Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Highlights of Budget 2023 - Schemes and projects for Digitization and Green growth
Context
- The Union Budget speech by Finance Minister Nirmala Sitharaman on Wednesday highlighted the governmentâs continuous efforts to push for digitisation in the country. Also the Finance Minister listed âGreen Growthâ as one of the seven priorities of her Budget.
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Push for digitisation in the country: key highlights
- Digital Public Infrastructure for Agriculture: It will be an open source, open standard and interoperable public good. The platform will offer inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for the growth of the agri-tech industry and start-ups.
- National Digital Library for Children and Adolescents: This will be established for facilitating the availability of quality books in different languages, genres and at different levels. The government will also try to inculcate a culture of reading by collaborating with NGOs, which will provide age-appropriate reading material to everyone.
- Centres of Excellence for Artificial Intelligence: There is a proposal for setting up three centres of excellence for Artificial Intelligence in top educational institutions. These centres, in partnership with leading players in the industry, will conduct interdisciplinary research and develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities.
- National Data Governance Policy: Government will formulate a data governance policy to enable access to anonymised data for innovation and research by start-ups and academia.
- 5G Services: A hundred labs will be established in engineering institutions for developing applications using 5G services to realise a new range of opportunities, business models, and employment potential.
- E-Courts: Government will roll out phase three of the E-Courts project to ensure the efficient administration of justice.
- Bharat Shared Repository of Inscriptions (Bharat SHRI): A digital epigraphy museum will be established and one lakh ancient inscriptions will be digitised in the first stage.
- Skill India Digital Platform: The digital ecosystem for skilling will be further expanded by launching a unified Skill India Digital platform for enabling demand-based formal skilling, linking with employers including MSMEs and facilitating access to entrepreneurship schemes.
- Green Hydrogen Mission: The recently launched National Green Hydrogen Mission, with an outlay of Rs 19,700 crores, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. India aims to reach a target of an annual production of 5 MMT of green hydrogen by 2030.
- Energy Transition: The Budget has provided Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.
- Energy Storage Projects: To steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. A detailed framework for Pumped Storage Projects will also be formulated.
- Renewable Energy Evacuation: The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed.
- Green Credit Programme: For encouraging behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act. This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.
- PM-PRANAM: A new PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
- GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme: 500 new waste to wealth plants under GOBARdhan scheme will be established for promoting circular economy.
- Bhartiya Prakritik Kheti Bio-Input Resource Centres: Proposal to facilitate over the next three years 1 crore farmers to adopt natural farming. For this, 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
- MISHTI: Mangrove Initiative for Shoreline Habitats & Tangible Incomes, MISHTI, will be taken up for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and other sources.
- Amrit Dharohar: The government will promote their unique conservation values through Amrit Dharohar, a scheme that will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
- Coastal Shipping: Coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
- Vehicle Replacement: Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy states will also be supported in replacing old vehicles and ambulances.
Conclusion
- The Union Budget presented by Finance Minister Nirmala Sitharaman outlines the government’s push for digitization and green growth in India. Key highlights suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India.
Mains question
Q. Recently Finance Minister Nirmala Sitharaman presented Union Budget 2023. many suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Particulars of MSME sector reforms
Mains level: MSME significance and challenges
Context
- India overtook the UK as the worldâs fifth-largest economy in 2022, and is on track to achieving PM Narendra Modiâs vision of a $5 trillion economy by 2026-27. Despite concerns of a looming global recession, supply disruptions and the Russia-Ukraine war, India has stood out as a bright spot, growing faster than most major emerging markets. The governmentâs budget for 2023 presents an opportunity to make the Indian MSMEs competitive and self-reliant.
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What are MSMEs? How are they defined?
- Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on:
- The investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of and
- The investment in equipment for enterprises engaged in providing or rendering of services.
MSMEs in India at present
- The 6.3 crore micro, small and medium enterprises which account for 30 per cent of GDP and employ nearly 11 crore people have demonstrated this spirit of resilience.
- With sales in several industries across the MSME sector reaching 90 per cent of pre-pandemic levels, Indiaâs small businesses are scripting a turnaround.
- Streamlining input tax credit for e-commerce suppliers: Currently, suppliers selling on e-commerce platforms need to procure input services like logistics, which are taxed at 18 per cent. This leads to precious working capital getting blocked without any visibility of future realisation, potentially discouraging suppliers from adopting e-marketplaces.
- Adequate working capital for small businesses: From meeting fixed expenses such as electricity, rent and employee wages to investing in future growth, adequate working capital is a must for small businesses.
- Lowering GST rates on input services: By lowering GST rates on input services availed by online sellers, the government will not only shore up their finances but also give a leg-up to their digitisation journey. Further, refunds of accumulated input tax credit will improve their cash flow situation.
- Expedited GST relaxation for small online businesses: There is also a need to expedite GST relaxation for small online businesses. In a landmark move last year, the GST Council announced a relaxation of rules for small businesses looking to go online.
- GST relaxation measures for small online vendors: Among other measures, mandatory GST registration was waived for small online vendors with a turnover of less than Rs 40 lakh and Rs 20 lakh for goods and services, respectively.
- Unlocking the potential of MSMEs through Digitization: With just 10 per cent of our MSMEs currently online, expeditious implementation of these new norms is key to unlocking their full potential. Millions of small businesses are waiting in the wings, hoping to reap the benefits of digitisation such as a much bigger addressable market, increased efficiencies and easier access to capital.
- The National Logistics Policy (NLP) can also be leveraged to make MSMEs competitive: The NLP aims to bring down logistics costs as a percentage of the GDP from 13-14 per cent to 8 per cent, on par with developed nations. While lower costs will encourage more MSMEs to use tech-powered logistics services, they will need support to tap rising e-commerce demand from smaller towns and semi-rural areas.
- Indian post and railways can be utilized for cost effective last mile delivery: The government could rope in India Post as a tech-enabled last-mile delivery partner that can facilitate cash-on-delivery transactions at competitive prices. Similarly, the unparalleled reach of Indian Railways can be synergised to ship wares to the remotest parts of the country quickly and cost-effectively.
Why the MSME sector is important especially for India?
- Employment: The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.
- Help building inclusive and sustainable society: It contributes to building an inclusive and sustainable society in innumerable ways through the creation of non-farm livelihood at low cost, balanced regional development, gender and social balance, environmentally sustainable development, etc.
- For example: Khadi and Village industries require low per capita investment and employs a large number of women in rural areas.
- Contribution to GDP: With around 36.1 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.
- Exports: It contributes around 45% of the overall exports from India.
Conclusion
- With a visionary government charting out the nationâs growth path, it is anticipated that the budget would certainly deliver on the challenges for MSMEs and take us closer to the dream of an Atmanirbhar Bharat.
Mains question
Q. Highlight the significance of MSMEâs for India. What more efforts can be taken to make MSMEs more competitive and self-reliant?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Drug infiltration for terror financing, and security issues
Context
- With arms and terror infiltration becoming difficult, Pakistan has now resorted to peddling drugs to degenerate the youth of Jammu and Kashmir. Narcotics, Pakistanâs new weapon to finance terrorism within the Valley, has been dubbed the biggest challenge confronting Jammu and Kashmir by Police Chief Dilbag Singh.
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Background: Pakistan-sponsored terrorism and its impact
- The culture of violence implemented through constant financial and strategic support to the insurgency in the Kashmir Valley by Pakistan by training and infiltrating weapons and militants impacted society in many ways.
- Pakistan-backed terrorism destroyed the centuries-old socioeconomic and sociocultural fabric of society.
- The deaths, mass exodus of Pandits, and increased unemployment eroded the composite way of life and increased boredom, depression, and anxiety among the masses.
How Pakistanâs designs are failing?
- Pakistan-sponsored terrorism is at an all-time low in Jammu and Kashmir, three years after the abrogation of Articles 370 and 35A.
- The number of active militants has fallen from 250 by the end of 2019 to just over 100 by January 2023.
- Security agencies have tried hard to achieve zero terror activities within the Union territory of Jammu and Kashmir and busted 146 terror modules created by Pakistan in 2022.
- As a result, Pakistanâs design to create a culture of violence in the Valley endorsed by self-serving and incestuous political elite under the guise of autonomy for the last 30 years is failing.
Drug strategy of Pakistan in Kashmir
- Strategy serves dual purpose for Pakistan: Now, with the people of Kashmir increasingly relinquishing terrorism and a culture of violence, the drug strategy serves dual purposes for Islamabad. One, to attack the core of the social well-being, and two, to finance terrorism within the Valley.
- Constant infiltration of drugs in the valley: There is a constant infiltration of drugs by Pakistan via the Valleyâs Kupwara and Baramulla districts, less-used other drugs such as brown sugar, cocaine, and marijuana are also readily available within the Valley and even in parts of Jammu.
Drug addiction in Kashmir
- Valley is slowly becoming a drug hub: The Kashmir Valley is slowly becoming a drug hub in Northern India, having more than 67,000 drug abusers, of which 90 percent are heroin addicts, using more than 33,000 syringes daily.
- Emerged as countryâs top drug affected region: With 2.5 percent of the population using drugs, Kashmir has emerged as the countryâs top-drug-affected region, ahead of Punjab, where 1.2 percent of the population is reportedly addicted to drug abuse.
- Residents affected: In November 2022, the state-level narcotic coordination committee meeting chaired by the Chief Sectary revealed that at least six lakh residents were affected by drug-related issues in Jammu and Kashmir.
- Increasing crime rate: Increasing on average, INR 88,000 are spent by a drug abuser in the Valley yearly, increasing Kashmirâs crime rate.
Reasons for this situation
- Collapse of age-old social discipline: A significant reason for such an alarming situation is the near-total collapse of the Valleyâs age-old informal social discipline and control mechanisms enforced by village elders.
- Attack on cultural core: Pakistanâs nefarious attack on the Valleyâs cultural core has rendered this traditional mechanism of social control ineffective.
- Few contributes in social degradation: The village elders have also often worked hand-in-glove with Pakistanâs evil designs by remaining silent and endorsing the societal degradation.
Jammu and Kashmir police and war against drugs
- Security agencies have trained their focus on drug peddlers: Security agencies in Jammu and Kashmir are known for anti-terror operations. They have successfully created a synergy with the local administration to sabotage Pakistanâs activities and allied forces within the Valley. With Pakistan-sponsored insurgency receding, the security agencies have trained their focus on drug peddlers.
- Security agencies in action: In 2022, under Narcotic Drugs Psychotropic Substances (NDPS) Act, the police registered 1,021 cases and arrested 1700 drug peddlers, including 138 notorious peddlers. During the same time, the security agencies seized enormous quantities of contraband, including 212 kilograms of charas, 56 kilograms of heroin, 13 kilograms of brown sugar, 4.355 tonnes of poppy straw and 1.567 tonnes of fukki.
- Busted narco terror modules: The security agencies also busted many narco-terror modules and arrested 36 persons with huge catches of drugs, arms, ammunition, and money.
- Investigation revealed drugs smuggled from Pakistan: In December 2022, police busted a Pakistan-based narcotics module and arrested 17 persons, including five police officials and some political activists. Investigations revealed that over five kilograms of narcotics valued at INR 5 crore were smuggled from Pakistan in three months.
- Launched Nasha-Mukt Bharat Abhiyan: The local administration has also launched the Nasha-Mukt Bharat Abhiyan an initiative started by the Ministry of Social Justice and Empowerment on 15 August 2020 to eradicate the menace of drug addiction in 272 districts across India. This programme has conducted large-scale awareness programmes in colleges, universities, and within communities.
- The Kashmiri society needs to have an internal interlocution and take a serious look at Pakistanâs policies to foment trouble, especially through narco-terrorism.
- Kashmirâs elders and religious leaders through mosques need to get involved in the war against drugs and guide the youth to engage meaningfully with the spate of developmental activities undertaken by the national and Union territory government following the abrogation of Article 370.
- The government should also initiate and enable public-private partnerships, where local police, military, paramilitary, and citizen bodies act in harmony to make Kashmir free of narco-terror and Pakistan-implemented culture of violence.
Conclusion
- With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Creating a working synergy between Kashmirâs traditional and formal social control system can go a long way in addressing the drug menace.
Mains question
Q. With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Current status of global economy and Global recession implications
Context
- There have recently been growing concerns about the global economy slipping into recession. These concerns were primarily triggered by the contraction of the US economy, observed in the first half of 2022. Negative growth in two consecutive quarters is commonly but not officially used as an indication of recession.
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Background: Status of the US economy
- First and second quarter of 2022: As reported by the Bureau of Economic Analysis (BEA), the US real Gross Domestic Product (GDP adjusted for inflation) decreased at an annual rate of 1.6 per cent and 0.6 per cent in the first and second quarters of 2022, respectively.
- Third quarter: In the third quarter, however, the US economy grew by 3.2 per cent, signalling a significant recovery.
- Fourth quarter: The latest BEA advance estimates show that the US real GDP increased at an annual rate of 2.9 per cent in the fourth quarter.
- Expansion of US economy a positive sign: Despite the slight decrease from the third quarter, the continued expansion of the US economy at the end of 2022 marks a positive sign, soothing concerns about a recession in 2023.
Economic recovery of the US economy
- Positive growth in fourth quarter: The positive growth in the fourth quarter can primarily be attributed to consumer spending, which increased by an annualised rate of 2.1 per cent, and private inventory investment that showed an upturn in 2022. Although a significant decline from the 5.9 per cent increase in 2021, the difference accounts for the enthused post-Covid economic recovery in 2021.
- The US labour market continues to remain robust: The unemployment rate was recorded at a low of 3.5 per cent in December 2022, matching the pre-pandemic levels. Also, the total non-farm payroll employment increased by 2,23,000 in December, exceeding the Dow Jones estimate of 2,00,000.
- Inflation has eased: While the labour market remains tight, US inflation has eased in the last few months. Consumer prices fell 0.1 per cent in December the largest month-over-month decrease since April 2020, due to reductions in motor vehicle and gasoline prices.
- Layoffs not yet translated into rise in jobless claims: Although not a perfect association, the decline in jobless claims in January shows that the mass layoffs in recent weeks, particularly in the tech sector, have not yet translated into a rise in claims, suggesting the possibility of finding new jobs.
- The reopening of Chinaâs borders can have positive implications for the global economy: As China resumes its economic activities to pre-Covid levels by boosting growth, domestic consumption is expected to increase significantly. With the ease of trans-border movement and eventual increase in exports of consumer and industrial goods, global trade is expected to strengthen as well.
What is Recession?
- A recession is a significant decline in economic activity that lasts for months or even years.
- Experts declare a recession when a nationâs economy experiences negative GDP, rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.
- Recessions are considered an unavoidable part of the business cycle or the regular cadence of expansion and contraction that occurs in a nationâs economy.
- Elevated inflation continues to be a cause for global concern: Despite the fall in consumer prices, the headline CPI for the US showed an annual increase of 6.5 per cent in December 2022. In spite of the slow-paced increase in headline CPI, persistent elevation in core inflation excluding food and energy continues to be a major issue across economies.
- Interest Rate Hikes on the Horizon: Consequently, the central banks are expected to continue with interest rate hikes in the coming months. On an annualised level, the CPI inflation in Australia also jumped to 7.8 per cent in the 2022 fourth quarter, increasing the likelihood of respective interest rate hikes as well.
- China’s Impact on Commodity Prices: Moreover, an increase in Chinaâs demand for goods post-reopening could drive up commodity prices, thereby creating an inflationary impact. For instance, Chinaâs increased demand for natural gas would mean more competition with the European market, leading to higher commodity prices that can put further inflationary pressures on Europeans already dealing with high energy bills.
- Higher borrowing costs: Rising interest rates would incur even higher borrowing costs that could dampen consumer spending. While sectors sensitive to high borrowing costs such as housing and construction have slowed down significantly.
Conclusion
- Among the positive signs are the continued expansion of the US economy and the reopening of Chinaâs borders. Rising inflation remains a cause for global concern. However, prevalence of mixed signals suggests that the onset and depth of a global recession in 2023 are not certain.
Mains question
Q. Highlight the current situation of global economies. Discuss if thereâs a global recession in 2023?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Mental health problems and solutions
Context
- Suicides rates in India are amongst the highest when compared to other countries at the same socio-economic level. According to WHO, Indiaâs suicide rate in 2019, at 12.9/1,00,000, was higher than the regional average of 10.2 and the global average of 9.0. Suicide has become the leading cause of death among those aged 15â29 in India.
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Background: Mental Health
- While every precious life lost through suicide is one too many, it represents only the tip of the mental health iceberg in the country, particularly among young adults. Women tend to suffer more.
- Across the world, the prevalence of some mental health disorders is consistently higher among women as compared to men.
Prevalence of Mental ill-health
- The pandemic has further exacerbated the problem: Globally, it might have increased the prevalence of depression by 28 per cent and anxiety by 26 per cent in just one year between 2020 and 2021, according to a study published in Lancet.
- Increased among younger age groups: Again, the large increases have been noted among younger age groups, stemming from uncertainty and fear about the virus, financial and job losses, grief, increased childcare burdens, in addition to school closures and social isolation.
- Use of social media exacerbating the stress: Increased use of certain kinds of social media is also exacerbating stress for young people. Social media detracts from face-to-face relationships, which are healthier, and reduces investment in meaningful activities. More importantly, it erodes self-esteem through unfavourable social comparison.
Socio-economic implications of Mental ill-health
- People living in poverty are at greater risks: Mental ill health is a leading cause of disability globally and is closely linked to poverty in a vicious cycle of disadvantage. People living in poverty are at greater risk of experiencing such conditions.
- People experiencing mental health problems likely to fall in poverty: On the other hand, people experiencing severe mental health conditions are more likely to fall into poverty through loss of employment and increased health expenditure.
- Stigma and discrimination: Stigma and discrimination often further undermine their social support structures. This reinforces the vicious cycle of poverty and mental ill-health.
- Higher income inequality has high prevalence of ill mental ill health: Not surprisingly, countries with greater income inequalities and social polarization have been found to have a higher prevalence.
- Killing the deep stigma surrounding mental health issues: The first step should be killing the deep stigma which prevents patients from seeking timely treatment and makes them feel shameful, isolated and weak. Stigma festers in the dark and scatters in the light. We need a mission to cut through this darkness and shine a light.
- Making Mental health an integral part of public health programme: There is need to make mental health an integral part of the public health programme to reduce stress, promote a healthy lifestyle, screen and identify high-risk groups and strengthen interventions like counselling services. Special emphasis will need to be given to schools.
- Paying attention to highly vulnerable: In addition, we should pay special attention to groups that are highly vulnerable because of the issues such as victims of domestic or sexual violence, unemployed youth, marginal farmers, armed forces personnel and personnel working under difficult conditions.
- Creating a strong infrastructure for mental health care and treatment: Lack of effective treatment and stigma feed into each other. Currently, only 20-30 per cent of people with such disorders receive adequate treatment.
- Mental health services should be made affordable for all: Improved coverage without corresponding financial protection will lead to inequitable service uptake and outcomes. All government health assurance schemes, including Ayushman Bharat, should cover the widest possible range.
Why is the wide treatment gap?
- One major reason for a wide treatment gap is the problem of inadequate resources.
- Less than two per cent of the government health budget, which itself is the lowest among all G20 countries, is devoted to mental health issues.
- There is a severe shortage of professionals, with the number of psychiatrists in the country being less than those in New York City, according to one estimate.
- Substantial investments will be needed to address the gaps in the health infrastructure and human resources.
- Currently, most private health insurance covers only a restricted number of mental health conditions. Similarly, the list of essential medicines includes only a limited number of WHO-prescribed medications.
Conclusion
- We need an urgent and well-resourced whole of society approach to protecting, promoting and caring for the mental health of our people, like we did for the Covid pandemic. Brock Chisholm, the first Director General of WHO, famously said, âthere is no health without mental healthâ.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indus river system, Indus Water Treaty
Mains level: Indus Water Treaty, India Pakistan relations
Context
- Indiaâs January 25 notice to Islamabad seeking modification of the 1960 Indus Waters Treaty is the fallout of a longstanding dispute over two hydroelectric power projects on the western rivers the fully operational Kishenganga on the Jhelum, and Ratle on the Chenab.
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- The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
- According to this agreement, control over the water flowing in three eastern rivers of India the Beas, the Ravi and the Sutlej was given to India.
- The control over the water flowing in three western rivers of India the Indus, the Chenab and the Jhelum was given to Pakistan.
Basis of the treaty
- Equitable water-sharing: Back in time, partitioning the Indus rivers system was inevitable after the Partition of India in 1947.
- Empathizing the Partition: The sharing formula devised after prolonged negotiations sliced the Indus system into two halves.
- Water does not recognize borders: Underlying the treaty is the principle that water does not recognise international boundaries and upper riparians have a responsibility to lower riparians.
What is the issue?
- Pakistanâs objection: The Kishenganga was constructed after the Permanent Court of Arbitration in The Hague ruled in Indiaâs favour. But Pakistan continues to object to this and the Ratle dam.
- Delhi sought to modify: Delhi, reportedly, has sought to modify the treaty after Pakistan refused intergovernmental negotiations on the matter.
- Stages for resolving disputes: While that is the first stage provided under the treaty for resolving disputes, the next is the request to the World Bank by the aggrieved party for the appointment of a neutral expert. A court of arbitration is constituted as the last resort.
Significance of the treaty
- Testimonial to peaceful coexistence: It is a treaty that is often cited as an example of the possibilities of peaceful coexistence that exist despite the troubled relationship. The IWT is the only agreement between India and Pakistan that has stood the test of time, through wars and terrorism.
- Survived many hostilities: It has survived 3 crucial wars.
- Most successful bilateral treaty: It is internationally regarded as an example of successful conflict resolution between two countries otherwise locked in a hostile relationship.
India and Pakistanâs POV
- While the treaty does provide for modification from time to time, it has to do so by means of a duly ratified treaty concluded for that purpose between the two Governments.
- More likely, the issue will fester and grow into another active pressure point in India-Pakistan relations.
- On the Pakistani side, accusations are made with increasing frequency that India has turned off the water, and on this side, the view is growing that India was been too generous in the IWT.
- Prime Minister Narendra Modiâs remark in the aftermath of the 2016 Uri attack that âblood and water cannot flow togetherâ, even though how this threat might be implemented is not clear as it would be plain dangerous to build big dams to stop the western rivers from flowing across the LoC in a seismologically active region.
Conclusion
- Using water as a weapon is never a good idea. It would be so much better for both countries to treat the IWT as an instrument for collaboration on climate action in the fragile Himalayan region.
Mains question
Q. What is Indus water treaty? Discuss the significance of IWT and highlight some of the issues.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Layoffs, reasons and impact, Industries, Employment and economy
Context
- Last year, around 1,60,000 workers in the tech industry were laid off globally. In contrast, in just this month alone some 60,000 tech workers have been laid off till now. On the back of a gloomy global economic outlook and prospects of a possible recession, tech firms across the world from US-based giants like Alphabet, Amazon and Meta to early-stage startups have engaged in large-scale retrenchments.
What is means by Lay-Off?
- A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employeeâs performance.
- Employees may be laid off when companies aim to cut costs, due to a decline in demand for their products or services, seasonal closure, or during an economic downturn.
- When laid off, employees lose all wages and company benefits but qualify for unemployment insurance or compensation (typically in USA).
Inflation after strong recovery of the global economy: Two factors
- Outpaced demand: Buoyed by extraordinary pandemic relief support to households, aggregate demand in advanced economies outpaced supply.
- Supply chain disruption as a result of Russia- Ukraine war: the armed conflict between Russia and Ukraine caused supply-chain disruptions, leading to global inflationary pressures for food and fuel. In response, the US Federal Reserve has rapidly hiked rates.
- Lay-offs in India: As multinational firms seek to cut their payroll figures worldwide, this lay-off drive has made its way to India as well.
- Impact on Indian workers: Indian workers, including expatriates and local employees, in both the traditional IT sector and the tech-based startup sector have been affected.
- Slowdown in funding in 2022: Despite a strong start, funding in India began to slow down in 2022, with third-quarter funding falling to a two-year low.
- Rising interest rates and cost of capital: Rising interest rates have meant that the cost of capital has increased and venture capitalists have to be more selective about how they deploy funds in this funding winter.
- Restructuring and cost-cutting for Indian tech startups: Indian tech startups are under pressure to cut costs and restructure their businesses in search for profitability. As a result, startups, including unicorns have engaged in broad-based retrenchments.
Retrenchment conditions according to Industrial Disputes Act
- One month notice with reasons is must: Employers must give a one-month notice with reasons for retrenchment to workers who have been in continuous service for at least a year.
- Must provide compensation: Employers must give retrenchment compensation.
- Notice shall be served: A notice in the prescribed manner must be served on the appropriate government.
- Principle of last come first go shall be followed: Employers must follow the principle of last come, first go while retrenching employees.
Concerns for contract workers
- Employers often skirt legal requirements by asking for voluntary resignations to remain outside the scope of retrenchment provisions.
- In any case, these mandates only apply to non-managerial employees; managerial employees are governed by their employment contracts.
- There are no similar protections available to gig or contract workers.
Conclusion
- Even as India seeks to lead a digital and technologically-driven world, it is important to note that the tech sector is not immune to harsh macroeconomic realities. It is crucial for the government and private sector to work together to mitigate the impact of layoffs on workers and to ensure that the industry continues to grow and create opportunities for all.
Mains question
Q. Layoffs have been frequently reported in the news recently. In this context, briefly explain the term layoffs and discuss the factors contributing to them? Highlight the impact of layoffs in India.
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From UPSC perspective, the following things are important :
Prelims level: Census
Mains level: Census importance, challenges and implications of postponing
Context
- India aspires to be a $10 trillion economy by 2035. To achieve this, conducting population Census, due in 2021 but postponed indefinitely because of Covid, is necessary. Such data is essential for planning at the village or block level to usher in economic and social development, ensure better governance, and increase the transparency of public schemes and programmes.
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What is a census?
- It is nothing but a process of collecting, compiling, analysing, evaluating, publishing and disseminating statistical data regarding the population.
- It covers demographic, social and economic data and is provided as of a particular date.
What is the purpose?
- To collect the information for planning and formulation policies for Central and the State Governments.
- The census tells us who we are and where we are going as a nation.
- It helps the government decide how to distribute funds and assistance to states and localities.
- The census data is widely used by National and International Agencies, scholars, business people, industrialists, and many more.
Why conducting a Census has become a prerequisite for economic development?
- Lack of complete civil registration system: Since many states (and districts) lack a complete civil registration system with a full count of birth and death data, demographers face enormous challenges in providing population counts at the district level. In several instances, estimates tend to be far off the mark, especially for newly formed districts and states.
- Changing pattern of migration: migration data collected in the Census has great implications for economic activities and social harmony. As India progresses economically, the pattern of migration has been changing in unprecedented ways. The migration pattern in India in the present decade is very different from what the data in Census 2001 and 2011 suggest. Hence, in the absence of updated data, it is difficult to draw conclusions about migration in India.
- Other surveys does not provide comprehensive data: The Census counts everyone across regions, classes, creeds, religions, languages, castes, marital status, differently-abled populations, occupation patterns etc. Most national-level surveys such as NFHS and NSSO do not have representative data at the population subgroup level, unlike the former. The existence of numerous faiths and languages as well as the expansion or extinction of such communities will be known only via population Census.
In the absence of it how demographers collect data?
- Estimates using past census information: In the absence of updated data, demographers estimate the annual population count at the district level using past Census information for the intercensal or postcensal period. Say, to estimate the population of a district in India in the year 2015, they use the district-level population growth rate between the 2001 and 2011 Census.
- Such estimates are fair for maximum of 10 years: Such demographic exercises give reasonably fair estimates when the year of population estimation is within the range of a maximum of 10 years. Beyond this period, estimations can be erroneous, particularly at the district level due to dynamic patterns of population components, among them fertility, mortality and migration.
- Assumptions based model in faster demographic transition: Many districts of India are experiencing a faster demographic transition with varying fertility and mortality rates. So, using the growth rate of 2001-2011 for the period after 2021 becomes more of an assumption-based model than a model that reflects empirical reality. Covid-19 further makes the situation complex as it impacts the fertility and mortality situation in the country.
- Indiaâs population has since increased three-fold to 1.21 billion in 2011.
- Experts believe the economic status of the dominant OBC castes have improved in the past 80 years and certain castes have not benefited as much.
- So, the new caste census is required to measure the economic and social well-being of all castes.
History and a Way ahead
- India has a long history of conducting Census without interruption from 1881 with the rare exception of Assam in 1981 and Jammu Kashmir in 1991 due to socio-political unrest and secessionist movements.
- Conducting it regular at the national and sub-national levels has been a matter of pride for India.
- It has to be continued until India achieves a fool-proof civil registration system and a dynamic National Population Register.
Conclusion
- Conducting the population Census is a mammoth task, of course. Full involvement of the government system is necessary to organise it. But the it is necessary since it forms the basis of all the plans and programmes that the government wants to implement. Postponing the it has immediate and long-term negative consequences for India. The government and other stakeholders should take urgent steps to conduct the Census as early as possible.
Mains question
Q. What is census? Why conducting a Census has become a prerequisite for economic development and also discuss the impact of delayed census.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IPR policy
Mains level: Intellectual property rights , reforms and concerns
Context
- In May 2016, the then Department of Industrial Policy and Promotion (now known as the Department for Promotion of Industry and Internal Trade) under the Ministry of Commerce released the 32-page National IPR Policy. The overall purpose of this document was to spell out the governmentâs comprehensive vision for the IPR ecosystem in the country towards shaping a more innovative and creative Bharat.
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What is a Patent?
- A patent is an exclusive set of rights granted for an invention, which may be a product or process that provides a new way of doing something or offers a new technical solution to a problem.
- IPR refers to the legal rights that protect an individual’s or company’s creations and inventions (such as inventions, literature, music, and symbols) from being used or copied by others without permission.
- IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create.
- By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish.
Three important objectives of National IPR policy document
- Strong and effective IPR laws: Under the head Legal and Legislative Framework, the goal was to have strong and effective IPR laws, which balance the interests of right owners with larger public interest.
- Modernise and strengthen IPR administration: Under Administration and Management, the objective was to modernise and strengthen service-oriented IPR administration; and
- Strengthening adjudicatory mechanism: Under Enforcement and Adjudication, the focus was to strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements.
Changes in IPR ecosystem so far
- Structural and legislative changes: Over the last six years, the IPR ecosystem in this country has witnessed both structural and legislative changes.
- Intellectual Property Appellate Board (IPAB): IPAB was dissolved in April 2021 as part of tribunal reforms, and its jurisdiction was re-transferred to high courts.
- Dedicated IP Division: This was followed by the establishment of dedicated IP benches the IP Division by the Delhi High Court, arguably the countryâs leading court on the IPR front, for speedier disposal of IPR disputes.
- IP friendly environment: Such measures, one presumes, are intended to convey to investors and innovators that Bharat is an IP-savvy and even IP-friendly jurisdiction without compromising on national interest and public health commitments.
- For instance: This is evident from the very same National IPR Policy which, among other things, expressly recognises the contribution of the Indian pharmaceutical sector in enabling access to affordable medicines globally and its transformation to being the pharmacy of the world.
What are the concerns?
- Patent-friendliness, rather patentee-friendliness: It appears that the patent establishment of the country has drawn a very different message it has gone on an overdrive to prove its patent-friendliness, rather patentee-friendliness, in the pharmaceutical sector at the expense of public health and national interest respectively.
- Evergreening of patents on critical drugs: Evergreening patents on drugs which relate to treatment of diabetes, cancers, cardiovascular diseases and other serious conditions continue to be granted to pharmaceutical innovator companies by the Indian Patent Office.
- Enforcements at the expense of statutory rights: Worse, they are regularly enforced through courts at the expense of the statutory rights of generic manufacturers and to the detriment of patients.
- Unavailability of affordable drugs: The delayed entry of generic versions of off-patent drugs affects adversely the availability of affordable medicines to patients in a lower middle-income country such as Bharat where most middle-class families and below are only a hospital-visit away from dipping into their hard-earned savings.
Way ahead
- It must be understood that IP legislations such as the Patents Act do not exist for the sole benefit of IP right owners.
- Patent bargain is in which the society is expected to benefit from dynamic innovation-based competition between market players.
- Clearly, there are four stakeholders under the Patents Act the society, government, patentees and their competitors.
- Each of these stakeholders has rights under the statute which makes all of them right owners.
- To interpret, apply and enforce the Act to the exclusive benefit of patentees, and that too evergreening patentees, is to abridge and reduce to a naught the legitimate rights of other stakeholders, leading to sub-optimal and worse, anti-competitive market outcomes.
Conclusion
- It is one thing to operate under the understandable belief that Bharat needs to add layers to its IPR ecosystem to attract investment. However, it is entirely another to equate IPR-sensitivity with a pro-patentee position at the expense of public health obligations and long-term national interest. Make in India must be reconciled with Atmanirbhar Bharat, and in the event of conflict between the two, the latter must prevail for Bharat to retain its position as the pharmacy of the world.
Mains question
Q. What is Intellectual property rights? Discuss the changes taken place in India’s IPR ecosystem so far and highlight the concerns.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Particulars of Republic day parade
Mains level: Women in combat, advantages and challenges
Context
- Watching women lead many of the contingents in the 74th Republic Day parade in New Delhi was encouraging. Their presence was heartening and something for future generations of girls to emulate. While much was made about the induction of women fighter pilots, we need to see how many more have been inducted since then.
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- Nari shakti dominated the parade: Nari Shakti dominated the 74th Republic Day parade as women officers led the marching contingents of the armed forces, CRPF, Akash missile system and Armyâs Daredevil team
- first ever women armed police battalion: In a first, the marching contingent of the CRPF, which has the distinction of raising the first-ever women-armed police battalion in the world, had all women personnel this time.
- BSF women on the borders: Also, for the first time, BSF women soldiers in colorful uniforms who have been deployed along the desert border with Pakistan joined the parade as part of the camel contingent.
Light on whether induction of women is mere tokenism?
- Opening up of opportunities for women: Among the best developments of recent times is the opening of opportunities for girls and young women in Sainik schools and the National Defence Academy.
- As more women on the field, less logistical issues: Once they don the uniform and there are many more women on the field, then the logistical issues will become less relevant.
- Promotion for the rank of colonel: The recent news about women being considered in the promotion board for the rank of colonel and subsequently, to command units is tremendously empowering.
- Military remains an excellent example: The military is an excellent place for women to work in and it is the militaryâs responsibility to not break that faith.
Women in commands: Significance
- Leadership opportunity: Despite working at the grassroots level as junior officers, women officers hitherto did not get an opportunity to prove their leadership skills as they were not eligible to command a unit.
- Gender parity: Most importantly, it grants women officerâs parity with their male counterparts.
- Higher ranks: Earlier promotions were staff appointments which are more administrative in nature and not purely command appointments in which an officer commands troops on ground.
- Benefits after permanent commission: With a longer career in the Army, women officers will be considered for promotions, including to the rank of Colonel and beyond.
How are women still discriminated?
- Women are still not eligible in core combat arms such as Infantry, Mechanised Infantry and Armoured Corps.
- Indian Army is not open to women fighting wars at the borders as foot soldiers.
- Much of this resistance stems from past instances of male soldiers being taken as prisoners of war and tortured by the enemy.
- However, the Army has recently decided to open the Corps of Artillery, a combat support arm, to women.
What more needs to be done?
- Promoting gender equality at the Parade: It is a great idea to have womenâs contingents, with the theme of Nari Shakti, at the parade. However, we must refrain from describing this as an opportunity that has been given to them.
- Challenges in achieving gender equality in frontline forces: The slow and steady induction of women in ranks below the officer level in a paramilitary force like the Assam Rifles is a far cry from enabling women to be part of the frontline force, as part of the Kumaon Regiment, for example. The regimentâs war cry may be Kalika mata ki jai, but it stops there.
Way ahead
- The military, just like any other institution, is but a reflection of society and, like the other institutions, it is also subject to reform and change for the advancement of society as a whole.
- We must push for this alongside cheering for Captain Shikha Sharma, the first woman in the Daredevil squad, who so effortlessly displayed her skills at the parade.
Conclusion
- Republic Day parade did well to celebrate Nari Shakti. But the day after R-Day, much more needs to be done on inclusion of women in the force.
Mains question
Q. Nari shakti said to be dominated the India’s 74th republic day parade. In this context highlight the Significance Women in commands and discuss the challenges.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indian Constitution
Mains level: Constitutional morality and features of Indian constitution a
Context
- This Republic Day, as India marks the completion of 74 years of its constitutional functioning, the moral and ethical spirit of the Constitution that has phenomenally shaped the trajectory of constitutional democracy, needs to be delved into. To adequately comprehend the promise and practice of the Indian Constitution, it is crucial to unpack its underlying moral or ethical tenets that have shaped or has been shaping the discourse of constitutionalism in India.
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- Constitution for governance: Constitutions are primarily seen as the legal edifice that prescribes the fundamental principles and rules crucial for governing a nation.
- Legal guiding document: The Indian Constitution, as the revered guiding document, for governing the post-colonial independent nation, consists of the prescription, pronouncements, and provisions that gave shape to Indiaâs legal-political system of governance.
- Contains ethical values: Beyond the legal directives and provisions, the document reflects a set of normative ethical values which the Indian Constitution makers perceived as integral for laying the foundation of the Indian Republic.
- Basic premise of Constitutional morality: Such constitutional predilection towards a set of âsubstantive moral entailmentsâ that goes beyond the legal-doctrinal reading of the Constitution entails the basic premise of constitutional morality.
What is mean by Constitutional morality?
- Constitutional morality refers to the set of moral principles and values that are reflected in the Indian Constitution and considered important for the proper functioning of Indian society.
- This includes not only legal rules but also broader ethical guidelines for how the country should be governed.
Contextualizing constitutional morality
- Constitutional Morality to Understand Democracy in India: The premise of constitutional morality needs to be extrapolated to better understand the larger ethical dynamics that have consolidated the form and substance of democracy in India.
- Two dimensions of representative democracy: The practise of representative democracy is constituted by two dimensions procedural democracy as well as substantive democracy. The former encapsulates the practise of electoral democracy while the latter also includes the larger substantive or qualitative impact of electoral democracy on the lives of the people.
- The resilience of constitutional democracy in India: Despite the apprehensions raised at the time of independence as India was dubbed as an âimprobable democracyâ, constitutional democracy in India undoubtedly remains stable and durable, manifesting its unflinching resilience in the last seven decades.
- The ethical drivers of India’s vibrant democratic continuity: The success of Indiaâs vibrant democratic continuity, in spite of the humongous challenges of multi-dimensional diversity, geographical, and demographic expanse and other socio-economic hindrances can be attributed to the moral and ethical drivers of the Indian Constitution that needed to be deciphered further.
Ethical motivation and democracy
- The Democratic Ethic of the Indian Republic: The book, Politics and Ethics of Indian Constitution, notes that the Constitution at its very inception identified itself to belong to the âpeopleâ underlining the democratic ethic of the Indian Republic. The Constitutionâs genuinely egalitarian project got manifested in the granting of the universal adult franchise to all sections of people in India.
- Right to vote: India, by virtue of its constitutional inclination towards inclusivity, commenced universal political enfranchisement immediately after the independence while the right to vote has been granted to women in stable western democracies much later after their independence.
- The autonomous election commission and free and fair elections: The constitutionally designated Election Commission in India functions as an autonomous body and has remained successful in conducting largely free and fair elections. Voter turnout has remarkably increased since then specially women to be mentioned. Also, the instances of major electoral violence have also declined with time.
- Political participation and equal opportunity: In tandem with the principle of inclusiveness based on the idea of equal political opportunity that the Indian constitution espoused, India witnessed a gradual increase in the political participation and representation of the hitherto marginalised and weaker sections of people.
- Strengthening democratic credentials through fundamental rights: The fundamental rights rolled out by the Constitution have acted as an extremely helpful instrument for strengthening Indiaâs democratic credentials by making the âmodern citizenâ aware of their political, legal and civic rights based on the inalienable principle of individual liberty.
- Welfare state by Directive Principles of State Policy: The Indian Constitution includes important but non-enforceable provisions for welfare in the Directive Principles of State Policy (DPSP). These provisions have helped to expand welfare and development programs in electoral politics, and have given many people access to basic necessities for a decent life, in line with the democratic ideal of a better life for all.
Conclusion
- The values of freedom, fraternity, equality and social justice in the Indian Constitution have enabled inclusive participation and given citizens the power to demand welfare and development. Thus, the inextricably embedded values of Indiaâs constitutional morality have played a pivotal role in strengthening the ethical vision of democracy, despite challenges, further enhancing Indiaâs democratic resilience.
Mains question
Q. What do you understand by mean constitutional morality? Despite of challenges Indiaâs constitution showed remarkable democratic resilience. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: C+1 strategy
Mains level: C+1 strategy and India's adavtages
Context
- In January 2023, India surpassed China to become the worldâs most populous country with a population count of approximately 1.417 billion as against Chinaâs 1.412 billion, as estimated by the World Population Review (WPR). This creates both opportunities and challenges for India.
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The global turmoil and China as enablers of the Indian growth story
- There are three factors that have enabled the Indian growth story.
- Overdependence on specific economies: If the pandemic had had one crucial lesson for the global economy, it must be reducing the overdependence on China-specific Global Value Chains (GVCs). As is evident from the pandemic, the subsequent Ukraine-Russia war or the recent disastrous COVID-19 surge in China the overdependence on specific economies is bound to have cascading effects on the world economy because of the macroeconomic shocks they produce.
- Glocalised models of economic partnerships: Countries now strive to strike the right balance between globalisation and localisation, through bilateral and multilateral platforms characterised by leveraging sub-regional comparative advantages. To a large extent, these emerging forms of glocalised models are also based on controlling Beijingâs political and economic prowess in the Indo-Pacific and beyond, where India plays an active role.
- Use of technology: There is no doubt that the pandemic has provided an uptick in the use of technology ranging from the provision of social security payments at the grassroots to government-level conferences.
China plus one (C+1) strategy
- The US-China trade war and the pandemic-induced supply chain disruptions emanating from China have indeed paved the way for many western corporates to consider a China Plus One (C+1) strategy.
- The strategy would entail diversifying investments from China to other countries, to mitigate the economic and geopolitical risks associated with the former.
- While many also hail Vietnam as another economy to be in the race of attracting investments fleeing China, India could be the potential frontrunner in the C+1 game.
- India’s economic advancement: India has a demographic advantage over China, with a larger percentage of its population under 30. This young population is expected to drive consumption, savings, and investments, leading to India’s goal of a multi-trillion dollar economy.
- Low cost of labour is an advantage: India has a low cost of labor and other forms of capital, making production costs lower and increasing competitiveness in international markets. India’s labor cost is also half that of Vietnam, making it a strong player in electronics and semiconductor manufacturing.
- India’s heavy infrastructure investment: A heavy investment in physical infrastructure through the National Infrastructure Pipeline (NIP) is expected to reduce costs in manufacturing sectors and cut transportation time and costs by 20%. This is in contrast to China, where multiple companies handle different parts of the transportation process, increasing costs
- Indiaâs conducive business environment: Recent policy interventions in India such as the Production Linked Incentive (PLI) scheme, tax reforms, liberalization of FDI policies, setting up of land pools and organizing business summits have helped attract investments to the domestic economy. These efforts, driven by the Make in India initiative, have also been supported by efforts to promote competitive federalism and reduce transaction costs of doing business.
- India’s digital advantage: India’s high internet penetration at 43% allows for digital skilling initiatives to bring returns across various economic sectors, particularly services. A combination of home-grown technologies and greater access to Google and Facebook, which are banned in China, gives Indian youth a digital edge.
- As English is the second language provides ease of communication: the prevalence of the English language skill set in the young Indian populace undoubtedly puts India ahead of China. As English is the second official language in the Indian states, it provides business executives with ease of communication in conducting business with North American and European clients.
- Well balanced economic partnerships: India’s economic partnerships are characterized by utilizing sub-regional comparative advantages and controlling Beijing’s political and economic power in the Indo-Pacific. India’s decision to not join the RCEP in 2020 to protect its domestic market and curb trade deficits sends a strong signal of its disassociation with Beijing in trade partnerships. The CEPA signed with the UAE in 2022 is expected to increase two-way trade to $100 billion in five years by opening access for Indian exporters to Arab and African markets.
- Dynamic Indian diplomacy: India has strengthened its economy through diplomatic partnerships and trade agreements, such as the QUAD, I2U2, and agreements with Australia, Canada, the European Union, and African countries. These partnerships have provided Indian businesses with greater access to finance, technology, and new markets. As India assumes the presidency of the G20 and the Shanghai Cooperation Organization this year, it is well-positioned to navigate changing globalisation trends and be a strong voice for the Global South.
- Most important is the large domestic market: India’s large domestic market with a population of 1.3 billion and increasing incomes at 6.9 percent per annum offers a competitive alternative to China’s massive domestic market. With a population base of 98 million, Vietnam’s market is much smaller in comparison.
Conclusion
- Indian economy that has risen from the ashes like a phoenix after a year of negative growth caused by the pandemic-led lockdown. Indiaâs 74th Republic Day, therefore, should not merely mark a remembrance of the past or a celebration of adoption of the worldâs largest and most comprehensive constitution, but should also be a celebration of the dazzling future of a roaring economy that will show light to a dreary world.
Mains question
Q. What is China plus one (C+1) strategy? Discuss why it is said that India will surge ahead in C+1?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-Saudi Arabia bilateral trade and relationship
Context
- Saudi Arabia and India ties have undergone a significant transformation in recent years. The camaraderie between the two nations is rooted in our cultural and civilisational ties. The Kingdom and India share mutual respect and appreciation which opens doors for our collaboration and partnership. These ties have been cemented by diplomatic visits made by leaders from both countries.
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Recent visits by the leaders of India and Saudi Arabia
- Visit by Prince: The visit of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Deputy Prime Minister then, to New Delhi in February 2019
- PM Modis visit to Saudi: Prime Minister Narendra Modiâs visit to Riyadh in October of the same year are two watershed moments in our journey of strategic ties.
Outcome of such visits
- Number of MoUâs for multiple sectors: During these visits, both nations concluded a number of MoUs for multiple sectors including energy, civil aviation, security, defence production, regulation of medical products, strategic petroleum reserves, small and medium scale industries, and the training of diplomats in our respective academies.
- Strategic Partnership Council (SPC) and working group: These two high-level visits anchored the historic formation of Strategic Partnership Council (SPC) at the leadership level. The SPC also saw the formation of working groups in multiple sectors significant to both nations.
- Comprehensive review of agreements and new opportunities: Since 2019, the Kingdom of Saudi Arabia and India have taken a comprehensive review of the agreements and have explored opportunities to work together.
- Trade extended to other sectors apart from energy: While our ties stem from energy security, over the years they have percolated into many other sectors, including pharma, IT and telecommunications. The Kingdom alone accounts for 18 per cent of Indiaâs crude oil import.
- India is the second largest trading partner: Saudi Arabia is also the fourth largest trading partner of India while India is the second largest trading partner of Saudi Arabia with our bilateral trade close to $43 billion.
- Conducive business environment in the Kingdom: A number of leading Indian companies have also set up a base in Saudi Arabia, signifying the conducive business environment in the Kingdom.
- Joint ventures signifies trust and strong relationship: There are close to 750 Indian companies registered as joint ventures or 100 per cent owned companies based in Saudi Arabia, further indicating the strong relationship and trust between the nations.
- Huge investment via Public Investment fund: Since the formation of our SPC, the Public Investment Fund (PIF) has made investments of about $2.8 billion in digital and retail sectors of India. Similarly, Indian investments in Saudi Arabia have also reached $2 billion which are distributed amongst different sectors.
- Shared vision of the two: Saudi Arabiaâs Vision 2030 and its 13 vision realisation programmes are closely aligned with Indiaâs flagship initiatives of Make in India, Start-up India, Smart Cities, Clean India, and Digital India. Both economies have seen robust growth in the last decade.
- Close cooperation in important fields: Both nations have now been working closely together in important fields to achieve mutual and strategic objectives. This was in part achieved by allocating funds to the Coalition for Epidemic Preparedness and Innovation (CEPI), The Global Alliance for Vaccines and Immunisations (GAVI), and other international and regional health organisations and programmes.
Saudi Arabiaâs Vision 2030
- Economic and social reforms: Under the aegis of Vision 2030, Saudi Arabia aims to transform its economy and society. Saudi Arabia is undergoing path-breaking economic and social reforms. The Kingdom has been working towards fostering its growing investment sector that will stimulate the economy.
- Cultural investment: The Kingdom, as part of Vision 2030, has also been investing in its culture with events such as the Red Sea Film Festival, which is dedicated to celebrating excellence in cinema and fostering the resurgent creative energy of Saudi and Arab filmmakers.
- Investment for sustainable infrastructure: The launch of the Events Investment Fund (EIF) by HRH Crown Prince Mohammed bin Salman aims to develop a sustainable infrastructure for the culture, tourism, entertainment, and sports sectors across the Kingdom. The fund seeks to develop world-class sustainable infrastructure including indoor arenas, art galleries, theatres, conference centres, horse-racing tracks, auto racing tracks, and other facilities across the Kingdom.
Way ahead
- The opportunities presented under Vision 2030 can be leveraged by India to invest in the Kingdom.
- With India assuming the G20 presidency, it paves the way for the perfect opportunity to sustain meaningful dialogue around accelerated and inclusive growth while achieving Sustainable Development Goals as the global economy navigates through the post-Covid era.
Conclusion
- Amidst current global circumstances, India continues to successfully manoeuvre itself towards greater economic progress, built on strong foundations of sustainability and a thriving local community a feat and vision that it shares with its close partner Saudi Arabia. As India celebrates its 74th Republic Day with a vision of progress and prosperity, strengthening collaboration between India and Saudi Arabia will drive both economies and promote peace and stability in the region and the world.
Mains question
Q Discuss the key developments in the strategic relationship between Saudi Arabia and India. Highlight the growing bilateral trade.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SCO
Mains level: SCO and India- Pakistan relation
Context
- A meeting of the Shanghai Co-operation Organisation (SCO) that India will host in May is expected to bring together foreign ministers of the regional grouping, which includes China, Russia, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan. Bilateral ties with Pakistan and China are at a new low. But multilateral settings are often viewed as opportunities for countries with problematic relations to find a way forward.
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The crux
- India has invited Pakistan’s foreign minister to a meeting of the Shanghai Co-operation Organization (SCO) that India is hosting in May this year.
- Background: After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
- Original shanghai five: The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
- SCO formation: The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
- Security is the priority: Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority.
- Three evils: The fight against the âthree evilsâ of terrorism, separatism and extremism has become its mantra.
- Expanded areas of cooperation: Today, areas of cooperation include themes such as economics and culture.
Do you know SCO RATS?
- Regional Anti-Terrorist Structure (RATS) is a permanent organ of the SCO which serves to promote cooperation of member states against the three evils of terrorism, separatism and extremism.
- It is headquartered in Tashkent.
- Its head is elected to three-year term.
- Each member state of SCO sends permanent representative to RATS.
Where India and Pakistan stand today?
- Changed terms of engagement: Under Prime Minister Narendra Modi, India has begun to reset the terms of the engagement agenda.
- Indiaâs improved diplomatic position: Indiaâs transformed relations with the US, the resolution of Delhiâs dispute with the global nuclear order, and getting the West to discard its temptation to mediate on Kashmir enormously improved Indiaâs diplomatic position.
- Economic growth: The most consequential change has been in the economic domain. India has recently overtaken the UK to become the fifth largest economy in the world.
- Broken Pakistan: The persistent neglect of economic challenges left Pakistan in an increasingly weaker position in relation to India. If India has inched its way into the top five global economies, Pakistan today is broken.
Indiaâs position on engagement with Pakistan
- Indiaâs approach in dealing with Pakistan today: The Ministry of External Affairsâ official spokesperson Arindam Bagchi recently said âWe we have always wanted normal neighbourly relations with Pakistan. But there should be a conducive atmosphere in which there is no terror, hostility or violence. That remains our position.â
- What Pakistan says: Deputy Foreign Minister Hina Rabbani Khar said in Davos that she does not see a partner currently in the Prime Minister of India to take this project of peace-building forward.
Conclusion
- When the multilateral meeting is to be hosted by a country that is on one side of the rift, the first step is for the other side to accept the invitation. An election is upcoming in Pakistan, and having committed themselves to a position, both Bhutto and Khar would be mindful that their actions must match their words. But despite this, if there is an opportunity for a thaw, India must not be the one to miss it. India need handle the hostile neighbor with the right approach.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: particulars of G20
Mains level: G20 and India's opportunity and global governance
Context
- The G20, or Group of 20, has emerged as the primary venue for international economic and financial cooperation. India assumed the presidency of the powerful grouping G20 on 1 December 2022, symbolising the motto and showcasing its philosophies of âVasudhaiva Kutumbakamâ, or âOne Earth, One Family, One Futureâ.
What One Earth, One Family, One Future suggests?
- India committed to making Indiaâs year of chairmanship one that will focus on âhealing our âOne Earthâ, creating harmony within our âOne Familyâ, and giving hope for our âOne Futureâ and LiFE (Lifestyle for Environment).
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What is Troika?
- The troika means previous, current, and incoming presidency which comprise Indonesia, India, and Brazil, respectively.
- The troika is leading the global agenda at G20 in the current turbulent economic times.
- Beyond being a forum for policy discussions, the G20 plays the role of reconciling the irreconcilable.
- The number of talks and years the group has been together has resulted in a mixed bag of success.
- Democratising the process of setting the agenda: While setting up the global agenda, it is critical to bring together all the partner nations to understand their priorities. It will ensure diversity, equity, inclusivity, sustainability, transparency, and long-term commitment. This can also help ensure that the domestic policies are aligned and support global priorities.
- Strike a balance between the needs of developing and developed countries: Since India has a greater responsibility to shoulder, it should not work and seem biased. Similarly, developed nations should instead exercise greater caution with their rich resource pools. To create a win-win scenario rather than a zero-sum game, we must think in terms of multilateralism.
- Critical to focus on determined priorities: It is critical to prevent the G20 from suffering as other multilateral forums such as the World Trade Organization (WTO) do from an over-expansion of its mandate. While being ambitious in their approach, it is crucial to set defined, limited long-term priorities.
- Set concrete, measurable, and tangible goals: Measurable outcomes with short, medium, and long-term objectives are crucial. Financial considerations must be made in addition to ensuring inclusivity, sustainability, and accountability.
- Prevent reinventing the wheels: To encourage faster mutual growth, it is necessary to prevent duplication of efforts. It is important to prevent duplication of existing international institutions, fragmentation of financial resources, and the weakening of the coordinating role of the existing multilateral organisations. The âcooperative and collaborative frameworks are key to successful outcomes.
- Prejudice-free dialogues are required to promote solidarity: Prejudices on international platforms can pose a threat to global security. Dialogue as an antidote is a force for conflict prevention, management, and resolution.
- Mutual safeguarding is necessary: Mutual safeguarding from disguised elements of neo-colonialism and hegemony is essential for cutting through the socio-cultural and geopolitical barriers between the Global South and the Global North.
- The principle of Antyodaya (rise of the last person:): The global lens must capture every aspect of a community through inclusive dialogues, from the most marginalised to the most privileged. It is crucial to set the vertical and horizontal plans on a global and national level with the âlast person standing in lineâ in mind.
Indiaâs current global Image
- India for global governance: While Indiaâs successes are being assessed and unprecedented hopes are being expressed about our future, the countryâs trust in the global governance architecture is evident through several examples from the recent past, like the roll-out of COVID-19 vaccines in India as well as remarkable vaccine diplomacy initiative âVaccine Maitriâ.
- Fastest growing economy: With one of the worldâs largest and fastest-growing economies, the country has earned its stripes during tough external and internal times.
- India among the tops in global climate change performance index: Similarly, India has been ranked among the top five countries under the global Climate Change Performance Index. Moreover, it has taken the lead in spearheading the transition towards cleaner energy sources.
- Social capitalism nature of economy: With its social capitalism, India has earned a geopolitical sweet spot in the world.
Conclusion
- India can lead the G20 agenda in a unique way the global community has never witnessed. Keeping the essential principles in mind when developing agendas, action-oriented plans, and decisions through collaborative efforts have the potential to yield revolutionary and positive results. The vision of shaping a new paradigm of human-centric globalisation is promising, provided the Global North and South communities provide equal support.
Mains question
Q. India assumed the presidency of the powerful grouping G20 with a motto One Earth, One Family, One Future. In this backdrop how India can set up an agenda for future and not only for a period of presidentship.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Uniform Civil Code analysis
Context
- Once again there is a clamour to replace diverse personal laws with a Uniform Civil Code (UCC), applicable to all Indians, irrespective of religion, gender or caste. Some states (for example, Uttarakhand) are already drafting one.
- A Uniform Civil Code is one that would provide for one law for the entire country, applicable to all religious communities in their personal matters such as marriage, divorce, inheritance, adoption, etc.
- Article 44, one of the directive principles of the Constitution lays down that the state shall endeavor to secure a Uniform Civil Code for the citizens throughout the territory of India.
- These, as defined in Article 37, are not justiciable (not enforceable by any court) but the principles laid down therein are fundamental in governance.
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Inheritance laws at present
- Hindus are governed by the 2005 Hindu Succession Amendment Act (HSAA);
- Muslims by the Muslim Personal Law (Shariat) Application Act, 1937;
- Christians and Parsis by the Indian Succession Act 1925 (amended by both communities subsequently), and
- Tribal groups are still subject to custom.
What makes unification difficult?
- Distinction in Hindu inheritance laws: Hindu inheritance distinguishes between separate property and coparcenary joint family property, giving coparceners rights by birth. No other personal law makes this distinction.
- Within Hindu law itself, states diverge: Kerala abolished joint family property altogether in 1976, but other states retained it, and matrilineal Hindus (as in Meghalaya and Kerala) have different inheritance rules from patrilineal Hindus. Even among the latter, Hindus historically governed by Dayabhagha (West Bengal and Assam) differ from those in the rest of India who were governed historically by Mitakshara.
- unrestricted right to will: The right to will is unrestricted among Hindus, Christians and Parsis, but Muslim law restricts wills to one-third of the property; and Sunni and Shia Muslims differ on who can get such property and with whose consent.
- Complex gender equal laws specifically in Muslims: for while the inheritance laws of Hindus, Christians and Parsis are largely gender equal today, under Muslim personal law, based on the Shariat, womenâs shares are less than menâs, generically. Being embedded in the Koran, this complex structure of rules leaves little scope for reform towards gender equality.
- Land is treated differently from other property: The HSAA 2005, for instance, deleted the clause which discriminated against women in agricultural land, but the 1937 Shariat Act governing Muslims continues to exclude agricultural land from its purview, leaving a major source of gender inequality intact. Although Tamil Nadu, Andhra Pradesh and Kerala later amended the Shariat Act to include agricultural land, in many other states, landed property is still subject to tenurial laws which exclude Muslim women from inheriting it, contrary to their rights under the Shariat.
- Social justifications on who deserves to inherit differ: Hindus emphasise sapinda (âshared body particlesâ in Mitakshara and religious efficacy in Dayabhaga); other communities privilege blood or marital ties; and yet others favour proximity of childrenâs post-marital residence to provide parents care in old age.
Main concern: Deflection from the original aim of Gender equality
- Today, the UCC debate has become enmeshed with identity politics, deflecting it from the original aim of gender equality. And the mingling of legal reform with religious identity has sharpened political divisiveness.
Answer probably lies in: The discussions among womenâs groups in the 1990s
- Encourage each religious community to pursue its own reform for gender equality.
- Constitute a package of gender-just laws which would coexist with personal laws, and a person could choose one or the other upon reaching adulthood.
- Constitute a gender-equal civil code applicable to all citizens without option, based on the constitutional promise of gender equality, rather than on religious decree or custom.
Conclusion
- For a start, rather than one code covering inheritance, marriage, etc., we should discuss each separately. On inheritance, which is the most complex, a secular law based on constitutional rights will clearly go the farthest towards gender equality. Whether this is possible in todayâs divisive political environment remains an open question. But at least we should restart the conversation.
Mains question
Q. What is Uniform civil code? Highlight some of the major points which makes the unification difficult.
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From UPSC perspective, the following things are important :
Prelims level: Insolvency and Bankruptcy Code
Mains level: Insolvency and Bankruptcy Code, shortcomings and proposals to address the gaps
Context
- The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 brought about a structural change in the resolution architecture in the country. However, despite its promise, the IBC, in its functioning, has fallen short of expectations. Last week, the Ministry of Corporate Affairs invited comments on a fresh set of changes it is considering to bring about in the Code. This is a welcome step.
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What is Insolvency?
- Simply speaking, insolvency is a financial state of being one that is reached when you are unable to pay off your debts on time.
- Insolvency is essentially the state of being that prompts one to file for bankruptcy. An entity a person, family, or company becomes insolvent when it cannot pay its lenders back on time.
What is Bankruptcy?
- Bankruptcy, on the other hand, is a legal process that serves the purpose of resolving the issue of insolvency.
- Bankruptcy is a legal declaration of oneâs inability to pay off debts. When one files for bankruptcy, one obliges to pay off what is owed with help from the government.
What is the Insolvency and Bankruptcy Code 2016 (IBC)?
- The IBC was enacted in 2016 to simplify insolvency and bankruptcy proceedings, safeguard interests of all stakeholders (the firm, employees, debtors and especially creditors), and resolve non-performing assets.
- From a âdebtor in possessionâ regime, it was a shift to a âcreditor in controlâ one.
- IBC provides for a time-bound process for resolving insolvencies.
- The Insolvency and Bankruptcy Board of India (IBBI) is the regulator implementing the code and overseeing the functioning of stakeholders.
Why the IBC introduced?
- Increasing Non-Performing Assets: In 2016, at a time when Indiaâs Non-Performing Assets and debt defaults were piling up, and older loan recovery mechanisms were performing badly, the IBC was introduced to overhaul the corporate distress resolution regime in India.
- Time bound mechanism: To consolidate previously available laws to create a time bound mechanism with a creditor in control model as opposed to the debtor Âin Âpossession system.
- Two positive outcomes: When insolvency is triggered under the IBC, there can be just two outcomes: resolution or liquidation. liquidation means the process of winding up a corporation or incorporated entity
What are the shortcomings in the codeâs functioning?
- Timelines are not followed: Realizations of creditors have been lower than expectations, and the strict timelines prescribed in the Code for resolving cases have not been adhered to.
- Less realizable value: According to the most recent data, the total realisable value in cases resolved till September 2022 stood at only 30.8 per cent of the admitted claims.
- Average time is rising: The data also shows that 64 per cent of the ongoing cases have crossed 270 days. In fact, as per reports, the average time taken for cases to be resolved has risen, driven in part by more time being spent on associated litigation.
- Removing ambiguity and bringing the predictability: The changes aim to reduce the time for admitting cases and streamline the process by pushing for greater reliance on data with Information Utilities. Considering the delays in admitting cases, and the implications of recent judicial interventions, this proposal seeks to remove ambiguity, and bring about predictability in the process.
- Extending the pre-packed resolution to other firms: It has also been proposed that the pre-packaged insolvency resolution process that was introduced for micro, small and medium enterprises now be extended to other firms as well. While such a proposal should be appealing, so far very few cases have been admitted under this.
- A clear distinction between the real estate projects: A distinction is now being made between a particular real estate project and the larger corporate entity. The governmentâs rationale for doing so is that this could allow the corporate entity to continue on other projects, while the stressed project can be tackled separately.
- Changes to the manner in which proceeds will be distributed: Creditors will receive proceeds up to the liquidation value in line with the priority as prescribed under section 53 of the Code, and any surplus over such liquidation value will be rateably distributed between all creditors in the ratio of their unsatisfied claims.
Conclusion
- Attempts to improve IBC’s functioning are welcome. But some of the proposals need more careful examination. Changes to the Code should, after all, be driven by the objective of improving its functioning, and outcomes. This should be done keeping in mind the incentive structures of all stakeholders.
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From UPSC perspective, the following things are important :
Prelims level: Menstruation
Mains level: Menstruation a biological process and the debate over the mandatory leaves
Context
- On January 19, Kerala Chief Minister Pinarayi Vijayan announced on social media that the state government will grant menstrual leave for female students in all state universities under the Department of Higher Education.
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Background
- The announcement came shortly after the Cochin University of Science and Technology (CUSAT) decided to provide menstrual leave to all its female students after a representation made by the studentsâ union.
- Vijayan has described the governmentâs decision as part of its commitment to realising a gender-just society. The governmentâs claim should inaugurate a wider conversation.
What is Menstruation?
- Menstruation, or period, is normal vaginal bleeding that occurs as part of a woman’s monthly cycle.
- It is a normal process for girls and women who have reached puberty.
- Every month, girl or womenâs body prepares for pregnancy.
- If no pregnancy occurs, body gets rid of the lining in the uterus.
- The menstrual blood is partly blood and partly tissue from inside the uterus.
- The length of a period can be different for each person, but usually lasts for 3-7 days.
What is the idea behind the Menstrual leave?
- Paid leaves: Menstrual leave is a Policy of allowing women to take paid leave from work or school during their menstrual period.
- Allows to rest: This leave is specifically for the days when a woman is menstruating and is intended to allow her to rest and manage symptoms such as cramps and fatigue, which can be particularly severe for some women.
- Reducing the stigma: The idea behind menstrual leave is to help reduce the stigma associated with menstruation and acknowledge that it is a normal and natural bodily process.
- The menstrual cycle can be affected by external factors such as stress, changes in temperature and altitude, and even exposure to certain chemicals and toxins.
- This can cause changes in the length of the cycle, the intensity of bleeding, and the severity of symptoms.
- There is also a small percentage of women who experience menorrhagia, which is an excessive bleeding during menstruation. This can be caused by hormonal imbalances, fibroids, endometriosis, and other underlying medical conditions.
Debate over the mandatory Period leave
Advantages:
- Acknowledging the pain and discomfort: Making period leave available to students and, going forward, to women in the workforce, perhaps would be an important step towards acknowledging and addressing the often-debilitating pain and discomfort that so many are often forced to work through.
- Will help create workplaces more inclusive: Instituting period leave would help create workplaces and classrooms that are more inclusive and more accommodating.
- Reducing the stigma associated with menstruation: By making menstrual leave official leaves can help to reduce the stigma associated with menstruation and acknowledge that it is a normal and natural bodily process.
- Increase productivity: By allowing women to take time off during their menstrual period, they can return to work or school more refreshed and better able to focus on their responsibilities, which can lead to increased productivity.
Concerns:
- Context within which such policy decisions are taken matters: In a traditional society like India, where menstruation remains a taboo topic, it is possible that a special period leave could become another excuse for discrimination.
- The examples of similarly traditional societies like South Korea and Japan are not encouraging: Both countries have laws granting period leave, but recent surveys showed a decline in the number of women availing of it, citing the social stigma against menstruation.
- Medicalising normal biological process: There is also the risk of medicalising a normal biological process, which could further entrench existing biases against women.
- Mandatory leaves may hamper women hiring: There is a possibility that the perceived financial and productivity cost of mandatory period leaves could make employers even more reluctant to hire women.
- Reinforcing gender stereotypes: Implementing menstrual leave could reinforce the stereotype that women are weaker and less capable than men, which could have negative consequences for women in the long term.
Conclusion
- The ongoing conversation around menstrual leave and menstrual health is crucial and welcoming. It is also encouraging to see the governments are recognizing the importance of this issue. However, implementing menstrual leave as a legal requirement comes with its own set of challenges. It’s important for governments to navigate these challenges while ensuring that the ultimate goal of gender justice and equality is met.
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From UPSC perspective, the following things are important :
Prelims level: AI generated Art, Latest developments in AI
Mains level: AI generated Art, controversies and the question of ethics
Context
- Around the end of last year, social media spaces were trending with Lensa-generated images of online users. A subscription app, Lensa, makes graphic portraits, called âMagic Avatarâ images, using selfies uploaded by its users. As AI takes a strong foothold over the realm of art, are we equipped with mechanisms to define what is right and what is wrong in this domain in the first place?
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The case of Lensa app
- A subscription app, Lensa, makes graphic portraits, called Magic Avatar images, using selfies uploaded by its users.
- Celebrities worldwide stepped in to show how they looked so perfect in their avatars in a Lensa world.
- However, a few days later, hundreds of women netizens worldwide started flagging issues with their avatars. They pointed out how their avatar images had their waists snatched and showed sultry poses.
- Even after these women uploaded different pictures, Lensa generated hyper-sexualised, semi-pornographic images.
How art is generated using Artificial Intelligence?
- Uses algorithms based on textual prompts: AI art is any art form generated using Artificial Intelligence. It uses algorithms that learn a specific aesthetic based on textual prompts and, after that, go through vast amounts of data in the form of available images as the first step.
- Algorithms generate new images: In the next step, the algorithm tries to generate new images that tally with the kind of aesthetics that it has learnt.
- Role of artists with right keystrokes: The artist becomes more like a curator who inputs the right prompt to develop an aesthetically-fulfilling output. While artists use brush strokes in other digital platforms like Adobe Photoshop, in programmess like Dall-E and Midjourney, all it takes are keystrokes.
- For example: The generation of an artwork like Starry Night in the digital era. While Van Gogh would have taken days of effort to conceptualise and get the correct strokes and paint, in the AI art era, it is just a matter of the right textual prompts.
Can it truly capture the essence of humanity?
- The impact of AI-generation on the masses’ experience of art: Art is one of the few pursuits that makes life meaningful. It remains to be seen if AI-generated art will alienate the experience of art from the masses.
- AI takes away the satisfaction of creating artworks: AI-generated art dehumanises artworks. Perhaps the most satisfying aspect of generating an artwork lies in making it.
- The questions over the capability of AI to capture subtle human emotions: It is also doubtful whether AI art will capture the most subtle of human emotions. How much humour is âhumorousâ for AI? Can AI express grief and pain in the most profound ways as described by our poets? Can AI capture the enigmatic smile of Mona Lisa that makes one believe that she is shrouded in mystery?
- Midjourney is an AI based art generator that has been created to explore new mediums of thought.
- It is an interactive bot, which uses machine learning (ML) to create images based on texts. This AI system utilises the concepts and tries to convert them into visual reality.
- It is quite similar to other technologies such as DALL-E 2.
Arguments in favor of such art
- Thatre D opera Spatial generated by Midjourney: The question of whether AI art is causing âa death of artistryâ was raised, last year, when an entry called âThĂ©Ăątre DâopĂ©ra Spatialâ generated from Midjourney (an artificial intelligence programme) by Jason M Allen won the Blue Ribbon at the Colorado State Fair.
- Finding suitable prompts is no less than a genius art: AI artists like Allen think finding suitable prompts to create an artwork amounts to creativity and qualifies AI art as genuine or authentic.
- AI could democratise art world: Some artists believe AI art could democratise the art world by removing gatekeepers.
Concerns over the biases in data
- There is bias in this data available for AI inputs due to a lack of representation of the less privileged communitiesâ women, people of colour and other marginalised groups.
- Most of the training data for AI art currently emerges in the Global North and is often mired by the stereotypes of ableism, racism and sexism.
- Historically, art has performed a political function as a venue for dissent. Can AI art overcome these inherent biases in data to bring out meaningful political engagement?
Conclusion
- AI-generated art can bring new ideas and possibilities to the art world, but it is important to think about how it might change people’s experience of art and if it takes away the human touch. It is also important to question if AI can truly capture the emotions that make art so special. It’s best to approach AI-generated art with an open mind and consider both the good and bad.
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From UPSC perspective, the following things are important :
Prelims level: State of the Economy report
Mains level: Indian economy- Monetary policy and macroeconomic stability
Context
- The Reserve Bank of India (RBI) just-released State of the Economy report. The report suggests that while controlling inflation was a big concern in 2022, the bank may now be more focused on avoiding a recession in 2023. There is still debate about whether the recession will be short and mild or long and severe.
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What is State of the Economy report?
- A State of the Economy report is a paper that the Reserve Bank of India (RBI) releases which gives a summary of how the country’s economy is doing.
- The report talks about things like prices going up, how much the economy is growing, how many people have jobs, and the bank’s plan for managing money.
- The RBI uses the report to make decisions about interest rates and other economic rules, and it also helps people like economists, investors, and regular citizens understand the economy and make smart choices.
What the RBIâs State of the Economy report says?
- Retail inflation eased: Retail inflation eased to 5.72 per cent in December. In November, the inflation print was 5.88 per cent. The government has mandated the central bank to keep inflation at 4 per cent with a +/- 2 per cent band.
- Consumer price inflation within RBIâs upper tolerance limit: The report said the countryâs macroeconomic stability is getting bolstered with inflation being brought into the tolerance band. consumer price inflation in the last two months falling within the RBIâs six per cent upper tolerance limit
- Hopeful for the fiscal consolidation: It is even hopeful of fiscal consolidation underway at central and sub-national levels and the external current account deficit on course to narrow through the rest of 2022 and 2023. RBI said in a report that they want to keep prices steady at a certain level and bring it down to 4% by 2024.
- Narrowing CAD: Lead indicators suggest that the current account deficit is on course to narrow through the rest of 2022 and 2023.
- Stock market continue to outperform peers: The countryâs stock markets stood out in 2022 and continue to outperform peers on the strength of macroeconomic fundamentals and retail participation.
Who prepares the report and what the authors says?
- Views expressed are not of the institution: The report was prepared by RBIâs deputy governor Michael Patra and other RBI officials. The views expressed in the report are of the authors and not of the institution, the report said.
- India at a bright spot: Authors said the prospect of India as a bright spot amidst 2023âs encircling gloom is burnished by most recent history and current developments. By cross-country standards, the countryâs economy exhibited resilience through 2022 in the face of the triad of shocks war; monetary policy tightening; and recurring waves of the pandemic.
- India will be ahead of UK: According to the authors, at current prices and exchange rates, India will still be the 5th largest economy in the world in 2023, worth $3.7 trillion and will be ahead of the UK.
Back to basics: What is Monetary policy?
- Monetary policy is the macroeconomic policy laid down by the central bank.
- It involves the management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
- A contractionary policy increases interest rates and limits the outstanding money supply to slow growth and decrease inflation.
- During times of slowdown or a recession, an expansionary policy grows economic activity, by lowering interest rates, saving becomes less attractive, and consumer spending and borrowing increase.
- Predictions are too optimistic: The report’s release is significant, as it comes before the Union Budget for 2023-24. However, the report’s predictions may be too optimistic.
- Risks tilted towards growth than inflation: The balance of risks is currently tilted towards growth rather than inflation, both globally and domestically.
- Slowing down the pace of monetary tightening: It is appropriate for the RBI to slow down or pause the pace of monetary tightening. Monetary policy takes time to have an effect, so the impact of these increases may take a few quarters to realise actually.
- Wait and Watch Approach: The RBI can afford to adopt a wait-and-watch approach and allow the impact of past actions to be fully felt. This does not mean neglecting inflation, as bringing it down to 4% is still important.
Conclusion
- The world is, no doubt, viewing India favourably as an investment destination, both for its large domestic market and the need to de-risk from China in the current geopolitical environment. The governmentâs focus on improving the countryâs physical as well as digital infrastructure is boosting the investorsâ confidence. Demonstrating macroeconomic stability and policy credibility can be the icing on the cake to bring the world to India.
Mains question
Q. Highlight RBI’s State of the Economy report and discuss what makes India a favorable investment destination?
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