IASbaba Current Affairs Magazine-June 2017 PDF

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PREFACE
With the present shift in examination pattern of UPSC Civil Services Examination, General
Studies II and General Studies III can safely be replaced with Current Affairs. Moreover,
following the recent trend of UPSC, almost all the questions are issue-based rather than news-
based. Therefore, the right approach to preparation is to prepare issues, rather than just
reading news.
Taking this into account, our website www.iasbaba.com will cover current affairs focusing
more on issues on a daily basis. This will help you pick up relevant news items of the day
from various national dailies such as The Hindu, Indian Express, Business Standard, LiveMint,
Business Line and other important Online sources. Over time, some of these news items will
become important issues.
UPSC has the knack of picking such issues and asking general opinion based questions.
Answering such questions will require general awareness and an overall understanding of the
issue. Therefore, we intend to create the right understanding among aspirants How to
cover these issues?
This is the 25th edition of IASbabas Monthly Magazine. This edition covers all important issues
that were in news in the month of June 2017.
Value adds from IASbaba- Must Read and Connecting the dots.
Must Read section, will give you important links to be read from exam perspective. This will
make sure that, you dont miss out on any important news/editorials from various
newspapers on daily basis.
Under each news article, Connecting the dots facilitates your thinking to connect and
ponder over various aspects of an issue. Basically, it helps you in understanding an issue from
multi-dimensional view-point. You will understand its importance while giving Mains or
Interview.
Must Read Articles: We have not included them in the magazine. Those following DNA on
daily basis may follow it- http://iasbaba.com/babas-daily-news-analysis/
Push yourself, no one else is going to do it for you
All the Best
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INDEX
NATIONAL (Page No. 5-71)
Twenty world- class "Institutions of Eminence" to be established
Better Evaluation System
Preventive Detention Law
Political funding: Maintaining transparency
Missing women in India's labour force
India-EU FTA- what ails it and way forward
Indias neutrino opportunity
Providing safety-net: Pension for all
Understanding the agitating farmers
A calibrated approach to reforms
A shift towards Electric Vehicles(EVs)
Harnessing wind power through Kites
Start Up India Pan- Taking it forward
Indias Energy Transformation
Can Big Data Analytics lead to eColonisation of India
Worsening state finances
Creation of Gorkhaland: A long-standing demand
Transforming India into a knowledge-based economy
Women farmers in India needs attention
Urban agriculture: Building food-smart cities
Anti-defection law- Faces a new threat
Blockchain Voting
Smart City Mission: Challenges and Way ahead
What ails Indian education system?
Breach of privilege-It's time to codify the rules
Making Indian companies cybersecure:
INTERNATIONAL (Page No. 72-98)

Re-engaging with Europe
Understanding 2017 Qatar diplomatic crisis
SCO membership: Challenges & Opportunities
Redefining India-Russia relationship
China's inroads into Myanmar
India's US policy in the age of Trump
Land grab by China in Himalayan region
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20 years of BIMSTEC: Hopes and Apprehensions

India-US trade potential
PM Modi's visit to US
HEALTH (Page No. 99-104)

Making prescription of generic drugs mandatory
New Rules on Antibiotic Resistance by WHO
ENVIRONMENT (Page No. 105-110)

President Trump withdraws U.S. from the Paris agreement
Rivers as a living entity: Implications and Challenges
ENERGY (Page No. 111-113)

Nuclear electricity: Expensive, Hazardous and Antithetical to equity
ECONOMY (Page No. 114-123)

The growth track is near
Reorienting Indias trade policy
Global economic slowdown: Where does India stands?
GST: Way ahead
ECONOMICS (Page No. 124-128)

Need of Parliamentary Budget Office
Resolving the NPA issue: Key Challenges
INTERNAL SECURITY (Page No. 129-134)

National Security: Threats and Challenges
Indian Defence Manufacturing
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NATIONAL
TOPIC:
General Studies 2
Issues relating to development and management of Social sector or Services
relating to Health, Education, Human Resources.
Twenty world- class "Institutions of Eminence" to be established

In news:
In a bid to improve the quality of education in India and provide better facility to
students, the government has planned to set up 20 world-class institutions of eminence
around the country. The plan is to have 20 world-class universities10 private and 10 public
with each requiring an investment of at least Rs. 5,000 crore over the next few years.
While a select group of existing public institutions will be upgraded to the world class
status, both existing and upcoming private institutions can bid for the tag.
The institutions of eminence will have greater autonomy compared to other higher
education institutions. They can be free from the clutches of the overarching
regulatory regime of bodies such as University Grants Commission (UGC), AICTE, and
Medical Council Of India (MCI).
More autonomy in designing syllabi and deciding fee structure. Teachers would also
be allowed to take up consultancy work among others.
Public institutions will get financial support from the human resource development
ministry.
The private institutions under the project will enjoy two key freedoms: one, they can
offer as much salary as they want to their teaching staff; and two, the course fee can
be completely market linked. The government institutions, however, will have to
follow the UGC scale of pay for permanent employees. For contractual staff
including professors on contract, they too can pay as much as they wish.
If a new institutions fails to make enough progress in the first 18 to 20 months, then
the government will cancel its candidature. And the disqualified institution will be
replaced from a reserve list of institutions.
Higher education in India is in deep crisis:

Most Indian graduates are unemployable because of poor quality of higher
education.
Research in both the sciences and the humanities is generally below par.
Even elite Indian universities do not make it to the very top of global listings.
Disparities in accessibility to higher education in terms of economic class, gender,
caste, ethnicity etc.
Reasons behind poor standard of higher education in India:
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An excess of regulation in the name of good governance.

Absence of linkage between research institutes and universities. In the early years
after independence, a conscious decision was made to keep research institutes
separate from universities which were meant to focus only on teaching so that
scarce resources could be directed in a targeted manner to stand-alone research
institutes. While some of Indias scientific research centres, such as the Tata Institute
of Fundamental Research, Inter-University Centre for Astronomy and Astrophysics,
and the Indian Institute of Science have done good work, the universities have
suffered considerably. The separation of research from teaching provides very little
incentive to faculty for becoming scholars, producing a poor generation of
academics.
Politicization of public institutions.
Way ahead:
If these institutions develop and deliver on suggested lines, eventually driving
innovation and economic growth, they could potentially mark the beginning of a new
chapter in Indias nation-building exercise. If not, they will be the missed opportunity
that sets back Indias aspirations to be a great power. China makes for a good example.
In an effort to revamp its tertiary education sector China marked out elite institutions
for generous state funding, and changed its focus from quantity-oriented deliverables
such as enrolment numbers to quality-oriented deliverables such as citations in
respected peer-reviewed journals. The results began to show in less than a decade. By
2008, it was already churning out the largest number of PhDs in the world.
Liberalising education. As the government sets up these institutions (institutions of
eminence) the fundamental structural problems related to over-regulation that
continue to hobble the Indian education sector needs to be addressed.
Establishing a link between research institutions and education sector. A commonly
cited example of how research universities have incubated innovative ecosystems
around them is that of Stanford University and Silicon Valley. Similarly, across the
world in Israel, Technion University was the catalyst that sparked the start-up
nation. Thus the new set of institutions must be structure in a way so as to emerge
as research centres as well.
An inter-disciplinary approach must be adopted by these institutions.
For any development in higher education to bear fruit, it must be supported by the
strengthening of primary education. An important reason why Chinese higher
education has galloped ahead of India is that it strengthened its primary and
secondary education systems first, which India is only now attempting to achieve.
T.S.R. Subramanian committee has recommended that top-rated educational
institutions in India be given greater autonomy including the freedom to fix salaries
of their staffa break from the controlled pay structure decided by bureaucrats
sitting in New Delhi or in state capitals.
Financial autonomy to institutions should be linked to their performance as
recommended by the Subramanian committee. The institutions on the upper end of
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the scale of performance must be given total autonomy in all respects, including
fixing faculty salaries, fee structure, entering into collaborations, etc.
Regional and rural-urban disparities must be addressed while selecting institutions
to be tagged as "institutions of eminence".
GIAN(Global Initiative of Academic Networks GIAN) that brings talent pool of
scientists and entrepreneurs, internationally must be engaged with the institutes of
Higher Education in India so as to augment the countrys existing academic
resources, accelerate the pace of quality reform, and elevate Indias scientific and
technological capacity to global excellence.
Conclusion:
Development in educational sector is very crucial for the future of India and next
generations in India. The attempts of improving the educational sector will always be
beneficial to all the people living in India and mostly, to the children as good education
has a strong link with better jobs and opportunities.
The upcoming institutions are a step closer to a better India and its better future. A well-
thought decision should be made with regarding the issues in the educational sector
just like the decision of approval of word class institutions in India.
Connecting the dots

Indian higher education is in need of major reforms if India has to reap the benefits
of its huge demographic dividend. In this light discuss major reforms being proposed
by the government and how helpful such steps will be in improving quality of higher
education in India.
Also read: The state of education in India

http://iasbaba.com/2016/09/iasbabas-daily-current-affairs-5th-september-2016/
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Better Evaluation System

Introduction
Todays children are tomorrows citizens and they shape the future of the nation. Hence
it is important that their development is sound and scientific from all fronts. Every year
with annual results of 10th and 12th standard and the divide between rural-urban, haves-
have notss are crucial.
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Issue:
The use of moderation by the Central Board of Secondary Education while finalising
Class 12 marks under a Delhi High Court directive poses the immediate question of
how various State boards of education that have not adopted the practice will
respond.
It also points to the long-standing challenge of achieving comparability while
assessing students for undergraduate studies from different systems.
Some boards have already published the results without moderation, while others
will resort to the practice, making it necessary for college authorities to make offsets
while fixing admission criteria.
Another substantive concern is the pattern of testing procedures placing high
importance on a single external examination, without an assurance to all students
that the same tasks are being assessed on the same standards.
Across-the-board use of tools such as moderation also raises questions on the actual
scores.
It is extraordinary that tests for non-quantitative subjects such as English and
Political Science yield perfect scores of 100% in the CBSE examination and
elsewhere, giving the impression that the questions require to be answered only
within a limited framework laid out in a textbook, leaving little scope for creative
responses that reflect the quality of teaching in the classroom.
Concerns:
Moderation of marks under the CBSE policy has been followed partly to offset the
ambiguity of questions and any errors, and to achieve parity in the evaluation
process and the annual pass percentage.
The Central Board recently decided to do away with the practice, in consultation
with State boards, and sought the assistance of the Human Resource Development
Ministry to make a complete shift.
This is something the Ministry should take up on priority, since a consensus among
the States would eliminate litigation on grounds of uneven competition which is
what invited judicial intervention on the issue of moderation this year.
It is also relevant to point out that the emphasis on a single external examination
has heavily influenced the learning process, tailoring it almost entirely to score
marks. Built on a foundation of weak primary education, it does little to improve
outcomes for the majority of students at the secondary school level.
Learning Levels and impact:

The Annual Status of Education Report, 2016 found, for instance, that among rural
students in Class 8, only 43.3% could correctly solve a simple three-digit by one-digit
division problem.
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What this makes clear is that encouraging performance on enrolment of students

even in some of the backward States is not the same as achieving high outcomes in
actual learning.
There is also the issue of access to private tuitions for a better examination score,
which affects less-privileged students. It is against the depressing backdrop of such
distortions that Indias school system must prepare an evaluation mechanism for
students.
Reform should recognise the role of the teacher in ensuring genuine learning and
encouraging creativity.
An external test that evaluates sound learning is the answer, although the challenge
is not to stifle educational innovation that individual State boards are capable of
Conclusion:
Policies should be done with due consultation and field expertise. Judicial intervention
in the interest of a particular section is vested and narrow. It is important to formulate
policies that are time tested and grants parity to the entire nations aspirants especially
in education and future deciding courses.
Connecting the dots
Critically discuss the impact of judicial interventions in education and course related
aspects. Does it amount to judicial overreach? Elaborate.
TOPIC:
General Studies 2
Important aspects of governance, transparency and accountability, egovernance
applications, models, successes, limitations, and potential; citizens charters,
transparency & accountability and institutional and other measures.
General Studies 3
Challenges to internal security through communication networks, role of media
and social networking sites in internal security challenges
Preventive Detention Law
Introduction
Law should be such that a layman can comprehend and be used for the welfare and
regulation of a law abiding society. But sometimes misuse of law can have wider
implications. The issue with preventive detention law and misuse of its provision is a
cause of concern.
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Issue:
Preventive detention laws in the country have come to be associated with frequent
misuse.
Such laws confer extraordinary discretionary powers on the executive to detain
persons without bail for a period that may extend to one year and courts tend to
review them on the touchstone of strict adherence to the prescribed procedure.
Sometimes they question the invocation of the draconian power when sufficient
provisions are available in the ordinary laws of the land.
Several States have a law popularly known as the Goondas Act aimed at preventing
the dangerous activities of specified kinds of offenders.
In a recent order, the Supreme Court has questioned the use of words such as
goonda and prejudicial to the maintenance of public order as a rhetorical
incantation solely to justify an arbitrary detention order.
It struck down the detention of a man who had allegedly sold spurious chilli seeds in
Telangana, holding that the grounds of detention were extraneous to the Act.
This detention order has captured what is wrong with the frequent resort to
preventive detention laws.
It stated that recourse to normal legal procedure would be time-consuming and
would not be an effective deterrent against the sale of spurious seeds.
Therefore, it claimed, there was no option but to invoke the preventive detention
law to insulate society from the persons evil deeds.
The court rightly termed this as a gross abuse of statutory powers.
Goondas Act and concerns:

The Goondas Act is meant to be invoked against habitual offenders, but in practice
it is often used for a host of extraneous reasons.
The police tend to use it to buy themselves more time to investigate offences and
file a charge sheet. At times, it is used merely to send out a tough message.
For instance, four persons seen in video footage of women being molested in
Rampur in Uttar Pradesh were detained under the Act even though it was not clear
if they were habitual offenders.
There are times when preventive detention is overtly political.
The recent detention of four political activists in Chennai under the Goondas Act is
a direct result of a pathological tendency in Tamil Nadu to crack down on any kind
of political activity even remotely linked to the Sri Lankan Tamils issue.
The detention of Thirumurugan Gandhi, leader of the May 17 Movement, a pro-
Tamil Eelam group, and three of his associates under the Goondas Act is a brazen
violation of their fundamental rights and another instance of abuse of the law.
The case involved nothing more than violation of prohibitory orders to hold a candle-
light vigil in memory of Sri Lankan Tamils who died in the last phase of the civil war
in 2009.
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Those who authorise such preventive detention for flimsy reasons should
understand that prevention of crime needs an efficient system of investigation and
trial, and not draconian laws.
Conclusion:
Indias criminal justice system needs a reform from all fronts. It is further also true that
the reform should be holistic and transparent. Preventive detention laws and their
frequent misuse needs a permanent solution.
Connecting the dots

Analyse the impact preventive detention laws on the democracy. Establish a certain
bias in the implantation of these laws.
TOPIC:
General Studies 2:
Salient features of the Representation of Peoples Act
Political funding: Maintaining transparency
Why in news?
The Election Commission has raised concerns regarding the recent amendments to the
Representation of the People Act and Companies Act, effected through the Finance Bill,
with respect to political funding. The Bill has a provision that allows anonymous
donations by companies to political parties through electoral bonds. It is believed that
anonymity would protect a company from reprisal by rival parties. The Bill also removes
the limit on donations.
Electoral bonds:
Finance Minister, Arun Jaitley had introduced the electoral bonds in his Budget speech
this year. These bonds which will resemble a promissory note and not an interest-paying
debt instrument will be sold by authorized banks and can be deposited in notified
accounts of political parties within the duration of their validity.
Advantages of Electoral Bonds:
Transparency Although the donors using the bonds will be anonymous (their
names will not be disclosed in the audit report to be filed by the party), their records
will nonetheless be maintained by the banks. Issuance of electoral bonds would
ensure that only legitimate, tax paid, accounted money comes into the political
system.
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Secrecy This is particularly important for the donors in the sense that disclosing
their identity can result in them facing attacks from rival or opposition groups.
Earlier, political parties had to disclose details of the donors who made contributions
above Rs 20,000. The provision made it possible to track the identity and volume of
contributions received by every political party.
Promoting digitization This is one of the steps forward in the Digital India
Campaign. Earlier, the donors used to donate in cash in fear of losing anonymity. As
this was not curbed, huge chunks of black money flew into the party funds. But
through creation of electoral bonds, donors could make digital payments and yet
keep their identity secret.
Amendments proposed in Finance bill:

The RP Act amendment exempts political parties from declaring donations received
through the electoral bonds route,.
The Companies Act has been updated to remove the ceiling on corporate donations
to political parties. The Section 182(3) of the Companies Act has been thinned to
exempt companies from revealing party-wise details of their political donations in
their profit and loss statement. The Commission wants the government to reinstate
the obligation to disclose party-wise details.
Concerns raised by Election Commission:

EC asked the government to review the amendments on the grounds that they would
undermine transparency in funding of political parties.
Argument:
In a situation where the contribution received through electoral bonds are not
reported, on perusal of the contribution report of political parties, it cannot be
ascertained whether the political party has taken any donation in violation of
provision under Section 29(b) of the RP Act which prohibits the political parties from
taking donations from government companies and foreign sources.
The Companies Act has been diluted to lift the cap on corporate donations to
political parties. Earlier, a company could not contribute more than 7.5% of its net
profit over the last three years to parties. The EC has warned that the change in the
law opens up the possibility of shell companies being set up for the sole purpose of
making donations to political parties with no business of consequence. The law in
the previous form, the EC has argued, ensured that only profitable companies with
proven track record could provide donations to political parties.
Conclusion:
The opacity of political finance has been a significant part of the story of political
corruption in the country. In light of the ECs note of caution, the government needs to
revisit the changes it has made both in the RPA and the Companies Act.
Connecting the dots:
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Maintaining transparency in political funding has become an important issue

which remains unresolved. Discuss how recent amendments proposed to the
RP Act and the Companies Act makes the objective of maintaining transparency
in political funding elusive.
Also read: Political funding in India- towards more transparency?

http://iasbaba.com/2017/02/iasbabas-daily-current-affairs-4th-february-2017/
TOPIC:
General Studies 1
Social empowerment
General Studies 2
Welfare schemes for vulnerable sections of the population by the Centre and States
and the performance of these schemes
General Studies 3
Indian economy and issues related to planning, mobilization of resources, growth,
development and employment.
Missing women in India's labour force
Introduction:
A major problem with Indias labour force is the women are missing.
Indian women are not only staying out of the workforce, they are doing so in increasing
numbers across the board.
FLFP(Female labour force participation rate) is typically measured as the share of
women who are employed or are seeking work as a share of the working-age female
population.
The labour force participation rate (LFPR) for working-age women (15 years and older)
is abysmally low in India. At about 27%, it performs only slightly better than Afghanistan,
Pakistan and Saudi Arabia.
Census 2011 report

A total of 20.5% women were employed in the organized sector in 2011 with 18.1%
working in the public sector and 24.3% in the private.
The labour force participation rate for women across all age groups was 25.3 in rural
sector and 15.5 in urban sector compared with 55.3 and 56.3 for men in the rural and
urban sector respectively.
Why improving female LFPR is important?
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Ensuring gender justice and equality.

When women have productive, paying jobs, they have greater agency and that has
a positive impact on their men and children, which reflects in higher human
development indices.
In economic terms, a low LFPR slows down growth, while bringing women into the
fold is known to increase GDP.
Reasons behind low LFPR for women:

Young women are studying longer. Increasing numbers of women of working age
are enrolling in secondary schools.
As incomes have increased, women who worked only out of necessity have
retreated to their homes.
Safety issues & Harassment at work place: Women are more vulnerable to
exploitation and harassment at work in developing countries like India.
As agriculture has come under stress rural women have been squeezed out of their
farm jobs.
Educated urban women havent moved into the workforce in considerable numbers.
The pressures of urbanization.
Social norms and biases. In some communities, notably some upper castes, there
may be a stigma attached to women working outside the home especially if it
involves work considered menial.
Infrastructure issues
Low LFPR for urban women:

Urban women seem to be the big drag on womens overall LFPR despite the countrys
supposedly booming women-friendly services sector.
The lack of jobs overall, paired with men taking the lions share.
Another reason is the quality of jobs. Women want jobs that are well-paying, close
to their homes, and have flexible working hours, according to World Bank research,
and these are hard to come by.
Also, there are many jobs to which womens access is restricted by law, such as those
in mines and hazardous industries.
Gender segmentation:
The World Banks report finds a clear pattern of gender segmentation in both
manufacturing and services, where, for instance, about 90% of employees in female-
owned business in unorganized manufacturing are females.
Gender segmentation is a double-edged sword in the sense that just like female-owned
or female-led firms tend to hire more female workers, male owners and employers have
the same tendencies.
In the long run, such extreme levels of gender segmentation are obviously undesirable
and inefficient.
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Every cloud has a silver lining:

The World Banks report draws attention to an interesting insight: Women employers
tend to hire a significantly greater number of women.
This is partly the result of the kind of businesses that women set up in what is already a
heavily gendered labour force. For example, a beauty salon or a small tailoring unit
owned by a woman can be expected to mostly hire other women. Also, many of these
women-owned firms have only a single worker, which also skews the picture. But the
trend holds true even in medium-sized firms.
This lends credence to the idea that a targeted focus on womens entrepreneurship
might be the tool needed to improve the labour forces gender balance. It should be
seen as a catalysing opportunity that will bring more women into the workforce.
Way ahead:
A multifaceted response is required:
Regulatory changes example The Maternity Benefit (Amendment) Bill, 2016
Public awareness campaigns.
Improving law and order so that women feel secure outside their homes.
Encouraging entrepreneurship in women can be a good starting point.
Reshaping societal attitudes and beliefs about women participation in the labour
force.
Encouraging women entrepreneurship:

India currently ranks 70 out of 77 nations on the Female Entrepreneurship Index, but
moving up that index might not be as difficult as it seems. Certainly, long-term,
structural reforms are needed but in the short term there are a few examples from
around the world that indicate how targeted policy measures can deliver specific goals
even when the rest of the infrastructure (such as ease of doing business, access to credit
facilities and affordable childcare) may not be in place.
Case study
A good example here is Bangladesh, where the export-oriented garment industry has
brought a large section of women into the workforce. It ranks sixth among 54 countries
on women business ownership, while India is at the bottom of the pile along with Iran,
United Arab Emirates, Egypt and Saudi Arabia.
Conclusion:
India needs to take gender segmentation as an opportunity. We need to increase
women entrepreneurship. Thus women will be creating jobs and opportunities for
themselves, and bringing other women on board. In short, if Indias growth story has to
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translate into shared prosperity for all its people, then it cannot afford to have one half
of its population sit out.

Female labour force participation rate(FLFPR) in India is abysmally low and is
diturbingly declining. Outline reasons behind such a state, what should be done and
why is improving FLFPR important.
TOPIC: General Studies 2

Bilateral, regional and global groupings and agreements involving India and/or
affecting India's interests
Effect of policies and politics of developed and developing countries on India's
interests
India-EU FTA- what ails it and way forward
Background
In 2016, India terminated its bilateral investment treaties (BIT) with 57 countries.
This meant that the countries companies in India and Indian companies in those
countries can no longer make use of the controversial arbitration procedures called
ISDS.
However, lapse of these BITs will not necessarily have any visible impact on capital
flows into India as existing investments will retain the past protections. Though, the
lack of a BIT means the present FDI flows are certainly less than they could have
been.
India is now looking forward to replace the individual treaties with EU countries with
a single India-EU free trade agreement. However, these negotiations showed no
signs of closure.
But, a decision by European Court of Justice (ECJ) saying that European Commission
cannot alone finalise a FTA and it needs approval from national parliaments to have
a trade deal poses new challenges for India to have FTA with EU.
ECJ held that since the ISDS provision allowed the removal of the disputes from the
jurisdiction of the courts of an EU member state, it could not be done without the
consent of the member states.
BITs
They are often detrimental for developing countries, as they provide extensive
protection for foreign investors through the ISDS arbitration procedures.
Investors who believe they are effected by policy changes can claim billions from the
state. This gives businesses an undesirable power position.
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Investor-state dispute settlement (ISDS) mechanism- It is a system through which

individual companies can sue countries for alleged discriminatory practices.
Examples in India - In the recent past, many multinationals including Vodafone Group
and Sistema have dragged India to international arbitration, citing treaty violation.
The position now

India brought out a new model BIT in December 2015, intending to replace its
existing Bilateral Investment Promotion and Protection Agreements (BIPAs) and
future investment treaties.
This step was taken after India was dragged into international arbitration by foreign
investors who sued for discrimination citing commitments made by India to other
countries in bilateral treaties.
Model BIT
The revised model BIT will be used for re-negotiation of existing BITs and negotiation
of future BITs and investment chapters in Comprehensive Economic Cooperation
Agreements (CECAs)/ Comprehensive Economic Partnership Agreements (CEPAs) /
Free Trade Agreements (FTAs).
The new Indian Model BIT text will provide appropriate protection to foreign
investors in India and Indian investors in the foreign country, in the light of relevant
international precedents and practices.
It also states for a refined Investor State Dispute Settlement (ISDS) provision
requiring investors to exhaust local remedies before commencing international
arbitration along with other provisions such as national treatment, protections
against expropriation etc.
A BIT increases the comfort level and boosts the confidence of investors by assuring
a level playing field and non-discrimination in all matters while providing for an
independent forum for dispute settlement by arbitration. In turn, BITs help project
India as a preferred foreign direct investment (FDI) destination as well as protect
outbound Indian FDI.
The model excludes matters such as government procurement, taxation, subsidies,
compulsory licenses and national security to preserve the regulatory authority for
the Government.
India and EU- way forward

During PMs recent meeting to Germany, both the head of states agreed on the need
to resume India-European Union (EU) free trade agreement (FTA) talks.
These negotiations, covering trade, investment protection and intellectual property,
have remained deadlocked since 2013.
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However, the ECJ decision will impact the EUs ongoing FTA negotiations with India
among other countries. This has led to EU to consider other options
1. It could decide to discard the ISDS clauses in all its future FTAs. So, FTAs may be
negotiated where disputes between investors and states would be resolved using
the state-state dispute settlement (SSDS) mechanism. This can be a positive
outcome for India given its protectionist stand on BITs and ISDS.
2. EU could negotiate an FTA with ISDS provisions subject to the treaty being approved
by all EU member states. But there is very less chance of all EU member countries
ratifying such FTAs.
3. There is a possibility of negotiating an FTA without an ISDS provision but make ISDS
provisions a subject matter of an optional protocol provided this is permitted under
EU law. The optional protocol could theoretically bind the EUs partner country and
only those EU member countries that ratify it and thus give their consent to the
removal of investor-state disputes from their jurisdiction.
Introduction of Multilateral Investment Court (MIC)

It is an appellate mechanism provided for in EU-Canada FTA
Here, it aims to fight the vices of current ISDS system based on ad hoc arbitration.
It aims to bring in tenured-judges with expertise in international investment law (IIL)
unlike the party-appointed arbitrators, many of whom are not experts in IIL
It also envisions to usher in transparency in the ISDS system and introduce an
appellate mechanism to correct errors of law made by tribunals of first instance,
which is missing in the current ISDS system.
Challenges for India

Currently, the model BIT includes arbitration rules such as
A foreign investor to litigate in national courts for at least five years before
approaching an international tribunal.
Method of dispute resolution in the Indian Model BIT is based on ad hoc arbitration
through party-appointed arbitrators though the possibility of creating an appellate
mechanism is recognised.
However, now India has to reconsider its ISDS negotiating strategy with EU if it opts for
optional ISDS:
1. If India will allow foreign investors to submit cases to international tribunals without
first resorting to domestic courts as provided in Model BIT?
2. If India will accept the creation of a bilateral investment court system with tribunal
members being appointed for a five-year period and with an appellate mechanism?
3. If India is prepared to accept the proposal of setting up a MIC and submit to the
jurisdiction of such a court?
Conclusion
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It is a good opportunity for India to rethink the best way of approaching the ISDS. India
should actively engage with EU for the FTA negotiations and create a robust and
transparent international judicial system like the MIC that would protect foreign
investment from states any regulatory exploitation.

What do you understand by FTAs and what is its impact on Indias economy?
Recently, India and EU looked forward to finalise the FTA but ECJs ruling on
finalisation and arbitration needs a revised strategy. What are the challenges
pertaining to ECJ decision and way forward? Discuss.
TOPIC:
General Studies 3
Science and Technology- developments and their applications and effects in
everyday life Achievements of Indians in science & technology; indigenization of
technology and developing new technology.
Indias neutrino opportunity
What is INO?
The India-based Neutrino Observatory (INO) Project is a multi-institutional effort
aimed at building a world-class underground laboratory with a rock cover of
approx.1200 m for non-accelerator based high energy and nuclear physics research
in India.
It proposes to build an underground laboratory at Pottipuram in Bodi West hills of
Theni District of Tamil Nadu.
The initial goal of INO is to study neutrinos. Neutrinos are fundamental particles
belonging to the lepton family.
If the project is cleared, INO would house the largest magnet in the world, four
times more massive than the European Organization for Nuclear Research, CERNs
Compact Muon Solenoid (CMS) detectors magnet.
How the idea developed?

In 1960s and 1970s, a group of scientists from TIFR detected some unusual
experimental observations, the so-called Kolar events in the Kolar Gold Fields (KGF)
in Karnataka. But they still remain as science fiction, yet to be explained and
unravelled.
In 1980s, a possibility of neutrino observatory located in India was sowed and in
2002 initiation was made to make it a reality. Since then, fast-paced developments
have taken place in neutrino physics.
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Importance of studying neutrinos

Neutrinos are almost massless that travel at near light speed.
Their birth is as a result of violent astrophysical events such as exploding stars and
gamma ray bursts. Because of it, they are abundant in the universe, and can move
as easily through matter as we move through air.
They are very difficult to track down. If one holds their hand towards the sunlight
for one second, about a billion neutrinos from the sun will pass through it. This is
because they are the by-products of nuclear fusion in the sun.
Neutrinos hold the blueprint of nature. The INO aims to understand some of the
unsolved mysteries of the universe by understanding the neutrinos.
The issue
In March 2017, the National Green Tribunal (NGT) suspended the environmental
clearance (EC) granted to the INO and has ordered to file a fresh application for
clearance.
This was because new facts were found that the proposed INO lab was situated
about 4.9 km from Madhikettan Shola National Park in Idukki district of Kerala. Also,
as it is within 5km of the interstate boundary, it becomes a category A project.
This will require clearance under the Wild Life (Protection) Act, 1972 from the
National Board for Wild Life along with Environmental Clearances.
Even at the earliest, India shall be able to complete the construction of its
underground laboratory by 2022. This is way behind china which is expected to open
its neutrino observatory in 2019.
The procedural lapses and assumptions about the projects agenda have made a
project of this scale hard to make positive developments in field of scientific
research in India.
Challenges posed by INO?

According to its critics, the explosives used in construction are a threat to the highly
sensitive ecology of the Western Ghats.
It is also alleged that relevant radiation safety studies for carrying out the long
baseline neutrino experiment in the second phase of INO have not been done.
How are they being addressed?

The proposed excavation is planned to be carried out by a controlled blast, limiting
the impact of vibrations with the help of computer simulations.
The INO involves building an underground lab by accessing it through 2 km-long
horizontal access tunnel, resembling a road tunnel which are found extensively
across India.
In the second phase, the INO project initially had planned to be set up as a far
detector for the Neutrino Factory. But this may not be necessary as because of the
discoveries already being made in the field.
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Conclusion:
The 1500 crore investment is not a waste of money as some call it so. In past 50 years,
more than half the Nobel Prizes in physics have been awarded to basic research in
particle physics, including the 2015 Prize for the discovery of neutrino oscillations.
Many allegations about neutrinos being radioactive particles and INO doubling up the
storage of nuclear waste are undermining Indias efforts in the world to make pioneering
research in science. The public apprehensions in such projects are totally
understandable. Hence this requires more communication between the scientific
community and the public.
A project of such magnitude and such goal requires to generate public support,
especially from the younger ones.

There has been recently a mention of establishment of INO in India. What is INO and
what is its significance? Identify the challenges faced and possibility of mitigating
them.
TOPIC:
General Studies 3:
Indian Economy and issues relating to planning, mobilization of resources, growth,
Government Budgeting, Taxation & its impact
General Studies 2:
Providing safety-net: Pension for all
Issue:
According to a recent report by the World Economic Forum, the retirement savings gap
in India is estimated to escalate to $85 trillion by 2050. And as most people in India do
not have any kind of insurance and, as the population ages, it will also be pension less.
The retirement savings gap will not only affect the quality of life of retirees, but can also
pose macroeconomic challenges. As the proportion of retirees rises in the population, a
shortfall in retirement income will affect consumption and growth. It will also affect
fiscal sustainability as governments will have to spend more on retirees even in
countries that do not have a state-funded retirement system.
What is NPS?
NPS (National Pension System) is a defined contribution based Pension Scheme
launched by Government of India with the following objectives-
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To provide old age income

Reasonable market based returns over long run
Extending old age security coverage to all citizens
It is based on a unique Permanent Retirement Account Number (PRAN) which is allotted
to each Subscriber upon joining NPS.
What is required?
In order to improve financial security the policymakers should focus on three key
areas
Providing a safety- net pension for all.
Improving access to retirement plans
Encouraging initiatives to increase the rate of contribution.
Providing safety-net pension for all:

It should be the responsibility of the government to provide a pension income for all
citizens that acts as a safety net and prevents those who miss out on other forms of
pension provision from dropping below the poverty line.
Challenges:
Fiscal constraints. The biggest problem for India is that about 90% of the workforce
is in the unorganized sector and lacks proper access to retirement-saving
instruments.
The pension challenge in India will be fairly acute. According to the UN Population
Division, the share of population aged 60 or above will rise to 19% by 2050,
compared with 8% in 2010.
Even those who are investing may not be aware how much money they will need
after retirement and what it takes to attain that goal. People generally lack the
ability to make complex calculations and give more importance to their near-term
needs than a longer-term requirement like retirement saving.
Steps taken by government:

A pension regulator was established in 2003.
New government employees (except in the armed forces) have been moved to a
defined contribution-based National Pension System (NPS) from 2004.
The NPS was opened to all citizens on a voluntary basis in 2009 and the government
offers tax benefits to contributors.
Budget 2014-15 had announced such a scheme, post which Life Insurance
Corporation of India (LIC) had launched its single premium Varishtha Pension Bima
Yojana. That scheme collected over R7,000 crore and offered lifelong pension at
9.3% per annum, providing monthly pension of R500-5,000.
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Union finance minister Arun Jaitley, in his 2015 budget speech, announced steps for
creating a social security system. This included insurance and pension schemes,
mostly for the underprivileged segments of society.
Recent developments:
A new Rs 5,000-crore pension formula is in process. It is expected to benefit more than
five million central government employees. The new formula will calculate pension
based on the latest drawn salary for a particular post.
The new method was fixed by an empowered committee of secretaries (Ecos) headed
by secretary (pensions).
The seventh pay commission recommended that pension could be calculated by two
methods:
1. Pension would be 50% of the last salary and multiplied by 2.57.
2. An incremental method where pension was fixed at the last salary drawn with
adjustments of increments drawn in that particular pay band.
However, the incremental method was found to have lacunae as 20% of records were
found to be missing in various government departments, and officials felt this could lead
to litigation in future.
To avoid legal hurdles, the Ecos came up with the pay fixation method.
What more needs to be done?

Creating awareness: Both the government and the makers of retirement products
must place adequate emphasis on spreading awareness.
The pension products must be simple and easily available.
Technology can play a big role in making products available to savers.
In India, generating more employment in the formal sector will help address the
problem to some extent.
As the government lack fiscal space, we will need to work on increasing retirement
savings. Mobilizing savings for retirement could be a big opportunity as it would
provide long-term solution.

As per a UN report the share of population aged 60 or above will rise to 19% by 2050
in India. Discuss the challenges related to the pension for the aged population given
fiscal constraint of the government. Outline steps taken by government in this
regard. Also elaborate on what more needs to be done.
TOPIC:
General Studies 3:
Issues related to direct and indirect farm subsidies and minimum support prices
Inclusive growth and issues arising from it.
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General Studies 2:
Welfare schemes for vulnerable sections of the population by the Centre and States
and the performance of these schemes; mechanisms, laws, institutions and bodies
constituted for the protection and betterment of these vulnerable sections
Understanding the agitating farmers

In news: Farmers in two of the largest states of Madhya Pradesh and Maharashtra
have resorted to agitation. The protests have come soon after the Uttar Pradesh
government waived farm loans earlier this year, setting off similar demands in other
States. Farmers from Kerala in April, 2017 staged protests at Delhis Jantar Mantar
carrying skulls of fellow farmers who have committed suicides.
Farmers' demands:
Full waiver of farm loans.
Hikes in the minimum support price for agricultural produce.
Writing off of pending electricity bills.
Government's response:
Maharashtra government promised to waive farm loans of small and marginal
farmers worth about Rs. 30,000 crore and set up a State commission to look into
the matter of raising the MSP for crops. The Chief Minister also promised that
buying agricultural produce below their MSP would soon be made a criminal
offence.
Issues:
Indian farmers faced two consecutive years of drought in 2014-15 and 2015-16. Such
an occurrence two droughts in a row only happened five times since 1870, and
on three occasions in independent India: The mid-sixties, the mid-eighties and now.
Despite this rare farmer tragedy, we did not observe any farmer riots during the
recent drought years.
More than 5,500 farmer suicides were recorded in 2014 and the figure rose at least
40% in 2015, with Maharashtra contributing the most, according to the National
Crime Records Bureau.In Maharashtra, which witnessed the highest number of
farmer suicides between 2014 and 2015. Between 2014 and 2015, the state saw an
18 per cent jump from 2,568 to 3,030.
The National Crime Records Bureau attributed the reasons to crop failure, failure to
sell produce, inability to repay loans, and other non-agriculture factors such as
poverty and property disputes.
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Pic credits: http://timesofindia.indiatimes.com/india/farmer-suicides-up-42-

between-2014-2015/articleshow/56363591.cms
Why are farmers agitating?

1. Socio-economic reason:
The socio-economic explanation is that nobody wants to be a farmer anymore.
Because it is unremunerative, and relatively hard physical work. The children of
farmers aspire for a well-paying urban job. But the economy is not producing
enough jobs to accommodate the migrants from farmer families. This leads to
frustration, despair, unrest. Hence, the riots.
The rural-urban wage gap is wide at 45%, almost four times that of China. The share
of farming in GDP is under 14%, although more than half of Indias 1.25 billion people
still depend on it.
Demonetisation: The Centres decision to demonetise high-value currency notes in
November last year came as a severe jolt to farmers as cash is the primary mode of
transaction in agriculture sector.
2. Pricing of agricultural produce:
Steep fall in the prices of agricultural goods: The price slump, significantly, has come
against the backdrop of a good monsoon that led to a bumper crop. The production
of tur dal, for instance, increased five-fold from last year to over 20 lakh tonnes in
2016-17.
Irrespective of price fluctuations, MSPs are supposed to enable farmers to sell their
produce at remunerative prices. But procurement of crops at MSP by the
government has traditionally been low for most crops, except a few staples such as
rice and wheat. This has forced distressed farmers to sell their produce at much
lower prices, adding to their debt burden.
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In Madhya Pradesh, this year was the second year of a bumper onion crop with no
buyers. Farmers were forced to sell produce at for Rs 2 to 3 per kg as the state
government delayed announcing procurement price of Rs 8 per kg. 33% of onion
procured by the government rotted in absence of adequate storage facility
Our farm subsidy policy encourages the production of only low-value staples, such
as rice and wheat, and the output of fruits and vegetables that more Indians are
eating and farmers producing is not covered by the governments minimum
support price. Much of the farm distress sweeping India now stemmed from a glut
of potatoes, onion and tomatoes.
3. Agriculture still at mercy of monsoon rain:
For far too long, farming has been at the mercy of nature, especially the June-
September monsoon rain.
Agriculture in India is facing a tough time because of its dependence on the
monsoon. Over 50% of the crop area does not have any irrigation facility and almost
three-fourth of the annual rainfall is concentrated in four months a year, between
June and September. A deficit monsoon for two consecutive years in 2014 and 2015
and unseasonal showers ahead of the winter harvest in 2015 have hit the farmers
hard. Entire south India is bearing the brunt and Tamil Nadu is facing the worst
drought in 140 years.
4. Poor productivity:
The use of technology is patchy, and only one-tenth of every rupee the government
spends on rural areas goes to improving productivity which is why farmers in India
grow 46% less rice an acre than their Chinese counterparts.
5. Agricultural market- Yet not reformed:
The monopoly of traders over local agricultural markets is perpetuated by law, which
bars farmers from selling directly to consumers. This kills any chance of farmers
getting a fair price, lining the pockets of commission agents instead.
6. Politicisation:
The cardinal malaise lies in successive governments treating agriculture as a source
of votes and not an engine of growth
Why farm loan waivers is not a solution?

Farm loan waivers are only a temporary necessity to address the agricultural
crisis in the country and not a permanent solution to the problem, according to MS
Swaminathan, agriculture scientist and the architect of Indias Green Revolution in
the 1960s.
With poor extent of indebtedness and reported increase in suicides among farmers
in distress, loan waivers appear as the easy solution to the problems of the farming
sector. But it comes at a cost.
Issues related to loan waiver -
Farm loan waivers disrupt credit discipline among borrowers as they expect
future loans to be waived as well.
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It does increase the problem of moral hazard by penalising sincere and law abiding
farmers.
It gives rise to a tendency to default if the loan waivers are not a one-time solution
but keep appearing every decade.
It certainly leads to a deterioration in the performance of banks but also has an
impact on credit off-take and repayments. It was the same approach of writing off
loans of big corporate defaulters which has led to a situation of unprecedented NPAs
in the banking system.
But it also penalizes the small and marginal farmers who are more dependent on
non-institutional sources of loan such as the local moneylender. The interest on
these loans is higher but these are excluded from any loan waiver scheme.
Way ahead:
The old, labour-intensive methods must give way to technology for efficiency and
higher yield
Pricing and subsidy mechanism must be overhauled.
The focus should be more on making the Pradhan Mantri Fasal Bima Yojana a
success rather than demanding farm loans waivers from banks.
The government should look at diversifying the cropping pattern and developing
new technology to fight drought. Bringing green revolution to eastern India(BGREI)
must be implemented in true spirit.
The Pradhan Mantri Fasal Bima Yojana, the new crop damage insurance scheme
approved by the Union cabinet in January 2016, is also a vast improvement on the
old crop insurance model in vogue since 1970s. The new scheme which has the
lowest premium so far has proposed use of remote sensing, smart phones and
drones for quick estimation of crop loss and speedy claim process. The focus should
be more on making this a success.
Conserving water, improving the irrigation facilities, and developing agriculture
markets and competition can be the building blocks for growth in agriculture and
mitigating farmers woes. State governments are barking up the wrong tree by
resorting to loan waivers.
The only long-term solution is to gradually align crop production with genuine price
signals, while moving ahead with reforms to de-risk agriculture, especially by
increasing the crop insurance cover. Expediting steps to reform the Agricultural
Produce Market Committee system and introduce the model contract farming law
would go a long way to free farmers from MSP-driven crop planning
Conclusion:
To be sure, India is reforming parts of its economy. But not farming. If farmers are to
escape poverty, farming needs to become more like manufacturing: Teched up
operations, free as far as possible from imponderables, churning out quality produce
that fetch the right price. It is imperative that policymakers and analysts understand the
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causes behind the riots in order to best insure society, and farmers, from economic
doom.
In the past, a single season of dry spell was enough to send the economy into recession.
Now failed monsoons trigger localised distress. Thats an improvement. Still, far too
many farm households remain too poor. And unless the rural economy is unshackled
from a time and policy warp, our dream of double-digit economic growth will remain
just that: A dream.

Recent riots by farmers from states of Maharashtra and Madhya Pradesh shows how
despite continuous efforts by the government the state of agriculture remains grim.
Discuss what are the reasons behind rioting farmers and what should be done to
improve livelihood of farmers and Indian agriculture.

A calibrated approach to reforms
It was a common thing to make bureaucracy responsible for inexplicable delays in

policy formulation and implementation.
The bureaucracy was seen as the biggest stumbling block for a policy-driven
progress.
However, in the hindsight, it has been now validated that Indias calibrated, less
hurried approach to opening up the economy in certain sectors was against the
convention of the time. But the reality is now different.
Though it is always tempting to suggest that policy makers should hit the reforms
accelerator, the complex present is the truth.
Making the right policies

There is no merit in following the herd in thinking and implementing the popular
policy choices. Prudent policy making steers clear of such approaches.
Rather, there is a need to evaluate the policy choices on the merits of the argument.
Though some might think it as a delaying tactic, but given that policymaking is both
an art and a science, the policy maker should take all the arguments and choices
available to make an informed decision.
As economist Dani Rodrik argued When knowledge is limited, the rule for policy
makers should be, first, do no harm. This can be explained as
When India approached IMF in 1991 for loans to tide over its balance of payments
crisis, there were conditionalities wherein IMF called for liberalisation of Indias
current and capital accounts.
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Yet, India moved towards current account convertibility, it wasnt fast on capital
account convertibility which was conventional thing to do.
However, when India was recovering from her 1991 financial crisis, another crisis
was in the making in the East Asian Countries which had already embraced full
capital account convertibility.
There was a heavy capital inflow in these countries which when coupled with fixed
exchange rate regimes resulted in asset bubble burst in 1997.
Thus, post the crisis, there was new policy understanding about the difference
between the theory and practice of capital account liberalisation and how free
movement of short-term capital flows had destabilising effect on individual
economies.
Contrastingly, Indias approach of gradual lifting of capital controls was considered
sustainable.
Sub prime crisis

During the global economic recession of 2008, India was amongst the less affected
countries.
This was because till them RBI had not allowed Indian banks to invest in synthetic
structured products like MBS, CDOs, and CDS.
The irony is in the fact that these products were rated AAA despite having sub-prime
American housing loans.
A conservative approach towards such instruments saved India from the direct
contagion risk of the great recession whereas US and European banks had invested
heavily in subprime tranches and hence were largely affected.
The lesson learnt was- earlier, accepted wisdom that free capital flows across
borders would usher in higher investments and work as tonic for sick economies
proved not completely true.
In 2012, IMF came around to the view that robust institution building should
precede capital liberalisation. Also, that free capital flows at times, might do more
harm than good.
Trade liberalisation
The theories mending the trade liberalisation policies has changed over the time
period.
Earlier the convention was to protect infant industry by giving state support through
high import tariffs or domestic subsidies until the industries have matured and
attained economies of scale.
During WWII, US had one of the highest import tariffs in the world.
Now, the conventional wisdom has changed over time. With the era of globalisation
and incoming of WTO agreement, trade facilitation has changed.
India has two examples of diametrically opposite views made by the policymakers
which resulted in two different results which hold a lot of value.
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When India signed the Information Technology Agreement (ITA-I) in 1997 under
WTOs Singapore Ministerial Conference it removed tariff protection for IT hardware
products covered in the agreement.
Thus, electronic hardware imports became cheap which led to huge influx of
Japanese, Korean and Chinese manufactured IT hardware.
This negatively impacted Indian nascent electronics manufacturing as other
countries had built their capabilities previously whereas in India, the infant IT
manufacturing industry was barely born.
The effect today is such that Indian presence in this industry is hardly felt.
On the other hand
The auto and auto-ancillary sector in India was protected through high import duties
and other conditions in terms of mandatory localisation provisions and investment
restrictions
This led to healthy growth of auto sector in India. Today, India is a hub of world class
auto and auto parts sector.
This led to slowly withdrawal of most restrictions except high duties on fully
assembled vehicles.
Conclusion
There was a time when India was considered as a slow liberaliser and high import tariff
country. But om infact it was this organised policy making and long term vision which
has helped India in most sectors.
Today the world is once again turning to high import duties to protect their domestic
jobs and also restrict China from spreading its tanctacles of becoming manufacturing
hub in Asia.
India is in a good position in critical areas and sensitive sectors. Though it is not that
policy reforms should continue at slow rate only, but to consider diverse developmental
strategies possible while making a policy for a complex society.

Though it is considered that fast paced reforms are key to faster economic growth,
the reality has been different. Do you agree? discuss in detail how reforms in policies
should be shaped.
TOPIC:
General Studies 2
General Studies 3
Conservation, environmental pollution and degradation, environmental impact
assessment
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Science and Technology developments and their applications and effects in

everyday life
Achievements of Indians in science & technology; indigenization of technology and
developing new technology
A shift towards Electric Vehicles (EVs)
In news:
In May 2017 Nagpur became the first Indian city to have an electric cab fleetwith
about 100 EVs from the Mahindra stable and around 100 e-rickshaws from Kinetic linked
to the Ola transport aggregator platform. Also, the state-run power giant NTPC set up
its first Electric vehicle(EV) charging stations in Delhi and Noida.
Policy shifts:
Power minister Piyush Goyal has announced that government officials and agencies
will soon be using only EVs.
Public buses are also expected to go electric.
Road transport and highways minister Nitin Gadkari has promised a national EV
policy before the end of the year
The governments think tank, Niti Aayog, has already put out a road map for Indias
mobility transformation that has three core elements: shared, electric, and
connected.
The goal, according to the power minister, is to have no diesel or petrol car sales in
the country by 2030.
This marks a sharp shift from the current policy that incentivizes both hybrid vehicles
which combine fossil fuel and electric power and electric cars.
NITI Aayog's mobility plan:

In its report Niti Aayog recommends-
The government must subsidize the EV industry while penalizing conventional cars.
Taxes and interest rates for loans on EVs should be lowered.
The sale and registration of conventional cars should be lowered
Using taxes from diesel and petrol car sales to create electric charging stations.
It also suggests setting up a manufacturer consortium for batteries, common
components, and platforms to develop battery cell technologies and packs and to
procure common components for Indian original equipment manufacturers.
NEMMP & FAME India Scheme:

In 2015, as part of the National Electric Mobility Mission Plan (NEMMP), the government
had launched the FAME India (Faster Adoption and Manufacturing of Hybrid and Electric
Vehicles) scheme with an aim to promote eco-friendly vehicles, offering incentives on
electric and hybrid vehicles. The FAME India scheme is aimed at accelerating sales of
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eco-friendly vehicles to up to 7 million vehicles by the year 2020. However, sales of EVs
have been abysmally poor.
Mainstreaming electric vehicles will require :

An overhaul of the countrys energy and transport infrastructure. For example, EV
charging stations will have to be set up on a war footing.
Electricity generation will have to improve significantly even as its piggybacks on the
push for solar energy.
EV technology (especially the battery) will have to become much cheaper before it
can perform well in a price-sensitive market like India.
If these challenges can be tackled effectively and India can leapfrog to EV technology,
then of course, the benefits to be had are numerous.
Benefits of EVs:
Environment-friendly EVs will reduce air pollution and thus contribute to the fight
against climate change. As per NITI Aayog's report EVs will help in cutting down as
much as 1 gigatonne (GT) of carbon emissions by 2030
Lower Indias dependence on imported oil
Will cut Indias energy demand (from the road sector for passenger mobility).
Save the country $60 billion in energy bills on petrol and diesel by 2030(As per Niti
Aayog)
EVs efficientwith regenerative braking capturing energy otherwise wasted and
also due to the inherent efficiency of motors, especially at low speeds
The focus should not only be on EVs:

Apart form EVS there also other technology options which shouldn't be ignored.
Like,
Hydrogen-powered fuel cells
It offer an equally eco-friendly option.
Both are zero emission, and the hydrogen-powered fuel cells can in fact be recharged
faster.
They also give more mileage than the lithium-ion batteries commonly used in EVs today.
CNG vehicles
They are cheap, almost as clean as EVs, and the related infrastructure is already in place.
The government should not be deciding the winner?

Issue:
Governments generally do not have a good track record when it comes to picking tech
winners. For example,
After the 1970s energy crisis in the US, the Carter administration pumped millions of
dollars into thermal solar technology which did not yield any viable commercial results
even as the old photovoltaic cell technology continued to evolve. Later, corn-based
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ethanol was all the rage and the government again put good money into developing a
market for it but eventually it too collapsed.
These examples indicate there are many risks associated with the government picking
the winnera job that is better left to the market and industry.
Conclusion:
The government should have a role. However, instead of trying to pick winners, the
government should focus on building an enabling business environment that supports
research and innovation. Thus, instead of pumping money into one project or firm, it
should support clean energy research in general. That way, the government does its part
in steering the policy ship towards clean energy while still being technology-agnostic.

With NITI Aayog's mobility transformation plan a shift in government's strategy
towards Electric Vehicles(EVs) is visible. Discuss the challenges involved in adopting
the EV technology in Indian context ad also the benefits such transformation would
provide.
TOPIC:
General Studies 2
General Studies 3
assessment
everyday life
developing new technology
Harnessing wind power through Kites
Introduction:
Wind energy in India has seen steady development in the last decade. With 32,279.77
MW of installed wind generation capacity (compared to 12,288.83 MW of solar power),
India is one of the leading generators of wind energy worldwide. Yet, due to certain
constraints, and more recently the more competitive rates in solar energy, there are
concerns that the share of wind energy may decline.
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Benefits of wind power over solar power:

Unlike non-storage solar energy, wind turbines are not affected by night and day.
Challenges in generating wind power:

Generation of electricity from wind energy depends on both the season and
geographical location.
Wind farms require massive areas of land.
In India, wind turbines produce 70 to 80 per cent of their generation in a span of six
months. Moreover, to calculate the annual kilowatt per hour (kWh) produced from
a turbine, one has to calculate the estimated number of hours of wind at a certain
height as well as its speed. On an average, in India, the plant load factor (PLF) is only
around 20 to 30 per cent. Hence, with a 25 per cent PLF, a 1.5 MW turbine would
produce around 3,285,000 kWh in a year. Below a wind speed of around 30 mph,
however, the amount of energy generated would be quite small.
Government's policy towards wind power:

The government has announced that its target for wind energy generation by 2022
is 60,000 MW.
What needs to be done?

Harnessing the wind energy potential will require huge investments as well as the
requisite land.
However, this problem may be resolvable through the use of a new technology
scores of kites to generate wind energy.
This technology is believed to not only cut the cost of generating wind energy but
also enhance the efficiency quotient.
How does it work?

The basic idea is to locate the kites, which are essentially light and controllable
aerodynamic flying devices, in a formation at heights of around 750 metres and
more in order to harvest the strong and consistent winds available in that region of
the atmosphere (wind velocity at those heights is twice that at the ground level)
and thus generate low-cost energy.
The system is operated in periodic pumping cycles, alternating between reel-out
and reel-in of the lines attached to the kite and the drum on the ground. During
reel-out, the kite flies in figure-eight manoeuvers at high speeds of 70 to 90 km/h,
creating a high traction force which is converted into electricity by the drum and
the connected generator. Once the kite reaches the maximum height, it is de-
powered by releasing the steering lines so that the whole wing rotates and aligns
with the wind. Using the drum/generator module as a winch, the kite is then pulled
back to the initial position to start the next pumping cycle. De-powering reduces
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the traction force during reel-in by 80 per cent, thereby allowing less energy to be
consumed as against the energy generated during the reel-out cycle. Once the
descent is complete, the kite is allowed to climb once more, where it generates
electricity once again. This allows these kites to be more efficient than traditional
wind turbines.
Source:https://www.thememo.com/2017/05/30/kite-wind-farms-take-off-in-uk-as-
fut....
Benefits of using kite wind:

According to some estimates, the cost of generation from these kites could be
around 50 to 60 per cent less than from traditional wind farms, both on- and off-
shore.
Moreover, these kite power systems can be flexible. As modular, small-scale power
production plants, they can be applied to single houses, for autonomous electricity
production as well as for remote areas and villages not yet connected to the power
grid.
At the same time, they can also serve as huge power plants generating several
megawatts and even gigawatts. For example, an Italian firm, KiteGen, has developed
a prototype with a capacity for producing 27 MW of peak power.
Some of the advantages kite power systems have over conventional turbines include
negligible noise emission and bird hits, near invisibility, and ability to withstand
storms.
Moreover, they do not need huge concrete foundations and tonnes of steel for the
tower and the blades. As a result, they do not require scarce metals or rare earth
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elements like neodymium for the magnet in a wind power plant, thereby making
them far more environment-friendly than their conventional counterparts.
Wind kites also require less power to operate.
Challenges:
Some technical issues will have to be resolved before these kites can replace
traditional turbines.
A major challenge is lightning, which could damage the small computer placed inside
the kite.
Given the height at which the kites would be flying, the location of these wind farms
will have to be carefully planned so as not to interfere with or hamper the flight
paths of aeroplanes.
Conclusion:
Although India is no longer deemed power-deficient, it is by no means energy secure
as millions of people do not have access to grid connections. As connectivity
increases, the demand for power will surge. Moreover, initiatives like Make in India,
Power for All Campaign for total rural electrification by the end of 2017, and the
drive to ramp up the use of electric vehicles in place of fossil fuel-based vehicles,
among others, will see a quantum jump in energy consumption. While evolving solar
technology can fill some of the gap, the government should also look at other new
energy technologies across the energy spectrum to meet its energy generation
target. Indias record in wind energy development is good. But the existing
technology is fast becoming outdated. Evolving technologies like kite wind should
therefore be considered.

The government has set a target of generating about 60 GW of wind energy
generation. Discuss the challenges involved in relying on wind turbines and how
kites can be used to harness wind power.
TOPIC:
General studies 2:
Issues relating to development and management of Social Sector or Services
General studies 3:
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Start Up India Pan- Taking it forward
Start Up Action Plan- Introduction:

The action plan with 19 measures focused on simplification and hand-holding, funding
support and industry-academia partnership and incubation.
E-registration, self certification system.
A dedicated web portal and mobile app.
No inspection during the first 3 years.
80 percent reduction in the application fee of start up patent.
Easy exit policy.
Inclusion of Credit Guarantee Fund.
Relaxation in Income Tax for first three year.
Special Arrangement for Female applicants.
Introduction of Atal Innovation Mission.
Steps taken by the Government:

To facilitate ease of doing business, the government promised a compliance regime
based on self-certification.
The Union Ministry of Environment, Forest and Climate Change has notified 36
industry sectors that are practically non-polluting as belonging to a white category.
A fast-track, low-cost intellectual property regime was promised. Now, a list of more
than 400 empaneled patent and trademark registration agents has been published
The government is a huge buyer of goods and central ministries and departments
have been directed to relax the turnover and experience criteria for public
procurement, so as to promote purchases from start-ups.
Instituting of a Rs10,000 crore fund-of-funds. The Small Industries Development
Bank of India has been given the task of operating and managing this fund, which
will invest in alternate investment funds registered with the Securities and Exchange
Board of India (Sebi).
The government also promised to build a start-up culture in the country. A call
centre was operationalized to resolve queries and provide hand-holding support to
start-ups. A website and mobile app were launched with information on the start-
up action plan, incubators and IP facilitation.
An interactive online learning and development module to educate start-ups and
aspiring entrepreneurs was launched.
Start-up fests were announced.
The Finance Act 2016 allowed exemptions to long-term capital gains if those are
invested in units of specified funds. Exemption was also introduced for long-term
capital gains arising upon transfer of a residential property if such gains were
invested in an eligible start-up.
Exemption from angel tax was a more relevant sop as investment by residents in
eligible start-ups stood to gain from this concession.
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Issues:
The governments initiative has had an impact on only a small section of start-ups.
Many of the steps taken by government is unlikely to have a meaningful impact
unless the number of recognized starts-up is in the thousands.
So far, there have been only limited disbursementscommitments to the tune of
about Rs600 crore have been made and there is a budget allocation of Rs1,100 crore.
This is a small amount compared to the nearly Rs16,000 crore start-up funding in
2016.
The details of the promised credit guarantee fund for start-ups are not out yet
except that it is intended to have a corpus of Rs2,000 crore, to be built over four
years.
Since start-ups dont make profits in their early period and the minimum alternative
tax is still applicable, the benefits of a three-year tax holiday are only notional.
Way forward:
All start-ups, regardless of whether they are considered innovative by the
government, should be able to enjoy the benefits, so as to encourage
entrepreneurship and generate jobs. The government should not get into defining
and deciding what innovation means.
Ease of closure- A critical measure to enable start-ups which could go on to fail (and
a lot of them do) is the ease of closure. In this regard, the rules for voluntary
liquidation are still in the works. The rules should be released and notified soon
permitting start-ups to wind up business within 90 days.
Start Up festivals and The Grand Challenge award announced by government is
welocme . But such hand-holding is the job of incubators and accelerators, and the
government should focus on clarifying policy questions.
Conclusion:
It is commendable that the government thought of start-ups as a separate category,
recognized their potential, and came out with a visionary plan to promote start-up
culture and entrepreneurship in India. However, much of its efforts have been restricted
by what we can term bureaucratic impediments, so progress has been limited. The
government needs to review the policy soon, remove impediments and give a stronger
impetus to start-ups. Importantly, it also needs to reduce the flight of successful start-
ups to other jurisdictions. Thus a lot more needs to be done to provide a strong fillip to
the start-up world.
Connecting with the dots:

While Start Up Action Plan launched by government is a welcome step, much more
needs to be done to make it successful and establish a healthy Start Up culture in
India. Discuss the challenges and elaborate and steps to be taken.
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TOPIC:
General Studies 3
Infrastructure: Energy
Indias Energy Transformation
India has gained global attention for its ambitious clean energy targets. India is now
expected to play a major role in global energy transformation, by maintaining its own
pledges, holding to account the developed world and thus, building global confidence.
India has become a frontrunner in energy transformation:

India added more renewable energy (RE) capacity than conventional generation
capacity in 2016-17.
RE tariff in the country dropped to a level that is cost competitive with coal-fired
generation.
According to EYs renewable energy country attractiveness index, India pipped the
US to become the second most attractive country for RE investments.
According to government data, the share of renewable energy in the total installed
capacity was 13% at the end of financial year 2016. But it is expected to increase
significantly in the coming years, with solar a big driver.
Ambitious targets:
In 2014, the domestic RE target was revised to 175 GW of installed capacity by 2022.
In 2015, in its Intended Nationally Determined Contributions (INDC), India made a
global pledge to achieve 40% cumulative installed capacity from fossil-fuel-free
resources by 2030.
The country already has 33% fossil-fuel-free generation capacity, and as predicted
by Central Electricity Authority, it may achieve the INDC target sooner.
Issues:
1) Domestic target versus global pledge
No sync between the domestic target and global pledge: Several analyses have
pointed out that if India achieves the 2022 target, it will likely overachieve the INDC
target for next five years.
As many of the distribution companies (discoms) are struggling with surplus capacity
and storage capacities are yet to be developed, RE will add to power scheduling and
balancing woes.
2) Mismatch between RE capacity and energy generated:
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Actual generation from proposed RE capacity is unclear due to uncertainties in

capacity utilization factor. In 2016-17, with 17.52% share of generation capacity, RE
contributed only 6.59% of energy generated. Part of this is blamed on reluctant
evacuation by unwilling discoms, who have already contracted for higher amount of
conventional power than their existing demand.
Similarly, 33% fossil fuel-free capacity contributed less than 20% of the energy
generated. Even if India achieves its INDC target, given its reliance on RE, the share
of fossil fuel-free energy generated will not change much.
Source:
http://www.livemint.com/r/LiveMint/Period2/2017/06/14/Photos/Processed/w_o
ped.jpg
3) Focus on building a domestic reform coalition is inadequate:
Past experiences in India suggest Centre-pushed reforms have failed to sustain,
owing to poor sub-national adoption.
Sustaining the desired energy transformation needs alignment of interests and
building a reform coalition between the Centre, states, utilities, regulators and
private players, among others.
On the deployment front, while there is good progress in reaching the 60 GW utility
scale solar capacity, rooftop solar is lagging behind. As of April, only 1.5 GW capacity
has been installed against a target of 40 GW by 2022.
4) Conventional power suppliers will be affected:
The rise in cheap supply from renewable sources would affect the demand from
conventional power suppliers in India. A hit in revenue will hurt the ability of thermal
power companies to repay loans, which would mean more trouble for the banking
sector.
The fall in tariffs(solar power) may make adjustments difficult for conventional
power producers
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5) MNREs singular focus on solar energy in the renewables mission:

India is the fourth largest producer of wind energy in the world, with a total installed
capacity of 27GW. Since wind power dominated the field of renewables for the longest
time, the thrust for solar energy is understandable.
However, the goal of 60GW by 2022 undermines its actual growth potential.
According to National Institute of Wind Energy, India has the capacity to install and
generate 302GW of wind power, as well as increase its production to 67GW by 2020
itself with the right push.
More takers of RE:

Some states seem to be aligning with the domestic narrative of using RE for energy
security and economic development, though with varying objective and approach.
While states like Madhya Pradesh and Andhra Pradesh have added RE to their
industrial thrust, building on the economic development narrative, states like Odisha
have taken up RE to bridge energy access gap.
Simultaneously, there is an emerging political mandate for RE. Many members of
Parliament and legislative assemblies across party lines have taken up RE installation
as a key part of their local area development. During recent state assembly elections,
RE development featured in manifestos of many political parties.
Government departments are being encouraged to adopt RE deployment in their
activities.
RE is allowed as a legitimate item under CSR (corporate social responsibility)
spending.
Way ahead:
A high-level policy signal is in place, a political mandate is shaping up and implementing
actors are coming up. To meet the global expectations, India needs much more
proactive and creative actions.
It needs to ensure that proposed RE capacity transforms the consumable energy
mix. To do so, India must balance between complementing generation capacities
rather than pushing for preferred technologies.
In addition, given the unpredictability of RE generation, the time is ripe for storage
capacity development.
The proposed policy goal of electric vehicles is a welcome step, but it needs to be
creatively used for storage, while reaping other co-benefits.
Finally, the state must facilitate a domestic coalition for energy transformation, by
aligning interests.
We should prioritise the increase in shares of all renewable sources proportionately
for greater reach in clean energy. Portugal and Costa Rica, for example, depend upon
a renewable energy mix that affords due importance to solar, wind and hydropower,
and the results speak for themselves
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Ensuring the right incentives are in place, not just for solar but all renewables, as
well as strictly directing funds from the coal tax to NCFE to facilitate larger
investment.
Conclusion:
With ambitious targets and policy incentives India is surely on its path of energy
transformation. Globally moving towards renewable energy will help fight climate
change while domestically it will help in energy security and economic development.

India is expected to play a major role in global energy transformation. The goals and
policy incentives are in place, but more needs to be done. Discuss.
TOPIC:
General Studies 2
affecting Indias interests.
India and its neighborhood relations.
General Studies 3
everyday life
Awareness in the fields of IT, Space
Can Big Data Analytics lead to eColonisation of India:
What is Big Data?

Big Data, as the term implies, refers to the storage of unusually large magnitude of
data in electronic form (order of terabytes and higher). Big Data in itself hold no
significance. It is the big Data analysis enabled by increased computational capability &
tools which gives us useful insights.
How does Big Data work?

Big Data works on the principle that the more you know about anything or any
situation, the more reliably you can gain new insights and make predictions about
what will happen in the future. By comparing more data points, relationships will
begin to emerge that were previously hidden, and these relationships will enable us to
learn and inform our decisions.
What is unique about Big Data Technology (BDT) is the scale at which this data
collection can take place. For instance, Google has stored petabytes of information
about billions of people and their online browsing habits. Similarly, Facebook and
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Amazon have collected information about social networks.

Significance of big data analytics : Throws surprising trends which would be otherwise
hard to detect. For example, This year Economic survey utilized Big Data analysis to
give several surprising facts e.g. inter-state people movement is rather high.
Possible application:
Health- Big Data is being used to find solutions of Multi Drug Resistant bacteria,
HIV/AIDS, Cancer etc. Data-driven medicine involves analyzing vast numbers of
medical records and images for patterns which can help spot disease early and
develop new medicines.
Education- Andhra Pradesh govt has cooperated with tech giant Microsoft to analyze
school drop out rate and suggest solutions.
Climate change- A number of variable affecting climate change makes big Data only
option for successful analysis and suggesting remedial steps.
Agriculture- It can be employed to analyze soil health, predict water availability,
impact of pesticides etc. Agriculture is being revolutionized by data which can be
used to maximize crop yields, minimize the amount of pollutants released into the
ecosystem and optimize the use of machines and equipment
Predict and respond to natural and man-made disasters- Sensor data can be
analyzed to predict where earthquakes are likely to strike next, and patterns of
human behavior give clues which help aid organizations give relief to survivors. Big
Data technology is also used to monitor and safeguard the flow of refugees away
from war zones around the world
Crime tracking & prevention- It can be used to reduce crime by exposing Nexus and
crime trends invisible by naked eyes. Police forces are increasingly adopting data-
driven strategies based on their own intelligence and public data sets in order to
deploy resources more efficiently and act as a deterrent where one is needed.
Make our everyday lives easier and more convenient- Shopping online,
crowdsourcing a ride or a place to stay on holiday, choosing the best time to book
flights and deciding what movie to watch next are all easier thanks to Big Data.
Improved governance- Big data and advanced analytics platform can play a critical
role in integrating and exploiting the multiple data sources to help tax departments
in efficient discharge of their responsibilities and bridging the tax gap. This will not
only help them build integrated views of tax filers and individual tax submissions but
also empower them to respond in a more targeted way , thereby using resources
optimally.
It is an indispensable tool for effective policy making , efficient public service delivery
and better resource optimization. Big Data can enhance the governments ability to
serve its citizens and address major national challenges involving the economy,
healthcare, job creation, natural disasters, and terrorism.
Dangers of big data analytics:
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Data privacy The Big Data we now generate contains a lot of information about
our personal lives, much of which we have a right to keep private. Increasingly we
are asked to strike a balance between the amount of personal data we divulge, and
the convenience that Big Data powered apps and services offer.
Data security- One major problem with collecting and storing such vast amounts of
data overseas is the ability of owners of such data stores to violate the privacy of
people. Foreign governments or rogue multinationals could clandestinely access
these vast pools of personal data in order to affect policies of a nation. Such
knowledge could prove toxic and detrimental in the hands of unscrupulous elements
or hostile foreign governments. The alleged Russian interference in the U.S. election
tells us that these possibilities are not simply science fiction fantasies.
Data discrimination When everything is known, will it become acceptable to
discriminate against people based on data we have on their lives? We already use
credit scoring to decide who can borrow money, and insurance is heavily data-
driven. We can expect to be analyzed and assessed in greater detail.
Potential drain of economic wealth of a nation- Currently, the corporations
collecting such vast amounts of data are all based in developed countries, mostly in
the U.S. Most emerging economies, including India, have neither the knowledge nor
the favourable environment for businesses that collect data on such a vast scale. The
advertising revenue that is currently earned by local newspapers or other media
companies would eventually start to flow outside the country to overseas
multinationals.
What India can do?

Chinese example: China has apparently understood the dynamics of big data analytics
and taken measures to counter its threat. It has encouraged the formation of large
Internet companies such as Baidu and Alibaba and deterred Google and others from
having major market share in China by using informal trade restraints and anti-
monopoly rules against them.
India may not be able to emulate China in this way, but we could take other
countermeasures to preserve our digital economy independence.
The heart of building companies using BDT is their ability to build sophisticated
super-large data centres. By providing appropriate subsidies such as cheap power
and real estate, and cheap network bandwidth to those data centres, one would
encourage our industries to be able to build and retain data within our boundaries.
In the short term, we should also create a policy framework that encourages
overseas multinationals such as Google and Amazon to build large data centres in
India and to retain the bulk of raw data collected in India within our national
geographical boundaries.
We should also build research and development activities in Big Data Science and
data centre technology at our academic and research institutions that allow for
better understanding of the way in which BDT can be limited to reduce the risk of
deductive disclosure at an individual level.
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We need to develop software and train individuals on how to protect their privacy
and for organisations and government officials to put in place strict firewalls, data
backup and secure procedures.
It should be ensured that the information is not distorted; not disclosed; not
appropriated; not stolen; and not intruded upon within specified rules and
guidelines. Hence the importance of government regulation and policies on the use
of such collected data and associated privacy rights.
India also needs to adopt BDT in areas where it can prove to be beneficial. Gartner,
a research firm expects over 25% of global firms to have adopted big analytics for at
least one security and fraud detection use case by 2016 and therefore, countries
such as India, China, and Singapore will find themselves at the receiving end, if they
do not translate their failure- to adoption of Big Data for increased security
purposes.
Conclusion:
The government has approved the Digital India Plan that aims to connect 2.5 lakh
villages to the Internet by 2019 and to bring Wi-Fi access to 2.5 lakh schools, all
universities and public places in major cities and major tourist centres. This is indeed a
very desirable policy step. But unless we evolve appropriate policies to counter the side
effects of the Digital Plan, this could also lead to the unforeseen e-Colonisation of India.
We need to make sure that India finds a way to protect both financial rewards and
ensure individual privacy and national security through appropriate safeguards.

What do you understand by big data technology? Discuss its applications as well as
danger involved in adopting BDT. Elaborate on measures required to be taken by
India in order to ensure privacy, check data theft and at the same time benefit from
the rewards of BDT.
TOPIC:
General Studies 2
Indian Constitution- historical underpinnings, evolution, features, amendments,
significant provisions and basic structure.
Functions and responsibilities of the Union and the States, issues and challenges
pertaining to the federal structure, devolution of powers and finances up to local
levels and challenges therein.
General Studies 3
Worsening state finances
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In news:
The viral of farm loan waivers is acquiring epidemic proportions. Unfortunately,
broader structural changes in agriculture have eluded coherent implementation. The
loan waivers of February 1990 by the National Front government led to sharp fiscal
deterioration and the subsequent balance of payments crisis. Subsequent loan waivers
had similar results. State governments are entitled to take such decisions but manage
their financial consequences. Farm loan waivers are a subset of the broader issue of
sustainable State finances. We need to address several issues.
Fiscal consolidation
State expenditure higher than that of centre:
Following the 14th Finance Commission recommendations, the total State
expenditure (as a percentage of GSDP) is higher than even the Centres.
State finances have increasingly become a crucial lynchpin of Indias fiscal
framework. Many State governments have adopted State-level fiscal laws and
adhered to the 3% fiscal target under the State-level FRBMs (Fiscal Responsibility
and Budget Management Act).
However as per a report of the Reserve Bank, State Finances: A Study of Budgets
2016-17, the combined deficit of the States reached 3.6% of GDP in FY16, significantly
higher than 2.6% in the previous year. This significantly breaches the 3% fiscal deficit
stipulated by the States themselves in their FRBMs. The fiscal consolidation of the
Centre is more than offset by expansion of the States. This is partly explained by the
State power distribution companies (DISCOM) debt, 75% of which will be explicitly
accounted in States balance sheets, and treated as capital spending in fiscal accounts.
The quality of compliance by States has also deteriorated. These go beyond UDAY
(Ujwal DISCOM Assurance Yojana) to include irregularities in food credit accounts of
State governments with commercial banks, off-balance sheet expenditures, and
creative accounting engineering to evade stipulated targets.
Unsustainable debt-to-GDP ratio for States:

Debt is considered sustainable if debt-GDP ratio is stable or on a declining path. This
is a necessary condition for solvency of any governments finances. While debt ratios
for the Central government are projected to decline, the debt ratio for the States under
status quo and present FRBM scenarios is projected to increase.
This is mainly because the primary deficit (total deficit excluding the interest payments),
a driving variable in debt dynamics, is much higher for the States compared to the
Centre. The Centres primary deficit according to the RBI report is 0.7% of GDP while
that of the States is close to 2% of GDP. Nonetheless, if this picture persists, State debts
will increase from close to 20% of GDP to 35% of GDP over the next 10 years. A
significant consolidation by the States would be needed to keep the debt ratio stable
for the States.
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Challenges arising due to worsening state finances:

Given the increased foreign holdings of Indian government bonds, a worsening of
State finances will dent Indias credibility among foreign institutional investors (FIIs).
The rise in government bond yield of State government securities would increase
the interest burden on new debt and also for the old debt which are re-priced. Such
a scenario could make State debt more explosive.
Borrowings by States are likely to increase sharply due to interest of UDAY bonds,
and more importantly, the viral of farm loans waivers. With little compensatory
action, this will seriously undercut the hard-won battle to secure fiscal prudence for
the country as a whole.
Although composite State finances are useful to analyse, there are marked variations
across States. States like Tamil Nadu, Gujarat, and Maharashtra have significantly lower
fiscal deficit, with more intensive tax efforts, than States like Uttar Pradesh and
Jharkhand, which collect lower tax and are fiscally less prudent.
What can be done?

Following steps can be taken:
First, we must improve the due diligence by the Central government in giving
consent to borrowings by States under Article 293 of the Constitution.
Unfortunately, there is some lack of coordination within the Ministry of Finance
itself. Approvals for State government borrowings are accorded by the State Plan
Division with little coordination with the Budget Division, which monitors
implementation of FRBM obligations. A more stringent criteria in approving
borrowings for States which deviate from stipulated fiscal norms is urgently needed.
The criteria must be transparent and apolitical in character.
Second, whenever the Central government breaches the fiscal norms, it secures
parliamentary approval. State governments must be encouraged to adopt a similar
practice by securing the approval of the State Legislature.
Third, regulatory measures can be devised to enable bond yields to be responsive to
market signals and bridge the information asymmetry between markets and State
finances of the concerned State governments.
Finally the 15th Finance Commission must address the broader issue of adherence
by States to fiscal obligations. It must restore adherence to fiscal norms as an
important ingredient in the devolution formula. This also implies inter se
distributional burden among the States themselves.
Conclusion:
Investors recognize and reward macro stability. Fiscal prudence exercised by the Central
government has been widely acclaimed. The management of State finances must not
undercut this important achievement which is central to investor confidence and
enhanced credit rating. Unchecked profligacy by States can undermine the overall
macro stability and thus must be checked.
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Present situation of state finances shows a worrying picture. With demands of farm
loan waiver the fiscal situation is likely to become more unsustainable. Discuss the
need of maintaining fiscal discipline by states. Also mention the steps to be taken to
do the same.
TOPIC:
General Studies 2
Parliament and State Legislatures structure, functioning, conduct of business,
powers & privileges and issues arising out of these.
Creation of Gorkhaland: A long-standing demand
In news:
West Bengals Darjeeling district has been on the boil over a separate state demand and
witnessed widespread clashes between Gorkha Janmukti Morcha activists and the
police. The tourism sector has been hit hard.
Background:
Sikkim gifted Darjeeling to the East India Company in 1835. Historically, until 1905,
when the then Viceroy of India, Lord Curzon, effected the partition of Bengal,
Darjeeling was a part of the Rajshahi division, now in Bangladesh. From 1905 to 1912
Darjeeling formed a part of the Bhagalpur division now in Bihar. It was given back to
Rajshahi in 1912 and remained with the Rajshahi division till Partition.
The Gorkhaland region, comprising the districts of Darjeeling and Jalpaiguri, is home
to a large number of Nepali speakers, who resent being part of a state dominated
by Bengali speakers. It remains among the earliest demands for statehood in India.
Recognised as an official language of Bengal in 1961, Nepali is the official language
in the hills of West Bengal. In 1992, Nepali was recognised as one of the official
languages of India.
Why the Nepali people agitate?

Although the Nepali-speaking segment makes up just 1.2 per cent of Bengals
population, Darjeeling evokes more interest in Nepal than any other Indian region
where Nepali-speaking persons are settled.
The idea of a Greater Nepal still motivates a section of Nepal activists who want
Darjeeling restored.
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The tactful and rigid segregation of workers from the British era to the line of
ethnicity in the hills, where the Nepalese were brought in and the plains, where the
Chottanagpur migrants worked, rendered one community hostile against the other.
The few Bengalis present in the hills were and have always been the babus, working
for the British and then the State. The marwaris have controlled most of the wealth,
further isolating the Nepali population.
The Nepalese find themselves reduced to second class citizens, at the hands of these
otherwise miniscule inhabitants.
The movement led by the Gorkha National Liberation Front, projected the CPM-led
government in Bengal as anti-Nepali.
The demand for Gorkhaland has always found its support among the tea plantation
workers. Kipat (ownership of land by a community) and Maato (mud) remain central
to the movement.
What sparked the renewed protest?

Gorkhaland demand has been there for more than 75-80 years. Between 1907 and
1987, demands for a separate Darjeeling were raised on at least on 15 occasions.
Ongoing for over decades, language is at the heart of the Gorkhaland crisis.
Supporters of Gorkhaland want a separate Nepalese-speaking region.
However, the approximate cause of unrest is:
The present crisis in Darjeeling was sparked by fears of Bengali being imposed in
schools in the GJM-administered areas where a majority of the people are Nepali-
speaking Gorkhas. The GJM and other separatist political forces saw this as a ploy
to undermine the GTAs authority.
Gorkha Janmukti Morcha-led by Bimal Gurung intensified its demands for a separate
state of Gorkhaland calling an indefinite bandh in the region. GJM is a political party
which campaigns for the creation of a separate state Gorkhaland within India, out
of districts in the north of West Bengal
While the protests started with the suspicion that Bengali would be made
mandatory in the hills. Later it spiralled into a broad-based indefinite agitation with
the GJM targeting symbols of the state and ordering closure of all government
offices.
Tripartite agreement, 2011:

Long back, the Gorkhaland movement was called off following a tripartite agreement
that led to creation of an autonomous hill council. In 2011, after the Trinamool
Congress came to power in the State, the GJM, the State government and the Centre
signed a tripartite agreement for the establishment of the GTA, a regional
autonomous body aimed at giving significant administrative control over the region to
the elected party in the hills.
Way forward:
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The State government must reach out to the GJM and work out a way to transfer
powers to the GTA as was promised in 2011. A signal in this direction will go a long
way in tamping down the violent agitation. It should also abandon its wishful
thinking that short cuts can solve the intractable Gorkhaland issue, which is
culturally rooted.
Take steps to empower the Gorkhaland Territorial Administration. In the years since
the establishment of GTA, little has been done on the ground to transfer many of
the subjects to the body as was promised, rendering the notion of autonomous rule
in the Hills rather moot.
Legitimate grievances with the West Bengal government on transfer of powers to

the GTA aside, the GJM, which has ruled the Authority, too has been guilty of
lackadaisical administration. Thus GTA needs to strengthen its administration.
Language has been a fraught issue in the Darjeeling hills for more than a century.
Identity politics aside, there is something utilitarian about learning a language.
Learning the language, formally, will only help expand the economic avenues of
Nepali-speaking people in the Darjeeling hills in West Bengal.
A dialogue must be initiated with those demanding a separate Gorkhaland state and
the issue thoroughly examined, and that it should not be kept lingering for long.
Conclusion:
The demand for carving out a separate state, Gorkhaland, from West Bengal is a
decades old demand. The issue needs to be handled diplomatically. The cultural divide
based on ethnicity and language must be bridged and this can be done only through
discussion and engagement rather than violence. The GJM and the state government
with the Centre as mediator must come together to bring this issue to a peaceful end.

Recently separate statehood movement got renewed and intensified in Darjeeling
district of West Bengal. Critically analyze the reasons behind the demand and also
discuss if creation of another state would help bring stability in the region.
TOPIC:
General Studies 2
Issues relating to development and management of Social Sector/Services relating
to Health, Education, Human Resources.
Important aspects of governance, transparency and accountability
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Transforming India into a knowledge-based economy
Introduction:
Knowledge-based economies use ICT, innovation and research, higher education and
specialised skills to create, disseminate and apply knowledge for growth.
Transformational idea emanates from knowledge institutions. This can then be put to
practical use by a for-profit company.
Advanced Asian economies such as Japan, Korea, Singapore, Taipei and China have
successfully shifted from agriculture to manufacturing to knowledge-based industries.
China and India, have built pockets of knowledge-based growth, but have not yet
translated this into a broader economic model. Countries such as Bangladesh,
Myanmar, and Lao have yet to really embark upon knowledge-based growth.
Importance of creating a knowledge-based economy:

A shift to innovation-based growth would help countries avoid the middle-income
trap and also address rising income inequalities.
The advantage of availability of cheap labour from which countries like India and
China and others in the region derive the strength that adds so much value to their
economies is likely to disappear in the near future.
Some examples form across the world shows how knowledge based economies are
already transforming economies and can have an effect on job creation and affect
industries in India.
Examples:
Nike has been experimenting with the use of 3D printers to manufacture shoes.
These areas of high-end technology have a rapid rate of convergence. It is well nigh
possible that our shoe manufacturing industry could be hard-hit in no time.
Google is still very much smaller than the Indian IT company in terms of employees,
but it earns much more in one quarter than what the Indian IT company earns in a
whole year. This is simply because Google is based on a knowledge idea that has
connections to Stanford. The Indian IT company, alas, is dependent on brawn as
opposed to brains.
A former professor of robotics at the Georgia Institute of Technology has helped
create a robotic tailor that can stitch a perfect circle. The only seemingly viable
option for the garments industry in the Asian region is to seek to import such
machines. There goes a part of our plan to keep unemployment figures down. This
indicates troubling future of the garments industry.
Indian context:
As per the Mimansa school of Indian philosophy, Knowledge without action is
meaningless. India has accrued enormous for centuries based on our knowledge
systems:
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C.V. Raman was in the office of the accountant general while making his discovery.
In ancient India, much before Christ and the Greeks, some outstanding mathematics
was discovered and driven by societal needs.
Knowledge systems in India invented cataract surgery and plastic surgery much
before Christ.
The invention and use of the rapalgai a rope-based device also called kamal
enabled our merchant ships to calculate positions at sea at a time when Europe was
clueless.
Way ahead:
India has the potential to become a leading knowledge-based economy with its
youth population and growing information technology.
Policy if at all must simply be more in the realm of enlightened inducement
that encourages and engenders good practices. It must nurture and encourage
initiative and out-of-the-box thinking and should be, to an extent, ready to
accommodate risk taking and have room for failure.
Institutions have to move out of traditional modes of thinking and must recognise
that knowledge can exist in all realms, not just in formal systems around academia.
The need to develop and nurture educational institutions in a manner that ensures
their linkages to the needs and challenges of the nation including its economic
needs. This requires inducing young minds to grapple with the challenges of the
nation and society.
Steps such as supportive laws, improved infrastructure, removal of barriers to trade
and investment, up-skilling of labour force, higher spending in R&D and innovative
financing for small businesses must be taken urgently.
Regulatory, education, and infrastructure barriers must be overcome.
What is required is a strong, coordinated government policies coupled with
investment in ICT including universal, affordable and high-speed broadband
connectivity, better education notably tertiary and skills-focused training, and a
culture of research and innovation with strong intellectual property rights. Flexible
capital and labor markets are also crucial.
Conclusion:
The shift to knowledge-based growth is critical since Indias comparative advantages in
labor and capital-intensive manufacturing are fading. New technologies like robotics,
and increasing stress on resources like energy and water, are emerging as threats to
Asias competitive edge. A shift to innovation-based growth would help India avoid the
middle-income trap and also address rising income inequalities.

India needs to transform itself into a knowledge-based economy. Discuss the
yrgency, India's potential as well as the challenges in bringing such a transformation
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TOPIC:
General Studies 1:
Role of women and womens organization, population and associated issues
Social empowerment
General studies 3:
Major crops cropping patterns in various parts of the country, irrigation,
agricultural produce and issues and related constraints; e-technology in the aid of
farmers.
Women farmers in India needs attention
Feminisation of Indian agriculture:

Higher paying jobs in the city in combination with high tax on agriculture drew men
from their farms into cities, hunting for well-paid jobs. This kind of migration of men
leaves the woman in charge of the farm and household.
The share of female labour in the agricultural workforce increased from 39.2% to
41.9% during the period 1999-2000 and 2004-05.
Indias agricultural industry, which employs 80 to 100 million women, cannot
survive without the labour of women farmers. From preparing the land, selecting
seeds, preparing and sowing to transplanting the seedlings, applying
manure/fertilisers/pesticides and then harvesting, winnowing and threshing,
women work harder and longer than male farmers.
Maintaining the ancillary branches in this sector, like animal husbandry, fisheries
and vegetable cultivation, depends almost solely on women.
Almost all women in rural India today can be considered as 'farmers' in some sense,
working as agricultural labour, unpaid workers in the family farm enterprise, or the
combination of the two. Moreover, several farm activities traditionally carried out
by men are also being undertaken by women as men are pulled away into higher
paying employment.
Thus, rural India is witness-sing a process of feminisation of agriculture.
Issues related to women farmers:

Women are usually not listed as primary earners and owners of land assets within
their families. So getting loans, participating in mandi panchayats, assessing and
deciding the crop patterns, liaising with the district officials, bank managers and
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political representatives and bargaining for MSPs (minimum support prices), loans
and subsidies, remain male activities.
Weaknesses in women's rights to land also results in the inability to use land as
collateral to obtain credit that is crucial to the purchase of inputs such as seeds and
fertilisers. This, in turn, limits adoption of new technology.
Unlike male farmers and cultivators, their female counterparts remained doubly
burdened during their peak productive period with their reproductive role seen as
fundamental to their gender. So even as women laboured in fields, they continued
to have and rear children almost single-handedly. In many regions of the developing
world, women spend up to five hours a day gathering fuel wood and water and up
to 4 hours preparing food. This cuts short time on child care.
Women possess traditional knowledge of agriculture and they often possess unique
knowledge about livestock, fish and many conventional aspects of farming. But, in
many organised activities, women are left behind in the up-gradation of their
knowledge and skills. FAO study conducted recently found that women in
developing countries contributed about 80% towards food production but received
only 2% to 10% of the extension services (FAO, 1998).
Agricultural extension agents are a critically important source of technology
information to women farmers, given the generally lower levels of education of
women compared to men. Yet, the UNEP (United Nations Environment Programme)
in 1988 reported that less than 1 per cent of government-employed agricultural
advisers in Asia and West Asia are women.
India has one of the largest agricultural research and education systems in the world
with an estimated stock of about three lakh graduates in the year 2010, out of which
about 25 per cent are women (Rama Rao et al, 2011). But women presence is
negligible in high-level decision-making bodies, advisory boards and national
academies. agricultural education and work places sensitive to women's needs
Women farmers are not given many benefits and do not hold social connections
such as credit or market networks.
They are even denied irrigation rights because that is provided by the government
only to those male farmers who have agreed to grow commercial cash crops on their
land and women, on the other hand, use the irrigation water for household use and
also to grow subsistence crops.
Women working on fields, alongside their husbands, arent considered farmers per
say, and therefore suicides committed by women are rarely considered farmer
suicides, thus leaving them out from benefitting from the government schemes.
Way out:
The Food and Agriculture Organisation of the United Nations stress upon the
increasing access to many inputs to productive agriculture, including credit,
education and land, and at the same time, promote the development of rural female
farmers organisations.
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Updating the legal codes to give women the legal rights of property ownership and
credit, which can allow for increased food security.
Mechanisation of agriculture: Rapid urbanisation and increased participation of
women in the labour force makes a great demand on women's time. This calls for
developing technology which relieve women of ``time burdens'' in agricultural
production and maintenance without sacrificing their ability to earn independent
incomes.
Employing women agricultural extension workers is particularly important in
societies which forbid the interaction of women farmers with men agricultural
extension agents.
Conclusion:
In spite of the best efforts, the programmes aimed at women fail to realise the desired
goals as they are rarely designed and managed by women. This is one of the serious
concerns of social planners. Women can play a significant role in agriculture related
activities if they are provided relevant education and training. The educated and trained
women in agriculture can provide extension services as well as can help in transfer of
technologies to the farm women.

Feminisation of Indian agriculture is taking place. Discuss the reasons. Also critically
analyze the challenges faced by women farmers in India and elaborate on steps
required so as to improve the present scenario.
TOPIC:
General Studies 1
Poverty and developmental issues, urbanization, their problems and their
remedies
General Studies 2
Issues relating to poverty and hunger.
Urban agriculture: Building food-smart cities
Introduction:
By 2030, it is projected that 60 per cent of the population in developing countries will
live in cities. Cities have a strategic role to play in developing sustainable food systems
and promoting healthy diets. As India progresses towards a rapid phase of urbanisation,
attempts are being made to build urban agricultural systems.
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About Urban agriculture:

Urban agriculture, urban farming, or urban gardening is the practice of cultivating,
processing, and distributing food in or around a village, town, or city. Urban
agriculture can also involve animal husbandry, aquaculture, agroforestry, urban
beekeeping, and horticulture.
Urban agriculture can be practised on private land such as terraces or backyards of
residences, on public land such as parks, conservation areas, along the roads,
streams and railway lines and on semi-public land such as schoolyards and grounds
of educational and health facilities.
Urban agriculture uses resources such as organic waste as compost and waste water
for irrigation.
Community gardens, farms in city blocks, vertical farms based on hydroponics or
aeroponics and aquaculture are some smart urban agriculture models.
Challenges in feeding cities:

Resource scarcity, Unsustainable production and consumption patterns, and food
loss and waste.
Climate change: The conventional system requires trucks to crisscross the country
delivering food, while releasing greenhouse gases. Rural farms can also require
clearing huge swaths of forest land for crops.
Rapid urbanisation in the developing world is accompanied by a rapid increase in
urban poverty and urban food insecurity. This scenario is worsened by food
inflation, now a global phenomenon, and one that is likely to continue.
For the urban poor, expenses on food comprise a large share of their total
expenditure, but they are mostly dependent on the vagaries of informal
employment
The International Food Policy Research Institutes 2017 Global Food Policy Report
highlights how rapid urbanisation brings unique challenges to rural and urban areas,
and strong linkages between these sectors can help achieve SDG-2 (end hunger,
achieve food security and improved nutrition, and promote sustainable agriculture).
Urbanisation comes with challenges to agriculture and nutrition. Higher urban
incomes are associated with a dietary transition to more animal-sourced food, fats
and oil, refined grains, and fruits and vegetables, which requires more intensive use
of natural resources. Urban lifestyles tend to increase consumption of processed
foods and the urban poor are often limited to cheap unhealthy foods. At the same
time, as urban population grows, hunger and under-nutrition will also increase in
urban areas.
Urban agriculture as the solution:

Bringing agriculture into cities can lower food-related greenhouse gas emissions.
The practice could provide city residents easier access to fresh produce. Consumers,
especially the urban poor, can enjoy access to fresh produce at better prices.
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Providing access to healthy foods in neighborhoods that lack it, as well as economic
stimulation, community engagement, and significant reductions in greenhouse gas
emissions.
The practice of urban agriculture promotes economic development through food
production, builds social capital, community well-being and civic engagement.
Urban agriculture can be a sustainable strategy to reduce urban poverty, food
insecurity and enhance urban environmental management.
It contributes to poverty alleviation, social inclusion of the poor, women
empowerment, productive use of vacant plots and reuse of urban waste.
Urban growers can sell directly by avoiding intermediaries and spend less time on
transport, packaging and storage.
Further, urban agriculture can create employment opportunities for disadvantaged
groups.
Apart from the benefits to the economy, urban agriculture stimulates the
development of related micro-enterprises.
Greater access to produce could help improve the diet of city residents, and
replacing pavement with soil could help abate water runoff, for example.
The importance of urban agriculture is also being recognised by various organisations
such as the United Nations-Habitat and FAO (Food and Agriculture Organisation).
Challenges:
Inattentiveness in practising urban agriculture may cause health and environmental
risks such as use of contaminated land, inappropriate use of pesticides or raw
organic manure leaking into water sources.
Increasing pollution, and contamination of the citys waste water with industrial
effluents is a major constraint to the continued viability of irrigated farming and
aquaculture in urban and peri-urban areas.
While city-grown vegetables can have a slightly lower environmental impact than
those grown thousands of miles away, horticulture has never been the real problem.
It's not apples and tomatoes that are responsible for most of the diet's greenhouse
gas emissions; it's animals- meat and dairy products. Thus the focus should not only
be on growing vegeatbles.

Policy making:
Due to the multi-dimensional nature of urban agriculture, policy development and
action planning for it should involve multiple stakeholders from sectors such as
agriculture, health, waste management and community development. As being
incorporated in urban planning approaches in the United Nations Sustainable Cities
programme. Urban agriculture policies can consider a combination of social, economic
and environmental aspects.
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From the social angle, subsistence agriculture can form part of the livelihood
strategies of urban households.
The economic angle is primarily market-oriented urban agriculture, involving small-
scale, family-based initiatives and larger-scale entrepreneurial farms, run by private
investors or producer associations.
The environment management factor lies in nutrient recycling, adoption of agro-
ecological production methods, eco-sanitation and waste management.
Incorporating urban agriculture into the policies and systems of every city will play an
important role in unleashing its full potential.
Demarcating zones:
Cities can facilitate the access to urban spaces by having demarcated zones, similar
to Pretoria and Beijing. Making an inventory of the available vacant open land within
the city by community mapping or GIS-based data and by analysing its suitability for
agriculture will be a good starting point for enhancing access to land for urban
farming. Giving short- or medium-term leases to organised groups of urban
producers for gardening purposes can also help.
Clearly earmarking zones and avoiding unscientific intervention where only urban
agriculture suited to local conditions and resource availability is practised can
reduce possible health and environmental risks.
Conclusion:
Urban agriculture has the potential to become a vibrant economic sector that quickly
adapts to changing conditions and demands, intensifying its productivity and
diversifying its functions for the city. Its future will depend on its contributions to the
development of a sustainable and resilient city that is inclusive, food-secure, productive
and healthy, thus establishing food-smart cities. Urban agriculture, although not a
solution to food insecurity, has the potential to provide millions with access to food and
nutrition.

About 377 million people from Indias total population of 1.21 billion are urban
dwellers. With more than 10 million people migrating to cities and towns every year,
the total urban population is expected to reach about 600 million by 2031.As.
Discuss how with urbanisation the health and nutrition issues of urban residents
especially the urban poor is bound to increase. Critically analyze how urban
agriculture can be part of the solution to this problem.
TOPIC:
General studies 2
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Anti-defection law- Faces a new threat
In news:
After the assembly elections in 2014, a troubling situation has emerged in Andhra
Pradesh and Telangana. As of date, 27 legislators are alleged to have defected from
various parties to the ruling Telangana Rashtra Samiti (TRS) since 2014. The speaker, S
Madhusudhana Chary, himself a member of the TRS, has not taken any decision on the
disqualification petitions filed against these MLAs over these three years. Likewise, in
Andhra Pradesh, the Telugu Desam Party (TDP) in power has been able to get 21 MLAs
from the Yuvajana Shramika Rythu Congress Party (YSRCP) to defect to it, without
suffering disqualification. Here too, Speaker Kodela Siva Prasada Rao, a member of the
TDP, has taken no decision on the disqualification petitions.
The question that "does the Tenth Schedule, in its present form, strike the right balance
between the freedoms of the legislator and the need for respecting democratic
mandates and processes?" has emerged again.
A new threat to anti-defection law

The events in Telangana and Andhra Pradesh show that the anti-defection law faces a
new, devastating threat. The speakers in these two states refused to perform their
constitutional duties under the law by not taking a decision as to the disqualification of
a member of legislative assembly (MLA) within reasonable time. This means that an
MLA, who has otherwise violated the Tenth Schedule by defecting to another political
party, will not suffer the legal consequence of disqualification for such defection, but
instead will continue to enjoy her seat. This effectively renders the anti-defection law
irrelevant. This new modus operandi to defeat the anti-defection law seems to avoid
any possible judicial review.
About anti-defection law:

The (Fifty-Second Amendment) Act, 1985 introduced the Tenth Schedule to the
Constitution. The ostensible reason for the introduction of the Tenth Schedule was to
curb the so-called aaya-ram-gaya-ram practices of Indian legislators. The inspiration
for this moniker is said to be Gaya Lal, a Haryana MLA who changed parties thrice in the
space of one fortnight in 1967 while retaining his seat as an MLA. Defections thereafter
reached such epidemic proportions that the stability of some state governments was
always in question, distracting from any semblance of good governance. The Tenth
Schedule was offered as the solution to this issue. However, In its 32 years of existence,
political parties and legislators have come up with creative ways of avoiding the rigours
of the law.
Loophole in the law:
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Non-Partisan Speaker- By a narrow majority of three to two, a Constitution Bench held

in the Kihoto Hollohan case that the Tenth Schedule was largely valid, but read down
paragraph 7 which tried to exclude judicial review of the speakers decision on
disqualification. The minority judgment raised concern about its reliance on the position
of the speaker to make an impartial adjudication when the post clearly was a partisan
one. Subsequent years have proved the minority judgment right as speakers have only
become more partisan.
The speakers inaction in both the states is the latest manifestation of the underlying
problem highlighted by the minority judgment in the Kihoto Hollohan casethe
partisan role of the speaker.
The key question in the above case is whether a high court or the Supreme Court can
order the speaker to take a decision on such disqualification petitions.
Fixing the anti-defection law:

It is perhaps time to reconsider the anti-defection law.
The anti-defection law should be restricted only to votes on the budget and
confidence/no-confidence motions. Simply voting against the party whip should not
be a sufficient cause for disqualification.
The disqualification in case of defection should be as a matter of course and not
involve any discretion or decision-making on the part of the speaker.
While the Supreme Court has placed much faith in the neutrality and sanctity of the
office of the speaker, the reality is that the office is increasingly becoming partisan.
Thus, the role ole of the speaker under the law should be carefully scrutinized.
Conclusion:
The above changes are necessary since what has taken place in Telangana and Andhra
Pradesh is probably being watched with interest by political parties around the country.
Given that most ideas concerning governance in India, good or bad, have travelled from
the states to the centre, the day may not be far when the central government is formed
through an illegitimate majority gained only by flagrant violation of the Tenth Schedule.

Out of many challenges anti-defection law faces a major one is its reliance on non-
partisan role of speaker which increasingly is becoming partisan. Analyze.
Also read: Anti-defection Law- Liberate the legislator

http://iasbaba.com/2016/04/iasbabas-daily-current-affairs-30th-april-2016/
TOPIC:
General Studies 2
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General Studies 3
everyday life
Blockchain Voting
Introduction:
Allegations of EVM tampering by political parties have certainly planted seeds of
mistrust among the people. Studies allege that EVMs have hardware and software
vulnerabilities that can be exploited to commit election malpractices.
Contemporary and emerging technologies seek to address the core incompetencies in
the infrastructure of the voting system through advances in networking and encryption
methods. An emerging technology called blockchain is in various stages of
implementation across the world for voting and other public services.
Blockchain technology- an introduction

Blockchain can be thought of as a public account ledger, an immutable, transparent and
permanent one. Each transaction is recorded and stored in the ledger that is out on a
public bulletin board. Every transaction adds a block to the chain of transactions and
each one is evaluated by every user based on algorithms theyve agreed upon. Rather
than being kept in single location, a copy of the blockchain is stored on every users
server so that a user cannot alter it without other users finding out. Even though
blockchain was conceived for financial transactions, its characteristics make it an apt
solution that can support voting systems.
Due to its unique attributes of trust, transparency and immutability, such a system is
expected to mitigate issues like vote manipulation in political processes.
Blockchain voting- How it works?

In blockchain voting, each transaction is similar to a vote and through the use of multiple
blockchains along with public key encryption, the voting process is secured while
protecting the anonymity of voters. The votes can then be randomized more than three
times in the digital ballot box so that voters identities are not revealed.
After the polls are closed, a separate blockchain application is created for the counting
of votes in the digital ballot box. That blockchain should match the public bulletin
boards blockchain, proving that the online voting system has operated correctly.
Blockchains are transparent and designed to have a decentralized authority which
ensures that control is not in one hand and the process is visible to the public always.
Further, the audit trail of the transactions combined with public key encryption solves
the issue of auditability.
Examples from across the world
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Some countries are already experimenting with blockchain technology in voting

processes and for delivering public services.
Australia has declared its plan for using blockchain in voting and began projects for
prototyping the technology a couple of years ago.
In 2014, Denmarks Liberal Alliance political party voted in a blockchain-based
system for its internal elections. Such systems have also been adopted in Norway
and Spain.
Malta with a small population of 450,000, is about to embrace blockchain in land
registry, voting and other national services.
In South Korea, a community government used the blockchain platform in a local
funding ballot where around 9,000 votes were submitted. The platform made use
of smart contracts to facilitate the voting process.
Blocko, the Korean firm that developed the platform, claims that the technology,
developed in-house, helped register data, including voters information, voting
contents and more, on a blockchain.
Indian context:
In India, given the deep penetration of cellphones and the unique identification
(Aadhaar) system, blockchain could be a practical and feasible tool to fight voter
fraud and alleviate vote authentication and validation concerns.
Aadhaar cards and electronic-know your customer (e-KYC) norms are already
becoming mainstream. These critical infrastructure components can be leveraged
to implement blockchain solutions in voting and public services such as land
registrations, public-private contracts and other service level agreements (SLA).
The technology sector is also responding positively by increasing investments and
resources. For instance, around 32 blockchain firms were founded in India in 2016,
up from 23 founded before 2016, according to a fintech report by PwC.
The Reserve Bank of Indias research arm has also developed proof of concepts with
a few banks on blockchain, and it said in its white paper that the results are quite
encouraging, giving comfort and confidence in the implementability of blockchain
technology.
The proactive study and prototyping of emerging technologies creates an
encouraging environment for other independent government agencies to venture
out and experiment.
Conclusion:
Keeping in mind the emerging and potential threats to the current voting system, it is
essential to experiment with new technologies that can potentially secure the system.
Conducting research, building proof of concepts and end-to-end pilots by leveraging the
burgeoning activity in blockchain technology can be undertaken by the ECI. Given the
favourable conditions of improved infrastructure and interest, the time is ripe for the
ECI to explore blockchain technology as a future alternative to EVMs.
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Recent allegations of EVM tampering must be dealt with seriously as free and fair
elections is bedrock of Indian democracy. Discuss how technology like Blockchain
can be used to make EVMs tamper proof.
Also read: Recent controversy regarding Electronic Voting Machine(EVMs)

http://iasbaba.com/2017/05/iasbabas-daily-current-affairs-13th-may-2017/
TOPIC:
General Studies 2:
Important aspects of governance, transparency and accountability, e-governance-
applications, models, successes, limitations, and potential; Government policies
and interventions for development in various sectors and issues arising out of their
design and implementation.
Smart City Mission: Challenges and Way ahead
In news:
The Union Ministry of Urban Developments ministry recently released its fourth list
under the Smart City Mission, taking the total number of cities picked under the
Centres flagship project to 90 10 more cities will be included in the project.
Background:
Smart Cities can be defined as places where information technology is combined with
infrastructure, architecture, everyday objects, and our own bodies to address social,
economic, and environmental problems.
One of the stated objectives of the Smart City Mission is to act as a corrective to a
lopsided developmental pattern. The mission intends to create employment and
enhance incomes for all, especially the poor and disadvantaged leading to inclusive
cities.
Official data shows that merely half of the urban households have water connections, a
third have no toilets, the national average for sewage network coverage is a low 12 per
cent, and on an average only about 10 per cent of the municipal solid waste is
segregated. Public transportation and public schools and hospitals are woefully
disproportionate to the population densities within cities.
Issues:
Although Indias Smart Cities Mission has identified more than 20 priority areas,
interventions by the respective agencies are weak.
The emphasis on inclusive development has been diluted. Only 26 of the cities
selected last week have plans to provide affordable housing, education and medical
facilities.
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Smart city plans have also not found a way to deal with recurring problems. For
instance, Aizawl, which found a place in the urban development ministrys latest list,
was in the grip of a severe water crisis in the third week of this month. The shortage
was caused by damages to water pipelines by floods a problem which the city has
not yet addressed effectively. Guwahati, amongst the earliest to be included in the
smart city list, also has no effective plan to deal with floods that ravage it every year.
The path chosen to leapfrog to the level of urbanisation in the developed nations
can lead to creation of uneven geographies.
For urban planners, a greater concern is an urbanisation process that accords
primacy to technology a field where the private sector has unchallenged
monopoly over the basic needs of the city.
Plans and models till now that show that almost 80 per cent of the funds are being
channelized to less than three per cent area of many mission cities. These are mostly
well-off enclaves that already have decent infrastructure in place and are more likely
to yield a dividend for private investors.
The government does have plans to promote start-ups and infrastructure projects.
But these projects are concentrated in tiny pockets in the selected cities nearly
80 per cent of the Centres funds are skewed towards them. For example, in Pune,
from where Prime Minister flagged off the Smart City projects last year, around 75
per cent of the investment will be used for the development of a 3.6 sq km area in
the Aundh-Baner-Balewadi pocket, which comprises a little more than 1 per cent of
the citys total area.
Unless this urban entropy is addressed first, an overbearing emphasis on application
of digital technology or developing smaller areas in an attempt at instant urbanism
can have disastrous socio-spatial consequences.
The Smart City mission bypasses democratic processes by executing projects
through Special Purpose Vehicles wherein private corporations can have up to 40
per cent share-holding.
Way ahead:
The Centre has adopted a managed urbanisation approach in the chosen cities,
with the powers of municipal councils delegated to a Special Purpose Vehicle (SPV),
under the Companies Act, that will act in its own wisdom. Given that this is the
model adopted by the two-year-old Mission, the Centre must present a status
report on what the SPVs have achieved so far.
Any serious attempt at improving the quality of life in cities would depend on how
governments approach data. It would be smart, for instance, to use sensors to
estimate the flow of vehicles and pedestrians, and create smartphone applications
for the public to report on a variety of parameters.
Making such data open would enable citizens groups to themselves come up with
analyses to help city administrators make decisions, boost transparency and make
officials accountable. Example- Making street-level waste management data public
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would lead to a heat map of the worst sites, compelling managers to solve the
problem.
Access to special funding should make it mandatory for all public transport providers
city bus corporations, Metro Rail and suburban trains to provide real-time
passenger information in the form of open data, an inexpensive global standard that
raises both access and efficiency through smartphone applications.
The city development plans should be aligned with some of the governments
employment-generating initiatives, such as Make In India.
It is alright to overlay the citys infrastructure with technology but, for starters,
adequate infrastructure must be in place at a city-wide level. Creation of Smart
Cities is a welcome step, but in the process of urbanisation gentrification should not
take place.
Conclusion:
The ideology that guides the smart cities plan should recognise that the vibrant life of
cities depends on variety and enabling environments, rather than a mere technology-
led vision. Pollution-free commons, walkability and easy mobility, with a base of reliable
civic services, is the smart way to go. As the Centre finalises the list of cities, it needs to
remind itself of the original goal of the Smart City Mission making cities inclusive.

The most important objective of Smart City Mission was to bring in inclusiveness
within the city. However the model adopted may lead to gentrification instead.
Discuss.
TOPIC:
General Studies 2
What ails Indian education system?
Present state of Indian education:

The problem of poor learning outcomes is of particular concern, for it is a structural
issue pertaining to the design of curricula and ingrained rote learning methods.
Some years ago, PISA, the measurement standard adopted in Europe and utilised in
a large number of countries, studied Indian school quality in two states. The
depressing conclusion of the 110-country study was that India ranked second last
beating only Kyrgyzstan in the honours list.
The Annual Status of Education Report conducted by Pratham, an Indian NGO with
some credibility, had assessed in 2014 that 75 per cent of all children in Class III,
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over 50 per cent in Class V and over 25 per cent in Class VIII could not read texts
meant for Class II. Further, reading levels for all children enrolled in government
schools in Class V showed a decline between 2010 and 2012.
National Survey Sample results in 2015 indicated sharp decline in learning outcomes
in mathematics, science and English in the secondary schools.
A recent study in Delhi has come out with the finding that only 54 per cent of the
citys children can read something it could be only a sentence.
Low education standards-Is the Indian child responsible?

There is ample evidence that the Indian child is as good a learner as any in the world.
Indeed, Indian Americans are among the highly educated communities in the US,
according to many research studies. It is just sheer lack of basic opportunity that has
kept the Indian child at very low education standards a proof of apathy in
governance.
Wherein lies the problem?

The abysmal quality of governance, with politics permeating every aspect of
educational administration. Factors other than merit play a significant part in the
management of affairs; proper governance standards, with adequate incentives,
and checks and balances, have not been put in place. The focus of the entire
structure at the Centre and the states is on the minister, secretary, and the
educational regulatory institutions not on the student, teacher, principal and
school.
The system is not inclusive and does not give a second chance to the weaker
sections.
The fundamentals of teacher management, teacher education and training as well
as school governance and management are lacking at every step.
The curriculum is rote-oriented and little practical thought has been given to
pedagogy at any stage.
The school-level data are unreliable.
The access promised to the Economically Weaker Sections (EWS) has hardly been
implemented.
The infrastructure promised in the Right to Education Act (RTE) is scarcely visible on
the ground.
Reforms required:
Activity-Based Learning and teaching at the right level, tools for real learning and
skill-absorption must become a norm
While efforts of the present and previous government to boost the quality of
learning in higher and vocational education must be appreciated, policymakers
ought not to ignore early childhood education and primary schooling, the phases
during which the most important cognitive development milestones are attained.
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A healthy pupil-teacher ratio could help overcome many of the shortcomings. The
Right of Children to Free and Compulsory Education Act stipulates a 30:1 ratio.
Conclusion:
In todays competitive environment, the ability of students to read, write, count and
measure is a bare minimum. The country cannot continue to fail its children. For
Indias medium-term prospects of stability, and for the country to play a rightful role in
world affairs, it is imperative that the Centre takes this as a major area for intervention.

Both national and international surveys have painted a depressing picture of Indian
education system with Indian children having very low education standards. Discuss
the underlying problems and possible solutions.
While the government is focusing on building a clean, industrial, sustainable and
powerful country, not enough attention is being paid to education sector on which
depends the success of other sectors. Discuss.
TOPIC:
General studies 2
Breach of privilege-It's time to codify the rules
In news:
On June 21, the Karnataka assembly Speaker ordered the imprisonment of two
journalists for a year based on recommendations in two separate reports of its privilege
committees. The order has drawn widespread criticism as an effort to throttle the
media.
What provisions of the Constitution protect the privileges of the legislature?
Article 105 pertains to the powers, privileges, etc, of Parliament, its members and
committees while Article 194, which is identical to 105, protects the privileges and
powers of the houses of legislature, their members and committees in the states.
These sections protect the freedom of speech of parliamentarians and legislators,
insulate them against litigation over matters that occur in these houses, and give
powers to define the powers, privileges and immunities of a house, its members and
committees.
The Constitution confers certain privileges on legislative institutions with the idea
of protecting freedom of speech and expression in the House and ensuring that
undue influence, pressure or coercion is not brought on the legislature in the course
of its functioning.
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What constitutes a breach of privilege?

While the Constitution accords special privileges and powers to parliamentarians and
legislators to maintain the dignity and authority of Parliament and the legislatures,
these powers and privileges are not codified. There are no clearly laid out rules on what
constitutes breach of privilege and what punishment it entails.
The purpose of the law of privilege is to protect the independence of the House.
Privilege is to be invoked only if an intervention prevents members of the House from
discharging their duties. Typically, this amounts to preventing legislators from speaking
their mind.
What is the procedure in privilege cases?

All state legislatures have special privilege committees comprising 10 to 12 legislators
as members and usually headed by a senior politician from the ruling party. Whenever
a legislator has a complaint he/she can send a letter to the committee. The accused
person is summoned and an inquiry is conducted by the committee and based on
findings a recommendation is made to the legislature. When the matter is tabled in the
legislature, a debate can be initiated on the report and based on the assertions of the
House, the Speaker can order the punishment as defined by the privileges committee
or order otherwise.
Issues:
The provision is at times used to counter media criticism of legislators and as a
substitute for legal proceedings.
Breach of privilege laws allow politicians to become judges in their own cause,
raising concerns of conflict of interest and violating basic fair trial guarantees.
Unfortunately, breach of privilege is invoked to insulate elected representatives
from criticism.
Without a law codifying the legislative privileges, there is little merit in subjecting
anyone, leave alone a journalist, to penal action for allegedly breaching a legislators
privilege, unless there is a move or attempt to obstruct the functioning of either the
House or its members.
In the present case, by no stretch of imagination could the articles published by the
two journalists could have impeded the independent functioning of the three
legislators who had complained against them. If the members felt defamed, they
could have opted to pursue an appropriate judicial remedy in their individual
capacity.
There is very little clarity about the law of privilege, and whether it is proper for
legislatures to award punishments remains debatable.
There are many unsettled questions about the very nature of legislative privileges.
The absence of codification gives the House the freedom to decide when and how
breach of privilege occurs. Even if it is conceded that the House has such a right, a
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moot question is whether the legislature, through its Committee of Privileges,

should be a judge in its own cause. Whether the legislatures power to punish for
breach of privilege extends to handing down a prison term is still an open question.
With no codified laws for what constitutes a breach of privilege offence or
prescriptions for punishment, this is largely a grey area in legal terms.
Way ahead:
The legislature must use the power to punish for contempt or breach of privilege
sparingly, invoking it mainly to protect the independence of the House and not to
take away the liberty of critics. Legislators are in a position to clarify facts and refute
misconceived criticism. There is no reason for them to seek imprisonment for
contempt.
The time has come for the legislature to codify privileges and for the higher judiciary
to lay down the limits of penal action for breach of privilege.
The judiciary should immediately clarify the applicability of privilege, and ensure
that legislatures can no longer play plaintiff, advocate and judge, all rolled into one.
This case should serve as a spur to bring clarity to the provision of privilege.
Situations which attract it should be narrowly and unambiguously defined, and
legislatures should not have the right to impose punishments unilaterally, only
because some of their members feel impugned.
Conclusion:
Article 105 and Article 194 was inserted in the constitution with the basic objective of
allowing legislators and parliamentarians to function efficiently. However the breach of
privilege has not been defined clearly and thus space for its misuse. Thus its time to
codify the rules.

What do you understand by the term breach of privilege. Also discuss the issues
related with privilege of legislative members.
TOPIC:
General Studies 3
Awareness in the fields of IT, computers,
Challenges to internal security through communication networks, basics of cyber
security; money-laundering and its prevention.
Linkages of organized crime with terrorism.
General Studies 2
Government policies and interventions for development in various sectors and issues
arising out of their design and implementation.
Important aspects of governance
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Making Indian companies cybersecure:
India is to soon transform into digital economy. It is likely to help trigger a fresh wave
of economic growth, attract more investment, and create new jobs, across multiple
sectors. However this also creates cybersecurity challenges which must be dealt with
seriously.
Recent steps taken by government:

Introducing Digital Locker, which eliminates the need for people to carry hard copies
of documents issued by the government.
Demonetization, which has spurred the use of digital payments across the country.
Cybersecurity- one of the biggest challenge:

With the move towards a digital economy, increasing amount of consumer and
citizen data will be stored digitally and a large number of transactions will be carried
out online, by companies, individuals as well as government departments. That
makes India a bigger target for cyber-criminals and hackers.
The cost of cyberattacks in India currently stands in excess of Rs25,000 crore
($4billion). This is despite fact that there are many cyberattacks that go undetected
and unreported.
The losses emanate from operational disruptions, loss of sensitive information and
designs, customer churn and impact on brand image, as well as increase in legal
claims and insurance premium.
The issue is forecast to balloon further in the coming years, reaching as high as
Rs1.25 trillion ($20 billion) over the next 10 years, as the business operations of most
Indian companies become networked.
Issues:
Limited awareness of the impact and importance of cybersecurity currently. Many
companies do not treat it as a strategic agenda, but rather as a small issue for their
IT departments. In fact, a lot of cybersecurity incidents go unidentified and hence,
unreported.
Limited awareness of the need for specialized and customized industry-specific
cybersecurity measures which are significantly different from IT security and need
to be adapted by the industry.
Low existing capability, or lack of skill sets, to drive cybersecurity agendas. This
includes capability both in terms of people, cybersecurity strategies, as well as
actual implementation of security measures.
Conventional IT systems and firewalls are increasingly becoming ineffective in
preventing sophisticated hackers from creating havoc.
Way forward:
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Companies in India need to be proactive to ensure they foster efficiency and efficacy
in cybersecurity management. Cybersecurity must be put on a high priority on the
management agenda.
Companies also need to assess the assets that are most at risk. This will differ from
sector to sector and company to company. It is important to identify the most
valuable assets, the ones which will hit you the most, narrow down all possible
attack avenues and proactively prepare mechanisms and procedures to address
those risks.
It is also important that companies run regular stress tests, which simulate real-life
attacks.
Companies need to start cooperating with peers to learn from each others
experiencesidentify potential attack scenarios, identify hidden threats and co-
develop a security framework.
Organizations also need to enlist their employees in the fight against breaches.
There is a need to change the perception of cybersecurity from being a passive
agent, to an active business enabler.
The regulators need to ensure they are covering all aspects at their end. This
includes regulations that set minimum standards on cybersecurity for companies
across the country.
Tough laws are needed to be put in place for perpetrators of cybercrime to ensure
such criminals are deterred effectively.
Conclusion:
India is sitting on the cusp of digital evolution. The government has overcome its
detractors with an eagle-eyed focus to achieve this goal for the country. It is now up to
companies to ensure they are ready and prepared to harness and exploit the
opportunities this evolution will bring.

India is soon to transform into a digital economy. It will surely have multiple
benefits, however, with such transformation arises the biggest challenge of
cybersecurity. Discuss.
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INTERNATIONAL
TOPIC:
General Studies 2:
India and its International relations.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
Re-engaging with Europe

Prime Minister Narendra Modis recent visit to Germany, Spain, Russia and France brings
into sharp focus the shared dilemma India and Europe face with Americas shifting
policies, and the resultant flux on the world stage.
Europe's disappointment with Mr. Trump:

German Chancellor Angela Merkels strong comments aimed at President Donald
Trump, that Europe could no longer depend on traditional partners. Europes
disappointment with Mr. Trump at the G-7 and NATO summits was three-fold:
His refusal to reaffirm NATOs Article 5 on collective defence
His warning on the trade deficit with Europe.
His decision to pull America out of commitments in the Paris Agreement on climate
change.
India's disappointment with Mr. Trump:

The U.S. in the past few months has forged closer ties with China, indicating what
Mr. Modi called a loosening of the world order,
The U.S. has targeted Indian professionals and businesses to protect American jobs.
Mr. Trumps comments on the Paris Accord when he blamed India and China for
what he called an unfair deal.
Forging new alliances:

The time has come to explore new ways to cooperate on multilateral issues, including
terror, trade and climate change.
The suspended India-EU free trade talks for the Broadbased Trade and Investment
Agreement must be resumed at the earliest.
Coupled with Trumps warmth towards China and Russia, the unfolding Western
divide has begun to complicate the assumptions of Indias international calculus
since the end of the Cold War.
India by aligning with Europe on mitigating climate change amidst US pull out of the
Paris Accord and navigating the current divisions between Russia on the one hand
and Germany and France on the other has shown diplomatic finesse(skill).
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Concerns:
While the EU and India have a clear convergence in many areas, a dependable alliance
can only come from a concurrent worldview.
The Chinese Premier Li Keqiangs visit to Berlin and Brussels recently saw the EU
repose much more faith in Beijing than New Delhi would be comfortable with, given
the current Sino-Indian tensions. European leaders praised President Xi Jinpings
leadership on connectivity and climate change. Europe perceives its single largest
threat to be from Moscow, not Beijing.
Mr. Modis attendance at the St. Petersburg International Economic Forum to unveil
a new India-Russia vision statement for the 21st century along with President
Vladimir Putin could cause similar discomfort in European capitals.
India is soon going to formalise Indias membership of the Shanghai Cooperation
Organisation, seen as a counter-NATO coalition of Russia, China and Central Asian
states.
Way ahead:
India and Europe have to understand each other better, build a more pragmatic and
At a time when India is juggling its relationships with the United States, Russia and
China, India-EU dynamic could be an important element in the countrys multilateral
approach to the world
The government should also use this pause to reflect on how it would like to leverage
this partnership on the world stage where the EU may not be present as an
ubiquitous functional entity just yet but where some or all members are present.
The world must re-engage in a way that important issues like the climate change are
addressed and remains vital no matter how the U.S. views it.
Conclusion:
Standing at a crossroads few had expected at this stage, India will have to consider its
options carefully as it decides which coalitions to forge as the U.S. overturns traditional
ties in favor of transactionalism. But to play the long game in these tumultuous times,
India must get his domestic, economic and security decision-making in sync with the
new global imperatives.
With Mr. Trump's uncalled for behavior India needs to revamp its alliances with the rest
of the world.

Discuss how important it is for India and Europe re-engage themselves as the world
moves towards a new order with dramatic changes in U.S.'s policies towards rest of
the world.
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TOPIC:
General Studies:
affecting Indias interests
Understanding 2017 Qatar diplomatic crisis
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their diplomatic ties
with Qatar on 5 th , June 2017, accusing it of supporting terrorism and opening up the
worst rift in years among some of the most powerful states in the Arab world.
Qatar:
State of Qatar is a high-income economy, backed by the worlds third largest natural gas
reserves and oil reserves. The country has the highest per capita income in the world.
Qatar is classified as a country of very high human development and is the most
advanced Arab state for human development. Qatar is a significant power in the Arab
world, supporting several rebel groups during the Arab Spring both financially and
through its globally expanding media group, Al Jazeera Media Network. Qatar is a
constitutional monarchy, ruled by the house of Thani since 19 th century. The Emir of
Qatar is the head of state and head of government.
What is Gulf Cooperation Council ?

Saudi Arabia, Kuwait, Qatar, UAE, Bahrain and Oman came together in 1981 to form Gulf
Cooperation Council (GCC), the motive was increased cooperation amongst themselves
and a decreased dependence on foreign powers.This move was inspired by certain
major events from the late 70s (the Iranian revolution of 1978-79, the soviet invasion of
Afghanistan in 1979 and the Iran-Iraq war) that made it imperative for the Gulf countries
to come together more cohesively both for economic and security reasons.
Reason behind the crisis:

A want for Doha to fall in line with the GCCs visions, aims and objectives, instead of
pursuing more independent, domestic and more importantly, foreign policies.
The immediate provocation seems to be the payment of huge ransom to secure the
release of Qatari royal falconers kidnapped in Iraq more than a month ago.
Qatars refusal to depose members of Muslim Brotherhood, which is a long-standing
tiff between Doha, Dubai and Cairo.
Tensions were brewing within the Gulf Cooperation Council for the past six years
ever since Qatar started actively supporting the Muslim Brotherhood, a political
Islamist movement that the Saudis and their close allies see as a threat to stability
in West Asia.
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Riyadh seems to be emboldened by President Donald Trumps open embrace and

anti-Iran agenda, the kingdom could be making a renewed attempt to rally Sunni
countries under its leadership against Tehran.
Rift between GCC and Qatar

Most GCC nations have had long-standing issues with Qatar. On several occasions Qatar
has been criticized by its Arab neighbors of extending support to Islamic terrorist
organizations Muslim Brotherhood, a Sunni Islamist political group outlawed by Saudi
Arabia and UAE. Qatar has been for long, blamed for using its media and political clout
to support long-repressed Islamists during the 2011 pro-democracy Arab Spring
uprisings in several Arab countries.
Ramifications of the Qatar blockade:

The Qatar blockade will have interesting geo-political ramifications.
The fact that the sea-routes and borders from Saudi to Qatar are closed means much
of food supplies to the country will be blocked.
Iran has offered to ship food supplies to Qatar, saying the first such consignment can
reach the isolated country within 12 hours if need be. Acceptance of such an offer
will, of course, make the unfolding diplomatic situation even worse.
Qatar is an economic powerhouse in the Gulf and hosts the headquarters of the U.S.
militarys Central Command. The air war command for the U.S.-led fight against the
Islamic State in Iraq and Syria is also in Qatar. So any prolonged attempt to isolate
the country would complicate the fight against the IS yet more.
Economic consequences Oil prices rose after the moves against Qatar, which is
the biggest supplier of liquefied natural gas (LNG) and a major seller of condensate
a low-density liquid fuel and refining product derived from natural gas.
It threatens the international prestige of Qatar, which is set to host the 2022 FIFA
World cup and if Qatars land borders and air space were closed, it would wreak
havoc on the timeline and delivery of the World Cup.
Effects on India
Instability in Qatar could also have adverse effects for India.
New Delhi is the second largest buyer of Qatari liquefied natural gas (LNG), after
Japan. Indias Petronet LNG, as part of a long-term deal, imports 8.5 million tones
of LNG from Doha every year. One consignment worth Rs 150 crore arrives on Indian
shores every 72 hours.
Besides this, more than 650,000 Indians live and work in the country, and any major
deterioration in the situation could put India into difficulties. The interest of citizens
living and working in Qatar, many of them engaged in projects related to the FIFA
World Cup in 2022, is paramount for India.
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Conclusion:
While Saudi Arabia and partners have escalated matters with Qatar significantly, de-
escalation may take time, and is harder to orchestrate as is in most such cases. Both
Qatar and the Saudi-led GCC members will need to find a common ground for their
grievances, but a long-drawn diplomatic rift of such nature has more adverse affects for
Qatar than the others.
What West Asia requires is a united front against terror and lowering of Saudi-Iran
tensions. Opening new fronts in the rivalry will only destabilise the region further.

The Middle-East region has been strife of rivalries since decades. Discuss the reasons
and ramifications of recent crisis between Qatar and GCC majorly led by Saudi
Arabia.
TOPIC:
General studies 2
India and its neighborhood relations, International relations.
Important International institutions, agencies and fora- their structure, mandate.
SCO membership: Challenges & Opportunities
Why in news:
India and Pakistan are likely to become full members of the Shanghai Cooperation
Organisation (SCO) at the Astana summit on June 8-9, 2017. The addition of another 1.5
billion people would provide fresh excitement, for the SCO will now represent the voice
of three billion people half the worlds population.
About SCO:
The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, and
military organisation. It was founded with the aim to strengthen relations among
member states and promote cooperation in political affairs, economics and trade.
Competing geopolitical ideas:

Indias prolonged quest to join the SCO brings an enduring tension between seemingly
competing geopolitical ideas that have animated India since the end of the Cold War:
Where should Delhi pitch its tent? In the continental or maritime domain?
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Must India define itself as a Eurasian or Indo-Pacific power?
What drove India towards SCO?

Need to revamp relation with Central Asia. The presumed need to compete with
other powers provided the justification. With Pakistan blocking Indias access to
the region, there is little that Delhi can do to decisively influence the geopolitics of
inner Asia.
Focus on building a multipolar world. Afraid of the so-called unipolar moment after
the collapse of the Soviet Union, India joined the Russian campaign to construct a
Eurasian coalition that would limit American power. India believed that Russia and
China would provide an insurance against the presumed unreliability of America as
a partner. This calculus saw India join the trilateral forum with Russia and China, the
BRICS, the SCO and the AIIB.
.
Challenges at SCO:
Terrorism
Combating terrorism, extremism and separatism are among the major objectives of
the SCO.
While China might talk the talk, it is unlikely to put any pressure, verbal or real, on
Pakistan to stop supporting cross-border terrorism and separatism in Kashmir.
To make matters worse, China might use the SCO to bring pressure on India to
engage and negotiate with Pakistan on Kashmir in the name of good
neighbourliness that SCO wants to promote regionally.
As Russia draws closer to China and Pakistan, Moscow is unlikely to come to Indias
rescue on Kashmir, as it used to in the past.
Promoting connectivity
The SCO is also focused on promoting connectivity and regional integration in inner
Asia. Any hope that this might work to benefit India looks improbable for the
moment. All SCO members are participating in the Belt and Road initiative, and the
organization is the initiative's security guarantee.
All this is a challenge as Delhi has refused to participate in the Belt and Road Forum
in Beijing last month as Chinas belt and road initiatives are about promoting
Beijings economic, political and strategic interests all of which run headlong into
Indias territorial sovereignty and claim to regional primacy in South Asia and the
Indian Ocean
Opportunities at SCO:
India could gain from SCOs Regional Anti-Terrorist Structure (RATS) manned by 30
professionals analyzing key intelligence inputs on the movements of terror outfits,
drug-trafficking, cyber security threats and public information in the region that we
in India know little about.
Participation in SCOs counter-terror exercises and military drills could be beneficial
to the Indian armed forces.
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Profiting in terms of energy security would be critical, but the idea of a SCO Energy
Club will gain full meaning only if Iran joins the grouping eventually.
SCO might provide a rare opportunity for the militaries of Pakistan and India to share
several multilateral tables antiterrorism structure, military exercises etc. under
the SCO framework, which in many ways might change the regional climate and have
a positive impact on Indo-Pak relations.
India needs to adopt following strategy at the SCO:

Prevent Pakistan and China ambushing Delhi on the Kashmir question at the SCO
summits. India must remind the region that China is a party to Indias territorial
disputes in Kashmir and is an ally of Pakistan. India should restrict to the SCOs
charter which prohibits the raising of bilateral issues.
Delhi must also take advantage of the few diplomatic opportunities the SCO might
present in intensifying engagement with Central Asian states.
The SCO could also provide a forum to reduce Indias current frictions with China
and Russia.
Delhi must prepare itself to seize potential shifts in SCO politics over the longer term.
The political turbulence generated by US President Donald Trump, and the implicit
contradictions between Russian and Chinese interests, are likely to surface at some
point. Even as they talk multipolarity, China and Russia are eager to cut separate
bilateral deals with Trump. Russian and Chinese interests may also not be in total
alignment in Central Asia.
In the meantime, it should seek to benefit from maintaining a regional presence,
tracking regional trends in security, energy, trade, connectivity and cultural
interests.
India should use the SCO atmosphere for building better convergences with China
and Russia as well as to minimise the intensity of China-Pakistan alignment which
actually undercuts Indias direct access to Eurasia.
'Indo-Pacific' - Another geopolitical theatre and yet another opportunity:

India must be realistic about the limits to its role in a continental coalition led by Russia
and China (read SCO).
Thus, we need to strengthen efforts towards building Indias maritime partnerships. If
geography constricts Indias forays into Eurasia, it beckons Delhi to build on its natural
advantages in the Indo-Pacific.
In Eurasia, the strategy must be to limit the damage from the Sino-Russian alliance and
probe for potential opportunities.
As the US becomes an unpredictable actor that is unable or unwilling to balance the
heartland powers- China and Russia, Delhi must turn to Japan and Western Europe to
secure its strategic interests. India must necessarily play in both Eurasian and Indo-
Pacific space.
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Conclusion:
To be sure, multiple conflicting interests would intersect at the SCO forum, ranging from
regional and global issues to combating terrorism. Indias positions may sometimes be
at odds with those of other countries which have been going along with the Chinese
viewpoints.
But India needs to adopt a strategy which helps her tide over challenges and tap the
opportunities.

India and Pakistan were recently given full membership of Sanghai Cooperation
Organisation. As a full member of SCO India needs to adopt a cautious strategy. Discuss.
Also outline the challenges and the opportunities that the forum provides.
Also read: India and SCO

http://iasbaba.com/2016/06/iasbabas-daily-current-affairs-11th-june-2016/
TOPIC:
General Studies 2:
Redefining India-Russia relationship

St. Petersburg Declaration:
Marking 70 years of diplomatic ties, Prime Minister Narendra Modi and Russian
President Vladimir Putin signed the St Petersburg Declaration in June 2017, envisaging
an action plan for deepening relations in all areas, including political and economic
development of the two countries and also to ensure that their ties contribute to the
establishment of a more peaceful and just world order.
Key Points:
Both the countries will work towards a higher level of military- to- military
cooperation by holding regular joint land and sea military exercises and this year
both the countries will conduct the first ever Tri-services exercise INDRA-2017.
Stating that the economies of India and Russia complement each other in the energy
sector, it said that they would strive to build an 'Energy Bridge' and expand bilateral
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relations in all areas of energy cooperation, including nuclear, hydrocarbon, hydel

and renewable energy sources and in improving energy efficiency.
According to the Declaration, the growing nuclear power partnership between India
and Russia has opened opportunities for developing advanced nuclear
manufacturing capabilities.
It said that connectivity must be strengthened, while reiterating their commitment
to build effective infrastructure for the International North South Transport Corridor
and implementation of the Green Corridor.
The Declaration said both India and Russia regard the establishment of the multi-
polar global order in international relations and thus, they would enhance
collaboration to democratize the system of international relations, based on the
principles of the rule of law and the central role of the United Nations.
Russia reaffirmed its support for India's bid for permanent membership in the UN
Security Council and the Nuclear Suppliers Group.
Both countries strongly condemned terrorism in all its forms and manifestations.
Both the nations called for early conclusion of negotiations on the Comprehensive
Convention on International Terrorism to strengthen the global counter-terrorism
normative and legal framework to combat this scourge.
Convergence:
In specific areas such as defence hardware and technology, nuclear energy and oil
and gas any cooperation is of mutual benefit.
There may even exist longer-term convergence in helping shape a multipolar
international political and security architecture.
Divergence:
However, these shared interests must be balanced against divergences that are inherent
in the very dramatic transformations which have taken place in the two countries
themselves, and in the regional and global situation since the end of the Cold War, which
have inevitably altered the overall context of our relations.
Shared China concerns
It is the shared perception of a Chinese threat which brought Delhi and Moscow
together.
The end of the Cold War changed this, with Russia no longer looking at China as a
current security threat. The early settlement of their border dispute, the expansion
in their economic and trade relations and the emergence of China as a major
recipient of Russian weapons and defence technologies brought about an
asymmetry in perceptions of China between India and Russia.
But Russian perceptions of a long-term Chinese challenge to its interests persisted,
and still do. For example, Russian nuclear experts have been reluctant to deep cuts
in nuclear weapons in bilateral negotiations with the U.S. precisely because the gap
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with Chinas expanding and qualitatively better nuclear arsenal is diminishing and
this heightens Russian concerns.
Chinese inroads into Central Asia and Eastern Europe are also a concern for Russia,
which regards both these regions as part of its strategic periphery.
What this means for India?

We need to adjust to a new and more positive phase in Russia-China relations, learn
not to
We shouldn't rely on Moscow to confront Chinese hostility towards India or support
India against Pakistan.
We should seek to build a broader framework of relations based on the longer-term
Russian concerns about the emergence of China.
Russia, like India, prefers a multipolar world and is unlikely to accept a junior league
status in a Chinese-dominated world. For the same reason, Russia may welcome a
higher-profile role by India in Eastern Europe and Central Asia. In this context, India
should pursue the proposed Free Trade Agreement with the Eurasian Economic
Union and seek to play a more active role in the Shanghai Cooperation Organisation
as a member.
A more united and coherent European Union may well be open to re-engaging with
Russia, and this should be encouraged by India. In an increasingly fluid international
situation, an India which has strong relations with the U.S., Western Europe and
Russia is in a unique position to play a larger geopolitical role. It can use its enhanced
relations with each to upgrade its relations with the other major powers. This will
also diminish Chinese pressures on India.
Defence, nuclear, energy ties
India and Russia should focus on maintaining and expanding their already
considerable cooperation in the defence hardware and nuclear energy sector. Both
sectors are important to Russia as well as to India.
The loss of the Indian market in these two areas would be a blow to Russia and they
would deprive India of advanced technology not always accessible elsewhere.
Since the end of the Cold War, India sought to establish a strong, long-term energy
partnership with Russia. While some important deals like the Sakhalin oil and gas
project have been a success, the early promise of expanding cooperation in this
sector has been mostly belied.
Russia has seen its interests better served by giving priority to Western Europe and
China. India has been rather low on the radar.
In St. Petersburg, there was a reference to India and Russia setting up an energy
corridor and another reference to the use of natural gas as a relatively clean and
climate-friendly fuel. This must be followed up with some concrete and practical
steps.
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Conclusion:
Russias current closeness to China is tactical; its long-term interest both globally and in
its neighborhood are not aligned with China. India should pursue its relations with
Russia keeping this reality in mind. This 18th annual India-Russia summit appears to
have been more substantive than the previous ones. The altered context has to be
acknowledged by both sides and there should be an unsentimental reckoning of both
the challenges and opportunities that could define India-Russia relations in the new
millennium.
This year India and Russia celebrated 70 years of diplomatic ties. Discuss how the
altered global context calls for redefining India-Russia relationship.
TOPIC:
General Studies 2
affecting Indias interests
interests.
China's inroads into Myanmar

The first priority Aung San Suu Kyi had on assuming office was to establish ethnic peace
in Myanmar, where minority groups have resorted to armed insurrection. President
Thein Sein, who headed the Government earlier, had negotiated cease-fire agreements
with a number of these groups. But, a number of influential and powerful groups
continued with their revolts.
Rather than appreciating Suu Kyis efforts to seek ethnic peace, western powers and
Islamic busybodies such as Turkey and Malaysia chose to pressurise Myanmar for
alleged violation of the human rights of its Rohingya Muslim population.
On the other hand, Chinas approach to Myanmars ethnic problems which is forcing
Myanmar into a tight Chinese bear hug.
How China prevails
The long-running ethnic insurgencies in Myanmar now involve 22 armed groups,
comprising ethnic minorities. Amongst the strongest of these groups are the United
WA State Army (UWSA) and the Kachin Independence Army (KIA), which operate
across the India-China-Myanmar tri-junction. These groups receive weapons and
logistical support from China.
The KIA has backed Indias north-eastern separatist groups such as ULFA and the
NSCN (Khaplang), in consultation with government officials in Chinas neighbouring
Yunnan province.
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Cross-border attacks by the UWSA are a major instrument of China to pressurise

Myanmar.
China also regards Myanmar as a land bridge to the Indian Ocean. Beijing skillfully
used its security and economic leverage to persuade Suu Kyi to give it a significant
say in her quest for peace agreements with armed separatist groups.
China shielded Myanmar from western criticism in the UN, on the issue of Rohingya
Muslims.
It reportedly persuaded the UWSA recently to accept a ceasefire. It is acting similarly
with the Kachin Independence Organisation (KIO).
Large Chinese infrastructure and mining projects in Myanmar have come up since
the early 1990s, with scant regard for environmental degradation and displacement.
Apart from displacement of thousands, this project involved the transmission of 90
per cent of the power generated to China.
India at a disadvantage
India has to recognise the reality that it cannot match China in weapons supply, or
in a range of infrastructure and industrial projects. India, for example, cannot match
Chinese supply of JF 17 fighters manufactured in Pakistan, as our much-touted Light
Combat Aircraft has not yet been operationalised.
Likewise, our public sector infrastructure projects such as the Sittwe Port, the
Kaladan Corridor linking our landlocked north-eastern States to the Bay of Bengal at
Sittwe, or the proposed 1800 MW hydro-electric project, have either been delayed
or abandoned.
While diplomatic efforts enabled us to get a stake in successful offshore gas
exploration, we lost access to the gas because of our inability and indeed
inefficiency in devising measures to transport/transfer and utilise the gas, which is
now transshipped to China by a pipeline.
Private sector projects to use Myanmars vast bamboo resources for the paper
industry, or investment in the agricultural sector have similarly been delayed, or
failed.
Problems for India have now increased, because of covert Chinese support for
Indias north-eastern separatist groups. Chinas envoy to Myanmar has facilitated
talks with the KIO a development India should closely monitor. China now has an
ability to significantly influence Myanmar insurgent groups.
India-Myanmar cooperation needs a review:

We need to review and restructure our economic cooperation with Myanmar, with
an increasing focus on assisting the populations living close to our borders through
schemes for education, health, communications and small/village industries. The
main area which has won us gratitude is vocational training and education facilities
for Myanmar personnel.
The rupee could be made legal tender for such cross-border projects.
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This could be undertaken in close cooperation with Japan and the Asian
Development Bank and duly integrated with new measures now being considered
for giving momentum to Regional Cooperation through BIMSTEC.
Conclusion:
Despite above developments, India has continued its engagement with Myanmar, with
both Army Chief General B. P. Rawat and Foreign Secretary Jaishankar visiting Myanmar
recently. The Indian Armed Forces have traditionally had friendly relations with their
Myanmar counterparts. Both countries face problems of armed separatist groups using
each others soil. This should be focused upon. Further India must reorient and review
its relationship with Myanmar if it wants to maintain stability in Northeastern region of
the country.

India and Myanmar relation is facing challenges due to China's inroads into
Myanmar. Discuss advantages which India has over China which it can leverage to
improve relation with Myanmar.
Northeastern India is already a disturbed region due to insurgency. Discuss how
strengthening of China's relationship with Myanmar may further worsen the
situation.
TOPIC:
General Studies 2
India's US policy in the age of Trump
At the end of this month, Prime Minister Narendra Modi will head to the US to meet
President Donald Trump. It might just end up being the defining visit of Modis US policy
in the age of Trump.
Trump's policy towards India:

During a campaign for a US presidential candidate, Trump termed India as a key
strategic ally and promised that if voted to power, India and the US would become
best friends.
His hard-line position on Pakistan and Islamist extremism also endeared him to a
section of Indians.
But since he became President, Trump has given mixed signals about his priorities,
confusing many in India. Though his aides have often delivered tough messages to
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Pakistan about terror, his approach has been erratic at best. The US ambassador to
the UN, Nikki Haley, went so far as to say that the US may play a proactive role in
de-escalating tensions between Islamabad and New Delhi.
Trump withdrew from the Paris agreement. Targeting India specifically, Trump
argued that India makes its participation contingent on receiving billions of dollars
in foreign aid and that it will be allowed to double its coal production by 2020.
Economic and trade ties have also been under stress, with Trump asking federal
agencies to review the temporary visa programme for high-skilled foreigners to
ensure preference was accorded to the most-skilled and highest-paid.
Trump has been critical of H-1B visas, suggesting that they were being used by
outsourcing firms to bring in low-skilled workers on low wages who displace
Americans. His larger approach towards economic globalization has produced a
paradoxical situation wherein China is trying, with some success, to project itself as
a defender of the extant global order.
Trumps China policy

It is Trumps China policy which will have the most significant long-term impact on
India and regional geopolitics.
After angering China by questioning Beijings sovereignty over Taiwan under the One
China principle, Trump went back on it and endorsed it.
He later expressed his absolute confidence that (Xi) will be trying very, very hard to
resolve the North Korea issue. Despite this, North Korean behaviour remains
provocative.
Frustration with China is growing in Washington. There is growing concern that as
Trump turns America inwards, he is ceding the strategic space to China.
Future of India-US relations

Overall, there remains a lot of confusion about the future trajectory of India-US
relations under Trump.
Bilateral relations have soared after Modi made significant personal investment in
boosting ties. But now he faces the challenge of building a rapport with an
administration which seems intent on retreating to the margins of global politics and of
pursuing a transactional agenda.
The strategic logic that largely drove George W. Bush and Barack Obamas overtures to
Indiathat Indias rise is in Americas larger interestcan no longer be the basis of
India-US engagement under Trump.
Conclusion:
There are indeed challenges here as New Delhi has become used to the broader
strategic logic and has traditionally been averse to transactional relationships. But
there are new opportunities, if only Indian policy makers remain open to new
possibilities.
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Discuss the challenges India-US relationship face under Trump's era. Also mention
how Indian policy makers should overcome the challenges posed by changing
dynamics when it comes to US.
TOPIC:
General studies 2:
India and its neighborhood- relations.
Land grab by China in Himalayan region
Introduction:
China has been effectively using its civilians and consequently army troops to further its
expansion into the Indian soil. Bite by kilometre-size bite, China is eating away at Indias
Himalayan borderlands. From Shyok, the northernmost border village in the sector
where China has been the most aggressive -- the latest reported aggression was in April
this year in which they grabbed further some 30 kms of the Indian territory.
On average, China launches one stealth incursion into India every 24 hours. The Peoples
Liberation Army (PLA) is actively intruding into vacant border space with the objective
of occupying it. And according to a former top official with Indias Intelligence Bureau,
India has lost nearly 2,000 sq. km to PLA encroachments over the last decade.
Use of civilian resources for garbing territory:

The strategy underlying Chinas actions is remarkable. On land, like at sea, China uses
civilian resourcesherders, farmers and grazersas the tip of the spear. Once civilians
settle on contested land, army troops gain control of the disputed area, paving the way
for the establishment of more permanent encampments or observation posts. Similarly,
in the South China Sea, Chinas naval forces follow fishermen to carve out space for the
reclamation of rocks or reefs. In both theatres, China has deployed no missiles, drones
or bullets to advance its objectives. It is indeed remarkable how without firing a bullet
China is meeting its objectives.
Although Chinese aggression in the South China Sea has garnered criticism and warnings
both from the United States and International Court while the same cannot be said for
its aggression on the land. Chinas land expansion has gone unnoticed.
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India's response:
Chinas non-violent terrestrial aggression has garnered less opposition than its blue-
water ambition, which has been challenged by the US under international law.
Indian leaders have at times even seemed to condone Chinas actions. During a recent
panel discussion in Russia, for example, Prime Minister Narendra Modi said that
although China and India are at odds over borders, it was remarkable that in the last
40 years, not a single bullet has been fired because of [it].
Issues the border people face:

The people feel utterly abandoned by the governments -- state as well as the
central.
Widespread sense of deprivations at the absence of the most basic necessities of
life gets painfully accentuated at the stark contrast with the amenities visible a
stone's throw across the border in Tibet where they seem to have everything --
hospitals, schools, network of excellent roads, 24x7 electricity and mobile phones
with robust connectivity.
Since the land grabs by China seems unstoppable and India is perceived indifferent,
the border people are having wrenching doubts over India's commitment to them
and its territorial integrity.
Having seen their land being steadily gobbled by China without any resistance, the
border people have begun suspecting their sense of nationhood.
The on going loss of land and livelihood has also drastically altered the people's
perception of our troops. Unaware of the intricacies of the game between Delhi and
Beijing, their pride in the own troops is palpably eroded because they believe they
are 'weak' and coward'. Instead of providing them with a sense of security and
comfort, the troops often harass and gratuitously punish the villagers in the guise of
enforcing the Indian customs law.
According to the villagers while the Chinese troops let them reach the market and
buy the goods without let or hindrance, Indian troops harass them and do not spare
even women carrying tea in China made flasks to their menfolk. The nearest Indian
market is at Leh, a long week away. For many it is way beyond their reach. Profits
added, the goods are costlier than the Chinese markets across the border.
Reasons behind increase in China's territorial assertiveness:

The Peoples Liberation Army, the armed forces of the Communist Party of China, is
highly active at the border. They seek ways to intrude into the vacant Indian territory
with the intention of occupation.
Chinas fast-growing trade surplus with India, which has doubled to almost $60
billion, has increased Chinese President Xi Jinpings territorial assertiveness.
Since there is no clear distinction between the Indian territory and the Chinese
territory, any incursion by Chinese troops into India is justified by the Chinese as PLA
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operating on their land. They promised to exchange maps with India in 2001 but
that promise was never met.
By acquiescing on bilateral tradethe dumping of Chinese-made steel on the Indian
market is just one of many examplesIndia has inadvertently helped foot the bill
for the PLAs encirclement strategy.
Indian border police patrolling the area dont even carry weapons. With such a
docile response, China has been able to do as it pleases along Indias northern
frontier. Chinas support of the Pakistani military, whose forces often fire at Indian
troops along the disputed Kashmir frontier, should be viewed in this light.
Way out:
India needs to adopt a different strategy, having been on the defensive stance for so
many years. PM Modis narrative of border peace is not as strong to deter the plans of
PLA or China. India has failed to deter China and it is crucial for the Indian government
to adopt a new stance so as to counter the aggression. China has become more
assertive, underscoring the need for a new Indian containment strategy.
We need to abandon the platitudes. Modis calls for border peace and tranquillity
might be sincere, but his tone has made India look like a meek enabler.
A more regionally integrated Indian economy would serve as a counterweight to
Chinas territorial expansion.
India should also beef up its border security forces to become a more formidable
barrier to the PLA. Indias under-resourced Indo-Tibetan Border Police, under the
command of the home ministry, needs training and equipping, and placing them
under the command of the army. This would signal to China that the days of an open
door are over.
Strengthening the border police exploring the vast number of economic
opportunities will send a powerful message to China
Conclusion:
The PLA began honing its salami tactics in the Himalayas in the 1950s, when it sliced
off the Switzerland-size Aksai Chin plateau. Later, China inflicted a humiliating defeat
on India in the 1962 border war, securing peace, as a state mouthpiece crowed in 2012,
on its own terms. Today, China pursues a cabbage approach to borders, cutting off
access to an adversarys previously controlled territory and gradually surrounding it
with multiple civilian and security layers. Against this backdrop, the true sign of
Himalayan peace will not be the holstering of guns, but rather the end of border
incursions. Indias accommodating approach has failed to deter China. To halt further
encroachments, India will need to bare its own teeth. Ending these incursions should
be of prime importance to India if it wants Himalayan Peace. Self-praising that there
have been no bullets from either side does not amount to Indias borders being secured.
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A recent study highlights how China is garbing India's territory across Himalayan
borders. Discuss the strategy used by China and how India hasn't responded to such
territorial assertiveness effectively.
China in recent times has grown more and more assertive both on land and sea.
Discuss how India can contain China in this regard.
TOPIC:
General Studies 2
India and its neighborhood- relations.
20 years of BIMSTEC: Hopes and Apprehensions
In news:
On June 06 this year, the Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation (BIMSTEC) completed 20 years of its establishment.
About BIMSTEC:
Comprising of Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan,
BIMSTEC is home to 1.5 billion people, accounting for approximately 21 per cent of the
world population, and a combined GDP of US$ 2.5 trillion. The growth rate sustained by
the BIMSTEC countries is around six per cent per annum.
Initially known as the Bangladesh-India-Sri Lanka-Thailand Economic Cooperation (BIST-
EC), it was formed after representatives from the aforesaid four countries met at
Bangkok in June 1997. With Myanmar joining the grouping as a full member in
December the same year, the BIST-EC was renamed as BIMST-EC. In February 2004,
when Nepal and Bhutan too joined, the grouping was renamed as the Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic Cooperation or BIMSTEC.
So far, BIMSTEC has held three summit meetings. The first one was held in Thailand in
2004, seven years after the establishment of the grouping; the second one was held
four years later in India in 2008, and the third one six years later in Myanmar in 2014.
The fourth summit meeting is expected to take place later this year in Nepal, the current
Chair of BIMSTEC.
Objectives:
According to the June 1997 Declaration on the Establishment of the Bangladesh-India-
Sri Lanka-Thailand Economic Cooperation (BIST-EC), also known as the Bangkok
Declaration, the founding objectives of the sub-regional initiative were:
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Creating an enabling environment for rapid economic development of the sub-

region.
Encouraging the spirit of equality and partnership, promoting active collaboration
and mutual assistance in the areas of common interests of the member countries.
Accelerating support for each other in the fields of education, science and
technology, etc.
Recently, Prime Minister Narendra Modi, in his message on the 20th anniversary of
the establishment of BIMSTEC, described the sub-regional grouping as a natural
platform to fulfill Indias key foreign policy priorities of Neighbourhood First and
Act East.
Earlier in October 2016, India had hosted the BIMSTEC members at Goa during the
BRICS (Brazil, Russia, India, China and South Africa) Outreach Summit. It was viewed
as a pragmatic step on Indias part, demonstrating its potential to play the role of a
regional leader, an aspiration which was instrumental in transforming its Look East
into Act East policy. The BRICS-BIMSTEC Outreach Summit is believed to have given
BIMSTEC its due importance by inviting its members to participate in a larger
platform comprising five major emerging economies of the world.
Within few months of the Goa Summit, India hosted the first meeting of the
BIMSTEC National Security Chiefs in New Delhi in March 2017.
Potential of BIMSTEC:
BIMSTEC provided opportunities to all its member countries
For India, the establishment of BIMSTEC, was an opportunity, besides the
Association of Southeast Asian Nations (ASEAN), to engage with Southeast Asia, at
least partially. BIMSTEC provided scope for direct connectivity with Southeast Asia
via Northeast India and Myanmar. Counter-terrorism and anti-insurgency
cooperation with Myanmar and other members, potential access to alternative
energy resources in Myanmar as well as economic opportunities available in the
ASEAN region had evoked sufficient interest.
Besides India, other members too considered it as an important mechanism to
achieve their national goals and regional aspirations. Myanmar, for example,
became a member at a time when the junta in the country was facing serious
international criticism. Membership in regional and sub-regional groupings like
ASEAN and BIMSTEC provided its military rulers an opportunity to gain some sort of
recognition among the regional stakeholders.
Thailand, on the other hand, was looking for an opportunity to enhance its trade
and connectivity with the South Asian countries under the ambit of its Look West
policy. So, in a way, Indias Look East and Thailands Look West policy
complemented each other within the ambit of BIMSTEC. The ongoing India-
Myanmar-Thailand Trilateral Highway and the India-Myanmar Kaladan Multimodal
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Transit Transport Project are expected to further augment connectivity and

economic cooperation in the sub-region and beyond.
Countries like Sri Lanka considered BIMSTEC as an opportunity to engage with the
economically booming Southeast Asian countries, especially after several failed
attempts to join ASEAN in the decade prior to the establishment of BIMSTEC.
For the land-blocked countries like Nepal and Bhutan, BIMSTEC holds the prospect
of enhancing their connectivity with the rest of the region.
Challenges:
BIMSTEC does not seem to have made much progress. Despite its huge potential in
terms of enhancing regional cooperation between parts of South and Southeast Asia,
BIMSTEC has long suffered from lack of resources and proper coordination among its
member states.
India, the largest member of the grouping, has often been criticised for not
providing a strong leadership to BIMSTEC. Both Thailand and Myanmar are criticised
for having ignored BIMSTEC in favour of ASEAN.
Absence of a permanent secretariat for a long time and lack of commitment to
invest in several priority areas identified by the member states were seen as some
of the key institutional factors holding the BIMSTEC back. It took 17 long years for
BIMSTEC to finally establish its permanent secretariat in Dhaka in 2014.
The noodle bowl effect of regionalism too was at work as formation of another
sub-regional initiative, the Bangladesh-China-India-Myanmar (BCIM) Forum, with
the proactive membership of China, created more doubts about the exclusive
potential of BIMSTEC.
Renewed Interest:
India has been clearly signaling its renewed interest in BIMSTEC. India is already the lead
country for four priority sectors, namely, transportation and communication,
environment and disaster management, tourism, and counter-terrorism and trans-
national crime.
In an effort to strengthen sub-regional cooperation on combating terrorism and
trans-national crime, the BIMSTEC member states are trying to implement a
convention on anti-terrorism. Except for Nepal and Bhutan, all member states of
BIMSTEC have ratified it.
BIMSTEC is now trying to sign a Convention on Mutual Legal Assistance in Criminal
Matters.
Progress made in other sectors are- India hosting a working group meeting to
finalise the BIMSTEC Motor Vehicles Agreement, finalisation of a Memorandum of
Understanding (MoU) on Grid Interconnection to facilitate electricity trade in the
sub-region, and a meeting of BIMSTEC Trade Negotiating Committee to fast-track
the process of trade facilitation in the region.
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The declaration issued at the Goa Summit had also stated that BIMSTEC needs to
have a Coastal Shipping Agreement to allow the member states to trade freely
within the sub-region.
It is noteworthy that between 2002 and 2014, the intra-BIMSTEC trade registered a
very marginal growth, from 3.6 to 4.3 per cent only.
A former Thai ambassador described it as a complimentary organisation which can
support the people in the region.
Way ahead:
For BIMSTEC to become an enabler of regional cooperation, it will have to evolve as
an organisation that works through a bottom-up rather than a top-down approach.
The people-centric approach seems to be the best as BIMSTEC seriously lags behind
ASEAN and other regional organisations in terms of people-to-people contacts.
Also, the organisation needs to focus on fewer priority areas for purpose of better
implementation. It needs to undertake projects that are economically feasible and
result-driven. This would add to the credibility of BIMSTEC.
Finally, since the BIMSTEC region is notable for its diversity, the member states need
to build on the regional synergies and work towards utilising the available resources
in the most optimal manner. This would help build a stronger and a more dynamic
BIMSTEC.
Conclusion:
In todays context, the possibility of enhancing physical, digital and people-to-people
connectivity in the sub-region is huge. Similarly, the potential to tap the vast energy
resources and scope for intra-regional trade and investment too is enormous. BIMSTEC
member nations must work on in a cooperative manner to take advantage of huge
potential BIMSTEC offers.

The year 2017 marked twenty years of BIMSTEC. Critically analyze the progress the
grouping has made and elaborate on scope as well as challenges faced by the
grouping.
BIMSTEC as a sub-regional grouping provides tremendous scope for cooperation
and growth for its member nations. However the grouping is yet to realise its true
potential. Discuss.
TOPIC:
General Studies 2:
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India-US trade potential
Introduction:
In the coming decades, Asia will be the growth engine for the world, and India will be
one of the fastest growing large economies contributing to that growth. This presents
an immense market for U.S. goods and services, and an opportunity for India to
benefit from greater trade and investment leading to employment and growth for
both countries. We need to put in place the necessary policy frameworks that give
confidence and certainty to the private sector. There is significant scope to develop a
cooperative India-US trade relationship that expands bilateral economic ties.
Key concerns:
The bilateral deficit
Trade barriers such as tariffs on goods and enforcement of intellectual property
rights.
New Delhi is concerned with the inward orientation of the US under Trump.
Advantages India provides to US:

India is reforming and simplifying its policy regime, particularly its inside-the-border
trade measures.
Indias tariff regime on average is less restrictive than commonly presumed.
Conventional data considerably overestimates Indias applied tariffs. For instance,
while the World Trade Organization (WTO) estimate for average applied most-
favoured nation (MFN) tariffs for India is above 13%, a forthcoming paper from
Brookings India shows that the weighted average MFN tariff for India is less than
4%.
The demand from Indias growing middle class is slated to become the second-
largest in the world within 10 years. This increase would create significant
opportunity for US trade and employment. An example is the estimated 104,000 US
jobs created by a recent order of Boeing aircraft from an Indian private airline.
According to McKinsey, a $1.1 trillion capital investment in Indias cities is necessary
to meet projected demand for urban services.
Economic negotiations with India are never easy, but given India is poised to surpass
the U.S. economy in purchasing power parity terms by 2040, forging greater
economic ties and creating a more level playing field for U.S. firms is absolutely in
the United States economic interest.
Way ahead:
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To effectively engage in mutually beneficial talks, the US needs to recognize and

address Indias concerns about American trade policy.
India should address a number of US concerns by extending the application of good
governance principlesincluding timely and transparent decision-makingbeing
implemented in a bid to improve Indias ranking in the global ease of doing business
index.
The US should aim to better the standards and technical barriers it applies to Indian
exports in precisely the manner it demands of Indias similar practices.
We need not have a general focus on trade policy, but we need to identify and direct
efforts at particular items with high tariffs, or those non-tariff measures that are not
yet subject to reform.
To get better access to the growing demand, a larger focus has to be on regulatory
coherence and cooperation, standards, policies and cooperation pertaining to
emerging technologies such as digital, and conditions affecting investment.
The progress may be aimed at methods that range from soft legal results
(guidelines, understandings, agreed mechanisms to support small and medium
enterprises in both economies) to hard law (tariff decreases in key products of
interest to each nation). This could be facilitated by agreeing on innovative methods
that combine flexibilities with discipline and provide relief in times of import surges,
a concern reflected in both countries. This would be needed more for results
embodying hard law, rather than soft law.
There should be a start of negotiations for a Bilateral Investment Treaty (BIT),
realizing that a bilateral arrangement could be less contentious. Providing
safeguards to U.S. businesses through a BIT could open up new lines of investment,
which would be valuable for workers in the U.S. and India.
Much can be discussed as a part of an innovation agenda, and there is a ready-made
platform in the Global Entrepreneurship Summit, which the U.S. and India are co-
hosting later this year, to focus on those efforts.
Indias concerns regarding US trade policies will need to be addressed to improve
the possibility of mutually beneficial access to Indias markets.
An important element to successful progress on trade is to ensure that each side
operates on more comprehensive knowledge and a greater appreciation of
prevailing situations and trends. For instance, India is instituting substantial reforms
in both non-tariff measures and investment regimes.
Conclusion:
India and the US could show significant results in trade areas by establishing a common
platform to address specific concerns in areas that require administrative solutions or
better information flows between the two. Focusing on possible solutions that are more
within reach, while continuing efforts to address the major concerns, is more likely to
create better opportunities and more win-win situations for both India and the US. Such
an approach is a pragmatic response to the challenges of making significant progress on
trade. This approach will reduce the focus on more politically contentious issues, such
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as Indias demands for improved access to the US market for its workers, or US interests
in seeing major decreases in Indias tariffs across the board.

India-Us trade relation holds huge potential. However the key to tap this potential
lies in focusing on reaping low hanging fruits rather than trying to address major
concerns. Discuss.
TOPIC:
General Studies 2:
PM Modi's visit to US
Introduction:
This was PM Modis fifth US visit.
PM Modi remarked that when it comes to the development of the worlds two
largest democracies, India remains a driven, determined, and decisive partner.
Donald J Trump on Twitter remarked- "Important strategic issues to discuss with a
true friend.
For India, which kept expectations muted for the visit, it was clearly a moment of
triumph.
It was an effective and efficient meeting between two extraordinarily strong leaders
united by a common goal: How to advance his own countrys interests first.
Finding common ground:

In statecraft, a rivals rival is a friend. Chinas geopolitical ambitions from One Belt
One Road to dominating the South China Sea, not to mention its failed efforts to
contain North Korea, all drove Trump closer to Modi who additionally offered Trump
what the latter has been seeking from every world leader: Solid cooperation in
fighting terrorism, extremism, and radicalisation. These assurances for Trump have
not been forthcoming from traditional American allies in Europe, a region where
Trump continues to be unpopular.
The evolution of global geopolitics has led to an unprecedented convergence
between the US and India. The commercial imperative for closer ties is clear for
American companies seeking to do business in the fastest growing large economy
in the world. On the flipside, Indias strength in the services sector provides US
companies with a deep competitive edge.
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On economic front:
On economic front- Trumps slogan, Make America Great Again is directly at odds
with Modis vision of Make in India because both nationalist leaders are actively
attempting to increase manufacturing in their respective countries as a pathway to
lift their respective middle classes. Companies such as Infosys have already done the
unthinkable and announced massive plans to hire Americans in the US and scale
back hiring in India.
On the economic front, India came under increased U.S. pressure on IPRs.
The HIB visa issue remained unaddressed.
Trump duly noted his intent to reduce the US trade deficit with India. He highlighted
that the US is trying to get higher prices for a long-term contract to sell natural gas
to India. He was glad to note an Indian airlines recent order of 100 new American
planes, one of the largest orders of its kind, which will support thousands and
thousands of American jobs. In the delegation-level talks, Trump also thanked
Modi for the Indian governments decision to purchase 22 unarmed Guardian
drones from the US.
Defence relation:
In terms of defence, India got the 22 Guardian drones its been keen to add to its
arsenal and significantly, its the first non-Nato ally to be allowed to buy these hi-
tech weapons.
Further defence equipment sales to India could help reduce the US-India trade
deficit and improve the USs defence-industrial manufacturing base.
Background- In August 2016, the Government of India finalised the Logistics
Exchange Memorandum of Agreement (LEMOA). For its part, the US government
recognised India as Major Defense Partner.
On Pakistan:
Hours after Modis arrival, the Americans sent out an even stronger signal by
declaring Hizbul Mujahidden chief Syed Salahuddin a Specially Designated Global
Terrorist. This vindicated New Delhis position of Kashmiri separatism being fuelled
by Pakistan as a part of its sub-conventional warfare against India.
In turn, India pledged to join the United States campaign against North Koreas
nuclear weapons.
The language on Pakistan was tougher and more direct than before. In a joint
statement, the leaders called on Pakistan to ensure its territory is not used to launch
terrorist attacks on other countries. They further called on Pakistan to
expeditiously bring to justice perpetrators of the 26/11 Mumbai, Pathankot, and
other cross-border terrorist attacks by Pakistan-based groups.
On China:
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The joint statement released by India and US can be seen as an indicator of change
in Washingtons stance, to accede to Indias views on the Chinese Belt and Road
Initiative. The statement supports regional economic connectivity projects provided
they respect sovereignty and territorial integrity, the rule of law, and the
environment and employ responsible debt financing practices.
The statement recognizes India and the US as two democratic stalwarts in the Indo-
Pacific regiona clear hint towards building a coalition of democratic countries
against non-democratic forces (read China) in the region.
Perhaps significantly, the specific references to the South China Sea dispute and
China in last years joint statement were replaced with a call on all nations to
resolve territorial and maritime disputes peacefully and in accordance with
international law. This could suggest that the strategic outlook that underpinned
the India-US relationship is changing, as President Trump turns away from seeking
to contain Chinese power in Asia.
On climate change:
Climate change, the star of the 2016 joint statement, has disappeared from the 2017
joint statement. For Indian farmers, already hard hit by climate change this issue is
key.
President Trumps decision to walk back on the USs Paris Agreement commitments
marks a major blow.
Way ahead:
Many bilateral issues including Indias concerns on the immigration process and H1B
visa curbs, and Mr. Trumps withdrawal from the Paris climate accord, which will
leave Indias climate change financing handicapped remains undiscussed.
The two countries need to move past obvious headwinds such as Indias IP
standards and the immigration executive orders affecting high-skilled workers in the
US.
On the face of it, America First and Make in India are not natural points of
convergence, but they need not be matters of conflict either only if both
countries avoid protectionist measures. Since the Trump administration is keen on
bilateral treaties instead of multilateral trade deals, it may be a tangible outcome if
the two governments set their goals on negotiating a bilateral investment treaty.
Divisive political sentiments can be overcome as Indian companies make it their
mandate to hire locally in the US.
On matters of trade, climate change and high-tech visas, the meeting resulted in
few successes. Intellectual property rights and trade regulations could again occupy
centre stage in relations between the two countries. Bilateral talks should continue
to sort out these issues.
Conclusion:
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All things considered, a good beginning appears to have been made during Mr. Modis
maiden meeting with Mr. Trump. Clearly, the India-U.S. joint statement has exceeded
expectations, with an emphasis on the need for Pakistan to stop attacks on India
launched from its soil, and for China to forge its Belt and Road Initiative taking into
account Indias concerns on territorial and sovereignty issues. Mentioning North Korea,
West Asia and Afghanistan, the statement talks of a growing strategic convergence
between the two countries and a shared vision on world affairs. However, while the two
leaders were able to establish a common understanding of global issues, the joint
statement indicates that many bilateral issues are yet to be resolved. It is now for them
to tackle the more substantive bilateral issues.

Discuss how US India relations have evolved under President Trump's era. Also
discuss the bilateral issues and challenges between the two nations.
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HEALTH
TOPIC:
General Studies 2:
to Health
Development processes and the development industry the role of NGOs, SHGs,
various groups and associations, donors, charities, institutional and other
stakeholders
Making prescription of generic drugs mandatory
Why in news?
In a widely publicized speech on April 17, Prime Minister Narendra Modi indicated that
the government may bring in a legal framework under which doctors will have to
prescribe generic medicines.
Introduction:
Generic drug- The generics are medicines on which patents have expired. They are sold
either as branded products or as unbranded products under their generic names. These
drugs ae. equivalent to a brand-name product in dosage, strength, route of administration,
quality, performance, and intended use. The generic names are internationally agreed short
names called International Non-Proprietary Names. For example, paracetamol is the
name for a pain relieving and fever reducing medication and Crocin is one brand name
of paracetamol.
The Indian Medical Council (Professional Conduct Etiquette and Ethics) Regulations,
2002 says: "Every physician should prescribe drugs with generic names legibly (can be
read easily) and preferably in capital letters and he/she shall ensure that there is a
rational prescription and use of drugs."
The move proposed by the government will make it illegal for Indian doctors to write
out a prescription for the trademark of the drug, forcing them to mention the chemical
name instead.
Benefits of making prescription of generic drugs mandatory:

Branded medicines are more expensive. The generic drug does not have to undergo
a complete clinical trial to be proved equivalent, the bioequivalence test is much
cheaper than clinical trials making generic drugs cheaper.
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While generic medicines are good quality low-cost drugs with equal efficacy as that
of branded drugs, in the absence of proper knowledge consumers often tend to go
by what doctors and chemists decide for them.
The government's move assumes significance as medicines account for 70-75% of a
household's out of pocket expenditure on health
The move will result into affordable access to quality medicines which is a part of
free universal access to healthcare services.
India being a world leader in generics, the dependency on imports of patent drugs
will reduce improving our trade of balance.
Example:
The US in 1984 introduced the Drug Price Competition and Patent Term Restoration
Act, it transformed the drug market by allowing a generic medicine, that has
demonstrated mere bioequivalence with the branded drug, to be dispensed as a
substitute for a prescription of the branded drug. Subsequently, this model has been
followed in other countries and today most OECD and other developing countries accept
the substitution of a branded medicine with a generic equivalent.
Challenges:
Questionable quality of generic drugs in India: According to the governments most
recent survey of the quality of drugs in India, 10% of all drugs from government
sources tested NSQ, or not of standard quality.
Many states do not have their own drug-testing labs where authenticity of generic
drugs can be checked.
Food and Drug Administration offices across the country, tasked with inspecting
drug manufacturing facilities and regulating pharmaceutical distribution business,
are short staffed.
The generics available are only with brand names and are not exactly generics. The
prices of these branded generics is not much less than the patent ones defeating the
whole intention of making medicines cheap in India. Over 90% of the Indian
pharmaceutical industry is of branded generics and only 10% is unbranded generics.
Unbranded generic medicines are sold only in public health centres and
government-owned pharmacies like the Jan Aushadhi Stores and the reach of Jan
Aushadhi Stores is very limited.
It will be difficult to write the generic names of medicine contained in FDCs-some of
which range from 8-9.
The doctors have reservations over the bioavailability of the generic drugs as
branded drugs. (Bioavailability is the ability of medicine to reach the active site of
action)
Innovation can be negatively affected and may pose a challenge to coming up of
newer drugs to meet the dynamic and complex health needs of the people today.
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A strong regulatory structure should be put in place to both certify and monitor drug
testing and enforce the compliance with GMP (Good Manufacturing Practice).
If the government wants to make the prescription of generics compulsory, it needs
to put in place a legal mechanism to guarantee that all generics are bioequivalent to
the innovator product by making bioequivalence testing compulsory (Bioequivalent
generic drugs are therapeutically equal to the innovator drug. Once bioequivalence
is established, a generic drug is legally certified to be of the same quality to replace
the innovator product and can therefore be interchanged for the innovator
product).
A patient with a prescription detailing the composition of the medicine could still be
dependent on a pharmacist to make the most suitable drug choice. As generic
medicines have low margins they are unlikely to be stocked by the retail pharmacist.
Therefore the pharmacists should also be brought under its ambit.
Facilities which do not comply with GMP should be immediately barred from
production.
Using technology-
Using IT tools to network all 36 drug regulators into one integrated national
database. This can then be accessed by every citizen over a smartphone.
All products should be tagged with a unique RFID, barcode or such similar
identification to ensure traceability from manufacture to consumption.
Generics should be labelled and sold as such in order to prevent a brand to brand
substitution rather than a brand to generic substitution at the retail level.
Capping the maximum sale price of the generic taking into account the cost of
making the drug and distribution and retail margins as branded generics can be as
costly as patent drugs.
Rules for punitive fines for non-compliance must be laid down.
Creating a drug regulatory authority(DRA):

The example of RERA created for regulation of real estate sector can be emulated for
the pharmaceutical sector as well. There is an urgent need for creating a drug regulatory
authority (DRA).
The DRA should serve the dual purpose of making the rules simpler yet stricter, while
having the required resources to enforce them effectively. All the above steps outlined
can be brought into the mandate of DRA.
Conclusion:
Making prescription of generic drugs mandatory is a noble intention. It will surely make
medicines affordable to all and bring us closer to universal healthcare, but the step
should be accompanied with guidelines regarding regulation this will give the customers
the choice without fear of compromising the quality of their care.
Thus the need of the hour is not a piecemeal legislation mandating the doctors to
prescribe generic medicines, but a holistic legislative and regulatory framework that
addresses both the quality and affordability aspects.
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A legislation to make prescription of generic drugs mandatory is under process.
While the intention is novel discuss the challenges involved and the regulatory
measures which should be brought in along with the legislation.
Also read: Prescribing medicines under generic names. Is it practical?

http://iasbaba.com/2017/04/iasbabas-daily-current-affairs-29th-april-2017/
TOPIC:
General Studies 2
to Health
New Rules on Antibiotic Resistance by WHO
Introduction:
In an effort to curb antibiotic resistance, the World Health Organization (WHO) has
divided the drugs into three categories access, watch and reserve specifying which
are to be used for common ailments and which are to be kept for complicated diseases.
The division of the antibiotic is as follows:
Access: For commonly used antibiotics. Antibiotics in this group will be available at
all times as treatment for a wide range of common infections. This includes
amoxicillin, a widely-used antibiotic to treat infections such as pneumonia.
Watch: For second line drugs, slightly more potent. It covers antibiotics that are
recommended as first or second choice treatment for a small number of infections.
The WHO has recommended that prescription of these drugs should be dramatically
reduced to avoid further development of resistance.
Reserve: For crucial stage, potent drugs to be used only as a last resort . The third
group, reserve, includes antibiotics such as colistin and some cephalosporins that
should be considered last-resort options, and used only in the most severe
circumstances when all other alternatives have failed, such as for life-threatening
infections due to multidrug-resistant bacteria.
This is the biggest revision of the antibiotics section in the 40-year history of the
essential medicines list (EML).
What is antibiotic resistance?

Antibiotic resistance is the ability of bacteria to resist the effects of an antibiotic. It
occurs when bacteria change in a way that reduces the effectiveness of drugs,
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chemicals, or other agents designed to cure or prevent infections. Antibiotic resistance

occurs naturally, but misuse of antibiotics in humans and animals is accelerating the
process.
Issues related to antibiotic resistance:
Antibiotic resistance leads to higher medical costs, prolonged hospital stays, and
increased mortality.
It is one of the biggest threats to global health, food security, and development
today.
It can affect anyone, of any age, in any country.
A growing number of infections such as pneumonia, tuberculosis, and gonorrhoea
are becoming harder to treat as the antibiotics used to treat them become less
effective.
Antibiotics can be bought for human or animal use without a prescription, the
emergence and spread of resistance is made worse. Similarly, in countries without
standard treatment guidelines, antibiotics are often over-prescribed by health
workers and veterinarians and over-used by the public.
The recent study of The Indian Council of Medical Research found out that the
resistance to antibiotics was found in 50% of patients.
As per the statistics of Centers for Disease Control at least 23,000 people in the
United States die each year due to infections that are resistant to antibiotic
treatments.
Significance of the initiative

Prior to everything, the best way to educate the public about medicine is to properly
educate physicians first.
It will also ensure that they get the right antibiotic which will eventually solve the
problem of resistance.
With strict filter of the antibiotics, under which some medicines are reserved for the
most resistant microbes, the WHO list can stop their misuse as broad-spectrum
treatments.
With access to speedy and accurate diagnosis, this new beginning can sensitize the
medical community to its responsibility to prevent antimicrobial resistance
It will also take enlightened policies on housing, sanitation and hygiene education
to prevent new infections and the spread of disease-causing organisms.
It will take good public health policies, sufficient funding and determined leadership
to overcome antibiotic resistance.
The new categorization will further guide countries in ensuring access to
appropriate antibacterial agents and support antimicrobial stewardship effort.
The new WHO list should help health system planners and prescribers ensure that
people who need antibiotics have access to them, and ensure they get the right one,
so that the problem of resistance doesnt get worse
Conclusion:
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The new guidelines by WHO will surely help in fighting the spread of antibiotic
resistance. Health system planners and prescribers must ensure the rules are followed
in true spirit.

The issue of antibiotic resistance is becoming more and more challenging. However,
the recent guidelines by WHO on antibiotic resistance may help solve the problem.
Discuss.
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ENVIRONMENT
TOPIC:
General Studies 2
affecting India's interests.
Effect of policies and politics of developed and developing countries on India's
interests.
General Studies 3
assessment.
President Trump withdraws U.S. from the Paris agreement:
Why in news:
American President Donald Trump recently announced that the U.S. would exit the Paris
agreement on Climate Change.
Background:
The Paris agreement commits the US and 194 other countries to keeping rising global
temperatures "well below" 2C above pre-industrial levels and "endeavor to limit" them
even more, to 1.5C. All countries except Syria and Nicaragua did not sign up.
Under the agreement the countries agreed to:
Keep global temperatures "well below" the level of 20C (3.6F) above pre-industrial
times and "endeavor to limit" them even more, to 1.50C
Limit the amount of greenhouse gases emitted by human activity to the same levels
that trees, soil and oceans can absorb naturally, beginning at some point between
2050 and 2100
Review each country's contribution to cutting emissions every five years so they
scale up to the challenge
Enable rich countries to help poorer nations by providing "climate finance" to adapt
to climate change and switch to renewable energy
Reasons stated by President Trump behind the exit:

He argued that the agreement is unfair to his country because it hurts American jobs
thus by exiting he is putting America first.
He said it would cost the US $3tn (2.3tn) in lost GDP and 6.5 million jobs - while
rival economies like China and India were treated more favorably.
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In Mr. Trumps view, the Paris accord represents an attack on the sovereignty of the
United States and a threat to the ability of his administration to reshape the nations
environmental laws in ways that benefit everyday Americans.
Challenging the narrative:

Mr. Trump stated Indias financial needs as a reason for inaction, despite the fact
that India has moved further and faster down the path of clean energy than most
that too based entirely on domestic resources.
Mr. Trump completely ignores the bedrocks of UN climate agreement- responsibility
for causing the problem and different levels of capacity of countries to act. Common
But Differentiated Responsibility(CBDR) puts responsibility for controlling climate
change on countries in a differentiated manner based on their historical emissions
and their capacity to invest in green technologies.
The move is incongruent with economic reality, because the most valuable American
companies in manufacturing, computing, banking services and retailing, ranging
from General Electric to Apple and Tesla, all see a future for growth and employment
in green innovation, and not in fossil fuels.
While President Trump talks about coal expansion in India and China, the fact
remains that both India and China have made efforts to improve their renewable
energy capacity. Solar tariffs in India have plummeted to Rs 2.44 per unit. With the
ambitious target of achieving 175 gigawatts (GW) of renewable energy by 2022 the
possibility of a coal-free future is becoming more and more real everyday.
Implications of U.S.'s exit:

As per the UN World Meteorological Organization, in the worst scenario, the US pull
out could add 0.3C to global temperatures by the end of the century.
In practical terms, the withdrawal of the U.S. from the Paris Agreement is an
enormous setback to effective climate action. As the largest historical emitter and
the second-largest current emitter of greenhouse gases, the U.S. has a huge role to
play in reducing emissions.
The wider challenge now is to maintain the momentum on climate finance for
mitigation and adaptation, since the U.S. pledge of $3 billion to the Green Climate
Fund made earlier is unlikely to be fulfilled. Funding is crucial for poorer countries in
order to cope with extreme weather events and sharp variations in food production
caused by climate change.
Other, smaller countries, less responsible for the problem, could justifiably now
abdicate their responsibility for limiting greenhouse gas emissions as the U.S. has
chosen to do so.
Meeting a two degree temperature limit target just got much harder.
With the US withdrawal, the carbon space would shrink even more and faster.
For poorer residents of various countries, though, weakening of the climate
agreement and failure to progressively reduce carbon emissions by 2020 and
beyond threaten to impose misery and deepen poverty. Every successive year is
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becoming hotter than the previous one, and the ice sheets in West Antarctica and
Greenland, which hold the key to sea levels, have recorded a steady loss in mass.
Indias role:
There shouldn't be any re-negotiation of the agreement as demanded by Mr. Trump.
And here, Indias role could be potentially crucial.
During his recent visit with Chancellor Angela Merkel of Germany, Prime Minister
Narendra Modi clearly and usefully articulated Indias support for climate action.
Now, in the wake of clarity about Mr. Trumps intent, India could go further.
India could play a leadership role in mobilizing the climate-vulnerable countries in
our region and beyond, to recommit to the Paris Agreement.
India could also explicitly and formally make common cause with countries such as
China and the EU, which have reportedly planned an alliance to lead implementation
of the Paris Agreement. Based on our recent track record of falling solar prices and
declining estimates of coal needs, India is also well placed to forcefully make the
case for the merits of a clean energy transition.
India must emphasize the five pillars of its climate leadership in action.
One, policy. In 2010 Indias National Solar Mission commenced with a target of
installing 22,000 megawatts (MW). At the time, Indias total installed capacity was
17.8 MW. The worlds leading solar countries were Germany, Spain, Japan, US and
Italy. India was at 10th place. In 2014, India asked itself a simple question: How big
can we get on renewables? And by early 2015, India announced that by 2022, it
would install 1,00,000 MW of solar, 60,000 MW of wind, 10,000 MW of small
hydropower and 5,000 MW of biomass-based electricity capacity.
In addition to policies, India has demonstrated its willingness and ability to scale
programmes nationwide and rapidly to move faster towards cleaner fuels while also
increasing energy access.
Whereas many European countries pushed renewable energy through consumer
subsidies, India adopted a reverse auction-based competitive bidding process for
solar. That has meant that the lowest tariffs have dropped from INR 10.95 (USD 0.17)
in December 2010 to INR 2.44 (USD 0.038) in May 2017.
Climate change is already impacting India, with increasing water stress and billions
of dollars of lost agricultural output during this century. India needs to increase
agricultural production, while reducing water and energy intensity.
India has already displayed its leadership role. In November 2015, India and France
launched the International Solar Alliance (ISA). The ISA plans to aggregate demand
to drive prices down, scale up technologies currently available, and pool resources
to invest in solar R&D.
For its level of income and per capita emissions, India is doing disproportionately more
than many of the larger polluters. It must speak confidently about its actions and its
leadership for other countries.
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Way forward:
The rest of the world will have to continue to act on climate change, regardless of
what the US does. Secondly,
The mantle of climate leadership cannot be held by just one country. The U.S. exit
from the Paris Agreement could help cement new alliances.
It is time for the world to recognise the real climate leaders. India is one of them and
it needs to speak up.
Conclusion:
As a major legacy polluter, the U.S. has a responsibility to mitigate the damage.
In abandoning the Paris Agreement on climate change, U.S. President Donald Trump has
chosen to adopt a backward-looking course on one of the most important issues facing
humanity.
The urgent task at hand for the rest of the global community is to ensure that the Paris
Agreement remains in place and even wins renewed support. The overall goal to keep
the increase in global average temperature over pre-industrial levels to less than 2C
should not be affected. And more importantly the principle of CBDR that underpins the
UN climate framework, and casts a duty on industrial powers responsible for the worlds
accumulated carbon emissions, needs to be strengthened.

President Trump announced that he would withdraw U.S. from the Paris agreement.
Discuss the challenges emerging out of such decision and also how the rest of the
world especially India, China and European countries need to cement new alliances
in order to achieve the objective of limiting the global average temperature to less
than 2C.
TOPIC:
General Studies 3
assessment
Rivers as a living entity: Implications and Challenges

Background:
With a view to conserve the rivers Ganga and Yamuna, the Uttarakhand High Court
in its March 20, 2017 judgement, declared the two rivers as living entities having
status of legal persons and having all corresponding rights, duties and liabilities.
The judgement also identified three officials as the human face to protect, preserve
and conserve these rivers, who are bound to promote their health and well being.
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The court also observed that the rivers are the source of physical and spiritual
sustenance of people from time immemorial, that these rivers are breathing, living
and sustaining the communities from mountains to sea and that such declaration
as legal persons is needed to protect the faith in of society.
Following this precedent, the Madhya Pradesh government also took a decision in
May this year to declare river Narmada as a living person with all attendant rights.
Implications of the judgement:

Post the High Court judgement, these two rivers can claim right to life following
the Fundamental Rights provisions of the Indian Constitution, and can theoretically
enforce the same.
An obvious implication is that the two rivers should not be irretrievably polluted. It
is illegal now for anyone to "harm" these living entities.
Now that they are considered 'living entities', Ganga, Yamuna, and their tributaries
hold the same legal rights as a person. In the eyes of law, they will be seen as "a
legal or juristic person".
The ruling means that Ganga and Yamuna are essentially like minors -- incapable of
holding or using the property -- and need to be placed under the care of a manager
and/or a guardian. These caretakers will be responsible for ensuring the rivers are
not misused, abused or misappropriated for personal use.
Challenges:
Providing a sustainable ecosystem is the need of the hour. The polluters who are
liable to be sanctioned in court proceedings are however many: industrial units,
municipal authorities, local bodies, millions of villages, and so on. This is definitely a
vast challenge. There are millions of players who are involved. The industries and
utilities of local bodies are the point sources of pollution and millions of farmers
alongside the rivers are the non- point sources of pollution.
The challenge before the policy makers is how to bring all the players on the same
page for not polluting the rivers. For instance, the industrial units should discharge
industrial effluents into rivers after proper treatment or even take steps for Zero
liquid discharge. The regulatory machinery for ensuring the same has weak capacity
to deliver today. Online data monitoring at sewage discharge points of an industrial
unit or utility has been thought of, but its proper implementation is a big challenge.
Similarly, in the case of local bodies, it is often difficult to prevent the municipal
sewage from polluting the river water. In a country where open defecators pose the
biggest challenge, absence of proper sewer network and subsequent non-treatment
of municipal sewage, especially in urban areas, aggravate the problem in the context
of polluting the river Ganga and Yamuna.
In this context, the Swachh Bharat Abhiyan programme is a right step forward, but
its lesser emphasis on faecal sludge management is a matter of concern.
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Several questions like- How can a river or its constituents, with no voice of their
own, ensure such rights, or demand justice should they be violated? Who would be
the beneficiary of compensatory action?- remains to be answered.
As far as cleaning of rivers is concerned, there exists political will at least at the
central level, but its absence has been noticed in all States through which the two
rivers flow.
Way out:
Overall, the perception is that only governments are mandated or supposed to
ensure clean rivers. The public at large, civil societies, and industrial stakeholders,
are important stakeholders for achieving such objectives. And thus the civil society
must come together to protect the rivers.
Attention should also be given to reviewing the existing policy and legislative
initiatives: for example, adoption and implementation of laws such as the
Uttarakhand Flood Zoning Act 2012 by the participating States would also help in
restoring the health of the rivers by creating room for them.
Conclusion:
Nevertheless, the Uttarakhand courts judgement is an important step in the right
direction for ensuring clean rivers. Its time policy makers, civil society and more
importantly central and state administration fall in line.

Discuss the implications of Uttarakhand High Court judgment declaring River Ganga
as a living entity. Also elaborate on challenges in ensuring clean rivers.
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ENERGY
TOPIC:
General Studies 3
Technology, Energy Security
developing new technology.
Nuclear electricity: Expensive, Hazardous and Antithetical to equity
Why in news:
The government has recently approved the construction of ten 700 MW Pressurized
Heavy Water Reactors (PHWRs). Even though the PHWRs are expensive, the
department of atomic energy persists with them because it lacks the expertise required
to build and operate cheaper light-water reactors (LWRs). The imported LWRs are more
expensive than the domestically built PHWRs.
Background:
India has a flourishing and largely indigenous nuclear power programme and expects to
have 14.6 GWe nuclear capacity by 2024 and 63 GWe by 2032. It aims to supply 25% of
electricity from nuclear power by 2050.
The proposed new reactors will amount to 7,000 MWe (megawatt electric), i.e. will
more than double the countrys current installed nuclear capacity of 6,780 MWe, a little
over 2% of power generated from all sources in the country.
A bad year for nuclear power:

Westinghouse, the largest historic builder of nuclear power plants in the world,
declared bankruptcy, creating a major financial crisis for its parent company,
Toshiba.
The French nuclear supplier, Areva, went bankrupt a few months earlier and is now
in the midst of a restructuring that will cost French taxpayers about 10 billion.
The U.S. Energy Information Administration announced that it expects the share of
nuclear electricity in the U.S. to decline from about 20% in 2016 to 11% by 2050.
The newly elected Presidents of Korea and France have both promised to cut the
share of nuclear energy in their countries.
The Swiss have voted to phase out nuclear power.
India and nuclear power:

Both Areva and Westinghouse had entered into agreements with the Indian
government to develop nuclear plants. Areva had promised to build the worlds
largest nuclear complex at Jaitapur (Maharashtra) and Westinghouse would build
six reactors at Kovvada (Andhra Pradesh). The collapse of these companies shows
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that Indias agreements with Areva and Westinghouse were fiscally irresponsible. If
these projects had gone ahead we would have left with billions of dollars of debt,
and incomplete projects.
These reactors are commercially untested, since the largest PHWRs constructed so
far in India are the 540 MW twin units at Tarapur.
Nuclear electricity is likely to be costly. A rough estimate suggests that the cost of
electricity during the first year of operations at these reactors is likely to be around
Rs. 6 per unit at current prices. The Central Electricity Regulatory Commissions
published tariffs show that almost all currently operating Indian coal, natural gas and
hydroelectric power plants produce cheaper electricity. Even prices for solar power
have dropped below those of nuclear power. For example, the winning bid at the
auction for the Bhadla Phase-IV Solar Park in Rajasthan held last month was Rs. 2.44
per unit, which is fixed for 25 years.
Other sources of electricity have shorter gestation periods.
While announcing its decision, the government claimed that these plants would
generate more than 33,400 jobs in direct and indirect employment. But this
number ceases to be impressive when viewed in the context of the planned capital
expenditure of Rs. 70,000 crore. The relevant factor in assessing the employment
opportunities provided by a project is not just the total number of jobs produced
but the ratio of the jobs produced to the capital invested. In contrast, solar
photovoltaic sources were more than six times as labour intensive, creating about
0.87 job-years per gigawatt-hour of electricity.
Bad fit for climate change. The government also argued that these reactors would
bolster global efforts to combat climate change. Nuclear power poses its own set
of threats to the environment and public health, and is therefore an inappropriate
tool to mitigate climate change. All nuclear reactors produce radioactive waste
materials because each fission event involving nuclei of uranium or plutonium gives
rise to radioactive elements called fission products. Some of these remain
radioactive for hundreds of thousands of years. Despite decades of research, nuclear
waste remains an unavoidable long-term problem for the environment.
Nuclear reactors are also capable of catastrophic accidents, as witnessed in
Fukushima and Chernobyl. A single nuclear disaster can contaminate large tracts of
land with radioactive materials, rendering these areas uninhabitable for decades.
More than 30 years after the accident at Chernobyl, about 650,000 acres are still
excluded from inhabitation.
The peoples concerns. Local communities are keenly aware of the hazardous nature
of nuclear power. Since the 1980s, every new site chosen for a nuclear plant has
been greeted with a protest movement. The risks and costs are borne
overwhelmingly by poor rural communities, who consume only a tiny fraction of the
electricity that is generated.
The story of nuclear plants in India has been fraught with delays and opacity.
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Conclusion:
With the changed international scenario for nuclear energy as source of power, and
disadvantages of nuclear electricity over other sustainable energy sources like solar,
hydro etc. we need to have a comprehensive re-evaluation of the role of nuclear power
in the countrys energy mix. The path to sustainable development run through a source
of electricity that is expensive and hazardous.

Critically analyse the importance of nuclear power as source of energy in making
India energy secure in a sustainable manner. Discuss the advantages and
disadvantages nuclear electricity has over other sources of energy.
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ECONOMY

The growth track is near
In news: Recently, the National Income for 2016-17 were released. The data forms a
part of the 'Provisional Estimates of Annual National Income 2016-17 and Quarterly
Estimates of Gross Domestic Product 2016-17' released by the Ministry of Statistics and
Programme Implementation
India's per capita income grew by 9.7 per cent to Rs 1,03,219 in 2016-17 from Rs
94,130 a year ago.
In 2015-16, the growth rate of Indias per capita net income was 7.4%
Indias Gross National Income (GNI) at 2011-12 prices was estimated at Rs 120.35
lakh crore during 2016-17, against Rs 112.46 lakh crore a year ago.
The gross value added (GVA) growth slowed sharply in the fourth quarter to 5.6
percent, compared to 6.7 percent in the third quarter.
Growth in the fourth quarter of fiscal 2017 is also much lower than the 8.7 percent
growth reported in the fourth quarter of fiscal 2016.
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National income is hard to estimate, particularly in economies like India where the
informal sector accounts for much activity and employment, thus making difficult to
capture official data.
The growth rate of every quarter has been sliding from the previous quarter.
During Q4, only two sectors- agriculture and public administration- have shown
strong growth
Construction and trade, hotels, transport and communication have shown a sharp
decline in Q4. These are the sectors which use cash extensively.
Demonetisation impact:
The overall growth rate of GDP is 6.1%, which is nearly 1% below the growth rate for
the previous quarter at 7%.
The liquidity crunch brought about by inadequate availability of currency
consequent upon demonetisation must have impacted a lot of activities, especially
such as housing and construction.
No doubt, demonetisation would have had a short-term disruptive effect which
would adversely affect growth.
The long-term benefits in terms of a change in mindset and behaviour of people and
greater use of technology-driven payments system can be analysed only in future.
However, there are other factors too which had an impact in growth.
Rate of Investment
The most disturbing aspect of the data just released is the continuing decline in the
Gross Fixed Capital Formation (GFCF) rate as proportion to GDP. It is steadily
declining and in 2016-17 it fell to 29.5% from 30.9% in 2015-16. During high growth
period, it was 33%.
Though attempts have been made to raise public investment and also improvement
in efficiency in the use of capital. This has led to significant improvements in the
output of coal, power and roads.
Job generation
It has been modest in past few years.
Growth can happen because of greater utilisation of existing capacity or new
investment.
For this, there is a need to bring in new investment which will push growth and
generate greater employment.
Of course, there will be many factors such as technology that play a key role in
determining the level of employment, but the investment needs a boost.
Burden of debt
The Indian banks and businesses are extensively suffering under the debt burden.
The health of the banking system is closely aligned to the health of the private sector
business, both corporate and non-corporate.
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There is a need to quickly resolve the bank problems, especially the NPAs that will
enable the banks to restart their lending programme in a big way and help business
to embark on new investment.
Policy implications
For a sustained high growth, there is a need of policymakers to shift their focus
towards increasing the rate of investment in India. Though FDI in India is high, the
rate of growth of fixed capital formation has been weak. With the reforms agenda
being pushed forward, Bankruptcy Code becoming operational, implementation of
GST, these are welcome steps.
The slowdown in economy will put pressure on RBI to explain its stance on tight
monetary policy. The CPI has pegged inflation at 3%, well below RBIs medium term
target of 4 percent. Thus, the lower-than-expected inflation, together with
weakening growth, could prompt calls for a relook at the RBIs policy stance.
Adequate remonetisation should be done quickly to eliminate the adverse effects
caused by shortage of currency. Though decreased use of currency is desirable, it
should not be assumed show and resultantly reduce the supply. Many of the
informal sectors, rural population, poor people, senior citizens are using cash as
means of transaction.
Conclusion
While the adverse effects of demonetisation on GDP are clearly seen, it is difficult to
decipher how much of the decline in growth rate in the January-March quarter is due to
demonetisation and how much due to the underlying declining trend.
The macroeconomic stability parameters are in good shape with prices being in control.
The central governments fiscal deficit target is being adhered to as mentioned in
budget.
With the monsoons expected normal in 2017, it is the most appropriate time to convert
sentiment to firm action with a big push on private investment. Along with it, social
harmony and law and order also are the pre-requisites for faster growth and hence
shouldnt be ignored in race to achieve high growth.

What are the challenges in front of Indian economic growth? Discuss sustainable
ways to surpass them.
TOPIC:
General Studies 3
Effects of liberalization on the economy, changes in industrial policy and their
effects on industrial growth.
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Reorienting Indias trade policy
It is vital that Indias trade policy, while taking cognizance of GSTs nitty-gritties, also
realigns domestic trade infrastructure with the altering global trade landscape. Indias
commerce ministry is conducting a mid-year review of its trade policy to closely align it
with the roll-out of the goods and services tax (GST) on 1 July. It might make more sense
to re-anchor the policy in the shifting framework for global trade and the rapidly
evolving nature of globalization.
Altering global trade landscape:

Deep resentment against globalizations misaligned distribution effects, a widening
wage gap and increasing inequality have given birth to an aggressive brand of
nationalism.
Brexit in the UK, US President Donald Trumps executive decisions on trade
(withdrawing from the Trans-Pacific Partnership, restricting H1B visas, threatening
the North America Free Trade Agreement) or geopolitical moves (hectoring
European leaders or abandoning the Paris climate change agreement) were custom-
built to address localized grievances.
Australia, New Zealand and Singapore are also following in the US footsteps,
complicating Indias traditional trade matrix.
Belt-Road initiative, a vehicle designed to rejuvenate Chinas surplus domestic
capacity and to give expression to its expansionist aspirations.
The second is the recent schism in the Gulf with Saudi Arabia, Egypt, Bahrain, the
United Arab Emirates, Libya, Yemen and the Maldives collectively imposing informal
sanctions against Qatar by shutting down transport links and choking essential
supplies.
Way forward:
Three areas demand trade policys attention.
1) Targeting alternative markets:
Less reliance on traditional trade partners in the West while increasing Indias trade
and investment footprint in alternative markets, such as the African continent.
India started looking at Africa seriously after the launch of economic reforms in 1991
and then with renewed vigour after the 2008 crisis. However, promises to increase
two-way trade between India and Africa to $90 billion by 2015 have remained
largely unfulfilled. Indias trade with Africa touched $56.7 billion during 2015-16,
down from $72 billion in 2014-15. The drop is largely due to the fall in oil prices,
which contracted Indias import bill with Nigeria. Meanwhile, China-Africa two-way
trade touched $215 billion during calendar 2014.
India has intensified its relationship with Africa, which includes initiating several
high-level visits since 2015. Prime Minister Narendra Modi, President Pranab
Mukherjee and vice-president Hamid Ansari have between them visited 16
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countries, with senior cabinet ministers visiting the remaining countries on the
continent. During May, the African Development Bank held its 52nd annual meeting
in Ahmedabad.
More needs to be done, of course. Trade policy can examine how coordinated action
between commerce, finance and external affairs ministries might help in expanding
Indias trade efforts; for example, a larger presence of Indian banks outside the
conventional East African can help reduce export credit costs.
2) Linking India's trade policy with Make in India:
Second, there is a need for a clear link between Indias trade policy and Make In
India, including strategic linkages through global value chains. Policy clarity will be
required whether India desires domestic manufacturing platforms that double as
supply hubs for a global market, or assembly units that can be folded up and
relocated elsewhere when cost arbitrage dries up (Chinese mobile units are perhaps
a good example). Trade policy may be able to play a role here.
3) Focusing on trade in services:
Finally, there is trade in services. There seems to be a concerted move within the
rich countriesthrough the Organisation for Economic Cooperation and
Developmentto open up trade in services, including movement of professionals.
This has been Indias longstanding demand because trade in services has been
asymmetric so farhigh in capital flows, information and communication
technology, but low in free movement of professionals.
Rising unemployment, particularly in Europe, could be driving Western agencies to
prise open employment markets elsewhere. Indias demand (and strategy) for trade
facilitation in services should find some articulation in the revised trade policy.
Conclusion:
Recent developments are bound to reorder the global trade system. Therefore, it is
imperative that Indias trade policy also realigns domestic trade infrastructure with
the altering global trade landscape. It is also perhaps the perfect opportunity for the
policy to be more of a strategy document rather than a manual.

India's trade policy must be re-oriented asper the recent developments, both
domestic as well as global. Discuss.
TOPIC:
General Studies 3
General Studies 2
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Global economic slowdown: Where does India stands?

The global economy has been recovering from the recession of 2009 at a tepid rate (at
approximately 2.5 per cent per annum). India's economy is in a 'fairly good shape' and
it is likely to be less affected than other emerging economies if there is a further shock
to the global economy, according to a senior official of the IMF.
Main causes of the current slow global growth are:

Declining populations- Population growth boosts economic growth through an
increase in the workforce, aided by an increase in productivity.
Protectionism- it will hurt global trade and cross-border flow of people.
No major productivity-enhancing revolution. The fourth industrial revolution is yet
to take place.
Chinas economy is expected to steadily slow down to 6.6% in 2017 and 6.2% in 2018
due to the complex process of rebalancing by reorienting demand from exports
and investment in consumption.
While for a majority of countries, a high or higher growth rate would be elusive, India
has a great opportunity before it.
India seems to be less vulnerable

With growing political uncertainty in the US, the emergence of protectionist policies
and amidst slowdown concerns related to China, countries whose GDP is dependent
on exports could find themselves with increased instability. The most affected are
those with exports accounting for a high percentage of their GDP and with low
domestic demand support. India appears to be less vulnerable on this front.
Despite the USs importance as a market for India and Japan, the larger and more
diverse nature of these economies provides them with some cushioning from
protectionist trade policies, with shipments to the US making up only 2 per cent and
3 per cent of their respective GDPs.
Furthermore, an ADB report suggests that a growth slowdown of 1.6 percentage
points in China would bring about a growth deceleration of 0.26 percentage points
in developing Asia as a whole. Meanwhile, India is most insulated from Chinas
slowdown: Its annual GDP growth could be lower by a slight 0.14 percentage points.
With roughly 59 per cent share in Indias GDP, household consumption spending has
been the major driver of economic growth and has, on many occasions, acted as a
protective shield to global demand shocks.
India also has low reliance on external savings to fund its growth. As per S&P Ratings,
the banks are mainly deposit-funded and dont rely on wholesale funding to grow
their loan books.
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Healthy consumption spending in India and an inward domestically demand-

oriented economy makes India less vulnerable.
The Indian context:

India is in the middle of a demographic dividend which would be an impetus to
growth, if the new entrants to the work force are productively employed.
The government has recognised the need for jobs and embarked on a multi-pronged
strategy including corporate governance reform, pro-growth tax reform,
agricultural reform, administration reform, the expansion of public-private
partnerships etc.
Increasing jobs through targeted manufacturing/service investment tourism,
health, education, micro and small enterprises, agribusiness
Massive drives like Make in India, Skill India, productivity-based infrastructure
development and initiatives related to the ease of doing business will surely help.
The rationalisation of subsidies and direct cash transfers will plug leakages
associated with the previous subsidy regime and make money available for merit
subsidies health, education, etc. that can help us exploit our population
dividend.
These strategies have begun to make a difference and should, over a reasonable period
of time, create the jobs we need. We are now poised to leapfrog directly into the digital
world and reap the productivity gains.
Challenges:
The global financial crisis largely passed India by; so, our need for quantitative easing
was limited. But we have created our own crisis non-performing assets (NPA).
However, the government is working to resolve the issue. It is worth mentioning that
the banking system has a provisioning coverage of 50 per cent plus on NPAs.
The priorities should be:

Improving ease of doing business
Infrastructure improvement
Fiscal reforms such as GST
Agriculture reforms
Administrative reforms
Labor reforms
Conclusion:
The winners in this changing world are likely to be countries less reliant on global trade,
domestic consumption-driven, with an increasing population, a scope for productivity
improvement and a low per capita base. It would be fair to conclude that Indias GDP
growth rate of 7.5 per cent is good and sustainable, so also is the potential target of 8
per cent plus. We are moving towards increasing manufacturings share in furthering
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jobs. This, combined with the increase in consumption through workforce increase,
should impact both consumption and investment, leading to the delta required to take
our GDP past 8 per cent. Driven by domestic consumption, the Indian economy is poised
to do better than most others. The present situation calls for accelerated economic
reforms for India to achieve a higher growth trajectory.

Discuss reasons behind global economic slowdown. Also mention how India seems
to be less vulnerable if the ongoing reforms are implemented in true sense.
TOPIC:
General Studies 3
development and employment
Inclusive growth and issues arising from it
GST: Way ahead
Brief introduction
The GST will replace the present very complex system where the Centre levies a central
excise duty on goods up to the production stage and a service tax on services while the
states levy a state VAT (value added tax) on sales of goods, but do not tax services. Each
of these taxes has a VAT (value added tax) structure, but they are applied on different
bases. And in addition, there are a number of additional taxes e.g. the additional duty,
special excise duty and various central cesses by the Centre and luxury tax,
entertainment tax, octroi etc. by the states. All these taxes by the Centre will be
subsumed into a single central GST and the multiple state taxes by the state into a state
GST (legally a different tax in each state). These taxes will be applied on a common base
and at the same rate for each commodity across the country. This is a major
simplification which should be welcomed.
Timeline:
In 2006, then finance minister P. Chidambaram, in his budget speech for 2006, set the
target of moving a Constitutional Amendment Bill in 2010. It was moved by United
Progressive Alliance finance minister Pranab Mukherjee in 2012, but could not be
passed before the election. The National Democratic Alliance government took up the
baton after coming to power in 2014. Fortunately, differences were resolved and the
Bill was passed in 2016. The goods and services tax (GST) will now finally come into force
on 1 July
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Weaknesses in present GST:

International experience suggests that the full benefits of a VAT are only reaped if the
VAT is near universal in coverage, with very few exemptions and
there are no more than two rates.
GST is very far from being universal and according to some it excludes 50% of the
gross domestic product. Major items such as petroleum, natural gas, alcohol,
electricity, and real estate/construction are left out. Residential apartments have
been included but all other construction, including commercial construction and
factories, is not. In addition, a very large number of commodities have been
exempted. This suggests that revenue may fall short of expectations.
The second flaw is too many rates: 3% (on gold), 5%, 12%, 18% and 28 %, plus an
extra GST cess on some luxury or socially undesirable items. Multiple rates are an
invitation to misclassification and disputes/harassment arising from suspicion of
misclassification. This reduces the efficiency gains.
A National Council of Applied Economic Research study had estimated that the GST
would add between 1 and 2 percentage points to the economys growth rate. That
was based on an ideal GST. Since what we have is very far from the ideal, the
benefits will be correspondingly less.
If revenues are lower because of the exclusions and the large number of items at a
very low rate, the revenue loss will be entirely borne by the Centre. This is because
it will not only have less revenue under the central GST, but it is also committed to
compensate the states if their revenue grows at less than 14% per annum in nominal
terms.
The requirement that taxpayers must register in each jurisdiction in which thhey
operate is an issue. If a unit operates in several states, it must register in each state
in which it operates, and be taxed in each jurisdiction, and also maintain records
that allow the tax paid in each jurisdiction to be audited.
Benefits:
Despite these weaknesses, the GST will still be beneficial in many respects.
The replacement of multiple taxes with a single rate for each commodity (taking
Central and state GST together) is an advantage.
The fact that the same rate will be imposed on all imports in addition to the normal
import duty, is a major gain. It will level the playing field for domestic producers vis-
a-vis imports because at present imports escape the state taxes, which erodes the
protective benefit of customs duty.
The elimination of border posts will be a major benefit.
Way forward:
The GST Council should set up an expert group that could assess the performance
of the system based on results of the first year and work on a revised GST rate
structure to be implemented after the general election in 2019. One of the terms of
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reference of the group should be to pronounce on the desirability of migrating to

fewer rates.
The GST Council should be serviced by an independent secretariat which can
undertake or farm out studies that may be desired by state finance ministers, and
also comment on studies that may be put before the GST Council by either the
finance ministry, or any of the states. The Central government revenue department
has a great deal of expertise, but for it to service the GST is inconsistent with
cooperative federalism. A separate secretariat, with people taken on deputation
from the Centre and the states, and with outside experts brought in as consultants,
would be ideal.
The GST was meant to unify the country into a single market. This means more and
more organizations will set up in different jurisdictions and will need to operate
seamlessly across them. A single registration valid across all states would have been
the right thing to do.
Conclusion:
No new system is without glitches. The new system should be judged not by whether
there are problems, but by whether the problems that arise are promptly corrected.
We must recognize that the birth of the GST is only a beginning. A systematic effort
should be launched to correct deficiencies over time through the mechanism of the GST
Council.

Introduction of GST is a historic step in Indian tax reforms, however, it's just the
beginning and much more remains to be done so as to truly achieve the objective
of one country, one tax. Discuss.
Also read: GST- Continuation

http://iasbaba.com/2017/04/iasbabas-daily-current-affairs-1st-april-2017/
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ECONOMICS
TOPIC:
General Studies 3
Government Budgeting.
Need of Parliamentary Budget Office
Significance of budgets
The budget is an extremely important political expression affecting every citizen.
Budgets can be seen as contracts between citizens and the state. The budget, as a socio-
economic and political document, primarily involves a legitimate process of raising
revenue and (an equitable) distribution of public resources amongst various sectors.
The budget is the clearest expression of the direction of a governments priorities and
targets, reflecting its fiscal plans, and social and financial commitments. The budget is
also a primary instrument through which the elected representatives can exercise
influence on economic and social development policies of the country.
Importance of legislative participation in the budget process:

Effective legislative participation in the budget process establishes checks and balances
that are crucial for transparent and accountable governance, and for ensuring efficient
delivery of public services.
Ineffective Parliamentary control over budget process

Parliament is considered to be the guardian of the public purse and must play a
greater role in budgetary governance. As a budget approving body, it oversees the
following: presentation of the budget; scrutiny of the budget proposal and demands for
grants of various ministries; debate; and consideration and approval of the budget. To
carry out such functions effectively, the Parliament requires institutional, analytical and
technical competence.
However, the budget research capacity is negligible in Parliament:
The quality and comprehensiveness of the budget scrutiny process, through the
debate and the standing committees, is weak.
Due to the lack of analytical knowledge support, members of Parliament (MPs) are
unable to properly scrutinise the demands for grants in the respective standing
committees.
On occasion, MPs seek to reach out to external experts for credible analysis and
inputs. Such practices help in adding depth to the committees work and their
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reports. While this results in better assessment of demands, it is an ad hoc way of

bridging the gap in knowledge and analysis.
Consequently, Parliament appears unable to perform the aforementioned functions
effectively, often resulting in the executive acting in accordance with its own
preferences. Parliaments failure to exert meaningful influence often results in arbitrary
taxation policy, burgeoning fiscal deficit, and an inequitable allocation of public
resources among various sectors.
The above example suggests that, in India, the effectiveness of parliamentary oversight
in public finance is an unsettled concern. Establishing a Parliamentary Budget
Office(PBO) is a fitting response to this concern.
What is PBO?
A PBO is an independent and impartial body linked directly to the Parliament. It provides
high-quality technical, objective and non-partisan analysis of budgets and public finance
to the Parliament and its committees.
Need of PBO:
An institutional mechanism, such as a parliamentary budget office (PBO), is
necessary to provide continuous assistance to MPs and their committees.
An adequate and inclusive role of Parliament or the state legislatures in public
finance management is not sufficiently dealt with in the political economy literature
in India. There is a visible deficit, a knowledge gap, between Parliament and its
members in India. Parliamentarians do not have access to detailed evidence that
may allow them to pass judgment on budgetary decisions. A body that is
independent of the executive is necessary in order to provide independent
costings, fiscal analysis and research to all MPs, especially non-government
members.
Many ordinary laws have been piggybacked as money bills and included within the
Finance Act, 2017, while the Parliament remained entirely oblivious. The
establishment of a PBO would eliminate such malpractice as MPs would have been
alerted and appropriate action would follow.
A PBO is an instrument for addressing bias towards spending and deficits and, more
significantly, for enhancing fiscal discipline and promoting accountability.
Further, it can generate quality public debate on budget policy and public finance,
enabling parliamentarians to engage more meaningfully in the budget process.
A PBO could provide the essential substantive information and knowledge support
services for parliamentarians and committees. Such timely, accurate, objective,
responsive, and non-partisan information is vital for the productive working of the
parliament and its members. An independent, non-partisan, transparent body can
bridge the gap between executive decision-making and parliamentarian
involvement.
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P a g e | 126
Examples from across the world

PBOs are being established across both presidential and parliamentary systems.
Traditionally, independent budgetary units are more common in developed countries,
but many developing countries are now establishing such entities, for example, Benin,
Ghana, Kenya, South Africa, Morocco, the Philippines, Uganda, Nigeria, Liberia,
Thailand, Afghanistan, and Vietnam. The other functioning PBOs are in countries such
as the United States (US), Canada, Australia, Austria, South Korea, Italy, Mexico, etc.
Core Functions of PBOs:

Most PBOs have four core functions:
Independent and objective economic forecasts;
Baseline estimate survey;
Analyzing the executives budget proposal; and
Providing medium- to long-term analysis.
Conclusions:
The goal of the PBO is to render budgets more transparent and accountable. PBOs can
help parliamentarians understand the complex nature of the budgeting process and
provide the parliament and its committees with the capacity to contribute to the budget
process. Parliamentary scrutiny of public finance is a very important aspect for holding
the government(s) accountable to the people. However, the Parliament as well as the
state legislatures are institutionally fragile and ineffective in fulfilling their oversight and
scrutiny functions. There is a legitimate democratic need in this country to strengthen
the capacity of Parliament and its members. A PBO can ensure that parliamentarians
remain informed well enough to perform their budgetary and oversight responsibilities
effectively. Establishing a PBO in Parliament will have a positive impact on its ability to
carry out budgetary oversight and fiscal decision-making.

Parliamentarians carry out an important function of budgetary oversight. However
the parliamentary control over budget process has remained ineefective. Discuss
why is it important to have Parliamentary budget office(PBO) so as to increase the
effectiveness of parliamentary insight.
TOPIC:
General Studies 3:
Indian Economy and issues relating to mobilization of resources, growth,
development
General Studies 2:
issues arising out of their design and implementation; Important aspects of
governance, transparency and accountability
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Resolving the NPA issue: Key Challenges
Introduction:
Many new measures to help resolve Indias problem of large and mounting non-
performing loans/assets, or NPAs have been launched by the government. Still Indias
war on NPAs seem intractable. Indian regulators have not yet resolved a case that can
be showcased as an example of what the recent regulatory measures can achieve.
Recent measures:
The Securities and Exchange Board of India announced that companies that are
pursuing acquisitions as part of resolution plans approved under the Insolvency and
Bankruptcy Code, 2016 (IBC) would be exempted from open offer obligations
typically applied under Indian takeover regulations.
The Reserve Bank of India (RBI) announced its decision to focus on 12 stressed
accounts, totalling about 25% of the current gross NPAs and referring them to the
IBC immediately.
The government had cleared an ordinance to amend the Banking Regulation Act,
giving the RBI more powers to direct banks to resolve bad loans.
A tough task:
These measures do not address some of the underlying characteristics of the Indian
economy and the banking sector that make NPA resolution a diificult task in India.
Indian banks need to accept significant haircuts to resolve the NPA cases as several
of them are in sectors where market conditions are in a slump, such as steel, power
and textiles. In this environment, it is difficult for banks to find suitable buyers of
distressed assets at desired valuations.
The government will require immense political will to allow bankers to take the
necessary haircuts (which will impact profitability negatively), without bankers
fearing that their decisions will be questioned or investigated in the future.
The tight resolution timelines envisaged under the IBC cannot be achieved if bankers
do not have the commercial flexibility and the autonomy to sell distressed assets.
Another issue not addressed by the recent regulatory changes is what role
promoters play in delaying NPA resolution. Unlike more developed markets, in India,
bankers cannot make significant management changes in distressed companies as
promoters closely control key aspects of a business such as relationships with
suppliers, customers and regulators. It becomes critical that promoters should agree
to and be involved in any resolution process. However, the RBI does not regulate
promoters and other shareholders, and hence cannot force resolutions on to them.
Institutional framework to handle NPAs:
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The framework includes the National Company Law Tribunal (NCLT), the
adjudicating authority for corporate insolvency cases under Section 60 of the IBC.
It also includes the network of insolvency professionals (IPs), a special class of
professionals, who will be appointed by the NCLT and in charge of managing the
debtor company, whilst being accountable to the committee of creditors and the
NCLT.
Issues:
The severe capacity constraints of the NCLT in handling the present and past backlog
of cases is well recognised.
It is also unclear how long it will take the NCLT judges to ramp up their
understanding of the complex bankruptcy environment to allow them to handle the
cases in an expedient and fair way.
Way ahead:
Regarding IPs, it is critical for the Insolvency and Bankruptcy Board of India to quickly
develop a robust way to select the most qualified IPs.
Apart from their technical capabilities, it will be crucial to ensure that the IPs are
truly independent and do not allow promoters or other key stakeholders to
manipulate the resolution process in any unfair manner.
India has a mixed track record of regulating professional services, and the quality
and independence of the IPs is critical to the successful implementation of the IBA.
The success of the bankruptcy law in India will depend on the jurisprudence that
develops under the IBC. We have to wait and watch how the various players,
including bankers, promoters, the government, IPs, auditors, lawyers, valuers and
liquidators, behave in the next few cases.
Conclusion:
The NPA issue can be surely resolved with the hope that institutional capacity will
strengthen; there will be greater alignment in the interests of the promoters, creditors
and buyers of distressed assets; and, finally, the government and banks will show a
strong political will to settle a few cases quickly and transparently.

Insolvency and Bankruptcy Code, 2016 can surely help in resolving the Non-
Performing Assets(NPA) issue in the country. However, some more steps needs to
be taken. Discuss
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INTERNAL SECURITY
TOPIC:
General Studies 3
Security challenges and their management in border areas; linkages of organized
crime with terrorism.
Role of external state and non-state actors in creating challenges to internal
security.
General Studies 2
India and its neighbourhood- relations.
National Security: Threats and Challenges
Geo-politics, strategic and technological developments keep adding uncertainties and

new dimensions to national security. The lone wolf attacks have become the new
normal of security threats. The nature of conflicts and the objectives of war are also
changing. We have new combat theatres, such as cyber and space. Collaboration
agreements among terror outfits are increasing, with signs of greater sophistication in
the means and methods to perpetuate terror. Radicalisation via the Internet has
attained a whole new dimension. Propaganda via the Internet today involves far more
than mere recruitment imperatives. Nevertheless, a far more dangerous aspect today
is the arrival of Internet-enabled terrorism.
Security challenges for India:
External security:
India has a difficult neighbourhood and a full spectrum of security challenges. We
have over 4,900 km (4056+740+110) long unresolved borders with two major
neighbours. Both are nuclear armed. Over the years, they have established a strong
strategic nexus/alliance against India.
In the last few years, China has extended its claim to the whole of Arunachal
Pradesh. Already occupying Aksai Chin and Shaksgam part of Gilgit-Baltistan. The
China Pakistan Economic Corridor (CPEC), if and when it succeeds, will be a regional
game-changer. It would affect our relationship not only with Pakistan, but also with
Central Asia, and even Afghanistan.
As for Pakistan, the legacy of Partition continues to fuel its unremitting animosity
towards India. Kashmir and terrorism are only an expression. An increasingly
dysfunctional state like Pakistan, run by generals and increasingly wracked by
religious extremism, will not make peace with India.
China has been equipping Pakistan with strategic and conventional military
capabilities. With CPEC we will see more Chinese armed forces will enter Pakistan
to protect their assets and personnel.
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The US will continue to provide support to Pakistan, so long as it remains entangled

in Afghanistan.
The developing Russia-Pakistan military bonhomie indicates that India can no longer
take Russia for granted.
It is not Pakistan alone. There will be challenges from neighbouring countries where
China offers a counterweight. Virtually all our neighbours support Chinas OBOR
project, and its entry into SAARC. We can expect a greater presence of Chinese Navy
in the Indian Ocean.
Internal Security:
On the internal security front, much more worrisome today are the new, emerging
vulnerabilities.
Growing unemployment, the increasing ethnic, caste, communal divides, the
worsening Centre-state relations, and politicisation of every socio-economic issue
have ignited more fires lately and caused serious and more frequent law and order
situations.
Partisan politics over national security issues with media exploiting it for TRPs
with the multiplier effect of social media is getting the armed forces into political
cross-fire.
Non- traditional security challenges facing India:

The lack of strategic and security awareness of our ruling elite- India lacks a strategic
culture.
Partisan politics over national security issues which includes drawing the armed
forces into political cross-fire. We lack strategic interest, vision, or security policies.
Our political leaders take little interest in long-term strategic and security issues
other than rhetorical and emotional sound-bites.
Yet another challenge is our defence management. The requirement to re-organise
the Ministry of Defence, its business rules and appointment of a CDS (Chief of
defence staff) has been talked of ever since the Kargil war. This has been
recommended by the Kargil Review Committee in 1999, the Group of Ministers in
2002, and the Naresh Chandra Committee in 2012.
Way ahead:
We need to design and produce a major proportion of the hardware required by our
armed forces. We now have an elaborate Defence Procurement Procedure (DPP-
2016), with the newly approved strategic partnership model which will enable
private players to make big tickets defence systems. We thus need to build our
defence industrial base,
We require frequent updating of weapons, equipment, revision of security concepts
and doctrines, greater level of jointmanship and synergy, and much faster decision-
making.
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In recent years, cyber and space domains have added yet another complexity. The
entire command and control mechanism of the government is dependent on space
satellites and IT facilities. Therefore, any military cyber war infrastructure should
work in close coordination with the National Information Board.
It is essential to develop, prioritise and optimally employ inter-services capabilities
and promote jointness in the armed forces.
Conclusion:
Indias security challenges are less traditional war threats, more diffused and
ambiguous. What is worrisome currently is not just the external threats, but Indias
weakening from inside: Weakening institutions, poor governance, sharpening political,
social and ethnic divides, internal security, and our lack of strategic vision and thinking.
Countering national security challenges and decision-making can no longer be dealt
with in silos. These challenges require multi-disciplinary vertical and lateral
consultations, and much faster decision-making.

Geo-politics, strategic and technological developments have added uncertainties
and new dimensions to India's national security. Discuss major threats and
challenges faced by India when it comes to national security.
TOPIC:
General Studies 2:
General Studies 3:
Mobilization of resources, growth, development and employment
Indigenization of technology and developing new technology.
Indian Defence Manufacturing
In news:
Tata Advanced Systems Ltd and US plane-maker Lockheed Martin Corp. signed an
agreement at the Paris Air Show to produce F-16 fighter jets in India.
Reliance Defence entered into a strategic partnership with Serbias Yugoimport for
ammunition manufacturing in India.
Reliance Defence joined hands with Frances Thales to set up a joint venture that
will develop Indian capabilities in radars and high-tech airborne electronics.
Meanwhile, at home in India, the army rejected, for the second year in a row, an
indigenously-built assault rifle after it failed field testsa pointed reminder of how the
countrys sub-par defence industry continues to damage the militarys operational
preparedness.
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In recent years there has been a greater focus on developing indigenous capabilities
through technology transfers and joint production projects with international
partners.
The government has also put defence at the core of its flagship domestic
manufacturing programme, Make in India.
It has opened up the still largely state-run sector to private players and foreign firms
in an effort to build a defence industrial ecosystem that will not only support the
countrys military requirements but also emerge as an important economic lever
generating exports, creating jobs, and spurring innovation.
The target is to source about 70% of Indias military needs from domestic sources
by 2020.
Importance of having an indigenous technology base:

Immunity against technology denials
Enabling the pursuit of an independent foreign policy without having to kowtow to
global powers
An indigenous technology base provides an impetus for a country's economic
development.
Cause of concern
Notably, the defence manufacturing industry has been open to the private sector for
well over a decade, and several foreign firms are involved in the joint production of
weapons systems in India. Yet the defence industrial ecosystem hasnt quite taken off.
The Indian military is still heavily reliant on foreign imports and state-owned defence
firms are still the dominant force in the market. Private firms, though growing in
number, have struggled to find their feet. Much will depend on how its strategic
partnership model, released late May, plays out on the ground.
Strategic partnership model:

Conceptualized by the Dhirendra Singh committee in 2015
The ultimate aim of the model is to enhance Indias self-reliance index in defence
procurement which continues to remain at an abysmally low level
Under this model the defence ministry will identify a few Indian private companies
as strategic partners (SPs) to tie up with a few foreign original equipment
manufacturers to produce some big-ticket military platforms.
To allay fears that the MoD may favour one company over another, the selection of
SPs and their foreign OEM partners would be based on a competitive process to be
undertaken simultaneously.
In the process, the SPs are expected to help catalyse the countrys defence industrial
ecosystem.
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Potential Benefits:
From the private sectors point of view, the biggest benefit would be the
opportunity to participate in some big ticket contracts which were hitherto reserved
for the DPSUs and OFs.
The model would also go a long way in bridging the long-standing trust gap between
the Indian private sector and MoD, with the latter perceived to be friendlier toward
public sector entities.
Given that future orders would not be awarded automatically after the initial
contract, it is in the interest of SPs to constantly improve upon their competitiveness
and core expertise.
The development of competitiveness and expertise to compete to win future
contracts, which was lacking in the case of DPSUs/OFs because of a constant flow of
orders handed over on a platter by the MoD, is something that would contribute to
laying a strong and credible foundation for Indias military industrial complex.
Challenges:
Lack of institutional capacity and ability to guide the new process to its logical
conclusion. In the past, several promising measures, especially those connected
with the Make and Buy and Make (Indian) procedures, have failed to yield the
desired results because of these shortcomings.
There is also a concern regarding the long-term viability of SPs largely due to the
privileged position enjoyed by public sector entities. Time and again, the MoD has
deviated from its own promise of fair play in award of contracts and handed over
large orders to DPSUs and OFs on nomination. It would be futile to expect SPs to
make major investments if the government does not provide a level-playing filed to
the private sector.
Yet another issue is that of how small and medium-scale enterprises (SMEs) will
respond to this model. SMEs are crucial to building a vibrant and robust ecosystem.
In particular, they do a much better job of absorbing, developing and
commercializing niche technology, which is key in the defence sector. But while the
government acknowledges their role and importance, it is unclear if its policy
supports that vision.
Outside of policy design, the biggest challenge to developing Indias defence
industry ecosystem is undoubtedly human resource and skill development. The
Dhirendra Singh committee report deals with this issue at length, noting that India
at present does not have a structured framework and a robust system to prepare its
human resources to address all issues connected with building and sustaining
defence systems.
Way ahead:
Apart from overcoming above mentioned challenges we need to bridge the skills gap
by-
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P a g e | 134
Bringing changes to academic curriculum.

Setting up institutions that specialize in defence and security.
Raising a new generation of system integration managers.
Conclusion:
The "strategic partnership" model can potentially be a turning point in Indias
endeavour to have a robust home-grown private defence industrial base. It can be seen
as shot in the arm for the governments Make in India programme as well as efforts by
the Indian private sector to make inroads into the lucrative defence equipment
business. Thus the step is a welcome one,however, we need to overcome some
challenges.

Discuss how the "Strategic Partnership" model released by the government this year
can help India establish its own domestic base for defence manufacturing.
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Page |1

Push yourself, no one else is going to do it for you

All the Best

INTERNATIONAL (Page No. 72-98)

20 years of BIMSTEC: Hopes and Apprehensions

HEALTH (Page No. 99-104)

ENVIRONMENT (Page No. 105-110)

ENERGY (Page No. 111-113)

ECONOMY (Page No. 114-123)

ECONOMICS (Page No. 124-128)

INTERNAL SECURITY (Page No. 129-134)

Twenty world- class "Institutions of Eminence" to be established

Higher education in India is in deep crisis:

Reasons behind poor standard of higher education in India:

An excess of regulation in the name of good governance.

Connecting the dots

Also read: The state of education in India

Better Evaluation System

Learning Levels and impact:

What this makes clear is that encouraging performance on enrolment of students

Preventive Detention Law

Goondas Act and concerns:

Connecting the dots

Political funding: Maintaining transparency

Amendments proposed in Finance bill:

Concerns raised by Election Commission:

Connecting the dots:

Maintaining transparency in political funding has become an important issue

Also read: Political funding in India- towards more transparency?

Missing women in India's labour force

Census 2011 report

Why improving female LFPR is important?

Ensuring gender justice and equality.

Reasons behind low LFPR for women:

Low LFPR for urban women:

Every cloud has a silver lining:

Encouraging women entrepreneurship:

Connecting the dots:

TOPIC: General Studies 2

India-EU FTA- what ails it and way forward

Investor-state dispute settlement (ISDS) mechanism- It is a system through which

The position now

India and EU- way forward

Introduction of Multilateral Investment Court (MIC)

Challenges for India

Connecting the dots:

Indias neutrino opportunity

How the idea developed?

Importance of studying neutrinos

Challenges posed by INO?

How are they being addressed?

Connecting the dots:

Providing safety-net: Pension for all

To provide old age income

Providing safety-net pension for all:

Steps taken by government:

What more needs to be done?

Connecting the dots:

Understanding the agitating farmers

Pic credits: http://timesofindia.indiatimes.com/india/farmer-suicides-up-42-

Why are farmers agitating?

Why farm loan waivers is not a solution?

Connecting the dots: