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

Civilsdaily

Login

Type: op-ed snap

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

    How to pay for the stimulus package

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Debt financing versus money financing

    The article addresses the issue of apprehensions over money financing. It also compares the option of borrowing from international institutions.

    Issues with public spending

    • Greater public spending will increase the fiscal deficit and this expansion has to be financed.
    • Theoretically, it can be financed by higher taxes.
    • But when the economy is in a recession, this option cannot be explored even though the balanced-budget multiplier is one.
    • When the multiplier is one, output expands by exactly the same amount as the increase in government spending.

    So, what are the options?

    There are two options

    1) Issuing debt to the public (Debt financing)

    2) Borrowing from the RBI (Money financing)

    Borrowing from World Bank and IMF?

    This borrowing has 4 issues with it-

    • 1) This borrowing will have to be paid back in hard currency.
    • This would involve India having to earn hard currency by stepping up exports.
    • If a stimulus of approximately 10% of the GDP is envisaged, with exports at 25% of the GDP, it would imply stepping up exports by close to 50%.
    • This would be a herculean task under present circumstances.
    • 2) There is the issue of conditionalities.
    •  It is not obvious what conditionalities will come along with the loan.
    • 3) The loan is bound to take some time to be negotiated, taxing the energies of a government that ought to be engaged in the day to day battle with COVID-19.
    • 4) The external debt is truly national which, arguably, government bonds held by the country’s private sector are not.

    Issues with money financing

    • The standard economic argument against money financing is that it is inflationary.
    • However, whether a fiscal expansion is inflationary or not is related more to the state of the economy than the medium of its financing.
    • When resources are unemployed, output may be expected to expand without inflation.

    Consider the question “Examine the issues with the money financing of the fiscal deficit.”

    Conclusion

    There is no reasoned case for denying ourselves the option of money financing to take us back to pre-COVID-19 levels of output and employment.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

    Draft Defence Production and Export Promotion Policy 2020

    op-ed snap | Security Issues | Mains Paper 3: Indigenization Of Technology

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3-Self reliance in defence manufacturing.

    India is one of the largest importers of defence equipment. This should have naturally made India a manufacturing hub of the defence equipment. But this is not the case. This article deals with this issue. 

    Context

    Following China’s stance of open belligerence towards India, making war preparedness a top priority. It is against this backdrop, the Defence Production and Export Promotion Policy 2020 was unveiled.

    Key features

    • It aims for domestic output worth ₹1.75 trillion of aerospace and defence goods and services by 2025.
    • Of which exports is aimed at ₹35,000 crore.
    • It has various strategic initiatives that would aid the indigenous development of modern weaponry from hypersonic missiles and ace sensors to stealth submarines and fly-by-wire fighter jets.

    Why India lacks indigenous capacity

    • If India’s dependence on foreign suppliers of armaments was not for lack of trying.
    • Our Defence Research and Development Organisation (DRDO) exists for this very purpose.
    • DRDO scientists claim success in several projects, including the Tejas design.
    • But decisions on procurements for our armed forces are made through a complex process—involving service chiefs, technocrats and politicians—that ends up favouring foreign purchases.
    • This is this convenient, as off-the-shelf wares are readily available abroad.
    • The finer details of defence deals are usually confidential, after all, and the payments huge.
    • By one estimate, India was the world’s third largest military spender in 2019, with a bill of over $71 billion, after the US and China.

    Issues and Challenges in partnership with private players

    • So far, efforts to get our private sector into the act have not fared too well, despite all our schemes to attract them.
    • Long-drawn out acquisition processes may partly be to blame for this.
    • Companies are apprehensive of investment without an assurance of a ready market.
    • But by the time their prototypes are tested and approved for induction by our forces, they risk being outmoded by advances made abroad.
    • In the US, spin-offs from defence research have been behind many technological innovations of everyday utility.
    • So, the knowledge acquired in defence research has the potential to benefit the other sectors as well.

    Consider the question “Being one of the top importers of defence equipment India is well placed to enhance its domestic manufacturing capacity of defence equipment. Yet, India lacks it after repeated attempts to achieve it. Examine the reasons for this and suggest measures to overcome this anomaly.” 

    Conclusion

    If a big push for “made in India” defence systems calls an entire ecosystem of experiments, ideas and technical wizardry into being, it could help our economy leap ahead too.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Railway Reforms

    Reforms driven agenda for the modernisation of railways

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Adoption of PPP model by the Indian Railways and related issues

    Adoption of the PPP model by the Indian Railways will help it get rid of the many issues it suffers from. This article analyses the two initiative by the railways in this regard and spells out their advantages and challenges.

    Significance of railways

    • Its route spans about 68000 km.
    • It employs over 1.2 mn people and generates approximately Rs 2 lakh cr annually.
    • So, a major contributor to jobs, GDP, and mobility.
    • Efficient and optimal use of the railways could further add up to 1% to GDP.

    Adopting PPP model

    • The time has come to modernise the Indian Railways, make it world-class, and a key driver of the country’s growth.
    • To do so, India must involve the best resources via PPP to bring in the latest technology, leading practices, and efficiencies.
    • PPP has been actively deployed as a mechanism in Europe and Japan.

    Two initiatives of Indian Railways involving PPP model

    1. Operation of trains on selected route

    • Indian Railways’ proposal features a list of 109 pairs of routes through 151 trains to private operators.
    • Proposed routes include Delhi–Mumbai, Delhi–Chennai, Mumbai–Chennai, and others.
    • PPP operators are expected to finance, procure, operate, and maintain the allocated trains.
    •  The concession period will be for 35 years.

    Advantages

    • The initiative will bring in cutting-edge, technologically advanced rolling stock, shorter journey times, enhanced job growth, better safety, and best-in-class service standards.
    • It will bridge the demand-and-supply deficit for passengers.
    • The PPP investment is expected to be in the range of Rs 30,000 cr—in a Make in India–led growth strategy.
    • Encouraging domestic manufacturing of rolling stock, these projects will also create direct and indirect employment.

    2. Redevelopment of railway stations

    • Initially, 50 stations will be bid out and funded through land monetisation as well as user charges.
    • The modernisation and redevelopment of stations will be conducted primarily through Indian Railway Stations Development Corporation Limited, Rail Land Development Authority and other central government entities.
    • The PPP basis is under the Design, Build, Finance, Operate and Transfer model.
    • It entails utilising the potential of real estate for excess land and air space in and around the stations for development through PPP.
    • The 50 big stations have been planned to be bid out through the PPP route aimed at bringing in investments exceeding Rs 50,000–60,000 crores.

    Challenges involved in the adoption of PPP model

    • One of the primary challenges will be independence of adjudication in disputes.
    • Other issues will be the pricing strategy to remain competitive yet stay profitable, given the competition through air, road, and to some extent, water transport.
    • An independent regulator could go a long way towards allaying concerns of equitable treatment of PPP operators and ought to be considered strongly.

    Consider the question “Examine the opportunities and challenges in the adoption PPP model by the Indian Railways.”

    Conclusion

    The introduction of PPP in Railways is a welcome step and can lead to the kind of reforms that can help transform India and make it a global leader.

    Source

    https://www.financialexpress.com/infrastructure/railways/reforms-driven-agenda-why-its-time-to-modernise-the-indian-railways-make-it-world-class/2044774/

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • J&K – The issues around the state

    Mythmaking and Article 370

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Issues around JK; Federalism in India

    The articles talk about various myths that have been building around the issues of Jammu and Kashmir. Not only does these myths affect the political outlook towards the state but is also responsible for people’s perspective on this whole story. Go on and read to understand further..

    The myths

    Kashmir has been a favourite site of our national mythmaking; myths that have over the years assumed larger-than-life manifestations in our collective psyche.

    #Myth1

    • Article 370 is considered as the root cause of terrorism in Jammu and Kashmir.
    • But there is a little material basis to it — neither Article 370 can be considered as responsible for terrorism in the Valley nor has its removal ensured a reduction in terrorism.

    #Myth2

    • Article 370 is also held responsible for ruining J&K, stalling its development, preventing proper health care and blocking industries. Once again, these arguments also lack merit and evidence.
    • J&K, as a matter of fact, has been doing much better than most other Indian States and one of the reasons for this was the land reforms carried out in the State in the early 1950s which was possible precisely because of the presence of Article 370.
    • Also, private investors do not set up shop in Kashmir due to militancy which is a product of an existing conflict; not because of Articles 370 or 35A.

    #Myth3

    • If J&K is doing better than the other Indian States, it is because of the massive amounts of funds provided by New Delhi.
    • The real argument here is not whether Kashmir received funding from New Delhi but massive funding as it is often made out to be.
    • Funds from the center can be divided as:
    • Funds to take care of J&K government’s revenue deficit: J&K, for historical reasons, has had a bloated bureaucracy in comparison to other States and their salaries and pensions have been financed by the central government. But these funds do little for the State’s economy or the general population.
    • Then there are routine transfers of funds from the Centre to J&K just as transfers take place from New Delhi to other States.
    • Finally, J&K also received funds due to its special category State status which again is a case with several other Indian States.
    • Put differently, J&K’s better performance in comparison to most other Indian States is at least partly because of Article 370, and its well-being is not necessarily a result of New Delhi’s economic packages.

    #Myth4

    • Development can defeat militancy and insurgency.
    • The reality is that development may not lead to the pacification of the conflict in Kashmir.
    • The Kashmir conflict is a function of complex historical grievances, politico-ethnic demands, increasing religious radicalisation, and Pakistan’s unrelenting interference in the Kashmir Valley.
    • It would be simplistic to imagine that such a multi-layered and complex conflict can be resolved by development alone.
    The deep impact of mythmaking
    • Changed the way how common people understand and treat Kashmir and Kashmiris.
    • Ideas like “Kashmir needs to be reunited with the rest of India” have become a powerful claim made by such representations and political articulations.
    • Yet another popular perception about ‘Kashmiris as troublemakers and sympathisers of terror’ has led to a noticeable increase in the mistreatment of Kashmiri Muslims in the rest of the country.
    Conclusion

    The way forward here is not in celebrating the scrapping of Article 370. It lies in critically examining various outcomes of this process. It is essential that New Delhi work the local people and leaders to reduce the trust and legitimacy deficit that we see today.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

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

    Understanding text and context of National Education Policy

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Issues in National Education Policy

    The article critically examines the various aspects of the National Education Policy 2020 and the issue of flexibility and exams has been analysed closely.

    Context of scepticism

    • The New Education Policy is a forward-looking framework for transforming Indian education.
    • But the past record on implementation of polity raises the concern that the New Education Policy should not turn out to be just “another document”.
    • Also, the emphasis in the document on critical thinking and free inquiry is entirely well placed.
    • But universities are being intimidated into political and cultural conformity.
    • The document lays down objectives; the strategy has yet to come.

    Walking the tightrope

    • On the language issue it prefers the long-standing recommendation of primary education in the mother tongue.
    • But does not categorically recommend curb English.
    • On the basic architecture of delivery, policy does not show an inclination towards public or private education both in school and higher education.

    School education: Most promising part

    • The policy focus on early child development, learning outcomes, different forms of assessment, holistic education, and,  recognises the centrality of teacher and teacher education.
    • The document recognises that “the very highest priority of the education system will be to achieve universal foundational numeracy and literacy.”
    • The suggestions for school education are ambitious, centred on the students, cater to their pedagogical diversity, and take on board the world of knowledge as it is now emerging.

    Multidisciplinary education

    • The document mentions the word multidisciplinary a bit too much, without explicating what it means.
    • One way of thinking about this is not in terms of multiple subjects.
    • It is reorienting education from disciplinary content to modes of inquiry that allow students to access a wide variety of disciplines.

    Two concerns

    1) Flexibility issue

    • Under the policy, students might need different exit options.
    • But it is unclear if the diploma or early exit options all be made available within a single institution, or different institutions.
    • If it is within single institutions, this will be a disaster.
    • Because structuring a curriculum for a classroom that has both one-year diploma and four-year degree students takes away from the identity of the institution.
    • There is also a risk that without adequate financial support, the exercising of exit options will be determined by the financial circumstances of the student.
    • The flexibility offered through multidisciplinary education is against the principle that different institutions have a different characters and strengths.
    • A healthy education system will comprise of a diversity of institutions, not a forced multi-disciplinarity.

    2) Issue of exams conundrum

    • The document rightly emphasises that focus needs to shift from exams to learning. But it contradicts itself.
    • Exams are burdon because of competition and cost in terms of opportunities.
    • So the answer to the exam conundrum lies in the structure of opportunity.
    • This will require a less unequal society both in terms of access to quality institutions.
    • Exams are also necessary because in a low trust system people want objective measures of commensuration.
    • So the policy reintroduces exams back into the picture by recommending a national aptitude test.
    • But the idea that this will reduce coaching is wishful thinking, as all the evidence from the US and China is showing.

    Consider the question “The National Education Policy 2020 moves away from rigidity and offers flexibility in many ways. In light of this examine the flexible dimensions offered in the policy and issues with it.”

    Conclusion

    The policy is commendable for focussing on the right questions. But the hope is that with this our education policy can be transformed into a treat, not another trick.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Urban Transformation – Smart Cities, AMRUT, etc.

    Issues metropolitan cities face

    op-ed snap | Governance | Mains Paper 2: Federalism,Governance, Transparency & Accountability, Citizens Charters

    Metropolitan cities of India suffers from various issues. This article analyses such issues and suggests some steps to deal with them.

    Inadequate public health infrastructure

    • India’s public health expenditure in 2018 was a mere 1.28% of GDP.
    • According to the World Bank, India’s out-of-pocket health expenditure was 62.4% in 2017, against the world average of 18.2%.
    • Manpower in the health sector is low with India’s doctor-population ratio being 1:1,457  against WHO norm of 1:1,000.

    Governance issues

    • Factors underlying city governance include spatial planning, municipal capacities, empowered mayors and councils and inter-agency coordination, and ward-level citizen participation.
    • Twenty-seven after the 74th Constitutional Amendment Act, these reform agendas continue to be slow in implementation.
    • India’s metropolitan cities have weak capacities in finance and staffing.
    • Bengaluru’s average percentage of own revenue to total expenditure is 47.9%, Chennai 30.5%, Mumbai 36.1% and Kolkata at 48.4%.
    • According to ASICS 2017, Mumbai has the highest number of officers per lakh population at 938 in the country.
    • Yet it is abysmally low compared to global cities such as Johannesburg with 2,922 and New York with 5,446 officers per lakh population

    Limited powers of mayors

    • The leaders steering India’s metropolitan cities are toothless.
    • No big metropolitan cities with 10 million-plus population has a directly-elected Mayor.
    • Mumbai’s Mayor has a tenure of 2.5 years, Delhi and Bengaluru, a mere one year.
    • Mayors do not have full decision-making authority over critical functions of planning, housing, water, environment, fire and emergency services in most cases.
    • Our metropolitan cities are far from being local self-governments.
    • Parastatal agencies for planning, water and public transport report directly to State governments.
    • The State government also largely controls public works and police.
    • Globally, metropolitan cities are steered by a directly-elected leader.
    • Evolved examples include the Tokyo metropolitan government and recent experimental models such as combined authorities in the United Kingdom and Australia.

    Suggestions

    • India needs home-grown solutions suited to its context and political realities while imbibing lessons on institutional design from global examples.
    • It is time the Central and State governments lead efforts towards a metropolitan governance paradigm.
    • The first steps should include empowered Mayors with five-year tenure, decentralised ward level governance, and inter-agency coordination anchored by the city government.

    Lack of transparency, accountability and citizen participation

    • Transparent cities with institutional platforms encouraging citizen participation improve urban democracy.
    • No metropolitan has functional ward committees and area sabhas.
    • An absence of citizen participation is worsened by poor transparency in finance and operations.
    • As per ASICS 2017, India’s big metropolitan cities on average score 3.04/10 in transparency, accountability and participation.

    Significance of smaller cities

    • A World Bank report notes that despite the emergence of smaller towns, the underlying character of India’s urbanisation is “metropolitan”.
    • Under this metropolitan character, new towns emerge around existing large cities.
    • According to a McKinsey report, in 2012, 54 metropolitan cities and their hinterlands accounted for 40% of India’s GDP.
    • The report also estimates that by 2025, 69 metropolitan cities, combined with their hinterlands, will generate over half of India’s incremental GDP between 2012 and 2025.
    • Despite this, India is yet to begin an active discourse on cohesive metropolitan governance frameworks.
    •  Studies by the Centre for Policy Research point that India’s spatial feature exhibits the growth of small towns beyond the economics of large agglomerations.
    • This indicates that while India’s urban vision should focus on its metropolitan cities to reap the benefit of scale, it shouldn’t ignore smaller cities.

    Consider the question “Examine the issues in the governance of metropolitan cities. To what extent the limited power of mayors contributes to the issues of the metropolitan cities in India?”

    Conclusion

    India should use the current pandemic as an opportunity to introspect and reform the way its metropolises are governed.

    Back2Basics: ASICS 2017

    • The Annual Survey of India’s City-Systems (ASICS) 2017 evaluates quality of governance in cities, covering 23 major cities in India across 20 states based on 89 questions.
    • Indian cities scored between 3.0 and 5.1 on 10, with Pune topping the charts for the first time.
    • Other cities that came in the top five include Kolkata, Thiruvananthapuram, Bhubaneswar and Surat, with scores in the range of 4.6 to 4.5.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

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

    Overview of National Education Policy

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Education Policy 2020

    Mains level: Paper 2- Proposals in Education Policy 2020

    The Education Policy 2020 comes with many changes in education in the country. Key aspects of the policy are discussed in the article.

    Context

    •  National Education Policy 2020 is the fourth major policy initiative in education since Independence.
    • The last one was undertaken a good 34 years ago and modified in 1992.
    • NEP 2020 seeks to address the entire gamut of education from preschool to doctoral studies.

    Challenges India faces in education

    • Lack of resources and capacity.
    • Dozens of mother tongues, a link language that despite being the global language of choice is alien to most.
    • A persistent mismatch between the knowledge and skills imparted and the jobs available.

    Follwing are the key aspects of the policy-

    1) 5+3+3+4 Model

    • A 5+3+3+4 model recognises the primacy of the formative years from ages 3 to 8 in shaping the child’s future.
    • It also recognises the importance of learning in the child’s mother tongue till at least Class 5.
    • As picking up languages is easy between ages 3 and 8, children will learn English and mother tongue together.
    • Multilingual felicity could become the USP of the educated Indian.
    • The policy envisages 100% Gross Enrolment Ratio (GER) in school education by 2030.

    2) Flexibility in choosing subjects and vocational education

    • Another key aspect of new policy is the breaking of the compartments of arts, commerce and science streams in high school.
    • Policy also aims at introducing vocational courses with internship.
    • The ‘blue-collarisation’ of vocations in our society is also a hurdle to be overcome.
    • NEP 2020 proposes a multi-disciplinary higher education framework with portable credits.
    • An ambitious GER of 50% in higher education is envisaged by 2035.
    • At the apex will be Multidisciplinary Education and Research Universities, where research will be supported by a new National Research Foundation.

    3) Question of regualtion

    • NEP 2020 aims to free our schools, colleges and universities from periodic “inspections” and place them on the path of self-assessment and voluntary declaration.
    • Transparency, maintaining quality standards and a favourable public perception will become a goal for the institutions.
    • This will lead to all-round improvement in their standard.
    • A single, lean body with four verticals for standards-setting, funding, accreditation and regulation is proposed to provide “light but tight” oversight.

    4) Addressing deprivation

    • Inequality and challenges faced by the disadvantaged and disabled have been considered in NEP.
    • The NEP lays particular emphasis on providing adequate support to ensure that no child is deprived of education, and every challenged child is provided the special support she needs.

    5) Ancient knowledge

    • The long-neglected ancient Indian languages and Indic knowledge systems are also identified for immediate attention.

    Resource challenge

    •  An ambitious target of public spending on education at 6% of GDP has been set.
    • This is certainly a tall order, given the current tax-to-GDP ratio and competing claims on the national exchequer by other key sectors.
    •  If public and political will can be mustered, resources will find their way from both public and private sources.

    Consider the question “What are the measures proposed in the Education Policy 2020 for higher education.”

    Conclusion

    Resources are never the main roadblock to success in education. NEP 2020 provides the ingredients and the right recipe. What we make of it depends entirely on us.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Banking Sector Reforms

    Will capping the bank CEO tenure make difference

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Bank CEO tenure and appointement

    Mains level: Paper 3- Governance of the banks

    The article examines the utility of the proposed limit on the banks CEO tenure.

    Context

    • Last month, the Reserve Bank of India released a discussion paper on governance in commercial banks in India.
    • It has a proposal to cap the tenure of bank CEOs.

    Details of the proposed limit and rationale

    • The paper proposes to cap the maximum tenure of a promoter/major shareholder of a bank as a CEO or a Whole Time Director (WTD) at 10 years.
    • This move aims to separate ownership from management.
    • The rationale offered is that 10 years is an adequate period for a promoter/major shareholder of a bank as CEO/WTD to stabilise its operations and to transition the managerial leadership to professional management.
    • The corresponding limit for a CEO who is not a promoter/major shareholder is 15 consecutive years. T
    • Thereafter, that individual is eligible for re-appointment as CEO or WTD only after the expiration of three years.

    Why banks are different from other companies: 3 Reasons

    • Ordinary corporate governance norms exhort managers to run a company in the interest of shareholders but it may not be suitable approach for all types of banks.
    • 1) Banks are highly leveraged, creating powerful incentives for shareholders to engage in risky strategies at great risk to creditors, including retail depositors.
    • 2) Bank failure could involve systemic risk, which could result in a government bail-out.
    • This moral hazard creates even more high-powered incentives for shareholders to engage in risky strategies.
    • 3) Financial assets held by a bank are hard to monitor and measure.
    • Consequently, external scrutiny of a bank by depositors and creditors is difficult.
    • These unique factors are likely to encourage bank managers to take excessive risks to maximise shareholder value.

    Purpose of Bank governance

    • Bank governance seeks to curb such excessive risk-taking discussed above.
    • It encourages prudent risk-taking such that shareholders’ interests are secondary to depositors’ interests.
    • This is the main logic as suggested in the Basel Committee on Banking Supervision guidelines and the Financial Stability Board principles respectively.

    Will capping the CEO tenure help

    • It is unclear whether imposing a maximum cap on CEO tenure would encourage prudent risk-taking by the management.
    • For Indian banks, the limited empirical evidence seems to suggest that bank performance improves with increasing CEO tenure.
    • A paper published in International Journal of Financial Studies finds that an increase in CEO tenure is associated with significant improvements in asset quality and performance of the bank.
    • The effect of CEO tenure increases rapidly with the year of CEO tenure.
    • Concerning public sector banks (PSBs), the P J Nayak Committee report had identified shorter tenure of chairmen and executive directors as a key reason for weaker empowerment of their boards.
    • These findings seem to be at odds with RBI’s suggestion to cap CEO tenure.

    Consider the question “Examine the factors that justify the application of stricter governance principle for the banks. What would be the impacts of the RBI’s proposed limit on the CEO term of the banks on governance?

    Conclusion

    It may be prudent for the RBI to publish an empirical study on the impact of CEO tenure on bank performance before translating this proposal into an enforceable regulation.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Foreign Policy Watch: India-China

    Russia-India-China: A triangle that is still relevant

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: SCO

    Mains level: Paper 2-India's relations with Russia and China

    RIC engagement started on the promising note but the geopolitical changes over the last two decades have set the three countries on diverging paths. It is against this backdrop, the article articulates why RIC is still relevant.

    Background of RIC

    • The RIC dialogue commenced in the early 2000s.
    • At that time the three countries were positioning themselves for a transition from a unipolar to a multipolar world order.
    •  It was not an anti-U.S. construct though.
    • The initial years of the RIC dialogue coincided with an upswing in India’s relations with Russia and China.
    • The 2003 decision to bring a political approach to India-China boundary dispute and to develop other cooperation, encouraged a multi-sectoral surge in relations.
    • An agreement in 2005, identifying political parameters applicable in an eventual border settlement, implicitly recognised India’s interests in Arunachal Pradesh.

    Growing India-U.S. relations

    • During the same period in which RIC dialogues took place, India’s relations with the U.S. surged.
    • This involved trade and investment, a landmark civil nuclear deal and a burgeoning defence relationship.
    • This rising relations with the U.S. met India’s objective of diversifying military acquisitions away from a near-total dependence on Russia.
    • The U.S. saw value in partnering with a democratic India in Asia as China was rapidly emerging as a challenger.

    How India-U.S. relations affected RIC

    • China went back on the 2005 agreement.
    • It launched the China-Pakistan Economic Corridor and worked to undermine India’s influence in its neighbourhood.
    • And expanded its military and economic presence in the Indian Ocean.
    • As U.S.-Russia relations imploded in 2014 after the annexation/accession of Crimea.
    • Russia’s pushback against the U.S. included cultivating the Taliban in Afghanistan and enlisting Pakistan’s support for it.
    • The western campaign to isolate Russia drove it into a much closer embrace of China.

    Thus, the RIC claim of overlapping or similar approaches to key international issues, sounds hollow today. But it is still holds significance.

    Why RIC is still significant for India

    1) SCO

    • Central Asia is strategically located, bordering our turbulent neighbourhood.
    •  Pakistan’s membership of SCO and the potential admission of Iran and Afghanistan heighten the significance of the SCO for India.
    • It is important for India to shape the Russia-China dynamics in this region, to the extent possible.
    • The Central Asian countries have signalled they would welcome such a dilution of the Russia-China duopoly.
    • The ongoing India-Iran-Russia is an important initiative for achieving an effective Indian presence in Central Asia, alongside Russia and China.

    2) Significant bilateral relations

    • India’s defence and energy pillars of partnership with Russia remain strong.
    • Access to Russia’s abundant natural resources can enhance our materials security.
    • With China too, while the recent developments should accelerate our efforts to bridge the bilateral asymmetries, disengagement is not an option.

    3) The Indo-Pacific issue

    • For India, it is a geographic space of economic and security importance, in which a cooperative order should prevent the dominance of any external power.
    • China sees our Indo-Pacific initiatives as part of a U.S.-led policy of containing China.
    • Russia’s Foreign Ministry sees the Indo-Pacific as an American ploy to draw India and Japan into a military alliance against China and Russia.
    • India should focus on economic links with the Russian Far East and the activation of a Chennai-Vladivostok maritime corridor.
    • This may help persuade Russia that its interests in the Pacific are compatible with our interest in diluting Chinese dominance in the Indo-Pacific.

    4) Strategic autonomy of India

    • The current India-China stand-off has intensified calls for India to fast-track partnership with the U.S.
    • National security cannot be fully outsourced.
    • India’s quest for autonomy of action is based on its geographical realities, historical legacies and global ambitions.

    Consider the question “The changing geopolitical landscape should not dampen the importance of India’s engagement in the RIC (Russia-India-China) triangle. Comment.” 

    Conclusion

    India should continue its engagement in the RIC while keeping and protecting its interests.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Important Judgements In News

    The issue of powers of Speaker and Court

    op-ed snap | Polity | Mains Paper 2: Executive & Judiciary

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: 10th Schedule

    Mains level: Paper 2- Power of the Speaker/Chairman, Kohito Hollohan case

    The article examines the larger issue of powers of the Speaker under 10th Schedule and the current interim order of the Rajasthan High Court.

    Context

    • The Rajasthan High Court had admitted the petition by the Congress faction group challenging the notice of the Speaker.
    • In the interim order, the High Court had ordered to maintain the status quo.

    Why Kihoto Hollohan Case matters

    • The Kihoto Hollohan decision of the Supreme Court delivered in 1992 forms the basis in such decisions.
    • The Constitution Bench which heard it was split 3:2.
    • The majority on the bench upheld the constitutionality of the Tenth Schedule of the Constitution.
    • The High Court is not empowered to unsettle Kihota Hollohan and must apply its ratio that the Chairman/Speaker is the final arbiter on the disqualification of a member.
    • Rajasthan High Court has raised the issue about whether disqualification under Tenth Schedule is applicable in the case of “intra-party dissent”.
    • Para 2(1) a of 10th Schedule deals with disqualification of a member of a House belonging to any party “if he has voluntarily given up his membership of such political party”.

    Let’s look at what the Supreme Court said  in Kihoto Hollohan case:

    “paragraph 2 of the Tenth Schedule of the Constitution is valid. Its provisions do not suffer from the vice of subverting democratic rights of elected members of Parliament and the legislatures of the States. It does not violate their freedom of speech, freedom of vote and conscience as contended”.

    Consider the question “Examine the issue of powers of Speaker/Chairman in the matters of disqualification of the member against the powers of the Courts in such matters. What are the reasons for frequent frictions between the two authorities on this matter?”

    Conclusion

    The high courts and the Supreme Court routinely refuse to interfere in matters where the concerned authority has merely issued a show-cause notice or granted an opportunity of being heard. So, it must fix the issue raised by the Rajasthan High Court interim order.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now