THE INTERNATIONAL RELATIONS

1. EXPLAINED: WHAT IS FINLANDIZATION ?

THE CONTEXT: France President invoked a Cold War-era term“Finlandization” of Ukraine was “one of the models on the table” for defusing tensions with Russia.

THE EXPLANATION:

What is term about?

• The term refers to Finland’s strict neutrality during the Cold War, enshrined in a 1948 treaty with Moscow when tensions between the Soviet Union and the West were at a high.
• The treaty ensured Finland that unlike other countries in Eastern Europe, it would not face a Soviet invasion, but in return, it agreed to stay out of NATO and allowed the giant next door to exercise significant influence over its domestic and foreign policy.
• The origin of Finlandization can be traced back to the Cold War. Finland did not join NATO and there was no interference from Moscow due to the Finno-Soviet Treaty of 1948.

THE NEW ALLIANCE

• Ukraine, formerly a part of the Soviet Union, has increasingly tilted toward the West, economically and politically, while resisting Russian influence. In 2008, NATO said it planned eventually for Ukraine to join the alliance, a popular idea within the country, though it has never actually applied for membership and NATO officials say it would not happen any time soon.
• “Finlandization” would appear to rule out that possibility, and allow Moscow a heavy hand in Ukrainian affairs — concessions Kyiv and NATO have rejected as unacceptable.
• “All of this goes against what Ukraine has been striving for. “It would be a big shift from a long-term political aim of joining NATO and joining the E.U., which is what they have wanted.”
• The arrangement of French President appeared to suggest is “a way of solving a problem by making a decision over the head of the Ukrainians”.

With Russia determined to expand his sphere of influence and undermine an independent Ukrainian government, and the West making it clear it would not go to war against Russia to defend Ukraine, some experts have argued that “Finlandization” is the best course Ukraine can take.

2. RUSSIAN CLAIMS OF GENOCIDE FALSE: UKRAINE TO INTERNATIONAL COURT OF JUSTICE (ICJ)

THE CONTEXT: Ukraine has filed an application before the International Court of Justice (ICJ), instituting proceedings against the Russian Federation concerning “a dispute…relating to the interpretation, application and fulfillment of the 1948 Convention on the Prevention and Punishment of the Crime of Genocide” (the “Genocide Convention”).

THE EXPLANATION:

Ukraine has accused Russia of falsely claiming that “acts of genocide have occurred in the Luhansk and Donetsk oblasts of Ukraine”, and of using that as a pretext to recognise the independence of these regions and of going to war against Ukraine.

About the International court:

• The ICJ is the principal judicial organ of the United Nations (UN). It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
• The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being through, and by, the League of Nations, and which held its inaugural sitting at the Peace Palace in (HQ)The Hague, Netherlands, in February 1922.
• After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively. The PCIJ was formally dissolved in April 1946.
• It is the only one of the six principal organs of the UN that is not located in New York City.(The other five organs are the General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council, and the Secretariat.)

India at the ICJ

India has been a party to a case at the ICJ on six occasions, four of which have involved Pakistan. They are:

1. Right of Passage over Indian Territory (Portugal v. India, culminated 1960);
2. Appeal Relating to the Jurisdiction of the ICAO Council (India v. Pakistan, culminated 1972);
3. Trial of Pakistani Prisoners of War (Pakistan v. India, culminated 1973);
4. Aerial Incident of 10 August 1999 (Pakistan v. India, culminated 2000);
5. Obligations concerning Negotiations relating to Cessation of the Nuclear Arms Race and to Nuclear Disarmament (Marshall Islands v. India, culminated 2016);
6. (Kulbhushan) Jadhav (India v. Pakistan, culminated 2019).

3. JAPAN AND INDIA RENEWS BILATERAL SWAP ARRANGEMENT

THE CONTEXT: Japan and India have renewed the Bilateral Swap Arrangement (BSA) of up to $75 billion with effect from February 28, 2022.

THE EXPLANATION:

• “Japan and India believe that the BSA, which aims to strengthen and complement other financial safety nets, will further deepen financial cooperation between the two countries and contribute to regional and global financial stability”

What is Bilateral Swap Arrangement?

• Bilateral Swap Arrangement is a two-way arrangement where both authorities can swap their local currencies in exchange for the US Dollar.
• This means, India can acquire dollars from Japan in exchange for rupees. And, conversely, Japan can also seek dollars from India in exchange for yen
• The BSA was negotiated between India and Japan during the Indian prime minister’s visit to Japan in 2018. Consequently, the swap arrangement was signed to the tune of $75 billion in October 2020, to bring greater stability to foreign exchange.

Background:

In recent years, economic relationship between Japan and India have steadily expanded and deepened. The volume of trade between the two countries has increased. India was the 18th largest trading partner for Japan, and Japan was the 12th largest trading partner for India in 2020.

The year 2022 marks the 70th anniversary of the establishment of diplomatic relations between Japan and India. It is an opportunity to reminisce, be mindful of the present and envision our future. It gives me pleasure that we can celebrate the 75th anniversary of the Independence of India and the 70th anniversary of Japan-India diplomatic relations together.

THE ENVIRONMENT AND ECOLOGY

4. SIXTH ASSESSMENT REPORT (AR6) ON CLIMATE CHANGE: IMPACTS, ADAPTATION AND VULNERABILITY

THE CONTEXT: The Intergovernmental Panel on Climate Change (IPCC), the climate science body of the United Nations, published the second instalment of its Sixth Assessment Report (AR6). It focuses on the effects of climate change on ecosystems and society.

THE REPORT HIGHLIGHTS:

• Most populated regions at high risk: Cities — which house more than half of the world’s population — are at the highest risk from climate change. Globally, about 3-3.6 billion people are highly vulnerable to climate change.
• Poor most hurt: Climate impacts do not distinguish between borders but the poorest are hit the hardest. Low-income populations face the largest gap in adaptation action.
• Every degree of rise in warming increases risks: “Projected adverse impacts as well as related losses and damages escalate with every increment of global warming. Up to 14 per cent of species face a very high risk of extinction at global warming of 1.5 degrees Celsius (°C) over pre-industrial levels. The risk increases to 29 per cent at 3°C and 39 per cent at 4°C of global warming.
• Some changes irreversible: Some climate change-driven losses, such as the extinction of species, are irreversible. Others are approaching irreversibility with accelerating climate change. These include the retreat of glaciers and thawing of permafrost, particularly in the Arctic region.
• If global average temperature rise temporarily crosses the 1.5°C — known as the “overshoot” scenario — critical and fragile ecosystems will be lost, even if temperatures are brought down (theoretically, using carbon dioxide removal technologies like direct air capture). This will be disastrous for biodiversity.
• Impact on health, food, agriculture: Climate change has conclusively affected the physical and mental health of people around the world. Human society will increasingly face heat stress, water scarcity, threats to food security and flood risks as the crisis worsens.
• At 2°C of warming, people in sub-Saharan Africa, South Asia and Small Island Developing States will face severe food shortages and malnutrition.

INDIA’S PICTURE

According to IPCC report, Lucknow and Patna, are among the cities predicted to reach wet-bulb temperatures (a metric of humidity) of 35°C if emissions continued to rise, while Bhubaneswar, Chennai, Mumbai, Indore, and Ahmedabad are all identified as at risk of reaching wet-bulb temperatures of 32-34°C with continued emissions; overall, Assam, Meghalaya, Tripura, West Bengal, Bihar, Jharkhand, Odisha, Chhattisgarh, Uttar Pradesh, Haryana and Punjab will be the most severely affected, but if emissions continue to increase, all Indian States will have regions that experience wet-bulb 30°C or more by the end of the century.

BIODIVERSITY

According to the report, the future climate change could reduce the extent of a suitable habitat for giant pandas, the moose, black muntjac, the Sichuan snub-nosed monkey in China, Persian leopard in Iran, Bengal tiger and four tree snail species in Thailand.

Climate change will have little impact on the habitats of the Asian elephant, but would cause the extinction of the Hoolock gibbon in Bangladesh by 2070.

The snow leopard, which is the apex predator in the mountain ranges of central and south Asia, is found across 12 countries in Asia. Of these, its suitable habitat area will increase in Afghanistan, Tajikistan, Uzbekistan, Kyrgyzstan, Kazakhstan, Russia and Mongolia.

Climate change will promote the invasion of six mostly serious invasive plant species in Nepal. These are:

• Ageratum houstonianum (Floss flower)
• Chromolaena odorata (Bitter bush)
• Hyptissuaveolens (Pignut)
• Lantana camara (Raimuniya in Hindi)
• Mikania micrantha (Bitter vine)
• Parthenium hysterophorus (Carrot grass)

It would also promote the growth of eleven invasive plant species in the western Himalayas and the Giant African Snail in India. Climate change would also inhibit the invasion of two invasive plants — Chromolaena odorata (Bitter bush) and Tridax procumbens (Tridax daisy) — in India.

“Projected sea-level rise, related aquatic salinisation and alteration in fish species composition may have a negative impact on poor households in southwest coastal Bangladesh.

URGENT NEED FOR MORE FINANCE, POLITICAL COMMITMENT

• In case of some regions and population groups, the limits to adaptation may have been reached. This is particularly for people living in the low-lying areas of Australasia and Small Islands, smallholder farmers in central and south America, Africa, Europe and Asia.
• To reap further benefits from adaptation, other constraints need to be overcome such as poor governance, climate literacy and access to finance.
• Current global financial flows for climate action are insufficient. They are mostly targeted at emissions reductions, with a small proportion going towards adaptation. As climate impacts worsen, economic growth will slow down and thus, reduce the availability of financial resources for vulnerable regions.
• Climate adaptation efforts have improved in recent years, but progress is unevenly distributed by geography and is slow. Political commitment and follow-through are needed across all levels of government, to accelerate adaptation. Institutional frameworks with clear goals and priorities that define clear responsibility are also key.

WAY FORWARD

• A key aspect of this report is the vast set of options it provides to reduce risks to people and nature. Strengthening of health systems can reduce impacts of infectious diseases and heat stress, and should be combined with disease surveillance, early warning systems, and improved access to potable water, it outlined.
• The report recommended harnessing the adaptive strengths of nature through measures like:
• Agroforestry
• Conservation, protection and restoration of natural forests
• Planting of diverse tree species to withstand climate impacts.
• Adopting rainwater storage and other water-saving technologies can help combat groundwater depletion in agriculture.
• Food security can be enhanced by adopting stress-tolerant crops and livestock, promoting community-based adaptation that is locally driven as well as respecting local and indigenous knowledge system.
• Cities can use nature-based engineering approaches like establishing parks, green corridors, and urban agriculture. And expanded social safety nets will help with disaster management.
• The report closes on an instructive and poignant note: The cumulative scientific evidence is unequivocal: Climate change is a threat to human well-being and planetary health. Any further delay in concerted anticipatory global action on adaptation and mitigation will miss a brief and rapidly closing window of opportunity to secure a liveable and sustainable future for all.
• Holding global temperature rise to below 1.5°C could reduce projected losses.

THE PT PERSPECTIVE- PLACES IN NEWS

5. TURKEY BLOCKS WARSHIPS FROM STRAITS AMID RUSSIA-UKRAINE CRISIS

THE CONTEXT: Amid tensions between Russia and Ukraine, Turkey has barred warships from passing through the key straits of Bosphorus and Dardanelles in a bid to de-escalate the crisis.

THE EXPLANATION:

The Turkish straits give Russia’s Black Sea fleet entry to the Mediterranean. The Montreux agreement allows Ankara to regulate maritime traffic through the waterways during peace and wartime alike.

The Bosphorus and Dardanelles straits connect the Aegean (part of the Mediterranean), Marmara (Turkey’s inland sea), and the Black Sea, the latter from which Russia launched an incursion on Ukraine’s southern coast.

The 1936 pact gives Ankara the right to bar warships from using the Dardanelles and the Bosphorus during wartime and in case of threats to Turkey.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY 1^ST MARCH  2022

Q1. Consider the following statements about IPCC:

1. It was established in 1988 by WMO and UNDP.
2. Its headquarter is hosted at WMO headquarters in Geneva.
3. It is scientific body which gathers, monitors and do research on climate related data.

Which of the above given statements is/are incorrect?

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

d) 3 only

Q2. Which of the following pairs is/are correctly matched?

1. Bosporus Strait – The Aegean Sea and the Sea of Marmara.
2. Dardanelles Strait – The Aegean Sea and the Black Sea
3. Kerch Strait – The Black Sea and Sea of Azov

Select the correct answer using the code given below:

a) 1 and 2 only

b) 2 and 3 only

c) 3 only

d) 1, 2 and 3

ANSWER FOR 28^TH FEB 2022

Answer: C

Explanation:

Statement 1 is correct: Society for Worldwide Inter bank Financial Telecommunication(SWIFT) is a messaging network used by banks and financial institutions globally for quick and faultless exchange of information pertaining to financial transactions. SWIFT, first used in 1973, went live in 1977 with 518 institutions from 22 countries, its website states. SWIFT itself had replaced the much slower and far less dynamic Telex.

Statement 2 is incorrect: The Belgium-headquartered SWIFT connects more than 11,000 banking and securities organisations in over 200 countries and territories.

Statement 3 is correct: SWIFT is merely a platform that sends messages and does not hold any securities or money. It provides standardised and reliable communication to facilitate the transaction.

1. Beyond good intentions: Navigating the ethical dilemmas facing the technology industry READ MORE
2. Why moral leadership matters now more than ever READ MORE

1. Adapt to climate impacts a priority READ MORE
2. The Environmental Consequences of War READ MORE
3. Climate change induced droughts major driver of food insecurity: IPCC report READ MORE

1. School bullies: Learning needs of students need attention READ MORE
2. A digital health revolution to empower citizens READ MORE

1. A judgement that could open floodgates to defection READ MORE
2. When lawmakers bypass set norms READ MORE
3. Corporate governance — Sebi’s volte face READ MORE
4. Single Civil Services Exam outdated. UPSC holding separate exam for Indian Railways—good idea READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. All India House Price Index rises 3.1 pc in Q3: RBI data READ MORE
2. IPCC report warns of unavoidable multiple climate hazards READ MORE
3. Could Turkey close the Bosporus to the Russian navy? READ MORE
4. Everyday Global: What is the International Court of Justice READ MORE
5. Bengal tiger, hoolock gibbon, snow leopard to face climate change wrath: New IPCC report READ MORE
6. What is rain bomb? Australia hit by rare weather phenomenon, 8 dead. Check pics here READ MORE
7. Japan and India renews Bilateral Swap Arrangement of up to $75 billion READ MORE

Main Exam  

GS Paper- 1

1. School bullies: Learning needs of students need attention READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. A judgement that could open floodgates to defection READ MORE
2. When lawmakers bypass set norms READ MORE
3. Corporate governance — Sebi’s volte face READ MORE
4. Single Civil Services Exam outdated. UPSC holding separate exam for Indian Railways—good idea READ MORE

SOCIAL ISSUE

1. A digital health revolution to empower citizens READ MORE

INTERNATIONAL ISSUES

1. Debunking Russia’s international law justifications: The grounds on which the Russian President has tried to justify Moscow’s illegal actions against Ukraine are erroneous READ MORE
2. Counting the costs: Talks to end the war are a must as sanctions on Russia will hurt the wider world READ MORE
3. The Real World Order: Only the United Nations Charter cannot help Ukraine READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Democratising STEM skills is crucial to creating a future ready India READ MORE
2. What India should do to become a leader in green hydrogen READ MORE
3. Disappointing numbers: Estimate of GDP growth for current year lowered READ MORE

ENVIRONMENT AND ECOLOGY  

1. Adapt to climate impacts a priority READ MORE
2. The Environmental Consequences of War READ MORE
3. Climate change induced droughts major driver of food insecurity: IPCC report READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Beyond good intentions: Navigating the ethical dilemmas facing the technology industry READ MORE
2. Why moral leadership matters now more than ever READ MORE

Questions for the MAIN exam

1. Although civil society may not be an arena of the Fourth Generation Warfare, its potential for subversion of democracy and development is real. Critically Analyse.
2. “There is a fundamental flaw in positing the state and the civil society debate as one of either-or, rather it must be framed as state and the civil society”. Explain the statement in the context of contemporary challenges faced by the third sector in India.

QUOTATIONS AND CAPTIONS

• The tragedy of war is that it uses man’s best to do man’s worst.
• The grounds on which the Russian President has tried to justify Moscow’s illegal actions against Ukraine are erroneous.
• The biggest step towards democratising STEM would be the combined effort of all stakeholders — public and private — in the smooth transition to digital learning, where each and every student will be able to enjoy the experience of personalised lab equipment in a virtual setting.
• As India makes significant strides in science and technology globally, a holistic and multidisciplinary approach is critical in STEM education.
• The true democratisation of STEM education will not only empower learners to shape the workforce of tomorrow but also lead to unseen advancements in India’s STEM education sector.
• As the world enters a new phase of hybrid working and learning, the blending of physical and digital learning will be more critical than ever.
• Educational institutions are meant to provide a level playing field for students who come from a diverse background and the focus is on learning and acquiring skills.
• At a time when classrooms are returning to normal after the long gap caused by the pandemic, efforts should be made for building a healthy atmosphere and instilling the right values in young minds.
• Despite the rising acceptance of the role of digital health services, most of the digital health solutions, be it public or private, have continued to develop in a fragmented manner, restricted to their own silos, with little consideration of interoperability and a comprehensive larger picture.
• A spike in inflation would have complicated long-term consequences, and therefore extraordinary measures to manage it might be considered.
• The impact on food availability and nutritional quality will increase the number of people at risk of hunger, malnutrition and diet-related mortality

50-WORD TALK

• The anti-defection law was designed to eliminate political defection. However, the judgment of the Bombay HC seems to assume that paragraph (4) of the 10th schedule is meant to facilitate defection. This judgment is likely to open the flood gates to defection. The Supreme Court must intervene quickly.
• Facing crippling sanctions, mired in an un-winnable war, Russian President Vladimir Putin is threatening an atomic apocalypse. Letting nuclear blackmail succeed will only sow seeds for more. The world must make clear the onus is on Putin to negotiate a way out of the corner he has backed himself into.
• A small state like Haryana has an anomaly of 20 IAS chief secretaries as of today. This kind of top-heavy bulge in states is unsustainable, especially with the centre also saying it is short of IAS officers. Such shortages in critical areas indicates a severe HR crisis in the bureaucracy.

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 will be in news, you should do map work (marking those areas in maps and also 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.

[WpProQuiz 169]

THE CONTEXT: India is planning to bring about a national e-commerce policy. However, the government has decided to stay away from negotiations at the World Trade Organization platform to set international e-commerce rules due to many concerns. This article discusses WTO negotiations on e-commerce and India’s stand.

BRIEF DESCRIPTION OF NEGOTIATIONS AT THE WTO

The second phase of the final discussion started after 2019 and still date it is going on. India decided to stay away from negotiations.

OSAKA TRACK

• The G20 summit took place in June 2019 in Osaka, Japan. At the sidelines of the summit, a special event on the digital economy gathered G20 leaders and other countries who are currently participating in the informal plurilateral negotiations on e-commerce at the WTO. Together, they issued the Osaka Declaration on Digital Economy, announcing the launch of the ‘Osaka Track’, a process that aims to intensify efforts on international rule-making on the digital economy, especially on data flows and e-commerce, while promoting enhanced protections for intellectual property, personal information, and cybersecurity.
• The signatories of the Osaka Declaration on the Digital Economy hope to ‘provide a political impetus to the negotiations on e-commerce at the WTO’.
• The Osaka Track is inspired by the idea of ‘Data Free Flow with Trust (DFFT)’ proposed by Japanese Prime Minister Shinzo Abe at the World Economic Forum 2019, aiming to eliminate restrictions on cross-border data flows.
• India, Indonesia, and South Africa, among other countries, decided not to sign the Declaration.

INDIA’S CONCERNS

The government has decided to stay away from negotiations at the WTO (World Trade Organization) platform to set international e-commerce rules. It believes that the WTO framework may not safeguard the interest of its fledgling domestic e-commerce sector, hamper its control over cross-border data flow, and undermine its sovereignty over national legislation regarding custom taxation.

Cross-border data flow: India is wary of the demand made by developed countries to ban the regulations that many countries passed to protect the data.

Taxation issues: The WTO has already, for several years, been applying an agreed moratorium on tariffs for goods that are transmitted electronically. Developed countries are arguing for making this moratorium permanent. India fears that as more and more goods shift to the digital domain (in light of developments in digital manufacturing technologies such as 3-D printing), these could mean a substantial loss of revenue for emerging economies like India.

Underprepared MSMEs: Domestic retailers, especially small businesses, are underprepared to compete with large global e-commerce companies.

Digital divide: India is opposed to the formalization of talks on any form of an international treaty prior to the resolution of cross-cutting issues such as the digital divide between developed and developing nations.

Predatory pricing: In the case of B2C, there are issues related to shifting consumers from store to non-store formats, predatory pricing, providing heavy discounts to retain consumers, etc. Indian regulations related to predatory pricing are weak, and it is in fact difficult to prove predatory pricing.

SHOULD INDIA RECONSIDER ON ITS STAND?

Advantageous to the MSMEs:

• One of the key assumptions of the WTO negotiation is that it would help MSMEs by enhancing their scope for participating in international trade.
• It would be cost-effective for small and medium enterprises to use e-platforms to sell their products in wider geographical areas.
• However, here India must argue in favor of the Non-Discriminatory Market Place (NDMP) model as against an inventory-based model. As NDMP models are more favorable to the MSMEs.

Growing e-commerce market:

• With private domestic consumption in the economy showing a secular downward trend from a high of 61% (2013-14) to 55% (2018-19) as per the latest Economic Survey, it must capture the growing e-commerce market to boost exports.
• It can do so effectively by remaining in the WTO framework and negotiating in a way that is to its advantage.
• Most of the countries of Africa and even China is ready to be part of the negotiation; India cannot afford to remain isolated. It will have to join the framework at some point in time.
• However, terms may not be favorable then because consensus could have been reached without India’s participation. Therefore, India must join the negotiation now and put its views prudently and forcefully.

Tax losses:

• India could increase its share in the global e-commerce market by remaining in the WTO framework and thus could offset some of the tax losses through custom duty by the increased revenue (thus corporation taxes) of its domestic e-commerce companies.

Stand of other countries: 

• All WTO members recognize that e-commerce will be an integral part of business activities in the future; it will reduce the cost of doing business and connect SMEs to the global market.
• Developing countries are in a state of readiness to welcome international rules and, therefore, global competition. This can perhaps be correlated to the enhanced level of digital adoption by small businesses in many such countries.
• India must learn from China, which has a very strict data-localization policy but is still willing to join the negotiation calling for a ‘global data governance’ mechanism.

Developmental approach:

• The willingness of other G-77 countries to participate in international negotiations on e-commerce indicates that a developmental approach is superior to a regulatory one, to foster competitiveness in new markets.
• The renewed momentum in the domestic policy process is also an opportunity for India to recalibrate its command-and-control ethos. For instance, the previous draft policy sought government access to source codes of e-commerce companies, to ensure a lack of algorithmic bias.
• A focus on standards rather than state control is also a better fit for globalization.

INDIA’S PREPARATION

• The government of India released a draft e-commerce policy on 23 February 2019. The major tenets of the policy are related to data storage and localization, encouraging foreign direct investment (FDI) in the marketplace model, measures to contain the sale of counterfeit, prohibited, and pirated items, and making India’s e-commerce exports competitive and attractive.
• The Consumer Protection Bill 2019, which was passed by Parliament, paves the way for a regulator that could haul up eCommerce companies such as Amazon and Walmart-owned Flipkart if they influence pricing, unfairly promote products or misrepresent the quality of goods and services sold on their platforms.
• The government has also been working on various policies to more strictly regulate data storage by technology companies. For e-commerce, the new regulator will likely define categories of e-commerce data that would have to be stored locally within India.

OTHER INITIATIVES

Digital India: The Digital India program is a flagship program of the Government of India which aims to transform India into a digitally empowered society and knowledge economy. The Digital India program is based on three key vision areas:

• Digital infrastructure as a core utility to every citizen
• Governance and services on demand
• Digital empowerment of citizens.

Make in India: The Make in India initiative was launched to transform India into a global design and manufacturing hub and to reduce dependence on imports of goods such as electronic goods.

Start-up India: Startup India was intended to build a strong ecosystem for nurturing innovation and start-ups in the country to drive sustainable economic growth and generate large-scale employment opportunities.

WAY FORWARD:

• E-commerce has been hailed by many as an opportunity for developing countries to gain a stronger foothold in the multilateral trading system. E-commerce has the ability to play an instrumental role in helping developing economies benefit more from trade.
• Unlike the requirements necessary to run a business from a physical building, e-commerce does not require storage space, insurance, or infrastructure investment on the part of the retailer. The only prerequisite is a well-designed web storefront to reach customers.
• Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly less.

CONCLUSION:

E-commerce is generally presented in very positive terms but along with the potential benefits come potential problems for developing countries. In this case, the role of government becomes crucial. For example, the Federal Trade Commission of the United States is the nodal agency that regulates e-commerce activities, such as commercial email, online advertising, and consumer privacy. Similarly, India must also have such an agency that can control multiple dynamics of online retail. And should build institutional capacity for WTO negotiations and international competitions.