Category: Burning Issues

  • [Burning Issue] The Code on Social Security, 2019

     

     

     

    • The government has embarked on a mission to amalgamate about 40 labour laws into four Labour Codes with a view to rationalise and simplify the provisions and facilitate ease of compliance.
    • The Code on Social Security, 2019 was introduced last year in Lok Sabha by the Minister of State for Labour and Employment.
    • It replaces nine laws related to social security, including:
    1. Employees’ Provident Fund Act, 1952,
    2. Maternity Benefit Act, 1961, and
    3. Unorganised Workers’ Social Security Act, 2008

    What is Social Security?

     

     

    • Social security is “any government system that provides monetary assistance to people with an inadequate or no income”.
    • It refers to the action programs of an organization intended:
    1. to promote the welfare of the population through assistance measures guaranteeing access to sufficient resources for food and shelter and
    2. to promote health and well-being for the population at large and potentially vulnerable segments such as children, the elderly, the sick and the unemployed.
    • Services providing social security are often called social services.

    Why need Social Security?

    • India has a very basic social security system catering to a fairly small percentage of the country’s workforce.
    • Traditionally, Indians relied on their extended families for support in the event of illness or other misfortunes.
    • However, due to migration, urbanization, and higher social mobility, family bonds are less tight and family units much smaller than they used to be.
    • So far, neither the state nor private insurance companies have quite stepped up to fill this gap.

    Social Security System in India

    • India’s social security system is composed of a number of schemes and programs spread throughout a variety of laws and regulations.
    • Keeping in mind, however, that the government-controlled social security system in India applies to only a small portion of the population.
    • Furthermore, the social security system in India includes not just an insurance payment of premiums into government funds (like in China), but also lump sum employer obligations.

    Generally, India’s social security schemes cover the following types of social insurances:

    • Pension
    • Health Insurance and Medical Benefit
    • Disability Benefit
    • Maternity Benefit
    • Gratuity

    While a great deal of the Indian population is in the unorganized sector and may not have an opportunity to participate in each of these schemes, Indian citizens in the organized sector (which include those employed by foreign investors) and their employers are entitled to coverage under the above schemes.

    Its loopholes

    • With about 22 percent of India’s population living below the poverty line, the “unorganized” sector, i.e. enterprises — mainly in agriculture, which are not legally covered by any form of social security, is disproportionately large.
    • Social Security is more than just a retirement program. It provides important life insurance and disability insurance protection as well.
    • Retirement benefits aren’t much progressive to keeps up with increasing cost of living.

     

    The Code on Social Security, 2019

     

    Need for an unified Law

    • Most of the central labour laws were enacted between the 1920s and 1970s. These codes were created in conformity with the requirements of the workers of that period.
    • However, things have changed dramatically today.
    • Many of the earlier laws have become archaic which has been creating hurdles for the employers to create new employment opportunities.
    • Even the workers find it very difficult to get efficient social security benefits on time.
    • The current objective of the bill is to cover each and every worker within a robust social security net. At the same time, Bill aims to help employers in creating new jobs.
    • Hence, this bill will create an environment for the employers and workers to come together.

    The code has 163 clauses, divided into 14 chapters in addition to six schedules on the procedural aspects. It replaces the existing nine laws on social security. They are-

    1. Employee’s Compensation Act, 1923;
    2. Employee’s State Insurance Act, 1948;
    3. Employees’ Provident Funds and Miscellaneous Provisions Act, 1952;
    4. Maternity Benefit Act, 1961;
    5. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959;
    6. Payment of Gratuity Act, 1972;
    7. Cine Workers Welfare Fund Act, 1981;
    8. Building and Other Construction Workers Cess Act, 1996;
    9. Unorganized Workers’ Social Security Act, 2008.

     

    Major Highlights of the Code

    Wage definition widened

    • The definition of wages has three parts to it –
    1. an inclusion part,
    2. specified exclusions with limits and
    3. benefits in kind
    • All remuneration expressed in monetary terms is wage and includes basic pay, dearness allowance and retaining allowance.
    • Specific exclusions are statutory bonuses, PF, pension and gratuity, house rent and conveyance allowances etc. which cannot exceed 50 per cent of total remuneration.
    • Remuneration provided in-kind will be included to the extent of 15 per cent of total wages.
    • Overall this will ensure that wages for social security benefits will be at least 50 per cent of overall compensation.

    Social security organisations

    • The Code provides for the establishment of several bodies to administer the social security schemes.  
    • These include:
    1. a Central Board of Trustees, headed by the Central Provident Fund Commissioner, to administer the EPF, EPS and EDLI Schemes,
    2. an Employees State Insurance Corporation, headed by a Chairperson appointed by the central government, to administer the ESI Scheme,
    3. national and state-level Social Security Boards, headed by the central and state Ministers for Labour and Employment, respectively, to administer schemes for unorganised workers, and
    4. state-level Building Workers’ Welfare Boards, headed by a Chairperson nominated by the state government, to administer schemes for building workers.

    Social security fund

    • The Bill proposes setting up a social security fund using corpus available under corporate social responsibility.
    • This fund will provide welfare benefits such as a pension, medical cover, death and disablement benefits to all workers, including gig workers.

    Reducing employee PF contribution

    • The bill provides for an option of reducing provident fund contribution (currently at 12% of basic salary) and therefore increases workers take-home pay.
    • The rationale for allowing lower employee PF contribution is that higher take-home pay may boost consumption. The Bill, however, retains employers’ PF contribution at 12%.

    Gratuity for fixed-term contract workers

    • Currently, workers are not entitled to gratuity before completing five years of continuous service. The bill says that fixed-term contract workers will be eligible for gratuity on a pro-rata basis.
    • It proposes to offer gratuity to fixed term employees after one year of service on a pro-rata basis as against the current practice of five years.

    Exemption

    • It will empower the central government to exempt select establishments from all or any of the provisions of the code and makes Aadhaar mandatory for availing benefits under various social security schemes.

    Insurance, PF, life cover for unorganized sector employees:

    • Central Government shall formulate and notify suitable welfare schemes for unorganised workers on matter relating to life and disability cover; health and maternity benefits; old age protection; and any other benefit as may be determined by the central government.

    Gig Workers

    • In addition, the central or state government may notify specific schemes for gig workers, platform workers, and unorganised workers to provide various benefits, such as life and disability cover.
    • Gig workers refer to workers outside of the traditional employer-employee relationship (e.g., freelancers). 
    • Platform workers are workers who access other organisations or individuals using online platforms and earn money by providing them with specific services. 
    • Unorganised workers include home-based and self-employed workers. 

    Coverage and registration

    • The Code specifies different applicability thresholds for the schemes.  For example, the EPF Scheme will apply to establishments with 20 or more employees. 
    • The ESI Scheme will apply to certain establishments with 10 or more employees, and to all establishments which carry out hazardous or life-threatening work notified by the central government.  
    • These thresholds may be amended by the central government.  All eligible establishments are required to register under the Code, unless they are already registered under any other labour law. 

    Contributions

    • The EPF, EPS, EDLI, and ESI Schemes will be financed through a combination of contributions from the employer and employee.  
    • For example, in the case of the EPF Scheme, the employer and employee will each make matching contributions of 10% of wages, or such other rate as notified by the government. 
    • All contributions towards payment of gratuity, maternity benefit, cess for building workers, and employee compensation will be borne by the employer. 
    • Schemes for gig workers, platform workers, and unorganised workers may be financed through a combination of contributions from the employer, employee, and the appropriate government.  

    Offences and penalties

    The Code specifies penalties for various offences, such as:

    • the failure by an employer to pay contributions under the Code after deducting the employee’s share, punishable with imprisonment between one and three years, and fine of one lakh rupees, and
    • falsification of reports, punishable with imprisonment of up to six months. 

     

    Advantages of the unified Law

    The Code is a break from numerous and archaic social security laws. Major promising features of the Code are:

    • The social safety-related laws had indeed become outdated in today’s environment. For example, online platform workers such as Ola, Uber etc. were not covered in the previous laws. The Social security code Bill, 2019 covers all those workers.
    • The ambit of this social security code is truly large as it covers not only the number of employees which an organization has (if it more than 10, it will come under the social security laws) but the workers involved in hazardous nature of work will be also be covered under the act.
    • At the same time, through code on social security, the regulatory regime would be less problematic for the employers and employees. For example, an inspector, under the new code, cannot open an EPFO (Employees’ Provident Fund Organisation) record of more than five years.
    • Under the Code, the central government may notify various social security schemes for the benefit of workers. These include an Employees’ Provident Fund (EPF) Scheme, an Employees’ Pension Scheme (EPS), and an Employees’ Deposit Linked Insurance (EDLI) Scheme.

    Criticisms

    • There is no uniform definition of “social security”, nor is there a central fund. The corpus is proposed to be split into numerous small funds creating a multiplicity of authorities and confusion.
    • It is not clear how the proposed dismantling of the existing and functional structures, such as the Employees’ Provident Fund Organisation (EPFO) with its corpus of ₹10 lakh crore — which will be handed over to a government-appointed central board — is a better alternative.
    • Crucial categories such as “workers”; “wages”; “principal-agent” in a contractual situation; and “organised-unorganised” sectors have not been clearly defined.
    • This will continue to impede the extension of key social security benefits such as PF, gratuity, maternity benefits, and healthcare to all sections of workers.
    • The Bill welcomes aboard large sections of the workforce — “gig workers” such as those working in taxi aggregate companies like Uber and Ola.
    • But how exactly the government proposes to facilitate their access to PF or medical care is not clear.

    Conclusion

    Social Security protects people against a variety of risks to ensure them a basic floor of income in old age and to enable many people who have struggled all their lives to look forward to a decent standard of comfort and dignity when they retire.

    • Though it needs to be passed in the parliament, the Code on Social Security, 2019 is a robust arrangement to effect economy, efficiency, and effectiveness in the working of the social security regime.
    • The inclusion of unorganised sector is a welcome step as the economy right now is service sector dominated.
    • Further positive changes too must be looked forward as they are in the long run are helpful to the wide sections.

    Way Forward

    • The Code on Social Security is clearly a move in the right direction to rationalise and consolidate social security related labour laws.
    • It is critical for employers to analyse the impact of the Code and the compliances thereunder in order to be able to undertake a smooth transition as and when the Code becomes a law.
    • The code is giving a robust and efficient coverage of social security to each and every worker of the country.
    • The code gives lot of respite to the employer from the rigidity of laws and whims and wishes from the law enforcement agencies.
    • This code takes the labour reforms from the manufacturing sector space to the services sector and this transition will cater to the large section of workers contributing to the share of GDP.

     

     




    References

    https://prsindia.org/billtrack/code-social-security-2019

    https://www.india-briefing.com/news/introduction-social-security-system-india-6014.html/

    https://vikaspedia.in/social-welfare/social-security?pid=3833&pageno=2&size=10

    https://www.businesstoday.in/opinion/columns/social-security-bill-code-on-social-security-2019-employees-gratuity-protect-epf-dues/story/396102.html

  • [Burning Issue] The US-Taliban Peace Agreement

    The fragile peace deal between the United States and the Taliban appeared to hang in the balance as the U.S. Defense Department announced its first airstrike against Taliban forces in 11 days and bitter disagreements between the radical Islamist movement and the Afghan government, as well as internal divisions in Kabul, threatened to nullify the pact.

    Context

    • The deal signed between the U.S. and the Taliban sets the stage for America to wind down the longest war in its history.
    • It went into Afghanistan in October 2001, a few weeks after the 9/11 terror attacks, with the goals of defeating terrorists and rebuilding and stabilising the central Asian country.
    • Almost 19 years later, the U.S. seeks to exit Afghanistan with assurances from the Taliban that the insurgents will not allow Afghan soil to be used by transnational terrorist groups such as al-Qaeda and that they would engage the Kabul government directly to find a lasting solution to the civil war.

     

    Why did the US quit?

    • America’s desperation is understandable.
    • The Afghan war is estimated to have cost $2-trillion, with more than 3,500 American and coalition soldiers killed. Afghanistan lost hundreds of thousands of people, both civilians and soldiers.
    • After all these, the Taliban is at its strongest moment since the U.S. launched the war.
    • The insurgents control or contest the government control in half of the country, mainly in its hinterlands.
    • The war had entered into a stalemate long ago and the U.S. failed to turn it around despite both Presidents Barack Obama and Donald Trump having sent additional troops.

    Background of The Taliban

    The Taliban ( literally meaning “students”) or Taleban, who refer to themselves as the Islamic Emirate of Afghanistan (IEA) are a Sunni Islamic fundamentalist political movement and military organization in Afghanistan currently waging war (an insurgency, or jihad) within that country.

    Its Birth

    • After the Soviet Union intervened and occupied Afghanistan in 1979, Islamic mujahideen fighters engaged in war with those Soviet forces.
    • A while later, the US CIA and the Saudi General Intelligence Directorate (GID) funnelled funding and equipment through the Pakistani Inter-Service Intelligence Agency (ISI) to the Afghan mujahideen
    • About 90,000 Afghans, including  several bountied terrorists were trained by Pakistan’s ISI during the 1980s.
    • Hence it can be concluded that the Taliban have arisen from those US-Saudi-Pakistan-supported mujahideen: The West helped the Taliban to fight the Soviet takeover of Afghanistan.

    Its ideology

    • Early Taliban were motivated by the suffering among the Afghan people, which they believed resulted from power struggles between Afghan groups not adhering to the moral code of Islam; in their religious schools they had been taught a belief in strict Islamic law.
    • The military ambitions of the afghans led to its the infamous civil war from 1992-96 which ultimately demanded a political emirate.

    9-11

    • The United States invasion of Afghanistan occurred after the September 11 attacks in late 2001 and was supported by close US allies.
    • Its public aims were to dismantle al-Qaeda and deny it a safe base of operations in Afghanistan by removing the Taliban from power.
    • US President George W. Bush demanded that the Taliban hand over Osama bin Laden and expel al-Qaeda; bin Laden had already been wanted by the FBI since 1998.
    • The Taliban declined to extradite him unless given what they deemed convincing evidence of his involvement in the 9/11 attacks and ignored demands to shut down terrorist bases and hand over other terrorist suspects apart from bin Laden.
    • The US demand was dismissed by the Taliban with meaningless delaying tactics. Disgusted with it, the US launched Operation Enduring Freedom on October 7, 2001.

    India and the Taliban

    • India and the Taliban have had a bitter past.
    • New Delhi nurses bitter memories from the IC-814 hijack in 1999, when it had to release terrorists — including Masood Azhar who founded Jaish-e-Mohammed that went on to carry out terror attacks as such on Parliament, Pathankot and in Pulwama.
    • Quite predictably, Mullah Baradar did not name India among the countries that supported the peace process, but specially thanked Pakistan for the “support, work and assistance” provided.
    • The Taliban perceived India as a hostile country, as India had supported the anti-Taliban force Northern Alliance in the 1990s.
    • India never gave diplomatic and official recognition to the Taliban when it was in power during 1996-2001.
    • But its foreign policy establishment has shied away from engaging with the Taliban directly.

    The deal

    • The US and Taliban signed an agreement for “Bringing Peace to Afghanistan”, which will enable the US and NATO to withdraw troops in the next 14 months.
    • The pact is between the Islamic Emirate of Afghanistan (which is not recognized by the United States as a state and is known as the Taliban) and the US.
    • The four-page pact was signed between Zalmay Khalilzad, US Special Representative for Afghanistan Reconciliation, and Mullah Abdul Ghani Baradar, political head of the Taliban.

    Key elements of the deal

    Troops Withdrawal

    • The US will draw down to 8,600 troops in 135 days and the NATO or coalition troop numbers will also be brought down, proportionately and simultaneously.
    • And all troops will be out within 14 months — “all” would include “non-diplomatic civilian personnel” (could be interpreted to mean “intelligence” personnel).

    Taliban Commitment

    • The main counter-terrorism commitment by the Taliban is that “It will not allow any of its members, other individuals or groups, including al-Qaeda, to use the soil of Afghanistan to threaten the security of the US and its allies”.
    • While Miller said the reference to al-Qaeda is important, the pact is silent on other terrorist groups — such as anti-India groups Lashkar-e-Toiba or Jaish-e-Mohammed.
    • Again, India, not being an US ally, is not covered under this pact.

    Sanctions Removal

    • UN sanctions on Taliban leaders to be removed by three months (by May 29) and US sanctions by August 27.
    • The sanctions will be out before much progress is expected in the intra-Afghan dialogue.

    Prisoner’s release

    • This is a possible trouble spot because the US-Taliban agreement and the joint declaration differ, and it is not clear whether the Ashraf Ghani-led government is on board with this big up-front concession to Taliban.
    • The joint declaration says the US will facilitate discussion with Taliban representatives on confidence building measures, to include determining the feasibility of releasing significant numbers of prisoners on both sides.
    • While there are no numbers or deadlines in the joint declaration, the US-Taliban pact says up to 5,000 imprisoned Taliban and up to 1,000 prisoners from “the other side” held by Taliban “will be released” by March.
    • The intra-Afghan negotiations are supposed to start in Oslo.

    Ceasefire

    • This is identified as another potential “trouble spot”.
    • The agreement states ceasefire will be simply “an item on the agenda” when intra-Afghan talks start, and indicate actual ceasefire will come with the “completion” of an Afghan political agreement.

    Implications of the Deal: An analysis

     

    Faced with no other way, the U.S. just wanted to leave Afghanistan. But the problem is with the way it is getting out.

    A bad deal indeed

    • The fundamental issue with the U.S.’s Taliban engagement is that it deliberately excluded the Afghan government because the insurgents do not see the government as legitimate rulers.
    • By giving in to the Taliban’s demand, the U.S. has practically called into question the legitimacy of the government it backs.
    • Second, the U.S. has made several concessions to the Taliban in the agreement. The Taliban was not pressed enough to declare a ceasefire. Both sides settled for a seven-day “reduction of violence” period before signing the deal.
    • The U.S., with some 14,000 troops in Afghanistan, has committed to pull them out in a phased manner in return for the Taliban’s assurances that it would sever ties with other terrorist groups and start talks with the Kabul government.
    • But the Taliban, whose rule is known for strict religious laws, banishing women from public life, shutting down schools and unleashing systemic discrimination on religious and ethnic minorities, has not made any promises on whether it would respect civil liberties or accept the Afghan Constitution.

     

    An adieu to democracy in Afghanistan

    • The Taliban have got what they wanted: troops withdrawal, removal of sanctions, release of prisoners.
    • This has also strengthened Pakistan, Taliban’s benefactor, and the Pakistan Army and the ISI’s influence appears to be on the rise.
    • It has made it unambiguous that it wants an Islamic regime.
    • The U.S., in a desperate bid to exit the Afghan war, has practically abandoned the Kabul government and millions of Afghans who do not support the Taliban’s violent, tribal Islamism, to the mercy of insurgents.
    • The future for the people of Afghanistan is uncertain and will depend on how Taliban honours its commitments and whether it goes back to the medieval practices of its 1996-2001 regimes.

    Being the all-time loser

    • Afghanistan being rugged and mountainous, ethnically heterogeneous, and poorly developed; foreign powers are intervening on both sides of the conflict.
    • The Taliban got what it wanted — the withdrawal of foreign troops — without making any major concession.
    • The U.S. withdrawal will invariably weaken the Kabul government, altering the balance of power both on the battlefield and at the negotiating table.
    • All of these factors are known to extend the duration of insurgencies, and the civil war has indeed been going on seemingly forever.
    • The US-Taliban deal will not change this situation. Additionally, this deal is only between the United States and the Taliban.

    Best served American vendetta

    • The deal does little to change either the circumstances in Afghanistan or the trajectory of the possible outcomes.
    • What it does do is give the White House is a pretext for withdrawing US forces from Afghanistan, a move that virtually ends 19 years war.
    • The deal technically qualifies as one step down the path to a potential peace deal for the Afghan civil war.
    • The US was never going to build a functioning liberal democracy with a Western-style military in Afghanistan.
    • It better recognized its defeat and considered not to sacrifice more American soldiers and inflict more suffering on the Afghan people.
    • Although Trump, in an election year, will likely try to sell this as a peace deal and an end to America’s longest war, this deal is unlikely to deliver either of those things.

    Implications for India

    • India has been backing the Ghani-led government and was among very few countries to congratulate Ghani on his victory.
    • India’s proximity to Ghani also drew from their shared view of cross-border terrorism emanating from Pakistan.
    • There has not been formal contact with top Taliban leaders, the Indian mission has a fair amount of access to the Pashtun community throughout Afghanistan through community development projects of about $3 billion.
    • Due to So, although Pakistan military and its ally Taliban have become dominant players in Kabul’s power circles, South Block insiders insist that it is not all that grim for New Delhi.
    • These high-impact projects, diplomats feel India has gained goodwill among ordinary Afghans, the majority of whom are Pashtuns and some may be aligned with the Taliban as well.

     

    Conclusion

    • Terrorism safe havens are mostly a myth.
    • Failed states and ungoverned territory do produce more terrorism within that space, but terrorists rarely travel beyond the immediate borders of these spaces and almost never travel beyond the immediate region.
    • Post-9/11 efforts to limit the transnational flow of resources and known terrorists have inhibited the ability of terrorists to strike out, and can continue to do so without a military presence in Afghanistan.
    • Some are concerned that the withdrawal of military forces will inhibit counterterrorism efforts in Afghanistan.
    • However, the current strategy of seeking and destroying terrorist members is not particularly effective against groups as institutionalized and financially secure as either Al Qaeda or even the Taliban.
    • These organizations easily replace lost members without significant disruptions to operations.

    Way Forward

    • The US military presence itself was one of the biggest inhibitors to peace in Afghanistan, as the widely unpopular Taliban rely on the fight against a foreign occupation as their primary source of legitimacy.
    • It was always incompetent to consider that military interventions were the best, or only, tool to pursue these interests. But after the 19 years of war, sudden exit will do more harm.
    • The deal may not change much on the ground, but if peace was the immediate requirement, an indefinite US military presence would have never achieved it..
    • Much will depend on whether the US and the Taliban are able to keep their ends of the bargain, and every step forward will be negotiated, and how the Afghan government and the political spectrum are involved.
    • Diplomatic, policing, and intelligence cooperation with countries that border Afghanistan can help to contain terrorist groups and inhibit their ability to travel beyond the region.

     

     




    References

    Explained: US-Taliban Pact

    https://www.thenation.com/article/world/us-taliban-peace-deal/

    https://www.thehindu.com/opinion/editorial/a-big-bad-deal-the-hindu-editorial-on-us-taliban-agreement/article30957934.ece

     

  • [Burning Issue] The Surrogacy (Regulation) Bill, 2020

     

     

    Surrogacy in India and Indian surrogates became increasingly popular amongst intended parents in industrialized nations because of the relatively low costs and easy access offered by Indian surrogacy agencies.

    Before commercial surrogacy was banned in 2015, India was a popular destination for surrogacy.

    The economic scale of surrogacy in India is unknown, but study backed by the United Nations in July 2012 estimated the business at more than $400 million a year, with over 3,000 fertility clinics across India.

    Context

    • The Union Cabinet recently approved the Surrogacy (Regulation) Bill, 2020 which allows any “willing” woman to be a surrogate mother and proposes that widows and divorced women can also benefit from its provisions, besides infertile Indian couples.
    • The bill incorporates all recommendations made by a Rajya Sabha select committee, which studied an earlier version of the draft legislation.
    • The bill establishes a liberal view on the issues of reproductive rights of women, be it medical termination of pregnancy, the Assisted Reproductive Technology Regulation Bill.

     What are the new Amendments?

    It allows any “willing” woman to be a surrogate mother and proposes that widows and divorced women can also benefit from its provisions, besides infertile Indian couples.

    The bill proposes to regulate surrogacy by establishing National Surrogacy Board at the central level and, State Surrogacy Board and appropriate authorities in states and UTs respectively.

    The proposed insurance cover for surrogate mother has now been increased to 36 months from 16 months provided in the earlier version.

    Ethical surrogacy will be allowed on fulfilment of certain conditions  to lndian married couples, Indian-origin married couples and Indian single woman (only widow or divorcee between the age of 35 and 45 years).

    Various provisions of the 2019 Bill 

     

    Background

    • The Surrogacy (Regulation) Bill, 2019 was introduced by the Minister of Health and Family Welfare in Lok Sabha in July 2019.
    • The Bill defined surrogacy as a practice where a woman gives birth to a child for an intending couple with the intention to hand over the child after the birth to the intending couple.

    Regulation of surrogacy

    • The Bill prohibited commercial surrogacy but allowed altruistic surrogacy.
    • Altruistic surrogacy involves no monetary compensation to the surrogate mother other than the medical expenses and insurance coverage during the pregnancy.
    • Commercial surrogacy includes surrogacy or its related procedures undertaken for a monetary benefit or reward (in cash or kind) exceeding the basic medical expenses and insurance coverage.

    Purposes for which surrogacy is permitted

    Surrogacy is permitted when it is:

    1. for intending couples who suffer from proven infertility
    2. altruistic
    3. not for commercial purposes
    4. not for producing children for sale, prostitution or other forms of exploitation and
    5. for any condition or disease specified through regulations

    Eligibility criteria for intending couple

    • The intending couple should have a ‘certificate of essentiality’ and a ‘certificate of eligibility’ issued by the appropriate authority.
    • A certificate of essentiality will be issued upon fulfilment of the following conditions:
    1. A certificate of proven infertility of one or both members of the intending couple from a District Medical Board;
    2. An order of parentage and custody of the surrogate child passed by a Magistrate’s court; and
    3. Insurance coverage for a period of 16 months covering postpartum delivery complications for the surrogate.

    Preconditions for Eligibility

    The certificate of eligibility to the intending couple is issued upon fulfilment of the following conditions:

    1. the couple being Indian citizens and married for at least five years;
    2. between 23 to 50 years old (wife) and 26 to 55 years old (husband);
    3. they do not have any surviving child (biological, adopted or surrogate); this would not include a child who is mentally or physically challenged or suffers from life-threatening disorder or fatal illness; and
    4. other conditions that may be specified by regulations.

    Eligibility criteria for surrogate mother

    To obtain a certificate of eligibility from the appropriate authority, the surrogate mother has to be:

    • a close relative of the intending couple;
    • a married woman having a child of her own;
    • 25 to 35 years old;
    • a surrogate only once in her lifetime; and
    • possess a certificate of medical and psychological fitness for surrogacy.  Further, the surrogate mother cannot provide her own gametes for surrogacy.

    Appropriate authority

    • The central and state governments shall appoint one or more appropriate authorities within 90 days of the Bill becoming an Act.
    • The functions of the appropriate authority include;
    1. granting, suspending or cancelling the registration of surrogacy clinics;
    2. enforcing standards for surrogacy clinics;
    3. investigating and taking action against breach of the provisions of the Bill;
    4. recommending modifications to the rules and regulations.

    Registration of surrogacy clinics

    • Surrogacy clinics cannot undertake surrogacy related procedures unless they are registered by the appropriate authority.
    • Clinics must apply for registration within a period of 60 days from the date of appointment of the appropriate authority.

    National and State Surrogacy Boards

    • The central and the state governments shall constitute the National Surrogacy Board (NSB) and the State Surrogacy Boards (SSB), respectively.
    • Functions of the NSB include:
    1. advising the central government on policy matters relating to surrogacy;
    2. laying down the code of conduct of surrogacy clinics; and
    3. supervising the functioning of SSBs.

    Parentage and abortion of surrogate child

    • A child born out of a surrogacy procedure will be deemed to be the biological child of the intending couple.
    • An abortion of the surrogate child requires the written consent of the surrogate mother and the authorisation of the appropriate authority.
    • This authorisation must be compliant with the Medical Termination of Pregnancy Act, 1971.
    • Further, the surrogate mother will have an option to withdraw from surrogacy before the embryo is implanted in her womb.

    Offences and penalties for non-compliance

    • The offences under the Bill include:
    1. undertaking or advertising commercial surrogacy;
    2. exploiting the surrogate mother;
    3. abandoning, exploiting or disowning a surrogate child; and
    4. selling or importing human embryo or gametes for surrogacy.
    • The penalty for such offences is imprisonment up to 10 years and a fine up to 10 lakh rupees.
    • The Bill specifies a range of offences and penalties for other contraventions of the provisions of the Bill.

    Issues with the 2019 bill

    • Having a child is a basic human right. Declaration of Human Rights 1948 says, inter alia, that “men and women of full age without any limitation due to race, nationality or religion have the right to marry and found a family”.
    • The Judiciary in India also has recognized the reproductive right of humans as a basic right.
    • If the reproductive right is basic constitution right then the right to have a child through surrogacy should also be a basic constitutional right.
    • The Bill left out a lot of people who might want to have a baby through surrogacy, including unmarried couples, homosexual couples and single men and women.

    Various issues with Surrogacy

    • The woman, who is carrying a baby, generally get very less remuneration and large share is taken by ART clinics.
    • Surrogacy is generally involves gender selection which itself illegal in India. ART clinics on the name of surrogacy illegally running sex determination and abortion industry.
    • The women health is a serious issue in surrogacy.
    • The surrogacy involves many risks to baby health such as genetic disorders, low birth weight or membrane damage, etc.
    • Surrogacy leads to commoditization of the child, breaks the bond between the mother and the child, interferes with nature and leads to exploitation of poor women in developing countries.
    • Many religions do not allow surrogacy even in case of in vitro fertilization like in Catholicism. According to it a child is a gift not right and adopting unnatural means are gravely immoral.
    • International Surrogacy involves bilateral issues, where the laws of both the nations have to be at par/uniformity else the concerns and interests of parties involved will remain unresolved. Many times citizenship issues arise due to lack of information on laws of both the countries.

    Way Forward

    • In India, people are practising surrogacy when nearly 12 million several children are orphans.
    • Adoption of a child in India is a complicated and lengthy procedure for those childless couples who want to give a home to these children. Hence, they are forced to opt for IVF or surrogacy.
    • There is a strong need to modify and make the adoption procedure simple as an alternative to surrogacy.
    • A proper law with strict regulations and enforcement which would address the concerns of all stakeholders in the industry is required.

     

     




    References

    https://www.prsindia.org/billtrack/surrogacy-regulation-bill-2019

    https://www.livemint.com/politics/policy/cabinet-nod-to-surrogacy-bill-now-widows-and-divorcee-women-can-benefit-as-well-11582720671346.html

    https://www.myadvo.in/blog/surrogacy-laws-in-india-an-evaluation/

  • [Burning Issue] Trump in India

     

     

    Donald Trump’s visit to India continues a trend of more and more frequent visits by US Presidents. He is the first US President to visit India on a stand-alone visit in the seven decades of Indo-US diplomatic ties. US Presidents who came to India before him, from Dwight Eisenhower to Barack Obama, all had other stops in the region.

    Here’s how ties between the two countries have evolved, strengthening in key areas while some areas remain a concern.

    Visits before 2000, and later

    • Between 1947 and 2000, the first 53 years of India-US ties, there were only three visits by US Presidents to India — Dwight Eisenhower in 1959, Richard Nixon in 1969 and Jimmy Carter in 1978.
    • In the 20 years since 2000, there have been four visits by three US Presidents — Bill Clinton in 2000, George W Bush in 2006, and Obama in 2010 and 2015. Trumps being the fifth.
    • While only three of the nine US Presidents during 1947-2000 visited India, every President in the last two decades has visited India at least once.

    Many reasons could be ascribed to the higher frequency of visits — a shift in global geo-politics in the post-Cold War era, India’s economic ascent, rise of an assertive China, and New Delhi’s place on the global high table.

    The beginning of Strategic Partnership

    • In 2003-04, the first seeds of the Next Steps of Strategic Partnership were sown during the Atal Bihari Vajpayee regime.
    • The relationship peaked with the Indo-US nuclear deal in 2008, which was negotiated during 2005-08 between the Manmohan Singh government and the Bush administration, and is considered the game-changer.
    • The Obama administration carried forward the relationship, and during his visit in 2010 hosted by Singh, the US promised support to India for a UN Security Council membership.
    • When Narendra Modi became PM in 2014, Obama navigated the transition and visited again in 2015, when he was the chief guest for the Republic Day celebrations.

    Ties after Trump

    • After Trump came to power in 2016, there was a shift in the US political landscape as his unpredictability defined his presidency.
    • The Indian government moved fast, and Modi visited the White House in June 2017. It is in this backdrop that the visit is taking place in a year that will witness US presidential elections.

     Namaste Trump

    Outcomes of the Visit

    Despite years of high-level negotiations, India and the United States did not announce a trade deal—even a so-called mini-deal—despite Trump’s hinted during the visit that an “incredible” agreement was in the works.

    President Trump’s visit can easily be cleaved into two separate parts:

    1. the symbolism of the joint rally with PM Modi, along with their obvious personal rapport, and
    2. the actual bilateral outcomes of their Delhi meeting
    • The visit’s concrete outcomes were not as dramatic or historical as the rally images were.
    • Although the External Affairs Ministry had said at least five MoUs would be ready for signing, the three made ready were two on health care, and one Letter of Cooperation on LNG pipeline infrastructure.
    • The agreement signed for defence purchases worth $3-billion, including American helicopters, has led to both sides signalling more cooperation in defence, military exercises and technology sharing.

    Disagreements over the price of apples, walnuts, and medical devices; the US’s demands for greater access to India’s dairy, poultry and e-commerce market; and ongoing discussions over lowering Indian tariffs on American-made Harley Davidson motorcycles, remain unresolved.

    A “new designation” to the bilateral ties:

    Comprehensive Strategic Global Partnership

    • Giving concrete shape to an India-US ‘Comprehensive Global Strategic Partnership’ was the biggest achievement of Trump’s visit which was otherwise high on optics and low on substance.
    • The CGSP was initiated in 2013 when PM Manmohan Singh had visited the US and met President Barack Obama.
    • The two leaders had then claimed that the India-US relationship has developed a “comprehensive global strategic partnership”.
    • In a joint statement, both nations vowed to strengthen India-US CGSP, anchored in mutual trust, shared interests, goodwill and robust engagement of their citizens.

    Core of the extravaganza

    Why US matters for India?

    1) Support against terrorism

    • This intense engagement has helped achieve robust support from the US against terrorism.
    • This was evident after the Pulwama attack last year, leading to designation of Jaish-e-Mohammed chief Masood Azhar as a global terrorist under UN Security Council Resolution 1267, and the placing of Pakistan on the grey-list of the FATF.
    • While Trump was once very critical on Pakistan, he has nuanced his position on Pakistan in the last seven months.
    • And now, with a deal between the US and the Taliban likely, his approach towards Pakistan, long-time benefactor of the Taliban, will be tested in the months to come.

    2) Defence

    • For India, its relationship with the US on defence issues has strengthened.
    • India has procured over $18 billion worth of defence items from the US, almost half of this in the last five years.
    • India conducts more bilateral exercises with the US than with any other country.
    • And, under Trump, the announcement of India’s elevation to Tier I of the Strategic Trade Authorization licence exception has opened up US defence technologies from the time when India faced a technology-denial regime.

    3) Energy

    • The other area where the relationship has grown in recent years is energy.
    • The bilateral Strategic Energy Partnership was launched in April 2018; India has started importing crude and LNG from the US from 2017 and 2018 respectively.
    • The total imports are estimated at $6.7 billion — having grown from zero.
    • The US is also India’s sixth largest source of crude oil imports, with hydrocarbon imports rising to $7 billion in the last two years.

    4) Trade

    • In the backdrop of the global economic slowdown, where India’s global exports have fallen consistently, it is important for the country to diversify and strengthen bilateral relations with other markets.
    • It has set its sights on “large developed markets”, improved access to which would help its industry and services sectors.
    • These include the US, which has, over the last two decades, become a crucial trading partner in terms of both goods and services.

    Why India matters to the US?

    1) India as an open data market

    • India is, after all, the largest open data market in the universe. Per capita, more data is consumed in India than anywhere else in the world.
    • For American “big tech” firms, India provides a scale for their products unavailable in any other country.
    • Despite current economic woes, this will continue to be the largest growing and relatively open consumer market for American products and business.

    2) Indian-Americans

    • About 4.5 million people of Indian origin live in the US today, but despite their relatively small numbers, Indian Americans are a growing political force in the country.
    • Trump has sought to court the Indian-American vote in the run-up to the 2020 election.

    3) India as a defence partner

    • India is also a large arms importer.
    • Defence trade is widely seen as the silver lining in this relationship – US-India defence deals have ballooned in the past decade, from nearly zero in 2008 to a little more than $15bn in 2019.

    4) India as a possible solution to China’s hegemony

    • On the trade front, India can be an effective supplier rather than being an outsourcing hub if compared to China.
    • Strategically also, the U.S. views India as a platform to contain China’s hegemony.
    • India sees it as an opportunity for economic expansion, with the U.S. being an equal partner.

    Areas of contention

    Tariff issues

    • The US feels that India is a high tariff country, and wants these reduced and a more predictable regime to conduct business.
    • Although the growth is 10% per year, many feel the potential is much higher.

    Visa norms

    • The other area of contention has been the movement of Indian skilled professionals to the US under the H1B programme.
    • While the US President has always made immigration a key campaign theme, it has not led to any major barriers for Indians so far. But in an election year in the US, the rhetoric could sharpen.

    Conclusion

    • India needs to keep US on its side for strategic and security reasons – the grand welcome India accorded the US president showed how serious it is about the relationship.
    • But the immediate future of the relationship depends on the upcoming US presidential elections.
    • These are relationship-building visits that serve as signalling mechanisms too.
    • If India-US relationship is a defining one for this century, as Modi said, Trump’s visit helps in that definition.
    • India will find it easier to deal with a leader it has already invested in, hoping Trump’s unpredictable nature won’t harm the relationship.

    Way Forward

    • Although any major trade package deal could not be clinched this time, in terms of emboldening the bilateral ties, this visit was critical.
    • The fact that President Trump did visit India and understand the imperatives is in itself a big achievement, considering his unpredictable nature.
    • It is also true that these visits are never about massive deliverables. These visits create an impression.
    • As many regards, the thinking beyond transactionalism in this event was a big achievement for both.
    • Having a trade deal becomes an uphill task with both sides taking a protectionist stance.
    • The two governments must now strive to complete the unfinished agreements and set the course for their newly designated ‘Comprehensive Strategic Global Partnership’.



    References

    https://indianexpress.com/article/explained/explained-donald-trump-visit-india-us-ties-over-the-years-bush-nixon-clinton-jimmy-carter-6280481/

    https://www.livemint.com/opinion/online-views/no-trade-deal-with-trump-still-a-win-for-india-11582771353905.html

    https://theprint.in/diplomacy/comprehensive-global-strategic-partnership-what-modi-trump-just-formalised-is-2013-concept/371631/

  • [Burning Issue] SC judgement on Reservation not being a Fundamental Right

     

    Nearly nine decades after the 1932 Poona pact between B.R. Ambedkar and Mahatma Gandhi that initiated reservation for backward classes, the debate on social justice is only getting shriller. In the latest, a February 7 Supreme Court order, that states that reservation is not a fundamental right, has sparked an intense political debate and disquiet amongst backward communities.

     

    Context

    • The SC was deciding a group of appeals pertaining to the reservations to SC’s and ST’s in promotions in the posts of Assistant Engineer (Civil) in the Public Works Department, Government of Uttarakhand.
    • It ruled that “there is no fundamental right which inheres in an individual to claim reservation in promotion”, and that ‘no mandamus can be issued by court directing state government to provide reservations.’

    What does the Constitution say on reservations?

    • Article 14 of the Constitution guarantees equality before the law and equal protection of laws to everyone.
    • Similarly, Article 16(1) and 16(2) assure citizens equality of opportunity in employment or appointment to any government office. 
    • Article 15(1) generally prohibits any discrimination against any citizen on the grounds of religion, caste, sex or place of birth. 
    • However, Articles 15(4) and 16(4) state that these equality provisions do not prevent the government from making special provisions in matters of admission to educational institutions or jobs in favor of backward classes, particularly the Scheduled Castes (SCs) and the Scheduled Tribes (STs).
    • Article 16(4A) allows reservations to SCs and STs in promotions, as long as the government believes that they are not adequately represented in government services.

    What did the Hon’ble Supreme Court rule?

     

    Reservation is not a Fundamental Right

    • Article 16 (4) and 16 (4-A) are in the nature of enabling provisions, vesting a discretion on the State Government to consider providing reservations, if the circumstances so warrant.
    • It is settled law that the State Government cannot be directed to provide reservations for appointments in public posts.
    • Similarly, the State is not bound to make reservations for Scheduled Castes and Scheduled Tribes in matters of promotions.

    Quota in promotion

    • The judgment added that it is for the State Government to decide whether this was necessary.
    • The State can form its own opinion on the basis of the material it has in its possession already or it may gather such material through a Commission/Committee, person or authority.
    • All that is required is that there must be some material on the basis of which the opinion is formed.
    • The court should show due deference to the opinion of the State and such opinion is not beyond judicial scrutiny, SC said.

    Need for quantifiable data

    • However, if the state wishes to exercise their discretion and make such provision, the State has to collect quantifiable data showing the inadequacy of representation of that class in public services, the bench said.
    • It added that if the decision of the State Government to provide reservations in promotion is challenged, the State concerned shall have to place before the Court the requisite quantifiable data and satisfy the Court that such reservations became necessary.
    • It should be on account of the inadequacy of representation of SCs and STs in a particular class or classes of posts without affecting the general efficiency of administration as mandated by Article 335 of the Constitution.
    • On the requirement for data collection, the court said this is only to justify reservation to be made in the matter of appointment or promotion to public posts, according to Article 16 (4) and 16 (4-A) of the Constitution.
    • As such, collection of data regarding the inadequate representation of members of the SCs and STs is a prerequisite for providing reservations and is not required when the State Government decided not to provide reservations.

    What do the precedents say?

    • There are several major Supreme Court judgments that have, in the past, ruled that Articles 15(4) and 16(4) does not provide a fundamental right per se.
    • A five-judge apex court bench, as early as 1962 in the R. Balaji v. the State of Mysore had ruled that Article 15(4) is an “enabling provision”, meaning that “it does not impose an obligation, but merely leaves it to the discretion of the appropriate government to take suitable action, if necessary”.
    • The court was hearing a challenge to an order passed by the erstwhile state of Mysore reserving 68 percent of seats in engineering and medical colleges for educationally and socially backward classes and SCs and STs.
    • Five years later, in 1967, another five-judge bench in A. Rajendran v. Union of India reiterated this position, holding that the government is under no constitutional duty to provide reservations for SCs and STs, either at the initial stage of recruitment or at the stage of promotion.
    • Article 16(4), it said, does not confer any right on the citizens and is an enabling provision giving discretionary power to the government to make reservations.
    • The position went on to be reiterated in several other decisions, including the nine-judge bench ruling in Indra Sawhney v. Union of India (1992) and the five-judge bench decision in M Nagaraj v. Union of India (2006).

    What has happened in the Uttarakhand case?

    • The Court set aside the Uttarakhand High Court order directing data collection on the adequacy or inadequacy of representation of SC/ST candidates in the State’s services.
    • Its reasoning is that once there is a decision not to extend reservation — in this case, in promotions — to the section, the question whether its representation in the services is inadequate is irrelevant.

    What does the judgment mean?

    • Reservations are not rights: The latest judgment is a reminder that affirmative action programs allowed in the Constitution flow from “enabling provisions” and are not rights as such.
    • Not a new legal position: This legal position is not new. Major judgments- these include those by Constitution Benches-note that Article 16(4), on the reservation in posts, is enabling in nature.
    • The state is not bound to provide reservation: In other words, the state is not bound to provide reservations. But if the state provides reservations, it must satisfy the following two criteria-
      • For the backward class: It must be in favor of sections that are backward.
      • Inadequately represented: And inadequately represented in the services based on quantifiable data.

    Question of government obligation

    • The idea that reservation is not a right may be in consonance with the Constitution allowing it as an option.
    • But a larger question looms is there no government obligation to continue with affirmative action if-
      • The social situation that keeps some sections backward.
      • And at the receiving end of discrimination persists?

    Consequences of this judgment

    • Possibility of the unequal system: Some may even read into this an inescapable state obligation to extend reservation to those who need it, lest its absence renders the entire system unequal.
    • Possibility of perceptible imbalance: For instance, if no quotas are implemented and no study on backwardness and extent of representation is done, it may result in a perceptible imbalance in social representation in public services.

    Why reservation matters for equality?

    • Reservation is no more seen by the Supreme Court as an exception to the equality rule; rather, it is a facet of equality.
    • The terms “proportionate equality” and “substantive equality” have been used to show that the equality norm acquires completion only when the marginalized are given a legal leg-up.

     Substantive Equality under question

    • Formal equality is about treating all people alike and distributing resources equally among them.
    • However, someone at a disadvantage needs support to a greater extent than someone who is comfortably placed. Substantive equality recognizes this qualitative difference.
    • Unlike formal equality, it classifies the prospective beneficiaries on the basis of their need and the likely scope of benefit to them.
    • It takes into account people’s location along an axis of advantages and disadvantages. If substantive equality is part of our right to equality, it is untenable to insist that reservation is not a right.
    • While a limited interpretation of fundamental rights may be technically correct, it will not make for sound policy.

    Way forward

    • Meanwhile, calls for reform and ret­hinking reservation policies get louder; one question is whether there’s a need to continue with reservation and if benefits have reached targets.
    • The challenge for India is that while many sections of the society remain disadvantaged, political action has resulted in the relative discrimination within reserved groups.
    • As the reservation pie grows larger, in effect, it becomes a method of exclusion rather than inclusion.
    • It is time that India has to make a critical assessment of its affirmative action programs.
    • Simplification, legislative sunsets, and periodic reviews should be important principles in the redesign.

     

     

     




    References

    https://www.civilsdaily.com/news/reservation-as-right-on-supreme-court-judgment/

    https://indianexpress.com/article/india/reservation-in-job-promotions-not-fundamental-right-supreme-court-6258857/

    https://www.nationalheraldindia.com/opinion/supreme-court-on-reservation-opening-pandoras-box

    https://theprint.in/theprint-essential/sc-quota-ruling-is-nothing-new-reservation-in-jobs-was-never-a-fundamental-right/363200/

  • [Burning Issue] Genome India Project

    Distribution:

    The Union Govt. has given clearance to an ambitious gene-mapping project, estimated to be worth Rs 238 crore. The project is said to be among the most significant of its kind in the world because of its scale and the diversity it would bring to genetic studies.

     

     

    Genome India Project

    • The Genome India Project has been described by those involved as the “first scratching of the surface of the vast genetic diversity of India”.
    • It involves over 20 scientists from institutions including the Indian Institute of Science (IISc) in Bengaluru and a few IITs.
    • It is inspired by the Human Genome Project (HGP 1990-2003) an international programme that led to the decoding of the entire human genome.

    About Human Genome Project

    • One of the most comprehensive genome mapping projects in the world is the Human Genome Project (HGP), which began in 1990 and reached completion in 2003.
    • The international project, which was coordinated by the National Institutes of Health and the US Department of Energy, was undertaken with the aim of sequencing the human genome and identifying the genes that contain it.
    • The project was able to identify the locations of many human genes and provide information about their structure and organisation.

    What is a Genome?

    • Every organism’s genetic code is contained in its Deoxyribose Nucleic Acid (DNA), the building blocks of life.
    • The discovery that DNA is structured as a “double helix” by James Watson and Francis Crick in 1953, started the quest for understanding how genes dictate life, its traits, and what causes diseases.
    • A genome is all the genetic matter in an organism. It is defined as “an organism’s complete set of DNA, including all of its genes.
    • Each genome contains all of the information needed to build and maintain that organism.
    • In humans, a copy of the entire genome contains more than 3 billion DNA base pairs.
    • Each pair consists of 23 pairs of chromosomes for a total of 46 chromosomes, which means that for 23 pairs of chromosomes in each cell, there are roughly 20,500 genes located on them.

    What does genome-mapping tell us?

    • Some of the genes are lined up in a row on each chromosome, while others are lined up quite close to one another and this arrangement might affect the way they are inherited.
    • For example, if the genes are placed sufficiently close together, there is a probability that they get inherited as a pair.
    • Genome mapping, therefore, essentially means figuring out the location of a specific gene on a particular region of the chromosome and also determining the location of and relative distances between other genes on that chromosome.

    What is the significance of GIP?

    • HGP has a major diversity problem as most genomes (over 95%) mapped under HGP have been sourced from urban middle-class white people.
    • Thus, HGP should not really be seen as representative of the human genome.

    In this context, the GIP aims to vastly add to the available information on the human species and advance the cause, both because of the scale of the Indian population and the diversity here. This diversity can be depicted by:

    Horizontal Diversity: The Indian subcontinent has been the site of huge migrations, where the first migrations were from Africa. Also, there have been periodic migrations by various populations from all around the world, making this a very special case of almost all races and types intermingling genetically.

    Vertical Diversity: There has been endogamy or inter-marriage practised among distinct groups, resulting in some diseases passed on strictly within some groups and some other traits inherited by just some groups. Studying and understanding both diversities would provide the bedrock of personalised healthcare for a very large group of persons on the planet.

    Its applications

    • Significantly, genome mapping enables scientists to gather evidence if a disease transmitted from the parent to the child is linked to one or more genes.
    • Furthermore, mapping also helps in determining the particular chromosome which contains that gene and the location of that gene in the chromosome.
    • Genome maps have been used to find out genes that are responsible for relatively rare, single-gene inherited disorders such as cystic fibrosis and Duchene muscular dystrophy.
    • Genetic maps may also point out scientists to the genes that play a role in more common disorders and diseases such as asthma, cancer and heart disease among others.
    • Researchers from several international institutions mapped the handful of genes whose mutation causes several different kinds of cancers.

    Challenges involved

    Fear of Scientific Racism

    • The question of heredity and racial purity has obsessed civilisations, and more scientific studies of genes and classifying them could reinforce stereotypes and allow for politics and history to acquire a racial twist.
    • The work on cranial volume measurements of the physician Samuel Morton (regarded in America as the father of scientific racism) justified slavery before the US Civil War.
    • In India, a nation divided by identity politics, scientific work in mapping genetic groups may further strengthen the divisions in the society based on the prevalent notion of race.

    Data & Storage

    • After collection of the sample, the anonymity of the data and questions of its possible use and misuse would need to be addressed.
    • India is yet to pass a Data Privacy Bill with adequate safeguards and launching the GIP before the privacy question is settled could give rise to another set of problems.

    Medical Ethics

    • In a project that aims only to create a database of genetic information poses a risk of doctors privately performing gene modification.
    • Selective breeding or Eugenics has always been controversial for long, as recently a Shenzhen-based scientist, created the world’s first gene-edited babies, has been sentenced to three years in prison.

    A word of Caution

    • Mapping the genetic diversity of India would further scientific understanding of evolution both from a biological (intra- and inter-species interaction, species-ecology interactions, etc) and sociological (migration patterns, rituals, etc) point of view.
    • Caution must be exercised that the effort to map India’s genetic diversity doesn’t devolve into the politically-motivated and discriminatory effort to root indogeneity in misguided notions of biological essentialism.

     

    Way Forward

    • The budget for FY21 spoke of expanding genome mapping to agriculture—a greater understanding of the genetic basis for susceptibility to diseases like blights, rusts, etc, would aid genetic engineering efforts to reduce chemical dependence in agriculture.
    • Nor would healthcare be the only field to which the benefits of the project would accrue.
    • To gain fully from the genomics revolution, India needs to collect information about the genetics of its population and train manpower capable of interpreting it.
    • The information that is needed has to come from a large and sustained collection of data — fully sequenced individual genomes along with medical histories for the individuals who volunteer for this effort.
    • Genome India Project provides an opportunity for India to make leap and bounds progress in the fields of biotechnology, agriculture and healthcare.
    • Thus, it should be carried with maximum speed and maximum caution.

     

     

     



    References

    https://www.civilsdaily.com/news/genome-india-project/

    https://www.financialexpress.com/opinion/genome-india-project-a-boon-for-personalised-medicine-that-mustnt-be-misused-for-origin-tracing/1866186/

    https://indianexpress.com/article/opinion/editorials/genome-india-project-india-genetic-diversity-6259645/

  • [Burning Issue] 15th Finance Commission and its recommendations (Part II)

     

     

    Key recommendations in the first report (2020-21 period) include:

     

    Devolution of taxes to states

    • The share of states in the centre’s taxes is recommended to be decreased from 42% during the 2015-20 period to 41% for 2020-21.
    • The 1% decrease is to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh from the resources of the central government.
    • The individual shares of states from the divisible pool of central taxes are provided in table in the annexure.

    Why need devolution formula?

    • The Finance Commission is required to recommend the distribution of the net proceeds of taxes of the Union between the Union and the States (commonly referred to as vertical devolution), and the allocation between the States of the respective shares of such proceeds (commonly known as horizontal devolution).
    • The FC determines the States’ aggregate share in the divisible pool and its horizontal devolution among the States.

    • The basic objective of a horizontal devolution is to enable the States to provide basic public goods and services with equivalent tax effort. Achieving this may entail:
      1. filling up the vertical fiscal gap of the States;
      2. providing horizontal equity (by providing higher share to poorer regions);
      3. equalizing the fiscal capacities of States (revenue equalization);
      4. providing for cost differentials in States for basic public service (expenditure equalization); and
      5. ensuring that the States have enough incentives to mobilise own revenue and spend them appropriately in an efficient manner.

    Various criteria used

    Criteria 14th FC

    2015-20

    15th FC

    2020-21

    Income Distance 50.0 45.0
    Population (1971) 17.5
    Population (2011) 10.0 15.0
    Area 15.0 15.0
    Forest Cover 7.5
    Forest and Ecology 10.0
    Demographic Performance 12.5
    Tax Effort 2.5
    Total 100 100

     

    Income distance: Income distance is the distance of the state’s income from the state with the highest income.  The income of a state has been computed as average per capita GSDP during the three-year period between 2015-16 and 2017-18.  States with lower per capita income would be given a higher share to maintain equity among states.

    New criteria ‘Demographic performance’: The Terms of Reference (ToR) of the Commission required it to use the population data of 2011 while making recommendations.   Accordingly, the Commission used only 2011 population data for its recommendations.

    The Demographic Performance criterion has been introduced to reward efforts made by states in controlling their population.   It will be computed by using the reciprocal of the total fertility ratio of each state, scaled by 1971 population data.   States with a lower fertility ratio will be scored higher on this criterion.  The total fertility ratio in a specific year is defined as the total number of children that would be born to each woman if she were to live to the end of her child-bearing years and give birth to children in alignment with the prevailing age-specific fertility rates.

    Forest and ecology: This criterion has been arrived at by calculating the share of dense forest of each state in the aggregate dense forest of all the states.

    Tax effort: This criterion has been used to reward states with higher tax collection efficiency.   It has been computed as the ratio of the average per capita own tax revenue and the average per capita state GDP during the three-year period between 2014-15 and 2016-17.

     

    Grants-in-aid

    In 2020-21, the following grants will be provided to states:

    (i) Revenue deficit grants,

    (ii) Grants to local bodies, and

    (iii) Disaster management grants

    The Commission has also proposed a framework for sector-specific and performance-based grants.  State-specific grants will be provided in the final report.

    Revenue deficit grants: 

    • In 2020-21, 14 states are estimated to have an aggregate revenue deficit of Rs 74,340 crore post-devolution.
    • The Commission recommended revenue deficit grants for these states.

    Special grants:

    • In case of three states, the sum of devolution and revenue deficit grants is estimated to decline in 2020-21 as compared to 2019-20.
    • These states are Karnataka, Mizoram, and Telangana.

     Sector-specific grants: 

    • Sector-specific grants for the following sectors will be provided in the final report: (i) nutrition, (ii) health, (iii) pre-primary education, (iv) judiciary, (v) rural connectivity, (vi) railways, (vii) police training, and (viii) housing

    Performance-based grants:

    Guidelines for performance-based grants include: (i) implementation of agricultural reforms, (ii) development of aspirational districts and blocks, (iii) power sector reforms, (iv) enhancing trade including exports, (v) incentives for education, and (vi) promotion of domestic and international tourism.  The grant amount will be provided in the final report.

    Grants to local bodies: 

    • The total grants to local bodies for 2020-21 has been fixed at Rs 90,000 crore, of which Rs 60,750 crore is recommended for rural local bodies (67.5%) and Rs 29,250 crore for urban local bodies (32.5%).
    • This allocation is 4.31% of the divisible pool.   This is an increase over the grants for local bodies in 2019-20, which amounted to 3.54% of the divisible pool.
    • The grants will be divided between states based on population and area in the ratio 90:10. The grants will be made available to all three tiers of Panchayat- village, block, and district.

    Disaster risk management:  

    • The Commission recommended setting up National and State Disaster Management Funds (NDMF and SDMF) for the promotion of local-level mitigation activities.
    • The Commission has recommended retaining the existing cost-sharing patterns between the centre and states to fund the SDMF (new) and the SDRF (existing).
    • The cost-sharing pattern between centre and states is (i) 75:25 for all states, and (ii) 90:10 for north-eastern and Himalayan states.

     

    Recommendations on fiscal roadmap

    Fiscal deficit and debt levels: 

    • The Commission noted that recommending a credible fiscal and debt trajectory roadmap remains problematic due to uncertainty around the economy.
    • It recommended that both central and state governments should focus on debt consolidation and complies with the fiscal deficit and debt levels as per their respective Fiscal Responsibility and Budget Management (FRBM) Acts.

    Off-budget borrowings: 

    • The Commission observed that financing capital expenditure through off-budget borrowings detracts from compliance with the FRBM Act.
    • It recommended that both the central and state governments should make full disclosure of extra-budgetary borrowings.
    • The outstanding extra-budgetary liabilities should be clearly identified and eliminated in a time-bound manner.

    Statutory framework for public financial management: 

    The Commission recommended forming an expert group to draft legislation to provide for a statutory framework for sound public financial management system.   It observed that an overarching legal fiscal framework is required which will provide for budgeting, accounting, and audit standards to be followed at all levels of government.

    Tax capacity: 

    • In 2018-19, the tax revenue of state governments and central government together stood at around 17.5% of GDP.
    • The Commission noted that tax revenue is far below the estimated tax capacity of the country.  Further, India’s tax capacity has largely remained unchanged since the early 1990s.
    • In contrast, tax revenue has been rising in other emerging markets.
    • The Commission recommended: (i) broadening the tax base, (ii) streamlining tax rates, (iii) and increasing capacity and expertise of tax administration in all tiers of the government

    GST implementation: 

    • The Commission highlighted some challenges with the implementation of the Goods and Services Tax (GST).
    • These include: (i) large shortfall in collections as compared to original forecast, (ii) high volatility in collections, (iii) accumulation of large integrated GST credit, (iv) glitches in invoice and input tax matching, and (v) delay in refunds.
    • The Commission observed that the continuing dependence of states on compensation from the central government for making up for the shortfall in revenue is a concern.
    • It suggested that the structural implications of GST for low consumption states need to be considered.

    Other recommendations

     

    Financing of security-related expenditure:

    • The ToR of the Commission required it to examine whether a separate funding mechanism for defence and internal security should be set up and if so, how it can be operationalised.
    • In this regard, the Commission intends to constitute an expert group comprising representatives of the Ministries of Defence, Home Affairs, and Finance.
    • The Commission noted that the Ministry of Defence proposed following measures for this purpose:

    (i) setting up of a non-lapsable fund, (ii) levy of a cess, (iii) monetisation of surplus land and other assets, (iv) tax-free defence bonds, and (v) utilising proceeds of disinvestment of defence public sector undertakings.

     

    Challenges before 15th FC

     

     

    Even as the work of the Commission was in a fairly advanced stage, designed towards submitting the report by the stipulated date, there were new developments which impacted the recommendations of the XV-FC.

    First was the enactment of the Jammu and Kashmir Reorganization Act, 2019, leading to the creation of two new UTs. The FC needs to closely examine how best the needs of the UT of J&K can be addressed keeping in view all relevant factors.

    Second, the global scenario is unpredictable and experiencing a synchronised slowdown. After successive downward revisions, the IMF forecast global growth for 2019 at 3 per cent, which is the lowest since the global financial crisis of 2008-09, with further downside risk.

    Third, like many other countries, India too is going through a period of economic sluggishness. The growth in real GDP is expected to slow down from 7.2 per cent in 2017-18 to around 6 per cent estimated for 2019-20.

    Fourth, weak revenue collections, driven by slowing activity as well as teething problems in implementing some of the newly introduced structural reforms, have elevated the fiscal risks. With real economic growth at a seven-year low, combined with relatively low inflation, growth has been weak in nominal terms as well, leading to a weak tax base.

     

    Criticisms

    • The population parameter used by the Commission has been criticised by the governments of the southern states.
    • The previous FC used both the 1971 and the 2011 populations to calculate the states’ shares, giving greater weight to the 1971 population (17.5%) as compared to the 2011 population (10%).
    • The use of 2011 population figures has resulted in states with larger populations like UP and Bihar getting larger shares, while smaller states with lower fertility rates have lost out.
    • The combined population of the Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan and Jharkhand is 47.8 crore.
    • This is over 39.48% of India’s total population and is spread over 32.4% of the country’s area, as per the 2011 Census.
    • On the other hand, the southern states of Tamil Nadu, Kerala, Karnataka and undivided Andhra Pradesh are home to only 20.75% of the population living in 19.34% of the area, with a 13.89% share of the taxes.
    • This means that the terms decided by the Commission are loaded against the more progressive (and prosperous) southern states.

     

     



    References

    https://www.prsindia.org/report-summaries/report-15th-finance-commission-fy-2020-21

    https://en.wikipedia.org/wiki/Fifteenth_Finance_Commission

    https://www.civilsdaily.com/news/recommendations-of-the-15th-finance-commission/

  • [Burning Issue] 15th Finance Commission and its recommendations (Part I)

     

    Context

    • The Finance Commission is a constitutional body formed by the President of India to give suggestions on centre-state financial relations.
    • The 15th Finance Commission was required to submit two reports. The commission’s chairman is N. K. Singh, with its full-time members being Ajay Narayan Jha, Ashok Lahiri and Anoop Singh.
    • The first report, consisting of recommendations for the financial year 2020-21, was tabled in Parliament on February 1, 2020.
    • The final report with recommendations for the 2021-26 period will be submitted by October 30, 2020.

    Background

    What is Finance Commission?

    • The Finance Commission (FC) was established by the President of India in 1951 under Article 280 of the Indian Constitution.
    • It was formed to define the financial relations between the central government of India and the individual state governments.
    • The Finance Commission (Miscellaneous Provisions) Act, 1951 additionally defines the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.
    • As per the Constitution, the FC is appointed every five years and consists of a chairman and four other members.
    • Since the institution of the First FC, stark changes in the macroeconomic situation of the Indian economy have led to major changes in the FC’s recommendations over the years.

    Constitutional Provisions

    Several provisions to bridge the fiscal gap between the Centre and the States were already enshrined in the Constitution of India, including Article 268, which facilitates levy of duties by the Centre but equips the States to collect and retain the same.

    Article 280 of the Indian Constitution defines the scope of the commission:

    1. The President will constitute a finance commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.
    2. Parliament may by law determine the requisite qualifications for appointment as members of the commission and the procedure of selection.
    3. The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources.

    Why need Finance Commission?

    • As a federal nation, India suffers from both vertical and horizontal fiscal imbalances.
    • Vertical imbalances between the central and state governments result from states incurring expenditures disproportionate to their sources of revenue, in the process of fulfilling their responsibilities.
    • However, states are better able to gauge the needs and concerns of their inhabitants and therefore more efficient at addressing them.
    • Horizontal imbalances among state governments result from differing historical backgrounds or resource endowments, and can widen over time.
    • The first FC was established in 1951 by Dr. B.R. Ambedkar, the then-incumbent law minister, to address these imbalances.

    Important functions

    • Distribution of net proceeds of taxes between Center and the States, to be divided as per their respective contributions to the taxes.
    • Determine factors governing Grants-in-Aid to the states and the magnitude of the same.
    • To make recommendations to the president as to the measures needed to augment the Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the finance commission of the state.
    • Any other matter related to it by the president in the interest of sound finance.

    Members of the Finance Commission

    • The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards.
    • It laid down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers.
    • The Chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who:
    1. Are, or have been, or are qualified, as judges of a high court,
    2. Have knowledge of government finances or accounts, or
    3. Have had experience in administration and financial expertise; or
    4. Have special knowledge of economics

    Finance Commission versus Planning Commission

    • It is alleged that Planning Commission (PC) which is neither a constitutional nor a statutory body had usurped the role of FC.
    • PC had restricted FC’s role to mere recommend grants to states on revenue account only under article 275 of Indian constitution.
    • However, after the formation of NITI Aayog which replaced the PC, the government seeked to empower FC with the originally envisaged task of distribution of revenue to the states.
  • [Burning Issue] Highlights of the Union Budget 2020

     



    Estimates

    Prominent themes of the Budget 2020

     

     

    Agriculture

    • A budget allocation of ₹2.83 lakh crore for the sector comprising agriculture and allied activities.
    • Doubling farmers incomes by 2022.
    • Agri-credit availability set at ₹15 lakh crore for 2020-21.
    • Comprehensive measures for 100 water stressed districts.
    • Provide 20 lakh farmers to set up standalone solar pumps. Help another 15 lakh farmers to solarise their power grid.
    • Village storage scheme proposed to be run by women SHGs.
    • Indian Railways to have refrigerated coaches capability in ‘kisan trains’ to carry perishables and milk.
    • Krishi UDAN on international and national routes.

    Health and Sanitation

    • An allocation of ₹69,000 crore for the health sector.
    • ₹12,300 crore for Swachh Bharat this year.
    • Proposal to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP.
    • Expand Jan Aushadhi scheme to provide for all hospitals under Ayushman Bharat by 2025.

    Education

    • ₹99,300 crore for education sector in 2021 and about ₹3,000 crore for skill development.
    • Urban local bodies to provide internship to young engineers for a year.
    • Degree-level full fledged online education programmes by institutions ranked in top 100 in NIRF rankings, especially to benefit underprivileged students.
    • A national police university and a national forensic science university is proposed to be setup.
    • IND SAT exam for students of Asia and Africa to promote “study in India” programme.

    Infrastructure

    • Budget proposes to provide ₹1.7 lakh crore for transport infrastructure in 2021
    • National Logistics Policy to be released soon.
    • Chennai-Bengaluru Expressway to be started.
    • Aim to achieve electrification of 27,000 km of lines.
    • Plan to have a large solar power capacity for Indian Railways.
    • The government also proposes a Bengaluru suburban rail project at a cost of ₹18,600 crore.
    • Govt to monetise 12 lots of national highways by 2024.
    • 100 more airports will be developed by 2024 to support UDAN.

    Culture and Tourism

    • Indian Institute of Heritage and Conservation has been proposed under the Ministry of Culture. This will be given a status of deemed university.
    • 5 sites will be developed as iconic sites with on-site museums
    1. Rakhigarhi (Haryana)
    2. Hastinapur (Uttar Pradesh)
    3. Shivsagar (Assam)
    4. Dholavira (Gujarat)
    5. Adichanallur (Tamil Nadu)
    • Maritime museum to be set up at Lothal- the Harappan age maritime site near Ahmedabad, by Ministry of Shipping.

    Tax

    • A new tax regime has been announced. Those who want to be in the old regime with exemptions, can continue to pay at the old rates.
    Income Tax
    Between ₹5 lakh and ₹7.5 lakh Reduced to 10% from the current 20%
    Between ₹7.5 lakh to ₹10 lakh Reduced to 15% from the current 20%
    Between ₹10 lakh to ₹12.5 lakh Reduced to 20% from the current 30%
    Between ₹12.5 lakh to ₹15 lakh Reduced to 25% from the current 30%
    Above ₹15 lakh Continue at 30%, but without exemptions
    • Over 70 deductions have been removed.
    • Companies will no longer be required to pay Dividend Distribution Tax (DDT).
    • Aadhaar-based verification for GST compliance to be introduced.

    Also read:

    Government Budgeting

  • [Burning Issue] Divestment of LIC

     

    Context

    • Finance Minister has said that the government will sell a part of its holding in Life Insurance Corporation of India (LIC) through an initial public offering (IPO).
    • The government owns 100 per cent of LIC. The government’s move is a part of efforts to push through an aggressive disinvestment and asset monetisation programme.
    • Some are calling it India’s Saudi Aramco, a listing on Indian stock exchanges like none other.

    Background

    Life Insurance Corporation of India (LIC)

    • LIC is an Indian state-owned insurance group and investment corporation owned by the Government of India.
    • It was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India.
    • Over 245 insurance companies and provident societies were merged to create the state-owned LIC.

    Beginning of life insurance in India

    • The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818.
    • Its primary target market was the Europeans based in India, and it charged Indians heftier premiums.
    • Surendranath Tagore had founded Hindusthan Insurance Society, which later became Life Insurance Corporation.
    • The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider.

    Nationalization in 1956

    • In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance agencies.
    • The Parliament passed the Life Insurance of India Act on 19 June 1956 creating the LIC which started operating in September of that year.
    • It consolidated the business of 245 private life insurers and other entities offering life insurance services; this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies.
    • The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least 17 sectors of the economy, including life insurance.

    Present capital base

    LIC is India’s largest financial institution, and if LIC shares are listed on stock exchanges, it could easily emerge as the country’s top listed company in terms of market valuation, overtaking current leaders Reliance and TCS.

    The corporation, which started its business with around 300 offices, 5.7 million policies and a corpus of INR 45.9 crores (US$92 million as per the 1959 exchange rate of roughly ₹5 for US$1), had grown to 25,000 servicing around 350 million policies and a corpus of over ₹800,000 crore by the end of the 20th century.

    • From its creation, LIC, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses and by 2006 was contributing around 7% of India’s GDP.
    • As of 2019, LIC had toa tal life fund of ₹28.3 trillion.
    • The total value of sold policies in the year 2018-19 is ₹21.4 million.
    • LIC settled 26 million claims in 2018-19. It has 290 million policyholders.

    LIC: A milch cow for government

    • Governments have long shied away from considering listing India’s top insurer, given the institution’s perceived role in supporting the markets by buying shares during major sell-offs and also shares of state-owned companies during divestment and when investor participation has been weak.
    • The corporation had invested heavily in IPOs and follow-on offers of companies such as ONGC.
    • It is also the largest investor in government securities and stock markets every year. On an average, LIC invests Rs 55,000 crore to Rs 65,000 crore in stock markets every year and emerges as the largest investor in Indian stocks.
    • LIC also has huge investments in debentures and bonds besides providing funding for many infrastructure projects according to its Annual Report for 2017-18.

    Initial Public Offerings (IPO) of LIC

    A big-bang announcement

    • The government could start by initially selling a small tranche of the government controlled institution through an IPO, and subsequently dilute the government’s holdings.
    • The IPO is likely to fetch a huge premium as LIC currently has a small equity base.
    • In the Budget of July 2019, the government had announced a proposal to make minimum public holding of 35 per cent for listed companies.
    • The government had listed the shares of General Insurance Corporation and New India Assurance through IPOs three years ago.
    • Public listing of LIC will lead to more disclosures of investment and loan portfolios and better governance, with greater transparency and accountability.

    How will the IPO go?

    • The government will have to amend the LIC Act first before taking the Corporation public.
    • LIC is currently under the supervisory oversight of the Insurance Regulatory Development Authority of India (IRDAI), but it is governed by The LIC Act of 1956,
    • The act enables it to obtain a special dispensation in several areas including higher stakes in companies beyond the limit set by the IRDAI.
    • Under Section 37 of The LIC Act, the government has guaranteed the sum assured with bonus in all LIC policies to ensure the availability of financial security to the family of the deceased.

    Implications

    • It seems like the government is trying to make the most of the brand value of LIC, given that it is one of the few remaining profit-making entities owned by the state.
    • Will the listing of LIC, which is the country’s largest financial institution with assets under management of close to ₹30 trillion, do any good to its policyholders?

    Let’s have a look:

    1) Listing will boost LIC’s efficiency and thereby policy returns

    • The listing of LIC will be a positive move for policyholders. The benefit will, however, be indirect.
    • As a 100% government-owned entity, LIC’s financial health is largely outside the scrutiny of the financial markets.
    • Investment returns for traditional policies are dependent on the insurer’s performance. Such plans form a big portion of LIC’s book.
    • Unlike unit-linked insurance plan investors, who have a clear visibility on the daily performance of underlying funds, the endowment policyholders’ visibility is limited to annually declared bonuses.
    • Listing will allow analysts to monitor LIC’s governance. LIC will come under Sebi’s direct watch and will have to comply with the requirements meant for other listed firms.
    • Such compliance is likely to strengthen its overall corporate governance, financial and investment discipline. Over time, this will increase its efficiency and it may deliver higher returns to policyholders.

    2) Peers will be under pressure to improve pricing and features

    • Any company going public is good news for stakeholders since it ensures higher transparency, better governance, more disclosures and scrutiny from the investors.
    • However, LIC is not a typical company. LIC has in the past invested in the equity markets to stem its fall.
    • After being listed, LIC will be answerable to public shareholders and, hence, will be a prudent investment decision, which is good for policyholders.
    • LIC will also become more competitive. This will put pressure on its peers to innovate, benefitting policyholders in terms of pricing, product features and services.
    • LIC policyholders enjoy a sovereign guarantee on the sum assured and the bonus declared. This has been one of the main selling points for LIC policies.
    • The proposed “partial” divestment, in all likelihood, will ensure that the majority stake is still with the government, thereby continuing the sovereign guarantee.

    3) Less govt interference will be a positive for LIC’s financial health

    • For LIC, it will be a significant task to enhance the quality of asset management given that the government sometimes is reliant on it to bail out PSUs, without delving deep into the fiscal prudence of these assets.
    • Being under scrutiny, the quality of asset management by LIC will be enhanced as the government’s influence on its asset management will reduce.
    • Further, LIC services a few state-sponsored schemes which have underwriting challenges on the commercial front. With the IPO, these services might fall into place, improving the overall stability of LIC.
    • In a nutshell, with less federal interference, LIC will be more accountable with strong governance protocols, which will be a positive for its financial health.
    • However, the sovereign guarantee element currently enjoyed by each LIC policyholder might cease to exit after the IPO. Some policyholders may then find it hard to trust LIC.

    4) If sovereign guarantee continues, policyholders won’t perceive risk

    • So far, LIC has operated almost like a mutual insurance company by passing on most of the earnings to the policyholders and keeping very little as profits, despite having a massive operation.
    • The listing of LIC is a positive move which will result in transparency of the corporation in public view, sparking renewed interest in the insurance industry in international markets.
    • Government-owned General Insurance Co. of India is already listed, so the process and transparency will not be any different.
    • As long as sovereign guarantee over the maturity proceeds and sum assured continue, policyholders won’t perceive any risk.
    • The return on policies may have to be moderated to boost profitability and technical reserves in the face of shareholder and analyst scrutiny.
    • It is not clear how much of the company will be diluted. So, the opportunity for the general public to pick up equity in LIC in the IPO may be limited.

    Challenges

    Structural challenges

    • LIC can even evolve into a bank like many of its global peers like Axa, Berkshire, and Munich Re.
    • But even after the listing, the LIC stock will still be controlled by the Indian government.
    • And, it will continue to exercise some amount of control.
    • So, investors in LIC might face what those of PSU banks do – be a part of poor governance, bad decisions — despite controlling 70% of the country’s banking system.

    Market hurdles

    • LIC’s own issues are not the only challenge the company would face in going public. It also remains to be seen if the Indian share market is ready to absorb such a large public issue.
    • Whilst it will definitely help deepen the markets, given that SEBI regulations need a minimum dilution of 10 per cent to the public, it is unclear if there is enough liquidity for such a large sized IPO.
    • Additionally, LIC has been a port of call for various PSU fund raises in the past.
    • Once a behemoth the size of LIC goes for listing, it will be interesting to see if other private life insurance companies will still be able to attract funds at expected valuation.

    Impact on growth

    • The size of the IPO will determine the extent of liquidity it will suck out, but Indian markets do not have depth to take the issue of a very size.
    • Critics argue that it’s too early for LIC to go public. LIC could see plenty of high growth despite the ongoing slowdown in the economy.

    Fears of disclosure

    • The company’s books and operations have been opaque for far too long but it is trusted by 250 million policyholders.
    • It could have been the saviour for many more listed state-owned companies, but the government has decided to sell the golden goose itself.
    • LIC is also famous for investing millions whenever stock market tanks, just to prop it up.
    • But once it is listed in the market, these tricks will be impossible to execute. The disclosures will lead to a lot of discontents due to NPAs.

    Investors trust

    • Being one of the biggest financial institutions of the country, the move to privatise LIC will shake the confidence of the common man and will be an affront to our financial sovereignty.
    • The very purpose of LIC to provide insurance coverage to socially and economically backward class at a reasonable cost will be defeated and motto will change from service to profit.

     

    Way Forward

    • LIC is all set to see significant disruption. The scale of that disruption would be unprecedented within the organisation and outside.
    • Over the years, LIC has become ‘the lender of last resort’ to the Government of India.
    • Confronted with an unprecedented fiscal deficit and worried by an economy in crisis, the government has to find resources.
    • This disinvestment is also a preferred option for ideological and practical reasons.
    • The government could utilize the money gained by selling off its stakes to improve services in public goods like infrastructure, health and education.
    • However, listing LIC wouldn’t be an easy task and calls for a political will.
    • Private insurers in India like HDFC Life, SBI Life and ICICI Pru Life are growing faster than LIC due to their small size.
    • In the new avatar, LIC would have to benchmark itself against private insurers and global insurance giants like

     

    Also read

    Disinvestment Policy in India.

     



    References

    https://www.livemint.com/money/personal-finance/what-does-partial-divestment-in-lic-mean-for-its-policyholders-11580664343791.html

    https://www.moneycontrol.com/news/business/moneycontrol-research/listing-lic-a-big-reform-4893191.html

    https://indianexpress.com/article/explained/life-insurance-corporation-lic-ipo-explained-6245933/

    https://www.businesstoday.in/markets/ipo-corner/lic-ipo-nirmala-sitharaman-budget-lic-npas-reliance-industries-tcs-hdfc-bank-stocks/story/395342.html

    https://www.firstpost.com/business/lic-ipo-about-1-lakh-employees-stage-walk-out-across-country-against-proposed-stake-sale-future-course-of-action-to-be-decided-next-month-8005191.html

  • [Burning Issue] West Asia Peace Plan


    Context

    • With West Asia Peace plan the US plans to revive the stalled two-state talks between the Israelis and the Palestinians.
    • Israel has consistently been encroaching more and more in the West Bank through its settlements.
    • Israeli PM Benjamin Netanyahu, who had earlier spoken against the two-state solution, has accepted the Trump plan.

    Background

    • After World War I, both West Bank and the Gaza Strip became part of British-mandated Palestine.
    • But by the end of World War II, there was a strong demand from Jews fleeing Nazi Europe for a homeland within Palestine, an Arab-dominated region.
    • It also had to do with Jerusalem, considered a holy city by the Jews, which was inside British-mandated Palestine.
    • When the British mandate ended in 1947, the UN proposed an Arab-Jewish partition of Palestine — between Palestine and the new state of Israel.
    • This partition plan mandated 53 per cent of the land to the Jewish-majority state (Israel) and 47 per cent to the Palestinian-majority state (Palestine).

    Birth of Israel

    • The idea of creating a new-Jewish majority state didn’t bode well for the Arab countries in the Middle East.
    • Jewish paramilitary groups, however, formed the state of Israel by force in 1948.

    Shrinking of Palestine

    • This prompted a deadly war with its Arab neighbours — Egypt, Iraq, Lebanon, Syria, and Jordan in 1948. This was the first Arab-Israeli war.
    • Israel won this war and ended up occupying more land than previously envisaged in the 1947 UN partition plan.
    • By the end of the war in 1949, Israel had taken up 78 per cent of what was supposed to be original Palestine. The Palestinian territory shrank to 22 per cent of what it had earlier been.
    • Meanwhile, the West Bank and East Jerusalem came under Jordan’s rule while West Jerusalem went to Israel. The Gaza Strip was under Egyptian military rule after the 1949 war.

    Six-Day War of 1967

    • In 1967, the Arab countries again refused to recognise Israel as a state, which led to another war — known as the Six-Day War.
    • Israel won this war too and occupied even more parts of Palestine.
    • The West Bank, the Gaza Strip and East Jerusalem — which houses the holy Old City — came under Israel’s control. It also occupied Syrian Golan Heights and Egypt’s Sinai Peninsula.
    • With the exception of the Sinai Peninsula, all other parts remain occupied by Israel till date.
    • Since 1967, a large part of the Palestinian population had been living under Israeli-occupied territories in both West Bank and the Gaza Strip.

    The core of the dispute: West Bank & Gaza Strip

     

    West Bank

    • The West Bank is located to the west of the Jordan River.
    • It is a landlocked territory, bordered by Jordan to the east and Israel to the south, west and north.
    • Following the Oslo Accords between the Israeli government and the Palestine Liberation Organization (PLO) during the 1990s, part of the West Bank came under the control of the Palestinian Authority.
    • With varying levels of autonomy, the Palestinian Authority controls close to 40 per cent of West Bank today, while the rest is controlled by Israel.

    Gaza Strip

    • The Gaza Strip is a small boot-shaped territory along the Mediterranean coast between Egypt and Israel.
    • A couple of years later in 2007, Hamas, an anti-Israel military group, took over Gaza Strip. The militia group is often involved in violent clashes with the Israeli Defence Forces.
    • While Palestine has staked claim to both territories — West Bank and Gaza Strip — Israel’s objective has been to keep expanding Jewish settlements in these regions.

    Both the West Bank and Gaza Strip are home to a large number of Palestinian populations. There are approximately 2 million Palestinians in the Gaza Strip and 3 million in the West Bank, according to the Palestinian Authority’s Population Registry.

    The West Asia Peace Plan

    • The plan unveiled by Trump seeks to give the Israelis what they have long wanted — an expansive state with Jerusalem as its “undivided capital” and tight security control over a future Palestinian state.
    • The Trump Plan is a 180-page document called “Peace for Prosperity”.
    • The plan seeks to address most of the contentious issues in the conflict such as the border of Israel, the status of Palestinian refugees, Jewish settlements on the West Bank, land swap between Israel and Palestine, Israel’s security concerns and the status of the city of Jerusalem.

    Takeaways of the Plan

    The creation of a “Palestinian state” must meet a set of basic conditions where Palestinian leaders must:

    • accept peace by recognizing Israel as a Jewish national state
    • thus, Arabs with Israeli citizenship will receive the status of a national minority in Palestine, in their homeland
    • reject “terrorism” in all its forms (“In order to achieve a comprehensive peace, the Palestinian people must clearly state that they reject the ideology of destruction, terror and conflict”)
    • reach agreements that relate to the “vital” needs of Israel and the region
    • create effective institutions and choose pragmatic solutions; “pragmatic decisions” refers primarily to peace with Israel under Israeli conditions

    1) Jerusalem: The undivided Capital

    • Jerusalem, perhaps the most contentious issue, would be “the undivided capital” of Israel, with Palestine gaining its capital in the east of the city — beyond the security border Israel has already built.
    • In return, Israel would freeze further settlement activities on the West Bank for four years — the time for negotiations.

    2) Land Swap

    • According to the Oslo Accords, the West Bank was divided into three areas and only one of them is under the direct control of the Palestinian Authority.
    • The plan proposes some land swap for the Israeli annexation of the West Bank Jewish settlements.
    • It seeks to enlarge Gaza and connect the strip with the West Bank through a tunnel.
    • The Arab towns in the southeast of Israel, which are close to Gaza, could become part of a future Palestinian state.

    3) Curb on Hamas

    • During this period, the Palestinian Authority should dismiss its current complaints at the International Criminal Court against Israel and refrain itself from taking further actions.
    • It should also crackdown on “terrorist” groups such as Hamas and the Islamic Jihad.

    4) Investment Plans

    • The US has also proposed $50 billion in investment over 10 years should Palestine accept the proposals.
    • In the final settlement, Palestine would get control over more land than what it currently controls.

    5) Security restrictions

    • Following the signing of the agreement, the State of Israel will maintain responsibility for Palestinian security.
    • The State of Israel will be responsible for the security of all international crossings of the Palestinian State.
    • The Palestinian state must be completely demilitarized.
    • A Palestinian state will be prohibited from entering into military, intelligence or security agreements with any state or organization that the State of Israel views negatively in terms of its security.

    End of the Palestinian aspirations

    • The US has proposed to almost all of these issues favour the Israeli positions.
    • For example, Israel would be allowed to annex the Jewish settlements on the West Bank as well as the Jordan Valley.
    • The Palestinian refugees, who were forced out from their homes during the 1948 Arab-Israeli war that followed the declaration of the state of Israel in historic Palestine, would not be allowed to return.
    • They could move to the future Palestinian state, be integrated into the host countries or settled in other regional countries.

    Implications for Palestine

    • The Palestine position is backed by most of the world powers is the formation of an independent, sovereign Palestinian state based on the 1967 border.
    • But the US has effectively rejected the Palestinian claims outright and asked them to make more compromises.
    • And for this, the Palestinians should take action against militant groups, stop supporting Palestinian families of those jailed or killed by Israel and refrain it from questioning the occupation in international fora.
    • As a result, from all of the above, it is clear why the Palestinians are not ready to accept such a “limited sovereignty” version of the Palestinian state.

    India’s stance

    • India has since long been maintaining that Israel-Palestine conflict should be resolved through negotiation resulting in sovereign, independent, viable and united State of Palestine, with East Jerusalem as its capital.
    • India has urged both countries to “engage with each other, including on the recent proposals put forward by the United States, and find an acceptable two-state solution for peaceful coexistence”.

    Conclusion

    • The plan re-iterates the ideals of US fondness of Israel. It is no way a negotiation but a dictation of the vested US interest to control the Arab region.
    • The consequences of America’s poor understanding of West Asia geopolitics are there to see in Iraq and Libya, among other states in the region.
    • Netanyahu needs the plan now because the one-sided, all-out-for-Israel US vision will divert attention from a corruption indictment that was filed against him in court a few days ago.
    • Call upon the international community to divest from, boycott and sanction Israel in order to stop the “ongoing catastrophe”. 

    Way Forward

    • The situation in Palestine is not a conflict but a struggle against settler colonialism. Not unlike the struggle against Apartheid South Africa.
    • It is a travesty of truth that the influential and all-pervasive pro-Israel lobby has stayed silent on this plan of U.S.
    • Land grabbing with force has been a fundamental element of Israel’s approach towards the Palestinians.
    • It is time for international actors who care about the situation of the Palestinians and start pushing for the latter solution.
    • The world at large needs to come together for a peaceful resolution to ensure a viable and long-lasting solution to solve this issue.
    • However, with the reluctance of the Israeli government and the US involved in this issue, it may not be possible in the near future.
    • Pressure from the outside, a continued popular struggle from the inside and a clear Palestinian vision for the future can turn this vision into reality.

     



    References

    https://www.civilsdaily.com/news/explained-west-asia-peace-plan/

    https://eurasiantimes.com/why-palestine-has-rejected-the-trump-peace-plan-to-resolve-israel-palestine-conflict/

    https://www.deccanherald.com/national/national-politics/india-keeps-mum-on-east-jerusalem-reacts-cautiously-on-us-president-donald-trumps-west-asia-peace-plan-799417.html

  • [Burning Issue] Comprehensive Bodo Settlement Agreement

     

    • The MHA, the Assam government and the Bodo groups have signed an agreement to redraw and rename the Bodoland Territorial Area District (BTAD) in Assam, currently spread over four districts of Kokrajhar, Chirang, Baksa and Udalguri.
    • Several Bodo groups led have been demanding a separate land for the ethnic community since 1972, a movement that has claimed nearly 4,000 lives.

    Who are the Bodos?

    • Bodos are the single largest tribal community in Assam, making up over 5-6 per cent of the state’s population. They have controlled large parts of Assam in the past.
    • The four districts in Assam — Kokrajhar, Baksa, Udalguri and Chirang — that constitute the Bodo Territorial Area District (BTAD), are home to several ethnic groups.

    What was the dispute?

    • The Bodos have had a long history of separatist demands, marked by armed struggle.
    • In 1966-67, the demand for a separate state called Bodoland was raised under the banner of the Plains Tribals Council of Assam (PTCA), a political outfit.
    • In 1987, the All Bodo Students Union (ABSU) renewed the demand. “Divide Assam fifty-fifty”, was a call given by the ABSU’s then leader, Upendra Nath Brahma.
    • The unrest was a fallout of the Assam Movement (1979-85), whose culmination — the Assam Accord — addressed the demands of protection and safeguards for the “Assamese people”, leading the Bodos to launch a movement to protect their own identity.
    • In December 2014, separatists killed more than 30 people in Kokrajhar and Sonitpur. In the 2012 Bodo-Muslim riots, hundreds were killed and almost 5 lakh were displaced.

    Reasons behind separatist tendencies

    • For centuries, Bodos survived Sanskritisation without giving up their original ethnic identity.
    • However, in the 20th century, they had to tackle a series of issues such as illegal immigration, the encroachment of their lands, forced assimilation, loss of language and culture.
    • The 20th century also witnessed the emergence of Bodos as a leading tribe in Assam which pioneered the movements for safeguarding the rights of the tribal communities in the area.
    • From then on, they have been consistently deprived of the political and socio-economic rights by successive state and central governments.
    • The Bodos have not only become an ethnic minority in their own ancestral land but have also been struggling for their existence and status as an ethnic community.

    Background of the accord

    • The first Bodo accord was signed with the ABSU in 1993, leading to the creation of a Bodoland Autonomous Council with limited political powers.
    • The recent Bodo Accord was signed in 2003 which resulted in the establishment of an autonomous administrative unit- Bodoland Territorial Council (BTC) under Sixth Schedule of the Constitution of India.
    • The BTC has been divided into four districts viz. Kokrajhar, Chirang, Baska, and Udalguri.
    • The BTAD and other areas mentioned under the Sixth Schedule of the Constitution have been exempted from the Citizenship (Amendment) Act, 2019.

    Highlights of the 2020 Agreement

    The Bodoland Territorial Council, All Bodo Students Union (ABSU), various factions of National Democratic Front of Bodoland (NDFB) — Gobindo Basumatary faction, Dhirendra Bodo faction, RanjanDaymari faction and Saoraigwra faction and the United Bodo Peoples Organization (UBPO) are party to the agreement with the Centre and the Assam government.

    • As per the agreement, villages dominated by Bodos that were present outside the BTAD would be included and those with non-Bodo population would be excluded.
    • Bodos living in the hills would be conferred a Scheduled Hill Tribe status.
    • The BTAD is to be renamed as the Bodoland Territorial Region (BTR).

    I. Rehabilitation and relief

    • The criminal cases registered against members of the NDFB factions for “non-heinous” crimes shall be withdrawn by the Assam government and in cases of heinous crimes it will be reviewed.
    • A Special Development Package of Rs. 1500 Crore would be given by the Centre to undertake specific projects for the development of Bodo areas.

    II. A separate Commission

    • It proposes to set up a commission under Section 14 of the Sixth Schedule to the Constitution which will recommend the inclusion or exclusion of tribal population residing in villages adjoining BTAD areas.
    • In this commission, besides State government, there will be representatives from ABSU and BTC. It will submit its recommendation within six months.

    III. Changes in Legislature

    • The total number of Assembly seats will go up to 60, from the existing 40.
    • The present settlement has a proposal to give more legislative, executive, administrative and financial powers to BTC.

    IV. Bodo as an official language

    • The Assam government will also notify Bodo language as an associate official language in the state and will set up a separate directorate for Bodo medium schools.
    • Bodo with Devnagri script would be the associate official language for the entire Assam.

    Significance of the agreement

     

    I. Satisfying identity aspiration

    • The signing of the agreement would end the 50-year-old crisis and violent struggle.
    • The renaming is designed to satisfy the identity and aspirations of the Bodo people.

    II. Not ceding territory solved tricky matter

    • Renaming also solved the politically tricky matter of ceding territory for the government of Assam.
    • Ceding territory would also have fuelled similar demands from the other parts of the state like- Karbi Anglong, Dima Hasao and Cachar, which also have homelands of non-Ahom ethnicities.

    III. Avoiding similar demand from other states

    • Indeed, it could have affected the ongoing Naga peace process, leading Naga rebels to demand territorial and administrative autonomy in Naga homelands in Manipur.

    IV. End of militancy

    • Around 1500 cadres of BODO militant factions will be rehabilitated by Centre and Assam Government.

    Way Forward

    • The Government of Assam needs to ensure that the pact signed changes the situation on the ground and leads to a development on the ground.
    • The state also needs to allay the fears in the Bengali-speaking minority.
    • Moreover, true autonomy, true peace, and true development are always worth more than the paper on which they are promised.

    Conclusion

    • The accord aims to bring together the leading stakeholders under one framework i.e. those who were previously associated with armed resistance groups.
    • The accord will end violence pertaining to Bodoland and help those associated with armed struggle enter the mainstream.
    • The Accord will further protect and popularize the unique culture of the Bodo people. They will get access to a wide range of development-oriented initiatives.

     



    References

    https://www.civilsdaily.com/news/comprehensive-bodo-settlement-agreement/

    https://www.civilsdaily.com/news/explained-the-bodoland-dispute/

    https://www.civilsdaily.com/news/op-ed-snap-optimal-delivery-or-mere-optics-in-bodo-peace-deal/

  • [Burning Issue] Outbreak of Coronavirus

     

    • An outbreak of a new Coronavirus that began in the Chinese city of Wuhan has already killed at least 106 people in China.
    • Infections have been confirmed in many other countries. But of the 4,500 people who have so far contracted the virus, the vast majority live in China.
    • With crumbling health infrastructure due to an overburden of diseases in the country, India’s preparedness for handling epidemics such as novel coronavirus (nCoV) becomes a major challenge.
    • The World Health Organisation has warned that due to human to human transmission, the virus can fast spread in other countries also.

    A world pandemic begins with ignorance

    • Chinese officials underestimated the severity of the outbreak, even downplaying the mode of infection, and this attitude had an important role in the rapid spread of the disease in the country.
    • As India prepares itself against the virus, a similar denial or underplaying of the crisis can have equally serious consequences.

    What is the Novel Coronavirus (nCoV?)

    • Coronaviruses are large family of viruses, which cause illnesses to people and also circulate in animals including camels, cats and bats.
    • They cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).
    • 2019-nCoV is a new strain that has not been previously identified in humans.
    • Human to human transmission has been recently confirmed. However the source remains unknown.

    How does it spread?

    • Coronaviruses are zoonotic, meaning they are transmitted between animals and people.  
    • Detailed investigations found that SARS-CoV was transmitted from civet cats to humans and MERS-CoV from dromedary camels to humans.
    • Several known coronaviruses are circulating in animals that have not yet infected humans.

    Signs and symptoms of Coronavirus

    1. Coughing
    2. Fever
    3. Pneumonia
    4. Shortness of breath
    5. Vomiting
    6. Diarrhea
    7. In advanced cases, the patient can have very serious complications, which can lead to death, such as: Sever pneumonia, Renal (Kidney) failure

    Its’ prevention

    • Standard recommendations to prevent infection spread include regular hand washing, covering mouth and nose when coughing and sneezing, thoroughly cooking meat and eggs.
    • Avoid close contact with anyone showing symptoms of respiratory illness such as coughing and sneezing.
    • WHO also advises that people should avoid close contact with anyone showing symptoms of respiratory illness such as coughing and sneezing.

    Why such major outbreaks occur in China only?

    • Several deadly new viruses in recent years have emerged in China — Severe Acute Respiratory Syndrome (SARS), bird flu, and now the novel Coronavirus (nCOV).
    • The reason could lie in the busy food markets dotting cities across the country — where fruits, vegetables, hairy crabs and butchered meat are often sold next to bamboo rats, snakes, turtles, and palm civets.
    • Closely packed stalls in busy marketplaces, the Chinese taste for exotic meats, and the high population density of cities create the conditions for the spread of zoonotic infections.

    Impacts of Coronavirus

    • For starters, when we have a disease outbreak, the government has to spend a lot of money on diagnosing and treating patients.
    • It’s also imperative that it invest in preventive measures i.e. setting up protocols to screen people in high-risk areas, commission studies to understand the virus/epidemic better, coordinate with other countries to contain the outbreak.

    Human cost of the outbreak

    • When the healthcare infrastructure in your country can’t deal with the crisis effectively, mortality rates shoot up.
    • Think, Ebola. Over 11,000 people died in Guinea, Liberia, and Sierra Leone. But that’s not all.
    • Because the response team was so ill-equipped, over 150 health care workers perished in the process.
    • As the WHO notes — “Every single loss of a doctor or nurse diminishes response capacity significantly” And this further aggravates the crisis.

    Skewed production

    • China is now one of the largest producers and consumers of a wide range of commodities, including oil, steel, copper, corn, wheat and soybean.
    • But considering the country is now in lockdown, there isn’t a whole lot of activity going on here.
    • When workers don’t go back to work, you have to leave the smelters and the refineries as is. Productivity suffers, output declines and supply industries are hit hard.
    • Countries dependant on China for commodities also take a hit.

    Impact on Economy

    • When there are such devastating human costs involved, you will see a material impact on the economy almost immediately.
    • These are people who participate in the labour force i.e. people who work, earn and spend.
    • The eventual loss in productivity because of a sudden collapse of the nation’s workforce doesn’t bode well for anybody.
    • All the people desist from visiting public places, the movies, trains etc. The fear of a widespread epidemic can manifest in ways that further erodes confidence in an economy and hurt it in perpetuity.
    • We are talking about cancelled tourist trips, a decline in retail trade and an overall sense of doom and gloom surrounding the country.
    • Past evidence has shown that consumer spending also goes down dramatically when news of an outbreak spreads.

    India steps up vigil

    • Thermal screening is being done at seven designated airports—New Delhi, Kolkata, Mumbai, Chennai, Bengaluru, Hyderabad and Kochi.
    • The government has set up a 24×7 helpline number to attend to queries about the coronavirus as number of cases rose across the world.
    • Anyone seeking information can call on the number 011-23978046,” the Union ministry of health said in a tweet.
    • Indian authorities are prepared to evacuate citizens from Hubei Province, China.

    India’s limits

    • India’s ability to contain an epidemic is far less than that of China.
    • Its scientific infrastructure is less advanced and extensive, its ability to quarantine a large number of people non-existent, its hospitals ill-equipped to treat large armies of sick people.
    • The only advantage is the knowledge of the Chinese experience, which India can use to limit the spread of the disease.
    • If this is true, there may be a large number of infected people spread widely in the Chinese population, and it makes controlling the epidemic far more difficult.
    • India’s scientific expertise, despite its depth in pockets, is not broad enough to respond quickly in such situations.
    • As the director of the National Institute of Virology said recently, India needs 20 times as many virologists as it has at the moment.
    • For a country of 1.3 billion people, India has too few scientists and healthcare professionals to deal with such emergencies.

    Is India prepared to face this havoc?

    • Current health infrastructure in India paints a dismal picture of healthcare delivery system in the country. Health Infrastructure has been described as the basic support for the delivery of public health activities.
    • Public health experts believe that India is ill-equipped to handle such emergencies. It is not prepared to tackle health epidemics, particularly given its urban congestion.
    • In fact given the city structure and the way the settlements have grown epidemics once occurs will spread at a galloping rate.
    • The slum clusters all around the cities and the unhygienic growth, poor waste disposal system will only aggravate the situation.

    Way Forward

    • The aerial spread of the newly detected coronavirus poses a threat of rapid dissemination but it can still be contained with an efficient response which combines effective public health, microbiological, clinical and communication responses.
    • While our laboratory network has improved after the H1N1 scare, much needs to be done to improve the community facing primary health services and risk communication to the public.
    • In general, hospital services can quickly gear up to treat severe cases in urban areas but rural healthcare needs a step up.
    • Kerala’s success in responding swiftly and smartly to the Nipah outbreak should be a role model to other states.
    • Effective risk communication to the general public needs to be circulated to prevent panic and provide advice on precautionary measures.
    • Central and state health agencies must act in tandem. The media too must helping in increasing awareness without triggering panic.

    Conclusion

    • Capacity to contain a virus outbreak depends on the ability to identify cases and contacts in the community on clinical criteria while ensuring smart surveillance on inward travellers; isolate and identify the causative virus; treat severe cases while counselling mild cases.
    • India’s healthcare system is too small for such a large population.
    • Dealing with pandemics would require a multi-pronged approach, ranging from mathematical analysis to the ability to rapidly develop drugs and vaccines.

     



    References

    https://www.civilsdaily.com/news/pib-novel-corona-virus-ncov/

    https://www.civilsdaily.com/news/why-china-has-emerged-as-the-epicentre-of-global-outbreaks-of-disease/

    https://www.business-standard.com/article/current-affairs/limited-expertise-may-hurt-india-s-ability-to-contain-coronavirus-outbreak-120012800181_1.html

    https://www.livemint.com/news/india/is-india-equipped-to-handle-health-epidemics-like-coronavirus-11580199650282.html

  • [Burning Issue] Annual Status of Education Report 2019

     

    Context

    • The recently released ASER (Annual Status of Education Report) is an annual survey released by NGO Pratham.
    • It aims to provide reliable annual estimates of children’s schooling status and basic learning levels for each state and rural district in India.
    • It is the largest citizen-led survey in India and is also the only annual source of information on children’s learning outcomes available in India today.

    Key highlights of the report

     

    • Only 16% of children in Class 1 in 26 surveyed rural districts can read text at the prescribed level, while almost 40% cannot even recognise letters, according to
    • Only 41% of these children could recognise two-digit numbers.

    Private schools on progress

    • Of six-year-olds in Class 1, 41.5% of those in private schools could read words in comparison to only 19% from government schools.
    • Similarly, 28% of those in government schools could do simple addition as against 47% in private schools.
    • This gap is further exacerbated by a gender divide: only 39% of girls aged 6-8 are enrolled in private schools in comparison to almost 48% of boys.
    • The report also found that a classroom could include students from a range of age-groups, skewing towards younger children in government schools.

    Role of Mothers

    • Among the key findings of ASER 2019 is that the mother’s education often determines the kind of pre-schooling or schooling that the child gets.
    • The report says that among children in the early years (ages 0-8), those with mothers who had completed eight or fewer years of schooling are more likely to be attending anganwadis or government pre-primary classes.
    • With 75% of women in the productive age group not in the workforce, they can be better engaged in their children’s development, learning and school readiness.

    Determinants of poor outcomes

    • The ASER report shows that a large number of factors determine the quality of education received at this stage, including the child’s home background, especially the mother’s education level; the type of school, whether anganwadis, government schools or private pre-schools; and the child’s age in Class 1.
    • More than a quarter of Class 1 students in government schools are only 4 or 5 years old, younger than the recommended age.
    • The ASER data shows that these younger children struggle more than others in all skills.
    • Permitting underage children into primary grades puts them at a learning disadvantage which is difficult to overcome,” said the report.

    Why are children entering school before 6?

    • This is partly due to the lack of affordable and accessible options for pre-schooling. Therefore, too many children go to Std I with limited exposure to early childhood education. 
    • Children from poor families have a double disadvantage — lack of healthcare and nutrition on one side and the absence of a supportive learning environment on the other. 
    • Although the Anganwadi network across India is huge, by and large, school readiness or early childhood development and education activities have not had a high priority in the ICDS system.

    Key suggestions made by the report

    • ASER found that the solution is not to spend long hours teaching children the 3Rs.
    • Counter-intuitively, the report argues that a focus on cognitive skills rather than subject learning in the early years can make a big difference to basic literacy and numeracy abilities.
    • The survey shows that among Class 1 children who could correctly do none or only one of the tasks requiring cognitive skills, about 14% could read words, while 19% could do single-digit addition.
    • However, of those children who could correctly do all three cognitive tasks, 52% could read words, and 63% could solve the addition problem.

    Why is learning level in schools important?

    • The quality of the learning level bears directly on India’s future workforce, its competitiveness and the economy.
    • India’s demographic dividend depends on the learning level of students. Thus quality of education has a direct bearing on any economy.
    • With some 240 million students or nearly 20% of the Indian population in school, their quality of learning or lack of it assumes significance for the competitiveness of the country.
    •  It has an impact on the quality of life, efficiency at the workplace, and labour productivity issues.

    Policies under suspicion

    • Access to elementary (classes I-VIII) schooling is almost universal and the number of children out of schools is below 4%, but a quality deficit, that too for more than a decade, raises questions about the priorities of governments at the central and state levels.
    • This poor learning outcome in India is despite the Right to Education (RTE) Act has been in force since April 2010 making eight years of education compulsory for children and the Centre floating schemes such as “Padhe Bharat Badhe Bharat”, apart from states’ efforts.

    What needs to be done?

    • Setting up a Review mechanism: Now that the ASER measure is available for 10 years, the Centre should institute a review mechanism involving all States for both government and private institutions, covering elementary education and middle school.
    • Shifting focus on outcome-based learning: A public consultation on activity-based learning outcomes, deficits in early childhood education, and innovations in better performing States can help.
    • Improve the quality of education: At present, children start learning in a variety of environments: from poorly equipped Anganwadi centres to private nurseries. Therefore, any policy framework should also consider this aspect.

    Focus on productive learning

    • ASER data shows that children’s performance on tasks requiring cognitive skills is strongly related to their ability to do early language and numeracy tasks,” says the report.
    • This suggests that focussing on play-based activities that build memory; reasoning and problem-solving abilities are more productive than an early focus on content knowledge.
    • Global research shows that 90% of brain growth occurs by age 5, meaning that the quality of early childhood education has a crucial impact on the development and long-term schooling of a child.

    Need for expanding Anganwadi outreach

    • There is considerable scope for expanding Anganwadi outreach for three and four-year-old children.
    • All-India data from 2018 shows that slightly less than 30 per cent children at age three and 15.6 per cent of children at age four are not enrolled anywhere.
    • Expanding access to anganwadis is an important incremental step.
    • Strengthening the early childhood components in the ICDS system would help greatly in raising school readiness among young children.

    Need to extend RTE age limit

    • The Right to Education Act refers to free and compulsory education for the age group six to 14.
    • It is commonly assumed that children enter Standard I at age six and that they proceed year by year from Std I to Std VIII, reaching the end of elementary school by age 14.
    • However, the practice on the ground is quite different. ASER 2018 data show that 27.6 per cent of all children in Std I are under age six.

    Considering age implications for children’s learning

    • The gap between policy and practice is also very visible in what happens inside preschools and pre-primary grades.
    • Data from ASER 2019 indicate that in Std I, the ability to do cognitive activities among seven-eight-year olds can be 20 percentage points higher than their friends who are five years old but in the same class.
    • In terms of reading levels in Std I, 37.1 per cent children who are under six can recognise letters whereas 76 per cent of those who are seven or eight can do the same.
    • Many believe that more years of schooling is better than less and that the sooner the child enters “school” the faster she or he will learn and be ready for future learning.

    Conclusion

    • The latest ASER assessment of how children are faring in schools in rural areas indicates there has been no dramatic improvement in learning outcomes.
    • There is concern that curricular expectations on literacy and numeracy have become too ambitious, requiring reform.
    • The enactment of the Right to Education Act was followed by a welcome rise in enrolment, which now touches 96% as per ASER data.
    • Empowering as it is, the law needs a supportive framework to cater to learners from different backgrounds that often cannot rely on parental support or coaching.

    Way Forward

    • It is a long time to have only awareness, and a quantum jump in the education sector is the need of the hour.
    • Simultaneously we need to focus on three aspects—bigger spending on education (upto 6% of GDP instead of the present 2.7%), political willingness to improve education, and a drastic change in the quality of teacher education.
    • There is a need to leverage the existing network of Anganwadi centres to implement school readiness.
    • The year 2020 marks the 10th anniversary of the RTE Act.
    • This is the best moment to focus on the youngest cohorts before and during their entry to formal schooling and ensure that 10 years later they complete secondary school as well-equipped and well-rounded citizens of India.

     



    References

    https://www.civilsdaily.com/news/annual-status-of-education-report-rural-2019/

    https://www.livemint.com/Opinion/ulDY2PQfNpsrha1Lr5Oe2N/Opinion–Indiaseducationsector-needs-a-quantum-shift.html

    https://indianexpress.com/article/opinion/columns/education-policy-india-schooling-6216711/

  • [Burning Issue] Bru– Reang Repatriation Agreement

    • The Ministry of Home Affairs has presided over the signing of an agreement between Union Government, Governments of Tripura and Mizoram and Bru-Reang representatives to end the 23-year old Bru-Reang refugee crisis.
    • 37,000 people of the Bru (or Reang) community were forced to flee their homes to neighbouring Tripura due to severe ethnic clashes in Mizoram.

    Bru Community: Refugees at home

    • The Bru or Reang is a community indigenous to Northeast India, living mostly in Tripura, Mizoram, and Assam.
    • In Tripura, they are recognised as a Particularly Vulnerable Tribal Group (PVTG).
    • Over two decades ago, they were targeted by the Mizo groups who demanded that the Bru be excluded from electoral rolls in the state.
    • In October 1997, following ethnic clashes, nearly 37,000 Bru fled Mizoram’s Mamit, Kolasib, and Lunglei districts to Tripura, where they were sheltered in relief camps.
    • Since then, over 5,000 have returned to Mizoram in nine phases of repatriation, while 32,000 people from 5,400 families still live in six relief camps in North Tripura.

    Miseries of the Bru

    • Under a relief package announced by the Centre, a daily ration of 600 gm rice was provided to every adult Bru migrant and 300 g to every minor. Some salt was also given to each family.
    • Every adult received a daily cash dole of Rs 5; every minor Rs 2.50.
    • Meagre allocations were made from time to time for essentials such as soap, slippers, and mosquito nets.
    • Most migrants sold a part of their rice and used the money to buy supplies, including medicines.
    • They depended on the wild for vegetables, and some of them have been practising slash-and-burn (jhum) cultivation in the forests.
    • They live in makeshift bamboo thatched huts, without permanent power supply and safe drinking water, with no access to proper healthcare services or schools.

    How did the agreement come about?

    • In June 2018, Bru leaders signed an agreement in Delhi with the Centre and the two-state governments, providing for repatriation to Mizoram.
    • Most residents of the camps, however, rejected the “insufficient” terms of the agreement.
    • The camp residents said the package did not guarantee their safety in Mizoram, and that they feared a repeat of the violence that had forced them to flee.
    • On November 16, 2019, Pradyot Kishore Debbarma, scion of Tripura’s erstwhile royal family, wrote to Home Minister seeking the resettlement of the Bru in the state.

    Highlights of the Quadripartite Agreement

    • All Bru tribals currently living in temporary relief camps in Tripura will be settled in the state if they want to stay on.
    • The Bru who returned to Mizoram in the eight phases of repatriation since 2009, cannot come back to Tripura.
    • Each resettled family will get 03 acre (1.5 ganda) of land for building a home, Rs 1.5 lakh as housing assistance, and Rs 4 lakh as a one-time cash benefit for sustenance.
    • They will also receive a monthly allowance of Rs 5,000, and free rations for two years from the date of resettlement.
    • All cash assistance will be through Direct Benefit Transfer (DBT), and the state government will expedite the opening of bank accounts and the issuance of Aadhaar, permanent residence certificates, ST certificates, and voter identity cards to the beneficiaries.

    Where will they be resettled?

    • Revenue experts reckon 162 acres required for the rehabilitation.
    • The move will require khash or government land, but since Tripura is a small state (only 10,491 sq km) the state authorities would explore the possibility of diverting forest lands.
    • Diverting forest land for human settlements will, however, need clearance from the MoEFCC which is likely to take at least three months.

    When will the resettlement take place?

    • Physical verification to identify beneficiaries will be carried out within 15 days of the signing of the deal.
    • The land for resettlement will be identified within 60 days, and the land for allotment will be identified within 150 days.
    • The beneficiaries will get housing assistance, but the state government will build their homes and hand over possession.
    • They will be moved to resettlement locations in four clusters, paving the way for the closure of the temporary camps within 180 days of the signing of the agreement.
    • All dwelling houses will be constructed and payments completed within 270 days.

    Issues With The Agreement

    • The agreement to settle some 35,000 Bru tribal people in Tripura and not in Mizoram from where they were displaced, could encourage the creation of ethnocentric States in the northeast, rights activists have said.
    • Activists argue that the  “solution” has the potential of creating conflicts between the Brus and indigenous communities of Tripura, but addresses the insecurities of a tribe that survived and fled violence.
    • The northeast has had a history of ethnic conflicts — not only between the “indigenous” and “settlers” but inter-tribe too — and issues could also arise within smaller sub-groups within the same tribe.
    • Decision could also throw up questions of citizenship, specifically in Assam where a process is on to define who is indigenous and who is not.
    • Assam-based activists said the move on the Brus legitimises the settlement of foreigners under Citizenship (Amendment) Act too, creating conflicts with the indigenous people as well as communities that settled earlier.

    Conclusion

    • Despite the issues flagged by various stakeholders in the region, the agreement has provided the Brus with a solution.
    • Various Mizo organizations have reassured they have welcomed those who came back.
    • According to these organizations, they have no issues with those identified by the government as Mizoram inhabitants even if they return now in spite of the Tripura rehabilitation offer.
    • The Brus cannot live in transit camps forever.

     



    References

    https://www.civilsdaily.com/news/agreement-to-end-the-bru-reang-refugee-crisis/

    https://indianexpress.com/article/explained/understanding-the-bru-refugees-settlement-mizoram-tripura-6224956/

    https://indianexpress.com/article/north-east-india/tripura/bru-migrants-mizoram-tripura-home-ministry-package-6220039/

  • [Burning Issue] Internet Shutdowns in India

     

    • Nowadays, India is widely considered to be a world leader in cutting off access to the Net.
    • Yet, there are no detailed official data on Internet shutdowns in India.
    • Taking a serious note of the situation, the Supreme Court has for the first time set the stage for challenging such suspension orders before courts.
    • It has directed the government to mandatorily publish all orders permitting Internet shutdowns. It has opened such decisions amenable to judicial review.

    Internet shutdowns in India

     

    • The cutting off internet access to control restive populations is an increasing trend around the world with India at the lead.
    • Of the 196 shutdowns in 25 countries documented by Access Now in 2018, as many as 134 were in India, followed by Pakistan (12).

    Legal mechanisms allowing shut-downs

    • Home Departments in the states are mostly the authorities that enforce shutdowns, drawing powers from The Temporary Suspension of Telecom Services (Public Emergency or Public Safety) Rules, 2017.
    • The decisions are reviewed by a state government review committee. The central government also has powers under this law, but has not used it.
    • Section 144 of the Code of Criminal Procedure has enabled many of the shutdowns in the recent past, especially until the time the telecom suspension Rules came into force in 2017.
    • Less frequently used is The Indian Telegraph Act, 1885, whose Section 5(2) allows central and state governments to prevent the transmission of messaging during a public emergency or in the interest of public safety or in the interests of the sovereignty and integrity of India etc.

    Who can pass the orders of Internet Shutdowns?

    • The Rules, issued under the Indian Telegraph Act, 1885, stipulate that only the Home Secretary of the Union or a state can pass an order, and that the order must include the reasons for the decision.
    • The order should be forwarded to a review committee the day after it is issued, and must be reviewed by the committee within five days to assess its compliance with Section 5(2) of The Telegraph Act.
    • Under this the government has the power to block the transmission of messages during a public emergency or for public safety.
    • In the case of the central government, the review committee comprises the Cabinet Secretary and the Secretaries of the Departments of Legal Affairs and Telecommunications.
    • In the case of states, the committee comprises the Chief Secretary, Secretary, Law or Legal Remembrancer In-Charge, Legal Affairs, and a Secretary to the state government (other than the Home Secretary).

    Who else can issue such orders?

    • In “unavoidable circumstances”, the order can be issued by an officer of the rank of Joint Secretary or above, authorised by the Centre or the state Home Secretary.
    • Telecom service providers must designate nodal officers to handle such requests.

    What laws governed this area before the 2017 Rules were notified?

    • Internet shutdowns were ordered under Section 144 of the CrPC, which gives District Magistrates broad powers during dangerous situations.
    • Even after 2017, many local shutdowns are issued under this law. Section 69(A) of the IT (Amendment) Act, 2008 gives the government powers to block particular websites, not the Internet as a whole.

    Why such shut-downs?

    • Worldwide, Internet shutdowns are typically used when there is civil unrest, in order to block the flow of information about government actions or to end communication among activists and prevent the spread of rumours and fake news.
    • Internet serves as a medium for the transmission of information through pictures, videos and text that have the potential to cause civil unrest and exacerbate the law and order
    • Check Fake News: Internet shutdowns are typically used when there is civil unrest, in order to block the flow of information about government actions or to end communication among activists and prevent the spread of rumours and fake news.
    • Shutdown helps prevent the “spreading of rumours and misinformation using social media platforms which can hinder peace and law and order”.
    • Preventive Response: Cutting off the Internet is both an early and preventive response to block restive groups to organise riots against the Government.
    • National Interest: The Internet cannot be independent of national sovereignty. Therefore, the necessary regulation of the internet is a reasonable choice of sovereign countries based on national interests.

    Kashmir deprived of Internet

    • The Centre has never ordered a nationwide Internet shutdown. Still, India tops the list of Internet shutdowns globally.
    • According to Software Freedom Law Center’s tracker, there have been 381 shutdowns since 2012, 106 of which were in 2019.
    • The ongoing shutdown in Kashmir is the longest ever in any democratic country.
    • The erstwhile state has seen 180 Internet shutdowns since 2012, according to SFLC.
    • The most commonly offered reasons for cutting access have been “encounter between security forces and militants”, “massive search operations”, “gunfights”, and “attack on CRPF men”.

    Issues with the Kashmir Shutdown

    • The Internet shutdown in Kashmir was not compliant with the Rules.
    • The Rules require the suspension to be temporary; also, the orders did not provide reasons for the restrictions.
    • The petitioner contended that the order claims a law-and-order danger, as opposed to a public order danger specified in the Rules.

    Justifying the Kashmir situation

    • Lastly, the court-mandated that all orders regarding the Kashmir case be made public, and to provide essential services such as e-banking and hospitals immediately.
    • What the centre was arguing, in this case, was that this is a matter of national security given that it pertains to Kashmir with a history of militancy.

    Supreme Court Judgement on Internet Shutdowns

    What did the court say?

    The court ordered the government to review its order, ruling that the freedom of speech and trade on the Internet is a fundamental right.

    • The court said that because the Rules require the order to be in accordance with Section 5(2) of The Telegraph Act, the order must be during a “public emergency” or in the “interest of public safety”.
    • Also, the suspension must be “necessary” and “unavoidable”.
    • In furtherance of the same, the State must assess the existence of an alternate less intrusive remedy,” the court said.
    • The Bench also said that the State should make the orders freely available, even though the Suspension Rules do not specify this.
    • The Rules also don’t specify a time limitation for the shutdown, the use of “Temporary” in the title notwithstanding. The Bench decided that an indefinite suspension is “impermissible”.

    The prime mover for the Judgment

    • The Temporary Suspension of Telecom Services (Public Emergency or Public Service) Rules, 2017 issued under the Telegraph Act deals with restricting Internet access.
    • It does not provide for publication or notification of the order suspending Internet, the apex court-mandated that such orders must be made available to the public.
    • The court declared that it is a “settled principle of law, and of natural justice” that requires publication of such orders, “particularly one that affects lives, liberty and property of people”.
    • This allows individuals to now challenge the orders before courts in J&K and rest of India.

    Internet suspension orders are subjected to Judicial Review

    • In the wake of protests against the new citizenship law, Internet services were suspended temporarily in parts of Uttar Pradesh, Delhi and Karnataka.
    • There should not be an excessive burden on free speech even if complete prohibition is imposed, and the government has to justify the imposition of such prohibition and explain why lesser alternatives were inadequate, the bench stated.
    • It ruled that Restrictions are to be imposed in an emergency. Hence they must be proportionate to the concern. Their objective must be legitimate rather than cavalier.
    • Authorities must necessarily consider an alternative and least restrictive mechanism before opting to restrict rights. Every decision to impose restriction should be backed by sufficient material and amenable to judicial review.

    Pacing up with technology

    • The bench also noted that the law needs to keep pace with technological development:
    • We need to note that the law should imbibe the technological development and accordingly mould its rules so as to cater to the needs of society.
    • Non-recognition of technology within the sphere of law is only a disservice to the inevitable.

    Internet as a necessity

    Lifeline for people

    • While the Internet is certainly the main source of information and communication and access to social media, it is so much more than that.
    • People working in the technology-based gig economy — like the thousands of delivery workers for Swiggy, Dunzo and Amazon and the cab drivers of Uber and Ola — depend on the Internet for their livelihoods.
    • It is a mode of access to education for students who do courses and take exams online. Access to the Internet is important to facilitate the promotion and enjoyment of the right to education.
    • It is also a mode to access to health care for those who avail of health services online. 
    • It is a means for business and occupation for thousands of small and individual-owned enterprises that sell their products and services online.

    Legal basis for Right to Internet

    • The access to the Internet is a right very similar to what the Supreme Court held with respect to the right to privacy in Justice K.S. Puttaswamy
    • The Human Rights Council of the United Nations Resolution dated July 2, 2018, on the promotion, protection and enjoyment of human rights on the Internet, made important declarations.
    • It noted with concern the various forms of undue restriction on freedom of opinion and expression online, including where countries have manipulated or suppressed online expression in violation of international law.
    • It said that the same rights that people have offline must also be protected online, in particular freedom of expression, which is applicable regardless of frontiers and through any media of one’s choice.

    The Kerala case

    • The High Court of Kerala made a start to the domestic recognition of the right to Internet access.
    • The judgment in Faheema Shirin R.K. v. State of Kerala & Others holds that “…a rule or instruction which impairs the right of the students cannot be permitted to stand in the eye of the law.” 
    • It notes that mobile and broadband Internet shutdowns impact women, girls, and marginalized communities more disproportionately than others.

    Trauma of shutdowns

     

    Economic impact

    • While there is no proven benefit of closing down the internet, there are serious economic repercussions.
    • A report by the Brookings Institute adjudged India to have topped the list by incurring losses to the tune of $968 million in 2016 itself.
    • Over the past five years, some 16,000 hours of Internet shutdowns cost the economy a little over $3 billion, according to estimates in a report by the Indian Council for Research on International Economic Relations (ICRIER).

    Governance hurdles

    • In Sept. 2018, the Dept. of Telecommunication had acknowledged the adverse impact of a rising number of internet shutdowns that State governments are ordering.
    • The Govt. has embarked upon a programme to deliver services through mobile and internet apart from promoting a cashless economy.
    • Neither banking transactions using credit and debit cards nor internet banking can be done, which leads to hardships to common citizens.

    No permanent solution

    • The practice of shutting down the internet not just disrupts the smooth functioning of the state at large but is also not in line with the fundamentals of democracy.
    • Internet shutdown cannot be a solution to a larger governance problem.
    • Shutting down the internet may result in information blackout that can also create hysteria, panic.

    Conclusion

    • It is time that we recognise that the right to access to the Internet is indeed a fundamental right within our constitutional guarantees.
    • The Internet is pretty much a basic human right, even if not legally defined as such, for most parts of the world — without access to the virtual world, a very large number of vital human activities simply stops.
    • Internet shutdowns leave people without access to information and other services that could be the difference between life and death.
    • It is in recognition of the Internet as a human right that the UN in 2016 passed a non-binding resolution condemning countries that disrupt Internet access to its citizens.

     Way Forward

    • There exists no qualitative or quantitative evidence to show that internet shutdowns are effective tools to restore normalcy.
    • In fact, the internet itself can be used to resolve the problem. For example, the Government can have verified sources to spread legitimate information across various mediums stating areas that are safe/affected the updated status of the situation, etc.
    • State interests like security are important because they are the prerequisites for us to exercise our freedoms. However, in pursuing this, the freedoms themselves cannot be suspended.
    • Therefore, the government needs to clearly lay down a comprehensive framework, stating the conditions behind such Internet shutdowns.

     

     



    References

    https://www.civilsdaily.com/news/internet-shutdowns-in-india/

    https://www.civilsdaily.com/news/sc-order-on-internet-shutdowns/

    https://www.civilsdaily.com/news/op-ed-snap-guarantee-internet-rights/

    https://www.thehindubusinessline.com/specials/india-file/the-trauma-of-internet-shutdown/article30560717.ece

  • [Burning Issue] The Mineral Laws (Amendment) Ordinance, 2020

    Context

    • In an attempt to attract investments in coal mining, the Union Cabinet approved the promulgation of Mineral Laws (Amendment) Ordinance 2020.
    • With this India has opened up the coal sector completely for commercial mining for all local and global firms after easing restrictions on end-use and prior experience in auctions.
    • The move is sought to bring an end to state-run Coal India Ltd’s (CIL) monopoly.

    Background: India’s Coal Sector

    • Coal is the most important and abundant fossil fuel in India. It accounts for 55% of the country’s energy need.
    • India has the fifth-largest coal reserves in the world producing 662.79 million metric tons (730.60 million short tons) in 2016–17.
    • The Coal resources of India are available in older Gondwana Formations of peninsular India and younger Tertiary formations of north-eastern region.
    • Due to high demand and poor average quality, India is forced to import high quality coal to meet the requirements of steel plants.

    Types of Coal found in India

    • Anthracite: It is the highest grade of coal containing a high percentage of fixed carbon. It is hard, brittle, black and lustrous. It is found in smaller quantity in regions of Jammu and Kashmir.
    • Bituminous: It is a medium grade of coal having high heating capacity. It is the most commonly used type of coal for electricity generation in India. Most of bituminous coal is found in Jharkhand, Odisha, West Bengal, Chhattisgarh, and Madhya Pradesh.
    • Subbituminous: It is black in colour, dull (not shiny) and has a higher heating value than lignite.
    • Lignite: It is the lowest grade coal with the least carbon content. It is found in the regions of Rajasthan, Tamil Nadu, and Jammu & Kashmir.

    About the Ordinance

    • The Union Cabinet approved promulgation of Mineral Laws (Amendment) Ordinance 2020 to amend the Coal Mines (Special Provisions) Act, 2015, as well as the Mines and Minerals (Development and Regulation) Act, 1957.

    Key Provisions

    • The ordinance democratizes the coal industry and makes it attractive for merchant mining companies, including multinationals to look at India.
    • The ordinance allows any India-registered company to bid and develop coal blocks.
    • It would allow any companies that do not have coal mine operations in India to also participate in coal block auctions.
    • The end-use restrictions – meaning coal produced from them could be used only for the designated captive purpose only and not traded in the market has now been lifted.
    • The central government can auction coal and lignite mining licences only to companies engaged in iron and steel, power and coal washing sectors.
    • The companies also needed prior experience of mining in India to bid for the blocks.

    How it worked earlier?

    • Until now there were restrictions on who could bid for coal mines.
    • Only those in power, iron and steel, and coal washery business could bid for mines and the bidders needed prior experience of mining in India.
    • This effectively limited the potential bidders to a select circle of players and thus limited the value that the government could extract from the bidding.

    Other provisions of the Ordinance

    • The Centre has set a mining target of 1.5 billion tonnes of coal by 2020.
    • Of this, 1 billion tonnes were to be from CIL and 500 million tonnes from non-CIL sources, in line with the government’s push to raise natural resources production to kickstart economic growth.
    • This has now been revised down to 1 billion tonnes of coal by 2023-24.

    Why was such Ordinance promulgated?

    Attracting FDIs

    • The government plans to promote FDI in the coal sector by removing restrictions and eligibility criteria for participation in coal block auctions.

    Curbing import

    • Despite having the world’s fourth-largest coal reserves, India imported 235 million tonnes (mt) of coal last in 2019 of which 135mt valued at ₹171,000 crore.
    • With these amendments the government aims to curb imports of coal through and encourage the use of the country’s coal reserves, which had earlier been available only for the captive use of the steel and power industry.

    Boosting economic growth

    • Till now, FDI was only allowed in coal mines allotted for captive use, meaning for use by the companies themselves.
    • But now with the slowing economy the centre New is trying to attract foreign investment to get economic growth back on track.

    Benefits of the move

    • The move will help India gain access to sophisticated technology for underground mining used by global miners.
    • It will ease rules for auctioning coal mines to open up to all sectors.
    • Large investment in mining will create jobs and set off demand in critical sectors such as mining equipment and heavy commercial vehicles.

    Consequences on CIL

    • Coal India Limited (CIL) is a Maharatna PSU and tremendous public resources have been invested in the company over the years. It contributes to around 82% of the coal production in India.
    • The company employs about 3 lakh people and is a national asset. Opening up of coal mining effectively ends CIL’s monopoly status.
    • However CIL will be “supported and strengthened” and adequate blocks will be allocated to it to meet the target of producing 1 billion tonnes of coal by 2023.

     Conclusion

    • The move comes at a time when the window for fossil fuels is rapidly closing, and the global energy landscape evolving, with fundamental changes to the investment culture amid growing climate concerns.
    • As a responsible global player, India must put in place stringent norms to limit pollution and carbon emissions, even if fresh coal is being mined.
    • Getting access to new and environment-friendly technologies could be a precondition to allowing foreign players in mining coal.

     



    References

    https://www.thehindu.com/opinion/editorial/mining-deep/article30526562.ece

    https://www.livemint.com/industry/energy/india-opens-up-coal-mining-further-11578477090179.html

    https://indianexpress.com/article/business/cabinet-clears-ordinance-to-remove-restrictions-on-coal-block-bidding-6206950/

    https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/govt-approves-ordinance-to-auction-coal-mines/articleshow/73153778.cms?from=mdr

    http://www.indiaenvironmentportal.org.in/content/466643/mineral-laws-amendment-ordinance-2020/

  • [Burning Issue] Regulation of Minority Institutions

    Context

    • Freedom of religion in India is a fundamental right guaranteed by Article 25-28 of the Constitution of India.
    • The Supreme Court in a recent judgement has held that the state is well within its rights to introduce a regulatory regime in the “national interest” to provide minority educational institutions with well-qualified teachers in order for them to “achieve excellence in education.”
    • The judgment came in connection with a case that concerned the validity of the West Bengal Madrasah Service Commission Act 2008, which had constituted a commission to appoint teachers in madrasas.

    What did the Supreme Court rule?

    • Upholding the validity of the 2008 Act, the apex court held that the commission was made up of persons with knowledge of Islamic culture and theology and that the provisions of the Act were “specially designed” for madrasas.
    • The court held that the Act was “not violative of the rights of the minority educational institutions on any count”.
    • The court held that minority institutions cannot ignore such a legal regime on the grounds that it is their fundamental right under Article 30 of the constitution to establish and administer their educational institutions.

    What is Article 30 all about?

    Article 30 upholds the right of the minorities “to establish and administer educational institutions. It reads:

    • Article 30(1) says that all minorities, whether based on religion or language, shall have the right to establish and administer educational institutions of their choice.
    • Article 30(1A) deals with the fixation of the amount for acquisition of property of any educational institution established by minority groups.
    • Article 30(2) states that the government should not discriminate against any educational institution on the ground that it is under the management of a minority, whether based on religion or language while giving aid.

    Why minorities need special rights?

    • The idea to make the provision for minorities to protect their educational right is not inequality towards the privileged classes but it definitely gives the sense of security to the minority class people.
    • It is clear from the census that the minorities in India are not well-off when compared with the privileged class.
    • Therefore, it is important to give the minorities certain legal rights, thus helping them uplifting their position in society.

    Classification of Minorities under Article 30

    I. Religious Minorities

    • The six community groups existing in India are Muslims, Buddhists, Sikhs, Jains, Christians and Zoroastrians.
    • These communities have been nominated as minorities by the union government. India is a multi-religious country.
    • Out of these communities, some of the community groups are greater in number and they are stated as majority communities.
    • The basic ground for a community to be nominated as a religious minority is the numerical strength of the community.
    • For example, in India, Hindus are the majority community. As India is a multi-religious country, it becomes important for the government to conserve and protect the religious minorities of the country.
    • The National Commission for Minorities (NCM) was established by the government in 1992 to protect the rights and interests of the minority groups.

    II. Linguistic Minorities

    • Class or group of people whose mother language or mother tongue is different from that of the majority groups is known as the linguistic minorities.
    • The Constitution of India protects the interest of these linguistic minorities.

    Article 30 is not absolute

    • The verdict said that Article 30(1) (right of minorities to establish and administer educational institutions of their choice) was neither absolute nor above the law.
    • The regulatory law should, however, balance the dual objectives of ensuring standard of excellence as well as preserving the right of the minorities to establish and administer their educational institutions.
    • Regulations that embrace and reconcile the two objectives should be reasonable.
    • The managements of minority institutions cannot ignore such a legal regime by saying that it is their fundamental right under Article 30.

    Is Article 30 diluted now?

    • To achieve a balance between the twin objectives of ensuring excellence in education and preserving the right of minorities, the court said, it divides education into two categories.
    • They are the secular education and education “directly aimed at or dealing with preservation and protection of the heritage, culture, script and special characteristics of a religious or a linguistic minority.”
    • On the latter, the court advocated that “maximum latitude” be given to the management to appoint teachers.
    • The court also holds that only “teachers who believe in the religious ideology or in the special characteristics of the concerned minority would alone be able to imbibe in the students admitted in such educational institutions, what the minorities would like to preserve, profess and propagate.
    • However, when it comes to the second category, the governing criteria must be to see to it that the most conducive atmosphere is put in place where the institution achieves excellence and imparts best possible education.
    • If the subjects in the curriculum are purely secular in character, that is to say, subjects like Arithmetic, Algebra, Physics, Chemistry or Geography, the intent must be to impart education availing the best possible teachers,” the bench said.
    • Where the curriculum was “purely secular”, the intent must be to impart education by availing the best teachers.

    Significance of the Judgement

    Besides safeguarding the rights of religious and linguistic minorities to establish educational institutions of their choice, the Article categorically directs the government to ensure that the minority rights do not get abrogated in case of compulsory acquisition of educational institutions run by minorities.

    • The clause (1A) was inserted in the Article during the 44th amendment of the Indian Constitution in 1978.
    • The primary objective behind including this clause was to make sure that the acquisition of minority institution should be followed by ‘conformable compensation.’
    • The clause (2) of Article 30 further creates a level playing field for the minority institutions.
    • It states that the government shall not discriminate against any educational institution run by a religious or linguistic minority while granting aid.

    Serving the national interest

    • A regulation framed in the national interest must necessarily apply to all institutions regardless whether they are run by majority or minority as the essence of Article 30(1) is to ensure equal treatment between the majority and minority institutions.
    • An objection can certainly be raised if an unfavourable treatment is meted out to an educational institution established and administered by minority.
    • But if ensuring of excellence in educational institutions is the underlying principle behind a regulatory regime and the mechanism of selection of teachers is so designed to achieve excellence in institutions, the matter may stand on a completely different footing.

    Way Forward

    • The court explains how to strike a “balance” between the two objectives of excellence in education and the preservation of the minorities’ right to run their educational institutions.
    • For this, the court broadly divides education into two categories – secular education and education “directly aimed at or dealing with preservation and protection of the heritage, culture, script and special characteristics of a religious or a linguistic minority.”
    • When it comes to the latter, the court advocated “maximum latitude” to be given to the management to appoint teachers.
    • The court reasons that only “teachers who believe in the religious ideology or in the special characteristics of the concerned minority would alone be able to imbibe in the students admitted in such educational institutions, what the minorities would like to preserve, profess and propagate.”
    • However, minority institutions where the curriculum was “purely secular”, the intent must be to impart education availing the best possible teachers.

     

     



    References

    https://www.civilsdaily.com/news/state-can-regulate-minority-institutions-says-supreme-court/

    http://www.legalserviceindia.com/legal/article-230-educational-rights-of-minorities-under-article-30-a-prime-source-of-inequality.html

    https://thewire.in/law/supreme-court-minority-institutions

  • [Burning Issue] Farmers’ suicide in India

    Distribution:

     

    Context

    • The national catastrophe of farmers committing suicide since the 1990s, often by drinking pesticides is attributed to their inability to repay loans mostly taken from landlords and banks.
    • The recent data released by NCRB show a very marginal decline in the suicide rate compared to last year signifying the sorry state of Indian agriculture.

    Farmers distress: Not a decadal phenomenon

    • Historical records relating to frustration, revolts and high mortality rates among farmers in India, particularly cash crop farmers, date back to the 19th century. However, suicides due to the same were rare.
    • The high land taxes of the 1870s, payable in cash regardless of the effects of frequent famines on farm output or productivity, combined with colonial protection of money lenders and landowner rights, contributed to widespread frustration among cotton and other farmers.
    • However, in those days, starvation related deaths far exceeded those by suicide, the latter being officially classified under “injuries”.

    NCRB Stats on Farmers Suicide

    • In 2017, 10,655 people involved in agriculture committed suicide in India, according to data released January 2, 2020, by the National Crime Record Bureau (NCRB).
    • NCRB had released the 2017 crime data last October 2019 but held back information on suicides.

    Highlights by NCRB

    • A total of 10,349 farmers and agricultural labourers committed suicide in 2018, a marginal dip from the 10,655 cases in the year before.
    • Out of 5,763 farmer/cultivator suicides, a total of 5,457 were male and 306 were female during 2018.
    • Among those who took their lives, 5,955 were farmers/cultivators and 4,700 agricultural labourers — both lower than in 2016.
    • The number of women farmers committing suicide, however, jumped to 480 in 2017 from 275 in ’16.
    • In 2016, 6270 farmers killed themselves, down from 8,007 in 2015, while 5,109 farmhands committed suicide, up from 4,595.

    Statewise data

    • In 2018, Maharashtra accounted for the highest share in farm-related suicides at 34.7%, followed by Karnataka at 23.2%, Telangana 8.8%, Andhra Pradesh 6.4% and Madhya Pradesh at 6.3%.
    • In 2017, the most number of farm suicides were reportedly in Maharashtra (34.7 per cent), followed by Karnataka (20.3 per cent), Madhya Pradesh (9 per cent), Telangana (8 per cent) and Andhra Pradesh (7.7 per cent).
    • The trend is quite similar to that of 2016.
    • In 2015 too Maharashtra tops in farmers suicides followed by Karnataka, Madhya Pradesh in 2016.
    • West Bengal, Odisha, Nagaland, Manipur, Mizoram, Uttarakhand, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi, Lakshadweep and Puducherry reported zero suicides.

     Causes of Farmers Suicide

    • There is no consensus on what the main causes might be but studies show suicide victims are motivated by more than one cause however the primer reasons being the inability to repay loans.
    • Major causes reportedly are bankruptcy/indebtedness, problems in the families, crop failure, illness and alcohol/substance abuse.
    • Most of the suicides have occurred in areas of cash crops like cotton and sugarcane, which is high input, high output gambling, not based on the principle of sustained and resilient high yield.

    Case of Maharashtra

    • A 2012 study in rural Vidarbha (Maharashtra) was held to qualitatively rank the expressed causes among farming families who had lost someone to suicide.
    • The expressed reasons in order of importance behind farmer suicides were – debt, alcohol addiction, environment, low produce prices, stress and family responsibilities, apathy, poor irrigation, increased cost of cultivation, private money lenders, use of chemical fertilizers and crop failure.
    • In other words, debt to stress and family responsibilities as reasons were significantly higher than fertilizers and crop failure.
    • Other causes attributed are insufficient or risky credit systems, the difficulty of farming semi-arid regions, poor agricultural income, absence of alternative income opportunities, a downturn in the urban economy which forced non-farmers into farming, and the absence of suitable counselling services.

    Other causes

    • Disguised unemployment on farms remains high. Fragmentation of land holdings has left far too many farmers with farms that are too small to be remunerative.
    • Low access to credit, irrigation and technology worsens their ability to make a comfortable living. A tenth of our farmers are landless.
    • They use rented land, but the inadequacies of land-leasing mechanisms make it difficult for them to raise production.

    Latent causes of suicide

    • Since most discussions and parleys on suicides are overtaken by issues of crop failures, rising debts, new farming techniques, the psychological aspect is largely ignored.
    • One of the major causes behind suicidal intent is depression, found the researchers.
    • It needs to be understood that at times a farmer under a debt of Rs 2 lakh shows a tendency to end his life, while another under a debt of Rs 10 lakh does not.

    Flawed preventive measures

    • Irrigation reaches less than half of India’s overall farmland, a picture that has not changed much over the past decade, and more than 60% of our farmers are susceptible to rainfall anomalies.
    • Rain-fed farming yields are typically less than half those of irrigated farmland.
    • Though India has caught up with global levels of fertilizer use, this is neither efficient nor environmentally sustainable. Both add to the cost of cultivation.
    • Research on high-yielding crops has plateaued after an initial burst during the Green Revolution and farmers have to resort to patented seeds to draw more out of their scanty acres.
    • Initiatives like the eNAM are helping integrate the farmers’ produce directly with the market, however, cutting the role of intermediaries is still lagging behind.

    Enough with appeasement

    • Loan waivers instead of restructuring, re-investment measures are disguised pullbacks on govt. initiative to double farmer’s income by 2020.
    • The subsequent governments have focused only on credit and loan facilitation rather than income, productivity and farmers prosperity.
    • Our approach of handling farmer indebtedness and farmer suicides has been appeasement politics like the recent move by the Maharashtra, Punjab and UP government to waive off thousands of crore worth of loans.
    • Surprisingly this comes at a time when agricultural yield is expected to be better in the wake of a good monsoon.

    Need of the hour: Psychological assistance

    • The study suggested roping in psychologists and counsellors on various issues.
    • They included battling depressive ruminations, suicidal ideations, negative cognitions, hopelessness, helplessness.
    • It aimed at recognising and managing stressors like financial distress, relationship problems, and enhancing psychological resources through emotional well being, and mindfulness.

    Model of 7’s

    • The researchers developed a ‘7D’ model of triggering and confounding factors and a ‘7R’ model of preventive and protecting factors to deal with the problem of farmer suicides.

    ‘7D’ model

    It encapsulates:

    1. Drugs,
    2. Debt,
    3. Disease,
    4. Disputes,
    5. Depression,
    6. Disrepute and
    7. Death

     ‘7R’ model

    It looks at the prevention of suicides. It consists:

    1. Remunerative agriculture,
    2. Resilience building,
    3. Rational expenditure,
    4. Reassurance through connectivity,
    5. Righteous conduct,
    6. Religious support and
    7. Responsible reporting

    Way Forward

    • With years of policy failures, it can be concluded that there is no single sure-shot method to reduce the burden on our farmers.
    • Information technology promises to improve weather forecasting, crop identification as well as damage control, soil health monitoring, and mapping of available water resources.
    • Improvements in marketing and logistics can significantly raise the share that cultivators get of the money people pay for their food.
    • The govt. is using technology to connect farmers to a nationwide e-market, but the states need to amend their antiquated farm produce marketing laws that have squeezed farmers’ earnings.
    • An old problem of price signals failing to adjust demand and supply may also need fixing.
    • For agricultural incomes to rise, reforms, rather than cash transfers, loan waivers and the like, are the way ahead.

    Conclusion

    • The government, in consultation with various stakeholders, should come up with effective and long-term measures to reduce farmer indebtedness, improve crop yield, manage water resources efficiently and make alternate income sources to farmers.
    • Along with subsidies, increased farm profits, the focus should also be on resilience building and problem-solving skills of farming families.
    • In suicide-prone states, agricultural institutes and scientists should start distributing seeds of resilience, tolerance and contentment among farmers, suggested researchers.

     



    References

    https://www.civilsdaily.com/news/ncrb-report-on-farmers-suicide/

    https://www.civilsdaily.com/news/behavioural-aspect-of-farmer-suicides/

  • [Burning Issue] Killing of General Qassem Soleimani and its global implications

     

    Image result for general qassem soleimani upsc

     


    Context

    • Major General Qassem Soleimani, the Iranian Revolutionary Guards commander was killed in a US strike near Baghdad International airport.
    • One of the most popular figures in Iran, Soleimani was known as the most powerful general in the Middle East and has been repeatedly touted as a possible presidential candidate.
    • He was the long-serving head of Iran’s Quds (‘Jerusalem’) Force and has been seen as a deadly adversary by America and its allies.

    Clouds of Wars

     

    • The US and Iran have already been in confrontation for over a week, with each attack leading to a counterattack.
    • On December 27, more than 30 rockets were launched at an Iraqi military base, killing an American contractor.
    • The US responded on December 29 with airstrikes on sites in Iraq and Syria, killing 24 members of an Iranian-backed militia.
    • On December 31 pro-Iranian militia members laid siege to the US Embassy in Baghdad, trapping American diplomats for more than 24 hours. Then came the US drone strike that killed Soleimani and others.

    Who was Soleimani?

    • Born March 11, 1957, Soleimani hails from a village in the mountains of Kerman Province, a region in Iran’s southeast, not far from the borders with Afghanistan and Pakistan.
    • Revered in his home country and feared on battlefields across the Middle East, Soleimani remains virtually unknown in the West.

    The Quds Force

    • Until his death, Soleimani commanded the Quds Force, which is the Arabic word for Jerusalem and is responsible for carrying out unconventional warfare and intelligence activities.
    • The force is responsible for training, financing and providing assistance to some extremist groups overseas.
    • Ayatollah Ruhollah Khomeini set up the IRGC in 1979 after the Iranian Revolution ended to protect the Islamic order of the new Iranian government.
    • According to the Centre for Strategic and International Studies, the IRGC has contributed roughly 125,000 men to Iran’s forces and has the capability of undertaking asymmetric warfare and covert operations.
    • This includes the Quds Force that over the years has established links with the Hezbollah of Lebanon, Shi’ite militias in Iraq, Shi’ites in Afghanistan and the Palestinian territories.

    What did the Quds Force do?

    • In 1982, Revolutionary Guard officers were sent to Lebanon to help organise Shia militias in the civil war, which eventually led to the creation of Hezbollah.
    • The IRGC including the Quds Force has contributed roughly 125,000 men to Iran’s forces and has the capability of undertaking asymmetric warfare and covert operations.
    • As Quds head, Soleimani briefly worked in cooperation with the US. This was during the US crackdown in Afghanistan following 9/11; Soleimani wanted the Taliban defeated.
    • The cooperation ended in 2002 after President George W Bush branded Iran a nuclear proliferator an exporter of terrorism, and part of an “Axis of Evil”.
    • By 2003, the US was accusing Soleimani of plotting attacks on US soldiers following the 2003 invasion of Iraq, which eventually toppled Saddam Hussein.
    • And in 2011, the Treasury Department placed him on a sanctions blacklist.
    • In recent years, Soleimani was believed to be the chief strategist behind Iran’s military ventures and influence in Syria, Iraq and throughout the Middle East.

    In popular support

    • In recent years, Soleimani has gained a huge following on Instagram.
    • His profile rose suddenly when he was pushed forward as the public face of Iran’s intervention in the Syrian conflict from 2013 appearing in battlefield photos, documentaries — and even being featured in a music video and animated film.

    Active Politics

    • Soleimani had become Iran’s most recognizable battlefield commander, ignoring calls to enter politics but becoming as powerful, if not more, than its civilian leadership.
    • Soleimani wielded his regional clout publicly since 2018 when it was revealed that he had direct involvement in top-level talks over the formation of Iraq’s government.
    • He has been in and out of Baghdad ever since, most recently last month as parties seeking to form a new government.

    Why he was killed?

    • The US accused Iranian general is actively developing plans to attack American diplomats and service members in Iraq and throughout the region.
    • The Pentagon said that Gen Soleimani and his Quds Force “were responsible for the deaths of hundreds of American and coalition service members and the wounding of thousands more”.
    • The Islamic Revolutionary Guard Corps (IRGC) of which Soleimani’s Quds Force was the overseas operations arm and was designated a Foreign Terrorist Organisation (FTO).
    • The regime in Tehran is responsible for the deaths of at least 603 American service members in Iraq since 2003.
    • This according to the US accounts for 17% of all deaths of US personnel in Iraq from 2003 to 2011 and is in addition to the many thousands of Iraqis killed by the IRGC’s proxies.

    According to the US, the Quds Force was involved in:

    1. # 2011: The Quds Force plotted a terrorist attack against the Saudi Ambassador to the US on American soil.
    2. # September 2018: A US federal court found Iran and the IRGC liable for the 1996 Khobar Towers bombing which killed 19 Americans.
    3. # Support to terror organisations: Iran funds, equips, and fuels terrorism, violence, and unrest across the Middle East and around the world.
    4. # Support to al-Qaeda: The US alleges that Iran allows al-Qaeda operatives to live in the country, and “move money and fighters to South Asia and Syria”.

    Old enmity

    • The US designated Iran a State Sponsor of Terrorism in January 1984.
    • Ever since, Iran has been subjected to a number of sanctions and restrictions, including restrictions on US foreign assistance, a ban on defence exports and sales, exports controls of dual-use items, and miscellaneous financial and other restrictions.

    Implications of the killing

    • Soleimani’s death has resulted in a dramatic escalation in relations between the US and Iran. The strike has left the Middle East on edge, with possible repercussions beyond the region.
    • President Rouhani said the killing would make Iran more decisive in resisting the US, while the Revolutionary Guards said anti-US forces would exact revenge across the Muslim world.
    • Israel, too, was preparing for Iranian strikes.
    • The killing could have a ripple effect in any number of countries across the Middle East where Iran and the US compete for influence. Oil prices have already jumped by $3 a barrel.

    Possibility of retaliation

    • The killing forced Iran’s hand, and Tehran immediately warned of retaliation. Each strike has led to a more severe retaliation.
    • Also, by clearing the killing of Soleimani, Donald has taken a step his predecessors had avoided.
    • But analysts believe Iran will also be conscious that it is more vulnerable than the US, with all the conflict likely to be in the Middle East itself, including within Iran.
    • That said Iran’s military capabilities are higher than those of others in its neighbourhood.
    • The US might be wary of that. At the same time, analysts believe Iran would require time to put together a working nuclear warhead.
    • That possibility would end if the US chooses to strike Iran’s nuclear installations.

    Can it be war?

    • A lot will depend on how provocative Iran’s inevitable retaliation turns out to be.
    • If these provoke the US into a direct strike on Iran, it can potentially open up the threat of a sustained war.
    • While the possibility of an unintended slide to war is impossible to rule out, fears of World War Three —a phrase that trended overnight on social media are overblown.

    Repercussions on India

     

    Delay of Chabahar

    • The killing is expected to slow down India’s plans to develop the Chabahar port that New Delhi first spoke of turning into a gateway to access landlocked Central Asia and Afghanistan.
    • The 2015 Iran nuclear deal gave India a chance to revisit its plans to develop Chabahar port, also seen as a strategic counter to Pakistan’s Gwadar port developed by China.
    • US sanctions on Iran for its suspect nuclear programme and India’s aim to clinch a civil nuclear deal with the US had delayed plans to develop the Chabahar port in the intervening years since 2003.
    • In May 2016, India, Iran and Afghanistan signed a transport and transit corridor pact as well as a bilateral pact with Tehran to develop the Chabahar port and lay a railway line to Afghanistan and Central Asia.

    Oil prices hike

    • India’s immediate concern is the impact of tensions on international fuel prices that soared 4% last week.
    • Brent crude futures jumped nearly $3 to hit a high of $69.16 a barrel the highest since September while the U.S.
    • With India’s GDP growing at a record low of 4.5% in the September quarter, there are serious concerns that high fuel prices could adversely impact its economic recovery.
    • Though India does not import oil from Iran thanks to a new set of sanctions but any unrest in the volatile region could impact imports from countries like Saudi Arabia.

    Impact on trade

    • Most of the exports take place through the Straits of Hormuz a narrow waterway carrying a fifth of the world’s traded oil which Iranian officials had threatened to block in retaliation for sanctions.
    • India had deployed naval assets in the region to protect its supplies in the wake of mine attacks on oil tankers.

    Remittances flow

    • A secondary worry is that tensions between Iran and the US could impact India’s trade with the region that now stands at $ 78 billion (from Gulf Cooperation Council member countries ie Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman).
    • The West Asia region is the source of some $200 billion in terms of remittances, trade and investments for India.

    Way Forward

    • Overall, India will view the U.S.-Iran developments with deep concern and hope that the situation does not escalate.
    • Beyond its short-term anxiety about India will have a medium-to-long-term concern about further deterioration — namely, that it will result in continued, if not greater, U.S. involvement in the Middle East at the expense of the Indo-Pacific.
    • India wants US focused on the China challenge and it has hoped for years that the U.S. would indeed undertake a rebalance.
    • Any escalation between the U.S. and Iran would put paid to any such shift; moreover, as India saw with the Afghanistan and Iraq wars, it could increase China’s space.

     

     



    References

    https://www.livemint.com/news/india/us-killing-of-soleimani-revives-worries-for-india-11578059448629.html

    https://indianexpress.com/article/explained/explained-qasem-soleimani-the-us-accusations-against-irans-quds-force-6198051/

    https://www.thehindu.com/news/international/watch-who-was-qasem-soleimani/article30472935.ece

    https://indianexpress.com/article/explained/irans-major-general-qassem-soleimani-killing-why-few-expect-full-blown-war-but-no-one-rules-it-out-donald-trump-6201285/