood.
    • A similar sensitivity existed among the speakers of Prakrits in ancient times.
    • It was in one of the Prakrits that Mahavir had presented his teachings in the sixth century BCE.
    • Eighteen centuries later, Acharya Hemachandra, a major Jain scholar, poet, mathematician and philosopher, produced his Desinamamala, a treatise on the importance of Prakrit words used in Gujarat of his times as against those from Sanskrit.
    • Mahatma Gandhi, who defined the idea of selfhood for India in Hind Swaraj (1909), chose to write this iconic book in Gujarati.

    Constitutional provision

    • The official language used for communication between the States shall be the language that has been in use at the time of adoption of the Constitution.
    • The move from English to Hindi can take place only if, ‘two or more states agree’ for the shift.
    • Article 344 (4) provides for a ‘Committee consisting of thirty members’, ‘twenty’ from the Parliament and ‘ten’ from State assemblies, for safeguarding language-related provisions.

    The distribution between two ministries

    • The functions and the scope of the committee, as laid down by the Constitution, are further clarified by the practice of distribution of language as a subject between two Ministries, the Human Resource Development (HRD) Ministry and the Home Ministry.
    • The scope of the HRD Ministry extends to education and the promotion of cultural expression.
    • The Home Ministry’s scope extends to safeguarding relations of the States with the ‘union’, protecting the linguistic rights of language minorities and the promotion of Hindi.
    • The last of these, the Constitution states, has to be ‘without interference with other languages.

    Data on language decline

    • In 2011, Hindi speakers accounted for 43.63% of the total population, with a total of 52.83 crore speakers.
    • In 1971, the number was 20.27 crore, accounting for 36.99% of the total population.
    • Between 2001 and 2011, the growth in proportion of the population was 2.6%.
    • The next most spoken language, Bangla, had negative growth.
    • It was spoken by 8.30% of Indians in 1991, 8.11% in 2001 and by 8.03% in 2011.
    • Telugu, which slid from 7.87% in 1991, to 7.19% in 2001 and 6.70% in 2011, has a similar story to tell.
    • Tamil recorded 6.32% of the total population in 1991, 5.91% in 2001 and 5.70% in 2011.
    • The only major language to show decadal growth (though small) was Gujarati.
    • And the only small yet scheduled language to show good growth was Sanskrit.

    Reasons for Hindi’s growth

    • The 52.83 crore speakers of Hindi (as recorded in 2011) included not just the speaker of ‘Hindi’ but also those of more than 50 other languages.
    • Bhojpuri and most languages of Himachal Pradesh, Uttarakhand, Chhattisgarh, Rajasthan and Jharkhand have also been pushed into the Hindi package.
    • Had the Census not included these other languages under Hindi, the strength of Hindi speakers would have gone down to about 39 crore, — just a little under 32% of the total population in 2011 — and would have looked not too different from those of other scheduled languages.
    • The data for English speakers is far more truthful. Census 2011 reports a total of 3,88,793 Indians as English speakers (2,59,678 men and 1,29,115 women).

    Hindi in comparison to other languages in the Eighth schedule

    • Among the languages included in the Eighth Schedule, Hindi falls within the younger lot of languages.
    • On the other hand, Tamil, Kannada, Kashmiri, Marathi, Oriya, Sindhi, Nepali and Assamiya have a much longer/older history.
    •  As a language of knowledge too, Tamil, Kannada, Bangla and Marathi (with their abundance of encyclopaedias and historical literature), quite easily outshine Hindi.

    Conclusion

    A language evolves slowly and cannot be forced to grow by issuing ordinances.

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  • The impact of the CUET is likely to be harsher on disadvantaged sections

    Context

    The introduction of the Common University Entrance Test (CUET) can be seen as a step in the direction of aligning India with international standards.

    About CUET

    • The UGC’s rationale for introducing the test is to address the disparity in the allocation of marks by different examination boards, and provide a “level playing field” to students from different sections of society and diverse regions.
    • The CUET has been envisaged as a corrective.
    •  Of the 48 central universities, 45 seem to have the requirements to institute the test.
    • The CUET is going to decide the fate of approximately 1.3 crore students for roughly 5.4 lakh undergraduate seats in 45 central universities.

    Issues with the CUET

    • Students to contend with two examinations: The marks obtained in the board examination will remain vital for admission to state and private universities as well as job applications.
    • The students will now have to contend with two examinations.
    • Impetus to coaching classes: Many educationists argue that the new examination is likely to give an impetus to coaching classes.
    •  Coaching and private tuition will flourish without much concern for quality in the preparation of the study material.
    • Not all State Boards prescribe NCERT textbooks: The CUET syllabus will be based on NCERT (under the Ministry of Education) textbooks even though not all state boards prescribe these books.
    • The coaching industry stands to take advantage of this situation and students will have a hard time navigating two sets of textbooks.
    • The impact is likely to be harsher on disadvantaged sections of the society for whom access to higher education is seen as the only route to upward mobility.

    Way forward

    • The Gross Enrolment Ratio (GER) is constantly increasing for higher secondary education (51.4 per cent according to UDISE, 2019-20) and higher education (27.1 per cent to AISHE, 2019-20).
    • The figures indicate that higher education has acquired a mass base in the country.
    • This has important implications for a knowledge-based economy and society.
    • Maintaining the momentum of GER would require more teachers, schools and higher education institutions of quality and slow down the rush for a few but highly sought after universities and colleges.

    Conclusion

    The new examination would put additional pressure on both students and teachers at a time when they are trying to overcome the exactions of the pandemic. It appears to diverge from the objective of the National Education Policy-2020 — equitable access to good quality higher education for all students.

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  • Big Tech’s privacy promise could be good news and also bad news

    Context

    In February, Facebook stated that its revenue in 2022 is anticipated to reduce by $10 billion due to steps undertaken by Apple to enhance user privacy on its mobile operating system.

    Move towards more privacy-preserving options

    • Apple introduced AppTrackingTransparency feature that requires apps to request permission from users before tracking them across other apps and websites or sharing their information with and from third parties.
    • Through this change, Apple effectively shut the door on “permissionless” internet tracking and has given consumers more control over how their data is used.
    • Privacy experts have welcomed this move because it is predicted to enhance awareness and nudge other actors to move towards more privacy-preserving options, leading to a market for “Privacy Enhancing Technologies”.
    • Google’s Privacy Sandbox project is a case in point, though it remains to be seen whether it will be truly privacy-preserving.

    Big Tech dominance and issues related to it

    • Privacy and acquisitions: One standout feature of the Big Tech dominance has been the non-price factors such as quality of service (QoS) in general and privacy and acquisitions in particular.
    • Acquisitions to kill competition: Acquisitions by Big Tech are regular and eat up big bucks, not always to promote efficiency but to eliminate potential competition, described evocatively as “kill zone” by specialists.
    • According to a report released by the Federal Trade Commission, between 2010 and 2019, Big Tech made 616 acquisitions.
    • In the absence of a modern framework, competition law continues to rely on Bork’s theory of consumer welfare which postulated that the sole normative objective of antitrust should be to maximise consumer welfare, best pursued through promoting economic efficiency.
    • Market structure thus became irrelevant and conduct became the sole criterion for judgement.
    • Conduct now predominantly revolves around QoS which, like much else surrounding digital platforms, is pushing competition authorities to fortify their existing regulatory toolkits.

    Privacy as a metric of quality

    •  Companies such as Apple and DuckDuckGo (with its slogan “the search engine that doesn’t track you”) are employing enhanced user privacy as a competitive metric.
    • It has been shown that “websites which do not face strong competition are significantly more likely to ask for more personal information than other services provided for free”.
    • In 2018, OECD accepted that privacy is a relevant dimension of quality despite the low quality that may be prevalent due to lack of market development.
    • Regulators across the globe are recognising privacy as a serious metric of quality.
    • For instance, the Competition Commission of India (CCI) in 2021 took suo moto cognisance of changes to WhatsApp’s “take-it” or “leave-it” privacy policy that made it mandatory for every user to share data with Facebook.
    • In its prima facie order, the CCI inter alia observed that this amounts to degradation of privacy and therefore quality.

    Way forward

    • Privacy and competition have overlapping boundaries.
    • If privacy becomes a competitive constraint, then companies will have the incentive to create privacy-preserving and enhancing technologies.
    • Barriers for new entrants: On the other hand, care must be taken so that Big Tech, aka the gatekeepers in the EU’s Digital Markets Act, do not misuse privacy to create barriers for newer entrants.
    • Restricting third-party tracking is not novel and other browsers such as Mozilla Firefox and Microsoft’s Edge have already done so.
    • But Google, which owns 65 per cent of the global browser market, is different.
    • By disabling third parties from tracking but continuing to use that data in its own ad tech stack, Google harms competition.
    • The use of privacy as a tool for market development, therefore, has to tread this tightrope between enabling and stifling competition.

    Conclusion

    An approach that balances user autonomy, consumer protection, innovation, and market competition in digital markets is a real win-win and worth investing in.

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  • IRMS

    Context

    A recent Gazette notification regarding the creation of the Indian Railway Management Service (IRMS) marks a paradigm shift in the management of one of the world’s largest rail networks.

    About the merger and IRMS

    • A nearly 8,000 strong cadre of the erstwhile eight services is now merged into one.
    • Eight out of 10 Group-A Indian Railway services have been merged to create the IRMS.
    • The merged services are: Indian Railway Traffic Service (IRTS), Indian Railway Personnel Service (IRPS), Indian Railway Accounts Service (IRAS), Indian Railway Service of Electrical Engineers (IRSEE), Indian Railway Service of Signal Engineers (IRSS), Indian Railway Service of Mechanical Engineers (IRSME), Indian Railway Service of Civil Engineers (IRSE) and Indian Railway Stores Service (IRSS).
    • Aims of the restructuring: Besides removing silos, this restructuring also aims at rationalising the top-heavy bureaucracy of the Indian Railways.

    Way forward: Training

    • Training the future leaders of India’s public transporter in the rapidly evolving logistics sector of the country is the most important task ahead.
    • The UPSC will recruit a few hundred IRMS officers each year from now, they will remain much less in number when compared to already serving officers for a long time to come.
    • Training of the existing cadre of officers: The fact remains that even after the creation of the IRMS, the 8,000 strong (already serving) officers of the Indian Railways will need to work in coordination and not in silos, as they will be serving in the organisation for decades to come.
    • This highlights the importance of training of the existing cadre of officers as they will have to deliver on the ambitious Gati-Shakti projects.
    • The task of training such a dynamic talent pool assumes importance in view of India’s aspirations of becoming a $5 trillion economy.
    • All this will require a massive revamp of the capacity building ecosystem of the Indian Railways.
    •  Redesign the training: The merger of services provides an opportunity to redesign the training for newly recruited IRMS officers to make them future-ready. Initial training along with mid-career training programmes may be reoriented.
    • The IRMS training needs to be designed based on the competencies required for different leadership roles.
    • Mission Karmayogi of the Government of India provides for competencies based postings of officers.
    • The Integrated Government Online Training (iGOT) programme of the Government of India will be instrumental in shaping the career progression of IRMS officers.

    Conclusion

    Future IRMS officers should be ready to face the challenges of working in an organisation that is involved in round the clock and round the year operations, has substantial social obligations to meet and, at the same time, which must earn for itself.

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  • The wider impact of Pakistan’s internal crisis

    Context

    As Pakistan goes through a major political convulsion, India must resist the temptation to see the changes across our western frontiers through the narrow prism of bilateral relations.

    Why Pakistan matters

    • Pakistan is an important regional piece in the power play between the US, China and Russia.
    • Given its location at the crossroads of the Subcontinent, Middle East, Eurasia, and China, Pakistan has always been a vital piece of real estate that was actively sought by contending geopolitical blocs.
    • The internal and external have always been tightly linked in Pakistan.
    • Today, Pakistan’s internal battles are tied to external geopolitical rivalry.

    Two important factors in the political trajectory of Pakistan

    • Any Indian strategy in dealing with the new government in Islamabad would depend on an assessment of Pakistan’s post-Imran political trajectory.
    • Two important factors stand out.
    • 1] First is the changing nature of civil military relations in Pakistan.
    • It is part of a serious intra-elite struggle that transcends the well-known military dominance over Pakistan’s polity.
    • One of the more interesting questions to come out of the current episode is whether the army’s famed internal coherence and unity of command might endure the crisis.
    • 2] Second is the growing fragility of Pakistan’s polity triggered by the deepening economic crisis and sharpening social contradictions.
    • There is no guarantee that the army’s ties with new civilian rulers will be smooth nor can we assume that the civilian coalition against Imran Khan will survive the many challenges ahead as it confronts difficult policy challenges on multiple fronts.

    Geopolitical challenges of Pakistan

    • Engaging India is unlikely to be a high priority for the new government in Islamabad.
    • Today, Pakistan has many other things to worry about — reviving its flagging economic fortunes, stabilising the Durand Line with Afghanistan, and rebalancing its ties with the major actors in the Middle East, including Iran, UAE, Saudi Arabia and Turkey.
    • Pakistan, which traditionally enjoyed good relations with the West as well as China, is finding it hard to maintain a balance in its great power relations.
    • While the army and the new government are eager to restore ties with the US, Imran Khan has made it hard for them.
    • Imran Khan’s repeated praise for India’s independent foreign policy was in essence a critique of the Pakistan army that has long steered Islamabad’s international relations.

    Way forward

    •  Delhi should focus on the potential shifts in Pakistan’s strategic orientation triggered by the current crisis.
    • The good news from Pakistan is that India is not part of the argument between the political classes or between Imran Khan and the “deep state” represented by the army.

    Conclusion

    An India that gets an accurate sense of Pakistan’s changing geopolitics will be able to better deal with Islamabad.

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  • Challenges in RBI’s inflation management

    Context

    The first bi-monthly meeting of the Reserve Bank of India’s Monetary Policy Committee (MPC) for the current financial year reaffirmed its focus on inflation management.

    Towards the normalisation of monetary policy

    • The MPC voted to keep the policy rate unchanged at 4 per cent and retained its accommodative stance.
    • However, the wording was changed to “remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.”
    • This statement sets the stage for a shift to a neutral stance in the next meeting and policy rate hikes in subsequent meetings.
    • RBI has announced the withdrawal of some of the steps taken during the pandemic to support the economy.
    • These will foster the normalisation of monetary policy.

    Inflation challenge

    • The central bank has acknowledged that the disruptions caused by the Russia-Ukraine crisis have upended their growth and inflation outlook.
    • It has steeply revised its inflation projection from 4.5 per cent earlier to 5.7 per cent now for the current financial year.
    • The projection is based on an average global crude oil price of $100 per barrel.
    • The Food and Agriculture Organisation’s (FAO’s) Food Price Index, a gauge of global food prices, posted a record growth of 12.6 per cent from February.

    Formalisation of Liquidity Adjustment Framework (LAF)

    • The RBI has been managing liquidity infused into the system during the pandemic through the Variable Rate Reverse Repo Auctions (VRRR) to withdraw liquidity and Variable Rate Repo auctions to inject liquidity.
    • RBI has now formalised the Liquidity Adjustment Framework (LAF).
    • The LAF is a framework to absorb and inject liquidity into the banking system.
    • The LAF is now a symmetric corridor with a width of 50 basis points.
    • The policy repo rate is at the centre of the corridor, with the MSF 25 basis points above the policy rate and the SDF 25 basis points below the policy rate.

    What is a Standing Deposit Facility

    • The RBI has introduced the Standing Deposit Facility (SDF) as the lower bound of the LAF corridor to absorb liquidity.
    • The idea of the SDF was first mooted by the Urjit Patel Committee report on the monetary policy framework.
    • The RBI Act was amended through the Finance Act of 2018 to allow RBI to use this instrument.
    • The SDF will be a facility available to banks to park their funds.
    • The SDF will serve as the standing liquidity absorption facility at the lower end of the LAF corridor.
    • At the upper end of the corridor is the Marginal Standing Facility (MSF) to inject liquidity.
    • Through the SDF, the RBI can absorb liquidity without placing government securities as collateral, hence it will give greater flexibility to the central bank.
    • The change also marks a shift away from reverse repo being the effective policy rate.

    Key takeaways

    • While on the face of it, there are no rate hikes, the shift from the reverse repo rate to the SDF signals a tightening of monetary policy.
    • There is a 40 basis points increase in the floor rate.
    •  In the medium run, the call money rate would move towards the new LAF corridor, thus bringing orderly conditions in the money market.
    • As RBI begins to normalise liquidity in a calibrated manner, its ability to manage bond yields will likely be limited.
    • Yields on bonds are likely to inch up and remain above the 7 per cent mark.
    • Going forward, the trade-off between managing inflation and the borrowing programme of the government will become challenging.

    Conclusion

    For now the RBI has rightly decided to place top priority on inflation management. This will help in maintaining the credibility of the inflation targeting framework.

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  • Care economy

    Context

    The importance of care work is now widely acknowledged and covered in various international commitments such as the SDGs. However, the investment in the care economy has not matched the pace.

    Significance of care work

    • Care work encompasses direct activities such as feeding a baby or nursing an ill partner, and indirect care activities such as cooking and cleaning’.
    • Whether paid or unpaid, direct or indirect, care work is vital for human well-being and economies.
    • Unpaid care work is linked to labour market inequalities, yet it has yet to receive adequate attention in policy formulation.
    • Paid care workers, such as domestic workers and anganwadis in India, also struggle to access rights and entitlements as workers.
    • Greater investment in care services can create an additional 300 million jobs globally, many of which will be for women.
    • In turn this will help increase female labour force participation and advance Sustainable Development Goal (SDG) 8.
    • This year, to commemorate International Women’s Day, the ILO brought out its new report titled, ‘Care at work: Investing in care leave and services for a more gender-equal world of work’.
    • The report highlights the importance of maternity, paternity, and special care leave, which help balance women’s and men’s work and family responsibilities throughout their lives.

    Gaps in the current policies

    • Bridging the gaps in current policies and service provisions to nurture childcare and elderly care services will deliver the benefits of child development, aging in dignity and independent living as the population grows older and also generate more and better employment opportunities, especially for women.
    • Maternity leave: Maternity leave is a universal human and labour right.
    • Yet, it remains unfulfilled across countries, leaving millions of workers with family responsibilities without adequate protection and support. India fares better than its peers in offering 26 weeks of maternity leave, against the ILO’s standard mandate of 14 weeks that exists in 120 countries.
    • However, this coverage extends to only a tiny proportion of women workers in formal employment in India, where 89% of employed women are in informal employment (as given by ILOSTAT, or the ILO’s central portal to labour statistics).
    • While paternity leave is recognised as an enabler for both mothers and fathers to better balance work and family responsibilities, it is not provided in many countries, including India.
    • Access to quality and affordable care services such as childcare, elderly care and care for people with disabilities is a challenge workers with family responsibilities face globally.
    • Limited implementation: While India has a long history of mandating the provision of crèches in factories and establishments, there is limited information on its actual implementation.
    • Domestic workers, on whom Indian households are heavily reliant, also face challenges in accessing decent work.
    • According to the Government’s 2019 estimates, 26 lakh of the 39 lakh domestic workers in India are female.
    • Ensure decent work for domestic workers: While important developments have extended formal coverage to domestic workers in India, such as the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act and the minimum wage schedule in many States, more efforts are required to ensure decent work for them.

    Way forward

    • Increase spending: India spends less than 1% of its GDP on the care economy; increasing this percentage would unfurl a plethora of benefits for workers and the overall economy.
    • Strategy: In consultation with employers’ and workers’ organisations and the relevant stakeholders, the Government needs to conceptualise a strategy and action plan for improved care policies, care service provisions and decent working conditions for care workers.
    • 5R Framework: The ILO proposes a 5R framework for decent care work centred around achieving gender equality. The framework urges the Recognition, Reduction, and Redistribution of unpaid care work, promotes Rewarding care workers with more and decent work, and enables their Representation in social dialogue and collective bargaining.

    Conclusion

    A human-centred and inclusive recovery from the COVID-19 pandemic that benefits workers, employers, and the government, requires a more significant investment in and commitment to supporting the care economy, which cares for the society at large.

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  • Fake news in social media

    Context

    Social media platforms have adopted design choices that have led to a proliferation and mainstreaming of misinformation while allowing themselves to be weaponised by powerful vested interests for political and commercial benefit.

    Problems created by social media and issues with response to it

    • The consequent free flow of disinformation, hate and targeted intimidation has led to real-world harm and degradation of democracy in India: Mainstreamed anti-minority hate, polarised communities and sowed confusion have made it difficult to establish a shared foundation of truth.
    • Political agenda: Organised misinformation (disinformation) has a political and/or commercial agenda.
    • Apolitical and episodic discourse in India: The discourse in India has remained apolitical and episodic — focused on individual pieces of content and events, and generalised outrage against big tech instead of locating it in the larger political context or structural design issues.
    • Problematic global discourse: The evolution of the global discourse on misinformation too has allowed itself to get mired in the details of content standards, enforcement, fact-checking, takedowns, de-platforming, etc.
    • Moderating misinformation vs. safeguarding freedom of expression: Such framework lends itself to bitter partisan contest over individual pieces of content while allowing platforms to disingenuously conflate the discourse on moderating misinformation with safeguards for freedom of expression.
    • The current system of content moderation is more a public relations exercise for platforms than being geared to stop the spread of disinformation.

    Framework to combat disinformation

    • Consider it as a political problem: The issue is as much about bad actors as individual pieces of content.
    • Content distribution and moderation are interventions in the political process.
    • Comprehensive transparency law: There is thus a need for a comprehensive transparency law to enforce relevant disclosures by social media platforms.
    • Bipartisan political process for content moderation: Content moderation and allied functions such as standard setting, fact-checking and de-platforming must be embedded in the sovereign bipartisan political process if they are to have democratic legitimacy.
    • Regulatory body should be grounded in democratic principles: Any regulatory body must be grounded in democratic principles — its own and of platforms.
    • Three approaches to distribution that can be adopted by platforms: 1) Constrain distribution to organic reach (chronological feed);
    • 2) take editorial responsibility for amplified content;
    • 3) amplify only credible sources (irrespective of ideological affiliation).
    • Review of content creator: The current approach to misinformation that relies on fact-checking a small subset of content in a vast ocean of unreviewed content is inadequate for the task and needs to be supplemented by a review of content creators itself.

    Conclusion

    Social media cannot be wished away. But its structure and manner of use are choices we must make as a polity after deliberation instead of accepting as them fait accompli or simply being overtaken by developments along the way.

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  • Why central services cannot be exempted from reservation for disabled

    Context

    In a case that the SC is currently hearing, the petitioner has challenged a notification issued by the Department of Empowerment for Persons with Disabilities (Department).

    About the notification

    • The impugned notification exempts all categories of posts in the Indian Police Service, the Delhi, Andaman and Nicobar Islands, Lakshadweep, Daman and Diu and Dadra and Nagar Haveli Police Service, as well as the Indian Railway Protection Force Service from the mandated 4 per cent reservation for persons with disabilities under the Rights of Persons with Disabilities Act, 2016 [RPwD Act].

    Issues with the notification

    1] Against combat and non-combat classification

    • On the same day as the issuing of the impugned notification, the Department also issued another notification exempting from the purview of reservation under the RPwD Act posts only of “combatant” nature in the paramilitary police.
    • This classification between combat and non-combat posts was premised on a clear recognition of the fact that persons with disabilities are capable of occupying non-combat posts in the central forces.
    • The Department has offered no justification as to why this classification would not hold good as regards the services covered in the impugned notification.

    2] Against the identification of posts suitable for reservation for the disabled

    • The Ministry of Social Justice and Empowerment had identified a range of ministerial/civilian posts as being suitable for reservation for the disabled.
    • The impugned notification goes against this identification exercise, by virtue of its blanket character.
    • Further, on November 22, 2021, the Union Ministry of Home Affairs released Draft Accessibility Standards/Guidelines for built infrastructure under its purview (police stations, prisons and disaster mitigation centres) and services associated with them.
    • These Draft Standards state that the police staff on civil duty could be persons with disabilities.

    3] Exercise of power

    • As per the RPwD Act, the grant of any exemption has to be preceded by consultation with the Chief Commissioner for Persons with Disabilities.
    • However, the office of the chief commissioner has been lying vacant for many years, with the secretary in the Department officiating in that role.

    Conclusion

    This case presents the SC with the opportunity to rule that the disabled are not a monolithic entity. Every disabled person is different, and it is unfair to paint all disabled people with the same broad brush, based on a stereotypical understanding of what they can do.

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  • BRICS and the creation of a multipolar world

    Context

    The current crisis in Ukraine will consolidate BRICS as the group will make further efforts to become a real alternative to the West to create a real multipolar world.

     BRICS’ efforts to change world economic system

    • The group was brought together by geopolitical rather than economic considerations and this can be seen in the strategic interests shared by Russia and China.
    • Inclusion of non-Western states in international financial institutions: BRICS is actively involved in the efforts to change the world economic system by increasing the number of non-Western states in international financial institutes.
    • The BRICS countries decided to create the $100 billion BRICS Development Bank and a reserve currency pool worth over another $100 billion to offer an alternative to countries in the non-Western world when it comes to choosing the sources of funding for development or coping with serious economic crises.

    Consequences of Ukraine crisis for BRICS

    •  It demonstrates that the West has not abandoned the idea of a unipolar world and will continue building it up by drawing into its foreign policy orbit issues it calls “international” or even “common to mankind.”
    • Many non-Western states look at this as a new wave of colonialism.
    • This will increase the desire of non-Western countries to enhance their coordination and perhaps the current conflict is already showing signs in this respect.
    • The BRICS states are different in many respects and their disagreements with the West are rooted in different historical and political circumstances.
    • The current crisis in Ukraine will consolidate BRICS as the group will make further efforts to become a real alternative to the West to create a real multipolar world.
    • RIC controls 22 per cent of the global GDP and 16 per cent of global exports of goods and services.
    • The fallout from Russia’s alienation from the G-8 group of nations, raises the prospect that — tactically at least — Russia, India, and China might be playing their own triangular integrationist card within BRICS at Moscow’s initiative.
    • Eurasian integrationist core: This will create a north Eurasian integrationist core within BRICS, whichever way Moscow’s relations with the US and Europe play out.

    Implications for India

    • Both the Asian giants — India and China — may stand to reap the “best of both worlds” as the Ukraine imbroglio plays out.
    • Investment: This could mean greater industrial and energy cross investments between Russia and India as well as between Russia and China.
    • Additionally, the proposed arrangement for rupee-ruble cross currency pairing could result in settlement of payments in non-dollar currencies with more countries looking at India’s sovereign Financial Messaging Systems (SFMS), while also remaining connected with a central system like SWIFT.
    • Dedicated payment mechanism: This should also anchor India’s quest to build a dedicated payment mechanism for energy-related payments and settlements as a long-haul measure.
    • This could change the contours of the global payments landscape and benefit the rupee immensely.

    Spotlight on India

    • As the war progresses, New Delhi has been receiving a stream of high-profile visitors from around the world.
    • This has included delegations from the US, Australia and Japan, India’s partners in the Quad.
    • The foreign minister of Greece has also been to India and the Israeli prime minister is scheduled to visit soon.
    • Even traditional rival China is making overtures to India at this time, with Foreign Minister Wang Yi’s visit.
    • Another suitor is Russia, which is now also becoming a supplier of discounted crude oil to India as Moscow recoils from sanctions enforced by western consumers of its natural gas.

    Conclusion

    New Delhi is basking in its well-deserved spotlight with well-crafted diplomacy. India could be looking at a new dawn.

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