Category: Burning Issues

Context

• Recently, Italian Prime Minister Giorgia Meloni began a two-day visit to India to raise bilateral relations as part of the G20 Foreign Minister’s meeting in New Delhi.
• In this context, this edition of the burning issue will elaborate on the India-Italy bilateral relationship.

Background of India- Italy relationship

Historical Aspects:

• Earlier times: The relationship between India and Italy dates back to ancient times when Indian traders established trade ties with Rome. The Silk Road, which connected Asia and Europe, facilitated the exchange of spices, textiles, and other goods, which was the foundation of these trade ties.
• The Middle Ages: Italy established trading posts in the Indian subcontinent during the medieval era, thereby enhancing trade ties between the two nations. During his travels to the east, Venetian merchant Marco Polo also visited India in the 13th century and wrote about his experiences there. With Italian city-states like Venice and Florence, Mughal emperor Akbar maintained diplomatic ties.
• The British era: Italians were involved in the Indian freedom struggle during the British colonial era. Some of them even served in the Indian National Army under Subhash Chandra Bose.

Economic Aspects:

• After Germany, Belgium, and The Netherlands, Italy is India’s fourth-largest EU trading partner. Since 1988, India has benefited from a favorable trade balance.
• India is Italy’s second-largest South Asian trading partner, with a bilateral trade relationship worth more than $10 billion.
• Italy receives engineering products, machinery, and electrical equipment from India, while India receives textiles, leather, chemicals, and pharmaceuticals from Italy. India is home to significant Italian companies like Fiat, Piaggio, Ferrero, and Luxottica.
• Through investments, joint ventures, and technology transfers in renewable energy and infrastructure, the Italian government has helped India grow its economy.

Political Aspects:

• In 1947, India and Italy established political relations. India and Italy both have democratic governments and are members of the G20, the United Nations, and other multilateral organizations.
• High-level political exchanges have occurred between the two nations, including the 2017 trip by Italian Prime Minister Paolo Gentiloni to India and the 2018 trip by Indian Prime Minister Narendra Modi to Italy.
• However, in 2012, when two Italian marines aboard an oil tanker shot and killed two Indian fishermen off the coast of Kerala, their relationship soured. The incident resulted in a diplomatic impasse, which was resolved over several years.

Cultural Aspects:

• 1976 marked the signing of the agreement for cultural cooperation. The Cultural Exchange Programme (CEP) between Italy and India involves students from both countries participating in academic courses and language programs. On January 18, 2021, the “Srijan” year-long Festival of India in Italy was launched by the Indian Embassy.
• India and Italy share a love of food, literature, music, art, and their rich cultural heritage. Italian opera and classical music have devoted fans in India, and Indian classical dances like Bharatanatyam and Kathak are popular in Italy.
• Indian food is well-liked, and Italian restaurants can be found in most major Indian cities. In order to encourage cultural exchange between the two nations, the Italian Cultural Center in New Delhi and the Italian Embassy in India organize a variety of cultural events and activities.

New developments in the relations

Scientific Cooperation

• An Agreement on Science & Technology cooperation has existed since 1978. The Agreement foresees three yearly action plans under which a maximum of thirty joint research projects can be undertaken. This agreement was replaced by one signed in Nov 2003.
• Some of the prime areas of joint research are Electronics, Biotechnology, Design Engineering, Automotive Technologies, Energy, etc.

Defense cooperation

• An essential tenet of India-Italy relations has long been defence cooperation. With more than 50,000 soldiers, the 4th, 8th, and 10th Indian Divisions contributed significantly to one of the most difficult allied forces’ advances for the liberation of Italy during the Second World War.
• Joint Defence Committee was established in 2018 to enhance and encourage a “structured dialogue” between Indian and Italian defence firms. Italy supported India’s “intensified engagement” with nuclear, missile and dual-use technology and substances-export control regimes like the Wassenaar Arrangement, the Australia Group, and the Nuclear Suppliers’ Group (NSG) which strengthen global non-proliferation efforts.
• The two countries are also cooperating in the defense sector, with Italy supplying torpedoes and aircraft components to India.
• Italy has expressed interest in investing in India’s infrastructure projects such as the Delhi-Mumbai Industrial Corridor and the Smart Cities project.

Why Italy is significant for India?

• Trade: Italy is the fifth-largest economy in the European Union and the third-largest in the Eurozone after Germany and France with a GDP of $1.86 trillion. It is also the world’s sixth-largest manufacturing nation. India, on the other hand, is one of the fastest-growing economies in the world. The bilateral trade between the two countries has been increasing steadily over the years(US $10 billion), and Italy is one of India’s most important trading partners in the EU.

• Investments: Italy is India’s fourth largest European trading partner and the 12^th largest foreign investor in the country with FDI reaching the US$2 billion mark in 2020. In 2021, bilateral trade was valued at over 10 billion with the balance in India’s favour. Italian companies have been investing in India in various sectors such as automobiles, fashion, food processing, and infrastructure. Likewise, Indian companies are also investing in Italy in the areas of pharmaceuticals, IT, and energy. There is significant potential for further investment and collaboration between the two countries.
• Supporting Indian manufacturing: India’s “Make in India” initiative and modernization drive can be complemented by Italian expertise in areas like manufacturing, green tech and defense. Machinery equipment comprises 36 percent of total Italian exports to India, and both economies are structured around SMEs.
• Cultural Ties: India and Italy share a rich cultural heritage, which dates back to ancient times. Italy is home to some of the most famous historical monuments, museums, and art galleries in the world, which attracts millions of tourists every year. Many Indian tourists visit Italy to explore its cultural heritage, and many Italian tourists visit India to experience its rich culture and heritage.
• Education: Italy is home to some of the world’s oldest and most prestigious universities, which offer a wide range of courses and programs. Indian students are increasingly choosing Italy as a destination for higher education, as it offers high-quality education and exposure to European culture and languages.
• Defense: India and Italy are also exploring joint productions in defense and aerospace sectors as well as technology transfers, as evident in the agreement between Italian public company Fincantieri and India’s Cochin Shipyard Limited. Fourteen years after the last COAS visit, former Army Chief General Naravane visited Italy in 2021 to re-energise India-Italy defence relations. In addition, India and Italy also have a Joint Working Group on Counter-Terrorism.
• Energy transition: Another key area of cooperation is energy transition. In 2021, the two countries inked a Strategic Partnership on Energy Transition to advance collaboration in areas like green hydrogen and bio-fuels, and Italy also joined the successful India-France-led International Solar Alliance comprising over 90 members.
• Despite regular changes of the guard in Italy, continuity in bilateral engagements at the highest levels between India and Italy coupled with strong political will have ensured that the two countries remain on each other’s radar since 2017.

Highlights of the current visit of PM Meloni

• Now strategic partners: India and Italy have decided to elevate the ties to the level of strategic partnership and identified defence as one of the areas where they can start a “new chapter”.
• Boost to startups: The meet led to the establishment of a ‘Startup Bridge’ between India and Italy.
• Bilateral defence exercise: Another important area of mutual cooperation is defence. They also decided to organise joint military exercises and training courses on a regular basis.
• Enhance peoples mobility: India and Italy also signed a Declaration of Intent on migration and mobility and inked a memorandum of understanding between Rabindra Bharati University, Kolkata, and Italian Consulate General; and Morarji Desai Institute of Yoga and Sarva Yoga International, Italy.

Challenges

• Low trade w.r.t potential: India and Italy have been trading partners since the Roman era, so the country’s low investment and trade volumes are regrettable.
• The Enrica Lexie Case: In 2012, two Indian fishermen were killed by Italian marines. The incident was a huge mistake, and the sad fact quickly became politicized.
• Italy’s current political instability—it is in a very precarious position—with a populist movement on one side and a nationalist, naturalist, or close to fascist on the other.
• Internal issues of Italy: Italy is a problem for EU due to its low growth rate of 1.5%, high youth unemployment rate of 30%, and the alarmingly high debt-to-GDP ratio of 133%.
• Non-implementation of the trilateral partnership: between India, Italy, and Japan was launched in 2021; however, despite the well-established India-Japan partnership and Italy’s strong complementary potential, it has not been implemented.
• Immigration issues: There has been a significant influx of Indian immigrants in Italy, which has sometimes led to tensions between the two communities. Issues such as employment, social integration, and cultural differences need to be addressed to ensure peaceful coexistence.
• Investment climate: Despite the significant potential for investment, there are some challenges in the investment climate in India and Italy. For instance, India needs to address issues such as corruption, bureaucracy, and regulatory barriers, while Italy needs to address issues such as high taxation and regulatory complexity. Both countries need to work together to create a more conducive investment environment.

Way forward

• The two countries can facilitate cooperation between the Indo-Pacific and the Mediterranean Sea geographies given India’s permanent presence in the Indian Ocean region and Italy’s in the Mediterranean. Encouragingly, in 2022, the Italian parliament approved a motion to pay more attention to the region.
• Supporting an effective multilateral system, which would be the best political accelerator to win our battle against the novel coronavirus and to promote sustainable, equitable and durable recovery.
• Improving trade: the potential of India and Italy as trade partners can be further explored if India and European Union (EU) sign the Bilateral Trade and Investment Agreement (BTIA) which has been in negotiation for over 11 years without conclusion.

Conclusion

• India’s partnership with Italy is gaining strength on all levels—political, economic, and strategic. PM Meloni’s visit to India at this critical juncture of global politics would further boost ties while also adding fodder to the reinvigorated EU-India partnership. For India-Italy relations, the future is likely to be bright and progressive.
• In the words of Foreign Secretary Vinay Kwatra said, “With the legacy issues behind us, the door is now open for industries to cooperate more strongly, particularly in the field of manufacturing, co-production, co-design and co-innovation.”

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Context

• On February 23, hundreds of followers of a Khalistan leader clashed with police outside Ajnala police station near Amritsar, demanding the release of one of their colleagues who had been taken into custody in an alleged kidnapping case.
• This was the second such attack on the police in Punjab in a fortnight. These incidents are being linked with the revival of the Khalistan movement of 1990s Punjab.
• In this context, this edition of the burning issue will discuss this revival of Khalistan demand and the issue around it.

What was the Khalistan movement?

• Dates to pre-independence era: The Khalistan movement, which started in the 1940s during British rule, calls for establishing a separate nation for Sikhs. When India became independent and Punjab was partitioned, its leaders demanded a special status for the state. However, the Central Government did not pay attention to these demands, and Sikhs felt betrayed, leading to the idea of a separate nation growing substantially.
• Rise of Bhindranwale: Many individuals and organizations contributed to the Sikh revivalist movement; however, Jarnail Singh Bhindranwale emerged as a charismatic leader after becoming the head of Damdami Taksal on August 25, 1977.
• Failure to fulfil regional demand: Punjabi political parties, such as the Sikh Akali Party, failed to fulfil the regional demands concerning river waters and the transfer of Chandigarh as a capital city to Punjab. The devolution of power gave rise to Bhindranwale’s image among the masses.
• Finally Military Operation: The military mission, OBS, was carried out between June 1 to June 10, 1984, to take control of key gurdwaras, including the Golden Temple in Amritsar, from Bhindranwale’s supporters. Bhindranwale was killed during the operation; however, in recent times, his image remains alive and well.

Why is it being revived?

• Political instability: Punjab in recent years has witnessed a political crisis leading to a change in governments, ruling political parties and CM’s giving chance for radical outfits to grow.
• Economic challenges: Punjab state has a high employment rate (According to data from the Centre’s Periodic Labour Force Survey 2019-20, Punjab’s unemployment rate is higher than the national average). Also, the year-long Farmers’ protest in 2021 and railways blockades have led to the creation of negative sentiments among investors about the state’s investment environment leading to decreasing investments in Punjab and rising unemployment.
• Rising communalism: multiple events of blasphemy have taken place in the state which is flaming the fire of communalism among the people of the state.
• Provocation from Pakistan: Investigations by security agencies suggest links between Khalistani groups and Pakistan’s Inter-Services Intelligence (ISI) – further increasing the likelihood of feelings of separatism due to drug trafficking and networking through Sikh pilgrimages.
• Feeling to of persecuted minority: images of the 1984 anti-sikh riots and the topic of the non-persecution of culprits of the riots are being used to suggest that Sikhs are persecuted minority and thus they must have their own land in form of Khalistan.

Role of diaspora and social media in the resurgence

• Propaganda by parts of the Sikh diaspora: There is a threat of a re-emergence of the idea of Khalistan due to an increase in the propaganda by parts of the Sikh diaspora in Western countries, effectively utilizing social media.
• Use of Social media as a uniting platform: it is pertinent to understand the re-emergence of Khalistan, wherein traditional propaganda machinery is being used to generate social media acceptance.
• Misinformation campaigns: Organizations like Sikhs for Justice, Khalistan Liberation Force, and Babbar Khalsa International run misinformation campaigns on social media through Twitter, Facebook, Instagram, and WhatsApp. The most recent campaign, which attracted enormous attention, was the Referendum 2020
• Identity consciousness among the youth: Further, it signifies a trend of identity consciousness among the youth residing in the West and Punjab. As discussed in the following paragraphs, ISI and the terror outfits operating from Pakistan heavily oversee the internet presence of elements spreading Pro-Khalistani content. Such social media activity is generated through traditional networks that still work on the ground in collaboration with Pakistan’s ISI, seeking to create a groundswell for the idea of a Sikh homeland.
• Involvement of Pakistan’s ISI: ISI is using a double strategy of tapping into the Jammu & Kashmir terror network to revive the Khalistan movement in Punjab. By using drugs as a means to radicalize the Punjabi youth, ISI means to destabilize Punjab.

Cause of concern

• Threat to national security and integrity: the resurgence of the Khalistan movement is a threat to national security similar to the Kashmir and NE insurgency.
• May darken Punjab’s future: a poor law and order situation may deter investors to invest in Punjab thus further deteriorating its economy and leading to spillover effects in social and political sectors.
• Involvement of diaspora: The idea of forming a separate state for Sikhs has died down in Punjab; however, it has attracted the attention of a large audience in the diaspora who now have settled in other nations for long and thus have lost their affinity with India as their homeland.
• Misuse of social media: which defies any international boundary, thus misused by separatists in Pakistan and other nations.
• Bilateral relations may be harmed: the Khalistan issue has already harmed Indo- Canada relations and now straining Indo-UK due to the conduction of Referendum 2020 in these countries despite the Indian Government’s objection.

How to tackle the rise

• Recognising new challenges: Recognizing the challenge posed by traditional stakeholders and new social media recruits is necessary.
• Collaborate with foreign governments: The Indian security and intelligence forces need to collaborate with foreign governments to monitor anti-India activities carried out by the Khalistani forces and restrict their funding sources.
• Enhance security efforts: The Indian government must heighten security efforts to counteract the increase in Khalistani social media activity since the opening up of the Kartarpur Corridor.
• Promote economic and social development: At the domestic level, the Punjab and Union governments and security forces must collaborate to improve the economic condition of the state to again put the state on the path of development.
• Engage with the Sikh diaspora: Indian agencies, such as the missions established in those countries, must diplomatically engage with the Sikh diaspora to tackle the misinformation campaign being peddled by Khalistani organizations. Such engagements will facilitate a positive relationship between the Indian state and the Sikh diaspora.
• Beef up security: Indian security forces need to step up their preparedness to tackle the increase in drones used to deliver weapons and drugs to Punjab.
• Engage Pakistan: In addition to Western countries, India should not back away from exercising diplomacy with Pakistan and should work to extradite terrorists hiding in Pakistan.

Steps taken

• As part of recent actions taken against the Khalistan propaganda, the Indian government has banned influential Twitter accounts such as 1984tribute, Khalsa Kashmir, and Khalistan Centre.
• Maintaining a Central Adverse List: of pro-Khalistani supporters

Conclusion

• Until Sikhs get closure for the anti-Sikh riots of 1984 by means of court proceedings against the riot accused, the desire for a Sikh homeland will remain strong among the diaspora, who see themselves as a persecuted minority.
• The violent Khalistani movement has vanished; however, the idea of a separate Sikh nation i.e Khalistan is yet to disappear.

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Context

• Recently, two men belonging to a minority community from Rajasthan’s Bharatpur district were allegedly abducted and burnt to death in a car in Haryana. The incident is suspected to be linked with cow vigilantes, who have been active in the region for quite some time.
• The incident highlights the issue of lynching and vigilantism which keeps coming up regularly. In this context, this edition of the burning issue will deal with issue of mob lynching.

What is Mob Lynching?

• Mob lynching, the act of killing individuals or groups of people by a mob without any legal authority, is a grave issue that has been affecting India for many years. The country has witnessed several incidents of mob lynching that have claimed many innocent lives.
• This trend of violence has gained momentum in recent years, with the proliferation of social media and the spread of fake news. In this article, we will examine the causes and consequences of mob lynching in India.
• It is an extreme form of informal group social control such as charivari, skimmington, riding the rail, and tarring and feathering, and often conducted with the display of a public spectacle for maximum intimidation.

Few statistics related to lynching in India

• The data website India Spend has compiled instances of cow-linked violence from 2010 to 2017. It found that during this period, 28 people were killed in 63 such incidents.
• An overwhelming 97% of these attacks took place after 2014.
• About 86% of those killed were Muslims. In 21% of the cases, the police filed cases against the victims/survivors.
• Cow-related lynchings rose sharply in 2017. This marks a 75% increase over 2016, which had been the worst year for mob lynchings since 2010.

Causes of Mob Lynching in India:

• Communal Tensions: Communal tensions and religious divides are one of the leading causes of mob lynching in India. The rise of Hindu nationalism and the polarization of the country’s politics have fueled violence against religious minorities, particularly Muslims. The perpetrators of mob lynching often justify their actions on the grounds of protecting their religion and culture.
• Vigilantism: Vigilantism, the act of taking the law into one’s own hands, is another cause of mob lynching. In India, several groups, such as cow vigilantes, have taken it upon themselves to enforce the law and punish those who they perceive as breaking it. This has led to many innocent people being lynched on suspicion of cow slaughter, a practice that is considered taboo in Hinduism.
• Social Media: Social media has played a significant role in the spread of fake news and rumors, which have contributed to the rise in mob lynching incidents. False rumors about child kidnappers or thieves have led to mobs attacking innocent individuals, often resulting in their deaths.
• Weak Law Enforcement: The weak law enforcement system in India is another cause of mob lynching. In many cases, the police have failed to intervene and prevent the lynching, or the perpetrators have not been brought to justice. This has emboldened mobs to take the law into their own hands and inflict violence on innocent people.
• Impunity: The lynch mobs are confident of getting away with it. So far, the state has done little to shake that confidence.
• Role of violence in Indian politics – Popular anger, outrage, and violence are integral features of everyday politics in contemporary India. Thus mob feels empowered to take law into their hands.
• Lack of public reaction – The lack of public reaction to recent incidents implies a degree of acceptability of violence as an expression of vengeance against ‘injustices’.
• Silence of the political class – There is little condemnation of lynchings by those in positions of authority except in very generalized terms.
• Misplaced fascination – The feeling that mobs are exacting Bollywood-style justice beyond the procedures of law, with crowds of locals triumphantly watching the gruesome spectacle captured by videos that subsequently go viral, has its own vicarious fascination.

Cause Of Concern For Mob Lynching in India

• Rise of a retributive society: the rising cases of lynching indicates the rise of a retributive society in india, where instead of legal justice, revenge is sought to pacify self.
• Against values of Indian society: mob lynching is against the values of the Indian society such as peace, communism and toleration.
• Against rule of law: such acts are against the established rule of law and directly challenge the law of the land while trying to uphold ‘law of the crowd’
• Sign of an immature society: it also signals that the society is immature as the differences in opinions are not tolerated or accommodated by the society members.

Consequences of Mob Lynching in India:

• Loss of Innocent Lives: The most significant consequence of mob lynching in India is the loss of innocent lives. The victims of mob lynching are often individuals who have committed no crime but are targeted due to their religion, caste, or social status. The incidents have left families devastated and have created fear and insecurity among minority communities.
• Damage to Social Fabric: Mob lynching has damaged the social fabric of India, which is known for its diversity and inclusivity. The incidents have heightened communal tensions and created an atmosphere of fear and distrust. The violence has also led to the stigmatization of certain communities and has contributed to their marginalization.
• Erosion of Democratic Values: Mob lynching is a direct attack on democratic values and the rule of law. The violence is carried out by mobs that take the law into their own hands, bypassing the legal system and the principles of justice. The incidents have raised questions about the state’s ability to protect its citizens and uphold the Constitution.
• Economic Impact: Mob lynching incidents have also had an economic impact, with foreign investors expressing concerns about the safety and security of their employees in India. The incidents have damaged India’s image as a tolerant and peaceful country and have affected its tourism industry.
• Impact on migration patterns: It directly hampers internal migration which in turn affects economy.
• Damage of public property: Large resources deployed to tackle such menaces induces extra burden on state-exchequer.

International Laws to Deal with Mob Lynching

While there is no specific international treaty or convention that addresses mob lynching, several international laws and human rights standards provide protection against this heinous crime.

• Universal Declaration of Human Rights:

The Universal Declaration of Human Rights (UDHR) is a landmark international document that recognizes the inherent dignity and equal rights of all human beings. Article 3 of the UDHR states that “everyone has the right to life, liberty and security of person.” Mob lynching violates this fundamental right to life and security of person and is therefore a violation of international human rights law.

• International Covenant on Civil and Political Rights:

The International Covenant on Civil and Political Rights (ICCPR) is a legally binding treaty that sets out the civil and political rights that are protected under international law. Article 6 of the ICCPR provides that “every human being has the inherent right to life” and that this right shall be protected by law. Article 7 of the ICCPR prohibits torture and cruel, inhuman, or degrading treatment or punishment. Mob lynching, which involves the use of violence and intimidation to cause harm to an individual, violates both of these provisions of the ICCPR.

• Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment:

The Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (CAT) is an international treaty that prohibits the use of torture and other forms of cruel, inhuman or degrading treatment or punishment. The CAT defines torture as “any act by which severe pain or suffering, whether physical or mental, is intentionally inflicted on a person.” Mob lynching, which involves the intentional infliction of pain and suffering, can be considered a form of torture and is therefore prohibited under the CAT.

• International Convention on the Elimination of All Forms of Racial Discrimination:

The International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) is an international treaty that prohibits all forms of discrimination based on race, ethnicity, or national origin. Article 5 of the ICERD requires states to prohibit and eliminate racial discrimination and to ensure that all individuals are protected from racial violence or incitement to racial violence. Mob lynching, which often targets individuals based on their race or religion, is a clear violation of the ICERD.

• Rome Statute of the International Criminal Court:

The Rome Statute of the International Criminal Court (ICC) is an international treaty that establishes the ICC, a permanent international criminal court that has jurisdiction over individuals who commit genocide, crimes against humanity, war crimes, and the crime of aggression. Mob lynching can constitute a crime against humanity, which is defined in the Rome Statute as a serious attack on a civilian population that involves widespread or systematic acts of violence. Individuals who are responsible for mob lynching can be held accountable under the ICC.

Laws Passed by Few States to Combat Mob Lynching

• In 2018, the Supreme Court described lynching as a “horrendous act of mobocracy”. The Court exhorted the Centre and State governments to frame laws specifically to deal with the crime of lynching.
• The SC laid down certain guidelines to be incorporated in these laws including Fast-track trials, Compensation to victims, and Disciplinary action against lax law-enforcers.
• Bills passed by state legislature (in the image)

• However, Bills passed against mob lynching in some states have not been implemented since lynching is not defined as a crime under the Indian Penal Code (IPC).

Steps to Address Mob Lynching in India

• Laying down a dedicated law: at national level similar to what some states have legislated.
• Strengthening Law Enforcement: The most critical step in preventing mob lynching is to strengthen law enforcement. The police must be held accountable for their failure to prevent or respond to incidents of mob violence. The police must also be trained to handle communal tensions and given the resources to effectively combat rumors and misinformation. The judiciary must also take a proactive role in ensuring that the perpetrators of mob lynching are brought to justice.
• Creating Awareness: Creating awareness among the public about the dangers of mob lynching is another critical step. The government and civil society organizations must work together to educate people about the consequences of taking the law into their own hands. The media also has a significant role to play in promoting awareness and dispelling rumors and misinformation.
• Combating Communal Tensions: Combating communal tensions and promoting religious harmony is essential in preventing mob lynching. The government must take proactive measures to address the underlying causes of communal tensions, such as unemployment, poverty, and discrimination. The government must also promote interfaith dialogue and work towards building a more inclusive society.
• Strengthening Cybersecurity: Strengthening cybersecurity is another critical step in preventing mob lynching. Social media platforms must be held accountable for the spread of fake news and rumors, and measures must be taken to prevent the spread of hate speech and incitement to violence. The government must also invest in building cybersecurity infrastructure and promoting digital literacy.

Supreme Court in Tehseen Poonawala Case

• In the Tehseen Poonawalla case, the Supreme Court directed states to take preventative, punitive, and corrective actions against mob lynching in 2018. SC’s guidelines include:
• To prevent incidents of cow vigilantism and mob lynching, a nodal officer will be appointed in each district who is not below the rank of Superintendent of Police.
• The State Governments are required to identify the affected districts where lynching incidents have occurred within three weeks of the date of this judgment.
• Those who incite others and spread false information on social media will be subject to an automatic FIR under Section 153A of the IPC.
• Within one month of the judgment’s date, the state governments are required to prepare a compensation plan for victims of lynching and mob violence in accordance with Section 357 A of the CrPC.
• In each district, lynching and mob violence cases will be tried in fast-track courts, and the trial must be over in six months.
• The Court suggested that the Parliament make lynching a separate crime that should be punished.

Conclusion

• Mob lynching is a grave issue that poses a significant challenge to India’s democratic values and social fabric. The rise of mob lynching is a symptom of deeper social and political issues that must be addressed to ensure that India remains a vibrant and inclusive democracy.
• It is essential that all stakeholders work together to address this issue and ensure that the perpetrators of mob lynching are brought to justice. Only then can India truly live up to its ideals of democracy, secularism, and human rights.

FAQs

What are the main causes of Mob Violence in India?

Mob violence in India often stems from religious tensions, political manipulation, social inequalities, and communal rivalries. Factors such as misinformation, emotional mobilization through social media, and historical grievances exacerbate these issues, leading to spontaneous outbreaks of violence.

Why is mob violence a significant topic for UPSC exams?

Mob violence is relevant in subjects like General Studies (particularly GS Paper II and III), Ethics, and Indian Society.

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Context

• The Election Commission of India (ECI) has recognized the Eknath Shinde group as the official “Shiv Sena”, allowing them to use the official “Bow & Arrow” symbol and “Shiv Sena” name.
• The Uddhav Thackeray faction has been allowed to use the name “Shiv Sena (Uddhav Balasaheb Thackeray)” and the symbol of the “flaming torch” for the upcoming bye-elections in the Maharashtra assembly.
• In this context, this edition of the burning issue will elaborate on the topic of allotment of elections symbols, EC’s role and overall party politics in India. The topic is important for the upcoming Prelims as well as Mains Examination.

What are party election symbols?

• An election symbol is a standardized symbol allocated to a political party. They are used by the parties during their campaigning and are shown on Electronic Voting Machines (EVMs), where the voter chooses the symbol and votes for the associated party.
• They were introduced to facilitate voting by illiterate people, who can’t read the name of the party while casting their votes.

How does the Election Commission decide on party symbol disputes?

• In the 1960s, the Government of India proposed that the regulation, reservation and allotment of electoral symbols should be done through a law of Parliament, i.e., Symbols Order.
• In a response to this proposal, the Election Commission of India (ECI) stated that the recognition of political parties is supervised by the provisions of the Election Symbols (Reservation and Allotment) Order, 1968 and so will the allotment of symbols. In 1968, the Election Commission promulgated this order.
• Symbols order has provisions regarding the registration and recognition of political parties as state and national parties.
• Under Paragraph 15 of the Order, it can decide disputes among rival groups or sections of a recognized political party staking claim to its name and symbol.
• As per the guidelines, when a recognized political party splits, the Election Commission decides on assigning the symbol by evaluating the support enjoyed by a claimant in both organizational and legislative wings. within the political party.
• Where it is not possible to decide which group has a majority, the EC may freeze the party’s symbol and allow the groups to register with new names.
• Additionally, the Supreme Court in the Sadiq Ali case (1972) formulated three tests for deciding on party symbol disputes. In this case, only one test proved conclusive.

3 tests formulated by the Supreme Court

Following are the three tests and their application as per which the ECI made its decision–

Test of Aims and Objects of the Party Constitution

• Regarding this test, the ECI found that the test could not yield an effective outcome as both sides claimed adherence to the aims and objectives of the party. Therefore, ECI held–

“The application of this test will render an inconclusive answer for the purpose of adjudicating the present dispute.”

Test of Party Constitution

• While applying this test, the commission found that the party constitution on which the respondent (Uddhav Thackeray faction) was placing strong reliance was undemocratic. Further, the complete list of office bearers of various bodies was not provided to the commission, whenever elections were held or appointments were made. As per the commission –

“Any reliance on the test of party constitution for determining the present dispute case would be undemocratic and catalytic in spreading such practices across parties.”

Test of Majority

• The election commission of India found that the majority test was in favor of the petitioner (Eknath Shinde faction). The commission found that the majority test outcome in the legislative wing reflected the qualitative superiority of the majority test in favor of the Shinde faction.

Bigger Picture: Democratic Deficit in Political Parties

• Several of the political parties in India have witnessed factionalism in the recent past some examples being Janata Dal (United), Samajwadi Party, Indian National Congress etc. highlighting the issue of democratic deficit in political parties.
• In its order, the ECI highlighted the importance of internal party democracy. It stated–

“The requirement for a written constitution of political parties and an undertaking to the effect that such Constitution adheres to the norms of democracy prescribed in the Constitution of India is meant to promote inner party democracy.”

Other Issues with Political Parties in India

• Lack of proper organisation: Another feature of the Indian party system is its lack of structure. Political parties live and die by their organization.
• Groupism inside India’s party structure: In India, groupism is a major problem for every political party. This shatters a party’s cohesiveness, causing it to split into several factions. Ex. INC, NCP, TMC.
• Extra-constitutional ways of gaining power: Political parties do not hesitate to utilize uncertain measures to gain political power in addition to legitimate means. Ex. Resort Politics
• Populist tendencies: In India, it is well-noticed that political parties turn to populist politics to gain power. They take unfair advantage of people’s emotions and compulsions, promote populist slogans, and mislead the public. Ex. Temple reconstruction movements
• Lack of discipline among party members:  It has been observed that members of various political parties are unconcerned about party discipline, preferring instead to sling dirt at one another. Ex. Undue political statements
• Communal characteristics: The people of India are influenced by caste and religion, and they have a strong sense of allegiance to their caste and religion.
• Criminalization of politics: Leaders are valued for their capacity to attract crowds and raise funds as elections become more and more expensive.

How to attain Internal Democracy within parties?

• Internal elections: It shall be the duty of the political party to take appropriate steps to ensure the holding of elections at all levels. The political party shall hold elections in an unpartisan way by their ‘karyakartas’.
• Strengthening Anti-defection Law: The Anti-Defection Act of 1985 requires the party legislators to act according to the party whip which is decided by the diktats of the highest party leadership. One way to democratize political parties is to promote intra-party dissent.
• Limited reservations: Seats can be reserved for women and members of the backward community including minorities.
• Empowering ECI: The ECI shall be competent to inquire into allegations of non-compliance with any of the provisions requiring elections.
• Social audit and penal provisions: ECI should have the penal power to deregister a party until free and fair elections in the party are conducted.
• Encouraging a new generation of leaders: For a long, there is a widespread impression created that a lot of good people shy away from politics. It is, therefore, necessary that this impression be changed and efficient people brought into the political arena.

Way forward

• The 170th report of the Law Commission of India on the reform of electoral laws dedicated an entire chapter to the necessity of providing laws relating to internal democracy within parties.
• It observed that a political party that does not respect democratic principles in its internal working cannot be expected to respect those principles in the governance of the country.
• The National Commission for Review of Working of Constitution states that there should be comprehensive legislation regulating the registration and functioning of political parties or alliances of parties in India.

Conclusion

• The top leaders of the political parties need to introspect and allow for democratic decision-making in the party’s affair’s thus paving the way for intra-party democracy.
• Such a step would strengthen the Party Culture in India, thus improving the Political ethics and overall Politics in India.

Context

• Tata Group-owned Air India (AI) placed two mega orders, adding up to a staggering 470 aircraft — for 250 planes with Europe’s Airbus consortium, and 220 with Boeing Co. of the United States.
• This is the largest order placed by an airline in one go anywhere in the world, beating the 2011 order by American Airlines for a combined 460 aircraft. The biggest order by an Indian carrier before this was IndiGo’s 300-aircraft order in 2019.
• In this context, this edition of the Burning Issue will elaborate on the deal and its impact on the Indian aviation sector. The topic will be relevant for the GS3 Mains Paper under the subheading Infrastructure development and Airports.

Details of the Air India order

• The deal includes seventy of the 470 aircraft wide-body or twin-aisle planes for long-haul flights.
• Airbus has got the bigger order, but the Boeing order includes an option for a 70-plane top-up, taking the possible order size to 540 aircraft.
• The mega order cost for Airbus and Boeing aircraft is estimated between $70 billion and $80 billion.
• Ever since Air India returned to the Tata Group, the new owners have been focussed on sprucing up the product offering, while also planning an extensive expansion for the airline.
• A five-year roadmap–Vihaan.AI–was prepared with the objective of substantially growing the airline’s network and fleet in a bid to put it on a “path to sustained growth, profitability, and market leadership”.

About Indian Aviation Industry

• One of the fastest-growing: The Indian aviation industry is one of the fastest-growing aviation markets in the world.
• Undergone a significant transformation: Over the last decade, it has undergone a significant transformation, with the rise of low-cost carriers, increased competition, and modernization of airport infrastructure.
• Growth: The Indian aviation industry has been growing at a rapid pace in recent years. According to the International Air Transport Association (IATA), India is expected to become the third-largest aviation market by 2025.
• Domestic and International Market: The Indian aviation industry has a mix of domestic and international airlines. The domestic market is dominated by low-cost carriers such as IndiGo, SpiceJet, and GoAir, while the international market is dominated by full-service carriers such as Air India and Jet Airways.
• Government Support: The Indian government has been supportive of the aviation industry’s growth and has introduced several initiatives to encourage investment and development in the sector. These include the Regional Connectivity Scheme (RCS) called UDAN, which aims to improve connectivity to remote and underserved regions in the country.
• Infrastructure Development: In recent years, there has been significant investment in airport infrastructure in India. The country has over 100 operational airports, and several new airports are under construction or in the planning stages.
• Skilled Workforce: The Indian aviation industry has a skilled and well-trained workforce, with several world-class aviation training institutions. Indian pilots and cabin crew are in high demand globally.

What is driving Indian Aviation Sector Growth?

• Already third largest domestic market: India is the third largest domestic aviation market after China and the US. The annual domestic air traffic in pre-covid 2019 for India stood at 144 mn passengers.
• Income growth and demographic dividend: Increasing income levels, an aspirational middle class, competition between low-cost carriers and enhanced connectivity and infrastructure.
• Potential to become the 3^rd largest international market: The government and the industry say India could become the third largest international — not just domestic — aviation market given the huge gap between potential and current air travel penetration.

How will Indian aviation shape up?

• A major shift could happen in the market: So far, IndiGo’s been the largest player with strong promoter support but there are visible signs of competition from Air India and Akasa Air. Indian airlines will eye a greater share of outbound international traffic from the current level of around 45%.
• While Air India is expected to cross foreign carriers in flights to US and Europe, IndiGo is eyeing Europe and East Asia by 2024. The government has asked airlines and airports to work towards multiple international hubs in India.
• According to IBEF, India is poised to improve its position from the 7^th largest in civil aviation to the third largest in the next 10 years. Given India’s demography and increasing purchasing power, domestic air traffic will certainly move higher.

Significance of the deal

• Aspirational Air India: It has put Air India in the league of “aspiring” global airlines. The debt-ridden carrier, which was taken over by the Tata Group in early 2022, plans to turn into “a world-class proposition”. Experts say the bulk order indicates Air India’s intent to reclaim its “pole position” in the domestic aviation market, as well as expand its presence in international routes, BBC reported.
• Reduce Dependence on Foreign Flyers: the large fleet that will be acquired by Air India will help in reducing the dependence of Indian flyers on foreign carriers such as Emirates, Qatar Airways, Etihad and other Middle Eastern airlines. These orders directly synergize Air India’s fleet with Lufthansa and Singapore Airlines – all part of Star Alliance, the world’s largest global airline alliance,
• Help enter markets like the US: The purchase of wide-bodied aircraft like the A350s will allow Air India to enter markets like the US and Australia directly by offering non-stop flights from India to these places.
• Cater to the need of Indian aviation: Air India’s new fleet will help in catering to the needs of India’s growing aviation market. Demand for air travel is again seeing a surge in India and other parts of Asia after the COVID-19 pandemic. As per ICRA, with 986 lakh flyers, domestic air traffic increased 63 per cent year-on-year between April and December 2022 in India.
• May give a boost to Make in India and employment: The deal can also create jobs for Indians. The Tata group chairman has hinted that some of the aircraft parts could be manufactured in India, which will boost domestic manufacturing and create job opportunities.
• Improves India’s global Standing: the deal is “important for the industry because, given the recent turbulence in the China market, the alternative growth market in India,”
• Political signals: “India is also sending a strong political signal that it wants to remain attached to the West at a time when it has appeared ambiguous on Russian sanctions,”

Impacts on bilateral relations

• India-France: At a virtual event attended by the Tata Sons chairman and French president Emmanuel Macron said that the Air India deal reflects deepening ties between India and France, as well as the successes and aspirations of India’s civil aviation sector. This achievement shows that Airbus and all its French partners are fully dedicated to developing new areas of dedication with India.
• India-US: The Indian prime minister and US President Biden acknowledged the Air India and Boeing deal as a “shining example of mutually beneficial cooperation”. The two leaders also expressed a desire to bolster bilateral cooperation in space, semi-conductors, supply chains and defense co-production.
• India-UK: British prime minister Rishi Sunak also said the Airbus-Air India deal would generate employment opportunities around the UK. This is one of the biggest export deals to India in decades and a huge win for the UK’s aerospace sector.

Challenges

• Funding: When the Tatas took over the company, they had absorbed around ₹15,300 crores of the total debt of ₹61,562 crore belonging to the bleeding air carrier. Thus, it will be challenging for AI to raise a loan of US $50-60 billion to fund the deal.
• Mere customer: if the Make-in-India clause is not added to the deal’s final agreement, India could end up being a ‘mere customer’ of goods with the least direct benefit to the Indian economy.
• Operating costs are high: The Indian aviation industry has many difficulties, including high operating costs. This is caused by a multitude of things, including exorbitant fuel costs, airport fees, and taxes. If all these continued, the profit from these new aircraft will remain low.
• Infrastructure Barriers: The Indian aviation industry is further hampered by outdated air traffic control systems, insufficient ground support services, and restricted airport capacity.
• Regulatory Framework: The regulatory framework is a source of difficulties for the Indian aviation industry.

Conclusion

• Overall, the Indian aviation industry has come a long way in recent years and is poised for further growth in the future. There will be a shakeout in India’s aviation sector, with the ‘Maharajah’ once more ascending the throne to reign supreme over India’s skies.
• With a large jump in international air carriers from India, the deal promises to make India an international hub for air travel. The government’s support, investments in infrastructure, and skilled workforce will be critical to ensuring the industry’s success in the years ahead.

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Context

• The India Energy Week in Bengaluru held from February 6^th to 8^th marks the first
• major event under India’s G20 presidency. The event highlighted the need for energy transition and energy security.
• Thus, this edition of the burning issue will elaborate on the concept of energy security and energy transition.

What is Energy Security?

• Energy security is the uninterrupted process of securing the amount of energy that is needed to sustain people’s lives and daily activities while ensuring its affordability.
• Per the International Energy Agency (IEA), energy security has two main aspects: long-term and short-term energy security. The former deals with investments in energy supply and how it connects to timely economic developments and environmental needs.
• The latter, on the other hand, mainly tackles how the energy system is able to carry out prompt responses to sudden changes in the energy supply and demand cycle.

Why Energy Security is important?

• Sustain economic growth: Access to energy affects the provision and sustainability of humans’ basic needs. Apart from that, it also contributes to a country’s economic growth, political stability, and overall development and security of other sectors such as agriculture and manufacturing.
• Sustainable energy planning: Along with energy accessibility, affordability, and sustainability, energy security forms a significant part of determining sustainable energy planning.
• Food security: Energy security is tied to food security and food transportation, in a way that the agricultural sector is both an energy user and an energy generator. Further, food production covers about 70% of water consumption and 6% of energy consumption on a global scale.
• The rapid growth of energy demand brought about by economic expansion, population growth, new energy uses, and income growth makes energy security a pressing concern.

What is Energy Transition?

• Energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption — including oil, natural gas and coal — to renewable energy sources like wind and solar, as well as lithium-ion batteries.
• The increasing penetration of renewable energy into the energy supply mix, the onset of electrification and improvements in energy storage are all key drivers of the energy transition.
• Regulation and commitment to decarbonization have been mixed, but the energy transition will continue to increase in importance as investors prioritize environmental, social and governance (ESG) factors.
• Historically speaking, energy transitions are not new. In the past, we have seen huge epoch-marking shifts like the transition from using wood to using coal in the 19th century or from coal to oil in the 20th century.
• The energy transition, however, is not only limited to the gradual closure of coal-fired power stations and the development of clean energies: it is a paradigm shift that concerns the entire system.

Why Energy Transition is needed?

• Paris deal commitment: In December 2015, at COP 21 in Paris, an international agreement has signed that set the target of limiting global warming by the end of this century to below 2°C compared with pre-industrial levels and preferably limiting it to 1.5°C. In order to achieve this goal, our main tool is the energy transition
• Protecting the Planet: The urgency of protecting the planet from the greatest threat it has ever had to face, and of doing so as quickly as possible. This impetus has accelerated the changes in the energy sector

Why the alignment of the two concepts seems difficult?

• Lack of financial resources: energy transition for energy security requires huge financial resources which most nations especially developing nations lack.
• Lack of mature new energy technology: most of the technologies which are needed for the energy transition such as 3^rd generation bio-fuels, green hydrogen, fuel cell etc. are still in the developmental stage and require maturity to be deployed at large scale.
• Still heavy dependence on fossil fuels: due to their nature and availability, the world is still heavily dependent on fossil fuels for its energy need. Even developed nations like Britain, the US, Russia etc. still get their majority energy supplies in form of non-renewables.
• A wide gap between developed and developing nations: A sharpening divide between advanced and developing countries on priorities in the transition. The developed nations are pressurizing developing nations to go for energy transition whereas the developing countries demand developed nations to pay for this transition and blame them for the climate crisis.
• Balancing present with future: overnight transition to renewable is neither possible nor desirable. What is needed is to balance the needs of the present and future with a simultaneous and gradual reduction of non-renewables and increase deployment of renewable energy.
• Challenging international situation: such as the Russia-Ukraine war, high inflation, slow international growth has made nations to again go back to nonrenewable sources such as coal and natural due to more availability and cheaper price leading to increased demand for coal after a decade.
• No ideal energy mix: There is no ideal mix that will be unanimously adopted worldwide. The energy transition is specific to each country or group of countries, even if the aim during international climate summits is to adopt major global objectives.
• The transition process is slow: Energy systems lack momentum, making energy transitions a slow process.

How to bring equilibrium between the two?

• Increase funding to promising technologies: The expert view is that the government should consider innovative market reforms to further incentivize the deployment and uptake of renewable energy (RE). It pointed out that government should provide support for RE technologies, including utility-scale battery energy storage systems, round-the-clock plants, and decentralized renewable energy that can replace our dependence on thermal power plants.
• Risk management: To improve the energy security situation, risk management is key. This process involves eliminating risks by diversifying energy sources, absorbing risks by creating a reserve margin of power generation capacities, and preparing for inevitable supply disruptions by creating strategic reserves.
• Funding developing countries: the developed nations under their commitment made in Paris deal 2015 must provide the fund to developing nations to deploy renewable sources of energy.
• Reduce support for fossil fuels: The government should also avoid providing fresh support for coal-based thermal power and phase out existing support measures. In FY21, coal subsidies continued to be two times higher than that for RE and stood at ₹12,976 crore.
• Accelerate deployment of RE: India needs to invest in deflationary renewable energy. The pace of deployment of RE has been slow, so the government should accelerate the deployment of RE and other flexible generation sources to make RE a firm power

Conclusion

“The Stone Age did not end for lack of stone, and the Oil Age will end long before the world runs out of oil.”

• The energy transition is vital to saving the planet from the effects of climate change. Major transformations are underway in the global energy sector, from growing electrification to the expansion of renewable energy, upheavals in oil production and globalization of natural gas markets.
• India also needs to ensure long-term planning to ensure universal energy access and meet its commitment under Paris Agreement to ensure sustainable growth, energy security, and successful energy transition.

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Context

• In a little over a week since New York-based investor research firm Hindenburg Research has accused industrialist Gautam Adani-led conglomerate of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
• This edition of the Burning issue will elaborate on the Hindenberg research issue and other factors coming out of the issue.

About the Hindenberg group and its report

• Hindenburg Research is a company that specializes in forensic financial research.
• It especially looks for accounting irregularities; undisclosed related-party transactions; illegal/ unethical business or financial reporting practices; and undisclosed regulatory, product, or financial issues in companies.
• In late January, Hindenburg Research, which specializes in short selling, published a report critical of the group’s finances.
• The research firm, which has short positions in Adani companies through US-traded bonds and non-Indian-traded derivative instruments, said key listed companies in the group had “substantial debt” which has put the entire group on a “precarious financial footing”.

Outcome of the report

• The seven listed firms have still lost about half their market value – or more than USD 100 billion combined – since the US-based short-seller last week questioned the group over its debt levels, Reuters reported. The listed Adani firms now have a combined market value of USD 108 billion, versus USD 218 billion before Hindenburg’s report.
• Political storm: The report has also caused a political storm in the country with opposition stalling the parliament and demanding a JPC or Supreme court led investigation of the allegations against the Adani Group on the basis of the Hindenburg report.

UPSC exam perspective

• Since the issue is still evolving and both sides are claiming them to be true, the actual truth remains unknown.
• Therefore, this article will tell about both facets of the issue.

The Brighter Picture

Importance of Billionaires for a Nation

• Development of industries: Companies established by these billionaires invest in the development of industries in a nation which in turn helps in the development of the nation. The Reliance group’s telecom giant Jio, Reliance petrochemical plants and Adani Ports, energy are to name a few.
• The face of nation: billionaires represent the face of their nation. Bill Gates, Elon musk, Jack Ma, Mukesh Ambani are well-known billionaires recognized around the world.
• Brings investment: the companies of these billionaires attract a huge amount of foreign investments which help a lot in bringing new technologies and also capital in the domestic economy. For example- Google has paid ₹33,737 crores to Jio Platforms Limited, a subsidiary of the Mukesh Ambani-owned Reliance Industries Limited (RIL).
• Reduce import dependence: With the coming of new technologies or establishing industries for the manufacturing of the products not produced in the country, companies of these billionaires help in reducing imports of the nation. For example, the TATA group, Reliance and Adani have established their defense manufacturing companies which are helping in reducing defence imports and indigenization of defence products.
• Represent face of emerging India– Oxfam India’s latest report which was released on the opening day of the World Economic Forum in Davos, Switzerland reveals that the total number of billionaires in India increased from 102 in 2020 to 166 billionaires in 2022. It’s an indication of the growing economy in India.
• High taxes to government: The billionaires and their companies pay high amounts of taxes to the government, therefore, helping the nation grow. According to an estimate, A 2% tax on the top 100 billionaires would give the government enough money to raise health expenditure to 3% of the GDP.
• Philanthropy: Billionaires in India are well known for their philanthropy. Billionaires Gautam Adani, HCL Technologies’ Shiv Nadar, and Happiest Minds Technologies’ Ashok Soota are the three Indians who have been named in the 16th edition of Forbes Asia’s Heroes of Philanthropy list.

The case of Adani group and its contribution to India’s growth

• Adani Group is one of India’s largest conglomerates and is involved in a wide range of industries and activities, including energy, infrastructure, logistics, resources, agribusiness, and real estate.
• Adani has been instrumental in the development of India’s energy security, with the Adani Group owning and operating the world’s largest solar power plant in Gujarat. Additionally, Adani’s efforts have resulted in the development of numerous infrastructure projects across India, such as ports, airports, roads, and highways.  His company is also involved in activities such as mining, power generation, and transmission, and is a major player in the renewable energy sector.
• In addition to his business accomplishments, Adani has also been involved in several philanthropic initiatives, such as the Adani Foundation, which provides education and healthcare services to underprivileged communities.

The Darker Picture

• Leads to crony capitalism: A political-economic system in which success in business depends on close relationships between business people and government officials, rather than on merit and competition. Adani Group (CAG report highlighted “undue benefits” that the Gujarat government gave to Adani Ports by waiving waterfront and other charges); The 2G spectrum scam; Coalgate Scandal etc. Also, India was ranked in 9th position in crony capitalism where crony sector wealth accounted for 3.4% of Gross Domestic Product (GDP)
• Creates Distrust in the economy: The revelation of facts, such as by the Hindenberg Report, creates distrust in the economy leading to decreased capital inflows and thus investments.
• Stock market crashes: Such a report causes economic loss to companies as happened recently with Adani company’s stocks.
• Propaganda against India: such reports are also claimed to be part of the propaganda to tarnish India’s image at the global level. The timing of the release of the Hindenburg report is susceptible- just before release of Rs 20,000 crore FPO by Adani group and the Budget session of Indian parliament.

Ethical issues with billionaires

• Tax Avoidance: Many billionaires take advantage of loopholes and offshore accounts to avoid paying taxes on their income, depriving governments of much-needed revenue.
• The exploitation of Workers: Billionaires often employ workers from developing countries, paying them low wages and subjecting them to poor working conditions.
• Political Power: Some billionaires use their wealth to influence politicians and governments, creating a system of unequal power and privilege.
• Concentration of Wealth: The vast wealth of billionaires is often seen as morally wrong when so many people in the world live in poverty.

Conclusion

• The ultimate major loser in this row is the investors in Adani Group who suffered losses after the short-seller Hindenburg Research’s report. Thus, currently, there is a need to safeguard the investors.
• The Securities and Exchange Board of India (SEBI) should suggest measures to ensure the protection of Indian investors after the short selling.
• Simultaneously, the allegations against Adani Group must be verified by SEBI through an independent inquiry along with the role of Hindenberg Research in the whole issue. 

Context

• In the Union Budget for 2023-24, Finance Minister Nirmala Sitharaman chose the path of relative fiscal prudence and projected a decline in fiscal deficit to 5.9% of gross domestic product (GDP) in FY24, compared with 6.4% in FY23.
• Ms. Sitharaman said the government planned to continue on the path of fiscal consolidation and reach a fiscal deficit below 4.5% by 2025-26.
• In this context, this edition of the burning issue will elaborate on the issue of the Fiscal deficit of the Indian government and its roadmap for fiscal consolidation.

What is a Fiscal Deficit?

• Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
• A fiscal deficit situation occurs when the government’s expenditure exceeds its income. 
• Simply put, it is the amount the government spent beyond its income and is measured as a percentage of the GDP.
• The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce fiscal deficits. The Budget 2019-20 has pegged the fiscal deficit for the year 2019-20 at 3.3% of GDP.

Current situation of Fiscal Deficit in India

• Reduced fiscal deficit target: In Union Budget 2023-24, the fiscal deficit to GDP is pegged at 5.9% in FY24. This ratio has declined from 6.4% in 2022-23 (revised estimate) and 6.7% in 2021-22 (actual).
• Reduced revenue deficit: In the revenue budget, the deficit was 4.1% of GDP in 2022-23 (revised estimate). In Union Budget 2023-24, the revenue deficit is 2.9% of GDP. If interest payments are deducted from a fiscal deficit, which is referred to as the primary deficit, it stood at 3% of GDP in 2022-23 (RE).
• The primary deficit, which reflects the current fiscal stance devoid of past interest payment liabilities, is pegged at 2.3% of GDP in Union Budget 2023-24.
• India is ‘fairly’ confident to meet its target to cut its fiscal deficit by nearly 200 basis points to 4.5% of GDP in the next three years, assuming there is no major global economic shock.
• As economic growth continues and the government aims to cut spending on subsidies, the deficit should be able to fall to 4.5% of GDP by 2025/26.

What is fiscal consolidation?

• Fiscal consolidation refers to the ways and means of narrowing the fiscal deficit. A government typically borrows to bridge the deficit. It will then have to allocate a part of its earnings to service the debt.
• The interest burden will increase as the debt increases. In the Budget for FY22, of the total government expenditure of over ₹34.83 lakh crore, more than 8.09 lakh crore (around 20 percent) went towards interest payment.
• Debt is one liability that is difficult to defer and, at the end of the day, the government struggles to find more resources not just for capital expenditure but also for revenue expenditure. In the long run, the uncontrolled fiscal deficit will hurt economic growth.

Is fiscal consolidation legally mandated in India?

• The seeds for fiscal consolidation were sown in 1994 by the then Finance Minister Manmohan Singh. In his budget speech for FY95, he highlighted the need for fiscal discipline and pronounced a policy to end monetizing the deficit. 
• As open market borrowings piled up to fund the deficit, Yashwant Sinha in his budget speech for FY01 called for a strong institutional framework to ensure fiscal responsibility. This resulted in the enactment of the ‘Fiscal Responsibility and Budget Management (FRBM) Act, 2003’, which mandated limiting the fiscal deficit to 3 percent of GDP.

What is the government doing to achieve fiscal consolidation?

• The fiscal policy needs to remain “accommodative”: with a focus on gross capital formation in the economy with enhanced capital spending, especially infrastructure investment.
• Enhanced capital spending: In Budget 23-24, capital spending is expected to rise to 3.3% of GDP. Ms. Sitharaman stressed that infrastructure investment has a larger multiplier effect on economic growth and employment. In this context, various schemes such National Monetization Pipeline, Gati Shakti Yojana, etc. have been launched.
• Helping states too: The interest-free loan of ₹1.3 lakh crore for 50 years provided to States should help them spend and boost growth.
• Increased revenue of the government: According to the CGA data for the first eight months of FY23, GoI’s gross tax revenues (GTR) has shown a growth of 15.5% which is just above the nominal GDP growth of 15.4% estimated for the full year of FY23. With this, the GoI’s GTR may be estimated at INR31.3 lakh crore in FY23, exceeding the budgeted magnitude by about INR3.7 lakh crore.
• Reducing subsidies: Two favorable trends relate to the prospect of moderation of global crude prices accompanied by a fall in inflation. This may open up the possibility of reducing some of the relatively large petroleum price-linked subsidies. While the GoI has already committed to an expanded free food grain scheme under PM-GKAY, some of the fertilizer and petroleum subsidies may be reduced.

What are the challenges?

• Less consolidation by states: The states have less fiscal consolidation to do than the central government.
• Committing to High-quality spending: Both have a common challenge to commit to more capex, which is considered high-quality spending as it “crowds in” private investment if done responsibly. And we believe that investment is the only sustainable way to increase the capacity of the economy to grow and create jobs.
• Balancing the capex and fiscal consolidation: For the central government, the challenge is to hold on to its capex push at a time of fiscal consolidation. For the states, the challenge is to start doing more.

Is there a trade-off between fiscal consolidation and growth?

• It is debatable. Many economists have said that speedier economic growth depends on limiting the fiscal deficit. They reason that a high fiscal deficit will increase borrowings and the interest burden would curtail the government’s ability to spend productively. Also, increased government borrowing will crowd out the private sector in the debt market, leading to higher interest rates, which will hurt growth.
• Other economists have argued that fiscal consolidation is not a fiscal compression mechanism, rather it is an expenditure-switching mechanism. The original FRBM Act of 2003, they say, pushed for shifting the expenditure from revenue to capital, which will lay the foundation for higher growth. They argue that the FRBM Amendment Act of 2018 completely dilutes the original Act to become contractionary.

What more can be done? The way forward

• Supporting growth in the short and medium term: Given the relatively lower revenue growth expected in FY24, it may be best to contain the growth of revenue expenditure and continue to emphasize capital expenditure growth as it is associated with higher multipliers.
• Infrastructure expansion should continue: to be the main priority for government expenditure while continuing to encourage Aatmanirbhar Bharat.
• Promote Employment generation: The GoI may also need to signal its priority for employment creation. The sector that suffered the most during COVID-19 was trade, hotels, transport, storage et. al. which is employment intensive. This sector would need to be supported through government programs that generate demand specific to these segments.
• Urban employment schemes: It would also be worthwhile considering whether the rural employment guarantee scheme should be extended to urban areas as has been done by some state governments.
• Raising the tax revenue through formalization: Continued formalization of the economy that raises tax revenues (though “organic” formalization will likely be more sustainable than “forced” formalization).
• Disinvestment of PSUs: A bigger push for disinvestment by selling stakes in public-owned companies, and further tax reforms (in terms of direct taxes and the GST).

Conclusion

• Fiscal consolidation and capital expenditure should go hand in hand. More government spending means more infrastructure building and more chances of growth and employment. However, this spending should be done with a sound fiscal base.
• Thus, careful calibration would be required for limiting revenue expenditure growth in order to retain space for capital expenditure to grow adequately with a view to supporting growth.

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Context

• This year’s 30^th January marks the 75^th death anniversary of the Father of the Nation- MK Gandhi. Also, a movie named “Gandhi-Godse: Ek Yudh” was recently released highlighting the different aspects related to the assassination of Gandhi.
• In this context, this edition of the burning issue will elaborate on Gandhiji and his ideas and their relevance in the modern world.

About Mahatma Gandhi

• Mohandas Karamchand Gandhi, popularly known as Mahatma Gandhi, is regarded as the Father of the Nation. Gandhi was born on 2^nd October,1869 in Gujarat and studied law at the Inner Temple, London.
• Gandhi was a social reformist and leader of the Indian Independence Movement who introduced the idea of non-violent resistance called Satyagraha.
• After organizing a civil disobedience movement for Indians living in South Africa, he returned to India in 1915. In India, he set out on a train journey to different parts of the country trying to understand the problems of farmers, peasants and urban laborers and organizing protests for them.
• He assumed the leadership of the Indian National Congress in 1921 and rose to become its most prominent leader and iconic figure in Indian politics.
• Gandhi also wrote extensively for various newspapers and his symbol of self-reliance – the spinning wheel – became a popular symbol of the Indian Independence Movement.
• Gandhi played a key role in pacifying people and averting the Hindu-Muslim riots as tensions rose before and during the partition of the country. He was shot dead by Nathuram Godse on January 31, 1948.

What happened after Gandhi’s Assassination?

• Mahatma Gandhi was walking towards the prayer mandap at Birla House in Delhi when 35-year-old Nathuram Godse came before him and pulled out a pistol from his pocket. He fired three shots from point-blank range that hit Gandhi in the chest, stomach, and groin. Within 15 minutes, the Father of the Nation was dead.
• Godse was apprehended by military personnel who were at the spot, and his pistol was snatched away. The assassin was beaten by the crowd before police took him into custody. Subsequently, he was lodged at a police station on Tughlaq Road, where an FIR was registered. The trial began in May 1948 at a special court set up in Delhi’s Red Fort.
• The judgment was pronounced on February 10, 1949. Judge Atma Charan convicted Godse, Apte, and five others of the crime. Both Godse and Apte were sentenced to death. Savarkar was acquitted.
• The hanging of Godse and Apte became inevitable after the Governor-General of India rejected their mercy petitions. Godse’s mercy petition was filed by his parents, not him. Both men were hanged on November 15, 1949, in Ambala jail.

Ideas of Mahatma Gandhi

Concept of Non-Violence:

• Gandhi adopted the word ‘non-violence’ which means refraining from the use of physical force capable of causing injury or death to the opponent. Even though Gandhi admits that he could not succeed in defining ahimsa fully the meaning of this word developed further in the hands of Gandhi. Ahimsa means and includes non-violence in thoughts, words and deeds toward all sentient beings.

Concept of Satyagraha:

• The term satyagraha is derived from a compound word in Sanskrit, Satya and agraha. Satya means that which is in accordance with sat or being, that is, truth. Agraha means holding fast, adherence or insistence. Thus, the compound word satyagraha means clinging to truth, holding fast to truth, insistence on truth or firm adherence to truth. In the socio-political field satyagraha was a kind of resistant movement against unjust laws. He adopted the term satyagraha which would give almost the same meaning of ‘Passive Resistance.’

Concept of Nai Talim:

• The phrase Nai Talim is a combination of two words- Nai Means ‘New’ and Talim – an Urdu word-means ‘Education’. In 1937, Gandhiji introduced the concept of Nai Talim in India. It aimed to transform the Indian education system which was based on colonial education at that time. It is an approach to the total personality development of the body, mind and spirit of the students

Concept of Trusteeship:

• Trusteeship is a socio-economic philosophy developed by Mahatma Gandhi as a part of his nonviolent revolution. It is a concept where a person voluntarily gives up or renounces his right to the money earned by him and dedicates it to the welfare of the poor section of society.

Pillars of Gandhi’s philosophy

The main pillars of Gandhi’s philosophy were non-violence, tolerance of others, respect for all religions, and simple life.

Compassion:

• Gandhi believes that the true core of a person is the part that is not selfish and which works for others.  He is saying that the essence of what we are (the thing that we have to find) is caring for others. 

Truth:

• Gandhi, in short, was a leader looking for a spiritual cause. He found it, of course, in his non-violence and, ultimately, in independence for India. Truth, Satya, was the central axis of the Gandhian system of thought and practice. For Gandhi, everything turned on Truth – satyagraha, swaraj, ahimsa, ashram, brahmacharya, yajna, charkha, khadi, and finally, moksha itself. Gandhi’s life and ideas are arranged around the axial principle of Truth.

Secular:

• Gandhi made great use of the Bible in his prayers, teachings, writings and Ashram liturgies. He was often accused of being a crypto-Christian. Gandhi considered interculturalism as a call for simultaneous awareness of commonalities, acceptance of differences, and recognition of shared values.

Honesty:

• Gandhi had a blend of sincerity and efficiency bringing forth the most positive strength. Gandhi accomplished any given task with honesty and diligence. Once a decision was made he gave his all to it. He used to follow up till the end of the task. He used to be positive even under all difficult circumstances and had an optimistic view of life and never lost hope. He maintained impeccable integrity in individual life and public conduct

Dignity:

• He looked at life holistically and worked with utmost concentration. He treated all work as a God-given gift and all jobs were of equal importance. He had a keen desire to restore the dignity of all human beings. Advanced on the path of morality, spirituality and ethical progress by being firm on Truth 

Some famous quotes from Gandhiji

·         “I understand democracy as something that gives the weak the same chance as the strong.” 

·         “A man is but the product of his thoughts. What he thinks, he becomes.”

·         “If instead of insisting on rights, everyone does his duty, there will immediately be the rule of order established among mankind”

Global impact of Gandhi

• Historians say Gandhi proved that one man has the power to take on an empire, using both ethics and intelligence. Other peaceful resisters such as Martin Luther King Jr. during the 1960s civil rights movement and Tibet’s Dalai Lama have emulated his methods in years since, shaking up the dynamic of world politics in the process.
• Martin Luther King Jr. is said to have been heavily influenced by Gandhi’s philosophy of non-violence, believing it to be the only logical approach to the problem of race relations in America.
• Gandhi-King Initiative: The initiative is an exchange program between India and the U.S. to study the work and legacies of Gandhiji and civil rights leader Martin Luther King Jr. It will establish annual scholar and student exchange programs for Indians and Americans to study the leaders’ legacies and visit historic sites in India and the U.S. The visits will be relevant to India’s freedom struggle and the U.S.’s civil rights movement.
• Impacted the world leaders: He firmly believed that the spirit of genuine reciprocity and solidarity is not just a moral requirement, but also a geopolitical necessity. The Gandhian technique of mobilizing people has been successfully employed by many oppressed societies around the world under the leadership of people like Martin Luther King in the United States, Nelson Mandela in South Africa, Aung San Suu Kyi of Myanmar which is an eloquent testimony to the continuing relevance of Mahatma Gandhi.

But then, why he is criticized also?

• In South Africa, academics Ashwin Desai and Goolam Vahed, in their book The South African Gandhi: Stretcher-Bearer Of Empire, have questioned Gandhi’s role in upholding the British empire and fighting only for the rights of Indians, and not of others, there.
• His statue in Johannesburg was once smeared with white paint (symbolically implying that Gandhi was an apologist of the country’s Whites). South African cities have debated whether or not to have more commemorations. A university in Ghana has removed a Gandhi statue because of his allegedly “racist” views on ethnic Africans. 
• Jawaharlal Nehru was a believer in the non-violent satyagraha politics that Mahatma Gandhi espoused during the freedom struggle. But on the finer points of politics, Nehru differed vastly from Mahatma Gandhi. Mahatma Gandhi believed in dharma-based politics while Nehru’s ideas of politics were deeply entrenched in democratic socialist principles. Mahatma Gandhi looked for continuity in India’s socio-political fabric by doing away with certain “impurities” that had crept in. Nehru advocated a reform towards modernity.
• Nehru did not approve of Gandhi’s economic ideals that called for the only limited adoption of modern technological progress. Nehru, on the other hand, rejected these ideas and favored big factories based on the latest technologies.
• BR Ambedkar also criticized Gandhi. Gandhi believed that the caste system was the basis of Indian society, particularly the majority Hindu community. Mahatma Gandhi opposed caste discrimination but he did not reject the social structure that bred bias against people based on their birth.
• Ambedkar, on the other hand, held the caste system as the root of all the social evils that Indian society faced. He also rejected Mahatma Gandhi’s idea of making the village a unit of administration. Ambedkar favored a wholesome change in the village structure as he believed that the village was the breeding ground for caste discrimination and communalism.

But his ideas and principles are still relevant today, like

Ahimsa:

• Mahatma Gandhi’s principle of non-violence is very relevant as the world faces terrorism and other forms of violence. In present times, the ideal of non-violence needs to guide the approach of individuals and nations, and world organizations, like violence, initiate a vicious circle of repression and injustice.

Satyagraha: 

• Gandhiji called the general method of nonviolent action ‘Satyagraha’. It is the expression of the purest spiritual power against all injustice, oppression, and exploitation. Satyagraha was thought of as the moral alternative to war. 
• Anna Hazare’s anti-corruption protest for Lokpal, and the farmer’s protests against the Farm Laws have also resorted to non-violence satyagraha to meet their demands.

Swadeshi: 

• Indigenous peoples focus on political and economic action inside and outside their communities. It is the interdependence of community and self-reliance. Gandhi’s thought of swadeshi is still prevalent in our society, by taking steps towards making India self-reliant.
• During the Covid times, when India was witnessing a severe economic crisis, Prime Minister Narendra Modi called ‘Atma Nirbhar Bharat‘, the second version of Swadeshi. This swadeshi form aims to make the country self-reliant. In order to free the country from the shackles of hunger, unemployment, and poverty, swadeshi is the best path to unshackle these.

Secularism:

• Gandhiji was tolerant of all religions. Today, the world needs more and more religious and intelligently tolerant people in societies where violence is perpetrated in the name of religion. In society, tolerance helps to neutralize religion, caste, ethnicity, region, etc. in the world, based on day-to-day ethnic-Centered prejudices. 

Communal Harmony: 

• Gandhi always made an effort for Hindu-Muslim unity. At the present time, this ideology is equally significant. If Hindus and Muslims are united, the country can reach the heights of becoming a world power. A person should always respect others’ faith. Cases of mob lynching are also violating the Gandhian ideology of communal harmony, so steps should be taken in this direction.

Decentralization: 

• The Gandhian idea of decentralization was implemented in democracies through the 73rd and 74th amendments, which empowered local self-governments at the grassroots level. Indian Government, for instance, has implemented local self-government by adopting the Panchayati Raj and Municipality system in rural and urban areas, respectively, and providing them with some subjects under the state list. This ideology of Gandhi is still relevant and plays a vital role in India’s grass root development.

Cleanliness: 

• Gandhi paid great attention to purity, or cleanliness and was a staunch advocate of ‘Swachhata’. He used to say, “Cleanliness hi Seva.” India’s most significant cleanliness initiative, the recently implemented Swachh Bharat Abhiyan, fulfills Bapu’s dream of making India clean.

Sustainable Environment: 

• Gandhi always spoke of the minimization of wants and advocated a nature-friendly idea. Gandhi believed that “there is enough on earth for human needs but not enough for human greed.” These lines from Mahatma Gandhi show how human behavior destroys nature, and there is a need for a sustainable lifestyle in our times. 
• The world revolves around global warming, climate change, and resource depletion, and all environmental covenants and sustainable development efforts must implement Gandhi’s philosophy.

Women Emancipation: 

• Gandhi played a vital role in bringing women out of their domestic work and involved them in public life. He was against the patriarchal form of society. With glass ceilings still far from being shattered in the public sphere, the Gandhian thought of women’s emancipation remains relevant.

Conclusion

• Albert Einstein explained Gandhiji’s importance in the following quote, “Generations to come, it may well be, will scarce believe that such a man as this one ever in flesh and blood walked upon this Earth.” The quote is sufficient to summarize the personality of Mahatma Gandhi.
• Gandhi’s thought was an inspiration for society. Ultimately, all ideas and thoughts of the Mahatma were reached by him via lifelong experimentation with truths, which makes Gandhian thoughts more significant in the present era.
• In order to become a superpower during the ‘Amrit Kaal’, India should pay homage to Gandhian ideology and walk in the assigned path.

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Context

• The World Economic Forum (WEF, as announced earlier, chose Hyderabad as the location for its Center for the Fourth Industrial Revolution (C4IR), which will focus on healthcare and life sciences.
• In this context, this edition of the burning issue will talk about C4IR, the 4^th industrial revolution and India’s readiness to embrace it.

Objective of setting the ‘Center for the Fourth Industrial Revolution’ (C4IR)

• The C4IR Hyderabad will be an autonomous, non-profit organization and the only such World Economic Forum in India with a thematic focus on healthcare and life sciences.
• The C4IR Hyderabad will facilitate, advance and accelerate the development and adoption of newer technologies including genomics, personalized medicine and healthcare manufacturing, with a focus on the interplay between life sciences and technology in the region and globally.
• It will be the 18th center to join WEF’s Fourth Industrial Revolution (4IR) network that spans four continents.

What is industrial revolution 4.0?

• According to the Executive Chairman of WEF, Klaus Schwab, “the fourth industrial revolution is a technological revolution that will fundamentally alter the way we live, work and relate to one another”.
• It is the information-intensive transformation of manufacturing and related industries into smart factories.
• It involves the integration of some of the key emerging technologies and trends such as the Internet of Things (IoT), robotics, virtual reality (VR) and artificial intelligence (AI).

Four integral design principles of Industry 4.0

• Technical assistance: The ability of the system to assist humans in decision-making, problem-solving, and helping humans with difficult or unsafe tasks.
• Information transparency: Sharing immense amounts of data and information among the components, to instantly adjust and optimize for higher efficiency.
• Decentralized decisions: The ability of cyber-physical systems to make decisions on their own and to perform their tasks as autonomously as possible.
• Interconnection: The ability of devices and people to connect and communicate with each other through the Internet of things.

The Previous three industrial revolutions

• 1^st industrial revolution: The first Industrial Revolution began in Britain in the last quarter of the 18th century with the mechanization of the textile industry, the harnessing of steam power, and the birth of the modern factory.
• 2^nd industrial revolution: The Second Industrial Revolution, from the last third of the nineteenth century to the outbreak of World War I, was powered by developments in electricity, transportation, chemicals, steel, and mass production and consumption. Industrialization spread even further – to Japan after the Meiji Restoration and deep into Russia, which was booming at the outset of World War I. During this era, factories could produce countless numbers of identical products quickly and cheaply.
• 3^rd industrial revolution: The third industrial revolution, beginning c. 1970, was digital — and applied electronics and information technology to processes of production. Mass customization and additive manufacturing — the so-called ‘3D printing’ — are its key concepts, and its applications, yet to be imagined fully, are quite mind-boggling.

How different will be the 4^th industrial revolution?

There are three reasons why today’s transformations represent not merely a prolongation of the Third Industrial Revolution but rather the arrival of a Fourth and distinct one: velocity, scope, and systems impact.

• The speed aspect: The speed of current breakthroughs has no historical precedent. When compared with previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace.
• The scope aspect: it is disrupting almost every industry in every country. And the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.
• The system aspect: The 4^th revolution will be characterized by the advent of cyber-physical systems which, while being reliant on the technologies and infrastructure of the third industrial revolution, represent entirely new ways in which technology becomes embedded within societies and even our human bodies. Examples include genome editing, new forms of machine intelligence, and breakthrough approaches to governance that rely on cryptographic methods such as blockchain.
• Hence, it can be said that the 4^th industrial revolution is conceptualized as an upgrade on the third revolution and is marked by a fusion of technologies straddling the physical, digital and biological worlds.

Benefits of Industrial Revolution 4.0

• Improve the quality of life: Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world.
• Enhance productivity: Industry 4.0 technologies enable can lead to optimizing resource allocation, reducing downtime and improving production rates, which makes the manufacturing processes more cost-effective and efficient.
• Cost efficiency: Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.
• Knowledge Sharing and Collaborative Working: Industry 4.0 technologies allow your production lines, business processes, and departments to communicate regardless of location, time zone, platform, or any other factor. Hence, it will facilitate smoother integration of India into the global supply chain. Faster communication and cheaper production technologies can ensure smoother integration of India into the global supply chain. India’s automotive manufacturing sector is a leading user of IR 4.0 technologies.
• Employment generation: Though the fear of job loss due to Industry 4.0 is widespread, various research points out that is baseless. The Future of Jobs Report 2018 by the World Economic Forum (WEF) predicts the loss of 75 million employments by 2022 worldwide and the production of 133 million occupations over a similar period.

Challenges to 4IR

• Cybersecurity issues may increase: In IR 4.0, People, products and equipment will be increasingly connected to the internet. Although this gives us greater access to data via the cloud, it opens up opportunities for hackers to access networks.
• Reduce the number of low-skill jobs:  Manufacturing, and industry as a whole, continues to rely on humans to enable production. However, the move to digitally connected systems may unintentionally reduce the need for low-skill labor.
• Industry and Market Disruption: With the new technologies of 4IR, industries that are not able to move with the change will not be unable to survive what Industry 4.0 brings to market.
• The rise in social inequalities: With this revolution will give rise to a job market increasingly segregated into low-skill/low-pay and high-skill/high-pay segments, which in turn will lead to an increase in social tensions. In India, where digital literacy is dismal, a revolution of this sort can lead to a sharp rise in inequalities.

Challenges specific to India

• Deficiency of Infrastructure & internet Connectivity: Besides digital infrastructure, the country lacks some basic infrastructure such as 24×7 power, high-speed internet (especially in rural areas) and a workforce with the necessary skill set.
• Quality of data: Due to a lack of established data collection standards and a large informal sector, India is unreliable when it comes to the quality of data collected
• Limited focus on Research and Development: Though India has emerged as the choice location for cutting-edge Research and Development (R&D) projects for global companies, the overall spending on it remains dismal.

Steps taken by Government

• SAMARTH Udyog Bharat 4.0: Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 is an Industry 4.0 initiative of the Department of Heavy Industry, Ministry of Heavy Industry & Public Enterprises. It seeks to facilitate and create an ecosystem for the propagation of Industry 4.0 set of technologies in every Indian manufacturing by 2025, be it MNC, large, medium, or small-scale Indian company.
• Centre of Excellence (CoE) on IT for Industry 4.0: This CoE would act as a knowledge center for entrepreneurs and startups, propagating the concept of IT and its application in IR 4.0.
• Centre for Fourth Industrial Revolution: World Economic Forum has opened its 4th center for Fourth Industrial Revolution in Mumbai. It is the fourth in the world after San Francisco, Tokyo and Beijing. It will work in collaboration with NITI Aayog in India to co-design new policies and protocols for emerging technologies. The initial focus of India will be on Artificial Intelligence, Blockchain and drones.
• National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS):  Launched by the Union government in 2018, it was implemented by the Department of Science &Technology.The Mission addresses the ever-increasing technological requirements of society and takes into account the international trends and road maps of leading countries for the next generation of technologies.
• National Strategy on Artificial Intelligence: Under the strategy, NITI Aayog has adopted a three-pronged approach – undertaking exploratory proof-of-concept AI projects in various areas, crafting a national strategy for building a vibrant AI ecosystem in India and collaborating with various experts and stakeholders.

What is The Global Lighthouse Network?

• The World Economic Forum, in collaboration with McKinsey, launched the Global Lighthouse Network (GLN) in 2018 to identify organizations and technologies in the vanguard of the Fourth Industrial Revolution.
• A lighthouse (in this context) is a manufacturing site that has successfully implemented 4IR technologies at scale, with a significant operational impact.
• Today, 103 lighthouses—such as Tata Steel’s plant in Kalinganagar, India, and select Henkel Laundry & Home Care production sites—have been identified around the world.

Way Forward

• Go for international collaboration: India needs a collaborative effort. It will have to create a long-term ecosystem that trains and educates professionals. India could collaborate with the US, Germany, and the EU. The central government can consider a joint platform between ministries, state governments and industry bodies to create a mission for making the most of the Fourth Industrial Revolution technologies.
• Promote industry-academia collaboration: There is an urgent need for more industry-academia collaboration and to develop requisite skills in technology. Introduction of a compulsory apprenticeship program to encourage hands-on experience in technology as early as higher secondary level.
• Increase investments: to fortify quality, prioritize investments in innovation and R&D and invest in life-long learning for employees. He urged the industry to think big and think globally.
• Focus on improving productivity: To effectively embrace digitalization, the industry has to foster competitive advantage across their value chains, focus on productivity and fill productivity gaps to compete globally.

Conclusion

• Fourth Industrial Revolution is about more than just technology-driven change; it is an opportunity to help everyone, including leaders, policy-makers and people from all income groups and nations, to harness converging technologies to create an inclusive, human-centered future.
• The real opportunity is to look beyond technology and find ways to give the greatest number of people the ability to positively impact their families, organizations and communities

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Context

• Egyptian President Abdel Fattah El-Sisi will be the chief guest at the seventy-fourth republic day celebrations on 26 January 2023. It will be President Sisi’s third visit to India after assuming the presidency of Egypt in 2014.
• In this context, this edition of the burning issue will discuss the Indo-Egypt bilateral relationship.

Historical background of the Relationship

• India and Egypt, two of the world’s oldest civilizations, have enjoyed a history of close contact from ancient times. Even before the Common Era, Ashoka’s edicts refer to his relations with Egypt under Ptolemy II.
• In modern times, Mahatma Gandhi and Saad Zaghloul shared common goals regarding the independence of their countries, a relationship that was to blossom into an exceptionally close friendship between Gamal Abdel Nasser and Jawaharlal Nehru, leading to a Friendship Treaty between the two countries in 1955.
• The Non-Aligned Movement, led by Nehru and Nasser, was a natural concomitant of this relationship. In 1955, Egypt under Gamal Abdel Nasser and India under Jawaharlal Nehru became the founders of the Non-Aligned Movement.
• During the 1956 War, Nehru stood supporting Egypt to the point of threatening to withdraw his country from the British Commonwealth. In 1967, following the Six-Day War, India supported Egypt and the Arabs.
• Since the 1980s, there have been four Prime Ministerial visits from India to Egypt: Shri Rajiv Gandhi (1985); Shri P. V. Narasimha Rao (1995); Shri I. K. Gujral (1997); and Dr Manmohan Singh (2009). Prime Minister Dr Manmohan Singh participated in the XV NAM Summit held in Sharm EISheikh in July 2009.

Significance of the relations

• A pivotal regional power: With a population of almost 110 million, a location that straddles Africa and Asia, a standing army that is the largest in the region, a capital that hosts the League of Arab States and a diplomatic presence that punches above its weight in global affairs, Egypt is a pivotal player.
• Gateway to both Europe and Africa: Egypt, the most populous country in West Asia, occupies a crucial geo-strategic location — 12% of global trade passes through the Suez Canal — and is a key player in the region. It is a major market for India and can act as a gateway to both Europe and Africa.
• Close relationship immediately after Independence: It is a country with which India enjoyed an exceptionally close relationship in the first couple of decades after our independence.
• A shared vision of NAM: The personal equation between Prime Minister Nehru and President Nasser was legendary and the two also became the stalwarts of the nonaligned movement during the Cold War of the 1960s.
• Friendly voice in the Islamic world: Relations between the two countries have been historically good. India sees Egypt as a moderate, friendly voice in the Islamic world, and New opportunities lie ahead for the two Global South partners.
• Joint fighter project: At the political level, the two countries were close enough for India to send clandestine arms shipments to Egypt during the Suez crisis in 1956 and contemplate nuclear cooperation and a joint fighter project in the 1960s.
• Indian literature in Egypt: It was a time when Mahatma Gandhi and Rabindranath Tagore were household names and their works were translated into Arabic by leading figures of Arab literature.
• Tough on terrorism: From the beginning, Sisi has been tough on Islamic religious extremism — critics say he saw an advantage in positioning himself against the Muslim Brotherhood whose leader, Morsi, had been jailed — and has earned praise for his fight.

Current state of Bilateral relations

Political Relations

• India and Egypt share close political understanding based on a long history of contact and cooperation in bilateral, regional and global issues. Both countries have cooperated closely in multilateral fora and were the founding members of the Non-Aligned Movement. The year 2022 is of particular significance since it marks the 75th anniversary of diplomatic relations between India and Egypt.
• Hardeep Singh Puri November 2019 addressed the inaugural session of the “Regional Conclave on India – West Asia and North Africa (WANA)” organized by the Confederation of Indian Industry (CII).
• There are several mechanisms of bilateral institutional dialogue at different levels like The Joint Working Group on Cyber Issues, Joint Committee Meeting on S&T, India-Egypt JWG on Counter Terrorism etc.

Economic Relations

• The India-Egypt Bilateral Trade Agreement has been in operation since March 1978 and is based on the Most Favoured Nation clause and the bilateral trade has increased more than five times in the last ten years. The bilateral trade in 2018-19 reached US$ 4.55 billion. Despite the Pandemic, the volume of trade declined only marginally to US $ 4.5 billion in 2019-20 and to US $ 4.15 billion in 2020-21.
• Wheat export from India: Russia-Ukraine conflict has threatened Egypt with a shortage of wheat, 80% of which is imported from Russia and Ukraine. On 14 April 2022, Egyptian Cabinet announced the inclusion of India in the list of accredited countries which can supply wheat to Egypt, thus ending a long pending Non-Tariff Barrier.
• Around 50 Indian companies have invested in various sectors in Egypt with a combined investment exceeding US$ 3.15 billion. Major Indian investments in Egypt include TCI Sanmar (with the largest investment of US$ 1.5 billion), Alexandria Carbon Black, Kirloskar, Dabur India, FLEX P. FILMS, SCIB Paints, Godrej, Mahindra and Monginis. 
• Technical cooperation and assistance have been a major part of our bilateral relationship. Since 2000, over 1300 Egyptian officials have benefited from ITEC and other programs like ICCR and IAFS scholarships.

Defence Relations

• Egypt and India enjoy cordial defence relations. The landmark event of the year 2022 was the official visit of Shri Rajnath Singh. Fruitful discussions on various aspects of Defence cooperation and ways to further enhance mutual exchanges were held during the meetings. An MoU on Defence Cooperation was signed on 19 Nov 2022 by both defence ministers.
• Egypt participated in the Multinational Training Exercise for friendly African countries held at Pune in March 2019. The first ever IAF-EAF Joint Tactical Air Exercise, Dessert Warrior, was held in Egypt from 29-31 October 2021.

Cultural Relations

• The Maulana Azad Centre for Indian Culture (MACIC) has been promoting cultural cooperation between the two countries, through regular activities such as Hindi, Urdu and Yoga classes; seminars; film shows; exhibitions and participation in local cultural activities. 
• Yoga has gained immense popularity in Egypt. IDY was celebrated with much vigour in 2022; yoga events were held in Alexandria (on 12th June 2022), and for the first time, in Sharm Al-Sheikh.

Indian Community

• At present, the Indian community in Egypt numbers around 3200, most of whom are concentrated in Cairo. About 400 Indian students are studying in Egypt, mainly at Al Azhar University.

Limitations in the relationship

• Low bilateral trade: China’s bilateral trade with Egypt is currently at $15 billion, double that of India’s $7.26 billion in 2021-22. Sisi has been wooing Chinese investments and has travelled to China as many as seven times in the last eight years.
• Defence trade deficiencies: Cairo is interested in Indian defence products but Indian defence manufacturers are still not in a position to supply defence products in large quantities which makes Cairo to look towards other nations for its defence needs.
• Low people-to-people connections: direct people-to-people connection, lack of Indian diaspora in the country also makes it difficult to strengthen relations at ground level.

Outcomes from the current visit

• Consolidating India’s new coalition in the Middle East: The renewed engagement with Egypt is about consolidating India’s new coalition with moderate Sunni states in the Middle East, including Jordan, Saudi Arabia and the UAE. It could help promote peace and stability in the Middle East and South Asia
• Ties elevated to strategic partnership: India and Egypt agreed to elevate their bilateral ties to a “Strategic Partnership” covering political, security, defence, energy and economic aspects.
• Enhance cooperation in diverse sectors: The meeting led to further strengthening cooperation between defence industries, and enhance the exchange of information and intelligence related to counter-terrorism. Extensive discussions were also held on strengthening the food and pharma supply chains affected by the Covid and the Ukraine conflict. Increase mutual investment and trade in these areas and take bilateral trade to 12 billion dollars.
• Exchange of media content: Media Authority of Egypt and Prasar Bharati to exchange content. Under the pact, both broadcasters will exchange their programs of different genres like sports, news, culture, and entertainment on a bilateral basis.

Way forward

• For India, a deeper economic engagement with Egypt, therefore, acquires an additional strategic imperative.
• While Egypt needs to do more to market itself as an investment destination in India, it is also important for industry bodies like CII, FICCI and ASSOCHAM to take a more proactive approach.
• ReNew Power has shown the way but it will need a joint government-industry initiative to acquire the scale needed to make an impact.

Conclusion

• The decision to invite President Abdel Fattah al Sisi of Egypt as the Chief Guest on Republic Day is an important gesture and should go a long way in imparting fresh momentum to India’s ties with the largest country in the Arab world.
• India’s decision to elevate bilateral ties to the strategic level is rooted in a recognition of the enduring salience of Egypt as a pivotal state sitting at the crossroads of the Middle East, Africa and Europe, with the capacity to influence political outcomes on multiple fronts.

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Context

• Recently, 53^rd edition of annual summit of World Economic Forum (WEF) was held in Davos, Switzerland.
• This edition of the Burning Issue will talk about the major outcomes of the summit.

About the Annual Davos Summit

• The theme this year was ‘Cooperation in a Fragmented World’.
• Davos attracts global business executives and policymakers. Usually attending will be the sitting U.S. president, top EU and UN leaders, business leaders and entrepreneurs, academics, heads of NGOs and charities, the media, activists and even some celebrities.
• The conference includes hundreds of discussions, keynote speeches and panels, and all-important networking sessions, usually behind closed doors in five-star hotels.
• CEOs and investors seize the opportunity for face-to-face deal-makings.

About WEF

• Headquartered in Geneva, Switzerland, WEF is an international not-for-profit organization, focused on bringing the public and private sectors together to address the global political, social, and economic issues.
• It was founded in 1971 by Swiss-German economist and Professor Klaus Schwab in a bid to promote the global cooperation on these most pressing problems.
• The first meeting of WEF was held more than five decades ago in Davos, which has been the home of the annual gathering almost ever since, also becoming the shorthand for the event.

Klaus Schwab and his concept of “Stakeholder Capitalism”

• Klaus Schwab has pioneered the concept of “Stakeholder Capitalism.” According to Schwab, “it is a form of capitalism in which companies do not only optimize short-term profits for shareholders, but seek long term value creation, by taking into account the needs of all their stakeholders, and society at large.”
• In his various books and papers on the topic, he says this form of economic organisation keeps society and the planet front and centre, moving beyond the narrow interests of a corporation.

Key outcomes of the summit

• On the economy: Most business leaders were upbeat about the economy, with US and the European Union (EU) seemingly beyond the risk of a recession now. China ending its zero Covid curbs and opening shop again added to the positive outlook. However, central banks of the major economies cautioned that concerns still remained, and said they would keep interest rates high to ensure inflation is under check.
• On Ukraine: Ukraine kept up its demand for more military aid to fight its war against Russia, and more financial aid to rebuild after the war, saying the reconstruction fund commitments should start coming in now and not after the war ends. Odile Françoise Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD), said “The more we do now, the less we will have to do in reconstruction,”
• On Climate: Everyone agreed upon the need for green energy and the need for more money to flight climate change. According to the WEF’s website, “The World Economic Forum, supported by more than 45 partners launched the Giving to Amplify Earth Action (GAEA), a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050.”
• On emerging technologies: Davos juxtaposed the industry’s potential and peril. Just as Microsoft Corp’s CEO and other Silicon Valley executives touted artificial intelligence such as ChatGPT to transform their businesses, they announced layoffs of tens of thousands of employees globally. Scrutiny of once high-flying cloud spending by businesses was at the forefront.
• Financial services: Global financial institutions are grappling with how to right-size for a slowdown, while dealing with a host of other headwinds. With the threat of inflation still hanging over central banks, financiers are facing demands from regulators for higher capital levels to prepare for a downturn, making some businesses unprofitable.

India specific outcomes

• 36 years of the Forum’s collaboration with India: A high-level delegation from the Indian side coupled with senior State Government representation will be present at WEF 2023 to strengthen India’s position as an important stakeholder shaping the global narrative. This year also marks 36 years of the Forum’s collaboration with India.
• Support in multiple fields: Over the course of 5 days, Invest India organized several roundtables, panel discussions and fireside chats to deliberate on policy action and investment support in renewable energy, sustainability, infrastructure, healthcare and medical devices, startups, trade and logistics, technology, institutional investments, and so on.
• Promoting India as an investment destination: In celebration of India’s ‘Azadi ka Amrit Mahotsav’, 75 years of Independence and the assumption of our G20 Presidency, DPIIT strengthened India’s presence at this year’s WEF in Davos for all global investors looking to make a home in India, one of the world’s most liberal investment destinations. The objective is to showcase a consolidated India presence with the Centre & States while projecting India as a strong, resilient economy, acting as a problem solver at the global stage.
• India@100 report launched: A report titled, ‘India@100: Realising the potential of a USD 26 trillion economy’, was launched during the summit. The report stated that India’s economy will reach USD 26 trillion by 2047, the 100th year of the country’s independence.
• India to remain resilient amid global slowdown: The end of the summit saw India emerging as a key pillar in the world order with WEF Founder and Executive Chairman Klaus Schwab describing the country as a bright spot in a fragile world. On Day 2 of the meeting, conversations revealed that India is expected to remain resilient despite the global slowdown impacting the emerging markets.
• India’s high visibility: India seemed to be the most visible among its regional Asian peers, with major tech companies staging booths in Davos. Indian business leaders were seen at the forefront of debates over technology and supply chain issues.
• Projects launched: The Press Trust of India (PTI) reported that more than 50 “high-impact initiatives” was launched at the event. Maharashtra Institution for Transformation (MITRA) signed a partnership with the forum on urban transformation to give the state government “strategic and technical direction”, PTI reported, while a thematic centre on healthcare and life sciences is to be set up in Telangana. The Coalition for Epidemic Preparedness and Innovations (CEPI) aims to develop new vaccines for future pandemics.

Conclusion

• Remaining true to the World Economic Forum’s spirit of multi stakeholder cooperation, the annual 2023 meet brings together top decision-makers from government, business, and civil society to address major global issues and priorities for the year ahead.
• The jarring spectacle of the Davos event – where the uber-rich and powerful fly in on private jets to talk about poverty alleviation and climate action – came in for criticism yet again. However, others pointed out that despite its flaws, the conference is an opportunity for many decision-makers to meet and interact with each other.
• As the Economist editor-in-chief Zanny Minton Beddoes put it, while the talks at Davos can be described as “highly-caffeinated speed dating”, more conversation and communication is better than less contact and less communication.

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Context

ChatGPT, which was only released a few months ago, is gaining popularity online as users marvel at its incredible powers. The latest artificial intelligence tool is creating a buzz among computer scientists and programmers due to its creative capabilities.

In this context, this edition of the burning issue will elaborate on this latest buzz in the technology sector- ChatGPT

What is ChatGPT?

• About ChatGPT: ChatGPT (Generative Pre-trained Transformer) is a chatbot launched by OpenAI in November 2022. It is built on top of OpenAI’s GPT-3 family of large language models and is fine-tuned with both supervised and reinforcement learning techniques.
• OpenAI: ChatGPT has been developed by OpenAI, which is a research institute and company that focuses on developing artificial intelligence technology responsibly and safely. It was founded in 2015 by a group of entrepreneurs and researchers, including Elon Musk, Sam Altman, and Greg Brockman.
• A human-like language model: ChatGPT is built on a large-scale transformer-based language model that is trained on a diverse dataset of text and is capable of generating human-like responses to prompts. It is based on GPT-3.5, a language model that uses deep learning to produce human-like text.
• It is more engaging with details: However, while the older GPT-3 model only took text prompts and tried to continue on that with its own generated text, ChatGPT is more engaging. It’s much better at generating detailed text and can even come up with poems.
• Keeps the memory of the conversations: Another unique characteristic is memory. The bot can remember earlier comments in a conversation and recount them to the user.
• Human-like resemblance: A conversation with ChatGPT is like talking to a computer, a smart one, which appears to have some semblance of human-like intelligence.

The evolution of ChatGPT

• Generative Pre-Training (GPT) language model: ChatGPT follows a generation of language models that were released by OpenAI in 2018. In 2018, OpenAI released the Generative Pre-Training (GPT) language model. Here, generative means that it is a type of neural network that can create new content based on input content called Training Data. This technology makes it suitable for creative tasks like writing a new story.
• Transformer technique: With the transformer technique mentioned above, GPT was improved and “Generative Pre-trained Transformer 2” or GPT-2 was released in 2019. GPT-3 with even more sophisticated neural networks was launched in 2020.
• GPT3.5: In early 2022, GPT3.5 was released and ChatGPT is a successor to GPT3.5. Each successive generation is more advanced than its predecessor. For example, GPT-3 was trained with 175 billion parameters. These large language models have looked at almost all text available on the internet and many other text documents, thereby making them highly informed. Finally, ChatGPT was launched in November 2022.

About Chatbots and AI

What is a ChatBot?

• A chatbot (coined from the term “chat robot”) is a computer program that simulates human conversation either by voice or text communication, and is designed to help solve a problem.
• Organizations use chatbots to engage with customers alongside classic customer service channels like phone, email, and social media.

What is Artificial intelligence?

• AI is a constellation of technologies that enable machines to act with higher levels of intelligence and emulate the human capabilities of sense, comprehend and act. Thus, computer vision and audio processing can actively perceive the world around them by acquiring and processing images, sound and speech.
• Natural language processing and inference engines can enable AI systems to analyze and understand the information collected.
• An AI system can also take action through technologies such as expert systems and inference engines or undertake actions in the physical world.
• These human-like capabilities are augmented by the ability to learn from experience and keep adapting over time.

Working of ChatGPT

• ChatGPT is what is called a Language Model, rather than a chatbot. A language model is a software that prints out a sequence of words as output that are related to some words given as input with appropriate semantic relation;
• in practical terms, it means that it can perform tasks like answering questions and carrying on a conversation with humans. It is often used in natural language processing (NLP) applications, such as speech recognition, automatic translation, and text generation.
• It is also a neural network. A neural network can be thought of as a large network of computers that can fine-tune its output of words based on the feedback given to it during stages of training: this training process and the technology together are called Reinforcement Learning.
• With a further refining technique called “Transformer”, a neural network can accurately “understand” the context of a sentence or a paragraph. This “comprehension” can be used for multiple purposes like answering a question, summarising a paragraph or an article, translating documents and so on.

Applications of ChatGPT

• A virtual study mate: ChatGPT could be used to generate practice questions or prompts for students to use when studying or preparing for exams. Input a prompt into ChatGPT that relates to the topic you are studying. For example, you might write ‘generate practice questions from Indian Polity on fundamental rights’. ChatGPT will then generate a series of practice questions that could range from multiple choice, true/false, or short answers.
• A writing assistant: ChatGPT can be used to generate text in a variety of styles and formats, such as stories, news articles, poems, and more. This could be useful for creative writing, or for generating content for websites and social media.
• A human-like search engine: One of the most used applications of ChatGPT is to answer specific questions and get answers in human talking style-dialogue format. It can also simplify complex theories. Microsoft is planning to integrate OpenAI’s ChatGPT chatbot into its Bing search engine in order to take advantage of its ability to respond to a wide range of questions while mimicking human conversation styles.
• For language translation: ChatGPT could be used to automatically translate text from one language to another, making it easier for people to communicate with each other across language barriers.

• A customizable chatbot: You could use the ChatGPT model to create a chatbot that can answer questions or have a conversation with a user. ChatGPT could answer customer questions or provide assistance in online chatbots or virtual assistants, allowing businesses to provide 24/7 support to their customers. It is trainable with specific data to create a virtual customer service bot that can converse and respond to queries.

Advantages

• Available for customers 24/7: ChatGPT could answer customer questions at any hour, day or night. Now, the customer can ask a query to the chatbot and get an instant reply or get sent to the page with the right product. 
• Offers Better personalization: Personalization is important for customers. In fact, about 44% of buyers become repeat customers after receiving a personalized experience. It pays off to customize your messages to clients and provide more personalized customer service. 
• Faster response time: About 96% of shoppers expect a response within five minutes. And chatbots like ChatGPT can provide instant responses to help customers with simple questions right there and then. This helps to decrease the waiting time for customer support to a couple of seconds. 
• Increase sales: Chatbots can bring more sales for businesses. Bots turn first-time website visitors into new customers by showing off your new products and offering discounts to tempt potential clients.
• Save costs: Cost saving is another essential benefit. It can automate day-to-day tasks that include everything from answering FAQs to booking appointments. This allows the customer support team to concentrate on more complex queries. 

Concerns and Limitations

• Implications for cybersecurity: Check Point Research and others noted that ChatGPT was capable of writing phishing emails and malware, especially when combined with OpenAI Codex.
• May involve in unethical use: ChatGPT attempts to reject prompts that may violate its content policy. However, some users managed to jailbreak ChatGPT by using various prompt engineering techniques to bypass these restrictions in early December 2022 and successfully tricked ChatGPT into giving instructions for how to create a Molotov cocktail or a nuclear bomb, or into generating arguments in the style of a Neo-Nazi.
• ChatGPT is not entirely accurate: It is not entirely accurate, something even OpenAI has admitted. It is also evident that some of the essays written by ChatGPT lack the depth that a real human expert might showcase when writing on the same subject.
• ChatGPT lacks depth like the human mind: It doesn’t quite have the nuance that a human would often be able to provide. For example, when asked ChatGPT how one should cope with a cancer diagnosis. The responses were kind but generic. The type of responses you would find in any general self-help guide.
• It lacks the same experiences as humans: AI has a long way to go. After all, it doesn’t have the same experiences as a human.
• ChatGPT does not excel in code: ChatGPT is writing basic code. As several reports have shown, ChatGPT doesn’t quite excel at this yet. But a future where basic code is written using AI doesn’t seem so incredible right now.
• ChatGPT is still prone to Misinformation: Despite of abilities of the bot, there are some limitations. ChatGPT is still prone to misinformation and biases, which is something that plagued previous versions of GPT as well. The model can give incorrect answers to, say, algebraic problems.
• ChatGPT can write incorrect answers: OpenAI understands some flaws and has noted them down on its announcement blog that “ChatGPT sometimes writes plausible-sounding but the incorrect or nonsensical answer

Conclusion

• OpenAI’s ChatGPT turned that simple experience into something entirely different. ChatGPT is a path-breaking example of an AI chatbot and what the technology could achieve when applied at scale.
• Limitations aside, ChatGPT still makes for a fun little bot to interact with. However, there are some challenges that need to be addressed before it becomes an unavoidable part of human life.

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Context

• Considered as holy, the town of Joshimath in the Chamoli district, located at an altitude of 6,150 feet, is sinking rapidly due to human-induced causes.
• In this context, this edition of the burning issue will elaborate on the Joshimath crisis.

About Joshimath

• A tourist spot: At a height of 6,107 feet, Joshimath is a busy town in the Chamoli district of Uttarakhand. Despite a population of only about 23,000, it has been heavily built on, with hotels, resorts, and a bustling market that caters mainly to tourists, pilgrims, trekkers and personnel of the Army and the Indo-Tibetan Border Police (ITBP).
• Linked to Adi Shankaracharya: Joshimath was established by Adi Shankaracharya in North India. The math has temples of Badrinarayan and Rajrajeshwari Devi. It has a sacred cave where Adi Shankaracharya supposedly undertook tapasya.
• Strategic significance: After the 1962 India-China war, Joshimath emerged as a place of strategic importance as it leads to villages along the India-China border. It is also en route to Barahoti, a disputed territory along the border.
• Pilgrimage site: The town is also a gateway to noted sites of pilgrimage — Badrinath for Hindus and Hemkund Sahib for Sikhs; the international skiing site of Auli; and the Valley of Flowers, a UNESCO World Heritage site.

What is happening in Joshimath?

• Cracks first appeared in a few houses in Uttarakhand’s Joshimath town in October 2021. Over a year later, by January 11, 2023, 723 houses in all of the nine wards in the town had developed major or minor cracks on the floors, ceilings and walls. In response, 145 families have been temporarily moved to safer locations within the town.
• Subsequently, cracks continued to appear around town and residents resorted to repairs. The situation became particularly alarming towards the end of 2022 and the beginning of 2023 when large parts of the town experienced sudden land sinking and several houses developed major cracks.

What is land subsidence?

• Land subsidence is when the ground sinks or settles. It can happen because people are taking too much water or minerals from the ground, which causes the ground to sink.
• It can also be caused by natural processes, like soil compaction or the movement of the earth’s crust. Land subsidence can cause problems like damage to buildings and roads, and can make it more likely for flooding to occur.

Reason for land subsidence in Joshimath

• Situated on Joshimath an old landslide: Joshimath is built on the deposits of an old landslide, which means that the slopes can be destabilized even by slight triggers.
• Lies in seismic zone V: The town is also in Zone V, which, as per India’s seismic zonation scheme, denotes the highest risk. It lies between two thrusts, the Main Central Thrust (MCT) and the Vaikrita Thrust (VT), and thus occupies a seismically active terrain.
• Construction of subsurface structures: The Government proposes to build 66 tunnels in the Uttarakhand Himalaya and 18 tunnels are already in operation. Building these subsurface structures could result in gross damage to the environment, including the concentration of pollutants from traffic exhaust compounded by a microenvironment with no sunlight and limited dispersion in such long-distance tunnels. 
• Large-scale construction projects in the vicinity: The construction of highways and railway tracks has now become a prime cause for landslides and their occurrences have doubled over the years. The increased anthropogenic activities such as road construction have made the hill slopes extremely unstable. That is why the recurring landslides have gone up in numbers in the Himalayas.

• Descending groundwater levels: Irreversible impact on groundwater like descending water levels have been observed in the areas of tunnel construction. Erratic rainfall and ecological degradation associated with land use change for infrastructural development are already impacting mountain aquifer systems. Groundwater use in the Himalayan States differs from that in the plains, as large and contiguous aquifers do not exist in the hills.
• NTPC’s Tapovan-Vishnugad hydro project: It has been recorded that the NTPC’s Tapovan-Vishnugad hydro project tunnel which passes just below Joshimath, could be a contributing factor to this phenomenon. During the construction of the tunnel, a boring machine perforated a water-bearing stratum on the left bank of the Alaknanda river near Shelong village, leading to a discharge of 60-70 million litres per day. This must have led to the gradual depletion of pore pressure within the sediment leading to aquifer compaction and settling of the ground.
• Unsustainable tourism: The Himalayan terrain demands sustainable tourism, not mass tourism. The daily average footfall last year along the Char Dham route was reported to be around 58,000. There is the unregulated rise in tourism that has led to a construction boom in unsafe zones such as river valleys, floodplains and slopes vulnerable to landslides.
• Lack of drainage and wastewater disposal systems: The 2022 USDMA report also pointed to a lack of drainage and wastewater disposal systems as being part of the subsidence problem. According to Mr. Sati, about 85% of buildings in the town — including those owned by the Army — aren’t connected to a sewerage system and have soak pits instead.

About the Mishra Committee report on Joshimath

• Land subsidence was noticed in the area decades ago. The then Uttar Pradesh government (Uttarakhand was then a part of Uttar Pradesh) formed a committee led by M.C. Mishra to study its causes.
• The committee’s report of 1976 warned against heavy and unscientific construction in the town, further reporting that Joshimath is a deposit of sand and stone and hence was not a suitable place for the coming up of a township. Vibrations produced by blasting and heavy traffic will also lead to disequilibrium in natural factors.
• However, Joshimath continued to develop exactly the way the Mishra committee had advised against.

Other major Disasters in the Himalayas

• Chamoli disaster due to avalanche in June 2021: Large mass of snow, ice and rock avalanche along with a hanging mass of rock crashed into the Raunthi Garh valley floor thus killing 78 people.
• Kedarnath floods, 2013: In the early hours of June 17, 2013 a flash flood came down upon the overflowing banks of the Chorabari lake in Uttarakhand. Carrying huge amounts of silt and rocks, it destroyed lives, houses and everything else that came it’s way. According to figures provided by the Government of Uttarakhand, more than 5,700 people were “presumed dead.” This total included 934 residents. The death toll was later placed at 6,054. Most of the dead were pilgrims.

Why frequent Landslides in the Himalayas?

• Heavy snowfall in winter and melting in summer. This induces debris flow, which is carried in large quantities by numerous streams and rivers.
• Himalayas are made of sedimentary rocks which can easily be eroded. These aides landslides.
• Drifting of the Indian plate causes frequent earthquakes and resultant instability in the region.
• Man-made activities like grazing, construction and cultivation abet soil erosion and risks of landslides.
• The Himalayas have not yet reached their isostatic equilibrium which destabilizes the slopes. It leads to landslides.
• Diurnal temperature changes are much more in northern India than in southern slopes. This weakens the rocks and aids mass wasting.

The larger picture in the crisis: Development vs Environment debate

• Traditionally, economic growth and development are seen as the primary goal of governments across the globe, devoted to the idyllic objective of upgrading their citizens’ living standards. However, economic growth cannot be discussed in a fair view without considering the environmental contribution to such aspirations.

• The interlinkages between the environment and economy are manifold; the environment lends its natural resources as inputs for the production of goods and services, and also acts as a sink of waste and emissions generated through such economic activities.
• Even with the increased environmental awareness in developing nations, the notion of promoting economic development at the cost of the environment is a well-accepted phenomenon. Most individuals, firms, and governments of developing countries have already surrendered to environmental degradation as a consequence of pursuing profits/income.
• In Joshimath’s case too, environmentalists are pointing towards the environmental damage that is being done in the name of development under the Char dham project, over-tourism and the multiple hydropower projects that are under construction in the Himalayan region or are in pipeline.

What is needed? The Way forward

• Finding an alternative source of energy generation: The National Disaster Management Authority (NDMA) report on the Chamoli disaster in April 2022 clearly states that “in the long term, it will be necessary to focus on finding alternative sources of energy, as the area appears to be environmentally sensitive”.
• Sustainable and regional development strategy: A development strategy for the Himalayas should not come at the cost of the environment. It should be primarily based on the region’s natural resources such as forest, water, biodiversity and ecotourism.
• Better construct small hydel projects: Rather than building massive dams, the focus should be on small projects that would help provide a local energy supply.
• Making Use of traditional knowledge: An appropriate strategy for human well-being should use traditional knowledge, agricultural practices, construction practices and local cultural aspects.
• Ensuring the safety of people: This should be an immediate priority. The state government should establish a clear and continuous communication channel with the affected people.
• Continuous seismic monitoring: of the region must be done using satellite technology and ground-level scientific studies.
• A risk-sensitive urban development plan: for Joshimath should also be developed in addition to a relief, rehabilitation and compensation policy.

What 1976 Mishra Committee Report had suggested-

• Imposition of restrictions on heavy construction: Construction should only be allowed after examining the load-bearing capacity of the soil and the stability of the site, and restrictions should also be imposed on the excavation of slopes.
• Keeping the boulders: In the landslide areas, stones and boulders should not be removed from the bottom of the hill as it would remove toe support, increasing the possibility of landslides.
• Sealing of cracks: Cracks that have developed on the slopes should be sealed. The toe of a landslide is its bottom-most point.
• Conserving of trees: It has also advised against cutting trees in the landslide zone and said that extensive plantation work should be undertaken in the area, particularly between Marwari and Joshimath, to conserve soil and water resources.
• Agriculture on the slopes must be avoided: Activities like plowing loosens the soil thereby triggering the scope for landslides.
• Preventing water seepage: To prevent any more landslides in the future, the seepage of open rainwater must be stopped by the construction of a pucca drainage system.
• Cobbled roads: Roads should be metalled and without scuppers, that drain away the water from the road surface.
• River training: The construction of structures to guide the river’s flow should be carried out. Hanging boulders on the foothills should be provided with appropriate support.

Conclusion

• The Joshimath episode is a warning that the Himalayan environment is at a tipping point and it may not be able to withstand another push generated by intrusive anthropogenic activities in the form of massive construction projects of townships, highways, tunnels, railway tracks and dams — an ecosystem already grappling with the consequences of global warming. And, in this process, the devotees must be at the forefront to save the “Abode of the Gods”.

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Context

• The three-day National Conference of State Tourism Minister was held at Dharamshala last year, a first-of-its-kind meeting aimed to discuss, debate and deliberate on modes and mechanisms to develop tourism in India.
• The three-day National Conference concluded with the adoption of the “Dharamshala Declaration” which affirms commitment toward developing “sustainable and responsible tourism” and positions India as a “global leader in the tourism sector by 2047”.
• In this context, this edition of Burning issue will elaborate on the tourism sector of India.

What is tourism?

• Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.

Types of tourism

• Domestic tourism: Refers to activities of a visitor within their country of residence and outside of their home (e.g. Indian visiting other parts of India)
• Inbound tourism: Refers to the activities of a visitor from outside of the country of residence (e.g. a Spaniard visiting Britain).
• Outbound tourism: Refers to the activities of a resident visitor outside of their country of residence (e.g. an Indian visiting an overseas country).

What is the importance of tourism?

• Boosts economies: Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.
• Satisfy human exploration urge: Tourism is a compulsion driven by the urge to discover new places. Because we have this compulsion to venture into the unknown, we need each other. When humans travel, meet and exchange ideas, civilization flourishes.
• A major economic sector: the business volume of tourism equals or even surpasses that of oil exports, ‎food products or automobiles. Tourism has become one of the major players in ‎international commerce and represents at the same time one of the main income ‎sources for many developing countries.

Global tourism industry

• The Travel and Tourism (T&T) industry directly contributes about 3.6% of the world’s Gross Domestic Product (GDP) and, indirectly contributes about 10.3% to it.
• As one of the biggest contributors to the global GDP, this industry directly employs nearly 77 million people worldwide, which comprises about 3% of the world’s total employment.
• The industry also represents about 12% of the total world exports.
• Continuing world prosperity, growing recognition of tourism’s contribution to employment and economic growth, availability of better infrastructure, focused marketing and promotion efforts, liberalization of air transport, growing intraregional cooperation, and a growing number of Public-Private-Partnerships (PPPs) are seen as the key drivers for tourism in the next decade.

Indian tourism industry

• The travel and tourism industry contributed a total of $124.8 billion to the GDP in India in 2015 — this accounted for approximately 10% of India’s total GDP in 2020.
• A 2014 study found that India was one of the fastest-growing tourism destinations worldwide. Placed eleventh on the list, the direct contribution of travel and tourism to GDP in India was expected to grow an average of 6.4% annually between 2014 and 2024.
• The sector is expected to grow at an annual average growth rate of 7.9% till 2023, making India the third fastest-growing tourism destination over the next decade.
• Tourism in India provides 40 million jobs. The industry provided more than 23.5 million jobs in 2015. Over 7.7% of Indian employees work in the tourism industry.
• The largest source market for visitors to India was the US, followed by Bangladesh and the UK. Outbound travel from India is also forecasted to reach 1.41 million in 2020.
• According to an official release of PIB, Foreign tourist arrivals (FTAs) in March 2022 were 3,42,308 with a positive growth rate of 117.9% as compared to 1,23,179 in march 2021, indicating the post-pandemic revival of the tourism sector.
• The World Economic Forum’s Travel and Tourism Development Index 2021, ranks India 54th out of 117 countries overall.

Prospects of Indian Tourism

• High diversity: India has a gift with the most prominent diversity in culture. In Addition, geography and art pull in a colossal measure of voyagers to the nation. Different new forms of tourism are offering in recent years are also helping to build up the country’s tourism industry.
• Multiple tourism types available: Medical tourism, eco-tourism, adventure tourism, and cruise tourism have gained tremendous popularity and attention among foreigners. Now and have the potential for high growth shortly. The Himalayas are the greatest assets of India in adventure tourism.
• Huge domestic tourist market: Many people from all over the country are attracted to India because of its scenic beauty which spreads from Kashmir in the North to Kanyakumari in the South and Arunachal Pradesh in the East to Gujrat in the West, and multiculturalism. 
• New tourism sectors opening: In India, the tourism industry is diversifying away from traditional sightseeing tours oriented (primarily places of cultural tourism interest) to a more rapidly expanding market based on the country’s atmosphere and environment, emphasizing the aesthetic, environmental, and socio-cultural implications of projects.

What is the Importance of Tourism in India?  

• Economic progress: The tourism industry aids and supports foreign exchange reserves. It helps our country in generating foreign exchange. Every year a large number of tourists visit India and other places. Places they go to; Stay and shop in our country.  All this contributes to a significant amount of foreign exchange. Despite the global recession, Indian tourism grew by 9% in 2015 to $42 billion.
• Source of Income: Tourism is a continuous source of income for public and private income. It led to employment, especially in the hotel industry, hospitality industry, service sector, entertainment, and transportation industry. Even a seller of local commodities like artefacts, handicraft items etc. earns due to tourism.
• Development of Infrastructure: Have you ever noticed how the look and feel of a place change when it is declared a tourist destination? Indeed, tourism aids and encourages infrastructure development by making way for dams, roads, connectivity, airport improvements, and any other activity that helps a tourist visit a place in a better way. The best example can be the development of Kevadia town in Gujarat due to the statue of unity.
• Social Progress: Tourism is an excellent way for cultural exchange. It also encourages social progress as tourists learn to show respect, tolerance, and love for each other when visiting new places.
• Cultural Heritage: Tourism helps to articulate the beauty, art, history, and culture of our country. Different people who come to any country take beautiful cultural concepts with them and spread those concepts to other people by going to other places.
• Puts India on the map globally: In terms of variety, India has a lot to offer global travelers. With the country’s landscape spreading across six major climatic subtypes, tourists can take their pick from among the snow-clad mountains in the north, the vast expanses of coastlines in the south, the arid deserts in the western regions, and the rich ecosystems in the east. Developing this sector of the economy can thus put India on the map globally since the country has a lot to offer.

Challenges of the Indian tourism sector

• Lack of Proper infrastructure: An established framework of the foundation includes lots of elements. Proper transportation facilities, health facilities, and stability. Also, uninterrupted connectivity and other human resources are mandatory for enduring tourism.
• Inaccessibility: There are many tourist destinations in the country, which are not accessible to the poor, women and elderly because of the high cost of transportation, poor connectivity with cities, and tourist-friendly infrastructure. Around 2% of the tourist cannot access many of the tourist spots in the country.
• Human Resources & Planning: Highly skilful and potential men or women hold an inevitable part of the tourism sector. So currently, there is a lack of workforce in both the hospitality and tourism sectors.

• Insufficient Digital Promotion and Marketing: Grand promotion and suitable digital marketing push are excessively indispensable for a nation’s travel industry improvement. The Digital marketing of the Indian Tourism industry is not to the point yet.
• Taxation issues with Indian Tourism: there are high taxes on the entire production for the airline facilities, hotels, and tour operators. Those are highly expensive. That is the most significant reason for losses to other less expensive countries when it comes to tourism.
• Security issues: Security is one of the Major Challenges of Indian Tourism. There is an increasing rate of Sexual Abuse of women, Theft, and Credit Card Fraud with foreign tourists. Also, Public Violence is affecting Indian Tourism to a high intent.

What needs to be done? Way forward

• National Tourism Authority: A separate National Tourism Authority (NTA) should be established for executing and operationalizing various tourism-related initiatives. Simple, flexible and elegant processes will be laid down to allow for nimbleness.
• National Tourism Advisory Board: A National Tourism Advisory Board (NTAB) should be set up to provide overall vision, guidance and direction to the Development of the Tourism Sector in the country.
• Creating Synergy in Tourism Eco System: In order to ensure synergy at various levels of Government and with the Private Sector, it is important to have a well-defined framework in place.
• Quality Tourism Framework: A robust framework for quality certification of products and services across all segments like accommodation providers, tour operators, adventure tour operators, and service providers like spa and wellness, guides, restaurants etc. should be laid down.
• Enhancing the existing luxury tourism products: The existing tourism products such as Nilgiri Mountain Railway, Palace on Wheels etc. should be enhanced and their numbers will also be increased. Haulage charges will be rationalized to make luxury trains viable.
• Railways can be a game changer: For tourism, Railways have a presence in most parts of the country. Most of the tourist destinations in the country are connected by rail. Indian Railways is working towards promoting tourism in the country by operating more trains connecting tourists’ destinations and also by providing an array of products starting from luxury tourist trains to budget catering tourist trains
• Prioritize the most popular tourist destinations: Instead of spreading limited resources over a significant number of circuits or centres, develop selected tourist circuits and centres that are popular among tourists.

Steps taken by Government in this regard

• Swadesh Darshan Scheme The Swadesh Darshan scheme, a flagship programme, was launched by the Ministry of Tourism in 2014–15. The scheme aims to encourage theme-based tourism to promote, develop, and capitalise on India’s tourist potential. The ministry developed tourism-related infrastructure at more than 500 tourist destinations. In April 2022, the ministry sanctioned 10 new projects under the heritage circuit theme.
• National Integrated Database of Hospitality Industry (NIDHI): NIDHI is an initiative towards Aatma nirbhar Bharat to use technology to empower businesses. This programme aims to understand the hospitality sector’s geographical spread, size, structure and capacity. As of 27 August 2022, a total of 45,152 accommodations were registered under this portal.
• E-tourist Visa: The Indian Government launched this initiative in October 2014. This programme aims to simplify the process of obtaining a tourist visa for foreign nationals. This initiative has helped promote tourism in the country. In 2019, the government granted 2.36 million e-tourist visas.
• Advertising Campaigns: The Indian Government has promoted tourism and showcased the country’s rich cultural heritage to the world through its ‘Incredible India’ campaign. The campaign aims to promote tourism in India on an international scale. In recent months, the government has taken various initiatives to promote tourism. For instance, it launched the Italy edition of Incredible India Reconnect 2022, a virtual roadshow, to encourage international tourists to visit India.
• Organising International Buddhist Conclave: once in 2 years to showcase the Buddhist Heritage and International Tourism Mart for showcasing the tourism potential of North East held every year.
• The National Mission for Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) scheme, was also launched by the Ministry for the development and beautification of pilgrimage sites to tap the growth of domestic tourists driven by spiritual/religious sentiments. The scheme seeks to augment tourism infrastructure at places of pilgrimage to provide better facilities to pilgrims/tourists and enhance their experience.
• Multilingual Tourist Helpline: The Ministry of Tourism launched the 24×7 Toll-Free Multi-Lingual Tourist Helpline in 12 languages on February 8, 2016.
• Adarsh Smarak: ASI has identified 100 monuments to be developed as Model Monuments. These monuments would be provided with necessary tourist facilities including Wi-Fi, security, signage, encroachment-free area, and interpretation centres showing short films about the importance of monuments and signboards of Swachh Bharat Abhiyan.
• The Dharamshala Declaration: aims to recognise India’s potential in supporting global tourism and also promote domestic tourism

• Tourist police scheme: The Bureau of Police Research and Development (BPRD) has brought out a booklet on the tourist police scheme detailing the mode of setting up of tourist police stations and control rooms, outposts, uniforms, recruitment, qualifications, training and logistics requirements for tourist police stations.

MICE tourism model of Gujarat

• The acronym “MICE” stands for “Meetings, Incentives, Conferences and Exhibitions”, and is essentially a version of business tourism that draws domestic and international tourists to a destination.
• The policy aims to make Gujarat one of the top five MICE tourism destinations in the country.

Conclusion

• If the goal of the positioning India as one of the world’s best tourism destinations by 2047, there is a need to integrate various schemes of different ministries. Need to involve various stakeholders, and local communities; necessary interventions at an urban and rural level should be a priority.

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Context

• For the first time, researchers from the Indian Institute of Science (IISc) in Bengaluru have been roped in to study the ecological and economical value of water bodies and coasts in Karnataka. This will be part of a Blue Economy study, a joint initiative taken up by the Central government and the World Bank.
• Also, in December 2022, India and Indonesia organized the 4th ASEAN-Indian Blue Economy Workshop.
• Both events underscore the idea of Blue Economy. Hence this edition of the Burning Issue will elaborate on the idea of blue economy from the perspective of both world and India.

What is Blue Economy?

• Blue Economy is defined by the World Bank as the “Sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ecosystem.”
• It essentially refers to the multitude of ocean resources available in the country that can be harnessed to aid the production of goods and services because of its linkages with economic growth, environmental sustainability, and national security.
• Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.

• The UN first introduced “blue economy” at a conference in 2012 and underlined sustainable management, based on the argument that marine ecosystems are more productive when they are healthy. In fact, the UN notes that the Blue Economy is exactly what is needed to implement SDG 14, Life Below Water.

Significance of Blue Economy

• Source of renewable energy: Maritime renewable energy sources, such as offshore wind, floating solar arrays and wave and tidal power, hold enormous promise to build energy independence and help countries meet their emissions reduction commitments under the Paris Climate Change Agreement. The report Offshore wind outlook 2019 by the International Energy Agency (IEA), offshore wind power has the potential to generate more than 18 times the global electricity demand today.
• New jobs and food security: Investing in sustainable fisheries and, in particular, aquaculture will create well-paid jobs and help promote food security and economic fairness, especially in developing countries.
• Tourism: Sustainable and regenerative tourism can form a critical building block in ensuring a lasting economic recovery for coastal nations in a way that supports the ocean and nature – and the countless people who depend on them.
• Maritime transport: One of the largest employers within ocean-related activities. Maritime transport plays a big role in the globalized market in the form of containerships, tankers, and ports, coastal tourism is the largest employer within ocean-related activities.
• Eighty percent of trade happens on the seas: Eighty per cent of world trade happens using the seas, 40 per cent of the world’s population lives near coastal areas, and more than three billion people access the oceans for their livelihood.

Current Status of Blue Economy in the world

• Adds value to the Global Economy: According to the OECD, oceans contribute $1.5 trillion annually in value-added to the overall economy and this number could reach $3 trillion by 2030.
• Livelihood and jobs: The FAO estimates that around 58.5 million people are employed worldwide in primary fish production alone – of which approximately 21 percent are women. It is estimated that about 600 million livelihoods depend at least partially on fisheries and aquaculture.  Most are in developing countries and are small-scale, artisanal fishers and fish farmers.
• Food production: In 2020, global production of aquatic animals was estimated at 178 tonnes – of which capture fisheries contributed 90 million tonnes. , with a “first sale” value estimated at US$406 – of which US$ 141 billion for capture fisheries and US$ 265 billion for aquaculture.
• Source of protein: In 2019 aquatic foods provided about 3.3 billion people with at least 20 percent of their average intake of animal protein, with an even higher proportion in many poor countries.
• Tourism: Over 350 million people annually travel to the coral reef coast of the world. The coral reef tourism sector has an estimated annual value of $36 billion. Coastal and marine tourism constitute approximately 50 per cent of all global tourism, equal to USD 4.6 trillion or 5.2 per cent of the global gross domestic product.
• Energy production: Offshore wind currently provides just 0.3% of global power generation, but its potential is vast.
• Promoting exports: A new UNCTAD report estimates the export value in ocean-based industries at $2.5 trillion, according to the latest available data, covering 2018.

Significance of Blue Economy for India

• India’s blue economy is a subset of the national economy comprising the entire ocean resources system and human-made economic infrastructure in marine, maritime, and onshore coastal zones within the country’s legal jurisdiction.
• Vast coastline: With some 7,500 kilometers, India has a unique maritime position. Nine of its 29 states are coastal, and its geography includes 1,382 islands.
• Large EEZ: Besides, India’s Exclusive Economic Zone of over 2 million square kilometers has a bounty of living and non-living resources with significant recoverable resources such as crude oil and natural gas.
• Supports coastal lives: The coastal economy sustains over 4 million fishermen and coastal towns. India is the second largest fish-producing nation in the world and has a fleet of 2,50,000 fishing boats.
• Growth of states: Nine of India’s states has access to the coastline. India comprises 200 ports of which 12 are major ports that handled 541.76 million tonnes in FY21, the highest being Mormugao Port, located in Goa, which handled 62.6% of the total traffic.
• Unhindered access to the Indian Ocean: The Indian Ocean’s Blue Economy has become a global economic corridor. It is the world’s third-largest body of water, covering 68.5 million square km and rich in oil and mineral resources, and countries around the ocean’s periphery are home to about one-third of humanity.
• Ocean mineral resources: Polymetallic nodules, which are golf-to-tennis-ball-sized nodules containing nickel, cobalt, iron, and manganese that grow over millions of years on the seafloor, are often discovered at 4-5 Kms in water depth. In 1987, India was granted exclusive rights to explore polymetallic nodules in the Central Indian Ocean Basin. It has explored four million square miles and established two mine locations since then.

Concerns regarding the blue economy

• Human-induced Oceanic pollution: Marine activities have brought in pollution, ocean warming, eutrophication, acidification and fishery collapse as consequences on the marine ecosystems.
• Oceans are rarely financial institutions: The ocean is uncharted territory, and rarely understood by financial institutions. Hence preparedness of these institutions in making available affordable long-term financing at scale is nearly zero.
• Developing nations pay a heavy price: In this journey of achieving blue economy goals, it is developing nations that pay a heavy economic price.
• Lack of capacity is a critical hindrance: Many developing nations have high levels of external debt. Lack of capacity and technology for transition between the Agri economy and marine economy is also a critical hindrance.
• Not having an elaborative guiding principle is a major concern: There is concern that without the elaboration of specific principles or guidance, national blue economies, or sustainable ocean economies, economic growth will be pursued with little attention paid to environmental sustainability and social equity.

What needs to be done?

• Decarbonize global shipping: If this industrial sector were a country, it would be the world’s eighth-largest in terms of carbon emissions. The good news is that emerging technologies can vastly reduce emissions from vessels and port facilities. The international community needs to set new standards to ensure best practices are implemented evenly around the world.
• Investing in sustainable fisheries: in particular, aquaculture will create well-paid jobs and help promote food security and economic fairness, especially in developing countries.
• Sustainable and regenerative tourism: can form a critical building block in ensuring a lasting economic recovery for coastal nations in a way that supports the ocean and nature – and the countless people who depend on them.
• Inclusive discussion and participation is a must: The blue economy is based on multiple fields within ocean science and, therefore, needs inter-sectoral experts and stakeholders. It is imperative to involve the civil society, fishing communities, indigenous people and communities for an inclusive discussion.
• SDG-14 journey cannot undermine the other SDGs: The UN stresses that equity must not be forgotten when supporting a blue economy. Land and resources often belong to communities, and the interests of communities dependent on the ocean are often marginalized since sectors such as coastal tourism are encouraged to boost the economy.
• Integrated marine spatial planning with national and global expertise is necessary: Developing the blue economy should be based on national and global expertise. It is important that any blue economy transformation should include using integrated marine spatial planning. This would provide collaborative participation of all stakeholders of the oceans, and would make room for debate, discussion and conflict resolution between the stakeholders.

Steps taken by Indian Government

• Draft National Policy for India’s Blue Economy: The Ministry of Earth Sciences released the draft of the National Policy for India’s Blue Economy 2021. The goal of the policy document is to increase the blue economy’s contribution to India’s GDP, improve the lives of coastal residents, protect marine biodiversity, and ensure the national security of maritime areas and resources. The proposed policy framework emphasizes policies in a number of critical areas, including fisheries to aim to achieve holistic growth. The four objectives of this blue economy policy are:
• Sustainable framework for a National Coastal Marine: An Expert Group would be formed to recommend changes to meet the national and local needs. The CMSP (Coastal and Marine Spatial Planning) would serve as the foundation for the future development of the Blue Economy in India’s Exclusive Economic zones, which includes the country’s islands, as well as developing ecotourism in island areas and expanding the number of Blue Flag beaches.
• Integration with National Coastal Mission and SDG-14: Blue Economy activities will be integrated with the National Coastal Mission, which is being proposed by the Ministry of Environment, Forests, and Climate Change. Blue Economy Policy will also include the execution of the Sustainable Development Goal (SDG-14).
• The National Blue Economy Council: There is a proposal for the initiation of an apex body, the National Blue Economy Council will enforce this and prevent compartmentalized work, wastage of effort and policy uncertainty by combining all current skills and programs into a single supervisory agency for comprehensive planning and implementation.
• The Blue Revolution: Integrated Development and Management of Fisheries Centrally Sponsored Scheme (CSS) was established in 2015-16 with a five-year budget of Rs. 3,000 crores (US$ 384.3 million).
• The ‘Fisheries and Aquaculture Infrastructure Development Fund (FIDF) was established in 2018-19 with a fund size of Rs. 7,522.48 crores (963.5 million) to provide concessional credit to state/UT governments, their entities, and the private sector to fill significant gaps in the fisheries infrastructure.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): was launched in 2020, with the highest investment of Rs. 20,050crore (US$ 2.5 billion) to bring about a Blue Revolution through sustainable and responsible development of the country’s fisheries sector.

Conclusion

• The Blue Economy is poised for significant growth in the next few years. Transitioning away from an agricultural industry towards a bluer economy will be demanding. This means that governments must work together to make blue economies sustainable, share research and know-how.
• In India, The sector is the sixth dimension of the government’s ‘Vision of New India by 2030’; with the Blue Economy policies aiming for long-term economic advantages in order to achieve the greater goals of growth, job creation, equity, and environmental protection.

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