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CURRENT AFFAIRS
OCTOBER 2014

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TABLE OF CONTENTS
POLITY ......................................................................................................................................................................................5
Government bills and legislations .......................................................................................................................................................5
Cleanliness campaign ...................................................................................................................................................................................................................... 5
New Bill for banning Child Labour ........................................................................................................................................................................................... 5
Rural Electrification in India and its woes ............................................................................................................................................................................ 6

Administrative Reforms ...........................................................................................................................................................................7

High speed internet to be introduced in all kerala panchayats .................................................................................................................................. 7
NJAC bill has not removed flaws of collegium System .................................................................................................................................................... 7
RtI weakened by neglect................................................................................................................................................................................................................ 7
Codification of Privileges proposed ......................................................................................................................................................................................... 8
Two thirds of prison inmates in india are undertrials .................................................................................................................................................... 8
Govt. cuts non PLan spending 10% .......................................................................................................................................................................................... 8

Miscellaneous................................................................................................................................................................................................9
Abolishing death penalty............................................................................................................................................................................................................... 9
Deaths due to stampedes .............................................................................................................................................................................................................. 9
MEA to oversee FOREIGN investment in states ...............................................................................................................................................................10
Encounters in india ........................................................................................................................................................................................................................10
Surrogacy related iSSUEs ............................................................................................................................................................................................................11

ECONOMY ............................................................................................................................................................................. 13
World Bank predicts 5.6 % growth ................................................................................................................................................. 13
Optimistic predictions about the near future of Indian economy ..................................................................................... 13
Risks and challenges to the economy.............................................................................................................................................. 13
Update on RBIs fourth Bi-Monthly Monetary Policy :............................................................................................................ 13
Deepakh Parekh Committee on Infrastructure submits its last report: ......................................................................... 14
Global Investment Facility launched: ............................................................................................................................................. 14
Japan Plus team formed to steer Japanese investment: ......................................................................................................... 14
Vodafone wins a major Transfer Pricing case : ......................................................................................................................... 15
Cooling off in Inflation:.......................................................................................................................................................................... 15
a. WPI ....................................................................................................................................................................................................................................................15
b. CPI ......................................................................................................................................................................................................................................................16

Arvind Subramanian appointed as new Chief Economic Advisor: .................................................................................... 16

Reforms in Direct Benefit Transfer for LPG:................................................................................................................................ 16
Setting up Asian Infrastructure Investment Bank : ................................................................................................................. 16
Channelizing Corporate funds into Governments Cleanliness efforts: ........................................................................... 17
India still a laggard in Ease of Doing Business Index: .......................................................................................................... 17
World Bank assessment on Indian economy: ............................................................................................................................. 17
IMF revises its outlook on India: ...................................................................................................................................................... 18
New Urea Investment Policy notified: ............................................................................................................................................ 18
A big reform in form of Diesel deregulation: .............................................................................................................................. 19
Lower IIP numbers for August disappoints : ............................................................................................................................... 19
DIPP constitutes think-tank to draft new IPR policy : ............................................................................................................ 20
Flipkart Big Billion Day Mega sales: Raising questions on Indian E-commerce:..................................................... 20
a. Predatory pricing : .....................................................................................................................................................................................................................20
b. FDI issues: ......................................................................................................................................................................................................................................21
c. Tax issues: ......................................................................................................................................................................................................................................21
d. Sourcing issues:...........................................................................................................................................................................................................................22

SOCIAL ISSUES..................................................................................................................................................................... 23
DecrimInalization of suicides ............................................................................................................................................................. 23
Corporates Come out in Support of Girl Sanitation ................................................................................................................. 23
Increased toilet coverage has had little impact ........................................................................................................................ 23
Women Related ......................................................................................................................................................................................... 24
Majority indian women engaged in unpaid housework...............................................................................................................................................24

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Controlling Dengue in India .......................................................................................................................................................................................................24

HEALTH ................................................................................................................................................................................................... 26
Reducing tobacco usage ....................................................................................................................................................................... 26
Tacklinge the menace of TB ................................................................................................................................................................ 26
Malnourishment Witnessed sharp decline in India.................................................................................................................. 27
Stock Out Of Vital Medicines ............................................................................................................................................................... 28
Risk of Ebola in India ............................................................................................................................................................................. 28
Rural Stint as a part of Medical Curriculum ............................................................................................................................... 29
ENVIRONMENT ................................................................................................................................................................... 30
Climate change a public health issue: Jairam............................................................................................................................. 30
India will be renewables superpower, says energy minister, Piyush Goyal .................................................................. 30
INDIA AND WORLD ........................................................................................................................................................... 31
India-USA ..................................................................................................................................................................................................... 31
Joint statement .................................................................................................................................................................................................................................31
US asked not to pressurise India to reject cancer drug license ................................................................................................................................31
Chinas reaction on Modis USA visit......................................................................................................................................................................................31

India-China ................................................................................................................................................................................................. 32
India signs up for Chinas Asian bank....................................................................................................................................................................................32
Beefing up the infrastructure along the border in Arunachal Pradesh ................................................................................................................32

India and Nepal ........................................................................................................................................................................................ 32

Landmark Energy Agreement ...................................................................................................................................................................................................32

India-Sri Lanka ......................................................................................................................................................................................... 33

Yal Devi Express ..............................................................................................................................................................................................................................33
Colombo allays Delhis concern over China........................................................................................................................................................................33
Fisherman issue ...............................................................................................................................................................................................................................33

India-Russia ................................................................................................................................................................................................ 33
BrahMos...............................................................................................................................................................................................................................................33

SAARC ............................................................................................................................................................................................................ 33
SAARC power grid...........................................................................................................................................................................................................................33
Common education agenda ........................................................................................................................................................................................................34

India-Pakistan ........................................................................................................................................................................................... 34
Kashmir issue ....................................................................................................................................................................................................................................34
Ceasefire violations ........................................................................................................................................................................................................................34
India offers to help Pakistan eradicate polio .....................................................................................................................................................................35

India-UN ....................................................................................................................................................................................................... 35
India contributes $1 million to UN womens body .........................................................................................................................................................35
Indian cop wins UNs International Female Police Peacekeeper Award..............................................................................................................35

India-UK ....................................................................................................................................................................................................... 36
Britain, Ireland inks visa deal to benefit Chinese, Indian travellers.......................................................................................................................36

India-Norway ............................................................................................................................................................................................. 36
India, Norway set to clinch accord on N-safety ................................................................................................................................................................36

India- Vietnam........................................................................................................................................................................................... 36
Indian diaspora......................................................................................................................................................................................... 36
Obama appoints Indian-American attorney to DoJ ........................................................................................................................................................36

Memorandum of Understanding (MoU) for cooperation in the field of oil and gas between India and
Mozambique ............................................................................................................................................................................................... 37
Ratification of the Nagoya-Kuala Lumpur supplementary protocol on liability and redress to the
Cartagena protocol on bio-safety by India .................................................................................................................................. 37
Tracing Indias Black Money- Only case-specific information can be disclosed: Switzerland ............................. 38
WORLD AFFAIRS ................................................................................................................................................................ 39
Israel Palestine conflict ..................................................................................................................................................................... 39
Gaza reconstruction conference in Cairo.............................................................................................................................................................................39
UN criticises Israel for settlement plans ..............................................................................................................................................................................39

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IS (Islamic state) ...................................................................................................................................................................................... 39

Turkish Parliament votes for military action against IS ..............................................................................................................................................39
Heavy fighting hits Kobani, a Kurdish Syrian town ........................................................................................................................................................39

Ukraine crisis ............................................................................................................................................................................................. 40

Fighting rages in Ukraine ............................................................................................................................................................................................................40
Moscow, Kiev clinch deal on gas supply...............................................................................................................................................................................40

China .............................................................................................................................................................................................................. 40
Dongfeng-31B ...................................................................................................................................................................................................................................40
China-Russia gas deal....................................................................................................................................................................................................................40

Hong Kong Talks ...................................................................................................................................................................................... 41

Nigerias truce is shaky ......................................................................................................................................................................... 41

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POLITY
GOVERNMENT BILLS AND LEGISLATIONS
CLEANLINESS CAMPAIGN
Prime Minister Narendra Modi launched a five-year Clean India campaign, or Swachh Bharat Mission, on
2nd October, by wielding the broom himself
The campaign will culminate on the 150th birth anniversary of Mahatma Gandhi in 2019.
As per estimates prepared by the Ministries of Urban Development and Rural Development, Rs. 2 lakh crores
will be spent on the Mission over the next five years
Besides invoking Mahatma Gandhi, the government has decided to rope in religious leaders to drive the
Mission

SOME OTHER IMPORTANT DETAILS

The Centre is hoping that the States will pick up 25 per cent of the tab and corporates will dole out
generously through their Corporate Social Responsibility (CSR) corpus for the national endeavour.
Other key components of the campaign include eradication of manual scavenging, solid waste management
and converting waste into wealth.
ANALYSIS

Surely, the Swachh Bharat Abhiyan has been successful as an event in increasing public awareness of the
importance of sanitation. The imagery of the Prime Minister taking time off to wield the broom in central
Delhi might be of some effect in some areas for some time. But if country was hoping for mass participation
in a cleanliness drive that would keep India perpetually clean, public policy must go far beyond symbolism.
If Indias villages and towns are to be dirt-free, what is required is not the involvement of each and every
citizen for two hours every week in the clean-up. While that would lend a Gandhian touch of personal
involvement, it would surely be a colossal waste of productive hours of skilled personnel
Efforts must be made to de-stigmatise the act of cleaning, and the participation of citizens in large numbers in
a mass cleaning exercise, even if as a one-off or annual event, will have a positive effect.
The government may not be able to do everything, but voluntarism cannot be a substitute for strengthening
civic infrastructure. For ensuring cleanliness and hygiene and improving solid waste management, Indias civic
bodies will need to be at the centre of the Clean India Campaign.
The Swachh Bharat Abhiyan will have to be a sustainable programme, and its success ought not to depend on
the hours each citizen puts in to sweep streets.

NEW BILL FOR BANNING CHILD LABOUR

The proposed amendments to the Act (Child Labour (Prohibition and Regulation) will for the first time ban
employment of children below 14 years in any occupation, bringing the law in consistency with the Right to
Children to Free and Compulsory Education Act 2009. The Bill prohibits employment of adolescents aged 1418 years in hazardous occupations.

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 The Bill will regulate conditions of work for adolescents, and of children working in audio-visual
entertainment industry. In 1996, the Supreme Court had prescribed a penalty of Rs. 20,000 from employers
and Rs. 5,000 from State government for every child worker rescued. This will now be introduced in law and
indexed to price rise
The 1986 law prohibits employing children only in certain occupations such as mines, work in hazardous
process and with inflammable substances or explosives.
Minors working in middle class homes as domestic workers and those employed at hotels, dhabas were
included as a category of child labourers only after an amendment in 2006.

RURAL ELECTRIFICATION IN INDIA AND ITS WOES

DEFINITION OF BEING ELECTRIFIED

A decade ago, a village was deemed electrified if it had a single light bulb connection.
Subsequently, the definition was upgraded requiring at least ten per cent of homes to be electrified including
all common or public areas such as schools and clinics.
IMPLICATION OF THE DEFINITION

Based on these definition, the flagship Central government programme Rajiv Gandhi Grameen Vidyutikaran
Yojana (RGGVY) electrified over 18,000 villages annually for several years, leaving out only some five per cent
remote and distant villages which were being targeted for off-grid (decentralised) electrification.
However, the 2011 Census showed that if we considered household-level data, only 55.3 per cent of rural
homes used electricity as the primary source for lighting.
The central government says that ensuring supply of power is the responsibility of the concerned State power
utility. RGGVY does not have any role to play in this regard. Concerned power utility may be approached for
the same.
PROBLEM OF LOAD SHEDDING

Load-shedding the bane of Indias power supply system is far worse in rural areas than metros or large
cities. There are regular reports in newspapers of 15 hours of load-shedding in some areas.
Until there is power supply available in villages, a household isnt meaningfully electrified, though it may have
a line laid out.
In theory, there is meant to be a schedule for load-shedding, but many areas also face unscheduled loadshedding. Rural areas face an additional challenge in the supply schedule due to the use of irrigation pump
sets, which are heavily subsidized and need three-phase power supply
Most States only give the so-called single-phase supply during the evening which is good for households but
not for most pump sets.
PANDIT DEEN DAYAL UADHYAYA FEEDER SEGREGATION PROGRAMME
GUJARAT EXAMPLE A FEASIBILITY?

There is a proposed scheme of feeder segregation in rural areas to separate households from pump set
supply, allowing them uninterrupted supply. This was originally implemented successfully in Gujarat, and now
by the national-level Pandit Deendayal Upadhyaya Feeder Segregation programme.
However, there are a few reasons to be cautious of taking the practice to the national level, since other
States have tried similar programmes with varying levels of success. State-to-State variations were recently
documented in a major World Bank report apart from other studies. Feeder segregation will only help the
evening peak to the extent of avoiding unwanted pump set loads on single-phase supply through phase
converters. This is only a small fraction since most pumps are already segregated as per phase supply. Most
States have a large deficit, with the exception of Gujarat.
Also, the consumer profile in Gujarat is different from many other States, amenable to rural non-pump set
loads. Lastly, any scheme requires political will for enforcement and consumer trust in the utilities or the
government, which again varies from State to State.
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WAY AHEAD
Feeder segregation should be taken up in parts, applying viability analysis to choose deployments instead of
blanket roll-outs. Thinking of the future, instead of just differentiation of households from pump sets
which can be done in the most part in phases it would be better if we think of the next level of
transformation and put in place smart meters to differentiate one consumer from another. With such a
scheme in place, not only can we give a minimum threshold, but also a lifeline supply of electricity to all
consumers, including during shortfall.
We can also easily give socially important users such as schools and clinics 24*7 power supply. This is before
the many other benefits of a smart grid.
The earlier view of electricity as a commodity at a fixed price is changing, as we now recognise that not all
units of power are equal the time of day, location, and even source (fuel) impact its cost, price and value.
The most valuable energy for a household is the first unit of power, invariably used for lighting and charging a
mobile phone. Thus, we need meaningful electricity service, not merely a wire connection to every
household.

ADMINISTRATIVE REFORMS
HIGH SPEED INTERNET TO BE INTRODUCED IN ALL KERALA PANCHAYATS
Kerala would become the first State to have high-speed Internet connecting all the panchayats in the State by
March next year
Of the 800 km of cable needed for the project, 150 km had already been laid.
The panchayats would provide office space for setting up the broadband connection and facilitate laying of
cable. Each panchayat would have to set apart 50 sq ft of office space for the getting the connectivity.

NJAC BILL HAS NOT REMOVED FLAWS OF COLLEGIUM SYSTEM

Law Commission Chairman Justice A.P. Shah has criticised the proposed law in its present form as
disquieting. According to Justice Shah it may perpetuate a culture of trade-offs and sycophancy present in
the collegium system of appointment.
As per him Constitutional Courts of this country cannot be run like closed country clubs. Pointing to
controversies like that of Justice P.D. Dinakaran, he said this opaque mode of functioning by the collegium
has been one of its major failings.
Since 1993, the Supreme Court has been packed with Chief Justices of High Courts elevated by the
collegium merely due to their seniority, and without looking at merit and other objective qualifications. This,
has led to a decline in the standard of judges.
He pointed to how non-judicial members in the NJAC can veto a candidate irrespective of the views of three
judicial members, including the Chief Justice of India.
*For a background of NJAC read VisionIas current affairs of previous months.

RTI WEAKENED BY NEGLECT

An independent assessment of the functioning of the Right to Information Act 2005 in the last two years in
five States has found alarmingly high levels of pendency of appeals and several instances of violations of
mandatory norms of pro-active disclosure under Section 4 of the RTI Act.
Report pointed out that while previously three attempts to dilute the law by the central government through
amendments in 2006, 2008, 2013, had failed following public outcry; the Act was now being weakened
through neglect of important appointments and lack of provisions of resources at State level.
The Central Chief Information Commission is headless since no chief has been appointed since August when
the post fell vacant. This will increase the already massive pendency of over 25,000 cases. The delay in this
appointment raises issues about the legal validity of orders passed in the interim.
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CODIFICATION OF PRIVILEGES PROPOSED

The All India Whips Conference has called upon Parliament and the legislatures to consider codification of
privileges to remove the uncertainty surrounding them and address the anxieties of the people and the press.
The Union Minister for Parliamentary Affairs would form a panel from members attending the conference to
codify privileges and then pursue that with the presiding officers to be adopted by the respective Houses.
The meeting called for ensuring discipline and decorum in the functioning of Parliament and legislatures to
live up to the expectations of the people.
It emphasised that the legislature, the executive and the judiciary had clear-cut roles to play, must respect
one other and should not encroach upon each others domain.
The meeting recommended the number of working days a year to be fixed for legislatures.
Expressing concern over the growing indiscipline and lack of decorum in the Houses, the meeting
recommended that some sort of code was considered desirable for maintaining discipline and decorum in the
House. It went on to recommend a code of conduct for members, which should be adopted on a consensus.

TWO THIRDS OF PRISON INMATES IN INDIA ARE UNDERTRIALS

As per the latest data, two of every three persons incarcerated in India have not yet been convicted of any
crime, and Muslims are over-represented among such undertrials
The number of convicts grew by 1.4 per cent from 2012 to 2013, but the number of undertrials shot up by 9.3
per cent during the period.
Men make up 96 per cent of all prison inmates. Nearly 2,000 children of women inmates live behind bars, 80
per cent of those women being undertrials.
A sharp increase in the number of undertrials charged with crimes against women contributes to the rise in
the number of all undertrials. The number of those incarcerated on charges of rape rose by over 30 per cent
from 2012 to 2013, and the number facing charges of molestation grew by over 50 per cent. The number of
men convicted of rape rose dramatically too, by 16 per cent the biggest increase among major sections of
the Indian Penal Code.
Undertrials are younger than convicts nearly half are under the age of 30 and over 70 per cent have not
completed school. Muslims form 21 per cent of them. On the other hand, 17 per cent of those convicted are
Muslims.
STATEWISE STATISTICS
Among the 2.8 lakh undertrials, over 3,000 have been behind bars for over five years. Between them, Uttar
Pradesh and Bihar are home to 1,500 of those undertrials. Most undertrials 60 per cent of them have,
however, been behind bars for less than six months.
While most States have a little over twice as many undertrials as convicts, Bihar has a staggering six times as
many
ANALYSIS

These numbers definitely point to a failure of the delivery of justice, but it also appears that the system is
unequally unjust
The disproportionate presence of members of the Scheduled Castes and Scheduled Tribes and Muslims
among undertrials points not simply to a technical breakdown but also to the increased vulnerability of these
groups, and probably bias.

GOVT. CUTS NON PLAN SPENDING 10%

The Finance Ministry has ordered a mandatory 10 per cent cut in the Centres non-Plan expenditure for 201415.
The cut does not cover interest payment, repayment of debt, defence capital, salaries, pension or Finance
Commission grants to States
Subsidies will face the brunt of the cuts.
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 The objective of the fiscal prudence and economy measures was the need to rationalise expenditure and
optimise available resources.
The Government revived its standard measures, including curbs on conferences abroad or in five-star hotels,
purchase of vehicles and staff cars, travel curbs on flying first class and ban on new posts.

MISCELLANEOUS
ABOLISHING DEATH PENALTY
In an increasing number of countries around the world, capital punishment now belongs to history. Among
the 192 countries recognised by the United Nations, 140 have abolished the death penalty.
Three times, the General Assembly of the United Nations has passed resolutions by powerful majorities
calling for a universal moratorium on the death penalty, pending its full abolition. Along with the United
States, however, a number of countries in Asia (including China, India and Japan), the Middle East and the
Arab World are still retentionist although the frequency of use of the death penalty varies widely.
INTERNATIONAL EFFORTS

The European Union has made the abolition of capital punishment one of the preconditions for membership.
The European Court of Human Rights in Strasbourg forbids extradition by the Member States of the Council
of Europe of anyone that could be sentenced to death in a country that has retained capital punishment.
Another significant milestone was the Rome Treaty creating the International Criminal Court which envisages
life imprisonment for crimes against humanity.
In June 2013, Madrid hosted the 5th Congress against the death penalty bringing together government and
civil society representatives, academia, lawyers and individuals striving for abolition.
ARGUMENTS AGAINST DEATH PENALTY

The case for abolition is based on the following cumulative and trenchant arguments, each one of which on
its own should be sufficient:
Two wrongs do not compensate for each other under any higher moral code;
The right to life is unconditional and universal;
The fear of capital punishment (e.g. for rape) may cause a criminal to kill his victim, thus removing a witness;
A miscarriage of justice in wrongfully convicting and sentencing a person to death cannot be revoked;
There is no statistical link between the death penalty and the reduction of criminality;
There are other and better ways to deter serious crimes

DEATHS DUE TO STAMPEDES

The notoriety that India seems to have acquired over the decades for deadly stampedes, has once again been
brought into focus. Tragedy after deadly tragedy at such venues, mostly at religious events, has become a
continuing story.
The loss of 33 lives in the latest stampede during Dasara ceremonies at Patnas Gandhi Maidan is but one
more in the cavalcade.
It was less than two years ago, during Chhath Puja celebrations in another part of Patna, that 21 people were
killed in a stampede after a makeshift bridge collapsed.
And it was a year ago, in October 2013, that a stampede in Madhya Pradesh left more than 110 people dead.
ANALYSIS

Given that it was an annual event that typically attracted lakhs of people, the lack of preparedness on the
part of the administrative machinery is prima facie clear.
It should be a no-brainer to state the importance of efficient risk-mapping, crowd management and foolproof security arrangements wherever people congregate in large numbers in a country of a billion-plus
people.
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 Given the frequency of and the toll from such incidents, the Central government should advise States to put
in place a mandatory security protocol to handle all large-scale crowd situations.
Disaster preparedness has in recent years emerged as an area of priority, but in the case of known danger
zones there does not seem to be a matching realisation that security arrangements to pre-empt tragedies are
essential.
Managing and regulating large crowds and avoiding overcrowding should be key elements of the strategy.
Effective communication and security systems should serve to ensure that panic does not lead to
uncontrolled crowd surges.
In the process of facilitating VVIP movement, the safety of the common person should not get short shrift.
The nation cannot afford to go from one tragedy to another with lessons not learnt, and accountability not
fixed.

MEA TO OVERSEE FOREIGN INVESTMENT IN STATES

Aiming to streamline foreign infrastructure investment, the government has announced a new division in the
Ministry of External Affairs (MEA), appointing a joint secretary for Centre-State relations.
The new post will increase engagement between the MEA and State governments to coordinate State
delegations visiting abroad, passport issues and political clearances, as well as to set up a database of Statelevel tie-ups and work on sister cities.
With more foreign dignitaries expressing their desire to visit cities other than Delhi, the special section will
also coordinate visits to Tier Two cities. However, the new division will not deal with policy disagreements of
the kind seen between the Centre and Tamil Nadu over Sri Lanka and with West Bengal over the Teesta
accord with Bangladesh.

ENCOUNTERS IN INDIA
ISSUES RELATED TO ENCOUNTERS

Making impartial investigations into killings in police encounters constitutes an area of governance that is
quite delicate and controversial. The police version often gains traction in the media, and support from the
ruling party and the administration often helps a cover-up. On the other hand, the gunning down of dreaded
criminals or extremists in genuine exchanges of fire may also be questioned by interested parties.
SUPREME COURT RULING A POSITIVE STEP

The recent Supreme Court verdict laying down detailed guidelines on how the police and administration
should respond to a death in an alleged encounter, seeks to put in place a proper mechanism that will set at
rest all doubt and speculation about the issue of encounters in India
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 The first requirement being an independent and impartial investigation, the court has now laid down a
standard procedure, which will operate in addition to existing provisions in the Code of Criminal Procedure
(CrPC) relating to unnatural deaths. Section 176 of the CrPC already provides for an enquiry by a judicial
magistrate in such cases.
Other guidelines cover investigations by the CID or a police station from another station-house, establishing
the victims identity, preservation of evidence on the spot, preparation of a rough sketch of the scene,
recovery of fingerprints, videography of the autopsy, and informing the next of kin of the deceased at the
earliest.
Holding the magisterial enquiry and keeping the National Human Rights Commission informed are other
requirements.
As a general rule, the court has asked the State governments to send a report once in six months (January 15
and July 15 every year) on all incidents of death in police firing, in a prescribed format.
BUT CHALLENGES GALORE

Ending impunity and ensuring impartiality in probes subsequent to death at the hands of the police are easier
said than achieved in some conflict-hit regions. As the Supreme Court itself has pointed out, one cannot be
oblivious to the fact that the police in India have to perform a delicate task, especially wherever extremism
and organised crime have taken strong roots.
However, it has also noted that even such criminals must be dealt with by the police in an efficient and
effective manner and brought to justice by following the rule of law. The Courts guidelines are by and large
practicable, but it requires political will and an alert civil society to ensure their implementation.
A scientific, well-documented investigation that results in a decisive finding, which the law now demands, is
not beyond the capability of a modern police force.

SURROGACY RELATED ISSUES

With a range of alternative medical solutions to childlessness becoming available, surrogacy has emerged as
one route for many couples. While some countries have banned the practice, commercial gestational
surrogacy, in which a woman is paid to have a baby to whom she has no genetic link, has caught on in
countries such as Mexico and India
REASONS FOR GROWTH IN INDIA

Relatively inexpensive medical facilities, know-how in reproductive technology, and the availability of
women, largely from poor socio-economic situations and who are willing to take up the task, have aided the
growth. Today there are thousands of clinics in India that offer such services.
GENERAL ISSUES RELATED TO SURROGACY

From what was generally confined to close relatives or friends in altruistic mode, the network has become
extended, with payment of money to surrogate mothers becoming the norm.
Services are even being advertised. Such commercialisation of motherhood has raised ethical, philosophical,
and social questions and raised fears of the exploitation of women as baby-producers, and the possibility of
selective breeding.
In several instances, complications have arisen regarding the interests and rights of the surrogate mother,
child, and intending parents. Yet, there are no clear legal provisions in place yet.
ISSUES RELATED TO FOREIGN NATIONALS

Letting single parents and foreign nationals to have children through surrogates in India is one issue in focus.
The question relating to the citizenship of children born through an Indian surrogate and claimed by a foreign
couple is one outstanding issue.
Unscrupulous or mismanaged agencies could wreak havoc with lives. Many surrogacy agencies claim they are
offering a legitimate service but in truth they operate in a grey area. The absence of appropriate legal
provisions to ensure that surrogate mothers, who often enter into loosely drafted agreements with
commissioning parents, do not become vulnerable is a serious issue.
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 Right now, the surrogate mother could find herself with a child she did not plan for, should the clients change
their mind.
On the other hand, the big worry of the intending parents would be that the baby may not be handed over to
them
The view to disallow foreign nationals stems from the concern over citizenship rights of children born to
Indian surrogate mothers as several countries have banned surrogacy and do not recognize the children born
through assisted means as their citizens.
SUPREME COURT DIRECTIVE

In September, the Supreme Court had asked the government to clarify its stand on the citizenship of children
born via an Indian surrogate mother in India, but whose biological mother is a foreign national.
Under the Constitution, a child born here from an Indian surrogate mother is entitled to Indian citizenship,
but what happens if the biological mother is a foreign citizen and the child applies for citizenship of that
country is the issue that the court examined.
VIEWS AGAINST DENYING THE RIGHT TO FOREIGN NATIONALS

The view among experts looking into the new Assisted Reproductive Technologies (Regulation) Bill 2014 that
single parents and foreign nationals should not be allowed to have children through surrogates in India has
come in for criticism.
As per them the government cannot deprive single men or women of the right to having children through
surrogacy. There is a need to change the language of the legislation and surrogacy should be allowed to
persons not only couples
Petitioner who challenged the single parent restrictions on surrogacy, said the ban would be untenable as the
law permitted single parents and foreign nationals to adopt under the Juvenile Justice Act and any contrary
move might not be permissible under the Fundamental Rights given to all persons.
Any restriction on foreign parent, single or couple, may be questioned as foreigners, irrespective of marital
status, are allowed inter-country adoptions under Indian law. The Supreme Court allows religion and genderfree secular adoptions. Even transgenders will have rights. A restrictive law controlling foreign parent
surrogacy, like adoptions, may be the better legal option, rather than banning it altogether. A right to
reproductive autonomy as part of Right to Life under Article 21 is available even to foreigners as persons
and cannot be unreasonably curtailed.

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ECONOMY
WORLD BANK PREDICTS 5.6 % GROWTH
A World Bank report, released recently, said that India's GDP is likely to expand at 5.6 % this fiscal as reforms
gain momentum and the growth is expected to accelerate as proposed measures such as the Goods and Services
Tax (GST) will give a boost to the manufacturing sector. In the following years, the gross domestic product (GDP)
growth is likely to rise further to 6.4 per cent and 7 per cent in 2015-16 and 2016-17, respectively.

OPTIMISTIC PREDICTIONS ABOUT THE NEAR FUTURE OF INDIAN ECONOMY

India's growth is likely to accelerate towards its high long-run potential and implementation of the GST
as well as dismantling of inter-State check posts can significantly improve the global competitiveness of
Indian manufacturing firms. Implementing the GST will transform India into a common market, eliminate
inefficient tax cascading, and go a long way in boosting the manufacturing sector.
The transformational impact of reform, particularly if enhanced by a systematic dismantling of interState check posts, can dramatically boost competitiveness and help offset both domestic and external
risks to the outlook.
With economic reforms gaining momentum, long-term prospects for growth remain bright for India. To
realise its full potential, India needs to continue making progress on its domestic reforms agenda and
encourage investments. The government's efforts at improving the performance of the manufacturing
sector will lead to more jobs for young Indian women and men.
Improved growth prospects in the U.S. will support India s merchandise and services exports, while
stronger remittance inflows and declining oil prices are expected to support domestic demand.

RISKS AND CHALLENGES TO THE ECONOMY

The projections may face risks from external shocks, such as financial market disruptions on the back of
monetary policy changes in high income countries, slower global growth, higher oil prices, and adverse
investor sentiment on geo-political tensions in the Middle East and Eastern Europe.
In the domestic front energy supply, fiscal pressures from weak revenue collection in short term can
pose challenges. However, risks could be mitigated to a large extent by focusing on reforms that help the
manufacturing sector.

UPDATE ON RBIS FOURTH BI-MONTHLY MONETARY POLICY :

The fourth Bi-Monthly Monetary Policy statement was announced by Reserve Bank of India (RBI) in September.
It kept the key interest rates unchanged despite wider industry demand to cut the same to give boost to the
economy. However, the RBI cited high WPI rates as the primary reason to keep the key rates unchanged. RBI
might keep rates unchanged for the greater part of 2015. While the RBI is fairly confident of reaching its target of
8 per cent retail inflation by January, 2015, it is far less certain about its medium-term target of 6 per cent by
January, 2016. Thus, in order to continue on track to reach the inflation target, rate cuts are not expected in near
future. It made following changes in the key policy parameters:

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The Repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent.
The Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time
liabilities (NDTL).
Reduced the Statutory Liquidity Ratio under the Export Credit Refinance (ECR) facility from 32 per cent
of eligible export credit outstanding to 15 per cent with effect from 10 October 2014.
Continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo
rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking
system through auctions.
Continue with daily one-day term repos and reverse repos to smooth liquidity
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The reverse repo rate under the LAF remains unchanged at 7.0 per cent and the marginal standing
facility (MSF) rate and the Bank Rate at 9.0 per cent.

DEEPAKH PAREKH COMMITTEE ON INFRASTRUCTURE SUBMITS ITS LAST

REPORT:
Deepakh Parekh headed Committee on Infrastructure submitted its last report in October. The last report deals
broadly with power infrastructure in the country. It recommends on the issue of competitiveness, power
production, rationalization of tariff system and improving financial health of distribution companies. The salient
features of this report are:

The report recommends establishing a PPP model for power distribution, starting first with the cities
It asks Central government to provide for viability gap funding for public sector distribution companies.
In order to increase the competitiveness of the power market it recommends earmarking 15% of power
generation of the central PSUs for open access customers .It will help reduce reliance of open access
customers on state controlled power distribution companies. It will thus help in attracting the open
access clientele. This is also expected to increase investment in the electricity sector.
A graded tariff system (based on the paying capacity of the customers) to be set up. It further
recommends moving high income households, commercial consumer and industries to market based
pricing. The consumers subject to market based pricing may be allowed to choose from different
suppliers of electricity. Low income consumers, however, should be subject to low tariffs and their
requirements should be met with supplies from depreciated power station
It comments that privatization of coal mining wherein Coal India or its arms/subsidiaries can retain
ownership of mines can go a long way in improving net power production in the country.
It suggests GOI to constitute a High level task force headed by a deputy governor of RBI to decide on
measures to restore the health of power projects facing financial trouble due to scarcity of fuel

GLOBAL INVESTMENT FACILITY LAUNCHED:

WB has launched a Global Investment Facility (GIF).It aims to fulfill the infrastructure needs of emerging
and developing economies.
It will identify projects that are financially viable and channel funds towards them.
The GIF will collaborate with other international and multilateral agencies which provide loans and
financial assistance to countries across the globe. It will also help these agencies with its expertise in
financing, supervising and implementing projects.
GIF could provide assistance in ensuring that all the regulatory, environmental and social safeguards are
met with while investing in large scale infrastructure projects.
GIF will also work with private entities like asset management companies, private equity firms, pensions
and insurance funds and commercial banks to tap into multiple sources of funding.
It will also try to promote sustainable development by focusing on climate friendly infrastructure and
those that boost trade.

JAPAN PLUS TEAM FORMED TO STEER JAPANESE INVESTMENT:

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Japan Plus management will help to manage the promised $35billion by Japan under various
agreements and initiatives agreed to by India and Japan during PM Modis visit to Japan.
The amount is proposed to be invested over the next 5 years via PPP and overseas development
assistance.
The team has been set up by DIPP (Department Of Industrial Policy and Promotion) and is operational
since October 8. It consists of government officials from both countries
The team is tasked with providing assistance with respect to initiating, attracting, facilitating and fasttracking of Japanese investments in India. The team will be responsible for all areas
of investment promotion, research, outreach and issues post investment. It will also help identify areas
for Indo-Japan collaboration and viable projects for Japanese investment.
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Japan is the fourth largest foreign investor in India. It contributes to approximately 8% of Indias total FDI
inflows.

VODAFONE WINS A MAJOR TRANSFER PRICING CASE :

Vodafone Group Plc has had a major judicial victory, with Bombay HC ruling in its favor in a INR 3,200
crore transfer pricing dispute.
The income tax department had issued a show cause notice to Vodafone on in January, asking the
company to pay Rs 3,200 crore as transfer pricing adjustment. The department said the shares issued to
Vodafone's parent company had been undervalued.
However, the Court stated that there is no taxable income coming from issuance of shares.
The case was a fallout of an earlier transfer-pricing order that sought to add Rs 8,500 crore to the
taxable income of the company from the sale of its BPO unit to an offshore entity. The
Vodafone India Services Pvt. Ltd. Was involved in a case where the Income Tax department had accused
the company of under-pricing the shares in a rights issue to the parent firm for fiscal 2009-2010 and had
issued a show-cause notice to Vodafone India in January.
Transfer pricing refers to the practice of arm's length pricing for transactions between group
companies based in different countries to ensure that a fair price-- one that would have been charged
to an unrelated party-- is levied.
Funding a subsidiary through the share purchase route is a common practice among multinational
corporations (MNCs). The MNCs typically view this as a capital transaction and out of the transferpricing net. The I-T department, however, disputes this claim.
The judgment correctly addresses the question of applicability of transfer pricing law to share issuance
and has thwarted the blatant attempt of tax authorities to tax hypothetical income.
The verdict endorses a unanimous view that the income tax authority has no case to defend the transfer
pricing adjustment due to undervaluation of share prices. It goes to support the view that income should
be generated in the first place to lead to such provisions. It also ensures that secondary adjustment
proposed by the tax authorities by re-characterization of premium as loan is not valid.
It is important, as it has wide-scale repercussions on international firms involved in similar tax disputes in
India. Even, many Indian companies are contesting such disputes.
The verdict at large will serve as a major boost to the foreign investor sentiment and result in higher FDI
for India in future.

COOLING OFF IN INFLATION:

There was a general cooling in inflation for the month of the September with both the benchmark measures,
WPI & CPI falling:

A. WPI

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Provisional estimate for WPI for September 2014 came out to be at 2.38%.This is a five year low.
The decline is attributed to decline in food and fuel prices.
The 2.38% inflation rate is the lowest since October 2009. Wholesale price inflation stood at 3.74% in
August and 7.05% in September 2013. Inflation in manufactured products and; fuel and power segment
stood at 3.54% and 4.54% respectively in August 2014
Food inflation has fallen to nearly two and a half year low of 3.52%. Inflation in vegetables has fallen to
14.98%. Inflation in milk, eggs, meat and fish have showed a market decline. The food basket has been
on a declining trend since May itself. However, in September, the prices of fruits and potatoes rose.
Inflation in manufactured products fell to 2.84%. Overall WPI inflation has been declining for the fourth
straight month.

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B. CPI

Inflation cooled for the month of September 2014, with CPI standing at 6.46 percent as compared to the
7.3 percent in August 2014. The CPI inflation data was released by the Ministry of Statistics and
Programme Implementation .
This is a second consecutive fall, primarily due to lower food and fuel costs.
This fall is the lowest since the new series of Consumer Price Index was released in January 2012.
The retail inflation is 6.34 percent in urban areas and 6.68 percent in rural areas in September in 2014.

Even though there has been a cooling off in inflation RBI is expected to maintain its key interest rate at the same
level. It is primarily because of its long term targets on inflation. The RBI primarily factors in the CPI (Consumer
Price Index) rates while determining policy The RBI is expected to reduce the CPI inflation to 8 percent by
January 2015 and to 6 percent by January 2016.The target is expected to be achieved if the current downward
inflation trends maintain.

ARVIND SUBRAMANIAN APPOINTED AS NEW CHIEF ECONOMIC ADVISOR:

Renowned economist Arvind Subramanian has been appointed the Chief Economic Advisor (CEA). He will
serve the post for the next three years.
The CEA is the economic advisor to the Government of India, and works directly under the Ministry of
Finance.
The CEA primary role is to help prepare next fiscals budget. Accordingly, the new CEA has identified two
areas of focus for the Indian economy, namely, maintaining macro-economic stability and creating
conditions conducive for rapid investment and growth.
Arvind Subramanian's core competence in areas like economic growth, international trade and
intellectual property rights will play major factor in his role as CEA.
The CEA is the ex-officio cadre controlling authority of the IES (Indian Economic Service).
The CEA enjoys rank and pay equivalent to that of a Secretary to Government of India.

REFORMs IN DIRECT BENEFIT TRANSFER FOR LPG:

Some major reforms have been approved in Direct Benefits Transfer for LPG by the Union Cabinet. The scheme is
set to be launched with these modification:

Government has decided to keep the subsidy amount to be given per domestic subsidized LPG cylinder
fixed.
In future the cash subsidies can be received by linking the Aadhaar number with LPG connection and
having a bank account as the primary option.
The future beneficiaries can also receive the cash subsidies by directly linking their LPG connection with
their bank account, and may or may not include Aadhaar as the secondary option.
However, the government has clarified that in consonance with SC ruling Aadhar number will not be
made compulsory to avail benefits.
Any bank account opened under newly introduced Jan Dhan Yojana can also be linked with the LPG
connection .
It is proposed that the modified scheme will be launched in 54 districts from November 15, 2014 and in
the rest of the country from January 1, 2015. It will also be implemented in mission mode between 10
November and 1 January 2015

SETTING UP ASIAN INFRASTRUCTURE INVESTMENT BANK :

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Asian Infrastructure Investment Bank is set to become reality with 21 countries including India signing an
agreement for the same.
AIIB along with BRICS bank is being pushed by China in its quest for balance of power with the WB, IMF
and ADB all being controlled/dominated by the US, EU and Japan respectively.
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According to the agreement, the authorized capital of AIIB is US $100 bn and the initial subscribed
capital is expected to be around US $50 bn.
Headquarters of the AIIB will be at Beijing, and the bank is expected to be operational in 2015.
The 21 members of the AIIB are China, India, Mongolia, Nepal, Oman, Qatar, Sri
Lanka, Thailand, Malaysia, Singapore,
Uzbekistan,
Vietnam,
Philippines, Pakistan, Bangladesh, Brunei, Cambodia, Kazakhstan, Kuwait, Laos, and Myanmar
Three countries conspicuous by their absence are Australia , Indonesia and South Korea.
China has wanted Indias participation with the proposal being discussed on sidelines of various summit
level meets.
The new bank is expected to function as a rich resource base for capital for infrastructure financing, and
thereby provide an impetus to regional development by playing a complementary role to multilateral
agencies such as the ADB and IMF.
A formula based on GDP and PPP is expected to be used to decide on voting rights of the different
countries. India is expected to be the second largest share holder of AIIB after China.

CHANNELIZING CORPORATE FUNDS INTO GOVERNMENTS CLEANLINESS EFFORTS:

In a bid to boost its efforts at cleanliness and sanitation , Government has decided to allow the
companies to account contributions made to Swach Bharat Kosh (SBK) and Clean Ganga Fund (CGF) ,
under compulsory CSR spending mandated by the Companies Act. The contributions will count as being
made for social welfare work.
Ministry of Corporate Affairs (MCA) amended Schedule VII of the Companies Act 2013 in order to
reflect the above contributions. Now, donations to Swach Bharat Kosh(SBK) will fall under 'activities
for improving sanitation' whereas donations towards Clean Ganga Fund will qualify as an 'activity for
conservation of natural resources and maintaining the quality of water'.
Schedule VII of Companies Act, 2013, lists the activities and endeavors that can count as CSR.
SBK was set up to attract CSR funds from the corporate sector and contributions from individuals and
philanthropists. The funds accumulated in the SBK will be utilized to achieve the objective of
Clean India or Swachh Bharat by 2019 through Swachh Bharat Mission.
The CGF was constituted to fund activities to clean and conserve the river, Ganga. The CGF also accepts
voluntary contributions from NRIs and PIOs towards the CGF. It is headed by Finance Minister.

INDIA STILL A LAGGARD IN EASE OF DOING BUSINESS INDEX:

World Bank has released its recent report titled, Doing Business 2015: Going Beyond Efficiency. This is flagship
report of World Bank measuring ease of doing business across various countries. The report seeks to measure
the regulations that enhance business activity and those that restrict it. The report quantifies indicators on
business regulations and the protection of property rights and then compares it across 189 economies and over
different time periods. This is 12th such report , which points out that :

India dropped two places to rank 142nd in the Ease of Doing Business.
Indias points score improved in six out of 10 criteria, remained unchanged on three criteria, and fell in
the ease of paying taxes criterion. The countrys overall score increased to 53.97 from 52.78 a year ago,
even as the ranking fell.
India improved its performance in the newly introduced category of protecting minority investors.
However, India was top reformer in South Asia having undertaken 20 reformative measures.

WORLD BANK ASSESSMENT ON INDIAN ECONOMY:

India Development Update, a bi-annual report by World Bank, has projected Indian economy to grow at 5.6
percent in the current FY 2014-15 , 6.4 percent in FY 2015-16 and 7 percent in FY 2016-17.The World Bank has
emphasized on continuing domestic reforms and encouraging investments so as to achieve higher growth rates.
In the report World Bank has pointed out:
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Growth is expected to accelerate as proposed measures such as the Goods and Service tax will give a
boost to the manufacturing sector. Implementing the Goods and Services Tax (GST) will help transform
India into a common market, eliminate inefficient tax cascading, and go a long way in boosting the
manufacturing sector.
The report states that the rebounding of growth in the economy has been mainly due to a strong
industrial recovery. Other economic indicators have also improved with increased capital flows,
moderation of inflation, stabilization of the exchange rate and also growing investor confidence.
Domestic demand is also expected to increase due to declining crude oil prices
The report points out that Indias favorable demographics, relatively high savings, recent policies and
efforts to improve skills and education, and domestic market integration makes longer term growth
potential of India very high.
Another factor favoring the growth prospects of India are improving economic conditions in US, which
will, in turn, lead to increased merchandise and services exports from India to USA and stronger
remittance inflows
The Update points out the external risks to the economy such as financial market disruptions on the
back of monetary policy changes in high income countries, slower global growth, higher oil prices, and
adverse investor sentiment due to geo-political tensions in the Middle East and Eastern Europe. The
possible sources of risk from internal challenges are stable energy supply and fiscal pressures from weak
revenue collection in the short term.
Taking various required steps to boost manufacturing can help to mitigate the above pointed out risks.

IMF REVISES ITS OUTLOOK ON INDIA:

IMF has released its latest World Economic Outlook. In this report, IMF has revised Indias 2014 GDP growth
projection marginally upwards to 5.6% from its July forecast of 5.4%. It has further pointed out that :

There has been upward revision in confidence in Indian economy. This provides Indian government an
opportunity to embark on much-needed structural reforms.
The report said growth in India is likely to increase in the remaining period of 2014 as well as in the
entire 2015 because exports and investment will continue to pick up and more than offset the effect of
an unfavorable monsoon on agricultural growth earlier in the year.
However, it has left its projection for Indias 2015 GDP growth unchanged at 6.4%.
World Bank has pointed out that India should ensure an improvement in investment conditions, remove
infrastructure bottlenecks in the power sector. According to IMF, infrastructure bottlenecks in India are
not just a medium-term worry but remain a constraint even on near-term growth.
In order to raise competitiveness and productivity, India must implement reforms in education sector,
labour market , and product markets.
IMF, for the third time in 2014, has slashed its projections for global economic growth. The IMF WEO
report projected world output to grow at 3.3% this year (0.1% down from its July WEO update). It has
forecast the world output growth in 2015 at 3.8% (a 0.2% cut from its July forecast).

NEW UREA INVESTMENT POLICY NOTIFIED:

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The fertilizer ministry has notified new Urea Investment Policy for setting up and expansion of urea
plants.
In the first policy statement in February 2014 , there was a provision of guaranteed buyback. The
extremely favorable proposal meant that GOI received proposals to set up new Urea plants entailing
capacity addition of 16 million tonnes, whereas the shortfall between demand and production of urea
is around 8 million tonne which is met through imports.
Following this, the ministry proposed for dropping the guaranteed buyback clause and replacing it with
the Rs 300 crore bank guarantees so that only interested players approach for setting up of new urea
projects. PSUs firms have been exempted from it.
The companies will get a subsidy on production only if the urea production starts in the next 5 years. The
subsidy will continue till 8 years after the commencement of production.
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A BIG REFORM IN FORM OF DIESEL DEREGULATION:

The government took a big reform measure by deregulating diesel prices. The government will no longer
decide the selling price of diesel in the country. That decision will now be taken by oil retailers such as
Indian Oil Corp, BPCL and HPCL.
This is expected to ease the amount of fuel subsidy spent by the government thereby helping it to keep
fiscal deficit within a limit.
Diesel prices will now be market-linked. That means if global crude prices rise, customers will have to
pay more for buying diesel and vice versa.
Diesel prices were cut by a sharp Rs. 3.37 per litre after the decision because global crude prices have
fallen to a four-year low below $90 per dollar. Oil retailers have been making a profit on selling diesel
since September 16.
The cut in diesel prices will lead to a further cool off in inflation. That's because diesel is the most used
fuel product in the agriculture sector and the transportation industry, both of which have a direct
bearing on food prices. Lower inflation will improve purchasing capacity of common people.
A further fall in inflation will pressure the Reserve Bank to cut rates. That will further boost demand in
the economy.
The government's subsidy bill will come down as it will no longer have to reimburse oil companies for
selling diesel at below-market price. Last year (2013-14), the government had to pay Rs. 85,000 crore for
selling diesel, LPG and kerosene at below-market prices.
As per he economic analysts the freeing up of diesel prices and the sharp fall in global crude prices is
expected to further save the government over Rs. 10,000 crore in subsidy payment this year. Lower
subsidy means the government may be able to meet its fiscal deficit target of 4.1 per cent of GDP. This
will be a big positive for the Indian economy.
Lower fiscal deficit will reduce government borrowing and increase spending on asset creation, which
will add to economic productivity.
India imports over 75 per cent of its domestic oil requirements. Oil is the biggest component of the
import bill. Falling crude prices will lead to a reduction in import bill and will have a positive impact on
rupee.
Diesel sales account for about 55 per cent of overall sales of oil marketing companies. Till now, these
companies had to sell diesel at below-market price and were later compensated by the government for
the loss in revenue. Upstream oil companies such as ONGC, Oil India and GAIL also had to contribute to
subsidies. With diesel under-recovery gone, their subsidy burden will come down and profitability will go
up.
Deregulation is also expected to bring private firms such as Reliance Industries and Essar Oil into retail
sale. Such companies do not receive government support for selling diesel at discounted rates and
currently sell via state refiners, despite having their own sales infrastructure.

LOWER IIP NUMBERS FOR AUGUST DISAPPOINTS :

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The index of industrial production (IIP) rose 0.4% in August, substantially below expectation, from a year
ago, with both capital goods and consumer goods logging negative growth.
Thus, It barely expanded in August, marking a second consecutive month of weak expansion after a
relatively strong first quarter.
The stagnation in industrial production was largely because of the contraction in manufacturing sector
in the month of August. This sector has the highest weight of 75.5% in IIP.
Eleven out of 22 manufacturing sub-sectors logged negative growth in August. Production of capital
goods, an indicator of investment, contracted by 11.3% in August, marking a second consecutive month
of declines.
Production of consumer goods, and more notably consumer durables, fell for a third month running in
August, contracting by 6.9%.
Production of consumer durables, an indicator of discretionary demand and consumer sentiment,
contracted in the month of August.
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The figure indicates that there is no pick up in investment. A broad-based investment revival is unlikely
to set in until prevailing structural concerns are resolved, including issues related to the ease and cost of
land acquisition. Also, expediting execution of approved projects and providing a competitive market for
coal and mining sectors is required in order to stimulate the economy.
It was expected that IIP would be around 2.5% because of strong car sales and robust core sector
numbers. Thus the low number was disappointing especially when the growth is from a low base in
August 2013 when IIP rose a similar 0.4%.
Experts were more optimistic about the second half with low commodity and crude prices expected to
help lower inflation and strengthen government finances with the monsoon turning out to be
reasonable after the initial deficiency. This will create room for the government to step up spending to
provide support to the economy till the time the private sector steps in.
However, exports might be hit because of faltering global economy. Also, erractic monsoons impact on
agriculture, negative market sentiments due to events like cancellation of coal blocks by SC combined
with overall low industrial production growth may hit the overall GDP numbers for the coming quarter.

DIPP CONSTITUTES THINK-TANK TO DRAFT NEW IPR POLICY :

A new think tank has been constituted by Department of Industrial policy and promotion ( DIPP).
It is tasked with drafting a national IPR policy and advice the government on a range of patents related
issues.
The think tank will highlight anomalies in the present IPR legislations and advise possible solutions to the
commerce ministry,.
The new think tank will also advise the government on best practices to be followed in trademark
offices, patent offices and other government offices pertaining to IPR. It will also keep the government
informed of developments in IPR cases that could have an impact on Indias IPR policy. The government
said it would also examine the issues raised by industry associations and in the media.
The panel will also prepare periodic reports on best practices followed in foreign countries.
The above panel is being constituted in context of Indias IPR regime coming under huge criticism by
other countries especially US. The US raised a number of concerns over India's IPR regime in its annual
special 301 report in April. While India is currently classified as 'priority watch list', following the out-ofcycle review the US could have classified the country as 'priority foreign country', which is US Trade
Representative's most damaging classification that can trigger trade sanctions
India argues that differences over IPR should be resolved through a bilateral mechanism, instead of
unilateral steps such as OCR.

US companies have been questioning Indias IPR laws since the Controller General of Patents, Designs and
Trademarks decided to grant a compulsory licence to Natco Pharma to produce and sell generic versions of
Bayer-Onyxs cancer drug, Nexavar.

FLIPKART BIG BILLION DAY MEGA SALES: RAISING QUESTIONS ON INDIAN ECOMMERCE:
Flipkart Big Billion Day sales marked a landmark in Indian e-commerce sector with the company generating intraday sales of more than 100 mn dollars in Gross Merchandise Value ( GMV ). e-commerce marketplaces use the
term Gross merchandise value or GMV as a measure because their revenue is actually the commission amount
from sellers. GMV is the total value of merchandise sold over a given period of time.
However, this mega sales also raised some serious issues :

A. PREDATORY PRICING :

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One of the primary reasons why e-commerce sites like Flipkart can generate so much sales is the amount
of discounts they offer on the merchandise they sell. Most e-retailers use their marketing funds to
provide additional discounts to consumers, while in some cases; sellers are refunded extra money, to
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offer higher discounts. These companies recommend the amount of discounts to be offered to sellers on
products and in return finance the discounts either through a cheque or through internet banking, while
others suggest prices but forgoes commissions or listing fees that marketplaces usually charge their
sellers.
However, such deep discounts have irked two stakeholders in this process:
A. Brick and Mortar Offline stores:

This segment of merchandise sellers cant match discounts offered by e-retailers owing to their business
model. They have hence alleged that such discounts are example of predatory pricing aiming to increase
their market share. CII has even officially approached GOI to rectify the situation.
Technically, to qualify as predatory pricing, a firm must sell merchandise at prices lower than cost price
to eliminate the competition and the firm must be the dominant place in the market.
Since market share of e commerce in the merchandise market as a whole is around 4-5% , technically
these discounts will not qualify as predatory pricing. Also, these firms claim that since they have market
place business model, meaning some other seller is actually selling the product on their platform, they
are only facilitator and not the actual seller. However, since these discounts are only possible because of
reimbursement offered by such firms to these sellers, it is not clear that e-retailers arguments hold.
Consumers have now started to have unrealistic expectations of prices when they go retail outlets,
which is impossible for them to match.
B. Consumer brands like LG, Samsung :

They allege that their products being sold by various sellers at prices below cost price negatively affects
their brand name.
Warranty on products sold on sites like Flipkart and Snapdeal is one issue that keeps surfacing and
companies are of opinion that goods are being sold through unauthorized channel partners, and it is akin
to buying from the grey market and will not be covered under warranty.

B. FDI ISSUES:

The FDI Circular 2014 says 100 percent FDI is permitted under the automatic route in ecommerce
provided it is B2B, i.e. business to business and not business to retail
E-commerce sites in order to overcome this hurdle adopt market-place business model which they
claim to be equivalent to B2B model.. It means the firm itself doesnt stock goods ( inventory model)
but allows others resellers to use your platform.
However, since these sites offer so many discounts by funneling their funds to these resellers , this is
almost equivalent to B2C selling. Also the B2B and marketplace models are by no means the same. The
distinguishing feature of the marketplace model is the online agency role played by the e-commerce
portal. In B2B, meanwhile, there is a direct interface between the retail buyer and the online portal.

C. TAX ISSUES:

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With most Indian e-commerce firms preferring to remain unlisted and some domiciled in tax havens,
it isnt clear if these firms suffer the same incidence of income tax, service tax and VAT as domestic
brick-and-mortar retailers do.
Online retailers claim that they are not liable for VAT because they arent owners of the goods that
they sell.
Also, E-retailers are found to be importing goods in a low-VAT state like Karnataka, where VAT is
5.5% on mobiles, and selling them in high-VAT states like Tamil Nadu, where the charge is 14.5%. But
the e-tailer is paying VAT in Karnataka and not Tamil Nadu, saving that 10%. But brick- and-mortar
stores in Tamil Nadu have to pay according to state rules .This loophole thus distorts taxation system
for two similar sellers in the same market.

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D. SOURCING ISSUES:

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It is expected that as e-retailers gain market share , their very nature of offering discounted
merchandise ( electronics in particular ) will fuel more and more demand.
This may, at some point, call for sourcing regulations that require online retailers to procure a
certain proportion of their merchandise from local suppliers. Foreign-owned single brand retailers
are already subject to such sourcing norms.
The seemingly insatiable appetite for smartphones and other electronic gizmos, for instance, has
already bloated Indias import bill (we made electronics imports to the tune of $30 billion annually in
recent years). This may, at some point, call for sourcing regulations that require online retailers to
procure a certain proportion of their merchandise from local suppliers. Foreign-owned single brand
retailers are already subject to such sourcing norms.
One e-tailer is importing phones to a low-VAT state like Karnataka, where VAT is 5.5% on mobiles,
and selling them in high-VAT states like Tamil Nadu, where the charge is 14.5%. But the e-tailer is
paying VAT in Karnataka and not Tamil Nadu, saving that 10%. But brick- and-mortar guys with
stores in Tamil Nadu have to pay according to state rules. Basically e-tailers are are using loopholes
in laws to their advantage.

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SOCIAL ISSUES
DECRIMINALIZATION OF SUICIDES
Indias new health policy which calls for recognition of mental disorders and a more accessible and holistic
treatment of mental illnesses also pushes for decriminalisation of attempted suicide.
The policy takes a fresh look at the health services being offered for mental illnesses, lays down the
guidelines for mental health care, and recommends changes in the law that criminalises suicide, now
considered a major cause of death among people with a mental illness.
ANALYSIS

When someone attempts suicide and fails, it is considered a crime; attempted suicides should be
decriminalised.
Suicidal behaviour is determined by a complex matrix of factors including personal experiences, psychological
history, the socio-cultural environment, and genetic make-up. The central government's decision to initiate
steps to delete Section 309 is certainly overdue.
This inhumane provision, which is a form of double punishment, remains on the statute books only in a few
countries such as Pakistan, Bangladesh, Malaysia, and Singapore, besides India.
The view that decriminalising the attempt to suicide will encourage people to take their own lives has no
basis. As the International Association for Suicide Prevention has pointed out, there is nothing to show that
suicide rates have increased following decriminalisation; in fact, the converse may well be true as decreasing
suicide rates in some countries can be related to the medical and psychological help people who attempt
suicide turn to in the absence of fear of being penalised by the law.
It is important to stress here that deleting Section 309 does not absolve the state, public authorities, and
society at large of the responsibility to prevent suicides. It is the duty of the state to protect and preserve
human life, and it can be argued that Section 306 of the IPC, which penalises the abetment of suicide, casts
an obligation on public authorities to prevent the loss of life that may result from such acts as fast-untodeath.
The United Kingdom, the last European country to decriminalise the attempt to suicide, the Suicide Act of
1961 holds people criminally liable for aiding, abetting, and counselling the suicide of another.
Decriminalisation is recognition that suicide is a complex problem with psychological and social dimensions.

CORPORATES COME OUT IN SUPPORT OF GIRL SANITATION

Several leading corporates have signed up for the ongoing drive to ensure that all government schools have
toilets for girls by Independence Day next year.
At an interaction with Human Resource Development Minister Smriti Irani, corporates including Infosys,
Maruti Suzuki, JK Tyres, TCS, Toyota Kirloskar and Bharti Foundation pledged to set aside money from their
Corporate Social Responsibility funds.
BACKGROUND

As per the latest available data, 1,01,768 government schools across the country do not have separate toilets
for girls.
The August 15, 2015 deadline for girls toilets in all government schools was set by Prime Minister Narendra
Modi in his Independence Day speech

INCREASED TOILET COVERAGE HAS HAD LITTLE IMPACT

New evidence has raised troubling questions about Indias 25-year strategy of pushing people to use toilets as
a way to improve health.

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 In a paper published in the medical journal Lancet , researchers have found that increased toilet coverage did
not lead to any significant improvements in the occurrence of child diarrhoea, prevalence of parasitic worm
infections, child stunting or child mortality.
One key possible explanation for the absence of a health impact, the researchers said, could be the patchy
implementation of the scheme, and uneven rates of use of toilets at the end of the study period, just 63
per cent of households in the villages where the scheme ran had any toilet, and two-thirds of this group
reported a family member using the toilet. Usage was substantially lower among men than among women.
A troubling finding was that even villages with higher toilet coverage, and households that had some family
members using the toilet did not see any difference in health
ANALYSIS

India should be proud of the efforts that have been made to improve sanitation and eliminate open
defecation. It is an exceptionally large challenge and the new government should be applauded for the
commitment it is making.
Two of the changes which are recommended by the researchers are listed below.
First, India must target latrine use, not latrine coverage.
Secondly, the sanitation programme should be combined with other environmental health schemes,
including safe drinking water and hand-washing, that will limit other forms of exposure.

WOMEN RELATED
MAJORITY INDIAN WOMEN ENGAGED IN UNPAID HOUSEWORK
As per latest NSSO data, close to two out of every three Indian women are, in their prime working years,
primarily engaged in unpaid housework.
This phenomenon, on the rise over the last decade, is least common in the southern and north-eastern States
and most common in the northern States, Punjab, Haryana and Uttar Pradesh in particular.
Over 60 per cent of adult women, the NSSO found, are primarily engaged in housework slightly more so
among urban women. The data shows that women, in both rural and urban areas, are increasingly reporting
domestic work as their main occupation.
Even though a majority of the women surveyed were engaged in productive activity collecting firewood or
rearing household poultry they could not be classified as workers as the value added by and the number
of hours spent on these actions were not sufficient to constitute economically productive activity

CONTROLLING DENGUE IN INDIA

SOME OF STATISTICS RELATED TO DENGUE

The worlds fastest growing vector-borne disease, dengue sees an estimated 50-100 million cases being
reported annually in over 100 endemic countries. Ever since its detection in the early 1950s, there has been a
30-fold increase in dengue incidence.
The Southeast Asia region contributes to more than half of the global burden of the disease. About 52 per
cent of the worlds population at risk resides in this region. Dengue is endemic in 10 of the 11 member states,
and India, Indonesia, Myanmar, Sri Lanka and Thailand are among the 30 most endemic countries in the
world. More than 4, 00, 000 cases of dengue were reported in this region in 2013.
INCREASE IN NUMBER OF CASES

An area of concern is that the number of cases has been increasing year after year.
Being a vector-borne disease, ever-increasing numbers and varieties of mosquito-breeding habitats are being
created with rapid and poorly planned urbanisation, globalisation, consumerism, poor solid waste and water
management, and increasing population movement without adequate measures to prevent vector breeding.
Climate change is also influencing ecology that encourages vector breeding.
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 The accumulation of modern non-biodegradable products such as automobile tyres, plastic containers and tin
products provides a conducive environment for prolific breeding of Aedes aegypti and Aedes
albopictus vectors of dengue
SOLUTIONS

The outbreak of dengue, like other vector-borne diseases, is determined by socio-economic factors that
include reduced access to health services, housing, sanitation, water supplies and poverty. Efficient, effective
and sustainable prevention and control of vector-borne diseases requires not only the application of
biomedical tools, but interventions to address these factors as well.
Global evidence conclusively shows that dengue control can never be achieved or sustained without
community empowerment and ownership. Even the best public health systems in the world will not
accomplish the desired task of containing dengue without the active participation of communities in this
endeavour. Communities must work with public health authorities in preventing accumulation of material
where water gets stored, allowing mosquitoes to breed. A simple preventive step is to protect oneself from
mosquito bites by wearing clothes that cover the body completely. This can help in cutting short the
transmission of this infection.
For many infectious diseases, good vaccines are available. Extensive research is on to develop a safe,
efficacious and affordable vaccine against dengue too. WHO has been supporting these research and
development efforts.
Till vaccines become available, dengue-control activities have to be a synergy of sound public health actions.
This must include integrated vector management and active participation of individuals, families and
communities in reducing the sources where mosquitoes breed. The battle against the disease can be won
only through concerted actions by all.
DHAKA DECLARATION

The health ministers of the Southeast Asia region, in their recent meeting in September 2014, adopted the
Dhaka Declaration on Vector-borne Diseases. The Declaration encourages a whole of government approach
against diseases such as dengue.
This was in recognition of the importance of a multi-sectoral approach to addressing dengue outbreaks and in
order to advocate utmost need for Health in All Policies an approach to public policies across sectors that
systematically takes into account the health implications of decisions, seeks synergies, and avoids harmful
health impacts, in order to improve population health and health equity.
The theme of World Health Day 2014 focused on vector-borne diseases to acknowledge their public health
importance, raise global awareness and increase commitment on controlling them.

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HEALTH
REDUCING TOBACCO USAGE
The government has come up with one ore much-needed measure to contain tobacco consumption.
A recent amendment to the Cigarettes and other Tobacco Products (Packaging and Labelling) Rules of 2008,
ensures that beginning April 1, 2015, all tobacco products will carry a pictorial warning and text message that
occupy at least 85 per cent of the front and back of a package. The pictorial warning alone will take up 60 per
cent of the space and the written message the remaining 25 per cent.
With this change, India will catapult itself to the No.1 position in the world, alongside Thailand, on the
international ranking based on the area dedicated to the warning. Aside from more than doubling the
statutory warning area on a package from 40 to 85 per cent, both sides of a package will carry the warning;
currently, it is displayed only on one side
ANLAYSIS

In contrast to the completely ineffectual pictorial warnings now being used on cigarette packets and chewing
tobacco pouches, the chosen images can at once shock and educate consumers of the risks of tobacco use.
By also mandating that images be rotated every 12 months, the government has ensured that India follows
the WHO Framework Convention on Tobacco Control labelling requirements in letter and spirit.
The use of pictorial warnings turns the power of packaging on its head from building and reinforcing a
brand, packages become a vehicle for increasing awareness about tobaccos health risks. It is proven beyond
doubt that the use of graphic images along with written messages has the potential to significantly deter
people from taking up the habit and also prompt existing users to cut the amount of tobacco consumed and
even quit smoking.
Since one million people in India die each year because of tobacco use, the government should not sacrifice
proven and obvious health benefits at the altar of commercial advantage and not succumb to any kind of
pressure built by the private sector.

TACKLINGE THE MENACE OF TB

EXTENT OF PROBLEM

With 2.2 million new cases and close to 3,00,000 deaths each year, TB is Indias silent epidemic.
In 2013, the World Health Organization identified 3 million missing TB cases globally of which 1 million were
in India. These 1 million missing cases fall somewhere between the public and the private sector and lack
access to free care.
The 60 per cent of all TB patients who first go to the private sector receive care whose quality varies
enormously, often leading to delays in diagnosis and no assurance of cure. As a result, a large proportion of
these patients move sicker and poorer from one provider to another, infecting others in the process.

PROBLEM OF ACCESS AND RELIABILITY

While TB can affect anybody, studies have shown that it is four times more common in people in the lowest
socio-economic quintile compared to the highest.
A recent systematic review found that the total costs of TB for patients and affected families on average
corresponded to more than half their yearly income. This makes it a clinical as well as an economic crisis.
WAY AHEAD

Tackling TB in India requires both strengthening the public sector and engaging the private sector. For a
disease like TB, early diagnosis and correct treatment are the easiest ways to reduce transmission. India
needs to give every patient, irrespective of whether they go to the public or private sector, access to quick
and reliable diagnosis and treatment.
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 For the government, this means that every primary health centre (urban and rural) the first point of care
for the patient should be capable of making a diagnosis of TB and initiating treatment.
For this, diagnostic facilities need to be upgraded and clinical and laboratory staff given training. Private
services could be utilised for some of these investigations in PHCs where these facilities may not be available
(for example imaging studies, paediatrician opinions and rapid molecular tests). Patients should not need to
travel long distances to get a diagnosis.
Ultimately, the quality of health care provided and a satisfied client are the most successful advertisements
for the health system. At the same time, we must actively engage the private sector in a mutually acceptable
way while patients continue to remain with the individual doctor, both diagnosis and treatment could be
provided free through the public sector.
Brazil Model: Brazil offers an excellent example, where TB drugs are offered only by the public health system
and are unavailable in the private sector. TB drugs are bought through a centralised mechanism of acquisition
and distribution, ensuring drug quality.Such a model could easily work in India if combined with effective use
of technology. Each patient diagnosed in the private sector could avail drugs through the use of a paper or
electronic voucher valid at designated pharmacies. This would ensure that patients receive appropriate and
quality-assured drug regimens reducing patient costs. Further, it would ensure notification of all patients and
help in monitoring and follow-up to ensure cure.
Changes in TB programme:Rapid reduction in TB burden is not possible without significant changes in Indias
TB programme. It requires uniform and equitable implementation of the diagnostic, treatment, public health
and social support guidelines laid down in the Indian Standards of TB care, strengthening of human resources
both at the Central and State level, using novel methods of monitoring patient compliance (e.g. mobile phone
based) and launching a massive public awareness campaign. Procedures for procurement and distribution of
drugs need to be streamlined to ensure a constant supply of quality-assured drugs. More flexibility in
programme delivery needs to be given to State and district-level implementing officers. Alongside inputs to
achieve universal health coverage, social protection interventions that address out-of-pocket expenses and
the food and nutritional requirements of TB patients are also critical an innovative example is the free
breakfast scheme for TB patients launched by the Chennai Corporation.India may take a cue from China,
where TB prevalence declined by half as the government invested heavily in systemic improvements,
modernisation and changing approaches to diagnosis and treatment. This revitalisation of TB services led to
millions being able to access timely, high-quality TB treatment which considerably reducing the number of
new TB cases.
India urgently needs similar investment in the health system combined with innovative strategies to address
TB and drug resistant TB.
If we do not act now, our inaction will make us responsible for continued suffering of patients and deaths.

MALNOURISHMENT WITNESSED SHARP DECLINE IN INDIA

As per latest data from UNICEF, the proportion of underweight children in India might have declined from
45.1 per cent in 2005-06 to a historic low of 30.7 per cent last year.
This makes the decline in one indicator of child undernourishment the sharpest in the 25 years that such data
has been collected.
In the last decade, India has improved its health status faster than other South Asian countries, the new data
indicates, as opposed to the widespread belief that countries such as Bangladesh had done a better job on
reducing malnutrition than India despite Indias faster economic growth.
Even so, India still has the highest number of underweight children under five in the world and 70% of
children are anaemic. The proportion of undernourished people in the overall population has fallen from 21.5
per cent in 2004-06 to 17 per cent in 2011-13, according to IFPRI estimates
REASONS FOR SUCH DECLINE?

IFPRI credits the governments push to extend nutrition schemes like the Integrated Child Development
Services along with better monitoring by a Supreme Court-appointed committee, improve access to health
under the National Rural Health Mission, provide access to work under the National Rural Employment
Guarantee Act and strengthen the implementation of the Public Delivery System for subsidised grain.
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 In the last 10 to 15 years, what happened in India was similar to what we have seen in Brazil and China fastgrowing economies with reasonably concurrent investments in social sector programmes, leading to what we
would expect to see, which is an improvement in health outcomes.

STOCK OUT OF VITAL MEDICINES

India is widely recognised as the pharmacy of the developing world thanks to its generic drugs manufacturing
sector. Yet, ironically, it often fails to provide necessary drugs to its own population. Several States across
India have been reporting that essential HIV drugs, especially nevirapine, have gone out of stock
REASONS

Contrary to popular perception, the government is designed to be a competent machinery with detailed
systems in place to avoid such crisis. Drug stocks in the public health system are meant to be regularly
monitored and the suppliers should be kept in the loop about future requirements. Hence all drug stock-outs
are created either out of neglect or out of self-interest. No drug stock-out is ever an unanticipated one.
A drug stock-out requires some negligence, compliance and efforts by all actors. For one, it requires the
purposeful ignoring of well-structured systems of reporting on drug stocks. It also demands continued delays
in forecasting and planning. Finally, there must be extensive procrastination or delay in procurements.
This points to several systemic weaknesses that are difficult but essential to address. There is a culture of
neglect where the health establishment is geared for minimal action to disturb the status quo. There is also a
deeply ingrained mindset of mutual protection. Despite a looming crisis, people within the system rarely raise
an alarm. The matter only reaches a head when word gets out to the media or someone senior calls for
explanations. Until then the system protects itself while poor patients wait for the health system to deliver.
IMPLICATIONS OF STOCK OUTS

Patients suffering from TB and HIV also suffer extensive physical, psychological, social and economic
consequences of these diseases. These diseases impact income, raise expenses and often push families into
debt. By not providing appropriate and timely treatment, the government is further acerbating their suffering
and also limiting their ability to build constructive lives.
A stock-out also has significant implications for disease control. Unplanned HIV treatment interruptions lead
to increased risk resistance to HIV drugs, failure of treatment, and death. Similarly, a TB patient without drugs
can become drug-resistant and infectious.
Stock-outs also significantly reduce the patients trust in the system and makes retention of patients more
difficult.
WAY AHEAD

Addressing stock-outs should be a top priority for the government

This should be followed by immediate remedial action to ensure that these crises do not recur in any form in
the future.
At the same time, its also important that we as a people seek accountability for our right to free quality
health services. Despite political posturing, the idea of Universal Health Coverage remains elusive and
continues to lack political commitment and resources.
Neglect by successive governments has resulted in the growth of an unregulated and exploitative private
sector which has become the primary provider of health services to Indians. It is ethically and morally
untenable that the state can renege on its duty to provide the poor and vulnerable health care, particularly
medicines under the public sector. It violates human rights and all notions of justice and empathy.
Access to essential medicines in the public health system cannot be a service that the state voluntarily
undertakes; it must be considered an undeniable right of every Indian.

RISK OF EBOLA IN INDIA

HOW IS INDIA AT RISK- AN EXAMPLE
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 Ebola is a lethal virus with a long incubation period. More than half the people who are infected with Ebola
die from it, but it takes between 8-21 days for the symptoms to show up once a person is infected. This now
provides the making of a global epidemic an Indian nurse working in Monrovia, Liberia, could come home
infected with Ebola.
She could pass through the airport thermal scanners and go home completely asymptomatic. When she
comes down with the disease, she will be initially treated without any apprehension by her family members;
none of whom will wear gloves or masks. They will be infected.
She may finally have to go in, very sick and contagious, to a local hospital. Fearful of quarantine and death,
she may not reveal (or more likely not be asked) that she came from Liberia. The symptoms of an acute Ebola
infection high fever, headaches, nausea, diarrhoea are the same as many of our home-grown but less
fatal viruses. The hospital will not isolate her; nor will the nurses and doctors caring for her take any
precautions. The epidemic will spread.
ANALYSIS

Many experts say that an outbreak in Europe or North America would quickly be brought under control but
what concerns them more is many people from India who work in trade or industry in West Africa.
Ebola would become a pandemic when it hits India. We are a poor country with health systems that are
already stretched in the season of disease. We have one nurse per 1,000 people compared to 1.6 nurses
that Nigeria has or the 10 nurses that the U.S. has for 1,000 people. The U.S. has systems and adequate
resources to effectively track and isolate victims of Ebola, and the people these victims could have infected,
to stem the tide of the epidemic. Most importantly, they have a far lower population density.
SOLUTIONS

The best course of action for India is prevention. Prevent all persons originating from the three hardest-hit
nations Guinea, Sierra Leone and Liberia from coming into India, no matter what their status (health or
otherwise).
Pre-boarding scrutiny of passports will accomplish this. If and when the epidemic intensifies, extend that ban
to persons from Nigeria too.
INDIA READY TO DEAL WITH EBOLA

Health officials have assured that India, which has had no cases of Ebola so far, is equipped to contain the
virus. They have cautioned against over-the-counter drugs that promise a cure for Ebola.

RURAL STINT AS A PART OF MEDICAL CURRICULUM

Medical Council of India (MCI), the apex regulatory body for medical education, is almost certain to introduce
rural service in PG curriculum itself.
The move to make mandatory year-long village posting for doctors pursuing PG medical courses comes in the
wake of a letter written by Union Minister for Health (UMH), Dr. Harsh Vardhan to MCI.In his letter he has
categorically said that a medical student should spend a year in village.
The Minister also asked MCI members to roll out one-year rural service from next year.

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ENVIRONMENT
CLIMATE CHANGE A PUBLIC HEALTH ISSUE: JAIRAM

There is accumulating evidence in India that pollution and contamination are becoming a serious
public health issue, which requires focussed strategies to mitigate.
Delineating what a pragmatic agenda for India could look like in the run-up to the 21 Conference of
the Parties for Climate Change to be held in Paris in 2015, he said India should revisit its
articulation of equity and differentiation.
There was a necessity now to introduce a system of graduation where countries take on increasing
responsibilities as they move up the equity ladder.
Studies had shown that the difference between a high-carbon and low-fuelled economic growth
could be as little as 0.1 to 0.15 per cent. The investments for this would require about 1.5 per cent of
the GDP, which the country had the capacity to meet on its own.

INDIA WILL BE RENEWABLES SUPERPOWER, SAYS ENERGY MINISTER, PIYUSH

GOYAL

$100bn investment likely in five years but coal power plants will also expand rapidly to provide electricity to
every Indian village.
Piyush Goyal dismissed criticism of the impact of Indias coal rush on climate change, as western
governments giving homilies and pontificating, having enjoyed themselves the fruits of ruining the
environment over many years.
The aggressive statements are significant in setting out both how prime minister Narendra Modi will fulfil
his governments ambitious goal to bring electricity to the 300m power-less Indians and also how India will
approach the crucial 15 months of negotiations ahead before a UN deal to tackle global warming must be
agreed.

Plans for Renewable energy generation

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Huge increases in energy supply in developing nations are needed to lift the worlds poor out of poverty,
but achieving this largely through polluting fossil fuels will lead to dangerous climate change.
Modis government, elected in May, has brought forward a flurry of energy announcements in its first 100
days, with pledges to accelerate solar power particularly prominent.

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INDIA AND WORLD

INDIA-USA
JOINT STATEMENT

The joint statement between India and the U.S., released after discussions between Prime Minister
Narendra Modi and President Barack Obama, listed an exhaustive laundry list of all agreements between
both sides from knowledge partnerships and renewable energies to nuclear issues. However, it lacked
significant progress, or breakthrough, in the various issues the two nations face.
While India did not accede to the U.S. request to join the international coalition against Islamic State, the
two sides agreed on several ways to enhance cooperation on terror. India and the U.S. will work on joint
and concerted efforts to dismantle terror groups such as the Lashkar-e-Taiba, Jaish-e-Mohammad, DCompany (Dawood Ibrahim network) and the Haqqani network by shutting down their financial
capabilities.
They would also work together on building a database to monitor citizens under the terror scanner who are
returning from conflict zones. They will also increase a partnership on maritime security.
On other issues, the two sides agreed to a special mechanism to speed up the implementation for the civil
nuclear deal, as well as the disbursal of $1 billion from the Indian exim bank to allow Indian companies to
import more technology on renewable energy, with a focus on solar energy for 500 Indian smart cities.
The U.S. will also partner to build infrastructure in Ajmer, Allahabad, and Visakhapatnam.
India and the U.S. agreed on the framework to renew their 10-year-old strategic partnership on defence
issues.

US ASKED NOT TO PRESSURISE INDIA TO REJECT CANCER DRUG LICENSE

An international organisation, Union for Affordable Cancer Treatment (UACT), working for cancer-affected
people has asked the Obama administration not to pressurise India to reject a compulsory license on a drug
for a rare form of leukaemia, which would be a de facto endorsement of an excessive price. In a letter to the
US Trade Representative (USTR), it opposed the policies that promote high cancer drug prices throughout
the world.
UACT in its letter refers to recent reports suggesting that USTR is pressuring the Indian government to reject
a compulsory license on Dasatinib, a drug for a rare form of leukaemia.

CHINAS REACTION ON MODIS USA VISIT

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Taking stock of the big picture, following Prime Minister Narendra Modis high-profile visit to the United
States, China has arrived at the conclusion that India would not partner a U.S-led rebalancing strategy in
the Asia-Pacific that targets China.
Also called the Washingtons Pivot to Asia a coinage first detailed by former U.S. Secretary of State,
Hillary Clinton - the mantra anchors a decision to expand Washingtons military profile in the Asia-Pacific,
including swathes of the Indian Ocean, by beefing up military capabilities of countries on the periphery of
China, including Japan, Australia and the Philippines.
A Chinese daily pointed out that rooted in its non-aligned culture, India will not develop its ties with the U.S.
at Chinas expense. Besides, both countries have vowed to forge a closer development partnership during
President Xis visit to India. The unsolved territorial disputes will not affect the development of Sino-India
relations. The comment coincides with an agreement on the pull back by forces of both sides to their
original position, thus ending the recent flare up in Ladakh.
From a Chinese perspective, the core of the rebalancing doctrine would unfold in Japan, where 40,000
U.S. troops would be positioned and in South Korea, where 28, 500 American servicemen were to be
stationed. A U.S. Congressional Research Service report had earlier stated that Washington would post
2,500 troops in Darwin, Australia, and discussions were underway to allow U.S. Navy greater access in Perth.
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Referring to the economic aspect of the rebalancing doctrine, the newspaper pointed out that India was
not even in the frame in the formation of the Trans-Pacific Partnership (TPP), which was at the heart of the
approach to restrain Chinas economic rise. The countries participating in the TPP include Japan, Australia,
New Zealand, the United States, Canada, Peru, Singapore and Vietnam.
On the contrary, India was focused inwards, seeking foreign investments to bolster its domestic economy.
India has established an economic and financial partnership with America.

INDIA-CHINA
INDIA SIGNS UP FOR CHINAS ASIAN BANK

China led 21 Asian nations, including India, in forming a multilateral financial front in the form of the Asian
Infrastructure Investment Bank (AIIB), being seen as a challenger to the U.S.-backed Bretton Woods
institutions. India signed a memorandum of understanding, along with Pakistan, Sri Lanka, Bangladesh and
Nepal and others, as the founding member of the AIIB.
With an initial subscribed capital of $50 billion, the setting up of the Beijing-headquartered AIIB has been
welcomed by the World Bank and the Asian Development Bank.
The 21-nation group comprises Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos,
Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka,
Thailand, Uzbekistan and Vietnam. Japan, Indonesia, South Korea and Australia keep out.

BEEFING UP THE INFRASTRUCTURE ALONG THE BORDER IN ARUNACHAL PRADESH

Indian government announced setting up of 54 new border outposts and a Rs. 175-crore package for
beefing up the infrastructure along the border in Arunachal Pradesh.
Chinas military expressed concern over Indias plan, saying India should not complicate the situation and do
more to maintain peace as it is a disputed area. Asked why China is wary of Indias development of
infrastructure along the border when it has carried out extensive development on its side, a Chinese official
said that its because the proposed construction is in a disputed area.
The agreements like setting up hotlines between the two militaries and improving communications
between the command posts reached recently during meeting of the Working Mechanism for Consultation
and Coordination (WMCC) in New Delhi put very important and positive inputs into bilateral relations and
can help to deal with the border issues in a timely manner.

INDIA AND NEPAL

LANDMARK ENERGY AGREEMENT

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Nepal and India formally signed a landmark power trade agreement (PTA), allowing exchange of electricity,
which is expected to open up new vistas of cooperation in the hydropower sector between the two energystarved nations. In a ceremony held at the Prime Ministers Office in Nepal.
After the initial signing, the text of the agreement titled Agreement between the Government of Nepal
and the Government of the Republic of India on Electric Power Trade and Cross-Border Transmission
Interconnection and Grid Connectivity was forwarded to the respective cabinets of both countries for
ratification.
The agreement aims at enhancing the friendly relations and mutual trust between Nepal and India through
increased cooperation in the field of transmission interconnection, grid connectivity and power trade. It
facilitates governments, public and private enterprises in planning and construction of interconnection
facilities and power trade.

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INDIA-SRI LANKA
YAL DEVI EXPRESS

The iconic Yal Devi Express from Colombo to Jaffna will resume its run on October 13, some 25 years after
the link was suspended during the height of the Sri Lankan civil war.
IRCON, an Indian Railways subsidiary, restored a section of the line from Omanthai to Pallai in the Northern
Province, damaged during the war, with a $800-million line of credit from India. Nearly 4,000 people, 400 of
them skilled labourers from India, have been working on the project for over four years. Connecting the
south to the north, the 339-km line, inaugurated in 1894, is the longest on the island.
After the war ended in 2009, the line was gradually restored section by section, first to Omanthai, then
further north to Kilinochchi, and then to Pallai, 40 km short of Jaffna. Now, IRCON plans to extend the line
to Kankesanthurai, the northernmost tip of the island.
There were many challenges in rebuilding the line, including the de-mining efforts that preceded the actual
reconstruction. Those involved in the construction found at least 10 unexploded bombs in the former war
zone as they began work.

COLOMBO ALLAYS DELHIS CONCERN OVER CHINA

Amid reports of increasing military ties with China, Sri Lanka sought to allay Indias concerns, insisting it will
do nothing to compromise the security of this country.
Changzheng 2, a nuclear-powered submarine, had docked at the Colombo International Container Terminal
Ltd in September. Two other Chinese naval vessels had docked in Colombo from September 7 to 13. Lankan
Navy Chief said that Changzheng 2 was a conventional submarine and not a nuclear submarine. He insisted
that there is no Chinese military presence in his country.

FISHERMAN ISSUE

Reacting to the verdict of the Colombo High Court sentencing five Indian fishermen to death on charged of
smuggling heroin, the MEA spokesperson said India is in touch with Sri Lankan authorities. However
officials say this case is more complex, given the seriousness of the charges, as well as the sentence handed
down.
Since January 2014, Sri Lankan President Mahinda Rajapaksa has ordered the release more than 280
fishermen arrested for trespassing and illegal fishing.

INDIA-RUSSIA
BRAHMOS

The governments of India and Russia have agreed that BrahMos missile will be exported to a list of mutually
agreeable countries for defensive purposes. There is also a negative list to which exports are barred.
It has been learnt that three submarine manufacturers Amur (Russia), HDW (Germany) and Navantia (Spain)
have approached BA for installing BrahMos on the new Project- 75I submarines should they bag the
contract.

SAARC
SAARC POWER GRID

33

Union power minister Piyush Goyal reiterated the need for establishing the long-pending inter-regional
power grid project for enhancing energy cooperation and interconnectivity among the eight nations
comprising the South Asian Association for Regional Cooperation.
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Mr. Goyal said the SAARC gridoriginally floated in 2009 as part of an Asian Development Bank report on
SAARC energy trade would not only strengthen economic ties among the SAARC nations but also deepen
people to people relationships. Citing an example of inter-regional energy cooperation, he said hydroelectric power generated in North East India could be transported to Afghanistan via Bangladesh, and
Pakistan.
A significant example of an inter-regional power grid is the Central Asian Power Grid or the Central Asian
Power System, built during the Soviet Era. The common power systemcreated by the Soviet Union for
Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistanworked till the countries were part of the
Union, but started facing difficulties since 1991.
To reduce imports and move towards greater inter-regional energy security, the minister floated a three
pronged strategy focused on harnessing conventional and renewable sources of energy; building interconnected transmission grids; and forging effective power trading agreements.
Mr. Goyal congratulated member nations for reaching consensus on the Framework Agreement for Energy
Cooperation, pending since 2010. The meet was attended by all the SAARC nations except Pakistan.

COMMON EDUCATION AGENDA

Education Ministers of the South Asian Association for Regional Cooperation issued a joint statement in
New Delhi titled 'The New Delhi Declaration on Education.' Education Ministers and officials of eight South
Asian countries have resolved to collaborate on increased use of information technology and improving the
quality of education.
The priority areas of action decided upon include enhancing the learning and development readiness of preschool age children, ensuring education for all, expanding skill development, facilitating mutual recognition
of qualifications and mobility of students and teachers and expanding alternative ways of learning like open
and distance education.

INDIA-PAKISTAN
KASHMIR ISSUE

Pakistan Prime Minister Nawaz Sharif raked up the Kashmir issue at the U.N. General Assembly where he
said the U.N. had passed resolutions to hold a plebiscite in Jammu and Kashmir more than six decades ago.
India had strongly rejected the untenable comments made by Mr. Sharif, asserting that the people of the
State have peacefully chosen their destiny in accordance with universally accepted democratic principles.
Speaking at the UNGA, Prime Minister Narendra Modi had offered to engage in a serious bilateral dialogue
without the shadow of terrorism while asking Pakistan to create an appropriate environment for that.
Pakistan asserted that Kashmir is a legal issue and must be resolved through plebiscite as per the
aspirations of the Kashmiri people. Foreign Office spokesperson Tasnim Aslam also made it clear that IndiaPakistan talks were not a substitute to the U.N. resolutions on Kashmir which envisage plebiscite in the
region. Ms. Aslam said that Simla Agreement between the two countries does not make U.N. resolutions
ineffective.
Ms. Aslam also claimed that India never responded positively on Pakistan's proposals to resolve the Siachen
issue and for declaring Siachen a Peace Park including demilitarisation of the territory.
India had called off Foreign Secretary-level talks in August after Pakistan's High Commissioner in New Delhi
Abdul Basit had met Kashmiri separatist leaders ahead of the meeting, ignoring India's warning that the
move could derail the parleys. Ms. Aslam saw nothing wrong in Mr. Basits meeting with Hurriyat leaders,
saying Pakistan regularly consults with them.

CEASEFIRE VIOLATIONS

34

India and Pakistan sparred at the UN General Assembly over ceasefire violations along the LoC with India
making it clear that its armed forces are fully ready to respond to provocation. India also said that the
onus of creating a positive environment for normalization of relations is on Pakistan.
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Amid escalation of ceasefire violations along the Line of Control, U.N. Secretary-General Ban Ki-moon has
asked India and Pakistan to resolve their issues diplomatically and through dialogue.
Meanwhile, Pakistan has also lodged a protest with India on the alleged ceasefire violations and has even
approached the U.N. Military Observer Group in India and Pakistan (UNMOGIP) office over the situation.
India has however always maintained that UNMOGIP has outlived its relevance and has no role to play
whatsoever.
Meanwhile, at least 100 Indian websites were defaced by Pakistani hackers over the last two days.

INDIA OFFERS TO HELP PAKISTAN ERADICATE POLIO

Union Health Minister Harsh Vardhan has offered help in polio eradication to the government of Pakistan.
Dr. Vardhan pointed out that though India was polio-free now, there was always the danger of the virus
resurfacing as Pakistan accounts for 85 per cent of the worlds polio cases. Hence, it was imperative that the
two countries cooperate because of this threat.
He said measures had been put in place at border crossings. These include vaccination for those travelling
both ways to Pakistan and emergency response plans. The Ministry will introduce the injectable vaccine in
the Immunisation Programme next year in line with the Global Polio Eradication Initiatives action plan.

INDIA-UN
INDIA CONTRIBUTES $1 MILLION TO UN WOMENS BODY

Underscoring its commitment to the United Nations' body on gender equality and women empowerment,
India has contributed $1 million to the organisation for the current financial year.
External Affairs Minister Sushma Swaraj handed over the cheque as Indias contribution to the core
voluntary budget of UN Women (United Nations Entity for Gender Equality and the Empowerment of
Women) to Under-Secretary General and Executive Director of UN Women, Phumzile Mlambo-Ngcuka for
the 2014-2015 financial year.
The contribution constituted the fifth installment of Indias multi-year pledge to provide core predictable
funding to UN Womens resources and takes Indias existing total contribution to $5 million to the UN body.
Ms. Swaraj reaffirmed the Indian governments steadfast commitment to the goals of UN Women, including
gender equality, gender mainstreaming and highlighted the important role played by UN Women in the
formulation of the post-2015 Development Agenda, including the use of information and communication
technology for development.
India is one of the founding members of the Executive Board of the UN Women, and is presently serving on
the UN Womens Executive Board.

INDIAN COP WINS UNS INTERNATIONAL FEMALE POLICE PEACEKEEPER AWARD

35

Inspector Shakti Devi of the Jammu and Kashmir Police, who is currently deployed in the UN Assistance
Mission in Afghanistan (UNAMA), has been named recipient of the International Female Police Peacekeeper
Award 2014 by the UNs Police Division for her exceptional achievements with the UN mission in
Afghanistan, including her efforts towards helping victims of sexual and gender-based violence.
Ms. Devi has contributed to the improvement of the status of female police and has effectively helped the
police of Afghanistan move towards achieving their goals of fully adopting democratic principles of policing.
India is the largest contributor to UN peacekeeping operations, having contributed more than 170,000
troops in 43 out of 69 peacekeeping missions mandated by the United Nations Security Council so far. The
UN also owes India $110 million, the second highest outstanding payment to any country, for costs relating
to peacekeeping operations and troops.

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INDIA-UK
BRITAIN, IRELAND INKS VISA DEAL TO BENEFIT CHINESE, INDIAN TRAVELLERS

Britain and Ireland on Monday inked a Memorandum of Understanding (MoU) on visa cooperation to allow
Chinese and Indian visitors to travel to the two island nations on a single visa.
The landmark visa deal will help Britain and Ireland share data and exchange information to inform and
determine immigration decisions and allow visitors from India and China to travel more easily between the
two countries. China and India are both key markets for British and Irish tourism and more than 10,000
visitors are expected to use the scheme.

INDIA-NORWAY
INDIA, NORWAY SET TO CLINCH ACCORD ON N-SAFETY

India and Norway are expected to reach an agreement on nuclear safety measures during the upcoming
visit of President Pranab Mukherjee to Oslo the first-ever by an Indian head of State to that country.
Mr. Mukherjee will be the first Indian Head of State to visit Rovaneimi, the official home of Santa Claus.
Rovaneimi is promoted as a destination where you can meet Santa Claus every day.
Referring to Indias entry into the Arctic Council (which coordinates Arctic policy) as an observer in May
2013, Navtej Sarna, Secretary (West) in the External Affairs Ministry, said New Delhi was not working with
the objective of exploiting Arctic resources. Indias focus is scientific and technological.

INDIA- VIETNAM

Prime Minister Narendra Modi gave a commitment to modernise Vietnams defense and security forces
after talks with his counterpart Nguyen Tan Dung, in New Delhi.
The two countries signed several agreements, including a memorandum of understanding for exploration by
ONGC Videsh Limited in two blocks in the South China Sea. While neither of the two blocks signed for is in
the disputed part, Indias exploration has irked Beijing in the past.
Mr. Modi also announced the operationalisation of the $100 million line of credit for Vietnams defense
purchases. Vietnam was keen to buy four off-shore patrol vehicles to start with. This was especially
significant as they would be deployed to police the South China Sea, areas of which were under dispute with
China.

INDIAN DIASPORA
OBAMA APPOINTS INDIAN-AMERICAN ATTORNEY TO DOJ

36

Vanita Gupta (39), an Indian-American attorney described as a unifier and consensus builder, who has
done trailblazing work as a civil rights lawyer, has been appointed by the administration of U.S. President
Barack Obama to a senior role in the Department of Justices Civil Rights division.
On Wednesday, the Department of Justice (DoJ) announced that from October 20, Ms. Gupta would serve
as Principal Deputy Assistant Attorney General and Acting Assistant Attorney General at the division
Until now serving as the Deputy Legal Director at the American Civil Liberties Union, Ms. Gupta hails from
Sahibabad, Uttar Pradesh.

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MEMORANDUM OF UNDERSTANDING (MOU) FOR COOPERATION IN THE FIELD OF OIL

AND GAS BETWEEN INDIA AND MOZAMBIQUE

The Union Cabinet chaired by the Prime Minister gave its approval for signing of a Memorandum of
Understanding (MoU) for cooperation in the field of oil and gas between India and Mozambique for a
period of five years.
Offshore gas discoveries in 2010 in two adjacent offshore blocks have seen the emergence of Mozambique
as a significant hydrocarbon rich nation. Mozambique is strategically located near India and is ideally suited
for bringing natural gas to India at market determined price. Participation of Indian energy companies in the
project will facilitate access to LNG for the growing Indian gas market.
The MoU seeks cooperation in the areas of upstream and downstream oil and gas sector; encourage and
promote trade and investment between the parties or through their affiliated companies; promote dialogue
and consultations among all concerned parties with regard to sharing of information; enhance capacitybuilding, including forging closer cooperation between research and training centres and intensifying
technology transfer, conduct of applied research and development activities and installation of
demonstration facilities.

RATIFICATION OF THE NAGOYA-KUALA LUMPUR SUPPLEMENTARY PROTOCOL ON

LIABILITY AND REDRESS TO THE CARTAGENA PROTOCOL ON BIO-SAFETY BY INDIA

The Union Cabinet chaired by the Prime Minister gave its approval for ratifying the `Nagoya-Kuala Lumpur
supplementary protocol on liability and redress to the Cartagena protocol on bio-safety` by India.
The proposed approach provides for an international regulatory framework in the field of liability and
redress related to living modified organisms that reconciles trade and environment protection. The
Supplementary Protocol would promote sound application of biotechnology making it possible to accrue
benefits arising from modern biotechnology while minimizing the risk to the environment and human
health.
The proposal will protect the interests of all Indians without distinction or differentiation.
The proposal is based on the principles of the Convention on Biological Diversity and Cartagena Protocol on
Bio-safety, both internationally negotiated and binding legal instruments. It will promote innovation in
agricultural and healthcare research and development that is safe for the environment and human beings.

ABOUT THE PROTOCOL

37

The Nagoya-Kuala Lumpur Supplementary Protocol on Liability and Redress is a supplementary protocol to
the Cartagena protocol on Bio-safety. After several years of negotiations, the Parties to the Cartagena
Protocol on Bio-safety adopted the Supplementary Protocol on 15 October 2010, in Nagoya, Japan.
The Supplementary Protocol aims to contribute to the conservation and sustainable use of biodiversity by
providing international rules and procedures for liability and redress in the event of damage resulting from
living modified organisms (LMOs).
The Supplementary Protocol fulfils the commitment set forth in Article 27 of the Cartagena Protocol to
elaborate international rules and procedures on liability and redress for damage to biodiversity resulting
from trans-boundary movements of LMOs. It is also inspired by Principle 13 of the 1992 Rio Declaration on
Environment and Development which calls on States to "cooperate in an expeditious and more determined
manner to develop further international law regarding liability and compensation for adverse effects of
environmental damage caused by activities within their jurisdiction or control".
The Supplementary Protocol takes an 'administrative approach' whereby response measures are required of
the operator (person or entity in control of the LMO) or the competent authority if the operator is unable to
take response measures. This would cover situations where event of damage to biological diversity has
already occurred, or when there is a sufficient likelihood that damage will result if timely response
measures are not taken.
However, countries can still provide for civil liability in their domestic law and the first review of the
Supplementary Protocol (five years after its entry into force) will assess the effectiveness of domestic civil
liability regimes. This could trigger further work on an international civil liability regime.
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The Supplementary Protocol is the second liability and redress treaty to be concluded in the context of
multilateral environmental agreements next to the 1999 Protocol on Liability and Compensation to the
Basel Convention on the Trans-boundary Movement of Hazardous Wastes.

TRACING INDIAS BLACK MONEY- ONLY CASE-SPECIFIC INFORMATION CAN BE

DISCLOSED: SWITZERLAND

38

Amid a debate on disclosure of names of suspected black money holders, Switzerland has said that
information exchanged under the Swiss-India tax treaty cannot be disclosed "in principle" to a court or any
other body outside the proceedings of a "specific and relevant" case.
The comments come at a time when a Supreme Court-monitored Special Investigation Team is probing
alleged stashing of black money by Indians abroad, including Swiss banks. Switzerland, long accused of
being a safe haven for illicit funds, has promised to extend assistance to India and reply to requests for
information in a "time-bound" manner on cases of alleged tax evasion and financial crimes, or provide a
reason if no information can be shared.
The protocol to Swiss-Indian DTA (Double Taxation Agreement) states that any information received "by a
contracting state shall be treated as 'secret' in the same manner as information obtained under the
domestic laws of that state." The treaty further provides that any such information "shall be disclosed only
to persons or authorities (including courts and administrative bodies) concerned with the assessment or
collection of (information), the enforcement or prosecution in respect of, or the determination of appeals in
relation to the taxes... or the oversight of the above." The treaty states that "such persons or authorities
shall use the information 'only' for such purposes. They may disclose the information in public court
proceedings or in judicial decisions."
Accordingly, the information exchanged under the terms of the DTA can be provided to a Court in situations
where it is dealing with a specific case related to tax matters for which this information is relevant.
Conversely, information cannot be disclosed in principle outside of such proceedings.

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WORLD AFFAIRS
ISRAEL PALESTINE CONFLICT
GAZA RECONSTRUCTION CONFERENCE IN CAIRO

An international donors conference to help Gaza rebuild after the devastating, 50-day Israel-Hamas war
this summer was held in Cairo. The United States promised $212 million in immediate assistance to the
devastated Gaza Strip yet urged Palestinians and Israelis to return to peace negotiations to break a cycle of
violence that has yielded three wars in six years.
Mr. John Kerry, United States Secretary of State, praised Egypt for organizing the conference, Israel for
pledging to facilitate greater Palestinian economic opportunities and the U.N. for creating a monitoring
system so that aid to Gaza isnt plundered by the militant group Hamas or used to threaten the Jewish
states security.
The latest Hamas-Israel was the most ruinous of three wars between Hamas and Israel since 2008, leaving
more than 2,000 Palestinians, mostly civilians killed. Another 10,000 were wounded, and some 100,000
people remain homeless.

UN CRITICISES ISRAEL FOR SETTLEMENT PLANS

The political head of United Nation said Israels new settlement plans in East Jerusalem threaten the
viability of the future Palestinian state, urging meaningful negotiations toward the goal of a two-state
solution.
Recent heightened tensions over unilateral actions, provocations and access restrictions at holy sites in
Jerusalem are contributing to a volatile situation. Tensions revived between Arabs and Jews over Israels
announcement to build some 1,000 new settlement units in East Jerusalem.

IS (ISLAMIC STATE)
TURKISH PARLIAMENT VOTES FOR MILITARY ACTION AGAINST IS

Turkeys parliament voted to authorize the government to take military action in Iraq and Syria, but it
remains unclear what actions the NATO member might take to support the US-led coalition fighting the
Islamic State group. The Turkish decision came nearly two weeks after a U.S.-led coalition began
airstrikes against Islamic State group positions in Syria. The group controls large areas of Syria and Iraq.
Syrias stand: Syria has warned Turkey that deploying troops inside its borders will be seen as an
aggression. Turkey has been one of the strongest backers of Syrian opposition groups trying to remove
President Bashar Assad from power. Meanwhile, Syrian air force has destroyed two of three jets seized
and test flown over Aleppo by the Islamic State group.

HEAVY FIGHTING HITS KOBANI, A KURDISH SYRIAN TOWN

39

Kurdish fighters battled Islamic State fighters near a Syrian Kurdish town along the border with Turkey as
Turkish Prime Minister said his country will prevent the fall of Kobani. The Kurdish town and its surrounding
have been under attack since mid-September, with militants capturing dozens of nearby Kurdish villages.
The assault, which has forced some 160,000 Syrians to flee, has left the Kurdish militiamen scrambling to
repel the militants advance into the outskirts of Kobani, also known as Ayn Arab, the smallest of three
Kurdish-controlled areas in northern and north-eastern Syria.
Airstrikes were conducted overnight near Kobane, the second day in a row of aerial sorties against the
jihadists, who nevertheless continue to advance. The United States is backed by five Arab states in its
mission in Syria.

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Meanwhile in Iraq, Islamic State fighters were engaged in battles against Kurdish peshmerga forces in the
north-west near Sinjar and also with the Iraqi army in the western province of al-Anbar.

UKRAINE CRISIS
FIGHTING RAGES IN UKRAINE

Pro-Russian rebels pressed to seize a key airport in eastern Ukraine despite fierce resistance by government
forces. The airport, located just north of Donetsk, the largest city in the east, gives the Ukrainian forces a
convenient vantage point to target rebel positions. Its loss would be a major blow to Ukraine and would also
allow the rebels to receive large cargo planes with supplies in addition to truck convoys from Russia.
Fighting for the airport has intensified, threatening to derail the truce declared September 5. A follow-up
deal which called for both parties to pull back their artillery to create a buffer zone hasnt been
implemented.
Residential areas in Donetsk have been caught in the crossfire. At least 3,660 people have been killed over
six months of fighting, according to U.N. estimates.

MOSCOW, KIEV CLINCH DEAL ON GAS SUPPLY

Moscow and Kiev clinched a multi-billion dollar deal that will guarantee that Russian gas exports flow into
Ukraine and beyond to the European Union throughout the winter despite their intense rivalry over the
fighting in eastern Ukraine.
Russian President Vladimir Putin and his Ukrainian counterpart, Petro Poroshenko, agreed on the broad
outline of a deal, but financial issues, centering on payment guarantees for Moscow, had long bogged down
talks.
But with each week, the need for a resolution becomes more pressing, since winter is fast approaching in
Ukraine, where temperatures often sink below freezing for days. Russia cut off gas supplies to Ukraine in
June after disputes over Russias annexation of Crimea in March. Ukraine since then has been relying on gas
transfers from other European countries and its own reserves.

CHINA
DONGFENG-31B

China has test fired a new variant of its 10,000 km range missile, sharpening its nuclear deterrent in the
wake of the Pivot to Asia doctrine of the United States, which aims to bolter force levels around Chinas
periphery.
China has already tested Dongfeng-31A, which also has a 10,000 km reach, capable of targeting Europe and
the West Coast of the United States. But the latest version may carry additional nuclear punch because it
may be capable of mounting multiple warheads, unlike its earlier variant which can strike with only three
warheads.
Chinese state media had earlier reported that Beijing was also working on the Dongfeng-41 system, which
would have a 12,000 km range, capable of targeting all parts of the U.S.

CHINA-RUSSIA GAS DEAL

40

China and Russia have begun implementing their $400 billion mega-gas deal a strategic project that
would allow Moscow to lower its dependence on the European market, and open prospects of tapping the
growing energy demand in the Asia-Pacific, with Beijing as the star consumer.
Russias eastward shift is anchored by the agreement to supply China 38 billion cubic meters of gas every
year for 30 years. Gas flows will commence in 2018 after the lengthy Siberia Power Pipeline, having both
Russian and Chinese components, gets completed.
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Pipeline will start in northeast Chinas Heilongjiang province and terminate in Shanghai, Chinas premier
commercial and industrial hub. Construction is expected to start next year, covering three main segments
before the pipeline terminates in Shanghai three years later. Work on Russian segment of the pipeline,
linking Siberias Kovyktin and Chayandin gas fields with the eastern port city of Vladivostok a distance of
4,000 km commenced last month.
The Russians are planning to invest $55 billion in building infrastructure and further exploring Siberias
energy resources, to consolidate their outreach to Asia via China.

HONG KONG TALKS

The assertion by the anti-Occupy forces followed signals that the Occupy Central Movement is flagging
or, at least, may have entered review mode. Student protesters dropped one of their core demands
seeking Mr. Leungs resignation and agreed for talks.
The apparent reversal that the protesters seemed to have suffered also followed resentment among
sections of the business community, as well as ordinary citizenry, inconvenienced by the chaos that that
followed the Occupy Central movement.
Representatives of Small and Medium Enterprises (SME) point out that retail as well food and beverages
business has taken a hit, including a 70 per cent drop in restaurant bookings.
The protesters want Beijing to reverse its decision that all candidates in an inaugural 2017 election for
chief executive must be approved by a committee of mostly proBeijing elites and are seeking open
nominations. The Chinese government has committed itself to universal suffrage, but has also stated, as
part of the Basic Law formulated in 1990, that a nominating committee will vet the candidates, based on
extensive consultations for the 2017 CEs election.
Chief Executive Leung Chun-Ying told reporters that the government wont let the public nominate
candidates to run in inaugural direct elections to succeed him in 2017, as demanded by thousands of
protesters occupying thoroughfares across the city. But he added that theres room to discuss how to
form the key 1,200-member nominating committee.

NIGERIAS TRUCE IS SHAKY

Days after Nigerias military raised hopes with the announcement that Islamic extremists had agreed to a
ceasefire, Boko Haram is still fighting and there is no word on the fate of the 219 schoolgirls held
hostage for six months.
Some 276 girls and young women writing science examinations were kidnapped from a government
boarding school in Chibok in the early hours of April 15. Dozens escaped by themselves in the first couple
of days but some 219 remain missing.
Despite the ceasefire announced by the military, the Islamic insurgents have attacked villages and a
town in the northeast. People who escaped from Bama, a town in a part of northeastern Nigeria where
Boko Haram has declared an Islamic caliphate, say hundreds of residents are being detained for allegedly
breaking the groups strict version of Shariah law and are forced to become Muslim, forced into marriage
and raped.
Escaping residents report dozens more girls and young women have been abducted by Islamic
extremists in northeast Nigeria, raising doubts about an announced cease-fire and hopes for the release
of 219 schoolgirls held captive since April.
Thousands of people have been killed and hundreds of thousands forced from their homes in the fiveyear uprising to establish an Islamic state in Nigeria, Africas most populous nation of some 160 million
people divided almost equally between Muslims and Christians.

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