THE CONTEXT: The Economic Survey rightly flagged the issue of a growing food subsidy bill, which, in the words of the government, “is becoming unmanageably large”. The reason is food subsidy, coupled with the drawal of food grains by States from the central pool under various schemes, has been on a perpetual growth trajectory. This article discusses about the issues related to increasing food subsidy, need to recast the system and possible solutions.

Public Distribution System

Basic information

• PDS evolved as a system of management of scarcity through distribution of foodgrains at affordable prices.
• The operational responsibilities including allocation within the State, identification of eligible families, issue of Ration Cards and supervision of the functioning of Fair Price Shops (FPSs) etc., rest with the State Governments.
• The Public distribution system (PDS) is an Indian food Security System established under the Ministry of Consumer Affairs, Food, and Public Distribution.
• PDS is operated under the joint responsibility of the Central and the State Governments:

1. The Central Government, through Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation and bulk allocation of food grains to the State Governments.
2. The operational responsibilities including allocation within the State, identification of eligible families, issue of Ration Cards and supervision of the functioning of Fair Price Shops (FPSs) etc., rest with the State Governments.

Evolution of the system

• Before 1960-PDS was introduced during the time of World War II. It was before the year 1960 that the distribution through PDS was dependent on imports of food grains.
• 1960s-The Public Distribution System was then expanded in the 1960sto handle food shortages and take care of distribution.
• The Food Corporation of India and the Commission of Agricultural Costs and Prices were also set up by the government of India to improve domestic procurement and storage of food grains.
• 1970s– It was during the 1970s when PDS evolved as a universal scheme for the distribution of food.
• 1992- The Revamped Public Distribution System (RPDS)was launched in 1992 with a view to strengthen and streamline the PDS as well as to improve its reach in the far-flung, hilly, remote and inaccessible areas.
• 1997- the Government of India launched the Targeted Public Distribution System (TPDS)with a focus on the poor.
• Beneficiaries under TPDS  Divided into 2 categories – Households Below Poverty Line and Households Above Poverty Line.
• 2000- Antyodaya Anna Yojana (AAY)launched in December, 2000 was a step in the direction of making TPDS aim at reducing hunger among the poorest segments of the BPL population.

Functions

• The centre procures food grains from farmers at a minimum support price (MSP) and sells it to states at central issue prices. It is responsible for transporting the grains to godowns in each state.
• States bear the responsibility of transporting food grains from these godowns to each fair price shop (ration shop), where the beneficiary buys the food grains at the lower central issue price.

Food Security and PDS System

• With a network of more than 400,000 Fair Price Shops (FPS), the Public Distribution System (PDS) in India is perhaps the largest distribution machinery of its type in the world.
• PDS is said to distribute each year commodities worth more than Rs15,000 crore to about 16 crore families.
• This huge network can play a more meaningful role if only the system is able to translate into micro level a macro level self-sufficiency by ensuring availability of food grains for the poor households.
• Food Security of beneficiaries is ensured by distributing food grains at subsidized prices through the Targeted Public Distribution System (TPDS).  It protects them from price volatility due to inflation.
• Over the years, while the spending on food subsidy has increased, the ratio of people below the poverty line has decreased.

The Issue

• During 2016-17 to 2019-20, the subsidy amount, clubbed with loans taken by the Food Corporation of India (FCI) under the National Small Savings Fund (NSSF) towards food subsidy, was in the range of ₹1.65-lakh crore to ₹2.2-lakh crore. In future, the annual subsidy bill of the Centre is expected to be about ₹2.5-lakh crore.
• As the National Food Security Act (NFSA), which came into force in July 2013, enhanced entitlements (covering two-thirds of the country’s population), this naturally pushed up the States’ drawal (Based on an improved version of the targeted Public Distribution System (PDS), the law requires the authorities to provide to each beneficiary 5 kg of rice or wheat per month.)

• For this financial year (2020-21) which is an extraordinary year on account of the COVID-19 pandemic, the revised estimate of the subsidy has been put at about ₹4.23-lakh crore, excluding the extra budgetary resource allocation of ₹84,636 crore.

Other Challenges Related to the Food Subsidy

• While MSP is declared for 23 crops, the biggest financial burden comes from wheat and rice.
• Overall procurement of rice and wheat has gone up to 52 million tonnes and 39 million tonnes, respectively. The requirement of PDS and welfare schemes is about 60 million tonnes.
• This leaves a surplus of about 30 million tonnes, in addition to the carry-over stock of about 42 million tonnes (current)—far above the buffer and strategic reserve norms.
• The cost of holding this stock works out to Rs 29,000 crore per year.

Will increasing CIP revamp the system?

Food grains via ration shops are supplied at highly subsidised rates of ₹3 per kg for rice, ₹2 per kg for wheat and ₹1 per kg for coarse grains through Public Distribution System (PDS) as per the National Food Security Act (NFSA).

• The Economic Survey has hinted at an increase in the Central Issue Price (CIP),which has remained at ₹2 per kg for wheat and ₹3 per kg for rice for years, though the NFSA, even in 2013, envisaged a price revision after three years.
• One should ponder over the advisability of keeping so low the retail prices of food grains at fair price shops, even after the passage of nearly 50 years and achieving substantial poverty reduction in the country. As per the Rangarajan group’s estimate in 2014, the share of people living below the poverty line (BPL) in the 2011 population was 29.5% (about 36 crore).
• The Centre, by stating through the Survey that it is difficult to reduce “the economic cost of food management in view of rising commitment” towards food security, does not want the NFSA norms to be disturbed.
• Political compulsions are perceived to be coming in the way of the Centre and the States increasing the prices.

Possible Solutions

Decreasing the quantum of coverage

• It is time the Centre had a relook at the overall food subsidy system including the pricing mechanism. It should revisit NFSA norms and coverage.
• An official committee in January 2015 called for decreasing the quantum of coverage under the law, from the present 67% to around 40%

“Give-up” option

• For all ration cardholders drawing food grains, a “give-up” option, as done in the case of cooking gas cylinders, can be made available.
• Even though States have been allowed to frame criteria for the identification of PHH cardholders, the Centre can nudge them into pruning the number of such beneficiaries.

Slab system

• As for the prices, the existing arrangement of flat rates should be replaced with a slab system. Barring the needy, other beneficiaries can be made to pay a little more for a higher quantum of food grains.
• The rates at which these beneficiaries have to be charged can be arrived at by the Centre and the States through consultations. These measures, if properly implemented, can have a salutary effect on retail prices in the open market.

Conclusion

• There are no two opinions about reforms implemented in the PDS through various steps, including end-to-end computerisation of operations, digitisation of data of ration cardholders, seeding of Aadhaar, and automation of fair price shops.
• Yet, diversion of food grains and other chronic problems do exist. It is nobody’s case that the PDS should be dismantled or in-kind provision of food subsidy be discontinued.
• After all, the Centre itself did not see any great virtue in the Direct Benefit Transfer (DBT) mode at the time of giving additional food grains free of cost to the States during April-November last year (as part of relief measures during the pandemic).
• A revamped, need-based PDS is required not just for cutting down the subsidy bill but also for reducing the scope for leakages. Political will should not be found wanting.

1. Back at school: The nascent reopening of schools can be sustained with a commitment to safety READ MORE
2. Order, order: An unnecessary confrontation with the judiciary has held up much-needed tribunal reforms READ MORE
3. Justice for women of law READ MORE
4. Have SC’s attempts to depoliticise police inadvertently led to a weakening of federalism? READ MORE

1. School lockdowns in India have robbed a generation of upward mobility. READ MORE
2. Himachal: Institutional Casteism in Hiring of Cooks for Mid-Day Meals READ MORE

1. Over 90% of districts in India now face arid conditions. READ MORE
2. Green hydrogen, a new ally for a zero-carbon future: It holds promise as an alternative, truly clean fuel and in aiding the world’s decarbonisation goals READ MORE
3. How India’s food systems must respond to the climate crisis, READ MORE
4. India confronts increased rain-deficiency, climate migration READ MORE

1. Learning and not suffering settles karma READ MORE
2. What is Patience READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Cabinet increases Minimum Support Prices (MSP) for Rabi crops for marketing season 2022-23 READ MORE.
2. Supreme Court Collegium recommends names of 12 additional judges for appointment as permanent High Court judges READ MORE
3. Give rivers their rights, activists tell IUCN World Conservation Congress READ MORE
4. What is ‘Right to Sit’, the Tamil Nadu bill that mandates seating facilities for shop workers? READ MORE
5. Modi govt approves PLI scheme worth Rs 10,683 crore for textiles sector READ MORE
6. PM Modi launches key education initiatives for ‘education revolution’ READ MORE

Main Exam  

GS Paper- 2

POLITY AND GOVERNANCE

1. Back at school: The nascent reopening of schools can be sustained with a commitment to safety READ MORE
2. Order, order: An unnecessary confrontation with the judiciary has held up much-needed tribunal reforms READ MORE
3. Justice for women of law READ MORE
4. Have SC’s attempts to depoliticise police inadvertently led to a weakening of federalism? READ MORE

SOCIAL JUSTICE AND SOCIAL ISSUES

1. School lockdowns in India have robbed a generation of upward mobility. READ MORE
2. Himachal: Institutional Casteism in Hiring of Cooks for Mid-Day Meals READ MORE

INTERNATIONAL ISSUES

1. India’s presidency of the UNSC fortified our role in world affairs READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. The economic reforms — looking back to look ahead: The fundamentals need to be set right with a focus on human capital, technology readiness, and productivity READ MORE.
2. NBFC regulation needs to be strengthened READ MORE
3. CEA stokes hope amid Asian gloom: India’s economic growth is expected to be higher than the pre-COVID19 level. READ MORE
4. Balanced asset monetization: The govt must assess the plan since it has several pluses and minuses. READ MORE

ENVIRONMENT AND ECOLOGY

1. Over 90% of districts in India now face arid conditions. READ MORE
2. Green hydrogen, a new ally for a zero-carbon future: It holds promise as an alternative, truly clean fuel and in aiding the world’s decarbonisation goals READ MORE
3. How India’s food systems must respond to the climate crisis, READ MORE
4. India confronts increased rain-deficiency, climate migration READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Learning and not suffering settles karma READ MORE
2. What is Patience READ MORE

Questions for the MAIN exam

1. What do you understand by ‘Green Hydrogen’? Discuss the benefits and challenges involved in its production.
2. ‘India’s presidency of the UNSC has reinforced that India continues to play an important role in world affairs’. Comment.

QUOTATIONS AND CAPTIONS

• While the miser is merely a capitalist gone mad, the capitalist is a rational miser.
• It is high time to catch up with the rest of the world by going in for clean energy, decarbonising the economy and adopting ‘Green hydrogen’ as an environment-friendly and safe fuel for the next generations.
• Governments should end their populist indulgence of unsafe behaviour in public spaces to prevent community-level spikes that can jeopardise the nascent return of schooling.
• The narrative of Indian agriculture has to be changed towards more diversified high-value production, better remunerative prices and farm incomes. It must be inclusive of women and small farmers; it must be nutrition-sensitive, environment friendly and sustainable.
• India should also aim for a food systems transformation, inclusive and sustainable, ensuring growing farm incomes and nutrition security.
• There is no doubt that our presidency of the UNSC has once again reinforced the fact that India continues to play an important role in world affairs.
• India’s ed-tech market is thriving, but millions of children still don’t access online education. Physical classes must resume, or else learning gaps may become impossible to reverse.

50-WORD TALK

• Chhattisgarh CM Bhupesh Baghel deserves applause for letting the law take its course in his father’s case. In an ideal world, such a show of propriety wouldn’t merit a special mention. As it is, public expectations from politicians are low. Baghel has raised the bar for those holding public offices.

Things to Remember

• For prelims-related news, try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place is in the news, you should do map work (marking those areas in maps and exploring other geographical locations nearby, including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.), you should focus on terms and how these are related to various economic aspects; for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic; the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

INDIAN POLITY, GOVERNANCE AND SOCIAL JUSTICE

1. SC: RAILWAYS TO COMPENSATE FOR LATE-RUNNING TRAINS

THE CONTEXT: The Supreme Court has held that the Railways will have to pay passengers compensation for the late running of trains if unable to establish or prove that the delay was due to reasons beyond its control.

ANALYSIS:

• These are the days of competition and accountability. If the public transportation has to survive and compete with private players, they have to improve the system and their working culture.
• Unless and until the evidence is laid explaining the delay and it is established and proved that delay occurred beyond their control and/or even there was some justification for delay, the railways are liable to pay the compensation for delay and late arrival of trains.

SOURCE: The Hindu

2. RIGHT TO SIT

THE CONTEXT: The Tamil Nadu government formally presented a bill in the state assembly Monday requiring shops, storefronts, and commercial establishments to provide employees with seating facilities.

ANALYSIS:

• The Tamil Nadu Shops and Establishments (Amendment) Act, 2021, is inspired by a Kerala bill that was first tabled in July 2018 before it became a law in January 2019, after women textile workers in the state protested against harsh conditions in 2016.
• In the Kerala Shops and Commercial Establishments (Amendment) Ordinance 2018, seating facilities were mentioned by way of adding a new section in the Kerala Shops and Commercial Establishments Act, 1960.
• The problems faced by members of Tamil Nadu’s workforce in industries like jewellery and textiles have been widely reported on in recent years. Workers were being forced to stand throughout their daily 10-12 hour shifts and not being allowed timely toilet breaks.

SOURCE: THE PRINT

ENVIRONMENT, GEOGRAPHY AND AGRICULTURE

3. GIVE RIVERS THEIR RIGHTS, ACTIVISTS TELL IUCN

THE CONTEXT: Activists highlighted the plight of rivers as well as the support building up for according rights to them at the ongoing International Union for the Conservation of Nature (IUCN) World Conservation Congress September 8, 2021 in Marseille, France.

ANALYSIS:

• Some 1,700 individuals and 211 organisations from over 40 countries have pledged support to the declaration.
• Several campaigns calling for rights to be accorded to rivers have also incorporated the declaration. These include campaigns for the Lempa river in El Salvador, the Tavignanu river in France, all rivers in Mexico’s Oaxaca state, the Ethiope river in Nigeria, the Indus river in Pakistan and the Frome river in the United Kingdom.
• Several amici curiae briefs in defence of the ‘rights of rivers’ also reference the rights recognised in the Universal Declaration of the Rights of Rivers.
• The rights to recognise river as living entities rather than mere human property started in 2008. That year, Ecuador became the first country to constitutionally recognize the Rights of Nature.
• In 2017, a treaty agreement between the Whanganui Iwi (a Māori tribe) and the New Zealand government recognised the Whanganui river as a legal person
• Also in 2017, a Constitutional Court decision in Colombia recognised the rights of the Atrato River and a court in Uttarakhand recognised the Ganga and Yamuna rivers as legal persons with rights. This was later stayed.
• According to one statistic, only 37 per cent of rivers longer than 1,000 km still flow freely due to dams being built on them.

SOURCE : Down to Earth

4. OVER 90% DISTRICTS IN INDIA NOW FACE ARID CONDITIONS

THE CONTEXT:  According to data from the India Meteorological Department (IMD), as many as 673 out of India’s 733 districts face arid conditions now.

ANALYSIS:

• Overall, despite ‘normal’ rains, almost 90 per cent of the country remains drier than usual even as the kharif (summer) crop season is underway.

SOURCE : Down to Earth

INDIAN ECONOMY

5. PLI SCHEME FOR TEXTILES

THE CONTEXT: Government has approved the PLI Scheme for Textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with a budgetary outlay of Rs. 10,683 crores.

ANALYSIS:

• PLI for Textiles along with RoSCTL, RoDTEP and other measures of Government in sector e.g. providing raw material at competitive prices, skill development etc will herald a new age in textiles manufacturing.
• PLI scheme for Textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.
• With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs. 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore.
• PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments.
• This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.
• The Technical Textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc. will improve the efficiencies in those sectors of economy.
• Government has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. PLI will help further, in attracting investment in this segment.

SOURCE : PIB

6. CENTRE HIKES MINIMUM SUPPORT PRICE FOR RABI CROPS

THE CONTEXT: The government increased the minimum support price (MSP) for wheat for the upcoming rabi season to ₹2,015 per quintal, a 2% hike from the ₹1,975 per quintal rate of last year.

ANALYSIS:

• Oilseeds and pulses such as mustard, safflower and masoor dal saw higher MSP hikes of up to 8% in a bid to encourage crop diversification.

ABOUT MSP

• MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
• Government of India sets the MSP twice a year for 23 crops (13 Kharif, 6 Rabi and 4 commercial crops).
• The Commission for Agricultural Costs and Prices (CACP) decides the minimum support price and recommend it to government.
• Department of Agriculture and Co-operation, declares MSP before sowing season.

SOURCE :The Hindu

INTERNAL SECURITY

7. PROCUREMENT OF 56 C-295MW TRANSPORT AIRCRAFT

THE CONTEXT: Cabinet Committee on Security approved the procurement of fifty-six C-295MW transport aircraft from M/s Airbus Defence and Space S.A., Spain for the Indian Air Force.

ANALYSIS:

• 16 aircraft to be delivered in flyaway condition from Spain; 40 to be manufactured in India.
• Unique initiative to strengthen indigenous capabilities & boost ‘Make in India’.
• All aircraft to be installed with indigenous Electronic Warfare Suite.
• To replace the ageing Avro aircraft of IAF.
• Transport aircraft of 5-10 Tonne capacity with contemporary technology.

SOURCE: PIB

INTERNATIONAL RELATIONS

8. INDIA, RUSSIA REVIEW AFGHANISTAN SITUATION

THE CONTEXT:  India and Russia conducted their first “detailed and extensive review” of the situation in Afghanistan, agreeing to coordinate their positions at the United Nations, as a delegation led by Russia’s Security Council Secretary General Nikolai Patrushev met National Security Adviser Ajit Doval in Delhi.

ANALYSIS:

• The two sides stressed areas of “convergence”, including the need to hold the Taliban to their promises thus far, the threat of terrorism from international terror groups inside Afghanistan, flow of weapons, radicalization and increase in opium production and drug trafficking under the new regime.
• They also touched upon humanitarian and migration problems in [Afghanistan], as well as prospects for the Russian-Indian joint efforts aimed at creating conditions for launching a peaceful settlement process on the basis of an intra-Afghan dialogue.

SOURCE: The Hindu

9. INDIA, AUSTRALIA TO HOLD 2+2 MEET

THE CONTEXT:  India and Australia will hold the inaugural 2+2 Ministerial meeting in New delhi during the upcoming visit of Foreign Minister Marise Payne and Minister of Defence Peter Dutton.

ANALYSIS:

• These inaugural 2+2 discussions are a cornerstone of the Australia-India Comprehensive Strategic Partnership, which is founded on a shared commitment to a secure, stable and prosperous Indo-Pacific region.
• Talks between foreign ministers will cover economic issues, cyber security, climate change, critical technology and supply chains.
• Dutton will hold defence cooperation related meeting with his Indian counterpart Rajnath Singh.
• Discussions also likely to include a bilateral free trade agreement. India and Australia have been in negotiation over a possible free trade deal, which has so far not yielded a positive result.

SOURCE: The Hindu

Q1. Consider the following statements about Minimum Support Price:

1. It is the minimum price at which government purchases crops from farmers.
2. It is decided by the government on the recommendations of Indian Council of Agriculture Research (ICAR).

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

ANSWER FOR SEPTEMBER 08, 2021 PRELIMS PRACTICE QUESTIONS (REFER RELEVANT ARTICLE)

ANSWER: A)

Explanation:

• Vidyanjali 2.0 is an amalgamation of the words Vidya meaning “correct knowledge” or “clarity” and Anjali meaning “an offering with both hands” in Sanskrit language.
• Vidyanjali 2.0 is an initiative taken by the Ministry of Education, Government of India with the aim to strengthen Schools through community and private sector involvement in schools across the country.
• This initiative would connect schools with varied volunteers from the Indian Diaspora namely, young professionals, retired teachers, retired Government officials, retired professionals and many others.
• Vidyanjali has two verticals: “Participate in school Service/Activity” and “Contribution in Assets/ Material/ Equipment” in which volunteer can support and strengthen the government and government aided schools.

[WpProQuiz 42]

THE CONTEXT: In a stunning development for Overseas Citizens of India (OCIs), the Ministry of Home Affairs issued a notification on March 4 dramatically altering the compact between OCIs and the Indian state. It is saying that the notification is the end of India’s experiment with dual citizenship. The development has started a new debate. In this article, we will analyse the issue in detail.

Notification by the ministry of home affairs

The new notification issued under the section 7(B) of the Citizenship Act, 1955. Under this notification the rules and regulation for the OCIs has been rescheduled. This notification supersedes three earlier notifications which were issued in 2005, 2007 and 2009.

The OCI cardholder shall be required to obtain a special authorization/permit to visit India from the competent authority or the Foreigners Regional Registration Officer (hereinafter referred to as “FRRO”) or the Foreigners Registration Officer (hereinafter referred as to “FRO”) if the Indian mission visit is for following purposes:

• To undertake research;
• To undertake any Missionary or Tabligh or Mountaineering
• or Journalistic activities;
• To undertake an internship in any foreign Diplomatic Missions or foreign Government organizations in India or to take up employment in any foreign Diplomatic Missions in India;
• To visit any place which falls within the Protected or Restricted or prohibited areas as notified by the Central Government or competent authority.

For any time period to stay in India and the exemption from registration with the FRRO or FRO, the OCI cardholders can also claim exemption from registration with the FRRO or FRO. Necessary to mention the OCI cardholders who are ordinarily resident in India shall intimate the FRRO or the FRO through email every time there is a change in permanent residential address and their occupation.

Parity with Indians nationals in the matter of

• Tariffs in airfares in domestic sectors in India; and
• Entry fees to be charged for visiting national parks, wildlife sanctuaries, the national monuments, historical sites and museums in India.

Parity with non-resident Indians in the matter of

• Inter-country adoption of Indian children subject to the compliance of the procedure as laid down by the competent authority for such adoption;
• Appearing for the all India entrance tests.
• Provided that the OCI cardholder shall not be eligible for admission against any seat reserved exclusively for Indian citizens;
• Purchase or sale of immovable properties other than agricultural land or farm house or plantation property
• Pursuing the following professions in India as per the provisions contained in the applicable relevant statutes or Acts as the case may be, namely:-

(a) Doctors, dentists, nurses and pharmacists

(b) Advocates

(c) Architects

(d) Chartered accountants.

Who are OCI citizens?

OCI citizens are of Indian origin; however, they are foreign passport holders and are not citizens of India. India does not allow dual citizenship but provides certain benefits under Section 7B (I) of the Citizenship Act, 1955 to the OCIs.

The ministry of home affairs defines a person as a oversees citizen of India who:

• Was a citizen of India on or After 26^thJan 1950
• Was eligible to become a citizen of India on 26^thJan 1950
• Is a child or grandchild of such person

But a person is not eligible of OCI; if his parents or grandparents have ever been the citizen of Pakistan or Bangladesh. This category was introduced by the government in 2005. The government of India via Citizenship (amendment) 2015 merged the person of Indian origin (PIO) category with OCI category.

How new ruling impacts the OCI card holders?

• Prohibits them from undertaking certain activities without prior permission of the Foreigners Regional Registration Officers (FRRO).
• Parity with Indian citizens in the matters of tariffs in air fares in domestic sectors in India and entry fees to be charged for visiting national parks, wildlife sanctuaries, the national monuments, historical sites and museums in India.
• Special permission to undertake research work or taking up employment in any foreign diplomatic missions in India will need permission.
• Prior permission will be needed if wants to visit any place that falls within the protected or restricted or prohibited areas.
• This regulation will impact the government’s 2018 decision that made an OCI eligible for appointment as permanent teaching faculty in a premier educational institution. Such recruitments are governed by Section 7B 2(I) of the Citizenship Act, 1955.
• It restored the lifelong visa to OCIs that was temporarily suspended in March 2020 in the wake of the Covid-19 pandemic.
• An OCI cardholder to intimate the FRRO by email whenever there is a change in permanent residential address and in their occupation.
• Eligible for appearing in all-India entrance tests. This will only be against any NRI seat and shall not be eligible for admission against any seat reserved exclusively for Indian citizens.
• In a related case pending before the Karnataka High Court, the Centre had in March 2019 maintained the same stand. However, on 15 December 2020, the HC directed that students under the OCI category are to be considered citizens of India for admission to professional courses and not restrict their admissions only under the NRI quota.

Under the Foreigners (Restricted Areas) Order, 1963, the following areas have been declared as `Restricted’ Areas – Andaman & Nicobar Islands – Entire Union Territory and Sikkim – Part of the State.

• Whole of Arunachal Pradesh
• Parts of Himachal Pradesh
• Parts of Jammu & Kashmir
• Whole of Manipur
• Whole of Mizoram
• Whole of Nagaland Parts of Uttarakhand

OCI holders at par with NRIS?

• The new notification is making OCI cardholders par with Non-Resident Indians in the matter of inter-country adoption of Indian children.
• Appearing in the all India entrance tests and purchase or sale of immovable properties other than agricultural land or farm house or plantation property.
• They can pursue the professions in India as per the provisions contained in the applicable relevant statutes which include doctors, dentists, nurses and pharmacists, advocates, architects, chartered accountants.

Is the new notification an end for India’s experiment with dual citizenship?

In 2006, in order to meet calls for dual citizenship, India introduced the OCI card for foreign nationals of Indian descent. The OCI card allows foreign citizens of Indian origin to visit, live and work in India as citizens would. But there were many key restrictions:

• OCI card holders could not vote or participate in Indian politics
• Can’t occupy any positions in public service
• Can’t invest in agricultural land holdings

Moreover, it was hope that in future India will provide dual citizen to OCIs card holders and for that Lok Sabha MP Shashi Tharoor introduced a bill in Parliament to amend the Indian Constitution and allow dual citizenship for Indians. But, the new notifications are being seen as a step backward from granting dual citizenship to people of Indian origin who are citizens of foreign countries.

What is dual citizenship and why does India need it?

Introducing dual citizenship means that foreign citizens would be allowed to hold Indian passports and exercise all rights of an Indian citizen including participating in politics, policy and governance.

Why does India need Dual citizenship?

For Indian diaspora:

• It would open the floodgates for a diversely skilled group of professionals to come back home, infusing India’s somewhat insular and protectionist policymaking apparatus with much-needed international expertise.
• Dual citizens will bring Indian policymaking the benefits of global perspectives and lessons from global best practices.

To expand foreign policy:

• For years, Indian foreign policy discourse has suffered from introversion and fence-sitting on matters of international politics and security. A large part of the domestic debate on foreign policy is restricted to the immediate neighbourhood – and often just one country out of them all: Pakistan.

Global influence:

• They will also be more invested in steering Indian foreign policy discourse towards discussion on increasing India’s global influence, rather than on less meaningful populist chest-thumping: After all, many of them changed their passports in large part because of the consequences of India’s underwhelming global influence (the Indian passport is currently ranked 86 out of 109 positions on travel freedom – below Zimbabwe and Sierra Leone).

Easy citizenship by foreign countries:

• Many Indians abroad change their passports for very practical reasons seeking access to a higher quality of life, high-paying jobs in multilateral organisations where Indian citizens are over-represented, or merely for mobility and travel freedom.
• Between 2014 and 2017, 4.5 lakh Indians opted for citizenship of another country. As foreign countries offer easy citizenship in exchange for cash and investments, the trend is only set to grow.

For development:

• Dual citizenship will more fully leverage the political influence of Indians abroad by giving them a more direct stake in India’s development – and more meaningful roles by which to contribute to it. If Indian dual citizens return home to be in politics or government, they are more likely to do so in order to fix many of the developmental challenges that forced their migration, rather than to serve any ‘grand designs’ of foreign sabotage in India

Others  countries are offering dual citizenship:

• Eighty-five countries in the world offer dual citizenship. India needs to join this long list to avoid embarrassments such as an Indian winning the Nobel Prize but not being an Indian citizen.

But the new notification of government of India is against the demand of modern times that makes OCIs card holder as par Indian Citizens in some cases but restricted in some other cases and make them as par the NRIs. Although there are some criticisms of dual citizenship like:

• the threat of having foreign citizens in positions of policymaking and power.
• How can Indians trust folks who owe allegiance to a foreign power.

But the problem with these arguments is that this approach is totally misunderstand the Indian diaspora spectacularly. Unlike several foreign citizens of Chinese or Russian descent, Indian-origin citizens in the West did not flee from their home country out of spite or suppression.

What are the options for India? Case studies from other countries

Many countries have found a way around the technical and security issues involved.

• Bangladesh requires its citizens to obtain a “dual nationality certificate” so that it can control who gets to take dual citizenship and under what circumstances.
• Brazilians can acquire another country’s passport but they must enter and exit Brazil only on the Brazilian passport.
• Canada actually encourages dual citizenship; the US discourages but allows it.
• If the concern is security, one can look at Pakistan, which allows its citizens to hold dual citizenship of only 16 other countries, doesn’t let dual citizens run for public office or join the military. Signing dual citizenship agreements with other countries helps prevent its misuse.

CONCLUSION: The introduction of dual citizenship is a great opportunity for India to expand its global influence and attract the world’s talent to aid its domestic growth. More importantly, it will reinstate India’s legacy as a civilisation that is open rather than insular, global rather than protectionist, and confident rather than insecure. For India’s aspirations to be a global power, there are few attributes more pertinent than those.

Difference between OCI card holder, PIO and NRI

Overseas citizen of India:

• OCI is an immigration status given to a foreign citizen of Indian origin as an alternative for dual-citizenship which is not allowed by the Indian Constitution.

Non-residential India:

• NRI is a residential status given to a citizen of India with an Indian Passport who resides in a foreign country for the purpose of work/business, or education.

Person of Indian origin:

• PIO is an identification status given to whom or whose any of the ancestors was a permanent Indian resident/citizen and who is currently holding valid citizenship and passport of another country.

Sources

https://www.outlookindia.com/website/story/india-news-how-new-oci-notification-is-going-to-impact-overseas-citizens-travel-stay-and-more/377216

https://theprint.in/opinion/its-time-for-india-to-adopt-dual-citizenship/307701/

https://scroll.in/global/988721/with-new-oci-notification-india-has-ended-its-experiment-with-dual-citizenship

https://m.timesofindia.com/nri/other-news/new-oci-card-rules-turn-the-spotlight-on-the-dual-citizenship-debate/amp_articleshow/81448930.cms

https://www.theweek.in/columns/shashi-tharoor/2020/12/03/time-to-approve-dual-citizenship.html