Vision Ias - Material July August 2018

MAINS 365 - UPDATION
JULY – AUGUST 2018

Table of Contents
1. POLITY AND CONSTITUTION ___________ 3 3.6. Digitizing Land Records in India ______ 45
1.1. Issues Related to RTI ________________ 3 3.7. Municipal Bonds___________________ 47
1.1.1. The Right to Information (Amendment) Bill,
3.8. Project Sashakt____________________ 49
2018 __________________________________ 3
1.1.2. Right to Information v/s Right to Privacy _ 4 3.9. Global Digital Tax Rules _____________ 50
1.2. Prosecution Under Benami Act stuck ___ 5 3.10. Falling rupee _____________________ 52
1.3. Prevention of Corruption (Amendment) 3.11. Ease of Doing Business ____________ 54
Act, 2018 _____________________________ 7
3.12. Impact of Chinese Goods on Indian
1.4. Central Civil Services (Conduct) Rules, Industry _____________________________ 56
1964 _________________________________ 8
3.13. Draft E-Commerce Policy___________ 59
1.5. National Register of Citizens (NRC) ___ 10
3.14. National Aluminium Policy _________ 61
1.6. Sedition__________________________ 12
3.15. Unconventional Hydrocarbons ______ 63
1.7. Contempt of Court Act, 1971 ________ 13
3.16. Unified Metropolitan Transport
1.8. Wrongful Prosecution (Miscarriage of Authority (UMTA) _____________________ 65
Justice) ______________________________ 15
3.17. Digital Payment __________________ 66
1.9. Non-Performing NGOs ______________ 16
4. SECURITY _________________________ 70
1.10. Legalising Sports Betting in India ____ 17
4.1. Maoist Organizations in Towns and Cities70
1.11. Fugitive Economic Offenders Bill (FEOB),
2018 ________________________________ 19 4.2. Data Protection ___________________ 71
4.3. Strategic Partnership Model _________ 74
2. INTERNATIONAL RELATIONS _________ 21
4.4. Border Area Development Programme
2.1. India-Australia ____________________ 21
(BADP) ______________________________ 75
2.2. India-South Korea _________________ 22
5. ENVIRONMENT ____________________ 77
2.3. BIMSTEC Summit __________________ 23
5.1. Kerala Flood ______________________ 77
2.4. BRICS Summit _____________________ 25
5.2. Monsoon Forecasting ______________ 79
2.5. Indian Aid to SAARC________________ 27
5.3. Ganga Drying up in Summers ________ 81
2.6. Trade Wars _______________________ 29
5.4. Re-Water Research Center __________ 82
2.7. Global Refugee Crisis _______________ 31
5.5. Regulating High Seas _______________ 85
2.8. UN Peacekeeping __________________ 35
5.6. Green Bonds ______________________ 87
3. ECONOMY ________________________ 37
5.7. Private Participation in Wildlife
3.1. Financial Inclusion in India __________ 37 Conservation _________________________ 88
3.2. Wage Inequality in India ____________ 40 6. SCIENCE AND TECHNOLOGY __________ 90
3.3. Rythu Bandhu Scheme______________ 41 6.1. Drone Regulations in India __________ 90
3.3.1. Universal Basic Income v/s Targeted
Transfer Schemes _______________________ 42 6.2. Net Neutrality_____________________ 92
3.4. Affordable Housing in India _________ 42 6.3. Digital Gender Gap_________________ 93

3.5. MGNREGA and Labour Crisis _________ 44 6.4. Deep Sea Exploration_______________ 94
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DELHI | PUNE | HYDERABAD | AHMEDABAD | JAIPUR | LUCKNOW 8468022022
6.5. Gaganyaan Mission ________________ 95 7.7. Development Induced Displacement of
Tribals______________________________ 108
7. SOCIAL ___________________________ 98
7.8. Proposed National Policy for Domestic
7.1. Sabrimala Issue ___________________ 98
Workers ____________________________ 111
7.2. Harassment of Women at Workplace _ 99
7.9. The Trafficking of Persons Bill, 2018 __ 112
7.3. Witch Hunting ___________________ 101
7.10. Migration ______________________ 114
7.4. Decriminalising Adultery ___________ 103
7.11. Mob Lynching ___________________ 116
7.5. Study on Transgenders ____________ 104
7.12. The RTE Amendment Bill, 2017 _____ 117
7.6. Section 377 Decriminalized _________ 107
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8468022022 DELHI | PUNE | HYDERABAD | AHMEDABAD | JAIPUR | LUCKNOW
1. POLITY AND CONSTITUTION
1.1. ISSUES RELATED TO RTI
1.1.1. TH E RIGHT TO INFORMA TION (AMENDM ENT) BILL, 2018
Why in News?
A copy of the RTI (Amendment) Bill, 2018 circulated among members of Parliament drew widespread
criticism from the opposition and activists.
Arguments against the Amendments
• Proposed amendments allow the Central
government to decide the tenure and salaries of
Central and state information commissioners, by
issuing notifications from time to time and need
not go to Parliament to amend RTI Act. Uncertain
term and salary changeable by executive
notification reduces CIC to an obedient
subordinate.
• This also hampers accountability as it calls
people’s right to information under question.
• Though the amendment maintains that salaries
and allowances and other conditions of service of
these officials shall not be varied to their
disadvantage after their appointment, the government can reduce it for future appointees.
• Chief Information Commissioner and Chief Election Commissioner (and the state level officers) were
kept at the same footing, as according to the Supreme Court of India RTI and Right to vote are equally
important fundamental rights. However, the amendments tend to change this scenario.
• RTI Act 2005 recognizes sovereign authority of states to select their State Information Commissioners,
the Bill of 2018 strangely does not allow states to decide their term, status and salary. Centre will
prescribe it from time to time. This enables the central government to encroach upon the sovereignty of
the State Governments.
• This Bill was introduced in the Parliament without consulting the civil society and the state Governments
which amounts to undemocratic imposition.
Arguments in favour for the amendment proposals
• The purpose of the amendments proposed is to provide for enabling provision under the RTI Act to
frame Rules regarding salaries, allowances and conditions of service for Chief Information
Commissioners and Information Commissioners and State Information Commissioners. Presently, there
are no such provisions available under the RTI Act 2005.
• The functions being carried out by the Election Commission of India and Central and State Information
Commissions are totally different. Thus, the two may not be required to be kept at equal footing.
Way forward
• In light of the issues highlighted above with regard to the amendment proposals, it is advisable that the
Amendment Bill may be dropped. Instead requisite orders may be issued to upgrade the salaries of the
Information Commissioners at all levels in accordance with the provisions of the RTI Act as they exist
today and initiate measures to improve their functioning by providing them with an adequate number of
staff of high caliber for quickly disposing appeals and complaints.
• With the increasing number of attacks on RTI users, the government may also focus its efforts on better
proactive disclosure of information and offer protection to people who show truth to power by
exposing corruption and wrongdoing.
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1.1.2. R IGHT TO INFORMATION V/S RIGHT TO PRIVACY
Why in news? Section 8(1)(j) of RTI Act
The B.N. Srikrishna Committee report on the Information which relates to personal information
protection of personal data was recently unveiled the disclosure of which has no relationship to any
public activity or interest, or which would cause
which proposes to amend Right to Information Act,
unwarranted invasion of the privacy of the individual
2005
unless the Central Public Information Officer or the
Right to Privacy and Right to Information State Public Information Officer or the appellate
authority, as the case may be, is satisfied that the
RTI and the right to privacy are both complementary larger public interest justifies the disclosure of such
and in conflict. While RTI increases access to information: Provided that the information, which
information, the right to privacy veils it instead. At the cannot be denied to the Parliament or a State
same time, they both function as citizen rights Legislature shall not be denied to any person
safeguarding liberty against state overreach.
Right to privacy Right to Information
In Justice K. S. Puttaswamy (retd.) vs Union of India, a Right to Information Act 2005 mandates timely
nine-judge Constitution Bench of the Supreme Court response to citizen requests for government
ruled that right to privacy is an intrinsic part of life information. It is an initiative taken by Department
and liberty under Article 21. of Personnel and Training, Ministry of Personnel,
Public Grievances and Pensions
According to International Covenant of- Civil and
Political Rights, under article 17, “No one shall be The basic object of the Right to Information Act is to
subjected to arbitrary or unlawful interference with empower the citizens, promote transparency and
his privacy, family, home and correspondence, nor to accountability in the working of the Government,
unlawful attacks on his honour and reputation” contain corruption, and make our democracy work
for the people in real sense
Conflict between Right to Privacy and Right to Information

The amending of the existing Section 8(1)(j) of the RTI Act tilts the law in favour of privacy and against
disclosure of information. The proposed amendments will allow for the disclosure of personal only under
following principles:
• the personal data relates to a function, action or any other activity of the public authority in which
transparency is required to be maintained having regard to larger public interest in the accountability of
the working of the public authority
• any harm likely to be caused to data principal by the disclosure is outweighed by the interest of the
citizen in obtaining such personal data having regard to the object of transparency referred to in clause
(a)
Judgments on Balancing of Right to Privacy and Right to Information
• In the case of Centre of Earth Science Studies v. Dr. Mrs. Anson Sebastian (2010), the respondent
requested access to documents pertaining to a domestic enquiry against another employee and
confidential reports of six other. The appellant claimed immunity under Section 8(1)(j) of the RTI Act. It
was held that a domestic inquiry is an open trial, and the Confidential Reports are essentially
performance appraisals which, if disclosed, would not cause an invasion of privacy. Therefore, this case
became a landmark for upholding the essence of the Right to Information, while at the same time
maintaining its balance with privacy.
• In A.D. Sharma v. Municipal Corporation Delhi (2013), while denying the petitioner the authority to
inspect the private property of a third party individual, the Central Information Commission referred to a
previous Delhi High Court case (Secretary General, Supreme Court of India v. Subhash Chandra Agarwal,
2010). The Court analyzed the interplay between Right to Information and Right to Privacy, stressing on
the necessity of showing a larger public activity or interest in order to warrant an invasion of an
individual’s privacy. They also pointed out that the nature of restriction on the right to privacy of a public
official can be higher than that on an individual, as the official is expected to act for public good and be
accountable in discharge of his duties.
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Possible framework for managing the conflict
1. Oversight
Two Body Model
• In most jurisdictions, the information commission and privacy commission are separate and distinct
bodies. Countries which have two commissions are able to balance these rights distinctively as they
are restricted to their respective domain.
• But disagreements between two authorities can increase heighten transaction and opportunity
costs involved in reconciliation, reducing overall efficiency in grievance redressal. For example:
Canada had witnessed this tension between the two commissions due to politics and policy
concerns.
Single Body Model
• Adopting a single commission (as in the UK) may reduce the transaction costs associated with
conflict between two commissions and it would increase administrative efficiency by having shared
interest and reducing conflict. But this may also face danger of the one interest may be stronger or
perceived as more powerful and the bodies do not equally protect or balance both interests.
Indian Scenario
• Single body model might be attractive in Indian context owing to its cost-effectiveness but it may
include high level of corruption which would encourage conflict of interest and tendency to
safeguard personal gains.
• Moreover, Information Commissioner’s mandate is concerned with personal data only of public
officials and not of citizens at large.
• A body with specialized expertise in this field would be far more suited to serve this purpose.
2. Legislation
Single RTI and Privacy Law
• Both laws can be adopted under single act which will allow for common definitions and internal
consistency and for limiting conflict and establishing a balance from the start. Ex- In Canada Bill C-43,
adopted in 1982, contained both the Access to Information Act and the Privacy Act.
• There are some disadvantages like it may cause legislative confusion over the intent of laws. Hence
an act which covers both areas comprehensively will need to be as detailed as two single acts
because there is little overlap in the two.
Separate RTI and Privacy Laws
• In some jurisdictions separate pieces of legislation has been introduced for RTI and data protection
law. But these law needs to ensure the greatest harmony between the operations of the two laws.
• If the goal of harmony is ignored at the outset, the laws will conflict and further legislative efforts
will be required later.
1.2. PROSECUTION UNDER BENAMI ACT STUCK

Why in News?
The prosecution of accused persons under the Prohibition of Benami Property Transactions Act, 1988 (PBPT
Act) has been stalled as the special courts meant for the purpose have not yet been set up across the
country.
Background
• Benami Transactions (Prohibition) Act was passed in 1988 to put an end to such transactions, and to
empower the government to recover such property. However, the Act had several inherent loopholes
such as lack of proper implementation machinery, absence of an appellate mechanism, and lack of
provisions for vesting of the confiscated property with the Centre. Owing to these infirmities, the Rules
for the Act were also not framed.
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• Therefore, the act was amended in 2016 to be renamed as PBPT Act and to provide for the stringent
mechanisms to put an end the rising black money and benami properties.
Provisions of the Amended Act
• The 1988 act as amended in 2016, defines a benami transaction as a transaction where a property is held
by or transferred to a person, but has been provided or paid by another person. The definition also
includes property transactions where i) a transaction been made under a fictitious name; ii) the owner is
not aware or denies knowledge of the ownership of the property; iii) the person providing the property
is not traceable.
• The key changes that will ensure transparency is the introduction of four authorities — Initiating Officer,
Approving Authority, Administrator, and Adjudicating Authority — who will conduct investigations and
inquiries on Benami transactions. An Appellate Tribunal will hear appeals passed by the Adjudicating
Authority, and these in turn will be heard by the High Court.
• The act mandates the Central Government in consultation with the Chief Justice of respective High Court
to designate one or more courts of session as Special Court for trial of offence punishable under it. The
special court has to complete the trial within six months from the date of complaint filing.
Significance of the Amended act
• It is a comprehensive law which provides for the mechanism and process for attachment and
confiscation of the benami property (both movable and immovable), and also the administrative
structure for proper implementation of such provisions.
• It has widened the ambit of benami transactions and introduced more stringent punishment.
• This law will have long term impacts on real estate industry in the country.
o It will increase the practice of including the correct name in property transactions. This in turn would
bring transparency in residential market.
o The stringent law would also bring down the prices of real estate because such transactions are
done by cash rich investors to park their unaccounted wealth in real estate.
o It has also boosted the confidence of lenders especially banks and also private individuals. The Act
will eradicate time-consuming processes such as property checks by lenders and banks.
Issues with the amended act
• It expands the list of exemptions vis-a-vis the 1988 Act: It now exempts members of Hindu Undivided
Family (HUF); Corporate, firms, Companies and Partners holding land in fiduciary capacity in the name of
Directors, Trustees or other employees; Property in the name of spouse and kids acquired from the
known source of income; Lineal descendants and ascendants. Also, Central government may exempt any
property relating to charitable or religious trusts from the operation of this Act.
• Exempting the HUF pushes a large section of population in rural areas outside the ambit of the law:
Also, the exemption being extended even to limited liability partnership in business arena can be
misused under Corporate Social Responsibility by many Corporates to have Benami properties.
• It is not clear how the act will check the misuse of powers vested under the officials: under the act, the
initiating officer can act based on discretion to notify any property as Benami which can lead to
excessiveness or arbitrariness, unlike Prevention of Money laundering act where only that property is
attached which is the proceed of crime.
Recent issue with the working of the Act
• As the required Special Courts have not been set up yet, therefore despite completion of investigations
in 100 cases by the IT department in different states, including attachment of properties by the
Adjudicating Authority, the prosecution of accused persons has not taken place.
Way Forward
• Benami transactions could be preempted and eliminated by digitization of land records.
• Simultaneously, other reforms like whistleblower protection act and Lokpal Act must be implemented.
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1.3. PREVENTION OF CORRUPTION (AMENDMENT) ACT, 2018
Why in News?
Prevention of Corruption Act 1988
Parliament has passed the Prevention • The act extends to whole of India except Jammu and Kashmir.
of Corruption (Amendment) Act, 2018, • Under this Act special judges were to be appointed by the Central
which amends the archaic Prevention and State Government under the Code of Criminal Procedure,
of Corruption Act, 1988. 1973.
• The act shifted the burden of proof from prosecution to the
Brief background
accused.
• Currently, offences related to • The ‘public servant’ as per the definition includes any person in
corrupt practices of public officials service of a government and in the pay of the government, or its
are regulated by the Prevention of department, its companies or any undertaking or control of the
government.
Corruption Act, 1988.
• Misappropriation, abusing official position, obtaining a pecuniary
• In 2007, Second Administrative advantage etc. are being taken as offences under this act
Reforms Commission (2 nd ARC) in • MPs and MLAs have been kept out of this act.
its fourth report recommended • If the offences against the public servant have been proved, it is
that the Act be amended to punishable with imprisonment of not less than six months which
include bribe giving as an offence, may extend upto five years.
limit prior sanction for prosecution
to certain cases, and provide for the attachment of property of public officials accused of corruption.
• In 2011, India ratified the United Nations Convention against Corruption, and agreed to bring its
domestic laws in line with the Convention that covers giving and taking a bribe, illicit enrichment and
possession of disproportionate assets by a public servant as offences, addresses bribery of foreign public
officials, and bribery in the private sector.
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Benefits of the amendments
• Potential to reduce the rising cases of corruption and frauds: India’s rank in the Corruption Perception
Index, 2017 fell to 81 (out of 180 countries) signifying the rise in such cases. Strict implementation of the
act can deter public functionaries to indulge in corrupt practices.
• Safeguards to honest officers: it would encourage public sector officials to carry out their duties
fearlessly and on merit, while doing away paralysis in decision making.
• Ensure speedy trial in corruption cases: time bound trial of such cases would do away with long
pendency of corruption related cases.
• Inclusion of bribe giver: The act also includes bribe giver which will act as a deterrent for promoting
corruption and luring with cash or kind. In the past, the bribe giver had enjoyed immunity and that
helped perpetuate corruption.
Concerns regarding the amended act
• Partially addresses the issue of ‘coerced bribe givers’: though it gives them seven days to report the
matter, it ignores the situation where they might feel threatened to even approach law enforcement
agencies.
• Deters bribe giver from appearing as witness in court: as the provision which protected a bribe giver
from prosecution for any statement made by him during a corruption trial is removed in the act, it would
create deterrence among bribe givers to appear as witness.
• Increases the threshold to establish the possession of disproportionate assets: while redefining criminal
misconduct, it now also requires proving the ‘intention’ to acquire disproportionate assets in addition to
possession of such assets.
• Burden of proof on accused only for taking a bribe: Under the 1988 Act, the burden of proof was on the
accused for offences like taking a bribe, habitual offender and abetment. However, the amendment puts
the burden of proof on accused person only for the offence of taking a bribe.
• Certain provisions of the UN Convention against Corruption have not been included: Provisions such as
in case of bribery of foreign public officials, bribery in private sector and compensation for damage didn’t
find any place in the amended act.
• Diluted the provisions of earlier act: By including the provision of prior sanction even before the
investigation stage it could considerably dilute the act and could result in undue delays in genuine cases
of corruption. This further strengthens the need of prior sanctions despite the Supreme Court quashing
Section 6A of Delhi Special Police Establishment act, 1946 which required similar approval from the
Government.
• Vague terms such as ’lawful sources of income’ remains undefined which creates the misconception
that as long as tax has been paid on income received from an undisclosed and illegitimate source, such
income becomes lawful.
• Despite the good intentions behind the Amendments, it should be ensured that the act is implemented
in letter and spirit. The CVC must issue clear guidelines regarding sanctioning procedure so as to maintain
the sanctity of the provision and inert from political influence. There is also a need to complement the
amendment with holistic reforms such as electoral reforms, decriminalization of politics, de-politicization
of civil services, police reforms, appointments of judges, members of CBI and Lokpal should be
appointed on a priority basis etc.
1.4. CENTRAL CIVIL SERVICES (CONDUCT) RULES, 1964

Why in News? Article 19(1)(a): Guarantees the fundamental
right to freedom of speech and expression to all
Several provisions of Central Civil Services (Conduct)
citizens of India subject to reasonable
Rules, 1964 (CCS (conduct) rules, 1964) are often used
restrictions which are enumerated in Article
against public servants which restricts their fundamental 19(2).
rights.
Article 19(2) includes following restrictions: In
Background about the CCS (Conduct) rules, 1964 the interests of Sovereignty and integrity of
India, the security of the State, friendly relations
• CCS (conduct) rules prescribes a set of Do’s and
with foreign States, public order, decency or
Don’ts: These rules require them to maintain absolute morality or in relation to contempt of court,
integrity, devotion to duty and political neutrality defamation or incitement to an offence.
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which are essential requirement of any public servant but certain prohibitions may come in conflict with
their fundamental rights. For instance -
o Prohibits government servants to take part in the editing or management of any newspaper or
periodical.
o Prohibits speculation in stock, share or any other investment except occasional investments made
through stock brokers.
o Public servants are barred from accepting gifts, buying and selling properties, making commercial
investments, promoting companies and accepting commercial employment after retirement.
In 1964, following the recommendations of the Civil Servants and Fundamental Rights
Committee on Prevention of Corruption • Subject to the power of Parliament, under Article 33, to
(Santhanam Committee), these rules were modify the fundamental rights in their application to
considerably enlarged. members of the Armed Forces and the Police Forces, the
fundamental rights guaranteed by the constitution are in
Issues with the Rule 9 of the CCS (Conduct) favour of all ‘citizens’, which obviously include public
Rules, 1964: servants.
• While a public servant possesses the fundamental rights
• Rule 9 prohibits any public servant to as a citizen, the State also possesses, under the Proviso
publish in his own name or anonymously or to Article 309, the power to regulate their ‘conditions of
pseudonymously any statement of fact or service’.
opinion which has the effect of an adverse • Now, the interests of service under the State require
criticism of any current or recent policy or efficiency, honesty, impartiality and discipline and like
action of the Central Government or a qualities on the part of the public servant. The State has
State Government. thus the constitutional power to ensure that every
public servant possesses these qualities and to prevent
• The surveillance and disciplining attitude
any person who lacks these qualities from being in the
demands no criticism and uniform and
public service.
unquestioning obedience from the public • Therefore, that State regulation of the conditions of
servants which acts as an assault upon the service of public servants so as to restrict their
fundamental right to freedom of speech fundamental rights will be valid only to the extent that
and expression guaranteed in the such restrictions is reasonably necessary in the interests
Constitution under Article 19 (1)(a). of efficiency, integrity, impartiality, discipline,
responsibility and the like which have a ‘direct,
Arguments in favour of Rule 9 proximate and rational’ relation to the conditions of
• Civil servants being permanent executives public service as well as the general grounds (e.g., public
order, under Article 19) upon which the fundamental
serve with different elected executives. In
rights of all citizens may be restricted.
this case, it becomes necessary to maintain
their political neutrality and ensure implementation of policies without any bias. It thus ensures political
neutrality of Public Servants and disciplinary actions are justified in case of its violation.
Arguments against Rule 9
• By becoming a government servant, one does not surrender one’s fundamental rights: Supreme Court
in Kameshwar Prasad vs State of Bihar, 1962 held that Article 19 applies to all citizens and that
government servants in common with all other citizens enjoy the protection of all fundamental rights.
• SC in Vijay Shankar Pandey vs Union of India, 2014 reiterated that individual’s fundamental rights did not
get diminished by being a member of the civil service.
• Public Order, the reasonable restriction under Article 19(2) most often resorted to by government in
disciplining the civil servants has been defined in several Judgments. In Superintendent of Central Prison
vs Ram Manohar Lohia, 1960, it was held that public order is synonymous with public safety and
tranquility which was the absence of disorder involving breaches of local significance. Moreover, Article
19 (2) kicks in only when the views expressed reach the level of incitement causing public disorder.
• Criticism is inherent in the right to freedom of speech and expression, whereas Rule 9 makes an
underlying assumption that any criticism of the government is synonymous with indiscipline and
subordination. Criticism does not mean disobedience and criticizing the government does not
tantamount to disobeying the orders of the government.
• Colonial origins: these rules which apply to all public servants in the country date from colonial times
and are reflective of colonial mindsets, guided by a surveillance and command and control mentality.
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Measures taken by the Government
• In 1957, the Department of Administrative Reforms of the Government of India had prepared a code of
ethics for public services, prescribing standards of integrity and conduct which were never issued.
• In 2006, the Department of Personnel had drafted a Public Service bill emphasizing political neutrality,
objectivity, impartiality, integrity, honesty, etc., for all public servant but no action was taken.
• The Second Administrative Reforms Commission in its fourth report (2007) recommended a code of
ethics for public servants and emphasized a set of “Civil Service Values” like integrity, impartiality,
commitment to public service, open accountability, devotion to duty and exemplary behavior, the
transgression of which was to attract disciplinary action.
Way Forward
• CCS (Conduct) Rules, 1964 should be replaced by a broad set of ‘code of ethics’ based on self-regulation,
accountability, and transparency like in other countries. For instance, in UK as per the Civil Service Values
(2006) and a legally enforceable code of conduct, civil servants are expected to observe integrity,
honesty, objectivity and impartiality. In US, public servants follow a code of ethics devised in 1958. US
office of government ethics established under the Ethics in Government Act, 1978 foster high ethical
standards for employees. Similarly, OECD Council and the European Union both prescribe a broad set of
principles governing ethical conduct of employees in public institutions.
• Public Service Bill must be enacted on priority basis to ensure proactive accountability of public servants
to the Citizens.
1.5. NATIONAL REGISTER OF CITIZENS (NRC)

Why in news?
Assam has published the final draft of the updated National Register of Citizens (NRC).
Brief background
• Assam’s demographic changes date back to the 19th century when British brought in tribal labourers
from Chota Nagpur and Bihar to work on the plantations. This also encouraged the migration of Muslim
farmers from Bengal which continued after Independence and partition.
• To tackle the illegal immigration issue just after the independence, NRC was first prepared after the
Census of 1951. But this process rendered ineffective due to vote bank politics.
• In 1979, agitation was started by All Assam student Union for illegal migrant deportation which
culminated in signing of Assam Accord in 1985.
• The Citizenship Act of 1955 was amended after the Assam Accord for all Indian-origin people who came
from Bangladesh before January 1, 1966 to be deemed as citizens. Those who came between January 1,
1966 and March 25, 1971 were eligible for citizenship after registering and living in the State for 10 years
while those entering after March 25, 1971, were to be deported. However, nothing much happened over
the decades.
• In 2014, the Supreme Court asked the state government to update the 1951 NRC in a time-bound manner.
Present exercise is being conducted under the supervision of the Supreme Court.
What is NRC?
• It is a list of all bona fide Indian citizens of Assam, the only state with such a document.
• The NRC is being updated as per the provisions of The Citizenship Act, 1955 and The Citizenship
(Registration of Citizens and Issue of National Identity Cards) Rules, 2003
• It will include persons whose names appear in any of the electoral rolls up to the midnight of 24th March,
1971 or National Register of Citizens, 1951 and their descendants.
• The process of verification involved house-to-house field verification, determination of authenticity of
documents, family tree investigations in order to rule out bogus claims of parenthood, and linkages and
separate hearings for married women.
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Benefits of this exercise
• It will provide a much-needed perspective on the extent of illegal migration that has taken place into
Assam, thus restricting the wild speculations about their actual number by political parties for their
advantage.
• The fear that illegal immigrants will change the demography of state and influence the politics of state
will also be done away with.
• The publication of an updated NRC is expected to deter future migrants from Bangladesh from entering
Assam illegally as publication of the draft itself had created a perception that staying in Assam without
valid documentation will attract detention/jail term and deportation.
• The inclusion of the names in the NRC will provide respite to all those Bengali speaking people in Assam
who have been, hitherto, suspected as being Bangladeshis.
• The exercise will help identify illegal immigrants and deport them back to their country of origin and
saving resources of country for legitimate citizens and also reduce concern for internal security due to
illegal migration.
Issues with NRC
• Exclusion: Only 29 million out of 32.9 million applicants have been found eligible to be included in the
register, leaving 4 million out of the final draft.
• Need to produce pre-1971 documents: Given the status of document record in the country, this is an
onerous pre-condition and difficult for many people. Unlike international conventions on establishing
citizenship, the burden of proof rests with the NRC applicant.
• Misinformation: Ascertaining the authenticity of parental linkages remained a challenge. Many people
were showing by different names in different places which may lead to duplicity or mistaken exclusion
from the list.
• Focus on completion: The emphasis of Supreme Court, the Centre and the Assam government was on
completing exercise without consideration of creating an orderly mechanism for those aggrieved by
exclusion.
• Citizenship issues What next for Excluded people?
• The list released is only a draft and not the final one. Final list
o One main contention is what will
is expected to be published by December 2018.
be the citizenship of the children
• There is scope for filing claims and objections, for which forms
and grandchildren of illegal of correction would be available at various NRC seva kendras
immigrant. • The people have a graded appeals process in the order - NRC
o While the citizenship law of the Seva Kendras, District magistrates, The Foreigners’ Tribunals,
country provides for citizenship The Guwahati High Court, The Supreme Court.
by birth irrespective of the
parents’ citizenship, the NRC rules do not recognize it.
o The Citizenship (Amendment) Bill which makes Hindu illegal migrants and those from certain other
minority communities in Afghanistan, Bangladesh and Pakistan eligible for Indian citizenship further
creates apprehensions about alienation of minorities in the process.
• Issue of D voters: Around 2.5 lakh out of the 40 lakh exclusions include D-voters— doubtful voters, their
descendants and people whose cases are pending before the foreigners’ tribunal in Assam.
o D-voters are those who are disenfranchised by the government on the account of their alleged lack
of proper citizenship credentials and their inclusion will depend on decision of the Foreigners
Tribunals.
• Issues post-release
o Claims and objections: The excluded people could face rejection again if they submit the same
papers second time.
o Issue of deportation: No state can act on illegal immigration unilaterally. As of now, there is no any
bilateral agreement between India and Bangladesh, which lets the fate of those finally be excluded
hang in air.
• Humanitarian concerns: Ignoring the concerns of those who have lived for a long time in this land will
put a dent on democratic social value of the country.
11
Way Forward
• Regarding finally excluded individuals: They would officially be non-citizens but India has no fixed policy
for “stateless” persons. They will surely not have voting rights but certain facilities on “humanitarian
grounds” may be provided to them such as right to work etc.
• Grant amnesty: one option is granting Indian citizenship to the proclaimed illegal migrants after a
process of naturalization but this may be protested by some sections.
• Tackle issue of illegal migration comprehensively: Solving illegal migrants issue in Assam will not solve
the whole issue as they may very well come through states like West Bengal and then move on to the
other parts of the country. Thus, following steps should be taken:
o Comprehensive border management: including fencing, total surveillance 24x7, use of new imaging
technology etc.
o Work permits: Possibility of transparent work permits to foreigners should be explored.
o Punishing collusion: Officials and people who are colluding with foreigners to ensure entry and
residence etc. should be penalized for such behavior.
o Forging bilateral agreement with neighboring countries that provide for taking back nationals who
stay illegally in the other country after due verification.
o Assistance from international organisations: such as United Nations High Commissioner for
Refugees (UNHCR), the International Organization for Migration (IOM), and other concerned
international agencies with experience in this kind of complex issue.
o Establish a SAARC convention: India should take the initiative to encourage other countries in the
SAARC region to develop a SAARC convention or declaration on refugees in which member states
would agree to ratify the 1951 Refugee Convention.
1.6. SEDITION
Why in news?
• Law commission of India has publicized a consultative paper for a comprehensive public discussion
regarding Section 124A of the Indian Penal Code 1860, which deals with sedition.
Understanding Sedition - Brief Introduction
• What is Sedition - As per Section 124A of IPC, Sedition is an act that brings or attempts to bring into
hatred or contempt, or excites or attempts to excite disaffection towards the Government established
by law in India by words, either spoken or written, or by signs, or by visible representation, or otherwise.
As per this Section, a person is liable to be punished with imprisonment for life or imprisonment up to
three years with fine.
• Concerns regarding Sedition – Relevance of this Section in a democratic and independent nation is a
matter of continuous debate. Use of Section 124A by the government might go beyond the reasonable
restrictions provided under fundamental right to freedom of speech and expression as per Article 19 of
the Constitution. There is an apprehension that this Section might be misused by government of the day
to suppress political dissent, constructive criticism of government and its policies thereby stifling
democratic governance.
o The countries like UK, Australia have already abolished sedition laws considering them draconian.
Historical Background: Colonial Relic
• Origin and evolution - The legitimacy of British colonial governance system rested on silencing any kind
of political dissent or dissatisfaction thus the right to freedom of speech and expression of individuals
was suppressed through imposition of Section 124A. Section 124A IPC added through Special Act XVII of
1870, defined Sedition and 1898 amendment made it a punishable offense.
• Post Constitutional Journey and Sedition vis-a-vis Article 19 of the Indian Constitution - Various verdicts
by Indian Judiciary have led to re-interpretation and re-examination of ‘sedition’ in light of Article 19 of
the Constitution in order to strike a balance between right to free speech and expression and power of
State to impose reasonable restrictions (Article 19(2)). These verdicts have led to narrowing the ambit of
‘Sedition’ making its meaning more explicit, precise and unambiguous.
• Essential ingredients for a seditious act - Various verdicts in Romesh Thappar, Kedar Nath Singh case,
Kanahiya Kumar case re-defined a seditious act only if it had essential ingredients as:
12
o Disruption of public order
o Attempt to violently overthrow a lawful government
o Threatening the security of State or of public.
• Judicial verdicts in defense of Right to freedom of speech and expression - The judicial pronouncements
in cases like AK Gopalan vs State of Madras, Ramesh Singh vs Union of India, Shreya Singhal vs State
elaborated ‘what does not tantamount to sedition’:
o Political dissent
o A thought non-consonant with the government and its policies
o Expression of frustration over the state of affairs e.g. racist state or gender biased state
o Expressing different or conflicting ideas of Indian nation
o Right to offend
o Peaceful protest
Judiciary has thus stressed that unless intention behind the act is to disrupt public order, threaten security
of State or to overthrow the Government with violence or illegal means, the right to freedom of speech
and expression can’t be curtailed.
Sedition vis-a-vis other Statutes
• Several sections of IPC deal with offenses against State, against public tranquility. Another act named
Unlawful Activities Prevention Act 1971 has been enacted to prevent terrorist activities.
• Since sedition is an offense against the State, higher standards of proof must be applied to convict a
person for this offense. It must be invoked for gravest of offenses against State. If the same doesn’t fall
within the ambit of seditious act, it might attract provisions of some other laws/statutes as mentioned
above.
Way Forward
• Dissent acts as a safety valve in a vibrant democracy and every restriction on free speech and liberty
must be carefully imposed weighing its reasonableness.
• If the country is not open to positive criticism, there lies little difference between the pre- and post-
independence eras
• In view of judicial pronouncement narrowing definition of ‘sedition’ and other statutes/laws dealing with
offenses against the State, the paper attempts to start a debate among the legal luminaries, lawmakers,
Government, NGOs, academia, students and above all, the general public, with regard to essential
questions like:
o need of sedition law in a modern democratic society where freedom to speech and expression is a
Fundamental Right guaranteed by Constitution,
o redefining sedition or need of a sedition law in light of various statutes dealing with offenses against
State etc.
1.7. CONTEMPT OF COURT ACT, 1971

Why in News?
The Law Commission of India recently submitted its report examining any amendment to restrict the
definition of contempt to ‘only wilful disobedience of directions/judgement of the court under the Contempt
of Court Act, 1971.
Court of Record
Introduction • Constitution does not define the term “court of
record” however, the SC applied the term to a
• The Contempt of Court Act, 1926 was the first court whose acts and proceedings are enrolled
statute in India with relation to law of contempt. for a “perpetual memory and testimony”.
It was repealed and replaced twice in 1952 and • Once a court has been declared to be a “court of
then in 1971 (after the recommendations of Sanyal record” by a statute it ensues following powers-
Committee, 1963). o power to punish for its own contempt,
• As according to a report of Supreme Court (SC) o power to punish for the contempt of the
there are a high number of contempt cases in courts and tribunals subordinate to it,
o power to determine the question of its own
both SC and the High Courts (HCs). Therefore, the
jurisdiction.
Law Commission was given the task look into the
need to restricting the definition of contempt which may further reduce the number of such cases.
13
Provisions vis-à-vis Contempt of Court
• Constitutional-
• Article 129 and 215 provide that the SC and HCs respectively, with all the powers as a court of record
including the power to punish for contempt of itself.
• Article 142(2) enables the Supreme Court to investigate and punish any person for its contempt.
• Contempt of Courts Act of 1971- It gives powers to the courts, to restrict an individual’s right to personal
liberty for “scandalising the court” or for “wilful disobedience” of any judgment, writ, direction or order.
• Section 2 of the Act provides with a definition of the contempt of court and categorises it under civil
(wilful disobedience to any judgement, order, writ or other process of a court) and criminal
contempt (publication of any matter or doing an act which lowers the authority of a court, interferes
with its due proceeding & obstructs the administration of justice).
• It provides for a few exceptions that would not give rise to proceedings for contempt under section
4 (fair report of judicial proceedings), section 5 (fair comments on merits of any case),etc.
• Other important provisions include- section 12 specifies the punishment in case of contempt, section
14-15 deal with the procedure dealing with contempt, etc.
Relevance of power to punish for the Contempt of Court
• The law for contempt, with power of imposing punishment, ensures respect for the courts in the eyes of
the public by guaranteeing sanction against conduct which might assail the honour of the courts.
• Disobedience of court’s order would be a violation of the principle of Rule of Law. The law of contempt
can thus be considered to be the thread which holds together the basic structure of the Constitution.
And, the maintenance of dignity of the Court is one of the cardinal principles of Rule of Law.
• It enforces the equality before law - Acts as a tool against the rich and the powerful by forcing
compliance with the orders of the court.
• It is also needed to maintain credibility and efficiency of judiciary. For example, the Supreme Court issued
contempt proceedings against Justice Karnan for his demeaning behavior.
• It is needed for the independence of the judiciary and protect its functioning from the opinion of media
and the public.
Arguments for relook
• It goes against the fundamental right of Free Speech and Expression.
• In a democracy, judicial accountability is also required. For example, terming FIR against a sitting judge as
contempt of court raises the question of its accountability.
• The grounds, on which contempt proceedings can be initiated such as ‘scandalizing the court’, are open
ended and vague which are prone to misuse.
• In UK as well, the offence of ‘scandalizing the court’ as a ground for criminal contempt has been
abolished in 2013.
Law Commission’s Stand
• According to 274th Law Commission Report no changes are required to the 1971 statute.
• There are several safeguards built into the Act to protect against its misuse. For instance, the Act
contains provisions which lays down cases that do not amount to contempt and cases where contempt
is not punishable. These provisions suggest that the courts will not prosecute all cases of contempt.
• The Commission further noted that the Act had withstood judicial scrutiny, and therefore, there was no
reason to amend it. In fact, the statute, by laying down procedure, restricts the vast authority of the
courts in wielding contempt powers.
• Amending the definition of contempt will lead to ambiguity. This is because the superior courts will
continue to exercise contempt powers under the Constitution. If there is no definition for criminal
contempt in the Act, superior courts may give multiple definitions and interpretations to what
constitutes contempt.
• Even in the absence of the legislation, the Courts have the power to punish for their contempt under the
constitution as the Act 1971 is not the source of ‘power to punish for contempt’ but a procedural statute
that guides the enforcement and regulation of such power.
14
1.8. WRONGFUL PROSECUTION (MISCARRIAGE OF JUSTICE)
Why in News?
Percentage of under trials Time spent in prisons
Recently, Law Commission of India (LCI) submitted its 25.1% More than 1 year
277th report titled “Wrongful Prosecution (Miscarriage 17.8% Upto 1 year
of Justice): Legal Remedies” to the Government. 21.9% 3 to 6 months
35.2% Upto 3 months
Background
• India has one of the highest under trial populations in the world: According to National Crime Records
Bureau’s (NCRB) annual Prison Statistics India (PSI) report 2015, there were more than 4.19 lakh
prisoners across India out of which 67.2% were under trials (i.e. people who have been committed to
judicial custody pending investigations or trial). During 2015, more than 82,500 prisoners were released
by acquittal and more than 23,400 prisoners were released in appeal.
• Thus, undertrials spend a substantial period of time awaiting trials/judicial determinism of their case
which becomes a graver miscarriage of justice when the person is wrongfully accused and incarcerated
pending trial and proceedings which he should not have been subjected to in the first place.
• Such situations often result in violations
Current provisions provide for following remedies:
of fundamental rights of the victim
Currently three categories of court based remedies with respect
under Article 21 and 22 of the to miscarriage of justice are available to a victim:
constitution, gross human rights • Public law remedy: it is treated as a violation of
violations, social stigma faced, precious fundamental rights under Article 21 (the right to life and
years lost, mental, emotional and liberty) and Article 22 (protection against arbitrary arrests
physical harassment, huge expenses and illegal detention, etc.) of the Constitution, that invokes
incurred during the process and the writ jurisdiction of Supreme Court and High Courts
overcrowding of prisons. under Article 32 and 226 respectively.
• Infringement of a fundamental right • Private law remedy: it exists in the form of civil suits against
due to police and prosecutorial the state for monetary damages on account of tortious acts
of public servants- especially negligence by a public servant
misconduct involves State liability.
in the course of employment. Both public and private law
However, there is a lack of effective remedies are victim centric in nature.
response from the State to the victims • Criminal law remedy: it holds the wrong doer accountable
of such wrongful prosecutions within i.e. proceedings with criminal action against the concerned
the current Criminal Justice System in officers of the State for their misconduct.
the country. Remedies available under
the present system remain complex and International Covenant on Civil and Political Rights, 1966
uncertain, creating only an ex-gratia • It is one of the key documents dealing with the miscarriage
obligation without any statutory or legal of Justice.
backing for the rights of victim. • It commits its parties to respect the civil and political
• Article 14(6) of International Covenant rights of individuals, including the right to life, freedom of
religion, freedom of speech, freedom of assembly, electoral
on Civil and Political Rights, 1966
rights and rights to due process and a fair trial.
(ICCPR) dealing with miscarriage of
• As of August 2017, the Covenant has 172 parties and six
justice creates an obligation on the State more signatories without ratification.
parties to it to enact a legislation • It is part of the International Bill of Human Rights, along
ensuring that these victims are with the International Covenant on Economic, Social and
compensated within a reasonable period Cultural Rights (ICESCR) and the Universal Declaration of
of time. India ratified the ICCPR in 1968 Human Rights(UDHR).
but is yet to enact the legislation for the • Other important parts of the covenant are-
same. o Right to Physical integrity
• Delhi High Court in Babloo Chauhan Case o Liberty & Security of Persons
o Procedural fairness & Right of accused
had requested LCI to examine the
o Individual Liberties
possibility of the legislation for providing o Political Rights
relief and rehabilitation to victims of
wrongful prosecution and incarceration in India. LCI has therefore setout standards to be applied in the
above cases of miscarriage of justice and has also presented a Draft Code of Criminal Procedure
(Amendment) Bill, 2018 to suitably incorporate the recommendations.
15
Recommendations of LCI
• ‘Wrongful prosecution’ to be the standards of miscarriage of justice, as against ‘wrongful conviction’
and ‘wrongful incarceration’: ‘Wrongful prosecution’ would include cases where the accused and not
guilty of the offence, and the police and/or the prosecution engaged in some form of misconduct in
investigating and/or prosecuting the person. It would include both the cases where the person spent
time in prison as well as where he did not; and cases where the accused was found not guilty by the trial
court or where the accused was convicted by one or more courts but was ultimately found to be not
guilty by the Higher Court.
• Need for a transparent legislative process: There needs to be an established legislative process,
according a transparent, uniform, affordable and efficacious and timely remedy for the loss and harm
inflicted on the victims on account of wrongful prosecution.
• Designation of Special Courts in each district for adjudicating upon claims of compensation for wrongful
prosecution. The cause for action would arise if there was malicious prosecution or prosecution without
good faith and there was an acquittal.
• Compensation, both pecuniary and non-pecuniary, to effectuate the rehabilitation of the victims into
the society: While pecuniary assistance will be in terms of monetary award as may be determined by
special court, non-pecuniary assistance will be awarded in the form of services such as counseling,
mental health services, vocational/employment skills development, removal of disqualifications that
might affect chances of accused persons finding employment in public and private sectors, admission
into educational institutes, etc.
• Factors to determine compensation: Compensation in such cases would depend upon various factors,
including the seriousness of the offence, severity of punishment, the length of incarceration, loss or
damage to health, psychological and emotional harm and the status of the victim in the society.
1.9. NON-PERFORMING NGOS

Why in News?
The Ministry of Women and Child
Development has released a list of blacklisted
NGOs to help the public know about the
performing and non-performing organisations
in their areas.
More in News
• NGOs that do not have Darpan Portal
Registration Number, a facility offered by
the NITI Aayog and National Informatics
Centre for government to list authentic
bodies or FCRA registration number or
have been blacklisted by any ministry or
autonomous body such as
NABARD, NCW, etc. have been Regulation of NGOs
• The Foreign Contribution Regulation Act (FCRA) was introduced in
blacklisted by MoWCD.
2010, requiring all NGOs to apply for a license to receive foreign
• However, the NGOs believe that funding. All NGOs receiving foreign funds now have to re-register
the criteria are non-transparent for their FCRA license. Organisations with permanent FCRA licenses
and they were not provided any now have to get these renewed every five years.
information or notice before o It’s estimated that at least 10,000 FCRA licenses, needed to
being categorised as non- receive foreign funds, have been revoked.
performing. o the government barred several prominent NGOs from receiving
funds from foreign countries after they failed to file their
Background annual returns for five consecutive years.
• Various reports, including o The ministry directed NGOs across the country to validate the
reports of CBI and Intelligence bank accounts in which they receive foreign funds. In a circular
issued in 2017, the MHA had said all NGOs registered under
Bureau, have shown the
FCRA should receive foreign donations in a single designated
misappropriation of funds by a
bank account.
large number of NGOs. India is
16
said to lose around 2-3% of its GDP because of such NGOs.
• Therefore, the Supreme Court (in 2017) had asked Centre to examine enacting a law to regulate
government funds for NGOs and prosecute them in case of misuse, misappropriation of funds or non-
filing of annual statements.
• In response to this, the Centre had come up with a guideline to blacklist such errant NGOs.
• NGOs, including Greenpeace, Amnesty and Cordaid, were accused of serving as tools for foreign policy
interests of western governments by sponsoring campaigns to protect the environment or support
human rights.
Other issues with legitimacy of NGOs
• Independence and reliability of the organisational structures of NGOs: For instance, questions are
frequently raised regarding role and composition of the board, financial accounting, management
structure, etc.
• Questions are also oriented towards ties to the
public, transparency and adherence to the
mission of an NGO, representative status
(whom does it represent?), relationship to
community served etc.
• Effectiveness of NGOs as a social service
delivery agent: This usually have to do with the
quality and quantity of the services offered like
distribution of medicines, food etc. Inadequate
trained personnel, lack of funds might also
affect the effectiveness.
Way-forward
• The government should appoint commissions
of enquiry or committees to cross check the
misuse of funds by NGOs. The members of
committee may supervise and monitor the
activities of NGOs periodically.
• Further, the recommendations of S. Vijay
Kumar committee may also be taken into
consideration by the government.
• On part of NGOs in India, they have been
successful in bringing about several electoral
reforms to make politicians accountable. NGOs
played a key role in getting the landmark Right to Information (RTI) Act passed in 2005 to make the
government machinery accountable. However, it is time for NGOs in India to focus their energies at
enhancing their own accountability.
1.10. LEGALISING SPORTS BETTING IN INDIA

Why in news?
Law Commission of India
The Law Commission of India submitted a report to the • It is an executive body established by an order
government, saying that since it is impossible to stop of the Government of India.
illegal gambling, the only viable option left is to • Its major function is to work for legal reform.
“regulate” gambling in sports. • The First Law Commission was established in
1834 by the British Government under the
Betting/Gambling in India Chairmanship of Lord Macaulay.
• The Commission is established for a fixed
• The Constitution of India in its Seventh Schedule,
tenure and works as an advisory body to
List II (State List) empowers the State Governments the Ministry of Law and Justice.
to make laws regarding gambling and betting
activities.
• Pre-independence there was no such distinction and the Public Gambling Act, 1867, governed gambling
and betting activities in the country.
17
• The Public Gambling Act, 1867, prohibits any games of chance and probability except lotteries. The Act
prohibits owning, keeping and
Constitution and Betting
being found in a common
• According to Entry 40 of List I of the Seventh Schedule of the
gaming house, however, the
Constitution, the Parliament has the power to legislate on ‘Lotteries
Act excludes "games of skill" organized by the Government of India as well as the Government of
from its ambit. any State’.
• The Information Technology • The power of the State governments to make laws on gambling can be
Act 2000 prohibits online traced to Entry 34 List II. Thus, the States have exclusive power to
gambling and the punishment make laws on this subject including power to prohibit or regulate
for such activities is much gambling etc. in their respective territorial jurisdiction.
more serious than for offline • Supreme Court observed that expression "Betting and gambling"
gambling operations. includes and has always been understood to have included the conduct
of lotteries.
Why Betting/Gambling should be • Since the subject 'Lotteries organised by the Government of India or
legalised? the Government of a State' has been made a subject within the
exclusive legislative competence of Parliament, no legislature of a
• The money generated can be State can make a law touching lotteries.
used for public welfare
activities.
• Regulation would empower the authorised agencies to identify and prevent instances of gambling by
minors and ‘problem-gamblers’.
• Regulated betting should be permitted to curb the menace of match-fixing. According to International
Cricket Council’s Anti-Corruption Unit, it is easier to monitor illegal betting activity in a regulated market.
• Other benefits include generating considerable Lodha Committee on Betting
revenue; generating employment; development of • It recommended the legalisation of betting,
tourism as it may work as a complimentary except for those covered by the BCCI and IPL
industry; and preventing any kind of inconvenience regulations
at the hands of the law enforcement authorities. • Regulatory framework would enable the
• It will help in controlling of money laundering government in differentiating betting from
business. At present betting racket is run by the match fixing.
underworld and huge amount of money is • The Players, Administrators and others closely
associated with the sport would be required to
transferred through Hawala transactions which is
furnish the details of their income and assets
used for terrorism.
for the sake of transparency.
Why Betting/Gambling should not be legalised? • Licence would have to be issued to those
placing the bets as well, with age and
• It would be against the social norms and the identification details recorded.
principle of welfare State under Article 39 of the
Constitution of India.
• Argument made for ‘revenue over morality’ lacks merit. States such as Gujarat, Bihar, Manipur, Nagaland
etc., prioritize societal morality over revenue collection taking into account its ill-effects on the society.
• Gambling has been proven to result in financial losses, causing an adverse impact on one’s economic
state, personal life and social life. Such activities affect the vulnerable sections of the society in
unimaginable and often, irreparable ways.
• One of the major drawbacks is loan-sharking i.e. taking loans at exorbitant rates for gambling.
• The existing policy of the Government (National Sports Development Code of India, 2011, etc.), the
current socio-economic atmosphere in the country and the prevalent social and moral values do not
encourage betting and gambling.
Recommendations
• Model Law: The Parliament may enact a model law for regulating gambling that may be adopted by the
States.
• Licensed Operation: Gambling and betting, if any, should be offered only by Indian licensed operators
from India possessing valid licences granted by the game licensing authority.
• Define gambling: Gambling must be classified into two categories, namely ‘proper gambling’ and ‘small
gambling.’ Proper gambling would be for the rich who play for high stakes, while small gambling would
be for the low-income groups.
18
• Cap on gambling: The government should introduce a cap on the number of gambling transactions for
each individual, that is, monthly, half-yearly and annual.
• Protecting vulnerable groups: Regulations need to protect vulnerable groups, minors and those below
poverty line, from exploitation through gambling.
• Risk awareness: Information regarding the risks involved in gambling/betting and how to play
responsibly must be displayed prominently on all gambling and betting portals/platforms.
• Encouraging foreign capital: Foreign Exchange Management and Foreign Direct Investment laws and
policies should be amended to encourage investment in the casino/online gaming industry. This would
propel tourism and employment.
• Mode of transaction: The transactions made between and among operators and players should
mandatorily be made ‘cashless’. This would help authorities to keep a close eye on every single
transaction so made.
• Taxation: Any income derived from such activities should be made taxable under the Income Tax Act,
1961, the Goods and Services Tax Act, 2017 and all other relevant laws.
• Punishments: Match-fixing and sports fraud should be specifically made criminal offences with severe
punishments.
1.11. FUGITIVE ECONOMIC OFFENDERS BILL (FEOB), 2018

Why in news?
President recently gave his assent to the Fugitive Economic Offenders Bill (FEOB) ,2018.
Background
• There have been several instances of economic offenders fleeing the jurisdiction of Indian courts,
anticipating the commencement, or during the pendency of criminal proceedings. The absence of such
offenders from Indian courts has several deleterious consequences such as
o it hampers investigation in criminal cases, wastes precious time of courts and undermines the rule of
law in India.
o most such cases of economic offences involve non-repayment of bank loans thereby worsening the
financial health of the banking sector in India.
• The existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the
problem. It is, therefore, felt necessary to provide an effective, expeditious and constitutionally
permissible deterrent to ensure that such actions are curbed.
• In view of the above context, the Act was proposed in order to address the lacunae in the present laws
and lay down measures to deter economic offenders from evading the process of Indian law by
remaining outside the jurisdiction of Indian courts.
• The Act is expected to re-establish the rule of law by plugging gaps in the existing laws thus providing a
higher deterrent effect on economic offenders.
• This would also help the banks and other financial institutions to achieve higher recovery from financial
defaults committed by fugitive economic offenders, improving the financial health of such institutions.
Salient Features of the Act
• The Act allows for a person to be declared as a fugitive economic offender (FEO) if:
o an arrest warrant has been issued against him for any specified offences where the value involved is
over Rs 100 crore, and
o he has left the country and refuses to return to face prosecution.
• It extends not only to loan defaulters and fraudsters, but also to individuals who violate laws governing
taxes, black money, benami properties and financial corruption.
• The Enforcement Directorate (ED) will be the apex agency to implement the law.
• To declare a person an FEO, an application will be filed in a Special Court (designated under the
Prevention of Money-Laundering Act, 2002) containing details of the properties to be confiscated, and
any information about the person's whereabouts.
• The Special Court will require the person to appear at a specified place at least six weeks from issue of
notice. Proceedings will be terminated if the person appears.
19
• The Act allows authorities to provisionally attach properties of an accused, while the application is
pending before the Special Court.
• Upon declaration as an FEO, properties of a person may be confiscated and vested in the central
government, free of encumbrances (rights and claims in the property).
• Those classified as fugitives will also not be able to pursue any civil cases in India unless they come back
to India and face prosecution.
Issues with the act
• Against principle of justice and violates fundamental rights: Basic principles of natural justice like -fair
play, innocent until proven guilty, access to justice are being violated by several provisions of the act like:
o Selling the property on the mere declaration of a person as a fugitive economic offender and
without a proper trial.
o Confiscating all properties belonging to a fugitive economic offender, and not just properties
acquired through proceeds of crime.
• It does not require the authorities to obtain a search warrant or ensure the presence of witnesses
before a search. These safeguards protect against harassment and planting of evidence.
• The legislation also makes an arbitrary and discriminatory distinction by virtue of which only offences
involving sums over Rs 100 crore will attract the FEOB’s provisions.
• Most of the procedural aspects under the Act are similar to existing laws such as the CrPC, 1973, and the
Prevention of Money-Laundering Act (PMLA), 2002. For example, CrPC, 1973 also allows for attachment
and confiscation of properties of absconders.
• Use of sale proceeds from confiscated property not specified: The Act specifies that an FEO’s properties
will be confiscated and vested in the central government. The central government may dispose off the
properties after 90 days. However, the Act does not specify how the central government will use the sale
proceeds i.e. would the government be obliged to share the sale proceeds with persons who may have a
claim against the FEO.
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2. INTERNATIONAL RELATIONS
2.1. INDIA-AUSTRALIA
Why in news?
The Australian government has released an India Economic strategy report to boost economic ties with
India.
Bilateral Relations
The India-Australia bilateral relationship has undergone evolution in recent years, developing along a positive
track, into a friendly partnership. The two nations have much in common, underpinned by shared values of a
pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement and
increasing high level interaction. Various aspects of their relations include-
• Political Interactions- Australia and India established diplomatic relations in the pre-Independence
period, when the Consulate General of India was first opened as a Trade Office in Sydney in 1941.
o Apart from various high level visits the two countries have signed MoUs in areas including
Cooperation in combating International terrorism & transnational organized crime, Health and
Medicine, Environment, Climate and Wildlife, etc.
o They also co-operate in various multilateral fora. Australia supports India’s candidature in an
expanded UN Security Council. Both India and Australia are members of the Commonwealth, IORA,
ASEAN Regional Forum, Asia Pacific Partnership on Climate and Clean Development, and have
participated in the East Asia Summits.
• Security and Stability- With the changing global scenario, Australia has come to look at India as a
potential partner in promoting regional security and stability. This led to upgradation of bilateral
relationship between the two nations to a ‘Strategic Partnership’, including a Joint Declaration on
Security Cooperation in 2009. Both are part of ‘Quad’ Grouping.
• Civil Nuclear Co-operation- A Civil Nuclear Cooperation Agreement between the two countries was
signed in September 2014 during the visit of then PM Tony Abbott to India. The agreement came into
force from 13 November 2015 and provides the framework for substantial new trade in energy between
Australia and India. The Australian Parliament passed the “Civil Nuclear Transfer to India Bill 2016”.
• Agriculture, Science and Technology- An Australia-India Strategic Research Fund (2006) has been set up;
the two countries have identified a number of collaborative research projects in areas such as
agricultural research, astronomy and astrophysics, environmental sciences, microelectronics,
nanotechnology, renewable energy, marine sciences and earth systems sciences.
• Economic & Trade- India is Australia’s tenth-largest trading partner and our fifth-largest export market.
Two-way goods and services trade between Australia and India totaled $18 billion in 2014-15. The two
countries are currently discussing a Comprehensive Economic Cooperation Agreement (CECA) which will
provide greater market access to exporters of goods and services.
The Economic Strategy Report aims to put substance into a growing strategic relationship. The paper comes
soon after the foreign policy white paper by Australian govt, which made a big space for relations with India,
pushing India to among Australia’s top strategic partnerships.
Highlights of the Report
• It states that the transformation of the Indian economy is underway. Its progress will be uneven but the
direction is clear and irreversible. Given its increasing significance India should be put into its top three
export markets and made the third largest destination in Asia for the country’s outward investment.
• It takes a long-term perspective about Australia and India: out to 2035. It expects Australian exports to
India grow from 14.9 billion dollars in 2017 to around 45 billion dollars in the next 20 year and outward
Australian investment to India rise from 10.3 billion dollars to over the 100-billion mark.
• Australia should focus on securing some of the objectives of the CECA with India through the Regional
Comprehensive Economic Partnership (RCEP).
• Three pillars on which his strategy rests: geopolitical convergence (in terms of security partnership in
the Indo-Pacific), economic relations, and people-to-people links. Indian diaspora to play a big role in
building these economic linkages.
21
• The economic strategy would rest on the business to business relationship with a light touch from
government. According to the report, it is business on both sides which should drive the trade and
investment relationship. India however is a market where government cannot be left out of the
equation.
• Report has divided sectors into a flagship sector (education), three lead sectors (agribusiness, resources,
and tourism) and six promising sectors (energy, health, financial services, infrastructure, sport, science
and innovation) and ten states in India where Australia should focus efforts.
Challenges in realising strategy
• It views India principally as an economy that will flourish on the strength of services. Of the focus
sectors identified in the report, most are based around services. Further, the report alludes to ‘Make in
India’ only from the perspective of defence manufacturing.
• Another potential challenge is the report’s geopolitical focus. The two countries’ partnership in the
Indo-Pacific is clearly the key element of the stated geopolitical convergence. Security and strategic
discussions in India are generally not associated with economic conversations. Trade policy is hardly
shaped in conjunction with foreign policy.
• Further, the prominence of the Indo-Pacific concept in India remains limited to the security community.
Indian trade experts are yet to engage enthusiastically with the concept. It is far-fetched for Australia to
expect India to react wholesomely to the report and to endorse a deep and lasting economic
partnership with Australia on predominantly geopolitical foundations.
2.2. INDIA-SOUTH KOREA

Why in news? Important Agreements Signed
South Korean President Moon Jae-in recently visited India and South Korea signed 11 agreements, including
in the areas of trade, cultural and scientific and
India for the first time since being elected last year.
technological cooperation, during the visit of South
Key Highlights of the visit Korean President Moon Jae-in to India. Following are
some major MoUs signed-
• Moon coined a new acronym ‘3P Plus’ for • On Trade Remedies: its objective is
boosting bilateral ties through cooperation for for cooperation in the area of trade remedies viz.
people, prosperity and peace. anti-dumping, subsidy, countervailing
• Indian Prime Minister and President of the • On Future Strategy Group for cooperation in the
Republic of Korea inaugurated Samsung’s development of cutting edge technologies for
mobile manufacturing plant, touted as the commercialisation to reap benefits of the fourth
biggest in the world, in Noida. industrial revolution.
• South Korean President also set a trade target of • On cooperation in the field of scientific and
technological research.
$50 billion to be achieved by 2030, up from the
• On cooperation in the field of biotechnology and
$20 billion at present. bio-economics, ICT and Telecommunications, etc.
• South Korea would be the second country after
China with whom India would undertake a joint project in Afghanistan.
• Joint Statement on Early Harvest Package of the Upgraded Comprehensive Economic Partnership
Agreement (CEPA): its objective is to facilitate ongoing negotiations on upgrading the India-South Korea
CEPA by identifying key areas for trade liberalisation (including shrimp, molluscs and processed fish).
India-South Korea relations
• Politically India played an important and positive role in Korean affairs after Korea's independence in
1945. Bilateral consular relations were established in 1962 which was upgraded to Ambassador-level in
1973. Since then various high level meetings have taken place between the two.
• In terms of Commercial relations, in course of time, RoK's open market policies found resonance with
India's economic liberalization and 'Look East Policy' as well as “Act East Policy”. Trade and economic
relations have gathered momentum following the implementation of CEPA in 2010 and the bilateral
trade in 2011 crossed USD 20.5 billion registering a 70% growth over a two-year period. Economic
engagement constitutes the core of our relations.
o India and South Korea launched an initiative ‘Korea Plus’, as proposed by Indian Prime Minister in
June 2016 to promote and facilitate Korean Investments in India.
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o Major Korean conglomerates such as Samsung, Hyundai Motors and LG have made significant
investments into India, estimated at over $4.43 billion (as of March 2017).
o The large trade deficit in South Korea’s favour has led India to be wary of further opening up. In
turn, Korean companies cite problems in doing business in India, despite a special “Korea Plus” desk
set up by the Prime Minister’s Office in
New Southern Policy
2015.
• The new S. Korean government is seeking to elevate
• Cultural Relations- To further enhance
strategic ties with the Association of Southeast Asian
cultural exchanges between India and Nations (ASEAN) on par with Korea’s four traditional,
Korea, various cultural centres have been major diplomatic partners of the United States, China,
established in Seoul, Busan, etc. Japan and Russia.
• Other Areas- Tourism between the two • It is a new policy orientation is being pursued under the
countries has always been low while government’s broader strategy of promoting a
strategically both New Delhi and Seoul are “Northeast Asia Plus Community for Responsibility-
preoccupied with tensions in their sharing (NEAPC)”.
immediate neighbourhoods. • New Southern Policy is one of the 3 parts of NEAPC
which would involve deepening relations with India as
Way forward well as the countries of Southeast Asia, including in the
economic realm.
• Trade: Agreement to invoke the “early • Moon’s New Southern Policy aims to strengthen the
harvest” clause in the 2010 CEPA will allow economic-cooperation and build a prosperous and
both to do away with tariffs in 11 areas, people-centric community of peace while India’s “Act
benefiting Indian seafood exporters and East Policy,” as articulated by Modi, focuses on
food processing units, as well as South promoting deeper economic engagement,
Korean petrochemical companies. reinvigorating cultural and civilizational relations, and
• Investment: More Korean companies developing new strategic partnerships with countries in
the Indo-Pacific region through continuous engagement
should be persuaded to invest, by
at bilateral as well as at multilateral levels. Both these
projecting a counter-narrative to the failed
policies show convergence in their objectives and
bid by the steel company Posco to set up its should further strengthen the Special Strategic
plant in Odisha. Much will depend on Partnership between India and South Korea.
negotiations on the regional free trade
agreement, the Regional Comprehensive Economic Partnership.
• Strategic front: On the strategic front, India has asserted its place as a “stakeholder” in the Korean
peace process, while South Korea has for the first time shown an interest in talking about an Indo-Pacific
policy.
• In the short term, a symbolic token towards shared interests will be seen in a joint “capacity-building”
programme in Afghanistan.
Conclusion
• South Korea can be an indispensable partner of India in its Act East Policy in the Indo-Pacific region.
• South Korea’s technological advancement and manufacturing capabilities can be helpful in India’s
economic growth and human resource development.
• At a time when U.S. foreign policy is capricious and unpredictable, and China’s is making purposeful
moves towards global domination, it is important that the South Korea-India partnership grows and
consolidates, to contribute to stability in the region.
About BIMSTEC
2.3. BIMSTEC SUMMIT • It was formed nearly two decades ago on June 06,
Why in News? 1997.
• It includes India, Bangladesh, Bhutan, Myanmar,
Recently, the 4th summit of the Bay of Bengal Nepal, Sri Lanka, and Thailand.
Initiative for Multi-Sectoral Technical and Economic • The permanent secretariat of BIMSTEC was
Cooperation (BIMSTEC) was held in Nepal. established in Dhaka in 2014.
• It is a sector-driven cooperative organization,
More about 4th summit starting with six sectors—including trade,
• The meeting is taking place after a gap of four technology, energy, transport, tourism and fisheries.
• It expanded to embrace eight more sectors—
years, the 3rd BIMSTEC Summit took place in
including agriculture, public health, poverty
Nay Phi Taw in 2014. alleviation, counter-terrorism, environment, culture,
people to people contact and climate change.
23
• Several important decisions taken in the summit include:
o Drafting a charter for BIMSTEC, which has functioned so far on the basis of the Bangkok Declaration
of 1997.
o Setting up of a Permanent Working Committee to provide direction during the period between two
summits and also to prepare the Rules of Procedure.
o The Secretariat has been promised additional financial and human resources and enhancement of
its role to coordinate, monitor and facilitate the grouping’s activities.
o Establishing a BIMSTEC Development Fund, with voluntary contributions from the Member States.
o Welcomed Thailand proposed new strategy of five pillars (viz. connectivity, trade and investment,
people-to-people contacts, security, and science and technology) as a part of rationalisation of focus
sectors
o Strongly condemn terrorism in all its forms and manifestations.
Significance of BIMSTEC Achievements of BIMSTEC
• Around 22% of the world’s population live in the • BIMSTEC Coastal Shipping Agreement and
BIMSTEC Motor Vehicle Agreement (MVA)
seven countries around the Bay of Bengal, with a
are being negotiated.
combined GDP close to $2.7 trillion. A fourth of the
• BIMSTEC countries have completed
world’s traded goods cross the bay every year. negotiations for the Memorandum of
• It has high economic potential, given the region’s Understanding (MoU) on the establishment
economic dynamism, huge markets and rich natural of the BIMSTEC Grid Interconnection.
resources. • BIMSTEC Agreement on Mutual Assistance
• It appears as a connector to multiple regional on Customs Matters has been signed and is
initiatives. Among seven-member countries, five under ratification.
members of BIMSTEC are also members of SAARC, • Considerable progress has been achieved in
two are part of ASEAN and six are part of SASEC. areas such as cooperation among national
security agencies, cooperation to check
• Bangladesh views BIMSTEC as a platform to position
security threats such as smuggling, human
itself as more than just a small state in the Bay of trafficking, drugs and piracy, etc.
Bengal and Sri Lanka sees it as an opportunity to • Secretariat has been established at Dhaka
connect with Southeast Asia and serve as the along with few BIMSTEC Centres in the
subcontinent’s hub for the wider Indian Ocean and region.
Pacific regions.
• For Nepal and Bhutan, BIMSTEC stands to further their aspirations to reconnect with the Bay of Bengal
region and escape their landlocked geographic positions.
• For Myanmar and Thailand, connecting more deeply with India across the Bay of Bengal would allow
them to access a rising consumer market and, at the same time, balance Beijing and develop an
alternative to China’s massive inroads into Southeast Asia.
• Importance for India
o For India, it is a natural platform to fulfil our key foreign policy priorities of ‘Neighbourhood First’
and ‘Act East’.
o Stagnation of SAARC is also a key reason for India to reach out to BIMSTEC as stagnation limited the
scope of India’s growing economic aspirations as well as the role it could play in improving regional
governance.
o BIMSTEC provides new battleground for India-China. It could allow India to push a constructive
agenda to counter Chinese investments such as in Belt and Road initiative, and follow international
norms for connectivity projects which Chinese projects are widely seen as violating.
o It could develop codes of conduct that preserve freedom of navigation and apply existing law of the
seas regionally.
o It could stem the region’s creeping militarisation by instituting, for instance, a Bay of Bengal Zone of
Peace that seeks to limit any bellicose behaviour of extra regional power
Challenges
• BIMSTEC Free Trade Agreement which was negotiated in 2004 boost the intra-regional trade from its
present level of 7% to 21% is yet to be finalized.
• India-Myanmar-Thailand Trilateral Highway had not been completed, which is crucial to trade
movement between the countries.
24
• BIMSTEC had the advantage of having a number of rising economies in the region but it was one of the
least integrated parts of the world.
• Lack of consistency in the Summit: In its 2 decades, BIMSTEC leaders met only thrice at the summit level.
• It has slow pace of growth due to absence of focus on areas of cooperation, weak institutional
mechanism, financial constraints etc.
• Terrorism is the most significant threat in the Bay of Bengal region as well as South East Asia and there is
need for more cooperation amongst the member states on this issue.
• Maritime Security Issues:
o 2015 Rohingya refugee crisis which made thousands of ‘boat people’ vulnerable to recruitment by
criminal networks, sea pirates, and Islamist militants.
o The Bay is also prone to some of the most severe natural disasters, incidents of sea piracy, and
illegal, unreported, and unregulated (IUU) fishing.
o At present, maritime security cooperation initiatives within the sub-region do not include all the
coastal Bay states– for instance, CORPAT exercises, Milan exercises, and the ‘IO 5’ grouping.
Way forward
• To make BIMSTEC further lucrative, there is a need for increasing its membership base. BIMSTEC should
consider expanding its membership to Indonesia, Malaysia, and Singapore, three major Asian powers
• BIMSTEC shall give special focus on BIMSTEC cross-border e-commerce and digital connectivity. It may
also consider opening a negotiation on BIMSTEC Railway Agreement
• More socio-cultural interactions will build greater sense of ownership of BIMSTEC among the people of
the region.
• A regional trade facilitation agreement is also needed for cooperation in the matter of customs, training
and capacity building, exchange of information, setting disputes, etc. It should also aim for regulatory
harmonisation to ensure export of goods without requiring additional certification.
• Strengthen IPR cooperation to help countries move higher up in the technology ladder, encourage
transfer of technology and stimulate innovation and creativity.
• BIMSTEC countries should facilitate air connectivity, particularly to link India’s Northeast with
Bangladesh, Myanmar and Thailand. It may prove to be a catalyst for promotion of tourism and services
trade.
• BIMSTEC should consider forging tie-ups with other multilateral organizations in areas like manpower
training, knowledge exchanges.
2.4. BRICS SUMMIT

Why in News? About BRICS
th
Recently, the 10 BRICS Summit took place • BRICs is the acronym coined by British Economist Jim
O’Neill in 2001. Officially formed in 2006, it originally
from 25th to 27th July, at Johannesburg in
included four emerging economies of Brazil, Russia, India
South Africa. The Theme of the summit was
and China. Its first summit took place at Russia in 2009.
‘BRICS in Africa: Collaboration for Inclusive Later in 2010, South Africa became the 5th member of the
Growth and Shared Prosperity in the 4 th grouping.
Industrial Revolution.’ About BRICS Part NIR
• It aims at deepening BRICS cooperation in digitalization,
About the Johannesburg Declaration:
industrialization, innovation, inclusiveness and investment
It reaffirms the principles of democracy, to maximize the opportunities and address the challenges
inclusiveness and agrees to fight arising from the 4th Industrial Revolution.
unilateralism and protectionism. Some of • It would enhance comparative advantages, boost economic
the important takeaways of Johannesburg growth, promote economic transformation of BRICS
Declaration includes: countries, strengthen sustainable industrial production
capacity, create networks of science parks and technology
• Multilateral Trading System: It stresses business incubators, and support small and medium-sized
the centrality of rules based, enterprises in technology intensive areas.
transparent, non-discriminatory, open
and inclusive multilateral trading based on WTO.
25
• Commitment to United Nations: It commits support for multilateralism and the central role of the United
Nations in international affairs and uphold fair, just and equitable international order, respect for
international law, promoting democracy and the rule of law.
• Importance of 4th Industrial Revolution: It recognizes the importance and role of culture as one of the
drivers of the 4th Industrial Revolution and acknowledges the economic opportunities that it presents. It
recommends the establishment of BRICS Partnership on New Industrial Revolution (PartNIR).
• On counter-terrorism: It calls upon the international community to establish a genuinely broad
international counter-terrorism coalition and support the UN's central coordinating role in this regard. It
calls for expeditious finalisation and adoption of the Comprehensive Convention on International
Terrorism (CCIT) by the United Nations General Assembly.
• Along with commitment towards strengthening cooperation in international peace and security there
were concerns against arms race in outer space and calls for strict compliance with the existing legal
regime providing for the peaceful use of outer space.
• Brazil to get a New Development Bank (NDB) regional office: The Declaration mentioned the creation of
the Project Preparation Fund and establishment of the NDB Regional Office in São Paulo, Brazil, which,
alongside the Africa Regional Centre, will help the NDB consolidate its presence in these continents.
Significance of BRICS
• Represents five countries and four continents: It consists of 43% of world population, 22% of the total
world GDP and 17% world trade share. According to a UN report, the combined output of BRICS countries
will surpass the aggregate GDP of US, Canada and other European nations by 2020.
• Influential grouping, including four developing and emerging economies and Russia, which promotes a
multi-polar world. It has expanded the arc of its interests and established new institutions and
partnerships. For instance, institutions like New Development Bank injected fresh driving force into the
mechanisms’ leading role in South- South cooperation.
• Platform for addressing Global issues such as IMF reforms, climate change, terrorism, etc. from the
perspective of emerging economies. BRICS nations adhere to the principle of equality, negotiations, and
pragmatic cooperation.
• Platform for addressing bilateral issues among it members. For instance, India has tried to use the
Summit level meets for resolving mistrust and complications with China.
• ‘BRICS outreach to Africa’ and ‘BRICS Plus’ formats: BRICS plus format initiated at Xiamen Summit in
2017 by inviting a few countries from different regions was emulated in Johannesburg Summit also. It
presents an opportunity for networking among different leaders.
• Diverse agendas under BRICS: It is also working in issues like Global Governance reforms, Women
Empowerment by a proposal to set up a BRICS Gender and Women’s Forum and setting up a vaccine
research center for immunization to promote research, develop and discover new vaccines.
• Multi-layered pragmatic cooperation has been established in the fields, such as economy and trade,
finance, industry and commerce, agriculture, education, healthcare, science and technology, culture,
think tanks and twinned cities which have imposed great influence on the international community.
Concerns
• Still far from achieving its initial goals such as a) Reform of global financial governance; b)
Democratization of United Nations and expansion of UNSC are work in slow progress.
• Contradicting views of the members: For instance China opposed India’s move to declare Pakistan
based terror outfits. It is also against India’s bid to UNSC and NSG membership. No decisions are taken
yet on BRICS Credit Rating Agency favored by India.
• Lack of commonality among the members: While Brazil, India and South Africa are democratic, China
and Russia are not. Brazil and Russia export hydrocarbons, China and India are net importers. China and
Russia are permanent members of the UN Security Council – the others are not. Structure of financial
systems, levels of income, education, inequality, health challenges also differ substantially within BRICS
which makes it hard for them to speak with a unified voice and to co-ordinate action.
• New Development Bank (NDB) yet to disperse loans to outside member countries: So far all the loans
dispersed totaling $5.1 Billion are to its members only, with other developing countries like African
country look at NDB for their infrastructural requirements.
26
Way Forward
• To address the asymmetry of power within the group and global governance they must reaffirm their
commitment to a multi-polar world that allows for sovereign equality and democratic decision-making.
• Building on the success of the NDB it must invest in additional institutions, for instance, an institutional
research wing, along the lines of the Organisation for Economic Co-operation and Development (OECD),
can offer solutions distinct from western-led knowledge paradigms and is better suited to the
developing world.
• BRICS must lead the effort to meet their commitments under the Paris Agreement on climate change
and the UN's SDGs by setting up a BRICS energy alliance and an energy policy institution.
• BRICS members must encourage direct interactions between their constituents as in the digital age,
seamless conversations amongst people, business and academia can foster relationships, which are
more likely to cement the future of this alliance than any government efforts.
2.5. INDIAN AID TO SAARC

Why in News?
• India’s financial assistance to SAARC neighbours has almost halved in the past five years, from about
Rs.6000 Crore in 2013-14 to Rs.3500 Crore
in 2017-18.
More on News
• The only exception was Maldives, to
which Indian assistance has been
consistently increasing.
• A possible explanation for the decline is
that the assistance figures did not include
the lines of credit (given at the minimal
interest rates of 1-2%) extended to Nepal,
Sri Lanka and Bangladesh.
• Another cause for such a trend can be the
fact that often these nations are not able
to absorb the additional aid.
• But the most important factor for these
trends is related to project cycles:
o In Afghanistan major projects — the
Salma dam and the Afghanistan
Parliament, were completed and
hence there is a natural decline until
next big project.
o In Bangladesh, the main grant for
land acquisition for the Akhaura-
Agartala rail link project has now been
completed leading to the declining
figure.
o In Bhutan, the assistance required for
major HEPs have been mostly
disbursed and assistance to Bhutan’s
five-year plan is nearly over.
(However, Bhutan continues to lead
the pack of South Asian nations to
receive developmental assistance
from India.)
o In Sri Lanka, the decline was explained by delays in land acquisition.
o The increasing trend in Maldives can be explained by the fact that India is still completing some
major projects there.
27
Declining Relevance of SAARC
• While the fall in aid can be explained as temporary phenomenon, there has been an evident decline in
SAARC’s relevance which can be seen through various instances:
o Though SAARC has succeeded in evolving as a SAARC
forum and a framework but has yet to develop into • South Asian Association for Regional
a conflict-mediating or conflict-resolving institution Cooperation (SAARC) is a regional
both on multilateral and bilateral issues. For e.g. intergovernmental organization in South
Regional Convention on Suppression of Terrorism Asia set up in 1985.
has failed to combat terrorist activity. • It comprises of eight Member States:
o Inability to create economic cooperation: Despite Afghanistan, Bangladesh, Bhutan, India,
the South Asia Free Trade Agreement (SAFTA) Maldives, Nepal, Pakistan and Sri Lanka.
coming into force the intra-regional trade in goods • Its Secretariat is in Kathmandu
• Australia, China, the European Union,
in the SAARC region remains around five per cent,
Iran, Japan, Mauritius Myanmar, South
and in services, barely 0.2 per cent, in comparison
Korea and the United States have
the intra-region trade in ASEAN is 26 per cent, and observer status.
in MERCOSUR, it is 15 per cent.
o Numerous agreements have been signed and institutional mechanisms established under SAARC,
but they have not been adequately implemented. For e.g.: the SAARC satellite project that India
proposed was abandoned following objection from Pakistan in 2016.
o Lack of tangible outcomes: International experts have termed it as a ‘zombie’ organisation which
maintains “a level of semi-regular operation”, but progress on its goals falls below expectation.
o SAARC has been unable to implement its plans for regional welfare leaving much of the
population in adverse socioeconomic conditions.
✓ The region is home to the world’s 400 million poor people, which means nearly 30 per cent of
the region’s population lives below the poverty line. All the SAARC countries have a low
ranking on the human development index (HDI).
o Emergence of other organisations like BIMSTEC are challenging the utility of SAARC.
• Lack of regular SAARC Summits: Although the SAARC Charter requires the heads of state to meet once
a year, there have been only 18 summits since 1985. (Recently India has refused to proceed with the
SAARC initiative citing continuing support to cross-border terrorism from Pakistan.
Reasons for declining relevance of SAARC
• Conflict and power asymmetry among members hinders it from making progress in regional
cooperation. For eg: Historical political tensions, mistrust, cross-border conflicts and security concerns
among two major players in India and Pakistan.
• Regional problems also have hindered cooperation: India-Sri Lanka disputes w.r.t. Katchatheevu island,
Pakistan-Afghanistan tensions, Bangladesh and Pakistan’s historical strained relationship, political
instability in Afghanistan, etc.
• SAARC’s emphasis on the principle of unanimity for decision making and exclusion of contentious
bilateral issues from deliberations makes the organisation fragile and vulnerable.
• Dominated by a single country: Most of other economic groupings, be it EU or ASEAN, are groupings of
the economies, which are more or less equal. But, SAARC is mainly dominated by India which accounts
for nearly 60 per cent of SAARC’s population, area or GDP.
• Limited transport connectivity, logistics and regulatory impediments have posed major hurdles for
trade. For e.g.: Trade and other relations between India and Afghanistan are hampered by the fact that
they don’t share any border and connectivity through Pakistan, and is dependent upon good relations
between India and Pakistan.
• SAARC faces a shortage of resources, and countries have been reluctant to increase their contributions.
• Political uncertainties: Some of the countries in the region have been suffering from political
uncertainties and the governments there have not been strong enough to take hard decisions which are
required to make any meaningful multi-lateral initiatives.
• Opinionated Bureaucracies: Most of the SAARC countries have strongly entrenched bureaucracies and
interest groups who look at every issue from a myopic and nationalistic view point.
28
• Lack of Motive for formation: It was not the pursuit of economic and developmental cooperation but
the need to evade the embarrassment of being a region devoid of a regional entity which was the
reason for the formation of SAARC.
Way forward
• SAARC comprises of rising economies which can provides large consumption market.
o SAARC can provide greater voice to its members during negotiations at the global roundtable such
as WTO, UN reforms, etc.
o It can provide an adequate forum to improve bilateral ties among nations. The informal sidelines of
SAARC have often served the as a tool to resolve differences and thawing hostility.
o SAARC can also help India to enhance its “Look West” policy.
• Challenges faced by SAARC member countries such as poverty, illiteracy, healthcare, infrastructure,
terrorism, etc are similar and finding solutions to them will be easier if the members work together. For
example, the establishment of South Asian University in New Delhi and “Delhi Declaration” on
education have provided a blueprint.
• SAARC should strive to enhance investment activity between its member states, and not merely trade.
South Asian joint venture promotion schemes should also be promoted on a priority.
• Broader popular support at the grass-root level must be vastly improved by encouraging freer legal
movement of people for economic and cultural tourism reasons by minimising immigration procedures.
• Effective steps must be undertaken to jointly deter cross-border, illegal migration, terror attacks and
block the narcotics trade and drug trafficking.
• SAARC nations should not internationalise any bilateral issue beyond the SAARC forum.
• India needs to play a larger role in resurgence of SAARC.
2.6. TRADE WARS

Why in News? What is a Trade War?
Several countries, mainly led by USA and China, have Typically rooted in ‘protectionism’, a trade war is a
recently resorted to unprecedented high tariffs on their situation where countries try and damage each
imports leading to a situation called trade wars. other’s economies through the imposition of
tariffs, quotas or other restrictions on imports and
Brief background exports. This can hurt other nations' economies
and lead to rising political tensions between them.
• In early March 2018, US President Donald Trump
proposed tariffs of 25% and 10% on imports of steel Protectionism: Protectionism is use of various
and aluminium, respectively, under ‘national security’ restrictions such as tariffs to boost the country's
industrial competitiveness, and shielding them
provisions of US trade laws.
from foreign competition.
• The US further expanded the imposition of tariffs on
more than 1,300 Chinese goods account for $46 billion of Reasons behind these moves
US imports from China. • US accusations against China regarding
• Reciprocating this, China imposed additional duty on 106 unfair trade practices, IPR violations and
American products in April, impacting almost $50 billion restricting US investments
worth of Chinese imports from the US. • To balance out rising trade deficits with
• Later India also imposed tariffs of 50% on a list of 30 China and address national security issues
goods imported from US in order to compensate the • Protecting local manufacturing and jobs.
losses accruing from US tariffs on steel and aluminium.
Similar moves were taken by European Union
Role of WTO
when it imposed tariffs on $3.3 billion of • WTO’s mission is to facilitate free and fair trade: It
American goods. does that by establishing rules, settling disputes and
• Trump rejected the G-7 communique that getting countries to talk to work out their differences.
endorsed a “rules-based trading system” for Countries that think other members are acting unfairly
the world and further promised levies on can use WTO councils, committees and its dispute
$200bn worth of Chinese products recently in settlement system to seek and obtain redress.
September. • Although requiring a long-drawn process to resolve
disputes, WTO still plays an important role in ensuring
fair trade: Both USA and China have previously
approached the WTO Dispute Settlement Mechanism
to resolve their disputes.
29
Global Impacts of the trade wars
• Damage the rules based trading system under the WTO: affect the global trade agreements and
questioning the relevance of WTO affecting multilateral trading system and globalisation.
• Weaken investments, depress spending, disturb financial markets and slowdown the global economy:
Investment decisions affect employment and taxes raised and uncertainties caused severely impacts
ease of doing business and employment generation. Slowdown in the global economy under the
increased burden of taxes will harm all the stakeholders and may result in global recession.
• Fall in global currencies resulting into trade plus currency wars: Currencies in various developing
countries such as Turkish lira, Chinese Yuan and Indian Rupee is in a free fall.
• Disrupt global supply chains, raising prices for consumers worldwide: tensions between the US
and China might go beyond taxes and directly disrupt global supply chains as investment is targeted. In
the worst-case scenario, companies may have to relocate factories or distribution centers.
• Increases inefficiency: Tariffs create ‘deadweight’ losses, encouraging production and consumption
inefficiencies—a net welfare loss to the US itself and to the global economy. The imposition of tariffs on
aluminium and steel will hurt competitiveness of the final goods produced in industries such as
automotive, machine tools and electronics, as was witnessed in the early 1980s when the US automotive
companies lost competitiveness to their Japanese counterparts.
• Denying market access to developing south: Trade facilitates capital flows and both help many
developing and lower income countries to participate in the global market and benefit from comparative
advantages, specialisation and technology transfers. Trade wars will impact them.
• Impacts on Asian and South-East Asian Economies: These countries such as Taiwan, Malaysia, and South
Korea are interdependent and are important for global manufacturing by producing components for
their final assemblage in China. Restrictions on global trade will impact their manufacturing and export
led growth.
Impacts on India
• Slowdown in growth: Along with global growth slowdown, Indian economy also faces a threat of
decline in growth.
• Reduced Indian exports: worsening already meager exports, U.S. tariffs on steel and aluminium would
cost India $241 million. This along with rising price of oil threatens to widen India's Current Account
Deficit (CAD), impacting India's macroeconomic stability.
• Falling Rupee: Rupee has already reached its historic low which would fuel inflation in the economy.
• Reduce investment flows in India: Volatility in global markets would reduce FIIs and FDIs which would
impact technology transfer and crucial foreign exchange.
• However, an Opportunity to reduce trade deficits: India has a wide trade deficit of more than $51 Billion
with China, which it can minimize by exporting key items such as Soybean. Similarly, India can utilize the
opportunity to occupy the void by increasing its exports of textiles, garments and gems and jewellery to
the USA.
• Increased domestic production and job creation: The trade war will shift the global production from
large MNCs to relatively smaller domestic businesses using more manual labour. This shift will lead to
larger creation of jobs in the domestic factories.
Way Forward
• India has rightly highlighted its preference of dealing with the issue through dialogue and not through
larger ‘retaliatory measures’.
• Taking help of WTO’s Dispute Settlement Body (DSB) for adjudicating trade disputes as done b y China
could be a potential step to normalise the situation.
• India should simultaneously maximize the benefits of bilateral and plurilateral trade mechanisms it is part
of and must strive to join new regional groupings such as RCEP, NAFTA, etc.
• Also China should voluntarily move towards a flexible exchange rate (allowing the yuan to appreciate,
which, in turn, will make imports cheaper) and enhances spending on social sectors like health and
education (which will enable households to save less and spend more in China, leading to more imports),
it will lower trade surplus.
30
2.7. GLOBAL REFUGEE CRISIS
Refugee crisis refers to movements of large
groups of displaced people, who could be either
internally displaced persons, refugees or other
migrants. According to the UN High
Commissioner for Refugees, in 2017, 65.6 million
people were forcibly displaced worldwide
because of persecution, conflict, violence, or
human rights violations alone.
Causes of Refugee Crisis
• War & civil war and Persecution: In June
2015 the UN refugee agency reported that
wars and persecutions are the main reasons
behind the refugee crises all over the world.
The social, economic and political instability
created due to war forces people to move
to other places in search of better life and
opportunities.
o Persecution may take many forms such
as religious, national, social, racial, or
political persecution. Some of religious
refugees include Rohingya Muslims
persecuted in Myanmar, Christians in
the Central African Republic to Hindus
in Pakistan.
• Human rights violations: Corruption, greed,
amassing of wealth by few people who are
in power has resulted in suffering of masses
especially in many African nations for
example Uganda, Nigeria, Zimbabwe, South
Sudan, Sudan, Eritrea who rank high in
corrupt countries.
• Environment and climate:
o Although they do not fit the definition
of refugees set out in the UN
Convention, people displaced by the
effects of climate change have often
been termed climate refugees.
o According to Internal Displacement
Monitoring Centre, every year since
2008, an average of 26.4 million persons
around the world have been forcibly
displaced by floods, windstorms,
earthquakes or droughts.
• Economic hardship: People also emigrates

from one region to another to seek an
improvement in living standards because
the living conditions or job opportunities in
the migrant's own region are not sufficient.
• Hunger: It’s estimated that 20 million people i n four North African and Middle Eastern countries —
Somalia, South Sudan, Nigeria, and Yemen — are facing extreme drought, and many of these individuals
are becoming refugees, forced from their homelands in search of stable food sources.
31
• Gender/Sexual Orientation: LGBT individuals are the targets of killings, sexual and gender-based
violence, physical attacks,
Refugee
torture, arbitrary detention,
accusations of immoral or A refugee is someone who has been forced to flee his or her country
deviant behaviour, denial of the because of persecution, war, or violence.
rights to assembly, expression Internally displaced person
and information, and An internally displaced person (IDP) is a person who has been forced to
discrimination in employment, flee his or her home for the same reason as a refugee but remains in his or
health and education in all her own country and has not crossed an international border. Unlike
regions around the world. refugees, IDPs are not protected by international law or eligible to receive
many types of aid. Examples include South Sudan and Yemen.
Arguments in favour and against of Asylum seeker
Refugees When people flee their own country and seek sanctuary in another
Benefits: country, they apply for asylum - the right to be recognized as a refugee
and receive legal protection and material assistance.
• Refugees will often do jobs that
people in the host country will not, or cannot do;
• They often work longer hours and for lower salaries, and while that is controversial, sometimes
exploitive, it benefits the host country;
• Refugees, when made to feel welcome in the host society, can contribute to the diversity of that
society, which can help with tolerance and understanding;
• For the host country’s economy, refugees offer an increased talent pool, if they have been well
educated in their original country.
Global Immigration Status
Drawbacks: • Worldwide, there is an estimated 191
million immigrants. The last 50 years
• Trafficking and forced labour: Women and children are has seen an almost doubling of
often an easy target for inhuman treatment. Further there immigration;
may be no access to schools for their children and no • 115 million immigrants live in developed
health services for the family. countries;20% (approximately 38
• Shadow Economy: The first economic impact of the million) live in the US alone, making up
refugee crisis can be seen as the emergence and thriving of 13% of its population; 33% of all
a shadow economy primarily due to their employment on immigrants live in Europe; 75% live in
lower wages. just 28 countries;
• Women constitute approximately half
• Security Concerns: It also raises security concerns as many
of all migrants at around 95 million;
unverified refugees may be extremists, terrorists or
criminal elements trafficking in drugs.
• Challenges to Regional Integration: In case of Europe the rising populism and nationalism in European
countries in the wake of refugee crisis sapped the coordinating and integrating capacity of European
Union. The European Union, which has been touted as the most successful example of regional
integration and was projected as the power house of future came under heavy strain.
• It can become a social/political issue, where
Other International Protocols: International
racism can be used to exploit feelings or as an
protocols
excuse for current woes of local population. • Convention on the Rights of the Child (1989)
Where there is a perception that immigrants and • Protocol against the Smuggling of Migrants by
refugees appear to get more benefits than local Land, Sea and Air (2000)
poor people, tensions and hostilities can also • International Convention on the Protection of the
rise. Generally, there is also Harassment by police Rights of All Migrant Workers and Members of
and officials of states where they have migrated Their Families (1990).
to.
• Concerns about illegal immigration can spill over to ill-feelings towards the majority of immigrants who
are law-abiding and contributing to the economy;
• Developing countries may suffer brain drain as the limited resources they spend in educating their
students amount to very little if that talent is enticed to another country. (The UK for example is often
accused of actively hiring medical staff from developing countries.)
32
Major Initiatives for refugees
• UN Refugee Convention (1951) grants certain rights to people fleeing persecution because of race,
religion, nationality, affiliation to a particular social group, or political opinion and who, on account of
that fear “is unwilling to return to their country of origin. The rights they are entitled to follow the
principles of non-discrimination, non-penalisation, and non-refoulement.
• There are various agencies of UN that deal with various aspects of migration, like-
o United Nations High Commissioner for Refugees (UNHCR)-facilitates the protection and provision of
humanitarian assistance to refugees worldwide. Along with the International Organization for
Migration (IOM), it is the lead agency for camp coordination and management. And it shares the
lead with respect to emergency shelter with the International Federation of Red Cross and Red
Crescent Societies.
o The United Nations Relief and Works Agency (UNRWA) for Palestine Refugees in the Near East
(UNRWA), established in 1949, is the main provider of basic services — education, health, relief and
social services — to registered
Palestine refugees in the About Global Compact for Migration
Middle East. • It is framed in consistent with target 10.7 of the SDG in which
Member States committed to cooperate internationally to
o UN peacekeepers are also
facilitate safe, orderly and regular migration.
deployed to protect the
• This Global Compact sets out a common understanding, shared
camps in which refugees must responsibilities and unity of purpose regarding migration, making
live. it work for all.
o The Inter-Agency Standing o Common understanding that current and potential migrants
Committee (IASC), through its must have full information about the rights and awareness of
“cluster approach”, brings the risks of irregular migration
together all major o Shared responsibility because no country can address the
humanitarian agencies, both challenges and opportunities of migration on its own
within and outside the UN o Unity of purpose as success of compact rests on mutual trust,
determination and solidarity of States to fulfill the objectives
system, for coordinated
• The major objectives of the compact include:
action.
o Minimize the adverse drivers and structural factors that
• The Dublin agreement: It is an compel people to leave their country of origin.
agreement by EU entered into o Enhance availability and flexibility of pathways for regular
force on the 1st January 2014. migration and reducing vulnerability in migration.
o It prescribes the criteria and o Facilitate fair and ethical recruitment and safeguard
the mechanisms of conditions that ensure decent work.
determination of the member o Manage borders in an integrated, secure and coordinated
State of EU which has the manner.
obligation to evaluate the o Use migration detention only as a measure of last resort and
work towards alternatives.
asylum request presented by
o Empower migrants and societies to realize full inclusion and
people who arrive in Europe. social cohesion.
o According to the agreement o Establish mechanisms for the portability of social security
the asylum request has to be entitlements and earned benefits.
presented in the European Importance of the agreement
country the person arrives in • It is not legally binding. It does not dictate nor impose and it fully
and thus makes that country respects the sovereignty of States.
assume the greater share of • It demonstrates the potential of multilateralism - our ability to
the asylum burden. come together on issues that demand global collaboration — in
• Recently EU leaders have also complicated and contentious issues
• It acknowledges climate change as a cause of migration and aims
struck a deal for tackling refugee
to develop approaches to address this challenge.
crisis through Tightening rules on
• It will protect members of a vulnerable population who are often
‘secondary’ migration, building demonized and attacked while risking their lives during migration.
‘controlled centers’ across the EU,
Establishing Regional Disembarkation Platforms in countries outside the E.U., Strengthening the EU’s
borders and undertaking EU asylum policy reform.
• Nansen Initiative (2012): It’s a state-led consultative process to build consensus on a protection agenda
addressing the needs of people displaced across borders in the context of disasters and the effects of
climate change i.e. the “Climate refugees”.
33
• New York declaration on migrants and refugees (2016): It is a UN declaration which contains a wide
range of commitments by Member States to strengthen and enhance mechanisms to protect people on
the move. It has three concrete plans for:
o Paving the way for the adoption of two new global compacts in 2018: a global compact on refugees
and a global compact for safe, orderly and regular migration and has further suggested concrete
plans.
o Develop guidelines on the treatment of migrants in vulnerable situations which will be particularly
important for the increasing number of unaccompanied children on the move.
o Achieve a more equitable sharing of the burden and responsibility for hosting and supporting the
world’s refugees by adopting a global compact on refugees in 2018.
• UN’s Global Compact on Migration- United Nations member states (except the U.S. and Hungary) have
recently agreed on a Global Compact for Migration to better manage international migration. It is the
first, inter-governmentally negotiated agreement and is framed consistent with target 10.7 of the 2030
Agenda for Sustainable Development in which member States committed to cooperate internationally to
facilitate safe, orderly and regular migration.
Suggestions to tackle Migration Crisis
• An international summit on the global refugee crisis focused on increasing international responsibility
and burden-sharing;
• Global ratification of the Refugee Convention: UNICEF’s specific actions to protect refugee
and migrant children
Although 145 countries have ratified the Refugee
• Protecting child refugees and migrants,
Convention, there are regions of the world in which very particularly unaccompanied children from
few countries have ratified the treaty, including most of exploitation and violence.
the Middle East, South Asia and South East Asia. • Ending the detention of children seeking
Countries need to sign and ratify the 1951 Refugee refugee status or migrating by introducing
Convention and its 1967 Protocol without reservations a range of practical alternatives.
or geographical limitations and enact domestic law to • Keeping families together as the best way
implement its provisions. to protect children and give children legal
• Develop robust domestic refugee systems: states must status.
have fair domestic procedures to assess refugee claims • Keeping all refugee and migrant children
learning and giving them access to health
and must guarantee fundamental rights and access to
and other quality services.
services, such as education and healthcare, to refugees.
• An absolute commitment to saving lives first: states must prioritise saving people in distress over
implementing immigration policies. In situations where people are in danger of death, including – but not
limited to – people attempting sea crossings, states should invest in search and rescue operations and
immediately come to the rescue of people in distress.
• Combat trafficking: states must take effective action to investigate and prosecute trafficking gangs.
States should offer protection and assistance to victims of trafficking an ensure they have access to
refugee status determination procedures and/or resettlement opportunities
• Resettle refugees: Resettlement should be undertaken with spirit of global solidarity with countries of
first asylum and resettlement countries should ensure efficient and gender-sensitive refugee selection
and security screening processes, prioritizing resettlement for refugees who are not safe in the country
of first asylum, including those with particular health needs.
• Combat xenophobia: Governments must refrain from engaging in xenophobia themselves, for example
by implying or directly claiming asylum-seekers and migrants are to blame for economic and social
problems. Governments must also have effective policies to address xenophobic violence;
• Provide inclusive humanitarian and development assistance: Fully meet funding appeals by international
humanitarian agencies, in addition to other bilateral support, to allow refugees in countries of first
asylum to live in safety and dignity.
• Establish a global refugee fund: Such a fund should fulfil all UN humanitarian appeals for refugee crises.
This fund should also provide meaningful financial support to countries hosting large numbers of
refugees to help them provide services to refugees and their host communities. This should be additional
to existing development aid.
• Ending the violent conflicts: Countries must invest heavily in the peace process and work vigorously
towards ending the violent conflicts that are the principal causes of the crisis.
34
2.8. UN PEACEKEEPING
Why in News?
The United Nations celebrated the 70th anniversary of UN Peacekeeping in 2018.
About UN Peacekeeping
• UN Peacekeeping is a technique designed to preserve the peace, however fragile, where fighting has
been halted, and to assist in implementing agreements achieved by the peacemakers. It is a unique and
dynamic instrument to help countries torn by conflict transition to lasting peace.
• UN Peacekeeping was born at a time when Cold War rivalries frequently paralyzed the Security Council.
The first UN peacekeeping mission was established in May 1948, when the UN Security Council
authorized the deployment of UN military
Three basic principles of UN peacekeeping operations:
observers to the Middle East to form the These principles, act as a tool for maintaining international
United Nations Truce Supervision peace and security, are inter-related and mutually
Organization (UNTSO) to monitor the reinforcing:
Armistice Agreement between Israel and its • Consent of the parties: UN peacekeeping operations
Arab neighbours. are deployed with the consent of the main parties to
• Over the past 70 years, more than 1 million the conflict which requires a commitment by the
men and women have served under the UN parties to a political process and their acceptance of a
flag in more than 70 UN peacekeeping peacekeeping operation provides the UN with the
necessary freedom of action, both political and
operations. More than 100,000 military, police
physical, to carry out its mandated tasks.
and civilian personnel from 125 countries
• Impartiality: United Nations peacekeepers should be
currently serve in 14 peacekeeping operations. impartial in their dealings with the parties to the
• In the early years, UN Peacekeeping’s goals conflict, but not neutral in the execution of their
were primarily limited to maintaining mandate.
ceasefires and stabilizing situations on the • Non-use of force except in self-defence and defence
ground so that efforts could be made at the of the mandate: UN peacekeeping operations are not
political level to resolve the conflict by an enforcement tool. However, they may use force at
peaceful means. Those missions consisted of the tactical level, with the authorization of the
military observers and lightly armed troops Security Council, if acting in self-defence and defence
of the mandate.
with monitoring, reporting and confidence-
building roles in support of ceasefires and limited peace agreements.
• Today's multidimensional peacekeeping operations involve civilian, military and police personnel
all working together and are called upon to maintain peace and security, and also to facilitate the
political processes, protect civilians, disarm combatants, support elections, protect and promote human
rights and restore the rule of law.
Role of India
• India has lost the highest number of its peacekeepers in various UN peacekeeping operations in the last
70 years, with 163 military, police and civilian personnel from the country laying down their lives in the
line of duty.
• India is currently the third largest contributor of military and police personnel to UN peacekeeping, with
6,693 now deployed in Abyei, Cyprus, Congo, Haiti, Lebanon, the Middle East, South Sudan and Western
Sahara.
Successes of UN Peacekeeping Operations Major Failures of UN Peacekeeping Operations

• Women peacekeepers today play an increasingly • An internal study by UN found that UN
prominent role and are crucial towards improving the peacekeeping missions routinely avoid using
performance. They serve as police officers, troops, force to protect civilians under attack,
pilots, military observers, and other uniformed and intervening in only 20% of cases despite
civilian posts, including in command positions. being authorized to do so by the UNSC.
• Sierra Leone (1999 to 2005): A successfully • Srebrenica (1995): Towards the end of
completed mission by the peacekeepers of Bosnia’s 1992-1995 war, Bosnian Serb forces
implementing a peace agreement in the country after executed 8000 Muslims, making it the worst
the devastating civil war. massacre post Second World War European
35
history despite the presence of
peacekeeping troupes.
• Burundi (2006): UN peacekeeping operations helped • Rwanda genocide (1994): UN ignored
it recover from decades of ethnic war. evidence that the genocide was planned and
refused to act once it had started.
• Other successful peacekeeping operations where it • Somalia (1995): UN withdrew all
helped end conflicts and foster reconciliation in peacekeeping troupes in Somalia after killing
dozens of countries, including Cambodia, El Salvador, of many US soldiers, led many UN officials to
Guatemala, Mozambique, Namibia and Tajikistan. describe it as a greatest failure of our
These impressive records of peacekeeping lifetimes.
achievements led it to win Nobel Peace prize in 1988.
Reforms needed in UN peacekeeping operations:
• Politics and cooperation must drive the design and implementation of peace operations.
• The full spectrum of United Nations peace operations must be used more flexibly to respond to
changing needs on the ground: The sharp distinctions between peacekeeping operations and special
political missions should give way to a continuum of responses and smoother transitions between
different phases of missions. The United Nations should embrace the term “ peace operations” to
denote the full spectrum of responses required and invest in strengthening the underlying analysis,
strategy and planning that leads to more successful designs of missions. These must be drawn upon to
deliver quick situation-specific responses in a sequenced and prioritized manner.
• A stronger, more inclusive peace and security partnership is needed for the future: A stronger global-
regional peace and security partnership is needed to respond to the more challenging crises.
• The United Nations Secretariat must become more field-focused and United Nations peace operations
must be more people-centered: awakening of United Nations Headquarters to the distinct and
important needs of field missions, and a renewed resolve on the part of United Nations peace operations
personnel to engage with, serve and protect the people they have been mandated to assist.
• Conflict prevention and mediation must be brought to the fore: At the global level, the UN must
mobilize a new international commitment to preventing conflict and mobilizing partnerships to support
political solutions. It must find ways to draw upon the knowledge and resources of others beyond the
United Nations system through civil society, including community, religious, youth and women groups,
and the global business community.
• Setting clear direction and forging common purpose: Achievable mandates can be crafted through
meaningful and effective consultations between the Security Council, Secretariat, regional actors and,
when uniformed forces are required, with troop- and police-contributing countries.
• Improving the speed, capability and performance of uniformed personnel: The UN and its partners
must overcome significant constraints to rapid deployment in response to crises.
• Engaging with host countries and local communities: By shifting from merely consulting with local
people to actively including them in their work, missions will be able to monitor and respond to how
local people experience the impact of peace operations.
• Addressing abuse and enhancing accountability: Troop-contributing countries must vigorously
investigate and prosecute national personnel indulging in sexual exploitation and abuse. The UN should
ensure that individual victims of sexual exploitation and abuse are compensated for the harm they suffer
from UN personnel.
Conclusion
The UN Secretary-General recently launched an Action for Peacekeeping (A4P) to renew mutual political
commitment to peacekeeping operations. Through this the Secretary-General called on Member States, the
Security Council, host countries, troop and police contributing countries, regional partners and financial
contributors to renew their collective engagement with UN peacekeeping and mutually commit to reach for
excellence.
36
3. ECONOMY
3.1. FINANCIAL INCLUSION IN INDIA
Why in News?
Financial inclusion may be defined as the
Recently, NABARD All India Rural Financial Inclusion Survey process of ensuring access to financial services
(NAFIS) 2016-17 was released. (such as saving account, low cost credit,
financial advisory services, and insurance
Importance of Financial Inclusion facilities) to weaker sections and low-income
• GDP: Financial inclusion and its direct correlation to groups at an affordable cost.
poverty. Varied studies have proved that exclusion from Objectives of Financial Inclusion
the banking system results in a loss of 1% to the
• To provide access to various mainstream
country’s gross domestic product (GDP).
financial services such assavings bank
• Formalisation: It would create a formal system of credit account, credit, insurance, payments and
availability for small businesses or microenterprises, remittance and financial and credit
thus helping owners invest in assets and grow their advisory services.
businesses. • To provide the benefit of vast formal
• Improve Access to Insurance resulting in a cushion financial market and protect the excluded
against unplanned expenses in the form of emergencies from exploitation of informal credit
such as illness, natural disaster, crop loss or loss of market so that they can be brought into
employment. the mainstream.
• Benefit for Banks: Financial inclusion broadens the resource base of the financial system by developing a
culture of savings among large segment of rural population and plays its own role in the process of
economic development.
• Benefits to government: Financial Inclusion enable Direct Cash Transfer into the beneficiary account,
resulting into minimizing transaction costs, plugging leakage in the distribution network, identification of
ghost beneficiary, reaching to intended beneficiary and timely delivery of services.
• Removing Moneylender: It mitigates the exploitation of vulnerable sections by the usurious money
lenders by facilitating easy access to formal credit.
• It Empowers people with the skills and knowledge to make the right financial decisions
• Check on Illicit Money: Reduction in cash economy as more money is brought into the banking
ecosystem.
• Encourage Entrepreneurship: Availability of adequate and transparent credit from formal banking
channels will foster the entrepreneurial spirit of the masses to increase output and prosperity in the
countryside.
• Achieving Inclusive Growth by enabling the poorest and
most vulnerable in society to step out of poverty and
reduces the inequality in society.
Challenges
• Demand Side Constraint:
o Lack of awareness, poverty and illiteracy are among
factors that lead to low demand for financial services,
and consequently, to financial exclusion.
o Unfriendly and Unempathetic attitude of the banks to
the customers also plays an important role in
undermining the demand for financial services.
• Supply-side constraints
o Low level of penetration of "brick and mortar" bank
branches especially in rural areas moreover financial
products are often not structured, distributed, or
bundled to meet the needs of women.
o The basic infrastructures required like Internet with
adequate speed, devices (smart phones and
computers), electricity etc. which forms backbone for financial inclusion are not adequately available
37
o Social Cost: Lack of communication,
language barriers and low literacy levels
also raise the cost and inhibit bankers from
taking initiatives.
• Procedural hurdles involved in formal banking
services, provides disincentive to people for
movement toward credit from informal sources
even though it results in compromised
standards of living, higher costs on account of
dependence on unethical and unregulated
providers, greater incidence of crime, and
increased unemployment.
Extent of Financial Inclusion in India

• Improving Overall Inclusion: According to
CRISIL Inclusix report 2017, Financial inclusion
has significantly incrrased in India, with the all-
India score rising to 58.0 in fiscal 2016,
compared with 50.1 in fiscal 2013, propelled by
two major factors:
o Significant increase in the number of
deposit accounts, largely because of the
Jan-Dhan initiative.
o Sharp increase in the number of credit Need for Women’s Financial Inclusion
accounts across regions. • Poverty reduction measure- Various studies have
• Increasing Rural Financial Inclusion: According shown that women are more likely than men to live
to NAFIS, 88.1 % of rural households and 55 % of in the poorest households in 41 out of 75 countries.
agricultural households reported having a bank Lack of access to financial services reduces
account, with average savings of Rs 17,488 per women’s ability to climb out of poverty; increases
their risk of falling into poverty, etc.
annum per household.
• Need for Credit: While women represent a larger
o Average Indian farming household, which
share of the self-employed in developing countries
accounted for 48% of rural households, and thus are in greater need of access to formal
earned 8,931/month (1,07, 172/year) in the financial services, they are less likely to secure bank
agriculture year 2015-16. While non- credit according to research by the World Bank.
agricultural households reported average • Gender Equality: It creates gender equality by
annual income of Rs 87,228 majorly empowering them and giving them greater control
contributed by wages (54%), followed by over their financial lives. This, in turn, often results
salaries (32%) and non-farm sector activities in higher spending on necessities such as health and
(12%). Agricultural households earned 23% education.
more than non-agricultural households. • Social Empowerment: This investment in the
health, nutrition and education for herself as well as
• Improving Women Inclusion: According to the
her family leads to investments that drive inter-
World Bank’s Global Findex Survey (2017), India generational change with a ripple effect in her
has reduced its gender gap in account community.
ownership to 6.4% from 19.8% in 2014. In 2017, • Overall National Development: Women’s economic
77% of Indian women own a bank account. empowerment should to be a priority on the
However, broader financial inclusion of women region’s development agenda as it is a powerful
into formal finance is lacking: catalyst for progress. When women generate their
o Savings: Out of total women bank account own income, experience shows that they invest in
holders, less than a fifth (16.7%) save their families and communities.
Challenges specific to women's financial inclusion
formally at banks compared to 26% of
• Safety concerns, socio-cultural restrictions prevent
global average.
their empowerment, bargaining and decision-taking
o Borrowings: Women trail behind even strength.
more in access to formal credit markets, • Lack of collateral and low level of disposable
Only 5% took out a loan while the global income makes many of them high-risk borrowers.
average is 9% on the other hand 30%
continue to borrow informally (family and friends).
38
o Others: Indian women are less financially included than men by other metrics as well like owning
debit cards, account usage for remittances, credit-card ownership among others.
RBI Committee (Deepak Mohanty) recommendations

• Banks have to make special efforts to step up account opening for females, and the Government may
consider a deposit scheme for the girl child – Sukanya Shiksha - as a welfare measure.
• For stability of the credit system: A unique biometric identifier such as Aadhaar should be linked to each
individual credit account and the information shared with credit information companies.
• Government to people (G2P): there is a need for better use of the mobile banking facility for G2P
payments, and his would push government in its financial inclusion drive.
• Last-mile service delivery: A low-cost solution should be developed by utilization of the mobile banking
facility for maximum possible G2P payments.
• Banks’ business model to integrate Business Correspondents (BCs) with appropriate monitoring by
designated link branches and greater mix of fixed location BC outlets to win the confidence of the
common person.
• Financial Literacy Centre (FLC) network to be strengthened. Banks to identify lead literacy officers to be
trained by the Reserve Bank in its College of Agricultural Banking (CAB) who in turn could train the
people manning the FLCs.
• Establishing a system of professional credit intermediaries/advisors for MSMEs to help both the sector
banks in credit assessment.
• Specialised interest-free windows: An interest-free banking structure, the bank accepting deposits will
not engage in lending as a purely financial activity but undertakes operations on the basis of profit and
loss sharing by engaging in equity and/or trade financing.
Way forward
• Language: large section of population is not conversant in Hindi and English, banking sector are
therefore required to adopt procedural formalities in regional languages.
• Addressing social Issues: Community focused education especially focus in resolving the social issue
which restrict the women financial role in household, must be promoted.
• For addressing the demand-side constraints
o Workforce participation needs to be improved through skill development and promoting
entrepreneurship (Skill India mission, Startup and Standup India scheme)
o Changing social attitude towards women in order to increase their agency in every field; address
security concerns; and ensure property rights through strengthening enforcement of legal
mechanisms.
o Improving Financial literacy with adequate focus
on financial and digital literacy through various
non-governmental organisations and other
government interventions (Pradhan mantri digital
saksharta abhiyan and Pradhan mantri vittiya
saksharta abhiyan)
• For addressing the supply-side constraints
o More number of bank branches need to be
opened especially in rural areas, accessibility can
also be increased through well trained banking
correspondents. Financial products should also be
tailor made to meet specific demands of women.
o Improving access of digital space through
providing better internet speed (Bharatnet
Programme) and devices such as smartphones at a
subsidised rate can substantially improve financial inclusion.
✓ Bundled solutions of savings, credit, and insurance could be designed to be more relevant to
women’s financial lives.
• Achieving Sustainable Development Goals: Greater access to financial services would assist in
eliminating poverty, creating jobs, improving gender equality or good health (CGPA 2016).
39
Government Initiatives for financial Inclusion
• In 1904, co-operative movement and in 1969 Bank nationalisation programme (14 major commercial
banks were nationalised).
• Swabhimaan, programme for financial inclusion, to bring the deprived sections of society into the
banking network.
• RBI formulated two financial inclusion plans (FIPs).
o First FIP: was rolled out for 2010-2013 targeting 74,414 unbanked villages with population more than
2,000 and achieved 99.7% of the target.
o Second FIP: was for 2013-2016 targeting 491,825 unbanked villages with population less than 2,000
and achieved 96%.
• Differentiated banking licences for small banks and payments banks (recommended by Nachiket Mor
Committee), approvals for 10 small finance banks were issued.
• Pradhan Mantri Jan-Dhan Yojana launched in August 2014 has made remarkable progress with over 30
crore account and deposit of over 80000 crore in accounts, opened since the launch.
• Demonetisation: The government has made a major policy thrust toward digital payments since
demonetization. The widespread rollout of Aadhaar enabled customers to use digital BC payment points
in addition to ATMs and service terminals has equally benefitted women.
• Indian Postal Payment Bank: It aims to bridge the last-mile gap in banking services, by deploying around
300,000 postmen, gramin dak sewaks with cell phones and biometric devices to offer doorstep banking,
mainly in rural areas.
3.2. WAGE INEQUALITY IN INDIA

Why in news?
International Labour Organization has warned about
the Wage Inequality in India in its recent report titled
“India Wage Report: Wage policies for decent work
and inclusive growth”.
Highlights of the report
• Real wages though doubled to rupees 247 from
1993-1994 to 2011-2012, but its growth rate is slow
compared to average labor productivity i.e. GDP
per worker.
• Labour share as proportion of national income has
declined 38.5% in 1981 to 35.4% in 2013.
• In 2009-10, third of all wage workers were paid
less than national minimum wage that includes
41% of all casual workers and 15% of salaried
workers.
• There is huge gender gap and wage gap still
persists in rural vis-a-vis urban as well as regular
vis-a-vis casual labour.
Consequences of wage inequality
• Informality and segmentation in labour and
resultant resource distribution inequality leads to
education, health and socio-economic
discrimination, aggravating poverty and increase in
crime.
• Economic disparity undermines civic cooperation
and increases social disparity.
• Give rises to crony capitalism, undermining
democratic governance structure leading to injustice.
40
Way forward
• Uniformity in wages: There is regional disparity in wages as labour is a state subject. Thus, Statutory
national wage law such as Wage Code Bill, 2017 should be enacted for Universalization of minimum
wages.
• Stronger implementation of minimum wage laws which includes stringent penal provisions, mandatory
display of notifications at workplaces and greater publicity, a national toll free hotline to handle
complaints, and the use of bank transfers or other measures to improve documentation of wage
payments.
• Minimum wage law should extend its legal coverage to all workers in all sectors, industries and areas of
India.
• Democratic, inclusive and participative labour unions to increase the collective bargaining power of
labourers.
• There should be collaboration between government agencies, academic institutions & expert
organisations and well-defined responsibilities should be outlined for employers, trade unions and
governments.
• Lack of timely data is a hindrance and this latest report also was dependent on 2011-12 data from the
Employment and Unemployment Survey (EUS) of the NSSO. Thus, comprehensive data collection should
be undertaken with state specific technology driven data for making more realistic interventions.
• Labour intensive manufacturing should be pursued with equal opportunities for women.
3.3. RYTHU BANDHU SCHEME

Why in news?
About Universal basic Income (UBI)
Recently Telangana It is an unconditional cash transfer to every citizen of the country periodically.
government launched a Argument in favour of UBI
scheme named Rythu Bandhu
• Poverty and vulnerability reduction: UBI will result in equitable distribution
(Friend of farmers) scheme to
of wealth
support farmers. • Choice: Citizens have a choice of using welfare spending as they see best.
About Rythu Bandhu Scheme Also, Increased income will increase the bargaining power of individuals, as
they will no longer be forced to accept any working conditions.
• It is first of a kind • Better targeting: As all individuals are targeted, exclusion error is zero.
investment support • Insurance against shocks: This income floor will provide a safety net against
scheme for farmers which health, income and other shocks.
involves cheque • Improvement in financial inclusion as Payment – transfers will increase the
payments to farmers demand for financial services, thereby, leading to investment in the
based on their expansion of service network of banks.
landholdings. The • Psychological benefits: A guaranteed income will reduce the pressures of
finding a basic living on a daily basis.
government gives every
• Administrative efficiency: UBI in place of a plethora of separate
beneficiary farmer Rs.
government schemes will reduce the administrative burden on the state.
4,000 per acre as
Arguments Against UBI
“investment support”
before every crop season. • Conspicuous spending: Households may spend this additional income on
wasteful activities or on temptation goods like alcohol, tobacco.
• The objective is to help
• Moral hazard: A minimum guaranteed income might make people lazy and
the farmer meet a major
opt out of the labour market.
part of his expenses on
• Gender disparity induced by cash: Men are likely to exercise control over
seed, fertiliser, pesticide, spending of the UBI which may not always be the case with other in-kind
and field preparation. transfers.
• The scheme covers 1.42 • Fiscal cost given political economy of exit: Given the large population size,
crore acres in the 31 the fiscal burden on government would be high. Also, once introduced, it
districts of the state, and may become difficult for the government to wind up a UBI in case of failure.
every farmer owning • Political economy of universality – ideas for self-exclusion: Opposition may
land is eligible. arise from the provision of the transfer to rich individuals as it might seem
to trump the idea of equity and state welfare for the poor.
41
Benefits of scheme
• The scheme will avert the need for going to moneylenders for money before every crop season and help
rid of debts over the 4-5 years.
• The government will issue cheques rather than make Direct Benefit Transfer (DBT) which eliminates the
possibility of banks adjusting DBT money against farmers’ previous dues.
• It can be the template for social and agricultural policy. It is seen as a trial for universal basic income in
the country.
Challenges/ Drawbacks of scheme
• Lack of proper land records resulted in many farmers left out of the scheme. Several cheques have been
returned due to discrepancies in names or survey numbers.
• The scheme does not exclude rich farmers and wealthy landlords. The scheme does have a provision
under which cheques can be returned to the local authorities. But that provision is only voluntary.
• The scheme leaves out tenant cultivators which constitutes an estimated 40% of Telangana’s farming
population and mostly coming from the poorest and most disadvantaged backgrounds.
3.3.1. UNIVERSAL BASIC INCOM E V/S TARGETED TRANSFER SCH EMES

Targeted Schemes
• The evidence from Indonesia and Peru shows that existing targeting methods in developing countries,
while imperfect, appear to deliver substantial improvements in welfare compared to universal programs,
because they can transfer much more on a per-beneficiary basis to the poor as compared with universal
programs.
• The primary downside of these programs is exclusion error – because targeting is imperfect, there will
be a substantial number of poor households who are excluded.
Improving the method of targeting
• Community-Based Targeting Process: fixed number of program slots are allocated to a given
community, and through a participatory meeting they decide who among them is most in need. It leads
to more transparency ,and better inclusion. To better institutionalized it, local bodies should be
strengthened, and people should be made aware of using social auditing tools.
• Use of technology: cash transfers at an accelerated pace with the use of Jan-Dhan, Aadhaar and mobile
would lead to better targeting and operational efficiency. This will help reduce costs and spare resources
for capital spending to augment growth.
• Conditional Transfers: programs with explicit conditions that beneficiaries must meet in order to receive
assistance. For example, giving cash transfers to poor households who also meet basic maternal and
child health and education conditions. A number of randomized trials of these programs showed that
these programs led to substantial improvements on the conditioned indicators.
Conclusion
The gains or leakages from welfare schemes ultimately depend on the precision of the targeting mechanism.
Regardless of whether India moves towards a quasi-universal Universal Basic Income or continues with
targeted programs, better targeting can certainly sharpen the impact of government expenditures on
welfare programmes.
3.4. AFFORDABLE HOUSING IN INDIA

According to the GoI, Affordable housing (AH) refers to any housing that meets some form of affordability
criterion, which could be income level of the family, size of the dwelling unit or affordability in terms of EMI
size or ratio of house price to annual income.
Significance
• The cities of India are under immense pressure and struggling to accommodate the ever-growing
migrant population.
• Exponential urbanization and increase in slum settlements, lack of basic services, limited access to
quality healthcare and education are leading to decrease in the quality of life of the migrants.
42
• The Ministry of Housing estimated a housing
shortage of 18.78 mn houses during the 12th
plan period, with 99% in the economically
weaker section (EWS) and lower income
groups (LIG).
• The country’s total urban housing shortage is
projected to be about 30 mn by 2022. This
ever increasing gap between demand and
supply in the affordable housing is forcing
people to live in slums and informal
settlements.
• A thrust on Affordable Housing will not only
lead to better quality of life, but also
significantly provide a boost to the GDP of the
country.
Critical Issues & Challenges
• Improper selection of land parcels for AH
projects: High prices and lack of availability of
land within city limits is discouraging
developer driven projects. Also, lack of
employment opportunities in the vicinity
discourages people from staying in these
units.
• Lengthy statutory clearance &
approval processes: It takes over Provisions in the Union Budget 2017-18
2 years to obtain all the 20-30 The Union Budget 2017-18 announced a number of measures to boost
required approvals through affordable housing:
multiple authorities which • Granting infrastructure status to affordable housing.
increase the gestation period • Increasing the time for project completion to affordable housing
and project cost. promoters from earlier three years to five years.
• Providing a year’s time to developers to pay tax on notional rental
• Shortcomings in development
income on completed but unsold units.
norms, planning* & project
• Reducing the tenure for long-term capital gains for affordable
design: such as Incongruence housing from three to two years.
between the affordable housing • Revision of the qualifying criteria for affordable housing from
policies of Central and State saleable area to the carpet area.
governments creating hurdles in • Re-financing facility by National Housing Bank (NHB) for individual
availing the benefits, insufficient loans for the affordable housing segment.
action in providing social and
external connectivity infrastructure by the concerned authority etc.
• Challenges in Beneficiary selection: Lack of a beneficiary database to facilitate AH developers to identify
their target customers.
• Capacity constraints such as Inadequate capacity of implementing agencies and lack of mainstreaming
of low cost technologies to achieve economies of scale.
• Lack of participation of large organised real estate players due to low profit margins and high
sensitivities to changes in input cost, project delays etc.
• High cost of construction finance due to lack of suitable credit enhancing financial products for
developers as well as lack of a suitable mechanism or funds for maintenance.
Government of India Initiatives & Interventions
• Pradhan Mantri Awas Yojana (PMAY- 2015): To address the shortcomings of the erstwhile programs and
to evolve an all-encompassing scheme.
• External Commercial Borrowing (ECB) has been allowed for affordable housing projects from 2012 to
enable lower interest cost for developers.
• Opening up of Foreign Direct Investment (FDI) for development of townships, housing, built-up
infrastructure and construction-development.
43
• The Credit Risk Guarantee Fund with a corpus of Rs 1200 Cr in collaboration with NHB was set up (2012)
to facilitate credit availability to low income customers without any collateral.
• Tax free bonds are issued by HUDCO and NHB to ensure Central Government schemes to boost
lower cost of borrowing by them and in turn reduce Affordable Housing
their onward lending costs. • National Urban Housing And Habitat
• Real Estate Regulatory Authority (RERA): It will infuse Policy, 2007:
fresh buyer interest in the sector via facilitating joint • Jawaharlal Nehru National Urban
development agreements with revenue share, increased Renewal Mission (JNNURM-2005)
land transactions with distressed asset owners selling • Basic Services for the Urban Poor (BSUP)
land parcels to larger developers, timely delivery of • Integrated Housing and Slum
Development Programme (IHSDP)
projects, etc.
• Interest Subsidy Scheme for Housing The
• Efforts in increasing the ease of doing business
Urban Poor (ISHUP)
especially in obtaining construction permits in urban
areas has been stepped up.
• 6 Public Private Partnership options developed for development of Affordable housing on Government
land.
Way Forward
• Balancing safety and costs: Policy makers, developers must pay heed to factors such as skill level of
labour, budget and deadlines, mitigation measures for foreseen risks and natural hazards,
environmentally friendly solutions including the use of local material vs production of alternative
sustainable material, etc. while arriving at the cost implications of the planned projects
• Standardized business models for the different realms of buyers: Establish clarity on the layers of target
customers within the society for whom the homes are being designed and developed.
• Financing
o Remeasuring affordability region-wise, and bringing down the financial threshold via incremental
financing, rental solutions, etc. must be looked into
o Effective financing through micro mortgages by utilising the reach of Self-Help Groups (SHGs) would
ensure housing finance is available to large sections of LIG and EWS populations
o Tapping into resource pools through the option of convergence with ongoing Central and State
Government schemes.
• Strong Value Proposition: Producing affordable homes should involve factoring liveability parameters
such as Location (access to job, schools, healthcare, etc.), connectivity and basic infrastructure such as
water supply, electricity and sanitation facilities.
• The right building material and technique of construction should be chosen for the sector
• Long term sustainability mechanisms must be in place such as Setting up of Resident Welfare
Association, periodic audit etc.
3.5. MGNREGA AND LABOUR CRISIS

Why in News? About MGNREGA
Recently, RBI’s annual report 2017-18 found that • The Government of India formulated the
MGNREGA in 2005 with the objective of
Mahatma Gandhi National Rural Employment Guarantee
producing a well designed wage employment
Act (MGNREGA) is causing a labour crisis in agriculture.
program to address poverty more effectively.
Findings of report • It was aimed at enhancing the livelihood
security of the poor by providing at least 100
• In poorer states, more people preferred MGNREGS days of guaranteed employment in a financial
over traditional labour: The shift to MGNREGS from year to every household whose adult members
traditional employment is more in case of casual were willing to do unskilled manual work.
labour households and is more evident in Odisha (75
per cent), Uttar Pradesh and West Bengal. The major reasons include Payment parity among gender and
rise in wages over traditional employment.
• Decline in agricultural labour: Between 1993-94 and 2011-12 the share of agriculture in rural employment
declined from 78% to 64% and the pace of decline in the last five years was much faster. The absolute
decline in labour force has tightened the rural labor market leading to a shortage of labor for farm
operations.
44
• MGNREGA wage rates per person-day have been showing a rising trend over the years: Agricultural
wages have increased across the country and MGNREGA has been an important driving force behind
this.
• Offered better bargaining power to agricultural laborers: The tightening of labor markets has offered
better bargaining power to agricultural laborers, better treatment at the place of work, and ability to
negotiate the duration of agricultural working days. It also caused a growing shift towards piece rate or
contract work in agriculture, facilitating a change in the number of working days.
• Gender Parity: The rate of increase in the agricultural wage for females has been much higher than that
for males, and the historically high male-female differentials in agricultural wages have declined
substantially. According to Economic Survey 2018, approximately 4.6 crore households were given
employment under MGNREGA, of which 54 percent were taken up by women.
• Facilitated agricultural mechanization: While SC, ST and other small-marginal farmers who are also
participants in the MGNREGA were not affected much, or in many cases gained considerably, the better
off farmers were able to bear the rising costs partly through mechanization.
• Drastic reduction in distress migration: One of the salutary effects of MGNREGA on poor rural
households is the drastic reduction in distress migration.
• Age distribution among labour: Majority (75%) of the MGNREGS workers belonged to the age group of
30- 50 years. The aged population (50-70 years) constituted 17 per cent and the young population (20-30
years) formed mere 8 per cent of the sample population.
Drawbacks
• Employment provided under the scheme has been showing a tendency towards deceleration in recent
years: There is no state which could provide 100 days of employment even to 50% of the participating
households in 2011- 12.
• Differences in implementation of the scheme across states: Two states i.e., Tamil Nadu and West
Bengal, accounted for nearly one-fourth of employment provided through MGNREGS, which was more
than their share in total rural households. Maharashtra and Bihar, which have a higher share in total rural
households, generated comparatively lower employment through MGNREGS.
Way Forward
• Negotiated MGNREGA calendar that avoids implementing works during the agricultural peak season:
For instance, in West Bengal, work schedule was adjusted to the seasonality of traditional employment
to some extent.
• Making the scheme more farmer-friendly by extending its coverage to some of the agricultural
operations which may address the problems of excluded small and marginal farmers.
• Technology driven options need to be adopted to mitigate the problem of labor scarcity.
• Other measures like easy access to cheaper institutional credit for farm mechanization, promotion of
farmer producer companies, policy support, an inclusive farm mechanization program especially for
women and youth, institutional changes to ensure security, safety and social protection to migrant labor
are required.
3.6. DIGITIZING LAND RECORDS IN INDIA

Why in news
Highlight of Ministry Action Plan
Recently, Commerce and Industry Ministry has • All concerned offices and departments at district level
proposed an extensive action plan for digitization to primarily focus on putting all the relevant
of land records to promote ease of doing information on websites and promoting paperless
business at district level. transactions and digitization of documents.
• Designing and implementing a system that allows
Introduction online application submission, payment, tracking and
monitoring without the need for a physical touch
• Land as an asset is unique and with growing
point would help improve ease of doing business.
population, its demand keeps increasing,
• Designing and implementation of a system to allow
while its supply is limited. for e-filing and e-summons for revenue disputes in
• Access to land (or land rights) has a wide- revenue courts; and ensuring timelines are followed
ranging impact on livelihoods, industrial, as mandated by the state government through a
economic, and social growth. It has been notification.
45
noted that people with extensive rights to land are better off than the landless, due to better access to
markets and other economic opportunities that come with land rights.
• However, land titles in India are unclear due to various reasons such as legacy issues of the zamindari
system, gaps in the legal framework, and poor administration of land records. This has led to several
legal disputes related to land ownership, and affected the agriculture and real estate sectors.
Challenges Faced due to Improper Land records
Advantages of Proper land records
• High litigation: A World Bank study from 2007 • Clear land titles will ease constraints—from making
states that land-related disputes account for it easier for the poor to borrow from the formal
two-thirds of all pending court cases in the financial sector to easing commercial land
country. A NITI Aayog paper also suggests that acquisition for infrastructure projects instead of the
land disputes on average take about 20 years misuse of eminent domain.
to be resolved. • Online documentation of land records can be linked
with court registries of the corresponding district or
• Agricultural credit: Small and marginal
the state, through which a buyer can get immediate
farmers, who account for more than half of the information of any pending litigations with regard to
total land holdings, and may not hold formal a property.
land titles therefore inhibiting supply of formal • Ease of Doing Buisness: Cumbersome and inefficient
capital and credit to agriculture sector. process as information on land records, which is
• Impact on Input Cost: Incorrect land records currently spread across multiple departments.
could lead to a reduction in the insurance
claims of farmers.
• Delay in infrastructure Development: Several of the new infrastructure projects are witnessing delays
because of non-availability of encumbrance free land, non-updation of land records, resistance to joint
measurement survey of land records, demands for higher compensation by land owners, and filing of
large number of arbitration cases by land
owners. Steps taken by Government
• Urbanisation and the housing shortage: • Computerisation of Land Records scheme (1988-89): To
computerise all land records. However, it made little
Poor land record increases the risk of legal
progress.
dispute in future and restrict the further
• Land Titling Bill, 2011
investment in new housing project. This o It seeks to improve the system of maintenance of
delay is expected to create housing land records by establishing the system of
shortage in urban areas by 2 crore till 2022. conclusive property titles.
• Rampant Benami Transactions: Unclear o It seeks to establish a Land Titling Authority at the
titles and non-updated land records enable State level to prepare a record of all immovable
carrying out property transactions in a non- properties in its jurisdiction.
transparent way. The Standing Committee • National Land Records Modernization Programme
on Finance (2015) examining the Benami (NLRMP), 2008: To modernize management of land
Transactions Prohibition (Amendment) Bill, records, minimize scope of land/property disputes,
enhance transparency in the land records maintenance
2015 noted that generation of black money
system, and facilitate moving eventually towards
through benami transactions could be pre- guaranteed conclusive titles to immovable properties in
empted and eliminated by digitisation of the country.
land records and their regular updation. o Under this initiative, land records are supposed to
be computerised in all districts of the country by
Reasons for unclear land title in India
2017 using a Public-Private-Partnership model
The system of land records was inherited from o Scheme has now been renamed as the Digital India
the zamindari system, the legal framework in Land Records Modernization Programme
India does not provide for guaranteed (DILRMP) and is a part of the Digital India initiative.
ownership, and the manner in which It’s a central Sector Scheme.
• The Registration (Amendment) Bill, 2013: It’s currently
information pertaining to land records is
pending in Parliament, made registration compulsory
collected and maintained further exacerbates irrespective of the term of the lease of the property.
the gaps in these records. • Bhoomi Project in Karnataka: Under it, state
• Presumptive Nature of Land ownership in government began to digitize land records
India due to lack of government verification • Rajasthan Urban Land (Certification of Titles) Act, 2016:
It ensures that the state government is a guarantor for
of land records. This implies that even
land titles in Rajasthan, and will provide compensation
bonafide property transactions may not in case of issues of defective title.
always guarantee ownership as an earlier
46
transfer of the title could be challenged.
Registration of property is not mandatory for all transactions and cost of registering property is high:
India used to have among the highest rates of stamp duty in the world which discourage regisration of
property. Standing Committee on Commerce on Ease of Doing Business (2015) had recommended that
stamp duty should be reduced to 2%.
• Maintenance of land records: Land records are poorly maintained and they do not reflect the on ground
position due to which discrepancies are found in land records. FSRC (2009) had recommended providing
remote and easy access to registration procedures and to land records
• Lack of Standardised Data on Land Record due to involvement of Multiple department, which deals with
land registration and lack of coordination between the various nodal agencies handling land records.The
FSRC (2009) had recommended standardisation of forms and computerisation of land offices would help
reduce corruption, loss of records, and delay in transactions.
• Slow pace of modernisation of records: From 2008 till September 2017, only 64% of the funds released
were utilized in digitization of land records.
Conclusive title system is based on four basic
• High rate of Corruption: Experts estimate that
principles:
each year, USD 700 million in bribes are being
• A single window system for land records which
exchanged at registrar offices across the country.
will provide for the maintenance and updating of
Way Forward textual records, maps, survey and settlement
operations and registration of immovable
• Committee on Financial Sector Reforms (FSRC) in property.
2009 had recommended following measure for • The cadastral records reflect all the significant
improving land records in country: and factual details of the property titles.
o Moving from a presumptive to a conclusive • The record of title is a true depiction of the
titling system. Conclusive titles are state ownership status, mutation is automatic
guaranteed titles, where the state following registration, and the reference to past
guarantees the title for its correctness and records is not necessary.
provides for compensation in case of any • Title insurance, which means that the government
disputes. guarantees the title for its correctness, and will
compensate the title holder against losses arising
o Providing remote and easy access to
due to defects in the title.
registration procedures and to land records.
o Registration fees should be minimal to not
discourage people from registering property transfers.
• Use of new technologies such as blockchain, as being undertaken by Andhra Pradesh Govt to prevent
property fraud. Potential of a Blockchain Land Registry in India:
o Cost-effectiveness: It would increase efficiency through distributed processing and thus reduce long-
term costs, such as a reduction in manpower of the concerned department.
o Efficiency: The use of smartphones as one-stop-shop for all property-related transactions will
significantly reduce the inefficiency of the current system and drastically cut down the number of
intermediaries that deluge the current title regime. The tamper-proof nature of the blockchain also
helps curb corruption as patwaris will not be able to go back and change land records in exchange
for a bribe.
o Transparency: Registration on the blockchain would mean that the information in the registry is
completely available to the public. The CAG can be brought onto the platform as a stakeholder so
that its office can view transactions and information uploads as they happen.
o Easing administrative burden: Land/property-related disputes currently make up 70 % of the total
case backlog in India. A robust land title system will lead to a decrease in the number of land-related
disputes in the country and, in turn, lessen the backlog in the country’s courts.
3.7. MUNICIPAL BONDS

Why in News?
Indore Municipal Corporation recently listed its bonds aggregating Rs. 100 Crore and received an
oversubscription of 1.26 times. This is the third such listing after urban local bodies (ULBs) of Hyderabad and
Pune in the last one year.
47
About Municipal Bonds SEBI Guidelines on municipal bonds, 2015
As per the SEBI Regulations, 2015, a municipality or a Corporate
• Municipal Bonds are marketable
Municipal Entity (CME) should meet certain conditions:
debt instruments issued by ULBs
• The ULB should not have negative net worth in any of three
either directly or through any immediately preceding financial years.
intermediate vehicle (Corporate • Non-default: The municipality should not have defaulted in
Municipal entity/statutory repayment of debt securities or loans obtained from banks or
body/special purpose distinct entity) financial institutions during the last 365 days.
with an objective to on-lend towards • Non wilful defaulter: The corporate municipal entity, its
projects implemented by the ULB. promoter, group company or director(s), should not have been
• The funds raised may be utilized named in the list of the willful defaulters published by the RBI.
towards implementation of capital • Municipal bonds should have mandatory ratings above
investment grade for pubic issue. The bonds should have a
projects, refinancing of existing
three-year maturity period and financial institutions including
loans, meeting working capital
banks should be appointed as monetary agencies.
requirements etc., depending on
• Municipalities need to contribute at least 20% of the project
powers vested with the ULBs under cost.
respective municipal legislation. • SEBI allowed urban local bodies to raise money through the
• Bangalore Municipal Corporation issue of revenue bonds as well. Municipal bonds where the
was the first ULB to issue Municipal funds raised are kept for one project are termed revenue
Bond in India in 1997. bonds. Servicing of these bonds can be made from revenue
accrued from the project.
Significance of Municipal bonds
• Can Solve financial woes of Indian cities:
These can be the solutions to the
financial issues of Indian cities which,
according to Isher Judge Ahluwalia
Committee in 2011, require Rs. 40 Trillion
at constant prices over next 20 years.
• Leverage future cash flows to finance
capital expenditure: As per CARE rating
estimates, large municipalities in India
could manage to raise Rs 1000 crore to
Rs 1500 crore every year by issuing
municipal bonds.
• Attract new long-term investors and
resources into urban projects: this
includes insurance funds, mutual funds
and external funds. It also provides
greater flexibility in terms of revenue
and repayment options.
• As a force multiplier for improving
internal processes: requires ULBs to
implement a stringent reporting and
disclosure standard which ushers in
greater transparency and accountability
towards citizens.
• Boost quality of life in cities: The money
raised from municipal bonds can boost
quality of life in cities, enhancing job
prospects in the locality and may also
prove a good investment option for
investors.
48
Prerequisite for effective issuance as per ‘Guidance on use of Municipal Bonds’ issued by Ministry of
Finance in 2017
• Financial Discipline and information disclosure: accounting discipline, quality of financial reporting and
periodicity of information dissemination and disclosures by ULBs are key demands for long term
investors.
• Ring Fenced Projects: this along with approved DPRs help build investor confidence.
• Shelf of Project for sustainable financing: ULBs are required to view municipal bonds as an ongoing
alternative financing channel rather than as a one off initiative. Multi-year plans along with a prioritized
shelf of projects to be financed by future bond issuance should be prepared.
• Escrowed Revenues: to address risk perception of investors escrowing can be done to earmark specific
revenue streams of ULBs for debt servicing so as to improve visibility and certainty of cash flows to
investors which would then improve credit quality and issue rating of bonds.
Way forward
• As bonds have to be repaid through cash flows, the urban governments should strengthen their own
revenue base from other sources as well, such as property tax reforms and user charges.
• Money raised from the bonds should not be diverted for other purposes as done earlier by several State
governments in their projects.
• India would need policies to reduce the risks in municipal bonds, following model can be adopted for
this:
o Japan provided a sovereign guarantee to Japan Financial Corporation for Municipal Finance.
o The Development Bank of South Africa uses its balance sheet to support municipal bond issues.
o Denmark uses pooled finance/ joint bond issue mechanism to protect bond holders in case one city
in the pool defaults. (Some cities in Tamil Nadu and Kerala experimented with this)
3.8. PROJECT SASHAKT

Why in news?
Recently the government announced a comprehensive plan Project Sashakt for the resolution of stressed
assets in banking sector.
Present status of Non-Performing Assets
• Gross non-performing assets (NPAs) with the banking rose to ever time high 11.6% in March 2018.
• Around 85% of these bad loans were with the PSBs. The GNPA for PSBs stands at 15.7%. PSBs condition is
particularly bad as compared to private banks because they have to lend under various government
objectives and under the compulsion of social banking.
• The Reserve Bank of India has already warned that the gross NPA ratio of scheduled commercial banks
could rise to 12.2% by March 2019.
About Project Sashakt
• It aims to strengthen the credit capacity, credit culture and credit portfolio of public sector banks.
• It is a five-pronged strategy towards resolution of stressed assets, as recommended by Sunil Mehta
Committee.
o Small and Medium Enterprise (SME) resolution approach
✓ It is applicable for loan exposure up to Rs.50 crore.
✓ For this, a resolution plan based on simple metrics and Standard Operating Process (SOP) will be
arrived at within 90 days of detection of stress by individual banks.
✓ Internal SME steering panel(s) should be established by banks for formulating and validating
these schemes, including provision of additional funds.
o Bank-led resolution approach
✓ It is for loans between Rs.50 crore and Rs.500 crore resolution, led by a consortium of lenders,
needs to be completed within 180 days, failing which the asset would be referred to the National
Company Law Tribunal (NCLT) for insolvency proceedings.
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✓ Under this, banks would sign inter-creditor agreement, according to which lenders with
exposure to stressed accounts will appoint a lead bank as its agent to formulate a resolution
plan.
✓ The resolution plan has to be approved by voting by lenders holding at least 66 per cent of the
debt.
✓ The independent steering committee appointed by the Indian Banks Association (IBA) has to
validate the process within 30 days.
o AMC/AIF led resolution approach
✓ Under this, loans above Rs.500 crore would be resolved through an independent asset
management company (AMC) which would be funded by alternative investment fund (AIF).
✓ AIF would raise funds from foreign and institutional investors. Banks may also invest if they wish.
Besides, AIFs can also bid for assets in NCLT.
✓ The price discovery of these NPAs will be through open auction by the lead bank in which asset
reconstruction companies (ARCs), AMCs and other investors can participate.
o NCLT/IBC approach: It also envisages invocation of IBC if other options fail. The resolution route is
also applicable to larger assets already before the National Company Law Tribunal (NCLT) and any
other asset whose resolution is still pending.
o Asset-trading platform to be created for trading of both performing and NPAs.
Benefits
• It will ensure the operational turnaround of the banks and stressed companies and help retain and
recover the asset value.
• The plan doesn’t involve government interference as it would entirely be led by banks. Also, it does not
require any law to be enacted. All provisions comply with existing regulation of banking sector. Hence
it will speed up process of resolution.
• It is seen as an effort to create a market for assets which is commendable.
• The inter creditor agreement will prevent the earlier delays in decisions making among lender banks and
will work and implement the resolution plan swiftly.
• The resolution process will help bring in credible long-term external capital and limit the burden on the
domestic banking sector.
• It also ensures robust governance and credit architecture to prevent a similar build-up of non-
performing loans in the future.
Challenges
• The strategy appears to be incremental as none of the approach attempts early resolution of NPAs in
banks.
• There is nothing new in the resolution plan. All the approaches like setting up focused verticals for
management of stressed assets, SME Steering Committee are in operation in most of the banks in one
form or the other. Besides, 26 ARCs and a couple of resolution advisory service companies are already in
operation for NPA resolution.
• The bank-led resolution approach has failed in the past. Also, here the key challenge would be to arrive
at a consensus, as the exposure is held by multiple banks/lenders.
• ARCs are low-capital institutions. They have to mobilize resources for large scale NPA resolution. But
only a few investors have come in so far.
• ARCs are smaller institutions compared to banks and depend on people’s investment. If that money is to
be used for buying stressed asset they will be answerable to public.
• The issue of price at which the banks should transfer the assets to ARCs has always been contentious.
There often is a mismatch between the price quoted by bank and the ARCs.
3.9. GLOBAL DIGITAL TAX RULES

Why in News?
At a meeting of G20 finance ministers and central bankers held at Argentina in July 2018 the European
Finance leaders called for progress on global rules to tax digital economy.
50
About the Global Digital Taxation issue
• Digitalisation allows more traditional business models (such as e-commerce) to sell to consumers
without the need for physical presence in the customer jurisdiction. It also paves the way for new
business models, based upon user participation, to generate income without making any traditional sales
to the user base in question e.g. social media businesses that generate revenue through advertising
sales.
• Currently international laws provide for the companies to be taxed in the jurisdiction in which they have
a physical presence instead of end user based taxation. However, digital businesses generate revenues
from markets without a significant physical presence
in a country but do not pay taxes there. Case of recent digital tax disputes
In Ireland, European Commission found that
• These weaknesses create opportunities for Base
Apple paid 0.005% to Irish tax authorities in 2014,
Erosion and Profit Shifting (BEPS) which require a
far below the corporation tax rate of 12.5%, which
need to ensure that profits are taxed where led to the tax dispute between the two.
economic activities take place and value is created.
• UN Committee of Experts on International Cooperation in Tax Matters in their October 2017 report Tax
challenges of digitalization also emphasized for a stronger action. Committee’s position was based on
the fact that Developing countries are often the main source of tax revenue loss in the digital economy,
as they provide a substantial consumer and user base, but are less likely to host digital economy
businesses.
• An OECD report identifies three common features of highly digitalized businesses: cross-jurisdictional
scale without mass; a heavy reliance on intangible assets, especially intellectual property (IP); and the
importance of data, user participation, and their synergies with IP.
Significance of the move
• Digital companies operating across borders would have to pay taxes where their users are located rather
than just where they have a physical presence.
• European Commission in March 2018 proposed new rules to ensure that digital business activities are
taxed in a fair and growth friendly manner in the EU. Under the proposed rules, the multinational digital
companies with significant digital revenues in Europe will have to pay a 3% tax on their turnover on
various online services.
• Many jurisdictions have begun to introduce unilateral rules to tax digital economy, for instance:
o In 2016, France extended its tax on the distribution of audio-visual content to include online video-
on-demand services that are provided for free but monetized through advertisements shown to
viewers.
o Italy has adopted a levy on digital transactions that is expected to become effective from 2019,
aiming to ensure level playing field between digital and traditional businesses and capture activities
presently uncaptured by corporate tax rules.
o Tax authorities in Saudi Arabia and Kuwait have introduced the concept of a ‘virtual service
Permanent Establishment’, which is deemed to exist even with no physical presence in the countries.
o Similar interim measures have been adopted by other nations like Australia, Israel, Turkey, New
Zealand, Hungary, etc.
• The OECD and G20 nations constituted the BEPS project that typically targets tax strategies aimed at
artificially shifting profits to low or no tax jurisdictions. Action Plan 1 of this project deals with the tax
aspects of the digital economy.
• International bodies such as the OECD are working on longer-term ideas about how to revamp tax on
digital earnings and will build a global consensus on the issue by 2020.
India’s Position
• In India, the digital economy is pegged at about $450 Billion and is expected to grow to over $ 1Trillion in
the next 3-4 years. The expansive digital world would include e-commerce, app stores, crypto currencies,
Internet of Things (IoT), Big Data, and cloud computing among others.
• In Budget 2015-16, a 6% equalization levy was introduced to bring to tax payments made for online
advertisement services.
• The 2018-19 Budget proposed to suitably amend the Income Tax Act to tax digital firms. However, as the
existing Double Taxation Avoidance Agreements (DTAAs) are not covered under the proposed changes,
it will require India to renegotiate tax treaties.
51
• According to the amendments proposed in the budget, the IT Act will provide “significant economic
presence” which includes a download of data or software in India or engaging interaction with a
prescribed number of users in India through digital means.
• India pitched for a global mechanism technically called
Multilateral Instrument (MLI) which would be a About Multilateral Convention to Implement
permanent measure to tax digital companies that earn Tax Treaty related Measures to prevent Base
Erosion and Profit Shifting (MLI)
revenues from a large user base in the country. This
• It offers concrete solutions for governments
would automatically amend bilateral tax treaties to
to close the gaps in existing international
include the taxation provisions for digital business. tax rules by transposing results from the
Concerns OECD/G20 BEPS Project into bilateral tax
treaties worldwide.
• Policy challenges: Digitalization raises a large number • It also implements agreed minimum
of public policy challenges and is also changing the standards to counter treaty abuse and to
nature of policy making itself. improve dispute resolution mechanisms
• Concerns raised by some EU members themselves: As while providing flexibility to accommodate
these measures may affect some of their companies, specific tax treaty policies.
the international partners may respond with
retaliatory measures. For instance, Germany is concerned that a shift towards taxing companies where
services are consumed rather than physical presence of the company could end up hitting its lucrative
car manufacturers in long term.
• Low tax EU members such as Ireland and Luxemburg fear of losing multinational companies situated in
their low tax jurisdictions.
• May seem discriminatory: US consider such measures to single out its digital companies as major digital
companies are based in USA.
• EU’s interim digital tax plans target a company’s revenue rather than profit: This goes against
international consensus on corporate taxation.
• The inconsistent unilateral rules adopted by several nations might end up increasing tax burden of
digital firms.
Way Forward
The world over, policymakers are facing challenges over the issue of taxing digital economy transactions,
while many countries have introduced provisions to tax some of these transactions, there is a need for a
separate tax code which could bring greater transparency to transactions around the digital economy. This
could include:
• A mechanism specially constituted to address digital economy transactional issues in a time-bound
manner will also address many of the taxpayer’s grievances.
• Support for the growth of industry with additional tax incentives for taxpayers using the digital economy
space for transactions as well as for innovators.
• The code should be reviewed frequently by industry experts and include newer types as they evolve.
3.10. FALLING RUPEE

Why in news?
Recently, the Indian rupee weakened past the 71 mark for the first time ever.
More on news
• The rupee has registered a loss of about 10% of its value against the dollar since the beginning of the year
making it the worst-performing currency in Asia.
• Other emerging market currencies, most notably the Turkish lira, the Argentine peso and the South
African rand, have suffered much larger losses owing to a serious loss of confidence among investors.
Reasons of falling rupee
• Increasing demand for the dollar across the globe: The tightening of liquidity in the West, with the U.S.
Federal Reserve raising interest rates, has played a major role in the strengthening of the dollar since
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February this year. Investors who earlier put their money in emerging markets have recently preferred
American assets, which now yield higher returns.
• Higher domestic inflation in emerging economies when compared to the West: Thus, it is natural for
these currencies to slide in value over time against the dollar and other major Western currencies.
• Trade war between China and America, leading to import restrictions with high tariffs is causing dollar to
appreciate. Huge dollar purchases by oil importing companies have weighed heavily on rupee.
• Oil prices: Iran sanctions have been driving oil prices higher despite OPEC move to raise output. The
benchmark Brent crude surpassed the significant $75-mark a barrel. This is bad for India as it is third
largest importer of oil, hence current account deficit has been coming under pressure.
• More imports than exports: India’s import bill has been significantly rising without increase in net
exports. India’s current account deficit is rising and is expected to go up to 2.5-3% of the gross domestic
product (GDP) in the current financial year. Differently put, India is importing a lot more than it is
exporting. Higher CAD in an environment of tightening financial conditions may continue to put pressure
on the rupee
Impact of falling rupee
• On imports: the country’s imports become more expensive as it takes more rupees to pay for the same
quantum of imports
• On competitiveness: As fewer dollars are required for a buyer to pay for the same quantity of
exports, India may gain its competitiveness which has been gravely hurt by an exchange rate policy that
has prioritised a muscular rupee. It would also promote Make in India
• On inflation: More expensive imports are likely to drive inflation upward, especially in India where input
products constitute a large part of our imports. It also impacts the oil import bill which plays its own part
in pushing inflation up. Rise in inflation would hurt investors sentiment as well.
• On GDP growth: On the one hand, costlier inputs and the subsequent increase in the prices of finished
goods may have a positive impact on GDP while on the other hand, consequent decrease in demand due
to higher prices could nullify this.
• Widening of deficits: As per analysts, every $10 per barrel increase in oil prices could worsen current
account and fiscal balances by 0.4% and 0.1% of GDP respectively.
• On tourism: trips abroad turning more expensive. On the flip side, the domestic tourism could grow as
more tourists visit India since their currency now buys more here.
• On employment: In the medium term, export-oriented industries like Pharma sector, IT, gems and
jewellery etc. may also create more jobs.
Steps that can be taken by government
• Long term solution
o Reduce heavy dependence on imports as well as on oil.
o Boost export industries by measures such as ensuring that exporters have easier access to tax
refunds; a war-footing attack on red tape at the borders; and a clear commitment to opening up to
new market-enhancing trade deals.
o Attract FDI instead of FII, through simplification of procedures, laws and dispute redressal. The rules
for foreign borrowing should be liberalised by Indian firms to ensure higher inflows.
o Maintain limit on deficit: Although India’s fiscal position has improved in recent years, compared to
peers, the combined deficit is still on the higher side. The government should not allow the deficit to
slip at this stage as it will increase macroeconomic stability risks.
• Short term solution
o Increase in interest rates by central bank to control money outflow. However, cost of borrowing
increases due to this which may cause fall in investment in the country.
o Using foreign reserves to reduce volatility: As of June 22, the RBI had foreign exchange reserves of
$407.81 billion, which it can sell in the open market. It is important to note, though, that reserves are
only useful in reducing volatility and are not an antidote for poor economic management. If financial
markets start believing that the country has problems at the fundamental level, then defending the
currency can become extremely difficult.
53
3.11. EASE OF DOING BUSINESS
Why in News?
What is Specific Relief Act, 1963?
Recently, Parliament passed Specific • Specific Relief is term for performing a contract when monetary
Relief Amendment Bill, 2018 to improve compensation for failing to complete contractual obligations is
India’s ranking in Ease of Doing Business not enough.
Ranking. • The law prescribes that in an event where the actual damage for
not performing the contract cannot be measured or monetary
Background compensation is not adequate, one party can ask the court to
direct the other party to fulfil the requirements of the contract
• Issues Faced in Doing Business
(specific performance).
o Starting a business: The
• This specific performance is a limited right, which may be given
regulations and procedures for by the court at its discretion.
starting a business are time- • This extends to infrastructure contracts, like construction of
consuming due to which a large housing societies or sale and purchase of land.
number of start-ups are moving • The Act sets out two main remedies to a party whose contract
out of India and setting base in has not been performed:
countries like Singapore where o the party may ask the court to compel performance of the
such procedures are easier. contract (specific performance).
o Acquiring land, registering o the party may seek monetary compensation instead of
property: There have been performance.
Ease of Doing Business
delays in acquiring land and
• World Bank Ease of doing business reflect the regulatory
getting necessary permissions
environment in a country to set up and operate a business.
to use it, due to various reasons • The rankings are based on a country’s performance on 10
including legacy of the parameters such as enforcing contracts and starting a business.
zamindari system, gaps in the Parameters Rank as Doing Rank as Doing
legal framework and poor Business Report, Business Report,
administration of land records. 2018 2017
o Construction permits: Starting a business 156 155
According to the Standing Getting credit 29 44
Committee of Commerce, it Trading Across Borders 146 143
took 33 procedures and over 192 Dealing with 181 185
days to obtain a construction construction permits
Protecting Minority 4 13
permit in India in India, while 10
Investors
procedures and 26 days in
Getting Electricity 29 26
Singapore.
Enforcing Contracts 164 172
o Taxation: The Standing Paying Taxes 119 172
Committee had noted that the Resolving Insolvency 183 136
tax administration in India was Registering property 154 138
complex, and arbitration
proceedings were time-consuming.
Anand Desai Panel recommendation
o Power Shortage: According to NITI Aayog, • Relief of specific performance should be made as
Power is a severe obstacle in starting an the general rule of remedy for breach of contract
enterprise in states due to power shortage, and monetary compensation to be made as an
which impact their efficiency, productivity alternate remedy.
and potentiality of job creation. • For the purpose of streamlining the
o Chakravyuha Challenge Ease to enter, interpretation of the Courts in matters of public
barriers to exit: India seems to have a works, Centre should provide guidelines to the
disproportionately large share of inefficient courts and tribunals to limit the Court’s
firms with very low productivity and with discretionary powers while granting performance
and injunctive reliefs.
little exit.
• In cases of contracts, excluding government
o Discrimination among small and large firms:
contracts, the Act should be modified to address
According to NITI Aayog, regulations place the right of third parties as well.
disproportionately large compliance burden • Inclusion of provisions addressing
on large firms in comparison with small firms, unconscionable contracts, unfair contracts,
which discourages smaller firms from reciprocity in contracts etc. and implied terms in a
growing larger. contract in the Act.
54
o Enforcing Contract: Standing Committee noted that it took close to four years in India for enforcing
contract while less than six months in Singapore. This may be due to various reasons including
complex litigation procedures, confusion
related to jurisdiction of courts and high
existing pendency of cases. Breaches of
contract have impeded domestic and
foreign investors from the infrastructure
sector.
• Anand desai Committee (2016), was formed to
suggest changes in 1963 act, as tremendous
economic development has brought in
enormous commercial activities in India, which
have prompted extensive reforms in the related
laws to facilitate enforcement of contracts,
settlement of disputes in speedy manner.
Highlight of the Bill
• Specific Performance: It takes away the
discretionary power of courts in ordering
specific performance of contract, by
compulsorily enforcing contract by the Court.
• Substituted performance: The Bill gives an
affected party (i.e. a party whose contract has not been performed by the other party) the option to
arrange for performance of the
Recent steps taken to improve ease of doing business in India:
contract by a third party or by his
Besides implementation of the Goods and Services Tax and the
own agency (substituted Insolvency and Bankruptcy Code some of the major reforms
performance). undertaken by the government are:
• Injunctions: Under the Act, courts
can grant preventive relief • The government has announced investor-centric hub-and-spoke
(injunctions) to parties. Bill seeks based online single window model for providing clearances and
to prevent courts from granting filing compliances.
injunctions in contracts related to • The government launched another online portal Shram Suvidha
for firms to file a common return on its portal to comply with as
infrastructure projects, if such an
many as eight labour laws at one go.
injunction would hinder or delay
• The government has also targeted to reduce the number of days
the completion of the project. required to set up a business in India to four.
• Designating Special Courts: Certain • The government has also done away with the requirement of the
civil courts may be designated as affidavit from the applicants of the defence industry. A maximum
Special Courts by the state timeline of 12 weeks has been finalised by the Ministry of Home
government, to deal with cases Affairs for grant of security clearance on industrial licence
related to infrastructure projects applications.
and disposed of within 12 months. • The insurance reform bill has been passed in Parliament which
allows more Foreign Direct Investment in the sector.
• Experts: The Bill inserts a new
• The government allowed 39 exemptions for private companies
provision for engaging technical
licensed to set up businesses under international financial
experts in suits where expert services centres (IFSC) such as allowing them to make
opinion may be needed. investments through more than two investment companies. The
• tInfrastructure Projects: government also waived transaction taxes and stamp duty for
Department of Economic Affairs is IFSCs.
the nodal agency for specifying • The government has set up National Investment and
various categories of projects. Infrastructure Fund (NIIF) with the aim to attract investments
Activities such as transportation, from both domestic and international sources for infrastructure
energy, water & sanitation, development in commercially viable projects. The corpus of the
communication and social & NIIF is proposed to be Rs 40,000 crore ($6 billion) wherein the
government will invest 49%.
commercial infrastructure, will also
• In a bid to reduce red-tapism, the government abolished the
be treated under special Foreign Investment Promotion Board (FIPB) which used to
categorization of ‘infrastructure scrutinise foreign investment proposals. The proposals are now
projects’. cleared by departments concerned.
55
Significance
• It will create a more stable and predictable business environment and boosting investment.
• It would widen the ambit of enforceability beyond just compensation.
• It would boost infrastructure in the country as well as have a positive effect on the ease of doing
business aspect.
• It will grant a party the right to seek damages from the other side in case of a breach of a business
contract and to reduce discretion of courts in such matters.
• It would help country to break into the top 50 in Ease of Doing Business ranking and boosting India’s
attractiveness as an investment destination.
Way Forward
• Greater Ease of Doing Business is Essential to Faster Growth: Fast growing states systematically exhibit
fewer delays in the grant of permits and clearances in various areas and also greater flexibility in the
implementation of labour and environmental laws.
• Better Information dissemination so that enterprises are aware of ways to ease the compliance burden
of regulation, such as access to single clearance windows.
• Enhance Flexibility of Labour Laws: Reforming labour laws and achieving greater flexibility in their
implementation can greatly help enhance the ease of doing business
• Accelerate Power Sector Reforms: Facilitating power sector reforms will help ensure that power-
intensive enterprises have access to steady and uninterrupted power without undue delays or regulatory
burdens.
• Improving Access to Finance: Enhancing the access to low-cost capital to businesses will be an important
vehicle to improve business environment, especially in poorer states.
• Standing Committee on Commerce in 2015, made recommendations to improve India’s Ease of Doing
Business rankings:
o Easing Regulatory Compliance by Issuing unique business ID containing all information about the
company, as the sole reference for regulatory processes.
o Hassle free permit by introducing an online single window to approve construction based on the
risk, structural requirements and intended use of the building.
o State governments can demarcate areas where land use can conveniently be changed for
industrialisation, without affecting fertile land.
o Registering property: It can be paced by digitising land records and by promoting conclusive land
titling by integrating space technology and ID proofs like Aadhaar, which may facilitate smooth
transfer of property. This would also reduce the amount of capital that is locked up due to disputes
over land titles.
o Simplification of the existing tax structure by implementing a stable, fair and predictable tax regime
in the country.
o Setting up National Trade Portal to reduce delays caused by involvement of multiple agencies in
obtaining relevant documents for cross border trade.
o Time bound Environment clearances by Ministry to reduce delay in execution of project.
3.12. IMPACT OF CHINESE GOODS ON INDIAN INDUSTRY

Why in news? Hard Numbers: India-China Trade Quantum
The Parliamentary Standing Committee on • China is India’s largest goods trading partner and the bilateral
Commerce tabled a report titled “Impact of trade reached $89.6bn in 2017-18, from $38bn in 2007-08.
• China’s share in India’s imports stands at 16.6% in FY1718.
Chinese goods on Indian industry” in Rajya
• Trade deficit with China at $63bn constitutes more than 40% of
Sabha.
India's total trade deficit.
Highlights of the Report • Between FY0708 and FY1718, Indian exports to China increased
by $2.5bn but the imports, however, increased by $50bn.
• Numerous anti-dumping investigations • China has increased prices of bulk pharma drugs by 1200% over
have been initiated against China; also the last two years, impacting prices of finished products by
majority (i.e. 102/144) of the enforced Indian pharma industry.
anti-dumping duties are against • No bilateral trade agreement between the two, to accord
Chinese products. preferential treatment to the Chinese products.
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• All the industries affected by the dumping are not able to reach Directorate General of Anti-Dumping and
Allied Duties (DGAD) on account of high cost involved in moving the applications.
• Delayed action in the part of DGAD causes permanent damage to the industry in question, leaving little
or no scope for remedial measures.
• No impact assessment of How Chinese goods find their way to Indian markets?
anti-dumping/counter- • Dumping of cheap Chinese products.
veiling duties by the • Under-invoicing of Chinese goods: causes revenue loss to the Government
government leading to as well as puts the domestic manufacturers at a disadvantage in terms of
non-review of such duties, price of like items.
renders the anti- • Re-routing of products via countries that have FTAs with India.
malpractices framework • Flouting of Rules of Origin norms e.g. setting shops in Least Developed
ineffective. Countries(LDC) arrangements under Duty Free Tariff Preference (DFTP)
scheme.
• One estimate suggests
• Mis-declaration and mis-classification of prohibited goods.
that due to the dumping of
• Smuggling of proscribed items: In April to December 2017-18, as many as
Chinese solar panels,
1,127 cases of smuggling have been registered by India, recovering more
nearly two lakh jobs are than Rs 5.4 billion worth of Chinese goods.
lost as nearly half of our • Circumvention of duties due to lax implementation of Indian regulations.
domestic industry capacity
remains idle.
• Chinese products are certified/ registered quite easily and faster by India's Bureau of Indian Standards.
To the contrary, Indian products suffer delays and high fee for getting certified/ registered with Chinese
authorities before exporting into China.
Reasons for deluge of Chinese imports to India
Chinese imports flood the Indian markets due to high demand owing to large size of the Indian market and
also competitive prices of these products. Elaborative reasons behind this phenomenon include:
• Industry-friendly lending rates, lower logistics and energy costs as compared to India: On account of
costlier energy, finance and logistics, Indian goods are costlier by about 9% in the global market. Chinese
industry gets loans at 6%, compared to 11-14% in India. Logistics costs are 1% of the business in China,
compared to 3% in India.
• Chinese exports largely constitut e manufactured products related to expanding sectors such as telecom
and power (while Indian exports to China are primary products largely).
• Support by the Chinese government e.g. export rebate, state-owned enterprises, tax discounts within
the provinces.
• Currency manipulation for export competitiveness.
• Non-transparent trade policy, unfair trade practices such as exports subsidies that are against the WTO
regulations.
• Robust and integrated global value chain along with leveraging of economies of scale.
• Infrastructure required to address the demands of quality checks is inadequate.
• Delays in firming up the Quality Control Orders (QCOs) helps the Chinese industry monopolise its low
quality goods in the market e.g. toys, low-quality LEDs etc.
Implications for the Indian Economy
• Labour-intensive industries such as textiles, solar, firecrackers etc., in India are worse affected by
Chinese imports.
• Many MSMEs in the stainless steel industry have shut down.
• Direct and indirect tax collections take a hit due to smuggling, under-invoicing etc. This will fall further as
domestic manufacturers shrink or dissolve in future.
• Aims and targets of the Make In India programme are undermined.
• Banking sector, already reeling under the NPAs, faces further stress.
• Low-quality products from China adversely impact the environment.
• Manufacturers are turning into traders, having negative impact on the employment.
• Overt dependence on imports of key products such as the bulk drugs can have cascading effects on
supply of many products, employment etc., in addition to self-reliance, national interests and security in
critical situation
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Recommendations of the Report
• Governmental should provide financial
assistance to recognized industry forums to
improve the access of MSMEs/SSIs to trade
remedial measures.
• Creation of a DGAD platform for continuous
dialogue with the Indian industry on WTO non-
compliant subsidies.
• Shortening of time period for investigations and
notifications.
• Stringent implementation of anti-dumping
framework, to check smuggling,
misclassification and other trade malpractices.
• Augmentation and strengthening of the
Directorate of Revenue Intelligence (DRI)
workforce.
• Working out a formal arrangement with China,
to avail price and other relevant information on
imports suspected of under invoicing – for Indian
Customs administration.
• Better enforcement of FTAs and Rules of Origin
norms by a joint verification/ certification
mechanism with the partner countries.
• Study of the likely impact of the tariff
concessions under ongoing RCEP negotiations
on our domestic industry, to ensure zero cost to
Indian industrial health.
• Easing of the restrictive and discriminatory
clauses being faced by the Indian Industry in
public tenders and implementation of Public
Procurement (Preference to Make in India),
Order 2017 in spirit. State governments should
also be sensitized in this regard.
• Steeping up the surveillance of Land Ports
especially in the Indo-Nepal Border and North
East border.
• Support to the Bureau of Indian Standards (BIS)
in terms of availability of technical manpower
and infrastructure Identification and inclusion of
more products under technical regulations
specifying compliance.
• Representation of BIS on SWIFT to further add
to the effectiveness of the latter.
• Sensitization of enforcement agencies like Customs authorities, State Governments etc. to work in co -
ordination with the Regulators.
• Necessary and immediate review of the existing inverted duty structure.
• Production subsidy or incentives should entail government tariff protection, to match the Chinese
assistance so that our domestic production gets a real boost.
• Constitution of steering committee to oversee the revival of the API industry, including reviving PSUs
like IDPL and Hindustan Antibiotics, especially at the time when many APIs units in China are closing due
to strict environment norms there.
• To protect the solar industry, ADD may be levied in a differential manner to facilitate level pegging for
domestic industry.
• Solar power industry must explore the avenues of protection under CVD since Chinese solar industry
enjoys WTO non-complaint subsidies of the Chinese Government.
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• Import of finished toy products from Countervailing duty (CVD)
China must be banned as it has affected
Additional import duty that is imposed to neutralize the
50% of the domestic toy industry and negative effects of subsidies
traditional skills are getting lost with
Safeguard duty
artisans migrating to other vocations.
Tariff imposed to restrict imports of a product temporarily
• Stringent penal actions to create effective
(take “safeguard” actions) if its domestic industry is injured or
deterrence against unscrupulous threatened with injury caused by a surge in imports
elements.
Anti-dumping duty (ADD)
• Creation of public opinion in the country
Protectionist tariff that a domestic government imposes on
to discourage buying of sub-standard
foreign imports that are priced lower than their value in their
imported product, with engagement of
home market
the industry, thus popularising ‘Swadeshi
Inverted Duty Structure
apnao’ (buy made-in-India products).
• It implies a situation where import duty on finished goods
Steps being taken is low compared to the import duty on raw materials that
are used in the production of such finished goods.
Since India and China are the members of the
• This makes domestically produced goods more expensive
WTO, no restrictions can be imposed on the
that their imports from other countries.
WTO-compliant trade. While the action to be
taken on the basis of the Report is yet to be SWIFT – Single Window Interface for Facilitating Trade
determined, certain measures have already been • Single Window provides a single platform for
taken to protect the domestic industry and to curb relevant agencies like Wildlife, Drug Control, Animal
the flood of Chinese imports that include: Quarantine, Plant Quarantine, FSSAI and Textile
Committee for necessary clearance or certification
• Safeguard duty has been imposed on the solar
before the goods are released inland from the ports
cell imports from China and Malaysia for two • Optimal use of SWIFT can ensure effective quality
years, till July 2020. control of all the imports of products under
• DGAD has recently opened an assistance QCO/technical regulations.
counter for the help of the MSME Sector.
• Recent creation of an integrated single umbrella Market Economy Status of the WTO
National Authority, namely, Directorate General • MES is accorded by the WTO to the countries
of Trade Remedies (DGTR) will be effective in where economic decisions and the pricing of
providing comprehensive and swift trade defence goods and services are guided solely by open
mechanism in India. competition, with little or no government
• Measures have been taken to increase the efficacy intervention or central planning
of Risk Management System (RMS) – to tighten • China’s bid for this status is opposed by the US,
the inspection infrastructure at the entry points. the EU, India and other parties
• Introduction of the GST will help in business • If granted this status, imposition of anti-dumping
duties and other trade defences gets difficult to
efficiency, better record-keeping infrastructure,
impose against such a nation.
easier audits and controls and creation of uniform
market across the country.
• India needs to stay firm on its non-MES status stand to China at the WTO to ensure protection to its
domestic industry.
3.13. DRAFT E-COMMERCE POLICY

Why in news?
Recently, the government has released the draft e-commerce policy prepared by Task force headed by
commerce secretary.
Need of e-commerce policy
Following factors necessitates better and clear policy response and coordination among various wings of the
government:
• Rapid growth in e-commerce: India’s e-commerce sector, currently estimated to be worth around $25
billion, is expected to grow to $200 billion by 2020. According to an estimate by the finance ministry, the
size of the digital economy in India will be $1 trillion by 2022 and it will account for close to 50% of the
entire economy by 2030.
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• Increasing investment: The potential of the market has drawn in giants such as Amazon, Walmart,
Alibaba, SoftBank and Uber to invest millions of dollars to become dominant players in this space. After
covering the metros and large cities, the bigger e-commerce firms are poised to go for next phase of
expansion in tier-II and tier-III towns, where the expansion of 3G and 4G networks have put consumers
online.
• Better standing on international table: A national e-commerce policy will also enable better negotiations
on multilateral issues with the World Trade Organization.
Key proposals under draft
• Establish Central Consumer Protection Authority (CCPA): It will act as the nodal agency for intra-
government coordination on e-commerce policies and hearing complaints from both the public as well
as e-commerce companies.
• Mandatory registration: It provides for mandatory registration of all e-commerce operators whether
domestic or foreign.
• Uniform legislation: It also proposes a single legislation to address all aspects of digital economy.
• FDI policy for e-commerce: It proposes 49% FDI under the inventory model for firms to sell locally-
produced goods on their online platforms. The control of such firms will remain with Indians. At present,
100% FDI is allowed in online stores that follow the marketplace model; no FDI is permitted in firms
following the inventory model.
o A separate wing will be set up in the Enforcement Directorate to handle grievances related to
foreign investment in e-commerce.
o There should be differential voting rights for Indian founders with minority stakes giving founders
more control.
• Data Localization: It strongly recommends data localization i.e. data that will be considered as critical
should necessarily be located in India. For this, various suggestions are given:
o Infrastructure status to data centres/server farms as well as easy access of physical infrastructure
for setting up the centres.
o A two-year sunset period for the industry to What is a marketplace and inventory-based model?
adjust before localization rules becomes • Marketplace based model of e-commerce
mandatory. means providing an information technology
platform by an e-commerce entity on a digital &
o Only personal data or community data
electronic network to act as a facilitator
collected by “internet of things” devices in between the buyer and seller.
“public space” will need to be stored in India. • Inventory based model of e-commerce means
• For MSME related an e-commerce activity where inventory of
o Allow MSME to follow inventory-based models goods and services is owned by e-commerce
for selling locally produced goods through an entity and is sold to the consumers directly.
online platform.
o Exemption from GST: Currently, MSMEs with revenue of less than Rs.20 lakh a year are not subject
to GST if they sale offline whereas they have to pay GST if they sell goods on online platforms.
o Such companies may also be allowed up to 49% foreign investment.
• For merger and acquisition
o Mandatory examination by Competition Commission of India (CCI) of competition-distorting
mergers and acquisitions below the existing threshold. This assumes significance in the light of the
recent acquisition of Flipkart by US retail major Walmart.
o Sunset clause for deep discounting: A maximum duration should be set for “differential pricing
strategies”. CCI and the department of industrial policy and promotion (DIPP) will oversee this
proposal.
• Tax related proposals
o Centralized registration instead of local registration of e commerce companies for GST purposes.
o Modifying relevant GST provisions in order to create a level-playing field between online and offline
delivery of goods and services.
o Use principle of ‘significant economic presence’ as the basis for determining ‘Permanent
Establishment’ for tax assessment.
• Regulating price distortions
o Prohibits e-commerce players from “directly or indirectly influencing” sale prices.
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o Prohibition of bulk purchases of branded goods like mobile phones, fashion items which lead to price
distortions.
Benefits
• The draft e-commerce policy is comprehensive and encompasses all aspects of the e-commerce
business, data privacy and taxation, a host of technical aspects such as technology transfer, server
localization, and connectivity issues.
• The regulator will ensure consumer protection from online frauds and compliance with foreign
investment caps in e-commerce.
• Data localization move will help private sector companies comply with the norm to store a copy of a
user’s personal data in the country as laid down by the Srikrishna committee on data localization.
• It will also provide boost to MSME sector through various provisions mentioned in policy which will lead
to revenue as well as employment generation.
• The 2-year sunset clause for data localization will provide some time to the domestic industry to prepare
for the data storage procedures before actually imposing the legislation.
• It will be able creating a level playing field for foreign and domestic players in the Indian market.
Challenges/issues
• The logic of protecting domestic industry against foreign giants with deep pockets is against the
principle of liberalization.
• Data sharing and localization will create issue of intellectual property rights of companies and will have
significant impact on the way they do business.
• Issues of discount
o Restriction on discounting by e-commerce players to protect offline players are over stated given in
Indian groceries and food market which makes up half of India's retail spend, online players account
for less than one per cent of the market.
o Setting a price floor can also impede local players from offering attractive deals
o Curb on discounting has already been tried in the past and might not be easily implementable.
o Introducing unnecessary regulations could result into slowing down of yet another sector.
o With online discounts gone, the consumer will lose out.
o It will put restrictions on retail strategies of ecommerce majors.
• Certain states have protested against the Centre’s intrusion by framing laws for retail, which remains a
state subject.
• Coordination between various ministries like Ministry of commerce and Ministry of Electronic and IT is
an issue because of contradictory views on the matter.
Way forward
• State government must be taken aboard for policy formulation and implementation.
• The regulation of e-commerce transactions should be left to the Competition Commission of India rather
than making vague regulations which are open to abuse.
• The policy must be facilitating ‘ease of doing business’ with minimum regulation and should offer a
level-playing field to foreign and domestic players.
3.14. NATIONAL ALUMINIUM POLICY

Why in news?
Recently, Niti Aayog suggested that India needs a dedicated national policy for aluminium to boost overall
production and double per capita consumption of the metal.
Aluminium industry
• Aluminium is the second most used metal in the world after steel with an annual consumption of 88
MMT.
• It is also the fastest growing metal which has grown by nearly 20 times in the last sixty years (compared
to 6 to 7 times for other metals).
• The Aluminium industry comprises two basic segments: upstream and downstream.
o The upstream sector produces primary Aluminium from raw materials via bauxite mining.
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o The downstream sector comprises of processing of Aluminium into semi-finished Aluminium goods
such as rods, bars, castings, forging, etc.
• India is the 4th largest Alumina Producer, 3rd largest Aluminum Producer and 5th largest consumer of
Aluminum.
• Its consumption in India at 2.5 kg/capita is much less compared to the global average of 11kg per capita.
• It contributes 2% of manufacturing GDP (steel 12%, cement 9%) and this is expected to move up with
consumption growth. This growth is critical for India’s industrial vision of achieving 25% of GDP from
manufacturing by 2022.
• It has 5th largest bauxite reserves in the world. Orissa (largest producer), Gujarat, Jharkhand,
Maharashtra, Chhattisgarh, Tamil Nadu and Madhya Pradesh are the prominent bauxite producing states
in India.
Importance of Aluminium Industry
• Aluminium is considered a strategic sector by various industrialized economies due to:
o high linkage effect- forward linkages with key sectors like aviation, defense, auto, electricity,
construction, packaging, machinery, marine etc. and backward linkages with mining, chemical
industry, power, machinery
o high market potential
o high technological intensity
o high value addition
• Aluminium is also one of the critical metals for world’s commitment towards 2015 Paris commitment of
low carbon footprint.
o According to US Department of Energy, auto industry estimates that 6-8% fuel savings can happen
for every 10% weight reduction by substituting aluminium with other heavy materials.
o Aluminium is also a durable metal with its life span in building and construction ranging between 40-
50 years.
Uses of aluminium
o Aluminium can also be endlessly recycled • Being lighter (3 times lighter than steel), it aids in
with only 5% of energy & emissions needed fuel efficiency making it an efficient choice for
to produce a new aluminium product. automotive, defense and aviation.
o Aluminium availability is critical to achieve • The construction industry relies on a variety of
low carbon footprint using wind, solar and aluminum alloys in the manufacture of products due
energy storage batteries as per a World to its durability and non-corrosive properties.
Bank study 2017. • Its ability to conduct heat and electricity also makes
• Aluminium is also a strategic metal for national aluminum a popular choice in the electrical and
defense and security. It is widely used in making electronics industries.
• Coupled with infinitely recyclable properties,
various ammunition components, parts for
aluminum is a convenient option for packaging
missiles and missile batteries, tanks, armoured
industry such as beverage cans and foils.
vehicles etc.
• The industry also has a high direct and an indirect
employment multiplier creating close to 800,000
jobs. Plants are generally based in the hinterlands of
the country and aid in generating peripheral
employment and development of the region.
Issues with Aluminium industry in India:
• Energy: Amongst the largest producers of aluminum
like Canada, Russia, Middle East, Norway and China,
India has the highest cost of production. This can be
attributed to high power cost in India.
o Power is a critical input for Aluminium industry
accounting for almost 30-40% of their cost of
production. Coal subsidies in various Aluminium
producing countries gives an edge to them over
Indian companies.
• Mining: Bauxite mining is facing various issues such
as:
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o Delays in grant of environmental Clearances, Forest Clearances, other statutory clearances causing
significant development risk.
o Land acquisition issues in mineral rich areas.
o Procedural issues between Centre, State and bidders in matters of bloc allocation.
o Lack of a robust geological database of bauxite reserves
• Infrastructure issues:
o Absence of railway connectivity and transport infrastructure in several remote mineral rich areas.
o Increased cost of transportation of Alumina and Bauxite.
o Costly infrastructure for disposal of Fly-Ash and Red Mud is also an issue.
• Scrap Recycling: Aluminum recycling process is less capital intensive and requires only 5% of energy to
produce aluminum compared to primary route.
o India is the 2nd largest importer of scrap behind China. Despite significant presence of primary
metal, India’s consumption of scrap is 100% import dependent (in contrast China’s scrap import ratio
is 21%). This reflects the poor domestic scrap recycling infrastructure India has.
o Recycled aluminum sector is highly fragmented with around 10 medium sized players and over 150 to
200 small players due to low entry barriers & capital costs.
• Trade Policy and FTA’s: The aluminium sector has not benefitted from signing of FTAs with ASEAN,
Japan and Korea, etc. For example, Aluminium imports into India from ASEAN region have surged
significantly. The reason has been an increase in imports especially from Malaysia. This is because the
tariff elimination schedule in India- ASEAN FTA is skewed heavily in favour of Malaysia.
Recommendations for a New Aluminium Policy
• Classifying aluminium as a core industry (coal, crude, oil, natural gas, refinery products, fertilizers, steel,
cement and electricity) can give it a major boost.
• Reforms in coal and bauxite mining: must be ensured that once allotted, industry should not face
administrative and legal hassles during the operation of coal and bauxite mines. All the mandatory
clearances should be given beforehand.
• A single window clearance could also be put in place for faster clearances.
• Metal Scrap Recycling: A National Material Recycling Policy which is being drafted by NITI Ayog should
be effectively implemented to achieve a target of 85% recycling rate by the year 2025 and enhance job
creation opportunities.
• Energy policy for energy-intensive sectors: A separate energy policy needs to be framed for the energy
intensive sectors like aluminium as they are being penalised by paying high carbon tax through various
cesses and duties.
• Export policy for downstream industry: Downstream producers of Aluminium should to be encouraged
for high end production and exports of value-added products of aluminium
• Trade policy and mega Free Trade Agreements: India trade policy and mega FTAs should be negotiated
keeping in mind India’s experience w.r.t previous FTAs which haven’t yielded the desired result.
• Infrastructural and Database Issues: Aluminium being a continuous process industry will require priority
access to infrastructure. Rake availability in railways should increase significantly.
• India needs a comprehensive geological database which can be mined for exploration of raw materials.
• An ecosystem for fly-ash should be created around these Aluminium production plants.
3.15. UNCONVENTIONAL HYDROCARBONS

Why in news?
Recently, Union Cabinet chaired by Prime Minister approved the policy to permit exploration and
exploitation of unconventional hydrocarbons such as Shale oil/ gas, Coal Bed Methane (CBM), etc under the
existing Production Sharing Contracts (PSCs), CBM contract and Nomination fields.
Background:
• Existing contractual regime of PSCs (pre Hydrocarbon Exploration and Licensing Policy or HELP) did not
allow contractors to explore and exploit CBM or other unconventional Hydrocarbons in already allotted/
licensed/ leased areas while CBM contractors were not allowed to exploit any other hydrocarbon except
CBM.
63
• Acreages held at present by various Hydrocarbons Vision – 2025
contractors in PSCs (72,027 Sq Km) and CBM The Hydrocarbons Vision-2025, presented in the year 2000,
blocks (5269 Sq Km) and National Oil laid down the framework which would guide the policies
Companies (NOCs) in nomination regime relating to the hydrocarbons sector for the next 25 years. It
constitute a significant part of India’s includes:
sedimentary basin. • To assure energy security by achieving self-reliance
• India currently has around 100 – 200 Trillion through increased indigenous production and
Cubic Feet (TCF) of shale gas reserves in five investment in equity oil abroad.
• To enhance quality of life by progressively improving
sedimentary basins and there is a strong
product standards to ensure a cleaner and greener
possibility of shale reserves in basins such as India.
Cambay, Krishna- Godavari (KG), Cauvery, • To develop hydrocarbon sector as a globally
etc where mature organic rich shale exist. competitive industry which could be benchmarked
CBM reserves are found in Coal bearing against the best in the world through technology
areas in 12 states including Andhra Pradesh, upgradation and capacity building in all facets of the
Chhattisgarh, Gujarat, Jharkhand, Madhya industry.
Pradesh, Maharashtra, Assam, Odisha, • To have a free market and promote healthy
Rajasthan, Tamil Nadu, Telangana and West competition among players and improve the customer
Bengal. service.
• To ensure oil security for the country keeping in view
Benefits of the move: strategic and defence considerations.
• It will encourage the existing contractors in the licensed/ leased area to realize the full potential of
Contract Areas and unlock the prospective unconventional hydrocarbons in their existing acreages.
• New investment in Exploration and Production (E&P) activities: it will increase the chances of finding
new hydrocarbon discoveries and their increased domestic production will help meet energy needs of
the economy and hence moving towards
Some important specific initiatives taken to enhance the
energy security as envisaged in
domestic natural gas production, expand the gas pipelines
Hydrocarbons Vision 2025 (box). and secondary infrastructure and develop the gas consuming
• Exploration and exploitation of additional markets include:
Hydrocarbon resources will give new • 100% Foreign Direct Investment (FDI) in many segments
impetus to economic activities, additional of the hydrocarbon sector.
employment generation and will benefit • Adoption of a Discovered Small Fields (DSF) policy and
various sections of society. Hydrocarbon and Exploration Licensing Policy (HELP)
• It will lead to induction of new, innovative • Linkage of gas prices to the market/important hub prices
and cutting edge technology and forging under the New Domestic Natural Gas Price Guidelines of
2014.
new technological collaborations to
• Marketing and pricing freedom for new gas production
exploit unconventional hydrocarbons.
from Deepwater, Ultra Deepwater and High Pressure-High
• There will be a complete shift from ‘One Temperature areas, subject to certain conditions. Also,
Hydrocarbon Resource Type’ to ‘Uniform Marketing and pricing freedom for gas produced from
Licensing Policy’ which is presently Coal Bed Methane (CBM) fields to incentivize CBM
applicable in Hydrocarbon Exploration operations in the country.
and Licensing Policy (HELP) and • Development of 2,650 km-long Jagdishpur-Haldia &
Discovered Small Field (DSF) Policy. Bokaro-Dhamra natural gas pipeline to ensure supply of
natural gas to eastern India.
Other steps taken towards enhancing the • Reduction of basic customs duty on LNG from 5% to 2.5% in
production of unconventional hydrocarbons: the 2017 budget to boost LNG demand in industrial and
commercial sectors, especially power, petrochemical,
• Oil ministry recently included shale
fertilizer and CGD, and also help in reviving stranded
under the definition of petroleum: capacity of power and fertilizers plants.
Earlier, under the Petroleum and Natural • Gas pooling mechanism for fertilizer sector to encourage
Gas Rules, 1959, Petroleum included utilisation of fertilizer units in the country.
naturally occurring hydrocarbons, • Priority for allocation of domestic gas accorded to Piped
whether in the form of natural gas or in a Natural Gas (PNG)/Compressed Natural Gas (CNG)
liquid, viscous or solid form, or a mixture segments to meet 100% of their demand and faster roll
of these, but did not include coal, lignite, out of PNG connections and CNG stations to promote the
and helium occurring in association with use of natural gas in the transport sector, households and
petroleum or coal or shale. small industries.
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• Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016 which has the four main
facets:
o uniform license for exploration and production of all forms of hydrocarbon,
o an open acreage policy,
o easy to administer revenue sharing model and
o marketing and pricing freedom for the crude oil and natural gas produced.
• In 2015, the Cabinet had approved the Marginal Field Policy (MFP)/ DSF policy with the objective to bring
marginal fields, that could not be monetized for years due to various reasons such as isolated locations,
small size, prohibitive development costs, technological constraints, unfavourable fiscal regime, to the
production at the earliest so as to augment the domestic production of oil and gas.
• Open Acreage Licensing Policy (OALP): Setting up of National Data Repository. OALP enables upstream
companies to bid for any oil and gas block without waiting for the announcement of bidding.
• Shift towards a gas based economy: The Government wants to make India a gas-based economy ‘by
boosting domestic production and buying cheap LNG’. India has set a target to raise the share of gas in
its primary energy mix to 15% by 2022. GoI has adopted a systematic approach to focus on all aspects of
the gas sector:
o Development of gas sources either through domestic gas exploration & production (E&P) activities
or through building up facilities to import natural gas in the form of LNG
o Development of adequate gas pipeline infrastructure including nationwide gas grid and Secondary
distribution network
o Development of gas consuming markets including fertilizer, power, transport and industries, etc.
3.16. UNIFIED METROPOLITAN TRANSPORT AUTHORITY (UMTA)

Why in News?
Recently, there have been calls for setting up Unified Metropolitan Transport Authorities (UMTA) in various
metro cities of India.
Govt. Planning Unified Freight Transport Authority:
Need for an UMTA:
The Government is planning to setup a Unified Freight Transport
• Structural inadequacies in Authority for seamless movement of freight across the country’s rail, road
planning urban transport: The and water networks.
complexity arising from the Need for a Unified Freight Transport Authority:
multiplicity of laws at the
Central and State Government • Complex regulations and administrative procedures: Currently Rail,
Water and Road transport in India are managed by different agencies
levels related to urban
which have resulted in overly complex regulations and administrative
transport gets aggravated by procedures as well as missing modal links and an inefficient modal
the multiplicity of mix. As of 2008, the mix was 50% of total freight flow via roads, 36%
authorities/departments that by rail, 7.5% by pipelines, 6% by coastal shipping, 0.2% by inland
are involved often hinders the waterways and 0.01% by airways.
development of integrated and • High logistics cost: In India, logistics sector comprises 14% of gross
sustainable urban transport domestic product (GDP), much higher than in the US or Europe,
solutions. For instance, where it is 8-9%. High logistics costs hurt Indian competitiveness, for
currently, the Tamil Nadu instance, Government’s clearance hurdles hold up shipments for up
government has 10 different to three days before they make it through the Jawaharlal Nehru Port
Trust (JNPT) as against a few minutes being taken at any port in
agencies, which are involved in
Singapore.
traffic and transportation • A blueprint prepared by NITI Aayog titled ‘National Strategy for
management in Chennai Transforming Mobility’ suggests four paradigm shifts for speedy
Metropolitan area and movement of freight. These include:
governed by various ministries o Need for a uniform authority across sectors and modes
and department. o Greater Private participation in the rail sector
• Lack of integrated planning for o Impetus to multi-modal freight aggregators
mobility needs For example, o Construction of large multi-modal logistic hubs at Indian Ports
agencies such as the municipal • Can boost India’s competitiveness by reducing transport time and
corporation, development costs: As pointed out by Economic Survey 2017, the interstate trade
flows in India stand at a healthy 54% of GDP. The Authority can further
authority, industrial
boost this.
development corporation,
65
private developers, etc, all plan road infrastructure but for their respective jurisdiction, without
understanding the impact of these project at a city level.
• New metro rail policy of 2017 makes mandatory for setting up UMTA to prepare Comprehensive Mobility
Plans for cities for ensuring complete multi-modal integration for optimal utilization of capacities. It will
also be easy to implement the single ticketing system for easy and hassle-free commute within the city.
• National Urban Transport Policy 2006 recognized that for urban areas to be able to support the required
level of economic activity, easy and sustainable movement of goods and people must be provided.
However, till September 2017, only 14 cities have set up UMTA so far.
• Ease the ever-growing pressure of burgeoning urban population on services: Indian cities are already
facing a plethora of problems like severe congestion, deteriorating air quality and increasing road rage
and road accidents. With an increasing urban population that is projected to more than double to 590
million by 2030, the traffic situation is set to worsen further.
• Help achieve SDG targets: the move will have positive impact on Sustainable Development Goals
including poverty reduction, gender equality, climate action, food security and reducing inequalities.
• Leverage inland Waterways: The authority would complement the NITI Aayog’s proposed National
Policy on Transformative Mobility that aims to reduce the underutilization of existing rail infrastructure,
develop inland waterways, utilize coastal areas, and develop unused air strips, among other targets.
Roles and responsibilities of UMTA:
• Inputs in policy formulation: UMTA would provide inputs to the Central and State Governments in
developing policies and strategies for removing bottlenecks and modernizing the city’s transport
system.
• Ensuring project implementation: UMTA would be responsible for ensuring effective implementation of
plans and projects related to urban transport in the Urban Mobility Area.
• Overseeing operation and management: Operation, maintenance and management of transport
infrastructure and operations involving public transport services are generally carried out, either by
public agencies or private companies.
• Regulation: Regulatory functions with respect to urban transport include registration and licensing of
public, private and freight transport vehicles, fare fixation, issuance of permits, designation of public
transport routes and service levels, inspection of vehicles’ construction or condition, enforcement of
traffic laws and management of traffic. It would ensure enhanced safety as well as equitable and
environmentally friendly access and services to the transport system users;
• Funding: UMTA would be made responsible to manage Urban Transportation Fund, bringing in
transparency and accountability.
• Research studies and awareness: UMTA shall be made responsible for conducting research specific to
the Urban Mobility Area, including up-grade and extension of urban transport.
Way Forward:
• India needs to have a single unified transport ministry with a clear mandate to deliver a multi-modal
transport system that contributes to the country’s larger developmental goals including economic
growth, employment generation, expansion of opportunities, environmental sustainability and energy
security.
• It should give adequate focus to hitherto neglected aspects, such as walking and cycling, road safety,
street infrastructure, etc.
• UMTA should oversee operations, broad rules and regulations of various public and private
transportation service providers in the city.
3.17. DIGITAL PAYMENT

Why in news?
NITI Aayog recently pointed out that the digital payments market in India is set to become a trillion-dollar
industry in the next five years, led by growth in mobile payments which are slated to rise to $190 billion by
2023 from $10 billion in 2017-18.
66
About Digital Payment in India
• The Payment and Settlement Act, 2007 defines Digital Payments/electronic funds transfer as any
transfer of funds which is initiated by a person by way of instruction, authorization or order to a bank to
debit or credit an account maintained with that bank through electronic means and includes point of
sale transfers; automated teller machine transactions, direct deposits or withdrawal of funds, transfers
initiated by telephone, internet and, card payment.
• The payment system can be bifurcated into two main segments:
o The first segment consists of instruments which are covered under Systemically Important
Financial Market Infrastructure (SIFMIs) and the second segment consist of Retail Payments.
o Financial Market Infrastructure (FMI) is defined as a multilateral system among participating
institutions, including the operator of the system, used for the purposes of clearing, settling, or
recording payments, securities, derivatives, or other financial transactions. Under this segment
there are four instruments of payments: Real Time Gross Settlement, Collateralized Borrowing and
Lending Obligation, Forex Clearing and Government Securities.
o Under the Retail Payments segment which has a large user base, there are three broad categories
of instruments. They are Paper Clearing, Retail Electronic Clearing and Card Payments which
includes Cheque Truncation System, National Electronic Funds Transfer, Unified Payments Interface,
Immediate Payment Service etc.
• India’s payment system - particularly, its digital payments system - has been evolving robustly over the
past many years, spurred by developments in information and communication technology.
• Digital payment is a primary tool to move to a 'less cash' economy since the cash to GDP ratio in India is
one of the highest in the world at about 12%.
• The user base for digital transactions in India is currently close to 90 million and could triple to 300
million by 2020 as new users from rural and semi-urban areas enter the market.
• The year-on-year growth of digital payments in 2017-18 was 44.6% which was nearly double the growth
in volume for the period 2011-2016.
• Transactions relating to IMPS, PPI and Debit card had exhibited growth rates in triple digits in the year
2016-17.
Benefits
• Digital payment is faster, easier, more convenient than cash transactions.
• It enables increased levels of financial participation and inclusion.
• It promotes more transparency and accountability and decreases the size of the grey or informal
economy.
• It stores digital record of transactions which customers can track.
• It helps to keep black money under control and also increases tax compliance.
• It reduces cost of transactions. No additional cost of printing cash is involved with digital payments. A
0.4% reduction in cost of cash can also boost savings by 4 trillion by 2025.
• Economic growth is increased by increasing the level of spending in the economy due to digital
payment.
• It hinders the terror financing network and circulation of counterfeit notes.
Challenges
• Unbanked population: about 19 percent of the Indian population is still outside the banking net which is
a major hurdle to digital payments.
• Low internet penetration: Internet penetration in urban India was 64.84% in December 2017 and rural
internet penetration was just 20.26%.
• Low levels of digital literacy: Approx. 40% population is living below poverty line, illiteracy rate is more
than 25-30% and digital literacy is almost no-existent among more than 90% of India’s population.
• Lack of resources: Small Service providers don’t have enough resources to invest in electronic payment
infrastructure. (e.g. Point-of-sale terminals).
• Cyber threats: Cyberattacks can cause personal and commercial data to be lost or compromised causing
financial institutions financial loss. Based on estimates, cyberattacks cost the global economy 1% of
annual GDP.
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• Regulatory hurdles: The majority of the mobile payment service providers are non-compliant with the
strict provisions for dealing with sensitive personal data including financial data as mandated by IT Act,
2000 and rules under it. Also, IT Act is not comprehensive. India lacks laws to protect consumers if they
lose money.
• Cash dependent economy: 92% of the Indian economy is made up of informal workers, who contribute
around 50% of the GDP; 80-90% of these workers are paid in cash. Mediums like smartphones and
internet connectivity are still unaffordable to a sizeable population thus denying them access to digital
forms of transaction.
Initiatives taken to promote digital payments:
• The National Payments Corporation of India (NPCI) was established in 2008 to spearheading the
development of the retail payments system.
• Various important milestones attained in the development of the payments system include the
introduction of MICR clearing in the early 1980s, Electronic Clearing Service and Electronic Funds
Transfer in the 1990s, issuance of credit and debit cards by banks in the 1990s, the National Financial
Switch in 2003 that brought about interconnectivity of ATMs across the country, the RTGS and NEFT in
2004, the Cheque Truncation System (CTS) in 2008, the second factor authentication for the ‘card not
present’ transaction in 2009 and the new RTGS with enhanced features in 2013.
• These measures have been complemented by significant initiatives by the NPCI including the launching
of grid-wise operations of CTS, RuPay (a domestic card payment network), Aadhaar Payments Bridge
System and Aadhaar Enabled Payment System, National Unified USSD Platform (NUUP), UPI and the
BHIM application.
• For promotion of the BHIM app, the Government had approved schemes namely ‘Referral Bonus scheme
for individuals’ and ‘Cashback scheme for merchants’ for a period of 6 months
• Settlement at half-hourly intervals was introduced in the National Electronic Funds Transfer (NEFT)
system.
• Rationalisation of Merchant Discount Rate was undertaken to provide a boost to digital payments.
• The digital infrastructure called the “JAM” trinity by interlinking of Jan Dhan, Aadhaar and mobile
numbers was a major landmark.
• Furthermore, non-bank entities have been introduced in the issuance of pre-paid instruments (PPI),
including mobile and digital wallets.
• Reserve Bank of India has also decided that Recommendations of Ratan Watal Committee
all system providers shall ensure that the • It recommends for creation an independent
entire data relating to payment systems payments regulator within the framework of the
operated by them are stored in a system Reserve Bank of India (RBI) or give independent
only in India to ensure better monitoring. status for the RBI’s Board for Regulation and
Supervision of Payment and Settlement Systems
• DigiShala: Free Doordarshan DTH
(BPSS) to be called the Payments Regulatory Board
educational channel for creating awareness
(PRB).
regarding various forms of electronic • It had also suggested interoperability between
payment. banks and non-bank digital payment
• Vittiya Saksharta Abhiyan of Ministry of gateways/entities as well as within non-banks.
Human Resource Development aims to • Other major suggestions have been creation of a
actively engage the youth/ students of fund for promotion of digital transactions,
Higher Education Institutions to encourage withdrawal of all charges on digital-based
and motivate all payers and payees to use a transactions by the government, with special
digitally enabled cashless economic system emphasis on low-value transactions (that are mainly
financed by cash).
for transfer of funds.
• It had also asked RBI to upgrade the existing real-
• A Committee on Digital Payments was
time gross settlement system (RTGS) and National
constituted in 2016 under Ratan Watal to Electronic Funds Transfer (NEFT) systems so that
recommend measures for promotion of they operate on a 24/7 basis.
Digital Payments Ecosystem in the country. • It also called for mandating government departments
and agencies to provide options to consumers to pay
Conclusion
digitally as well as incentivize consumers to make
For smooth implementation of cash less system payments (including payment of fines and penalties)
in India, a wide variety of measures are needed to the government electronically by giving a discount
by the Government. It will have to bring or cashback.
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transparency and efficiency in e-payment system, strategies licensing payment banks, promoting mobile
wallets and withdrawing service charge on digital payments, etc.
• Reducing the digital divide and increasing the awareness in the rural public.
• Ease the complexities and enable end-of-day settlement process for the merchants (As small retailers
and merchants need rotation of cashflow in quick turnaround time for their business operations).
• Reduce the transaction charges over the digital payments and discourage cash transactions.
• ICT infrastructure plays a vital role in successful adaptation of digital payments and hence there is
intrinsic need to improve and offer requisite infrastructure for digital payments.
• Emphasis on integrated system of digital payments that can reduce the existing challenges and support
in quality outcome (For instance, ensuring more stringent laws for security breach, IT ACT for digital
payment transactions etc.)
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4. SECURITY
4.1. MAOIST ORGANIZATIONS IN TOWNS AND CITIES
Why in News?
Recent arrests of five people with alleged Maoist links for their role in Bhima – Koregaon incident has once
again brought the debate on the concept of “Urban Naxalism”.
Background
• 1967: Naxalite movement started by Charu Majumdar, Kanu Sanyal and Jangal Santhal in Naxalbari area
of West Bengal.
• 2004: CPI (Maoist) was formed with the merger of CPI (Marxist-Leninist) People’s War Group (PWG) and
the Maoist Communist Centre of India. It professed a violent ideological line to overthrow the
democratically elected Parliamentary form of Government in India through a three pronged strategy that
include:
o Using its People’s Liberation Guerilla Army (PLGA), Maoists aim to capture territories in the country
side and gradually encircle the urban centre.
o Use of Mass Organizations, also known as ‘Front Organizations’ mainly in urban areas to mobilize
certain targeted sections of the urban population, recruit professional revolutionaries, raise funds
for insurgency, create urban shelters for underground cadres.
o These organizations are generally manned by ideologues that include academicians and activists,
mostly operating under the garb of Human Rights NGOs that are organically linked to CPI (Maoist)
party structure but maintain separate identities in an attempt to avoid legal liability.
o Such organizations are also adept at using the legal processes of the Indian State to undermine and
emasculate enforcement action by the security forces and also attempt to malign the State
institutions through a concerted and systematic propaganda and disinformation campaigns to
further their cause. These ideologues have kept the Maoist movement alive and are in many ways
more dangerous than the cadres of the PLGA.
Operational Structure of CPI (Maoist): The Polit Bureau (PB), the think tank of the Maoist
organization keeps in touch with the over-ground frontal organizations (operating in urban areas),
operators and sympathizers and formulates long-term policy and strategy.
o To form a Rainbow Coalition of various insurgent groups: so as to launch a united front attack
against the existing state machinery.
• Banned under Unlawful Activities (Prevention) Act, 1967: CPI (Maoist) party and all its formation and
front organizations have been listed as Terrorist organizations under the Unlawful Activities (Prevention)
Act, 1967.
About Urban Naxalism
• In 2004, a CPI (Maoist) document titled ‘Urban Perspective: Our Work in Urban Areas’ elaborated on
Urban naxalism strategy: with a major focus on gaining leadership and expertise from urban areas, it
emphasized on mobilizing industrial workers and urban poor, establishing front organizations, building
‘tactical united fronts’ of likeminded organizations including the students, middle class employees,
intellectuals, women, dalits and religious minorities and engaging in military tasks such as providing
personnel, technologies, material and infrastructure along with infiltration of police.
• Active front organizations in many Indian cities: Arrest of a person professing the ideology of a
Intelligence report reveals that front Maoist:
organizations supporting 'Urban Naxalism' are • Kerala High Court in 2015 had held that being a
active in a number of cities including Delhi, Maoist and having a political ideology of the
Mumbai, Kolkata, Chandigarh, Ranchi, Maoist is no crime unless the police form a
Hyderabad, Visakhapatanam, Madurai, reasonable opinion that his activities are
Thiruvananthpuram, Nagpur and Pune. unlawful.
• Only if the individual or organisation abhors and
Significance of Urban presence for Naxals resorts to physical violence, the law agency can
prevent or take action against the individual or
• Logistics Support: The utility of having a
organisation.
presence in urban centres and operate there was
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best illustrated when police seized empty rocket shells and rocket launchers in 2006, in Mahabubnagar
district, Andhra Pradesh. This elaborates the network that Maoists had built to manufacture rocket parts
and transport them to different parts of the country.
• Tapping industrial workers: penetrating the working class movement in important industries such as
communication, oil and natural gas, coal, transport, power, defence production, etc is envisaged. The
detection of Maoist activities in towns such as Surat, in Gujarat, earlier in 2006, and later on several other
industrial belts, clearly reaffirms this.
• Attracting students and youth: The Urban Movement has attracted students towards the Maoist fold in
various parts of the country. Security agencies believe that the front organizations have started vigorous
movement in the education sector, to rope in students from several reputed colleges for their cause.
• Urbanisation itself has some faultlines and the Maoists could well exploit these to their advantage:
Besides, the Maoists enjoy some degree of sympathy and support among the urban intellectuals and
middle class, including students and teachers in schools, colleges and universities.
• Rest and recuperations: On many occasions important top-level leaders of the CPI (Maoist) have been
arrested from cities and towns hiding under the garb of civil society.
Way Forward
• Ministry of Home Affairs suggests that the strategy to tackle Left-Wing Extremist (LWE) challenges must
include plans to tackle 'Urban Naxalism'. State must initiate legal action against the Maoist front
organizations.
• A separate budget should be provided to counter the growing Naxal footprint in cities.
• Initiating legal proceedings against the ideologues including academicians and activists often resulted in
negative publicity for enforcement agencies due to effectiveness of the Maoist propaganda machinery.
There is a need to address the issue through systematic, protracted and persistent efforts.
4.2. DATA PROTECTION

Why in news?
Challenges/ constraints in data protection
Recently, B. N. Srikrishna committee submitted its • Most of the data storage companies are based
report on a Data Protection Framework and a draft abroad. They also export data to other jurisdiction
bill on data protection. making it difficult to apply Indian laws.
• India does not have capability for data localization
About Data Protection i.e. to store data within country.
• Data protection is the process of protecting • There hundreds of private players are involved in
data and involves the relationship between the data dynamics which makes it difficult to apply
uniform data protection framework.
collection and dissemination of data and
• Generally, the application using pre-ticked boxes
technology.
on consent while asking users regarding the
• It aims to strike a balance between individual acceptance to the terms and conditions.
privacy rights while still allowing data to be used • It is usually difficult to trace the perpetrator
for myriad purposes. invading the data privacy.
• It is required as the volume of data on internet is
expanding exponentially and the spread of new technologies like artificial intelligence internet of things
big data poses a threat of abuse and misuse of data.
• Any data protection framework should secure data in its entire life cycle – Data Collection, Data
Processing, Data Use, Data Sharing, Data Destruction.
• Several countries have dedicated law for data protection like Japan’s Act on Protection of Personal
Information. Recently European Union has adopted General Data Protection Regulation 2018.
Data protection and India
• India has around 40 cr internet users and 25cr social media users who spend significant time online. The
average cost for data breach in India has gone up to Rs. 11.9 crore, an increase of 7.9% from 2017.
• Supreme Court in K.S. Puttaswamy case has declared Right to Privacy is a Fundamental right. Hence
protecting individual privacy is constitutional duty of the state.
• India does not have any dedicated legal framework for data protection. Presently some acts cover the
data protection in general
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o Sec 43 A of Information technology act TRAI guidelines for data security
2000 protects user data from misuse • The public should be given the right to choice, consent
but it is applicable to only corporate and to be forgotten to safeguard their privacy.
entities and not on government • Individual owns the data while data collectors and data
agency. Also the rules are restricted to processors “mere custodians” of data who are subject
sensitive personal data only — medical to regulations.
history, biometric information among • All entities in the digital eco-system, which control or
other things. process the data, should be restrained from using
o Other acts like consumer protection metadata to identify the individual users. In fact,
standards for annonymisation/de-identification of
Act 2015, copyrights act 1957 among
personal data in digital systems should be formulated.
others also attempt to protect the
• Both collectors and processors should be accountable
personal information. for “unintended harm” caused to the user.
• Various attempts at data protection include • Entities should follow the principle of data minimization
o In 2011 justice A. P. Shah Panel on data i.e. to collect the bare minimum data needed to provide
privacy recommended principles for the service.
data protection. • Existing privacy laws that apply to telecom service
o In 2017, a data privacy and protection providers (TSPs) should also apply to “all entities in the
bill was tabled in parliament. digital ecosystem” such as devices (mobiles and
o Recently Telecom regulatory authority computers), browsers, software operating systems,
applications, and over-the-top (OTT) service providers
of India (TRAI) has given its guidelines
that distribute media streamed over the Internet.
for data security.
o Constitution of Justice B. N. Sri Krishna
Committee to prepare framework for data protection and a draft bill, which submitted its report
recently. Based on the framework, the committee has also prepared a Draft Personal Data
Protection Bill 2018
Key features of Data protection framework as provided by Sri Krishna Committee
• Fiduciary relationship: The relationship between the individual and the service provider must be viewed
as a fiduciary relationship. Therefore, the service provider processing the data is under an obligation to
deal fairly with the individual’s personal data, and use it for the authorised purposes only.
• Definition of personal data: It defined what constituted personal data as data from which an individual
may be identified or identifiable, either directly or indirectly. It sought to distinguish personal data
protection from the protection of sensitive personal data (e.g., caste, religion, and sexual orientation of
the individual), since its processing could result in greater harm to the individual.
• Consent-based data processing: except these four cases:
o where processing is relevant for the state to discharge its welfare functions
o to comply with the law or with court orders in India
o when necessitated by the requirement to act promptly (to save a life, for instance)
o in employment contracts, in limited situations (such, as where giving the consent requires an
unreasonable effort for the employer)
• Ownership of personal data: through rights such as right to access, confirm & correct data, right to
object data processing and right to be forgotten.
• Regulatory authority: to inquire into and take action against any violations of the data protection
regime. It may also categorise certain fiduciaries as significant data fiduciaries based on their ability to
cause greater harm to individuals which will then be required to undertake additional obligations.
• Amendments to other laws: Minimum data protection standards should be adhered to for all data
processing in the country authorized under various laws such as Information Technology Act, Census Act
etc.
Key provisions of Draft Personal Data Protection Bill 2018
• Objective: To balance the growth of the digital economy and use of data as a means of communication
between persons with a statutory regime that will protect the autonomy of individuals from
encroachments by the state and private entities.
• Rights of the individual: The Bill sets out certain rights of the individual. These include: right to obtain
confirmation from the fiduciary on whether its personal data has been processed, right to seek
72
correction of inaccurate, incomplete, or out-of-date personal data, and right to have personal data
transferred to any other data fiduciary in certain circumstances.
• Obligations of the data fiduciary: include implementation of policies with regard to processing of data,
maintaining transparency with regard
Positive impact of the bill
to its practices on processing data,
• The law will create the balance between the rights of the
implementing security safeguards individual and the public good that comes from the digital
(such, as encryption of data), and economy.
instituting grievance redressal • So far there is no dedicated framework for data protection
mechanisms to address complaints of across country. The proposed law will help create data security
individuals. architecture and protection of personal information of citizens.
• Data Protection Authority: to protect • The bill will put a check on state surveillance of citizens and
interests of individuals, prevent help them against being victimized by state.
misuse of personal data, and ensure Issues with the bill
compliance with the Bill. • There is no clarity on what kind of security standards should
be followed by the data fiduciary.
• Data localization: It mandates Data
• There are multiple standards being followed as of now. For
localization of at least one copy in example, payment companies which deal with financial data
India by data fiduciary. follow PCI-DSS (Payment Card Industry Data Security
• Grounds for processing personal Standard), health firms follow HIPPA (Health Insurance
data: The Bill allows processing of Portability and Accountability Act) globally etc.
data by fiduciaries if consent is • The regulation may discourage people from using internet and
provided except certain social media as reflected in case of (EU’s) General Data
circumstances as provided in the Protection Regulation (GDPR) which mandates that every EU
framework. citizen’s data be stored within the EU. The Facebook and
Twitter has noted drop in their revenue and visitors’ numbers.
• Grounds for processing sensitive
• It does not clearly define the government’s accountability
personal data: explicit consent of the
when it processes personal data of users without their
individual is required for Processing consent.
of sensitive personal data except if • The bill also does not define the time frame for periodic review
necessary for any function of and frequency of data security audit of companies as well as
Parliament or state legislature, for for reporting of personal data breach at the fiduciary’s end.
providing benefits to the individual, • Issues with data localization
or for the compliance of any court o There is no evidence that data localization leads to better
judgement. privacy and security of data.
• Define Sensitive personal data: It o The industry will have to incur the additional costs given
the bill proposes that companies ensure the storage, on a
includes passwords, financial data,
server or data centre located in India, of at least one copy
genetic data, caste, religious or of personal data.
political beliefs, or any other category o Keeping a copy in India does not really guarantee against
of data specified by the Authority. breach of security or privacy. There have been cases of
• Transfer of data outside India: government beneficiaries’ data residing on servers in India
Personal data (except sensitive being published, going against Aadhaar Act.
personal data) may be transferred • The bill asks to replace sec 8(1) (j) of RTI act 2005 which may
outside India only where the central pose a threat to denial of information on the vague grounds of
government has prescribed that loss of reputation, mental injuries and will render the Act
ineffective in securing access to public records pertaining to
transfers to a particular country are
public servants.
permissible, or where the Authority
• The exemption on the ground of security of state may be too
approves the transfer. broad and may lead to surveillance and systematic access to
• Exemptions from compliance: It also citizens’ data by the state.
gives exemptions for processing of
personal data for certain purposes, such as journalistic activities, law enforcement, security of state.
• Offences and Penalties: The Authority may levy penalties for various offences by the fiduciary including
failure to perform its duties, data processing in violation of the Bill, and failure to comply with directions
by the Authority. For example, under the Bill, the fiduciary is required to notify the Authority of any
personal data breach which is likely to cause harm to the individual failing which can attract a penalty of
the higher of Rs 5 crore or 2% of the worldwide turnover of the fiduciary.
• Amendments to other laws: The Bill makes consequential amendments to the Information Technology
Act, 2000 and RTI Act to permit nondisclosure of personal information where harm to the individual
outweighs public good.
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• Recognises privacy as a fundamental right: It has provisions to protect personal data as an essential
facet of information privacy.
• Monitoring provisions: Requirements of conducting Data Protection Impact Assessments, audits and
appointing a Data Protection Officer are also included in the bill. There should be a periodic review to
check if continued storage of data is necessary.
4.3. STRATEGIC PARTNERSHIP MODEL

Why in news?
The Defence Acquisition Council (DAC), chaired by defence minister has approved Implementation guidelines
for the Strategic Partnership Model.
What is strategic partnership model?
• The model, whose concept was first suggested by the Dhirendra Singh Committee, visualises
designating a few private companies as Strategic Partners (SPs) that would not only assume the role of
system integrators but also lay a strong defence industrial foundation.
• Strategic Partnership Model aims to revitalize defence industrial ecosystem and progressively build
indigenous capabilities to design, develop and manufacture complex weapon systems for the future
needs of the Armed Forces.
• It aims to promote Joint ventures between indigenous private sector and global defence majors.
• The government aims to achieve a turnover of Rs 1,70,000 crore in military goods and services by 2025.
Guidelines
• Incentivise indigenisation: It lay emphasis on incentivisation of transfer of niche technology and ensure
higher indigenous content in military equipments to be produced in India.
• Incentivise global Majors: Global majors in collaboration with Indian Partners willing to make India a
Regional / Global manufacturing hub will also be incentivized.
• Empowered Project Committees (EPC): All procurements under the SP Model would be executed by
specially constituted EPCs.
• Specify norms: The guidelines also specified norms for carrying out various sector specific manufacturing
projects.
Benefits
• It will boost self-reliance by encouraging indigenous defence industry and aligning the defence sector
with the 'Make in India ' initiative leading to reduction in dependence on imports.
• EPC will provide focussed attention and ensure timely execution of the projects, thus, ensuring timely
delivery of equipment to the Armed Forces.
• It will enhance competition, increase efficiencies, facilitate faster and more significant absorption of
technology.
• It will ensure development of a wider skill base and promote innovation.
• The model would also go a long way in bridging the long-standing trust gap between the Indian private
sector and Ministry of Defence.
Challenges
• Lack of institutional capacity: Due to this, several promising measures in the past, especially those
connected with the ‘Make’ and ‘Buy and Make (Indian)’ procedures, have failed to yield the desired
results.
• Lack of structural and procedural reforms: Lack of reforms in the structures and decision-making
processes related to procurement and production have inhibited the development of a strong defence
industry.
• IPR issues: The sensitive issue of Intellectual Property Rights (IPR) is one of the reasons why foreign
vendors are generally reluctant to transfer technologies.
• Issue of viability: There is also a concern regarding the long-term viability of SPs largely due to the
privileged position enjoyed by public sector entities. In the past as well, the MoD has often deviated
from fair play in award of contracts and handed over large orders to Defence PSUs and Ordnance
Factories on nomination.
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Thus, Government needs to develop capacity and provide adequate resources to implement the model along
with following the principle of merit in contract awards.
4.4. BORDER AREA DEVELOPMENT PROGRAMME (BADP)

Why in news?
The Centre has increased its outlay under Border Area Development Programme (to Rs. 1,100 crore in 2017-18
from Rs. 990 crore in 2015-16) for the all-round development of villages located along the international
border in 17 states.
About BADP
• India’s border areas face poor accessibility, inadequate infrastructure, depressed economic growth,
rampant poverty and a sense of insecurity among the people. The development of border areas has
therefore been envisaged as an important element in border management. Towards this end, the BADP
was initiated as early as 1987 as a Centrally Sponsored Scheme.
• It has three primary objectives: (a) to create infrastructure (b) provide economic opportunities to the
border people, and (c) to instil a sense of security among them.
• BADP covers 111 border districts in 17 States to meet special development needs of border population
with focus on people living within 50 kilometres of the International Border.
• Initially, the programme was implemented in the Western Border States with an emphasis on the
development of infrastructure to facilitate deployment of the Border Security Force.
• Later, the ambit of the programme was widened to include other socio-economic aspects such as
education, health, agriculture and other allied sectors.
• The implementation of BADP is on participatory and decentralized basis through the Panchayati Raj
institutions, Autonomous Councils and local bodies.
Constraints in Implementation of BADP Scheme Impact of the Scheme
• The impact of scheme varied in different states. For
• Its first phase is to be implemented in the 0-
example-
10 km range from the border areas. When all o 32% of the people of Manipur, 54% of the people of
the development works for this area are Mizoram and 100% of people in Himachal Pradesh
completed, the state Government can then were satisfied in terms of impact of community
start the work in the area beyond 10 km and development work of the scheme.
so on. This is problematic because to reach o 82% of the people of Tripura and 14% of the people
the phase one areas one must go through of Nagaland settled said they do not feel secure.
utterly underdeveloped areas which are to 100% of the people of Gujarat settled said they feel
be covered in later phase, which makes the secure.
o In almost all areas (except Himachal Pradesh) the
project expensive.
women’s participation remained varied and
• Further, BADP mandates that no work unsatisfactory.
should be allotted beyond 10 km unless 0-10 • Also, in terms of convergence with other schemes, it is
km (from border) area is ‘saturated’; except not very successful because none of the clusters seem
that there are no criteria to judge whether satisfied with it.
or not the area is saturated. • As observed, the bigger villages having village
• In some remote areas, heavy rainfall during panchayat get most of their works done while small
the rainy season and snow fall during the villages associated with that village panchayat fail to
winter season creates a great difficulty in get much attention. Thus, there need to be some
formula for the distribution of funds. Political
implementation of the scheme, especially
connections play a major role in sanction of work under
construction work.
BADP.
• The money under the scheme gets spent on
infrastructure which other schemes also create. The impact of the specific goals of BADP thus stands
diluted.
• There is no proper formula for the allocation of funds. This creates a lot of scope for subjectivity and
monopoly. A fund allocation ratio should be decided as per the distance from border.
Recommendations for Better Implementation of BADP
Among various other recommendations of NITI Aayog, few of the important ones are-
75
• Inspection and Monitoring of Program- Recent changes in BADP
There should be a uniform format • For comprehensive and all-round development of border
throughout the country for evaluating villages, it has been decided to develop 61 model villages.
the financial status of such • Each model village will provide all basic facilities like primary
developmental schemes. At present, health centre, primary education, community centre,
each State has its own format/Proforma connectivity, drainage, drinking water, etc. to enable
for this purpose. Also, Blocks should be sustainable living in border areas.
involved at every stage from framing • BADP Online Management System has been launched for
better planning, monitoring and implementation of various
and sending a proposal to the
projects under BADP.
implementation of tasks under BADP.
• Border States can submit their respective Annual Action
• Employment and Skill Generating Plans online and receive approvals from Ministry of Home
Schemes- The agriculture sector has Affairs in electronic mode which will bring in transparency in
become saturated and there is an the sanction process and improve quality of planning and
increase in number of both educated implementation.
and uneducated unemployed youth
who feel that the wages under the scheme are low. There has to be a high degree diversification in the
rural economy to bring home non-farming employment opportunities like Small-Scale Industry
Promotion.
• Political Involvement should be Reduced- Although there is political and popular pressure that
influences and informs the selection of the work, yet diversification of the works is advisable on the basis
of local needs.
• Awareness about BADP- Along with good coordination among various line departments there is an
urgent need for awareness building campaigns in all selected districts and blocks regarding various
assets covered under BADP.
• Construction of all-weather Roads- The problem of inadequacy of funds and a limited flow of funds from
the Centre is further exaggerated because these villages are not connected by roads. In cases
emergency, the people of these villages find it extremely difficult to access basic amenities.
• More Funds/Timely Release of Funds- This remains a major constraint to the timely completion of work
under BADP.
• Power to Panchayats in Planning- Panchayat Samiti of the Border villages should be involved in the
planning and implementation of the programme because they would be in the best position to evaluate
the work of the agencies involved at all levels as well as to forward all the information to the BDOs and
Nodal Officers in the district.
• Confidence Building among People- Due to socio-economic stress, border areas need special treatment
when it comes to planning for development, i.e. accelerated and integrated sustainable development.
Here, confidence building measures are integral to any developmental strategy hoping to be successful
in these areas.
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5. ENVIRONMENT
5.1. KERALA FLOOD
Why in news?
Recently, Kerala witnessed their worst flood since 1924, killing at least 480 people, displacing 780,000 and
causing ₹ 50,000 crore worth of damage in State.
Background
• tIndia’s Vulnerability to Floods: Out of 40 million
hectares of a geographical area, 3290 lakh hectares is
prone to floods in country.
• Impact of Climate Change: Intensity of extremely wet
spells and extremely dry spells during the South Asian
monsoon season have been increasing since 1980.
• Financial Drain: Floods costs the country Rs. 8,12,500
crore between 1953 and 2011 and according to World
Resources Institutes (WRI), by 2030, up to $154 billion of
the country’s gross domestic product could be exposed
to flood risks each year, as climate change fosters more
extreme weather events.
• Comptroller and Auditor General (CAG) in June 2017
says the States have failed to conduct a scientific
assessment of flood-prone areas and of the 349 dams
surveyed, only 40 prepared detailed disaster
management plans.
o It also pointed out that poor dam management was
responsible for India’s floods, such as Bihar in 2016
and Surat in 2006. In the 2015 Chennai floods, which
claimed 295 lives, violation of dam safety norms was
a critical factor.
Flood vulnerability in Kerala
• Rashtriya Barh Aayog (RBA) had estimated 8.70 lakh
hectares area as flood prone out of 38.90 lakh hectares
of geographical area in Kerala.
• Kerala State Action Plan on Climate Change (SAPCC) in
2014 assessed that state is severely threatened by
climate change (see infographic).
• Central Water Commission (CWC), India’s only flood forecasting agency, does not have any flood
forecasting system in Kerala.
• Gadgil report on fragile ecosystem of Western Ghats (2011), had warned that illegal mining and
deforestation had led to massive encroachment of river fronts in the state, and there was an urgent
need for corrective action.
o It also said that, unchecked quarrying and construction in ecologically sensitive areas, can cause
disastrous floods due to premature siltation in many reservoirs in the Western Ghats.
Reasons
• Incessant rainfall: Kerala received 2,346.6 mm of rainfall against a normal of 1,649.5 mm since the
beginning of June. The “active” phase of the monsoon is when the monsoon trough moves south of its
normal position causing heavy and intense showers in the southern peninsula
• Dam Mismanagement: There was an instant release of water from dam due to heavy rain, as dam
reservoirs were not emptied before the onset of rain, flooding the nearby regions at a much faster rate
than expected.
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o Kerala government claimed that sudden releases of water from the Mullaperiyar dam (located in
Kerala, but operated by Tamil Nadu) was a cause for the floods in the State.
• Stone quarrying: A recent study by the Kerala Forest Research Institute pointed out that there were
5,924 big, medium and small quarries in the state. Mudslides and landslides were reported in 211 different
places across the state which is attributed to increasing stone quarrying activity and large-scale
deforestation.
• Other factor which aided in flood are deforestation drive for development purpose, Uncontrolled sand
mining has constrained river flows, while the rapid spread of high-rise buildings on unstable hill slopes
has weakened the soil. This unplanned development has left the area susceptible to flash floods and
landslides.
Impact
• Impact on Agriculture: Standing paddy crop and plantations of banana, rubber, cardamom, pepper and
arecanut have been devastated as the floods have been concentrated in the plantation districts of
Idukki, Kottayam and Wayanad.
• Loss of Livelihood: According to Care Ratings, employment of nearly 41.3 lakh has been affected and the
wage loss is estimated at around Rs 4,000 crore for August.
• Loss of Soil Fertility: Flood cause heavy damages to top soil, which takes time to be restored to its
natural state.
• Cultural loss: Kerala government has cancelled the celebration of festival Onam, the harvest festival of
Kerala.
• Economic Impact: According to ASSOCHAM, floods in Kerala could potentially have caused damage
worth Rs 15,000-20,000 crore, which include infrastructural damages to 134 bridges and 16,000 km of
Public Works Department roads.
• Disease outbreak: Following severe flooding, 196 leptospirosis (rat fever) cases and nine deaths have
been confirmed in Kerala.
o Leptospriosis (also called Weil's disease) is a waterborne bacterial disease, caused by the leptospiro
bacteria. It rarely spreads from person to person and can be treated with common antibiotics. It’s
incubation period is between five and 14 days.
NDMA guidelines on Management of Flood
• Shifting the focus to preparedness by implementing FMPs.
• Ensuring regular monitoring of the effectiveness and sustainability of various structures and taking
appropriate measures for their restoration and strengthening.
• Continuous modernization of flood forecasting, early warning and decision support systems.
• Ensuring the incorporation of flood resistant features in the design and construction of new
structures in the flood prone areas.
• Drawing up time-bound plans for the flood proofing of strategic and public utility structures in flood
prone areas.
• Improving the awareness and preparedness of all stakeholders in the flood prone areas.
• Introducing appropriate capacity development interventions for effective FM (including education,
training, capacity building, research and development, and documentation.)
• Improving the compliance regime through appropriate.
Dam Management in India

• About 75 percent of the large dams in India are more than 25 years old and about 164 dams are more
than 100 years old. A badly maintained, unsafe dam can be a hazard to human life, flora and fauna, even
India has had 36 dam failures in the past.
Dam Rehabilitaton and Imporovement Plan (DRIP)
• It is an externally-aided project. 80% of the total project is provided by the World Bank as loan/credit
and remaining 20% is borne by the States / Central Government (for CWC).
• This project started in April 2012, for repair and rehabilitation of initially 225 Dams across seven states
namely Jharkhand (DVC), Karnataka, Kerala, Madhya Pradesh, Odisha, Tamil Nadu, and Uttarakhand
(UJVNL).
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• At present there are 198 Dams under this project which are scheduled for completion in June 2018.
• Objective of DRIP –
• to improve the safety and operational performance of selected existing dams and associated
appurtenances in a sustainable manner, and
• to strengthen the dam safety institutional setup of participating States / Implementing Agencies.
Emergency Action Plan
• The Emergency Action Plan (EAP) for the Dams under DRIP has been proposed. EAP is a formal plan
that identifies potential emergency conditions at a dam and prescribes the procedures to be followed
to minimize loss of life and property damage.
• EAP help in streamlining the efforts and bring about better coordination among different agencies to
execute rescue and relief activities.
Dam Safety Bill, 2018
• The objective of this Bill is to help develop uniform, countrywide procedures for ensuring the safety of
dams and provides for proper surveillance, inspection, operation and maintenance of all specified dams
in the country to ensure their safe functioning.
• It provides for constitution of a National Committee on Dam Safety which shall evolve dam safety
policies and recommend necessary regulations
• It provides for establishment of National Dam Safety Authority as a regulatory body which shall
discharge functions to implement the policy, guidelines and standards for dam safety in the country.
• The Bill provides for constitution of a State Committee on Dam Safety by State Government.
About State Committee on Dam Safety
• It will ensure proper surveillance, inspection, operation and maintenance of all specified dams in that
State and ensure their safe functioning.
• It lays onus of dam safety on the dam owner and provides for penal provisions for commission and
omission of certain acts.
• Every state having specified number of dams will establish State Dam Safety Organization which will be
manned by officers from the field dam safety preferably from the areas of dam-designs, hydro-
mechanical engineering, hydrology, geo-technical investigation, instrumentation and dam-
rehabilitation.
5.2. MONSOON FORECASTING

Why in News?
Recently, Indian Ocean Research Vehicle (IORV) Sagar Nidhi
as part of India- US expedition seeking to find answers to
vagaries of Bay of Bengal fed South-West Monsoon was set
out in Indian Ocean.
Monsoon forecasting in India
• IMD adopted new methodology to forecast monsoon
in India. The new methodology, called dynamical
forecasting, breaks away from the century-old tradition
of using the British-developed statistical system for
forecasting.
• The dynamic modelling used by India has been sourced
from the US and is being tweaked according to the
Indian monsoon.
• Ministry of Earth Sciences (MoES), Government of
India had launched 'National Monsoon Mission' (NMM)
in 2012 with a vision to develop a state-of-the-art
dynamical prediction system for monsoon rainfall on
different time scales. Major objectives of the mission are:
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o To setup a state-of-the-art dynamical modeling frame work for improving prediction skill of
Seasonal and extended range prediction system; and Short and medium range prediction system
o To setup the infrastructure and
manpower required to improve the Dynamic Weather Prediction Model
prediction skill at all time scales (long, A dynamic weather prediction model involves 3D
seasonal, extended, medium and mathematical simulation of the atmosphere on computer.
short range) over Indian region Dynamic models are especially useful for predicting rainfall
o To build a working partnership over smaller spatial and temporal scale, which is not possible
between the Academic / Research & in the statistical forecasting system. With dynamic models,
we will be able to provide monthly forecasts for every state.
Development Organizations and the
Operational Agency to improve the Dynamic models have several advantages.
monsoon forecast skill • The dynamic model, also known as the Coupled Forecast
System, is based on faster computing to improve short-
Why it is difficult to forecast monsoon in range forecasts. It provides the flexibility to upgrade
India? forecasts for specific regions and enables collation of
• Huge variability of monsoon: Many factors data on local as well as global weather patterns to
simulate a forecast for a specific duration.
seem to affect the duration and intensity
• They can be used along with agriculture and hydrological
of monsoon, which include:
models. They can be used for many more purposes than
o El Nino Southern Oscillation (ENSO): A rainfall prediction. One can get real-time information on
climatic phenomenon associated with wind, temperature and humidity in digitised format.
warming up of eastern Pacific Ocean.
Earlier system and its limitations
Other factors temper or boost the
impact of El Nino such as the Indian India earlier used statistical forecasting system. Statistical
models require lengthy calculations to track the southwest
Ocean Dipole (IOD) which is the
monsoon. The model uses historical relationships between
difference in the Sea Surface rainfall and six to eight predictors such as sea-surface
Temperature between the western temperatures and south-easterly winds over the Indian
Indian Ocean near Arabian Sea and the ocean.
Eastern part near the Bay of Bengal. A
• Failure in prediction: For instance, IMD couldn’t predict
warmer western pole leads to a the oncoming droughts in the years 2002, 2004 and
positive IOD that can act as a 2009. Also, from 1988 to 2010, the IMD has been able to
neutralizing factor to El Nino and result successfully predict the monsoon only nine times which
in normal rainfall. Other factors include translates to a success rate of a mere 40 percent.
- Equatorial Indian Ocean Oscillation • It gives forecasts for the country as a whole and five
(EQUINOO), Madden Julian Oscillation regions, though does not give separate ones for the
etc. Moreover, they share complex country's 29 states. Because of India's size, one national
relations between themselves thus forecast is of little help to farmers spread across diverse
climatic zones.
further complicating the scenario.
o Anthropogenic Emissions affect rain Benefits
patterns: Warmer atmosphere has • Weather forecast systems under the National Monsoon
direct correlation with greater Mission (NMM) will be extended up to the block level
variability in the monsoon. across the country by 2019. It would help the farmers,
o Air Pollution: complicates the rainfall policy makers, administrators and all concerned alike.
variability as aerosols such as black • It will be possible to predict droughts. Fallout of
carbon interact with sunlight resulting droughts like those of 2004 and 2009 could be
prevented if we’re able to warn farmers in advance.
in either scattering or absorbing
• Better forecasting could help India raise its farm output
sunlight. Scattering prevents the light
by nearly 15 percent, by helping farmers tweak the best
from warming the earth surface while time to sow, irrigate or apply fertilizer to crops and if
absorbing causes the particles to warm rains fail plan state-wide measures.
the air around them which ultimately • Also, better forecasts resulting in better farm outputs
alters the heating pattern of can stabilise the inflation level and thereby provide for
atmosphere and heating up of the land effectual transmission of monetary policies in the
relative to Ocean. economy.
o Forest Cover: in August and
September around a quarter of the precipitation in the large basin of eastern India comes from land
surface, mainly through the evapotranspiration in the forests. Large scale deforestation around the
world can lead to an 18% decrease in the Indian Monsoon.
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o Other factors: for instance dust over North Africa and the Arabian Peninsula absorbs sunlight,
warms the air and strengthens wind carrying moisture eastwards which later cause heavy rainfall in
India. Similarly, climate change further complicates the phenomena.
• Monsoon Depressions: these are the depressions formed over Bay of Bengal and are known for
producing heavy rainfall during monsoons. In recent years, these are reducing due to anomalous
moisture convergence over the western Indian ocean due to rapid sea surface warming.
• Need for better understanding the role of Jet streams: During monsoon, strong winds known as low
level monsoon jet stream appear around the southern part of India at an altitude of about 1.5 Km above
the ground. Similarly, around 14 Km altitude (very near to stratosphere) there is another jet stream from
the East. The speed, along with the North South movement of these two Jet streams controls the
distribution of rainfall over the Indian region.
5.3. GANGA DRYING UP IN SUMMERS

Why in News?
A recent study by IIT Kharagpur found that the Ganga
River water levels are declining in several lower reaches in
the last few summer seasons, as groundwater storage
around the river is depleting.
Findings of the study
• Unprecedented low water levels: The summer of 2015
and 2017 witnessed an unprecedented low water level
and flow in the middle and lower reaches of the
Ganga.
• Rate of water level change over the years: Water level
in River Ganga depleted at a rate of −0.5 to −38.1
cm/year between the summer of 1999 and 2013. The
constant reduction in water flow in downstream states
was possibly caused by groundwater depletion in the
adjoining aquifers.
• Significance of the adjoining Gangetic aquifers: The
present day base flow (part of total river flows which
represent groundwater seepage into a stream channel
from natural storage) to the Ganga from the adjoining
aquifers may be a third or more of the total river water
volume in pre-monsoon (summer) months. The base
flow might have dipped by 50 per cent from the
beginning of irrigation-pumping phase in 1970s.
• Average groundwater contribution to the river can
substantially decrease in future: In the forthcoming
summers, for the next 30 years, groundwater
contribution to river Ganga will continue decreasing.
• Climate change and the Himalayan glacial retreat:
would further contribute to degradation of riverine
ecosystem.
• Factors controlling the process of ground water
change: Surface water irrigation for cropping accounts
for 27 per cent of the total irrigation in the region.
Anthropogenic stress through expansion of cities by
the river, denudation of forests, encroachment of floodplains and excess groundwater extraction had
affected the river severely.
• Previous studies have shown that embankments constructed to protect the cities from floods elevate
the river resulting in more runoff during the rains and lesser percolation to recharge the aquifers.
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Effects of declining water levels of Ganga
• Would severely affect domestic water supply, irrigation water requirements, river transport and ecology
of the densely populated northern Indian plains because of low water level.
• Impact of river water depletion on food security in the region: Over 120 million residents in downstream
region got affected and larger population would experience substantial reduction in food production if
extraction of groundwater continues at the current unsustainable rate. By 2050, the total carbohydrate-
based food would be unavailable for almost 20% of the total inhabitants in the region studied.
• Possibility of surface water crisis: it poses a much bigger crisis along with ongoing ‘groundwater
drought’ in the Indian subcontinent.
• Affects economic activities: for instance, in 2016, a NTPC plant near Farakka barrage was shut down
after flow dipped.
• Contamination of ground water: According to the Report of Central Ground Water Board, more than
half of India’s groundwater is contaminated with a high level of fluoride, nitrate and arsenic among
others.
• Impact on living organism: May have severe impact on biodiversity including on the population of
endangered Gangetic Dolphins.
Causes of Groundwater Depletion
• Increase in Irrigated Area and Politics of subsidy: Politics of subsidies has led to volatile extraction of
ground water leading to its scarcity. Farmer tends to use water for irrigation without any restriction due
to availability of cheap, subsidized electricity, thanks to politics of populism.
• Indiscriminate water-tapping: Due to the uninterrupted exploitation of ground water by deep wells and
tube wells to meet the shortage of water, the level of ground water is continuously decreasing.
• Decreasing forests: Trees absorb up to 18 inches of precipitation before gradually releasing it to natural
channels and recharging ground water.
• Melting glaciers: According to scientists, glaciers of the Himalayan region have been melting at an
average rate of 131.4 sq km per year. When glaciers melt, they initially contribute more water to the
rivers they feed. After this there is a decline in water contributed to the seasonal melt cycle, as shrinking
glaciers provide a smaller contribution to the overall river flow.
• Global warming and Climate change accentuate water stress as it reduces useable groundwater
availability for agriculture globally.
• Wrong Agricultural practices: In rural India, water scarcity is also the result of untested agricultural
practices, such as cultivating more water-consuming crops – paddy, cotton and sugarcane – in areas
riddled with water scarcity.
Prevention and Way Forward
• Limiting of water-extraction and Protecting and enriching water resources: Illegal exploitation of
ground water should be banned.
• Diverting River Streams and Building reservoirs: There is a need to deepen old reservoirs along with
building new reservoirs, besides increasing the depth of boring of new tubewells.
• Plantation drives: extensive afforestation can help restore water tables.
• Increasing awareness: among the people regarding sustainable utilization of water resources.
• Implementing adaptation options related to either food production or water use in agriculture: water-
efficient agricultural practices (modification of existing food irrigation techniques), conversion to water-
saving crops, agro-climatic farming practices, reduced groundwater pumping, aquifer rejuvenation and
managed recharge must be implemented.
• Results of this study could be used to understand groundwater-linked river water depletion as well as
the regional water security in other densely populated regions of the world.
5.4. RE-WATER RESEARCH CENTER

Why in News?
IIT Kharagpur will setup a Re-Water Research Center to replenish and rejuvenate water resources.
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What is Re- Water?
Water recycling is reusing treated wastewater for
beneficial purposes such as agricultural and
landscape irrigation, industrial processes, domestic
potable and non-potable reuse, and replenishing
ground water. There's no standard 'off the shelf'
process for recycling water — each method is
specific to local requirements and environments,
with different technologies and very diverse
natural water catchment characteristics.
Potential of wastewater recycling in India
• Presently only 30% of our waste water is
recycled: It is mainly due to poor design of
sewage systems that mostly waste water is
dumped directly into rivers and lakes.
• India is the biggest consumer of freshwater in
the world: According to World Bank, India
consumes 750 Billion Cubic meters of fresh
water annually making it highest in the world.
• Huge amount of waste water generation in
India: Urban India alone generates about
38000 MLD of waste water and with current
rate of urban population growth by 2030 the
wastewater generation would reach 60000
MLD.
Significance of Recycled Water
• Can provide solution to water crisis: The NITI
Aayog’s Composite Water Management Index report, released in June, sheds light on the issue of water
crisis in India. The re-cycled water can be used as an additional and valuable source of water for
domestic, industrial and agricultural purposes.
• Reduce inter-state water disputes: especially during water shortages/ drought periods and associated
consequences such as crop loss, social unrest, etc.
• Recovering nutrients and energy from waste water: Waste water contains valuable nutrients (NPK) and
recovering phosphorous and potassium is important because India imports most of these to meet the
domestic demands. The treated waste water used in irrigation can aid crop growth and could reduce the
need for synthetic fertilizers by upto 40%.
• Prevent groundwater depletion and reduced energy requirement in pumping out groundwater. This
would help increase overall farm income.
• Reduce Green House Gas (GHG) emission: as the conventional sewage plant release huge amounts of
methane.
• Cost saving for the government: Decentralized water supply and sewage treatment systems would
make cities self-reliant in water requirements, save costs involved in laying sewage lines, lower the
budgets required to clean up rivers. Also, sale of recycled wastewater to industries can be a source of
revenue for Urban Local Bodies (ULBs).
• Environmental benefit: recycled water may be used to create or enhance wetlands and riparian habitats
and reduce pollution levels. Along with this, it will also have considerable social and health benefits.
Issues related to recycled water
• Availability of treatment technologies: Existing infrastructure and technologies are insufficient for a
large-scale water recycling in India.
• Highly Expensive: In some cases, high level of treatment and risk management may be too costly to
manage and thus, reuse scheme may not be economically viable. It may also require more maintenance
than a regular sewer or septic system.
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• Key potential health risks: Microbial pathogens in wastewater from sewage effluent are the major
concern for human health when recycling water. The major groups of pathogens can still be present in
partially treated water, which include Bacteria for e.g. E. coli; Viruses like Enteroviruses, Rotavirus,
Hepatitis A virus; Protozoa; and Helminths (Tapeworm) that can cause severe health risks if recycled
water unmanaged properly.
• Potential environmental risks: Some of the common environmental risks associated with recycled water
may come from:
o Salinity: can result in reduced plant growth and plant damage and can impact freshwater plants and
invertebrates in natural ecosystems if discharged directly with little dilution. Also, can have adverse
effects on industrial equipments.
o Sodicity: Excess sodium in recycled water can cause soil dispersion/swelling, reducing water
infiltration on heavier textured soils.
o Boron and Sodium: can be toxic to some plants if it accumulates in soils from ongoing irrigation.
o Chloride: can be toxic to plants if sprayed directly on leaves, and if it accumulates in soils from
ongoing irrigation, but is usually more important as a component of salinity.
o Phosphorus and Nitrogen: Mostly beneficial to cultivated plants, but can cause eutrophication in
land and aquatic ecosystems.
o Chlorine residuals: By-products of disinfection processes, these may be harmful to aquatic or marine
ecosystems if discharged directly with little dilution.
o Hydraulic loading: Too much water
applied to land can result in excess Guidelines focusing on recycled water
groundwater recharge, water logging and • There are WHO guidelines for
o the safe use of wastewater, excreta and
secondary salinity.
greywater: The Guidelines reflect a strong focus
o Surfactants: Some organic and inorganic on disease prevention and public health
surface-active agents from detergents can principles.
remain in recycled water and can be o drinking water quality.
harmful to some aquatic organisms. o safe recreational water environments.
o Endocrine Disrupting Chemicals (EDCs) • FAO Guidelines on water quality for agriculture has
these are a broad range of chemicals that specific section on irrigation water quality and
have the potential to alter normal wastewater reuse
endocrine function in animals • United Nations Guidelines for Drinking Water Quality
o Pharmaceutical chemicals and their • US EPA reuse guidelines for 1992 and 2004.
metabolites: potentially found in recycled • US Safe drinking water act.
water, they have adverse impacts on • European Commission references on Urban
Wastewater and treated wastewater reuse.
human health.
• Suitability of climate for recycling: The climate may also be unsuitable for recycling. For instance, in
colder reaches and winter climate, recycling might not be feasible.
• Social and behavioural aspects: Using recycled water, especially as drinking water, requires overcoming
negative public perception about treated sewage water, which can be difficult.
• No guidelines for recycling water: at national level no guidelines or regulations are framed for recycling
of waste water.
Way Forward
• Need of adequate support from the Government and private sector: The Centre for Science and
Environment estimates that Rs. 1 crore per
Examples of water recycling adopted in India and abroad:
million litres is the cost incurred to build a
wastewater plant. Without adequate Namibia: The Goreangab waste treatment plant of
Windhoek in Namibia is recycling wastewater for almost 50
support from the government and private
years using biological mechanisms like bacterial treatment.
sector, urban and rural India will not be able
Its capacity during peak hours is more than 41,000 cubic
to afford the building of such plants. meters a day.
• The unavailability of land also acts as a
India: A Pilot project in Delhi – ‘Sujala Dhara’ - in
common hindrance in the building of collaboration with Delhi Jal Board (DJB) was set up at
wastewater plants in India, especially in Keshopur Sewage treatment plant in July 2015 by a NGO –
urban areas. Other challenges like Social Awareness, Newer Alternatives (SANA), the plant
continuous power supply, skilled labour can produce 4000 litres of clean water every hour using
force, adhering to environmental guidelines bio-filtration nano membrane filtration technology.
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are consistent features in setting up of wastewater treatment plants.
• Need for coordination among national, state and city level administration: city governments and water
utilities face operational constraints owing to the overlapping remits of institutions mandated to
manage water in its different uses. This needs to be addressed through coordinated efforts at national,
state and city levels of administration.
• Support inter-ministerial coordination for guidance on a regulatory framework for water resource
management. Water resources need to be managed at the basin level and across urban and rural
domains for more efficient and equitable use. Current models of allocation followed within river basins
and states focus on freshwater allocation.
• There also needs to be proper guideline framework for water recycling in the country. The guidelines
should, along with other priorities, take into consideration the need for safety both in terms of health
and environmental. There also needs to be the flexibility to update and strengthen water management
requirements as more is learnt.
• The risks associated with recycled water must be minimized to acceptable levels before recycled water
can be used in any specific situation. The environmental and health risks can be managed through the
level of wastewater treatment or by the carefully managed use of recycled water.
• Continuous monitoring of recycled water quality: can further mitigate adverse impacts associated with
it and better manage the risks.
• Incentives for wastewater recycling and reuse to cities: This could include additional funds for states or
cities achieving predefined targets on recycling of treated wastewater.
• People in the community need to be made more aware about the science and technology behind the
process so that there can be better community acceptance of re-cycled water.
5.5. REGULATING HIGH SEAS

Why in News?
Recently, the United Nations began talks on a 2020
treaty on global protections for critical marine
biodiversity on the high seas.
About High Seas
• The high seas are defined as the oceans that lie
beyond exclusive economic zones (EEZ, usually
within 370km or 200 nautical miles) of a
country's coastline.
• It covers 45% of the Earth’s surface and nearly
two third of the global ocean that lies outside
any country’s jurisdiction. These waters cover
1.5 times the total land area of the planet and
are home to some of the rarest and most
charismatic species.
• All countries have the right to navigate, over
flight, carry out scientific research and fish on
the high seas without restrictions.
Background
• In 1982, the negotiations for UN Convention of
the Law of the Sea (UNCLOS), which regulated
sea-bed mining and cable-laying to some extent,
had left out high seas as it was considered
protected because of its inaccessibility. Since then, shipping routes have expanded considerably, and
technological advancements have made possible seabed mining and deep-water fishing in high seas also.
• There are also some other international groupings including the International Whaling Commission
(IWC) and International Seabed Authority (ISA) that look after specific aspects of the seas, but there is
no overarching treaty that would protect biodiversity or limit the exploitation at high seas.
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• Thus, though a variety of mechanisms exist to oversee such activities, huge gaps remain in conservation
and management of the high seas, demanding for a holistic and binding global treaty.
Threats faced by the high seas
• Major source of mineral resource that is set to be exploited in years to come: The high seas may be a
major source of mineral resources in years to come. In 2017, a team of British scientists exploring an
underwater mountain in the Atlantic Ocean discovered high concentrations of a rare and valuable
substance used to build solar panels. Unsustainable exploitation, along with deep sea drilling for oil and
gas, might create future challenges for high seas.
• Deep sea hydrothermal vents are home to a range of extremely rare and exotic species: Private
companies are targeting these species majorly for manufacturing of new pharmaceuticals. Nearly 84% of
patents related to marine species are filed by just 30 institutions of mainly developed countries over the
past 30 years. Thus, resulting in an inequitable distribution of resources among nations.
• Exploitation of Fisheries: There is a huge scale of fishing taking place mainly by the ten rich countries
including USA, Japan, Korea and Spain that corner around 70% of the total fish catch in the high seas.
• Near absence of rule of law and poor monitoring and enforcement mechanism: Authorities have limited
powers to intercept vessels suspected of illegal activities which hamper international cooperation to
counter illegal fishing, smuggling of weapons and drugs, human trafficking, piracy and the use of vessels
in terrorist operations.
• Rise in environmental degradation: Weak governance system is also responsible for unchecked
environmental degradation from plastic pollution, emerging high seas industries such as energy
production, oil spills, etc.
• Impacts of marine debris: On one hand, it results in biodiversity loss as it causes the death by drowning,
suffocation and starvation of around 10 lakh seabirds and around 1 Lakh marine mammals (Seals, Whales
and Dolphins) every year, on the other hand, it causes hazard to shipping.
• Impact of Global warming and Climate Change: Rising sea temperature reduces the ocean’s capacity to
carry oxygen and increasing levels of carbon dioxide cause ocean acidification and unprecedented
changes in chemical and physical conditions affecting marine organisms and ecosystems.
Potential impacts of the new treaty
It is likely to regulate issues at the high seas through following broad components:
• Setting up of Marine Protected Areas in international waters: Many countries have already established
this in their own jurisdictions. A strong global ocean treaty would create a network of ocean sanctuaries
to protect wildlife, ensure food security for billions of people and help in tackling climate change.
• Carrying out Environmental Impact Assessments: to guard against potential harm from activities on the
high seas.
• Equitable distribution of marine resources: Allowing poorer countries to benefit from any discoveries
developed from marine genetic resources.
Challenges
• Some Governments are reluctant to support the treaty: The US rejected the UNCLOS treaty in 1994 and
is reticent about the present proposals as it is opposed to all regulations of marine genetic resources.
Similarly, some whale-hunting countries such as Japan, Iceland and Norway are cautious about the idea
because they fear it will restrict their fishing operations.
• Avoiding overlapping from existing organizations: to protect the high seas without undermining
existing organizations such as the International Whaling Commission or International Seabed Authority.
Way Forward
• Subsidies provided by developed nations to their trawlers which promote unsustainable practices at high
seas by them must be immediately capped and eliminated within five years. Countries should be fully
transparent about all of their fishing subsidies.
• This is a historic opportunity to protect the biodiversity and functions of the high seas through legally
binding commitments. Political will and joint efforts by governments, businesses and civil society is
crucial for the treaty to succeed.
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5.6. GREEN BONDS
Why in news?
Green bonds of huge amounts from India are stuck because of rising interest rates and global uncertainties.
What is Green Bond?
• Green bonds are debt instruments like
normal bonds, but the proceeds are used for
renewable energy projects, or for services
that are ecologically sustainable.
• The bond is voluntary and may be issued by a
financial institution, the government or even
a company to raise funds for a defined
period.
• Asia as a whole issued $65 billion in green
bonds over 2015-17 and China is the dominant issuer of green bonds internationally.
Why Green bonds?
• They can attract environmentally-conscious investors who may not otherwise invest.
• Accessible and powerful instrument for financing a sustainable, low-carbon economy.
• They are generally found to be an economical and convenient financing model by project developers.
• They help project the company as an environmentally-conscious organization, thereby enhancing the
brand.
The Indian Green Bond Market
• BSE launched the Green Index called Greenex, carbon-efficient live index.
• India entered the green bond market in 2015 with the YES Bank issuing the first green bond for financing
the renewable and clean energy projects particularly, for wind and solar.
• Gradually, the green bond market has expanded to several public sector undertakings, state -owned
commercial banks, state-owned financial institutions, corporates, and the banking sector.
• Green bond issuance is expected to zoom from India as the government is awarding big projects in the
renewable energy space to private companies, especially in the solar power sector.
• However, the Indian green bond market hasn’t been able to diversify itself much in the nature of assets
for funding, which are still focused on the ‘pure play’ renewable energy projects.
SEBI guidelines on Green Bond
In January 2016, the SEBI published its official green bonds requirements for Indian issuers making India the
second country (after China) to provide national level guidelines. As per the guidelines, a debt security shall
be considered as ‘Green’ or ‘Green Debt Securities’, if the funds raised through issuance of the debt
securities are to be utilized for project(s) and /or asset(s) falling under any of the following broad categories:
• Renewable and sustainable energy including wind, solar, bioenergy, other sources of energy which use
clean technology, etc.
• Clean transportation including mass/public transportation, etc.
• Sustainable water management including clean and/or drinking water, water recycling, etc. There are
different types of definitions and indexes that can be leveraged:
o Climate change adaptation
o Energy efficiency including efficient and green buildings, etc.
o Sustainable waste management including recycling, waste-to-energy, efficient disposal of wastage,
etc.
o Sustainable land use including sustainable forestry and agriculture, afforestation, etc.
o Biodiversity conservation
Challenges
• Underdeveloped bond market: In particular Corporate Bond Market remains underdeveloped despite
recent steps taken by RBI and Govt to develop corporate bond market.
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• Defining an investment as “green”: It is likely that a prescriptive standard set of definitions of “green”
will not meet every investor’s needs.
• Lack of concentrated measures to support this nascent instrument: Due to the newness and lack of
understanding of all its implications, the average domestic investor is wary of investing in these, and
perceives them as high–risk investments.
• Additional cost required to issue a Green bond, while providing returns similar to a normal bond. These
costs may include additional expenditure for defining the green criteria, monitoring and maintaining the
proceeds as green, and transparently communicating performance to investors over the lifetime of the
bonds.
Way forward
• Need for government support to drive the segment to its full potential by
o Strengthening the disclosure and transparency aspects with a level of standardization
o Providing concessions, including tax-exemptions; issuing a sovereign green bond could also be done.
• There is scope for involving national development banks, SIDBI and NABARD, to design projects with
elements of aggregation and credit enhancement, to direct funding to the untapped sectors.
• There is a large scope for green bonds to be issued across a wide-range of sectors such as the
unconventional investment sectors like forestry and marine conservation, innovative transport.
• Develop business models to provide pricing benefits to green bond issuers by combining funding
support from the Green Climate Fund (GCF).
• RBI may consider expanding its priority sector lending guidelines to include some of the sectors that are
currently part of SEBI guidelines to make them lucrative to the bond issuers.
5.7. PRIVATE PARTICIPATION IN WILDLIFE CONSERVATION

Why in news?
Karnataka recently drafted Private Conservancy Rules in a bid to increase forest area through private land.
More about the news
• Under the rules, anyone who has a minimum of 100 acres of land bordering a national park can convert it
to a “Wildlife Private Conservancy”.
• Of this land, 5% can be used to construct buildings for ecotourism; the rest has to be kept for flora and
fauna.
Need for private participation in wildlife conservation
• Funds: The conservation activities need huge investments, such as in law enforcement, conflict
mitigation, habitat consolidation, village relocation and research and monitoring. Current spending on
conservation and management of protected areas is far less than what is needed, particularly in the
developing world. The private sector may help fill this funding gap.
• Expertise and efficient management: Private sector can provide expertise often missing from
government agencies. And, also, the bureaucratic management of government can be less flexible than
non-governmental employees, this makes them a poor match for the operational side of parks
management, and an expensive.
• Buffer for wildlife protection: The privately maintained forest areas around the protected area can act
as buffer for wildlife protection and they may also act as extended corridors to connect two protected
areas which is very important for conservation of large animals like tiger, elephants etc.
• Generate income and employment: The various activities associated with wildlife management and the
opportunities of ecotourism would generate income and employment, this would be especially
beneficial for forest dwelling communities and arrest their distressed migration.
• Reduce pressure on traditional forest: Development of stock for commercial lumbering will reduce
pressure on the traditional forests. Commercial development of forest can also reduce clearing of forest
for agricultural expansion.
• Other benefits: It will increase the percentage of forest area (from current 21% towards ideal 33% );
Conservation of water bodies and soil in and around wildlife protected areas which is vital to protect the
same; increase carbon sequestration capacities among others.
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Concerns
• Fragmentation of wildlife habitat: The development of supporting infrastructure for tourism like roads ,
hotels , sport in the garb of developing ecotourism would lead to fragmentation of natural habitat and
restrict movement of wildlife.
• Narrow view of conservation: Conservation is a complex exercise which must involve the interest of
multiple stakeholders associated with it. The main purpose of private sector is profit, thus their
participation may result into a top down mechanical way of conservation while ignoring the ground
realities.
• Poaching and illegal trade: The privately managed buffer areas may act as conduit of poaching and
illegal trade in wildlife and other wildlife crimes such as hunting specially because of lack of clear
regulations.
• Exclusion of forest dwelling communities: The commercial development of forests may further alienate
the traditional communities living around them as they would not be able to assert their claim due to
politico- bureaucratic and private sector nexus.
• Development of monoculture: The development of forest with commercial motive may lead to
development of monoculture which will be devoid of ecosystem services.
• Ethical issues: There are ethical issues involved in using wildlife for commercial purposes which is
equivalent to objectification of a living entity.
Way forward
• Conservation should be a partnership between commerce (tourism), communities (land owners and skill
suppliers), and the government (often, a benign overseer). Without a fine balance between these three,
any one stakeholder can take a wrong direction which will harm conservation.
• Countries allowing private partnership need to have very clear governance, very clear legislation
regarding these partnerships. In nations where the government’s authority is weak. For example, in
Colombia’s Tayrona National Natural Park the company operating tourist concessions has been accused
of land grabbing and controversial development within the national park.
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6. SCIENCE AND TECHNOLOGY
6.1. DRONE REGULATIONS IN INDIA
Why in News?
Ministry of Civil Aviation (DGCA) has for the first time released a set of rules regulating the civil use of drones
in India which will be effective from 1st December, 2018.
What are drones? Concerns regarding use of drones
• Drones or unmanned aerial vehicles (UAVs) • Potential threat: Its use poses a security threat, and has
the potential for invading privacy. Owning to the
have been defined as: “Powered, aerial
privacy and security concerns Directorate General of
vehicles that do not carry a human Civil Aviation (DGCA) had earlier banned the launch of
operator, use aerodynamic forces to any UAVs in India.
provide vehicle lift, can fly autonomously or • The airspace over Indian cities already has a high density
be piloted remotely, can be expendable or of aircraft traffic and unregulated use of drones poses a
recoverable, and can carry a lethal or grave threat for air collisions and accidents.
nonlethal payload.” • Drone traffic management: will require planned
• Applications of UAVs research and practical experimentation. Small drones fly
o Damage assessment of property and at low altitudes and are more susceptible to changing
life in areas affected with natural weather conditions. Strong winds and rains can easily
knock them off course, out of their designated
calamities, surveys, critical
operating zones.
infrastructure monitoring. • Drones as weapons: They are considered a cost-
o Security function: Drones are used by effective weapon system with no risk to operators.
Armed Forces for tactical purposes at Thus, they are being portrayed as weapons of future
border. warfare.
o Surveillance and Crowd Management: • There is possibility of drones being misused by terrorists,
It is used for effective and smooth criminals, drug cartels and other antisocial groups.
conduct of events like Kumbh Mela etc.
o Monitoring of wildlife: UAV are deployed these days for better counting and guarding unreachable
region.
o Agriculture: SENSAGRI (SENsor based Smart AGRIculture) is a drone based crop and soil health
monitoring system using hyperspectral remote sensing (HRS) sensors.
o Mode of Delivery: Many e-commerce companies are using it for delivering their product like
Amazon.
o Other uses: For surveys, infrastructure monitoring, commercial photography, aerial mapping etc.
Current Scenario
• According to a research the Indian drone market will reach USD 885.7 million by 2021, and the global
market size will touch USD 21.47 billion.
• The International Civil Aviation Organization (ICAO) has been the primary platform leading the global
drone governance efforts. The ICAO has issued several rules in the form of circulars and manuals but has
not come up with comprehensive guidelines.
• India has had military drones – or Unmanned Aerial Vehicles (UAV) – for many years and is also
developing combat versions. But the use of drones for civilian purposes remain underdeveloped,
because regulations regarding the technology were not yet fully established.
• The absence of well-defined regulations had made innovation and attracting investments very difficult
in this field, and the new rules are expected to ease manufacture and use of drones in the country.
Key features of the Regulations for Civil Use of Remotely Piloted Aircraft System (RPAS)
• The Digital Sky Platform is the first-of-its-kind national unmanned traffic management (UTM) platform
that implements “no permission, no takeoff” (NPNT).
o The UTM operates as a traffic regulator in the drone airspace and coordinates closely with the
defence and civilian air traffic controllers (ATCs) to ensure that drones remain on the approved flight
paths.
o Before every single flight, drone pilots are required to request permission to fly via a mobile app,
which will automatically process the request and grant or reject it.
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o If a drone pilot tries to fly without receiving permission from the Digital Sky Platform, he or she will
simply not be able to take-off.
• Users will be required to do a one-time registration of their drones, pilots and owners. All civil RPA, shall
require to obtain Unique Identification Number (UIN) from DGCA.
• As per the regulation, there are 5 categories of Remotely Piloted Aircraft System (RPAS) categorized by
weight, namely
o Nano (Less than or equal to 250 grams),
o Micro (250 grams to 2kg),
o Small (2kg-25kg),
o Medium (25kg-150kg) and
o Large (Greater than 150kg).
• Operators of civil drones will need to get a Unmanned Aircraft Operator Permit (UAOP) from the DGCA
with certain exceptions such as RPA owned and operated by NTRO, ARC and Central Intelligence
Agencies.
• The DGCA has to issue the UAOP within seven working days and it shall be valid for five years and not
transferrable.
• RPAS shall be flown only by someone over 18 years of age, having passed 10th exam in English, and
undergone ground/ practical training as approved by DGCA.
• DGCA has also clarified that no remote pilot can operate more than one RPA at any time.
• The basic operating procedure will restrict drone flights to the daytime only and that too within “Visual
Line of Sight (VLOS)”.
• Manned aircraft will be given priority. There can’t be any human or animal payloads, or anything
hazardous. It cannot in any manner cause danger to people or property.
• An insurance will be mandatory to cover third-party damage.
• Minimum manufacturing standards have been prescribed for RPAS.
• Restrictions placed:
o RPAS cannot be flown within 5km of the perimeters of the airports in Mumbai, Delhi, Chennai,
Kolkata, Bengaluru and Hyderabad and within 3km from the perimeter of any other airport.
o It cannot fly within “permanent or temporary Prohibited, Restricted and Danger Areas” and within
25km from international border which includes the Line of Control (LoC), Line of Actual Control (LAC)
and Actual Ground Position Line (AGPL).
o It cannot fly beyond 500 m into sea from the coast line and within 3 km from perimeter of military
installations.
o It also cannot fly within a 5 km radius of the Vijay Chowk in Delhi, within 2 km from perime ter of
strategic locations/ vital installations notified by Ministry of Home Affairs and within 3 km from radius
of State Secretariat Complexes.
o It also cannot be operated from a mobile platform such as a moving vehicle, ship or aircraft.
o Eco-sensitive zones around National Parks and Wildlife Sanctuaries are off-limits without prior
permission.
Conclusion
• The Drone Policy is a big step taken by GOI towards regulating drones in India. It shows GOI's
commitment to use of artificial intelligence for technological and economic growth.
• However, the involvement of multiple regulatory agencies and compliances/clearances will discourage
the players.
• Further, drones cannot be used as of now for delivery of food/ other items, or to carry passengers.
• There are restrictions on drone operations in India by foreign players (except through a license to an
Indian entity).
• Government has setup the Drone Task Force under the chairmanship Jayant Sinha which will provide
draft recommendations for Drone Regulations 2.0.
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6.2. NET NEUTRALITY
Why in News?
The Telecom Commission, the highest decision-making body in the Department of Telecom has recently
approved the principles of net neutrality recommended by TRAI last year.
What is Net Neutrality?
• The basic principles of net
neutrality is that nobody owns the
internet and it is free and open to
all and that Internet Service
Providers (ISPs) must treat all
internet traffic equally without any
regard to the type, origin or
destination of the content or the
means of its transmission.
• According to TRAI net neutrality
principles, any form of
discrimination or interference in
the treatment of content,
including practices like blocking,
degrading, slowing down or
granting preferential speeds or
treatment to any content is
prohibited.
Significance
• Big victory for open internet
movement: specially coming at a
time when USA recently repealed
net neutrality rules.
• Implications for future of internet
in India: India is expected to have
more than 500 million internet
users; hence the acceptance of
net neutrality rules will have far
reaching implications for the
future of internet in India.
• A Progressive move: The government’s decision is being seen as progressive as mobile operators, ISPs
and social media companies cannot engage in, or seek, preferential treatment of content thus it will not
allow any operator or ISP to create a monopoly on the internet.
• Important for Innovation and Ease of doing business: Net neutrality is crucial for innovation,
competition and the end consumers that provide a level playing field to content providers and startups.
• Exceptions to critical, new and emerging services: such as autonomous driving, tele-medicine, disaster
management, etc. which may require prioritized internet lanes and faster than normal speeds. A
committee will look into the possible exceptions for critical services.
• Provides enforcement and monitoring mechanism: Government has decided to form a multi-
stakeholder body for monitoring and enforcement of Net neutrality.
Way forward
• Internet must remain an open platform unhindered by any entity so that users and customers have a
choice to access content of their liking.
• India must align with other like-minded countries to promote an open internet, for instance India
recently signed an MoU with European Union to promote net neutrality.
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6.3. DIGITAL GENDER GAP
Why in news?
According to a study released by LIRNEAsia, an information and communications technology (ICT) policy
think tank, India has the highest gender gap in mobile phone and 3rd highest in access to the Internet.
More findings of the research
• According to the study, only 43 per cent of women in India own mobile phones compared to almost 80
per cent of Indian males. This difference of almost half surpasses all other countries in the survey,
including Pakistan, Bangladesh and Rwanda.
• The study also found that India’s 57 per cent gender gap in Internet usage was surpassed only by
Bangladesh and Rwanda.
• These gender gaps are more accentuated in rural regions.
Benefits of filling digital gender gap
• Improves workforce participation (currently 31%) and generates entrepreneurship avenues by providing
access to market (like mahila e-haat), online skill development initiatives.
• Financial inclusion by easing access to bank loans, insurance, deposits and various other government
social security programmes by utilizing technology. Integrating benefits targeted to the poorest women
with mobile phones could be a promising way to plug leakages and will make welfare programmes more
effective.
• Increased agency of women in household More Data
decision-making and other areas and help • The world today has 3.58 billion internet users. Roughly 2
dismantle social norms. National Family billion (56%) are men and 1.57 billion (44%) are women. Of
Health Survey 2004-05 found that that shortfall of 430 million users, 42% comes from India.
households where women had mobile • India accounts for nearly half the digital gender gap
worldwide, even though we account for 12% of the
phones reported lower tolerance for
internet total population etc. India’s digital gender divide
domestic violence and higher women’s is worse than countries like Saudi Arabia and Iran.
autonomy in mobility and economic • India have 500 million Internet users, which means more
independence. than a third of its 1.3 billion strong population online, and
• Education: Digital literacy and connection it holds the second spot behind China in a ranking of
offer advantages in knowledge-based countries most populating the Internet. But it is still far
society, improving future earning from addressing the digital gender gap.
potential. Digital learning platforms like • According to the latest Unesco survey also, more than
swayam portal provides opportunity for 70% of internet users are men in India.
learning from home.
• Health: improved accessibility to various government interventions with respect to health services,
awareness generation for nutritional intakes, and telemedicine services.
• Improve political awareness regarding various political processes that would improve their
understanding and help in their more political mainstreaming. Through digital medium training could be
given to the women representatives in panchayats and ensure their real representation rather than
acting as proxy.
• The access to citizen participation tools like RTI, Citizen charter can also be improved for women through
digital mediums.
Challenges
• Infrastructural issues: The basic infrastructures like Internet with adequate speed, devices (smart phones
and computers), electricity etc. which are needed to access digital services are not available, especially in
rural areas.
• There are various social blockades like-
o Patriarcy: Many Indian rural homes are governed by patriarchal beliefs which restrict the movement
of women in public spaces. As most ICT facilities are available at community internet centres, they
are unable to access them. Many also fear that allowing girls to use internet will lead to liaisons with
men, bringing shame on family.
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✓ In some households, technology is not seen as necessary or beneficial for girls and women.
Traits are like obedience and deference are often valued over curiosity and intelligence in a
society which is still patriarchal,
o Educational level: A large section of women despite having cell phones can't use them due to a lack
of literacy. These women are dependent upon their literate kin to dial a number or even read
messages.
o Behavioural inertia for adopting new technologies which is further compounded by lack of technical
literacy non-availability of content in local languages and lack of confidence.
o Security concerns: with increasing cases of online trolling, women are more vulnerable for cyber
bullying. There is also perception of lack of data security which threatens privacy and may also lead
to economic losses.
Way forward
• Bridge infrastructural needs: provide Internet facility with proper speed especially in rural areas
(BharatNet is a good initiative in this regard).
o Free or subsidized smart phones should be given to women (Chhattisgarh government has provided
free smart phones to rural women).
o Setup common service centres in all the villages and make it mandatory to have 50% women staff.
• Literacy: more focus on women literacy specially in remote rural areas. Emphasis should be given to
basic English language proficiency and technical literacy. (Pradhan Mantri digital shaksharta abhiyan and
Digital India Mission should be integrated with Sarva Siksha Abhiyan with special attention on women.)
o A digital literacy program Internet Saathi (run by Google in association with Tata Trusts) to teach
rural women how to access and use the internet is a good initiative it should be scaled up.
• Attitudinal change of society: for creating an enabling atmosphere for women to access equal
opportunities in all areas which is very necessary for holistic development of society. (Beti bachao Beti
padhao and he for she campaigns are welcome steps).
• Security concerns: Strengthening legal framework for data security and tackling cases for cyber
bullying: special provisions should be there for women.
6.4. DEEP SEA EXPLORATION

Why in news?
Recently, various global studies highlighted the Government Initiatives
multifaceted potentials of deep sea exploration • Government has launched Polymetallic Nodules
programme for exploration and development of
particularly for emerging economies.
technologies for harnessing of nodules from Central
About Deep Sea exploration Indian ocean basin.
• The deep sea, usually defined as that area of the • Deep Ocean Mission- has been launched by the
ocean below a depth of 200 m, covers about 65 Ministry of Earth Science.
o The mission focusses on technologies for deep-
percent of the planet’s surface. Its seafloor
sea mining, underwater robotics, submersible
exhibits an extensive array of geological
vehicle and ocean climate change.
features, from immense abyssal plains to o Additionally, it will build offshore desalination
towering mountain chains and deep trenches. plant, to eliminate the potable water problem
• Studies have highlighted that, only 5% of the for the coastal city.
total area of ocean has been explored, which is • Oceanographic Ship, ‘SagarKanya’, has been
abundant in polymetallic nodules, deep sea operating for several years now in the explorations.
fishing and other non-living resources. The • National Institute of Ocean Technology:
International Seabed Authority (ISA) is the o It was established in 1993 as an autonomous
international body through which all States society under the Ministry of Earth Sciences.
o It provides technical assistance for harvesting
Party to the United Nations Convention on the
of non-living and living resources in the Indian
Law of the Sea (UNCLOS) organise and control
Exclusive Economic Zone (EEZ).
seabed-mining related activities in the Area. • International Indian Ocean Expedition-2: It is a
• India's Exclusive Economic Zone (EEZ) spreads major global scientific program which engages
over 2.2 million square kilometres, which also international scientific community in collaborative
includes the deep sea, and hasn't been oceanographic and atmospheric research from
explored or utilised till now. coastal environments to the deep sea over the
period 2015-2020.
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• India is the first country to have received the status of a pioneer investor in 1987 and was allocated an
exclusive area in Central Indian Ocean Basin by United Nations (UN) for exploration and utilization of
nodules.
Significance of deep seas for India
• Energy Security: The Central Indian Ocean has potential to extract 380 million metric tonnes of
polymetallic nodules. Even 10% of recovery of such large reserve, can meet energy requirement of India
for the next 100 years.
• Food Security: In a similar context, deep sea fishing would provide a new and diverse source of fishing
opportunity, thus helping in sustenance of community livelihood and food security.
• Research: It would help in predicting earthquakes, tsunamis, climate change pattern, study of formation
of earth and ecological functions between living organism.
• Competitiveness: Over the past decade, China has established a healthy lead over all its competitors and
has the most sophisticated program in extracting valuable minerals from the sea-bed. The Deep Ocean
Mission will improve India’s position in ocean research field.
• Diplomacy: Advancement in deep sea exploration will open new dimensions of diplomacy for India, with
technologically advanced countries e.g. Japan, Germany and South Korea.
• Promotes economic activities: Aside from return on investment to the mining companies, spur in deep-
sea mining also increases opportunities for other partners in the value chain, such as equipment
manufacturers and metal processing plants. This increase in economic activity may also result in more
employment opportunities.
• Promotes research: The exploration of potential mining sites has already led to the discovery of new
species, while providing considerable new insight on previously unknown biological processes in the
deep ocean. It will also spur research in studies not directly related to deep-sea mining.
Challenges in exploring deep seas
• Technological: Development of deep subsea technology for mining these resources is a major challenge
considering the ultra-high-pressure environment, very soft soils and other factors.
• Operational hurdles such as Insufficient, unreliable, or prohibitively expensive power supplies, and
highly corrosive nature of sea water, make the exploration operations more difficult.
• Fund and Resources: Deep sea exploration involve huge cost in terms of exploration vehicles, computer
modelling, robotics, armour suits etc. In the context of deep sea fishing, local community may also be
reluctant to adopt this new method due to initial investment lock-up period and subsequently high
operational cost.
• Loss of biodiversity: Deep sea mining may cause a drastic disturbance and imbalance in the aquatic
ecosystem such as degrading water quality which may result in loss of biodiversity.
Way Forward
• The policy action plan of deep sea exploration should be made in consonance with World Bank concept
of Blue Economy which stresses on sustainable exploration of living and non-living marine resources.
• Impact Assessment: Deep sea exportation would have significant impact not only on the oceanic
geomorphology but also on the coastal community. Therefore, traditional practices of impact
assessment related to polymetallic nodules must cover comprehensive oceanic economy.
• Underwater Heritage: Exploration activity should recognise the importance of under water sites as
documented by the UNESCO Convention on Protection of Underwater Cultural Heritage.
6.5. GAGANYAAN MISSION

Why in News?
Recently the Prime Minister in his Independence Day speech announced that ISRO will be sending its first
human spaceflight mission into the space by 2022.
Background
• In 2004, the manned space mission was first endorsed by the ISRO Policy Planning Committee with the
target initially set was in 2015, preparations have been going on since then.
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• ISRO has successfully demonstrated some of the technologies required for the mission such as Space
Capsule Recovery Experiment (SRE-2007), Crew module Atmospheric Reentry Experiment (CARE-2014),
GSLV Mk-III (2014), Reusable Launch Vehicle- Technology Demonstrator (RLV-TD), Crew Escape System
(July 2018) and Pad Abort Test (2018). ISRO also recently unveiled a space capsule (crew module) and
Space suit prototype.
• ISRO has also finalized the layout and design of Environmental Control & Life Support System (ECLSS)
which maintains a steady cabin pressure and air composition, removes carbon dioxide and other harmful
gases, controls temperature and humidity, and manages parameters like fire detection and suppression,
food and water management, and emergency support.
Specifications
• GSLV Mk-III launch vehicle will be used to launch Gaganyaan. Two unmanned Gaganyaan missions will be
undertaken prior to sending humans, with first unmanned flight within 30 months.
• The total programme is expected to be completed before 2022 and cost is expected to be less than Rs.
10,000 Crores.
• The mission will aim to send a three-member crew to space for a period of five to seven days. The
spacecraft will be placed in a low earth orbit of 300-400km.
• This will be the first human mission indigenously developed by ISRO, though to accelerate the
programme, ISRO may consider collaborations with space agencies from friendly countries. For instance,
ISRO and CNES, the French space agency, will be combining their expertise in fields of space medicine,
astronaut health monitoring, life support, radiation protection, space debris protection and personal
hygiene systems.
• It will comprise of a crew module and service module that constitute an orbital module. The crew will do
microgravity experiment during the mission.
Need for Gaganyaan
• Potential for an enormous range of experiments in regard effects of microgravity and cosmic radiation
on bio-organisms ranging from bacteria and plants to large mammals. Some of the research at the
International Space Station (ISS) has already started paying off in concrete terms, for instance, it ha s led
to huge advances in multiple technologies ranging from weather research to disaster management to
ballpoint pens.
• Putting humans into space has also led to massive advances in medical technologies and basic
understanding of functioning of human bodies: For instance, microgravity can lead to a debilitating loss
of muscle and bone density. Scientists have developed technologies and fitness mechanisms that have
been breakthroughs in the treatment of osteoporosis and maintaining muscle mass.
• Many of the present technologies were result of space research: Telemedicine, including miniaturized
ultrasound units and remote monitoring systems were developed through space research. Similarly,
development of laser surgery and robotic surgery was a
The Objectives of the Gaganyaan Mission are:
result of developing better laser technology as part of
• Enhancement of science and technology
space technology.
levels in the country
• Application of space technologies in various areas such • A national project involving several
as Agriculture, Railways, Human Resource Development institutes, academia and industry
and Road, Transport & Highways, etc. for ease of living. • Improvement of industrial growth
Water purification and sewage recycling can be • Inspiring youth
transformed by adapting such technology at scale. For • Development of technology for social
instance, NASA’s water purification techniques are benefits
being deployed in drier regions of Africa. • Improving international collaboration
Similarly, an ethylene removal system called Advanced
Astroculture (ADVASC) was developed in space which removes viruses, bacteria and mould and is now
being used to prolong the shelf life of fruit and vegetables and in winemaking. Also, Silica Aerogel
developed by ISRO for space purposes found its utility in other fields like agriculture, etc.
• Manned space research is a much larger employment generator than unmanned missions: ISRO has
estimated that the Gaganyaan Mission will create 15,000 jobs because of the new technologies involved.
• Enhance national pride as the programme will make India the fourth nation in the world to launch a
Human Spaceflight Mission. So far, only the USA, Russia and China have launched human spaceflight
missions.
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Challenges
• Biosciences: While ISRO has perfected the engineering aspects of the mission, bioscience is a new field
for ISRO that requires greater technological knowhow and collaboration and support from other
organizations. Creating habitable space ecospheres also requires a host of technologies, including the
development of exotic materials and first class recycling systems.
• Cost: Manned missions require huge investments. So, for a developing country like India with limited
resources, there is always a debate on need of such costly missions versus spending on social sector.
• Moving to a manned programme will involve research and development of a whole new range of
technologies and precision: It involves mastering of the highly complicated and dangerous reentry and
recovery ability. The spacecraft needs to withstand very high temperatures, in excess of several
thousand degrees. Also, the spacecraft needs to reenter the atmosphere at a very precise speed and
angle, and even the slightest deviation could end in disaster.
• Training of astronauts: India lacks training facilities for astronauts, though ISRO has demanded for
indigenous training centers for its astronauts since early 2000s, no action have been taken yet.
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7. SOCIAL
7.1. SABRIMALA ISSUE
Background
• The Sabarimala temple is located in the Periyar Tiger Reserve in the Western Ghat mountain ranges of
Pathanamthitta District of Kerala. The Pilgrims trek the Neelimala to reach the shrine, which has 18
sacred steps, to worship Lord Ayyapa after observing strict abstinence vows for 48 days.
• The temple shrine is dedicated to Lord Ayyapa, a celibate.
• Women aged between 10 and 50, that is those who
are in menstruating age, are barred from entering The ‘living tree’ doctrine and Art. 17
the temple. While there is no restriction on women • It involves understanding the Constitution to be
to worship Lord Ayyappa in any other temple, their an evolving and organic instrument.
entry is prohibited in this temple. • For the living tree theorists, it matters little
what the intentions were at the time of
Key issues Involved Constitution making. What matters the most is
• Right to Equality V/S Right to Religion how the Constitution can be interpreted to
• Faith vs Rationality contain rights in their broadest realm.
• Attitude of Society- regressive and patriarchal • Article 17 (against untouchability) is inserted to
specifically acknowledge and remove the social
Stakeholders Involved stigma associated with certain castes/groups. It
was enacted in an attempt to eradicate
• The Indian Young Lawyers Association and five
historical inequality.
women lawyers in 2006 approached the Supreme
• The ‘living tree’ approach — being an
Court seeking a direction to allow entry of women alternative and a finer reading of the
into the temple without age restrictions, Constitution — supports a broader
challenging the temple practice saying it was interpretation of Article 17.
discriminatory in nature and against gender justice.
Another group of women, part of the "Happy to
Bleed" campaign, also sought the court's direction on Other Broad contours/ fault lines:
whether society should continue to bear with • Indian Secularism- no strict separation
between State & Religion
“menstrual discrimination."
o Their petition contended that discrimination in • Doctrine of “Essential religious practices”-
defines the limits on what could be called
matters of entry into temples was neither a ritual
the sole domain of religion. i.e. certain
nor a ceremony associated with Hindu religion groups (denominations) can claim their
and that such discrimination was anti-religious. rights to manage affairs of a temple and
The religious denomination could only restrict perform specific pujas, provided that it does
entry into the sanctum sanctorum and could not not fall foul of constitutional guarantees to
ban entry into the temple, making a discrimination others. Judges gave themselves the power
on the basis of sex. to determine what constitutes essential
• The All India Democratic Women’s Association, religious practice not just for one religion,
argued that the restriction on the entry of females of but for all of them.
menstruating age was in violation of the Constitution’s • Judicial encroachment on religious matters/
‘judiciopapism’ (judges can completely
equality and dignity principle. Article 26 (freedom to
overrule religious authority): examples
manage religious affairs) was subject to morality and Santhara, Women entry in Sabarimala, who
did not permit any discriminatory practice. can and cannot be Priest(Archakas).
• The Pandalam royal family (erstwhile custodian of the
temple); the tantri’s (supreme priest) family and Travancore Devasom Board which maintains the
temple, holds that the ban was in accordance to the centuries-old tradition. Lord Ayyappa, being a
Naishtika Brahmmachari (one who has vowed to remain celibate).
o Different temples have different customs. In Sabarimala there is no discrimination, there are some
restrictions. It is because of the nature of the deity, not because of male chauvanism. Similar stand
was taken by the Kerala HC in its 1991 judgement.
o Practice at Sabarimala of barring women of the age of 10-50 years from entering the temple was an
"essential and integral" practice of a religious denomination under Article 25. Thus, Supreme Court
cannot take upon itself to decide what is ‘essential’ to a religious denomination on the basis of an
Article 32.
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o The deity has the right to remain a 'Naishtika Brahmachari' (eternal celibate) and this was also part
of right to privacy of the deity, will of the deity needed to be respected.
o Uniqueness of the deity i.e. celibate character of the deity cannot be challenged by those who
wished to pray.
o It is not possible for women to put up with the physical hardship, austerity and days of celibacy like
men.
• Supreme Court’s Recent Judgement
o Ban on entry for women of a certain age at Sabarimala temple is based on the "patriarchal" belief
that the dominant status of a man in society makes him capable of performing austerity while a
woman, who is only a "chattel of man", is incapable of remaining pure for the 41 days of penance
prior to the pilgrimage.
o Women’s right to worship is a constitutional one and it does not depend on laws. Hence, banning
women aged between 10 and 50 from entering the Sabarimala temple in Kerala runs afoul of their
constitutional rights.
o Temple ban on women violates Art. 17: Women have been kept out of Sabarimala because of
menstruation (physiological and biological process). As a distinct class, they are being discriminated
against. If certain castes are considered ‘impure’ because of their social status, menstruating women
are considered to be so because of their gender. The criteria are different but the effect of exclusion
is common.
Analysis & Way Forward
• In essence, the Sabarimala case is a test case not only for freedom of religion and women’s rights but
also for respecting wider principles of constitutionalism.
• There is a need for change in religious beliefs in Indian society based on rationality and modernity as
otherwise it will dilute the ethos and principle of secularism, freedom and rights of women at large.
• However, the Judiciary should also use the doctrine of essential religious practices to intervene and
decide what are religious practices with restraint as otherwise it will deprive the rights of religious
organisations and denominations.
7.2. HARASSMENT OF WOMEN AT WORKPLACE

Why in news?
The Ministry of Corporate Affairs has amended the Companies (Accounts) Rules, 2014 and has made the
disclosure of compliance (under the Sexual Harassment of Women at Workplace Act) mandatory in the
Annual Reports of Private companies.
Background
• The Ministry of Women and Child Development (MWCD) has been making continuous efforts to
mainstream the implementation of the Sexual Harassment of Women at Workplace Act, 2013.
• All ministries and departments under central government have to constitute Internal Complaints
Committee. Complaints can be filed under the Act directly with the ministry through the SHE-Box.
• In context of this the MWCD had requested the Ministry of Corporate Affairs for making disclosure of
compliance mandatory in annual reports of private companies.
Rationale behind the amendment in rules
• The inclusion of the compliance under the Sexual Harassment of Women at Workplace Act in the non-
financial disclosures will ensure that the issue gets into the focus into Board of Directors of the private
companies. This will cast higher responsibility on the Directors for implementation of the Act.
Harassment of women at workplace
• Reason for harassment: The basic reason for women harassment at workplace lies in patriarchal
structure of the society leading to a sense of male superiority. Apart from jealousy at work, there is
general feeling of contempt and disrespect against women which is visible through sexually perverted
behaviours.
• Between 2014 and 2015 cases of sexual harassment within office premises more than doubled and there
has also been a 51% rise in sexual harassment cases at other places related to work in 2015.
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• In 2017, the National The Sexual Harassment of Women at Workplace (Prevention, Prohibition
Commission for Women and Redressal) Act, 2013:
received an average of 1.7
• It seeks to protect women from sexual harassment at their place of
complaints of sexual
work. The Act defines sexual harassment at the workplace and creates
harassment at workplace per a mechanism for redressal of complaints.
day. • The definition of “aggrieved woman,” who will get protection under
• 60% of complaints received in the Act, is extremely wide to cover all women, irrespective of their age
2017 were from five states: or employment status and whether in the organized or unorganized
Uttar Pradesh, Delhi, sectors, public or private, and covers clients, customers and domestic
Maharashtra, Madhya workers as well.
Pradesh and Haryana. • The Act covers concepts of quid pro quo harassment and hostile work
• In 2015 a study by FICCI titled environment as forms of sexual harassment if they occur in connection
with an act or behaviour of sexual harassment.
Fostering Safe Workplaces
• An internal complaints committee (ICC) is mandatory in every private
showed that 36% of Indian
or public organisation that has 10 or more employees.
companies and 25% of
• The Internal Complaints Committee has been given powers of a civil
multinational companies had court for summoning, discovery and production of documents etc.
not yet constituted their ICCs. • Each Internal Committee requires membership from an NGO or
About 50% of the more than association committed to the cause of women.
120 companies that • A ‘Local Complaints Committee’ is required to be constituted in every
participated in the study district. An additional ‘Local Complaints Committee’ shall also be
admitted that their ICC constituted at the block level to address complaints in situations where
members were not legally the complainant does not have recourse to an Internal Complaints
trained. Committee or where the complaint is against the employer himself.
• It also provides safeguards against false or malicious charges.
• The Act imposes a penalty of
upto Rs 50,000 on employers Criticism of the Act
who do not implement the
• The internal committee formed under this act has the power to decide
Act in the workplace or even a monetary fine which must be paid by the perpetrator, depending on
fail to constitute an ICC. But, their income and financial stability. This is a kind of discriminatory
the number of employers who method, it supports and envisages inequality among different
do not fully comply with the sections of the society, for example, a person earning low income
law indicates that there is would be paying a lower fine compared to a senior who earns more.
little monitoring of their • The Act does not cover the agricultural workers and armed forces.
redressal machinery. • The Act does not satisfactorily address accountability. It does not
• According to a survey specify who is in charge of ensuring that workplaces comply with the
Act.
conducted by the Indian Bar
• It is not a gender-neutral legislation and protects only women from
Association in 2017, 70%
sexual harassment at workplace.
women did not report sexual
harassment by superiors.
Reasons for failure to report safety concerns:
Measures which an organisation can • Lack of understanding: Most women perceive that the behavior is
take to enhance the safety of women not serious enough for them to take the next step and complain as
at workplace there is a lack of understanding of what harassment is, the laws
covering women safety and what they entail.
• Getting women to speak up: The
• Lack of faith: Women lack faith in the complaints process as
organisation should make the registering a complaint can be embarrassing and the complaint
environment conducive enough process seem difficult and useless.
for women to register complaints • Fear of retaliation: The fear of retaliation by the harasser or
against any such act. The organization also makes them silent about it.
registration complaints in severe • Self-judgement: Some women consider that they can take care of
cases directed to the government the situation themselves rather than going through the entire
should be fast-tracked. complaints redressal procedure.
• Deploying technology: • Social stigma: There is a stigma attached to sexual harassment in
Technology such as GPS, CCTV Indian society. Most of the time women are looked down upon if
they report such a case, irrespective of who is at fault in that
cameras, mobile apps etc should
situation. Several incidences of shaming at social media of women
be leveraged to create secure who report sexual abuse have been observed.
workplace and transportation to
the women employees.
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• Gender sensitisation training: Corporates should
conduct gender-sensitization trainings and
awareness programs for both men and women
across their operations.
• Mandating appropriate work practices:
Organisations often give more importance
towards productivity than safety which gives a
wrong signal to employees. The top management
level should try to make safety a priority.
• Instituting safe working conditions: With a
growing economy, working multiple shifts and
late hours at the office are quite common. The
rising crimes against women limits their
capabilities. Therefore, an organization may
permit women to look at options such as
telecommuting, leaving the office on time and
catching up on unfinished work at home. Female
security guards can be posted at necessary points
in offices and a basic pantry inside the office
premises can be provided so that women
employees need not venture out for dinner when
working late.
• Zero tolerance policy should be adopted within
code of conduct for employees to show
companies' firmness against such sexual
harassment.
• Successful "Campaigns like #MeToo and
#TimesUp have helped more and more women to
come up and speak of their experiences of abuse.
Conclusion
Women always have to trade-off between safety and
financial security which partly explains India’s low
female workforce participation rate as the fear of
harassment keeps many skilled women away from
the workforce. This is hurting India’s productivity and
economic growth, as According to World Bank
estimates, India’s economic growth can rise by a full percentage point if it even manages to raise its female
LFPR to the level of Bangladesh. An adequate monitoring and redressal of sexual harassment in companies
can play an important role in creating an enabling environment for women.
7.3. WITCH HUNTING

Why in News?
Recently, President has given his assent to the Assam Witch Hunting (Prohibition, Prevention and
Protection) Act, 2015.
Introduction
• Witch hunting is a superstitious practice which entails the worst forms of cultural violence against
women in a society. It's manifestation of violence against women that is practiced in the name of
culture, religion and social norms and practices, which are usually overlooked by the society.
• It’s a stigmatization of specific groups of people, which mostly contains widowed women, women who
are childless, old women, women of lower caste etc.
• Socio-Cultural Deprivation: Practice of witchcraft and ‘witch-hunting' in parts of India appears to be
prevalent predominantly among certain castes and tribes. These communities have lived a socially,
economically, educationally excluded and deprived life for centuries.
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• According to National Crime Records Bureau (NCRB), more than 2,500 Indians have been chased,
tortured and killed in such hunts between 2000 and 2016 and Jharkhand topped the chart of witch-
hunting murders.
• Human Right Violation: Guwahati High Court has observed that branding of a man or a woman as a
witch and then resorting to witch hunting is the most dehumanising act and is one of the worst forms of
human rights violations.
Reason for Its Prevalence
• Patriarchal Attitude in Society: In a survey it was found that, women who dare to protest and speak up
against the social hegemonic structure are targeted as witch by exploiting India’s caste system and
culture of patriarchy.
• Vested Interest: Many times, branding women as witches is a tool used by land grabbers to deprive
families of their property. Sometime people instigate such practices against the lower caste men and
women in order to maintain their status in the society. It is also used as a weapon of revenge against
women who refuse to yield to sexual advances.
• Personal Gain: Practice of witch hunting has become a social and religious business for the local
doctors/medicine men/Ojhas to fulfil their materialistic requirements.
• Issue with the criminal justice system. Many of the cases registered were closed because of shoddy
investigation, lack of evidence and witnesses or a compromise being worked out between the victims
and the perpetrators.
• Lack of proper scientific awareness Protection to Women
and education are one of the • Constitutional Obligation: Indian government has an obligation
reasons of large prevalence of witch to protect women from discrimination on the basis of gender
hunting in India eg: women were (Article -15) and also provide basic rights and security granted by
different international treaties, covenant and laws like:
held responsible for all the
o Universal Declaration of Human Rights (UDHR) 1948,
calamities like rising infant provides protection against any discrimination and
mortality, famine, flood, and promotes equality before law. It also confirms right to life
epidemic diseases etc. and liberty to every human being.
o International Covenant on Civil and Political Rights (ICCPR),
Challenges
India associated with it in 1979, promotes equality between
• Absence of National Legislation: men and women by ensuring equal rights to men and
India does not have any specific women in civil as well as political sphere and prohibits
national legislation or laws for others from subsuming anyone’s basic rights. Article 7
preventing witch hunting. Most of explicitly mentions prohibition of cruelty, inhuman or
degrading treatment and by associating with the covenant
the cases are dealt with in Section
it is obligatory for Indian government to implement these
323 of the Indian Penal Code (IPC), rules.
which prescribes one year’s o India has signed Convention on the Elimination of All
imprisonment and a Rs 1,000 fine to Forms of Discrimination against Women (CEDAW) on 1993
anyone who causes harm and had agreed to eliminate discrimination and social
voluntarily. cruelty against women.
• Poor implementation of prevalent
laws: Ineffectiveness of states legislation is witnessed through the increasing incidents of witch-hunting.
• Lack of provisions for providing rehabilitation, relief, or any form of compensation to women after they
have been identified as witches.
• Social Rigidities: As a social evil, witch hunting is difficult to tackle because the motivation of such action
is often rooted in the traditional spiritual and cultural belief system of the communities.
Way Forward
• Promoting scientific temper under Article 51-A for ensuring the empowerment of fringe communities.
• Comprehensive approach consisting of legal remedies, psychosocial support, economic empowerment,
education, persecution of the perpetrator, to achieve better indicators in human development.
• Improving access to health care by ensuring that mental health care and support reaches villages with
the appointment of psychiatrists and psychologists at the block level while ensuring delivery of justice to
accused women through all mean with accelerated programmatic and policy action.
• Supporting awareness programmes and campaigns to aware people about the debilitating
psychological and economic impacts on women who are made victim of accusations of being a witch and
alter the deep-rooted value system of patriarchy that discriminate and subordinate women.
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• Training Of The Panchayat Leaders in handling the reports on witch hunting and taking all preventive
measures in order to ensure zero incidence of witch accusation related violence on women.
• Capacity Building: Organizing women’s groups, community or sanghas at village level to enhance the
self-confidence and economic independence of vulnerable women.
• Group Building Exercise by the self-help group or civil society organizations among women within the
communities to create a network of support system at the grassroots level and to extend opportunities
of socio-economic development.
7.4. DECRIMINALISING ADULTERY

Why in news? Related Information
The government has submitted an affidavit to the Section 497 of IPC- Adultery Whoever has sexual
Supreme Court that dropping of adultery as an intercourse with the wife of another man, without the
offence from the Indian Penal Code (section 497) consent or connivance of that man, such sexual
will erode the sanctity of marriage and will be intercourse not amounting to the offence of rape, is
guilty of the offence of adultery. In such case the wife
detrimental to the intrinsic Indian ethos.
shall not be punishable as an abettor.
Issues Involved Section 198 of CrPC-Prosecution for offences against
marriage
• The Constitution Bench is to decide on
whether the pre-Independence provision of No person other than the husband of the woman shall be
deemed to be aggrieved by any offence punishable under
adultery in the IPC (Section 497) treats a
section 497.
married woman as her husband’s
Various Personal Laws
“subordinate” and violates the constitutional
concepts of gender equality and sensitivity. Adultery is a ground for divorce in all the personal laws.
For e.g. Section 13(1) of Hindu Marriage Act, 1955, Section
• It will also decide whether Section 497 of IPC
2(viii)(b) of the Muslim Marriages Act, Section 32(d) of
treats the man as the adulterer and the
the Parsi Marriage and Divorce Act, 1936 etc.
married woman as a victim.
• The larger Bench may also examine why the offence of adultery ceases the moment it is established that
the husband convinced with or consented to the adulterous act.
What is the reason behind this debate?
• The PIL filed by Joseph Shine highlighted the fact that only men were punishable for the offence of
adultery despite the sex being consensual.
• The plea also argued that Section 497 was "prima facie unconstitutional on the grounds that it
discriminates against men and violates Article 14, 15 and 21 of the Constitution".
• It also found fault with the adultery law, saying it was discriminatory against women by presuming that
they are the property of men. This is further evidenced by the fact that if adultery is engaged with the
consent of the husband of the woman, then such act seizes to be an offence punishable under the code.
• The petitioner also questioned the constitutional validity of Section 198(2) of CrPC, which deals with the
prosecution for offences against marriages.
What is governments' stand?
• In context of the above questions, the government has given its own view that the provision of
punishing adultery — Section 497 of IPC — supports, safeguards and protects the institution of marriage
and striking it down would destroy the fabric of society itself.
• It has submitted that striking down Section 497 of IPC and Section 198(2) of the CrPC (which were
created by the legislature in its wisdom, to protect and safeguard the sanctity of marriage, keeping in
mind the unique structure and culture of the Indian society ) will prove to be detrimental to the intrinsic
Indian ethos which gives paramount importance to the institution and sanctity of marriage.
Criticism against the stand of Government
• Government’s opposition to decriminalising adultery is part of a larger reluctance to relinquish powers
to police individual choices.
• Governments stand can shift the Supreme Court's focus from constitutionality, which would warrant
testing the Indian Penal Code provision outlawing adultery against the right to privacy, personal liberty
and equality.
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• Modern nations allow individuals to frame and live by their own codes of personal morality. Marriage
laws should not allow the state to hinder consenting adults.
• The marriage’s fate should rest entirely on the two people in it. Personal choices like adultery may be
morally unacceptable for many individuals but should not amount to criminal offences. Yet, not only
does Section 497 IPC entail peeking into bedrooms to catch marital infidelity, it adds insult to injury by
punishing merely the cheating man but sparing him if the lover’s husband doesn’t object.
• Respecting the privacy and choices of citizens does not amount to destabilising society at all. It merely
recognises that everything deemed ethical cannot be legislated and enforced through coercive
governmental power.
Supreme Court's stand during hearings
• The SC has said that the idea of imposition of Section 497 of the Indian Penal Code is not to enforce
monogamy but to ensure to protect fidelity in the marriage, which is a promise made by both the
parties while entering to a marriage.
• It has opined that the law violates article 14 of the constitution since it creates an irrational classification
between men and women. However, it is of view that the Gender neutrality (as recommended by the
Malimath Committee) cannot make adultery an offence as the Act is consensual.
• The SC has also said that the women hold positions of authority in almost all spheres, the premise that
the woman is always the ‘victim’ not only undermines the notion of women’s agency but also is entirely
unfair to men.
• The Bench also observed that decriminalising adultery was not “a licence for people to go indulge in it”.
Further adultery does not even qualify as a criminal offence and is, at the mo st, a civil wrong that has a
civil remedy – Divorce.
The judgement is yet to come.
7.5. STUDY ON TRANSGENDERS

Why in news?
National Human Rights Commission (NHRC) for the first time did a study on the conditions of transgenders in
India.
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Efforts taken to improve the situation of transgenders in India
• National Legal Services Authority versus Union of India: The Supreme Court of India legalized the
presence of transgender people in 2014, and allowed the legal creation of a “third gender” category.
o The judgement also called for affirmative action in education, primary health care, and that
transgenders be identified as beneficiaries of social welfare schemes.
o However, it did not enter into any discussion regarding section 377 of IPC (which criminalizes non-
procreative sexual acts) because of which the queer community involved in sex works faces
difficulty in getting treatment for health issues such as HIV.
o NHRC in its report has pointed that center and state government have failed to implement SC
guidelines in NALSA judgement or bring laws to improve lives of the transgenders. There is also no
clarity on OBC status of transgenders".
• Transgender Persons (Protection of Rights) Bill, 2016:
o The Bill defines a transgender person as one who is partly female or male; or a combination of
female and male; or neither female nor male. In addition, the person’s gender must not match the
gender assigned at birth, and includes trans-men, trans-women, persons with intersex variations and
gender-queers.
o It prohibits discrimination against a transgender person in areas such as education, employment,
and healthcare. It directs the central and state governments to provide welfare schemes in these
areas.
o Offences like compelling a transgender person to beg, denial of access to a public place, physical and
sexual abuse, etc. would attract up to two years’ imprisonment and a fine.
o It directs Central government to constitute a National Council for Transgender headed by the Union
Minister of Social Justice and Empowerment.
o It provides no child who is born a transgender can be separated from his parents except on a
court’s order.
o Every transgender person shall have
✓ a right to reside in the house-hold where parent or immediate family members reside;
✓ b) a right not to be excluded from such house-hold or any part thereof;
✓ a right to enjoy and use the facilities of such house-hold in a nondiscriminatory manner.
o The Government shall take the following measures in relation to the transgender persons, namely:
✓ a separate HIV surveillance Centres;
✓ to provide for medical care facility including sex reassignment surgery and hormonal therapy;
pre and post sex reassignment surgery and hormonal therapy counselling;
✓ bring out a Health Manual related to sex reassignment surgery in accordance with the World
Profession Association for Transgender Health guidelines;
✓ to facilitate access to the transgender persons in the hospitals and other healthcare institutions
and centres;
✓ provision for coverage of medical expenses by a comprehensive insurance scheme for
transgender persons.
o Issues with the bill:
✓ The Bill states that a person recognised as ‘transgender’ would have the right to ‘self-perceived’
gender identity. However, it does not
provide for the enforcement of such a Successful Transgender persons in India
right. A District Screening Committee • In 1998 Shabnam Mausi became first transgender
to get elected to a public office.
would issue a certificate of identity to
• In 2014, Grace Banu was the first transgender
recognise transgender persons.
student to secure admission in an engineering
✓ The Supreme Court has held that the college.
right to self-identification of gender is • In 2015, India got its first transgender college
part of the right to dignity and autonomy principal when Manabi Bandhopadhyaya joined
under Article 21 of the Constitution. as the principle of Krishnagar Women’s College in
✓ The definition of ‘transgender persons’ in West Bengal.
the Bill is at variance with the definitions • Revathi became the first transgender to write
recognised by international bodies and about transgender issues and gender politics in
experts in India. Tamil.
✓ The Bill includes terms like ‘trans-men’, • Padmini Prakash is the first transgender
television news anchor in the country.
‘trans-women’, persons with ‘intersex
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variations’ and ‘gender-queers’ in its definition of transgender persons. However, these terms
have not been defined.
✓ Certain criminal and personal laws that are currently in force only recognise the genders of ‘man’
and ‘woman’. It is unclear how such laws would apply to transgender persons who may not
identify with either of the two genders.
✓ It does not include the creation of institutions like the national and State commissions for
transgenders, as well as transgender rights courts which were part of the earlier draft bill.
• University Grants commission in 2014 issued a notification to facilitate the education of transgenders
such as grievance cells in colleges, separate category in admission and examination forms etc.
• Important steps taken by states:
o Tamil Nadu is frontrunning state in taking steps for development of transgenders by providing them
education, identity cards and subsidized food and free housing. In a pioneering effort to address the
issues faced by transgender people, the government of Tamil Nadu established a transgender
welfare board in 2008 (West Bengal, Maharashtra, Chattisgarh and Karnataka have also established
the board).
✓ Seats have been reserved in colleges and universities for the members of transgender
community.
✓ Tamil Nadu AIDS Initiative has formed a federation of 20,000 transgenders which provides
various health services to its members.
o Kerala government brought the ‘State Policy for Transgenders in Kerala 2015’ to provide the “right
to live with dignity.”
✓ Village and district panchayats and municipalities have been tasked with finding jobs, running
special training and skills programmes and welfare projects.
✓ A Transgender Justice Board has been established to address issues of discrimination and
violence against them.
✓ The Kochi Metro also provides jobs quota to Transgenders.
Way forward International Practices
• Government has taken certain measures to • Countries like Denmark, Malta and Argentina have
made legislations related to self-determination.
identify and enumerate transgender
Following Argentina’s lead India can choose to adopt
population. These measures need more the Yogyakarta principles- i.e. adopt a model of
streamlining and inter-ministerial cooperation gender recognition that does not rely on a diagnosis
is also required. by medical professionals.
• While various state governments formulated • In United Kingdom change in legal sex does not have
schemes for transgender communities, a an effect on marriage, security benefits/pensions and
National policy is an urgent need to ensure do not adversely affect parenthood or succession
greater involvement of transgender persons rights.
in policy formulation and program • Following precedents set by Iran, Argentina and
Brazil sexual reassignment surgery and hormone
development.
therapy should be defined as a public health right and
• It is important to sensitize parents of
be made freely available.
transgender children and other members of
the society with regards to the human rights of the transgender community.
• Transgender children are under severe stress and low self-esteem and counselling services need to be
provided to them. A component of such services could be included under the Integrated Child Protection
Schemes.
• Legal and the law enforcement systems need to be empowered and sensitized on the issues of
Transgender community. Special Grievance Redressal Cells for their protection should be set up in all
police stations.
• Child Protection laws need to be strengthened to address issues faced by transgender adolescents. The
abandonment of child is a punishable offence under Section 317 of IPC. The age limit of child for this
offence need to be increased to 18 years as abandonment of transgender children usually takes place
between 12 and 18 years.
• Care homes for transgender children should be setup to prevent exploitation of vulnerable transgender
children.
• Legally transgender cannot enter into a marriage, have spouse and setup their own family in India. They
need to be provided right to marry and right to a family along with right of sexual orientation.
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• Government should take steps to provide housing facilities to transgender people.
• Transgender people should get equal employment opportunities and every employer should be made
to declare policy statement on trans recruitments.
• Local governments need to play a positive and proactive role in removal of taboos and discrimination.
• All treatment and other facilities should be provided at free of cost or at subsidized rates to all
transgender patients in both government and private hospitals.
• School and colleges need to play a supportive and encouraging role in providing education and value-
system to Transgender.
• Establishment of helpline for career planning and guidance, career opportunities and online placement
system must be empowered.
• Liberal credit facilities and financial assistance must be ensured to start up their career as an
entrepreneur or businessman.
7.6. SECTION 377 DECRIMINALIZED

Why in News?
Recently, in a landmark verdict a constitutional bench of Supreme Court in Navtej Singh Johar v/s Union of
India, 2018 case declared parts of Section 377 of IPC as unconstitutional, thus decriminalizing homosexuality.
Background
• Section 377 came into force in 1861 during the British rule to criminalise sexual activities “against the
order of nature”, including homosexual activities.
• In Naz foundation v/s Govt of Delhi case, 2009 the Delhi High Court held that section 377 was in violation
of Fundamental Rights of the constitution such as Article 14, 15, 19 and 21 and decriminalized it.
• Later, Supreme Court in Suresh Kumar Koushal vs Naz Foundation case, 2013 overturned the HC ruling by
dismissing the issue as concerns of a ‘miniscule fraction of the country’s population’.
• In 2014, the SC in NALSA v/s Union of India case directed the government to declare transgender a ‘third
gender’ and include them in the OBC quota.
• Last year in its privacy judgment (Justice Puttaswamy(retd.) v/s Union of India, 2017), SC upheld the
Right to Privacy as a fundamental right under the Constitution and said that sexual orientation is an
essential component of identity and the rights of the LGBTQ persons are real and founded on
constitutional doctrine.
• SC also called for equality and condemned discrimination, stating that the protection of sexual
orientation lies at the core of the fundamental rights and dignity of the person.
Arguments given by SC against Section 377
• SC declared Section 377 as irrational, indefensible and manifestly arbitrary: the fact that Section 377
fails to make a distinction between consensual and non-consensual sexual acts between competent
adults was manifestly arbitrary and makes it violative of the right to equality that includes the right
against arbitrariness.
• Unconstitutional and Violative of Right to privacy: According to the SC, bodily autonomy is
individualistic and choice of a partner is part of the fundamental right to privacy, integral to Article 21 of
the constitution(SC in Hadiya judgment, 2018). Criminalisation of private sexual conduct between adults
of same sex was thus unconstitutional as it also abridged their freedom of choice and expression under
Article 19.
• Discriminated against a minority based solely on their sexual orientation: thus violating the basic
fundamental rights of LGBTQ community under article 14 and 15 of the constitution which prohibits
discrimination solely on the basis of sex. It also prohibited them to enjoy equal citizenship and equal
protection of laws under Article 21.
• It is not against the order of nature: Homosexuality is documented in 1500 species and is not unique to
humans. Sexual attraction for the same sex is controlled naturally by neurological and biological factors;
an individual’s natural orientation is innate and lies at the core of her/his being and identity.
• Homosexuality is neither mental illness nor moral depravity: The Mental Healthcare Act, 2017 already
cleared the stigma of mental illness attached to homosexuality.
• International law strictly prohibits any discrimination on the grounds of sexual orientation or gender
identity: The Office of the UN High Commissioner of the Human Rights oblige states to protect
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individuals from homophobic violence; prevent such violence; decriminalize homosexuality; prohibit
discrimination; and respect fundamental freedoms of all persons. Similar reiteration of human rights of
LGBTQ people were made in recently expanded Yogyakarta Principles.
• Constitutional morality privileges over social or majoritarian morality: Constitutional morality must
seek to usher in a pluralistic and inclusive society. It is the responsibility of the State to curb
majoritarianism and any attempt to create a homogeneous, uniform, consistent and a standardized
philosophy would violate the constitutional morality. The Constitution is not for just the majority, the
fundamental rights are guaranteed to “any person” and “any citizen”, and the sustenance of these
rights does not require majoritarian sanction.
• The idea of transformative constitutionalism must be utilized to transform society for the better so as
to embrace the ideals of justice, liberty, equality and fraternity among the citizens.
• The destruction of individual identity would tantamount to the crushing of dignity: Attitudes and
mentalities have to change to accept distinct identities of individuals, who must be respected for who
they are, and not compelled to become who they are not. Courts must protect dignity of an individual as
right to live with dignity is recognized as fundamental right.
Implications of the Judgment
• it would not apply to consensual same-sex acts between homosexuals, heterosexuals and other sexual
minorities but would apply to bestiality and sexual acts without consent by one of them.
• End discrimination: It will put an end to the discrimination that many millions faced because of their
sexual orientation or gender identity for so many years.
• Impact on other judgments: the present ruling will impact similar cases pending in the court such as that
of section 497 which provides for criminalizing adultery.
• Transnational impacts: the judgment would provide an impetus to other countries to critically consider
the lawfulness and legality of provisions that similarly criminalise sexual relations.
Way Forward
• A new law must be brought to explicitly provide protection for sexual minorities and the Government
must work towards eradicating the societal stigma surrounding homosexuality.
• Laws must be appropriately amended to give them right to marriage, inheritance, guardianship and
adoption to ensure complete equality, dignity and societal acceptance.
• Similarly, discriminations faced by LGBTQ community in education, jobs and at health care centers must
be adequately dealt with.
• The current judgment presents an opportunity to adopt international Principles regarding human rights
of LGBTQ in a structured manner to correct the wrongs done to the fellow citizens.
7.7. DEVELOPMENT INDUCED DISPLACEMENT OF TRIBALS

Why in news? Related Information
• The National Commission for Scheduled Tribes (NCST) was constituted
As per Art 338, NCST has
consequent to the amendment of Article 338 of the Constitution of India
directed Andhra Pradesh to
and insertion of a new Article 338A vide the Constitution (Eighty-ninth
improve on resettlement and Amendment) Act, 2003 which, inter-alia, enjoins upon the Commission to
rehabilitation of tribal families oversee the implementation of various safeguards provided to Scheduled
displaced by Indira Sagar Tribes under the Constitution or under any other law for the time being in
Polavaram project. force or under any other order of the Government and to evaluate the
working of such safeguards.
Background
• Article 338 provides for a Special Officer for Scheduled Castes, Scheduled
• Numerous big development Tribes to investigate all matters relating to the safeguards provided for
projects have been seen as the Scheduled Castes and Scheduled Tribes under this Constitution and
report to the President upon the working of those safeguards at such
crucial for the overall
intervals as the President may direct, and the President shall cause all
development of the
such reports to be laid before each House of Parliament.
economy. For example, • A major legislation that deals with the issue of displacement and
Dams are known as the resettlement is Land acquisition, Rehabilitation, Resettlement Act 2013.
‘temples of India’. • Other laws for tribal development include Panchayats (Extension to
• Many of these projects Scheduled Areas) Act 1996 (PESA), Forest Rights Act 2006 and Fifth
have been set up in tribal Schedule of the Constitution.
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areas and on the lands owned by tribals. These are the groups that have traditionally depended on the
common property resource basically on forestland for their survival.
• ‘Development induced
displacement and resettlement
(DIDR)’ can be defined as the
forcing of communities and
individuals out of their homes,
often also their homelands, for the
purposes of economic
development. At the international
level, it is viewed as a violation of
human rights.
• Compensation and rehabilitation
policies designed to mitigate
effects of displacement are often
unsuccessful. This is largely due to
corruption of street level
bureaucrats, underestimation of
the value of resources, failure of
planners to recognize the
intricacies of the existing social and
economic systems of the displaced
and lack of involvement of
displaced persons in the planning
process.
Problems faced by the displaced families can be summarised as
• The affected communities many a Important Provisions of Right to Fair Compensation and
times are not even consulted Transparency in Land Acquisition, Rehabilitation and Resettlement
regarding the actions and their Act, 2013
consequences on them. For • The process for land acquisition involves a Social Impact
example, in case of Bargi Project Assessment survey, preliminary notification stating the intent
over Narmada, it was told that 104 for acquisition, a declaration of acquisition, and compensation
villages will be affected, while 162 to be given by a certain time. All acquisitions require
rehabilitation and resettlement to be provided to the people
villages got submerged leading to
affected by the acquisition.
displacement of people.
• The ‘public purpose’ for which land can be acquired by the
• Under-evaluation of Compensation: government is defined.
Due to high level of corruption, • The Act also provides for schools and playgrounds, health
illiteracy among the Tribals and centers, roads and electric connections and assured sources of
various other reasons, the people safe drinking water for each family.
are cheated as compensation is not • The role of the gram sabha has been clearly stressed and the
enough in terms of the loss they government has to consult them.
ususlaly go through. • Compensation for the owners of the acquired land shall be four
• Inability to handle cash times the market value in case of rural areas and twice in case of
urban areas.
compensation: Their money gets
• In case of acquisition of land for use by private companies or
depleted quickly through fraud,
public private partnerships, consent of 80 per cent of the
from repayment of old debt, in displaced people will be required. Purchase of large pieces of
liquor and other conspicuous land by private companies will require provision of rehabilitation
consumption. A lifetime of and resettlement.
livelihood security or shelter is • The Act forbids land acquisition when such acquisition would
squandered in months, sometimes include multi-crop irrigated area. However, such acquisition may
weeks, condemning displaced be permitted on demonstrable last resort, which will be
persons to assured and irrevocable subjected to an aggregated upper limit for all the projects in a
destitution. District or State as notified by the State Government. In addition
to the above condition, wherever multi-crop irrigated land is
• Failure to acquire cultivable land:
acquired an equivalent area of cultivable wasteland shall be
The problems associated with the
developed by the state for agricultural purposes.
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absence of a comprehensive rehabilitation plan, of undervaluation of compensation and the inability to
negotiate a money economy, combine as serious barriers for displaced land owners to secure alternate
cultivable lands.
• Traumatic, Forced and delayed relocation: The driving objective of project authorities has not been to
prepare and assist the families to relocate and to make a gradual and less painful transition to their new
habitats. Instead the only objective is to vacate the submergence zone of what are perceived to be its
human encumbrances.
• Problems in resettlement sites: Resettlement sites are often inhospitable in a number of ways (small
houses, temporary structures, absence of basic facilities, schools and colleges, etc.) and their locations
are selected without reference to availability of livelihood opportunities, or the preferences of displaced
persons themselves.
• Multiple displacement: Due to absence of coordination among offices, displacement takes place twice
or thrice, for which the villagers are not even compensated.
• Failure to provide alternative livelihood: Land for land policy rarely operationalise and the authorities
are unable to provide non-land based sustainable livelihood to the displaced.
• Problems of host communities: Unoccupied areas rarely exist and therefore resettlement takes place in
existing settlements. This increases competition for few available resources and jobs. Therefore, the
host communities rarely accept the displaced people.
• Special vulnerabilities due to class, caste, gender, age, etc is also observed during displacement. The
displaced family's livelihood, their family, kinship systems, cultural identity and informal social networks
are badly affected and disrupted. The condition of the women is even more traumatic. Lack of policy
framework and social securities has made them insecure and psychologically very weak.
Recommendations for Rehabilitation and Resettlement of displaced people:
• Agricultural land: The state government should provide only land fit for agriculture to the displaced
family within the command area of Irrigation Project with proper irrigation facilities.
o While awarding compensation in respect of tribal people, “land for land” policy should be followed
to the maximum extent.
o The ceiling of 2.5. acres of land should be waived in case of ST people, and they should be provided
equal or at least 2.5 acres of land within the Command Area in case of irrigation project such as
Polavaram.
• Means of livelihood: The state government should also take care of the people without land holdings
(who depended on minor forest produce for livelihood) by providing them adequate means of
livelihood. The government may consider developing an industrial estate/hub adjoining the resettlement
area to provide employment and economic opportunities to the displaced families.
• Housings: Government should immediately re-build the newly constructed houses which are destroyed
by flash flood to mitigate the sufferings of displaced.
• The compensation packages need to be revised keeping in view the suggestions of the Supreme Court
of India in the case of Mahanadi Coalfields Ltd.
• Infrastructure: In the resettlement colonies, focus/emphasis needs to be given for creation of social
infrastructure like setting up of Colleges, University, Stadiums, Medical College on the pattern of AIIMs,
Art and Music academies/centers, etc. in addition to their entitlement.
• Advance Construction and compensation: The State Government must ensure that R&R work is
completed and compensation paid to the project affected as well as project displaced families at least
four months prior to submergence or commissioning of the project or their displacement, whichever is
earlier.
• Overseeing the process: The NCST strongly recommended that there should be a dedicated team of R&R
officials to be stationed in rehabilitation area to oversee the developmental activities and other welfare
measures for a period of at least 5 years from completion of the project.
• Alternative solutions such as reviving traditional systems of water harvesting (it has worked in various
parts of Rajasthan and has changed the economy of farmers and also addressed drinking water
problems in the region), applying modern rainwater harvesting models and building small check dams,
precise irrigation methods, sustainable mining etc. can be adopted instead of bigger projects.
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7.8. PROPOSED NATIONAL POLICY FOR DOMESTIC WORKERS
Why in News?
Discussions are underway regarding a policy for Domestic Workers as government recently came out with its
proposed salient features.
Issues with the domestic workers
• No accurate data on their exact number: though 68th round of NSSO survey for employment and
unemployment indicate 3.9 Million, unofficial numbers may be higher.
• No legal framework currently recognizing their rights: Though India has two laws which address the
concerns of domestic workers and in a circuitous way regard them as ‘workers’ which include
Unorganized Workers Social Security Act, 2008 and the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, neither of these identifies workers as rights bearing
workers.
• Indifferent attitude of State governments towards domestic workers: states have failed to include
domestic workers in their respective schedules of employment.
• Vast Sector and still not considered an economic activity: In purview of labour laws the work of
domestic workers is not termed as a work- cooking, cleaning, babysitting, etc. are not recognized as
work by state. They don’t have access to basic social security benefits including Maternity leaves,
Pension and insurance.
• The Minimum Wages Act 1948 doesn’t take domestic workers into account: This results in poor
grievance redressal in case of underpaid workers. Past efforts towards legislation for Domestic
• Includes Children below age of sixteen: who are unable workers
to enjoy their fundamental right under article 21A that
The National Platform for Domestic Workers
guarantees them compulsory elementary education.
submitted a draft bill, the Domestic Workers
• India is a signatory to the International Labor Regulation of Work and Social Security Bill,
Organization’s 189th convention, known as the 2016 which called for the compulsory
Convention on Domestic Workers, but has not ratified it registration of the employer and the employee
yet. with the District Board for regulation of
domestic workers.
Why need for a policy?
• Domestic Workers lack an organized union: they come under the unorganized sector, thus they don’t
act as a pressure group which disables them to highlight their grievances to the authorities.
• Migrant Workers: Most of these are from vulnerable communities – Adivasis, Dalits or landless OBCs and
almost all of them are migrants who require work to survive. Overwhelming number of them are
women.
• Victims of abuse: they are often mistreated and are verbally or physically abused and also many times
face sexual harassment which creates an unsafe working environment.
• Remain out of mainstream economy: they are unable to utilize the benefits of rapid economic
development and growth.
Initiatives by states
Salient Features for proposed National Policy for • Many state governments like Rajasthan,
domestic workers Kerala, Punjab, Tamil Nadu and Tripura have
included domestic workers in the schedule
• Inclusion of domestic workers in the existing of Minimum Wages Act and workers are,
legislations. therefore, entitled to file cases before the
• Registration of domestic workers. concerned authorities in case of any
• Right to form their own associations, trade unions. grievances in this regard.
• Right to have minimum wages, access to social • Mathadi board model prevalent in
security, protection from abuse, harassment, violence. Maharashtra: The Mathadi boards were set
up to ensure fair wages were paid to
• Right to enhance their professional skills.
workers carrying loads. This ensures that
• Protection of domestic workers from abuse and equal wages are paid for equal work.
exploitation.
• Domestic workers to have access to courts, tribunals, etc.
• Establishment of a mechanism for regulation of placement agencies.
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Significance of proposal
• Aims to provide equitable salaries and fair employment terms, protection from abuse/harassment and
violence and address their grievances and resolve disputes.
• States to set up a Board/Trust to register and regulate placement agencies for domestic workers. The
board will make recommendations on working hours, minimum wages and leave entitlements,
promoting equal pay for equal work.
• Clearly define part time, full time and live-in workers, employers and private placement agencies.
• Domestic workers would now be included in the Universal Social Security code that is being drafted by
labour Ministry, which would provide them with benefits such as medical insurances, pensions,
maternity and mandatory leave.
• It would be a step forward in formalization of domestic workers.
7.9. THE TRAFFICKING OF PERSONS BILL, 2018

Why in news?
Lok Sabha has recently passed the Trafficking of Persons (Prevention, Protection and Rehabilitation) Bill,
2018.
What is human trafficking?
• United Nations Convention against Transnational Organized Crime (UNTOC) defines Trafficking in
Persons as the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the
threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of
power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the
consent of a person having control over another person, for the purpose of exploitation.
• Exploitation shall include, at a minimum, the exploitation of the prostitution of others or other forms of
sexual exploitation, forced labour or services, slavery or practices similar to slavery, servitude or the
removal of organs.
• Human trafficking is a crime against the person because of the violation of the victim's right to
movement through coercion and because of their commercial exploitation. It is the third largest
organized crime in the world.
Human Trafficking in India
What increases vulnerability to human
• The most current available data from the National Crime Records
trafficking? Bureau (NCRB) indicate that there were more than 8,000
• Political Instability: It creates reported cases of human trafficking across India in 2016.
unstable conditions in which • West Bengal (having porous borders with Bangladesh and Nepal)
has become a human trafficking hub as it registered more than
people may live in constant fear
one-third of the total number of victims in 2016.
with limited options for survival or
• India is a source, transit as well as a consumer country in South-
earning a living. East Asian human-trafficking industry.
o It may also lead to forced
migration leading to Steps taken to combat human trafficking
homelessness, unemployment, • India ratified the UNTOC in 2011.
and other deprivations of • The Government of India applies the Criminal Law (Amendment)
which traffickers may take Act 2013, as well as Section 370 and 370A IPC provides stringent
advantage. punishment for human trafficking; trafficking of children for
• Poverty: Traffickers specifically exploitation in any form including physical exploitation; or any
target poor and marginalized form of sexual exploitation, slavery, servitude or the forced
removal of organs.
communities to offer vulnerable
• Apart from this, there many other laws and provisions that
individuals false opportunities to protect people from exploitation, like-
improve their o Article 23 (1) of Indian Constitution prohibits Trafficking in
circumstances. Parents are often Human and forced labour,
forced to sell their children due to o The Immoral Traffic (Prevention) Act, 1956 (ITPA) for
poverty. prevention of trafficking for commercial sexual exploitation.
• Gender Inequality: makes women o Bonded Labour System (Abolition) Act, 1976,
more vulnerable to recruitment by o Protection of Children from Sexual offences (POCSO) Act,
traffickers. 2012 to protect children from sexual abuse and exploitation,
etc.
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• Addictions: Traffickers use substance dependency and addiction to keep control of the trafficked
person. Some traffickers purposely supply drugs to vulnerable people to break down their resistance and
coerce them into forced labour or sex.
• Mental Health: People with mental health issues face a variety of challenges including isolation,
diminished capacity to consent or offer informed consent, and limited ability to assess risk and detect ill-
intentions. Traffickers are skilled in detecting these vulnerabilities and manipulating them to their
advantage.
• Online Vulnerability: Traffickers maintain an online presence to lure vulnerable adults and children with
the goal of meeting them in person, to take and circulate explicit photos, and to coerce an individual to
comply with their demands.
Salient Features of the Anti-trafficking Bill, 2018
• A National Anti-Trafficking Bureau (NATB) will be established for coordinating, monitoring and
surveillance of trafficking cases. It will also deal with crimes having inter-state ramifications.
• Anti-Trafficking Relief and Rehabilitation Committees to be established at the national, state, and
district levels. These Committees will be responsible for: (i) providing compensation to victims, (ii)
repatriation of victims, and (iii) re-integration of victims in society, among others.
• State Anti-Trafficking Officers:
He will be responsible for: (i) Recommended Guidelines on Human Rights and Human Trafficking by
Human Rights Council of the UN
follow up action under the Bill, as
• Promotion and protection of human rights. Anti-trafficking
per the instructions of the State
measures should not adversely affect the human rights and dignity
Anti-Trafficking Committee, and of persons and, in particular, the rights of those who have been
(ii) providing relief and trafficked, migrants, internally displaced persons, refugees and
rehabilitation services. The state asylum-seekers.
government will also appoint a • Identification of trafficked persons and traffickers. A failure to
Police Nodal Officer at the state identify a trafficked person correctly is likely to result in a further
and district levels. denial of that person’s rights.
• Anti-Trafficking Units: ATUs will • Effective and realistic anti-trafficking strategies must be based on
deal with the prevention, rescue, accurate and current information, experience and analysis.
and protection of victims and • There is an urgent need to harmonize legal definitions, procedures
and cooperation at the national and regional levels in accordance
witnesses, and for the
with international standards through an adequate legal
investigation and prosecution of framework.
trafficking offences. In districts • An adequate law enforcement response to trafficking is dependent
where an ATU is not functional, on the cooperation of trafficked persons and other witnesses.
this responsibility will be taken up Law enforcement officials must also be sensitized to the
by the local police station. paramount requirement of ensuring the safety of trafficked
• Protection and rehabilitation: It persons.
requires the central or state • Appropriate protection and support should be extended to all
government to set up Protection trafficked persons without discrimination.
Homes. These would provide • Strategies aimed at preventing trafficking should take into account
root causes like addressing issues like inequality, poverty and all
shelter, food, counselling, and
forms of discrimination and prejudice.
medical services to victims.
• Child victims of trafficking should be provided with appropriate
• Designated courts will be assistance and protection and full account should be taken of their
established in each district to special rights and needs.
provide time-bound (within an • To overcome the problem of lack of awareness about right to
year) judgement. The bill also remedies among the victims of trafficking, legal and other material
provides penalties for various assistance should be provided to trafficked persons to enable them
offences. to realize their right to adequate and appropriate remedies.
• States, intergovernmental and non-governmental organizations
Analysis are responsible for the actions of those working under their
• The bill provides a robust policy authority and are therefore under an obligation to take effective
measures to prevent their nationals and employees from engaging
framework which ties together
in trafficking and related exploitation.
the approaches of prevention,
• International, multilateral and bilateral cooperation can play an
rescue and rehabilitation and also important role in combating trafficking activities. Such cooperation
introduced the concept of is particularly critical between countries involved in different
‘aggravated forms of trafficking’ stages of the trafficking cycle.
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such as begging, child-bearing, administering hormones, etc.
• The bill provides protection to witness as well as confidentiality through in-camera proceedings, video-
conferencing etc along with a provision for time-bound trial.
• It seeks to build the capacity of victims by providing capital, infrastructure, education and skill
development to empower them to access justice and to prevent further trafficking. This will be
accomplished and strengthened through the intelligence apparatus to improve the collection, collation
and dissemination of operational intelligence.
• However, there still remain certain issues that need to be rectified, like-
o It has not been sent to the standing committee as demanded by many.
o It is also believed that it is just rehash of existing laws as section 370 of IPC still exists. The creation of
several anti-trafficking bureaucratic bodies will create confusion in the enforcement of these laws.
o Various vague phrases and provisions like “any propaganda material that promotes trafficking of
person or exploitation of a trafficked person in any manner” provides scope for wider
interpretations which may have impact on freedom of speech and expression.
o It has also been criticised for not being in accordance with the recommendations of the UN Human
Rights Council.
o The provisions without safeguards could result in harassment of transgenders. The use of phrases
such as ‘administration of hormones’ in the Bill can be used to target transgender persons, since
many of them take hormones during their process of gender affirmation.
o Certain provisions such as confiscation of property will hurt those sex workers which are voluntarily
involved in the job. The Bill promotes “rescue raids” by the police and institutionalisation of victims
in the name of rehabilitation.
7.10. MIGRATION
Introduction
Human migration is the movement by people from one place to another with the intention of settling
temporarily or permanently in the new location.
Migration Facts of India
• Feminization of Migration: As per Census 2011, women migrate more than men. It’s majorly between
rural to rural areas (47.4%), followed by urban to urban areas (22.6%), rural to urban areas (22.1%), and
urban to rural areas (7.9%) (see infographic).
• Migrant workforce: In urban areas, about 33% of the male workforce, and 56% of the female workforce is
composed of migrant workers.
• Nature of jobs: In urban areas, 33% of the male migrants work in traditional services (wholesale and retail
trade, hotels, transport), followed by 27% in manufacturing, and 16% in modern services (real estate,
education, health)
• According to Economic Survey 2017-18, growing migration by men is causing Feminisation’ of Agriculture
Sector.
• According to ILO, Migrants, especially migrant women, have higher labour force participation rates than
non-migrants.
• According to World Economic Forum, about 5-6 million migrants are on the move every year in India,
travelling from some of its poorer states to newly emerging urban zones.
Feminisation of Migration
In recent time, shift in migration patterns relates to an increase in the migration of single women and
partnered women who migrate without their families
Causes
• Gender relations and hierarchies within the family context affect the migration of women. Family both
defines and assigns the roles of women, which determine their relative motivation and incentive to
migrate, and controls the distribution of resources and information that can support, discourage, or
prevent migration.
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• Macro Characteristics of Place of Origin, influence gender-specific migration propensities. These
characteristics include, the state of the economy; the types of economies; the level of displacement
caused by economic changes; land tenure laws; etc.
Challenges faced by women migrants
• Lack of Individual Rights: Studies of immigrant women argue that women more often than men are
denied full incorporation; that is, the full civil, political, and social rights and responsibilities that normally
come with membership in a society.
• Work Stigma: Women may have different experiences than men because they are frequently segregated
into traditional "female" occupations, such as domestic work, childcare, or garment manufacturing.
• The existing push and pull factors are also fostering an increase in irregular migration exposing migrant
workers, especially women, to exploitative working conditions and denying them access to legal and
social protection.
• Forced by domestic economic conditions, women are sometimes forced to migrate in search of
employment avenues.
• Cultural Discrimination: Migrant women workers are often seen as aliens and treated as inferiors–
culturally and socially, making them more vulnerable to exploitation and sexual abuse.
Other Challenges faced by migrants
• Access to employment: Certain states have introduced domicile requirements with regard to
employment which puts migrants at a disadvantage.
• Access to benefits: Migrants are registered to claim legal and social entitlements (such as PDS) at their
source location. However, post migration, they lose access to these benefits at the destination. Migrants
may also be missed out in BPL Surveys.
• Denied Substantial Work: Seasonal migrants dominate the low-paying, hazardous and informal market
jobs in key sectors in urban destinations, such as construction, hotel, textile, manufacturing,
transportation, services, domestic work etc.
• Health Issues: They have poor access to health services, which results in very poor occupational health.
• Lack of Skill: large number of migrants find work as unskilled labourers since they enter the job market
at a very early age, experience no upward mobility and remain stuck in the most unskilled, poorly paid
and hazardous jobs for their whole work-life span.
• Lack of credible data on incidence of seasonal migration poses serious constraint in framing an effective
policy. Census and NSS that have a significant impact on policy making also are unable to capture
seasonal and circular migration.
• Voting Right: They are unable to participate in the formal electoral system and are denied a fundamental
citizenship right - their right to vote.
Policy framework for inter-state migrant labour in India
• Migrant workers who largely form the informal labour market escape the safety nets because of the lack
of provisions to recognize their mobile nature and temporary work tenures.
• The migrant specific policies attempted to fill this gap by introducing registration systems to regulate the
inflow of migrant labourers and putting in accountability measures for the employer and contractors.
• The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 was
ground-breaking in this context but exists only on paper and failed to meet the objectives.
o The Act is ridden with formulation flaws like recognition of migrants hired through a contractor only,
no defined direct engagement with the principal employer; lack of provisions for security of
employment; no obligation on the part of the employer or the contractor; or penalties for offence.
• Apart from these flaws within the legislative framework, a major reason for its failure has been the
concurrent nature of social security laws and labour laws in India, which means that they are enacted
and implemented both by the Central government and the state governments.
o The responsibility for the effective enforcement of the provisions of the Act gets dissipated between
the Central, host state and home state governments. Huge variation among Indian states on labour
regimes has acted as a major hurdle in the implementation of such welfare schemes for the migrant
workers.
115
Way Forward
• A review of the existing legislative framework and providing basic guarantees on wage and work
conditions for all workers. A comprehensive law should be brought in for the unorganised sector
workers, which could also provide social protection to such workers.
• PDS should be made portable, and expanded to extend coverage to migrants.
• Resolving Housing Issues by expanding of basic services (water supply, electricity) to all settlements,
provision of wide variety of rental accommodation and provision of dormitories and working women’s
hostels.
• States should move away from the requirement of domicile status to prevent any discrimination in work
and employment for the migrants.
• The vast network of the Post Offices, banking system and Payment Banks, need to be strengthen in
order to reduce the cost of transfer of money and to avoid informal remittances channels.
• Underutilised Construction Workers Welfare Cess Fund should be used to promote rental housing,
working Women Hostels for the benefits of migrants.
• Awareness campaigns should be started aiming at addressing the issue of stereotypes and
misapprehensions about migrants and also encouraging migrants to raise their political voice.
• The challenges of moving into new communities that speak different languages and have different
cultures need to be understood and addressed. Here, the issues of the locals must also be appreciated.
7.11. MOB LYNCHING

Why in news?
Government has set up a high-level committee chaired by the Union Home Secretary Rajiv Gauba to make
recommendations for checking incidents of mob lynching across the country.
Mob Lynching in India
• Mob Lynching or Mob violence is a violent punishment or execution, without following due process of
law, for real or alleged crimes.
• India is perhaps the only place in the world where mobile messaging has led to such a widespread mass
exodus and lynching.
• In September 2017, the Supreme Court had asked states to take strong measures to curb such instances
of violence in the name of cow
Need of a separate law
protection, but not much steps
were taken to that effect. • No existing law: Presently there is no law which criminalizes
• More recently, Supreme Court mob lynching as a separate crime.
denounced the horrendous acts of • Deterrence: A dedicated law would help create enough
mobocracy and gave certain deterrence against such heinous crime.
directions to deal with such crimes. • Ensure governance: The killing of human being by a crowd out
to enforce mob justice puts a dent on democratic society and
o Appointment by states of
questions governance capabilities of the state. Thus, it needs to
senior police officers as nodal be punished.
officers in districts, • Deal with multi-dimensional challenges: such as vigilantism,
o Identification of vulnerable and lynching due to spread of rumor etc.
sensitive regions
However, some experts feel that the lynch mob is a law and order
o More efficient patrolling of
challenge and there are enough provisions in IPC related to murder,
highways in these areas attempt to murder, acts done by several persons in furtherance of
o Lodging of FIRs without delay common intention etc. to tackle such menace if implemented
o Compensation schemes for strongly and effectively.
victims and their families
o Designated fast track courts to try the culprits
o Prompt departmental action against police officers and administrative officials who fail to uphold the
law.
o A special law to be framed by Parliament, creating a separate offence of lynching.
116
Issues with mob lynching
• Against rule of law: The process of adjudication takes place within the courts of justice, and not on the
streets.
• Against human rights: The lynching by mob create an atmosphere where human beings are
dehumanised, freedom of speech, expression and personal choices are endangered and plurality and
diversity is not accepted.
• Fuel communalism and casteism: as in most cases, victims are the most vulnerable people of society -
nomadic tribes, religious minorities, lower castes etc.
• No database to analyse trends: As per Ministry of Home Affairs there is no record keeping on public
lynching. Thus, making it difficult to draw conclusions and possible solutions to the problem.
• Rise in causes that fuel the tendency towards such incidents
o Loss of faith of people in the judicial/democratic system of governance especially the poor and
marginalized. So they are tempted to deliver instant justice in their own ways.
o Socio-political framework: it involves people with little or no education, deep fissures and mistrust,
political patronage to achieve narrow political gains, rising intolerance and growing polarization.
o Misinformation and propagandas spread through platforms like Facebook, WhatsApp: For e.g.
recent rumours regarding child lifters have incited many impulsive and unplanned acts of violence
across the country.
o The incapability/unwillingness of law enforcement agencies to act against mob crimes further
encourages it to take the law into their own hands frequently. Public officials and police
departments should be held accountable for showing incompetence rather than putting onus on
social media platforms completely
o Dispersion of responsibility and guilt unlike sense of responsibility in individual action.
Way forward
• Setting example and ensuring prosecution and punishment: Mob lynching points to a disruption that
reflects the loss of trust in state capabilities in justice delivery. Thus, such reiterative brutality and
assaults on personal liberty and the right to life needs to be suppressed and punished so that
perpetrators know that they would not be able to get away with it.
• Focus needed on social/attitudinal change: through reaching out to local communities to keep peace
and check trouble makers from spreading rumours, creating awareness regarding misuse of social media
by mass campaigns with help of civil society etc.
• Strengthening administration and governance to ensure public confidence in state institutions: by
strengthening local intelligence networks, swifter response from police, proactive flagging of rumors.
• Holding Social media platforms accountable: WhatsApp should change its platform to enable privacy in
messages between individuals and tracking identity where forwarded message is to public.
• Adopt innovative practices as adopted in various states: For example
o Telangana police has trained a team of 500 police officers to tackle the fake news menace. These
officers go to villages to spread awareness about social issues. Police personnel have also been
added to local WhatsApp groups in villages to spot rumors that could lead to violence.
o The West Bengal police took to Twitter to dispel a rumor that government had sanctioned a five-day
holiday on account of Eid, nixing attempts to incite communal tension.
7.12. THE RTE AMENDMENT BILL, 2017

Why in News?
Recently, in the monsoon session Lok Sabha passed the amendment to The Right of Children to Free and
Compulsory Education (second amendment) Bill, 2017 to abolish the ‘No- Detention’ policy in schools.
Background
• The 86th Constitution Amendment Act, 2002 requires the State to provide free and compulsory
elementary education to all children. The Right of Children to Free and Compulsory Education (RTE) Act,
2009 seeks to give effect to this Amendment under which all children between the ages of 6 and 14 years
have the right to elementary education (class 1-8) in a neighbourhood school.
117
• The Section 30 (1) of the RTE Act states that a child cannot be detained in any class till the completion of
elementary education.
• In recent years, two expert committees-Geeta Bhukkal (2014) and TSR Subramanian (2016)- reviewed
the no-detention provision in the RTE Act and recommended it be removed or be discontinued in a
phased manner.
• As per the amendment bill, regular examination will be held in Classes 5 and 8 and if a child fails there is a
provision to give her additional opportunity to take a re-examination within two months. If she fails
again in the re-examination, the relevant Central or State Government may decide to allow schools to
detain the child.
Arguments against No Detention Policy
• No incentives for children to learn and for the teachers to teach: there is no provision under RTE Act to
ensure objective measurement of learning outcomes through criteria such as attendance, test scores or
examinations at the end of every class and thus automatic promotion reduces incentives for both
children and teachers.
• Children become non-serious, inattentive to studies and irregular in attendance: for many students the
Mid Day Meal is the only incentive, thus though No detention policy resulted in significant increase in
enrollment, there has been little or no improvement in academic standards or quality of education.
• Students lack required educational competence, knowledge and skills relevant to higher classes: thus
their poor performance further enhances in every subsequent class. Moreover, promoting laggards
drags down the standard of the whole class and handicaps the teacher’s ability to teach the curriculum
at the expected pace which is unfair to the majority of the students in the class.
• Increases the pressure and tension on the child: Failing to ensure that child learns fundamentals of
language (mother tongue) and basic arithmetic in primary classes increases the pressure and tension on
the child and she may start drifting away from regular schooling system.
• Reduction of dropout rate is an artificial construct and illusion created by No detention policy:
Automatic promotion of children only rolls over and postpones the problem of dropouts as seen from
shoot up of dropouts in class 8 at the end of elementary stage.
• Number of students failing in class 9 examinations has been on increase in many states: In Delhi, for
instance, the number of repeating students as a percentage of total students enrolled in Class 9 rose
from 2.8% in 2010 to 13.4% in 2014, thus resulting in many states demanding a review of no detention
policy.
Arguments for the No Detention Policy
• Detaining children at the elementary level damages their self-esteem and give them a permanent
inferiority complex: The social stigma associated with “failing”, has deeply damaging effects on the
psyche of the child.
• Detention leads to increased dropouts and rise in number of social problems: Fear of failing in
examinations and being detained has a detrimental effect on curricular learning for children. Detention
leads to children dropping out of school and taking to vagrancy, begging and petty crime. On the other
hand, keeping children in school prevents a host of social problems, including juvenile delinquency and
child marriage.
• Detention makes a child repeat entire syllabus of the class: However, instead of detaining and repeating
the same whole material again for another nine months, weaker areas of the child can be selectively
targeted to cover the gaps in two or three months.
• Learning as a continuous process: Learning takes place in a continuum and any pass or fail
categorization at a particular point of time is a narrow simplification and educationally invalid.
• Issues with poor and vulnerable children: In rural areas and among below poverty line families,
educational awareness is missing which often result in late admissions in the schools. In other cases,
children miss school for long periods due to poverty, illness, engagement in child labour and thus lag
behind in their studies, performing badly in the examination. Detention will only aggravate these
weaknesses and encourage them to drop out and remain unschooled forever.
• Steady rise in the GER at the elementary level for the marginalized sections of the society: for both
boys and girls, as well as for Scheduled Castes, Tribes and other marginalised sections since the coming
into effect of the no-detention policy. In a deeply fragmented society such as India, this is a significant
gain which should not be reversed.
118
Way Forward
• Education should be inclusive and should have a common curriculum, so that all children become familiar
with the basic concepts, tenets, principles and ethos of an Indian education.
• Detention should be resorted to only after giving the child remedial coaching and at least two extra
chances to prove his capability.
• As recommended by TSR Subramanian committee if a child again fails to clear the examination, she
should also be given other opportunities of pursuing her education through a vocational stream so that
she can demonstrate her abilities and competencies elsewhere.
• Advances in technology must provide an additional ‘augmentation’ avenue to help the slow-learner child
makeup for the lost ground.
• Simultaneously other significant areas such as teacher training, quality and accountability mechanisms
must be improved in a holistic manner.
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MAINS 365 - UPDATION

JULY – AUGUST 2018

3.4. Affordable Housing in India _________ 42 6.3. Digital Gender Gap_________________ 93

Copyright © by Vision IAS

Right to privacy Right to Information

Conflict between Right to Privacy and Right to Information

1.2. PROSECUTION UNDER BENAMI ACT STUCK

1.4. CENTRAL CIVIL SERVICES (CONDUCT) RULES, 1964

1.5. NATIONAL REGISTER OF CITIZENS (NRC)

1.7. CONTEMPT OF COURT ACT, 1971

1.9. NON-PERFORMING NGOS

1.10. LEGALISING SPORTS BETTING IN INDIA

1.11. FUGITIVE ECONOMIC OFFENDERS BILL (FEOB), 2018

2.2. INDIA-SOUTH KOREA

2.4. BRICS SUMMIT

2.5. INDIAN AID TO SAARC

2.6. TRADE WARS

• Economic hardship: People also emigrates

Successes of UN Peacekeeping Operations Major Failures of UN Peacekeeping Operations

Extent of Financial Inclusion in India

RBI Committee (Deepak Mohanty) recommendations

3.2. WAGE INEQUALITY IN INDIA

3.3. RYTHU BANDHU SCHEME

3.3.1. UNIVERSAL BASIC INCOM E V/S TARGETED TRANSFER SCH EMES

3.4. AFFORDABLE HOUSING IN INDIA

3.5. MGNREGA AND LABOUR CRISIS

3.6. DIGITIZING LAND RECORDS IN INDIA

3.7. MUNICIPAL BONDS

3.8. PROJECT SASHAKT

3.9. GLOBAL DIGITAL TAX RULES

3.10. FALLING RUPEE

3.12. IMPACT OF CHINESE GOODS ON INDIAN INDUSTRY

3.13. DRAFT E-COMMERCE POLICY

3.14. NATIONAL ALUMINIUM POLICY

3.15. UNCONVENTIONAL HYDROCARBONS

3.16. UNIFIED METROPOLITAN TRANSPORT AUTHORITY (UMTA)

3.17. DIGITAL PAYMENT

4.2. DATA PROTECTION

4.3. STRATEGIC PARTNERSHIP MODEL

4.4. BORDER AREA DEVELOPMENT PROGRAMME (BADP)

Dam Management in India

5.2. MONSOON FORECASTING

5.3. GANGA DRYING UP IN SUMMERS

5.4. RE-WATER RESEARCH CENTER

5.5. REGULATING HIGH SEAS

5.7. PRIVATE PARTICIPATION IN WILDLIFE CONSERVATION

6.4. DEEP SEA EXPLORATION

6.5. GAGANYAAN MISSION

7.2. HARASSMENT OF WOMEN AT WORKPLACE

7.3. WITCH HUNTING

7.4. DECRIMINALISING ADULTERY

7.5. STUDY ON TRANSGENDERS

7.6. SECTION 377 DECRIMINALIZED

7.7. DEVELOPMENT INDUCED DISPLACEMENT OF TRIBALS

7.9. THE TRAFFICKING OF PERSONS BILL, 2018

7.11. MOB LYNCHING

7.12. THE RTE AMENDMENT BILL, 2017

Copyright © by Vision IAS

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3.4. Affordable Housing in India _ 42 6.3. Digital Gender Gap_________ 93