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Type: op-ed snap

  • The future of Indian secularism

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Challenges to secularism in India

    Secularism in India faces multiple challenges. This article analyses challenge the Indian secularims faces from the party-political secularims.

    Features of constitutional secularism in India

    • Constitutional secularism is marked by at least two features.
    • First, critical respect for all religions.
    • Unlike some secularisms, ours is not blindly anti-religious but respects religion.
    • It respects not one but all religions.
    • Every aspect of religious doctrine or practice cannot be respected but respect for religion must be accompanied by critique.
    • Second, intervene whenever religious groups promote communal disharmony.
    • Thus, it has to constantly decide when to engage or disengage, help or hinder religion depending entirely on which of these enhances our constitutional commitment to freedom, equality and fraternity.

    How populism is harming secularism

    • Secularism has paid a heavy price in our country for being at the centre of public and political discourse.
    • Populism based politics is indifferent to freedom and equality-based religious reform, it has removed critical from the term ‘critical respect’.
    • It has even been complicit in igniting communal violence.
    • This party-political ‘secular’ state, cozying up alternately to the fanatical fringe of the minority and the majority, was readymade for takeover by a majoritarian party.
    • This takeover was accomplished by removing the word ‘all’ and replacing it by ‘majority’.
    • Today, Indian constitutional secularism is swallowed up by this party-political secularism, with not a little help from the Opposition, media and judiciary.

    Way forward

    • 1) There is a need for a shift of focus from a politically-led project to a socially-driven movement for justice.
    • 2) Also, a shift of emphasis from inter-religious to intra-religious issues.
    • Such focus on intra-relisious issues may allow deeper introspection within, multiple dissenting voices to resurface, create conditions to root out intra-religious injustices, and make its members free and equal.
    • 3) Europe’s secularism provided a principle to fight intra-religious oppressions. 
    • In India, secularism was not only a project of civic friendship among religious communities but also of opposition to religion-based caste and gender oppressions.
    • A collective push from young men and women  may help strengthen the social struggle of emancipation from intra-religious injustices.
    • 4) Inter-religious issues also should not be ignored.
    • Distance, freedom from mutual obsession, give communities breathing space.
    • Each can now explore resources within to construct new ways of living together.

    Consider the question “How populism in the politics thretens the idea of secularim in India? Suggest the ways to deal with it.”

    Conclusion

    Needed today are new forms of socio-religious reciprocity, crucial for the business of everyday life and novel ways of reducing the political alienation of citizens, a democratic deficit whose ramifications go beyond the ambit of secularism.

  • Foreign Policy Watch: India-United States

    A new direction for India-U.S. ties

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- India-U.S. ties

    This article analyses what the new shift in the India-U.S. ties will require for the mutual benefit.

    Following 12 factors would influence the depth and longevity of the India-U.S. ties.

    1) Outcome of the  U.S. Presidential elections

    • The success of India’s new bonding with the U.S. will depend on the outcome of the U.S. Presidential elections.
    • The Democratic party candidate with the Left wing and liberals in the U.S. has been highly critical of the Citizenship (Amendment) Act.

    2) Need to build trust with the U.S.

    • India purchased of the S-400 air defence missile system from Russia disregarding the U.S. concerns.
    • India refused to send Indian troops to Afghanistan.
    • We need to build trust with the U.S. that we will give to the U.S. as good as it gives us.
    • For this structuring we must realise that India-U.S. relations require give and take on both sides.
    • What India needs to take today is for dealing with the Ladakh confrontation with China.
    • India needs U.S. hardware military equipment.

    3)  Fighting the U.S. enemy in neighbourhood

    • The U.S. needs India to fight her enemies in the neighbourhood such as in Afghanistan.
    • India should send two divisions gradually to Afghanistan and relieve U.S. troops to go home

    4) Intelligence sharing and cooperation

    • India needs the support of the U.S. and its ally, Israel, in cyberwarfare, satellite mappings of China and Pakistan.
    • There is a need for sharing intercepts of electronic communication, hard intelligence on terrorists, and controlling the military and the Inter-Services Intelligence in Pakistan.

    5) Developing naval bases

    • India needs the U.S. to completely develop the Andaman & Nicobar, and also the Lakshadweep Islands as a naval and air force base.
    • These naval bases can be used by the U.S  and shared along with its allies such as Indonesia and Japan.

    6) Economic relations and India’s concerns

    • The economic relations must be based on macroeconomic commercial principles.
    • Free, indiscriminate flow of U.S. foreign direct investment (FDI) is not in India’s national interest.

    7) Technology sharing

    • India needs technologies such as thorium utilisation, desalination of sea water, and hydrogen fuel cells.

    8) U.S. should allow import of agricultural product

    • The U.S. must allow India’s exports of agricultural products including Bos indicus milk, which are of highly competitive prices in the world.

    9) FDI in India

    • FDI should be allowed into India selectively from abroad, including from the U.S.
    • FDI in India should be based on the economic theory of comparative advantage and not on subsidies and gratis.

    10) Tariffs

    • Tariffs of both India and the U.S. should be lowered, and the Indian rupee should be gradually revalued to ₹35 to a dollar.
    • Later, with the economy picking up, the rupee rate should go below 10 to the dollar.

    11) Stay away from certain issues

    •  India should not provide the U.S. with our troops to enter Tibet, or be involved in the Hong Kong and Taiwan issue.
    • There is always a possibility of a leadership change in China.
    • Thus, China’s policy changed very favourably towards India.
    • In the cases of Tibet, Taiwan, and Hong Kong, we have made explicit agreements.
    • In the case of Tibet, two formal treaties were signed by Nehru (1954) and A.B. Vajpayee (2003).

    12) Trilateral commitment to world peace

    • In the long run, India, the U.S., and China should form a trilateral commitment for world peace provided Chinese current international policies undergo a healthy change.

    Consider the question “What are the factors influencing the India-U.S. ties? Suggest the pathway to address the issues that hamper the deepening of India-U.S. ties.”

    Conclusion

    Both countries need to recognise each other’s concern and work towards the deepening of the ties for the mutual benefit and with a view to dealing with the challenges confronting both the countries.

  • Foreign Policy Watch: India-China

    What India should consider about the proposition to isolate China

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- India-China relations

    The economic grip China exerts on the world protects it from the threat of isolation. This article examines this issue and its implications for India.

    Worsening U.S.-China ties and implications for other countries

    • After years of cooperating with one another, the U.S. and China are currently at the stage of confrontation.
    • Both are seeking allies to join their camps.
    • This places several countries in Asia, in a difficult position as most of them, loathe to take sides.
    • The U.S. may not necessarily be the first choice for many countries of Asia and the Asia-Pacific region.
    • In the case of China, it is clearly more feared than loved.

    China’s aggression

    •  Beijing’s virtual takeover of Hong Kong has only confirmed what had long been known about China’s intentions.
    • In March-April this year, China further stepped up its aggressive actions, renaming almost 80 geographical features in the region as an index of Chinese sovereignty.
    •  Taiwan, Japan, Vietnam, Indonesia and South Korea have all complained about China’s menacing postures in their vicinity.

    How countries are resisting China

    • Hardly any country in Asia is willing to openly confront China, and side with the U.S.
    • East Asian countries explain that China was always known to be over-protective of the South China Sea.
    • And China consider South China Sea a natural shield against possible hostile intervention by outside forces inimical to it.
    • No U.S. assurance and Chinese aggression has been enough to make countries in the region openly side with the U.S. and against China.

    China’s economic grip and lessons for India

    • Despite a series of diktats from Washington to restrict economic and other relations, China remains unfazed.
    • China seems confident that its stranglehold on the global economy ensures that it does not face any real challenge.
    • It would be wise for India to recognise this.
    • It is equally necessary to realise how fickle some of these countries can be when it comes to economic issues.
    •  At a recent meeting in Washington Australia (a member of the Quad) made it clear that China is important for Australia.
    • Likewise, the U.K.’s Secretary of State for Foreign and Commonwealth Affairs, recently stated in its Parliament, that the U.K. wants a positive relationship with China.
    • It is evident that few nations across the world are willing to risk China’s ire because of strong economic ties.

    India’s relations with neighbouring countries: concerns

    • India’s relations with Nepal, meanwhile, have hit a roadblock over the Kalapani area.
    • In Sri Lanka, the return of the Rajapaksas to power after the recent elections does not augur too well for India-Sri Lanka relations.
    • The strain in India-Bangladesh relations is a real cause for concern since it can provide a beachhead against Chinese activities in the region.

    Growing Chinese presence in India’s sphere of influence

    •  In July, the Chinese Foreign Minister organised a virtual meeting of the Foreign Ministers of Nepal, Afghanistan and Pakistan.
    • In this meeting, China proposed economic corridor plan with Nepal, styled as the Trans-Himalayan Multi-Dimensional Connectivity Network.
    • China has also made headway in Iran to an extent, again at India’s expense.

    Conclusion

    Geo-balancing is not happening to China’s disadvantage. This lesson must be well understood when India plan its future strategy.

  • Tax Reforms

    Increasing dependence on indirect taxes and issues with it

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Direct and indirect taxes

    Mains level: Paper 3- Increasing proportion of indirect taxes in India and issues with it

    India, with a tax-GDP ratio of 10.9 per cent in 2019 needs an overhaul of its tax system. This article analyses India’s growing dependence on indirect taxes and its implications for the poor.

    Important changes in direct taxes

    • The wealth tax was abolished in 2016.
    • Wealth tax was replaced by a 2 per cent surcharge on super-rich individuals with taxable income of over Rs 10 crore.
    • But the government rolled back the increase in surcharge in 2019.
    • Corporate taxes were slashed from 30 per cent to 22 per cent to attract foreign investors and induce Indian companies to invest.
    •  Cuts in corporate tax that have resulted in a revenue loss of Rs 1.5 lakh crore have contributed to making the state poor.

    Increasing indirect taxes and cess

    • The share of indirect taxes has increased by up to 50 per cent of the gross tax revenue in FY2019 from 43 per cent in FY2011.
    • The combined share of customs and excise duties and value-added tax reached an all-time high of 10.5 per cent of GDP.
    • This high was following a three-year-long steady increase in customs or excise duty on commonly used goods, such as petroleum products, metals and sugar, automobiles and consumer durables.
    • This is also when the service tax was hiked steadily to 18 per cent under GST from 12.4 per cent in 2014.
    • Swachh Bharat cess and Krishi Kalyan cesses were imposed in addition to GST.
    • The permanent nature of these cesses has been widely opposed by the states and criticised by the CAG.
    • CAG has pointed out the lack of transparency and incomplete reporting in accounts on the utilisation of amounts collected under cesses.
    • All of this is troubling because indirect taxes often penalise the poor and the middle class more than the rich.

    Case for the wealth tax

    • High tax rates on the wealthy in Europe have played a key role in ensuring a strong social security net for the poor.
    • This successful example should encourage India to consider the rationale for a wealth tax.
    • Higher taxes on the super-rich could be used for cash transfers and a fiscal stimulus, that, in India, at 1 per cent of GDP each, have been negligible so far.
    • A wealth tax, a COVID-19 cess on the super-rich and a surcharge on the super-rich for their income from listed equity shares are critical for mitigating the current situation.

    Issues with such policy

    • Cuts in corporate taxes, increased indirect tax revenues, decreased capital expenditure and practically no change in revenue expenditure on health and education show that India’s taxation policy is more business-friendly than pro-poor.
    • This is happening at a time when a supply-side oriented approach to the economy is counter-cyclical.
    • Faced with increased expenditure amid pandemic Centre increased the duty on fuel by a record Rs 10 per litre on petrol when global crude prices have been falling.
    • This speaks of the government’s increased dependency on indirect tax-based revenues.

    Examine the implications of India’s growing dependence on indirect tax revenue? Suggest the measures to reduce such dependence.

    Conclusion

    COVID-19 may be a blessing in disguise if it allows India to reform its tax system in order to make it work towards inclusive growth and sustainable development rather than targeting only investment-led economic growth.

    bACK 2 BASICS
    GO THROUGH THE ARTICLE BELOW FOR MORE INFORMATION ON TAXATION:

    Taxation in India: Classification, Types, Direct tax, Indirect tax

  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    The new consumer

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Demand problem and ways to deal with it

    The focus of this article is on the behavioural changes in the consumer post Covid. It also suggest the ways to deal with these changes.

    Context

    • The consumer during and post-COVID is showing remarkable flexibility, bringing about a paradigm shift in her consumption pattern.

    Issue of generating demand

    • Some state governments are busy demanding the opening up of the economy.
    • However, the issue is that the economy does not merely need opening up, but it requires urgent generation of basic demand.
    • That is why consumer behaviour needs to be closely watched.
    • Since the lockdown, the priorities of consumers have seen a drastic shift.

    Factors to consider to increase demand

    • 1) The decrease in the purchasing power to buy products needs to be addressed.
    • The government must look at ways like a reduction in taxes which will help the common man.
    • 2) The current scenario has also made all of us go back to the basic needs.
    • Luxury products hold little value. But renting will increase.
    • 3) The emphasis will be on saving for a rainy day, whether in the case of banks or households
    • 4) Aviation, tourism and hospitality sectors have been hit and continue to remain so even after the restrictions are lifted.
    • 5)  e-commerce has shown exponential growth and will continue to do so.
    • 6) With “Vocal for Local” gaining momentum, there’s a huge increase in local apps, local kirana stores, local artisans and brands.
    • 7) Schools and colleges have taken a hit as e-learning and online courses are being preferred.
    • 8) The entertainment industry has been drastically hit. The media and entertainment industry needs to pay heed to this and curate content accordingly.
    • 9) With a lot of people laying emphasis on their health and immunity, there’s been a substantial rise in the consumption of organic, ayurvedic, and immunity-boosting products.
    • Apart from the obvious products, financial and medical insurance will play an important role.
    • 10) Real estate will suffer as no long-term, high investment purchases will be favoured, but renting will increase.

    Role of the government

    • 1) People need to be provided with their daily needs — basic essentials such as food, water, housing, and electricity.
    • The government is already taking care of that, but money also needs to be given.
    • 2) Jobs need to be provided through development of infrastructure projects.
    • 3) Farmers need to have insurance for their crops and the infrastructure to sell at the right price.
    • 4) Migrant workers with their livelihoods being disrupted are looking for support,and many are focusing on agriculture as a means of income.

    Way forward

    • The government should focus on generating demand for products, and create jobs by improving infrastructure.
    • The government must incentivise spending by offering tax benefits on the amount spent.
    • Government must forget about fiscal prudence this year.
    • Consumers in rural areas are buying more than before.Companies should focus on tapping the rural demand

    Consider the question “Demand has been the driver of India’s growth. But the pandemic has dampened it with devastating effect. Agaist this backdrop suggest the measures to be taken by the government to revive the demand.”

    Conclusion

    With focus on these emerging trends and changing behaviour of the consumers, the government must take steps to bring the economy fast on the tracks.

  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Importance of increasing the income of those at the bottom of income pyramid

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Marginal propensity to consume

    Mains level: Paper 3- Income level and demand problem

    India’s growth has been fuelled by demand which has dampened owing to various factors. One untapped source of demand could be the group which lies at the bottom of income pyramid. This article suggests the ways to increase the income of this group.

    Structural demand problem

    • India’s structural demand problem predates the COVID-19 shock.
    • This problem has been compounded after lockdown as jobs have been lost and incomes have collapsed.
    • Boosting domestic demand is critical for an economic revival as external demand is likely to remain muted.
    • It is argued that India’s growth story has been driven by demand generated by those who are at the top of India’s socio-economic pyramid
    • But the demand from that section has now plateaued.

    So, where the demand is going to come from?

    •  Turn to those at the bottom of the pyramid.
    • Those at the bottom of pyramid have a high marginal propensity to consume.
    • But realising the untapped demand potential of this group requires enhancing their incomes and earnings.

    Division of India’s workforce

    • Periodic Labour Force Survey (2018-19) tells us that less than 10 per cent of the workforce is engaged in regular formal jobs.
    • Another 14 per cent are engaged in regular informal jobs with average monthly earnings (Rs 9,500), which is roughly equivalent to or slightly below a minimum wage.
    • The self-employed and casual workers account for 50 per cent and 24 per cent of the workforce respectively and report average earnings that are considerably below a decent minimum amount.
    • Casual workers, who are unlikely to receive work on every day of the month, are at the bottom of the employment structure.

    How to increase the earning of those at the bottom of employment structure

    • Devising strategies that enhance productivity growth in the informal economy could increase their income.
    • Raising the minimum wages of the worst-off workers.
    • At present, under the Minimum Wage Act,  India has a complex set of minimum wages which offer different wages by occupation type and skill levels.
    • The Code on Wages (2019) seeks to universalise minimum wages and extend them to the unorganised sector.

    Way forward

    • 1) Ensuring a decent minimum wage for those who are the bottom of the distribution — the casual labour, would be helpful in this context.
    • This will help set a higher wage floor for others engaged in low-paid work, including regular informal workers.
    • 2) It is also important that minimum wages are paid in public workfare programmes too, in particular MGNREGA works.
    • At present, MGNREGA wages are not covered under the Minimum Wages Act.
    • 3) The minimum wage can be linked to the consumption expenditure of the relatively better-off group of workers.

    Consider the question “India’s growth story is scripted by demand which has been tapering off. The new source of demand could be those at the bottom of income structure. Suggest the strategies to increase the income of this group which could then translate into demand.”

    Conclusion

    The Indian employment challenge today cannot be seen independently of the problem of inadequate income. The above intervention will not only enable income enhancement of those in low-paid work but also add fuel to demand and growth, this time from those at the bottom of the distribution.

  • Digital India Initiatives

    Digital realities of India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Digital India and role of Google

    Context

    • Google has recently announced a decision to invest $10 billion in India.
    • To put that sum in context, it is over 10 times the money set aside for 100 smart cities and almost 20 times that for Digital India.
    • Purpose of that investment is stated to be digitising India.

    Digital realities of India Google must consider:

    1) Contradictions

    •  India recognises the internet as a human right, and yet, has led the world in internet shutdowns.
    • Its internet speeds can be slow and variable, but its uptake of smartphones is the world’s fastest.
    • It is second only to China in internet users, app downloads and social media users.

    2) Lack of access to internet

    • Only 21 per cent of women are mobile internet users, while the percentage for men is twice that number.
    • There are many societal factors that make it difficult for women and girls to enjoy full digital freedoms.
    • In rural India, where two-thirds of the country lives, just about a quarter of the population has internet access.
    • Differences in digital access mean differences in the quality of education.
    • The gaps are both digital and societal.

    3) Lack of access to banks

    •  India’s workforce is mostly informal.
    • Only 22 per cent of recipients of migrant remittances have access to banks within one km, according to a report by the Centre for Digital Financial Inclusion.
    • A push from Google and its competitors could make payments and financial access more inclusive.

    4) Need for special products for India

    • you mention new products for India’s unique needs, of which there are many.
    • Consider the needs in the agricultural sector alone.
    • Impac of predictive data analytics and basic artificial intelligence into Indian agriculture using readily available technologies would be huge.
    • Precision farming to improve the timing and quantity of seeding, irrigation and fertiliser usage.
    • Helping farmers get credit at lower costs and helping predict commodity prices can create $33 billion in new value annually in Indian agriculture.

    5) Lack of data governance and issues with it

    • Nandan Nilekani has said, India will be data rich before it is “economically rich”.
    • With 650 million internet users, there is a lot of data richness already.
    • But this data richness exists without a forward-looking and inclusive data governance policy.
    • The experience with Aarogya Setu, provided a perfect case study on the discomfort within India because of the absence of such governance.

    6) Prevalence of misinformation

    • It is essential to get a handle on the “infodemic” problem in India.
    • The situation was made far worse by the pandemic, where many of the prejudices, fears have converged.
    • Google-owned YouTube is a critical medium for spreading information, fact and fiction.
    • To its credit, YouTube removed over 8,20,000 videos in India in the first quarter of 2020.
    • This is a great start, but the bad guys will only find ways around it and Google must make deeper investments in both human and machine intelligence to stay ahead.

    7) Geopolitical context

    • India is inching closer to the US corner in the tech Cold War between the US and China.
    • India-China relationship has cooled this year as a fallout from the political tensions between New Delhi and Beijing.
    • India acted against Chinese ByteDance-owned video streaming app TikTok, along with 59 mobile apps.
    • Google’s role will be important as a bargaining chip against China and the partnership with Jio.
    • This important role may help Google get some domestic leverage with Indian regulators.

    8) Job creation

    • Digital technologies can create jobs.
    • For this to happen India must streamline the regulations to enhancing the country’s digital and physical foundations.
    • There is also need for developing more progressive data accessibility laws.
    • To translate into productive work, the government must invest in skill-building and education at all levels.

    Consider the question “Digitising India could accelerate its progress toward development but there are certain factors which must be addressed before India could reap benefits of digitising. Examine such factors and suggest the ways to deal with the issues in digitising the country.”

    Conclusion

    There is a lot Google can take while working on the task of digitising India. But the above-mentioned factors will help Google chart out its journey well.

    Original articles:

    https://indianexpress.com/article/opinion/columns/sundar-pichai-google-education-digital-india-6544793/

  • Banking Sector Reforms

    Balancing the interest of lenders and borrowers

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Problems of banks in India

    The article suggests the 5 point strategy to balance the interest of borrowers and lenders. Banks hold the special significance for the country and so require special and stricter regulation.

    Context

    •  COVID creates deep pain but we must resist consistently choosing borrowers over lenders.
    • We should persist with our multi-year five-pillar strategy to sustainably raise our Credit to GDP ratio from 50 per cent to 100 per cent.

    Issue of lending

    • A modern economy grows by lending.
    •  But fiscal constraints or natural disasters often create temptations to disguise spending as lending.
    • The last 20 years have given three lessons:
    • 1) Giving loans is easier than getting them back.
    • Corporate credit growing from Rs 18 lakh crore in 2008 to Rs 54 lakh crore in 2014 created a Rs 12 lakh crore bad loan problem.
    • 2) Accounting fudging and restructuring would not help.
    • 3) Government banks need more than capital.
    • Government banks’ risk-weighted assets are lower than two years ago despite a Rs 2 lakh crore capital infusion.

    History recommends patiently balancing financial inclusion and stability by persisting with our five-pillar strategy.

    1) Bank competition

    • Raising credit availability and lowering its price needs competition-driven innovation.
    • Capital should be chasing Indian banking given its high net interest margins, high market cap to book value ratios, and massive addressable market.
    • Yet, the RBI’s on-tap licencing has few applications pending.
    • We need many more banks.

    2) Private bank governance

    • Private banks are only 30 per cent of deposits but 80 per cent of bank market capitalisation.
    • Private banks are a special species with 20 times leverage, but this makes privatised gains and socialised losses possible.
    • Recent failures suggest problems with public shareholder collective action and the attention, skill, and courage of board directors.
    • Private bank governance must move from a perpetual private fiefdom to trustees that hand over in better condition to the next generation.

    3) Government bank governance

    • Over 10 years, government companies have sunk from 30 per cent of India’s market capitalisation to 6 per cent.
    • Government banks mirror this decline — their 70 per cent bank deposit share translates to only 20 per cent bank market capitalisation share.
    • Many have irrational employee costs to market capitalisation ratios ex- Bank of India with 58 per cent.
    • We need only four government banks with strong governance and no tax access for capital.

    4) RBI’s regulation and supervision

    • Recent failures in financial institutions reinforce the importance of statutory auditors, ethical conduct, shareholder self-interest, and risk management.
    • They also suggest a first-principles review that raises the RBI’s regulation and supervision.
    • Zero failure is impossible, but the RBI should boldly re-imagine its current mandate, structure and technology.

    5) Non-bank regulatory space

    • Regulatory differences traditionally existed between banks and non-banks.
    • But progress in payments, MSME lending, and consumer credit suggest that non-banks are as important for financial inclusion.
    • They need more regulatory space and supervision.

    Conclusion

    We won’t test the RBI’s COVID worst-case scenario of 14.7 per cent bad loans but handling the inevitable COVID bank pain needs resisting short-termism. In the long run, we are not all dead.

    Original article: https://indianexpress.com/article/opinion/columns/rbi-bank-and-the-covid-pain-india-gdp-6543101/

  • Innovation Ecosystem in India

    Importance of the post academic research

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much.

    Mains level: Issue of Research and Development in India

    Post-academic research have a direct bearing on national development. India needs to focus on it along with academic research. This article explains this issue.

    Context

    • The Government of India is in the process of revisiting the Science, Technology and Innovation (STI) Policy.
    • At this stage we need to ponder the question: what kind of research should be funded?

    How to measure the maturity level of a particular technology?

    • Experts have come up with frameworks and terminology to provide a comprehensive picture and avoid any value judgement.
    • One approach was proposed by NASA in the form of Technology Readiness Levels (TRL).
    • TRL-1 corresponds to observation of basic principles. Its result is publications.
    • TRL-2 corresponds to formulation of technology at the level of concepts.
    • Then the TRL framework advances to proof of concept, validation in a laboratory environment, followed by a relevant environment, and then to prototype demonstration, and ending with actual deployment.
    • An alternative is to use the terminology ‘Academic Research (AR)’, and ‘Post-Academic Research (PAR)’.
    • To provide some granularity, one can divide PAR into early-stage PAR, and late-stage PAR.
    • Late-stage PAR has to be done by large laboratories (national or those supported by industry).
    • AR and early-stage PAR can be done at higher education institutions and large laboratories.

    Importance of Post-Academic Research(PAR)

    • From the perspective of national development, pursuit of AR alone, while necessary, is not sufficient.
    • AR and PAR, when pursued together and taken to their logical conclusion, will result in a product or a process,
    • Or it can also result in a better clinical practice, or a scientifically robust understanding of human health and disease, or provide inputs for a policy decision.

    Issues in comparing investment in research among countries

    • 1) We cannot compare data with other countries without having correspondence between India’s data and data reported by others.
    • Countries belonging to the Organisation for Economic Cooperation and Development (OECD) report research statistics according to the Frascati Manual.
    • 2) India has to decide where to increase investment: in AR or in PAR.

    Research and national development

    • Investment in research can translate into national development only through pursuit of PAR.
    • Our industry has not reached a stage where they can absorb research being done by higher education institutions.
    • This reveals that research being pursued is either not addressing national needs or is limited to AR.

    Way forward

    • Judging the growth of Science-and-Technology based only on publications (e.g. research papers) provides an incomplete picture.
    • We should increasing the technology intensity of industry, which was identified as one of the goals of the STI policy issued in 2013.
    • This needs reiteration and a mechanism should be devised to monitor progress with the objective of becoming an ‘Atmanirbhar Bharat’.
    • The STI policy should emphasise PAR to ensure that investment in research results in economic growth.
    • To motivate the research community to pursue at least early-stage PAR, the reward system needs significant reorientation.
    • Academics in higher education institutions pursuing AR should pursue early-stage PAR themselves, or team up with those who are keen to pursue PAR.

    Consider the question “Examine the factors that responsible for the lack of research and development in India? Also, elaborate on the importance of post-academic research in the country.”

    Conclusion

    These factors are sufficient to indicate that academic research is necessary, but not sufficient and we must focus on PAR adequately.

  • Nuclear Diplomacy and Disarmament

    Issues with the nuclear deterrence

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Nuclear deterrence and issues with it

    On 6 August 1945 world witnessed the destructive potential of the nuclear weapons. Today’s nuclear weapons are several times more destructive than the one used there. This calls for the close scrutiny of the idea of the nuclear deterrence. This article dwells over the same issue.

    Context

    • While Hiroshima and Nagasaki have been the last two cities to be destroyed by nuclear weapons, we cannot be sure that they will be the last.
    • Since 1945, several countries have armed themselves with nuclear weapons that have much more destructive power in comparison to those that destroyed Hiroshima and Nagasaki.

    Vulnerability

    • Over 1,26,000 nuclear weapons have been built since the beginning of the atomic age.
    • There is no realistic way to protect ourselves against nuclear weapons.
    • The invention of ballistic missiles has made it impossible to intercept nuclear weapons once they are launched.
    • Neither fallout shelters nor ballistic missile defence systems have succeeded in negating this vulnerability.
    • Nuclear weapon states are targets of other nuclear-weapon states, but non-nuclear-weapon states are vulnerable as well.

    Idea of nuclear deterrence

    The idea of nuclear deterrence consists of following two proposition.

    • 1) That nuclear weapons are so destructive that no country would use them.
    • 2) Such use would invite retaliation in kind, and no political leader would be willing to risk the possible death of millions of their citizens.

    Issues with the idea of deterrence

    • 1) It is claimed that nuclear weapons do not just protect countries against use of nuclear weapons by others, but even prevent war and promote stability.
    • These claims do not hold up to evidence.
    • 2) The apparent efficacy of deterrence in some cases may have been due to the more credible prospect of retaliation with conventional weapons.
    • 3) Implicitly, however, all nuclear-weapon states have admitted to the possibility that deterrence could fail.
    • they have made plans for using nuclear weapons, in effect, preparing to fight nuclear war.
    • 4) The desire to believe in the perfect controllability and safety of nuclear weapons creates overconfidence, which is dangerous.
    • Overconfidence is more likely to lead to accidents and possibly to the use of nuclear weapons.

    So, what prevented the nuclear war if not deterrence?

    • While a comprehensive answer to this question will necessarily involve diverse and contingent factors, one essential element in key episodes is just plain luck.

    Consider the question “What are the problems involved in the idea of nuclear deterrence. Also, examine the factors responsible for the failure of nuclear disarmament.”

    Conclusion

    Humanity has luckily survived 75 years without experiencing nuclear war, can one expect luck to last indefinitely?

    Original articles:

    https://www.thehindu.com/opinion/op-ed/taking-nuclear-vulnerabilities-seriously/article32279584.ece