THE CONTEXT: The fifth summit of the now 25-year-old Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) hosted by Sri Lanka, was held in March 2022 in a hybrid fashion. India’s Prime Minister, who attended the summit virtually, called for unity and cooperation in the region as it faces economic and health challenges. PM also announced the adoption of the organisation’s institutional architecture- the BIMSTEC charter. This article analyses this development in detail.

DETAIL OF THE SUMMIT

• The summit’s theme “Towards a Resilient Region, Prosperous Economies, Healthy People” captures the main current priorities of member states and the efforts by BIMSTEC to develop cooperation activities that support member states’ programmes to deal with the economic and development consequences of the Covid-19 pandemic.
• The main outcome of the summit was the adoption and signing of the BIMSTEC Charter, which formalizes the grouping into an organization made up of member states that are littoral to and dependent upon the Bay of Bengal.
• The summit saw considerable progress being achieved in the BIMSTEC connectivity agenda with adopting the ‘Master Plan for Transport Connectivity’ by Leaders, which lays out a guidance framework for connectivity-related activities in the region in the future.
• The Prime Minister underscored the importance of enhanced BIMSTEC regional connectivity, cooperation, and security, made several suggestions, and called upon fellow leaders to strive to transform the Bay of Bengal into a Bridge of Connectivity, Prosperity, and Security among the BIMSTEC-member countries.
• Three BIMSTEC agreements were signed during the summit
• BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters.
• BIMSTEC Memorandum of Understanding on Mutual Cooperation in the field of Diplomatic Training.
• Memorandum of Association on Establishment of BIMSTEC Technology Transfer Facility.

BIMSTEC: ALL YOU NEED TO KNOW

THE GROUPING:

• The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a multilateral regional organisation established to accelerate shared growth and cooperation between littoral and adjacent countries in the Bay Bengal region.
• It has a total of seven member countries- five from South Asia, including Bangladesh, Bhutan, India, Nepal, and Sri Lanka, and two from Southeast Asia, including Myanmar and Thailand.
• It was founded as BIST-EC, in June 1997, with the adoption of the Bangkok Declaration, with Bangladesh, India, Sri Lanka, and Thailand as members. It became BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation) with the entry of Myanmar in late 1997, And eventually, it was named in its current form when Nepal and Bhutan became members in 2004.

THE AIM:

• The aim of setting up the regional grouping was not to create a new region for cooperation but to revive the connectivity and common interests of the Bay of Bengal region members.
• According to the official website of BIMSTEC, “the regional group constitutes a bridge between South and Southeast Asia and represents a reinforcement of relations among these countries.”
• BIMSTEC is different from other regional groupings such as SAARC or ASEAN because it is a sector-driven organisation.

WHAT IS THE WORKING MECHANISM OF BIMSTEC?:

• Until the current summit, BIMSTEC did not have a formal document or organisational architecture, which was adopted this time in the form of the BIMSTEC Charter.
• It did have a working mechanism for policy-making and operational goals. Policymaking would be done through two types of meetings: Summits, which are supposed to be held every two years; and ministerial meetings of Foreign and Commerce Ministers of member countries for deciding on trade and economic affairs, to be held once every year. An operational meeting of senior officials to monitor the activities of the grouping is also supposed to be held twice a year.
• Since its inception, BIMSTEC’s policymaking meetings have not been held as per plan. Just five summits, including the current one, have been held in 25 years.

WHAT IS THE SIGNIFICANCE OF BIMSTEC?:

• The BIMSTEC region hosts 22% of the world population or 1.68 billion people; the member states have a combined GDP of US$3.697 trillion/per year.

IMPORATNCE OF BIMSTEC FOR INDIA

LOOK EAST POLICY:

• It should be seen in the context of India’s heightened interest and commitment to its “Act East” policy.
• Without a strong outreach to BIMSTEC member states, India’s attempts at achieving its Act East policy goals will lack momentum.

SECURITY:

• It could also be seen as aligning with India’s larger goal to gain trade and security prominence in the Indian Ocean region and to cater to the concept of the ‘Indo-Pacific’ region, a major focus of Quad countries.

AN ALTERNATIVE TO SAARC:

• The idea of BIMSTEC also gained prominence after the 2016 Uri attack when India was able to get SAARC (South Asian Association for Regional Cooperation) nations on its side to boycott the organisations’ summit, which was to be held in Islamabad, Pakistan.
• The progress of SAARC has stalled over the years due to Indo-Pak relations and what experts call Pakistan’s obstructionist approach to the organisation.
• BIMSTEC emerged as an alternative platform for cooperation.

CHINA’S INFLUENCE IN THE REGION:

• China’s influence and presence in India’s neighbourhood have grown enormously on account of BRI initiatives.
• Debt burdens have forced India’s neighbours to hand over assets to China.
• India will be hoping that its economic engagement with the Bay of Bengal littoral states will restrict Chinese influence in these countries.

REGIONAL COOPERATION:

• BIMSTEC has gained popularity among South Asian countries as a platform for regional cooperation.
• The organisation is a bridge between South Asia and Southeast Asia.
• BIMSTEC’s major strength is that it includes two influential regional powers: Thailand and India.
• The region has countries with the fastest-growing economies in the world.

FUTURE PERSPECTIVEs:

• India is likely to find that focusing its diplomatic energies on BIMSTEC member states could be rewarding.
• Relationships among BIMSTEC members are generally cordial, unlike the strained India-Pakistan relationship.
• BIMSTEC is not without its share of problems. India will need to convince other BIMSTEC members that its new outreach to them is not a “rebound relationship,” a short-term one to thumb its nose at Pakistan.
• BIMSTEC suffers from a lack of human and financial resources. India needs to allocate more resources to its BIMSTEC budget and should take an informal leadership role to provide BIMSTEC with momentum.

STRATEGIC SHIFT FROM SAARC TO BIMSTEC

THE URI ATTACK AND BOYCOTT OF THE SAARC SUMMIT:

• In September 2016 India saw a deadly attack on the army camp in Uri.
• After that attack, India expressed its inability to participate in the Islamabad SAARC summit due to “prevailing circumstances” and stepped up diplomatic pressure on Pakistan.
• Bangladesh, Bhutan, and Afghanistan followed India’s decision to stay away from the November summit to be held in Islamabad.
• India and other countries cited “cross-border terrorist attacks in the region” as a reason for boycotting the summit.

SHIFT FROM SAARC TO BIMSTEC:

• India invited the BIMSTEC leaders to the BRICS summit at Goa in 2016.
• In doing so it sent out the message that if SAARC wasn’t ready to deliver, India had BIMSTEC to turn to. After that, The Indian prime minister engaged BIMSTEC leaders in bilateral meetings.
• Since 2016 there has been no movement forward on resuming the SAARC summit.
• India is regularly attending the BIMSTEC summit and it had emerged as an alternative regional platform where five SAARC (Bangladesh, Bhutan, India, Nepal, and Sri Lanka) countries could gather and discuss sub-regional cooperation.
• India chose BIMSTEC over any other regional grouping indicative of India’s importance to the Bay of Bengal region.
• BIMSTEC=SAARC- (Pakistan, Maldives, and Afghanistan) +(Thailand and Myanmar)

WHY IS INDIA’S STRATEGIC FOCUS SHIFTING FROM SAARC TO BIMSTEC?

Apart from the terror issue, there are many other issues which are responsible for India’s strategic shift from SAARC to BIMSTEC. These are

FAILURE OF SAARC:

• SAARC has come under serious scrutiny in the last few years.
• From its very inception, member countries treated it with suspicion and mistrust.
• Even after three decades of its existence, SAARC’s performance has been less than satisfactory, and its role in strengthening regional cooperation is being questioned.
• In the 30 years of its history, annual SAARC summits have been postponed 11 times for political reasons, either bilateral or internal.
• Numerous agreements and institutional mechanisms established under SAARC have not been adequately implemented.

PAKISTAN’S NON-COOPERATION:

• Pakistan’s non-cooperation has stalled some major initiatives under SAARC.
• At the 18th SAARC summit in Kathmandu in 2014, initiatives such as the SAARC–Motor Vehicle Agreement (MVA), could not be signed.
• The SAARC satellite project that India proposed was abandoned following an objection from Pakistan in 2016.
• 19th summit scheduled to be held in Pakistan in 2016 was suspended for an indefinite period, as member countries declined to participate.
• While cross-border terrorism emanating from Pakistan is a major concern for India, Pakistan has failed to address these concerns.

OPPORTUNITIES FOR INDIA IN BIMSTEC

BRIDGE BETWEEN SOUTH ASIA AND SOUTH-EAST ASIA:

• Nearly 1.5 billion people live along its coastline.
• 25% of the world’s traded goods across the Bay of Bengal every year.
• 80% of Chinese, 90% of South Korea’s, and Japan’s energy imports pass through the Bay of Bengal.

MARKET:

• The seven countries (apart from India) have a combined GDP of approximately US$ 2.7 trillion with 5.5% economic growth.

RESOURCES:

• the Bay of Bengal is the world’s largest bay, it is also rich in untapped natural resources, with some of the world’s largest fishing stocks, reserves of gas, and other sea bed minerals.

GEOSTRATEGIC:

• BIMSTEC community gives tacit recognition to India as a major power in Indo-Pacific by facilitating India to take a leading position.

ROLE IN INDO-PACIFIC:

• the Bay of Bengal acts as a funnel to the Strait of Malacca linking the Indian and Pacific oceans. It is a major maritime choke-up point for China, Japan, and most East and Southeast Asian states.

DEVELOPMENT OF COASTAL STATES:

• One-quarter of its population lives in states bordering the Bay of Bengal. Their growth and development are increasingly seen to hinge on the degree of connectivity with the Southeast Asian markets.

WHAT ARE THE CHALLENGES FOR INDIA IN BIMSTEC?

LACK OF HUMAN AND FINANCIAL RESOURCES:

• BIMSTEC suffers from a lack of human and financial resources.
• India needs to allocate more resources to its BIMSTEC budget and should take an informal leadership role to provide BIMSTEC with momentum.
• India is currently the largest contributor to the BIMSTEC secretariat budget.

SUPREMACY:

• India would have to counter the impression that BIMSTEC is an India-dominated bloc; in that context, India can follow the Gujral doctrine that intends to chalk out the effect of transactionary motive in bilateral relations.

CONNECTIVITY:

• Connectivity is a major issue among BIMSTEC nations.
• North-Eastern states are important in deepening connectivity among BIMSTEC nations, but the Siliguri corridor (chicken neck) provides a very narrow passage for movement and obstructs connectivity.
• The underdevelopment of North Eastern states in terms of infrastructure and connectivity will also be a major hurdle.

REGIONAL INSTABILITY:

• Regional instability in the form of the Rohingya crisis and other intra and interstate issues can hamper the efficient and effective functioning of the grouping.

THE LACK OF CRITICAL SUPPORT:

• Strong and clear political commitment, adequate financial resources, full engagement of business and industry, and optimal involvement of civil society has been the principal constraint in BIMSTEC.

BCIM:

• The formation of another sub-regional initiative, the Bangladesh-China-India-Myanmar (BCIM) Forum, with the proactive membership of China, has created more doubts about the exclusive potential of BIMSTEC.

BIMSTEC VS SAARC: WHICH IS MORE SUITABLE FOR INDIA?

If India wants to prove itself as a regional power, as the largest country in South Asia, India cannot escape its responsibilities under SAARC. The following points explain the differences between SAARC and BIMSTEC. In the end, it can be seen that none of them can substitute for each other. Rather they can complement each other’s roles.

THE WAY FORWARD

• India can’t afford to remain isolated in the light of recent forays by China in South Asia that India exerts as its own sphere of influence. By facilitating trade and economy through BIMSTEC, India can integrate the economies of surrounding countries. For e.g., India can integrate the BIG-B initiative of Bangladesh with its own SAGARMALA project
• To build this as a sustainable platform, India should also focus on maintaining consistency in the frequency of the summits to ensure regularity in decision making;
• It should also fund it more to improve the capacity of the secretariat, both in terms of manpower and funding. In the short term, since India lacks the resources, India should use its clout to derive funds from JICA, World Bank, or ADB.
• Ensuring tangible results/benefits, which will add to the motivation of the countries to concentrate on BIMSTEC
• To prevent this platform fall apart like SAARC, India needs to give teeth to it. This can be done by empowering BIMSTEC to be a platform for dispute resolution among member 24 countries. This will require debates and discussions among the BIMSTEC countries to reach a consensus. India should also go ahead of its reservations on certain issues that neighboring countries opine as big brotherly nature to improve their confidence.

THE Conclusion: Recent summit is a good opportunity for India and other BIMSTEC countries to develop a strong regional group to promote peace, stability, and trade. For India, it is an important platform to counter China in the South Asia region. Apart from it, with the help of BIMSTEC countries, India can develop an effective regional group for trade like ASEAN.

Questions:

1. Discuss the opportunities and challenges for India in the BIMSTEC grouping.
2. How far do you agree with this view that as being the largest country in the South Asia region, India should lead the region in world politics, and for that India should try for the revival of SAARC? Analyse your view.
3. ‘BIMSTEC is an opportunity for India for its Act East Policy, but it cannot be an alternative of SAARC’. Critically Examine.

THE CONTEXT: A new Pew Research Centre Report based on a survey has provided interesting findings on the gender attitude of Indians. This survey, named How Indians View Gender Roles in Families and Society has also been the basis of an earlier report of the same institution titled Religion in India: Tolerance and Segregation (covered already as part of ED). This article examines the survey report in detail.

WHAT IS THE REPORT?

Based on a face-to-face survey of 29,999 Indian adults fielded between late 2019 and early 2020, before the COVID-19 pandemic, the report looks at how Indians view gender roles at home and in society more generally. The survey was also the basis for a 2021 report on religion in India, was conducted by local interviewers in 17 languages, and covered nearly all of India’s states and union territories. The report captures the various aspects of the gender dynamics in India.

KEY FINDINGS FROM THE REPORT

WOMEN AS POLITICAL LEADERS:

• Indians broadly accept women as political leaders. India has a long history of women holding political power, from the 1966 election of Indira Gandhi, one of the world’s first woman prime ministers, to other well-known figures, such as Jayalalitha, Mamata Banerjee , and Sushma Swaraj.
• The survey results reflect this comfort with women in politics.
• Most adults say that women and men make equally good political leaders (55%) or that women generally make better leaders than men (14%).
• Only a quarter of Indian adults take the position that men tend to make better political leaders than women. (SEE FIGURE 1).

SUPPORT FOR TRADITIONAL GENDER ROLES:

• While most Indians say that men and women should share some family responsibilities, many still support traditional gender roles.
• For instance, 62% of adults say both men and women should be responsible for taking care of children, while roughly a third of adults (34%) feel that childcare should be handled primarily by women.
• Similarly, a slim majority (54%) say that both men and women in families should be responsible for earning money, yet many Indians (43%) see this as mainly the obligation of men.
• Nearly nine-in-ten Indians (87%) completely or mostly agree with the notion that “a wife must always obey her husband.

PREFERENCE FOR THE CHILDREN:

• An overwhelming majority of Indian adults say it is very important for families to have both sons and daughters, and a substantial share is accepting of sex-selective abortion.
• Indians are united in the view that a family needs to have at least one son (94%) and, separately, a daughter (90%). Historically, in Indian society, families have tended to place a higher value on their sons than their daughters, a custom broadly referred to as “son preference.”
• One enduring manifestation of son preference has been the illegal practice of sex-selective abortions – using ultrasound or other tests to learn the sex of a foetus and terminating the pregnancy if the foetus is female.
• The survey finds that four-in-ten Indians say it is either “completely acceptable” or “somewhat acceptable” to “get a check-up using modern methods to balance the number of girls and boys in the family,” a euphemism that connotes sex-selective abortion.
• In contrast, roughly half of adults (53%) say that this practice is either somewhat or completely unacceptable.

RESPONSIBILITY FOR THE RELIGIOUS RITES:

• Most Indians (63%) say sons should be primarily responsible for parents’ last rites or burial rituals, although attitudes differ significantly across religious groups.
• Religious funeral practices for loved ones are widely seen as very important in India, and at least according to Hindu tradition, sons must perform the last rites for a parent to ensure freedom for the soul in the afterlife.
• Most Muslims (74%), Jains (67%), and Hindus (63%) say sons should be primarily responsible for funeral rituals, but far fewer Sikhs (29%), Christians (44%), and Buddhists (46%) expect this from sons.
• Instead, Sikhs, Christians, and Buddhists are more likely to say that both sons and daughters should be responsible for their parents’ last rites. Very few Indians, regardless of religion, say daughters should be primarily responsible for funeral rituals.

SUPPORT FOR TRADITIONAL GENDER ROLES:

• Muslims are more likely than other Indians to support traditional gender roles in families, while Sikhs are often the least likely community to hold such views.
• For example, while most Indian Muslims (61%) say that men in a family should be primarily responsible for earning money, just 17% of Sikhs say this.
• And Muslims are more than twice as likely as Sikhs to assign sons the primary responsibility of caring for aging parents (43% vs. 17%).

RESPECT TO WOMEN:

• Indians favour teaching boys to respect women as a way to improve women’s safety. As described in a previous Pew Research Centre report, roughly three-quarters of Indian adults (76%) say violence against women is a “very big problem” in their country.
• About half of Indians (51%) say it is more important to teach boys to respect all women, while roughly a quarter (26%) say it is more important to teach girls to behave appropriately.

FIGURE 1: WOMEN AS POLITICAL LEADERS

FIGURE 2: PREFERENCE FOR CHILDREN

HOW INDIA’S GENDER ATTITUDES COMPARE GLOBALLY

Pew Research Centre has asked a couple of the questions on this survey in many countries around the world, allowing a glimpse of where Indians fit globally when it comes to public opinion on these issues. Across 47 countries and territories, a global median of 70% says it is very important for women to have the same rights as men, according to data from two recent waves of the Centre’s Global Attitudes survey. This is similar to the share of Indians who feel gender equality is very important (72%).
Indians are less likely than people in North America (92% median), Western Europe (90%), and Latin America (82%) to place high importance on women and men having the same rights. But they are more likely than those living in sub-Saharan Africa (48% median) and the Middle East-North Africa region (44%) to say this. Adults in Central and Eastern Europe (69% median) are roughly similar to Indians on this question. Within South Asia, Indians are somewhat more likely than Pakistanis to say it is very important for men and women to have equal rights (72% vs. 64%). Despite broadly aligning with global public opinion on equal rights for women, Indians tend to be more conservative than people in most other countries surveyed when it comes to gender dynamics in the home and the economy.

INDIA’S CHANGING GENDER NORMS: AN ANALYSIS

THE WAY FORWARD:

THE CONCLUSION: Although there may be issues related to the sample size, methodology etc, the Pew survey report provides in-depth analysis on the gender attitude of the Indian people. Designing a lasting change in gender attitudes requires meticulous planning and implementation and the PEW Research Centre survey is a wake-up call to commence that change.

QUESTIONS:

⦁ Discuss the salient features of the Pew Report on gender.

ADD TO YOUR KNOWLEDGE

ABOUT Pew RESEARCH CENTRE

About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping America and the world. It does not take policy positions. The Center conducts public opinion polling, demographic research, content analysis and other data-driven social science research. It studies U.S. politics and policy; journalism and media; internet, science and technology; religion and public life; Hispanic trends; global attitudes and trends; and U.S. social and demographic trends. All of the Center’s reports are available at www.pewresearch.org. Pew Research Center is a subsidiary of The Pew Charitable Trusts, its primary funder.

THE CONTEXT: The 14^thannual bilateral summit between India and Japan has held in New Delhi in March 2022. Indian Prime Minister Narendra Modi and Japanese Prime Minister Fumio Kishida participated in the summit. This article analyses the outcomes of the summit and the recent trajectory in India-Japan relations.

THE OUTCOMES OF THE SUMMIT

FOUR-POINT PLAN ON UKRAINE: India and Japan will:

• ‘not tolerate’ any unilateral and forceful change in the status quo of Ukraine or any country in the world,
• continue to push for a peaceful settlement of the conflict,
• jointly address the situation whenever needed, and
• work together in giving humanitarian aid and assistance to Ukraine.

ON INDO-PACIFIC:

• Both countries expressed their commitment to a free and peaceful Indo-Pacific. Moreover, the leaders showed their commitment to promoting peace, security, and prosperity in the Indo-Pacific region.

ON QUAD:

• The two PMs affirmed the importance of bilateral and plurilateral partnerships among like-minded countries, including the QUAD grouping between India-Australia-Japan and the United States.

ON CHINA:

• India raises China-LAC standoff with Japan.
• Japan raised the matter of the East China Sea and the South China Sea with regard to China’s growing belligerence there.

ON TERRORISM:

• Both the countries expressed deep concern about the growing threat of terrorism and underlined the need to strengthen international cooperation to combat terrorism comprehensively and sustainably.

ON INVESTMENT:

• Japan’s PMannounced an investment to the tune of $42 billion (JPY 5 trillion) in India over the next five years.

LIST OF AGREEMENTS/MOUs SIGNED

INDIA -JAPAN RELATIONS: A HISTORICAL PERSPECTIVE

• Begun in the 6th century when Buddhism was introduced to Japan.
• After World War II, in 1949, India started relations with Japan warmly.
• Japan and India signed a peace treaty and established diplomatic relations on 28th April 1952. This treaty was one of Japan’s first peace treaties after World War II.
• In the post-World War II period, India’s iron ore helped a great deal in Japan’s recovery from the devastation.
• Japan started providing yen loans to India in 1958, as the first yen loan aid extended by the Japanese government.
• The visit of then Japanese Crown Prince Akihito and Crown Princess Michiko in 1960 elevated the relations to a new level. A test of the reliability of Japan as a friend was witnessed in 1991 when Japan was among the few countries that bailed India out of the balance of payment crisis.

PROGRESS IN THE RECENT PAST

RECENT RELATIONS:

• Prime Minister Yoshiro Mori’s visit to India in 2000 provided momentum to strengthen the Japan-India relationship.
• In 2005, Japan-India annual summit started.
• In December 2006, the relationship was elevated to the “Global and Strategic Partnership”.
• In September 2014, upgrade the bilateral relationship to “Special Strategic and Global Partnership.”
• In 2015 both countries resolved to transform the Japan-India Special Strategic and Global Partnership into a deep, broad-based, action-oriented partnership, reflecting a broad convergence of their long-term political, economic, and strategic goals.
• The announcement “Japan and India Vision 2025 Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World” started a new era in Japan-India relations.
• in October 2018, both countries reiterated their unwavering commitment to working together towards a “Free and Open Indo-Pacific”.
• In September 2021 both countries again concurred to further develop Japan-India relations and work closely toward the realization of a “Free and Open Indo-Pacific”.

COOPERATION IN SECURITY FIELDS:

• In 2008, “the Joint Declaration on Security Cooperation between Japan and India” was issued.
• ‘2+2” meeting, annual Defense Ministerial Dialogue, and Coast Guard-to-Coast Guard dialogue.
• JIMEX, EX DHARMA GUARDIAN, SHINYUU Maitri, and Dharma Guardian are some military exercises between both countries. Apart from these, both countries are participatory in Malabar naval exercises.
• In September 2020, the Agreement concerning Reciprocal Provision of Supplies and Services between the Self-Defense Forces of Japan and the Indian Armed Forces (so-called “Acquisition and Cross-Servicing Agreement” or ACSA) was signed. ACSA came into force on July 11th, 2021

ECONOMIC RELATIONS:

• In recent years, the economic relationship between Japan and India has increased.
• India was the 18th largest trading partner for Japan, and Japan was India’s 12th largest trading partner in 2020.
• Japan was the 4th largest investor for India in FY2020.
• Japanese private-sector’s interest in India is rising, and, currently, about 1,455 Japanese companies have branches in India. Maruti Suzuki, Toyota, Mitsubishi, Honda, and Hitachi are some of the major Japanese companies operating in India.
• Currency Swap Arrangement of USD 75 billion between both countries.

ECONOMIC ASSISTANCE:

• India has been the largest recipient of Japanese (Official Development Assistance) ODA loans for the past decades.
• Delhi Metro is one of the most successful examples of Japanese cooperation.
• Japan continues to cooperate in supporting strategic connectivity linking South Asia to Southeast Asia through the synergy between the ”Act East” policy and ”Partnership for Quality Infrastructure.”
• Besides, Japan and India had committed to building a High-Speed Railway in India by introducing Japan’s Shinkansen System, the flagship project of Japan-India relations.

CULTURAL RELATIONS:

• The year 2022 marked the 70th anniversary of the establishment of diplomatic relations between Japan and India. Various cultural events took place in Japan and India to promote mutual understanding between the two countries, under the theme of “Resurgent Japan, Vibrant India: New Perspectives, New Exchanges.”

WHAT IS THE IMPORTANCE OF JAPAN TO INDIA?

FINANCIAL:

• Japan has invested in the $90 billion Delhi-Mumbai Industrial Corridor (1,483km high-speed rail and road line), which will set up new cities, industrial parks, ports, and airports.
• It is also backing the Ahmedabad-Mumbai bullet train service and has already released the first tranche of 5,500 crore rupees.
• Japan is the third-largest source of FDI ($28.160 billion between2000 June 2018) investment into India after Mauritius and Singapore.
• In Dedicated Freight Corridor, a project of close to Rs 50,000 crore of Japanese assistance has been about Rs 38,000 crore.
• A 75 Billion dollar currency swap agreement between countries is a significant step in enhancing economic ties.

DEFENCE:

• Japan is the most important partner in the Indo-Pacific region. Both countries are the part of QUAD group.
• After the joint army, navy, and air force exercises, the two nations are looking to allow their respective naval forces to use each other’s facilities.
• Both countries have conflicts with China and to counter its behaviour in the Indo-Pacific region, they need to continue helping each other.

TECHNOLOGY:

• The introduction of  Johkasou technology in India by Japanese companies for decentralized wastewater treatment will help in sewage water management.
• The Indian PM and the then PM of Japan Mr. Abe have also announced the launch of a new digital partnership that will cover Artificial Intelligence (AI) and the Internet of Things (IoT).
• In 2018, when the Indian PM visited Japan, he made a trip to FANUC Corporation, one of the world’s largest makers of industrial robots.
• FANUC facility is important in the context of India’s move towards Industry 4.0.

INFRASTRUCTURE COOPERATION:

• In 2016, India and Japan announced joint projects in Africa as part of the Asia-Africa Growth Corridor; the main aim of this project is to counter the BRI influence in South Asia and Africa.
• Apart from it, there are many joint ventures between the two countries.

THE AREAS OF CONCERNS

TRADE BETWEEN TWO COUNTRIES:

• Today, India-Japan trade languishes at around $18 billion, while Japan-China trade is around $300 billion.
• India’s major exports to Japan include petroleum products, organic chemicals, fish and aquatic invertebrates, natural or cultured pearls, precious or semi-precious stones, and machinery and mechanical appliances.
• India’s top import items from Japan are machinery and mechanical appliances, followed by electronics, iron and steel, plastics, copper, and its articles.

RELATIONSHIP CENTRED ON COUNTERING CHINA:

• Both countries have border issues with China. So the relations generally target China.
• It is interesting fact, that China is the biggest trading partner of Japan and India.

SECURITY TIES:

• In security ties, the Indo-Japanese relationship has remained below potential, and Japan does not accord due to importance to India in its security calculus.
• Japan has offered neither military hardware nor technology to India. There seems to be a difference in perceptions about China; Japan, while highlighting its own security concerns in the East and South China Seas, is seen to play down the multiple threats that India faces from China.
• Although both countries are members of QUAD and have 2+2 talks, there is a large scope to improve the security relations that are not developed as per the demand of time.

THE UKRAINE CRISIS:

• On the issue of the ongoing Russia-Ukraine war, while India took a neutral stance, Japan criticized the attack openly and followed NATO. This shows that despite being the partner of QUAD, both countries follow their independent foreign policy.
• During his visit, Japan’s Prime Minister pushed Narendra Modi to take a clear stance on Russia’s war on Ukraine. This shows a divergence between both countries but later, QUAD itself accepted India’s stand on the Ukraine-Russia war.

THE WAY FORWARD: HOW TO SHAPE THE FUTURE OF INDIA-JAPAN RELATION?

SHOULD GO BEYOND COUNTERING CHINA:

• The Indo-Japan relations are oriented toward countering Chinese Influence in the Indian Ocean and the South China Sea but now both the countries should go beyond.

SHOULD FOCUS ON THE BILATERAL TRADE:

• Both governments should focus on boosting trade which is standing at just $18 billion. It shows that bilateral trade needs to be increased.
• The scope in many areas for improving trade and the fourth industrial revolution can be a landmark in this regard.

LEVERAGE OPPORTUNITIES FOR COOPERATION:

• Japan gives India an opportunity to boost its relations with Indo-Pacific countries.
• There are many other areas providing opportunities such as the African continent through the Asia Africa Growth Corridor(AAGC) whose potential needs to be utilized and scaled up.

NEED STRONG SECURITY TIES:

• India and Japan are the members of Quad and India invited Japan in Malabar Naval Exercise but these are multi-country level ventures. Both counties should focus on their own security setup in their respective regions.
• As a significant naval power with a dominant peninsular location astride shipping lanes, India plays a major role in ensuring maritime security in the Indian Ocean and its environs.
• Close cooperation with a democratic India, located mid-way along trade routes connecting East Asia with the Middle East and Africa, would be advantageous to Japan.
• At the same time, a technologically deficient India has much to gain from a relationship with a country like Japan.

THE CONCLUSION: No doubt, India and Japan are among the most reliable partners in bilateral relations and Japan-India relations have evolved into an inclusive and multi-layered relationship based on cultural bonds, firm friendship, and common universal values. But, there is still scope for improving the bilateral relations which should be the agenda of their future relations.

Questions

1. ‘With strong India-Japan cooperation, 21^st century will be Asia’s century. Analyze the scope for India-Japan relations in changing geopolitical scenarios.
2. Highlight the importance of strong India- Japan relations for a free and secure Indo-Pacific.
3. ‘Without enhancing trade relations, India and Japan would not be able to counter China’s influence in Indo-pacific’. Critically Analyze.

THE CONTEXT: In Feb-March 2022, India and Maldives have dived into a new foray into strategic relations with bilateral meetings on various fronts. There have been high-profile visits of Indian dignitaries to the Maldives. This article analyses regional security and maritime safety issues along with socio-economic development, trade and investment, and tourism at a time when the “India Out” campaign is regaining momentum in the Maldives along with challenges of Chinese influence and others.

MOST RECENT DEVELOPMENTS IN INDIA-MALDIVES RELATIONSHIPS

DEFENCE COOPERATION DIALOGUE:

• Defence Secretary of India visited the Maldives on 13-14 Feb 2022, with the primary objective of discussions on the 3rd Defence Cooperation Dialogue(DCD).
• Both sides discussed joint efforts and capacity-building initiatives being taken by both the countries to deter trans-national crimes and bolster national security in the region.
• The Defence Secretary of India also inaugurated the Composite Training Center Phase-I Annex built with Indian grant assistance in the Maldives and handed over the refitted CGS Huravee – a made-in-India patrol vessel.

COLOMBO SECURITY CONCLAVE:

• NSA of India visited the Maldives on 7 March 2022 to attend the 5th NSA level Colombo Security Conclave (CSC) meeting.
• The four pillars of security cooperation (in CSC) include maritime safety and security, human trafficking, counter-terrorism, and cyber security.
• India, the Maldives, and Sri Lanka are the founding members of the Colombo Security Conclave. Mauritius was included as a new member of the conclave during the meeting, which was also attended by Bangladesh and Seychelles as observers in 2022.

CAG LEVEL BILATERAL MEET TO STRENGTHEN PROFESSIONAL CAPABILITIES IN MALDIVES:

• Steps were taken for furthering the cooperation between the two Supreme Audit Institutions (SAI) by operationalizing the MoU to strengthen the professional capacities and improve audit methodology.
• Emphasized the role of technology, in today’s rapidly changing world, which constantly creates fresh avenues for audit and makes audits more efficient. The exchange of knowledge and capacity development initiatives would equip both the SAIs in the use of emerging technologies for auditing.
• The MOU is signed at the most opportune time given the strategic shift towards future relevance which requires both the countries to cater to the demands of the knowledge economy and sustainable development.

VISIT OF EXTERNAL AFFAIRS MINISTER TO MALDIVES:

• Inauguration of National College for Policing and Law Enforcement (NCPLE):
• NCPLE is one of India’s largest funded projects in the island nation – in the Maldives’ Addu City
• One of the objectives of this training academy is to address the challenges of violent extremism and prevent radicalisation.
• On the domestic level in the Maldives, the training academy would help strengthen law enforcement abilities and counter drug trafficking, a major concern in the country.
• MoU for Training: A memorandum of understanding was signed by the
• Maldives Police Service and India’s Sardar Vallabhbhai Patel National Police Academy to enhance cooperation in training and capacity building. India has also increased the number of training slots for the Maldives at the police academy to eight.
• Support for Infrastructure: The project for the creation of police infrastructure facilities across the islands of Maldives with over $40 million financing from EXIM Bank of India has also been given necessary approvals.

INDIA OUT CAMPAIGN AND INDIA OUT BILL:

• India Out campaign has cropped up every now and then within the Indian Ocean island nation, mostly on social media. The campaign is led by critics who accuse the present government of allowing Indian boots on the ground and thereby compromising the sovereignty of the island nation. The ruling administration has time and again denied any Indian military presence in the country or a threat to Maldives’s sovereignty.
• India Out Bill is a draft Bill by the present Maldivian government that criminalises public campaigns that apparently harm Maldives’ relations with foreign countries.

AN ANALYSIS OF RECENT VISITS

• The Maldives holds strategic importance for India under the present government’s ‘Neighbourhood First’ policy due to its location in the Indian Ocean. However, the relations between the two countries were strained under the pro-China regime of their former President Abdulla Yameen. This can be reflected in the recent ‘India Out’ campaign led by Abdulla Yameen, against India’s massive developmental funding for creating physical, social, and community infrastructure, and incumbent President Solih’s government retaining two India-gifted helicopters and their operational military personnel.
• For India, the Indian Ocean is of utmost importance. Since 2014, India has taken a proactive approach to cement its role as the leader in the Indian Ocean by according priority maritime diplomacy and initiatives. This comes against the backdrop of rising Chinese assertiveness in the IOR and the growing interest of various powers in the Indian Ocean generally, and the Maldives in particular. As the pre-eminent South-Asian power and net security provider in the Indian Ocean Region, India needs to cooperate in all dimensions with the Maldives. The recent bilateral meetings between India and Maldives will offer India the right opportunity.

AREAS OF ENGAGEMENT INDIA-MALDIVES RELATIONS

GEO-STRATEGIC: The Maldives, a Toll Gate in the Indian Ocean:

• Located in the southern and northern parts of this island chain lies the two important Sea Lanes of Communication (SLOCs). These SLOCs are critical for maritime trade flow between the Gulf of Aden and Gulf of Hormuz in West Asia and the Strait of Malacca in Southeast Asia.
• Nearly 50% of India’s external trade and 80% of its energy imports transit these SLOCs in the Arabian Sea.
• The location of the Maldives, at the intersection of commercial sea lanes running through the Indian Ocean, makes it strategically important for India, particularly in light of China’s growing aggression in the region.

IMPORTANT GROUPINGS:

• Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
• Engagement with QUAD (India, Japan, Australia, and the US)
• Maldivian engagement with the ‘Quad’, has been growing over the last year, especially in the area of defense cooperation.
• The present government signed a ‘Framework for a Defence and Security Relationship’ agreement with the United States. It was welcomed by India.

The South Asia Subregional Economic Cooperation (SASEC) program set up in 2001 brings together Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka in a project-based partnership that aims to promote regional prosperity, improve economic opportunities, and build a better quality of life for the people of the subregion. SASEC countries share a common vision of boosting intraregional trade and cooperation in South Asia, while also developing connectivity and trade with Southeast Asia through Myanmar, the People’s Republic of China, and the global market.

SECURITY COOPERATION:

• India and Maldives conduct the joint military exercise ‘Ekuverin’ every year since 2009.
• Mauritius was included as a new member of the conclave during the fifth meeting of national security advisers of the Colombo Security Conclave. It is a maritime security grouping of India, Sri Lanka, Maldives, and Mauritius to forge closer cooperation on maritime and security matters among these Indian Ocean countries.
• MILAN, a Multilateral Naval Exercise hosted by India, made a modest beginning in the Andaman and Nicobar Islands in 1995 with the participation of four littoral navies. This biennial congregation of friendly navies, over the last two and a half decades, has progressively grown in magnitude with the latest edition in 2022 being attended by 42 countries including the Maldives.
• Maldives is also a member country of the Indian Ocean Rim Association (IORA). The objectives of IORA are:
• To promote sustainable growth and balanced development of the region and member states
• To focus on those areas of economic cooperation which provide maximum opportunities for development, shared interest, and mutual benefits
• To promote liberalization, remove impediments, and lower barriers towards a freer and enhanced flow of goods, services, investment, and technology within the Indian Ocean rim.

DISASTER MANAGEMENT:

• The Maldives has been one of the biggest beneficiaries of the Covid-19 assistance and vaccines delivered by India among India’s all neighbouring countries. The Maldives was the first beneficiary of India’s Vaccine Maitri initiative.
• When the world supply chains were blocked because of the pandemic, India continued to provide crucial commodities to the Maldives under Mission SAGAR.

ECONOMIC COOPERATION:

• Tourism is the mainstay of the Maldives’ economy. The country is a major tourist destination for some Indians and a job destination for others.
• In August 2021 India signed a contract for the largest-ever infrastructure project in Maldives which is the Greater Male Connectivity Project (GMCP).
• Under the bilateral agreement, India provides essential food items like rice, wheat flour, sugar, dal, onion, potato, and eggs and construction material such as sand and stone aggregates to the Maldives on favourable terms.
• Blue Economy as defined by World Bank is the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem. The Maldives can play a significant role in India’s Vision of New India by 2030 as the Maldives also aims to achieve a more sustainable development model by making better use of its ocean resources.

DEVELOPMENT ASSISTANCE PROGRAMME:

India has helped the Maldives in many diverse areas to bolster the development of the Maldives e.g.

• Indira Gandhi Memorial Hospital, Maldives Institute of Technical Education (now called the Maldives Polytechnic),
• India-Maldives Faculty of Hospitality & Tourism Studies,
• Technology Adoption Programme in Education Sector in the Maldives,
• a port on Gulhifalhu,
• airport redevelopment at Hanimaadhooand a hospital and a cricket stadium in Hulhumale etc.
• Under the Greater Male Connectivity Project (GMCP) project, a 6.74 km long bridge and causeway link will be built to connect the capital city Male with adjoining islands of Villingli, Gulhifalhu, and Thilafushi.

DIASPORA:

• There is a significant Indian diaspora in the Maldives. Innumerable Indians work across the hospitality, education, and healthcare sectors of the Maldives economy.

IMPORTANCE OF INDIA FOR MALDIVES

FOOD SECURITY: Maldive’s food security depends a lot on imports from India. Food articles such as rice, flour, sugar, chicken, eggs, potatoes, onions, and lentils as among the basic foodstuffs consumed by Maldivians in substantial quantities and supplied by India.

INFRASTRUCTURE: Sand and gravel for construction are also supplied by India.

TOURISM: India is also a major source of the tourism sector for the Maldives, the nation’s economic mainstay.

HEALTH AND EDUCATION: India is also a preferred destination for Maldivians for education, medical treatment, recreation, and business. According to MEA more Maldivians are seeking long-term visas for pursuing higher studies/medical treatment in India.

CURRENT CHALLENGES IN INDIA-MALDIVES RELATION

CHINA’S STRATEGIC FOOTPRINT IN INDIA’S NEIGHBOURHOOD: The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia. Given the uncertain dynamics of Sino-Indian relations, China’s strategic presence in the Maldives remains a concern. Also, the Maldives have started using the China card to bargain with India.

POLITICAL INSTABILITY: India’s major concern has been the impact of political instability in the neighbourhood on its security and development. The consequent political crisis and the “India Out” Campaign have posed a real diplomatic test for India’s neighbourhood policy.

RADICALISATION: Radicalisation is not a new challenge that the Maldives has been tackling, but the bomb attack on former president Mohamed Nasheed in May 2021 has put the issue into sharper focus and has become a pressing concern. The attack clearly indicates that radical groups are actively advancing their position in the Maldives. Radical ideology has strengthened itself in the Maldives and has, in the recent past, been assisted by state institutions.

UTHURU THILA FALHU (UTF) HARBOUR PROJECT: UTF Agreement was signed between India and the Maldives in February 2021. The speculation that the project would be turned into a naval base by India has also been a reason for internal political instability in the Maldives. However, the agreement was to develop a dockyard for Maldives National Defence Force (MNDF) and operate a Dornier aircraft for surveillance.

THE WAY FORWARD

• Mobilising ordinary citizens through the ‘India Out’ campaign is a cause for concern for India. India has to work on perception management in the Maldives.
• The potential for both countries to work together on adaptive and mitigating measures against the adverse maritime impacts of climate change is enormous. This potential must be realised through imaginative foreign policy and maritime security initiatives.
• The ‘India-First Policy’ of the Maldives and India’s ‘Neighbourhood First Policy’ are intuitively complementary, implementing these policies with cultural, geo-economics, and geostrategic sensitivity is imperative for both nations.
• India and Maldives have not yet signed a Free Trade Agreement. To reap the benefits of continued efforts in the economic cooperation and infrastructure developmental projects India should think of having an FTA with the Maldives. (Maldives have FTA with China).
• India-Maldives defense cooperation shall be enhanced to monitor Chinese maritime and naval movements along vital sea lanes of communication that run alongside the Maldives.
• Encourage the Indian private sector to deepen its engagement in the Maldivian economy.
• Countries complain that India doesn’t deliver on projects and they tend to make comparisons with China. Delivering projects on time would help India in mitigating some concerns that may exist in the Maldives.

 THE CONCLUSION: While India-Maldives relations have always been close, cordial, and multi-dimensional, recent regime instability in the Maldives has posed some limitations, especially in the political & strategic arena. Therefore, the main challenge to India’s diplomacy is balancing out all these contradictions into harmonious relations.

MAINS PRACTICE QUESTION:

1. “Recent India-First Policy of the Maldives and India’s Neighborhood First Policy are intuitively complementary”. In the light of recent agreements signed between India and Maldives discuss the strategic importance of the Maldives to India.
2. “India’s Vision of New India by 2030 and Maldives aims to achieve a more sustainable development model by making better use of its ocean resources are complementary to each other. “Elaborate in the context of the Blue Economy.

ADD TO YOUR KNOWLEDGE

THE CONTEXT: On 26 February 2022 Ukraine lodged a case against Russia at the ICJ which was centered on the interpretation of a 1948 treaty on the prevention of genocide, signed by both Russia and Ukraine. The court is named in the treaty itself as the forum for resolving disputes related to genocide and Ukraine’s suit argues that Russia has misinterpreted the treaty in several ways. This article explains the whole issue in detail and analyses the efficacy of ICJ in the present times.

WHAT IS THE INTERNATIONAL COURT OF JUSTICE (ICJ)

ABOUT ICJ:

• The ICJ is the principal judicial organ of the United Nations (UN). The International Court of Justice is also known as the World Court. It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
• The seat of the Court is at the Peace Palace in The Hague (Netherlands). Of the six principal organs of the United Nations, ICJ is the only one not located in New York (United States of America).
• Its official working languages are English and French
• All members of the UN are ipso facto parties to the statute, but this does not automatically give ICJ jurisdiction over disputes involving them. The ICJ gets jurisdiction only on the basis of the consent of both parties. The Charter of the United Nations was signed on 26 June 1945, in San Francisco, at the conclusion of the United Nations Conference on International Organisation and came into force on 24 October 1945. The Statute of the International Court of Justice is an integral part of the Charter.

Figure 1 Charter of the United Nations

ITS ORIGIN:

• The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being by the League of Nations, and which held its inaugural sitting at the Peace Palace in The Hague, Netherlands, in February 1922.
• After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively.
• The PCIJ was formally dissolved in April 1946, and its last president, Judge José Gustavo Guerrero of El Salvador, became the first president of the ICJ.

ITS COMPOSITION:

• The ICJ consists of a panel of 15 judges elected by the United Nations General Assembly (UNGA) and United Nations Security Council (UNSC) for nine-year terms. These organs vote simultaneously but separately. In order to be elected, a candidate must receive an absolute majority of the votes in both bodies. The Court does not include more than one national of the same State. Moreover, the Court as a whole represents the main forms of civilization and the principal legal systems of the world.
• One-third of the Court is elected every three years; Judges are eligible for re-election.
• The 15 judges of the Court are distributed in the following regions:
• Three from Africa.
• Two from Latin America and the Caribbean.
• Three from Asia.
• Five from Western Europe and other states.

ROLES AND RESPONSIBILITIES:

• The Court settles legal disputes submitted to it by States, in accordance with international law. It also gives advisory opinions on legal questions referred by authorised UN organs and specialised agencies. Judgments in disputes between States are binding.
• The Court decides disputes between countries, based on the voluntary participation of the States concerned. If a State agrees to participate in a proceeding, it is obligated to comply with the Court’s decision.

WORKING OF THE COURT:

• States have no permanent representatives accredited to the Court. They normally communicate with the Registrar through their Minister for Foreign Affairs or their ambassador accredited to the Netherlands.
• The sources of law that the Court must apply are international treaties and conventions in force; international custom; the general principles of law; judicial decisions; and the teachings of the most highly qualified publicists*. Moreover, if the parties agree, the Court can decide a case ex aequo et Bono, i.e., without confining itself to existing rules of international law.

A *publicist is an international law scholar or a scholarly organization (e.g., American Law Institute). However, Article 38 of the ICJ Statute indicates that only teachings (writings) of “the most highly qualified publicists” are considered to be a source of international law. Thus, not every article or book about an international law topic would be considered a source of international law.

A CRITICAL ANALYSIS OF THE FUNCTION AND RESPONSIBILITIES OF ICJ

• The International Court of Justice (ICJ) is the international community’s legal guardian. The ICJ is frequently called upon to defuse crisis situations, help normalize relations between states, and reactivate stalled negotiation processes. It resolves legal disputes submitted to it by States in accordance with international law, as well as provides advisory opinions on legal questions referred to it by authorized United Nations organs and specialized agencies. Within its limited jurisdiction, the ICJ has resolved significant international disputes, thereby contributing to international peace and security.
• In carrying out its mandate, the Court not only contributes to the strengthening of international law’s role in international relations but also to its development and is increasingly being used as a forum for the resolution of environmental disputes, particularly those involving transboundary
• harm, as well as other disagreements affecting the conservation of living resources, environmental protection, or potentially adverse effects on human health.
• Albeit the court cannot enact new laws in the same way that a regulator can, the Court can clarify, refine, and interpret international law rules. In the present scenario of Russia’s military action on Ukraine ICJ’s decision is binding on Russia and constitutes part of its international legal obligations. If Russia continues its military actions, it will be a brazen violation of international law.

DISCOURSE ON UKRAINE’S CASE AGAINST RUSSIA AT ICJ

UKRAINE’S APPLICATION AGAINST RUSSIAN FEDERATION:

• Ukraine contends that Russian Federation has falsely claimed that acts of genocide have been committed in the Luhansk and Donetsk oblasts of Ukraine and based on such claims Russia initiated a special military action and recognized the so-called ‘Donetsk People’s Republic’ and ‘Luhansk People’s Republic’.
• Ukraine “emphatically denies” that such genocide has occurred and states that Russia has no lawful basis to take action in and against Ukraine for the purpose of preventing and punishing any purported genocide.
• Ukraine used the clause of the Genocide Convention of (1948) to get the ICJ to hear the case. The top court of the United Nations has ordered Russia to “immediately suspend” its military operations in Ukraine.
• It is a “provisional measures” order – an emergency ruling made before the court hears the whole case. Provisional measures are binding. It means even if Russia maintains incorrectly that the invasion is legal, it is now breaching international law anyway by failing to comply with the ICJ’s order. However, a binding ruling is not the same as an enforceable one. Just as there is no global government to give the ICJ more power, there is no global police to enforce its decisions.

Article I of the Convention on the Prevention and Punishment of the Crime of Genocide (Genocide Convention), 1948 as interpreted by the ICJ in the past makes it an obligation for any state not to commit genocide and also gives an extraterritorial scope to signatory states to prevent genocide. (This became the basis for Russia to initiate a special military action against Ukraine.) Ukraine also contends this interpretation and says that no rule in international law automatically gives one state a right to invade another state to stop genocide.

Article VIII states that any contracting party can unilaterally approach the competent organs of the United Nations in matters related to the acts of genocide.

Article IX states that “Disputes between the Contracting Parties relating to the interpretation, application or fulfillment of the present Convention, including those relating to the responsibility of a State for genocide or for any of the other acts shall be submitted to the International Court of Justice at the request of any of the parties to the dispute.” (This became the basis for Ukraine to unilaterally approach ICJ as both Ukraine and Russia are parties to the Genocide Convention.)

Russia has rejected the order by the ICJ to immediately suspend its military operations in Ukraine by saying that:

• Both sides had to agree to end the hostilities for the ruling to be implemented.
• The ruling was not valid as no consent from both sides can be obtained in this case.
• Though Russia boycotted a hearing on the case but argued in a written filing that the court didn’t have jurisdiction and also said it was acting in self-defense with the invasion.

STANCE OF JUSTICE DALVEER BHANDARI ON THE ISSUE:

• Bhandari was one of the two judges at the world court whose vote is contrary to their respective countries’ stance at the United Nations General Assembly (UNGA).
• At the United Nations (UN), India’s stand has been that diplomacy and dialogue are the solutions to the conflict between Russia and Ukraine. At the UN General Assembly on 2 March 2022, India urged both sides to focus on diplomacy to end the war and abstained from voting on the matter.
• Unlike in the UN, in the ICJ, there is no option of abstention, and ICJ judges vote in their individual capacities, and they vote on the merits of that. A judge’s opinion at the world court is in his or her individual capacity and does not reflect their respective countries’ stand on the issue.

INDIA AND ICJ

ACCEPTING THE JURISDICTION OF ICJ:

• In September 2019 India declared the matters over which it accepts the jurisdiction of the ICJ. This declaration was revoked and replaced the previous declaration made in September 1974 and September 1959.
• Among the matters over which India does not accept ICJ jurisdiction are: “disputes with the government of any State which is or has been a Member of the Commonwealth of Nations”, and “disputes relating to or connected with facts or situations of hostilities, armed conflicts, individual or collective actions taken in self-defense…”
• The declaration, which includes other exceptions as well, has been ratified by Parliament.

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

• Right of Passage over Indian Territory (Portugal v. India, culminated in 1960) – Ruling in India’s favour.
• Appeal Relating to the Jurisdiction of the ICAO Council (India v. Pakistan, culminated 1972) – ICJ rejected Pakistan’s objection.
• Trial of Pakistani Prisoners of War (Pakistan v. India, culminated 1973) – Pakistan choose not to move ahead with the proceedings.
• Aerial Incident of 10 August 1999 (Pakistan v. India, culminated in 2000) – ICJ rejected Pakistan’s contention.
• Obligations concerning Negotiations relating to Cessation of the Nuclear Arms Race and to Nuclear Disarmament (Marshall Islands v. India, culminated 2016) – The court ruled that it does not have any jurisdiction on the issue in the absence of a dispute between the two countries
• Kulbhushan Jadhav (India v. Pakistan, culminated 2019) – The ICJ held that Pakistan was in clear violation of the rights and obligations described under the Vienna Convention on Consular relations 1963 and ruled in favour of India. Jadhav still remains in Pakistan Jail.

INDIANS AS MEMBERS OF ICJ: Four Indians have been members of the ICJ so far:

• Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.
• Former Chief Justice of India R S Pathak served from 1989-to 91.
• Former Chief Election Commissioner of India Nagendra Singh from 1973-88. Singh was also president of the court from 1985-to 88 and vice-president from 1976-to 79.
• Sir Benegal Rau, who was an advisor to the Constituent Assembly, was a member of the ICJ from 1952-to 53.

LIMITATIONS ON THE FUNCTIONING OF ICJ

ICJ suffers from certain limitations, these are mainly structural, circumstantial, and related to the material resources made available to the Court.

JURISDICTION TO TRY INDIVIDUALS:

• It has no jurisdiction to try individuals accused of war crimes or crimes against humanity.
• As it is not a criminal court, it does not have a prosecutor able to initiate proceedings.

HUMAN RIGHTS VIOLATION ALLEGATIONS FROM INDIVIDUALS: The International Court of Justice differs from other courts such as:

• The Court of Justice of the European Union (Luxembourg), whose role is to interpret European Community legislation uniformly and rule on its validity,
• The European Court of Human Rights (France) and the Inter-American Court of Human Rights (Costa Rica), which deal with allegations of violations of the human rights conventions under which they were set up.
• These three courts can entertain applications from individuals as well as from States which is not possible for the International Court of Justice.

NOT A SPECIALIST COURT:

• The jurisdiction of the International Court of Justice in general thereby differs from that of specialist international tribunals, such as the International Tribunal for the Law of the Sea (ITLOS).
• ITLOS is an independent judicial body established by UNCLOS to adjudicate disputes arising out of the convention.
• United Nations Convention on the Laws of the Sea (UNCLOS) was adopted in 1982 to establish jurisdictional limits over the ocean areas and regulate activities in international waters, including sea-bed mining and cable laying, etc.

NOT A SUPREME COURT:

• The Court is not a Supreme Court to which national courts can turn; it does not act as a court of last resort for individuals nor is it an appeal court for any international tribunal. It can, however, rule on the validity of arbitral awards.

CANNOT INITIATE PROCEEDING SUO MOTO:

• The Court can only hear a dispute when requested to do so by one or more States.
• It cannot deal with a dispute on its own initiative.
• Neither is it permitted, under its Statute, to investigate and rule on acts of sovereign States as it chooses.

DO NOT HAVE A COMPULSORY JURISDICTION:

• The ICJ only has jurisdiction based on consent, not compulsory jurisdiction.

DO NOT ENJOY FULL POWERS:

• It does not enjoy a full separation of powers, with permanent members of the Security Council being able to veto enforcement of cases, even those to which they consented to be bound.

ABOUT GENOCIDE CONVENTION

• The Convention on the Prevention and Punishment of the Crime of Genocide (Genocide Convention) is an instrument of international law that codified for the first time the crime of genocide. It was the first human rights treaty adopted by the General Assembly of the UN on 9 December 1948.
• It signified the international community’s commitment to ‘never again’ after the atrocities committed during the Second World War and its adoption marked a crucial step towards the development of international human rights and international criminal law as we know it today.
• According to the Genocide Convention, genocide is a crime that can take place both in times of war as well as in the time of peace. The definition of the crime of genocide, as set out in the Convention, has been widely adopted at both national and international levels, including in the 1998 Rome Statute of the International Criminal Court (ICC).
• Importantly, the Convention establishes on State Parties the obligation to take measures to prevent and punish the crime of genocide, including by enacting relevant legislation and punishing perpetrators, “whether they are constitutionally responsible rulers, public officials or private individuals” (Article IV). Those obligations, in addition to the prohibition not to commit genocide, have been considered norms of international customary law and therefore, binding on all States, whether or not they have ratified the Genocide Convention.
• India is a signatory to this convention.

THE WAY FORWARD

• The ICJ can only hear a dispute when requested to do so by one or more States and cannot deal with a dispute on its own initiative. The power of the court shall be expanded regarding international laws to take Suo moto cognizance and initiate proceedings to maintain international peace and order.
• ICJ shall also be given the power to hear the matters which have already been decided by other international tribunals.
• Though the ICJ can only hear cases by the states it shall also accept applications from individuals as well as international organizations.
• The rulings of the court are binding but not enforceable on states and the onus lies on other UN organs for their implementation. This leads to a lack of confidence in the efficacy of the court. The court shall be given some institutional powers to make it more efficient.

THE CONCLUSION: While the court did not decide on whether Russia has breached the Genocide Convention, as this is a question of merits, it did express doubt over whether a country can unilaterally use force against another country for punishing or preventing an alleged act of genocide. This indicates that Russia’s use of force is difficult to justify under the Genocide Convention. Just because authoritarian populist leaders don’t care for international law does not diminish its significance. International law, even if not sufficient, is necessary to maintain global order. The ICJ decision is an impactful step in that direction.

MAINS PRACTICE QUESTION:

1. “India has accepted the jurisdiction of International Court of Justice on various issues barring a few such as connected with facts or situations of hostilities, armed conflicts, individual or collective actions taken in self-defense.” In the context of changing geopolitical situations elaborate on the given statement.
2. The International Court of Justice (ICJ) suffers from structural, circumstantial, and material limitations. How can the court be made more effective to help in redressing interstate disputes and in maintaining global peace?

ADD TO YOUR KNOWLEDGE

Difference between the International Court of Justice (ICJ) and the International Criminal Court(ICC)

THE CONTEXT: Of late, many reports/indices have downgraded India’s position on various aspects of democracy. There are also allegations that the Indian State has curtailed the freedoms of individuals, the media, and civil society and undermined the independence of accountability institutions. Such developments, along with the results of recently concluded State Assembly elections, have led to a view that India has become an electoral democracy and that the electoral wins have been used to undermine the constitutional democracy. This article examines this claim in detail and suggests a way forward.

A WORKING DEFINITION: ELECTORAL DEMOCRACY AND CONSTITUTIONAL DEMOCRACY

ELECTORAL DEMOCRACY:

• An electoral democracy refers to a polity governed by a democratically elected government.
• In such a system, there are regular free and fair elections based on universal adult franchise, multi-party competition, the peaceful transfer of power, etc.
• Electoral democracy is also known as procedural democracy, formal democracy, etc.
• The electoral process provides legitimacy to governments which can be used for achieving lofty objectives or for other partisan purposes.
• Although electoral democracy is necessary, it is not sufficient for establishing a constitutional democracy.

CONSTITUTIONAL DEMOCRACY:

• In a constitutional democracy, the authority of the majority is limited by legal and institutional means so that the rights of individuals and minorities are respected. Constitutional democracy is the antithesis of arbitrary rule.  It may be also called substantial democracy, liberal democracy, etc.  It is a democracy characterized by:

1. POPULAR SOVEREIGNTY. The people are the ultimate source of the authority of the government, which derives its right to govern from their consent.
2. MAJORITY RULE AND MINORITY RIGHTS. Although “the majority rules,” the fundamental rights of individuals in the minority are protected.
3. LIMITED GOVERNMENT. The powers of government are limited by law and a written or unwritten constitution that those in power obey.
4. INSTITUTIONAL AND PROCEDURAL LIMITATIONS ON POWERS. There are certain institutional and procedural devices that limit the powers of government.

WHAT ARE THE FUNDAMENTAL VALUES OF CONSTITUTIONAL DEMOCRACY?

BASIC RIGHTS:

• Protection of certain basic or fundamental rights is the primary goal of government. These rights may be limited to life, liberty, and property, or they may be extended to include such economic and social rights as employment, health care, and education.
• Documents such as the Universal Declaration of Human Rights, the United Nations Convention on the Rights of the Child, the African Charter on Human and People’s Rights, the Fundamental Rights, and DPSP of the Indian Constitution enumerate and explain these rights.

FREEDOM OF CONSCIENCE AND EXPRESSION:

• A constitutional democracy includes among its highest purposes the protection of freedom of conscience and freedom of expression.
• These freedoms have value both for the healthy functioning and preservation of constitutional democracy and for the full development of the human personality.

PRIVACY AND CIVIL SOCIETY:

• Constitutional democracies recognize and protect the integrity of a private and social realm comprised of family, personal, religious, and other associations and activities. This space of uncoerced human association is the basis of a civil society free from unfair and unreasonable intrusions by the government.

JUSTICE: A constitutional democracy promotes:

• DISTRIBUTIVE JUSTICE. The fair distribution of the benefits and burdens of society.
• CORRECTIVE JUSTICE. Fair and proper responses to wrongs and injuries.
• PROCEDURAL JUSTICE. The use of fair procedures in the gathering of information and the making of decisions by all agencies of government and, most particularly, by law enforcement agencies and the courts.

EQUALITY: A constitutional democracy promotes:

• POLITICAL EQUALITY. All citizens are equally entitled to participate in the political system.
• EQUALITY BEFORE THE LAW. The law does not discriminate based on unreasonable and unfair criteria such as gender, age, race, ethnicity, religious or political beliefs, affiliations, class, or economic status. The law applies to the governors as well as the governed.
• ECONOMIC EQUALITY. Constitutional democracies have differing conceptions of the meaning and importance of economic equality. At the very least, they agree that all citizens should have the right to an equal opportunity to improve their material well-being. Some constitutional democracies also attempt to eliminate gross disparities in wealth through such means as progressive taxation and social welfare programs.

OPENNESS:

• Constitutional democracies are based on a political philosophy of openness or the free marketplace of ideas, the availability of information through a free press and free expression in all fields of human endeavor.

ELECTORAL DEMOCRACY VS CONSTITUTIONAL DEMOCRACY-AN ANALYSIS

In a large part of the world, the electoral aspects of democracy are being used to undermine the non-electoral dimensions of democracy. This process can be called the battle between electoral democracy and constitutional democracy. Democracies don’t normally die as a result of military or executive coups these days. Processes internal to the democratic system can severely weaken democracy itself, even causing its collapse. Today, such contradictions exist in Turkey, Poland, Hungary, and Russia, to name just a few countries. Donald Trump also attempted something similar in the US. It is also alleged that such a process is underway in India.

OTHERING THE OTHERS: ILLUSTRATIONS FROM THE ASIAN REGION

As early as the 1950s, Sri Lanka imposed a “Sinhala only” policy on the Tamil minority of the country. By the 1960 and 1970s, the Sinhalese majority gradually established its hegemony via electoral means, completely marginalizing the Tamils. In the 1980s, a civil war was born as a consequence. In Malaysia, following roughly similar policies, the Malay majority side-lined the Chinese minority. Internal tensions and aggravations rose, but, unlike Sri Lanka, a civil war did not. The minorities pursued their interests by entering into coalitions with political parties within the larger parameters of the polity.

HOW IS ELECTORAL DEMOCRACY USED TO UNDERMINE CONSTITUTIONAL DEMOCRACY?

MIS USE OF ELECTORAL SUCCESS:

• Electoral win provides authority to the elected government to frame laws and policies to implement its ideological agenda.
• Although nothing is wrong in this as long the government acts within the bounds of the constitutional limitations, serious problems emerge once this is breached.
• The triumph in elections can be used in three ways — in executive decrees, in legislative chambers to formulate laws, and on the street via vigilante forces.

SECTARIAN LEGAL AND POLICY ACTIONS:

• The government will simply claim that as it has won the “free and fair elections” it must be free to govern as it pleases without any boundation.
• In other words, electoral success means approval and legitimization of the parties’ agenda, policy choices, and manifesto. I say, a party that is known for its illiberal and communal outlook comes to power with a brute majority, which means the people’s acceptance of what the party stands for.
• This majority is then used by the party to frame legislation and public policies to further the illiberal and communal agenda.

FREE VOTE BUT PROGRESSIVE UNFREEDOMS:

• Differently labelled as right-wing populism, majoritarianism, or illiberal democracy, the core of this politics consists of: –
• Using election win to attack – via legislation — the idea of minority rights and undermine – also via legislation — standard democratic freedoms such as the freedom of expression, freedom of association, and freedom of religious or cultural practice.
• A freely conducted vote can thus be used to cripple the other freedoms that modern democracies also value and the electoral democracy essentially degenerates into an electoral autocracy.

THE REASONS FOR INDIA BEING CALLED AS AN ELECTORAL DEMOCRACY

POTENTIAL MISUSE OF WINS IN ELECTIONS:

• The campaign for the UP election by the incumbent party has a fair share of communal attacks on the minorities.
• It is held that the five-year rule of the party also saw discriminatory legal and administrative actions against the minority community, mob lynching, attacks, and arrest of human rights activists and journalists, custodial deaths, illegal encounters, poor Covid management, mounting unemployment, etc.
• Yet a victorious plurality of UP’s electorate was willing to ignore the incumbent party’s failures and transgressions and returned the same party to power.
• Though minority rights are enshrined in India’s Constitution, election victories can now be used to create laws or government policies that begin to precisely attack those rights.
• Fake news, misinformation, post-truth, and hate speeches have taken the political and social discourse to a new low in India.
• Electoral win is one of the means by which electoral democracy can be a vehicle for an assault on constitutional democracy.

WEAKENING OF THE GUARDIAN OF THE CONSTITUTION:

• Generally speaking, the courts are the final custodian of constitutional proprieties in a democracy and can frustrate a legislative or executive attack on the Constitution.
• But that depends on whether the judiciary is willing to play its constitutionally assigned role. Judicial interpretation can go either way – in favour of the government or against it.
• India’s judiciary has of late — and earlier as well — been an unreliable defender of the Constitution and citizens’ rights. For instance, an erstwhile CJI has given a free pass to the executive through ” sealed cover jurisprudence”, and a former Judge of the SC has been alleged to be always favouring the government.
• A cursory glance of the major Constitutional cases like revocation of Art 370, CAA 2019, etc pending in the SC for a couple of years, points out the unwillingness of the SC to scrutinize executive actions.
• The selective appointment and transfer of judges of the higher judiciary also shows the lack of judicial independence.

THE FALLING RANKS IN GLOBAL INDICES:

• For a couple of years, India’s standing in almost all the indices/reports dealing with democracy and its features has been consistently falling. For instance, in the recently released freedom in the World 2022report by the American non-profit organization Freedom House, India was described as ‘partly free’ and given a ‘Global Freedom Score’ of 66 out of 100, the same as Malawi and Bolivia. India was assigned a score of 33 out of 40 on the criterion of ‘Political Rights’, and 33 out of 60 on that of ‘Civil Liberties’.
• In V-Dem Institute’s latest Democracy Report 2022, India continues to be categorized as an ‘electoral autocracy’, a status to which it had been downgraded for the first time in last year’s Democracy Report. Last year’s report, however, had expressly stated that India could belong to the higher category of ‘electoral democracy’ by designating it as ‘EA+’. However, in this year’s report, it has been designated ‘EA’, indicating that there is no uncertainty about its status. In previous years’ reports, India had been classified as an electoral democracy.

HUMAN RIGHTS VIOLATIONS AND MEDIA FREEDOM:

• Human rights violations are also on the rise, especially among minorities, human rights defenders, activists, etc. For instance, an octogenarian under trial prisoner suffering from Parkinson’s disease and other complications was denied even medical bail, and he died in judicial custody.
• The encounter policy of a state in India is infamous for providing what they call instant justice as also for its “ freedom of religion law” that has set off a culture of “ mob-vigilantism”.
• In another state, the controversy over the wearing of a particular type of dress by the students of a community has been used to further polarising society and polity.
• The media is being harassed and victimized by foisting sedition charges, raids by investigative agencies, and even by stopping transmission of a TV news channel allegedly on the ground of national security violation.
• The controversial IT Rules, 2021 are also held to be another attempt at media censorship by the executive.

ATTACKS ON THE CIVIL SOCIETY:

• Civil Society repression has also significantly increased in India not least by the FCRA amendment. Amnesty International had to shut down its operations due to repeated harassment by the government. Recently, the NSA, Mr. Ajith Doval, has characterized civil society as the “fourth frontier of war”. The space for civil society activism and action has been declining substantially in India.

CONCENTRATION OF WEALTH AND INEQUALITY:

• Constitutional democracy is also social and economic democracy. But in India, the wealth, opportunities, and life changes seem to concentrate on a chosen few.
• As per the Oxfam Inequality report 2021, the collective wealth of India’s 100 richest people hit a record high of Rs 57.3 lakh crore (USD 775 billion). In the same year, the share of the bottom 50 percent of the population in national wealth was a mere 6 percent.
• What is particularly worrying in India’s case is that economic inequality is being added to a society that is already fractured along the lines of caste, religion, region, and gender.

ARBITRARY USE OF CRIMINAL AND PENAL PROVISIONS:

• The special criminal laws dealing with terrorism, drug trafficking, money laundering, national security, etc, are being liberally used and misused.
• Section 124A, UAPA, NSA, and PMLA have been held to be applied for offenses not actually attracting the rigours of these laws.
• With their stringent bail conditions, the accused suffers from prolonged incarceration and the process itself becomes the punishment.

VIOLATION OF FEDERAL PROVISIONS OF THE CONSTITUTION:

• The federal relation between the Union and the States has been severely strained in recent times. It is alleged that the Union is trying to undermine the federal provisions of the Constitution.
• By intruding into the State’s sphere of competence, exploiting the positions of the governors, amending the All-India Service rules, delaying financial compensation, deploying central agencies against opposition leaders, etc the Union is trying to make states its appendages, it is alleged.

HOW JUSTIFIED IS THE DICHOTOMY OF ELECTED AND CONSTITUTIONAL DEMOCRACY IN THE INDIAN CONTEXT?

INDEPENDENCE OF ACCOUNTABILITY INSTITUTIONS:

• In India, the accountability enforcing institutions have been functioning independently. There are legislative constraints on executive aggrandizement through motions, debates, votes, committees, etc. The bulwarks of the Constitution, like the ECI, CAG, UPSC, etc, have carried out their constitutional mandate without executive interference.
•  India also has the mechanism of Social Accountability through Social Audit, Citizen Charter, RTI, etc, which are effective tools at the hands of the general public and the civil society to demand executive answerability.

JUDICIAL REVIEW AND ITS IMPACT:

• As judicial review is an essential aspect of constitutional democracy, the higher courts in India have reviewed the legislation and executive actions.
• For instance, in 2021, the SC has read down part of Part IXB of the Constitution due to the lack of legislative competence of the Union. In the case of Pegasus, the SC has established a committee of inquiry to uncover the truth.
• In Covid-19, the HCs and the SC have been consistently taking the executive to task for ineffective management of the pandemic.

A VIBRANT CIVIL SOCIETY AND MEDIA:

• India has the largest civil society ecosystem working in multiple areas free from any illegal constraints.
• The media is also thriving in India and the print, visual and social media have been growing in the country.
• The government does not regulate the media, which is essentially self-regulated and enjoys freedom from governmental interference.

MAJORITY VS MINORITY BINARY IS NOT APPROPRIATE:

• The majority vs minority dichotomy is not an appropriate description of Indian society that is known for multiculturalism.
• The Constitution itself provides specific fundamental rights to the minorities, both linguistic and religious, and the government has taken steps to promote the welfare and development of minorities.
• For instance, the Prime Minister’s New 15 Point Programme for the welfare of Minority Communities, etc. have been implemented by the Union government for their educational and economic empowerment.

BIASNESS IN GLOBAL RANKINGS:

• The global rankings have a western bias, as articulated by the External Affairs Minister and their methodology is highly suspect.
• These indices fail to capture the Indian way of democracy and hence do not provide an accurate picture of the country.

THE WAY FORWARD

BUILD A GENUINE ELECTORAL DEMOCRACY:

• The weakening of other democratic forums and procedures has made elections crucial to the well-being of India’s democracy. This explains the need for a heightened focus on the electoral system, party system, and electoral politics.
• Thus, there should be studies and research on the Election Commission, electoral laws, reforms, legislations, and judicial decisions pertaining to elections. Genuine electoral democracy is a must for constitutional democracy.

INSTITUTIONAL IDENTITY OF THE LEGISLATURE:

• In Indian Parliamentary democracy, the legislature has not been truly independent of the executive in that the executive control of the legislature is a feature of Indian democracy. Thus, in effect, law-making becomes the function of the executive.
•  But, to exercise legislative control over the executive, the Parliament should reinvent its institutional integrity, which is a step towards strengthening constitutional democracy.

DEVELOP CIVIC CITIZENSHIP:

• There is a difference between being a citizen in a constitutional democracy and being a subject in an authoritarian or totalitarian regime. In a democracy, each citizen is a full and equal member of a self-governing community endowed with certain fundamental rights, as well as certain responsibilities.
• Constitutional democracy requires informed and effective participation by citizens who understand and have a reasoned commitment to its fundamental principles and values, as well as a familiarity with its political processes.
• Competent and responsible citizenship require not only knowledge and understanding but the development of intellectual and participatory skills essential to civic life.

TOLERATION OF DIVERSITY:

• The State and the society should respect the right of others to differ in ideas, ways of life, customs, and beliefs.
• Citizens should appreciate the benefits of having people of diverse beliefs and ethnic and racial backgrounds as a part of their community, as well as an understanding of how and why diversity can exacerbate tensions.

NEED AN ETHICAL ADMINISTRATION:

• The administrative apparatus has a duty to uphold constitutional principles and should not act as a regime force of the executive.
• The administrative leadership needs to show the way so that the rights and freedoms of people are not sacrificed for personnel aggrandizement.

THE CONCLUSION: Although it may be true that India has seen some slide in aspects of democracy, it would not be right to hold the Union government alone responsible for it. The decline in democracy has been a worldwide phenomenon, as documented by reputed institutions. However, given India’s strong democratic foundations, independent institutions, vibrant political culture, and media landscape, India can address the problems. Constitutional democracy is a work in progress and hence a systemic approach should be initiated by keeping the Constitution at the center. The judiciary, legislature, and the citizens have a solemn duty to speed up this process.

Questions:

1. Distinguish between electoral democracy and constitutional democracy. Do you think that India has become an electoral democracy? Argue.
2. “Constitutional democracy is hollow without electoral democracy” Comment.
3. How does electoral democracy undermine constitutional democracy? Explain with examples.

THE CONTEXT: The Delhi Municipal Corporation (Amendment) Bill, 2022, was introduced and passed in the Lok Sabha on March 25, 2022, for the unification of the three municipal bodies in the capital. The Bill seeks to amend the Delhi Municipal Corporation Act, 1957, passed by Parliament. The Central Government claims that this move will improve municipal governance, but there is a contrarian view. This article analyses this issue in detail.

THE SALIENT FEATURES OF THE DELHI MUNICIPAL CORPORATION (AMENDMENT) BILL, 2022

UNIFICATION OF MUNICIPAL CORPORATIONS: The Bill replaces the three municipal corporations of North, South, and East Delhi under the Act with one Corporation named the Municipal Corporation of Delhi.

POWERS OF THE CENTRAL GOVERNMENT:

The Bill empowers the Central government to decide various matters including:

1. total number of seats of councilors and number of seats reserved for members of the Scheduled Castes,
2. division of the area of corporations into zones and wards etc.

NUMBER OF COUNCILLORS: The Bill states that the total number of seats in the new corporation should not be more than 250 while the earlier number was 272.

REMOVAL OF DIRECTOR OF LOCAL BODIES: The Act provides for a Director of Local Bodies to assist the Delhi government and discharge certain functions, but the Bill omits the provision for a Director of Local Bodies.

SPECIAL OFFICER TO BE APPOINTED BY THE CENTRAL GOVERNMENT: The Bill provides that the central government may appoint a Special Officer to exercise powers of the Corporation until the first meeting of the Corporation is held after the commencement of the Bill.

E-GOVERNANCE SYSTEM FOR CITIZENS: The Bill adds that obligatory functions of the new corporation will include establishing an e-governance system for citizen services on an anytime-anywhere basis for a better, accountable, and transparent administration.

DO YOU KNOW?

The Delhi Municipal Corporation Act, 1957 was enacted to consolidate and amend the law relating to the Municipal Government of Delhi. A Corporation charged with the Municipal Government of Delhi was established under the said Act as the Municipal Corporation of Delhi. In 2011, the said Act was amended by the Legislative Assembly of the National Capital Territory of Delhi vide the Delhi Municipal Corporation (Amendment) Act, 2011 leading to the trifurcation of the said corporation into three separate Corporations.

THE RATIONALE FOR THE UNIFICATION OF THE MUNICIPAL CORPORATIONS

NON FULFILLMENT OF MAIN OBJECTIVE:

• The main objective of the trifurcation of the erstwhile Municipal Corporation of Delhi was to provide more efficient civic services to the public.
• Due to inadequacies in resources and uncertainty in fund allocation and release, the three corporations have been facing huge financial hardships, making it difficult to maintain the civic services in Delhi at the desired levels.

ADMINISTRATIVE CHALLENGES:

• The trifurcation was also uneven in terms of territorial divisions and revenue-generating potential.
• As a result, there was a huge gap in the resources available to the three corporations compared to their obligations.

DELAYED PAYMENTS AND EMPLOYEE STRIKES:

• Due to poor financial conditions, payment of salaries and retirement benefits to their employees was delayed.
• This has resulted in frequent strikes by the municipal employees, which have not only affected civic services but also created concomitant problems of cleanliness and sanitization.

INTEGRATED PLANNING AND DEVELOPMENT:

• A single, integrated, and well-equipped entity will ensure a robust mechanism for synergized and strategic planning and optimal utilization of resources and will bring about greater transparency, improved governance, and more efficient delivery of civic service.

REDUCING ADMINISTRATIVE EXPENSES:

• There are three mayors, three commissioners, and 12 additional commissioners. Even different MCDs have different committees. This has increased the expenses manifold and is one of the major contributors to the financial crisis of the MCDs.
•  Unification will definitely curtail the office and meeting expenses along with the expenses which are being done by the leaders and officers.

CITY-LEVEL POLITICAL LEADERSHIP:

• When the MCD was unified, the mayor was treated as the First Citizen of Delhi, and the post used to carry a lot of weight.
• Mayor has to be called for most of the ceremonial events. Even foreign dignitaries used to meet the mayor of Delhi.
• Once unified, not just in the post of mayor but as an institution, MCD will have a larger say in the policymaking of the capital and the mayor will provide a single political leadership at the municipal level.

CRITICISM OF THE UNIFICATION OF THE CORPORATIONS OF DELHI

LACK OF LEGISLATIVE COMPETENCE:

• Many Members of Parliament argue that Parliament was overreaching its legislative authority to amend the Bill.
• Since the Act for trifurcation was passed by the Delhi Assembly, therefore Parliament cannot pass a law to merge the three civic bodies. The Constitution has given powers to the states to constitute municipal corporations.

POSTPONEMENT OF ELECTIONS:

• The municipal corporation elections were scheduled to be held in April. However, on March 9, the State Election Commission (SEC) deferred the polling indefinitely, citing a communication from the Lieutenant Governor, an appointee of the Central Government.
• It is alleged that the party ruling the MCDs sensed a strong anti-incumbency and hence used the “unification” strategy to defer the polls.

POLITICAL REASONS:

• The unification of municipal corporations could have been done in the last few years, as the same party has been in power in the Centre since 2014.
•  The real purpose of the unification is not the efficiency of municipal governance but the creation of a parallel system of governance to compete with the “Delhi Model” and to reap political dividends.

NO REAL REFORMS:

• The Bill doesn’t bring any substantive governance, administrative or financial reforms to the MCD.
• It does not mention the governance structure of the unified MCD and the status of the Mayor and the Council members vis a vis the administration.
• The Bill also missed an opportunity to establish a unified administrative and governance system by bringing the parastatals and the Special Purpose vehicles under the control of the Municipal Corporation.

QUESTION MARK ON INDEPENDENCE OF SEC:

• The postponement of the election also raises a question about the agency of an autonomous body such as the State Election Commission, whose prima facie job is to ensure free and fair elections in the country.
• The body seems to have succumbed to pressure from the central government.

AN ALL-POWERFUL CENTRAL GOVERNMENT: The Bill provides for overarching powers for the Central Government like:

• naming or resizing any zone or ward,
• listing out the obligatory functions of the MCD,
• rules on declaring assets of councilors,
• the appointment and pay scale of the commissioner,
• approvals for loans and action against any councilor or MCD official etc.

This is not in sync with the idea and practice of democratic decentralization and the spirit of the 74^th Constitutional Amendment.

SKEWED REPRESENTATION: 

• The total number of municipality wards will be reduced from 272 to 250, which goes against logic as the population of Delhi has increased from the last delimitation.

BUREAUCRATIC DOMINANCE:

• The reduction in the number of municipality wards will necessitate a delimitation exercise.
• Due to delimitation, the election will be delayed by one or two years. The Bill is silent on the “Census” based on which the delimitation will take place.
• All these mean that the special officer appointed by the Centre will be the overlord of the MCD.

A STRONG BUREAUCRACY AND A WEAK DEMOCRACY: A CASE STUDY OF MCD

• Delhi Municipal Corporation faces a unique kind of tussle between the elected and administrative wings. While the mayor has mostly ceremonial rights, the administrative decisions are being taken by the commissioner and his team.
• The IAS officers come on deputation to serve their MCD tenure, and the political wing claims that they are the real reason behind the mismanagement of financial and even administrative situations of Delhi Municipal Corporation.
• It was a long-pending demand to provide more powers to elected representatives, including the mayor, the standing committee chairperson, and heads of different committees.
• A change in the system in the favour of elected representatives by bringing the mayor into the council which will provide more administrative powers to the mayor needs to be established. This long-pending demand needs to be looked into the new amendment, which is based on the Kolkata Municipal Corporation.

THE WAY FORWARD

SUSTAINABLE SOLUTIONS TO GOVERNANCE PROBLEMS OF DELHI:

• Multiple power centers are operating in Delhi, and the tussle between the Centre and the NCT government has been a recurrent phenomenon.
• What is required is to iron out the differences, reform the Constitutional and legal provisions and bring about a clear demarcation of roles and responsibilities of the political and administrative institutions.

PROVIDE SCOPE FOR OWN REVENUE GENERATION:

• Even before the trifurcation, the MCD has taken loans from the then Delhi government to pay salaries to the staffers.
• Without addressing the issues in revenue generation and other core issues, the civic body will find itself in financial troubles again and will have to depend on the government for funds.

REFORMS IN MUNICIPAL GOVERNANCE:

• Under the present system, mayors and other appointments are made for a year and by the time a person starts understanding the mechanism, the tenure gets over.
• Thus, the new amendment should bring reforms like the direct election of the mayor, his / her tenure being increased to at least two-and-half years instead of the existing one year, and provisions for allocation of funds directly from the Centre.

REFORMS IN TAXATION:

• In Delhi, the house tax rates have not been increased since 2004, and the MCD continues to collect taxes based on the same rates, which is basically loss-making. So, with the unification must come hardline taxation reforms to address these issues.

DECENTRALIZE POLITICAL AND ADMINISTRATIVE POWER:

• Growing population and vast geographical spread were cited among the reasons for the trifurcation, which was to lead to decentralization of administration for better delivery and governance with each commissioner overseeing services for a smaller area.
• With unification, there may be the problem of centralization of authority which needs to be addressed by empowering political and administrative leadership at zonal and ward levels.

AUTONOMY OF SEC AND CONDUCT OF ELECTIONS:

• That the SEC is and should be independent of the government is a maxim often stated. But how the SEC acted in the current context seems to undermine the exalted position of this constitutional authority.
• Also, the amendment and associated processes should not come in the way of citizens of Delhi exercising their legitimate democratic rights of choosing their own local representatives.

THE CONCLUSION: While the reunification will help save on expenditure and bring parity, making the civic body self-reliant will have to be the primary target. Whatever money is saved will not be enough to make the municipal institutions self-governing and deliver quality civic services. The major issue that needs resolution is the power tussle among the Centre, the Delhi government, and the municipal bodies, without which the unification exercise will not provide optimal results. Another crucial reform required is in the area of “City Governance” and Delhi must be developed as a model for other Indian cities.

QUESTIONS:

1. Critically analyse the features of the Delhi Municipal Corporation (Amendment) Bill, 2022.
2. The unification of the municipal corporations of Delhi, although maybe a right step toward administrative efficiency, will not be sufficient to ensure the quality delivery of public services. Examine.
3. The Delhi Municipal Corporation (Amendment) Bill, 2022, is all politics, less economics, and no governance. Critically Examine.
4. Without comprehensive constitutional, legal and financial reforms concerning municipal governance, Adhoc administrative reform measures will not bring good governance at the city level. Illustrate and Comment.

THE CONTEXT: The legislative bodies in India require expert secretarial assistance for carrying out their multiple responsibilities. However, the current legislative personnel administration suffers from many weaknesses. Hence, it is suggested that an Indian Legislative Service is needed. This article examines this issue in detail.

THE INDIAN LEGISLATIVE SERVICE(ILS): AN OVERVIEW

The ILS can be another All-India Service similar to the IAS, IPS, etc, that is centrally recruited, trained, and assigned to the legislative bodies, especially at the Union and State levels. The ILS can be the backbone of the legislative bodies equipping them to carry out the mandated functions. The idea of ILS became vogue in the backdrop of the appointment and abrupt removal of a Secretary-General (SG) of the Rajya Sabha in whose place a retired Indian Revenue Service official assumed charge. This has generated a debate on the need for an independent legislative service that will cater to the needs of all the legislative institutions in the country, including at the local level.

WHY DO WE NEED AN ILS?

TO FULFILL THE CONSTITUTIONAL MANDATE:

• Article 98 of the Constitution provides for the scope of separate secretariats for the two Houses of Parliament. The same goes true for the state legislatures too. This means that the secretariats should be independent of the executive government.
• However, sourcing manpower from the executive branch may lead to the violation of the concept of independence and conflict of interests. It breaches the principle of separation of power.

UPHOLDING EXECUTIVE ACCOUNTABILITY:

• A separate secretariat marks a feature of a functioning parliamentary democracy. In a parliamentary system, the Parliament must watch over the executive, both political and permanent.
• Thus, the Parliament should have the technical and human resource capacity to be an effective body for providing meaningful scrutiny and enforcing accountability.

EXPERTISE IN PARLIAMENTARY PROCEDURES:

• Serving/retired civil servants appointed to the higher posts suffer from a lack of exposure and poor knowledge of Parliamentary procedures.
• Expertise in Parliamentary functioning is not only a product of domain competency but also of experience. A dedicated service like the ILS can address this problem.

SIGNIFICANCE OF THE POST OF THE SECRETARIES-GENERAL:

• The Secretaries-General of both the Houses are mandated with many Parliamentary and administrative responsibilities.
• One of the prerequisites that demand the post of the Secretary-General is unfailing knowledge and vast experience of parliamentary procedures, practices, and precedents. Most civil servants precisely lack this aspect of expertise.
• A dedicated ILS will provide a wider talent pool of qualified, experienced, reliable, and autonomous human resources for selection to man the crucial post of SG.

GROWTH OF LEGISLATIVE INSTITUTIONS:

• With the 73^rd and 74^th Constitutional Amendments, thousands of legislative bodies have come up at the local level in India.
• Although the local self-government institutions may not be comparable to those at Union and State levels, still they have significant roles and functions in the democratic setup.
• An ILS will prove to be the vital missing link that enables these bodies to act as institutions of “self-government” in the true sense.

VERTICAL INTEGRATION OF LEGISLATIVE INSTITUTIONS:

• There is hardly any mechanism for a continuous interaction or sharing of knowledge resources among the legislative institutions. The annual Presiding Officers’ conference cannot fulfill this need for continuous administrative engagement.
• By providing a common pool of dedicated human resources to these bodies will bring vertical linkage among them, which will be beneficial for learning about best practices, legislative businesses, and Parliamentary innovations, among others.

CHALLENGES OF MODERN GOVERNANCE:

• The growth of modern government and expansion of governmental activities require a matching development and laborious legislative exercise. The legislators being laypersons, need expert assistance so that they can discharge their functions effectively.
• For the government, the bureaucracy acts as the think tank and thus, the Parliament also needs a think tank and the ILS is the best bet in this regard.

HOW IS THE SECRETARIAT ORGANIZED AT VARIOUS LEVELS?

In general, the personnel of the Parliament is recruited by the respective Houses themselves. For instance, the Rajya Sabha Secretariat conducts open competitive examinations for filling up vacancies in specified posts. Other modes of recruitment are a deputation from Central/State governments and legislature secretariats, promotion from existing secretariat services, lateral entry, and appointment of serving/retired civil servants, especially in higher-level positions. A similar arrangement exists at the State level, although variations may be there. At the local level, the practice of Parliamentary form is still in the nascent stage; the practices considerably vary across states. Here a uniform pattern is not visible, and the administrative personnel generally are state government employees.

FORMER CBDT CHAIRMAN PC MODY REPLACES PPK RAMACHARYULU AS SECRETARY-GENERAL OF RAJYA SABHA

Less than three months after being appointed as the Secretary-General of the Rajya Sabha, PPK Ramacharyulu has been replaced with former Central Board of Direct Taxes (CBDT) chairman PC Mody. Mody has been appointed as the new Secretary-General of the Rajya Sabha just weeks before the commencement of the Winter Session of Parliament, which is expected to start on 29 November. Mody, a former chairman of CBDT, will be the new Secretary-General of the Upper House of Parliament. Rajya Sabha Chairman M Venkaiah Naidu has signed an order to this effect.

Mody, a 1982-batch Indian Revenue Service (IRS) officer, being appointed as the Secretary-General of the Upper House marks a rare occasion when an IRS officer has held the post. Most of the time, the post is traditionally held by an IAS officer. Ramacharyulu has now been appointed as an advisor in the Rajya Sabha Secretariat. Ramacharyulu was appointed as the Secretary-General of the Rajya Sabha on 1 September.2021. No reason has been given for his replacement.

According to reports, Ramacharyulu goes down in history for having the second shortest stint as Secretary-General. Mody is a 1982 IRS officer who was given three extensions as CBDT chairman since August 2019. The Secretary-General heads the Secretariat of the House and is seen as the eyes and ears of the Rajya Sabha chairman when it comes to matters of rules and procedures. The position of SG is a crucial one in the Parliamentary system.

According to the Rajya Sabha website, the SG is the parliamentary adviser to the RS chairman and through him to the House. The SG is also the administrative head of the RS Secretariat and, overall, in charge of all administrative and executive functions on behalf of, and in the name of, the Chairman. There are no recruitment rules for appointing SG to LS or RS. It is completely the discretion of the Speaker, in the case of Lok Sabha and Chairman in the case of Rajya Sabha, to appoint whoever they think is suitable for the post.

SOURCE: THE FIRSTPOST.COM

PROBLEMS IN THE IDEA OF INDIAN LEGISLATIVE SERVICE?

VIOLATION OF THE CONSTITUTION:

• Article 98 of the Constitution gives power to the Houses to deal with all the aspects of secretariat personnel administration. Recruitment and appointment done by another agency will be deemed as going against this provision.

INHERENT ISSUES IN AIS:

• AIS has been severely criticized by many states as going against the federal provisions of the polity, and a new AIS is likely to add fuel to the fire.
• Also, it is highly doubtful if this new AIS will have the proposed efficiency given the less-than-optimal efficiency of other All-India Services.

IMPACT ON CAREER ADVANCEMENT OF EXISTING CADRE:

• Appointees to the Secretariat from the ILS will be holding middle to senior-level posts which will adversely impact the career advancement opportunities of the existing cadre of employees and officers.

NO EMPIRICAL DATA:

• Hardly any study is conducted that shows that the ILS is the solution for the present problems faced by legislative institutions.

STRUCTURAL CONSTRAINTS OF LEGISLATURES:

• The legislatures’ functions, including law-making, suffer from multiple structural constraints, including poor productivity, lack of consensus on crucial issues, criminalization of politics, etc.
• An ILS is not going to be the solution to the problems of legislatures in India.

PRACTICAL DIFFICULTIES:

• The idea of an ILS seems to be naïve as the supporters have not bothered to find out the practical difficulties in implementation, including the huge financial burden on the exchequer.

POSITIONS OF THE LOCAL BODIES:

• The positions of the local self-government institutions in India are not one of a legislative body and the structure and practice of the parliamentary system hardly exist at this third tier.
•  There exists a lot of confusion about the actual role of PRI/ULB in Indian governance. An ILS is deemed to be a misfit and results in a waste of resources in such a context.

THE CLERK OF THE HOUSE- THE PARLIAMENT OF THE UNITED KINGDOM

The Clerk of the House is the principal constitutional adviser to the House and adviser on all its procedure and business, including Parliamentary privilege, and frequently appears before Select and Joint Committees examining constitutional and Parliamentary matters. As with all the members of the House Service, he is politically entirely impartial and is not a civil servant.

THE WAY FORWARD

• The legislative institutions have to be equipped to carry out their responsibilities efficiently and effectively which requires a competent human resource-based secretariat system. The Parliament and state legislatures may bring laws to provide for a streamlined personnel system independent of the executive.
• The idea of an ILS may be worth trying, provided a political consensus is reached on its modalities of establishment and other details, but whose appointment needs to take care of the current nature of Indian polity.
• It is not advisable due to efficiency, impartiality, and moral considerations to appoint serving/retired Civil Servants to the higher-level positions and it is necessary to have a select pool of officers from the inside cadre who should be trained and groomed.
• To ensure effective parliamentary control over the executive and to provide for efficient Parliamentary functioning, the structural constraints faced by the institutions need to be addressed.
• Parliamentary Research and Training Institute for Democracies (PRIDE) is an integral part of the Lok Sabha Secretariat to provide parliamentarians, staff, and others with institutionalized opportunities for systematic training in the various disciplines of parliamentary institutions, processes, and procedures. Another such platform is PRISM (Parliamentary Research and Information Support for Members of Parliament). These platforms need to be utilized for enhancing the human resource competency of the personnel, and a similar setup must be established at the state level.

THE CONCLUSION: Every time inefficiency and poor standard of the administration is debated, the ready-made solution seems to be a new AIS be it in areas like environment, health, education, judiciary, or others. This purported solution is oblivious to the inefficiencies and poor standards in the existing AIS as often brought out by many committees and commissions. Thus, bringing another AIS in the form of ILS is not the panacea for the ills of the Indian Parliamentary system. The legislative institutions at the Union and the State level need to develop into independent institutions in the truest sense like that of developed nations and not become vulnerable to executive interference.

QUESTIONS:

1. “An efficient secretariat system is a sine qua non for an efficient Parliament”. How far do you think that an Indian Legislative Service will contribute towards enhancing the productivity of the Parliament?
2. A strong Parliament means a more answerable executive. Thus, an Indian Legislative Service is the need of the hour. Comment.
3. The proposal for setting up an Indian Legislative Service suffers from constitutional, political, administrative, and pragmatic challenges. Examine.
4. “The Secretary-General of the Rajya Sabha is the principal Parliamentary advisor to the Chairman of the Council of the States”. Discuss.

ADD TO YOUR KNOWLEDGE

THE SERVICES OF THE LOK SABHA SECRETARIAT

(I)Legislative, Financial Committee, Executive and Administrative Service (LAFEAS)

(II) Library, Reference, Research, Documentation, and Information Service (LARRDIS)

(Ill) Verbatim Reporting Service (VRS)

(IV) Private Secretaries and Stenographic Service (PSSS)

(V) Simultaneous Interpretation Service (SIS)

(VI) Printing & Publications Service (P&PS)

(VII) Editorial and Translation Service (E& T)

(VIII) Parliament Security Service (PSS)

(IX) Drivers and Despatch Riders Service

(X) Messengers Service

(XI) Parliament Museum Service (PMS)

THE FUNCTIONS OF THE RAJYA SABHA SECRETARIAT

The Rajya Sabha Secretariat functions under the overall guidance and control of the Chairman, Rajya Sabha. The main activities of the Secretariat inter alia include the following:-

1. providing secretarial assistance and support to the effective functioning of the Council of States (Rajya Sabha);
2. the payment of salary and other allowances to the Members of Rajya Sabha;
3. providing amenities as admissible to Members of Rajya Sabha;
4. servicing the various Parliamentary Committees;
5. preparing research and reference material and bringing out various publications;
6. recruitment of manpower in the Rajya Sabha Secretariat and attending to personnel matters; and
7. preparing and publishing a record of the day-to-day proceedings of the Rajya Sabha and bringing out such other publications as may be required concerning the functioning of the Rajya Sabha and its Committees.

In the discharge of his constitutional and statutory responsibilities, the Chairman, Rajya Sabha, is assisted by the Secretary-General, who holds the rank of the Cabinet Secretary to the Government of India. The Secretary-General, in turn, is assisted by senior functionaries at the level of Secretary, Additional Secretary, Joint Secretary, and other officers and staff of the Secretariat. Based on the recommendations of the Parliamentary Pay Committee way back in 1974, the Secretariat was restructured on a functional basis into the following Services, which cater to the specific needs of the House and its Committees.

1. The Legislative, Financial, Executive, and Administrative (LAFEA) Service
2. The Library, Reference, Research, Documentation, and Information (LARRDI) Service
3. The Verbatim Reporting Service
4. The Simultaneous Interpretation Service
5. The Editorial and Translation Service
6. The Private Secretaries and Stenographic (PSS) Service
7. The Printing and Publications (P&P) Service
8. The Watch & Ward, Door Keeping, and Sanitation Service
9. The Drivers and Despatch Riders Service
10. The Messenger Service

THE CONTEXT: The SilverLine project – a semi high-speed rail corridor that connects one end of Kerala to the other – has been mired in controversy. The project, which has been in the making for the past 12 years, has drawn flak from activists, engineers, and the people who will be displaced by land acquisition. But the state government seems to be determined to proceed with the project. This article analyses this issue in detail.

ALL YOU NEED TO KNOW ABOUT THE SILVERLINE PROJECT

WHAT IS SILVERLINE?:

• The SilverLine is proposed as a stand-alone, standard gauge, electric, fully fenced rail line corridor.
• The proposed 529.45-km line will link Thiruvananthapuram in the south to Kasaragod in the north, covering 11 districts through 11 stations.
• The deadline for the completion of the project is given as 2025.

TECHNICAL FEATURES:

• When the project is completed, one can travel from Kasaragod to Thiruvananthapuram in less than four hours at 200 km/hr. On the existing Indian Railways network, it now takes 12 hours.
• The project will have electric multiple unit (EMU) trains, each with preferably nine cars extendable to 12.
• A nine-car rake can seat a maximum of 675 passengers in business and standard class settings.

IMPLEMENTING AGENCY:

• Kerala Rail Development Corporation Limited (KRDCL) or K-Rail, a joint venture between the Kerala government and the Union Ministry of Railways created to execute big railway projects, is the project’s proponent.

FINANCIAL REQUIREMENT:

• The corridor is projected to be built at the cost of Rs 63,941 crore.
• The line is expected to be constructed using equity funds from the Kerala government, the Centre, and loans from multilateral lending agencies.

CURRENT STATUS OF THE PROJECT:

• The Centre has only given in-principle approval to the project but the state government has begun the process of land acquisition.
• Out of 1,383 hectares needed to be acquired, 1,198 hectares will be private land.
• As part of the first acquisition stage, local revenue and K-Rail officials are on the ground, demarcating land and placing boundary stones that have faced strong public opposition.

SILVERLINE: THE REQUIREMENT OF THE TIME FOR THE PEOPLE OF KERALA

Even though known to be a linear state with a population of only 3.45 crores, Kerala is commonly divided and called Southern Kerala, Central Kerala, and Northern Kerala. The Highways are choked with the rush of vehicles. The existence of residential and commercial establishments along the major highways makes road development a dream that will not happen shortly. With road development at standstill, new vehicles are entering the roads of Kerala at the rate of 1 million per year.

Considering the capacity of traffic served by the rail corridor and the comparatively fewer resources required for realizing rail projects, a rail corridor connecting the North and south ends of Kerala seems ideal for the state. Since the existing rail corridor is serving the trains to travel at a low speed of 45km/hour only, the Government of Kerala in association with the Ministry of Railways has decided to construct a Semi high-speed rail corridor of 529.45 km length from Thiruvananthapuram to Kasaragod which will take only 4 hours to travel between the two cities by traversing at a dream speed of 200 km/h. This project is known to be “Silverline”.

POTENTIAL BENEFITS OF THE SILVERLINE PROJECT

FULFILLS THE TRANSPORT DEMAND:

• The existing railway infrastructure in the state cannot meet the demands of the future. The government claims the project can take a significant load of traffic off the existing railway stretch and make travel easier and faster for commuters.
• This will in turn reduce the congestion on roads and help reduce accidents and fatalities.

INDUSTRIAL AND ECONOMIC DEVELOPMENT:

• The project estimates that 2,80,000 hrs worth of human time and effort could be saved and directed towards other constructive purposes. It will lead to a significant increase in human productivity and efficiency.
• It will help in the expansion of Ro-Ro services, produce employment opportunities, integrate airports and IT corridors, and faster development of cities it passes through.
• The improved connectivity will increase business opportunities, ease of doing business, and industrial development.

ENVIRONMENTAL BENEFITS:

• Building capacities today to achieve a carbon net neutral world over the next three to four decades is the core aspect of the national strategy of all countries.
• High-speed rail systems leave a smaller carbon footprint than other modes of transport.

INTERNATIONAL EXPERIENCE:

• Japan’s high-speed rail system was developed and implemented by that country’s national railways when it was under immense financial stress due to borrowings. High-speed railways are also one of the factors that have spurred development in China.
• When the London underground railway was conceived, it was considered financially unviable. But today, the city of London’s economic activities would be inconceivable without it.

DEVELOPMENT OF TOURISM:

• SilverLine can provide easy, safe, and fast transportation facilities from the southern tip to its northern frontier. This would promote tourists to choose multi-destination tourism packages. It will create large opportunities for the tourism sector of Kerala.
• The SilverLine project will provide a huge growth potential in the tourism sector, which contributes to 10% of the domestic production of the state.

PUMP PRIMING THE ECONOMY:

• A major way to tackle the economic slowdown is to spend money on infrastructure development. Spending money on developing infrastructure will only do good, whatever the economic scenario.
• Infrastructure development will ultimately provide a huge boost to the employment/business market. These kinds of infrastructure projects are even more important in the current situation where the economic scenario is deteriorating due to Covid-19.

ATMA NIRBHAR BHARAT AND MAKE IN INDIA: 

• The technology and manufacturing companies required for the project are available in India itself. Rolling stock (train) can be manufactured in India by including it in the ‘Make in India’ scheme.
•  Several international manufacturers of trains have their units in India. The Silverline project has been developed in line with the public procurement policy of the Central government and the Atmanirbhar Bharat Scheme.

CRITICISMS OF THE SILVERLINE PROJECT

ENVIRONMENTAL DAMAGES:

• There has been significant opposition by environmentalists citing potential damage to the ecosystem. They fear the irreversible impact on the state’s rivers, paddy fields, and wetlands. This could trigger floods and landslides in the future, they say.
• The Kerala Paristhithi Aikya Vedi, a forum of eco-experts and activists, has called on the government to abandon the project and explore sustainable solutions.

FLAWED EIA PROCESS:

• A Thiruvananthapuram-based research institute, the Centre for Environment and Development (CED) completed a Rapid Environmental Impact Assessment (REIA) on the project. The research institute was not an authorized agency for doing Environmental Impact Assessments (EIA).
• A Comprehensive Environmental Impact Assessment (CEIA) is necessary to cover all the seasons in a year, not a REIA done through just one season.
• The report submitted focused on the project’s positive aspects while ignoring the major negative aspects and fails to suggest plans to mitigate them.

HUGE POPULATION DISPLACEMENT:

• K-Rail estimates that 9,314 buildings would have to be demolished. It is known that at least 10,000 families may have to be relocated. Once the Environment Management Plan (EMP) is complete, this number could be double the estimate.
•  The state has already been under the onslaught of two disastrous floods in recent times that displaced thousands who are still not rehabilitated so are the evictees of several land acquisitions.

THE METROMAN’S OPINION:

• Mr. Sridharan, the Metro Man says that the rail runs parallel to the existing railway line, which isn’t advisable as it would interfere with the future quadrupling of this stretch.
• He adds that SilverLine should be away from the existing line, either elevated or underground. Nowhere in the world high-speed or semi high-speed lines are planned at the ground level.
• According to him, no final location survey has been done on the ground for the Silver Line. Finalizing a railway alignment based on Google Maps or Lidar survey is not acceptable, particularly when land acquisition is being pursued with undue haste. When a final location survey is done, there will be a lot of changes and half the land acquisition will be a waste.

HUGE PUBLIC OPPOSITION:

• A group called Anti-K-rail Janakeeya Samithi(Peoples Committee), formed by those against the project, has also been continuously protesting against its implementation for more than a year.
• The face-off between the people and the police and K-Rail officials has become a regular feature in Kerala with the protestors accusing the police of high-handedness.
• The Chief Minister of Kerala has characterized those opposing the project as anti-development, which has further enraged the people and the opposition parties.

POOR TRANSPARENCY:

• The main project document, the Detailed Project Report or DPR, is still not public. It is also speculated that K-Rail has not yet finalized the DPR.
• It is inconceivable to witness such secrecy and lack of accountability from a state used to top governance rankings.
• Meanwhile, K-Rail has made the alignment (the route) of the corridor public, leading to speculations by people who may lose their land and those who are moving in to grab prime land around the project.

PARTITIONING THE STATE:

• A major part of the Silver Line is designed as a fully fenced large bund, called embankments. Embankments in the project are mud-rock-concrete structures with concrete retaining walls, with a width of 15 to 30 m. These embankments would have a height of 1 to 8 meters above the maximum flood line (MFL). This forms 55% of the total distance of the alignment, which is 292.73 km.
• The project will look like a fort that separates the east and the west of Kerala. Bridges would be provided for people to cross over and drains for water to flow.
• While people may eventually get used to such impediments to their free movement, it will be difficult to stop water overflow, especially the torrential rains and floods that are an annual feature now.

POOR KNOWLEDGE OF LOCAL ECOLOGY:

• An analysis of the REIA shows that literally a watershed in the vicinity of the project in Kerala’s landscape. The rail corridor can block rainwater drainage and aggravate the impact of floods. The report also talks about the project affecting paddy fields and flood plains. The corridor also cuts through the mangrove forests of north Kerala.
• But the report suggests reducing the environmental impact by planting new mangroves after the construction. Neither the project proponents nor the scientists seem to be knowledgeable on matters related to landscape, ecology, and ecosystems.

DETRIMENTAL LAND-USE CHANGES:

• There will be a change in land use in the project area, around 500 meters towards each side of the rail corridor. This means the area and people living 500 meters on both sides of the corridor would be directly affected through mobility, access to resources, and even livelihood.
• Ironically, Kerala does not even have a land-use policy, and the draft of such a policy that was first presented in 2010 is still gathering dust in the Revenue Department.

NO SCOPE FOR INTEGRATION:

• The rail line is a stand-alone standard gauge project, with no integration possible with the present railway projects, which are all broad gauge rail systems. The Silver Line railway stations are away from present railway stations and road or rail networks, making it costly to build new last-mile connectivity.
• K-Rail proposes to raise loans to spend on this project alone. But the corridor would be viable only with such last-mile connectivity in place.

DOUBTFUL FINANCIAL VIABILITY:

• The Centre has also taken a firm stand against the project, stating a small state like Kerala cannot withstand such a huge financial liability.
• The Kerala government was expecting assistance of Rs 2,150 crore from the Centre. But the Centre has rejected the state’s request for a standing guarantee for a foreign loan. Allotment from the central fund is also uncertain.
• More than half the total amount to be spent on the project is expected to come from foreign institutions, but as of now, the Union government has not given its support.
• Independent experts suggest that the project will overshoot the present estimate and run into Rs 2 lakh crore, adding to the already precarious state finances and public debt.

NO SILVERLINE IN KERALA’S SILVERLINE FOR ECOLOGY

Kerala’s Silver Line project, a semi high-speed railway line that proposes to connect the north and south of the coastal state, could be unimaginably disastrous to the region’s fragile ecology. For instance, the Madayipara Biodiversity heritage site in North Kerala’s Kannur district is a laterite hillock surrounded by Kuppam, Ramapuram, and Peruvamba rivers and the ecologically fragile Kavvayi backwaters. The hillock is home to 657 plants, 142 butterfly species, 186 bird species, and 60 species of odonates. It also has 24 species of reptiles, and 19 species of amphibians, which are rare and endangered ones. Though the hillock represents less than 0.01% of Kannur, it harbours 58.75% of the flora in the district.

About 132 km south of Madayipara is the Kadalundi bird sanctuary and its estuarine ecosystem. A little away from Kadalundi, the highly ecologically sensitive Ponnani-Thrissur Kole wetlands remain spread over 13,632 ha, which is considered the third largest of their kind in entire India, after Chilika Lake (Odisha) and Amipur Tank (Gujarat), in terms of the number of birds it supports. Ornithologists note that 241 species of birds, including passerines, have been recorded in these wetlands, of which 30% are migrants.

Close to Ponanni lies Thirunavaya, a village with numerous ponds, lakes, and wetlands. Here, over 30 families meticulously tend lotus flowers to supply to different temples in the state, including the famous Sri Krishna Temple in Guruvayur. Experts observe that the environmental, social, and financial equilibriums of Madayipara, Kadalundi, Ponnani, and Thirunavaya would be badly affected along with numerous other villages between Kasargod in north and Thiruvananthapuram in the far south if the project goes through.

KERALA MODEL OF INFRASTRUCTURE DEVELOPMENT- A POLITICO-BUREAUCRATIC ENTERPRISE?

Kerala seems to be in the habit of bulldozing through technically unviable, financially intensive, and ecologically destructive projects. The Vizhinjam International Port is a classical case study. The project has unleashed an environmental disaster and is also facing a financial breakdown. Many scientists, environmental groups, and fisherfolk had voiced their opposition to this project right from the beginning and were characteristically ignored by the political parties and bureaucrats. The arguments of the public ran the same narrative as in the case of the Silver Line. In the last five years, hills have been quarried for rocks to be deposited into the sea to build the sea wall for the port. But every time the coast is hit by a cyclone or high tidal waves, the walls collapse, wasting precious resources. Only a quarter of the sea wall has been built, and the project has already shot its timeline by nearly two years. It has also eroded the fishing and tourist beaches, including Kovalam and Shankhumukham. Hundreds of fisher families have lost their homes to the sea. The Vizhinjam project, which was hyped to make Thiruvananthapuram a paradise, has now become a center point of disaster.

THE WAY FORWARD:

ADDRESS THE CONCERNS OF ALL THE STAKEHOLDERS:

• Considering Kerala’s fragile landscape and social conditions and the magnitude of the project, a CEIA is imperative. The government has initiated the process for a detailed EIA and also a Social Impact Assessment (SIA).
• Meanwhile, the land acquisition and evictions shouldn’t be going ahead without completing the EIA and SIA and placing them along with the DPR for public consultations.
• People and experts have demanded that all project activities should be stopped till the DPR and EIA are done and made public and all alternatives evaluated.

DEVELOP A COMPREHENSIVE TRANSPORT POLICY:

• Several groups have demanded a comprehensive transport policy in the state instead of the expensive Silverline project.
• This will provide a road map and vision for the development of transport infrastructure in the state based on long-term planning multi-modal integration and can have general public support.

SPEED UP RAILWAY INFRA PROJECTS:

• Kerala must speed up all the ongoing rail projects to allow the lines to run Vistadome coaches and high-speed trains like the Gatimaan Express that continue to use the broad gauge track. The standard gauge track without any future or expandability seems not a good idea.
• The Indian Railways plans to increase the speed of a few trains to 160 km per hour. If this is possible in the existing railway line in Kerala, it would have a transport system whose environmental cost is already paid.

AN HONEST ASSESSMENT OF THE FINANCIAL VIABILITY:

• The capital-intense nature of the project and the impact on Kerala’s finances need independent evaluation as the K-Rail estimates seem to underestimate the project costs.
• Also a debate should be there on the necessity to change the current Centre-State fiscal regime to ensure that States can indeed invest in projects of infrastructural importance.

DECENTRALIZE DEVELOPMENTAL OPPORTUNITIES: 

• The state needs to promote decentralized development, including access to socio-economic infrastructure and employment.
• This will reduce the pressure on existing transport infrastructure, address the problem of climate change and promote environmental sustainability.

LEARNING THE LESSONS FROM THE PAST:

• Kerala needs to learn from the huge destruction that nature unleashed on its people due to its obsession with “development”.
• The politico-bureaucratic elites need to come out of the notion that development means dams, bridges, high-speed rail, multiplexes, etc. only.
• They must also need to base sustainable development policies and practices on developmental discourse and practices.

A FEASIBLE LAND ACQUISITION POLICY:

• The government’s land acquisition policy needs to be tailored so that the pain of displacement and relocation is minimized.

THE CONCLUSION:  A project of this size and complexity will involve issues of implementation, resource mobilization, the important task of measuring the local environmental impact, specific alignment of tracks, and humane compensation policy. All of these can and must be addressed and till then the state government needs to slow down a bit. And if after all the evaluations, the project is found to be unviable, then it is better to look for alternatives.

QUESTIONS:

1. Explaining the salient features of the SilverLine project of the state of Kerala, comment on its social, economic, and environmental implications.
2. “A top-down approach to infrastructural development is not in tune with the idea of sustainable development”. Examine the statement in the light of the Silverline project of the state of Kerala.
3. Democratic decentralization sans developmental decentralization can have major socio-economic and environmental consequences. Illustrate.

THE CONTEXT: The Centre constituted the Ken-Betwa Link Project Authority to implement the first initiative under the national river interlinking policy, which seeks to bring nearly 11 lakh hectares of land under irrigation in the parched Bundelkhand region straddling Uttar Pradesh and Madhya Pradesh. Earlier, the finance minister allocated Rs 44,605 crore for the implementation of the Ken-Betwa River link project for irrigation of the Bundle Khand region in the Union Budget 2022-23.

KEN BETWA LINK PROJECT: OVERVIEW

• It is a river-interlinking project that aims to transfer surplus water from the Ken river in Madhya Pradesh to Betwa in Uttar Pradesh to irrigate the drought-prone Bundelkhand region. Both Ken and Betwa are the tributaries of the Yamuna.
• It is the first river interlinking project, among the 16 similar projects planned under the Peninsular Rivers Development of the National Perspective Plan (NPP).
• The main objective of the NPP is the transfer of water from river basins with surplus water to those with scarce water, for tackling the problem of water scarcity. The NPP comprises the Himalayan Rivers Development and Peninsular Rivers Development.
• The Ken Betwa River linking project, the construction schedule for which has been planned for eight years, will be executed in two phases:
• Phase-I: In the first phase, the Daudhan dam complex and its appurtenances, such as low-level tunnel, high-level tunnel, 221-kilometre Ken-Betwa link canal, and powerhouses will be completed.
• Phase-II: In the second phase, the Ken Betwa link project development works will be started for the lower Orr dam, Bina complex project, and Kotha barrage.

KEN BETWA RIVER LINKING PROJECT TIMELINE

• August 1980: The National Perspective Plan(NPP) is formulated.
• August 2005: MoU signed by state governments of MP, UP, and the ce
• central government to prepare the DPR for the project.
• April 2010: The National Water Development Agency (NWDA) completes the DPR for phase-I of the KBLP.
• January 2014: The NWDA completes the DPR for phase II of the project.
• September 2014: Special Committee on interlinking of rivers (ILR) was constituted, for implementing the ILR program.
• April 2015: A task force for interlinking of rivers was constituted by MoWR, River Development, and Ganga Rejuvenation.
• March 2021: Governments of UP and MP sign an MoU with the Jal Shakti Ministry for implementing the Ken betwa river linking project.
• February 2022: Government announces budget allocation of Rs 44,605 crore for the project during the Union Budget 2022-23.

KEN BETWA PROJECT COST

• The project will be completed at an estimated cost of around Rs 44,605 crores. The Ken-Betwa Link Project Authority, a special purpose vehicle (SPV) for implementing the project will be formed and the central government will bear 90% of the total project cost, while the states will bear the rest (UP and MP).

A Special Purpose Vehicle (SPV) for the project:

• A Special Purpose Vehicle (SPV) called Ken-Betwa Link Project Authority (KBLPA) will be set up to implement the project. In fact, the Centre has set in motion the process of creation of the National Interlinking of Rivers Authority (NIRA), an independent, autonomous body for planning, investigation, financing, and implementation of the interlinking of river (ILR) projects in the country.
• The NIRA will have powers to set up SPV for individual link projects.

KEN BETWA RIVER LINKING PROJECT: BENEFITS AND IMPACT

• The government envisions the interlinking of rivers as a top priority towards sustainable development of water resources in India. The Ken Betwa link project has been planned as a multi-purpose project for providing several benefits in terms of better utilisation of water resources and addressing the water scarcity in several parts of the Bundelkhand region.
• The region is prone to recurring drought conditions that have impacted socio-economic development in the area. Moreover, the location is not rich in groundwater due to the hard rock and marginal alluvium terrain. Hence, the project will help in utilising the floodwater during monsoon and stabilise the availability of water during lean months, especially in drought years.
• The Ken and Betwa river project will also provide annual irrigation and hydropower generation. The districts that will benefit from the Ken Betwa link pariyojna include Chhatarpur, Tikamgarh, Sagar, Damoh, Datia, Vidisha, Shivpuri, and Raisen and Panna in Madhya Pradesh and Jhansi, Mahoba, Banda and Lalitpur in Uttar Pradesh. Due to the project, as many as 62 lakh people in the Bundelkhand region will also experience an improved drinking water supply.

SOCIAL, ECONOMIC, AND ENVIRONMENTAL IMPACTS OF THE PROJECT

Social Impact: A major goal of the project is to provide irrigation to the water-scarce Bundelkhand region. According to the Water Resources Ministry, a total of 10 villages consisting of 1,585 families are likely to be affected by this project.

• Loss of Land: In all 6422.62 ha of private lands would be lost by the project affected families for the construction of the Daudhan dam and other project components along with the canal network under the project. Besides, as per the project design, about 5339.00 ha of forest lands would also be brought under various project components. This indicates that the landowners would lose their landed properties.
• Loss of Livelihood: About 72 percent of households would become landless, nearly 21 percent would become marginal farmers and almost 7 percent will fall under the small farmer category. As a result of land acquisition, the project affected big farmers who would lose their big farmer status.
• Loss of Employment: Due to land acquisition, several families, who become landless, would lose their total self-employment, who otherwise have been engaged in their farming activity.
• Loss of Income: Project-affected household’s socio-economic environment will affect their family life due to loss of land, livelihood, and employment resulting in reduced family income.

Economic Impact:

• This project will prove several economic benefits like the development of agro-based industries, and transportation and storage facilities.
• Increased farm supplies, production, and consumption of fertilizer, pesticide, farm equipment, and employment generation.
• Economic benefits of irrigation water supply include various benefits on, crop production; recharges groundwater, animal husbandry, farm equipment, and agro-processing.
• Livestock production, especially milk, is a major part of the agricultural economy in the Bundelkhand region. Under the project, a large water body will be coming up by constructing a dam and will certainly recharge and increase the groundwater levels in the project area. This will help the farming community as well as other water users who depended on groundwater facilities.
• The project has good potential, particularly because of the close proximity of the Daudhan dam site to Khajurao for recreation and tourism development.
• Provision for the development of tourist huts, and picnic spots has been made on the periphery of Rangwan reservoir (about 9 km from the Daudhan dam site).
• The negative part of the KBLP project is crop and livestock production loss due to the submergence of the crop area upstream of the reservoir.

Environmental Impact:

• This project would submerge an area of 9,000 hectares. Of which 5,258 hectares are forest land (including 4,141 hectares of Panna Tiger Reserve).
• River diversion would bring drastic changes in the physical and chemical compositions of the sediment load, river morphology, and the shape of the delta formed at the river mouth. All these have serious economic and livelihood implications that are merely ignored by the project.
• The project may also lead to a loss of two million trees.
• The land use land cover and vegetation data show that tree density and diversity are comparatively higher in the submerged area.
• The regeneration pattern also shows that the seedling diversity and richness and sapling density diversity and richness are high in the submerged area.
• Minimum flow in the Ken River is adequate to dilute the untreated sewage. Hence the impact on the surface water quality is negligible, which will still be reduced by sewage treatment measures.
• There are valuable timber trees that are going to be submerged.

WILL THE PROJECT AFFECT THE PANNA TIGER RESERVE?

• Panna Tiger Reserve is one of the country’s important and successful tiger recovery reserves.
• A species recovery plan was developed to reinforce the tiger population, because of which the tiger population has increased from 0 in 2009 to 54 in 2019.
• Panna Tiger Reserve was included in the global network of biosphere reserves by the United Nations Educational, Scientific, and Cultural Organisation (UNESCO) in 2020.
• The UNESCO cited PTR as a critical tiger habitat.
• The Project will lead to the submergence of a major portion of the core area of the Panna Tiger Reserve in Madhya Pradesh, triggering a major loss of the tiger and its major prey species such as chital and sambar.
• The project may incur an estimated loss of 58.03 square kilometers (10.07 percent) of critical tiger habitat (CTH) in the reserve.
• There will be an indirect loss of 105.23 sq km of CTH because of habitat fragmentation and loss of connectivity due to submergence.
• The total area submerged would be 86.50 sq km, of which 57.21 sq km lies within Panna Tiger Reserve. This will account for 65.50 percent of total submergence.

THE INTERLINKING OF RIVERS

The National Perspective Plan (NPP) presented the development of water resources through the inter-basin transfer and the transfer of water from water surplus basins to water-deficit basins. The interlinking of rivers is a large-scale civil engineering project that aims to effectively manage water resources in India under the NPP.

Positives of interlinking of rivers for multi-dimensional inter-related problems

Droughts: The drought-prone regions like Vidharbha face perennial droughts. The interlinking of seasonal peninsular rivers with their Himalayan counterparts may be a gamechanger for this region’s agriculture and food security prospects.

Floods: Interlinking of rivers will contribute to flood and drought hazard mitigation for India. It will most likely eradicate the flooding problems which recur in the northeast and the north every year. For example, floodwaters of the Kosi river could be diverted to other east-flowing rivers.

Improve the inland navigation:

• Interlinking of rivers will create a network of navigation channels. Water transport is cheaper, less-polluting compare to road and railways.
• Further, the interlinking of rivers can ease the pressure on railways and roads also.
• More importantly, India has the huge untapped potential of inland water transport, which can be a game-changer in the logistics aspect and, thus, overall costs of goods & services.

Negatives of interlinking of rivers for multi-dimensional inter-related problems:

• Ecological challenges: The ambitious project will divert forest areas and submergence fertile land leading to deforestation and soil- erosion. For example, the Ken-Betwa link projects have reduced 8% of the forest land of Panna National Park. Also, river diversion may bring significant changes in the physical and chemical compositions of the sediment load, river morphology, and the shape of the delta formed in the river basin.
• Social challenges: Reconstruction and rehabilitation of millions of people in and around the river catchments could face significant psychological damage, resulting in social unrest and protests in the initial stages.
• Political challenges: India’s inter-state river doesn’t have a bright history (for example, the Cauvery River dispute). Further, water being a state subject demands sustained inter-state cooperation which may be a challenge given the diversity India offers.

THE WAY FORWARD:

• The interlinking of rivers in India has both pros and cons. Implementing the project in its entirety may be a challenge in present times. Therefore, the government must opt for a decentralized method of implementation instead of a centralized one.
• Inter-linking projects should receive the nod only after appropriate EIA and environmental clearances.
• Further, we must look for alternatives for efficient water use in India. For instance, measures like efficient water use in agriculture (per drop more crop), resourceful rainwater harvesting in drought-prone areas, and so on can be looked upon to liberate India from the persistent water stress.
• Adopt Alternative measures: A case study of Jakhni village of Banda district
• A 2019 NITI Aayog report mentioned Jakhni village of Banda district in Bundelkhand, one of the most water-scarce regions of India. The area witnessed heavy out-migration in search of water and better livelihood opportunities.
• However, through rigorous water conservation efforts such as the construction of farm ponds, restoration of water bodies, collection and utilization of greywater, raising of farm bunds, and intensive plantation of trees since 2014, the water situation has improved. Jakhni village, for example, has become a self-sufficient water village.
• Once a drought-prone village, it now produces nearly 23,000 quintals of basmati rice. The production of other crops has also increased manifold.

THE CONCLUSION: In the era of climate change; river networking is the need of time for development. Successful implementation of the Ken- Betwa link project largely looms upon the timely release of water from the surplus basin to the deficit basin. The problem of providing domestic water supplies in areas away from the rivers will largely remain unsolved. Some of the project’s major criticisms are its socioeconomic viability, environmental impacts, displacement and rehabilitation of affected people, the challenge of resource mobilization, geopolitical constraints, and domestic political dynamics. There is an urgent need to take Socio-environmental concerns related to the link Project so a very detailed hydrological, geological, meteorological, and environmental analysis of the project would be imperative for the benefit of India.

THE CONTEXT: In February 2022, Elon Musk’s Starlink lost dozens of satellites that were caught in a geomagnetic storm a day after they were launched. The loss of over 40 satellites in a single solar event has been described as “unheard of” and “huge”.However, the satellites were designed to burn up on reentry into the Earth’s atmosphere and did not create debris in space. The following article explains the phenomenon of geomagnetic storms from a geographical perspective.

GEOMAGNETIC STORMS

A geomagnetic storm is a major and temporary disturbance of Earth’s magnetosphere. They occur when a surge of the solar wind (charged particles from the sun) interacts with Earth’s magnetic field and generates currents in Earth’s upper atmosphere.

The magnetosphere shields our planet from harmful solar and cosmic particle radiation, Solar Storms occur during the release of magnetic energy associated with sunspots (‘dark’ regions on the Sun that are cooler than the surrounding photosphere – the lowest layer of the solar atmosphere) and can last for a few minutes or hours.

A Solar Storm or a Coronal Mass Ejection (CME) as astronomers call it, is an ejection of highly magnetized particles from the sun. These particles can travel several million km per hour and can take about 13 hours to five days to reach Earth.

Earth is surrounded by an immense magnetic field called the magnetosphere. Generated by powerful, dynamic forces at the center of Earth, our magnetosphere shields us from erosion of our atmosphere by the solar wind, erosion and particle radiation from coronal mass ejections, and cosmic rays from deep space. Our magnetosphere plays the role of gatekeeper, repelling this unwanted energy that’s harmful to life on Earth.

• The Bow Shockoccurs when the magnetosphere of an astrophysical object interacts with the nearby flowing ambient plasma such as the solar wind. For Earth and other magnetized planets, it is the boundary at which the speed of the stellar wind abruptly drops as a result of its approach to magnetopause.
• The Polar Cuspsare near-zero magnetic field magnitude and funnel-shaped areas between field lines that map to the dayside and nightside of the magnetopause surface. They are the primary regions for direct entry of magnetosheath/solar wind plasma into the magnetosphere and may create the appearance of beautiful auroras when seen from the arctic regions of the Earth.
• Van Allen radiation belt, doughnut-shaped zones of highly energetic charged particles trapped at high altitudes in Earth’s magnetic field. The belts are most intense over the Equator and are effectively absent above the poles. The Van Allen radiation belt is a zone of energetic charged particles originating from the solar wind. The particles are captured and held around a planet by that planet’s magnetic field. It surrounds Earth, containing a nearly impenetrable barrier that prevents the fastest, most energetic electrons from reaching Earth.

IMPACT OF GEOMAGNETIC STORMS ON EARTH

ON SPACE WEATHER: Not all solar flares reach Earth, but solar flares/storms, Solar Energetic Particles (SEPs), high-speed solar winds, and Coronal Mass Ejections (CMEs) that come close can impact space weather in near-Earth space and the upper atmosphere.

ON  MAGNETOSPHERE: Coronal Mass Ejections (CMEs) significantly loaded with matter traveling at millions of miles an hour can potentially create disturbances in the magnetosphere. Geomagnetic storms result in intense currents in the magnetosphere, changes in the radiation belts, and changes in the ionosphere, including heating the ionosphere and the thermosphere.

ON SPACE-DEPENDENT SERVICES: Solar storms can hit operations of space-dependent services like Global Positioning Systems (GPS), radio, and satellite communications. Aircraft flights, power grids, and space exploration programs are also vulnerable to geomagnetic storms.

ON COMMUNICATION: Geomagnetic storms interfere with high-frequency radio communications that rely on the ionosphere for propagation.

ON POWER GRIDS, OIL, AND GAS PIPELINES: When the earth is in the direct path of such solar storms, these magnetized and charged solar particles will interact with the earth’s magnetic field and induce strong electric currents on the earth’s surface that can damage long-distance cables.

ON UNDERSEA INTERNET CABLES: Undersea cables have a higher risk of failure compared to land cables due to their large lengths as current is proportional to the area of the loop formed by the two grounds and the cable.

HEALTH RISKS FOR ASTRONAUTS: Astronauts on spacewalks face health risks from possible exposure to solar radiation outside the Earth’s protective atmosphere.

FORMATION OF AURORAS: These storms can create the appearance of beautiful auroras aurora borealis (the northern lights) and aurora australis (the southern lights.)

LINK BETWEEN SOLAR STORMS AND ANIMAL BEACHINGS: Researchers from a cross-section of fields pooled massive data sets to see if disturbances to the magnetic field around Earth could be what confuses these sea creatures, known as cetaceans. CETACEANS are thought to use Earth’s magnetic field to navigate. Since intense solar storms can disturb the magnetic field, scientists want to determine whether they could, by extension, actually interfere with animals’ internal compasses and lead them astray. However solar storms may not be the primary cause of animal beaching but the research continues.

LINK BETWEEN SOLAR STORMS AND MIGRATORY BIRDS: Birds possess a magnetic sense and rely on the Earth’s magnetic field for orientation during migration. However, the geomagnetic field can be altered by solar activity at relatively unpredictable intervals. How birds cope with the temporal geomagnetic variations caused by solar storms during migration is still unclear.

CONCERNS WITH GEOMAGNETIC STORMS

• The Sun goes through an 11-year cycle – cycles of high and low sunspots activity. It also has a longer 100-year cycle. During the last three decades, when the internet infrastructure was booming, it was a low period. And very soon, either in this cycle or the next cycle, we are going towards the peaks of the 100-year cycle. So it is highly likely that we might see one powerful solar storm during our lifetime
• The rapid development of technology took place in the last three decades when the Sun was in its period of low activity and there are very limited studies on whether our current infrastructure can withstand a powerful solar storm.

GEOMAGNETIC STORMS AND INDIA

• The countries in the lower latitudes are at a much lower risk but there is a need for more studies to fully understand the effects of geomagnetic storms and the regions of lower latitudes.
• Modelled and Simulation Studies to understand how connectivity will be affected on a country-scale, showed that the majority of cables connecting India will be unaffected.
• Even under the high-failure scenario, some international connectivity remains (e.g., India to Singapore, the Middle East, etc.). Unlike in China, the key cities of Mumbai and Chennai do not lose connectivity even with high failures
• Compared to the US, India is less vulnerable, but we still need to know more about the strength of solar storms and whether a powerful one can affect India.

THE WAY FORWARD

• Shutdown Strategy:‘Shutdown Strategy’ can help minimize the connectivity loss during and after a solar storm impact. Similar to how we power off power grids, a temporary internet shutdown can protect our equipment during a solar event and ensure the continuation of services.
• Systematic Protocols:
• We need a more systematic protocol for doing this. Both NASA and the European Space Agency have probes now that can detect a solar storm and can give about 13 hours of warning.
• Experts from different fields need to come together to design protocols for power companies and internet service providers.
• Also, today’s health care system depends on power and the internet and we need to have a fallback strategy.
• With the increasing global dependence on satellites for almost every activity, there is a need for better space weather forecasts and more effective ways to protect satellites.

THE CONCLUSION: Current models are capable of predicting a storm’s time of arrival and its speed. But we are still not able to predict the storm’s structure or orientation. Independent solar observations show that solar superstorms capable of large-scale damage may occur only a few times in a century. Nevertheless, given their potential to cause large-scale disruption to our modern society, research and studies are needed to help us prepare and take steps for reducing their impact.

MAINS QUESTIONS:

1. What are geomagnetic storms? What steps are needed to prepare for any possible cause of a powerful solar storm in the future?
2. Explain the possible consequences of a powerful solar storm on life and property on Earth.

ADDED INFORMATION: 5 categories measure geomagnetic storms given by National Oceanic and Atmospheric Administration, USA (NOAA).

THE CONTEXT: The Russian invasion of Ukraine, which started in February 2021, is the largest conventional military attack seen since World War II and can cause a global economic catastrophe. It has deep implications for the world economy as well as the Indian economy. This article analyses those consequences and suggests the way forward for them.

ECONOMIC IMPACTS ON THE WORLD

ENERGY AND COMMODITIES MARKETS:

• Russia is the world’s 3rd largest oil producer, the 2nd largest natural gas producer, and among the top 5 producers of steel, nickel, and aluminum. It is also the largest wheat exporter globally (almost 20% of global trade).
• On its side, Ukraine is a key producer of corn (6th largest), wheat (7th), and sunflowers (1st), and is amongst the top ten producers of sugar beet, barley, soya, and rapeseed.
• On the day the invasion began, financial markets worldwide fell sharply, and the prices of oil, natural gas, metals, and food commodities surged.
• Brent oil prices breached USD 130 per barrel following the latest developments, while Europe’s TTF gas prices surged at a record EUR 192 on 4th March.
• While high commodity prices were one of the risks already identified as potentially disruptive to the recovery, the escalation of the conflict increases the likelihood that commodity prices will remain higher for much longer. In turn, it intensifies the threat of long-lasting high inflation, thereby increasing the risks of stagflation & social unrest in both advanced & emerging countries.

AUTOMOTIVE, TRANSPORT, CHEMICALS ARE THE MOST VULNERABLE SECTORS:

• The crisis is obviously strongly impacting an already strained automotive sector due to various shortages and high commodity & raw material prices: metals, semiconductors, cobalt, lithium, and magnesium.
• Ukrainian automotive factories supply major carmakers in Western Europe: some announced the stoppage of factories in Europe while other plants around the world are already planning outages due to chip shortages.
• Airlines and maritime freight companies will also suffer from higher fuel prices, airlines being the most at risk.
• First, fuel is estimated to account for about a third of their total costs.
• Second, European countries, the US and Canada, have forbidden access to their territories to Russian airlines and in turn, Russia has banned European and Canadian aircraft from its airspace.
• This means higher costs since airlines will have to take longer routes. Eventually, airlines have little room for rising costs as they continue to face lower revenues due to the impact of the pandemic.
• Rail freight will also be impacted: European companies are forbidden to do business with Russian Railways, which will likely disrupt freight activity between Asia and Europe, transiting through Russia.
• It is expected that feedstock for petrochemicals will be more expensive, and the soaring prices of natural gas will impact the fertilizer markets, hence the whole agri-food industry.

DEEP RECESSION AHEAD FOR THE RUSSIAN ECONOMY:

• The Russian economy will be in great difficulty in 2022, falling into a deep recession. Coface’s updated GDP forecast for 2022 stands at -7.5% after the recovery experienced last year. This has led to a downgrade of the country’s risk assessment from B (fairly high) to D (very high).
• Sanctions notably target major Russian banks, the Russian central bank, the Russian sovereign debt, selected Russian public officials & oligarchs, and the export control of high-tech components to Russia. These measures put considerable downward pressure on the Russian ruble, which has already plummeted and will drive a surge in consumer price inflation.
• Russia has built up relatively strong financials: a low level of public external debt, a recurrent current account surplus, as well as substantial foreign reserves (app. USD 640 bn). However, the freeze imposed by western depositary countries on the latter prevents the Russian central bank from deploying them and reduces the effectiveness of the Russian response.
• The Russian economy could benefit from higher prices for commodities, especially for its energy exports.
• However, EU countries announced their intention to limit their imports from Russia. In the industrial sector, restricted access to Western-produced semiconductors, computers, telecommunications, automation, and information security equipment will be harmful, given the importance of these inputs in the Russian mining and manufacturing sectors.

EUROPEAN ECONOMIES ARE AT A HIGH RISK:

• Because of its dependence on Russian oil & natural gas, Europe appears to be the region most exposed to the consequences of this conflict. Replacing all Russian natural gas supply to Europe is impossible in the short to medium run and current price levels will have a significant effect on inflation.
• While Germany, Italy, and some countries in the Central and Eastern European region are more dependent on Russian natural gas, the trade interdependence of Eurozone countries suggests a general slowdown.
• On top of that, we estimate that a complete cut of Russian natural gas flows to Europe would raise the cost to 4 percentage points in 2022, which would bring annual GDP growth close to zero, more probably in negative territory – depending on demand destruction management.

NO REGION WILL BE SPARED BY IMPORTED INFLATION AND GLOBAL TRADE DISRUPTIONS:

• In the rest of the world, the economic consequences will be felt mainly through the rise in commodity prices, which will fuel already existing inflationary pressures. As always, when commodity prices soar, net importers of energy & food products will be particularly affected, with the specter of major supply disruptions in the event of an even greater escalation of the conflict. The drop in demand from Europe will also hamper global trade.
• In Asia-Pacific, the impact will be felt almost immediately through higher import prices, particularly in energy prices. Many economies in the region are net energy importers, led by China, Japan, India, South Korea, Taiwan, and Thailand.
• As North American trade and financial links with Russia and Ukraine are fairly limited, the impact of the conflict will mainly be felt through the price channel and through the slowdown of European growth.
• Despite the prospect of slower economic growth and higher inflation, the recent geopolitical events are not expected to derail monetary policy in North America at this stage.

IMPACT ON INDIA

Despite India’s limited direct exposure, the combination of supply disruptions and the ongoing terms of trade shock will likely weigh on growth, resulting in a sharper rise in inflation, and (leading to) a wider current account deficit.

India’s trade with Russia and Ukraine

• India runs a trade deficit with Russia, with exports declining while imports are increasing. Oil forms a major part of our import basket from Russia.
• According to the MoF report, 8 percent of our total imports have been imported from Russia in FY22.

Here are the ways India could suffer due to a Russia-Ukraine war even without being part of it.

BAN ON RUSSIA’S CRUDE EXPORTS:

• In reaction to the US’s ban on all oil and gas imports from Russia, Brent crude prices surged to nearly $130 per barrel in the first week of March 2022.
• This is a major setback for global economic growth as Russia is one of the largest exporters of crude oil globally. India’s trade, however, comprises only 1% of oil imports from Russia, but there could be a spillover impact in the form of high inflation and sluggish growth.
• On March 13, Morgan Stanley lowered India’s GDP forecast for the fiscal year 2023 by 50 basis points to 7.9%. After that, the UN report downgraded India’s 2022 GDP to 4.6% due to the war.
• More risks could arise if global growth conditions weaken further, which would hamper India’s export and capital expenditure cycle.

INFLATIONARY CONCERNS:

• India depends on imports to meet up to 85% of its crude oil needs. The surge in international oil prices to a 14-year high will now result in broader price pressures.
• The impact on India’s economy will be felt mostly through higher cost-push inflation weighing in on all economic agents—households, businesses, and government.
• Every 10% rise in crude oil prices leads to a 0.4 percentage point rise in consumer inflation.
• It is estimated that retail inflation at 6% for the fiscal year 2023 is much higher than the RBI’s 4.5%.
• An increase of U.S.$25/bbl. would lead to an estimated reduction in the growth of 0.7% points and an increase in inflation of nearly 1% point. If the prices of other imported commodities also increase, the inflation impact will be higher.
• This has increased the risks of a higher import bill and, in turn, a widening of India’s current account deficit (CAD).
• A study by the RBI in 2019 had estimated an increase in the current account
• deficit (CAD) following a U.S.$10/bbl. increase in global crude price, to be nearly 0.4% points of GDP. Thus, for an increase of U.S.$25/bbl. in global crude prices, the CAD may increase by 1% point of GDP.
• The RBI Professional Forecasters Survey’s median estimate of CAD at 1.9% of GDP for 2022-23 may have to be revised upwards to 2.9%.

INDIA’S DEFENCE SUPPLIES:

• Between 2016 and 2020, India accounted for nearly 25% of Russia’s total arms exports. This explains that the share of defense expenditure in India’s budget every year is not little.
• This time, a key defense contract in question is the delivery of the Russia-developed S-400 air missile system worth $5 billion, which was signed in October 2018.
• Moreover, the Indian Army’s main battle tank force is composed predominantly of Russian T-72 M1 and T-90S, accounting for 66% and 30% of all units, respectively.
• India will continue to rely on Russian weapons systems in the middle term, despite the US’s threat of sanctions over the S-400 purchase looms large over India.

OTHER AREAS:

• POST-COVID DISRUPTION: The geopolitical uncertainty coupled with the likely slowdown in the global economy and high inflation could lead to a major spike in gold prices, as central banks are left with limited legroom to raise interest rates.
• DIGITAL CURRENCIES: Day one of the conflicts also witnessed 8 percent of cryptocurrencies’ market capitalization of $1.59 trillion being wiped out.
• SEMICONDUCTORS: Russia and Ukraine are both suppliers of raw materials used in semiconductor manufacturing. Russia is the leading producer of palladium, essential for memory and sensor chips. And Ukraine is a leading exporter of highly purified neon gas that is used in etching circuit designs into silicon wafers to create chips.
• PHARMA: India exported over $181 million worth of pharmaceutical goods to Ukraine in FY21, growing nearly 44 percent over FY20, while exports to Russia were nearly $591 million in FY21, with YoY growth of 6.95 percent.
• TEA: Russia is one of the biggest importers of Indian tea, with a share of 18 percent in Indian tea exports.
• SUNFLOWER OIL: Indians, as the country depends almost totally on Ukraine and Russia for sunflower oil imports. In 2020-21, India imported 1.9 million tonnes of crude sunflower oil, of which Ukraine accounted for 1.4 million tonnes. The rest came from Russia.
• IMPACT ON PAYMENT SETTLEMENT: Due to the discontinuation of transactions through SWIFT, there would be some disruption in trade to and from Russia and Ukraine.

WHAT ARE THE CHALLENGES FOR RBI AND GOI IN RECENT TIMES?

• Policymakers may have to exercise a critical choice regarding who bears the burden of higher prices of petroleum products in India among consumers and industrial users, oil marketing companies, and the Government.
• If the oil marketing companies are not allowed to raise the prices of petroleum products, the bill for oil sector-linked subsidies would go up.
• If the central and State governments reduce excise duty and value-added tax (VAT) on petroleum products, their tax revenues would be adversely affected.
• If, on the other hand, the burden of higher prices is largely passed on to the consumers and industrial users, the already weak investment and private consumption would suffer further.
• If growth is to be revived, maximum attention should be paid to supporting consumption growth and reducing the cost of industrial inputs to improve capacity utilization.
• If RBI reduces the interest rate, it will further increase the money supply, which will lead to further higher inflation. If the RBI increases the interest rate, it will reduce the money supply in the economy but will impact the economic recovery negatively.

THE WAY FORWARD:

• As a short-term measure, the Rupee-Rouble trade agreement should be finalized as soon as possible.
• Notional policy on semiconductors should be promoted effectively so that India could become self-reliant in semiconductor and chip making.
• RBI should take more liberal steps i.e. accommodative monetary policy. As developed countries are being forced to raise their interest rates and inflationary pressures continue to mount in India and abroad, the RBI may find it advisable to raise the policy rate to stem inflationary pressures and the outward flow of the U.S. dollar even as the growth objective would be served by fiscal policy initiatives.
• For recovery, maximum attention should be paid to supporting consumption growth and reducing the cost of industrial inputs to improve capacity utilization.
• India should increase the capacity of its strategic petroleum reserve so that at the time of a war-like situation, India can manage the impact of hiked crude oil prices, in a long term manner, needs to focus on renewable energy sources.
• To address the shortage of sunflowers oil, the government should take steps to promote domestic cultivation of the oil like the government is doing for palm oil under National Mission on Edible Oils – Oil Palm (NMEO-OP).

THE CONCLUSION: World leaders should come together not for discussing the scale of sanctions but to work out ways to resolve the issue and put an end to the mayhem. Diplomatic channels should be used to have dialogue, negotiate, convince and arrive at amicable solutions to end the conflicts. The increased spate of sanctions on one country is a pain to other dependent countries and it disrupts the world order. Prolonged armed conflicts will worsen the plight of innocent countries and their people.

Economic Impacts of Russia-Ukraine War, Economic Impacts on The World, Recession Ahead for the Russian Economy, European Economies, Inflation & Global Trade Disruptions, India’s Trade with Russia and Ukraine, India’s Defence Supplies, Impact on Payment Settlement

THE CONTEXT: According to a report published in The Lancet (Global burden of Bacterial AMR in 2019: A Systematic Analysis) about 4.95 million deaths in 2019 are associated with AMR and 1.27 million deaths were caused due to AMR. Anti-microbial Resistance is a leading cause of death around the world, with the highest number of deaths occurring in low-resource settings. Everyone is at risk from AMR, but young children are particularly affected. The following article explains the causes of AMR and the challenges involved, from a scientific and public health perspective.

ABOUT AMR

• Antimicrobial resistance is the resistance acquired by any microorganism (bacteria, viruses, fungi, parasites, etc.) against antimicrobial drugs (such as antibiotics, antifungal, and antiviral drugs) that are used to treat infections. As a result, standard treatments become ineffective, infections persist, and may spread to others.
• Resistant microbes are more difficult to treat which necessitates alternative mechanisms or higher doses, both of which are either more toxic or expensive.
• Microorganisms that develop antimicrobial resistance are sometimes referred to as “superbugs”.
• Antimicrobial resistance occurs naturally, but the misuse of antibiotics in humans and animals is accelerating the process. Antimicrobial resistance is now regarded as a major threat to public health across the globe.

Bacterial antimicrobial: resistance occurs when changes in bacteria cause the drugs used to treat the infection to become less effective.

CAUSES OF ANTIBIOTIC RESISTANCE

OVERUSE:

• Overuse of antibiotics by consuming more antibiotics than prescribed.
• Overuse of antibiotics in livestock and fish farming. Consumption of antibiotically treated livestock such as chicken further increases resistance.
• Using antibiotics in farm animals can promote AMR. Drug-resistant bacteria can be found in meat and food crops that have exposure to fertilizers or contaminated water. The chances of Zoonotic diseases passing on to humans can increase.

MISUSE:

• Misuse by taking a prescribed antibiotic incorrectly or taking antibiotics to treat viral infection. Patients generally do not complete the entire antibiotic course.
• Include self-medication.
• access to antibiotics without prescription.
• Lack of knowledge about when to use antibiotics.

PHARMA WASTE AND DISCHARGE:

• Antibiotics discharge or waste from pharma firms and hospitals. For instance, Hyderabad’s pharmaceutical industry has been pumping massive amounts of antibiotics into local lakes, rivers, and sewers. This has led to an explosion in resistance genes in these water bodies.

HEALTHCARE SETTINGS:

• Poor infection control in healthcare settings.
• Poor hygiene and sanitation.
• A report on hand-washing practices of nurses and doctors found that only 31.8% of them washed hands after contact with patients.

EXCESSIVE USE OF FDC DRUGS:

• Excessive use of Fixed Dose Combinations (FDC) Drugs due to their low price and convenience enables anti-biotic resistance to grow at a significant rate. This may also lead to the emergence of bacterial strains resistant to multiple antibiotics.

WRONG DIAGNOSIS:

• Health professionals sometimes prescribe antimicrobials “just in case,” or they prescribe broad-spectrum antimicrobials when a specific drug could have satisficed. Using medications in such a fashion increases the risk of AMR.

RISING CHALLENGES BECAUSE OF AMR

THREAT TO PREVENTION OF INFECTIONS: Medical procedures such as organ transplantation, cancer chemotherapy, diabetes management and major surgery (for example, cesarean sections or hip replacements) will become very risky.

GLOBAL THREAT: AMR poses a serious threat to global health, food security, and development.

SIDE EFFECTS: Increased side effects from the use of multiple and more powerful medications.

COSTS AND CASUALTIES:

• The danger of antimicrobial resistance is those treatable illnesses like pneumonia, tuberculosis, or minor infections could become incurable. This would put a greater economic and emotional burden on families and on our healthcare system.
• Increased cost and length of treatments and increased deaths.

RISK TO GAINS MADE IN THE PAST:

• Without effective antibiotics for the prevention and treatment of infections, the achievements of modern medicine are put at a risk.
• Antimicrobial resistance is putting the gains of the Millennium Development Goals at risk and endangers the achievement of the Sustainable Development Goals.

ANTIBIOTIC APOCALYPSE:

• Without urgent positive action, we might be heading to a future without antibiotics, with bacteria becoming completely resistant to treatment and when common infections and minor injuries could even prove fatal.

STEPS TAKEN BY THE WORLD HEALTH ORGANISATION (WHO)

GLOBAL ACTION PLAN:

Global action plan on antimicrobial resistance with 5 strategic objectives:

• To improve awareness and understanding of antimicrobial resistance.
• To strengthen surveillance and research.
• To reduce the incidence of infection.
• To optimize the use of antimicrobial medicines.
• To ensure sustainable investment in countering antimicrobial resistance.

REVISION OF ANTIBIOTICS PROTOCOL:

WHO has revised the antibiotics protocol to curb antibiotic resistance in 2017. This was the biggest revision of the antibiotics section in the essential medicines list (EML) which is being used by countries to develop their own local lists of essential medicine.

• Under this, WHO has divided the drugs into 3 categories viz – access, watch, and reserve.
• The access category includes commonly used antibiotics available at all times for the treatment of a broad range of common infections.
• The watch category covers antibiotics that are recommended as a first or second choice treatment for a small group of infections. Prescription of these drugs should be minimized to avoid further development of resistance.
• The reserved category includes antibiotics that are considered last-resort options and should be used only in the most severe circumstances like life-threatening infections caused by multi-drug resistant (MDR) bacteria.

ANTIMICROBIAL RESISTANCE IN INDIA

• AMR is of particular concern in developing nations, including India, where the burden of infectious disease is high and healthcare spending is low. India is among the nations with the highest burden of bacterial infections and hence the impact of AMR is likely to be higher in the Indian setting.
• India has been referred to as ‘the AMR capital of the world’. While on one hand, the emergence of newer multi-drug resistant (MDR) organisms pose newer diagnostic and therapeutic challenges, on the other hand, India is still striving to combat old enemies such as tuberculosis, malaria, and cholera pathogens, which are becoming more and more drug-resistant.
• Factors such as poverty, illiteracy, overcrowding, and malnutrition further compound the situation. Lack of awareness about infectious diseases in the general masses and inaccessibility to healthcare often preclude them from seeking medical advice.
• According to the World Health Organisation (WHO), antibiotic resistance may cause an increase in the death of Indians to 20 lakhs per year by 2050.
• The National Health Policy 2017 highlights the problem of antimicrobial resistance and calls for effective action to address it.
• MDR-TB and XDR-TB in India: The World Health Organisation estimates approximately 4.1 million people across the world suffer from tuberculosis, but these cases continue to remain undiagnosed and unreported. A total of 1.5 million people died from TB in 2020 making it the second leading infectious killer only after Covid-19.
• MDR-TB: Multidrug Resistant TB
• XDR-TB: Extremely Drug-Resistant TB
• While India is on a mission to become TB free by 2025, the report by Haystack Analytics indicates that the country continues to bear the largest share of TB cases in the world, with 65% of the cases being reported in the most economically productive population segment of 15-45. Not only this can have a detrimental impact on the economy, but the situation can also aggravate considerably, if not addressed in due time.
• XDR-TB has become a new threat to the control of TB in many countries including India. Its prevalence is not known in India as there is no nationwide surveillance. However, there have been some reports from various hospitals in the country

STEPS TAKEN BY INDIA IN FIGHT AGAINST AMR

RED LINE CAMPAIGN:

• It was launched in 2016.
• Under this, Prescription only antibiotics were marked with a red line to curb irrational use.
• The government has also backed it up with an awareness campaign that red-line medicines should not be taken without a prescription.

ANTI-MICROBIAL RESISTANCE FUND:

• India-focused seed fund.
• Investment by the Department of Biotechnology (DBT) through the Biotechnology Industry Research Assistance Council (BIRAC).
• It will help groups in India compete for the Longitude prize (for groups that develop effective and affordable diagnostic kits to detect antimicrobial resistance).

AMRRSN:

National Anti-Microbial Resistance Research and Surveillance Network (AMRRSN) was established by the Indian Council of Medical Research (ICMR).

• To strengthen surveillance of AMR in the country.
• To enable compilation of national data of AMR at various levels of health care.

NATIONAL ACTION PLAN TO COMBAT ANTIMICROBIAL RESISTANCE, 2017:

• Enhancing awareness among the masses and strict adulteration laws.
• Strengthening surveillance.
• Improving the rational use of antibiotics.
• Reducing infections.
• Promoting policies and research in antimicrobial resistance.
• Support neighboring nations in the fight against infectious diseases

AMR RESEARCH & INTERNATIONAL COLLABORATION:

• ICMR has taken measures to develop new drugs /medicines using international collaborations for strengthening medical research in AMR.

INITIATIVES TO CONTROL OVERUSE OR MISUSE OF ANTIBIOTICS:

• ICMR has launched an antibiotic stewardship program (AMSP) on a pilot project basis in twenty tertiary care hospitals across India to check the misuse and overuse of antibiotics in hospital wards and ICUs.
• On the advice of ICMR, DCGI has prohibited 40 fixed-dose combinations (FDCs) which were found inapplicable.
• ICMR collaborated with the Indian Council of Agriculture Research, Department of Animal Husbandry, Dairy and Fisheries, and the DCGI to prohibit the use of Colistin as a growth promoter in animal feed in poultry.
• The government has also capped the maximum levels of drugs that can be used for growth promotion in meat and meat products.

CHALLENGES FOR INDIA IN ITS FIGHT AGAINST AMR

TWIN CHALLENGE:

• India faces a twin challenge of fighting the over consumption of antibiotics while ensuring that the poor and vulnerable have easy access.

LACK OF AWARENESS:

• Lack of awareness among medical practitioners as well as the general public on the rational use of antibiotics further aggravates the problem.

COORDINATION GAP:

• Coordination among various ministries and between the center and state governments.
• A cross-cutting program dealing with antimicrobial resistance across multiple microbes has been lacking.

ABSENCE OF A ONE HEALTH APPROACH:

• One Health Approach to addressing AMR recognizes that human well-being is inextricably tied to the health of animals and the environment.

ABSENCE OF STRINGENT RULES:

• The absence of stringently framed and implemented regulatory frameworks to limit the use of antimicrobials in livestock and food animals, especially for non-therapeutic purposes, has been one of the drivers of antibiotic overuse at the community level.
• The rules and regulations that were taken were not strict enough to prevent pharmaceutical firms to sell last-resort drugs to farmers or discharging waste into water bodies.
• In India, current effluent standards do not include antibiotic residues, and thus they are not monitored in the pharmaceutical industry effluents.

THE WAY FORWARD

• Infection control in healthcare facilities:
• Health professionals prescribe antibiotics only when they are needed.
• Preventing infections by maintaining hygiene.
• Creating awareness about the use and abuse of antibiotics:
• Individuals to use antibiotics only when prescribed.
• Only give antibiotics to animals under veterinary supervision.
• Vaccinate animals to minimize the need for antibiotics.
• Use alternatives to antibiotics when available.
• A robust national action plan to tackle antibiotic resistance.
• Improve surveillance of antibiotic-resistant infections.
• Invest in R&Dfor new antibiotics to keep up with resistant bacteria as well as in new diagnostic tests to track the development of resistance.

THE CONCLUSION: There is a need to urgently address antimicrobial resistance in a holistic way by integrating human, animal and environmental health. All countries need to work together to limit the spread of Antibiotic-Resistant Genes (ARGs). Even though national action plans have been laid down by most countries, these plans have yet to move from paper to the ground as antibiotics continue to be freely used,therefore to contain AMR, there is a need for a One Health Approach through coherent, integrated, multi-sectoral cooperation and actions.

MAINS QUESTIONS:

1. “Addressing AMR requires a multipronged and multisectoral approach. The urgency to develop new drugs should not discourage us from instituting measures to use the existing antimicrobials judiciously.” Comment.
2. “The progress under the National Action Plan for AMR(2017) has been far from satisfactory.” Critically analyze.
3. What do you understand by Antimicrobial Resistance (AMR)? Explain the reasons for the spread of AMR and the challenges involved to control it.

THE CONTEXT: Recently, the Union Minister of Road Transport and Highways said rapid strides in technology and green fuel will reduce the cost of electric automobiles, bringing them at par with petrol-run vehicles in two years. Also, the 2019 Nobel Prize for Chemistry was awarded to John B. Goodenough, M. Stanley Whittingham, and Akira Yoshino for working towards the development of practical lithium-ion batteries.
In this context, this article analyses the scope of the Lithium-Ion Battery Market: Industry Trends, Share, Size, Growth, Opportunity, and the way forward.

THE EXPLANATION

What is a lithium-ion battery and how does it work?

• A lithium-ion battery is a type of rechargeable battery that is charged and discharged by lithium ions moving between the negative (anode) and positive (cathode) electrodes. (Generally, batteries that can be charged and discharged repeatedly are called secondary batteries, whereas disposable batteries are called primary batteries.)
• Because lithium-ion batteries are suitable for storing high-capacity power, they are used in a wide range of applications, including consumer electronics such as smartphones and PCs, industrial robots, production equipment, and automobiles.

Lithium-ion Battery – Applications

⦁ Electronic gadgets
⦁ Tele-communication
⦁ Aerospace
⦁ Industrial applications
⦁ Lithium-ion battery technology has made it the favorite power source for electric and hybrid electric vehicles

SIGNIFICANCE OF LI-ION BATTERIES IN THE CONTEXT OF THE ELECTRONIC MARKET

According to the Ministry of Commerce and Industry, India imported lithium cells and batteries – including rechargeable li-ion type devices – worth INR 8,984 crore in the last fiscal year (2020-2021). This figure consisted of INR 173 crore of non-rechargeable lithium devices and INR 8,811 crore of lithium-ion products.
China and Hong Kong were the chief sources of imports with China shipping 72.73% of the lithium-ion products imported by India and 32.05% of the non-rechargeable lithium cell devices. Hong Kong products accounted for 23.48% and 37.32% of those respective markets.
Indian lithium battery demand is expected to surge with the products used in renewable energy storage facilities and electric vehicles as well as data centers and consumer electronics. According to other data, the Indian lithium-ion battery market reached a value of US$ 2.1 Billion in 2021.

THE DOMESTIC PUSH

Recently, the Geological Survey of India has taken up seven other lithium exploration projects in Karnataka, Arunachal Pradesh, Andhra Pradesh, Chhattisgarh, Jharkhand, Jammu and Kashmir, and Rajasthan.

The reason: The ancient igneous rock deposits in the region (a by-product of large-scale volcanic activity in the Deccan plateau millions of years ago) hold the first traces of Lithium ever to be discovered in India

MAJOR IMPACTS ON E-VEHICLES: A POTENTIAL ALTERNATIVE TO REDUCE THE COAL DEPENDENCY

One of the major factors driving the rising demand for Lithium-Ion batteries is the growing popularity of electric cars. Rising EV sales across the country, particularly in the 2- and 3-wheeler segments, have boosted the demand. Lithium batteries have transformed how they are utilized due to their advantages over lead-acid batteries.

By 2030, the market for electric vehicle 

power packs are expected to reach $300 billion, with a large secondary market of more than 2.5 million e-rickshaws and 4,00,000 lead-acid battery-powered two-wheelers now on the road.

The most expensive component of an electric car is the lithium-ion battery, which accounts for 40-50 percent of the total cost. With the growing use of electric vehicles in our transportation system, the demand for Li-ion batteries for EV applications is expected to soar. Other uses, such as renewable energy integration with the grid, will raise Li-Ion battery demand in addition to electric vehicles.

According to government projections, India would require a minimum of 10 GWh of Li-ion cells by 2022. By 2025, it will be around 60 GWh, and by 2030, it will be around 120 GWh.

Environmental Aspect:

• According to the World Air Quality Report 2021, published by Swiss Organization -IQ Air where it stated “India was home to 11 of the 15 most polluted cities in Central and South Asia in 2021. Delhi saw a 14.6% increase in PM2.5 concentrations in 2021, with levels rising to 96.4 µg/m3 from 84 µg/m3 in 2020.
• It also highlighted that sources of PM2.5 “include internal combustion engines, power generation, industrial processes, agricultural processes, construction, and residential wood and coal burning.
• According to a Government source, by 2030, nearly three-fourths of Indian two-wheelers and all new cars are expected to be EVs (electric vehicles). It will significantly reduce the dependency on coal and reduce pollution significantly.

MERITS OF LI-ION BATTERIES

Compared to their lead-acid counterparts, lithium-ion batteries are much lighter, more efficient, and have more power storage. These batteries are widely used commercially in mobiles, laptops, and other electronic equipment.

High energy density: High energy density is one of the chief advantages of lithium-ion battery technology. With electronic equipment such as mobile phones needing to operate longer between charges while still consuming more power, there is always a need for batteries with a much higher energy density.

For example, NiMH batteries would not be able to provide the charge capacity required for a modern smartphone. Using Nickel Metal Hydride battery technology, a smartphone would not last long enough, especially if the battery needed to keep within the same size constraints.

In addition to this, there are many power applications from power tools to electric vehicles. The much higher power density offered by lithium-ion batteries is a distinct advantage. Electric vehicles also need battery technology that has a high energy density.

Self-discharge: One issue with many rechargeable batteries is the self-discharge rate. The rate of self-discharge of Li-ion cells is much lower than that of other rechargeable cells such as Ni-Cad and NiMH forms. It is typically around 5% in the first 4 hours after being charged but then falls to a figure of around 1 or 2% per month.

Low maintenance: One major lithium-ion battery advantage is that they do not require maintenance to ensure their performance.
Ni-Cad cells required a periodic discharge to ensure that they did not exhibit the memory effect. As this does not affect lithium-ion batteries and cells, this process or other similar maintenance procedures are not required. Likewise, lead-acid cells require maintenance, some needing the battery acid to be topped up periodically.

Cell voltage: The voltage produced by each lithium-ion cell is about 3.6 volts. This has many advantages. Being higher than that of the standard nickel-cadmium, nickel-metal hydride, and even standard alkaline cells at around 1.5 volts and lead-acid at around 2 volts per cell, the voltage of each lithium-ion cell is higher, requiring fewer cells in many battery applications. For smartphones, a single cell is all that is needed and this simplifies the power management.

Variety of types available: There are several types of lithium-ion cells available. This advantage of lithium-ion batteries can mean that the right technology can be used for the application needed. Some forms of lithium-ion battery provide a high current density and are ideal for consumer mobile electronic equipment. Others can provide much higher current levels and are ideal for power tools and electric vehicles.

DEMERITS OF LI-ION BATTERIES

Fire Risk: Lithium-ion batteries, whether they are used in cars or electronic devices, can catch fire if they have been improperly manufactured or damaged, or if the software that operates the battery is not designed correctly.

The major weakness of lithium-ion batteries in electric cars is the use of organic liquid electrolytes, which are volatile and flammable when operating at high temperatures. An external force such as a crash can also lead to chemical leakage.

Protection/battery management system required: Lithium-ion cells and batteries are not as robust as some other rechargeable technologies. They require protection from being overcharged and discharged too far. In addition to this, they need to have the current maintained within safe limits. Accordingly, one lithium-ion battery disadvantage is that they require protection circuitry incorporated to ensure they are kept within their safe operating limits.

Aging: One of the major lithium-ion battery disadvantages for consumer electronics is that lithium-ion batteries suffer from aging. Not only is this time or calendar dependent, but it is also dependent upon the number of charge-discharge cycles that the battery has undergone.

Often batteries will only be able to withstand 500 – 1000 charge-discharge cycles before their capacity falls. With the development of Li-ion technology, this figure is increasing, but after a while, the battery may need replacing and this can be an issue if they are embedded in the equipment.

Cost: A major lithium-ion battery disadvantage is its cost. Typically, they are around 40% more costly to manufacture than Nickel-cadmium cells. This is a major factor when considering their use in mass-produced consumer items where any additional costs are a major issue.

Developing technology: Although lithium-ion batteries have been available for many years, they can still be considered an immature technology by some as it is very much a developing area. This can be a disadvantage in terms of the fact that the technology does not remain constant. However as new lithium-ion technologies are being developed all the time, it can also be an advantage as better solutions are coming available.

GOVERNMENT INITIATIVES TO PROMOTE ELECTRIC VEHICLES

• India is the fourth-largest auto market globally, and some estimates suggest there are close to 170 active investors in the country’s EV start-up ecosystem.
• To promote the adoption of EVs, the Department of Heavy Industry formulated a FAME India Scheme (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India) in 2015.

The government has launched the following initiatives to Promote Electric Vehicles in India:

• Under the new GST system, GST on EVs is reduced from 12% to 5% against the 28% GST rate with up to 22% for conventional vehicles.
• The government has proposed the exemption of registration fees for battery-operated/electric vehicles to promote eco-friendly vehicles in the country.
• The Ministry of Power has also allowed the sale of electricity as a ‘service’ for electric vehicles’ charging. It will attract investors into the charging infrastructure.
• Also, The government has granted an exemption to battery-operated transport vehicles and vehicles that run on methanol and ethanol fuels from the requirements of the permit.
• The Ministry of Road Transport and Highways has allowed 16-18 years to obtain driving licenses to drive e-scooters.
• Lithium wars: Battery makers are also seeking to take advantage of the ₹18,100-crore production-linked incentive (PLI) scheme to manufacture lithium-ion cells within the country. In such a scenario, securing lithium supplies will play a critical role in the pivot towards a greener economy.

THE CONCLUSION: The use of Lithium-ion batteries is the future of a greener and eco-friendly environment. The use of lithium-ion batteries helps in cutting down the pollution level and improving the air quality. Energy storage and mobility are going to be the most popular concept in India as they won’t only save us costs but also have a huge positive impact on climate change. With the introduction of different government initiatives, the Indian Government is also trying to promote the use of batteries for a secure future. Having a manufacturing unit in India will help in cost reduction and increase employment.
Along with the batteries being manufactured, they can be recycled and reused too, decreasing the usage of gas and leading to an increase in pollution levels. For a better future, we need to start working today and have a clear vision toward the goal.

THE MAIN PRACTICE QUESTIONS:

• The Noble Prize in Chemistry of 2019 was jointly awarded to John B. Goodenough, M. Stanley Whittingham, and Akira Yoshino for working towards the development of practical lithium-ion batteries. How has this invention impacted the everyday life of human beings?
• What are the present challenges before the transition of shifting to e-vehicles? How do emerging technologies provide an opportunity for reducing coal dependency?

THE CONTEXT: The European Commission has proposed a set of digital rights and principles in January 2022 that aim to protect people’s rights, support democracy, and ensure a fair and safe online environment. The European Parliament and the Council of the European Union will discuss the proposal before its adoption. This article explains the major features of the declaration and its significance.

THE SALIENT FEATURES OF THE DECLARATION

PEOPLE AT THE CENTRE OF THE DIGITAL TRANSFORMATION:

• Technology should serve and benefit all Europeans and empower them to pursue their aspirations in full security and respect for their fundamental rights. This requires:
• Strengthening the democratic framework for a digital transformation that benefits everyone and improves the lives of all Europeans.
• Fostering responsible and diligent action by all digital actors, public and private, for a safe and secure digital environment.

SOLIDARITY AND INCLUSION:

• Everyone should have access to technology that aims at uniting and not dividing people. The digital transformation should contribute to a fair society and economy in the Union. These needs:

(a) Making sure that technological solutions respect people’s rights, enable their exercise, and promote inclusion.

(b) Developing adequate frameworks so that all market actors assume their responsibilities and make a fair contribution to the costs of public goods and services.

CONNECTIVITY, DIGITAL EDUCATION, AND SKILLS:

• Everyone, everywhere in the EU, should have access to affordable and high-speed digital connectivity. Everyone has the right to education, training, and lifelong learning and should be able to acquire all basic and advanced digital skills. This requires:

(a) Ensuring access to excellent connectivity for everyone, wherever they live and whatever their income.

(b)Promoting and supporting efforts to equip all education and training institutions with digital connectivity, infrastructure, and tools.

WORKING CONDITIONS:

• Everyone has the right to fair, just, healthy, and safe working conditions and appropriate protection in the digital environment as in the physical workplace, regardless of their employment status, modality or duration. This needs:

(a) Ensuring that everyone shall be able to disconnect and benefit from safeguards for work-life balance in a digital environment.

A fair online environment:

• Everyone should be able to effectively choose which online services to use based on objective, transparent and reliable information. This requires:

(a) Ensuring a safe, secure.

(b) A fair online environment where fundamental rights are protected, and the responsibilities of platforms, especially large players and gatekeepers, are well defined.

PARTICIPATION IN THE DIGITAL PUBLIC SPACE:

• Everyone should have access to a trustworthy, diverse, and multilingual online environment. Access to diverse content contributes to a pluralistic public debate and should allow everyone to participate in democracy. This requires:

(a) Supporting the development and best use of digital technologies to stimulate citizen engagement and democratic participation.

(b) Continuing safeguarding fundamental rights online, notably the freedom of expression and information.

PRIVACY AND INDIVIDUAL CONTROL OVER DATA:

• Everyone has the right to the protection of their data online. That right includes the control on how the data are used and with whom they are shared.
• Everyone has the right to the confidentiality of their communications and the information on their electronic devices, and no one shall be subjected to unlawful online surveillance or interception measures.
• Everyone should be able to determine their digital legacy and decide what happens with the publicly available information that concerns them after their death.

SUSTAINABILITY:

• To avoid significant harm to the environment and promote a circular economy, digital products and services should be designed, produced, used, disposed of, and recycled to minimise their negative environmental and social impact. This requires:

(a) Supporting the development and use of sustainable digital technologies that have minimal environmental and social impact.

(b) Developing and deploying digital solutions with a positive impact on the environment and climate.

SIX THEMES OF THE DECLARATION IN A NUTSHELL

THE RATIONALE BEHIND THE EUROPEAN DECLARATION ON DIGITAL RIGHTS AND PRINCIPLES

ACCELERATION IN DIGITAL TRANSFORMATION:

• Digital transformation offers significant opportunities for a better quality of life, innovation, economic growth, and sustainability. But it also presents new challenges for the fabric, security, and stability of societies and economies.
• With the acceleration of the digital transformation, the time has for the European Union (EU) to spell out how its values and fundamental rights should be applied in the online world.

A CONTINUITY IN DATA PROTECTION APPROACHES:

• The European Parliament has made several calls for ensuring the full compliance of the Union’s approach to the digital transformation with fundamental rights such as data protection or non-discrimination and with principles such as technological and net neutrality and inclusiveness.
• It has also called for strengthened protection of users’ rights in the digital environment. This declaration is in furtherance of such initiatives and approaches.

BUILDING ON PREVIOUS INITIATIVES:

• This declaration builds on previous initiatives such as the “Tallinn Declaration on e-Government”, the “Berlin Declaration on Digital Society and Value-based Digital Government”, the “Lisbon Declaration – Digital Democracy with a Purpose”, “Path to the Digital Decade” etc. which calls for a model of digital transformation that strengthens the human dimension of the digital ecosystem with the Digital Single Market as its core.

GUIDING PRINCIPLES FOR THE MARKET:

• The declaration aims to explain shared political intentions.
• Not only does it recall the most relevant rights in the context of the digital transformation, but it also serves as a reference point for businesses and other relevant actors when developing and deploying new technologies.

FLAG POSTS FOR POLICYMAKERS:

• The democratic oversight of the digital society and economy should be further strengthened, fully respecting the rule of law principles, effective justice, and law enforcement.
• Thus, the declaration will guide policymakers when reflecting on their vision of the digital transformation: putting people at the center of the digital transformation, underlying solidarity, and inclusion, restating the importance of freedom of choice, etc.

PROMOTING BEST PRACTICES:

• The Union shall promote the declaration in its relations with other international organizations and third countries.
• The principles can serve as an inspiration for international partners to guide a digital transformation that puts people and their human rights at the center throughout the world.

A CRITICAL EVALUATION OF THE DECLARATION

• Despite the solemn character of the draft declaration, this text does not purport to exercise any legally binding role. Its ‘political nature is made explicit in the declaration itself and the accompanying communication. as the preamble recalls, it remains declaratory and, even if endorsed, will not set out legal obligations.
• The declaration has not been introduced as an EU Charter of Fundamental Rights 2.0, a document with potential constitutional value.
• The declaration does not have any direct mechanism of enforcement. The EU Commission, however, has proposed to use this document as a guide to assess the status of the digital transition across the EU in the form of an annual report.

EU PARLIAMENT AGREES ON PROPOSAL TO TAKE ON U.S. TECH GIANTS

In the European Parliament in Jan 2022 signed off on a proposal for new rules aimed at U.S. tech giants, paving the way for talks on the plan with member countries and the European Commission. The Digital Services Act, a proposal from the EU antitrust chief would force Amazon, Apple, Alphabet unit Google and Facebook owner Meta to do more to tackle illegal content on their platforms or risk fines up to 6% of global turnover. The proposal still needs to be ironed out with EU countries and lawmakers before it can become law, the first of its kind in the world. The European Parliament adopted the proposal with 530 votes in favour, 78 against, and 80 abstentions.

“With a huge majority, the European Parliament adopted the Digital Services Act. A big win, with support from the left to right,” Dutch lawmaker Paul Tang said on Twitter. Christel Schaldemose, a Danish lawmaker leading the Parliament’s negotiating team, said: “Online platforms have become increasingly important in our daily life, bringing new opportunities and new risks. We have to make sure that what is illegal offline is illegal online.” France, which holds the rotating EU presidency, aims for an agreement in the first half of 2022.

AN ANALYSIS OF THE DIGITAL RIGHTS AND PRIVACY: THE INDIAN SCENARIO

‘Digital rights’ is a broad term: it can imply the right to privacy and data protection; it can be related to trolling, online threats, and hate speech; it can address broader issues of equitable Internet access regardless of economic background and disabilities. In India, where citizens’ data are at the mercy of companies and government and where is no privacy law, the Puttaswamy judgment, and the Justice B.N. Srikrishna committee report that led to the Personal Data Protection Bill of 2019 came as a ray of hope. But the Joint Committee report on the Bill has failed to provide a robust draft of legislation ensuring the privacy of citizens.

Earlier, the Central government introduced IT Rules 2021 which is also being criticized as putting disproportionate restrictions on digital freedom. Instead, it is held that it carved out an architecture for a surveillance state. Digital marketing has resulted in the compromise of the personal data integrity of the users and such data is being exploited commercially. There are also many instances of a data breach on the part of both public and private players including the UIDAI.

The lack of accountability of the tech giants is an acute problem in India despite their huge influence on public policy and governance matters. These issues have been echoed in Parliament recently where members urged the government to end the “systematic influence and interference of Facebook and other social media giants” on electoral politics being used to “hack democracy”. Last year, Facebook (Meta)was accused of allowing algorithms to amplify hate speech. Whistle-blowers Sophie Zhang and Frances Haugen have testified against the company’s policies. Haugen told British lawmakers that the social media company stokes online hate and extremism, fails to protect children from harmful content and lacks any incentive to fix the problems.

EU, INDIA, 8 OTHER COUNTRIES CALL FOR INT’L COOPERATION ON DATA PROTECTION

In a ‘Joint Declaration on Privacy and the Protection of Personal Data: Strengthening trust in the digital environment’, the European Union, Australia, Comoros, India, Japan, Mauritius, New Zealand, South Korea, Singapore, and Sri Lanka said rapid technological developments, in particular in information and digital technologies, have brought benefits for their economies and societies, as well as new challenges for privacy and the protection of personal data.

To foster data free flow with trust, which, as also acknowledged by the G20 Rome Leaders’ Declaration, is key to harnessing the opportunities of the digital economy, it is vital to ensure, as guaranteed by these countries’ respective legal frameworks, respect for individuals’ right to privacy and the protection of personal data as a core value and fundamental freedom, said the declaration.

They called for comprehensive legal frameworks and policies covering both the private and public sectors. They underlined core principles such as lawfulness, fairness, transparency, purpose limitation, data minimisation, limited data retention, data security, and accountability. They also called for enforceable rights of individuals, such as access, rectification, deletion, and safeguards concerning automated decision-making such as transparency and the possibility to challenge the outcome.

The joint declaration emphasised safeguards for international transfers to enable cross-border data flows by ensuring that the protection travels with the data. It also called for independent oversight by a dedicated supervisory authority and effective redress.

THE WAY FORWARD

GENERATE AND SPREAD DIGITAL AWARENESS: 

• Similar to many other Internet bills of rights promoted in the past few years by civil society groups and other international organisations, the EU declaration on digital rights and principles plays an important advocacy role in raising public awareness among citizens, institutions, and companies.

DEVELOP DIGITAL REGULATORY CAPABILITY:

• In a time when rapid global digital advancement consistently outpaces regulatory frameworks and institutions of State agencies in the multilateral domain, the declaration represents a unique step toward a human rights-based approach to digital governance and inclusion.
• However, they will remain mere declaratory without regulatory and governance mechanisms to enforce these rights.

A BENCHMARK FOR OTHER COUNTRIES:

• The declaration deals with very substantive aspects of the digital ecosystem including digital equality and oversight of tech companies. It provides a template for other countries/blocs so that they can streamline and update their own digital governances policies.

BALANCING THE RIGHTS OF THE MARKET, GOVERNMENT, AND CONSUMERS:

• The attempt to rein in the “Big-Tech Power” has been ongoing worldwide, including in the USA, Australia, India, etc.
• Although it is necessary to demand and enforce accountability on these companies, this should not lead to a situation of government control over citizens’ data.
• Also, the rights of the market, the free flow of data, and the development of the digital economy should not become a casualty.

LEGAL AND POLICY CERTAINTY IN INDIA:

• India requires a comprehensive digital law and policy system that integrate privacy, regulation, legitimate government control, and scope for digital entrepreneurship. The current Data Protection Bill requires serious overhauling so are the IT Act 2000 and other associated rules and policies.

THE CONCLUSION: The Declaration furthers the global conversation on digital constitutionalism, translating constitutional principles to address the challenges of the digital revolution. It reiterates that the digital world is not a lawless space: Existing fundamental rights are as valid online as they are offline. It is a good step towards promoting a safe, reliable, accountable, and equitable digital space that can benchmark other nations/groupings.

QUESTIONS:

• Comment on the salient features of the European Declaration on Digital Rights and Principles, 2022. How far do you think that they can address the problems of inequality, poor social inclusion, and lack of accountability in the digital ecosystem?
• “The European Declaration on Digital Rights and Principles, 2022 is although right in intent but lacks substance”. Critically Examine

THE INTRODUCTION: The need for a strong and resilient social infrastructure became even more important during the ongoing COVID-19 pandemic that brought into focus the vulnerabilities in social infrastructure across countries. Specifically, the pandemics posed the challenge of balancing livelihoods while saving lives. To save lives and livelihoods amidst the COVID crisis, countries have adopted various strategies. India, the country with the second-largest population and a large elderly population, adopted a multi-pronged approach. The government’s response through ‘Aatmanirbhar Bharat Abhiyan’ packages and other sector-specific initiatives have provided the necessary support to mitigate the adverse impact of a pandemic. This chapter gives a brief account of India’s response to Social Infrastructure and Employment.

INDIA’S HEALTH RESPONSE TO THE COVID-19

Like most other countries, India also faced two COVID-19 waves: the first in 2020 and the second in 2021. To save lives, the Government adopted a multi-pronged approach viz.

1. Restrictions/partial lockdowns,
2. Building capacity in health infrastructure,
3. COVID-19 appropriate behavior, testing, tracing, treatment
4. Vaccination drive.

COVID VACCINATION STRATEGY

• Guided by scientific and epidemiological evidence, World Health Organisation (WHO) guidelines, and global best practices, India’s National COVID Vaccination Program has been one of the world’s largest vaccination programs.
• Government of India procured 75 percent of monthly vaccine production and provided it free to States and UTs, while the rest could be procured by private hospitals.
• Availability of Vaccine: The ICMR funded the clinical trials of the COVISHIELD vaccine developed in collaboration with Oxford – Astra Zeneca. COVISHIELD and COVAXIN have been widely used vaccines in India. Every month about 250- 275 million doses of COVISHIELD and 50-60 million doses of COVAXIN have been produced.
• Pricing and equity: At all Government COVID-19 Vaccination Centres (CVCs), the COVID-19 vaccine was made available free of cost for all eligible citizens.
• Coverage: From 1st May 2021, all 94 crore persons of age 18 years and above, were made eligible for COVID vaccination. From 3rd January 2022, COVID-19 vaccine coverage has been extended to the age group of 15-18 years. Till 19th January 2022, 3.73 crore youngsters between 15-18 age group have been vaccinated with 1st dose of COVID-19 vaccine covering more than 50 percent of youngsters.
• Vaccine hesitancy: To reduce vaccine hesitancy, the Government made efforts that include awareness by identified experts. From 3rd November 2021, a campaign, ‘Har Ghar Dastak’, has been initiated to identify and vaccinate those who missed 1st dose and are due for 2nd dose through house-to-house mobilization activity.
• Technology-driven: Arogya Setu mobile app was launched to enable people to assess the risk of their catching the COVID-19 infection.
• Vaccination Progress: As of 16th January 2022, a total of 156.76 crore doses of COVID-19 vaccines have been administered: 90.75 crores first dose and 65.58 crores second dose.

Population vaccinated by country (in percent)

TRENDS IN SOCIAL SECTOR EXPENDITURE

• Government’s spending on social services increased significantly during the pandemic. In 2021-22 (BE), Centre and State governments earmarked an aggregate of ` 71.61 lakh crore for spending on the social service sector; an increase of 9.8 percent over 2020-21.
• Last year’s (2020-21) revised expenditure has also gone up by ` 54,000 crores from the budgeted amount. In 2021-22 (BE), funds to the sector increased to 8.6 percent of Gross Domestic Product (GDP) (8.3 percent in 2020-21).
• During the last five years, social services accounted for about 25 percent of the total Government expenditure (Centre and States taken together). In 2021-22 (BE), it was 26.6 percent.
• Expenditure in the health sector increased from ` 2.73 lakh crore in 2019-20 (pre-COVID-19) to ` 4.72 lakh crore in 2021-22 (BE), an increase of nearly 73 percent.
• Union Budget 2021-22, announced Ayushman Bharat Health Infrastructure Mission, a new Centrally Sponsored Scheme, with an outlay of about ` 64,180 crores in the next five years to develop capacities of primary, secondary, and tertiary care Health Systems
• Union Budget 2021-22 provided an outlay of Rs 35,000 crore towards COVID-19 vaccination.
• The National Health Policy, 2017 envisaged increasing the government’s health expenditure to 2.5 percent of GDP by 2025.

EDUCATION

• During initial COVID-19 restrictions, as a precautionary measure to protect the students from COVID-19, schools, and colleges were closed across India. This posed a new challenge for the Government in terms of continuity of education.
• School Infrastructure An assessment for the pre-pandemic year of 2019-20 for which data is available reveals that the number of recognized schools & colleges continued to increase between 2018-19 and 2019-20, except for primary & upper primary schools.

SCHOOL INFRASTRUCTURE

• An assessment for the pre-pandemic year of 2019-20 for which data is available reveals that the number of recognized schools & colleges continued to increase between 2018-19 and 2019-20, except for primary & upper primary schools.

• Toilets (girls or boys), drinking water, and hand-washing facilities are now available in most Government schools (10.32 lakh).
• Priority to drinking water and sanitation in schools under Jal Jeevan Mission, Swachh Bharat Mission as well as under Samagra Shiksha Scheme has been instrumental in providing required resources and creating these assets in schools.
• As of 19.01.2022, under Jal Jeevan Mission 8,39,443 schools were provided a tap water supply.
• Availability of teachers, measured by Pupil-Teacher Ratio, an indicator whose decrease signals improvement in quality of education, has improved at all levels continuously from 2012-13 to 2019-20: from 34 to 26 at primary, 23 to 18 at upper primary, 30 to 18 at secondary, and 39 to 26 at the higher secondary level.

Schools with Basic Facilities

SCHOOL ENROLMENT

• In 2019-20, 26.45 crore children were enrolled in schools. During the year, schools enrolled about 42 lakh, additional children, out of which 26 lakh were in primary to higher secondary levels and 16 lakh were in pre-primary as per the Unified District Information System for Education plus (UDISE+) database.
• The enrollments increased across all levels viz., upper-primary, secondary, and higher secondary, except for the primary level. At the primary level, enrollment reduced from 13.5 crores in 2012-13 to 12.2 crores in 2019-20. This decline in enrollment was because of a decline in the total number of children in the age group 6-10 years.

 School Gross Enrollment Ratios in India (in percent)

SCHOOL DROP-OUT

• the years 2019-20 saw a decline in dropout rates at primary, upper-primary, and secondary levels. In 2019-20, the school dropout rate at the primary level declined to 1.45 percent from 4.45 percent in 2018-19.
• ASER found that despite the pandemic, enrollment in the age cohort of 15-16 years continued to improve as the number of not enrolled children in this age group declined from 12.1 percent in 2018 to 6.6 percent in 2021.

Major Initiatives for Students during the COVID-19 pandemic

PM e-VIDYA: Major components

• One Nation, One Digital Education (DIKSHA) Platform
• One Class, One TV channel through Swayam Prabha TV Channels
• Extensive use of Radio, Community Radio, and Podcasts
• One DTH channel is being operated specifically for hearing impaired students in sign language.

National Digital Education Architecture (NDEAR): A digital infrastructure for Education, was launched on 29th July 2021.

Vidyanjali: To connect the Government and Government aided schools through a community/ volunteer management program.

Major Schemes for School Education during 2021-22

1. Samagra Shiksha Scheme has been continued for a period of five years, from 2021-22 to 2025-26.
2. NIPUN Bharat Mission: On 5th July 2021, the government launched a National Mission on Foundational Literacy and Numeracy called “National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN Bharat)”.
3. Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) Scheme: The Scheme, earlier known as the ‘National Programme for Mid-Day Meal in Schools”, covers all school children studying in Balvatika (just before class I) and Classes I-VIII in Government and Government-Aided Schools.

HIGHER EDUCATION

• Gross enrollment ratio in higher education was recorded at 27.1 percent in 2019-20, slightly higher than 26.3 percent in 2018-19. For males, it has also increased from 26.3 percent in 2018-19 to 26.9 percent in 2019-20 while for females it has increased from 26.4 percent to 27.3 percent respectively.

Gross Enrollment Ratios in Higher Education for age 18-23 years (in percent)

SKILL DEVELOPMENT

• To unlock the demographic dividend, several steps have been taken to increase the skill levels in the population. Periodic Labour Force Survey (PLFS) 2019-20 shows that formal vocational/technical training among youth (age 15-29 years) and working population (age 15-59 years) have improved in 2019-20 over 2018-19.
• The improvement in skills has also been for males and females, both in rural and urban sectors. However, formal training for males and females is lower in rural than in urban areas.
• As per the report of the first quarter (April-June, 2021) of the Quarterly Employment Survey (QES) in respect of establishments employing at least 10 workers in major nine sectors, 17.9 percent of estimated establishments were imparting formal skill training.

SKILL INDIA MISSION

• Launched in 2015, Skill India Mission focuses on re-skilling and up-skilling in prominent trades. Under the Mission, the government implements Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS) Scheme, and National Apprenticeship Promotion Scheme (NAPS), for providing short term Skill Development training and Craftsman Training Scheme (CTS), for long term training, to the youth.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• PMKVY has two training components, viz., Short Term Training (STT) and Recognition of Prior Learning (RPL). Between 2016-17 and 2021-22 (as of 15 January 2022 ), under PMKVY 2.0 about 1.10 crore persons were trained (inclusive of the placement-linked and non-placement-linked components of the PMKVY).

Jan Shikshan Sansthan (JSS) Scheme

• JSS aims to provide vocational skills to non-literate, neo-literates, persons with a rudimentary level of education up to 8th and school dropouts up to 12th standard in the age group of 15-45 years. The priority groups are women, SC, ST, minorities, Divya Gyan, and other backward sections of the society.

National Apprenticeship Promotion Scheme (NAPS)

• This Scheme promotes apprenticeship training and the engagement of apprentices by providing financial support to industrial establishments undertaking apprenticeship programs under The Apprentices Act, 1961. As of 31 October 2021, 4.3 lakh apprentices are engaged under the scheme.

Craftsmen Training Scheme (CTS)

• CTS is for providing long-term training in 137 trades through 14,604 Industrial Training Institutes (ITIs) across the country. For session 2020, 13.36 lakh trainees were enrolled.

 TRENDS OF EMPLOYMENT

In the absence of high-frequency data on labour market indicators, other proxies such as subscriptions to the EPFO scheme and demand for work under MGNREGA, have been used to analyze the more recent trends in employment in urban and rural sectors.

Trends in Urban employment using Quarterly PLFS data

• In the first quarter of 2020-21, the unemployment rate for the urban sector rose to 20.8 percent. The LFPR and WPR in the urban sector also declined significantly during this quarter.

• The UR gradually declined during this period to reach 9.3 percent in Q4 of 2020-21. The UR for males as well as females, aged 15 & above, recovered to the pre-pandemic levels.

TRENDS IN DATA ON DEMAND FOR WORK UNDER MGNREGS

• During the nationwide lockdown, the aggregate demand for MGNREGS work peaked in June 2020, and has thereafter stabilized.
• During the second COVID wave, demand for MGNREGS employment reached the maximum level of 4.59 crore persons in June 2021. Nonetheless, after accounting for seasonality, the demand at an aggregate level still seems to be above the pre-pandemic levels of 2019.
• For some states like Andhra Pradesh and Bihar, the demand for work under MGNREGS has reduced to below the pre-pandemic levels during the last few months.
• Intuitively, one may expect that higher MGNREGS demand may be directly related to the movement of migrant labouri. e. source states would be more impacted. Nevertheless, state-level analysis shows that for many migrant source states like West Bengal, Madhya Pradesh, Odisha, Bihar, the MGNREGS employment in most months of 2021 has been slower than the corresponding levels in 2020.
• In contrast, the demand for MGNREGS employment has been higher for migrant recipient states like Punjab, Maharashtra, Karnataka, and Tamil Nadu for most months in 2021 over 2020.

Long-term trends in employment using annual PLFS data

• During the Periodic Labour Force Survey (PLFS) 2019-20 (survey period from July 2019 to June 2020), employment at its usual status continued to expand. Between 2018-19 and 2019-20, about 4.75 crore additional persons joined the workforce.
• This is about three times more than the employment created between 2017-18 and 2018-19.

POLICY RESPONSES TO BOOST RURAL LIVELIHOOD

Incentives for job creation: Aatmanirbhar Bharat Rojgar Yojana (ABRY) was announced as a part of the Aatmanirbhar Bharat 3.0 package to boost the economy, increase the employment generation in the post-Covid recovery phase, and incentivize the creation of new employment along with social security benefits and restoration of loss of employment during COVID-19 pandemic.

Wage employment: To boost employment and livelihood opportunities for returnee migrant workers, Garib Kalyan Rojgar Abhiyaan was launched in June 2020. It focused on 25 target-driven works to provide employment and create infrastructure in the rural areas of 116 districts of 6 States with a resource envelope of Rs 50,000 crore.

Boosting Self-employment:

• The program targets to mobilize about 9-10 crore households into Self Help Groups (SHGs).
• Till December 2021, 8.07 crore households are mobilized into SHGs.

Social protection:

• Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) Yojana, launched on 05.03.2019, is a voluntary and contributory pension scheme for providing a monthly minimum assured pension of ` 3000 upon attaining the age of 60 years.
• As of 17.01.2022, the enrollment under the PMSYM scheme is 46.09 lakh persons, out of which female enrollment was 23.89 lakh and male enrollment was 22.20 lakh.

e-SHRAM Portal

• e-SHRAM portal has been launched to create a National Database of Unorganized Workers (UWs). One of the main objectives of this portal is to facilitate the delivery of Social Security Schemes to the workers. This database is seeded with Aadhaar and for the age group between 16-59 years.
• It includes construction workers, migrant workers, gig workers, platform workers, agricultural workers, MGNREGA workers, fishermen, milkmen, ASHA workers, Anganwadi workers, street vendors, domestic workers, rickshaws pullers, and other workers engaged in similar other occupations in the unorganized sector.

Status of Labour Reforms

• In 2019 and 2020, 29 Central Labour laws were amalgamated, rationalized, and simplified into four labor codes, viz., the Code on Wages, 2019 (August 2019), the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health & Working Conditions Code, 2020 (September 2020).
• The new laws were in tune with the changing labour market trends and at the same time accommodated the minimum wage requirement and welfare needs of the unorganized sector workers.

HEALTH

PROGRAMMES AND SCHEMES FOR THE HEALTH SECTOR

• Ayushman Bharat Health and Wellness Centres (AB-HWCs): The vision of Ayushman Bharat is to achieve universal health coverage. It adopts a continuum of care approach, comprising two inter-related components. The first component is the creation of 1,50,000 Health and Wellness Centres (HWCs) which cover both, maternal and child health services and non-communicable diseases, including free essential drugs and diagnostic services.
• Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): The scheme provides a health cover of ` 5 lakhs per family per year for secondary and tertiary care hospitalization to over 10.74 crores of poor and vulnerable families in the bottom 40 percent of the Indian population.
• PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) is a mission to develop the capacities of primary, secondary, and tertiary care health systems, strengthen existing national institutions, and create new institutions, to cater to the detection and cure of new and emerging diseases. It is the largest pan-India scheme for public health infrastructure since 2005.
• Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) is being implemented to correct regional imbalances in the availability of affordable reliable tertiary healthcare services and to augment facilities for quality medical education in the country.
• Ayushman Bharat Digital Mission (ABDM), erstwhile National Digital Health Mission (NDHM), announced on 27th September 2021 to develop the backbone necessary to support the integrated digital health infrastructure of the country.
• e-Sanjeevani: In wake of the COVID-19 pandemic, the Ministry of Health and Family Welfare upgraded the thee-Sanjeevani application to enable patient-to-doctor teleconsultation to ensure a continuum of care and facilitate health services to all citizens in the confine of their homes free of cost.

HEALTH OUTCOME INDICATORS

As per the latest National Family Health Survey (NFHS)-5, social indicators such as total fertility rate, sex ratio, and health outcome indicators viz., infant mortality rate, under-five mortality rate, institutional birth rates have improved over the year 2015-16.

CHILD HEALTH INDICATORS

• All child nutrition indicators have also improved at all Indian levels. Under Five Mortality Rate (U5MR) has declined from 49.7 in 2015-16 to 41.9 in 2019-21. Infant Mortality Rate (IMR) has declined from 40.7 per 1000 live births in 2015-16 to 35.2 per 1000 live births in 2019-21.
• Stunting has declined from 38 percent in 2015-16 to 36 percent in 2019-21. Wasting has also declined from 21 percent in 2015-16 to 19 percent in 2019-21. And, underweight declined from 36 percent in 2015-16 to 32 percent in 2019-21.

LIFE EXPECTANCY

• Life expectancy at birth was 69.4 years for the period 2014-18; it has increased by 0.4 years from 2013-17. It varies widely across states; ranging from the lowest at 65.2 years in Chhattisgarh to the highest at 75.3 years in Kerala and Delhi. It is higher in urban areas (72.6 years) than in rural areas (68.0 years).

DRINKING WATER AND SANITATION

JAL JEEVAN MISSION (JJM)

• In 2019, out of about 18.93 crore families in rural areas, about 3.23 crore (17 percent) rural families had tap water connections in their homes. As of 2 January 2022, 5,51,93,885 households have been provided with a tap water supply since the start of the mission.
• Six states/ Uts have achieved the coveted status of 100 percent households with tap water supply, namely Goa, Telangana, A & N Islands, Puducherry, Dadra, Nagar Haveli, Daman and Diu, and Haryana.

SWACHH BHARAT MISSION (GRAMEEN) [SBM-G]

• During 2021-22 (as of 25.10.2021) a total of 7.16 lakh Individual household latrines for new emerging households and 19,061 Community Sanitary Complexes have been constructed. Also, 2,194 villages have been declared as ODF Plus.
• As per the recently released findings of the fifth round of the National Family Health Survey, 2019-21 (NFHS-5), the population living in households that use an improved sanitation facility has increased from 48.5 percent in 2015-16 to 70.2 percent in 2019-21.

ELECTRICITY AND CLEAN COOKING FUEL

• As per NFHS-5, 58.6 percent of households were using clean fuel for cooking in 2019-21, a significant increase from 43.8 percent in 2015-16.

RURAL DEVELOPMENT

PRADHAN MANTRI AWAAS YOJANA-GRAMIN (PMAY-G)

• In the first phase from 2016-17 to 2018-19, one crore houses were taken up. Under phase II, assistance is being provided for the construction of the remaining 1.95 crore houses from 2019-20 to 2021-22.
• As of 18th January 2022, 2.17 crore houses have been sanctioned and 1.69 crore houses completed against a target of 2.63 crore houses till 2021-22.

PRADHAN MANTRI GRAM SADAK YOJANA (PMGSY)

• As of 18.01.2022, a total of 1,82,506 roads measuring 7,82,844 km and 9,456 Long Span Bridges (LSBs) have been sanctioned and 1,66,798 roads measuring 6,84,994 km and 6,404 LSBs have been completed.
• World Bank (2019) in an evaluation of the scheme found that PMGSY roads had a positive impact on human capital formation in rural India.

MULTIDIMENSIONAL POVERTY (MPI)

• Using the NFHS-4 (2015-16) report, in line with the global Multidimensional Poverty Index (MPI), NITI Aayog prepared Multidimensional Poverty Index at the national, for all states and districts of India.
• It will enable measuring deprivation across twelve indicators at the national, state, and districts level. In 2015-16, 25 percent of households were found to be multidimensional poor in India.
• Among states, Bihar had the largest (51.91%) multidimensional poor households, followed by Jharkhand (42.16%), Uttar Pradesh (37.79%), Madhya Pradesh (36.65%), Assam (32.67%), and Rajasthan (39.46%).
• Since the MPI index is based on NFHS-4 data of 2014-15, it may serve as the baseline for measuring deprivation in future studies.

THE INTRODUCTION: Services sector contributes over 50 percent to India’s GDP. While the Covid-19 pandemic has hurt most sectors of the economy, the services sector has been the worst affected as its’ share in India’s GVA declined from 55 percent in 2019-20 to 53 percent in 2021-22.1 Within the services sector, the effect of Covid-19 has been varied. While non-contact services such as information, communication, financial, professional, and business services have remained resilient, the impact has been much more severe on contact-based services such as tourism, retail trade, hotel, entertainment, recreation, etc.

IMPACT OF COVID-19 AND SEQUENTIAL RECOVERY

• The services sector contracted by 8.4 percent Year on Year (YoY) in 2020-21 (Table 1). This decline was driven by a sharp contraction of 18.2 percent YoY in the sub-sector ‘Trade, hotels, transport, communication & services related to broadcasting.
• Owing to its contact-intensive nature, the services included in this sub-sector had to bear the maximum brunt of the disruptions caused by the prevailing pandemic.
• The sub-sector ‘Public administration, defense & other services’ includes expenditure by the government and services such as health, education, recreation, etc, on the other, contracted by 4.6 percent YoY in 2020-21.

• The relatively less contact intensive sub-sector ‘Financial, real estate & professional services’ was the least impacted, with a marginal decline of 1.5 percent YoY in its GVA during 2020-21.

TRENDS IN HIGH-FREQUENCY INDICATORS

The upturn in Services GVA, when seen with the trend in high-frequency indicators such as Purchasing Managers Index (PMI) Services Index, freight and passenger traffic point to a pickup in economic momentum.

SERVICES PMI

• India’s services sector activity, gauged by PMI services, which had contracted for five consecutive months since March 2020, recovered sharply in October 2020. It dropped again for three consecutive months (May, June, and July 2021) as a consequence of the second Covid-19 wave. Notably, the contraction during May-July 2021 was not as sharp as seen during the first lockdown.
• With the easing of restrictions, PMI Services started to grow once again from August 2021 recording the strongest jump in over 10 years to 58.4 in October 20213 (Figure 1(a)). PMI index moderated to 55.5 in December 2021.

FREIGHT TRAFFIC

• As the economy gradually opened up in June 2020, freight traffic also improved. Freight traffic registered strong growth during April- June 2021, partly reflecting the rebound from the low base during the same period last year. The impact of the second covid wave in April-May 2021 on these indicators was much more muted as compared to during the full lockdown in March-May 2020.

BANK CREDIT TO THE SERVICES SECTOR

• Bank credit growth to the services sector which had moderated significantly in 2019, started picking up in 2020, increasing to 8.8 percent (YoY) at the end of December 2020, as compared to 6.2 percent in December 2019 (Figure 2). This momentum has lost its pace in 2021-22.
• Bank credit growth decelerated to 3.6 percent YoY at the end of November 2021 as compared to 8.2 percent a year ago. However, it is important to note that corporates have raised more money through capital markets than banking capital in 2021-22 so far.

SERVICES SECTOR SHARES AT THE STATE AND UT LEVEL

• The services sector accounts for more than 50 percent of the Gross State Value Added (GSVA) in 12 out of the 33 states and UTs (Table 3). Chandigarh stands out with a particularly high share of services in GSVA at 74 percent while Sikkim’s share remains the lowest at 24.25 percent. Notably, the Services share in Sikkim’s GSVA has increased from over 18 percent in 2018-19 to over 24 percent in 2020-21. Similarly, over the last three years, the share of services in GSVA has increased by over 4 percent for Himachal Pradesh and Odisha. Maharashtra and Karnataka are the top two contributors to services GSVA, with Rs 15.1 lakh crore and Rs 9.71 lakh crore gross value added by the services sector in 2020-21 respectively.
• Due to the Covid-19 pandemic and restrictions on movement, GSVA in the services sector declined in 2020-21 relative to the pre-pandemic year 2019-20. This is true for 13 out of 20 states for which data is available. During 2020-21, services GSVA contracted by almost 11 percent in Rajasthan and almost 10 percent in Jharkhand and Punjab. On the other hand, Sikkim achieved the highest growth of 11.71 percent in services GSVA during 2020-21.

FDI IN SERVICES

• The Services Sector was the largest recipient of FDI inflows in India. During H1 2021-22, Services Sector received $ 16.73 billion in FDI equity inflows. “Financial, Business, Outsourcing, R&D, Courier, Tech testing & Analysis along with Education sub-sector witnessed strong FDI inflows”, mentioned the Survey.

TRADE-IN SERVICES

• India had a dominant presence in global services exports. It remained among the top ten services exporter countries in 2020, with its share in world commercial services exports increasing to 4.1% in 2020 from 3.4% in 2019. “The impact of Covid-19 induced global lockdown on India’s services exports was less severe as compared to merchandise exports”.
• Despite Covid-19’s impact on transport exports, double-digit growth in gross exports of services, aided by exports of software, business, and transportation services, resulting in an increase of 22.8% in net exports of services in H1 2021-22.

SUB-SECTOR WISE PERFORMANCE

IT-BPM (INFORMATION TECHNOLOGY – BUSINESS PROCESS MANAGEMENT) SECTOR

• IT-BPM sector as a major segment of India’s services. During 2020-21, according to NASSCOM’s provisional estimates, IT-BPM revenues (excluding e-commerce) reached $ 194 billion, growing by 2.26% YoY, adding 1.38 lakh employees.
• Within the IT-BPM sector, IT services constitute the majority share (>51%). The Economic Survey observed that over the last year, several policy initiatives have been undertaken to drive innovation and technology adoption in the sector, including relaxation of Other Services Provider regulations, Telecom Sector Reforms, and Consumer Protection (e-commerce) Rules, 2020.
• This would significantly expand access to talent, increase job creation and catapult the sector to the next level of growth and innovation.

STARTUPS AND PATENTS

• Startups in India had grown remarkably over the last six years, most of which belonged to the Services Sector. More than 61,400 startups have been recognized in India as of January 10, 2022.
• India had a record number of Startups (44) reaching unicorn status in 2021.
• intellectual property, specifical patents were key to a knowledge-based economy.
• The number of patents filed in India has gone up to 58,502 in 2020-21 from 39,400 in 2010-11 and the patents granted in India have gone up to 28,391 from 7,509 during the same period.

Tourism Sector

• The tourism sector was a major contributor to GDP growth, foreign exchange earnings, and employment, however, the Covid-19 pandemic had a debilitating impact on world travel and tourism everywhere, including India.
• The resumption of International tourism will continue to depend largely on a coordinated response among countries in terms of travel restrictions, harmonized safety, and hygiene protocols, and effective communication to help restore consumer confidence.
• Special international flights have been operating under the Vande Bharat Mission which was currently in its 15^thphase and had carried over 63.55 lakh passengers.

PORTS, SHIPPING, AND WATERWAYS SERVICES

• The development of ports was crucial for the economy. Ports handled around 90% of export-import cargo by volume and 70% by value.
• The total cargo capacity of all ports had increased to 1,246.86 Million Tonnes Per Annum (MTPA) as of March 2021 from 1052.23 MTPA in March 2014.
• Also, the Port traffic had picked up in 2021-22 registering a growth of 10.16% during April-November 2021, after being hit by disruptions caused by Covid-19 in 2020-21.
• The Sagarmala Programme, a flagship program, aimed at promoting port-led development in the country with 802 projects worth Rs. 5.53 lakh crore under its ambit.

SPACE SECTOR

• Since its inception in the 1960s, the Indian space program has grown drastically. Capabilities have been developed in the space sector across all domains including indigenous space transportation systems, space assets comprising a fleet of satellites catering to various needs of the society.
• The Government undertook various reforms in the space sector in 2020, envisaging participation of the private sector in providing space-based services. These reforms included empowering New Space India Limited (NSIL) and changing the present supply-based model to a demand-driven model; creating an independent nodal agency i.e. Indian National Space Promotion and Authorization Centre (IN-SPACe) under the Department of Space; and providing a predictable, forward-looking, well defined and enabling regulatory regime for space activities in the country.

HIGHLIGHTS

• GVA of services crossed pre-pandemic level in July-September quarter of 2021-22; however, GVA of contact intensive sectors like trade, transport, etc. still remain below pre-pandemic level.
• Overall service Sector GVA is expected to grow by 8.2 percent in 2021-22.
• During April-December 2021, rail freight crossed its pre-pandemic level while air freight and port traffic almost reached their pre-pandemic levels, domestic air, and rail passenger traffic are increasing gradually – showing the impact of the second wave was much more muted as compared to during the first wave.
• During the first half of 2021-22, the service sector received over US$ 16.7 billion in FDI – accounting for almost 54 percent of total FDI inflows into India.
• IT-BPM services revenue reached US$ 194 billion in 2020-21, adding 1.38 lakh employees during the same period.
• Major government reforms include, removing telecom regulations in the IT-BPO sector and opening up of space sector to private players.
• Services exports surpassed the pre-pandemic level in the January-March quarter of 2020-21 and grew by 21.6 percent in the first half of 2021-22 – strengthened by global demand for software and IT services exports.
• India has become 3^rd largest start-up ecosystem in the world after US and China. The number of newly recognized start-ups increased to over 14000 in 2021-22 from 733 in 2016-17.
• 44 Indian start-ups have achieved unicorn status in 2021 taking the overall tally of unicorns to 83, most of which are in the services sector.

THE INTRODUCTION: Global Industrial activity continued to be affected by the disruptions caused by the COVID-19 pandemic. While the Indian industry was no exception to these disruptions, its performance has improved in 2021-22. Gradual unlocking of the economy, record vaccinations, improvement in consumer demand, continued policy support towards industries by the government in the form of Atma Nirbhar Bharat Abhiyan, and further reinforcements in 2021-22 have led to an upturn in the performance of the industrial sector. The introduction of the production linked incentive scheme (PLI) to encourage scaling up of industries and a major boost provided to infrastructure-both physical as well as digital– combined with continued measures to reduce transaction costs and improve ease of doing business, would support the pace of recovery.

INDEX OF INDUSTRIAL PRODUCTION (IIP)

• The impact of the pandemic on the industrial sector is reflected in the negative growth of 8.4 percent in 2020-21. From April-November 2021-to 22 the IIP grew by 17.4 percent as compared to (-15.3) percent in the corresponding period of the previous year.
• The supply-side measures as also steps to bolster demand, taken to address the contraction, are responsible for the significantly improved performance of the industrial sector in 2021-22.
• In November 2021 the IIP index grew by 1.4 percent with the mining sector recording a growth of 5.0 percent followed by electricity at 2.1 percent and manufacturing at 0.9 percent.

EIGHT CORE INDEX (ICI)

• The monthly Index of Eight Core Industries (ICI) measures the collective and individual performance of production in selected eight core industries like Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. This is an index of the eight most fundamental industrial sectors of the Indian economy and comprises 40.27 percent of the weight in IIP.
• The growth rate of the ICI index during the period of April-November 2021-22 was 13.7 percent as compared to (-)11.1 percent in the corresponding period of the last financial year. This acceleration in ICI is mainly driven by improved performance in steel, cement, natural gas, coal, and electricity. Fertilizers and crude oil registered a negative growth of 0.6 percent and 2.7 percent respectively.

GROSS FIXED CAPITAL FORMATION

• Gross fixed capital formation (GFCF) is the gross addition to fixed assets like machinery and equipment, intangible assets and indicates the state of investments in the economy. During 2019-20, the share of the industrial sector in total GFCF in the economy (at current prices) was recorded at 30.1 percent, which is slightly lower than 31 percent in the previous financial year.
• Within the industrial sector, the share of manufacturing in GFCF was 51 percent, followed by electricity at 23 percent, construction at 21 percent, and mining with 5 percent. While aggregate GFCF (at constant prices) grew by 9.9 percent and industrial GFCF grew by 12.4 percent in 2018-19, it grew by 5.4 percent and 3.7 percent respectively in 2019-20.
• During 2019-20, GFCF in the mining and electricity sectors registered a negative growth of 12.9 percent and 6 percent respectively, but the GFCF grew by 10.2 and 4.4 percent in the manufacturing and construction sectors respectively on a yo-y basis.

CREDIT IN INDUSTRY

• Gross bank credit to the industrial sector, recorded a growth of 4.1 percent in October 2021 (Y-o-Y basis) compared to a negative growth of 0.7 growth in October 2020.
• The share of industry in non-food credit stood at 26 percent in October 2021. Certain industries such as mining, textiles, petroleum, coal products and nuclear fuels, rubber, plastic, and infrastructure have shown consistent improvement in credit growth.

FDI IN INDUSTRIES

• India registered its highest-ever annual FDI inflow of US$ 81.97 billion (provisional) in 2020-21 reflecting a growth of 10 percent as compared to the previous year.
• The increase has been on the back of growth of 20 percent in 2019-20. In the year 2021-22, FDI inflow grew by 4 percent in the first six months to reach US$ 42.86 billion as compared to US$ 41.37 billion for the same period of last year.
• Over the last seven financial years (2014-21), India received FDI inflow worth US$ 440.27 billion which is nearly 58 percent of the FDI received by the country in the last 21 years(US$ 763.83 billion).

PERFORMANCE OF CENTRAL PUBLIC SECTOR ENTERPRISES

• CPSEs are an important constituent of the Indian industry. As of 31.03.2020, 256 CPSEs were operational. The overall net profit of operating CPSEs during 2019-20 stood at Rs. 93,295 crore Contribution of all CPSEs to the central exchequer by way of excise duty, GST, corporate tax, dividend, etc. stood at Rs. 3,76,425 crore.
• The CPSEs across sectors employed 14,73,810 persons, of which 9,21,876 were regular employees.
• By Union Budget 2021-22 announcement, the government has approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.
• The non-strategic CPSEs will be privatized or otherwise shall be closed. Thus, the policy on public sector enterprises provides a clear path for disinvestment in all nonstrategic and strategic sectors and strengthens the idea of Minimum Government – Maximum Governance.

CORPORATE PERFORMANCE

• With economic recovery, concomitant improvement in demand and improved business sentiments have had a positive effect on the performance of the corporate sector.
• In response to the favorable base effect, sales of 1,687 listed manufacturing companies recorded steady and broad-based growth of 34.0 percent in Q2: FY22 as compared to (-)4.3 percent growth in Q2: FY21, on an annual (y-o-y) basis.

SECTOR-WISE PERFORMANCE AND ISSUES IN THE INDUSTRY

Steel: The performance of the steel industry is pivotal for the growth of the economy. Despite being hit by COVID-19, the steel industry has bounced back with cumulative production of crude and finished steel in 2021-22(April-October) at 66.91 MT and 62.37 MT, an increase of 25.0 percent and 28.9 percent respectively.

Coal: Coal is the most important and abundant fossil fuel in India and accounts for 55 percent of the country’s energy needs. Coal production increased by 12.24 percent in April-October 2021 as compared to (-) 3.91 percent in April-October 2020. Overall production of raw coal in India during the year 2020-21 was 716.08 million tonnes (provisional) as compared to 730.87 million tonnes achieved in the previous year 2019-20.

Micro Small Medium Enterprise: Micro, Small & Medium Enterprises(MSMEs) contribute significantly to the economic and social development of the country by fostering entrepreneurship and by generating employment opportunities. The relative importance of MSMEs can be gauged from the fact that the share of MSME GVA in total GVA (current prices) for 2019-20 was 33.08 percent. The CHAMPIONS portal is an ICT-based technology system for making the smaller units big by helping and hand-holding them.

The key features of the portal include:

• Information dissemination: Regular updates on recent development in the MSME sector.
• To resolve the grievances in a fast track manner, all Nationalised Banks, a good number of Private/Regional Rural Banks, State Financial Corporations, Central Government Ministries/ Departments, State Governments, and CPSEs have been boarded on the portal.
• Scheme/Programme-wise mapping of officials of the Ministry for fast-track responses to grievances.
• Integration with various portals such as MSME Samadhaan, Udyam Registration, CPGRAM, etc.

Textiles: Textile industry is the second-largest employment generator in the country, next only to agriculture. In the last decade, close to Rs. 203,000 crores have been invested in this industry with direct and indirect employment of about 105 million people, a major part of which is women. Despite the industry being deeply affected by the lockdown, it has shown a remarkable recovery with a positive contribution to growth, as reflected by IIP, of 3.6 percent from April-October 2020.

Electronics Industry: Government accords high priority to electronics hardware manufacturing. The government has therefore notified the National Policy on Electronics 2019 (NPE 2019) on 25.02.2019 to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets. Additionally, NPE 2019 attempts to catalyze the growth of the Indian electronics ecosystem through the

• Production Linked Incentive (PLI) Schemes for Large Scale Electronics Manufacturing
• PLI Scheme for IT Hardware
• Scheme for Promotion of Manufacturing of electronic components and Semiconductors (SPECS)
• Modified Electronics Manufacturing Clusters 2.0 (EMC 2.0).

Recently, the government has approved an outlay of Rs. 76,000 Crore (>US$ 10 Bn) for the development of the Semiconductors and Display Manufacturing Ecosystem. The government’s intervention to boost this industry has come at a time when the global economy is facing an acute shortage of semiconductors due to severe disruptions in supply chains.

Pharmaceuticals: Indian Pharmaceutical industry ranks third in the world in pharmaceutical production by volume. During 2020-21, total pharma export US$ 24.4 Bn against the total pharma import of US$7.0 Bn. The initiatives taken by the government to address the requirement of the pharmaceutical and medical devices industry are as follows:

• Bulk Drug Parks that envisages the creation of world-class infrastructure facilities.
• Bulk drugs have been approved for the promotion of domestic manufacturing of 53 critical APIs.
• Production linked incentive (PLI) scheme for Pharmaceuticals.
• Promoting Domestic Manufacturing of Medical Devices was approved on 20th March 2020.

INFRASTRUCTURE

NATIONAL INFRASTRUCTURE PIPELINE (NIP)

• To achieve a GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion over these years on infrastructure. During FYs 2008-17, India invested about US$1.1 trillion in infrastructure. However, the challenge is to step up infrastructure investment substantially.
• Keeping this objective in view, National Infrastructure Pipeline (NIP) was launched with a projected infrastructure investment of around Rs. 111 lakh crore (US$ 1.5 trillion) during FY 2020-2025 to provide world-class infrastructure across the country and improve the quality of life for all citizens.
• It also envisages improving project preparation and attracting investment, both domestic and foreign in infrastructure.

NATIONAL MONETISATION PIPELINE (NMP)

• A robust asset pipeline has been prepared to provide a comprehensive view to investors and developers of the investment avenues in infrastructure. The pipeline includes a selection of de-risked and brownfield assets with a stable revenue generation profile (or long rights) which will make for an attractive investment option.
• Total indicative value of NMP for core assets of the Central Government has been estimated at Rs 6.0 lakh crore over 4 years (5.4 percent of total infrastructure investment envisaged under NIP).

ROAD TRANSPORT

• The road network of the country consists of National Highways(NH), State-Highways (SH), District Roads, Rural Roads, Urban Roads, and Project Roads of over 63.71(Provisional) lakh km of roads as of 31 March 2019, which is the second-largest in the world, after the United States with 66.45 lakh km of roads.
• There has been a consistent increase in the construction of National Highways/roads since 2013-14 with 13,327 km of roads constructed in 2020-21 as compared to 10,237 km in 2019-20, indicating an increase of 30.2 percent over the previous year.

RAILWAYS

• Being the third-largest network in the world under single management and with over 68,102 route km IR strives to provide a safe, efficient, competitive, and world-class transport system.
• An average of 1835 track km per year of new track length has been added through new-line and multi-tracking projects during 2014-2021 as compared to the average of 720 track km per day during 2009-14.
• To strengthen the agriculture sector, as of 31st December 2021, IR has operated 1,841 Kisan Rail services, transporting approximately 6.0 lakh tonnes of perishables including fruits and vegetables.
• To provide better amenities IR has embarked on providing Wi-Fi internet services at all stations (excluding halt stations). As of 5th December 2021, a total of 6,087 Railway Stations has been equipped with a Wi-Fi facility.

CIVIL AVIATION

• India has emerged as one of the fastest-growing aviation markets in the world. The domestic traffic in India has more than doubled from around 61 million in 2013-14 to around 137 million in 2019-20, registering a growth of over 14 percent per annum.
• Till the launching of UDAN in 2016, India had 74 airports have scheduled operations. But, within 4 years under UDAN, four rounds of bidding under RCS-UDAN have taken place and 153 RCS airports including 12 water aerodromes & 36 Helipads have been identified for the operation of RCS flights.

PORTS

• Port performance in an economy is crucial for the trade competitiveness of that economy. Expansion of port capacity has been accorded the highest priority by the Government through the implementation of well-conceived infrastructure development projects. The capacity of 13 major ports which was 871.52 million tonnes per annum (MTPA) at the end of March 2014, has increased by 79 percent to 1,560.61 MTPA by the end of March 2021.
• Many initiatives have been taken by the government to improve port governance, augment capacity utilization, enhance port efficiency and connectivity. The measures include the following among others:
• Sagarmala is a National Programme aimed at accelerating economic development in the country by harnessing the potential of India’s 7,500 km long coastline and 14,500 km of potentially navigable waterways.
• The Major Port Authorities Act 2021 was notified on 18.2.2021. This act provides for inter alia regulation, operation, and planning of major ports in India and vests the administration, control, and management of such ports upon the Boards of Major Port Authorities.
• A new Captive Policy for Port Dependent Industries has been prepared to address the challenges of renewal of the concession period, the scope of expansion, and the dynamic business environment.

INLAND WATERWAYS

• Regulatory amendment through the Inland Vessels Act, 2021, replaced the over 100 years old Inland Vessels Act, 1917 (1 of 1917) and ushered in a new era in the inland water transport sector.
• Augmentation in navigation capacity of National Waterway-1 (NW-1) is being implemented since 2018 through the Jal Marg Vikas Project from Varanasi to Haldia stretch of the Ganga-Bhagirathi-Hooghly River System to enable large barge movements.
• Construction of multi-modal terminals at Varanasi and Sahib Ganj has been completed and that of the multimodal terminal at Haldia and the Navigational Lock at Farakka has achieved substantial progress. The other projects such as the comprehensive development of NW-2 and NW-16 &Indo-Bangladesh Protocol (IBP) route are proposed to be undertaken for 5 years for Rs. 461 crores and Rs.145.29 crores respectively, from 2020-21 to 2024-25.

TELECOM

• The relevance of the telecom sector has increased immensely. This can be gauged from the fact that the total telephone subscriber base in India has increased from 933.02 million in March 2014 to 1200.88 million in March 2021. In March 2021, 45 percent of subscribers were based in rural India and 55 percent in urban areas.
• Internet penetration in the country is increasing steadily with internet subscribers increasing from 302.33 million in march 2015 to 833.71 million in June 2021. While 67.2 percent of internet subscribers had narrowband connections and 32.8 percent had broadband connections in 2015, the composition had reversed by June 2021 with only 4 percent of subscribers having a narrow band and 96 percent with broadband connections.
• The number of mobile towers has also increased substantially reaching 6.93 lakhs towers in December 2021, reflecting that the telecom operators have well realized the potential in the sector and seized the opportunity to build up an infrastructure that will be fundamental in boosting the Government’s Digital India campaign.

PETROLEUM, CRUDE, AND NATURAL GAS

• Crude oil and condensate production during the year 2020-21 was 30.49 million metric tonnes (MMT), lower than the production level of 32.17 MMT in 2019-20 and 94.3 percent of the target of 32.32 MMT for 2020-21. India depends on imports to meet more than 80 percent of its requirements.
• Natural Gas production during the year 2020-21 was 28.67 billion cubic meters (BCM) as against the production of 31.18 BCM in 2019-20 and 85.4 percent against the target of 33.57 BCM for 2020-21.
• The production of petroleum products was 233.51 MMT in 2020-21 as against 258.18 MMT in 2019-20, showing achievement of 90.2 percent of the target of 259.02 MMT for 2020- 21.

ELECTRICITY

• India has witnessed a significant transformation from being an acute power deficit country to a situation of demand being fully met.
• India has also made remarkable strides to ensure universal access to electricity for every household.
• The total installed power capacity and captive power plant was 459.15 GW on 31.03.2021 as compared to 446.35 GW on 31.03.2020 registering a growth of 2.87 percent. Installed capacity in utilities was 382.15 GW on 31.03.2021 as compared to 370.11 GW on 31.03.2020 – increasing by 3.25 percent.
• Thermal sources of energy make the largest – 61.42 percent share of total installed capacity in utilities followed by renewable energy resource (RES) with 24.7 percent and hydro with 12.09 percent.
• The total electricity generated including that from captive plants during the year 2020-21 was 15.73 lakh GWh as compared to 16.23 lakh GWh during the year 2019-20, of which 13.73 lakh GWh was generated by utilities and 2 lakh GWh in captive plants.

Renewable energy – Solar, Wind, Biomass, and small hydro energy

• India has witnessed the fastest rate of growth in renewable energy capacity addition among all large economies, during the last 7.5 years with renewable energy capacity growing by 2.9 times and solar energy expanding by over 18 times.
• To facilitate renewable power evacuation and reshape the grid for future requirements, the Green Energy Corridor (GEC) projects have been initiated. The GEC Project aims at synchronizing electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid.

THE CONCLUSION: The Government has charted out a comprehensive program for industrial transformation. With an emphasis on supply-side measures, the reforms address long known bottlenecks of insufficient infrastructure, tardy business processes, and labour market reforms. The introduction of the production-linked incentive schemes intends to encourage the scaling up of industries that are strategic in nature or are technology-intensive. The objective is to create the capacity to integrate with the global value chains. Several measures have been taken to reduce transaction costs, especially for the small and medium enterprises as well as facilitate the inflow of capital, technology, and international best practices into the industries. The new CPSE policy provides a road map for disinvestment, opening up avenues for further growth and improvement in efficiency while enabling the government to focus its resources on the developmental needs of the country. The recovery of the industrial sector, positive business expectations propelled by extensive reforms, and improved consumer demand, suggest that further improvements in industrial performance can be expected.

HIGHLIGHTS

• Index of Industrial Production (IIP) grew at 17.4 percent (YoY) during April-November 2021 as compared to (-)15.3 percent in April-November 2020.
• Capital expenditure for the Indian railways has increased to Rs. 155,181 crores in 2020-21 from an average annual of Rs. 45,980 crores during 2009-14 and it has been budgeted to further increase to Rs. 215,058 crores in 2021-22 – a five times increase in comparison to the 2014 level.
• Extent of road construction per day increased substantially in 2020-21 to 36.5 Km per day from 28 Km per day in 2019-20 – a rise of 30.4 percent.
• Net profit to sales ratio of large corporates reached an all-time high of 10.6 percent in the July-September quarter of 2021-22 despite the pandemic (RBI Study).
• Introduction of Production Linked Incentive (PLI) scheme, the major boost provided to infrastructure-both physical as well as digital, along with measures to reduce transaction costs and improve ease of doing business, would support the pace of recovery.

THE INTRODUCTION: The Agriculture sector which accounts for 18.8 percent of the Gross Value Added (GVA) of the country in 2021-22 has experienced buoyant growth in the past 2 years. It grew at 3.9 percent in 2021-22 and 3.6 percent in 2020-21 showing resilience in the face of COVID-19 shock. The Survey attributes this to “good monsoon, various Government measures to enhance credit availability, improve investments, create the market facility, promote infrastructure development and increased provision of quality inputs to the sector”. It also observes that livestock and fisheries have experienced buoyant growth and had helped the sector perform well.

GROSS VALUE-ADDED AND GROSS CAPITAL FORMATION

• The share of the agriculture and allied sector in total GVA of the economy has settled at around 18 percent in the long term states the Survey. In the year 2021-22 it is 18.8 percent and in the year 2020-21, it was 20.2 percent. Another trend observed is, higher growth in allied sectors (Livestock, Forestry and Logging, Fishing and Aquaculture) compared to the crop sector. Recognizing these allied sectors as engines of high growth the Committee on Doubling Farmers’ Income (DFI 2018) had also recommended focused policy with a concomitant support system to boost agricultural incomes.
• There is a direct correlation between capital investments in agriculture and its growth rate. The Gross Capital Formation in the agricultural sector relative to the GVA in the sector is showing a fluctuating trend in sync with the variation in private sector investments, whereas the public sector investments have remained stable at 2-3 percent over the years. The Survey suggests “higher access to institutional credit to farmers and greater participation of the private corporate sector” may improve private sector investment in agriculture. Towards this end, the Survey recommends offering an appropriate policy framework to crowd-in corporate investments along with an increase in public investments along the entire agricultural value chain.

AGRICULTURAL PRODUCTION

• The Survey states that as per the First Advance Estimates for 2021-22 (Kharif only), total food grain production is estimated at a record level of 150.50 million tonnes, an increase of 0.94 million tonnes over Kharif production in the year 2020-21. Survey also points out that the production of rice, wheat, and coarse cereals had increased at Compound Annual Growth Rates (CAGR) of 2.7, 2.9, and 4.8 percent respectively over the period between 2015-16 and 2020-21. For pulses, oilseeds, and cotton during the same period, it has been 7.9, 6.1, and 2.8 percent respectively.
• India is the second-largest producer of sugar in the world. India has become a “sugar surplus nation” says the Survey. It points out that since 2010-11, the production has outstripped the consumption except in the year 2016-17.  This has been made possible by ensuring and protecting the sugarcane farmers against price risk through Fair and Remunerative Price (FRP), enhancing the liquidity of mills by incentivizing them to divert excess sugarcane/sugar to ethanol production and provide financial assistance for transportation to sugar mills to facilitate the export of sugar says Survey.

CROP DIVERSIFICATION

• The existing cropping pattern is skewed towards the cultivation of sugarcane, paddy, and wheat which has led to the depletion of fresh groundwater resources at alarming rates, it also points out that extremely high water stress levels are recorded in the country’s north-western region.
• To promote water use efficiency and sustainable agriculture and ensure higher incomes to farmers, the Government is implementing the Crop Diversification Programme in the original green revolution States viz., Punjab, Haryana, and Western Uttar Pradesh as a sub-scheme under Rashtriya Krishi Vikas Yojana since 2013-14 to shift area under paddy cultivation towards less water-intensive crops such as oilseeds, pulses, and Nutri-cereals, etc. The program also focuses on shifting areas under tobacco cultivation to alternative crops in States viz. Andhra Pradesh, Bihar, Gujarat, Karnataka, Maharashtra, West Bengal among other tobacco-producing states. The government is also using price policy to signal farmers to diversify their crops.

WATER AND IRRIGATION

• 60 percent of the net irrigated area in the country is serviced through groundwater. The rate of extraction of groundwater is very high (more than 100%) in the states of Delhi, Haryana, Punjab, and Rajasthan. Noting that increased coverage under micro-irrigation can be the most effective mode of water conservation, the Survey suggests these States need to focus on both medium and long-term groundwater recharge and conservation plans.
• To mobilize resources to expand coverage of micro-irrigation, a Micro-Irrigation Fund (MIF) with a corpus of Rs. 5000 crores were created under NABARD during 2018-19. As of 01.12.2021, projects with loans under MIF amounting to Rs. 3970.17 crore has been approved for 12.81 lakh hectares of micro-irrigation area. Further, the Survey highlights that under Pradhan Mantri Krishi Sinchayee Yojana, as of 14.12.2021 total area of 59.37 lakh hectares has been covered under micro-irrigation in the country from 2015-to 16.

NATURAL FARMING

• To sustain agricultural production through eco-friendly processes in tune with nature, ensure chemical-free produce and preserve soil productivity government is also encouraging farmers to adopt natural farming techniques. Towards this end, the government is implementing a dedicated scheme of the Bharatiya Prakritik Krishi Paddhati Programme (BPKP).

AGRICULTURAL CREDIT AND MARKETING

• The agricultural credit flow for the year 2021-22 has been fixed at Rs. 16,50,000 crores and till 30^thSeptember 2021, against this target a sum of Rs.7,36,589.05 crores has been disbursed. Moreover, under the Atma Nirbhar Bharat program, the government also announced an Rs. 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards (KCC). Towards this end, banks have issued KCCs to 2.70 crore eligible farmers as of 17.01.2022. Further Government has extended the KCC facility to the fisheries and animal husbandry sector in 2018-19.
• To link the farmers with markets and to help them in trading and realizing competitive and remunerative prices for their produce the government has been working continuously to improve market linkages and marketing infrastructure. Towards this end, the APMCs have been recognized as eligible entities under Agriculture Infrastructure Fund (AIF). Additionally, under the National Agricultural Market (e-NAM) scheme as of 1^stDecember 2021, 1000 mandis of 18 States and 3 UTs have been integrated with the e-NAM platform.

• The Government has also launched a central sector scheme of ‘Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)’ to form and promote 10,000 FPOs by 2027-28. As of January 2022, a total of 1963 FPOs have been registered under the scheme. The government has also established a full-fledged Ministry of Co-operation in July 2021 to provide a greater focus on the cooperative sector.

NATIONAL MISSION ON EDIBLE OILS

• India is the world’s second-largest consumer and number one importer of vegetable oil. The oilseed production in India has been steadily growing since 2016-17. It was showing a fluctuating trend before that. It had grown at almost 43 percent from 2015-16 to 2020-21.
• The demand for edible oil in India would remain high due to population growth, urbanization, and the consequent change in dietary habits and traditional meal patterns.
• Given the persistently high import of edible oil, to increase oil production the Government had been implementing a centrally sponsored scheme of National Food Security Mission: Oilseeds (NFSM – Oilseeds) since 2018-19 across all districts in the country.
• The scheme the government has set up 36 oilseed hubs between 2018-19 and 2019-20 to increase the availability of high yielding quality seed. For Kharif 2021, the union government had allocated 9.25 lakhs of oilseed mini kits of high yielding varieties to states for distribution.
• Further, in August 2021, the Government had launched the National Mission on Edible Oils – Oil Palm (NMEO-OP) to augment the availability of edible oils by “harnessing area expansion and through price incentives”. The scheme aims to cover an additional area of 6.5 lakh hectares for oil palm by 2025-26 and thereby reach a target of 10 lakh hectares ultimately.
• Currently 3.70 lakh hectares area under oil palm cultivation. Also, the scheme aims to increase the Crude Palm Oil (CPO) production to 11.20 lakh tonnes by 2025-26 and up to 28 lakh tonnes by 2029-30.

FOOD MANAGEMENT

• India runs one of the largest food management programs in the world. The Survey highlights that during the year 2021-22, the government had allocated 1052.77 lakh tonnes of food grains to States/UTs under the National Food Security Act, 2013, and other welfare schemes compared to 948.48 lakh tonnes in 2020-21.
• The government has further extended the coverage of food security through the additional provision of 5Kg food grains per person per month through the Pradhan Mantri Gareeb Kalyan Yojana (PMGKY). Under the scheme during 2021-22, the government had allocated 437.37 LMT of food grains and in 2020-21, 322 LMT of food grains free of cost to around 80 crore NFSA beneficiaries to ameliorate the hardships faced by the poor due to economic disruption caused by COVID-19 pandemic.
• The government had also approved the centrally sponsored pilot scheme ‘Fortification of Rice and its Distribution under PDS’ on 14.02.2019 for three years.
• The scheme is being implemented in 15 districts (1 district per State) and the government had distributed 3.38 LMT of fortified rice till December 2021 under the pilot scheme.
• During Kharif Marketing Season (KMS) 2020-21, 601.85 lakh metric tonnes (LMT) of rice have been procured against an estimated target of 642.58 LMT. In the KMS 2021-22, a total of 566.58 LMT of paddy (equivalent to 379.98 LMT rice) was procured as of 16.01.2022. During RMS 2021-22, 433.44 LMT of wheat was procured against 389.92 LMT procured during RMS 2020-21. Also, during the Kharif & Rabi Marketing Season 2020-21, approximately 11.87 LMT of coarse grains has been procured which is the highest in the last five years.

AGRICULTURAL RESEARCH AND EDUCATION

• Every rupee spent on agricultural research and development, yields much better returns. Increasing R&D spending on agriculture is, therefore, not only a vital necessity for ensuring food security but also important from the socio-economic point of view.
• Agricultural research and education are crucial for “development of environmentally sustainable global food system, ensuring food and nutrition security and increasing farm income by cost minimization and yield maximization” says the Survey. It points out that the National Agricultural Research System of India has produced significant results. The Indian Council of Agricultural Research (ICAR) during 2020 and 2021 notified/released a total of 731 new varieties/hybrids of field crops. The Department of Agriculture Research and Education (DARE) has developed 35 special trait varieties including bio-fortified and stress-tolerant varieties of field and horticulture crops during 2021-22.

CONCLUSION: The performance of the agriculture and the allied sector has been resilient to the COVID 19 shock. The sector grew at 3.6 percent in 2020-21 and improved to 3.9 percent in 2021- 22. However, as shown by the latest SAS report, the fragmentation of landholdings has led to alternate sources such as livestock, fishery, and wage labor becoming significantly important for an agricultural household. The increasing importance of allied sectors including animal husbandry, dairying, and fisheries in the growth and income of the farmers indicates that focus needs to shift more towards harnessing the potential of allied activities. There is also a need to improve the productivity of small and marginal farmers through the development and implementation of smallholding farm technologies.

THE CONTEXT: As economic activity started showing signs of picking up in the second year of the pandemic, the global economy faced the fresh challenge of rising global inflation. COVID-19 related stimulus spending in major economies along with pent-up demand boosting consumer spending pushed inflation up in many advanced and emerging economies. The surge in energy, food, non-food commodities, and input prices, supply constraints, disruption of global supply chains, and rising freight costs across the globe stoked global inflation during the year.

RETAIL INFLATION

The retail inflation, as measured by Consumer Price Index-Combined (CPI-C) moderates to 5.2% in 2021-22 (April-December) from 6.6% in the corresponding period of 2020-21. The Survey also says effective supply-side management kept prices of most essential commodities under control during the year.

DOMESTIC INFLATION

Compared to many Emerging Markets and Developing Economies (EMDEs) and advanced economies, the Survey finds that Consumer Price Index – Combined (CPI-C) inflation in India has remained range-bound in the recent months, touching 5.2% in December 2021. This was possible largely because of the proactive steps taken by the Government for effective supply management.

GLOBAL INFLATION

• In 2021, inflation picked up globally as economic activity revived with the opening up of economies. Inflation surged from 0.7 % in 2020 to around 3.1 % in 2021 in the advanced economies. For instance, inflation in the USA touched 7.0 % in December 2021, the highest since 1982. In the UK, it hit a nearly 30 years high of 5.4% in December 2021. Among emerging markets, Brazil witnessed inflation of 10.1% in December 2021 and Turkey also saw double-digit inflation touching 36.1%. Argentina has been experiencing inflation rates above 50% during the last 6 months.

RECENT TRENDS IN RETAIL INFLATION

• Retail inflation, well within the target limits of 2% to 6%, declined to 5.2% as against 6.6% during April – December 2020-21. The Survey states that this was largely attributed due to the easing of food inflation. Food inflation, as measured by the Consumer Food Price Index (CFPI), averaged at a low of 2.9% in 2021-22 (April-December) as against 9.1% in the corresponding period last year.
• A “refined” Core inflation has been constructed to exclude the volatile fuel items. The items of “petrol for vehicle” and “diesel for vehicle” and “lubricants & other fuels for vehicles”, in addition to “food and beverages” and “fuel and light” have been excluded from headline retail inflation. Since June 2020, refined core inflation has been much below the conventional core inflation, indicating the impact of inflation in fuel items in the “conventional” core inflation measure.

DRIVERS OF RETAIL INFLATION

• Major drivers of retail inflation have been the “miscellaneous” and “fuel & light” groups. Contribution of miscellaneous increased to 35% in 2021-22 (April – December) from 26.8% in 2020-21 (April – December). According to the Survey, within the miscellaneous group, a subgroup of “transport and Communication” contributed the most, followed by “health”. On the other hand, the contribution of food & beverages declined from 59% to 31.9%.

“FUEL & LIGHT” AND “TRANSPORT & COMMUNICATION”

• Inflation in the above two groups for the period of 2021-22 (April – December) has been largely due to the high international crude oil, petroleum product prices, and higher taxes.

MISCELLANEOUS

• Apart from transport & communication; “clothing and footwear” inflation also saw a rising trend during the current financial year possibly indicating higher production and input costs (including imported inputs) as well as due to revival of consumer demand.

FOOD AND BEVERAGES

• “Oils and fats” contributed around 60% of “food and beverages” inflation despite having a weight of only 7.8% in the group. The demand for edible oils is largely met through imports (60%) and fluctuations in international prices have been responsible for the high inflation in this subgroup. Though India’s imports of edible oils have been the lowest in the last six years, in terms of value, it has increased by 63.5% in 2020-21 as compared to 2019-20.
• Inflation in pulses declined to 2.4% in December 2021from 16.4% in 2020-21.With an increase in area sown for Kharif pulses to a new high of 142.4 lakh hectares (as of 1^stOctober 2021) pulses inflation is on a downward trajectory.

RURAL-URBAN INFLATION DIFFERENTIAL

• The gap between rural and urban CPI inflation declined in 2020 as compared to the higher gaps witnessed from July 2018 to December 2019. The factor largely responsible for divergence, for brief periods, is the component of food and beverages.

TRENDS IN WHOLESALE PRICE INDEX-BASED INFLATION

• WPI inflation has shown an increasing trend and has remained high during the current financial year touching 12.5% during 2021-22 (April – December). The Survey describes that part of the high inflation could be because of a low base in the previous year as WPI inflation has been benign during 2020-21.

• Crude petroleum & natural gas subgroup under WPI has witnessed very high inflation and stood at 55.7% in December 2021. Within manufactured food products, edible oils were a major contributor.

DIVERGENCE BETWEEN WPI AND CPI-BASED INFLATION RATES

• The Survey attributes a host of factors for the divergence witnessed between the two indices. Some of them, amongst others, include the variations due to base effect, the conceptual difference in their purpose and design, the price behavior of the different components of the two indices, and lagging demand pick up. The Survey states that with the gradual waning of base effect in WPI its divergence in WPI and CPI inflation is expected to narrow down.

HOUSING PRICES

• The residential housing sector was also affected by COVID-19 induced restrictions through both supply and demand channels.
• Amidst initial COVID-19 restrictions, not only did the construction of new houses slow down but the launch of new housing projects also got delayed. With the loss of income, uncertainty about future income, and stay-at-home orders, home buyers delayed their housing purchases.
• During the second COVID-19 wave (April-June, 2021), transactions of housing properties were once again impacted adversely, but not as much as it was seen during the first COVID-19 wave (April-June, 2020).

PHARMACEUTICAL PRICING

• Several steps have been taken to ensure the affordability of drugs and medical devices. Ceiling prices for 355 medicines and 886 formulations were fixed for medicines under the National List of Essential Medicines, 2015 until 31 December 2021.
• Retail prices for approximately 1798 formulations were fixed under DPCO, 2013 till 31 December 2021.
• During the recent years, exercising extraordinary powers under DPCO, 2013 in the public interest, prices of coronary stents and knee implants have also been fixed.
• NPPA also capped the trade margin up to 30 percent on selected 42 anti-cancer non-schedule medicine on a pilot basis in February 2019.

LONG TERM PERSPECTIVE

• Given the importance of supply-side factors in having a predominance in the determination of inflation in India, certain long-term policies are likely to help. This includes changing production patterns which would lead to diversification of production of crops, calibrated import policy to address uncertainty, and increased focus on transportation and storage infrastructure for perishable commodities.
• Better storage and supply chain management is required to ensure availability in lean season and reduced wastages of horticulture and other perishable essential commodities to reduce the seasonal spikes in prices for consumers, glut for the farmers in times of good harvests due to lack of marketing infrastructure, resulting in distress sales.
• Effective utilization of the Agriculture Infrastructure Fund for investment in viable projects for post-harvest management infrastructure for perishable commodities can help improve agriculture infrastructure in the country.
• Schemes like Operation Green and Kisan Rail need to be exploited further to protect the interests of the farmers as well as the consumers.

HIGHLIGHTS

• The average headline CPI-Combined inflation moderated to 5.2 percent in 2021-22 (April-December) from 6.6 percent in the corresponding period of 2020-21.
• The decline in retail inflation was led by the easing of food inflation.
• Food inflation averaged at a low of 2.9 percent in 2021-22 (April to December) as against 9.1 percent in the corresponding period last year.
• Effective supply-side management kept prices of most essential commodities under control during the year.
• Proactive measures were taken to contain the price rise in pulses and edible oils.
• Reduction in central excise and subsequent cuts in Value Added Tax by most States helped ease petrol and diesel prices.
• Wholesale inflation based on the Wholesale Price Index (WPI) rose to 12.5 percent during 2021-22 (April to December).
• This has been attributed to:
• Low base in the previous year,
• Pick-up in economic activity,
• Sharp increase in international prices of crude oil and other imported inputs, and
• High freight costs.
• Divergence between CPI-C and WPI Inflation:
• The divergence peaked to 9.6 percentage points in May 2020.
• However, this year there was a reversal in divergence with retail inflation falling below wholesale inflation by 8.0 percentage points in December 2021.
• This divergence can be explained by factors such as:
• Variations due to base effect,
• Difference in scope and coverage of the two indices,
• Price collections,
• Items covered,
• Difference in commodity weights, and
• WPI being more sensitive to cost-push inflation led by imported inputs.