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Type: Op-ed

  • What caused Sri Lanka’s worst economic crisis?

    Context

    Sri Lanka’s ruling Rajapaksa family is facing mounting public anger, calls for resignations and political defections amidst the island’s worst economic crisis in its post-independence history.

    Reasons for the crisis

    • 1] Overnight switch to organic farming and import ban on fertiliser: There was the decision to ban fertiliser imports and switch overnight to organic farming.
    • The decision was reversed after sustained farmer protests but not before damage had already been done to crop yields.
    • 2] Then, precious foreign exchange was wasted in propping up the rupee while imposing controls on key imports that led to shortages and price rise.
    • 3] For several months, as the crisis deepened with rolling power-cuts and shortages of essentials, the government refused to seek IMF assistance.
    • It has now relented on the IMF, but Sri Lanka’s economic distress has been prolonged and deepened by this indecision.

    Contradictions in the Sri Lanka’s politics

    • While the immediate causes of popular anger are explicable, the crisis also reveals a more enduring contradiction at the foundation of Sri Lanka’s politics.
    • Sinhala nationalist-inspired policies: What this crisis shows is that Sinhala nationalist-inspired policies are no longer financially or politically viable.
    • Hardline approach toward Tamils: The Rajapaksas first rode to power in September 2005 on the wave of Sinhala nationalist antipathy against the then-ongoing Norwegian-mediated peace process with the LTTE.
    • Upon his election as president, Mahinda expanded the military and launched a full-frontal military offensive that ended with the LTTE’s total defeat and destruction in May 2009.
    • After the war, instead of seeking a political settlement with the Tamils, Mahinda Rajapaksa unrolled a de-facto militarised siege of the Tamil-speaking areas and population.
    • Assertive foreign policy: The hardline approach to the Tamils and their demands was also linked to a new, more assertive foreign policy.
    •  The government turned away the long-established pattern of alignments with Western states and India.
    • Mistrust of India: There is a long-standing mistrust of India amongst Sinhala Buddhist nationalists who see it as the source of historic Tamil invasions.
    •  The Rajapaksas translated this sentiment into policy, pushing back against Indian attempts to forge closer economic ties and a constitutional settlement of the Tamil question.
    • Ties with China: In place of these ties, the Rajapaksas ostentatiously set out to forge new alliances, principally with China.
    • The Rajapaksas also bet on a new geo-political optimism.
    • They believed that with China’s rise, Sri Lanka’s location on east-west trade lanes would become a prized asset.
    • They were confident that in the global competition for power triggered by China’s rise, international actors would be compelled to seek Sri Lanka’s favour for fear of “losing” it to the other side.
    • With this geo-political calculus in mind, they assuredly rebuffed Western and Indian demands.
    • None of the great powers who were supposed to be competing for Sri Lanka’s favour have stepped up to offer a bailout, although the sums are quite small by global standards.
    • The bid for total sovereign autonomy has crash-landed and yet the alternatives are also politically difficult.

    More leverage to international actors

    • The irony of Sri Lanka’s push for total sovereign autonomy is that it has given international actors more leverage than they had before.
    • Going to the IMF will require concessions on human rights and good governance to secure preferential access to European markets.
    • At the same time, Indian bilateral assistance has conditionalities on clearing controversial investments.

    Way forward

    • Push non-reversible changes: International actors who really want to help Sri Lanka should use this leverage to push for tangible and non-reversible changes in the treatment of Tamils and Muslims whatever leadership emerges in Colombo.
    • Eemilitarisation and normalisation of relations with the Tamils and Muslims: The crisis can serve as a reality check for the Sinhala nationalist leadership and electorate. The model of economic and political governance they have pursued is unsustainable, and the alternatives must be faced.
    • The most pressing of these is the demilitarisation and normalisation of relations with the Tamils and Muslims.
    • Sinhala political attention can perhaps then be turned to the other pressing failures of governance that have brought Sri Lanka to this state.

    Conclusion

    The Rajapaksas may be the principal protagonists of this crisis but the underlying script they have followed is a Sinhala Buddhist one and until Sri Lanka finds a new script it cannot find peace or stability.

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  • Fulfilling the potential of the Bay of Bengal community

    Context

    The celebrations to mark the 25th year of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) have been accompanied by the announcement of several new initiatives.

    Important outcome of BIMSTEC Summit

    The summit had several important outcomes: Expanding the grouping’s agenda, deepening cooperation between the member countries and planning systematically for consistency and coherence.

    1] Finalisation of charter

    • The Bay of Bengal Community was launched in 1997. But its charter, finalised last week, was more than two decades in the making.
    • The 20-page document adopted at the fifth BIMSTEC Summit articulates the purpose, principles and legal standing of the organisation.
    • It also delineates the process to admit new members – this requires the consensus of the members.
    •  The emphasis on consensus is important, given the sensitivities of the member countries.
    • One important provision in the charter is to keep regular meetings on track and provide enough scope to the BIMSTEC Permanent Working Committee to keep the process energised.

    2] Development on connectivity issues

    • Amongst the important decisions is the one related to the BIMSTEC Master Plan for Transport Connectivity.
    • The region requires seamless connectivity through multi-modal channels that improve links within and amongst the member countries.
    • These channels should be in sync with the regulatory frameworks of the member countries.
    • There are proposals to extend the trilateral highway project between Thailand, Myanmar and India to Laos and Cambodia. Bangladesh, Bhutan and Nepal have also evinced interest in the project.
    • Digitisation has enhanced cooperation in customs regulations and facilitated and improved cargo clearance procedures. All this will surely enhance investment linkages and improve regional trade.

    3] A systemic approach to streamline the evolution of BIMSTEC.

    • Establishing an Eminent Persons’ Group (EPG) for formulating a vision document for the region will help in articulating the aspirations of the collective.
    • EPGs have been quite useful in the EU and ASEAN.
    • For instance, the ASEAN-India Eminent Persons Group (AIEPG) was constituted in 2005 after the Eighth ASEAN-India Summit.
    • Its recommendations still guide the grouping’s work.
    • In 2011, the EU constituted an EPG  to suggest a roadmap to address the challenges arising from the resurgence of intolerance and discrimination in Europe.

    4] MoU for legal assistance and mutual cooperation

    • The MoU for legal assistance in criminal matters and additional MoUs for mutual cooperation between diplomatic academics and training institutes would help in creating an ecosystem of deeper knowledge-related cooperation.
    • The technology transfer facility proposed in Colombo is likely to augment these efforts.

    India’s leading role

    • India has promised $1 million to set up a Secretariat in Dhaka.
    • India has identified several other areas where it will support the collective.
    • Delhi will provide a $3 million grant to the BIMSTEC Centre for Weather and Climate, promote collaboration between industries and start-ups, and launch programmes that will help in the adoption of international standards and norms.
    • Agricultural trade analysis: Delhi has also suggested a regional value chain based agricultural trade analysis – this will be conducted by the RIS.
    • The Asian Development Bank and the New Delhi-based ICRIER have stewarded awareness programmes on trade facilitating measures in the member countries.
    • Support to Sri Lanka and Nepal: The pandemic has created fresh challenges and aggravated old ones in the countries of the region, particularly Sri Lanka and Nepal.
    • India’s support to these countries, especially in financial matters, could help in reducing undesirable external intervention in the region.

    Way forward

    • Need for FTA: The early completion of the regional free trade agreement could provide a fillip to the organisation’s efforts.
    • Promote research on cultural and civilisation linkages: Besides economic links, the Bay of Bengal countries share a cultural and civilisational legacy.
    • The role of institutions like Nalanda University in promoting research on cultural and civilisational linkages and improving the adoption of sustainable practices would be equally significant.

    Conclusion

    The collective’s fifth summit that concluded in Colombo showcased member nations’ resolve to facilitate connectivity and security and enhance the prosperity of the region.

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  • RBI shift on monetary policy

    Context

    The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday gave a surprise, with a formal start to policy normalisation. This was contrary to the predominant market expectations of a hold.

    RBI on the path of policy normalisation

    • Focus on target of 4% +/- 2%: While the MPC voted unanimously to remain accommodative, in a change of language, the focus would now be on “withdrawal of accommodation to ensure that (CPI) inflation remains within the target (of 4 per cent +/- 2 per cent) going forward”.
    •  Remember, the RBI had become a (flexible) inflation-targeting central bank since FY17, whose primary objective is price stability, that is, inflation management.
    • The Liquidity Adjustment Facility (LAF) corridor was narrowed back to the conventional 0.25 percentage points from the earlier extraordinary pandemic widening in late March 2020.
    • The cap of the erstwhile corridor was the repo rate and the floor was the reverse repo.
    • Now, while the repo rate was held at 4.0 per cent and the latter at 3.35 per cent, the floor of the corridor was increased by 0.4 percentage points from 3.35 per cent.
    • There was also a change in the monetary policy orientation, of which the stance is one component.
    • The priority for monetary policy now is inflation, growth and financial stability, in that order.

    Reasons for unexpected tightening of policy

    • Inflation concerns: Despite uncertainty over growth impulses and demand concentrated at the upper-income level households, inflation has increasingly emerged as a big concern.
    •  Given that inflation is likely to average 6.1 per cent in Q4 of FY22, this increases the risk of inflation remaining above the 6 per cent upper target for three consecutive quarters, necessitating an explanation to the government by the MPC.
    • One comforting aspect of this scenario is that household inflation expectations remain anchored, with the median of three months to one year ahead expectations (as of March ’22) rising by only 0.1 percentage points from the earlier January readings.
    • Stabilisation of demand: On demand conditions, the RBI scaled-down the FY23 real GDP growth projection to 7.2 per cent (from 7.8 per cent), indicating that a combination of continuing supply dislocations, slowing global economy and trade, high prices and financial markets volatility are likely to take a toll.
    • One possible reconciliation with modest GDP growth is continuing weakness in services, which is also borne out by channel checks.
    • Certainly, continuing high inflation is likely to lead to some demand destruction, which will act as an automatic stabiliser.
    • A relatively loose fiscal policy is likely to offset some of this reduced demand, particularly with continuing subsidies to lower-income households.
    • Financial stability: This has multiple dimensions – interest and foreign exchange rates, market volatility, banking sector asset stress, and so on.
    • An important objective for the RBI is the management of money supply and system liquidity.
    • In a rising rate cycle, with a large borrowing programme of the Centre and state governments, interest rates on sovereign bonds are likely to increase without a measure of support from the RBI through Open Market Operations (OMOs).
    • This will entail injecting more liquidity into an already large surplus, which might add to inflationary pressures.
    • The introduction of the overnight Standing Deposit Facility (SDF) was a significant measure in this context.
    • Unlike the reverse repo facility, the RBI will not need to give banks government bonds as collateral against the funds they deposit.
    • This is thus a more flexible instrument should a shortage of government bonds in RBI holdings actually transpire under some eventuality, say the need to absorb large capital inflows post a bond index inclusion.

    What are the implications?

    • Interest rates will begin to increase but, for bank borrowers, this is likely to be a very gradual process.
    • For corporates and other wholesale borrowers, who also borrow from bond markets, this increase is likely to be faster as the surplus system liquidity is gradually drained.
    • How this is likely to affect demand for credit is uncertain, given the capex push of the government, some revival of private sector investment and likely continuing demand for housing.

    Conclusion

    This cycle of policy tightening will present a particularly difficult mix of economic and financial trade-offs, but RBI has demonstrated the ability to innovatively use the multiple instruments at its disposal to ensure an orderly transition.

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    Back2Basics: Liquidity Adjustment Facility corridor

    • Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements or repos.
    • LAF is used to aid banks in adjusting the day to day mismatches in liquidity (frictional liquidity deficit/surplus).
    • The liquidity adjustment facility corridor is the excess of repo rate over reverse repo.

  • Criminal Procedures (Identification) Bill violates right against self-incrimination

    Context

    The Bill proposes to collect “measurements” of convicted persons, those who are arrested (or detained under preventive detention laws) or those who have executed bonds promising good behaviour.

    Dilution of right against self-incrimination

    • The Constitution, under Article 20(3), protects an accused from being compelled to give witness against himself.
    • This fundamental right has been diluted over the years.
    • In 2005, the Code of Criminal Procedure (CrPC) was amended to allow a magistrate to order any person to give their handwriting samples for the purpose of an investigation or proceeding.
    • In 2019, the Supreme Court, in Ritesh Sinha v. State of UP, held that such handwriting samples could include voice samples.
    • It relied upon its judgment in the Kathi Kalu Oghad case (1962) that held that giving palm impressions or footprints could not be called self-incriminatory because impressions were unchangeable, except in rare cases”.
    • Instead, it held that the Constitution bars the compulsory extraction of a statement — oral or written — from the accused, “which makes the case against the accused person at least probable, considered by itself”.

    Provisions in the Bill

    • While the databasing of convicted persons is not new, the new piece of legislation allows for taking information, including finger-impressions, palm-print impressions, footprint impressions, photographs, iris and retina scan, physical, biological samples and their analysis, behavioural attributes including signatures, handwriting or any other examination referred to in Sections 53, 53A of the CrPC.
    • It also mandates the National Crime Records Bureau to store, preserve and destroy the record of measurements at the national level as well as process and share them with any law enforcement agency.

    Issues with the Bill

    • Right against self-incrimination is unlikely to apply to technologies in use today.
    • Wide scope of under new technologies: The logic that was used in 1962 to interpret what would violate the right against self-incrimination is unlikely to apply to technologies in use today.
    • The Bill is vaguely worded and the nature of the processing, sharing, and dissemination of data it entails will most certainly involve the use of new and emerging technologies. 
    •  Their application to policing and the criminal justice system has new implications for the right against self-incrimination.
    • The compulsory submission of such information could have chilling effects after being subjected to new technologies – in other words, the past of an accused person might be enough to incriminate him.
    • Possibility of coercive data collection: The Bill proposes to collect “measurements” of convicted persons, those who are arrested (or detained under preventive detention laws) or those who have executed bonds promising good behaviour.
    • Only those arrested for petty offences that are punishable with less than seven years may not be obliged to allow the recording of measurements.
    • This rings a warning bell about coercive data collection, especially when seen in the light of the practices used to police oppressed communities.
    • For instance, under the Criminal Tribes Act, 1871, many nomadic and semi-nomadic communities were labelled hereditary criminals.
    •  Despite the Act being repealed in 1952, these denotified tribal (“Vimukta”) communities continue to be treated as criminals by birth through the “Habitual Offenders” provisions in state-level police regulations that allow local police stations to keep records of such persons residing in their area.
    • It condemns a section of the country’s population to several cycles of arrest, bail, and acquittal.
    • The new piece of legislation could make the practice of history-sheeting, undertaken when a person is merely alleged of a crime, and not convicted, even more coercive.
    • Long storage period and no clear process for destroying information: the “measurements” are to be stored at the national level for 75 years, with no clear procedure outlined for destroying the information.

    Conclusion

    The right against self-incrimination is at the heart of protection against police excess and torture. Record-keeping as mandated by the Bill violates this right. Parliament must make laws that protect against such blatant attacks on fundamental rights and freedoms, rather than enable them.

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  • CBI should have a strong leader with a distinct belief in the law and ethics

    Context

    The Chief Justice of India (CJI), Justice N.V. Ramana, while delivering the annual (and the 19th edition) D.P. Kohli Memorial Talk minced no words in condemning the utter subordination of agencies to the executive and its disastrous consequences for the cause of justice.

    Key takeaways

    • Resisting the pressure: The CJI called upon investigators to stand up to unethical pressures in order not to betray the trust reposed in them by the public.
    • Strong court: We need a strong Supreme Court and equally strong High Courts to keep our investigators on the straight and narrow path.
    •  Fixed tenure: Earlier, CBI Directors were changed at will.
    •  Mandatory tenure was meant to insulate the CBI Director from the caprice of the executive.
    • This process has since been expanded to include the CJI in the selection panel.
    • Strong leadership: The CBI now has some of the brightest Indian Police Service officers in its higher echelons.
    • However, it is not enough if the middle-rung supervisors alone are straightforward.

    Should there be an umbrella organisation?

    • The CJI had proposed an umbrella organisation that will oversee all investigating agencies.
    • This idea was meant to avoid having multiple agencies looking into the same set of allegations.
    • Apart from its impracticality, such a novel body could generate its own problems — of turf wars and ego clashes.

    Way forward

    • There is a need to focus on weeding out the dishonest among officers and rewarding those who have shown and proven themselves to be honest and professionally innovative.

    Conclusion

    There needs to be a strong and virtuous leader who will not only be honest but also stick his neck out to protect his deputies if and when confronted by an unscrupulous political heavyweight.

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  • India-Nepal relationship

    Context

    The Nepal Prime Minister, Sher Bahadur Deuba, paid a long-awaited visit to India last week (April 1-3). Sworn in in July 2021, this was his first bilateral visit abroad, in keeping with tradition.

    Positive outcomes of the visit

    • Among the highlights was the operationalisation of the 35 kilometre cross-border rail link from Jayanagar (Bihar) to Kurtha (Nepal). 
    • The second project that was inaugurated was the 90 km long 132 kV double circuit transmission line connecting Tila (Solukhumbu) to Mirchaiya (Siraha) close to the Indian border.
    • In addition, agreements providing technical cooperation in the railway sector, Nepal’s induction into the International Solar Alliance, and between Indian Oil Corporation and Nepal Oil Corporation on ensuring regular supplies of petroleum products were also signed.
    • The Mahakali Treaty covers the Sarada and Tanakpur barrages as well as the 6,700 MW (approximately) Pancheshwar Multipurpose project.
    • Both sides have agreed to push for an early finalisation of the detailed project report.
    • The joint vision statement on power sector cooperation recognises the opportunities for joint development power generation projects together with cross border transmission linkages and coordination between the national grids; it can provide the momentum.

    Issues in India-Nepal relations

    • Over the years, a number of differences have emerged between India and Nepal that need attention.
    • The relationship took a nosedive in 2015, with India first getting blamed for interfering in the Constitution drafting process and then for an “unofficial blockade” that generated widespread resentment against India.
    • Revision of Treaty of  Peace and Friendship: As one of the oldest bonds, the 1950 Treaty of Peace and Friendship was originally sought by the Nepali authorities in 1949 to continue the special links they had with British India.
    • It provides for an open border and for Nepali nationals to have the right to work in India.
    • But today, it is viewed as a sign of an unequal relationship, and an Indian imposition.
    • The idea of revising and updating it has found mention in Joint Statements since the mid-1990s.
    • Demonetisation is another irritant. In November 2016, India withdrew ₹15.44 trillion of high value (₹1,000 and ₹500) currency notes. Many Nepali nationals who were legally entitled to hold ₹25,000 of
    • Indian currency (given that the Nepali rupee is pegged to the Indian rupee) were left high and dry.
    • The Nepal Rashtra Bank, which is the central bank, holds ₹7 crore and estimates of public holdings are ₹500 crore.
    • After more than five years, it should certainly be possible to resolve this to mutual satisfaction.
    • Kalapani boundary issue: These boundaries had been fixed in 1816 by the British, and India inherited the areas over which the British had exercised territorial control in 1947.
    • While 98% of the India-Nepal boundary was demarcated, two areas, Susta and Kalapani remained in limbo.
    • In November 2019, India issued new maps following the division of the State of Jammu and Kashmir as Union Territories, Jammu and Kashmir and Ladakh.
    • Though the new Indian map did not affect the India-Nepal boundary in any material way, a new map of Nepal was endorsed by the legislature through a constitutional amendment.
    • While it did not alter the situation on the ground, it soured relations with India and added a new and emotive irritant.

    Way forward

    • The political narrative has changed in both countries and these issues can no longer be swept under the carpet or subsumed by invoking a ‘special relationship’.
    • Part of the success of Mr. Deuba’s visit was that none of the differences was allowed to dominate the visit.
    • Yet, to build upon the positive mood, it is necessary these issues be discussed, behind closed doors and at Track 2 and Track 1.5 channels.

    Conclusion

    The need today is to avoid rhetoric on territorial nationalism and lay the groundwork for quiet dialogue where both sides display sensitivity as they explore what is feasible. India needs to be a sensitive and generous partner for the “neighbourhood first” policy to take root.

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  • Demand side strategies for climate change mitigation

    Context

    A paradigm shift in the way we think about climate action has been reported for the first time in the recent IPCC report through a chapter on “demand, services and social aspects of mitigation”.

    Demand side strategies and their impact

    • The report shows how, through comprehensive demand-side strategies, carbon dioxide and non-carbon GHG emissions globally can be reduced by 40–70 per cent compared to the 2050 emissions projection.
    • This can be achieved through reduced food waste, following sustainable healthy dietary choices that acknowledge nutritional needs, adaptive heating and cooling, climate-friendly dressing culture, integration of renewable energy in buildings, shifting to electric light-duty vehicles, and to walking, cycling, shared and public transit, sustainable consumption by intensive use of longer-lived repairable products, compact city design and efficient floor area use of buildings.
    • The IPCC report also shows that individuals with high socioeconomic status contribute disproportionately to emissions and have the highest potential for emissions reductions, as citizens, investors, consumers, role models, and professionals.
    • Of the 60 actions assessed in this report, on an individual level, the biggest contribution comes from walking and cycling wherever possible and using electricity-powered transport.

    Need for systemic changes

    • To be effective, these shifts will need to be supported by systemic changes in some areas — for example, land use and urban planning policies to avoid urban sprawl, support for green spaces, reallocation of street spaces for walking and physical exercise, investment in public transport and infrastructure design for active and electric vehicles.
    • Electrification and shifts to public transport also bring benefits in terms of enhancing health, employment, and equality.
    • By providing user-level access to more efficient energy conversion technologies, the need for primary energy can be reduced by 45 per cent by 2050, compared to 2020.
    • Demand-side changes cannot deliver the net-zero goal on their own.
    • But this requires investment in and transformation across every sector, along with policies and incentives that encourage people to make low-carbon choices in all aspects of their lives.
    • There is huge untapped potential in the near term through changes across transport, industry, buildings, and food that will take away the supply-side uncertainties and make it easier for people to lead low-carbon lifestyles and, at the same time, improve well-being.

    Conclusion

    The latest IPCC report puts people and their well-being at the centre of climate change mitigation. The messages are from a global perspective but have relevance to the national context of every country.

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  • Strengthen secularism

    Context

    The High Court of Karnataka has not been able to settle the hijab issue. The petition has been filed in the apex court by a Muslim student against the high court judgement.

    Political and Constitutional dimensions of the issue

    • The issue of the hijab is political as well as constitutional.
    • The top court will examine the constitutional aspect and its judgment will hopefully settle the issue.
    • But the political dimension of the hijab issue will continue to trouble Indian society for a long time.
    • The Indian Constitution provides for freedom of religion and conscience on the one hand and secularism for the governance of the country on the other.

    Understanding the freedom of religion under Indian Constitution

    • Under the Indian Constitution, there is a separation of religion from the state as in Europe.
    • The essence of India’s secularism is that the state has no religion.
    • This is clear from Articles 27 and 28 of the Constitution.
    • Article 27 says that no tax can be levied for promoting any particular religion.
    • In other words, no public revenue is permitted to be spent in favour of any particular religion. 
    • Article 28 says that no religious instruction shall be given in any educational institutions wholly maintained out of state funds.
    • The same Article says that no educational institution recognised or aided by the state shall compel any person to attend religious classes or worship therein.
    • Article 25(2)(a) empowers the state to regulate secular activities associated with religious practice.
    • Article 15 prohibits any kind of discrimination on the ground of religion.
    • Freedom of religion is subject to other fundamental rights: Above all, freedom of religion is made subject to other fundamental rights, apart from the reasonable restrictions on the grounds of public order, morality and health.
    • Thus, the freedom of religion under the Constitution does not enjoy the same status as other secular rights such as equality before law, non-discrimination, right to life and liberty, etc.

    Why India needs to be secular

    • Theocracy will ensure the disintegration of the country.
    • 1] India is a multi-religious country where the largest minority is around 200 million.
    • The Government of India had notified as many as six minority religions in the country.
    • So, a theocratic state with the majority religion as the state religion is an unworkable proposition.
    • 2] Complex structure: Another crucial factor which makes a theocratic state impossible in India is the complex, inegalitarian, hierarchical and oppressive social structure of the majority religion.
    • 3] There would be no equality: Since a theocratic state based on the religious texts, in the Indian context, would mean a state which would deny equality before law and equal protection of law to the subaltern class and discriminate against them on the basis of caste, it will be inherently unstable.
    • This may lead to perennial conflicts and the eventual disintegration of society.
    • Therefore, we reach the inevitable conclusion that India, as a nation, can survive only as a secular state where the state has no religion and does not promote any religion.

    Conclusion

    Secularism was chosen as the foundational principle of the republic to keep the nation united. Enlightened citizens should realise that if secularism is jettisoned, the hard-won national unity will be in peril. It is the patriotic duty of every citizen to strengthen secularism and thus save the republic.

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  • Unlocking the potential of green hydrogen

    Context

    The ongoing tensions between Russia and Ukraine have led to the prices of crude oil shooting to $130/barrel. Green hydrogen is an emerging option that will help reduce India’s vulnerability to such price shocks.

    Four deficiencies in Renewable Energy Technologies

    • 1] Intermittent nature of RE: RE can only be generated intermittently.
    • Battery technology cannot store electricity at a grid scale.
    • 2] Financial viability: There are question marks on the financial viability of green power.
    • In India, renewable electricity is a replacement for coal-based power, the cheapest form of energy.
    • That’s a big constraint on its viability.
    • Moreover, the customers of this power – the state distribution companies – are collectively insolvent.
    • A business cannot prosper if its primary customers are not financially viable.
    • 3] Batteries are not suitable for heavy trucks: While electric cars and two-wheelers get a lot of visibility, much of India’s oil is burnt in heavy trucks.
    • Lithium batteries are not viable for trucks.
    • 4] Critical minerals: Electric vehicles require large quantities of lithium and cobalt that India lacks.
    • These minerals also have very concentrated supply chains that are vulnerable to disruptions.
    • Large-scale investments in electric vehicles may create unsustainable dependencies for the country.

    Is green hydrogen a solution?

    • Intermittent hydrogen in the energy mix can help circumvent some of these problems.
    • Hydrogen is an important industrial gas and is used on a large scale in petroleum refining, steel, and fertiliser production.
    • As of now, the hydrogen used in these industries is grey hydrogen, produced from natural gas.
    • Green hydrogen produced using renewable energy can be blended with grey hydrogen.
    • This will allow the creation of a substantial green hydrogen production capacity, without the risk that it may become a stranded asset.
    • Creating this hydrogen capacity will provide experience in handling the gas at a large scale and the challenges involved.
    • Blending with CNG: To widen the use of green hydrogen, it can be blended with compressed natural gas (CNG), widely used as a fuel for vehicles in Delhi, Mumbai and some other cities.
    • This will partly offset the need for imported natural gas and also help flag off the challenges of creating and distributing hydrogen at a national level.
    • By bringing down the price of green hydrogen sufficiently, India can help unlock some stranded assets.
    • The country has close to 25,000 megawatts of gas-fired power generation capacity that operates at a very low-capacity utilisation level. The high price of natural gas reduces the viability of such electricity.
    • These plants could use hydrogen blended with natural gas. Hydrogen should, however, be used to generate electricity after it has served its utility in other avenue.

    Way forward

    • To catalyse a hydrogen economy, India needs some specialist players to execute projects as well as finance them.
    • Participation of private players: Apart from government-backed players, the hydrogen economy will need private sector participation.
    • India’s start-up sector, with over 75 unicorns, is perhaps the most vibrant part of the country’s economy currently.
    • This ecosystem has been enabled by a mix of factors, including the presence of entrepreneurs with ideas and investors who are willing to back up these ideas
    • Creation of refueling network: One challenge of using new transport fuels, whether CNG or electric vehicles, is the creation of large-scale refuelling networks.
    • Bringing hydrogen vehicles on the road too soon will require the creation of yet another set of infrastructure.
    • Building fleets of hydrogen-fueled vehicles for gated infrastructure can be a good starting point.
    • Airports, ports and warehouses, for instance, use a large number of vehicles such as forklifts, cranes, trucks, tractors and passenger vehicles.

    Conclusion

    The government’s Green Hydrogen Policy sends the right signals about its intent. It now needs to ensure that investment can freely come into this space.

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  • Human Migration: Reasons & Impact

    Context

    Repeated surveys have found that the incomes of migrant households continue to be lower than pre-pandemic levels, even after returning to cities.

    Lack of policy for migrants

    • In the wake of a nationwide lockdown, India was left shocked by the plight of migrant workers walking hundreds of kilometres.
    • They became the focus of large-scale relief efforts by governments and civil society alike.
    • The Government ramped up the One Nation One Ration Card (ONORC) project, announced the Affordable Rental Housing Complexes (ARHC) scheme, set up the e-Shram portal and began to draft a migration policy.
    •  Despite this, a cohesive migration policy guidance remains elusive.
    • Contribution of migrant workers: Today, a third of the nation’s workforce is mobile.
    • Migrants fuel critical sectors such as manufacturing, construction, hospitality, logistics and commercial agriculture.
    • Despite clear economic and humanitarian reasoning to bring migrants back into the policy discourse, the current policy scenario is at best fragmented and at worst waning.

    Structural constraints

    1] Politicisation of issue and fragmented policy response

    •  Migration is a highly politicised phenomenon in India.
    • ‘Destination States’ experience a tension between economic needs, which require migrant labour, and political needs, which promote nativist policies that impose domicile restrictions on employment and social security.
    • On the flip side, the ‘sending States’ are highly motivated to serve their “own people” because they vote in their source villages.
    • This fragmented policy response to internal migration follows from State-specific calculations.
    • Development policy in India has bet big on rural development as an antidote to migration.
    • This widespread ‘sedentary bias’ continues to influence policy even though migration is an important pathway for impoverished marginalised rural households to find economic security (and social emancipation).

    2] Categorisation challenge

    • Migrants are a perennially fuzzy category in policy discourse, located inside two larger categories: the unorganised worker and the urban poor.
    • Even the e-Shram portal, which has made impressive progress in registering unorganised workers, has been unable to accurately distinguish and target migrants.
    • Policy interventions in major urban destinations continue to conflate the urban poor with low-income migrants.
    • Hence, slum development continues as the primary medium for alleviating migrant concerns, while in reality, most migrants live on worksites that are entirely out of the policy gaze.

    3] Gaps in the data

    • Migration policy discourse is seemingly paralysed by the now well-acknowledged failure of official datasets to capture the actual scale and the frequency of internal migration in India.
    •  Data systems designed to periodically record only one spatial location have posed great challenges to welfare delivery for up to 500 million people who are part of multi-locational migrant households.
    • The novel coronavirus pandemic has placed a sharp focus on problems such as educating and vaccinating those children who accompany their migrant parents, or ensuring that migrant women avail maternity benefits at multiple locations.

    Way forward: Strategic policy guidance by Centre and a platform for inter-State coordination

    • Policy in India often emerges from the ground up, taking decades to cement into national law and standard practice.
    • We have seen this in education and food security.
    • State’s initiatives: In migration too, many States have initiated data projects that can track migrants and generate dynamic real-time data that aid welfare delivery.
    • Maharashtra’s Migration Tracking System (MTS), Chhattisgarh’s State Migrant Workers Policy is premised on registering migrant workers at source and tracking them through phone-based outreach systems.
    • Multisectoral approach: There is further need for multisectoral approaches underpinned by a strategic convergence across government departments and initiatives.
    • Odisha’s Planning and Convergence Department, which offers an institutional mechanism for inter-departmental coordination, is one possible model.
    • Important role of the Centre:  State-level political economy constraints make the Centre’s role particularly crucial in addressing issues of inter-State migrant workers at ‘destination States’.
    • The NITI Aayog’s Draft Policy on Migrant Workers is a positive step forward.

    Conclusion

    Strategic initiatives to provide migrants safety nets regardless of location as well as bolster their ability to migrate safely and affordably must keep up the momentum toward migrant-supportive policy.

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