[WpProQuiz 369]

THE CONTEXT: The Union government has a noble objective of doubling farmer income by 2022 Thus the Indian agriculture sector has been witnessing a slew of reforms especially on corporate and contract farming. Against this backdrop, this article comprehensively discusses the issues of corporate and contract farming by adopting an in-depth approach.

UNDERSTANDING CORPORATE FARMING

• Corporate farming refers to agricultural operations that involve the production of food on an exceptionally large scale.
• It also involves a wide range of additional services that are important to the marketing of the foods produced.
• Thus this concept is not limited to the actual production of food but also includes the entire agriculture production system like marketing, distribution, etc.
• In other words, corporate farming deals with all the operations from “the farm to the fork”.
• These companies also influence agricultural education, research, and public policy through funding initiatives and lobbying efforts which are also needed to be considered while analyzing the concept of corporate farming.

UNDERSTANDING CONTRACT FARMING

• Contract farming means agriculture production carried out as per an agreement between a buyer and farmer.
• The contract sets out the rights and obligations of both parties concerning production, marketing, etc.
• The buyer agrees to buy the product at a mutually decided price from the farmer subject to conditions like timeliness, quality, etc.
• In some cases of contract farming, the buyer also provides seeds and other inputs including technical assistance.

ADVANTAGES AND DISADVANTAGES OF CORPORATE FARMING

ADVANTAGES

• It provides greater scope for investment in agriculture by big businesses and MNCs. This will improve Gross capital Formation in the Agriculture value chain especially in the food processing segment
• As per Economic Survey 19-20, farm mechanization in India is only 40%. Thus the entry of corporates will improve the status of farm mechanization which will improve production and productivity.
• It will promote the Industrialization of agriculture through the rapid production of crops to meet the needs of the economy. It will improve the GVA of agriculture in the overall GDP.
• Nearly 40 percent of the food produced in India is wasted every year due to fragmented food systems and inefficient supply chains as per Food and Agricultural Organisation.
• Timely harvesting of crops helps avoid wastage of food, increases the yield which leads to a decrease in food prices.
• The government subsidy for agriculture including MSP for farmers has huge fiscal implications. Corporate farming will reduce the fiscal burden of the exchequer.
• Many Indian corporates are involved in Agriculture in many African countries due to facilitative laws and local factors.
• For instance, the Tata group and RJ Corp have a significant presence in the Agri sector in Uganda.
• It enables reaping the benefits of economies of scale especially in the context of the high fragmentation of lands in India.

DISADVANTAGES

• It can adversely affect the livelihood opportunities of small and marginal farmers who form around 85% of the farming community in India.
• It can compromise the nutritional value of the food by increased usage of pesticides, insecticides, coloring agents, chemical and hormone injections, etc.
• Corporates farming poses the dangers of monopoly or cartelization in the Agri economy by dominating the whole Agri system value chain. This can impact the needs of food security of millions of poor people in India.
• The production techniques adopted interfere with the natural and biological processes of the environment.
• Moreover, corporate farming can be a threat to the water bodies that will quickly dry up from excess irrigation, polluting of fisheries by disposal of chemical wastes, and also pollutes the soil.
• The methods of corporate farming also pose challenges to human and animal health due to the extensive use of growth-stimulating drugs and chemicals
• The problem of Anti-Microbial Resistance is a case in point.
• Corporate farming heavily depends on Industrial agriculture which contributes to climate change.
• The IPCC report on Climate Change and Land 2019 points out how changing land-use patterns and food systems are driving anthropogenic emissions.
• In economies thriving on this type of farming, farmers face problems of reduced profits or increased costs. They then are forced to enter into a contract on unfavorable terms

ADVANTAGES AND DISADVANTAGES OF CONTRACT FARMING

ADVANTAGES

• The assured market for farmers for their produce. This captive market lowers the marketing and other transaction costs by eliminating middlemen.
• The farmers are saved from the vagaries of price volatility in the market due to assured procurement at the defined price
• Can make small farming competitive as they can access technology, credit, various farming inputs and can also open up new marketing channels
• Contract farming agreements assure the seamless supply of inputs to agri businesses which reduces the costs of their operations.
• It enables direct private investment in agriculture thereby making the Agri sector competitive and remunerative.
• For instance, it can promote investments in post-harvest management segments.
• The consumers will also be benefited as they can have more choices available at reasonable prices with good quality.
• It will have a wholesome influence on the socio-economic life in the rural area due to improved livelihood securities and income from farming.
• Companies/buyers provide farmers good quality products, such as breeds and best advisors to give efficient advice to the farmers.

DISADVANTAGES

• The greatest disadvantage of contract farming from the perspective of farmers is the loss of bargaining power.
• Due to the guaranteed markets, the contractors keep prices very low for farmers to earn maximize profit.
• Farmers get bound and they have to produce a certain amount of the crop at a specific time period. Thus the scope for alternative crop production is lost.
• The farmers cannot take advantage of the increase in prices of the crops in the markets due to a pre-determined price structure.
• Farmers don’t have the opportunity to get feedback from the consumer, and this leads to no improvements in production due to no communication between consumers and farmers.
• Environmental risks will increase due to the practice of monocropping which inter alia impact soil fertility and productivity. This is the long run would increase the cost of farming operations.
• The threat of creating monopolies in agriculture due to the domination of the value chain can have serious repercussions on food availability at affordable prices.
• The Big business has the wherewithal to decide the terms of the contract which put the farmers, especially the small and marginal ones  in a highly vulnerable position

INDIAN SCENARIO

CORPORATE FARMING

• Agriculture is a state subject and many states have land ceiling laws that limit the area of land one can own.
• Many state governments in India have attempted liberalization of these land laws, especially land ceiling laws and land leasing laws.
• The states of Gujarat, Madhya Pradesh, Karnataka, and Maharashtra have allowed agribusiness firms to buy and operate large land holdings for R&D, and export-oriented production purposes.
• The states of Maharashtra and Gujarat have also enacted laws to allow corporate farming on government wastelands by providing large tracts of these lands to agribusiness companies on a long-term (20 years) lease.
• But, in general, corporate farming is not well-established practice in India.

CONTRACT FARMING

• Under the Model, APMC Act, 2003, contract farming was permitted and the Agricultural Produce Marketing Committees (APMCs) were given the responsibility to record the contracts.
• So far, 21 States like Andhra Pradesh, Arunachal Pradesh, Assam, and Chhattisgarh, etc have amended their Agricultural Produce Marketing Regulation (APMR) Acts to provide for contract farming. Of them, only 13 States have notified the rules to implement the provision.
• Currently, contract farming requires registration with the APMC in a few states. This means that contractual agreements are recorded with the APMCs, which can also resolve disputes arising out of these contracts.
• But the current law passed by the parliament related to contract farming (The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services act, 2020) has changed this system.
• Recently, In Madhya Pradesh, hundreds of farmers have lodged complaints against a private firm that has cheated and disappeared after entering into a contract in 2018.

SUCCESSFUL EXAMPLES OF CORPORATE AND CONTRACT FARMING

CORPORATE FARMING

DOMESTIC

• The Jamnagar Farms, the 1700 acre agri-forestry, Agri horticulture farm set up in previously arid land near the RIL refinery is a sterling example of a successful corporate farming business model. It is the largest Mango orchard in Asia. Though initially taken up as part of the plan to improve the environment, the company has now become a profitable proposition. Recently, it has been allotted government and community-owned land for its 5000 crores project which is oriented towards export-oriented farming.

INTERNATIONAL

• In some of the oil-rich Middle East countries, corporate farming including large-scale irrigation of desert lands for cropping, are carried out mostly through partially or fully state-owned companies
• Three American corporate companies namely Cargill, Archer Daniels Midland Company (ADM), and Bunge control more than 50% of the agrarian market of the world through vertical integration and corporate farming.

CONTRACT FARMING

DOMESTIC

• In India, contract farming effectively began in 1989 when Pepsi Co has established a tomato processing plant in Hoshiarpur, Punjab.
• A Karnataka case study on contract farming of baby corns and chilies has found positive impacts on income, access to technology, and credit for contract farmers compared to non-contract farmers.
• Landcraft agro a Kolhapur based agree startup established by IITians carryout aquaponics & hydroponics farming. The company grows more than 40 varieties of exotic plants and vegetables which are sent across various cities in India. This success of the company shows that corporate farming can also be conducted on relatively small scale of land.

INTERNATIONAL

• An FAO report documents a success story of contract farming in Kenya about the South Nyanza Sugar Company (SONY) in Kenya.
• The company places a strong emphasis on field extension services to its 1 800 contracted farmers, at a ratio of one field officer to 65 sugar-cane growers. The extension staff’s prime responsibilities are focused on the managerial skills required when new techniques are introduced to SONY’s farmers. These include transplanting, spacing, fertilizer application, cultivation, and harvesting practices. Also, SONY promotes farmer training programmes and organizes field days to demonstrate the latest sugar-cane production methods to farmers.

CHALLENGES IN CORPORATE AND CONTRACT FARMING

CORPORATE FARMING

• The land ceiling laws in states put restrictions on the landholding size. Also, there are problems with the acquisition of agricultural land on a large scale.
• Since the companies would offer prices that may be too tempting for the poor farmers to resist. They may not be able to negotiate fair prices for their land. Landowners, therefore, would run the risk of becoming landless
• Tenant farmers, Agri laborers’ women or children, may run the risk of losing access to land and therefore food security and social status. This has serious gender implications in an already gender-biased rural context.
• When governments transfer wastelands to corporates either on sale or on a lease, often it is found that they include Common Property Resources in it. Thus there is popular resistance against such transfer of land.
• The benefits of efficiency, productivity, and greater capital formation through corporate farming are not supported by conclusive evidence.
• Corporate farming needs large land parcels which require land consolidation. But highly fragmented nature of the Indian Agri landscape makes this process extremely difficult.
• Also, there are challenges of diversion of land into non-agri purposes, environmental degradation, monopolistic behavior, etc.

CONTRACT FARMING

• The manner of the passage of farm bills without adequate discussion in parliament and consultation with states created a hostile atmosphere in the country about contract farming, especially among farmers.
• Only last year, a few Gujarat farmers were sued for more than Rs 1 crore for illegally growing and selling a potato variety registered by PepsiCo. The incidence left a question mark over the future of contract farming in which resource-poor farmers were pitted against a powerful multinational.
• Price settings are not transparent and both producers and consumers are often cheated. Word-of-mouth contracts are observed in the breach. Thus farmers often become apprehensive to enter into contracts.
• Small and marginal farmers may not benefit from the contract farming system as they cannot provide the farm produce in such large quantities. Thus it is often criticized for bias towards large farmers.
• It may lead to a situation of Monopsony in the Agri market having only one buyer and multiple sellers (farmers). This distorts competition and efficient price discovery in the economy.
• The dispute resolution mechanisms provided under the state laws or in the current Union law have numerous complexities which can disincentive the stakeholders to enter into contract farming.

INTERNATIONAL EXPERIENCES: A LEARNING CURVE

• Around 9 states in the USA have enacted laws to prevent or restrict corporate farming. Yet the U.S. agriculture suffers from abnormally high levels of concentration. It means just a handful of corporations control nearly all of the food production, processing, and distribution.
• If the concentration ratio is above 40%, economists believe competition is threatened and market abuses are more likely to occur. Almost every sector in agriculture is well above these levels.
• The razor-thin profit margins on which farmers are forced to operate often push them to “get big or get out”—either expanding into mega-operations or leaving the land altogether
• Studies in the USA indicate that farmers are pressurized by corporations; they are paid low prices for their products such as soya, wheat, and maize, and they pay high prices for seeds, pesticides, energy, fertilizers, and animal feed.
• In the case of the developing world, many Brazilian farmers are indebted to the American corporate giant Bunge; which now has a claim on their harvest and land. Land grabbing has particularly affected Africa and South America where small-scale farming families are brutally evicted from their lands and the area is sold or leased to foreign (private) investors.

WHAT SHOULD BE THE WAY FORWARD?

CRUCIAL ROLE OF GOVERNMENT

• The government and its agencies should play the role of a third party and as a facilitator between the farmers and the companies.
• It should not act as a mouthpiece for the companies but must ensure the landowners/farmers receive a fair deal. This is crucial in the current scenario of farmer’s prolonged agitation against the recently enacted farm laws.

ADDRESSING ISSUES OF DOMINATION

• Competition in the agricultural systems across the value chains should be ensured through proper regulation.
• The role of the Competition Commission of India becomes vital in this regard which needs to develop strategies and rules to prevent abuse of dominant position in the food economy.

ENSURING FOOD SECURITY

• Food security including nutrition security for millions of poor Indians impinges on affordability and accessibility of food.
• Corporate and contract farming poses a threat to these aspects by excessive profiteering by the companies. Government must ensure that PDS and MSP operations must not suffer due to private participation in agriculture.

ADDRESSING ENVIRONMENTAL CONCERNS

• The threats of monoculture, land and water pollution, global warming, and poisoning of food chains through bioaccumulation, etc need to be addressed. This requires effective control of land-use change and a comprehensive environmental management plan.

PROTECTING AGRICULTURAL DIVERSITY

• Different foods and food groups are good sources for various macro and micronutrients. Thus a diverse diet best ensures nutrient adequacy and human health.
• This requires that the corporations must be prevented from destroying the Agri diversity by an extreme emphasis on economies of scale through intensive agriculture.

INTRODUCING POLICY CLARITY

• The National Agriculture Policy 2010 aims at increasing private participation in agriculture for a sustainable Agri growth of 4 % per annum.
• Thus the government needs to come out with specific policies dealing with corporate farming and also address the concerns of all stakeholders concerning the legal aspects of contract farming.

PARTNERSHIP WITH STATES

• Agriculture is a state subject and the legal/policy measures taken at the union level should be built on consensus building with states.
• Also, the states must revisit/modify the land ceiling and tenancy regulations along with enacting/reforming laws related to private sector participation in the agricultural system.
• States must encourage the utilization of NABARD’s special to refinance packages for contract farming arrangements aimed at promoting increased production of commercial crops and creation of marketing avenues for the farmers.

CONCLUSION: The need for greater involvement of private players in the agriculture sector is a foregone conclusion. But the debate is about the manner and the extent of the participation. In the quest for greater capital formation and improved agriculture production and productivity, the dysfunctional aspects of corporate and contract farming must not be neglected. A comprehensive policy regime rooted in the ethos of “the last man on the street” formulated through wide-ranging and effective participation of all relevant stakeholders can take agriculture to new heights in India.

HEALTH ISSUES

1. EXPERIMENTAL ALZHEIMER’S DRUG FROM ROCHE FAILS IN TRIALS

THE CONTEXT: According to a study by the pharmaceutical company, the Roche’s Alzheimer’s drug candidate could not be shown to slow dementia progression in two drug trials.

THE EXPLANATION:

The study

• According to the twin studies, known as Graduate 1 and 2, had not reached their main goal of showing that the drug gantenerumab could preserve abilities such as remembering, solving problems, orientation and personal care in patients suffering from early stages of Alzheimer’s disease.
• The Swiss drugmaker conducted two identically designed studies, each with about 1,000 participants, who were examined and queried by physicians over more than two years. Within each study, volunteers were randomly assigned to receive either the injectable antibody drug gantenerumab or a placebo.
• The drug was associated with a relative reduction in clinical decline of 8 per cent in Graduate 1 and 6 per cent in Graduate 2 compared with the placebo, but those results were not statistically reliable.
• Gantenerumab is a fully human IgG1 antibody designed to bind with subnanomolar affinity to a conformational epitope on Aβ fibrils. It encompasses both N-terminal and central amino acids of Aβ. The therapeutic rationale for this antibody is that it acts centrally to disassemble and degrade amyloid plaques by recruiting microglia and activating phagocytosis.

VALUE ADDITION:

Alzheimer’s Disease:

• Alzheimer’s disease is a progressive neurologic disorder that causes the brain to shrink (atrophy) and brain cells to die.
• The disease is the most common cause of dementia – a continuous decline in thinking, behavioural and social skills that affect a person’s ability to function independently.

Caused by: Alzheimer’s disease is thought to be caused by the abnormal build-up of proteins in and around brain cells.

• One of the proteins involved is called amyloid, deposits of which form plaques around brain cells.
• The other protein is called tau, deposits of which form tangles within brain cells.

Vulnerability: Alzheimer disease most commonly affects older adults, but it can also affect people in their 30s or 40s.

Cases:

• According to WHO estimates for 2017, dementia affects approximately 50 million people worldwide, a number that is projected to grow to 82 million by 2030.
• In India, it is estimated that 5.3 million people (1 in 27) above the age of 60 have dementia in 2020. This is projected to rise to 7.6 million by 2030.

SOCIAL ISSUES AND SOCIAL JUSTICE

2. UNITED NATIONS POPULATION FUND REPORT

THE CONTEXT: The United Nations recently revealed that the world population has reached 8 billion mark. India is the largest contributor to the milestone, having added 177 million people.

THE EXPLANATION:

• The UN also noted that China, which added 73 million people, the projection is its contribution to the next billion in the global population is to be in the negative. This means the most populous country would now contribute in negative to the world population.
• the UN’s World Population Prospects 2022 report has also specified tat eight countries will be the biggest contributors in the next billion mark population rise. This includes India, Pakistan, Egypt, Congo, Ethiopia, Nigeria, Philippines, and Tanzania.
• According to a report half of the population still lives in just seven countries: China, India, the US, Indonesia, Pakistan, Nigeria and Brazil. While the world’s population will continue to grow to around 10.4 billion in the 2080s, the overall rate of growth is slowing down.
• The UN warned that India may soon surpass China to become the most populated country in the world. However, the UN also stated that the population growth in India is stablising than understood previously.
• “The good news is that India’s population growth appears to be stabilising. The Total Fertility Rate — more or less the average number of children born per woman — has declined from 2.2 to 2.0 at the national level”.
• Population growth has become increasingly concentrated among the world’s poorest countries, most of which are in sub-Saharan Africa.

Good record

• A total of 31 States and Union Territories (constituting 69.7% of the country’s population) have achieved fertility rates below the replacement level of 2.1, it said.
• The main reasons for the decline in fertility include increase in adoption of modern family planning methods (from 47.8% in 2015-16 to 56.5% in 2019-21) and a reduction in unmet need for family planning by four percentage points over the same period. “This indicates significant improvements in access to family planning related information and services. In summary, it shows that India’s national population policies and health systems are working”.
• India is a youthful nation with the largest cohort of young people anywhere in the world, with major potential to achieve its demographic dividend. While many parts of the world are ageing, India’s youthful population can be a global resource to solve global problems.

INTERNATIONAL RELATIONS

3. EAST TIMOR TO BECOME 11TH MEMBER OF ASEAN

THE CONTEXT: The AEAN members agreed in principle to admit East Timor as the 11th member of the bloc.

THE EXPLANATION:

What is ASEAN?

The Association of Southeast Asian Nations (ASEAN) is a regional bloc founded on August 8, 1967 in Bangkok, Thailand. Its member states are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. East Timor was added as a new member of this regional grouping.

About East Timor

• Timor Leste or East Timor is a half-island nation in the eastern Lesser Sunda Islands. It is situated at the southern extreme of the Malay Archipelago. It occupies the eastern half of the Island of Timor. It is bounded by the Timor Sea to the southeast, the Wetar Strait to the north, the Ombai Strait to the northwest and the western Timor (part of Indonesian territory) to southwest.
• East Timor that was previously part of Indonesian territory. Indonesia occupied the island nation in 1976. Hundreds of thousands have died on the island while resisting the annexation of Indonesia. Due to the global pressure, the Indonesian government authorized a referendum in 1999 to determine future of East Timor. In the UN-supervised referendum, the country voted to secede from Indonesia. It was recognized by the United Nations in 2002. This makes it the youngest democracy in Asia.

East Timor and ASEAN
East Timor started applying for ASEAN membership in 2011. The ASEAN decided to admit the island nation as its 11th member more than a decade after Timor-Leste requested membership. This decision was made at Cambodia’s capital, Phnom Penh, where the 40th and 41st ASEAN and related summits officially began recently. East Timor was granted observer status at ASEAN meetings, including summit plenaries, until it is formally inducted into the regional bloc.

4. EAST ASIA SUMMIT

THE CONTEXT: Vice President recently addressed the East Asia Summit on the last day of his visit to Cambodia, as the three-day Association of South East Asian Nations (ASEAN) summit concluded.

THE EXPLANATION:

What is the East Asia Summit?

• Beginning in 2005, 16 participating countries comprised this grouping, with their first meeting in Kuala Lumpur, Malaysia. These members were the 10 ASEAN countries,Australia, China, India, Japan, New Zealand, and the Republic of Korea.
• ASEAN’s 10 member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The United States and the Russian Federation joined at the 6th East Asia Summit in 2011.
• The EAS is an ASEAN initiative and refers to the annual Meeting of Heads of States/Governments of these countries, where they are able to discuss common concerns and interests
• Its creation was based on the idea of enhancing cooperation among East Asian countries and those in the neighbouring regions. Six priority areas of cooperation were identified – environment and energy, education, finance, global health issues and pandemic diseases, natural disaster management, and ASEAN Connectivity.
• In the past, the issues of claims over the South China Sea, the United Nations Convention on the Law Of the Sea, terrorism, the actions of North Korea and the conflict situation in Myanmar have been discussed by the countries.

What are the EAS’s links with India?

• This (2022) year marks the 30th anniversary of ASEAN-India relations and is being celebrated as the ASEAN-India Friendship Year.
• In a joint statement, ASEAN-India acknowledged the deep civilisational linkages, maritime connectivity, and cross-cultural exchanges between Southeast Asia and India which have grown stronger over the last 30 years, providing a strong foundation for ASEAN-India relations.
• Vice President announced an additional contribution of USD 5 million to the ASEAN-India science and technology fund to enhance cooperation in sectors of public health, renewable energy and smart agriculture.
• According to a 2021 statement by the Prime Minister’s website, “ASEAN-India Strategic Partnership stands on a strong foundation of shared geographical, historical and civilizational ties. ASEAN is central to our Act East Policy and our wider vision of the Indo-Pacific.”

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5. GLOBAL SHIELD AGAINST CLIMATE RISKS INITIATIVE

THE CONTEXT: The Global Shield Against Climate Risks initiative was launched on November 14, 2022 by the Vulnerable Twenty (V20) countries and G7 countries. While V20 countries represent 58 countries that are vulnerable to climate change, the G7 represent seven of the world’s most industrialized countries.

THE EXPLANATION:

About the initiative

• The Global Shield Against Climate Risks initiative was launched at the 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change in Sharm El-Sheikh, Egypt.
• It is a social protection and insurance-based finance mechanism for loss and damage outside the UNFCCC process.
• It will provide pre-arranged financial aid that can be rapidly deployed to respond to disasters like the devastating flood that occurred in Pakistan in August 2022.
• It will help expand the financial protection instruments for governments, communities, businesses and households.
• These instruments will minimise the impacts of disasters by helping vulnerable economies become more resilient, ensure sustainable development and protect lives and jobs.

How will the initiative be implemented?

• The initiative will be implemented in a way that it aligns with the vulnerable country’s financial and economic strategies so that the financing gaps are removed. This initiative will support countries in ensuring livelihood protection, social protection systems, livestock and crop insurance, property insurance, business interruption insurance, risk-sharing networks and credit guarantees. The support will be provided at the level of government, humanitarian agencies and non-profits so that the finances are present whenever necessary.
• Pakistan, Bangladesh, Costa Rica, Fiji, Senegal, Philippines and Ghana will be the first to receive assistance under this initiative. The initial contributions for this initiative are provided Germany, Denmark, Ireland and Canada. The US, which is also part of this initiative, is providing funding for the African Risk Capacity – an insurance and disaster risk solutions company. Other countries like the UK and the international organizations like the UNDP and the UN Office of Disaster Risk Reduction are also backing this initiative.

GOVERNMENT SCHEMES IN NEWS

6. POSOCO RENAMED AS “GRID CONTROLLER OF INDIA LIMITED”

THE CONTEXT: India’s national grid operator Power System Operation Corporation Limited (POSOCO) was renamed as Grid Controller of India Limited.

THE EXPLANATION:

About Grid Controller of India Limited (Grid-India)

• The Grid Controller of India Limited (Grid-India) is a wholly owned central government enterprise that comes under the aegis of the Ministry of Power.
• Previously, it was a fully owned subsidiary of the Power Grid Corporation of India Limited (Powergrid) – the central public sector undertaking (PSU) owned by the Union Power Ministry.
• It was set up in March 2009 to take care of the power management functions of the PGCIL.
• It was later made a separate company, with PGCIL being involved only in setting up transition link.
• Grid-India, as a separate company, was given the load despatch functions. It oversees the operations of the national load despatch centre (NLDC) and 5 regional load despatch centres (RLDCs). The NLDC is the apex body that ensures the integrated operation of national power system.
• Grid-India currently works as the nodal agency for major reforms in the power sector like the implementation and operation of Green Energy Open Access Portal, Renewable Energy Certificate (REC) Mechanism, transmission pricing, short-term open access in transmission, deviation settlement mechanism, Power System Development Fund (PSDF) and others.

Why was the name changed?

• The name was changed to reflect the important role played by the grid operators in ensuring integrity, reliability, resilience and sustainable operation of the Indian electricity grid. It also points to the unique position held by the Grid-India in connecting people to energy they use. The name reflects the functions performed by the grid managers in India at the national and state levels.
• It also explains the role played by the Grid-India in the country’s transition towards renewable energy. It also reflects the vision of the PSU to become a “global institution of excellence for reliable and resilient power systems, fostering efficient electricity markets, promoting economy and sustainability”.

THE PRELIMS PRACTICE QUESTION

QUESTION OF THE DAY

Q1. Consider the following statements about Atal Tunnel:
1. It is located near Baralacha La pass in Himachal Pradesh.
2. It provides all weather connectivity from Manali to Lahaul and Spiti valley.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: B
Atal Tunnel:

• It is located near Rohtang pass in Himachal Pradesh.
• It provides all weather connectivity from Manali to Lahaul and Spiti valley.

1. The paradox of sacrifice READ MORE
2. A Positive Engagement READ MORE

1. A tigress entered Almora from Corbett and was shot; Where is the accountability? READ MORE
2. Health as the focus of air pollution policy READ MORE
3. Joint effort. ‘Water credits’ can fund climate needs READ MORE

1. Focus is on education, conserving culture & customs READ MORE
2. Is climate change affecting global health? READ MORE  

1. Chasing utopia — the quest for a Uniform Civil Code READ MORE
2. Earning the ticket: Dropping underperforming MLAs is good practice. But it’s possible only in parties with strong leadership READ MORE
3. Electoral reforms must in all quarters READ MORE
4. JUDICIAL REFORM: A DAUNTING DECELERATION READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Xi urges better ties in rare summit with Australia READ MORE
2. Nine Russian banks open Vostro accounts for rupee trade READ MORE
3. India’s population growth appears to be stabilising: UN READ MORE
4. In worst slide since 2020, October exports drop 16.7% to $29.78 bn READ MORE
5. Kashi Tamil Sangamam begins Thursday: What is the ancient connect between Kashi and the Tamil land? READ MORE
6. India abstains on UNGA resolution calling for Russia to pay reparations to Ukraine READ MORE
7. Data protection Bill revised: Penalty up to Rs 200 crore if firms don’t have safeguards READ MORE
8. State of the Climate in Asia 2021 READ MORE
9. Explained | Google’s 1,000 language AI model READ MORE

Main Exam

GS Paper- 1

1. Focus is on education, conserving culture & customs READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Chasing utopia — the quest for a Uniform Civil Code READ MORE
2. Earning the ticket: Dropping underperforming MLAs is good practice. But it’s possible only in parties with strong leadership READ MORE
3. Electoral reforms must in all quarters READ MORE
4. JUDICIAL REFORM: A DAUNTING DECELERATION READ MORE

SOCIAL ISSUES

1. Is climate change affecting global health? READ MORE  

INTERNATIONAL ISSUES

1. G20: India’s development model can lead the way READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. The shape of the Indian economic pie must change READ MORE
2. RBI should pause rate hikes, boost growth READ MORE
3. Can India Seize the Demographic Advantage? READ MORE

ENVIRONMENT AND ECOLOGY

1. A tigress entered Almora from Corbett and was shot; Where is the accountability? READ MORE
2. Health as the focus of air pollution policy READ MORE
3. Joint effort. ‘Water credits’ can fund climate needs READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. The paradox of sacrifice READ MORE
2. A Positive Engagement READ MORE

Questions for the MAIN exam

1. ‘The EWS quota is unfair because it twists the idea of social justice by bequeathing further privilege to communities who are historically situated to benefit from the caste system’. How far do you agree with this view? Analyse your views.
2. ‘The agriculture of tomorrow is going to be science-based, and the winners will be those who adopt it and develop it further today’. In the light of this statement, discuss whether India should start genetically modified cropping?
3. ‘The US is welcome to cement its partnership with India in various sectors, but it is well advised not to dictate terms to the latter with regard to Russia’. Comment on the statement in the light of recent developments in International politics.

QUOTATIONS AND CAPTIONS

• You cannot spend your way out of recession or borrow your way out of debt.
• With S&P Global’s latest Business Outlook survey pointing to an intensification of wage pressures and producer pass-through of costs, authorities can ill-afford to drop their guard in the fight against inflation.
• A discussion on the viability of an otherwise unenforceable UCC has been made possible only because it finds an inscrutable mention in the Directive Principles of State Policy.
• The majority needs to benefit much faster than a tiny minority on top, which will require reforms of institutions and economic ideology and the Government listening to the needs of common citizens.
• India’s long-term strategy for low carbon development is consistent with its net-zero targets and outlines a road map for key industries.
• As the second highest user of freshwater in the country, industry can use its CSR funds imaginatively so that conservation gains are maximized.
• Water credits represent a fixed quantum of water that is conserved or generated and can be transacted between water deficit and water surplus entities within a sub-basin.
• To make the electoral system free and fair in the world’s largest democracy, the use of money and muscle power must be curbed in the Indian context.
• Without an efficient justice delivery system and a subsisting rule of law, a country’s development would be a utopian thought only.
• Judicial Infrastructure of our country has not improved & paced up to achieve the desired level since the British period.
• The demand for justice and change in the justice delivery system cannot be suppressed or ignored in the manner it is perverting in India. It needs to be enhanced with technology for curtailing the cost and the barrier of language in the Indian judicial system.
• The demand for justice and change in the justice delivery system cannot be suppressed or ignored in the manner it is perverting in India. It needs to be enhanced with technology for curtailing the cost and the barrier of language in the Indian judicial system.
• Paramount change in the existing law and adequate judicial infrastructure is required to accelerate the judicial system, to deliver qualitative, speedy justice to the citizens of India by saving millions of lives from being frustrated with the judicial system and the process of access to justice.
• In the new India, access to justice is the privilege of the powerful and rich people. Poor people are still suffering from the quantum of injustice which begins with a traffic constable up to the Supreme Court.

50-WORD TALK

• India’s COP27 commitment to raise its installed nuclear power capacity by threefold by 2032 as part of its long-term low-carbon development strategy is encouraging. India’s nuclear sector has enormous potential to expand but overcautious government plans have crawled. Nuclear is expensive, which’s where rich countries should step in and help.

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 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 368]

THE CONTEXT: Recently the Government of India has passed three farm bills that are being widely criticised by many farmer organisations. The farm bills are criticised for being pro market reforms that has the potential of harming farmer’s interest in the long run.

HISTORICAL BACKGROUND

• Since 1991, economic liberalisation and reforms by successive governments across the political spectrum – except during the lost decade of 2004-14 – have enabled a return to these core economic principles.
• That these timeless principles – advocated in as disparate Indian literature as the Arthashastra and the Thirukural – work is seen in the enormous prosperity well-regulated markets have delivered since 1991. Even the Chinese economic miracle is testimony to the role of markets in enabling economic prosperity for citizens.

WHAT IS FARM BILL 2020?

• In September 2020, the Indian government passed three agricultural bills, which are – Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bil, 2020, Farmers (Empowerment and Protection) Agreement of Price Assurance, Farm Services Bill, 2020, and the Essential Commodities (Amendment) Bill, 2020.
• The new farmers’ bill allows the farmers to sell their products directly to private buyers breaking the monopoly of man is regulated by the government. The people get empowered to get into a legal deal with the companies and produce agro-products for them. The farmers’ bill India also allows stocking of food articles by the agri-businesses removing the ability of the government to impose arbitrarily.

The three farm acts:

1.Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

• This act allows farmers to engage in trade of their agricultural produce outside the physical markets notified under various state Agricultural Produce Marketing Committee laws (APMC acts). Also known as the ‘APMC Bypass Bill’, it will override all the state-level APMC acts.
• Promotes barrier-free intra-state and inter-state trade of farmer’s produce.
• Proposes an electronic trading platform for direct and online trading of produce. Entities that can establish such platforms include companies, partnership firms, or societies.
• Allows farmers the freedom to trade anywhere outside state-notified APMC markets, and this includes allowing trade at farm gates, warehouses, cold storages, and so on.
• Prohibits state governments or APMCs from levying fees, cess, or any other charge on farmers produce.
• The three farm acts are likely to have a significant impact on farmers and agriculture in the country.

2. Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020

• The act seeks to provide farmers with a framework to engage in contract farming, where farmers can enter into a direct agreement with a buyer (before sowing season) to sell the produce to them at pre-determined prices.
• Entities that may strike agreements with farmers to buy agricultural produce are defined as “sponsors’’ and can include individuals, companies, partnership firms, limited liability groups, and societies.
• The act provides for setting up farming agreements between farmers and sponsors. Any third parties involved in the transaction (like aggregators) will have to be explicitly mentioned in the agreement. Registration authorities can be established by state governments to provide for electronic registry of farming agreements.
• Agreements can cover mutually agreed terms between farmers and sponsors, and the terms can cover supply, quality, standards, price, as well as farm services. These include supply of seeds, feed, fodder, agro-chemicals, machinery and technology, non-chemical agro-inputs, and other farming inputs.
• Agreements must have a minimum duration of one cropping season, or one production cycle of livestock. The maximum duration can be five years. For production cycles beyond five years, the period of agreement can be mutually decided by the farmer and sponsor.
• Purchase price of the farming produce—including the methods of determining price—may be added in the agreement. In case the price is subject to variations, the agreement must include a guaranteed price to be paid as well as clear references for any additional amounts the farmer may receive, like bonus or premium.
• There is no mention of minimum support price (MSP) that buyers need to offer to farmers.
• Delivery of farmers’ produce may be undertaken by either parties within the agreed time frame. Sponsors are liable to inspect the quality of products as per the agreement, otherwise they will be deemed to have inspected the produce and have to accept the delivery within the agreed time frame.
• In case of seed production, sponsors are required to pay at least two-thirds of the agreed amount at the time of delivery, and the remaining amount to be paid after due certification within 30 days of date of delivery. Regarding all other cases, the entire amount must be paid at the time of delivery and a receipt slip must be issued with the details of the sale.
• Produce generated under farming agreements are exempt from any state acts aimed at regulating the sale and purchase of farming produce, therefore leaving no room for states to impose MSPs on such produce. Such agreements also exempt the sponsor from any stock-limit obligations applicable under the Essential Commodities Act, 1955. Stock-limits are a method of preventing hoarding of agricultural produce.
• Provides for a three-level dispute settlement mechanism: the conciliation board—comprising representatives of parties to the agreement, the sub-divisional magistrate, and appellate authority.

3. Essential Commodities (Amendment) Act, 2020

• An amendment to the Essential Commodities Act, 1955, this act seeks to restrict the powers of the government with respect to production, supply, and distribution of certain key commodities.
• The act removes cereals, pulses, oilseeds, edible oils, onion, and potatoes from the list of essential commodities.
• Government can impose stock holding limits and regulate the prices for the above commodities—under the Essential Commodities, 1955—only under exceptional circumstances. These include war, famine, extraordinary price rise, and natural calamity of grave nature.
• Stock limits on farming produce to be based on price rise in the market.  They may be imposed only if there is: (i) a 100 percent increase in retail price of horticultural produce, and (ii) a 50 percent increase in the retail price of non-perishable agricultural food items. The increase is to be calculated over the price prevailing during the preceding twelve months, or the average retail price over the last five years, whichever is lower.
• The act aims at removing fears of private investors of regulatory influence in their business operations.
• Gives freedom to produce, hold, move, distribute, and supply produce, leading to harnessing private sector/foreign direct investment in agricultural infrastructure.

ARGUMENTS SUPPORTING THE FARM LAWS

The purpose of the new farm laws is to end the historic exploitation of farmers at the APMC markets and free them from the clutches of the middlemen.Farmers who sell their produce to mandi merchants, or ‘arhatiyas’, at agricultural produce market committee (APMC) markets still receive informal white slips with the transaction amount scribbled on them, making the record non-transparent.The purpose of the new farm laws is to end the historic exploitation of farmers at the APMC markets and free them from the clutches of the middlemen.

1. Economic history of exploitation at mandis

• Fifty-five years since the APMCs were introduced, the country’s farmers are still receiving a low share of the consumer’s rupee as indicated by an Reserve Bank of India study covering mandis in 16 states, 16 food crops and 9,400 farmers, traders, retailers.
• The farmers’ shares were 28 per cent for potato, 33 per cent for onion, 49 per cent for rice, an crop with minimum support price (MSP) guarantee.
• The provision of MSP alone will not ensure farmers to draw a greater share of the consumer’s rupee because supply is greater than demand.
• The demand is also influenced by schemes such as national food security mission, where food grains are offered free or at low prices. When rice and wheat are offered virtually free of cost, why will the consumer buy ragi, jowar, bajra at a higher price?
• Injecting competition by widening farm markets will benefit farmers which the three farm laws aim at.

2. Inefficiencies in APMCs

• The APMCs still don’t issue formal receipts which are supposed to mention the price, quantity or quality of the produce.
• Further, due to interlocked markets, farmers are forced to sell to those middlemen who they have borrowed money from, starting off a vicious circle of exploitation in times of distress sales.
• Buyers make a large income from informal lending. Such illegal paired with unfair deductions, undercover sales, cartels and collusions at APMCs have continued denying remunerative prices to the farmers.

3. Widened markets benefit farmers

• Due to green revolution technologies, supply has increased but is limited to APMCs for handling. This causes the prices to be capped at a lower value. Permission to buy or sell outside APMCs will benefit farmers by creating new supply or value chains.
• The nominal protection coefficient (domestic price divided by international price) for agriculture is 0.87. This implies that farmers can get at least 13 per cent higher prices in international markets by exporting.

4. Infringement of rights

• Farmers’ right to sell their produce to whomever, wherever, whenever and in whichever quantity cannot be infringed upon. The elasticity of price transmission between  that at APMCs and farmgate price (market value minus selling cost) is impressive. Thus, buyers outside APMC will have to compete with APMC prices and vice versa to attract farmers’ produce.

5. No interference with state

• Entry 26 of the state list enables states to regulate trade in agricultural commodities within their boundary. But this is subject to entry 33 in the concurrent list, which allows both the Centre and the states to frame these regulations.
• Such market reforms can double farmer incomes. Also, with Article 249, the Centre can enact law in national interest of saving farmers from exploitation by middleman.

6. Multiple markets and competition

• Allowing buyers outside APMC mandis promotes competition and halts exploitation. At present, while consumers are paying higher price, farmers are still receiving lower returns due to inefficiencies and imperfections. Thus, setting the markets right is crucial through the new laws.
• Unified market platform (UMP) in Karnataka resulted in increase of prices by 38 per cent. This implies that current market prices are depressed by 38 per cent due to lack of adequate competition. Opening up the markets can push the APMCs to offer competitive prices.
• Competition in procurement and distribution cost can also reduce from 30 per cent to 15 per cent.

7. Bihar’s impressive performance

• Economic reforms in Bihar in 2005 that removed the APMC act resulted in impressive agricultural and overall performance.
• Before 2005, Bihar’s economy grew at a rate of 5.3 per cent while India’s economy grew at 6.8 per cent. After the reforms, Bihar’s economy grew at 11.7 per cent with 4.7 per cent agriculture boost, while India’s economy grew at 8.3 per cent with agricultural growth at 3.6 per cent.
• Between the pre and post-reform period, average wholesale price of paddy increased by 126 per cent, maize by 81 per cent and wheat by 66 per cent.
• Considering the impact of reforms on crop output, in the pre-reforms (2000 to 2007) and post-reforms (2008 to 2015) period, the growth rates of output of field crops (1.53 per cent, 4.29 per cent) were higher than that of horticulture crops (-3.51 per cent, 2.85 per cent), with an impressive growth rate of overall output of agriculture and allied sectors (2.57 per cent, 4.66 per cent).

8. Contract farming

• Contract farming enabled farmers to offer produce at a predetermined price. When the market price is above contractual price, farmers have the liberty to sell at the higher price.
• Small farmers have benefitted more than large farmers in contract farming as income derived per acre was the highest for small farmers.

9. Agriculture markets starved of 3Cs

• Agricultural markets are starved of capital, competition and commitment. Capital injection postpones operation of the law of diminishing marginal returns.
• The gross private capital formation in agriculture is 75 per cent. Investment in marketing infrastructure, processing, logistics benefits society, where private sector has potential. For these, political will is crucial and hence, the Union government should not repeal the three laws.
• New provisions of Essential Commodities Act enable scale economies in agricultural marketing attract private sector investment.

10. National overseeing authority

• Farmers cannot be left to the free will of competitive markets due to skewed asset distribution. A national body, national agricultural marketing board similar to TRAI and SEBI, needs to be created to enhance the bargaining power of farmers and protect them, along with purchasers, sellers and consumers from possibilities of exploitation.

WHY ARE THE FARMERS PROTESTING AGAINST THE FARM BILLS?

• More than half of all government procurement of wheat and paddy in the last five years has taken place in Punjab and Haryana, according to Agriculture Ministry data. More than 85% of wheat and paddy grown in Punjab, and 75% in Haryana, is bought by the government at MSP rates. Farmers in these States fear that without MSPs, market prices will fall.
• These States are also most invested in the APMC system, with a strong mandi network, a well-oiled system of arthiyas or commission agents facilitating procurement, and link roads connecting most villages to the notified markets and allowing farmers to easily bring their produce for procurement. The Punjab government charges a 6% mandi tax (along with a 2.5% fee for handling central procurement) and earns an annual revenue of about ₹3,500 crore from these charges.
• The very right of the Centre to enact legislation on agricultural marketing. Article 246 of the Constitution places “agriculture” in entry 14 and “markets and fairs” in entry 28 of the State List. But entry 42 of the Union List empowers the Centre to regulate “inter-State trade and commerce”. While trade and commerce “within the State” is under entry 26 of the State List, it is subject to the provisions of entry 33 of the Concurrent List – under which the Centre can make laws that would prevail over those enacted by the states.
• Entry 33 of the Concurrent List covers trade and commerce in “foodstuffs, including edible oilseeds and oils”, fodder, cotton and jute. The Centre, in other words, can very pass any law that removes all impediments to both inter- and intra-state trade in farm produce, while also overriding the existing state APMC Acts.

ISSUE REGARDING THE BILL

• Yes, there were many flaws in the decades old APMC Act, but critics believe that the need was to plug the loopholes instead of introducing a new system altogether. A similar system has already been introduced in America and some European countries where it has failed miserably, we can only hope this does not happen in India and government will not repeat those mistakes.
• From the attitude of government, the stand of government is very clear that it is not going to change anything because already it has been termed as Masterstroke. Right now, it is just an Act both are results are possible; farmers income becomes double as said by the government, or their conditions worsen as feared by farmers. History is the best judge. While the intent of Government is laudable, we will be able to see the results of these new Acts after few years only. Right now, everything is just a speculation.
• The  bill have triggered strong protests all over the country. Let’s have a look at the issues that are triggering so many protests across the nation.
• These new farmers’ bills might end MSP or minimum support prices and this bothers the farmers.
• Another concern is the lack of bargaining capability with big companies. The people involved in farming might get the freedom to deal with the biggest of the companies but due to the lack of knowledge, he/ she might not be able to negotiate the best possible terms.
• Outside the mandis or government-regulated markets, there is hardly any regulation, and grievance re-dressal system is also not present there.
• The new farmers’ bill may weaken the APMC system which is considered to be very helpful for small farmers.
• As per the suggestions of agricultural economists, the focus should be given on strengthening APMCs rather than transferring everything to private entities.
• Many are fearing that the people involved in agriculture might be turned into slaves due to contractual farming.
• Due to the removal of restrictions on food storage, big companies may store agro products in huge quantities and create artificial hikes in price.

WAY FORWARD

Three fundamental reforms are necessary to make India’s growth more just and more inclusive.

• The first is, policymakers must listen to the less powerful people in markets. Therefore, institutions that represent small people — associations and unions of farmers, informal workers and small enterprises — must be strengthened, not repressed. When reforms are supposedly in their interests, they have a right to be heard.
• The second is the formation of cooperatives of producers and workers. By aggregating the small into larger-scale enterprises owned by themselves, not only do the producers have more power in negotiations with their buyers, suppliers, and with government, they are also able to retain a larger part of the value they generate and increase their own incomes and wealth. Government regulations must encourage the formation of strong cooperatives, and improve their ease of doing business.
• The third is, market reformers must clean up their ideological lenses and see the reality of where power lies in markets. As Barbara Harriss-White, a scholar of India’s agricultural markets once observed, “deregulated imperfect markets may become more, not less, imperfect than regulated imperfect markets.”

CONCLUSION:

• Farmers are debt ridden, starved of funding and of assured price mechanism. The three legislations if taken together accentuate the crisis even further. In the absence of a guaranteed support price mechanism, the legislations even fail to mention a very strong support for the MSP as a benchmark price as a fundamental condition for open agriculture trade and winding up of mandis.For years farmers have demanded statutory support price for their produce from the government.
• There is a need to restore the shaken confidence of the agrarian sector. In order for that to happen the government of India needs to give an iron clad guarantee on holding the price line 100% over and above the inflation-linked cost of production to the primary producer and not allowing any players to offer a price below that line to them. Only such a guarantee will ensure the confidence of the farmers in the system.
• We need to understand that if the country has to come out of her grave economic crisis, the answer does not lie in the economies of the urban or of the extractive economies of the capital. The answer decisively lies in the revival of the rural with dignity and respect. The country, it must be understood, cannot survive if the rural falls and chances of such an event happening today can only be averted with a considered policy response initiated with empathy and care.

INDIAN POLITY AND CONSTITUTION

1. FIRST AMENDMENT TO CONSTITUTION CHALLENGED

THE CONTEXT: Recently, the Supreme Court agreed to hear a petition challenging the 1st Constitutional amendment’s expansion of restrictions on the freedom of speech and expression (Article 19(1)(a)) on the grounds that the amendment violates the basic structure doctrine.

THE EXPLANATION:

Article 19 of the Indian Constitution: Protection of certain rights regarding freedom of speech, etc.

Rights enlisted under Article 19 (1): All citizens shall have the right –
(a) to freedom of speech and expression;
(b) to assemble peaceably and without arms;
(c) to form associations or unions;
(d) to move freely throughout the territory of India;
(e) to reside and settle in any part of the territory of India;
(g) to practise any profession, or to carry on any occupation, trade or business.

Reasonable restrictions are imposed on Article 19(1)(a) in 19(2): In the interests of

• The sovereignty and integrity of India,
• The security of the State,
• Friendly relations with foreign States,
• Public order, decency or morality,
• In relation to contempt of court,
• Defamation,
• Incitement to an offence.

The 1st amendment to the Indian Constitution:

Background:

• In State of Madras v. Champakam Dorairajan (1951), the SC held that the reservation in government jobs and colleges cannot be provided on the basis of caste, as it violates Article 29(2) of the Indian Constitution.
• Article 29(2): The State shall not deny admission to any individual to educational institutes maintained by or those receiving help from it solely on the basis of race, religion, caste, language, or any of them.
• The Constitution (First Amendment) Act, 1951 was enacted in response to this judgement.

About the Constitution (First Amendment), Act 1951:

• It made numerous significant changes in the Constitution, including exempting land reforms from scrutiny and providing protections for backward classes.
• Notably, it broadened the extent of the restrictions on the right to free expression.
• This amendment established the precedent of modifying the Constitution to overcome judicial decisions restricting the government’s perceived responsibilities to specific policies and programs.
• The first amendment made two key changes in Article 19(2):
• First, it introduced the qualification “reasonable” to the restrictions that Article 19(2) imposed, which leaves the door open for the courts to intervene and review the validity of restrictions imposed by Parliament.
• Second, the amendment introduced into the Constitution the specific terms “public order” and “incitement to an offence”.
• This new set of narrower terms in the provision was necessitated by two SC rulings in 1950 that went against the state’s power to curb free speech.
• Both these verdicts (Brij Bhushan v State of Delhi (March 1950), and Romesh Thappar v State of Madras (May 1950)) involved the press.
• In both the cases, the court had to define the terms “public safety” and “public order” and examine if they fell within the scope of the restrictions allowed in Article 19(2).
• The court struck down the laws imposing restriction on free speech on the grounds of “public safety” and “public order” as unconstitutional.

The basic structure doctrine:

Background:

• The idea of basic structure has been borrowed from Germany.
• It was originally suggested in the Sajjan Singh case (1965) by the Supreme Court of India.
• In Kesavananda Bharati case (1973), the SC by a 7-6 majority held that Parliament can amend the Constitution but does not have power to destroy its “basic structure”.

INTERNATIONAL RELATIONS

2. G20 SUMMIT HIGHLIGHTS

THE CONTEXT: Heads of state and governments belonging to 20 of the world’s major advanced and emerging economies have gathered for a two-day summit meeting in Bali, Indonesia.

THE EXPLANATION:

• At the end of the meeting, India, represented by Indian Prime Minister, will assume charge of the G20 presidency.
• The 18th summit will be held in India next year.

The Bali summit will have three key priorities:

1. Global Health Architecture: This involves deliberations towards strengthening global health resilience and making the global health system more inclusive, equitable, and responsive to crises.
2. Digital Transformation: Deliberations here have centred on achieving the full potential of rapid digitalisation of the global economy by creating a new landscape of cooperation among nations.
3. Sustainable Energy Transition: The discussions have focussed on ways to accelerate the transition towards cleaner energy sources.
In particular, since any such transition requires substantial investments, the efforts have been focussed on finding a platform for such investments.

What else is at stake?

• The G20 countries are considered as the engines of global growth as they account for 60 per cent of the world’s population, 80 per cent of the world’s GDP and 75 per cent of the world’s exports.
• However, since the October 2021 summit in Rome, prospects of the global economy have worsened.
• A recent report of the International Monetary Fund on G20 countries shows, most of the G20 constituent countries have suffered significant output losses since the start of the Covid-19 pandemic.
• India, for instance, would have lost almost 14 per cent of its total output — the highest loss among all G20 countries.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3. DECLINE IN MANGROVES

THE CONTEXT: According to a study published in the journal Ecological Informatics, certain mangrove species in Chilika and Sundarbans along the east coast and Dwarka and Porbandar along the west coast of India is likely to reduce and shift landward by 2070 due to decline in suitable habitats in response to precipitation and sea level changes.

THE EXPLANATION:

• Scientists at the BSIP, an autonomous institution of the Department of Science and Technology (DST), used Ensemble species distribution model to study the past and current state of two mangrove species and predict their future.
• They found significant reduction and landward shift of mangroves in the future (2070) due to decline in suitable habitats, specifically along the east and west coast of India in response to precipitation and sea level changes in the future.
• In contrast, the maximum range expansion of the mangroves was mapped in the past, which was validated by fossil pollen data.
• The findings would be useful in the implementation of mitigation and adaptation strategies in the identified hotspots for conserving the coastal wetlands and reducing the impact of climate change on the coastal vegetation along the Indian coastline.
• The Indian coastline is vulnerable to the impact of climate and sea level changes, and there is not much attempt for the coastal wetland species prediction and management, with limited research carried out for their future habitat mapping.
• To fill this gap, this study tried to project the potential impact of climate change on mangroves as coastal wetland species.
• The study suggests that establishing effective buffer zones in these conserved areas can narrow down the effect of non-conservative areas on the core conservative zone, and adopting preventive measures can turn some areas into highly suitable regions for facilitating the growth of these mangrove species.

Value Addition:

• Mangroves are woody plants, forming the only tall tree forests in the world, ably located between land and sea in tropical and warm temperate coasts. Mangroves are specially adapted to harsh environment, where no other plant species can survive.
• Mangroves represent a characteristic littoral (near the seashore) forest ecosystem.
• These are mostly evergreen forests that grow in sheltered low-lying coasts, estuaries, mudflats, tidal creeks backwaters (coastal waters held back on land), marshes, and lagoons of tropical and subtropical regions.
• Mangroves are the only ‘blue carbon’ forests of the ocean, and are also known as ‘Coastal woodland’, ‘Oceanic rainforest’ and ‘Tidal forest.
• Mangrove forests are ecologically significant and economically important. They provide ecosystem services worth at least US$ 1.6 billion each year and support coastal livelihoods worldwide . They serve as the nursery, feeding and breeding grounds for crabs, prawns, mollusks, finfish, birds, reptiles and mammals. A large amount of global fish catches (up to 80%) is dependent on mangroves, thereby ensuring the food security of coastal people.

Mangroves in India

4. LONG-TERM LOW EMISSION DEVELOPMENT STRATEGY

THE CONTEXT: India recently submitted its Long-Term Low Emission Development Strategy to the United Nations Framework Convention on Climate Change (UNFCCC), during the 27th Conference of Parties (COP27).

THE EXPLANATION:

The salient features of the strategy are:

• The focus will be on the rational utilization of national resources with due regard to energy security. The transitions from fossil fuels will be undertaken in a just, smooth, sustainable and all-inclusive manner.
• The National Hydrogen Mission launched in 2021 aims to make India a green hydrogen hub.
• Increased use of biofuels, especially ethanol blending in petrol, the drive to increase electric vehicle penetration, and the increased use of green hydrogen fuel are expected to drive the low carbon development of the transport sector.
• Smart city initiatives, integrated planning of cities for mainstreaming adaptation and enhancing energy and resource efficiency, effective green building codes and rapid developments in innovative solid and liquid waste management.
• Improving energy efficiency by the Perform, Achieve and Trade (PAT) scheme, National Hydrogen Mission, high level of electrification in all relevant processes and activities, enhancing material efficiency and recycling leading to expansion of circular economy, and exploring options for hard-to-abate sectors, such as steel, cement, aluminium and others.
• India is on track to fulfilling its NDC commitment of 5 to 3 billion tonnes of additional carbon sequestration in forest and tree cover by 2030.
• Provision of climate finance by developed countries will play a very significant role and needs to be considerably enhanced.

India’s approach is based on the following four key considerations that underpin its long-term low-carbon development strategy:

• India has contributed little to global warming, its historical contribution to cumulative global GHG emissions being minuscule despite having a share of ~17% of the world’s population.
• India has significant energy needs for development.
• India is committed to pursuing low-carbon strategies for development and is actively pursuing them, as per national circumstances
• India needs to build climate resilience.

The two themes of “climate justice” and “sustainable lifestyles”, alongside the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), in the light of national circumstances, that India had emphasized at Paris, are at the heart of a low-carbon, low-emissions future.

5. ATOMIC ENERGY, HYDROGEN POWER INDIA’S NET ZERO PLAN

THE CONTEXT: Recently, India announced its long-term strategy to transition to a “low emissions” pathway at the United Nations Conference of Parties (COP) ongoing in Sharm el-Sheikh, Egypt.

THE EXPLANATION:

LT-LEDS (Long Term-Low Emission Development Strategy):

• At the ongoing COP27, India announced its long-term strategy to transition to a “low emissions” pathway i.e. LT-LEDS.
• The LT-LEDS is a commitment document which every signatory to the Paris Agreement (2015) is obliged to make by 2022.
• So far, only 57 countries (including India) have submitted their document.
• India’s strategy is mainly based on expanding India’s nuclear power capacity by at least three-fold in the next decade, apart from becoming an international hub for producing green hydrogen and increasing the proportion of ethanol in petrol.
• This strategy is in line with India’s goal of being carbon neutral by 2070 — a commitment made by Prime Minister Narendra Modi at Glasgow, UK where the 26th COP was held last year.

India’s LT-LEDS includes

Mode of Transportation –

• India “aspires” to maximise the use of electric vehicles, with ethanol blending to reach 20% by 2025 (it is currently 10%).

India also aims for a “strong shift” to public transport for passenger and freight traffic.

Carbon Sequestration –

• India will also focus on improving energy efficiency by the Perform, Achieve and Trade (PAT) scheme, the National Hydrogen Mission, increasing electrification, enhancing material efficiency, and recycling and ways to reduce emissions.
• India’s forest and tree cover are a net carbon sink absorbing 15% of CO2 emissions in 2016.
• The country is on track to fulfilling its Nationally Determined Contributions (NDC) commitment of 2.5 to 3 billion tonnes of additional carbon sequestration in forest and tree cover by 2030.

On Climate Finance –

• The document underlined that this transition entailed costs ranging in “trillion dollars” that the developed countries, responsible for the existing carbon accumulation, ought to be making good.
• The document says that provision of climate finance by developed countries will play a very significant role and needs to be considerably enhanced, in the form of grants and concessional loans.

VALUE ADDITION:
About COP27:

• The 27th session of the Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change (UNFCCC) is currently being held in Sharm El Sheikh, Egypt.
• The COP is the supreme decision-making body of the Convention.
• The climate change process revolves around the annual sessions of the COP.
• It meets every year, unless the parties decide otherwise.
• The next conference of parties i.e. COP28 will be held in Dubai, UAE in November, 2023.

PRELIMS PERSPECTIVE

6. ILLEGAL, UNREPORTED AND UNREGULATED (IUU) FISHING

THE CONTEXT: According to Indian Navy, as many as 392 reported incidents of illegal, unreported and unregulated fishing were monitored in 2021 compared to 379 in 2020 in the Indian Ocean.

THE EXPLANATION:

• Illegal, unreported and unregulated (IUU) fishing continues to rise beyond India’s Exclusive Economic Zone (EEZ).
• Chinese fishing vessels, fishing vessels from European Union countries and other countries from outside the region were observed to be fishing in the Indian Ocean.
• Chinese deep sea trawlers have been a matter of concern for countries in the region, including India, as they are operating far from the Chinese coast and impacting local marine ecology.
• Most of the illegal activity is found in the Northern Indian Ocean Region (IOR).

IUU fishing:

IUU fishing depletes fish stocks, destroys marine habitats, puts fishermen at disadvantage and impacts coastal communities, especially in developing countries.

Information Management and Analysis Centre (IMAC):

• The presence of extra-regional distant water fishing fleets has been monitored by Information Management and Analysis Centre (IMAC).
• The Quad, comprising India, Australia, Japan and U.S., in May 2022 announced a major regional regional effort under the ambit of Indo-Pacific Maritime Domain Awareness (IPMDA).
• It aims to provide a more accurate maritime picture of “near-real-time” activities in the region.
• It is expected to catalyse joint efforts of India and other Quad partners towards addressing IUU in Indo-Pacific region.
• All vessel movements on the high seas are monitored by the Indian Navy’s IMAC in Gurugram and the Information Fusion Centre-Indian Ocean Region (IFC-IOR) which is co-located with it.
• IFC-IOR has been collaborating with other regional monitoring centres across the globe to enhance maritime safety and security, including efforts to monitor IUU.

Regional fisheries management organisations:

• As per United Nations Convention on the Law of the Sea (UNCLOS), coastal nations are responsible for addressing IUU fishing issues within their respective EEZ.
• There are regional fisheries management organisations such as the Indian Ocean Tuna Commission, Southern Indian Ocean Fisheries Agreement operating under the mandate of UNCLOS as regulatory bodies to monitor IUU fishing on the high seas.

Global Regulations:

There are two main regulations globally on IUU fishing:
1. the Cape Town Agreement and
2. the Agreement on Ports State Measures.

THE PRELIMS PRACTICE QUESTION

QUESTION OF THE DAY

Q1. Dover strait connects which of the following water bodies?
a) North Sea and Baltic Sea
b) English channel and North Sea
c) Atlantic Ocean and Mediterranean Sea
d) Mediterranean Sea and Black Sea

Answer: B
Explanation:
Please refer to the map-

[WpProQuiz 367]

THE CONTEXT: The recent farmer agitation has brought the issue of farmer distress front and centre in the public consciousness. The time seems ripe to find new solutions to the structural challenges facing farmers. One of the solution is to support farmers by Direct Income Support (DIS) but in recent time several reports highlighted that such schemes are facing many challenges. In this article, we will discuss that what should be the way forward for the effective implementation of these scheme.

INCOME SUPPORT SCHEME IN INDIA FOR FARMERS

• In agriculture, there are two major types of government support measures. The first one is price support measure and the second is income support measures.
• Price support means the government is procuring the agricultural produce from farmers at a remunerative price. India’s Minimum Support Price based procurement is a classic example of price support scheme.

DIRECT INCOME SUPPORT

• The second type of support is DIRECT INCOME SUPPORT (DIS).In this scheme,government transfers direct payment to the poor farmers.
• Under the WTO terminology, it is called Direct payments to farmers or Decoupled Income Support. Decoupled means such an income transfer to farmers will not influence (or minimum influence) production and price of the respective crops.

PM KISAN SAMMAN SAMMAN NIDHI

• The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is the first universal basic income-type of scheme targeted towards landed farmers.
• It was introduced in December 2018 to manage agricultural stress.

Initially, the scheme was targeted at small and medium landed farmers, but with the declining growth in gross value added of the agricultural sector, it was extended to all farmers in May 2019.

• This direct benefit transfer scheme was aimed at addressing the liquidity constraints of farmers in meeting their expenses for agricultural inputs and services.

Features of the scheme:

• Income support: The primary feature of this Yojana is the minimum income support it provides to farmers. Each eligible farmer family is entitled to receive Rs.6000 per annum across India. However, the amount is not disbursed at once. It’s divided into three equal instalments and meted out four months apart.
• Funding: PMKSNY is an Indian government-sponsored farmer support scheme. Therefore, the entirety of its funding comes from the Government of India.
• Identification responsibility: While the responsibility of funding lies with GOI, the identification of beneficiaries is not under its purview. Instead, it’s the responsibility of State and Union Territory governments.

BENEFITS OF DIRECT INCOME SUPPORT

Direct Income Supports’ ability to encourage farmers to raise production is less. At the same time, it has some positives:

• There is no leakage – income is transferred through DBT.
• There is protection for farmers against income loss and adverse terms of trade impact on agriculture.
• It is less distortionary and is WTO combatable; there is less influence on production and price.
• Farm income support is superior to price support as it is crop neutral. The farmer is getting reward for continuing with agriculture whatever may be the crop he is cultivating. On the other hand, India’s MSP historically, favored wheat and rice farmers as procurement was concentrated on these two crops.

PM KISAN AFTER TWO YEARS: A CRITICAL REVIEW

The PM KISAN scheme has completed two years (seven installments are released of the scheme) but facing several crises.  The scheme is a useful vehicle to provide support to farmers and it was included in the Pradhan Mantri Garib Kalyan Package during lockdown but, was this a useful way of relieving distress during the lockdown?  A survey by NCAER National Data Innovation Centre in June 2020 provides some useful insights in this regard:

Findings of the survey

• Lower level of economic distress among farmers than among other groups.
• While farmers faced some logistical challenges in transporting and selling their produce, 97 per cent of them continued to harvest Rabi crops and prepared for the Kharif season.
• Nearly 75 per cent of the cultivators who usually hire labourers for agricultural activities continued to do so.
• The farmers were relatively immune to the economic impact of the lockdown as nearly 32 per cent of them experienced a large income loss which is much lower compared to the proportion among casual wage workers and business households.
• The proportion of households that had to borrow to meet their day-to-day consumption needs during the lockdown was relatively low for the farmers.
• While 7 per cent of farm households suffered from occasional unavailability of food during the lockdown, this figure was much higher for casual workers and business households.

Performance of PM-KISAN during the Pandemic

• Only 21 per cent households received cash transfers through PM-KISAN.
• Around two-thirds reported receiving Rs 2,000 and about a fourth received Rs 4,000, possibly because family members engaged in agricultural activities may be co-residing within a household.
• About 35 per cent of rural PM-KISAN recipients suffered income losses to a large extent in comparison to more than half of the non-recipients.
• A little more than a third of PM-KISAN recipients borrowed money during this period as against 48 per cent of non-recipients.

WHAT ARE THE ISSUES WITH THE SCHEME AND WHY THE SCHEME IS NOT PERFORMING AS PER THE EXPECTATIONS?

Lack of DataBase

• The scheme was hurriedly announced right ahead of the 2018 elections and then the government did not have proper database of farmers.
• There are nearly 14.5 crore families in India but govt did not has proper database of these families. Many states like West Bengal, have delayed or did not submit the data related to farmers.

Difficulty in Identifying Beneficiary Farmers

• According to agricultural census of 2015-16, number of landholdings in the country was projected at Rs 14.65 crore. But landholding do not determine the number of farmer families present in the country as there are multiple owners for a single land. In such scenario, all the farmer families which own the land are eligible for the scheme.
• Number of landholdings in Punjab according to agricultural census were 10.39 lakh but number of beneficiaries’ farmers in PM-kisan database list were 17.52 lakh till October 23, 2019.
• It may happen that a single farmer holds multiple lands. The agricultural census may record multiple land holdings which PM-Kisan scheme would otherwise recognise as single farmer.

Census Issue

• Other problem includes the agricultural census that counts the number of operational landholdings. Which is the piece of land being used for cultivation without considering the title of land. Whereas PM-kisan scheme considers the farmer families recognised as land holders under the state or union territory.
• Further, around 14.3 crore landless farmers (census 2011) will not be able to avail this scheme. Mainly due to the fact they are not the land holders and are contract farmers.
• However, the government is trying to release fund to farmers by linking their account to Aadhaar card. Government extended the date to seed the adhaar account to November 30 2019.

Others

1. Intended Farm Households are not covered: PM-KISAN is not reaching all farmer households as intended as most of the farmers in UP, Haryana and Rajasthan own land and should be receiving benefits but only 21 per cent of the cultivators interviewed reported receiving the benefit.
2. Not a pro-poor scheme: it is not pro-poor since recipients of PM-KISAN seemed to be better off than the general rural population even before the lockdown.
3. Lack of digitized land records: In many States, land records are not updated regularly and therefore, there could be instances where the cultivating farmers would have partitioned their holdings from other family members, but would not have the records-of-right to claim the benefit instantly.
4. Overlapping of with other schemes: Various state governments have launched schemes with similar benefits such as Rythu Bandhu (Telangana), Annadata Sukhibhava (Andhra Pradesh), KALIA Scheme (Odisha) and Bhavantar Bhugtaan Yojana (Madhya Pradesh).

WHAT SHOULD BE THE WAY FORWARD?

Proactive role of Banks

• There are reports that after the loan waiver in Maharashtra or transfer of first instalment to the Bank accounts of farmers under KALIA scheme in Odisha, concerned bank branches adjusted the deposit money against past liabilities of few farmers.
• This kind of scenarios may lead to subversion of the objectives of the income support scheme, which is clearly intended to assist the farmers with some disposable cash for purchase of inputs.
• Banks involved in primary sector lending or disbursement of crop loans, etc need to be sensitized properly on their critical role in implementation of PM-KISAN.

Strengthening IT backbone

• Needless to say that States with robust computerized land records data base and a good IT infrastructure will be in a better position to implement PM-KISAN.
• With ICT usage and direct transfer of money to farmers’ bank accounts, pilferage would also be less.
• Farmers not having bank accounts should be encouraged to open ‘no-frills’ accounts under the Jan-Dhan Yojana. Linking Aadhaar data base will further strengthen the system and analytics later on from this big-data eco-system could assist decision making empirically.

Targeting benefits and updation of land records

• In many States, land records are not updated regularly and therefore, there could be instances where the cultivating farmers would have partitioned their holdings from other family members, but would not have the records-of-right to claim the benefit instantly.
• These kind of genuine cases need to be redressed by revenue authorities so that eligible cases are not deprived.
• Similarly, fraudulent claims should also be avoided. Involving the Gram Panchayats, wherever possible in targeting of beneficiaries may be explored.

LESSON FROM STATES POLICIES

• Odisha’s KALIA scheme offers some important lessons for the effective implementation of the scheme.
• Odisha used a three-step framework to identify beneficiaries. These are:
• Unification: The first step involved unifying state databases with “green forms” which were essentially applications from farmers who wanted to opt in.
• Verification: The second step involved verification of information through databases like the Socio-Economic Caste Census, National Food Security Act and other databases; de-duplication through Aadhaar; and bank account verification through bank databases.
• Exclusion: The third step involved excluding ineligible applicants like government employees, tax payers, large farmers, and those that voluntarily opted out.
• The use of technology and non-farm databases meant that KALIA could include sharecroppers, tenant and landless farmers as beneficiaries, which is a significant step towards inclusive agricultural policy-making.
• KALIA has now laid the foundation for a state-wide farmer database with 100 per cent Aadhaar, mobile number and financial address seeding. This database can be leveraged for targeted scheme delivery beyond DIS, issuing customised agri-advisories and improving financial access.

CONCLUSION: PM- KISAN is India’s first direct support scheme, which should be surely successful. But for this, govt of India should learn some important lessons from other sources like the KALIA scheme and for that technology can play a vital role. The potential of technology to transform social welfare delivery is exciting. An approach that leverages data to maximize citizen benefits, while ensuring privacy, security and access, must be the way forward if we are to truly realize the power of digital to serve every Indian.

JUST ADD TO YOUR KNOWLEDGE

THE MSP AS A PRICE SUPPORT MEASURE

• WTO calls these subsidies as amber box subsidies that distorts trade. Such subsidies should be reduced as they may make a high cost producer a big produce and the country may export its produce.
• According to the WTO, a support (subsidy) by the government that influences production and price is trade distorting and it should be reduced.

PM-KISAN (DIRECT INCOME SUPPORT)

• In this case; the government will be giving direct payment to the farmers for their low income from farming.
• Under the WTO terminology, it is called Direct payments to farmers or Decoupled Income Support.
• Decoupled means such an income transfer to farmers will not influence production and price of the respective croops.
• Under Agreement on Agriculture (WTO), the direct payment to farmers comes under the Green Box.
• The Green Box subsidies can be given by a government or in other words they need not be reduced.

INTERNATIONAL RELATIONS

1. INDIA TO HOST “NO MONEY FOR TERROR” CONFERENCE

THE CONTEXT: The 3rd Ministerial “No Money for Terror” Conference will set to be held on November 18 and 19 this year in New Delhi, India.

THE EXPLANATION:

What is the NMFT conference?

• The Ministerial No Money for Terror (NMFT) Conference aims to create platform for international discussions on countering terror financing.
• The conference includes discussions on technical, legal, regulatory and cooperative aspects of the terrorism financing.
• It aims to set pace for other high-level official and political discussions focusing on terror finance.
• The inaugural edition of this conference was held in Paris, France, in 2018. The second edition of the NMFT took place in Melbourne, Australia, in 2019.
• The third edition was set to take place in India in 2020 but was postponed because of COVID-19 pandemic that caused the global-level restrictions on travel.

3rd Ministerial ‘No Money for Terror’ Conference

• The third edition will be organized by the Ministry of Home Affairs.
• The event will witness participation from over 75 countries.
• This is the second major conference hosted by India this year.
• It earlier hosted the meeting of the United Nations Security Council’s Counter-Terrorism Committee (CTC). This is the first time that the UNSC CTC met in India and only seventh time that it was held outside New York.

What are the focus areas of the 3rd NMFT conference?

• Discussions at the 3rd NMFT conference will focus on global trends of terrorism and terrorist financing, emerging technologies’ role in terrorism financing and importance of global cooperation to address related challenges.
• The meeting will seek global cooperation in addressing the challenges in countering terror funding obtained via formal and informal channels.
• It will focus on the role of cryptocurrency in funding terrorist activities. It will deliberate on the concerns related the decentralized nature and the lack of regulation of cryptocurrencies.
• The focus will also be given to dark web’s role in promoting transfer or crowdsourcing of funds for terrorism.
• It also aims to strengthen the role of Financial Action Task Force (FATF) in setting global standards that can create an effective mechanism to combat terror funding.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

2. E-WASTE (MANAGEMENT) RULES, 2022

THE CONTEXT: The Indian Government issued notification on E-Waste (Management) Rules, 2022, which will come to effect from next financial year.

THE EXPLANATION:

What is E-Waste (Management) Rules, 2022?

• The E-Waste (Management) Rules, 2022 was published by the Ministry of Environment, forest and climate change on November 2, 2022.
• They will apply to all businesses and individuals involved in manufacturing, sales, transfer, purchase, refurbishing, dismantling, recycling and processing of e-waste or electrical and electronic equipment.
• Under the new rules, the number of items that have been categorized as e-waste has been increased from 21 to 106.
• It includes all electrical devices and radiotherapy equipment, nuclear medicine equipment and accessories, Magnetic Resonance Imaging (MRI), electric toys, air conditioners, microwaves, tablets, washing machine, refrigerator, iPad and others.
• This includes electronic components, consumables, parts and spares that make the electronic products operational.
• The new rules are not applicable for waste batteries, which are covered under the Battery Waste Management Rules, 2022.
• It is also not applicable for packaging plastics, which are covered under the Plastic Waste Management Rules, 2016.
• It also does not apply for micro enterprises and radio-active wastes, which are covered under the Micro, Small and Medium Enterprises Development Act, 2006 and Atomic Energy Act, 1962 respectively.

What are the key features of the rules?

• The rules restrict the use of hazardous substances for manufacturing electrical and electronic equipment. This comes in response to the deaths caused by exposure to radioactive materials.
• Manufacturers of electronic equipment are mandated to reduce the use of lead, mercury, cadmium and other others that can harm human health and environment.
• These materials can adversely affect brain, heart, liver, kidneys and skeletal system. It also causes harmful effects on neurological and reproductive systems.
• Under the new rules, the Central Pollution Control Board (CPCB) will conduct random sampling of electrical and electronic equipment placed in the market to monitor and verify compliance of reduced use of hazardous substances.
• Manufacturers are required to use technologies and methods that make the end product recyclable. They are also required to ensure the compatibility of components or parts developed by different manufacturers. This will minimise the generation of e-wastes.
• Imports or sales of new electrical and electronic equipment are allowed only if they comply with the government regulations. If the product does not comply with the rules, the manufacturer must withdraw all samples from the market.
• It is the responsibility of the manufacturer to collect e-wastes generated during the manufacturing process and ensure that they are recycled or disposed as per the rules.

3. THE GLOBAL CARBON BUDGET 2022

THE CONTEXT: The Global Climate Budget 2022, released at The 2022 United Nations Climate Change Conference or COP27, indicates that India will record a higher rise in carbon emissions this year than other major countries.

THE EXPLANATION:

What are the key findings of the Global Carbon Budget, 2022?

• The global carbon emissions are expected to reach 40.6 billion tonnes of carbon dioxide into the atmosphere in 2022.
• This projection is close to the highest-ever annual total of 40.9 billion tonnes of CO2 emitted in 2019.
• There is no sign of carbon emission decline required for limiting the global warming to 1.5 degree Celsius.
• If the current emission levels continue, there is a 50 per change that the warming of 1.5°C exceed in the next 9 years.
• Record level droughts, wildfires and flooding across is world is caused because the Earth’s global surface temperature has risen by around 1.1°C when compared with the average in pre-industrial levels.
• In 2021, China (31 per cent), the United States (14 per cent) and the European Union (8 per cent) are the major contributors of the global carbon emissions. India accounted to 7 per cent of the global carbon emissions.
• The report estimates a decrease in the carbon emissions in 2022 in China (0.9 percent) and the EU (0.8 per cent). However, there will be a 1.5 per cent increase in the US and a 6 per cent increase in India.
• India is expected to witness the highest increase in carbon emissions in the world in 2022 when compared with the previous year. The United States is estimated to record the second-highest increase in the carbon emissions.
• The 2022 carbon emissions will increase in India due to coal emissions (5% increase) and oil emissions (10% increase). This returns the carbon emission back to the 2019 levels. The country is already responsible for around a twelfth of global emissions. It is ranked third globally in terms of gross emission volume and ranked very low in per capita emissions.

ECONOMIC DEVELOPMENTS

4. AMENDMENT IN ELECTORAL BONDS SCHEME

THE CONTEXT: The Government of India has approved the issuance of the 23rd tranche of electoral bonds for sale from November 9-15 following an amendment.

THE EXPLANATION:

• According to the finance ministry, State Bank of India (SBI) has been authorised to issue and encash electoral bonds through 29 of its authorised branches, which would be valid for 15 days from the date of issuance.
• As per the law, no payment would be made to any political party if the bond is deposited after expiry of the validity period.

What are the changes made in the scheme?

• The Union Finance Ministry issued a notification amending the Electoral Bonds Scheme to allow the sale of electoral bonds for extra 15 days in the year of general elections to the Legislative Assembly of States and UTs with legislature.
• The notification allows the Central Government to open additional one-week window for issuing electoral bond starting from November 9, 2022.
• Prior to this notification, these bonds can be bought by any individual in a period of 10 days each in the months of January, April, July and October as specified by the Central Government.
• Since assembly elections to various states and union territories are held each year, the amendment allows additional 15 days of bond sales annually.
• The changes came days before the Himachal Pradesh Assembly Elections (November 12) and weeks before Gujarat assembly elections that are set to be held in early December 2022.

Value Addition:

What are electoral bonds?

• The Electoral Bonds Scheme was launched in 2018 to provide an alternative for cash donations to political parties. Electoral bonds are financial instruments through which anyone can donate money to political parties.
• The electoral bonds can be bought by donors from authorized branches of the State Bank of India using cheque or a digital mechanism. The donor can give these bonds to the political party or parties of their choice. The political parties can choose to encash electoral bonds within 15 days of receiving them and fund their electoral expenses. This retains the anonymity of the donor while also ensuring transparency.
• Bonds are issued only to those political parties that are registered under Section 29A of the Representation of the People Act, 1951 and those that secured not less than 1 per cent of votes polled in the last General Elections to the Lok Sabha or the Legislative Assembly of the State.

5. BHIM APP OPEN-SOURCE LICENSE MODEL

THE CONTEXT: Recently, the BHIM App open-source license model was announced by the National Payments Corporation of India (NPCI).

THE EXPLANATION:

What is BHIM App open-source license model?

• Under the BHIM App open-source license model, regulated entities in the UPI ecosystem can get license for accessing source code of the BHIM app. New features that will be included in the application in the future can also be accessed by these licensees.

Why was open-source license model launched?

• Currently, many banks do not have their own mobile banking applications. Therefore, they are unable to provide the benefits of UPI to their customer base. The NPCI aims to address this gap by providing readily available features of UPI to these banks via the BHIM App licensing model. It will act as an economic and quick-to-market solution for these entities.
• The BHIM licensing model will empower the banking entities to provide benefits of the UPI to their customer base with a readily-available UPI application. This will minimise time, efforts and costs incurred for promoting the UPI based transactions.

What is Unified Payments Interface (UPI)?

• Unified Payments Interface (UPI) is an instant real-time payment system that is used on mobile devices to instantly transfer money between two bank accounts. It was developed by the NPCI. The UPI enabled 45.6 billion transactions during Financial Year 2022. It is currently one of the most prominent forms of digital payments in India.
• The NPCI International Payments Ltd (NIPL) – the international arm of the NPCI – announced that the BHIM UPI is live at NEOPAY terminals in the United Arab Emirates. This enables millions of Indians traveling to the UAE to make payments using BHIM UPI. This feat was achieved after NIPL and NEOPAY (payment subsidiary of Mashreq bank) collaborated to create the acceptance infrastructure in the UAE. It allows Indian tourists to make UPI transactions across NEOPAY enabled shops and merchant stores.

VALUE ADDITION:

National Payments Corporation of India (NPCI)

• National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
• Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.

GOVERNMENT SCHEMES AND INTERVENTIONS

6. INDIAN BIOLOGICAL DATA CENTER (IBDC)

THE CONTEXT: Union Minister of state for Science and Technology recently dedicated Indian Biological Data Center (IBDC) to the nation.

THE EXPLANATION:

• The Indian Biological Data Center is India’s first national repository for life science data.
• It will store all life science data generated from publicly funded research in the country.
• It operates with the assistance from the Department of Biotechnology (DBT).
• In long-term, IBDC seeks to become a major data repository for all life science data originating from India.
• It was established at the Regional Centre of Biotechnology (RCB) in Faridabad, Haryana. It has a data “disaster recovery” site in National Informatics Centre (NIC) in Bhubaneshwar.
• It has a data storage capacity of around 4 petabytes.
• It hosts the ‘Brahm’ High Performance Computing (HPC) facility.

What are its objectives?

The objectives of IBDC are:
1. Provide IT platform for archiving of biological data originating from India.
2. Develop standard operating procedures for storing and sharing of life sciences data based on FAIR (Findable, Accessible, Interoperable and Reusable) principle.
3. Perform quality control and curation of data, maintain data backup and manage data life cycle.
4. Develop web-based tools/APIs for data sharing or retrieval
5. Organize training programme for analysing of large data and create awareness about the benefits of data sharing.

What are the current tasks of the IBDC?

• Since life science data is highly complex and heterogeneous, IDBC is being developed in a modular fashion. This means that different sections deal with different types of data sets. Therefore, the IBDC had initiated nucleotide data submission services via two different data portals – the Indian Nucleotide Data Archive (INDA) and the Indian Nucleotide Data Archive – Controlled Access (INDA-CA).
• The IBDC also hosts an online “Dashboard” to archive the genomic surveillance data generated by the INSACOG labs. This online dashboard facilitates customized data submission, access, data analysis, surveillance and real-time monitoring of SARS-CoV-2 variants across India.
• The computational infrastructure at the IBDC can be accessed by interested researchers who are involved in computational-intensive analysis. The IBDC will also conduct frequent workshops and orientations to help users submit the data they collected.

1. In EWS verdict, a discrimination antithetical to equality READ MORE
2. The curious case of EWS READ MORE
3. Welcome move for transparency READ MORE
4. Need for Electoral Reforms (Part I) READ MORE

1. Is freedom from karma possible? READ MORE
2. Education that helps uncover hidden potential READ MORE
3. Why is it so difficult to forgive? READ MORE
4. THE ART OF PROBLEM SOLVING AND ITS USES READ MORE

1. Preserving the precious: On ground water use READ MORE
2. Mangrove Alliance READ MORE
3. Explainer: Reducing pollution in North India will require more than a curb on farm stubble burning READ MORE

1. Identifying SCs among Dalit Muslims, Christians challenging. Lack of data biggest roadblock READ MORE
2. Equality in marriage: Legal age for both men, women should be 18 years READ MORE
3. Education sans employability READ MORE  
4. GHI oversimplifies, magnifies hunger; is misguided READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Former CJI Lalit defends Collegium system: ‘Perfect the way it stands today’ READ MORE
2. S. President Joe Biden to seek red lines in talks with Xi Jinping READ MORE
3. Jharkhand wants new quota Bill placed in Ninth Schedule: What this section of Constitution is READ MORE
4. A satellite data system will help detect, act on methane emissions READ MORE
5. Cameroon can set path to climate-resilient economy with prompt reforms: World Bank READ MORE
6. Reliance to build India’s first multimodal logistics park in Chennai READ MORE
7. Vikram-S: India’s first private rocket all set for launch tomorrow READ MORE
8. Everyday Explained: What is ASEAN, the 10-member grouping of Southeast Asian nations? READ MORE

Main Exam

GS Paper- 1

1. Identifying SCs among Dalit Muslims, Christians challenging. Lack of data biggest roadblock READ MORE
2. Equality in marriage: Legal age for both men, women should be 18 years READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. In EWS verdict, a discrimination antithetical to equality READ MORE
2. The curious case of EWS READ MORE
3. Welcome move for transparency READ MORE
4. Need for Electoral Reforms (Part I) READ MORE

SOCIAL ISSUES

1. Education sans employability READ MORE  
2. GHI oversimplifies, magnifies hunger; is misguided READ MORE

INTERNATIONAL ISSUES

1. India-Russia bonhomie: Delhi prioritising national interests amid US pressure READ MORE
2. The US-led global order is tottering. It is India’s time to shine as a balancing ‘third pole’ READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Importance of agri exports — and what Govt can do to boost India’s farm trade surplus READ MORE
2. Why India cannot afford to ignore the GM crop revolution READ MORE
3. Grey areas. GM mustard, not a great idea READ MORE
4. Inland waterways will reshape transportation READ MORE

ENVIRONMENT AND ECOLOGY

1. Preserving the precious: On ground water use READ MORE
2. Mangrove Alliance READ MORE
3. Explainer: Reducing pollution in North India will require more than a curb on farm stubble burning READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Is freedom from karma possible? READ MORE
2. Education that helps uncover hidden potential READ MORE
3. Why is it so difficult to forgive? READ MORE
4. THE ART OF PROBLEM SOLVING AND ITS USES READ MORE

Questions for the MAIN exam

1. ‘The EWS quota is unfair because it twists the idea of social justice by bequeathing further privilege to communities who are historically situated to benefit from the caste system’. How far do you agree with this view? Analyse your views.
2. ‘The agriculture of tomorrow is going to be science-based, and the winners will be those who adopt it and develop it further today’. In the light of this statement, discuss whether India should start genetically modified cropping?
3. ‘The US is welcome to cement its partnership with India in various sectors, but it is well advised not to dictate terms to the latter with regard to Russia’. Comment on the statement in the light of recent developments in International politics.

QUOTATIONS AND CAPTIONS

• Don’t confuse visibility with credibility.
• The Supreme Court’s judgment upholding the 103rd Amendment which introduced 10% reservation for EWS to the Constitution seeks to undo the existing logic of affirmative action.
• The EWS quota is unfair because it twists the idea of social justice by bequeathing further privilege to communities who are historically situated to benefit from the caste system.
• While water remains a politically contentious subject in India, the climate crisis should inspire consensus across the political spectrum on disincentivising wasteful consumption of this precious resource.
• The agriculture of tomorrow is going to be science-based, and the winners will be those who adopt it and develop it further today.
• With India’s burgeoning population and increasing traffic, the development of inland waterways will not only reduce travel time but ensure a seamless journey for people and goods.
• India has rightly gone all out to safeguard its interests rather than toeing the line of western powers during the ongoing energy crisis.
• The US is welcome to cement its partnership with India in various sectors, but it is well advised not to dictate terms to the latter with regard to Russia.
• In order to keep the high office of the Governor insulated from unnecessary public controversies, both Punchhi and Sarkaria Commissions had recommended that the Governors should not be burdened with the positions and powers which were beyond their constitutional domain.
• ‘We have fought for social justice. We have fought for economic justice… Now we must  fight for electoral justice’- Barbara Boxer

50-WORD TALK

• The Supreme Court’s acquittal of three men sentenced to death for the rape and murder of a Delhi woman puts India’s criminal justice system in the dock. Ever-tougher laws won’t compensate for incompetent police and dysfunctional courts. Political leaders must acknowledge responsibility, and rebuild these slothful pillars of our republic.
• Most political parties can’t afford to criticise the Supreme Court’s 3:2 verdict upholding EWS quota. Therein lies the problem with this hot-button issue. The minority view by two judges, including the outgoing CJI UU Lalit, gives much fodder and can become the subject of another round of litigation in review.

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 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 366]

[WpProQuiz 365]

THE CONTEXT: In June 2021, the Group of Seven (G7) major developed economies held their first in-person summit since 2019 in Cornwall, UK. The discussion focused on addressing the Covid-19 crisis, climate change, global taxation, etc. This article analyses the tax-related outcome in detail.

GLOBAL MINIMUM TAX

• The June 4-5 agreement between the G7 Finance Ministers to plug the cross-border tax loopholes used by the giant multinational companies (MNCs) to evade taxes has immense potential to reform and revolutionize the global tax system.
• The reform blueprint is based on two pillars:
• To distribute the profits equitably among countries where these are generated, enabling them to tax such profits
• Adoption of a minimum corporate tax rate of at least 15 percent globally.

The G7 proposal

• Besides proposing a global minimum tax rate of 15 percent, the G7 communique states that multinational companies, which have a 10 percent profit margin, will be taxed on at least 20 percent of the profits which exceed this figure, in countries where they operate.
• It underlines that for the new tax system to take effect, countries like India, which charges a two percent equalization levy on digital companies, will have to abolish their existing taxes on digital services.

WHY THE MOVE

• Using a tax avoidance strategy called Base Erosion and Profit Shifting (BEPS), MNCs have been artificially ‘shifting’ their profits year after year from higher-tax jurisdictions to tax-havens where they pay little or no tax, thus ‘eroding’ the ‘tax bases of the former.
• Countries like Ireland, Luxembourg, Cyprus, Caribbean countries like the British Virgin Islands, Bahamas or Cayman Islands, and Central American countries like Panama have used their tax rate arbitrage to attract the MNCs- About 40 percent of MNCs’ overseas profits are estimated to be shifted to low-tax countries in this way.

LOSS DUE TO PRESENT RULING

• The tax losses are stupendous – estimated to be $50 billion for the USA and over $10 billion for India.
• A global minimum tax rate of 15 percent would preclude countries from undercutting each other, yielding an estimated $50 billion $80 billion in extra tax annually from the MNCs.

RESENT TAX RATES

• The US tax rate was cut down to 21 percent from 35 percent by then President Donald Trump in 2017, which his successor Joe Biden now proposes to increase to 28 percent.
• The average OECD corporate tax rate in 2020 was 21.5 percent, with 18 out of 37 members charging higher rates. Only three countries charge rates lower than 15 percent: Ireland (12.5 percent), Hungary (eight percent), and Switzerland (8.5 percent).
• The average tax rate for Asian countries is around 23 percent; while China and South Korea charge 25 percent, Singapore charges only a 17 percent rate.
• In 2019, India also sharply reduced its corporate tax rates to 22 percent for domestic companies (15 percent for new manufacturing companies) without any deductions, aligning its corporate tax rate to global standards.

WHAT WILL CHANGE AFTER NEW TAX SLABS?

• It can bring to an end the decades-long “race to the bottom” in which some countries compete with each to attract corporate giants with ultra-low tax rates and exemptions, depriving the governments of other countries where the MNCs reap most of their profits of billions of dollars in taxes.
• It will also bring to an end a very lucrative business model of these MNCs that park most of their profits in tax havens, bring to an end the golden era of the heavens themselves.
• The tech giants which operate remotely through digital mediums like Google, Amazon, Facebook, Apple, etc. would start feeling the pinch.

WHAT ARE THE INDIA’S CONCERNS?

SOVEREIGN ISSUE

• The G7 proposal interferes with India’s sovereign right to determine its tax policy. However, in today’s digitally interconnected world, such an approach is anachronistic.

INVESTMENT

• Countries such as Ireland, and Singapore have managed to position themselves as attractive investment destinations by offering low tax rates. This investment, in turn, helps them generate demand by efficiently utilizing resources and creating employment. The Indian government’s decision to slash corporate tax rates in 2019 is a tacit recognition of this larger economic impact of taxation.

TAX COLLECTION REDUCTION

• Since the economic reforms of 1991, the corporate tax rate in India has never come down below 22 percent for domestic companies.
• The tax cuts in 2019 are expected to cost the Indian exchequer Rs 1.45 lakh crore annually. Therefore, the likelihood of the Indian government further reducing the corporate tax rate appears slim as it risks widening the fiscal deficit.

BUT IT CAN BE A GAME-CHANGER FOR INDIA

• The high tax rates in India have meant that corporations devise innovative structures to avoid paying their share. As per the Tax Justice Network, India loses out approximately $10 billion, which is about 0.41 percent of the GDP, on tax revenues annually. As a result, the already-stretched Indian tax administration is engaged in costly litigation with multinationals for decades.
• India is likely to gain in tax revenue on this account, given the size of its market and the growth opportunities it offers. The country has been at the forefront to legislate in her domestic tax laws the concept of ‘significant economic presence (SEP) to create the ability to levy tax on income generated in India (from Indian customers) by foreign digital commerce companies.
• A global minimum corporate tax rate of 15 percent is also expected to be beneficial to India. The Tax Justice Network estimates the country to gain at least $4bn (Rs 300 bn), equivalent to ~6 percent of FY21 corporate tax collections.
• Besides, it would not hurt FDI to India or create any adverse or incremental tax liability in the hands of foreign investors given that the minimum tax rate for new manufacturing business has recently been legislated at 15 percent (plus surcharges).
• At the same time, in respect of outbound investments, it will prevent base erosion of tax in the country as the government will be able to claw back any shortfall in tax paid below 15 percent by an overseas business owned by an Indian resident, once the global threshold rule becomes operational.

ABOUT THE SUMMIT

DATE OF SUMMIT

11-13 June 2021

PARTICIPATION

• Apart from seven G- 7 members (Including UK, USA, Canada, Germany, Japan, Italy, and France), This year the United Kingdom has invited the leaders of four other prominent democracies to the Summit, these are
• Australia
• India
• The Republic of Korea
• South Africa

MAJOR OUTCOMES OF THE SUMMIT

• Climate change: G7 nations are moving closer on their climate strategies, but differences over key details will prevent more concerted action for now.
• Building back better, and greener: G7 countries will channel more international development finance into infrastructure and climate change projects, but they refused to label the initiative as a direct rival to China’s Belt and Road Initiative (BRI).
• Shifting approach towards China: The official communiqué directly mentioned competition with China for the first time—a notable shift from previous summits, although countries differ in their approach.
• Global Covid-19 vaccine rollout: G7 countries are ramping up their vaccine diplomacy efforts. G7 states have lost the public relations battle to China and Russia.
• Global tax agreement remains elusive: Leaders endorsed the 15% global minimum corporate tax plan.

INDIA AT THE SUMMIT

PM took part in two sessions of Summit: ‘Building Back Together—Open Societies and Economies’ and ‘Building Back Greener: Climate and Nature’.

Highlights of PM speech

• India is a natural ally for the G7 countries in defending the shared values from a host of threats stemming from authoritarianism, terrorism and violent extremism, disinformation, and economic coercion.
• Democracy and freedom were a part of India’s civilizations ethos.
• Need to ensure that cyberspace remains an avenue for advancing democratic values and not of subverting them.
• Developing countries need better access to climate finance and emphasized that the planet’s atmosphere, biodiversity, and oceans cannot be protected by countries acting in isolation.
• The planet’s atmosphere, biodiversity, and oceans cannot be protected by countries acting in silos and called for collective action on climate change.
• Indian Railways is committed to achieving Net Zero Emissions by 2030.
• India is the only G-20 country on track to meet its Paris commitments.
• India is increasing the effectiveness of the two major global initiatives nurtured by India i.e. the CDRI and the International Solar Alliance.
• Developing countries need better access to climate finance.
• India’s ‘whole of society’ approach to fighting the pandemic, and also committed support to improve global health governance.

AN ANALYSIS OF THE SUMMIT

ON COVID AND VACCINATION

Positives

• On Covid-19, G7 is right to focus on vaccinating the world. After all, it is now conventional wisdom that no one is safe until everyone is safe.

Negatives

G7 ignores the three immediate actions recommended

1. One billion vaccine doses by September 2021 and two billion doses by end of 2022;
2. Waiving intellectual property rights (IPR)
3. Committing 60% of the $19 billion required for Access to Covid-19 Tools (Act) Accelerator in 2021 for vaccines, therapeutics, diagnostics, and strengthening of health systems.

G7 falls short significantly on all three counts.

• By providing for a paltry one billion vaccine doses over the next year, G7 has effectively indicated that even by the end of 2022, not everyone on this planet will be vaccinated.

ON CLIMATE

• On climate, the question was not whether G7 countries would commit to net zero emissions by 2050. That was the basic minimum that they were expected to do, and which they have done.
• The real question related to climate finance is how will the world’s richest countries meet their Paris Accord commitment of $100 billion every year to finance the energy transition of developing and least developed countries?
• Here again, the communique comes up with the vaguest of language, referring to increasing and improving climate finance to 2025 and reaffirming the developed country’s goal to mobilize $100 billion.

ON CHINA

• While G7 wish to cooperate with China on issues such as climate but called for respect to respect human rights in Xinjiang and autonomy for Hong Kong. Taiwan also gets a mention for the first time.
• G7 has made a valiant attempt to counter the Belt Road Initiative with its Build Back Better for the World (B3W) plan.
• The biggest signal for China is the “Open Societies Statement” signed by G7 and guest countries.
• The statement spells out the unconditional commitment of these countries to human rights for all, democracy, social inclusion, gender equality, freedom of expression, and rule of law.
• This is a welcome move and is perhaps the best sign that democracies can unite based on these universal values.

HOW SHOULD INDIA READ THE G7 SUMMIT?

A TEMPLATE FOR INDIAN ENGAGEMENT WITH THE WEST

• PM Narendra Modi’s statement that India is a natural ally of G7, with an emphasis on its civilizational commitment to democracy, freedom of thought, and liberty, will be welcomed by India’s friends all over the world.
• The PM’s statement should put these doubts about India’s commitment to rest.

ON CLIMATE

• On climate finance, India has a mountain to climb.
• India will come under pressure at the COP 26 meeting in Glasgow to commit to net-zero emissions by 2050.
• Not just this, the communique appears to endorse the idea of “carbon leakage” and hence gives implicit approval to the European Union’s idea of a carbon border tax. This is particularly unwelcome for India.

FAIRTRADE AND FREE TRADE

• The communique harps on “fair trade” much more than it does on “free trade”.
• Fairtrade, by definition, stresses labor and environmental standards and the communique says as much. How these will be implemented without resort to protectionism remains to be seen.
• Similarly, G7 endorses plurilateral initiatives at the World Trade Organization, something India hitherto has studiously avoided. Things will come to a head at the 12th Ministerial Conference of the WTO in December.

WAY FORWARD:

• The Indian government would do well to engage with the multilateral ecosystem to ensure that future multilateral rules do not disadvantage developing economies, instead of outrightly rejecting them.
• India should focus on capacity building and timely resolution of disputes.
• A minimum global tax rate would disincentives corporations to artificially shift their profits to low-tax jurisdictions. It will also reverse the trend of offshore incorporation in Indian entities by eliminating tax arbitrage. The Indian government can consider suggesting carve-outs to the proposal that can mitigate any unintentional adverse impact.
• India’s 2022-23 presidency of the G20 presents an opportunity for the country to articulate a forward-looking vision for fair and comprehensive global tax rules.

CONCLUSION: India’s engagement with the west and the recent tax proposal by G7 is the opportunity for India to overcome the challenge that occurred after Covid-19. Although, India’s concerns are justified, surely, the global minimum tax would be a game-changer for countries like India. The proposal indicates a political momentum and a desire to fast-track structural taxation reforms that could improve India’s economic competitiveness and lower jurisdictional tax arbitrage.

POLITY AND CONSTITUTION

UNITED NATIONS HUMAN RIGHTS COUNCIL

THE CONTEXT: Recently, the Solicitor-General at the Human Rights Council (HRC) in Geneva stated that India appreciates the role of human rights defenders, journalists and activists in the democratic system but the activities of these groups and individuals should be in conformity with the law of the land.

THE EXPLANATION:

Starting the fourth cycle of the Universal Periodic Review of India at the HRC, Greece, the Netherlands and Vatican City called upon the Government of India to ensure freedom of religion and end discrimination against human rights defenders and religious minorities.

HIGHLIGHTS OF THE MEETING:

• The strongest comment on the freedom of religion came from Greece that called upon India to “ensure full implementation of freedom of religion”. Germany expressed concern about the rights situation in India and said, “Germany remains concerned about the rights of marginalised groups, especially religious minorities as well as women and girls.” Germany also said that the Foreign Contribution Regulation Act should not “unduly restrict” the “freedom of association” in India. The German representative called upon India to strengthen the National Human Rights Commission and said the discrimination against Dalits should end.
• Ireland recommended that the Foreign Contribution Regulation Act be applied in a transparent manner and that Indian States should “repeal” anti-conversion laws to ensure compliance to international human rights laws. The representative of South Korea also raised the issue of FCRA. Italy asked India to enable civil society organisations and freedom of expression and freedom of religion. “Take concrete measures to end violence against them (minorities)”.
• Lithuania called upon India to end restrictions on freedom of expression and civil society. Belgium which had submitted advance questions raised the issue of civil liberties in India and called for an end to restrictions on freedom of religion. Mauritius praised India for following the principle of vasudhaiva kutumbakam (the world is one family).
• Maldives thanked India for India’s support during the COVID-19 pandemic. The Marshall Islands expressed condolences for the victims of the Morbi bridge tragedy and called for an end to caste-based violence and violence against women. Mexico raised the National Register of Citizenship and called for measures that can reduce chances of stateless people. France and Montenegro called upon India to ratify the Convention against Torture.
• Nepal called for India to strengthen measures to end violence against women and end child marriage. Israel called upon India to end violence against women and create an enabling environment for transgender persons. Russia asked India to continue to take policies that will eradicate poverty and called for “responsible corporate behaviour”.

Connect the Dots: FCRA,  Vasudhaiva kutumbakam , National Register of Citizenship

VALUE ADDITION:

United Nations Human Rights Council

• The Human Rights Council is an inter-governmental body within the United Nations system made up of 47 States responsible for the promotion and protection of all human rights around the globe.

Functions:

• It is responsible for strengthening the promotion and protection of human rights around the world.
• It also addresses and makes recommendations on situations of human rights violations.
• It can discuss all thematic human rights issues and situations.
• The Council also works with the UN Special Procedures established by the former Commission on Human Rights, consisting of special rapporteurs, special representatives, independent experts, and working groups.
• Their work is to monitor, examine, advise and report on thematic issues or human rights situations in specific countries.

Tenure:

• The members serve for three years and are not eligible for immediate re-election after serving two consecutive terms.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

MANGROVE ALLIANCE FOR CLIMATE

THE CONTEXT: Amid the 27th Session of Conference of Parties (COP27), this year’s UN climate summit, the Mangrove Alliance for Climate (MAC) was launched with India as a partner.

THE EXPLANATION:

• The move, in line with India’s goal to increase its carbon sink, will see New Delhi collaborating with Sri Lanka, Indonesia and other countries to preserve and restore the mangrove forests in the region.
• Attending the event in Sharm El-Sheikh, Egypt, Union Minister for Environment Forest and Climate Change said that India is home to one of the largest remaining areas of mangroves in the world — the Sundarbans — and has years of expertise in restoration of mangrove cover that can be used to aid global measures in this direction.

The MAC

• An initiative led by the United Arab Emirates (UAE) and Indonesia, the Mangrove Alliance for Climate (MAC) includes India, Sri Lanka, Australia, Japan, and Spain. It seeks to educate and spread awareness worldwide on the role of mangroves in curbing global warming and its potential as a solution for climate change.
• UAE’s Minister of Climate Change and the Environment, while launching the alliance, said that her country intends to plant 3 million mangroves in the next two months, in keeping with UAE’s COP26 pledge of planting 100 million mangroves by 2030.

The significance of mangroves

• Mangroves have been the focus of conservationists for years and it is difficult to overstate their importance in the global climate context. Mangrove forests — consisting of trees and shrub that
• live in intertidal water in coastal areas — host diverse marine life. They also support a rich food web, with molluscs and algae-filled substrate acting as a breeding ground for small fish, mud crabs and shrimps, thus providing a livelihood to local artisanal fishers.
• Equally importantly, they act as effective carbon stores, holding up to four times the amount of carbon as other forested ecosystems. Mangrove forests capture vast amounts of carbon dioxide from the atmosphere and their preservation can both aid in removal of carbon from the atmosphere and prevent the release of the same upon their destruction

The current state of the mangroves

• South Asia houses some of the most extensive areas of mangroves globally, while Indonesia hosts one-fifth of the overall amount.
• India holds around 3 percent of South Asia’s mangrove population. Besides the Sundarbans in West Bengal, the Andamans region, the Kachchh and Jamnagar areas in Gujarat too have substantial mangrove cover.
• However, infrastructure projects — industrial expansion and building of roads and railways, and natural processes — shifting coastlines, coastal erosion and storms, have resulted in a significant decrease in mangrove habitats.
• Between 2010 and 2020, around 600 sq km of mangroves were lost of which more than 62% was due to direct human impacts, the Global Mangrove Alliance said in its 2022 report.

WHAT IS MEANT BY GREENWASHING?

THE CONTEXT: Recently the UN Secretary-General set up an expert group solely to look into Greenwashing as a practice is prevalent enough to create concerns over climate goals that were completely undermined and was considered as serious.

THE EXPLANATION:

What is greenwashing?

• Greenwashing is a term used to describe a false, misleading or untrue action or set of claims made by an organization about the positive impact that a company, product or service has on the environment.
• The term greenwashing was first coined in 1986 by environmentalist Jay Westerveld in an article where he decried the common practice of hotels asking guests to reuse towels to help conserve energy. Westerveld claimed that those same hotels did little to help the environment and that the towel request was an act of greenwashing.

NEW COLLECTIVE QUANTIFIED GOAL ON CLIMATE FINANCE (NCQG)

THE CONTEXT: Developing countries, including India, are pushing rich countries to agree to a new global climate finance target—also known as the new collective quantified goal on climate finance (NCQG)—which they say should be in trillions as the costs of addressing and adapting to climate change have grown.

THE EXPLANATION:

• At a high-level ministerial dialogue on NCQG at COP27, India highlighted that climate actions to meet the NDC targets require financial, technological, and capacity-building support from developed countries, people aware of the developments.
• According to the Indian delegation in the meeting, the ambitious goal set down by the developing countries requires substantive enhancement in climate finance from the floor of $100 billion per year. The mobilisation of the resource needs to be led by the developed countries and should be long-term, concessional, and climate-specific with equitable allocation between adaptation and mitigation projects.
• “The commitment of $100 billion made in 2009 by developed countries, was not only miniscule given the scale of needs, but has also not been achieved yet.
• According to data from the Organisation for Economic Co-operation and Development (OECD), an intergovernmental body consisting of wealthy nations, developed countries mobilised $52.5 billion in 2013.
• After dropping to $44.6 billion in 2015, the finance flow has steadily increased. In 2020, the developed countries raised $83.3 billion, a jump from $80.4 billion in 2019, according to a factsheet published by the Centre for Science and Environment.
• The Standing Committee on Finance has estimated that resources in the range of $6 trillion to $11 trillion are required till 2030 to meet the targets set by developing countries in their Nationally Determined Contributions (NDCs) and other communications including the Needs Determination Reports.
• NDCs are national plans to limit global temperature rise to well below two degrees Celsius, preferably to 1.5 degrees Celsius.

VALUE ADDITION:

Nationally Determined Contributions (NDCs): The Paris Agreement and NDCs

• The Paris Agreement requests each country to outline and communicate their post-2020 climate actions, known as their NDCs.
• Together, these climate actions determine whether the world achieves the long-term goals of the Paris Agreement and to reach global peaking of greenhouse gas (GHG) emissions as soon as possible and to undertake rapid reductions thereafter in accordance with best available science, so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of GHGs in the second half of this century.
• It is understood that the peaking of emissions will take longer for developing country Parties, and that emission reductions are undertaken on the basis of equity, and in the context of sustainable development and efforts to eradicate poverty, which are critical development priorities for many developing countries.

PRELIMS PERSPECTIVE

PLACES IN THE NEWS: KHERSON

THE CONTEXT: Recently Russia’s Defence Minister announced the withdrawal of the troops from Kherson to a new defensive line on the eastern bank of the Dnipro river.

THE EXPLANATION:

Where is Kherson and why is it important?

• Geographically, Kherson is a strategic location for Russia and Ukraine. Situated in the northwest of the Dnipro River, the province shares borders with Donetsk, Crimea and the Black Sea.
• With Moscow capturing Crimea in 2014, the occupation of Kherson in March 2022 has benefited Russia in transferring its military from Crimea to counter Ukraine. It provides access to Odesa and Black Sea ports in the west and serves as the main route to secure southern Ukraine.
• For Ukraine, regaining Kherson is significant to protect its population in Kalanchak and Chaplynka districts and also to recapture Crimea. Kherson is also an important region for its agricultural produce, with irrigation channels.

How did Kherson come under Russia’s control?

• In early March 2022, Kherson was captured by Russia through intense fighting. The battle of Kherson proved to be the starting point to capturing and occupying the southern part of Ukraine while the battles for Kharkiv and Kyiv in the north progressed.
• Russia’s hold over Kherson since March 2022 enabled Moscow to capture the key port cities — Mariupol in the Sea Azov, and Odesa, thus expanding control. Kherson’s irrigation canals were used as defence positions, creating a strong line preventing Ukraine’s counter-attacks. Russia also had positioned its soldiers in Kherson and stockpiled the ammunition.

Why has Moscow announced its withdrawal from Kherson?

• There are three reasons behind the move. First is the mobilisation failure. When Russia was advancing rapidly in capturing the southern and northern cities of Ukraine, its military personnel and weapon systems started to run thin.
• Secondly, the inability of Russia to govern Kherson. Despite imposing martial law, Russia could not effectively rule Kherson; the three-level security in the occupied areas could not enforce Russia’s control on the ground.
• Third, Ukraine’s expanding counter-offensive. Until August, Ukraine was supplied only with short-range and low-grade weapons by the West. Later, Ukrainian soldiers received military training; as Moscow continued its onslaught, the West upgraded its support with medium to high-range weapons systems such as the Howitzers, HIMARS, air defence systems, battle tanks and drone technologies. It came from the U.S., the U.K. and Germany, whereas Russia’s procurement was slow and limited to Shahed drones.
• This helped Ukraine recapture Russian-occupied areas including Izyum, northeast, southeast of Kharkiv, Izyum-Slovyansk, Kupiansk in Eastern Ukraine, and northwest Kherson in the south. On the other hand, Russia has been facing challenges in augmenting its military hardware on the battleground.

THE RIVER: DNIEPER

The Dnieper or Dnipro is one of the major transboundary rivers of Europe, rising in the Valdai Hills near Smolensk, Russia, before flowing through Belarus and Ukraine to the Black Sea. It is the longest river of Ukraine and Belarus and the fourth-longest river in Europe, after the Volga, Danube, and Ural rivers.

ARMISTICE DAY: 11^th NOVEMBER

THE CONTEXT: Armistice Day, also known as Remembrance Day or Poppy Day. It is marked on 11 November annually, remembering those who died in World War I. Marking the end of the Great War.

THE EXPLANATION:

• Armistice Day also remembers all those who sacrificed their lives in the First World War and other conflicts that followed it. In the four-year-long gruesome war, millions sacrificed their lives, including more than 74,000 Indian soldiers.
• The first Great War ended ‘at the eleventh hour of the eleventh day of the eleventh month’, and therefore Remembrance Day is celebrated every year on 11 November.

Why does Poppy hold significance?

• In the Commonwealth nations, poppies were widely sold before the origin of Remembrance Day. The flower is worn to show respect for all the people who sacrificed their lives while fighting in World War I, as well as the conflicts that followed the war.
• Poppy was one flower that grew on many of the battlefields during the war and was later adopted by American academic Moina Michael to remember the loss of life in the Great War. Poppy is also associated with the charity that was founded by the veterans of World War I, known as the Royal British Legion.

How is the day observed?

• To mark the anniversary of the end of the First World War, people across the globe observe two minutes of silence at 11 AM on 11 November. It was the moment in the past when the armistice agreement was signed between the Allied Forces and Germany.