💥UPSC 2026, 2027, 2028 UAP Mentorship (March Batch) + Access XFactor Notes & Microthemes PDF

Type: op-ed snap

  • Close the vaccination gap, in global lockstep

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: COVAX

    Mains level: Paper 2- Dealing with the vaccine inequality

    Why vaccination gap is cause of worry

    • By the end of May 2021, only 2.1% of Africans had received at least one dose of a COVID-19 vaccine.
    • A widely vaccinated world population is the only way to end the pandemic; otherwise, the multiplication of variants is likely to undermine the effectiveness of existing vaccines.
    • Vaccination is also a prerequisite for lifting the restrictions that are holding back our economies and freedoms.
    • If the vaccination gap persists, it risks reversing the trend in recent decades of declining poverty and global inequalities.
    • Such a negative dynamic would hold back economic activity and increase geopolitical tensions.
    • The cost of inaction would for sure be much higher for advanced economies than what we collectively would have to spend to help vaccinate the whole world.
    • The International Monetary Fund has proposed $50 billion plan in order to be able to vaccinate 40% of the world population in 2021 and 60% by mid-2022.

    Need to resist the vaccine nationalism

    • To achieve the goal set by IMF, we need closely coordinated multilateral action.
    • We must resist the threat posed by linking the provision of vaccines to political goals and vaccine nationalism.
    • The EU has been vaccinating its own population, while exporting large volumes of vaccines and contributing substantially to the vaccines roll-out in low-income countries.
    • The EU has also exported 240 million doses to 90 countries, which is about as much as used within the EU.
    • One-third of all COVAX doses delivered so far have been financed by the EU.
    • India’s Vaccine Maitri is another example of global solidarity.
    • However, this effort is still far from sufficient to prevent the vaccination gap from widening.

    Way forward

    • To fill widening vaccination gap, countries with the required knowledge and means should increase their production capacities, so that they can both vaccinate their own populations and export more vaccines.
    • All countries must avoid restrictive measures that affect vaccine supply chains.
    • We also need to facilitate the transfer of knowledge and technology, so that more countries can produce vaccines.
    • Voluntary licensing is the privileged way to ensure such transfer of technology and know-how.

    Conclusion

    The COVID-19 pandemic has reminded us that health is a global public good. Our common global COVID-19 vaccine action to close the vaccination gap must be the first step toward genuine global health cooperation, as foreseen by the Rome Declaration recently adopted at the Global Health Summit.

     

  • Foreign Policy Watch: India-Bangladesh

    India-Bangladesh Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- India-Bangladesh relations

    The article highlights the need for Indian leaders to respect the sentiments of Bangladesh by avoiding adverse comments during elections and recognition of Bangladesh’s importance for India.

     Diplomacy with Bangladesh

    • Long-standing bilateral problems: As a neighbour nearly surrounded on all territorial sides by India, there are the inevitable bilateral problems of long duration.
    • Such problems include a perennially favourable balance of trade for India, drought and flood in the 54 transboundary rivers flowing from India to Bangladesh, and the smuggling of goods and vulnerable human beings across the approximately 4,100 kilometre land border.
    • Cultural ties with India: There are several sections who regard their Bengali roots and traditions as being of equal validity as their religious affiliation, and treasure the linguistic and cultural ties with adjacent India.
    • India’s expectations: For India’s attentions and support, India’s expectations are that a neighbour will keep India’s concerns in mind when devising and pursuing its policies.

    Steps taken to consolidate the bilateral ties

    • Bangladesh has successfully dealt with Muslim fundamentalist terrorists.
    • Bangladesh has also controlled the Northeast militant movements sheltering in Bangladesh.
    • This has facilitated the pacification of India’s Northeast.
    • Bangladesh facilitated a considerable degree of connectivity between India and its Northeast by land, river and the use of Bangladeshi ports.
    • Indian investments in Bangladesh have been encouraged.
    • There are at least 100,000 Indian nationals now living and working in that country.
    • For economic integration along with free movement of commerce and capital, the movement of persons on the lines of Nepal and Bhutan will have to be considered.

    Consider the question “To a certain degree both India and Bangladesh depend on each other for security and stability. In light of this, take an overview of the consolidation of the bilateral ties between the two countries and discuss the issues that need to be addressed between the two countries.”

    Conclusion

    Responsible individuals on both sides of the border, whether in government or the Opposition, must be actively discouraged from words and actions detrimental to the consolidation of the existing cordiality.

  • Challenges federalism faces in India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Growing tendency towards centralisation

    The article highlights the challenges faced by the federalism in India in various domains and forms and suggests the ways to deal with these challenges.

    Growing tendency towards Centralisation

    • Moves to erode the powers of State governments are not new.
    • The Centre, on several occasions, has used its powers to dismiss or use the Governor to intimidate democratically elected governments.
    • During the Emergency, education was moved to the Concurrent list which was until then a State subject under the constitutional division of responsibilities.
    • However, the changes to federal relations at present are more systemic.
    • There has been increasing centralisation in resource allocations and welfare interventions.
    • After GST, the gap between the revenue that State governments are allowed to generate and the expenditure that they are expected to incur has been widening.
    • The Centre has been encroaching into domains under State government control through centrally sponsored schemes in sectors such as education and health.

    Three domains in which federalism faces challenges

    1) State-capital relation

    • At present there is growing trend towards centralising economic power in conjunction with political centralisation.
    • The consolidation and expansion of a few big business groups is taking place, probably at the expense of smaller players.
    •  On the one hand, the Centre has sought to insulate Indian big business from global competition by choosing not to enter into the Regional Comprehensive Economic Partnership (RCEP).
    • But the power of small businesses is eroded through support for GST and the call for a single national market.
    • So, big businesses are more likely to benefit from a removal of State-level barriers to trade at the expense of smaller regional players.

    2) Institutional transgression

    • Central institutions are increasingly weakening the policy levers of State institutions.
    • There are growing allegations of the misuse of institutions such as the Income Tax Department, the Enforcement Directorate and the National Investigation Agency are being used to intimidate opponents..
    •  Direct transfers to beneficiaries of welfare schemes bypassing States are also contributing to this dynamic.
    • The Centre is increasingly ignoring elected representatives of State governments, holding meetings with State secretaries and district collectors on issues that are primarily under State control.
    • Governors perform active administrative roles instead of their signatory roles.
    • To ensure national uniformity in educational institutions NEET was introduced in medical education.
    • But it subverts the affirmative action policies developed at the regional level in response to local.
    • In the domain of health, the Centre has now put State governments at a disadvantage in vaccine usage by fixing differential pricing for procuring vaccines.

    3) Socio-cultural foundations

    • Beside the legal-constitutional aspects of federalism, it is diversity in cultural foundation of regions that sustains Indian federalism.
    •  Markers of regional identities and regional socio-cultural practices are now interpreted as belonging to a pan-Indian Hindu tradition.

    Conclusion

    To stem this trend towards centralisation we need to provide more legal and constitutional safeguard to the States, strong regional political assertion and a strong federal coalition.

  • Tax Reforms

    Global minimum tax may help India but can cause international disagreements

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Global Minimum corporate tax and issues associated with it

    The article deals with the issue of global minimum tax proposal floated by the US, challenges it faces and its implications for India.

    The US proposal for global minimum tax

    • In its recent proposal, the U.S. sought to impose a global minimum tax on foreign income earned by U.S. corporations.
    • The proposal is intended to disincentivise American companies from inverting their structures due to the increase in the U.S. corporate tax rate.
    • The U.S. is now discussing a floor of 15% for the minimum tax rate.
    • The proposal is similar to Pillar Two, except for the rate of the effective minimum tax.

    Similarity with Pillar Two Proposal

    • The Pillar Two proposal was the Organisation for Economic Co-operation and Development’s (OECD) plan to plug the remaining Base Erosion and Profit Shifting (BEPS) issues
    • It provide jurisdictions the right to “tax back” where other jurisdictions have either not exercised their primary taxing right or have exercised it at low levels of effective taxation.
    • For instance, if an Indian-headquartered multinational corporation (MNC) has an entity in Singapore or the Netherlands through which global operations are run, and its income from global operations is not taxed at an effective rate of 10% or 15%, then it can be taxed in India.
    • India has been part of the Pillar Two discussions and has not objected in principle to the proposal.

    How Global Minimum Tax would benefit India?

    • The proposal, along with the increased tax bill for U.S. companies, may benefit the Indian revenue department.
    • The State of Tax Justice report of 2020 notes that India loses over $10 billion in tax revenue due to the use of offshore structures, particularly through investments made by Indian residents through Mauritius, Singapore and the Netherlands.
    • This is supported by the overseas direct investment (ODI) data from 2000 to 2021 published by the Reserve Bank of India.
    • Start-ups and large Indian conglomerates commonly use offshore structures for conducting global operations.
    • Revenue from such operations is often retained offshore and not repatriated to India.
    • Tax advantages incentivise such structures, due to which taxes on such income are not paid in India.
    • Once these proposals are implemented, Indian companies would have to pay additional taxes on their offshore structures to the extent that the effective rate of tax is lower than the global minimum tax rate.

    Challenges

    • Lack of consensus: Several countries have taken a different approach to the rate of global minimum tax.
    • While France and Germany have expressed support, the EU has raised concerns regarding the high rate proposed by the United States.
    • Tax sovereignty issue: Countries have stated that the proposal infringes upon their tax sovereignty and that the fight against unfair tax competition should not become a fight against competitive tax systems.

    Consider the question “What are the factors that led to the demand of global minimum corporate tax? What will be its implications for India?” 

    Conclusion

    As economies struggle amid the COVID-19 pandemic, the necessity of encouraging trade and economic activity should be prioritised over disagreements on tax allocations. A tax-related trade war or entrenchment of unilateral levies may further harm both global and national economies.

  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    Child labour in India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Challenges in dealing with child labour

    The article highlights the risk posed by pandemic to the gains made by India on reducing the child labour in India.

    Child labour in India

    • A Government of India survey (NSS Report No. 585, 2017-18) suggests that only 79.6%. of the children in the age group of 14-17 years are attending educational institutions (formal and informal).
    • The Census of India 2011 reports 10.1 million working children in the age group of 5-14 years.
    • Out of whom 8.1 million are in rural areas mainly engaged as cultivators (26%) and agricultural labourers (32.9%).
    • UNESCO estimates based on the 2011 Census record 38.1 million children as “out of school” i.e.18.3% of total children in the age group of 6-13 years.
    • A Rapid Survey on Children (2013-14), jointly undertaken by the Ministry of Women and Child Development and UNICEF, found that less than half of children in the age group of 10-14 years have completed primary education.

    How policies and initiatives helped reduce child labour in India (2001-11)

    • Child labour in India decreased in the decade 2001 to 2011.
    • Policy interventions such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, the Right to Education Act 2009 and the Mid Day Meal Scheme have paved the way for children to be in schools along with guaranteed wage employment (unskilled) for rural families.
    • Efforts towards convergence of government schemes is also the focus of the implementation of the National Child Labour Project.
    • Ratifying International Labour Organization Conventions Nos. 138 and 182 in 2017, the Indian government further demonstrated its commitment to the elimination of child labour.
    • The Ministry of Labour and Employment-operated online portal allows to share information and coordinate on child labour cases at the national, State and local levels for effective enforcement of child labour laws.

    Challenges ahead

    • The economic contraction and lockdowns have worsened the situation, posing a real risk of backtracking the gains made in eliminating child labour.
    • With increased economic insecurity, lack of social protection and reduced household income, children from poor households are being pushed to contribute to the family income.
    • With closure of schools and challenges of distance learning, children may drop out leaving little scope for return unless affirmative and immediate actions are taken.
    • As many schools and educational institutions are moving to online platforms for continuation of learning, the ‘digital divide’ is a challenge that India has to reconcile within the next several years.
    • The NSS Report titled ‘Household Social Consumption on Education in India’ suggests that in 2017-18, only 24% of Indian households had access to an Internet facility.
    • The Annual Status of Education Report (ASER) 2020 survey highlights that a third of the total enrolled children received some kind of learning materials from their teachers during the reference period (October 2020) as digital mode of education was opted for.

    Way forward

    •  It is through strategic partnerships and collaborations involving government, employers, trade unions, community-based organisations and child labour families that we could make a difference building back better and sooner.
    • We need a strong alliance paving our way towards ending child labour in all its forms by 2025 to achieve Sustainable Development Goal 8.7.

    Consider the question “What are the policy measures and programmatic intervention implemented to reduce the child labour in India. How Covid-19 threatens the gains made on reducing the child labour?”

    Conclusion

    To deal with the child labour challenge, we need the right level of commitment among all the relevant stakeholders and the right mix of policy and programmatic interventions are present.

  • Coronavirus – Health and Governance Issues

    COVID diplomacy 2.0, a different order of tasks

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Diplomatic fallout of the second covid wave

    The article highlights the contrast in India’s diplomacy during the first wave of the pandemic and the second wave. It also discusses the challenges ahead for India.

    India’s diplomatic structure in two Covid waves

    •  In the past month, the focus for the Ministry of External Affairs (MEA) and Missions abroad has shifted.
    • During the first wave of the pandemic, focus was on coordinating exports of COVID-19 medicines, flights to repatriate Indians abroad through the ‘Vande Bharat Mission’ after the lockdown, and then exporting vaccines worldwide- ‘Vaccine Maitri’.
    • After the second wave, Covid Diplomacy 2.0 has a different order of tasks, both in the immediate and the long term.
    • The immediate imperative was to deal with oxygen and medicine shortages that claimed the lives of thousands.
    • The Ministry of External Affairs has had to deal with internal health concerns while galvanising help from abroad for others.
    • Despite difficulties, the Ministry of External Affairs has completed the task of bringing in supplies in a timely manner, and with success.

    Dealing with vaccine shortage

    • Companies manufacturing AstraZeneca and Sputnik-V are stretched as far as future production is concerned.
    • The Chinese vaccines are out of consideration given bilateral tensions.
    • So, it is clear that India is looking to the U.S. to make up the shortfall.
    • This could be done in the following ways:
    • 1) Requesting the U.S. to share a substantial portion of its stockpile of AstraZeneca.
    • The U.S. government is holding up its AstraZeneca exports until its own United States Food and Drug Administration approves them.
    • 2) Asking the US to release more vaccine ingredients which are restricted for exports.
    • 3) To buy more stock outright from the three U.S. manufacturers, Pfizer, Moderna and Johnson & Johnson, and to encourage production in India of these vaccines.
    • Production of Johnson & Johnson single-dose vaccines in India, as had been announced during the Quad summit, will take some time.
    • The U.S. companies seem set on getting both an indemnity waiver from India as well as Emergency Use Authorisation prior to supplying them.
    • The Government may also need to make a change to its publicly announced policy that States in India will need to negotiate purchases directly, as the U.S. manufacturers want centralised orders, with payments up-front.

    2) Patent waiver

    • The promise of patent waivers, from India’s joint proposal at the World Trade Organization (WTO) will not reap early benefits.
    • Even though it has received support from world leaders such as the U.S., Russia and China.
    • Many countries including Japan, Australia, Brazil and EU are still holding out on the idea of freeing up intellectual property rights on vaccines for three years.
    • That could ultimately hold up proceedings at the WTO, as it works by consensus.

    3) Diplomatic fallout of vaccine collapse

    • The Government has defended its decision to export more than 66 million vaccines doses to 95 countries between January and April this year.
    • All exports were stopped as soon as cases in India began to soar.
    • Both India’s neighbours and partners in Africa as well as global agencies depending on India for vaccines have been left in the lurch by the Government’s failure to balance its vaccine budget.
    • For example, once India completed delivery of the first batch, of 550,000 Covishield doses, Bhutan completed the administration of the first dose to 93% of its population in a record 16 days.
    • Two months later, Bhutan does not have any vaccines to complete the second dose and has been left requesting other countries for vaccines.
    • It is no surprise that each of India’s neighbours has now sought help from China and the U.S. to complete their vaccination drives.

    4) Tracing virus pathways

    • India, as one of the worst pandemic-hit countries, must be at the forefront of demanding accountability on the origin of the virus.
    • The World Health Organisation (WHO) which studied “pathways of emergence” of SARS-CoV2 in Wuhan, listed four possibilities:
    • 1) Direct zoonotic transmission.
    • 2) An intermediate host.
    • 3) Cold chain or transmission through food.
    • 4) A laboratory incident.
    • China appears adamant on blocking these studies.
    • Even the U.S. appears to have dragged its feet on a conclusive finding, possibly because the U.S. National Institutes of Health had funded some of the Wuhan Institute’s research.

    Way forward on virus pathways

    • India must call for a more definitive answer and also raise its voice for a stronger convention to regulate any research that could lead, by accident or design, to something as the current pandemic.
    •  It is necessary to revamp the 1972 Biological Weapons Convention to institute an implementation body to assess treaty compliance, and build safer standards for the future.

    Consider the question “How different was the impact of two Covid-19 waves on India’s diplomacy? What are the challenges India faces in the near future in dealing with the fallout of the pandemic?”

    Conclusion

    With its seat at the UN Security Council as non-permanent member and its position on WHO’s Executive Board, India could seek to regain the footing it has lost over the past few months of COVID-19 mismanagement, by taking a lead role in ensuring the world is protected from the next such pandemic.

  • Israel and Palestine could take a leaf out of India’s book

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Israel-Palestine conflict

    The article suggest the Indian model for peaceful coexistence as a possible solution to Israel-Palestine conflict.

    Brief history of the conflict

    • Britain renounced its Mandate over Palestine in 1948.
    • This paved the way for the United Nations to divide Palestine between the Jews and Arabs, giving them about 55% and 45% of the land, respectively.
    • The Jews, meanwhile, had declared the establishment of the state of Israel for which they had been working for long.
    • The Palestinians, who lacked the resources to conceive of a state, failed to form a state of their own in the land allotted to them.
    • Instead, a coalition of Arab countries invaded the nascent state of Israel to nip it in the bud.
    • Israel defeated the Arab armies.
    • Israel also destroyed about 600 Palestinian villages and expelled about 80% of Arabs from its territory.
    • In 1967, in the Six-Day War, Israel captured not just more Palestinian land but also Egypt’s Sinai Peninsula and Syria’s Golan Heights.
    • During the Yom Kippur War of 1973, the Arabs came to realise that Israel is here to stay.

    Need for realisation on both the sides

    • The Arab states failed to impress the realisation of permanency of Israel upon their Palestinian brethren, a sizeable number of whom remain committed to seeking a solution through counter-violence. 
    • Vicious cycle of violence is not going to end unless there is realism on both sides.
    • The Hamas should know that Israel will not give up on holding on to land it has held for years.
    • Israel should understand that total subjugation, expulsion or even decimation of Palestinians will not make it any safer.
    • A solution based on the common humanity of all stakeholders, one that is not riven by racial and religious schisms, needs to be explored.

    Viability of Indian model

    • The Indian model of democracy and secularism, which accommodates religious, ethnic, linguistic and other diversities, could be a viable model for the peaceful coexistence of formerly antagonistic groups.
    •  India evolved a unique model of accommodating the victors and the vanquished, without ever resorting to the latter’s decimation.
    • A modus vivendi has to evolve on the basis of hard realities, the first of which is that neither the Jews nor the Palestinians are going to vanish.
    • If the two-state solution is nowhere in the offing, a single state after the Indian model, i.e., a secular, democratic and pluralistic state, may be the only feasible option.
    • The Palestinian refugees have a right to return.
    • That the altered demographics would impinge on the religio-racial character of Israel is not an argument which behoves a modern democratic state.
    • It is true that a nation state belongs to the group which constituted itself into a nation.
    • A nation is an imagined community.
    • As imagination expands, the foundations of the nation become deeper.

    Consider the question “In the absence of two-state solution to the Israel-Palestine conflict, what lessons India could offer to the two parties for peaceful coexistence?”

    Conclusion

    Israel might not offer the right model of conflict resolution for India, but India presents a model of peaceful coexistence for Israel.

  • Foreign Policy Watch: India-Pakistan

    How Pakistan Plays the world

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: SEATO and SENTO

    Mains level: Paper 2- India-Pak relations

    The article explains evolution of Pakistan’s approach towards forming alliances and maintaining strategic autonomy against the backdrop of U.S. withdrawal from Afghanistan.

    New dynamic Pakistan has to face

    • As the US withdraws its troops from Afghanistan, Pakistan is eager to build a relationship with Washington that is not tied to US stakes in Afghanistan.
    • Pakistan does not want to be totally alienated from U.S. in the new geopolitical jousting between the US and China.
    • How Pakistan copes with the new dynamic between the US and China as well as manages the deepening crisis in Afghanistan would be of great interest to India.

    Striking the balance between autonomy and alliance

    • Autonomy is about the basic impulse for enhancing the degree of one’s freedom.
    • Alliances are about coping with real or perceived threats to one’s security.
    • Both are natural trends in international politics.
    • Joining an alliance does not mean ceding one’s sovereignty.
    • Within every alliance, there is a perennial tension between seeking more commitments from the partner in return for limiting one’s own.

    Explaining Pakistan’s approach to alliances

    • Pakistan’s insecurities in relation to India meant it was eager for alliances.
    •  And as the Anglo-Americans scouted for partners in the crusade against global communism, Pakistan signed a bilateral security treaty with the US and joined the South East Asia Treaty Organisation and Central Treaty Organisation in the mid-1950s.
    • Rather than target Pakistan’s alliance with a West that was intensely hostile to Beijing in the 1950s, Chinese premier Zhou Enlai saw room to exploit Pakistan’s insecurities on India.
    • While Pakistan’s ties with the US went up and down, its relationship with China has seen steady expansion.
    • Pakistan’s relations with the US flourished  after the Soviet Union sent its troops into Afghanistan at the end of 1979.
    • The US and Pakistan reconnected in 2001 as Washington sought physical access and intelligence support to sustain its intervention in Afghanistan following the attacks on September 11.
    • Now the US wants Pakistan to persuade the Taliban to accept a peaceful transition to a new political order in Afghanistan.

    Pakistan’s ability to adapt to shifting geopolitical trends

    • Pakistan worries that its leverage in U.S. will diminish once the US turns its back on Afghanistan and towards the Indo-Pacific.
    • Pakistan does not want to get in the Indo-Pacific crossfire between the US and China.
    • It would also like to dent India’s growing importance in America’s Indo-Pacific strategy.
    • India should not underestimate Pakistan’s agency in adapting to the shifting global currents.
    • Pakistan has been good at using its great power alliances to its own benefit.

    Three problems that complicates Pakistan’s strategic autonomy

    • 1) Relative economic decline: Pakistan’s expected aggregate GDP at around $300 billion in 2021 is 10 times smaller than India’s.
    • 2) Obsession with Kashmir: Pakistan’s enduring obsessions with separating Kashmir from India, and extending its political sway over Afghanistan; both look elusive despite massive political investments by the Pakistan army.
    • Unsurprisingly, there is a recognition that Pakistan needs reorientation — from geopolitics to geoeconomics and permanent war with neighbours to peace of some sorts.
    • 3) Using religion as political instrument: Turning Islam into a political instrument and empowering religious extremism seemed clever a few decades ago.
    • However, today those forces have acquired a life of their own and severely constrain the capacity of the Pakistani state to build internal coherence and widen international options.

    Conclusion

    It will be unwise to rule out Pakistan’s positive reinvention; no country has a bigger stake in it than India. For now, though, Pakistan offers a cautionary tale on the dangers of squandering a nation’s strategic advantages — including a critical geopolitical location that it had inherited and the powerful partnerships that came its way.

  • Social Media: Prospect and Challenges

    New IT Rules is not the way forward

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: IT Act 2000

    Mains level: Paper 3- Issues involved in traceability of originator of information on social media

    The article deals with the issues involved in the traceability requirement of the originator of information on social media platform as per new IT Rules.

    Traceability clause and issues involved

    • Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 imposes certain obligation on significant social media intermediaries.
    • Rule 4(2) puts an obligations to ensure traceability of the originator of information on their platforms.
    • Consequently, WhatsApp has filed a petition in the Delhi High Court.
    • WhatsApp contends that the mandate for traceability violates the privacy rights of Indian citizens, by rendering WhatsApp unable to provide encrypted services.

    Government’s response

    • The Government primarily relies on the argument that: privacy is not an absolute right, and that the traceability obligation is proportionate, and sufficiently restricted.
    • Notably, the new Rules mandate traceability only in the case of significant social media intermediaries i.e. those that meet a user threshold of 50 lakh users, which WhatsApp does.
    • Traceability is also subject to an order being passed by a court or government agency and only in the absence of any alternatives.
    • While it is indeed true that privacy is not an absolute right, the Supreme Court of India in the two K.S. Puttaswamy decisions of 2017 and 2018 has laid conditions for restricting this right.
    • In Puttaswamy cases, the Supreme Court clarified that any restriction on this right must be necessary, proportionate and include safeguards against abuse.

    Issues with traceability

    • Not proportionate: A general obligation to enable traceability as a systemic feature across certain types of digital services is neither suitable nor proportionate.
    • No safeguard against abuse: The Rules lack effective safeguards in that they fail to provide any system of independent oversight over tracing requests made by the executive.
    • This allows government agencies the ability to seek any messaging user’s identity, virtually at will.
    • Presumption of criminality:  Weakening encryption — which a traceability mandate would do — would compromise the privacy and security of all individuals at all times, despite no illegal activity on their part, and would create a presumption of criminality.

    Way forward

    • Explore the alternatives: The Government already has numerous alternative means of securing relevant information to investigate online offences including by accessing unencrypted data such as metadata, and other digital trails from intermediaries.
    • Already has ability to access encrypted data: The surveillance powers of the Government are in any case vast and overreaching, recognised even by the Justice B.N. Srikrishna Committee report of 2018.
    • Importantly, the Government already has the ability to access encrypted data under the IT Act.
    • Notably, Section 69(3) of the Information Technology Act and Rules 17 and 13 of the Information Technology Rules, 2009 require intermediaries to assist with decryption where they have the technical ability to do so, and where law enforcement has no alternatives.
    • Judicial scrutiny of Section 79 of IT Act: The ability of the government to issue obligations under the guise of “due diligence” requirements under Section 79 of the IT Act must be subject to judicial scrutiny.
    • Legislative changes needed: The long-term solution would be for legislative change along multiple avenues, including in the form of revising and reforming the now antiquated IT Act, 2000.

    Consider the question “What are the issues involved in the traceability of the originator of the information on social media platforms as mandated by the new IT Rules 2021? Suggest the way forward.”

    Conclusion

    While, undoubtedly, there are numerous problems in the digital ecosystem that are often exacerbated or indeed created by the way intermediaries function, ill-considered regulation of the sort represented by the new intermediary rules is not the way forward.

  • Government Budgets

    Resource crunch in states after Covid second wave

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Impact of second Covid wave on States' fiscal health

    The article gives the overview of the impact of second Covid wave on the fiscal health of the States.

    Impact of first Covid wave on fiscal health of states

    • The analysis of the fiscal data for all states with the exception of Goa, Manipur, Meghalaya and Sikkim reveal a grim picture.
    • The aggregate revenue deficit for 24 state governments soared to Rs 4 trillion as per the revised estimates (RE) for 2020-21, up from a modest budgeted amount of Rs 353 billion.
    • And, despite a 16 per cent cut in capital spending, the fiscal deficit of these states deteriorated to Rs 8.7 trillion in 2020-21 (RE), up from the budgeted estimate of Rs 6.0 trillion.

    How states had projected ambitious decline in revenue deficit

    • The budgets for the ongoing fiscal year,  had projected an ambitious, decline in the aggregate revenue deficit to Rs 1.2 trillion, lower than the pre-Covid-19 level of Rs 1.3 trillion in 2019-20.
    • This has benefitted from the considerable expansion in their revenue receipts this year, forecasted at 24.7 per cent, compared to a moderate 12.4 per cent increase in their aggregate revenue expenditure.
    • This anticipated shrinking of the revenue deficit has allowed states to plan for a substantial expansion in their capital expenditure and net lending pegged at 34.1 per cent.
    • This anticipated shrinking also allowed the States to attempt a modest correction in their budgeted fiscal deficit, bringing it down to Rs 7.6 trillion in 2021-22 from Rs 8.7 trillion in 2020-21 (RE).

    Fiscal concerns over second Covid wave

    • The second wave of Covid-19 infections and its spread to rural areas has fanned fiscal concerns.
    •  The curtailed consumption of discretionary items and contact-intensive services will dampen the growth of states’ own tax revenues this year.
    • Moreover, lower mobility during the regional lockdowns will constrain tax revenues that states earn on fuels.
    • The data for the generation of GST e-way bills confirms that the staggered imposition of the localised lockdowns has had an adverse impact on economic activity since April.
    • This will result in a sequential slowdown in GST collections that will be reported in the subsequent two months.
    • Nevertheless, the GST collections is likely to nearly double to Rs 1.7 trillion in the first quarter of this year, up from Rs 0.9 trillion over the same period last year, boosted by the record-high collections in April,
    • That reflected healthy economic activity in March.

    The shortfall and way forward

    •  States’ own tax collections is estimated to trail their budget estimates as they were drawn up before the second wave.
    • For this year,  state GST collections would be at Rs 6.1 trillion, falling below their projected revenues of Rs 8.7 trillion.
    • This indicates a GST compensation requirement of Rs 2.65 trillion — only 38 per cent of which may be met through the expected GST compensation cess collections.
    • Following the meeting of the GST Council, the Finance Minister has indicated that a back-to-back loan of Rs 1.58 trillion will be provided to the states.
    • If the tranches of this loan start flowing to the states soon, it will alleviate their anticipated revenue crunch over the next two months.
    • Already, there has been a sharp rise in the size of the upcoming State Development Loan auction to Rs. 19,550 crore, relative to the modest average size of around Rs. 7,400 crore seen so far in the first eight auctions held in FY2022.

    Conclusion

    In any case, the capital spending budgeted by certain state governments this year appears to be optimistic. Moreover, localised restrictions imposed during the last two months are expected to have constrained activity.