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Type: op-ed snap

  • Foreign Policy Watch: India-Russia

    Realising the potential of India-Russia ties

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: S-400

    Mains level: Paper 2- India- Russia ties in the changed geopolitical context

    Context

    The Russian president is on visit to India. Visits by Russian presidents to India always invoke a sense of nostalgia. The Moscow-Delhi relationship dates back to the Cold War era and it has been strong ever since.

    Factors limiting the possibilities for bilateral partnership

    • The conflict between Russia and the West: One factor is the continuing conflict between the Kremlin and the West.
    • Absence of trade between India and Russia: The other is the absence of a thriving commercial relationship between India and Russia.
    • India-US relations: India’s relations with Washington has never been as intense as it is today.
    • Russia-China relations: Moscow’s embrace of Beijing is tighter than ever.
    • The US-China rivalry: That the US and China are now at each other’s throats makes the great power dynamic a lot more complicated for India and Russia.

    Importance of trade ties

    • Need for robust business ties: That Delhi and Moscow have problems with the best friend of the other would have been more manageable if business ties between India and Russia were solid.
    • Where India and Russia have greater freedom is in the economic domain, but their failure to boost the commercial relationship has been stark.
    • India-Russia annual trade in goods is stuck at about $10 billion.
    • Slow progress on enhancing trade and investment ties: During the last 20 summits with Putin, the two sides have repeatedly affirmed the importance of enhancing trade and investment ties; but progress has been hard to come by.
    • How to fix the problem? The problem clearly can’t be fixed at the level of governments.
    • The Russian business elites gravitate to Europe and China. The Indian corporations are focused on America and China.

    Russia-US ties and its implications for India

    • Implications for India? The structural constraints posed by the great power dynamic and vastly different appreciation of the regional security environment could be reduced if matters improve between Washington and Moscow.
    • In Washington, the Biden administration recognises the importance of ending this permanent crisis in US-Russian relations.
    • Winning a strategic competition with China: The Biden administration, which is focused on winning the intensifying strategic competition with China, values a stable relationship with Russia.
    •  Nothing pleases Moscow more than the image of being Washington’s equal on the global stage.
    • Relief for India: A less conflictual relationship between Washington and Moscow will be a huge relief for India; but Delhi can’t nudge them closer to each other.

    Why the partnership with India matters to Russia

    • Dangers of excessive reliance on China: Persistent conflict with the US, Europe, and Japan have moved Moscow ever closer to Beijing.
    • But Moscow knows the dangers of relying solely on a neighbour which has risen to greatness — the Chinese economy at nearly $15 trillion today is nearly 10 times larger than that of Russia.
    • Sustaining the traditional partnership with India: While resetting Russia’s relations with the West is hard, sustaining the traditional partnership with Delhi is of some political value to Moscow.
    • Longstanding defence ties: Russia is pleased that the S-400 missile sale has gone through despite strong US opposition.
    • For it signals Delhi’s commitment not to let Washington roll back India’s longstanding defence ties with Russia.
    • Russia knows India’s strategic cooperation with the US has acquired an unstoppable momentum; and Delhi knows it has no veto over the Sino-Russian strategic partnership.
    • Moscow and Delhi are learning to live with this uncomfortable unreality and stabilising their political ties within that context.

    Consider the question “While both India and Russia have drifted apart from the depth of past partnerships, there is a need for stabilising their political ties within the changed context.Comment.”

    Context

    Delhi and Moscow have no reason to be satisfied with the poor state of their commercial ties. The success of Monday’s summit lies not in squeezing more out of bilateral defence ties, but in laying a clear path for expansive economic cooperation, and generating a better understanding of each other’s imperatives on Afghanistan and the Indo-Pacific.

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  • Higher Education – RUSA, NIRF, HEFA, etc.

    The NIRF’s ranking of education institutions on a common scale is problematic

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NIRF

    Mains level: Paper 2- Issues in ranking HEI based on common framework

    Context

    The ranking of State-run higher education institutions (HEIs) together with centrally funded institutions using the National Institutional Ranking Framework, or the NIRF, is akin to comparing apples and oranges.

    Institute data

    • According to an All India Survey on Higher Education (AISHE) 2019-20 report, there are 1,043 HEIs.
    • Of these, 48 are central universities.
    • 135 are institutions of national importance,
    • 1 is a central open university,
    • 386 are State public universities,
    • 5 are institutions under the State legislature act,
    • 14 are State open universities,
    • 327 are State private universities,
    • 1 is a State private open university,
    • 36 are government deemed universities,
    • 10 are government aided deemed universities.
    • 80 are private deemed universities.

    Comparison of financial health of State HEI with Central HEIs

    • A close study of the above data shows that 184 are centrally funded institutions (out of 1,043 HEIs in the country) to which the Government of India generously allocates its financial resources in contrast to inadequate financial support provided by State governments to their respective State public universities and colleges.
    • The Central government earmarked the sums, ₹7,686 crore and ₹7,643.26 crore to the IITs and central universities, respectively, in the Union Budget 2021.
    • Ironically, out of the total student enrolment, the number of undergraduate students is the largest (13,97,527) in State public universities followed by State open universities (9,22,944).

    How NIRF ranks the education institutions?

    • Parameters set by the core committee of experts: The NIRF outlines a methodology to rank HEIs across the country, which is based on a set of metrics for the ranking of HEIs as agreed upon by a core committee of experts set up by the then Ministry of Human Resources Development (now the Ministry of Education), Government of India
    • The NIRF ranks HEIs on five parameters: teaching, learning and resources; research and professional practice; graduation outcome; outreach and inclusivity, and perception.

    Where do State HEIs lag on NIRF parameters?

    • Teaching, learning and resources include metrics viz. student strength including doctoral students, the faculty-student ratio with an emphasis on permanent faculty, a combined metric for faculty with the qualification of PhD (or equivalent) and experience, and financial resources and their utilisation.
    • Low faculty strength in State HEIs: In the absence of adequate faculty strength, most State HEIs lag behind in this crucial NIRF parameter for ranking.
    • The depleting strength of teachers has further weakened the faculty-student ratio with an emphasis on permanent faculty in HEIs.
    • Research and professional practise encompasses a combined metric for publications, a combined metric for quality of publications, intellectual property rights/patents and the footprint of projects, professional practice and executive development programmes.
    • Need for modernisation of laboratories: As most laboratories need drastic modernisation in keeping pace with today’s market demand, it is no wonder that State HEIs fare miserably in this parameter as well while pitted against central institutions.

    Issues with comparing State HEIs with Central HEIs

    • The difference in financial allocations diregarded: The financial health of State-sponsored HEIs is an open secret with salary and pension liabilities barely being managed.
    • Hence, rating such institutions vis-à-vis centrally funded institutions does not make any sense.
    • No cost-benefit analysis carried out: No agency carries out a cost-benefit analysis of State versus centrally funded HEIs on economic indicators such as return on investment the Government made into them vis-à-vis the contribution of their students in nation building parameters such as the number of students who passed out serving in rural areas, and bringing relief to common man.
    • While students who pass out of elite institutions generally prefer to move abroad in search of higher studies and better career prospects, a majority of State HEIs contribute immensely in building the local economy.
    • Issues in embracing technologies: State HEIs are struggling to embrace emerging technologies involving artificial intelligence, machine learning, block chains, smart boards, handheld computing devices, adaptive computer testing for student development.

    Consider the question “What are the challenges in the ranking of Higher Education Institutions in India? What are the issues faced by State HEI?”

    Conclusion

    Ranking HEIs on a common scale purely based on strengths without taking note of the challenges and the weaknesses they face is not justified. It is time the NIRF plans an appropriate mechanism to rate the output and the performance of institutes in light of their constraints and the resources available to them.

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    A white touch to a refreshed green revolution

    op-ed snap | Agriculture | Mains Paper 3: Agriculture and related issues,Inclusive Growth & Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Contrast between white and green revolution

    Context

    November 26, 2021 was celebrated in Anand, Gujarat as the 100th birth anniversary of Verghese Kurien, the leader of India’s ‘white revolution’.

    Analysing the Green revolution

    • Purpose of green revolution: The purpose of the green revolution was to increase the output of agriculture to prevent shortages of food.
    • Technocratic enterprise: The green revolution was largely a technocratic enterprise driven by science and the principles of efficiency.
    • It required inputs, like chemical fertilizers, to be produced on scale and at low cost.
    • Therefore, large fertilizer factories were set up for the green revolution. And large dams and irrigation systems were also required to feed water on a large scale.
    • Monocropping on fields was necessary to apply all appropriate inputs — seeds, fertilizer, water, etc., on scale.
    •  Monocropping increased the efficiency in application of inputs.
    • Thus, farms became like large, dedicated engineering factories designed to produce large volumes efficiently.
    •  Diversity in the products and processes of large factories creates complexity.
    • Therefore, diversity is weeded out to keep the factories well-focused on the outputs they are designed for.

    The contrast between White and Green revolution

    • The contrast between the two revolutions provides valuable insights. Their purposes were different.
    • Purpose of white revolution: The purpose of the white revolution was to increase the incomes of small farmers in Gujarat, not the output of milk.
    • The white revolution was a socio-economic enterprise driven by political leaders and principles of equity.

    Understanding the success of Amul

    • Amul has become one of India’s most loved brands, and is respected internationally too for the quality of its products and the efficiency of its management.
    • The fledgling, farmer-owned, Indian enterprise had many technological problems to solve.
    • That is why they enrolled Kurien, who had studied engineering in the United States.
    • Indigenous solutions: Kurien and his engineering compatriots in the organisation were compelled to develop solutions indigenously when Indian policy makers, influenced by foreign experts, said Indians could not make it.
    • The enterprise achieved its outcome of empowering farmers because the governance of the enterprise to achieve equity was always kept in the foreground, with the efficiency of its production processes in the background as a means to the outcome.

    Increasing productivity and issues with it

    • ‘Productivity’, when defined as output per worker, can be increased by eliminating workers.
    • This may be an acceptable way to measure and increase productivity when the purpose of the enterprise is to increase profits of investors in the enterprise.
    • It is a wrong approach to productivity when the purpose of the enterprise is to enable more workers to increase their incomes, which must be the aim of any policy to increase small farmers’ incomes.
    • The need for new solutions to increase farmers’ incomes has become imperative.
    • Moreover, fundamental changes in economics and management sciences are necessary to reverse the degradation of the planet’s natural environment that has taken place with the application of modern technological solutions and management methods for the pursuit of economic growth.

    Suggestions to increase inclusion and improve environmental sustainability

    • Ensure inclusion and equity: Increase in the incomes and wealth of the workers and small asset owners in the enterprise must be the purpose of the enterprise, rather than production of better returns for investors.
    • Social side: The ‘social’ side of the enterprise is as important as its ‘business’ side.
    • Therefore, new metrics of performance must be used, and many ‘non-corporate’ methods of management learned and applied to strengthen its social fabric.
    • Local solution: Solutions must be ‘local systems’ solutions, rather than ‘global (or national) scale’ solutions.
    • The resources in the local environment (including local workers) must be the principal resources of the enterprise.
    • Practical use of science: Science must be practical and useable by the people on the ground rather than a science developed by experts to convince other experts.
    • Moreover, people on the ground are often better scientists from whom scientists in universities can learn useful science.
    • Sustainable solution through evolution: Sustainable transformations are brought about by a steady process of evolution, not by drastic revolution.
    • Large-scale transformations imposed from the top can have strong side-effects.

    Consider the question “Contrast the differences between the White Revolution and Green Revolution in India. What lessons can be applied to Indian agriculture from the success of the White Revolution in India?”

    Conclusion

    The essence of democratic economic governance is that an enterprise must be of the people, for the people, and governed by the people too.

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    What the latest NFHS data says about the New Welfarism

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- What findings of NHFS-5 imply

    Context

    The second and final phase of NFHS-5 was released which covered 11 states (including Uttar Pradesh (UP), Tamil Nadu, Punjab, Rajasthan, Madhya Pradesh (MP), Jharkhand, Haryana, and Chhattisgarh) and about 49 per cent of the population.

    Major findings

    [1] Success of New Welfarism

    • Figure one plots household access to improved sanitation, cooking gas and bank accounts used by women.
    • The improvements are as striking as they were based on the performance of the phase 1 states.
    • In all cases, access has increased significantly, although claims of India being 100 per cent open defecation-free still remain excessive.

    [2] Child-related outcomes

    • India-wide, stunting has declined although the pace of improvement has slowed down post-2015 compared with the previous decade.
    • For example, stunting improved by 0.7 percentage points per year between 2005 and 2015 compared to 0.3 percentage points between 2015 and 2021.
    • On diarrhoea too, adding the new data reverses the earlier finding.
    • However, on anaemia and acute respiratory illness, there seems to have been deterioration.
    • The new child stunting results are significant but also surprising because of the sharply divergent outcomes between the phase 1 and phase 2 states.
    •  The interesting pattern is that nearly all the phase 2 states show large improvements, whereas most of the phase 1 states exhibited a deterioration in performance.

    [3] Catch up by the laggard states

    • If the new child stunting numbers are right, a different picture of India emerges.
    • Apparently, Madhya Pradesh now has fewer stunted children than Gujarat; Uttar Pradesh and Jharkhand are almost at par with Gujarat; Chhattisgarh fares better than Gujarat, Karnataka, and Maharashtra; and Rajasthan and Odisha fare better than Gujarat, Karnataka, Maharashtra, West Bengal, Telangana and Himachal Pradesh!
    • On child stunting, the old BIMARU states (excepting Bihar) are no longer the laggards; the laggards are Gujarat, Maharashtra, and Karnataka, and to a lesser extent, West Bengal, Andhra Pradesh and Telangana.
    • Indeed, the decline in stunting achieved by the poorer states such as UP, MP, Chhattisgarh and Rajasthan would be all the more remarkable given the overall weakness in the economy between 2015 and 2021.

    Conclusion

    When commentators speak of two Indias, it is now important to ask: Which ones and on what metrics.

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  • The politics-policy disconnect in India

    op-ed snap | Polity | Mains Paper 2: Executive & Judiciary,Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Disconnect between policy and politics in India

    Context

    Decision-making on virtually all governance issues is disconnected from politics and the mobilisation of public opinion.

    Disconnect between politics and policy

    • The repeal of the farm laws is thus a notable instance of politics and policy coming together, although in conflict.
    • The Opposition speaking in one voice in the Parliament helped, but the heavy lifting of organising in the villages and sustaining the protests was done by the farmers’ groups.
    • This disconnect between politics and policy is not a recent development, though it manifests differently across political divides.
    • Policy-first lens and its implications: The liberal side has a policy-first lens but is unable to articulate its ideas in a manner which makes for good politics, repeatedly couching its ideas in a bureaucratic framework disconnected from political organisation.
    • Bureaucracy is downstream from politics and this approach rather than curbing the state may have instead contributed to undermining the democratic process of political accountability since the political class is, by design, not central to the policy in the first place.
    • A politics-first approach: The right, on its side, has a politics-first lens but it derives its politics largely from its social agenda instead of issues of governance.
    • The policy imperatives, if any, are ad hoc and appear to be driven by the demands of running the political apparatus instead of a clear governance agenda.
    • Despite these differences, what is common across parties is the apolitical harnessing of the state as a disburser of different kinds of economic largesse, especially just before elections, as political parties cast about for simple ideas for easy mass communication.

    Reasons for the breakdown of the process

    • Weakly institutionalised nature of state and politics: Indian politics and the state are weakly institutionalised to begin with, which leads to an all-around fuzziness in the relationship between politics and policy.
    • However, this is as much an effect as it is cause, with the direction of change towards greater deinstitutionalisation instead of the opposite.
    • Lack of consensus-building: Another contributing factor is that traditional sites of consensus-building such as media, civil society, and political parties have developed pathologies which have rendered sustained consensus-building almost impossible. 
    • Centralisation of power: The excessive centralisation of power in party platforms and the head of the government (state and national).
    • This renders the individual elected representative extraneous to governance even in their own constituency, where their function is to provide representation and oversight.

    Way forward

    • There’s too much at stake to allow such a state of affairs to continue.
    •  It is important to rescue public interest from partisanship and cut through at least some of the bad-faith crosstalk across partisan divides.
    • Cross-cutting collaboration: There are many issues which lend themselves to cross-cutting collaboration outside of ideological affiliations.
    • Need for reforms: Institutional reforms are required to create such a space but public-spirited individuals across political divides can lay the foundation for such collaboration through issue-based discipline, moderation and intellectual independence.

    Consider the question “There has been a growing disconnect in India between policy and politics. Examine the factors responsible for this. Suggest the way forward.”

    Conclusion

    We need to address the disconnect between policy and politics to make the functioning of democracy more meaningful for us.

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  • Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

    India’s electric vehicle push will lead to brighter, greener future

    op-ed snap | Economics | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia,Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: FAME 2

    Mains level: Paper 3- Promoting EV ecosystem

    Context

    The transition to electric mobility is a promising global strategy for decarbonising the transport sector.

    Electricity mobility revolution

    • The global electric mobility revolution is today defined by the rapid growth in electric vehicle (EV) uptake.
    • This phenomenon is today defined by the rapid growth in EV uptake, with EV sales for the year 2020, reaching 2.1 million.
    • Falling battery costs and rising performance efficiencies are fueling the demand for EVs globally.

    Significance of India’s transition to electric mobility

    • India is the fifth largest car market in the world and has the potential to become one of the top three in the near future.
    • India is among a handful of countries that supports the global EV30@30 campaign, which aims for at least 30 per cent new vehicle sales to be electric by 2030.
    • Part of global climate agenda: The push for EVs is driven by the global climate agenda established under the Paris Agreement to reduce carbon emissions in order to limit global warming.
    • Ensuring energy security: It is also projected to contribute in improving the overall energy security situation as the country imports over 80 per cent of its overall crude oil requirements, amounting to approximately $100 billion.
    • Job creation: The push is also expected to play an important role in the local EV manufacturing industry for job creation.
    • Strengthen grid operation: Through several grid support services, EVs are expected to strengthen the grid and help accommodate higher renewable energy penetration while maintaining secure and stable grid operation.

    Battery storage: Opportunities and challenges

    • Promoting sustainable development: With recent technology disruptions, battery storage has great opportunity in promoting sustainable development in the country, considering government initiatives to promote e-mobility and renewable power (450 GW energy capacity target by 2030).
    • Economic opportunity: With rising levels of per capita income, there has been a tremendous demand for consumer electronics in the areas of mobile phones, UPS, laptops, power banks etc. that require advanced chemistry batteries.
    • This makes manufacturing of advanced batteries one of the largest economic opportunities of the 21st century.
    • Concern of absence of manufacturing base: It is estimated that by 2020-30 India’s cumulative demand for batteries would be approximately 900-1100 GWh, but there is concern over the absence of a manufacturing base for batteries in India, leading to sole reliance on imports to meet rising demand.

    Government schemes to promote EV ecosystem

    • To develop and promote the EV ecosystem in the country, government has remodeled Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme (Rs 10,000 crore) for the consumer side.
    • It has also launched production-linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) ( Rs 18,100 crore) for the supplier side.
    • Finally the recently launched PLI scheme for Auto and Automotive Components (Rs 25,938 crore) for manufacturers of electric vehicles was launched.
    • All these forward and backward integration mechanisms in the economy are expected to achieve robust growth in the coming years and will enable India to leapfrog to the environmentally cleaner electric vehicles and hydrogen fuel cell vehicles.

    Benefits of EV ecosystem

    • This will not only help the nation conserve foreign exchange but also make India a global leader in manufacturing of EVs and better comply with the Paris Climate Change Agreement..
    • Battery demand creation: All three schemes cumulatively expect an investment of about Rs 1,00,000 crore which will boost domestic manufacturing and also facilitate EVs and battery demand creation along with the development of a complete domestic supply chain and foreign direct investment in the country.
    • Reduction of oil import bill: The programme envisages an oil import bill reduction of about Rs 2 lakh crore and import bill substitution of about Rs 1.5 lakh crore.

    Conclusion

    India’s push for EV ecosystem is in line with the country’s climate change commitments, will help boost manufacturing sector and also help ensure energy security.

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  • International Space Agencies – Missions and Discoveries

    A launch window for India as a space start-up hub

    op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- India as a space start up hub

    Context

    After the launch of Sputnik in 1957, space race is on again, but this time, private players are on the power field. This has huge implications for original equipment manufacturers (OEMs) in the space sector in India and is a promising venture for global investors.

    Insignificant share of India in space economy

    • 2% India’s share: The space economy is a $440 billion global sector, with India having less than 2% share in the sector.
    • While total early-stage investments in space technologies in FY21 were $68 billion, India was on the fourth place with investments in about 110 firms, totalling not more than $2 billion.

    Reasons for India’s insignificant private participation

    • Absence of a framework: The reason for the lack of independent private participation in space includes the absence of a framework to provide transparency and clarity in laws.
    • Brain drain: Another aspect to throw light on is the extensive brain drain in India, which has increased by 85% since 2005.
    • Policy bottlenecks: Brain drain can be linked to the bottlenecks in policies which create hindrances for private space ventures and founders to attract investors, making it virtually non-feasible to operate in India.

    Suggestions

    • The laws need to be broken down into multiple sections, each to address specific parts of the value chain and in accordance with the Outer Space Treaty.
    • Dividing into upstream and downstream: Dividing activities further into upstream and downstream space blocks will allow legislators to provide a solid foundation to products/services developed by the non-governmental and private sectors within the value chain.
    • Timeline on licensing: With the technicalities involved in the space business, timelines on licensing, issuance of authorisation and continuous supervision mechanism need to be defined into phases.
    • Insurance and indemnification clarity: Another crucial aspect of space law is insurance and indemnification clarity, particularly about who or which entity undertakes the liability in case of a mishap.
    • In several western countries with an evolved private space industry, there is a cap on liability and the financial damages that need to be paid.
    • Need to generate own IP: Currently, many of the private entities are involved in equipment and frame manufacturing, with either outsourced specifications or leased licences.
    • However, to create value, Indian space private companies need to generate their intellectual property for an independent product or service with ISRO neither being their sole or largest customer nor providing them IP and ensuring buy-backs.

    Possibilities for India and the government’s effort

    • India currently stands on the cusp of building a space ecosystem and with ISRO being the guiding body, India can now evolve as a space start-up hub for the world.
    • Already 350 plus start-ups such as AgniKul Cosmos, Skyroot Technologies, Dhruva Space and Pixxel have established firm grounds for home-grown technologies with a practical unit of economics.
    • Last year the Government of India created a new organisation known as IN-SPACe (Indian National Space Promotion and Authorisation Centre) which is a “single window nodal agency” established to boost the commercialisation of Indian space activities.
    • A supplement to the Indian Space Research Organisation (ISRO), the agency promotes the entry of the Non-Government Private Entities (NGPEs) in the Indian space sector.

    Consider the question “Examine the factors responsible for hindering the participation of the private sector in India’s space industry? Suggest the ways to increase the participation of private sector.”

    Conclusion

    To continue the growth engine, investors need to look up to the sector as the next “new-age” boom and ISRO needs to turn into an enabler from being a supporter. To ensure that the sky is not the limit, investor confidence needs to be pumped up and for the same, clear laws need to be defined.

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    Back2Basics: The Outer Space Treaty

    • The Outer Space Treaty was considered by the Legal Subcommittee in 1966 and agreement was reached in the General Assembly in the same year ( resolution 2222 (XXI)).
    • The Treaty was largely based on the Declaration of Legal Principles Governing the Activities of States in the Exploration and Use of Outer Space, which had been adopted by the General Assembly in its resolution 1962 (XVIII) in 1963, but added a few new provisions.
    • The Treaty was opened for signature by the three depository Governments (the Russian Federation, the United Kingdom and the United States of America) in January 1967, and it entered into force in October 1967.
    • The Outer Space Treaty provides the basic framework on international space law, including the following principles:
    • The exploration and use of outer space shall be carried out for the benefit and in the interests of all countries and shall be the province of all mankind;
    • Outer space shall be free for exploration and use by all States;
    • Outer space is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means;
    • States shall not place nuclear weapons or other weapons of mass destruction in orbit or on celestial bodies or station them in outer space in any other manner;
    • The Moon and other celestial bodies shall be used exclusively for peaceful purposes;
    • Astronauts shall be regarded as the envoys of mankind;
    • States shall be responsible for national space activities whether carried out by governmental or non-governmental entities;
    • States shall be liable for damage caused by their space objects; and
    • States shall avoid harmful contamination of space and celestial bodies.

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  • With India’s demographic transition, come challenges

    op-ed snap | Polity | Mains Paper 2: Federalism

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: TFR and replacement rate

    Mains level: Paper 2- Regional demographic variation and its implications for federalism in India

    Context

    Recent results from National Family Health Survey-5 (NFHS-5) suggest that we are entering an era where we will have to tackle these challenges.

    A milestone in India’s demographic history: TFR at 2.0

    • NFHS-5 places the total fertility rate (TFR) at 2.0.
    • With two parents having two children, we have reached a replacement level of fertility.
    • Due to many young people, the population will continue to grow, but the replacement level fertility is a significant milestone in India’s demographic history.
    • This decline is spread evenly across the country, with 29 states and UTs having a TFR of 1.9 or less, with seven below 1.6.
    • All southern states have a TFR of 1.7-1.8, similar to that of Sweden.
    • Even states that have not reached replacement fertility — Bihar and Uttar Pradesh — seem to be headed in that direction.
    • Part of the original coterie of lagging states, Madhya Pradesh and Rajasthan both have achieved TFRs of 2.0.

    Challenge: Supporting the ageing population

    • Supporting ageing population: As fertility declines, the proportion of the older population grows, and societies face the challenge of supporting an ageing population with a shrinking workforce.
    • This challenge is greater for leaders at the beginning of the demographic transition — Kerala and Tamil Nadu.
    •  Interestingly, these are also among the more prosperous states in India, whose economic activities increasingly rely on migrant labour from other states.
    • Many industries such as auto parts manufacturing and construction in southern states rely on semi-skilled migrants, often transported under contractual arrangements, from northern and eastern states, particularly Bihar, Uttar Pradesh and Odisha.

    Rethinking the critical dimension of Indian federalism

    • Dependence on migrat workforce: Many industries such as auto parts manufacturing and construction in southern states rely on semi-skilled migrants, often transported under contractual arrangements, from northern and eastern states, particularly Bihar, Uttar Pradesh and Odisha.
    • Allocation of political power: While the Indian constitution mandates allocation of Lok Sabha seats across states in proportion to their population via the Delimitation Commission, the Emergency-era 42nd amendment froze seat allocation to the population share of states in the 1971 Census.
    • Equity consideration in central allocation to states: The division of central allocation to states is another area where population concerns have dominated equity considerations.
    • Much of the Centre-state revenue sharing occurs through recommendations of various Finance Commissions.
    • The sixth to fourteenth Finance Commissions allocated resources between states using the 1971 population shares of various states.
    • The Fifteenth Finance commission used Census data from 2011, but it also added the criteria of demographic performance, rewarding states with lower TFR.

    Type of demographic policy India needs to pursue

    • Pursue policy followed by China? Does India want to pursue China’s route of sharply lower fertility, with a large number of families stopping at one child, or are we content with moderately below replacement fertility of about 1.7-1.8?
    • If the latter, we are well-positioned to head in this direction.
    • Issues faced by China: while very low fertility provides a temporary demographic dividend with a reduced number of dependents to workers, the increased burden of caring for the elderly may become overwhelming over the long term.
    • Advantage of Regional demographic variation in India: India is fortunate that its demographic dividend may be smaller, but is likely to last for a more extended period due to regional variation in the onset of the fertility decline.
    • As southern states struggle with the growing burden of supporting the elderly, northern states will supply the workforce needed for economic growth.
    • Economic expansion: The increasing pace of migration may help shore up economic expansion in the south with its shrinking workforce augmented by workers from other states.

    Consider the question “Examine the influence of regional demographic variation on the fedaralism in India? How such variation can help India?”

    Conclusion

    The Sixteenth Finance Commission and the next Delimitation Commission must be freed from the burden of managing the demographic transition, focused on carrying out their tasks in the best interests of Indian federalism.

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  • Foreign Policy Watch: India-China

    Beijing’s aggressive regional policies and its implications

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: AUKUS

    Mains level: Paper 2- Implications of China's aggressive policies for geopolitics

    Context

    One of the many consequences of China’s assertive posture in Asia has been the emergence of geopolitical coalitions to limit the prospects for Beijing’s regional dominance.

    Two new coalitions forcing China rethink

    • Quad and AUKUS: Two new coalitions that have got a lot of political attention are the Quadrilateral framework involving Australia, India, Japan and the US, and the AUKUS, which brings together Australia, the United Kingdom and the United States.
    • Until recently, China was quite contemptuous of the new political formations.
    • It had compared the Quad to “seafoam” that is here now but gone in a second.
    • China’s dismissive attitude has now yielded place to denunciation.

    US’s policy forcing China to rethink

    • Two big factors are behind China’s rethinking.
    • Consensus in the US on Challenging China: One was the surprising emergence of American domestic political consensus on challenging China.
    • Beijing believed that Donald Trump was an exception to the longstanding US policy of deeper economic integration with China and sustained political engagement. But Biden has simply reinforced Trump’s strategy.
    • US making alliances critical element of China policy: Trump thought that alliances are a burden on US taxpayers.
    •  Biden, in contrast, has made alliances a critical element of his China strategy.
    • The idea was to create “situations of strength” vis-a-vis China by rebuilding US alliances and developing new coalitions.
    • In Asia, the Biden administration moved quickly to strengthen the traditional security ties with its allies in northeast Asia — Japan and South Korea.
    • Elevating the Quad to leaders-level: It also elevated the Quad to the leaders-level within weeks after Biden took charge and had a physical summit in Washington six months later.
    • AUKUS: It also announced the AUKUS.
    • Biden travelled to Europe in June this year to revitalise the North Atlantic Treaty Organisation.
    • Summit with Russia: Biden also decided on an early summit with Russian President Vladimir Putin that took place in Geneva at the end of his European tour.
    • Rebalancing relations: Biden’s team believed that the greatest strength of the US was its wide network of allies and partners.
    • And that mobilising them was the key to rebalancing relations with China.

    How China is making alliances and partnerships?

    • While China’s economic reach is now global and deep, political and military alliances have not been part of Beijing’s tradition.
    • Relations with Russia at peak: Beijing’s ties with Moscow have never been as close as they are.
    • Relations with N. Korea and Pakistan: China also has strong alliance-like relations with North Korea and Pakistan.
    • But there can be little comparison though between the kind of strengths that American allies bring to the table with those of China’s partners.

    Is Asian geopolitical structure turning in China’s favour?

    • Beijing was betting on the proposition that the Asian geopolitical structure was turning, irretrievably, in China’s favour.
    • This is based on a number of propositions.
    • Location of the US: America, located far from Asia, will have trouble overcoming the tyranny of geography in a conflict with China.
    • The economic and military power of China: China’s hard power — both economic and military — relative to the US is growing rapidly and shifting the local balance of power in its favour.
    • Location of China: The proximity of China and Asian regional integration have made Beijing the most important economic partner for the whole region.
    • Beijing believed that few Asian nations would want to spoil their commercial relations with China and align with Washington.
    • Power imbalance: The vast imbalance in military power between Beijing and its neighbours it presumed would dissuade most Asian states from considering armed confrontations with China
    • Breaking up coalition: China counted on the fact that it is easier to break up coalitions than build them.

    Implications of China’s aggressive policies

    • Making the US unfriendly prematurely: Chinese policies have driven the US towards an unanticipated internal consensus on containing Beijing.
    • Making a friendly America into an enemy prematurely could go down as one of Xi Jinping’s egregious strategic errors.
    • Driving regional countries towards the US: China’s aggressive regional policies are driving many countries like Australia, India, Japan, the Philippines and Vietnam, towards the US.
    • Neighbouring countries pursuing stronger national military capacities: While the military balance of power in Asia has certainly turned in China’s favour, it has not cowed down its neighbours.
    • Many are pursuing stronger national military capabilities to limit some of the threats from China.
    • Stoked nationalism: China, which never stops to emphasise its own nationalism, appears to have underestimated the depth of similar sentiment in other Asian states.
    • Today, it is driving many of China’s neighbours into the US camp.
    • It is America and not China that today talks about the sovereignty and territorial integrity of Asian nations.

    Consider the question “One of the many consequences of China’s assertive posture in Asia has been the emergence of geopolitical coalitions to limit Beijing’s regional dominance. Critically analyse.”

    Conclusion

    It has been quite fashionable in the West as well as in the East, to proclaim that China’s hegemony is inevitable, American decline is terminal, and Asian coalitions are unsustainable. Those conclusions are premature at best. For Xi Jinping has squandered many of China’s natural geopolitical advantages.

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  • Blockchain Technology: Prospects and Challenges

    Risks involved in investment in cryptocurrencies

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Changing patterns in saving and investment

    Context

    We are witnessing the change where the cult of savers has changed into investors. They are looking for a good return and willing to take the risk.

    Changing the behaviour of the savers

    • There is a new wave of savings and investments in the country that is evolving quite fast.
    • Crypto exchanges assure you that they are safe.
    • But it is the exchange that is safe, not the value of the coin, which will be driven by the market.
    • The equity boom is on, and all the unicorns have delivered excellent results.
    • That’s why bank deposits are no longer on our plates.
    • Banks discouraging deposits: Interestingly, banks today are discouraging deposits with low rates as this is the only way they can manage their balance sheets.
    • Low-interest rate: There are few deployment avenues and paying 5 per cent interest to savers and investing the deposits at 3.35 per cent in the reverse repo auction is a sub-optimal game.

    How safe is investment in cryptocurrencies?

    • From equities, there has been a swift shift to cryptos, which is still a grey area.
    • The regulators/government are wondering what to do. The issue will be discussed in the winter session of Parliament.
    • But investments have been made and there is no stopping this global wave.
    • Currency with no underlying asset: Making money on a currency that has no underlying asset like a metal or other currency and is traded on faith is unique; especially Bitcoin, whose originator is not known by face but by just a name.

    Gaming as a skill

    • There is another door to a new kind of gaming where you make money by making teams and following the matches.
    • The law was first silent, and then confused.
    • But it finally accepted gaming as a skill.
    • Logically, soon we should be able to bet on matches too, if all this is in order.

    Conclusion

    We are witnessing a change in the pattern of holding onto money, where savings get transformed to investment and risk appetite changes from conservative to aggressive. Will this change? Probably not, in the near future, as long as conventional deposits continue to give inferior returns.

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