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Type: op-ed snap

  • Coronavirus – Economic Issues

    Comparing fiscal responses to Covid on qualitative and quantitative basis

    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- India fiscal response to Covid-19

    For all the talks over the size of Atmanirbhar package, India’s response turns out to be inadequate when compared with the other countries with similar levels of per capita income. This article analyses the same.

    Context

    • India’s fiscal response is compared to countries which are similar in GDP per capita, state capacity, and structure of the labour force.
    • Before the Atmanirbhar Bharat package, India lagged significantly behind comparable developing countries.
    • As of early July, the gap seems to have narrowed.

    Comparison and challenges

    •  Due to the blurring of the distinction between fiscal and monetary components, ensuring comparable and accurate figures for fiscal responses is a challenge.
    • For example, the total Atmanirbhar package is billed at 10% of GDP by the government.
    • While the headline number for India’s fiscal response in international databases is around 4% of GDP.
    • But some estimated that the new fiscal outlay is around 1.7% of GDP.
    • Vietnam, Indonesia, Pakistan, and Egypt, all while averaging less stringent measures than those in India, have announced stimulus measures that are as large or more substantial, as a share of GDP.

    Demand-side interventions in the package

    • The one significant demand-side intervention in the Atmanirbhar Bharat package was ₹40,000 crore of additional outlay for the MGNREGA.
    • Most other demand-side measures involve the frontloading, consolidation, or rerouting of existing funds.

    How developing countries are financing responses

    • Developing countries are resorting to drastic means to finance COVID-19 responses.
    • Actions so far include the amendment of legal budget limits.
    • Some are also exploring enhanced issuance of bonds-including a ‘pandemic bond’ by Indonesia.
    • Central banks in many emerging economies are experimenting with purchases of public and private bonds in the secondary market (quantitative easing).
    • Or some are directly purchasing government bonds on the primary market (monetising the deficit).
    • In India, the debate continues over whether the Indian government should invoke the “escape cause” in the FRBM Act.
    • Escape clause will enable the central bank to directly finance the deficit.

    Cash transfer: Lessons for India

    • Demand-side interventions announced by other developing countries could provide lessons for additional measures in India.
    • Of the World Bank’s list of 621 measures across 173 countries, half were cash-based. 
    • While only 2% related to public works, a clear indication of the popularity of cash transfers over public works for income support,
    • Countries have also significantly expanded coverage of their cash transfer programmes from pre-COVID-19 levels.
    • Bangladesh and Indonesia have increased the number of beneficiaries by 163% and 111%, respectively.
    • Indonesia’s cash schemes now cover more than 158 million people or 60% of the population.
    • Additionally, the Indonesia central government has directed village authorities to focus their budgets on a cash-for-work programme.

    Suggestions for India

    • India could take these actions about cash transfers into account in decisions about expanding existing transfer programmes or even creating new ones.
    • India has been a leader in employment guarantee policies with its flagship MGNREGA programme.
    • This is the right time to expand entitlements MGNREGA.
    • There is a need to introduce an urban version of the MGNREGA.
    • In India, one reason for the subdued fiscal response and the resort to monetary measures is a concern with the debt-to-GDP ratio.
    • However, aggregate demand and confidence in the economy have slumped and may not recover for many months.
    • Additional fiscal outlay -would save lives and jobs today and might prevent a protracted slowdown.

    Consider the question “How India fares in comparison with other countries over its fiscal response to Covid? Also examine the utility of income support schemes related to public works against the cash transfer schemes adopted by the other countries.”

    Conclusion

    Not spending more now, therefore, might only worsen the debt-to-GDP ratio if growth remains depressed. The fiscal outlay in the form of cash and in-kind transfers and expanded public works schemes is the need of the hour.

    Original op-ed:

    https://www.thehindu.com/opinion/op-ed/the-covid-19-fiscal-response-and-indias-standing/article32154153.ece

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

    APMC Act is not the main problem

    op-ed snap | Agriculture | Mains Paper 3: Transport & Marketing Of Agricultural Produce

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: APMC Act

    Mains level: Paper 3- Issues with the APMC Act

    The APMC Act, which is often blamed for the woes of the farmers is not the main problem. This article argues that the root of the problems of Indian agriculture lies somewhere else.

    Agriculture post-1991

    • The priority post-1991 has been given to industry as well as services.
    • Middle-class consumers have been favoured by at the expense of farmers.
    • This neglect of agriculture resulted in an equally unprecedented gap between the standard of living in the rural and urban parts of the country.
    • As a result, the urban/rural ratio, in terms of monthly per capita expenditures, has jumped from 1.84 to 2.42 between 2012 and 2018.
    • This means that an average urban-dweller today can consume almost 2.5 times more than an average person in a village.

    Reforms by the government

    • Government has decided to liberalise India’s agriculture by amending the APMC Act and the Essential Commodities Act.
    • Contract farming will also be introduced in such a way that the buyer can assure a price to the farmer at the time of sowing.

     APMC Act in the context of Shanta Kumar Committee report

    • The argument against the APMC Act is that it does not allow the free market to function due to government intervention.
    •  It denies farmers the opportunity to determine the prices of crops in the marketplace.
    • In theory, this is a valid argument.
    • But, Shanta Kumar Committee observed in 2015 that only 6 per cent of farmers get the Minimum Support Price (MSP).
    • This is because of barriers to access for farmers as only 22 crops are procured under MSP.
    • Infrastructure is also inadequate as there are only an estimated 7,000 APMC mandis across India.
    • Procurement depends on the stocks required by the state.

    Why the APMC Act is not the problem

    1) Farm Pricing is the problem

    • The living costs of farmers was considered while determining agricultural pricing by the Agricultural Prices Commission (APC).
    • CACP that replaced the APC in 1985 added a 10 per cent mark-up over the MSP to account for entrepreneurial costs.
    • Such practices have been gradually eroded post-1991.
    • The problem, therefore, is not state intervention but the way the government deals with agriculture.

    2) APMC Act helped India build up food stocks

    • India managed to weather the 2008 global food crisis only because it had enough food stocks as Indian agriculture was not linked to the international futures market.
    • This was possible due to the procurement done through the APMC Act.

    3) APMC Act reformed already by States

    • Since agriculture is a state subject, the Act has been modified in 17 states.
    •  On the contrary, the condition of peasants has often been affected when the APMC Act has been diluted.
    • Bihar is a case in point.
    • The APMC Act was revoked in 2006 with the same rationale that further deregulation will attract private investment in infrastructure.
    • Not only has that not materialised, but the existing APMC market infrastructure was also dismantled.

    Reforms that Indian Agriculture needs

    1) Subsidy Reforms

    • Indian Agriculture is still too heavily subsidised in favour of the big players.
    • In the Union Budget 2019-20, the allocation for the Ministry of Agriculture was Rs 1,30,485 crore and the fertiliser subsidy alone was estimated at Rs 79,996 crore.
    • But these subsidies are concentrated on a few crops.
    • Agriculture economist Bruno Dorin has shown, only three crops receive more than 60 per cent of the so-called “non-product-specific” support to agriculture — rice, wheat and sugarcane.
    • This has led to environmental degradation like the depletion of groundwater levels and monocultures which are a threat to biodiversity.
    • It has also led to the industrialisation of agriculture, that results in the strengthening of a handful of multinational companies, which supply chemical inputs.
    • Liberalisation would only strengthen the role of large companies — including those in the agri-food sector.

    2) Agriculture needs to be ecologically viable

    • Structurally, farming needs to be made economically and ecologically viable in India.
    • State intervention for better pricing, investments in water harvesting and an agroecological transition could ensure a more resilient system to weather shocks like the current one.
    • The government could draw inspiration from the Andhra Pradesh Community Managed Farming model.
    • It promotes agroecological principles with the use of locally-produced, ecologically-sustainable inputs focusing on soil health..
    • Since the agro-ecological system of farming is more biodiverse in nature, it will make the system more resilient overall.
    • It will provide a safety net for farmers in case of crop damage due to various factors such as climate change or droughts.

    Consider the question “Though the APMC Act has been blamed for the farmers’ issues, it has historically been part of the solution. Critically analyse.”

    Conclusion

    By investing again in agriculture and following, at last, the recommendations of the M S Swaminathan Committee, the Government of India would also help bridge the drastic urban-rural divide.

    To read more about the issue:

    Marketing of Agricultural Produce in India: Definition; Role; APMC Act, Model APMC Act, 2003

    Original article:

    https://indianexpress.com/article/opinion/columns/rural-india-coronavirus-farm-trade-ordinance-apmc-act-6515414/

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  • Foreign Policy Watch: India-Middle East

    Costs of neglecting new Arabian business

    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: Arab Countries

    Mains level: Paper 2- India-Arabian countries, balancing relations with Iran

    The article contrasts the over-emphasis put on the ties with Iran with the neglect of ties with Arab countries in India’s foreign policy. It explores the inherent difficulties in dealing with Iran. And opportunities for India in Arab countries.

    Context

    • Iran is accorded high priority in India’s foreign policy.
    • This stands in stark contrast to the under-appreciation of relationship with Arab countries.

    Reasons for a special relationship with Iran

    • Historical connections.
    • Civilisational bonds.
    • Energy supplies.
    • Regional security.
    • Geographic and demographic size, the geopolitical location next door.
    • Natural resources and the extraordinary talents of its people.

    Importance of Arab countries for India

    • Millions of Indian immigrants in the Arab nations.
    • Massive hard currency remittances from them, and the density of commercial engagement with the Arab Gulf is important for India.
    • The UAE and Saudi Arabia have, in recent years, extended invaluable support in countering terrorism and blocked attempts to condemn India in the Muslim world.

    Let’s analyse the issue of railway contract in Iran

    • Large countries with major foreign investments and projects win some and lose some.
    • Then there is no escaping the political risk associated with foreign projects.
    • And politics, both domestic and international, is all-consuming in Iran.
    • The sanctions regime imposed by the US has crippled the Iranian economy.
    • India is careful not to attract the US sanctions.
    • India did gain an exemption from the US sanctions regime for its participation in the Chabahar port project in Iran.
    • But they don’t apply to some of the partners suggested by Iran in the railway project.
    • So, Iran would like India to break the US sanctions regime.
    • A prudent India is resisting that temptation.
    • It would rather lose the railway contract than get into the raging crossfire between the US and Iran.

    Issue of balancing the relations with Iran and U.S.

    • India’s Iran policy cannot be seen as a test of India’s “strategic autonomy”.
    • Some expect Delhi to conduct its relationship with Iran without a reference to either a cost-benefit calculus or Iran’s troubled relationship with others with whom India has important partnerships.
    • No government in Delhi can buy into that proposition.
    • Criticism of the government policy is similar to what happened in 2005 over India’s stance on Iran’s covert nuclear programme.
    • Delhi’s vote against Iran in the International Atomic Energy Agency drew criticism.
    • But governments stand proved right when Iran concluded a nuclear deal of its own with the US and major powers, a decade later.
    • Iran surely can take care of its own interests, and there is little reason why Delhi must back Tehran in every one of its fights with Washington.

    India should focus on Arab countries

    • The Arab world has had its doors open for political, economic and technological cooperation with India.
    • Three moderate Arab nations — Egypt, Saudi Arabia and the UAE — are confronting radical forces in the region and are valuable partners for India in countering forces of destabilisation.
    •  There is real Chinese economic action in the Arab world as the region embraces China’s Belt and Road Initiative.
    • India is no minor economic force in the Arab world, having had a much longer engagement with the region than China.
    • Delhi must up its own commercial game in the Arab world, and one of the new possibilities for India lies in the domain of new technologies.
    • There is emerging sentiment among the Gulf Arabs to reduce the over-dependence on oil, promote alternative energy sources, invest in higher education, and develop technology hubs.

    Consider the question “India’s relations with Iran has always been driven by the geopolitical contexts. This poses an inherent challenge for both countries. In light of this examine the importance of Iran for India and challenges India’s foreign policy faces in dealing with Iran.”

    Conclusion

    India must focus on elevating India’s economic partnership with the Arab world to the next level. For India, the costs of neglecting the new possibilities for wide-ranging Arabian business are far higher than a lost railway contract in Iran.

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  • Foreign Policy Watch: India-China

    Changing dynamics in China-Pakistan collusion against India

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- China-Pakistan collusion in Jammu and Kashmir

    India has always been aware of the China-Pak collusion and their mutual support to each others’ actions. But the underlying basis has been changing now. It is no longer Pakistan seeking Chinese support in J&K as much as it is the other way around.

    Preparedness for a two-front war

    • The debate regarding India’s capability to fight a war in which there is full collusion between China and Pakistan has generally remained inconclusive.
    • Most detractors of the belief regarding China’s military-operational support to Pakistan, have leaned on the argument that China will adopt a policy to suit its interests.
    • Both in 1965 and 1971, China made some promises to Pakistan but chose to stay away.
    • Of course, that was during the Cold War — a completely different international strategic environment.

    China-Pakistan collection action in Kashmir

    • Pakistan increased its proxy campaign in J&K almost in sync with two China-related trends.
    • First, enhanced PLA assertiveness in Eastern Ladakh.
    • Second, the announcement of the Belt and Road Initiative (BRI).
    • A progressively altering Chinese attitude towards the Kashmir issue started to take shape as early as 2008-09, with issuing stapled visas to Indians residing in J&K and denial of a visa to the Northern Army Commander were signs of it.
    • This support was also witnessed on issues like the Nuclear Suppliers Group (NSG), Pakistan’s involvement in global terrorism and the abrogation of Article 370.

    Pincer approach in Ladakh

    • It is no longer Pakistan seeking Chinese support for its adventurism as much as it is the other way around.
    • The mutuality of interests has increased and military coordination has become a larger part of the overall strategy.
    • China may force further escalation this season depending upon how the world responds to its expansionism.
    • China could also adopt a posture which prepares it, along with Pakistan, towards a future “pincer approach” in Ladakh.
    • Along with Ladakh — Arunachal, Sikkim and the Central Sector are very part of the expanded collusive strategy.
    • But it is Ladakh where the effect is intended most and it is there that the pincer approach may prove more challenging for India.

    Suggestions for India

    • Assuming that confrontation with the Sino-Pak combine is inevitable now or later, one of the ways for India to offset this is to project sufficient capability.
    • The diplomatic and military domains have to play this out effectively.
    • India cannot be seen to be alone or militarily weak.
    • It has tremendous support internationally which must translate into a higher level of strategic support.
    • Militarily, Pakistan should never be able to perceive that it will be allowed to fight as per choice and conceived strategy.
    • China’s success or failure in such adventurism will set the course of its future strategy against its multiple adversaries.
    • That is the psyche which India must exploit to prevent escalation and win this and impending standoffs without fighting.
    • This needs a rapid and all-out national effort with the highest priority accorded to it, including budgeting.

    Conclusion

    India cannot afford to focus only on the northern borders. A firm and full strategy to deal with Pakistan in all contingencies has now become imperative.

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  • Foreign Policy Watch: India-China

    Concerns over Australia in the Malabar Exercise

    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: Quad

    Mains level: Paper 2- Australia's joining in Malabar naval exercise and issues with it

    While the idea of inviting Australia to join Malabar is being explored, we must not forget the concerns with it. This article examines such concerns.

    Context

    • India’s Ministry of Defence discussed the issue of adding Australia to the trilateral Malabar naval exercise.
    • If materialised, it will be the first time since 2007 that all members of Quad-India, U.S., Japan and Australia will participate in a joint military drill.

    Possible consequences of the move

    • The Chinese leadership sees the maritime Quadrilateral as an Asian-NATO that seeks only to contain China’s rise.
    •  India’s intention to involve Australia in the Malabar drill could only be construed as a move directed against Beijing.

    India’s perspective

    • Following the stand-off in Ladakh, many Indian analysts believe the time is right for India to shed its traditional defensiveness in the maritime domain.
    • The realists advocate an alliance with the U.S., Japan and Australia to counter Chinese moves in the Indian Ocean.

    Concerns

    1) Contrary message to China

    • While India and China are negotiating a truce, Australia’s participation in the Malabar exercise sends contrary signals to Beijing.
    • If China responded aggressively in the Eastern Indian Ocean, it could needlessly open up a new front in the India-China conflict.

    2) Only modest gains for India

    • U.S. and its Pacific partners want to form a maritime coalition to implement a ‘rules-based order’ in the Indo-Pacific littorals.
    • India’s priority is to acquire strategic capabilities to counter a Chinese naval presence in the Indian Ocean.
    •  Indian Navy is yet to develop the undersea capability to deter Chinese submarines in the eastern Indian Ocean.
    • With U.S. defence companies hesitant to share proprietary technology the gains for India, in exchange for signing up the ‘military-quad’, are modest.
    • Without strategic technology transfers, Indian Navy’s deterrence potential in the Indian Ocean Region (IOR) will not improve much.

    3) Operational issue: India will be drawn into power dynamics of the Asia-Pacific

    • With the strategic contest between the U.S. and China, there is every possibility that the military-Quad will be used to draw India into the security dynamics of the Asia-Pacific.
    • The U.S. would expect its Indo-Pacific partners, including India, to assist the U.S. Navy in its South China Sea endeavour.
    •  The U.S. and Japanese navies have little spare capacity for sustained surveillance and deterrence operations in the IOR.
    • Australia is an exception and is ready and able to partner India in securing the Eastern Indian Ocean.

    4) Timing

    • A balancing coalition must come together at a time when the nature and magnitude of the threat are wholly manifest.
    • But, despite a growing presence in the Indian Ocean, the Chines Navy is yet to physically threaten Indian interests at sea.
    • So, the onus of the first move to precipitate a crisis in the Eastern Indian Ocean lies with the Indian Navy.

    Conclusion

    Upgrading the trilateral Malabar to a quadrilateral, without acquiring the requisite combat and deterrence capability, could yield gains for India in the short term, but would prove ineffective in the long run.

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

    Exporting agri-inputs

    op-ed snap | Agriculture | : Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Urea import and export by India

    Mains level: Paper 3- Self reliance in agri-inputs

    Some changes could make India exporter of agri-inputs. The article examines bottlenecks that holds India back and suggests the policy changes in key agri-inputs-seeds, fertilisers and machinery.

    Context

    In the following 3 key agri-inputs India has the untapped potential. What is needed is policy changes.

    1) Seeds

    • India can emerge as an important seed producer and a large exporter of seeds to many developing countries in South and South-east Asia as well as Africa.
    • The country can produce very competitively-priced seeds for hybrid rice, hybrid corn, hybrid Bt HT cotton, and several vegetables including tomato, potato and okra.
    • For this to happen, we have to set our regulatory system right.
    • Let’s use the case of cotton.
    • India’s decision in March 2002 to allow Bt cotton made India the largest producer of cotton in the world and the second-largest exporter of cotton by 2013-14.
    • But due to policy changes since 2014-15 and issues such as trait fees companies stopped the introduction of new generation of seeds
    • Now there is an “illegal” spread of Bt HT cotton in Maharashtra.
    • This is partly because our regulatory system is complex.
    • And more so because the present government has ideological blinkers against modern science.
    • This is the biggest bottleneck holding India back from becoming the seed capital of the developing world.

    2) Fertilisers

    • India has been a net importer of fertiliser nutrients (NPK) for almost two decades.
    • In 2019-20, India imported fertilisers worth $6.7 billion, topping the list is urea $2.9 billion.
    • We are totally dependent on imports and likely to remain so in case of MOP and in the case of DAP.
    •  In the case of urea, India wants to be atmanirbhar by opening up five new urea plants in the public sector with a total capacity of 6.35 MMT.
    • Almost 70 per cent of the gas being used in urea plants is imported at a price much higher than the price of domestic gas.
    • The cost is going to be more than $400/tonne when the international price generally hovers between $250-300/tonne.
    • The government should allow existing private sector urea plants to expand and produce at a much lower cost.
    • The best way to achieve self-reliance in fertilisers is to change the system of fertiliser subsidies.

    Suggestion on changes in fertiliser subsidies

    • 1) Deposit equivalent cash directly into farmers’ accounts, calculated on a per hectare basis.
    • 2) Free up fertiliser prices.
    • 3) Allow the private sector plants to compete and expand urea production in a cost-competitive manner.

    3) Farm machinery

    • Before the Green Revolution, India produced only 880 tractor units.
    • It increased to about 9,00,000 units in 2018-19.
    • So, India is the largest tractor manufacturer in the world.
    • India also exported almost 92,000 tractors, largely to African and ASEAN countries.
    • Though Green Revolution gave tractor production a push, the real break-through came after de-licensing in 1991.
    • The new class of entrepreneurs and start-ups are coming up with special apps for “Uberisation of tractor services”.
    • In an economy of small landholders, owning a tractor is a high-cost proposition as it is not fully utilised.
    • This needs to be made more efficient by creating a market for tractor services.

    Consider the question “Despite having the potential to transform itself into the exporter of agri-inputs, India ends up being the importer of some of them. In light of this examine India’s potential to become the exporter of agri-input products and suggest the measures to achieve this.”

    Conclusion

    The private sector is our strength. The only thing the government has to do is to unshackle them from the chains of controls and webs of unnecessary regulations. They will make an Atmanirbhar Bharat.

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  • Electoral Reforms In India

    Voting right to migrant workers

    op-ed snap | Polity | Mains Paper 2: Representation Of People’s Act

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: RP Act

    Mains level: Paper 2- Securing voting right to migrant workers through ballot paper

    A large number of migrant workers cannot vote in their constituency. This assumes significance when we consider that the Supreme Court has interpreted the right to vote as an extension of the fundamental right of the freedom of expression. So,  the ECI should find ways to enable them exercise their right.

    Universal adult franchise: India’s achievement

    • India moved from a restrictive 15 per cent of Indians having limited voting rights to universal adult franchise.
    • Transformative nature of the Indian national movement and the ideals of equality and non-discrimination enshrined in it played a crucial role in it.
    • It was B R Ambedkar’s clarity of vision that resulted in Article 326 of the Constitution.
    • Ambedkar had influenced public opinion on the matter for decades, giving evidence before the Southborough committee.

    Migrant workers: some facts

    • According to the 2011 Census, the number of internal migrants stands at 45 crore.
    • Among these, 26 per cent of the migration, that is, 11.7 crore occurs inter-district within the same state.
    • 12 per cent of the migration, that is, 5.4 crore occurs inter-state.
    • Both official and independent experts admit that this number is underestimated.
    • Circular migration accounts for those migrants who have not permanently relocated to host cities, and instead circulate between host and home cities.
    • Short-term and circular migration could itself amount to 6-6.5 crore.
    • Half of these are inter-state migrants.
    • Migrant labourers mostly hail from most poverty-driven rural areas.
    • They are from among the most marginalised sections SC/STs and OBCs, and other minorities.
    • As of 2011, Uttar Pradesh and Bihar were the largest sources of inter-state migrants, with 83 lakh and 63 lakh migrants respectively.

    Low turnout in the source states

    •  Economic constraints disable a majority of migrant workers from voting as they cannot commute to their home states on the polling day.
    • One survey shows that only 48 per cent of those surveyed voted in the 2009 Lok Sabha elections, when the national average was 59.7 per cent.
    • In the 2019 Lok Sabha polls, major sender states such as Bihar and UP had among the lowest voter turnout rates.

    Inability to satisfy “Ordinary Resident” criteria

    • Given the nature of migration being circular and seasonal, migrants are not permanent/long-term residents in host cities.
    • So, they do not satisfy the requirements of being an “ordinary resident” under Section 20 of the Representation of People Act (RP Act), in the host state, to obtain voter cards.
    • They are, therefore, unable to transfer their constituency.

    Solution: Postal ballot

    • The Election Commission of India has under Section 60(c) of the RP Act the power to notify a certain class of persons to vote via postal ballot.
    • The ECI’s much-proclaimed mission to ensure “no voters are left behind” has resulted in attempts to ensure a secure system of postal ballots.
    • In the 2019 Lok Sabha elections, more than 28 lakh votes were received via postal ballots.
    • The Indian migrant worker should be given the right to vote through a similar system.

    Consider the question “There is scope for increasing the voter turnout in India and enabling the migrant workers to vote could be one of them. Examine the reasons for low voting turnout in India and suggest the measures to improve it.”

    Conclusion

    Securing the migrant workers right to vote will make democracy inclusive, responsible and sensitive to the concerns of those who find it difficult to make their voice heard.

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  • Foreign Policy Watch: India-Iran

    Iran ties need quiet diplomacy

    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: JCPOA

    Mains level: Paper 2- India-Iran ties and India's concerns over Iran-China partnership

    India ties with Iran are significant for more than one reasons. Two countries share cultural bonds, Iran holds a special place when it comes to India’s energy security. Yet, India often finds itself in a difficult position as it tries to walk the tightrope between the U.S. sanction and maintaining the relations with Iran. 

    Context

    • Concerns were raised in India over its exclusion by Iran from the 628 km long rail link between Chabahar and Zahidan.
    • Iran has since clarified that it is not the case and India could join the project at a later stage.
    • It happened just as China and Iran were close to signing a deal on an economic and security partnership.

    Importance of Chabahar and the rail link

    • Chabahar could provide connectivity for Afghanistan through Iran in order to lessen its dependence on Karachi port.
    • This plan has enjoyed support in Delhi, Kabul and Tehran since 2003.
    •  Road and rail links from Chabahar to Zahidan and then 200 km further on to Zaranj in Afghanistan, need to be built.

    Progress on the project

    • Iran was under sanctions during 2005-13, so there was little progress.
    •  Meanwhile, India concentrated on the 220 km road to connect Zaranj to Delaram on the Herat highway, and completed it in 2008.
    • After the sanctions on Iran eased in 2015,  A memorandum of understanding (MoU) was signed with Iran in 2016.
    • This MoU aimed to equip and operate two terminals at the Shahid Beheshti port as part of Phase I of the project.
    • The Trilateral Agreement on Establishment of International Transport and Transit Corridor between Afghanistan, Iran and India was signed.
    • In addition to $85 million of capital investment, India also committed to providing a line of credit of $150 million for port container tracks.
    • Phase I was declared operational in 2018 and India’s wheat shipments to Afghanistan have been using this route.
    • A special economic zone (SEZ) at Chabahar was planned but re-imposition of U.S. sanctions has slowed investments into the SEZ.
    • India was given a waiver from U.S. sanctions to continue cooperation on Chabahar.
    •  Despite the waiver, the project has suffered delays.

    Growing Iran-China relations

    • In 2016, just as sanctions were eased, Chinese President Xi Jinping visited Tehran and proposed a long-term comprehensive, strategic partnership.
    • Iran kept the negotiations going for years because of reluctance to grow too close to China.
    • Meanwhile, tensions in the region have been growing since last year with missile strikes in Saudi Arabia and a U.S. drone strike killing Gen. Qassim Soleimani.
    • As a veto-wielding member, China can help Iran at the UNSC.
    • Even so, the Iran- China comprehensive, strategic partnership road map has run into opposition in the Majlis[Iranian Parliament].

    India’s concerns over Iran-China deal

    • What is alarming for New Delhi is that Beijing is also concluding a security and military partnership with Tehran.
    • Initial reports in Iran have suggested China will deploy 5,000 security personnel to protect its projects in Iran.
    • Some reports suggest Kish Island in the Persian Gulf, located at the mouth of the Strait of Hormuz, maybe “sold” to China.
    • With a growing Chinese presence, India is also concerned about its strategic stakes around the Chabahar port project.

    Way forward for India

    • Though China has a greater capacity to resist U.S. sanctions, Iran realises the advantage of working with India as it enjoys a sanctions waiver from the U.S. for Chabahar.
    • Iran and India also share an antipathy to a Taliban takeover in Afghanistan.
    • This is why Iran would like to keep the door open.
    • Nevertheless, India needs to improve its implementation record of infrastructure projects in its neighbourhood.
    • There are numerous tales of Indian cooperation projects in Nepal, Bangladesh, Sri Lanka, Myanmar, etc suffering delays and cost overruns that only make it easier for China to expand its footprint in India’s neighbourhood.

    Consider the question “India-Iran ties circumscribed by each other’s compulsion and geopolitical constraints. Comment.”

    Conclusion

    India should continue to remain politically engaged with Iran so that there is a better appreciation of each other’s sensitivities and compulsions.

    With inputs from:

    https://indianexpress.com/article/explained/explained-in-china-iran-indias-concerns-6511177/

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    A demand problem contributing to lower imports

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Trade surplus

    Mains level: Paper 3- India's import and exports

    India registered a trade surplus after almost two decades. But this is not the result of a sudden rise in India’s export. It is due to subdued import indicating the low demand.

    What latest data indicate

    • Data released by the commerce ministry indicate a contraction in exports observed over the past few months easing slowly.
    • But the continuing contraction in import which indicates low demand is worrying.
    • This is trend is leading to the growing gap between import and export.

    India registered a trade surplus: what it indicates

    • This growing gap led to India registering a trade surplus of nearly $800 million in June.
    • This is the first time in almost two decades that the country has registered a trade surplus.
    • But does this mean that India’s exports have grown drastically?
    • No. It is a sign of collapse in domestic demand.

    Merchandise exports growing trends

    • India’s merchandise exports continue to witness an upward swing.
    • The pace of contraction fell to 12.4 per cent in June, from 36.2 per cent in May and 60 per cent in April.
    • Exports of items such as iron ore, drugs and pharmaceuticals, chemicals and various agricultural commodities saw an expansion in June.

    What growing exports and falling import indicate

    • An upswing in exports could be indicative of a faster recovery of India’s export partners.
    • Restrictions on economic activities in some of these countries had eased earlier.
    • Other reason could be the rush by Indian exporters to ship out orders to meet their seasonal deadlines.
    • Imports continue to remain deep in negative territory.
    • The contraction in non-oil exports has actually worsened with decline observed in both consumer and investment/industrial goods imports.
    • Some movement is visible in imports of electronic goods.
    •  But the import of machinery and transport equipment has not moved significantly.
    • Of the 30 main import items, only four registered mildly positive growth in June — this indicates the pace of the domestic slowdown.

    Conclusion

    Economic activities across the world will take time to return to normalcy, India’s exports will take time to reach pre-COVID levels. It seems that the chasm between exports and imports could persist, given the plateauing of the post-lockdown spurt in demand/production.

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

    Centralisation in decision making in education

    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- Centralisation in Education

    The article tracks the evolution of the India education system after Independence. While the decentralisation and active encouragement underscores the initial years, recent trends shows a growing emphasis on centralisation.

    How Government support contributed to rise of educational institutions

    • In the initial decades after Independence, the government was conscious of various social, economic and financial challenges.
    • So, the government strongly supported universities, encouraging them to further develop an academic .
    • The IITs and IIM along with institutions of academic excellence like the IISc, Indian Statistical Institute, and JNU emerged as model institutions.
    • The institutional and academic autonomy offered was central to their emerging as premier institutions.
    • Other universities revised curricula and set about the task of reforming the university as a space for healthy academic engagement.

    Rise of decentralisation in collective decision making

    • The above changes were marked by the growing importance of various large representative institutional bodies.
    • For example, institutional bodies like faculty committees, committees of courses, board of studies, university senates, academic councils and executive councils grew in importance.
    • These bodies oversaw the administrative and academic functioning of the university and ensured collective decision-making.
    • Debate over ideological positions, scholarly beliefs shaped the process of nation-building in independent India.

    Policy changes and its impact (2005-15)

    • The constitution of the National Knowledge Commission and privatisation of education undermined the deliberative and independent character of these institutions of higher education.
    • Administrative and academic decisions were imposed from above.
    • Discussions within various academic bodies were discouraged.
    • The imposition of the semester system and a four-year undergraduate programme in many public and private universities were hallmarks of this new era of bureaucratic centralisation.
    • The academic achievements of scholars from Indian universities were undermined.
    • Those in positions of authority within the universities were encouraged to undermine academic bodies and limit their role.

    New government intervention after 2015

    • Futher changes were introduced starting from 2015.
    • Choice Based Credit System was introduced and there were renewed attempts to privatise higher education linked to an emphasis on rankings.
    • The government started to look into minute details pertaining to academic curricula, the teaching-learning process and the parameters that governed academic research within the university.

    Centralisation in Covid-19 pandemic

    • The centralisation trend intensified with the outbreak of the COVID-19 pandemic.
    • The Central government and the University Grants Commission have imposed themselves on the daily functioning of all higher educational institutions.
    • This represents a new government-oriented bureaucratic centralisation.
    • Decisions about the conclusion of academic term, the modalities for evaluation and the conduct of the teaching-learning process have become exclusive government prerogatives.
    • The various academic bodies that had original jurisdiction over these matters have been made redundant.
    • How and whether examinations are to be conducted has become an issue of contention between State and Central governments.

    Consider the question “Centralisation of the decision making instead of at institutional level in educational institutions and universities lies at many woes of the higher education in India. Comment.”

    Conclusion

    The time has come for institutions of higher education in India to recover their lost voice and restore the fertile academic space where ideas are discussed and debated rather than suppressed and dismissed.

    Original article:

    https://www.thehindu.com/opinion/lead/the-lost-voice-of-the-indian-university/article32105945.ece

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