GS 2 - June

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GS - 2
Contents
1 Polity + Rights issue ............................................................................................................................... 4
1.1 Andhra Pradesh hoping for special category status .............................................................. 4
1.2 Radically reforming higher education ..................................................................................... 4
1.3 Fresh ideas, not more institutions ........................................................................................... 5
1.4 A step back for education .......................................................................................................... 7
1.5 Cleaning up Ganga among Ministrys top priorities............................................................ 10
1.6 Cleaning the Ganga, step by step ........................................................................................... 10
1.7 Naveen seeks special status for Odisha ................................................................................. 11
1.8 West Bengal, Maharashtra ink pact on victims of trafficking ............................................ 12
1.9 A huge health burden............................................................................................................... 12
1.10 Will tax hike reduce tobacco consumption in India? .......................................................... 13
1.11 Fighting for survival ................................................................................................................. 14
1.12 PM briefed on nuclear command chain ................................................................................ 15
1.13 INS Arihant propels India to elite club ................................................................................. 16
1.14 Tamil Nadu presents its case .................................................................................................. 16
1.15 Sumitra Mahajan to be elected Speaker today ..................................................................... 17
1.16 Reports on rethink on Subramanium appointment speculative: official ......................... 18
1.17 Narmada dam to be higher by 17 m ....................................................................................... 19
1.18 New norms for granting minorty tag ..................................................................................... 19
1.19 A prime ministerial form of government .............................................................................. 19
1.20 DEMOCRATIC CREDENTIALS ON TEST ........................................................................... 20
1.21 Cutting through legal clutter................................................................................................... 20
1.22 Govt. eases out UPA appointees ............................................................................................. 22
1.23 Independence from the government ..................................................................................... 22
1.24 Guard against hasty revision .................................................................................................. 23
1.25 Modi govt.s first Budget on July 10 ...................................................................................... 24
1.26 Supplementing without supplanting ..................................................................................... 24
1.27 Objections from judges force rethink on judicial accountability Bill ................................ 25
1.28 Judges list: Gopal Subramanium opts out ............................................................................ 26
2 Pub Ad related .................................................................................................................................... 27
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2.1 For quicker decision-making .................................................................................................. 27
2.2 Modi dissolves 4 Cabinet panels ............................................................................................ 28
2.3 Lack of real time data to impact policy making ................................................................... 28
2.4 Pricing public transport........................................................................................................... 29
2.5 Lokpal is no magic bullet ........................................................................................................ 30
2.6 NGOs stance on development projects to hit growth: IB ................................................... 31
2.7 Answering to law, not to Caesar ............................................................................................. 32
2.8 The importance of dissent in democracy .............................................................................. 32
2.9 Individuals and institutions .................................................................................................... 33
3 IR/Diplomacy ....................................................................................................................................... 34
3.1 China wary of Japans proactive role ................................................................................... 34
3.2 China says U.S., Japan singing notes in chorus ................................................................. 35
3.3 Japan, China in fresh spat ....................................................................................................... 35
3.4 US seeks to cut power plant carbon by 30 p.c ...................................................................... 35
3.5 Obamas climate plan: rhetoric vs. reality ............................................................................ 36
3.6 Sri Lanka arrests 33 Indian fishermen .................................................................................. 36
3.7 New realities in the world order ............................................................................................. 38
3.8 Offering an alternative narrative ............................................................................................ 39
3.9 An opportunity to seal a deal with Pakistan ......................................................................... 40
3.10 The President others want ...................................................................................................... 41
3.11 G7 leaders to discuss Ukraine crisis ...................................................................................... 41
3.12 U.S. security plan for eastern Europe .................................................................................... 42
3.13 In a hole, and still digging ....................................................................................................... 43
3.14 Abbas swears in Palestinian unity government ................................................................... 43
3.15 Modi-Obama talks in September ........................................................................................... 44
3.16 Modi sets a furious pace for international visits .................................................................. 44
3.17 A doctrine of economic levers, soft power ............................................................................ 45
3.18 WTO: Modi banks on BRICS .................................................................................................. 47
3.19 U.S. push to tag India as emerging economy aimed at market access ............................ 47
3.20 Letter exchange reflects Modis direct diplomacy ............................................................... 48
3.21 Hydel projects central to our ties ......................................................................................... 48
3.22 Modi stresses B2B ties with Bhutan .................................................................................... 49
3.23 Reaching out to Bhutan ........................................................................................................... 49

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3.24 No strategic contest with India: China .................................................................................. 50
3.25 PMs visit signals maritime ambitions .................................................................................. 50
3.26 Afghanistan bets on Indian help after U.S. drawdown ....................................................... 51
3.27 Colombo rejects Jayalalithaas allegations ........................................................................... 51
3.28 Victims of political manipulation ........................................................................................... 52
3.29 Sushma, Wang talk trade ........................................................................................................ 53
3.30 Border resolution must be fair: Wang ................................................................................... 53
3.31 China invites India to join Asian Infrastructure Investment Bank ................................... 54
3.32 Fixing problems of workers overseas is priority: Sushma .................................................. 54
3.33 ECB hurls cash at euro zone economy, says not done yet .................................................. 54
3.34 Mass surveillance is permitted by law in the U.K. ............................................................. 55
3.35 Rebels seize Iraq's second-largest city .................................................................................. 55
3.36 Iraq trouble ............................................................................................................................... 56
3.37 Turning to Iran ......................................................................................................................... 56
3.38 War in Iraq hurts every home in India .................................................................................. 57
3.39 India must find its voice in West Asia ................................................................................... 57
3.40 A time for Arab, Asian statesmanship ............................................................................... 59
3.41 Changing rules of the game of thrones .................................................................................. 59
3.42 Rafale deal to top French Foreign Ministers agenda.......................................................... 60
3.43 India eases visa norms for senior Bangladeshi national ..................................................... 60
3.44 Hasina seeks partnership with China .................................................................................... 60
3.45 Teesta high on Dhakas agenda .............................................................................................. 61
3.46 India more open to n-inspections .......................................................................................... 62
3.47 Positive step, but hurdles remain........................................................................................... 62
3.48 Mysore site may be covertly used to produce n-material: U.S. think tank ...................... 63
3.49 Agenda for nuclear diplomacy ................................................................................................ 63
3.50 Upholding the Five Principles ................................................................................................ 64
3.51 Moving beyond the Panchsheel deception ........................................................................... 66
3.52 Kabul cannot fight terror alone: envoy ................................................................................. 67
3.53 Continue the conversation ...................................................................................................... 67
4 Yearbook/welfare schemes ................................................................................................................ 68
4.1 UPA flagship scheme to be rejigged....................................................................................... 68
4.2 KANYASHREE PRAKALPA .................................................................................................... 68

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4.3 The battle for toilets and minds ............................................................................................. 69
4.4 The new urban agenda............................................................................................................. 69
4.5 UN award for govts Mobile Seva initiative .......................................................................... 70

1 POLITY + RIGHTS ISSUE
1.1 ANDHRA PRADESH HOPING FOR SPECIAL CATEGORY STATUS
N. Chandrababu Naidu, made a strong bid for the special package and financial assistance to the
fledgling Seemandhra comprising 13 districts.
The special category status requires discussion in the Planning Commission followed by the
National Development Council. The proposal includes a six-point development package,
comprising tax and industrial incentives as offered to Uttarakhand and Himachal Pradesh.
The A.P. Reorganisation Bill already provides for a special development package for the
backward regions of the successor State, particularly the seven districts of Rayalaseema and
north coastal Andhra. This is proposed on the lines of the KBK (Koraput-Bolangir-Kalahandi)
special plan in Odisha.
The special category status proposed for a period of five years is expected to put the States
finances on a firmer footing.
Fiscal measures like tax incentives are intended to promote industrialisation and economic
growth in both the States. The special package includes expansion of physical and social
infrastructure in the backward regions. It proposes setting up of a AIIMS type super speciality
hospital cum teaching institute and National Institute of Disaster Management in the successor
State besides tribal university one each in both the states.

Other infrastructure projects proposed are
New major port at Durgarajapatnam, Nellore
IOC/HPCL crude oil refinery
Vizag-Chennai Industrial corridor
new railway zone
metro rail facility in Vizag and Vijaywada-Guntur-Tenali-Mangalagiri Urban
Development Authority.

1.2 RADICALLY REFORMING HIGHER EDUCATION
Author points out to the problems in higher education of our country which can be worked out:
politicization of public institutions,
a perceived lack of regulation of faculty and
desirability of creating knowledge as opposed to disseminating it.
1. Regulation of the faculty

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a form of regulation of the faculty does exist: college lecturers are required to teach for around
16 hours a week.
Problem with this regulation: This must amount to at least three times the global average. It is
anybodys guess what the quality of these lectures is, given that young teachers have no time to
prepare for them.
Solution: tutorials should be instituted to complement lectures. This is not just to ensure that
students have a second chance to comprehend difficult ideas, but to encourage them to actually
communicate what they have learnt.
2. Lack of faculty accountability
Solution: Student evaluation of courses publicly displayed is the surest way of instilling
accountability among faculty. It should also be taken into account when a lecturer comes up for
promotion.
3. Lack of Knowledge Creation
Problem: we are largely consumers rather than producers. This is related to our approach to
knowledge creation. A few years ago, the UGC instituted a form of research evaluation based on
a points system. This approach to governing knowledge creation is subsumed under the
metric Academic Performance Indicator (API), a quantitative summary of a lecturers output.
Research itself is scored on the basis of a ranking of journals in which it is published. This
system of governing is objective but is not giving the desirable results.
Solution:
research ought to be assessed on its own merits rather than on the basis of the journal in
which it was published.
The long-standing practice in India had been to have research peer-reviewed and these
reports considered by a committee of experts. There should be a return to this practice as it is
superior to the points-based system which prejudges content and quality.
Finally, in issuing a guideline for assessing research, the UGC must focus exclusively on
the researchers contribution to knowledge and cease privileging foreign publications over
Indian ones and international conferences over national ones.
1.3 FRESH IDEAS, NOT MORE INSTITUTIONS
Problems of higher education in India and changes required are:
1. Indian Universities seldom make an appearance in International rankings whereas Asian
universities which are only two decades old are making into the top rankings.
Further in Indian Universities there is no scope for knowledge creation and serious research and
scholarship.
Effecting transformation involves five things:
substantial resources,
a progressive regulatory environment in which higher education regulators begin to trust
universities

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a new governance model for creating opportunities and space for research and
scholarship
an enabling environment within universities that will significantly incentivise research
and publications
an attitudinal change among all stakeholders in the higher education sector
Mindless expansion
With its focus on expanding the higher education sector and increasing the Gross Enrollment Ratio
there has been mindless expansion leading to:
1. Mediocrity
2. Well funded Central institutes having inadequate faculty
3. State Universities having neither the resources nor the faculty
To tackle this government needs to:
1. fill the faculty positions in a time bound manner
2. Tactful engagement with the institutions and a creative approach to faculty recruitment.
3. Archaic policies that have outlived their time should be dispensed with while recruiting
faculty.
While all this is done no more new IITs or IIMs
Lack of Knowledge creation and Research
Here also focus has been on building laboratories and knowledge parks, promoting an industry-
academia interface and pursuing research grants and creating incubators.
1. There is a need to start a culture of research instead.
2. focus on a set of specific goals
3. Having a select of institutions both from private and public to represent the best and they
should be enhanced in terms of their research capacities so as to serve as role model to future
universities.
Lack of collaborations
New ideas and perspectives can be developed only when there is collaboration among universities
and faculty. But such collaborations are missing because of:
1. biases and prejudices that have led to skepticism
2. bureaucratic approach of university managements and regulators has led to the creation of
too many hurdles in the pursuit of any meaningful collaboration
So following things need to be done:
1. Existing policies relating to research collaborations both within and outside India need to be
re-examined and made more progressive and inclusive

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2. ensuring greater autonomy and freedom to universities to determine who they want to
collaborate with and what the terms of collaboration should be
3. remove the distinctions that exist in relation to public and private universities; instead,
universities ought to be differentiated on the basis of their performance and contribution
Innovation
1. The biggest challenge is to create an enabling environment to promote innovation.
2. Archaic rules and regulations that are constantly flouted have given rise to opportunities
to dubious institutions to be engaged in corruption.
3. There is a need to seek a change in the attitude of government departments that are
involved in policymaking, and regulatory bodies that are monitoring and ensuring standards in
higher education.
4. The deep distrust that is prevalent among the institutions on the one hand and the
government and regulatory bodies on the other has made the higher education sector static.
There is little effort in seeking innovation. This has to change, and quickly.
1.4 A STEP BACK FOR EDUCATION
Since we have statutory bodies in our course so UGC becomes an important topic. So first some
gyaan on UGC:
The University Grants Commission (UGC) of India is a statutory organisation set up by the
Union government in 1956.
Current Chairman : Prof Ved Prakash
Mandate:
The UGC has the unique distinction of being the only grant-giving agency in the country which
has been vested with two responsibilities: that of providing funds and that of coordination,
determination and maintenance of standards in institutions of higher education. The UGC's
mandate includes:
1. Promoting and coordinating university education.
2. Determining and maintaining standards of teaching, examination and research in
universities.
3. Framing regulations on minimum standards of education.
4. Monitoring developments in the field of collegiate and university education; disbursing grants
to the universities and colleges.
5. Serving as a vital link between the Union and state governments and institutions of higher
learning.
6. Advising the Central and State governments on the measures necessary for improvement of
university education.

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Some history (for prelims)
The present system of higher education dates back to ''Mountstuart Elphinstone's minutes
of 1823, which stressed on the need for establishing schools for teaching English and the
European sciences'''. Later, Lord Macaulay, in his minutes of 1835, advocated "efforts to
make natives of the country thoroughly good English scholars".' Sir Charles Wood's
Dispatch of 1854, famously known as the ' Magna Carta of English Education in India',
recommended creating a properly articulated scheme of education from the primary school to
the university. It sought to encourage indigenous education and planned the formulation of a
coherent policy of education. Subsequently, the universities of Calcutta, Bombay (now Mumbai)
and Madras were set up in 1857, followed by the university of Allahabad in 1887. The Inter-
University Board (later known as the Association of Indian Universities) was established in
1925 to promote university activities, by sharing information and cooperation in the field of
education, culture, sports and allied areas.
The first attempt to formulate a national system of education in India came In 1944, with
the Report of the Central Advisory Board of Education on Post War Educational
Development in India, also known as the Sargeant Report. It recommended the formation
of a University Grants Committee, which was formed in 1945 to oversee the work of the
three Central Universities of Aligarh, Banaras and Delhi. In 1947, the Committee was
entrusted with the responsibility of dealing with all the then existing Universities. Soon after
Independence, the University Education Commission was set up in 1948 under the
Chairmanship of Dr. S Radhakrishnan "to report on Indian university education and suggest
improvements and extensions that might be desirable to suit the present and future needs and
aspirations of the country". It recommended that the University Grants Committee be
reconstituted on the general model of the University Grants Commission of the United
Kingdom with a full-time Chairman and other members to be appointed from amongst
educationists of repute.
In 1952, the Union Government decided that all cases pertaining to the allocation of grants-in-
aid from public funds to the Central Universities and other Universities and Institutions of
higher learning might be referred to the University Grants Commission. Consequently, the
University Grants Commission (UGC) was formally inaugurated by late Shri Maulana Abul
Kalam Azad, the then Minister of Education, Natural Resources and Scientific Research on 28
December 1953. The UGC, however, was formally established only in November 1956 as a
statutory body of the Government of India through an Act of Parliament.
Now understanding the controversy:
Events in 2013:
Vice-Chancellor of Delhi University announced a Four Year Undergraduate Programme (FYUP)
in order to 1. better target courses to industrial requirements
2. to make the UG course equivalent to international UG courses.
(This was considered to be Kapil Sibal's pet project)
Problem with the course:

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1. Syllabus was drafted in a hurry and the most of it is too basic thus defeating its purpose.
2. It violates the National Policy on Education that mandates a 10+2+3 format
3. The change was not brought about through an amendment of the Universities Act; the
President (the Visitor to all central universities) was not consulted either.
So in 2014, after one year of implementation UGC declares the course illegal (after protest by
ABVP, student wing of BJP).
DU's stand:
1. UGC had supported the Universitys move last year and said that as per the Indian Education
Commission (1964-66), the duration of a programme may vary from varsity to varsity and also
within the same varsity.
2. FYUP programme was approved by the academic council and the executive council of the
university, which are statutory bodies under the Delhi University Act of 1922
But finally DU had to scrap the program (as UGC declared it illegal and threatened to stop
funding)
Now author's view in the article:
1. Section 12 (1) of the UGC Act clearly states: It is the duty of the Commission to determine and
maintain standards in higher education in consultation with the universities [emphasis added].
This makes it incumbent on the UGC to respect the institutional autonomy of all universities
and accord them due deference and latitude in complying with its regulations. This is necessary
to empower universities to undertake bold academic initiatives.
2. Some other universities are also not following the 10+2+3 policy but they have not been
declared illegal (IISC and Ambedkar University , Delhi)
3. warning the colleges that their grants will be cut if they do not comply with the UGCs
directive reflects the bodys patronising attitude toward institutions of higher learning.
4. to ask a university to scrap its existing undergraduate programme and introduce a new
programme in the middle of the admission process is inexplicable.
Our universities will be deterred from undertaking brave academic decisions in future fearing
UGCs indignation. This does not augur well for Indias higher education. This episode is a grim
reminder why India, despite having talented academicians and students, has failed to develop
world-class universities. Our universities cannot attain global standards till they are freed from
excessive officious control and the bureaucratic mindset of regulatory bodies.
My view:
Although UGC's 180 degree turn and undermining of DU's autonomy does not presents a good
picture for the future of higher education in India but making reforms for just the sake of it also
doesn't augurs well on part of DU. If it wanted to bring changes then they should have been
properly planned and executed.

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1.5 CLEANING UP GANGA AMONG MINISTRYS TOP PRIORITIES
100-day priority list of the Union Ministry of Water Resources:

1) Cleaning up of the Ganga: The National Ganga River Basin Authority (NGRBA), which is
presently under the Ministry of Environment and Forests, is likely to be transferred to the Water
Resources Ministry.

2) Execution of river water-related provisions under the Telangana Act: Setting up
and operating a Krishna River Management Board and a Godavari River Management
Board for overseeing the sharing of river waters and regulating projects in the two basins, as
defined in the Andhra Pradesh Reorganisation (or Telangana) Act, 2014.

An apex council, chaired by the Water Resources Minister, with the Chief Ministers of
Telangana and Andhra Pradesh as its members, will be formed for supervising the two boards.
This is also a provision in the Telangana Act.
Setting up a Polavaram National Project Authority for the multipurpose scheme has also
been included.
1.6 CLEANING THE GANGA, STEP BY STEP
Issues affecting the river are myriad and complex.
Untreated sewage and industrial waste are dumped into the waters without remorse.
Reduced flow and rampant underground water withdrawals affect millions of people
who depend on the rivers water.
Further, floods and droughts, which endanger lives and cause serious damage to crops,
livestock and infrastructure, are a common phenomenon in the river basin.
A changing climate will pose more challenges. The combination of glacial retreat,
decreasing ice mass, early snowmelt and increased winter stream flow will add to the pressure.
Recent initiatives by the Indian government
including River Development and Ganga Rejuvenation to the portfolio of the Minister
of Water Resources
establishment of the National Ganga River Basin Authority and the National Mission for
Clean Ganga
What all needs to be done?
1. A Basin-scale management of Ganges is required because
Ganges is a complex transboundary basin which flows across different
jurisdictions. Therefore, a basin-scale approach would help manage the water
resources better.
This would require close coordination with all the countries sharing the Ganga,
such as Nepal and Bangladesh, so that the interests of both upstream and
downstream users are taken into consideration. The existing treaties on sharing
water resources could be renegotiated as shared management of water
resources.

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2. Making waste water treatment feasible for agricultural purposes
Ganga is highly polluted. Yet, of the 400 million people living along the banks of the river,
many still rely on its natural systems for their livelihoods. According to a World Bank report, a
number of government efforts (Ganga Action Plan: Phases I and II) have attempted to address
the pollution problem, but the results have been disappointing so far. It is estimated that sewage
constitutes the largest portion (80 per cent) of the pollution load followed by pollution caused
by industrial discharge agricultural activities. With agricultural activities intensifying in areas
near the river, particularly in urban and peri-urban areas, farmers frequently rely on waste
water for irrigation. This poses a serious public health risk.
However, this adversity can be turned into an opportunity as urban waste offers a significant
nutrient resource for farming, if safely treated and applied. Low cost, simple ecological
sanitation and reuse systems will be keys to making waste water treatment feasible for
agricultural purposes.
3. Maintaining Environmental Flows
Environmental flows are essentially the water requirements of aquatic ecosystems and of basic
human, social and spiritual needs. However, the concept of environmental flow only refers to
the the quantity of water required to maintain river ecology under different environmental
conditions. Innovative methods for maintaining environmental flows and the quality of water
during environmentally critical periods, along with procedures for implementing these methods,
need to be investigated.
4. Major investments are required to address climate variability
Existing flood forecasts are often too technical and not easy for the public to
understand. Application of remote sensing and hydrological modelling has helped in
developing high-quality flood maps, which are useful for developing plans for river
conservation, maintaining the quality of water in different stretches and, more importantly,
reducing the vulnerabilities of the affected communities.
Innovative approaches such as underground taming of floods for irrigation and aquifer
management could offer solutions to the flood problem. These approaches essentially involve
storing floodwaters in underground structures in upstream areas. This will help prevent floods
and help maintain water availability even during dry seasons.
5. Partnerships with various stakeholders
Successful implementation of this task would require partnerships with various stakeholders.
Multiple agencies working to address the problem could be brought on board. The private sector
has also shown its willingness to be a partner in cleaning the river, especially at critical points
such as Varanasi. Similarly, the public at large, along with civil society groups, also need to be
actively engaged in these efforts.
1.7 NAVEEN SEEKS SPECIAL STATUS FOR ODISHA
Odisha CM demanded:
special category status for his State.

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the Polavaram project in Andhra Pradesh be scrapped as the project would cause
displacement of people and submergence of land in Malkangiri district. The State had already
taken the matter to the Supreme Court.
sought full compensation for the revenue loss the State would suffer due to the phasing
out of the Central Sales Tax (CST). Either that, or the Centre should restore the CST rate to the
original 4% till the GST was implemented.
Odisha received a mere Rs. 256 crore as compensation in 2010-11 for the phase-out of
CST, as against the loss assessment of Rs. 664 crore.
Royalty rates on major minerals to be revised to 15 per cent from 10 per cent.
SPECIAL CATEGORY STATES:
These are hill, border and weak-infrastructure states. Central assistance for State plans is in the
form of Grants and Loans. For SCS the Grant component is 90% and Loan is 10%. While for
other states grant component is 30% and Loan component is 70%.
1.8 WEST BENGAL, MAHARASHTRA INK PACT ON VICTIMS OF
TRAFFICKING
The governments of West Bengal and Maharashtra have signed a MoU to ensure
identification and repatriation of women and children who are victims of
trafficking.
Why MoU?
In most cases when the Maharashtra Police rescue some women or children and find that they
are Bengali-speaking, they send them to the State without ascertaining their identity or
following any procedures.
Since the identities of those rescued are not ascertained sometimes, rescue homes in the
State(WB) are flooded with women and girls from Bangladesh. On several occasions, police from
other States brought the victims to the shelters without informing the State government. This
added to the victims ordeal.
From now on, a standard operating procedure (SOP) will be followed in repatriating
victims. Maharashtra will repatriate the women directly to Bangladesh once the place they are
from is confirmed. Under no circumstances will women [victims] who speak Bengali be
transferred to West Bengal till family tracing is done.
1.9 A HUGE HEALTH BURDEN
Some facts about tobacco consumption menace in India:
27 per cent of tobacco consumers in India fall in the 15-24 year age bracket
If the global tobacco-related mortality is about 5.5 million people annually, Indias
burden alone is nearly one million.
With nearly 35 per cent of the adult population in the country addicted to the dangerous
substance rolled in paper or leaf or packed in plastic sachets, India is the second largest
consumer of tobacco products in the world.
Now apart from health effects on people it also has severe effect on economy.
Now the usual reason given for not curbing sales of tbacco related products is that significant
revenue is raised through its sale. But what is not considered is the amount of money spent in
health care due to this. This becomes relevant from the fact:

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The out-of-pocket expenditure on medical treatment results in higher poverty rates. A recently
released Health Ministry report estimates that 9.3 lakh people in India are affected by the health
costs of tobacco. According to the report, the total health expenditure burden of tobacco
in the year 2011 was a little over Rs.100,000 crore. To put it in perspective, the amount
was 12 per cent more than the combined State and central government
expenditure on health in 2011-12.
The revenue earned through excise duty in the same year was a paltry 17 per cent
of the health burden of tobacco.
Now how to curb this menace one major solution is Raising taxes:
New Union Health Minister supports higher taxes on cigarettes and tobacco products;
raising tax on tobacco is the WHOs theme this year. But for any tax increase to become
effective, the price difference between various brands and different tobacco products must be
minimal. But India follows a bizarre, producer-friendly excise duty structure for cigarettes,
beedis and chewing tobacco that makes a mockery of taxation. Hence, a complete overhaul
of the taxation system is warranted to achieve the desired benefits.
1.10 WILL TAX HIKE REDUCE TOBACCO CONSUMPTION IN INDIA?
India is the second highest consumer of tobacco products in the world nearly 35 per cent of
the adult population consumes tobacco products. Tobacco consumption kills one million indians
annually; the global burden is 5.5 million.
Health ministry recently said it supports higher taxes for cigarettes and tobacco products so they
become very expensive and thereby reduce consumption.
The author disagrees with this argument saying that taxation practices in india and developed
countries are quite different. The reasons are:
98 per cent of beedis available in the market are handmade though
mechanisation is possible as handmade beedis are taxed just Rs.12 per 1,000 sticks while
machine-made ones are taxed Rs.30 per 1,000 beedis.
Beedi manufacturers dont have to pay any tax if they produce less than two
million beedis per year. Therefore, number of small-scale beedi manufacturers has reduced
by more than 50 per cent with a concomitant increase in households involved in beedi rolling.
In the case of cigarettes, unlike the system followed abroad, the taxation in India is
based on the length of the cigarette. Since longer cigarettes attract more tax, consumers
simply shift from longer cigarettes to shorter ones.
The taxation structure in India is not linked to inflation. This makes any increase in
tax irrelevant over a longer period. Tobacco products become cheaper relative to income
affordability.
Consumption can be reduced substantially through taxation only if India changes the taxation
structure. Changes needed are:
Ensure that excise duty is consistent across tobacco products so as to prevent
product substitution.
Taxation of all tobacco products should be inflation-adjusted and corrected
annually.

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The tax on cigarettes is about 43 per cent of the retail price. This is way below the WHOs
recommended excise duty of 70 per cent of the retail price. There is huge room for the
government to increase cigarette tax.
Removing the differential tax system between handmade and machine-
made beedis.
Remove the tax exemption to those who produce less than two million
beedis a year.
Tinkering with the beedi taxation system and increasing taxes on beedis will be the most
difficult part. However, huge gains will accrue if that is done. Generally People from the lower
socio-economic stratum consume beedis hence consumption will come down quickly if beedi
prices are increased.
1.11 FIGHTING FOR SURVIVAL
Some facts highlighting the sorry state of our health system:
Of the three million neonatal deaths globally in 2012, some 779,000 were in India (India
ranks number 1 here also)
Also, globally there were 2.6 million stillbirths in the same year, of which 600,000 were
in India.
Of the one million newborns dying globally on the first day of birth, nearly one-third are
in India.
The country, which had a neonatal mortality rate of 29 per 1,000 live births in 2012,
recorded an average annual rate of reduction of just 2.6 per cent during 1990-2012. According to
papers published recently in The Lancet , India, Nigeria and Pakistan registered the slowest
rates of progress in reducing neonatal mortality.
According to a 2012 WHO report, India is one of the 10 countries with an estimated 100,000 to
250,000 preterm births, as in 2010. The high number of preterm births is one of the
reasons for the very high numbers of newborn deaths in the country preterm
births cause about 50 per cent of neonatal mortality.
Some steps taken :
Starting 2006, over 500 special-care newborn units have been set up in district hospitals,
and about 600,000 admissions take place a year.
Thanks to initiatives such as cash transfer, institutional deliveries have increased since
2006.
Yet, a concomitant reduction in infant mortality has not been achieved; many deliveries still
take place at home, especially in the States of Uttar Pradesh and Bihar.
Steps required:
Need to increase the number of well-trained birth attendants.
Also, the lack of well-trained healthcare workers and well-equipped healthcare centres
has proved to be a barrier to improving newborn survival. There is, hence, an urgent need
to improve the quality of care.
What must be borne in mind is that many of the initiatives taken to save neonates lives would
also help in reducing maternal mortality. With 50,000 deaths, India has the highest maternal
mortality in the world.

15

1.12 PM BRIEFED ON NUCLEAR COMMAND CHAIN

PM has been briefed that sweeping modifications to the command and control structure of
Indias nuclear weapons are urgently needed.
The briefing on Indias most closely held secrets was given by outgoing NSA Shiv Shankar
Menon and Strategic Forces Command chief Vice-Admiral P.S. Cheema.
Naresh Chandra Committee on national security reforms had called for operational control of
the arsenal to be given to a full-time chairman of the joint chiefs of staff committee, or the
CJSOC, a four-star officer with a two-year tenure drawn by rotation from the three armed forces.

India's Nuclear Command and Control structure
At the apex is Nuclear Command Authority (NCA) chaired by PM. It has a Political and
Executive council. The Executive Council, chaired by the NSA gives the inputs to the Political
Council, which authorises a nuclear attack when deemed necessary.
The Political Council consiste of Cabinet Committee on Security (CCS),chaired by the
PM, and advised by the Executive Council. This mechanism was implemented to ensure that
Indian nukes remain firmly in civilian control and that there exists a sophisticated Command
and Control mechanism to prevent their accidental or unauthorised use.
NCA has control of the countrys estimated 90-110 nuclear warheads. In the event of a
crisis, the NCA orders the Strategic Forces Command (SFC) to ready the arsenal and
operationalise its directives.
The SFC is tasked to mate the warheads with air and missile-delivery platforms held by
the three armed forces.
Weak Link
However, the CJSOC position now goes to the senior-most of the three service chiefs, leading to

16

changes in just a few months sometimes which, the Naresh Chandra Committee said in its
classified 2011 report, created a weak link in the command chain.
Committee felt that the CJSOC must not have the operational command of any defence force as
during a nuclear crisis it might become unmanageable for him to command both the SFC and
armed forces.
India is unique in this gap among nuclear-weapons States.
A GoM in Vajpayee govt recommended the appointment of a Chief of Defence Staff, a supreme
military office that exists in other nuclear weapons States. The then PM, Atal Bihari Vajpayee,
however, shelved the idea after resistance from politicians wary of creating a single-point
military leadership as well as the air force.
1.13 INS ARIHANT PROPELS INDIA TO ELITE CLUB

Indias first indigenously built nuclear submarine powered by an 83 MW uranium reactor.
The submarine is capable of lurking effectively undetectable at depth almost indefinitely, as long
as there is food for its 110-man crew.
INS Arihant will get the nuclear missiles it is designed to carry by early 2015.
India will join a club of just six nations with nuclear submarines carrying ballistic missiles. This
would complete Indias Nuclear triad and will provide assured second strike capability.

Nuclear challenge
In March, the DRDO conducted the first test of the K-4 missile capable of delivering a two-
tonne nuclear warhead on targets up to 3,000 kilometres away.
K-4 will ensure that the country has what experts call an assured second-strike capability the
capacity to ensure retaliation even if the rest of the arsenal is wiped out in a surprise first-strike.
India plans to operate three nuclear submarines with four K-4 missiles on each.

A doctrinal headache
For more than a decade now, India has kept warheads separate from the missiles that carry
them, in an effort to prevent accidents or unauthorised use. Similar strategy is followed by
Pakistan.
In times of crisis like the 2001-02 standoff with Pakistan delivery platforms and warheads
have been brought together, but even then they were not mated or joined together for delivery.
But a nuclear submarine is bound to carry warheads as well as missiles. This raises significant
issues of control, which need to be worked out.
Moreover, nuclear submarines can lose contact with their bases and officers must decide if
this has happened because of technical problems, or because their nation has been obliterated.
"In 1961, the Soviet submarine B-59 almost fired a 10-kilotonne warhead at the U.S. Flotilla
believing that war had broken out."
1.14 TAMIL NADU PRESENTS ITS CASE


17

1.15 SUMITRA MAHAJAN TO BE ELECTED SPEAKER TODAY
Veteran BJP parliamentarian Sumitra Mahajan is all set to be elected the Lok Sabha Speaker unopposed
on Friday as no other candidate is in the fray.
From the BJP benches, PM and two senior Cabinet colleagues filed motions proposing Ms. Mahajans
name. Leaders of 16 non-BJP parties filed similar motions in her favour. Any member can propose a
motion to in writing to the chair
The linguistic diversity of India was in full flow with most members preferring to take oath in their mother
tongue. A sizeable number of members, beginning with Ms. Swaraj, opted for Sanskrit, though some
were caught fumbling.
Leader of Opposition
While the Speaker will decide whether there should be an official Leader of Opposition in the Lok Sabha,
following posts are conventionally left for the Opposition:
Deputy Speaker of Lok Sabha
Chairman of Public Accounts Committee (PAC)
Chairman of the Standing Committee on Finance
Sources indicated that the BJP would distribute these posts among the prominent Opposition parties,
including the Congress, AIADMK, TMC and BJD.

Election Of Speaker
Any member may give notice in writing, addressed to the Secretary-General, of a motion that another
member be chosen as the Speaker of the House, and the notice shall be seconded by a third member and
shall be accompanied by a statement by the member whose name is proposed in the notice that he is

18

willing to serve as Speaker, if elected. Provided that a member shall not propose his own name, or second
a motion proposing his own name, or propose or second more than one motion.
Nomination of Panel of Chairmen
The Speaker shall nominate from amongst the members a panel of not more than ten Chairmen, anyone
of whom may preside over the House in the absence of the Speaker and the Deputy Speaker when so
requested by the Speaker or, in his absence, by the Deputy Speaker.
Power of Deputy Speaker or other member presiding
The Deputy Speaker or any other member competent to preside over a sitting of the House under the
Constitution or these rules shall, when so presiding, have the same powers as the Speaker when so
presiding.
1.16 REPORTS ON RETHINK ON SUBRAMANIUM APPOINTMENT
SPECULATIVE: OFFICIAL
For all the details on the issue copying from some other source:
In an unprecedented decision last month, the collegium headed by Chief Justice of India RM
Lodha had suggested names of two previous solicitors general, Gopal Subramaniam and RF
Nariman, to the government for appointment as judges of the Supreme Court.
While this recommendation was awaiting Governments nod, with all the other formalities
fulfilled, Economic Times reported that the Government is now rethinking on the suitability
of Gopal Subramaniams appointment.
Although the Constitution of India provides for appointment through three categories of
persons, namely high court judges, lawyers and academics. However, unlike United
States, the Supreme Court judges in India are seldom appointed from members of the bar.
Usually, a former Chief Justice of a High Court is elevated to the position of a SC judge.
Out of total 210 Supreme Court judges appointment made since 1950, only four appointments
have been done out of the category of High Court judges.
Presently, the appointment of judges to the Supreme Court and the High Court is provided
under Article 124(2) and Article 217(1) of the Constitution of India, 1950. Under these
provisions, the President of India is required to consult with the Chief Justice of
India and in case of High Court appointments, to consult the Governor and the Chief
Justice of the respective High Court. The Supreme Court in the case of Supreme Court
Advocates-on-Record Association v. Union of India construed the word consultation to be
equal to concurrence. The Advisory Opinion of the Supreme Court in 1998 laid down the
process of appointment, whereby the judiciary through its collegiums consisting of the Chief
Justice and two or four senior judges, would propose names to the President, who then
is bound by the decision of the Collegium. This procedure of appointment in effect, confers
upon the judiciary the power to appoint judges of the higher courts.
Hence, senior Supreme Court lawyer and nominated Rajya Sabha member KTS Tulsi was
quoted by ET as saying, The collegium is not known to reconsider its decision in face
of government opposition or disapproval. The government knows that very well.
So the best it can do is not to send back the file and just sit on it. There is no time
limit in which the government has to clear it.

19

As amicus curiae in the Sohrabuddin Sheikh encounter case, the former Solicitor-General Gopal
Subramanium had pointed out several missing links in the charge sheet filed by the Gujarat
Police and had strongly recommended a fresh investigation by the Central Bureau of
Investigation.
Calling the State Police investigation a mockery, he had called for a comprehensive probe to the
highest level.
In 2012, the Supreme Court expressed strong reservations against the trial in the encounter
case proceeding in Gujarat. This was after the CBI, which was by then probing the case,
appealed to the court for an order to shift the trial outside the State.
Amit Shah, the then State Home Minister, was also accused of playing a key role in the
encounter of Sheikh, who was allegedly gunned down by the Gujarat Police on the outskirts of
Ahmedabad in November 2005.
1.17 NARMADA DAM TO BE HIGHER BY 17 M
In a far-reaching decision, the Narmada Control Authority on Thursday gave its nod to Gujarat
for raising the height of the Narmada dam to the full reservoir level of 138.72 metres from the
present 121.92 metres. The gates will be installed in an open position for now, sources told The
Hindu .
The decision was questioned by activists who are concerned about the displacement of people in
the region. Narmada Bachaon Andolan leader Medha Patkar castigated the decision as
political, and called it a breach of every principle of democracy and justice.
1.18 NEW NORMS FOR GRANTING MINORTY TAG
In order to grant minority status to primary schools, the State Cabinet decided on Friday to
reduce the total percentage of students belonging to minority community from 75 to 25 for
implementation of the Right to Education in primary education.
1.19 A PRIME MINISTERIAL FORM OF GOVERNMENT
Author talks about Prime Ministerial form of government.

A centralised structure of governance in which the leader has a strong control over decision-making
would work best for India. A government headed by a dynamic, efficient and strong Prime Minister
who can wield enormous powers by virtue of his personality, is described as a prime ministerial form
of government.

Comparison with some other countries
In Germany, the powerful position of the Chancellor diminishes the role of the cabinet. The
prime ministerial government in Germany is called the Chancellor Democracy. The Chancellor
answers to Parliament and the ministers answer to him/her. But the Indian Prime Minister is
accountable to Parliament, to the people, and to his/her own party. The American president acts
with the help of advisors, who sometimes overshadow the authority of the ministers.


20

At the heart of the Cabinet
Article 74(1) of our Constitution expressly states that the Prime Minister shall be at the head
of the Council of Ministers and should aid and advise the President in the exercise of his
functions.
The Prime Minister is at the heart of the Cabinet. Under the Westminster model of government,
policy formulation and decisions on important matters are the responsibilities of the ministers.
Despite the constitutional provisions of the Westminster model of cabinet government in India,
the Prime Minister is the undisputed chief of the executive.
The office of the Prime Minister first originated in England. William Harcourt calls him luna
inter stellas minores or A moon among lesser stars. Dr. Ambedkar had once said that if
any functionary under the Indian Constitution was to be compared with the U.S. President, he is
the Prime Minister and not the President.
The twin objectives of the Prime Minster appears to be to grant greater autonomy to the States
and have a centralised structure for governing the Union.
In S.R. Bommai vs Union of India (1994), the Supreme Court ruled that the States have an
independent constitutional existence and have as important a role to play in the political, social,
educational and cultural life of the people as the Union does.
1.20 DEMOCRATIC CREDENTIALS ON TEST
Issue: Removal of governors appointed by the previous government on regime change.
Until 2010, the predominant notion was that since a Governor holds office at the
pleasure of the President, subject to a five-year term, she could be removed at any time and for
no reason at the Centres instance. However, in B.P. Singhal vs. Union of India (2010), the
Supreme Court ruled that a Governors removal is justiciable and there should be good, valid
and compelling reasons for such a removal. The power should not be exercised arbitrarily,
capriciously or unreasonably.
The view that a new regime can remove a Governor on the ground that she is out of sync
with the policies and ideology of the party in power at the Centre or that the ruling party has lost
confidence in her, has been rejectedby the Supreme Court.
For too long, the Governor's office has been used to rehabilitate politicians defeated in
elections or as a reward for retired bureaucrats and intelligence officials.
The Sarkaria Commission on Centre-State relations suggested :
1. that a Governor should be someone eminent in some walk of life, one not too intimately
connected with the local politics of the State, and should not be one who has taken too great a
part in politics generally, and particularly in the recent past.
2. a politician from the ruling party at the Centre should not be appointed Governor of a State
run by another party.
1.21 CUTTING THROUGH LEGAL CLUTTER
Issue: the need for periodic review and removal of outdated laws
Government's initiation: Narendra Modi called for the identification of 10 laws from each
ministry that are burdensome and should be repealed
Importance of the issue:

21

>> India has been characterised as one of the most over-regulated countries in the
world.
>> No central database of all laws and regulations exists in the country.
>> Burdensome and unnecessary laws and regulations :
1. impose heavy economic costs
2. provide fertile grounds for corruption
3. contribute to the perpetuation of red-tapism and the classical Indian malaise of the
Inspector Raj.
Author proposes a two step approach:
1. We should realise that this is not just an Indian problem. Other countries have also faced
similar problem and we need to learn from them.
2. Establishment of a statutory nodal body which would:
a. identify laws to be repealed
b. design and implement mandatory process for periodic evaluation, impact
assessment and coordination of various appeals.
Lessons which can be learnt from other countries:
>> UK's one in, two out rule:
when new regulation which imposes increased costs needs to be introduced, the department has
to remove or alter existing regulations to introduce a saving of two pounds for every pound of
cost imposed. This leads to a formal impact assessment of introducing new regulation and of
removing/modifying existing ones.
>> Incorporation of sunset and review clauses:
A sunset clause results in the automatic repeal of a law after a specified period of time unless the
law is expressly extended by Parliament.
A review clause mandates formal periodic review, but does not result in automatic repeal. This
review generally determines whether the policy objects of the law are still relevant, and whether
the law still best serves those objectives.
>> biannual Repeal Day' of Australia:
On the first such day in 2014, the Prime Minister introduced omnibus legislation to repeal more
than 10,000 pieces of law and regulation and save over an estimated $700 million (Australian)
in compliance costs, in one stroke. Such initiative requires:
1. Political will
2. Significant coordination

22

3. Political backing to handle the opposition.
1.22 GOVT. EASES OUT UPA APPOINTEES
Even as the controversy over the Narendra Modi governments plan to ease out Governors plays
out, the government has sent out signals that it would like the heads and members of various
commissions, committees and other government-constituted groups to make way for its
nominees.
There are several national commissions, councils, committees and groups to which
appointments are made by the government those which exist by virtue of a statute and those
which function under the supervision of the Centre. The National Disaster Management
Authority (NDMA) is a statutory body by virtue of the Disaster Management Act, 2005.
1.23 INDEPENDENCE FROM THE GOVERNMENT
A change in the occupancy of 7, Race Course Road, is spelling change in the composition of
statutory bodies in India.

Although meant to function as watchdogs, human rights institutions in India are treated as
subordinate departments with scant regard for their autonomy or statutory character. The
political establishment uses them to accommodate their favourites and this explains the
pressure on members to quit. Such brazen display of power is possible because of a lack of
clear provisions in legislation on selection procedures along with a complete
disregard for procedures for removal of members. In the case of the Commission for
Protection of Child Rights, appointments are increasingly coming under the judicial scanner as
governments have been sluggish in notifying detailed guidelines that can ensure open,
transparent and competitive selections to these important public offices.

In two separate judgments ( Association for Development v. Union of India, 2010 and 2013 ),
the Delhi High Court emphasised the need for fair and transparent appointments and urged the
Ministry of Women and Child Development (MWCD) to develop objective evaluation methods
to appoint members to the NCPCR.

After being judicially rebuked thrice, the MWCD amended the NCPCR rules twice this year (in
March and May) to specify eligibility and selection norms. Only Indian nationals who are
graduates from a recognised university, who have no record of conviction or imprisonment for
an offence or have been removed or dismissed from government service, are eligible. Vacancies
have to be advertised in at least four national dailies and also publicised on the Ministrys
website. The Selection Committee is chaired by the Minister-in-charge, with the Secretary of the
Ministry and one independent expert nominated by the Minister as members. These provisions
may not entirely check political interference and are marginal steps toward streamlining the
process.
In many States, appointments are being challenged for having been made on political grounds
and this should compel State governments to amend their rules and include selection guidelines
in order to insulate appointments from political interference.


23

According to the Paris Principles Relating to Status of National Institutions (1993), which serve
as an international benchmark, independence from the government is one of the most crucial
elements in building effective human rights institutions.
1.24 GUARD AGAINST HASTY REVISION
Editorial argues against diluting provisions of the Land Acquisition Act which was enacted last september
after a long delay. There are demands from the industry to amend the Consent and Compensation
principles enshrined in the act.
Four pillars of the Act:
1) Consent: 80% of the project affected families must agree.
2) Fair Compensation to be decided as per the market rates or circle rates.
3) Social Impact Assessment
4) Compulsory R&R
There are certain exceptions in case of public purpose and national security emergencies.
This act replaced the archaic Land Acquisition Act 1894. Since 1998, attempts were made to change
the Act, but nothing much had come of them. Even the Parliamentary Standing Committee on Rural
Development had in three instances reviewed the proposals for revising the Act and consulted
various stakeholders.
Author argues that attempts to reduce transparency, deny stakeholder participation and impose
unjust compensation cannot pass for efforts to reduce anomalies and improve the efficiency of the
acquisition process. The government should focus on working with the new Act which was legislated
after a long delay and debate, and not amend it in haste. The government can review the legislation
after it has been in force for a reasonable period, and after studying its impact carefully.

24

1.25 MODI GOVT.S FIRST BUDGET ON JULY 10

1.26 SUPPLEMENTING WITHOUT SUPPLANTING
Issue: About 10,000 Indian workers in Iraq of which about 40 have been abducted.
So author ponders upon why so many Indians are trapped there in search of lucrative jobs.
Lucrative jobs propel the youth to go overseas to earn . However, they instead land up as bonded
labourers in the Gulf with no documents and are made to work for a pittance. Most of them have
landed in Iraq from Dubai via Qatar and Kuwait through devious Indian travel agents working
in connivance with employment syndicates operating from Gulf countries.
Emigration Act, 1983
applies only to recruitment and recruiting agents.
Registration and obtaining permits from a State Protector of Emigrants working under a
Protector General of Emigrants under the Ministry of Overseas Indian Affairs are essential
under the Act. Without obtaining any such registration certificate or a valid permit, no
recruiting agent or employer can legally send any person abroad. ==> But in reality there are
very few such registered agencies across India
Act does not identifies or defines travel agent or human smuggling.
It neither recognises the proliferating business of human trading, nor does it seek to
check or punish such activities.
Many claim that they do not need any registration or work permit under the Emigration
Act as they do not recruit people and are therefore not recruiting agents. A travel agent needs no
educational qualification, no experience, no office or business premises and no registration or
regulation under any law.
Punjab was the first and only State in the country to enact a law against human smuggling
The Punjab Prevention of Human Smuggling Act, 2012, with supporting rules of 2013 to

25

check and curb travel agents illegal and fraudulent activities and penalise those involved in
organised human smuggling rackets.
This law has many noteworthy features
it defines the terms human smuggling and travel agent;
it provides for a licensing regime for travel agents and debars persons from operating
without a licence;
it gives power of search, seizure and arrest to magistrates and police officials,
it provides for reasonable compensation to be paid to aggrieved persons by the travel
agent.
It also specifies the punishment for offences and authorises courts to decide whether any
illegally acquired property is liable to be confiscated.
Cheating, the Act says, shall have the same meaning as under the Indian Penal Code.
Dishonest misrepresentation with the intention of wrongful gain or deception, cheating
or allurement is punishable under the Act.
If any travel agent wants to advertise or hold seminars, he will have to notify the
competent authority in writing and give complete details of advertisement of seminars.
The Act does not include recruitment agents who are governed and registered under the
provision of the Emigration Act.
There is an urgent need for Parliament to pass a law against human smuggling. Piecemeal State
legislations with limited ambit of application will restrict the scope to only State borders. A
Central law is therefore the composite solution.
1.27 OBJECTIONS FROM JUDGES FORCE RETHINK ON JUDICIAL
ACCOUNTABILITY BILL
Union Law Minister Ravi Shankar Prasad said that the government was having a rethink on the
Judicial Standards and Accountability Bill in view of objections from judges.
The Bill, pending in Parliament, seeks to lay down enforceable standards of conduct for judges.
It requires judges to declare details of theirs and their family members assets and liabilities
It creates mechanism to allow any person to complain against judges on grounds of
misbehaviour or incapacity.
It would set up a National Judicial Commission providing for appointment and transfer of
judges in the higher judiciary.
When his attention was drawn to a Ghaziabad courts action in summoning Samsung Electronics
Chairman Lee Kun-Hee to appear in a cheating case and asked whether such instances would drive
away investors, Mr. Prasad said the government had asked the Law Commission to examine whether
cases relating to contractual disputes, which were purely civil in nature, could be turned into a
criminal case. He said filing of such criminal cases was also affecting investment climate. He
wanted the Commission to make the Arbitration Act more effective to make India a
hub for international arbitration.

He had asked the Chief Justices and the States to fast-track trial relating to women, children
and elderly people. He said another area of concern was pendency of over 22-lakh cheque

26

bouncing cases and 18-20 lakh cases before the Motor Accidents Claims Tribunals. He
had asked the Chief Justices of High Courts to suggest measures for speedy disposal of these cases.
1.28 JUDGES LIST: GOPAL SUBRAMANIUM OPTS OUT

The Controversy
Collegium headed by CJI recommended names of four candidates for appointment as Judges in
higher judiciary. Government was not in favour of appointing Senior Counsel Gopal Subramanium.
It was anticipated that government would send the file back to the collegium for reconsideration.
However, government segregated his name and went on to appoint rest of the names as Supreme
Court Judges. Controversy is regarding legality of this action. Can government overrule the
recommendation of the Collegium? Isn't this a breach of Judicial independence?
The validity of the collegium system
The collegium system is one where the Chief Justice of India and a forum of four senior-
most judges of the Supreme Court recommend appointments and transfers of judges. However, it
has no place in the Constitution.
Article 124: Deals with appointment of Supreme Court Judges.
Article 124(2): Judges of SC shall be appointed by President. In case of appointment of judges other
that the CJI, Chief Justice of India shall always be consulted.
The system was evolved through Supreme Court judgments in the Three Judges Cases:

27

S.P. Gupta case (December 30, 1981) or the First Judges Case: It declared that the President
is the final authority in appointing the judges and he need not follow the advice of the judges whom
he consults. CONSULTATION IS NOT CONCURRENCE. The ruling gave the Executive primacy over
the Judiciary in judicial appointments for the next 12 years.
Supreme Court Advocates on Record Association versus Union of India or the Second Judges
Case(October 6, 1993): The majority verdict gave back CJIs power over judicial appointments and
transfers. It says the CJI only need to consult two senior-most judges. The role of the CJI is
primal in nature because this being a topic within the judicial family, the Executive cannot have an
equal say in the matter. However, confusion prevails as the CJIs start taking unilateral decisions
without consulting two colleagues. The President is reduced to only an approver.
In Special Reference case of 1998 or the Three Judges Case (October 28, 1998): On a
reference from former President K.R. Narayanan, the Supreme Court lays down that the CJIs
should consult with a plurality of four senior-most Supreme Court judges to form his
opinion on judicial appointments and transfers.
Senior advocate and former Solicitor-General Gopal Subramanium on Wednesday faulted the Centre
for not following the Memorandum of Procedure in appointment of judges by segregating his name
from the list of four names without the active consent of the Supreme Court collegium. He said that
the procedure followed by the government in segregating his name was incorrect as the entire file
ought to have been returned to the collegium.
The 1993 judgment also gave primacy to the judiciary over the executive in appointment of judges. It
had reasoned that should the executive have an equal role and be in divergence of many
a proposal, germs of indiscipline would grow in the judiciary.
So, once the collegium reiterates its recommendation that a particular person has to be appointed
as judge, the government is bound to comply with the collegiums decision as a healthy
convention.

2 PUB AD RELATED
2.1 FOR QUICKER DECISION-MAKING
News: abolishment of the system of having Empowered Groups of Ministers and Groups of
Ministers.
A press note issued by the Prime Ministers Office said this would empower the Ministries,
expedite decision-making and usher in greater accountability.
The mechanism of EGoMs and GoMs had been created by the first NDA government of Atal
Bihari Vajpayee to tackle complex policy issues and resolve the clash of interests that
are inevitable in a democracy, more so in a coalition where inter-ministerial turf wars are harder
to resolve. However, under the UPA it often became an instrument to delay decisions.
While this decision should restore coherence in the functioning of the government, especially as
the BJPs decisive electoral mandate will ensure it is not hampered by difficult coalition
partners, Mr. Modi must guard against administration by fiat. The Congress, citing the
PMO press release that has asked all Ministers who have difficulties in deciding issues relating

28

to their own Ministry to refer them to the PMO and the Cabinet Secretariat for resolution, has
cautioned that this should not lead to an unhealthy centralisation of power and an
autocratic regime in the future. An omniscient super-PMO must not destroy the
Cabinet system that envisages decisions through consensus.
2.2 MODI DISSOLVES 4 CABINET PANELS
The Prime Minister Narendra Modi dissolved four Standing Committees of the Cabinet.
Cabinet Secretary will handle functions of Committee on Management of Natural
Calamities.
Issues pertaining to following committees will come under Cabinet Committee on Economic
Affairs.
Cabinet Committee on Prices
Cabinet Committee on World Trade Organisation Matters
Cabinet Committee on Unique Identification Authority of India(UIDAI)
The Prime Minister will be re-constituting the Appointments Committee of the Cabinet, the
Cabinet Committee on Economic Affairs, the Cabinet Committee on Parliamentary Affairs, the
Cabinet Committee on Political Affairs and the Cabinet Committee on Security.
2.3 LACK OF REAL TIME DATA TO IMPACT POLICY MAKING

The Statistics Ministry has been left out of the high-priority economic policy group that
includes the Finance and Infrastructure Ministries.

The exclusion of the Statistics Ministry from the economic policy group assumes significance in
view of the challenges lack of reliable data pose to economic policy-making. The importance of
such data is greater given the Governments focus on the economys revival.

The Statistics Ministry oversees the major sources for economic data such as the Central
Statistics Office (CSO) and the National Sample Survey Organisation (NSSO).

Unreliable data on employment

29

India does not have reliable data on jobs. Unlike in developed countries such as the United
States where joblessness data comes in every month, the NSSO conducts surveys on
employment only once every five years. For the intervening years, economic policy makers use
the same old data.

Long lags
Problems with economic data include long lags in making baskets truly representative such as in
the case of the wholesale price index (WPI), which does not include services even though the
rises in the cost of health services and education are among the biggest components on
household budgets.

Former Prime Minister Manmohan Singh had appointed several committees for
recommendations on economy data. A committee headed by EAC chairman C. Rangarajan is
expected to submit a report soon on issues pertaining to poverty estimates.

Economic data has to be reliably sourced, accurate and as close to real time as possible for policy
responses to be meaningful and then for validation of outcomes of the policy decisions taken.
The Modi government will find it worthwhile to invest in upgrading the data machinery.

2.4 PRICING PUBLIC TRANSPORT
Issue: Row over fares of newly inaugurated Mumbai Metro between the State government and
Reliance Infrastructure, the latter holding the majority share in this public-private partnership
project.
Some details : Just before the service was launched, Reliance Infrastructure steeply revised the
fares and increased the range of fares, originally fixed at Rs.9 to Rs.13, to Rs.10 to Rs.40. The
government has opposed this since it is higher than the pre-agreed fare and decided without any
consultation. Reliance Infrastructure has defended the action, stating that under the Metro
Railways Act it has the authority to fix fares. The increase in the project cost from Rs.2,356 crore
to Rs.4,321 crore and higher operational costs had warranted the change, it asserted.
Root cause: Almost every metro rail project in the country has overshot the projected cost.
Companies often tend to underestimate the cost and inflate user-figures to convince funding
agencies that travel by metro rail would be relatively inexpensive. Later, they complain of cost
overruns and demand higher allocations. Ticket prices are then raised and the travelling public
bears the burden of such poor planning.
underestimation of project cost and inflated user-figures ---> project approved ---
> cost overruns ---> ticket prices raised ---> ultimately public bears the burden of
poor planning
Why the issue is important?
1. Fares should be affordable, particularly to the large number of lower-income group users, and
should factor in the less visible benefits that accrue from the service.

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2. Increasing the use of public transport relieves road congestion, reduces pollution and cuts fuel
consumption.
Some solutions:
1. periodical review of fares, the process should be transparent and fair more so when the
private sector operates public transport.
2. Alternative financing options must be explored. Many countries have mobilised funds by
imposing additional charges for using private cars, which pollute more and occupy road space
disproportionately.
2.5 LOKPAL IS NO MAGIC BULLET
In a recent poll, 96 per cent of Indians said corruption was holding their country back; 92 per
cent thought it had worsened in the past five years. Most Indians have come to believe that the
law for the common man does not apply to politicians and the influential.
In this context, all political parties seem to have coalesced around the appointment of a Lokpal,
as if it were the single magic bullet to conquer corruption.
Author argues that Lokpal initiative will by itself not conquer corruption.
India already has a number of institutions of governance that have the mandate and the ability
to deal with corruption. This list includes the Central Bureau of Investigation, the Central
Vigilance Commission, the Comptroller and Auditor General of India, courts, information
commissions, and Lokayuktas at the State level. These established institutions have not been
able to make a dent in corruption.
All these institutions attack those visibly corrupt, but not the three root drivers of corruption.
1. Complex rules and regulations
How it causes corruption?
They burden citizens and are difficult or even impossible to comply with. These provide fertile
ground for corruption and also encourage the use of nefarious means to fix problems
contacts, bribes, etc.
What needs to be done?
Simplifying these rules,
making decision-making processes transparent
giving the government a limited role will minimise opportunities for the corrupt.

This can be done using information technology. The Narendra Modi-led government must
accelerate the use of e-services.
2. Enormous power to public officials at different levels
How it causes corruption:

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This, in their minds, reinforces their role as rulers rather than public servants. These powers
combined with the insatiable demands of corrupt political leaders and complex laws and
regulations provide them ample opportunities to make personal gains in return for unethical
favours.
What has been done:
Modi government has selected public servants with a relatively clean past to occupy
several top positions.
The Prime Minister has also galvanised officials into taking quick decisions without
fear or favour. Such an ethos will trickle down to lower levels where most interactions with
citizens take place.
However, the government must also protect honest officials from the risk of
harassment by overzealous investigative agencies. The Lokpal should not become such an
agency.Ensuring accountability

3. Highly centralised form of government
The more distant the government is from citizens, the more difficult it is to hold the former
accountable. Contrary to the intent of our founding fathers, India continues to have a highly
centralised form of government. Local governments and institutions enjoy virtually no
autonomy of action. Neither the election process nor the grievance system has successfully
addressed this problem.
Solutions:
Bringing decision-making closer to citizens (electronically or physically) and balancing it
with adequate empowerment of individuals and community groups to hold decision-makers
accountable
limited and focussed government, decentralisation of powers to local governments and
communities, greater transparency, more right to information and empowerment of citizens and
citizen groups.
Good leadership that is willing to subject itself to public scrutiny will set a good example.

It is not enough if the Modi government establishes the Lokpal. It should address the issues
based on which people are demanding a Lokpal. Merely adding to the strength of investigative
agencies will increase the size of the government but not necessarily improve governance. The
slogan adopted by the Prime Minister and his party, less government and more governance, is
on the mark.
2.6 NGOS STANCE ON DEVELOPMENT PROJECTS TO HIT GROWTH: IB
The IB report Impact of NGOs on Development' :
The opposition to several development projects in the country by a significant number of
non-governmental organisations (NGOs), including Greenpeace, will have a negative impact
on the economic growth by two to three per cent.
NGOs and their international donors are also planning to target many fresh economic
development projects including those in Gujarat.

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The report alleged that the NGOs work for stalling development projects along with
agitations against nuclear power plants, uranium mines, coal-fired power plants and hydel
projects.
In a section related to protests against coal mines and coal-fired power projects, the
report alleged Greenpeace expanded its activities to oppose coal-fired power plants and coal
mining and received Rs. 45 crore from abroad in the last seven years.
2.7 ANSWERING TO LAW, NOT TO CAESAR
Issue: The recent Intelligence Bureau report on the Concerted efforts of select foreign funded
NGOs to take down Indian development projects casts serious aspersions on some of our best
NGOs and distinguished citizens. The report also alleges that these NGOs would have a negative
impact on GDP growth by 2-3 per cent by stalling, through agitation, development projects such
as nuclear power plants, uranium mines, coal-fired power plants, GMOs, projects by POSCO and
Vedanta, hydel projects, and extractive industries in the north-east.
Authors concern is dysfunctional role of the intelligence services.
In the decades after Independence, successive Prime Ministers turned the Intelligence Bureau
into a kind of private detective service for the government, charging it with surveilling
everything from political opponents to routine economic activity.
The Intelligence Bureau often with little domain competence weighs in on everything from
the appointment of judges to the credentials of business houses.
The Intelligence Bureau is charged with the defence of the republic, not with the defence of the
policies and interests of whoever is in office.

2.8 THE IMPORTANCE OF DISSENT IN DEMOCRACY
Some points for NGO issue:
In a democracy, non-governmental organisations provide a platform to civil society to
dissent in an informed and reasoned manner. They provide a mechanism for the ruled to keep a
check on the rulers.
There are of course NGOs that engage in illegal or objectionable activities using Indian
and/or foreign funds, much like how 34 per cent of newly elected MPs in Parliament have
criminal cases against them. Just as the majority of MPs do not have cases against them, a
large proportion of our NGOs operate transparently and legally.
The power that NGOs wield has increased concurrently with the increased demand for
real and operational democracy. If it were not for our NGOs, we would not have the system of
obligatory declaration of assets, now required by all those aspiring to be MPs. We would also
not have the the Right to Information Act or the Protection of Plant Varieties and Farmers
Rights Act.
What is wrong in receiving funds from well-meaning individuals or bona fide
organisations abroad who want to help a worthwhile cause in India? Doesnt the Indian
government, for example, help worthwhile causes in Afghanistan?

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Let us look at how specious and ridiculous the arguments in the IB report are. There is
massive opposition to nuclear power plants around the world, and many countries such as
Japan and Germany have decided to abrogate them in a time-bound fashion. In our own
country, many highly distinguished individuals such as a former Chairman of the Atomic Energy
Regulatory Board, a former Chairman of the Atomic Energy Commission, and several former
Secretaries to the Government of India, who are knowledgeable in the area, have opposed
further investment in nuclear energy. None of them has any connection with Greenpeace, nor
do they have any vested interest. They have provided valid reasons for their views.
Let us take another example coal mining for coal-fired thermal power plants. Such
mining requires destroying Indias forest wealth and the livelihood of tribals. What about our
national commitment since Independence to have over 30 per cent of our area under forest
cover? Why should we invest so heavily in nuclear, thermal or large hydel power plants, none of
which will be environment or people-friendly, when we have far better alternatives staring us in
our face: solar power, wind power, micro and mini hydel, biomass and biogas, lot of which can
be produced and used locally? Isnt it strange that our country does not have even one single
institute totally devoted to research on solar power? We want to spend enormous amounts of
money to buy nuclear reactors from the U.S. but we do not want to learn lessons on solar power
from Germany. What is then wrong with NGOs in our country such as Greenpeace for taking a
courageous stand against nuclear, coal-fired thermal or large hydel power plants?
The ignorance of the Bureau with regard to the Bt-cotton story in India, and of the
problems with GM crops, is appalling. For example, Bt-cotton has totally failed in rain-fed areas
that account for nearly two-thirds of cotton-growing area in the country. Even if, as the IB claims,
there is a negative impact on GDP because of opposition to certain projects, so what? Our
experience of high growth rate in some recent years has by no means been satisfactory, for it
has barely touched the bottom 80 per cent of our population and has vastly increased the
economic gap between the top 20 and bottom 80 per cent.
2.9 INDIVIDUALS AND INSTITUTIONS
The world over, in fields ranging from politics to business and sports to media, the emphasis on
personalities as a substitute for institutions is an evident trend. Strong personalities can
strengthen institutions that they represent, but whether they can be a replacement for
institutions is a question that comes up occasionally. The emergence of Narendra Modi as a
strong Prime Minister, who won the election on the slogan Is baar Modi Sarkar (its a Modi
government this time) brings this question to the fore once again.

Mr. Modis emergence takes place against the backdrop of the awful weakening of the institution
of the Prime Minister. His predecessor ran a government in which ministers ran their own
environment and telecom policy.

Therefore, the case of re-establishing prime ministerial authority cannot be overstated and Mr.
Modi has made a good beginning. In a stern message to his ministerial colleagues, he has barred
them from handpicking private secretaries as they please. Personal staff and ministers often
form a cabal that ruins norms of good governance by extending networks based on caste,
linguistic or financially vested interests across various arms of the government and striking at
the root of this rot has been a long overdue reform. The dubious role played by some private
secretaries of ministers in the sensational scams of the United Progressive Alliance (UPA)

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regime is still fresh. But this cannot and must not be an excuse for undermining another
institution, that is the Council of Ministers.

The Modi government has pushed back on the autonomy of another crucial institution, the
judiciary, by rejecting one name it recommended for appointment as a Supreme Court judge.
The merits of the recommendation and the rejection apart indeed there is an ongoing debate
on the desirability of judges appointing themselves the governments refusal to accept the
Supreme Court collegiums unanimous recommendation does not bode well for the institutional
prestige of the judiciary. Available indications are that the judiciary is likely to cede to the
governments line rather than assert itself.

Indications are that this governments engagement with the media is going to be limited. There
is no disputing the fact that practices such as privileged access in exchange for motivated
coverage and journalists doubling up as political and corporate dealmakers have thoroughly
corrupted the terms of engagement between the media and the government. But is that good
enough reason for the government to make communication a one-sided affair in which
announcements will come on the website, with no scope for questioning or explaining?
The authority of some other institutions such as the Central Vigilance Commission (CVC) and
the future Lok Pal is going to be weakened for another reason. As there is no designated Leader
of the Opposition, the decisions on appointments to these bodies will be taken without the
Opposition playing any role.
The checks and balances offered by institutions working within the constitutional scheme is the
bedrock of democracy. The Council of Ministers is collectively accountable to Parliament; then
there is the judiciary and other autonomous bodies such as the Comptroller and Auditor General
(CAG), the CVC, and outside government, there are political parties, the media and civil society
organisations.
The concept of checks and balances has become dysfunctional in recent years due to the
aggressive overreach of some institutions and the corresponding caving in of some others,
depending on personalities at the helm. While the authority and majesty of the office of the
Prime Minister has to be asserted, and in fact, reclaimed from usurpers such as the CAG, the
autonomy and prestige of other institutions must not be diminished in the process.

3 IR/DIPLOMACY
3.1 CHINA WARY OF JAPANS PROACTIVE ROLE
Japans moves to take a more proactive security role in Asia, outlined by Prime Minister
Shinzo Abes offer on Friday to supply Vietnam and the Philippines with naval patrol vessels,
has brought a wary response from China, which is embroiled in maritime disputes with the three
countries.
Mr. Abe, speaking at the Shangri-La Dialogue in Singapore on Friday, a key regional security
meet attended by defence ministers and military officials from the region as well as the United
States, outlined a new and ambitious vision for Japan to play an even greater and more
proactive role than it has until now in Asia.

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3.2 CHINA SAYS U.S., JAPAN SINGING NOTES IN CHORUS
WAR OF WORDS between US and China at Shangri-La Dialogue, Singapore
U.S. Defence Secretary Chuck Hagel said China had, undertaken destabilising, unilateral
actions asserting its claims in the South China Sea
Japanese PM Shinzo Abe also hit out at China over the disputes. He decided to
Support Vietnam and the Philippines on their territorial disputes with China
To supply naval patrol vessels to both countries
To boost its security presence in the region
They were corroborating and colluding and using the opportunities to speak first at the
Shangri-La Dialogue to take the initiative to provoke and challenge China, he told the meeting.

A top Chinese Army General on Sunday slammed the US and Japan for provoking China.
Gyaan
Shangri-La Dialogue:
The Shangri-La Dialogue (SLD) is a "Track One" inter-governmental security forum held
annually by an independent think tank, the International Institute for Strategic Studies (IISS)
which is attended by defense ministers, permanent heads of ministries and military chiefs of 28
Asia-Pacific states.
The summit serves to cultivate a sense of community among the most important policymakers
in the defence and security community in the region.
Government delegations have made the best out of the meeting by holding bilateral meetings
with other delegations on the sidelines of the conference.
3.3 JAPAN, CHINA IN FRESH SPAT
Japan on Thursday summoned the Chinese ambassador to complain about fighter jets flying
dangerously close to two of its military planes over the East China Sea, officials said.
In the latest up-close confrontation between the two sides, Tokyo says two Chinese SU-27 jets
flew just 30 metres (100 feet) away from its aircraft in a spot where the two countries air
defence zones overlap.
3.4 US SEEKS TO CUT POWER PLANT CARBON BY 30 P.C
The Obama administration unveiled a plan on to cut carbon dioxide emissions from
power plants by nearly a third over the next 15 years.
It is a centerpiece of Obamas plans to tackle climate change and aims to give the United
States more leverage to prod other countries to act when negotiations on a new
international treaty resume next year.

The policy change carries significant political and legal risks, as it will further diminish the
role of coal in U.S. electrical production.

But the proposal sets off a complex regulatory process, steeped in politics, in which the 50
states will each determine how to meet customized targets set by the

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Environmental Protection Agency. The plan relies heavily on governors agreeing to
develop plans to meet the federal standard.
3.5 OBAMAS CLIMATE PLAN: RHETORIC VS. REALITY
Obamas 30 per cent target by 2030 is misleading. It overstates the size of the
proposed cut, because the reduction is compared to 2005 emissions . Since 2005, there has
already been a big shift away from coal; this shrinks the need for added cuts by about half.
None of the cuts will matter much without technological breakthroughs. Emission
increases from China and other developing countries will swamp cuts the United States might
make. Poor countries will not abstain from using more fossil fuels that are needed to produce
electricity and reduce poverty. Unless technologies can reconcile more energy with
fewer (or no) greenhouse emissions, the crusade against climate change will
continue to fail.
The best approach is to tax carbon emissions. If you want less of something, tax it.
Stimulate competition to find ways to conserve energy or produce it without greenhouse gases.
An energy tax would also help close U.S. budget deficits.
3.6 SRI LANKA ARRESTS 33 INDIAN FISHERMEN
A day after the 45-day ban on trawling in Tamil Nadu ended, 33 Indian fishermen were arrested
by the Sri Lankan Navy on charges of poaching.
It is the first instance of Indian fishermen allegedly engaging in bottom-trawling on the Sri
Lankan side of the International Maritime Boundary Line (IMBL) after the second round of
talks between fishermen of both countries.
Leaders of fishermen from the two countries could not reach a consensus at the May 12 meeting
in Colombo.
Although Indian fishermen agreed to stop using pair-trawling and purse seine nets
which are banned in Sri Lanka they asked for three years time to phase out trawling.
Sri Lankan fishermen say that allowing bottom-trawling any longer would further endanger
marine resources, causing permanent damage.
The Palk Bay conflict has been a challenging issue in bilateral relations. At the recent meeting
between Prime Minister Narendra MOdi Manmohan Singh and President Mahinda Rajapaksa.
Gyaan
Bottom Trawling
Bottom trawling is trawling (towing a trawl, which is a fishing net) along the sea floor. It is also
referred to as "dragging". The scientific community divides bottom trawling into benthic
trawling and demersal trawling.
Benthic trawling is towing a net at the very bottom of the ocean and demersal trawling is towing
a net just above the benthic zone. Bottom trawling can be contrasted with midwater trawling
(also known as pelagic trawling), where a net is towed higher in the water column. Midwater
trawling catches pelagic fish such as anchovies, tuna, and mackerel, whereas bottom trawling
targets both bottom-living fish (groundfish) and semi-pelagic species such as cod, squid,
shrimp, and rockfish. Trawling is done by a trawler, which can be a small open boat with only 30
hp (22 kW) or a large factory trawler with 10,000 hp (7,500 kW). Bottom trawling can be carried
out by one trawler or by two trawlers fishing cooperatively (pair trawling).

37

for source click here
Seine fishing
Seine fishing (or seine-haul fishing) is a method of fishing that employs a seine or dragnet. A
seine is a fishing net that hangs vertically in the water with its bottom edge held down by
weights and its top edge buoyed by floats. Seine nets can be deployed from the shore as a beach
seine, or from a boat.
Boats deploying seine nets are known as seiners. There are two main types of seine net deployed
from seiners: purse seines and Danish seines.
A common type of seine is a purse seine, named such because along the bottom are a number
of rings. A line (referred to as a purse-line) passes through all the rings, and when pulled, draws
the rings close to one another, preventing the fish from "sounding", or swimming down to
escape the net. This operation is similar to a traditional style purse, which has a drawstring. The
purse seine is a preferred technique for capturing fish species which school, or aggregate, close
to the surface: such as sardines, mackerel, anchovies, herring, certain species of tuna
(schooling); and salmon soon before they swim up rivers and streams to spawn (aggregation).
Boats equipped with purse seines are called purse seiners.
Use of Purse seines are regulated by many countries. In Sri Lanka, using this type of nets within
a radius of 7 kilometers offshore is illegal. However it can be used in deep sea after obtaining
permission from authorities. Purse seine fishing can have negative impacts on fish stocks
because it can involve the bycatch of non-target species and it can put too much pressure on fish
stocks.

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3.7 NEW REALITIES IN THE WORLD ORDER
Author points out massive shifts the world has undergone while India was caught up in election
fever and what India has a role in it via the BRICS summit:
1. Ukraine crisis aka Cold War 2.0
Russian President Vladimir Putin gained an upper hand in the crisis.
U.N., U.S. and European Union officials: Mr. Putins actions hold a dangerous precedent
for India too, especially when it comes to possible designs by China on parts of Arunachal
Pradesh.
Conversely, the actions of western diplomats and U.S. non-governmental organisations
in Ukraine, who openly supported anti-Russian protesters to oust their government while
attempting to pull Ukraine into the EU, is also a dangerous precedent for the world.
Mr. Modi will face his first look at all these new realities in mid-July, when he meets Mr.
Putin at the BRICS summit in Brazil, and when the world, especially the U.S. and EU countries,
will be watching his statements.
2. South China Sea
The BRICS summit will also be an occasion for Mr. Modi to meet Chinese President Xi Jinping,
and set the course for India-China ties.
Chinas actions in the South China Sea in the past few months will be, like Crimea, another
talking point in Brazil.
Modi has old relationships with Chinese leadership and he has also built strong ties with Shinzo
Abe. It will be important to see how he balances Japans concerns with his own old relationship
with the Chinese leadership.
3. West Asia
Perhaps the most significant discussion at the BRICS summit, however, will be over West Asia,
and nuclear talks between Iran and six world powers (the U.S., the United Kingdom, France,

39

Germany, China and Russia) that hope to reach some conclusion in July. If the talks succeed, it
could rewrite history, given the far-reaching consequences on the oil economy, nuclear energy
and Arab-Persian rivalry in a region that houses and employs six million Indians. The talks so
far have been ignored in the din of the election, but repercussions, including the anger of U.S.
allies, Israel and Saudi Arabia, will have an impact on South Asia as well.
3.8 OFFERING AN ALTERNATIVE NARRATIVE
According to the author there is a large and growing segment of opinion in Pakistan that
questions the security state paradigm and realises that the threat to Pakistan is internal. They
may not agree with us on everything, but are conscious of the need to build a stable relationship
with India for a better future for themselves.
The above realities oblige us to contain and counter the threats emanating from Pakistan.
However, an Indian response which tars all the Pakistani people with the same brush and is
characterised by a threatening rhetoric and an absence of or a frequent interruption of dialogue
in response to every provocation big or small plays into the hands of the security state
proponents. We must, therefore, offer an alternative narrative that includes advantages
of building constructive linkages with India.
We need a two-track policy: contain and counter the dangerous; engage the
constructive.
As the largest economy in South Asia, it is our responsibility to give our neighbours a stake in
our economic success to build a zone of shared prosperity in the region. We have taken
significant steps in this direction under South Asian Free Trade Area (Safta) vis--vis other
neighbours, but have not been able to do so in relation to Pakistan because of its discriminatory
trade regime vis--vis India. In 2012, Pakistan significantly expanded the number of items
importable from India, barring a negative list of 1200. However, it failed to deliver on its
promise to do away with the negative list.
The aforementioned factors necessitate three essential elements of our policy.
First, those in Pakistan who seek to undermine Indias stability, territorial integrity and
interests, should be left in no doubt that such attempts would be thwarted with single-minded
determination. More than tough language, this requires quiet and firm action on the ground to
defend ourselves and deter errant behaviour.
Second, we should be prepared to give generous preferential market access
under Safta to products of export interest to Pakistan after it eliminates its India-specific
negative list to give us a Most Favoured Nation (MFN) status, which is our due under the WTO
regulations. This was the essence of the trade road map agreed to in September 2012. We should
also offer cooperation in other areas such as health, education and energy.
Third, the other outstanding issues need to be kept under discussion to find
mutually acceptable solutions. For want of a better alternative, the eight-track template
instituted in June 1997 has been adopted each time we have resumed dialogue. It covers
discussions at Secretary-level on peace and security, including CBMs, Jammu and Kashmir,
terrorism, Siachen and Sir Creek.

There has been talk of evolving a revised template in the light of developments since 1997.
However, because of differing perceptions, such revision in terms of level or subjects of

40

discussion would be a tricky exercise. Talks below Secretary-level would be meaningless and
those above that would needlessly raise expectations.

3.9 AN OPPORTUNITY TO SEAL A DEAL WITH PAKISTAN
According to the author India has since 1971 sought for a "composite" dialogue to discuss all
issue with Pakistan whereas Pakistan wants discussion on a single issue - Kashmir.
For over a decade now, the Inter-Services Intelligence (ISI) has used terrorism against India for
two entirely different purposes.
The first is to derail any initiative that might lead to the peace that they dread; the attack on
our Embassy in Kabul in 2008, on Mumbai later that year, on the Consulate in Herat before Mr. Sharif
flew in for the inauguration, were all launched to make it hard for any Indian government to reach out
to Pakistan.
The second is to derail Indias growth by targeting the cities and centres that fuel it because an
economically strong India would be militarily more powerful, increasing the asymmetry with Pakistan.

Therefore, a settlement of Kashmir will not necessarily mean the end of terrorism.
According to author if Mr. Modi takes India back to pre-2009 rates of growth, terror, driven by
envy, will return unless Pakistans civilian government gets and is given the strength to stop it.
This strength will come if there is an honourable settlement on Kashmir.
Assuming that it will take a couple of years for our growth to resume, there is a window of
opportunity now to move forward. It is also a window that might close, for other reasons,
around the same time. Reasons being:
America to move out it forces out of Afghanistan --> Pakistan armies attention turned towards it
--> regime in Kabul will not withstand this flow of jihadis from Pakistan --> after regime's fall
surplus jihadis will return home where that won't be wanted --> so they will be sent eastwards
by ISI.
So by the time this all happens we have a window of opportunity to have in place
understandings that will give the government in Islamabad every incentive, and the leverage, to
rein the ISI in.
We should therefore try to resolve problems now, starting with Kashmir, on which there is
nothing left to negotiate. Over several years, very skilful interlocutors in the back channel have
negotiated an agreement that represents the maximum that either country can concede.
We should settle Siachen and Sir Creek as well.
On Siachen, our army now claims a strategic advantage in staying on the Saltoro Ridge, since it
is a salient between Pakistan Occupied Kashmir (PoK) and the Shaksgam Valley, which Pakistan
ceded to China.
In this day and age, there are enough means to monitor the large-scale movement of troops over
difficult terrain which would be essential if Pakistan tried to reoccupy the glacier or the ridge.

41

Sir Creek is even more easily settled, since we now have agreed maps, jointly drawn up. Political
decisions are needed on the concessions each side is prepared to make on the final alignment,
which will in turn determine the shape of the maritime boundary. Settling that would bring us
two important benefits, one human, the other economic:
firstly, our fishermen, all from Prime Minister Modis State, who stray over a notional boundary,
would have a clear idea of what is off bounds; the numbers rotting away in Pakistani jails would
plummet.
The economic gain would be that with the maritime boundary settled, the claim we have lodged
with the U.N. Commission on the Limits of the Continental Shelf would be much more easily accepted.
Pakistan does not have the financial or technological means to explore the shelf and the seabed, but we
do.

3.10 THE PRESIDENT OTHERS WANT
Abdel Fattah el-Sisi, the former general who was First Deputy Prime Minister and Minister of
Defence in the junta which overthrew Egypts elected President Mohamed Morsy in July 2013,
has won the countrys latest presidential election, gaining 95 per cent of the vote to defeat his
sole rival, Hamdeen Sabahi. Approximately 47 per cent of the 54 million voters turned out, and
intimidation as well as gross inequalities in resources and media coverage marred the process.
All the countries concerned, including Israel, value stability above democracy in
Egypt, mainly because democracy would enable the Egyptian public to call for a fair and just
Israel-Palestine settlement and could revive demands for democracy in West Asia. It appears
that neither the worlds major powers nor the main regional ones are prepared to allow Egypts
84 million people the right to choose their own leaders freely.
The new President is highly unlikely to make any significant policy changes.
The blockade of the Gaza Strip will almost certainly continue, depriving Gazans of
essential supplies.
Secondly, the relevant global and regional powers can be expected not to criticise Cairos
main policies or its domestic repression.
1. Despite a current Senate freeze, the United States government wants to continue
its $1.5 billion annual aid to Egypt, most of which goes on arms purchases from U.S.
firms;
2. for their part, Saudi Arabia, the United Arab Emirates and Kuwait, all of which
are very hostile to the Brotherhood, have donated over $12 billion in recent years.
3.11 G7 LEADERS TO DISCUSS UKRAINE CRISIS
The leaders of the G7 will this week deliberate their next steps in response to the enduring
unrest in Ukraine, after sidelining Russia for its role in the crisis. G7 includes US, Britain,
Canada, France, Germany, Italy and Japan.
These nations decided to meet in the Belgian capital Brussels after snubbing a G8 summit that
was to be hosted by Russia this month. EU will also be represented.

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G7 stand so far:
They accused Russia of fomenting separatist unrest in the former Soviet country,
including through the annexation of its Crimean peninsula.
In April, the G7 leaders had agreed to proceed with sanctions against Moscow over its
actions in Ukraine.
They want Russia to use its influence on the Ukraine separatists to end the violence
and engage in dialogue with the newly elected and legitimate Ukrainian President.
EU stand on the crisis:
EU leaders urged Russia to continue withdrawing troops from the Ukrainian border and
to pressure separatists into deescalation.
The EU has so far steered clear of economic sanctions against Moscow amid concerns
over repercussions for the European economy as many European countries have strong trade
and business ties with Russia.
But Germanys Chancellor has warned, If there are further destabilization actions by
Russia, more sanctions are not impossible.
It has, however, prepared three scenarios that could be deployed if needed, ranging from
lowintensity economic sanctions affecting items such as luxury goods to tougher measures
such as a ban on oil and gas imports.
EU fears that escalating tensions may lead Moscow to cut off gas deliveries passing
through Ukraine on their way to Europe, which depends heavily on Russian Natural gas. Six of
the blocs 28 countries Bulgaria, Estonia, Finland, Latvia, Lithuania and Slovakia depend
solely on Russia.
G7 energy ministers agreed to work on a long-term strategy to wean Europe off its dependency
on Russian gas supplies. Talks on economic, energy, climate and development issues are
expected to follow. The Iran nuclear negotiations are also likely to be on the agenda.
3.12 U.S. SECURITY PLAN FOR EASTERN EUROPE
President Barack Obama on Tuesday unveiled a $1 billion U.S. security plan for eastern Europe
aimed at allaying fears over a resurgent Kremlin and the escalating pro-Russian uprising in ex-
Soviet Ukraine.
Eastern European countries fear that the Kremlin will reassert its Cold War-era grip over a large
swathe of Europe following its seizure of Ukraines Crimea peninsula in March.
To allay these fears, Obama said, Our commitment to Polands security as well as the security of
our allies in central and eastern Europe is a cornerstone of our own security and it is
sacrosanct,
European Reassurance Initiative

The U.S. President then proposed an initiative of up to $1 billion to finance extra U.S. troop and
military deployments to new allies in eastern Europe.
The historic plan that must be approved by Congress would also build the capacity of non-
NATO states such as Ukraine and Georgia to work with the United States and the Western
alliance and build their own defences.


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3.13 IN A HOLE, AND STILL DIGGING
European Reassurance Initiative: United States President Barack Obamas announcement
of $1 billion in military aid to selected European NATO countries The money will
cover the dispatch of more equipment to Poland, and an increased frequency of U.S.
troop-rotation there.
It will also involve more air patrols over the Baltic Sea and more intensive naval
operations in the northern Black Sea.

It is meant particularly to allay Polish, Estonian, Latvian, and Lithuanian fears about what those
countries perceive as Russian expansionism following Moscows annexation of Ukraines Crimea
province in March 2014. Mr. Obama has described the security of Poland and the three Baltic
states as sacrosanct, but has said nothing about permanent U.S. bases in the countries
concerned. The plan is contemporaneous with the European Unions intention to expedite
association agreements with other former Soviet republics, such as Moldova and Georgia, for
finalisation later in June rather than at the end of this year.
Inevitably, Mr. Obamas move intensifies tensions throughout Europe.
Russia: On June 2, Russias ambassador to NATO, Alexander Grushko, reportedly told the
alliances foreign ministers at a meeting in Brussels that their plans could revive the Cold
War and the arms race.
Secondly, European NATO members are divided
Polish Foreign Minister Radek Sikorski complained that Washingtons plans amount
only to virtual deployments but countries such as Germany, France, and the United
Kingdom have strong commercial and energy-related links with Russia and may resist more
confrontational measures. EU agreements might well be no more than a way for the
bloc to import cheap labour and get easy access for EU businesses.
Furthermore, NATO has its own agenda; with its Afghan operations winding down, its
commanders may well be desperate for a new role, as they were when the Soviet Union
collapsed in 1991.

3.14 ABBAS SWEARS IN PALESTINIAN UNITY GOVERNMENT
For the first time in seven years, the Palestinians have one government in charge of both the
West Bank and the Gaza Strip. President Mahmoud Abbas in Ramallah swore in a long-awaited
government of national unity headed by Prime Minister Rami Hamdallah. Abbas has said the
new unity government, will reject violence, recognise Israel and abide by all existing
agreements.

But, Israel is staunchly against the deal as the unity government includes the
voilent and military faction Hamas. Israels Prime Minister Benjamin Netanyahu
warned that the World governments should not rush to approve the "new Palestinian cabinet".

In a move which further underscored Israel's opposition to the new government, three Gazans

44

who were to travel to the West Bank to be sworn in as ministers were blocked from leaving the
coastal enclave.
3.15 MODI-OBAMA TALKS IN SEPTEMBER
PM has accepted US invitation to hold a bilateral summit. The invitation itself is a departure
from US protocols for a second year in Row. U.S. officials went out of the way to suggest dates
around the UNGA but the exact date of the meeting is still being worked out.

For years, the U.S. officials have discouraged bilateral visits by world leaders dove-tailed with
the U.N. General Assembly session in September. Last year they made a rare exception for
Prime Minister Manmohan Singh, who had hoped to meet Mr. Obama in his last visit to the U.S.
as PM.

This year, a very different circumstance has necessitated the U.S. exception being repeated for
Prime Minister Mr. Modi. The last year has seen a low in Indo-U.S relations that rivals cold-war
era ties over the Khobragade affair.

Also, decisions are pending on several deals, including on FDI in retail, nuclear business,
and defence purchases, while India's push for H1B visas, and outsourcing
contracts have been rebuffed in the past years. Washington is the hoping that that under a
reform-friendly Modi administration reform in sectors such as insurance, banking will be
quicker than it used to be.
3.16 MODI SETS A FURIOUS PACE FOR INTERNATIONAL VISITS

Prime Minister wants to send balanced signals: balancing a vigorous engagement with China along
with visits to the eastern alliance ranged against that nation Japan and Australia, which have
sought to engage India in trilateral military exercises. He will balance the east with visits to the west,
and the global south with the developed world.
Many question if Mr. Modis summit-style of bilateral relations, addressing outstanding issues at
the highest level, will leave enough space for preparatory legwork, as well as follow-ups to his
meetings?

45

3.17 A DOCTRINE OF ECONOMIC LEVERS, SOFT POWER
Article talks about foreign policy under Modi as inferred from President's address.
Power is the ability to influence the behaviour of others.
In international relations, as the Harvard academic, Joseph Nye, reminds us, power can be
exercised in three ways:
1. by threatening or actually using military force
2. by offering economic incentives or imposing economic sanctions
3. by building what Nye famously dubbed soft power. That is, the soft power of nations to
persuade others based on the attractiveness of their technology, politics, culture, ideas or ideals.

If President Pranab Mukherjees opening address to Parliament is anything to go by, the foreign
policy of the new government under Prime Minister Narendra Modi will likely employ a
nuanced combination of all three of Nyes instruments of international influence.
There will be a renewed emphasis on using the carrots of economic levers and soft power. This
suggests a thoughtful understanding of the importance of what Nye terms smart power: a
clever combination of the tools of conventional hard, or military and economic, power and soft
power. It is this integrated approach that will best serve India in a complex, interdependent
world, which is defined as much by conflict and competition as it is by cooperation and the need
for greater coordination in confronting common global threats.
Modi's doctrine has five key elements
1. Pursuing a Foreign Policy of "enlightened national interest"
What is this enlightened national interest?
National interest is often defined as raison d'tat, or reason of state, and can be viewed
as the selfish pursuit of national ambitions, mostly as defined by the government of the
day. Enlightened national interest adds a moral prism to the policy.

In international diplomacy, enlightened national interest is arguably the recognition that
the narrow pursuit of self-interest in an interdependent world can lead to suboptimal policy
outcomes. In Asia, Japan a nation Mr. Modi clearly admires has used the term enlightened
national-interest to define many of its policies, including those steering its overseas
development assistance. Through supporting other nations via giving and via attractive
development funding and loans, Japan has greatly increased its regional influence. The concept
opens up the possibilities of creating cooperative outcomes for many issues, even those
traditionally seen as difficult, zero-sum conflicts by realists in the establishment.
Within the Indian tradition, this sense of enlightened national-interest is captured in this
verse from the Mahopanishad, ... Ayam bandhurayam neti ganana laghucetasam
udaracharitanam tu vasudhaiva kutumbakam or Only small men discriminate by saying
one is a relative, the other is a stranger. For those who live magnanimously the entire world
constitutes but a family.

46

2. India will help to build and strengthen a democratic, peaceful, stable and
economically interlinked neighbourhood.
Gujral Doctrine was perhaps the strongest articulation of a policy of reaching out to the
neighbourhood, even through gestures that did not demand reciprocity.
Strengthening of democracy in the region is the first step toward building what the
political scientist, Karl Deutsch, described as a security community. That is, a region in which
the large-scale use of violence has become unthinkable!

That said, it must be recognised that only a strong and economically resurgent India can lead
the process of South Asia integration and so much will now depend on how quickly Indias
economy can be revived. Meanwhile, enlightened national interest will demand that India
considers making unilateral gestures to serve longer-term self-interest. For instance, arriving at
an accord on the sharing of the Teesta river with a stridently India-friendly regime in
Bangladesh would clearly be an important step that should not be undermined by the capricious
behaviour of one leader from West Bengal.

3. Emphasis on soft power explained though yet another Modi alliteration of 5Ts: trade,
tourism, talent, technology and tradition.
the Ministry of External Affairs will need to be restructured and every major mission
abroad would need to include a trade, scientific and cultural counsellor knowledgeable in the
relevant domains.
In addition, the role of the diaspora in the future development of India has been
emphasised. One clear step that would ensure deeper engagement between India and the
diaspora would be to allow non-resident Indians (NRI) to carry dual passports. For many
Indians, continuing to hold an Indian passport is a badge of honour which they will not give up
for any convenience, glory or money. Allowing dual citizenship for NRIs carries virtually no
additional risk; and indeed most countries in the world allow their citizens this privilege.

4. A multi-alignment policy
Incipient Modi doctrine moves beyond the former delineation between non-alignment, non-
alignment 2.0, and alignment to suggest that India could follow a policy of what Mr. Shashi
Tharoor may describe as multi-alignment with all the great powers.
This was emphasised in the Presidents address that explicitly stated that the government will
work with China to develop a strategic and cooperative partnership, work with Japan to build
modern infrastructure, build on the firm foundations of the relations with Russia, pursue the
relationship with the United States with renewed vigour and make concerted efforts to achieve
progress in key areas with the European Union.
5. Willingness to raise issues of concern at a bilateral level (read Pakistan) and the
uncontroversial claim that stability can be built in the region only if there is an end
to the export of terrorism.
Clearly, concerns about Pakistan have deliberately not been emphasised as this may still be a
work in progress. Or perhaps the Modi government recognises that there is much merit in the
adage: carry a big stick, but speak with a soft voice. For, in the past, as my colleague Ashok Guha

47

once remarked, India has carried a toothpick, and shouted from the roof top and from
television studios.
3.18 WTO: MODI BANKS ON BRICS
The Modi governments first major international crisis is brewing at the World Trade
Organisation (WTO) talks in Geneva, where even six months after the Bali ministerial
conference, the United States has not allowed progress on talks to ensure permanent protection
to Indias food subsidies from WTO caps.
To salvage the situation, Prime Minister Narendra Modi will seek support from BRICS,
especially China, on the Geneva negotiations during his visit to Brazil on July 14 and 15 for the
summit of this group of nations, sources said.
Commerce Secretary Rajeev Kher has said that India is eager to find permanent protection for
its food subsidies from World Trade Organisation caps.
The nation registered its annoyance at the unbalanced progress in the execution of the Bali
Declaration at the Trade Ministers Meet in Paris in May, the WTO General Council Meet in
Geneva in June and the Committee of Agriculture last week. In December 2013, the WTO
Ministers adopted the declaration that proposed to revive the Doha Development Agenda and
find permanent protection for the minimum support prices.
India has found support in Africas Least Developed Countries as the fear is that the developed
countries will harvest the Trade Facilitation agreement and run away, the sources said. Brazil
and China could rally behind India, as their food security subsidies are in danger of breaching
the WTO limits too.
Following the rollout of the Food Security Act, Indias administered minimum support prices for
foodgrains procurement run the risk of breaching the permissible subsidy levels under the
WTOs existing Agreement on Agriculture. As a developing country, the de minimis provisions
entitle India to provide 10 per cent of the total value of production of a basic agricultural product
as product-specific price support and 10 per cent of the total value of agricultural production as
non-product-specific support.
Subsidies and support prices in excess of the cap are seen as trade-distorting, against which
other WTO countries can initiate legal action.
3.19 U.S. PUSH TO TAG INDIA AS EMERGING ECONOMY AIMED AT
MARKET ACCESS
The crisis at the World Trade Organisation (WTO) talks in Geneva has deepened with the United
States demanding that India and China be categorised as emerging rather than as developing
economies.
USA's argument:
1. U.S. insists that economies such as India and Indonesia with high rates of growth can no
longer be categorised as developing countries

48

2. U.S. has also tabled a study in Geneva, produced by its allies Pakistan and Canada, that claims
food subsidies in India and China exceed those in the U.S. and the EU
India's Argument:
1. Indias stand is that going by per capita income, it is actually the worlds largest Least
Developed Country where about 600 million live at less than $2 a day
2. India has countered the study with data to show that the U.S. farm subsidies to its corporate
sector are to the tune of $20,000 to $30,000 per capita per year against Indias mere
$200. Besides, Indias subsidies go to subsistence farmers
Implications for India:
1. will lower the agriculture subsidy caps applicable to India from 10 per cent to 5 per cent.
2. will also require India to grant market access to the U.S.
3.20 LETTER EXCHANGE REFLECTS MODIS DIRECT DIPLOMACY
Foreign Secretary Sujatha Singh, responding to a question on whether diplomacy between India
and Pakistan would be affected by the LoC firing, said, We are all aware that maintenance of
peace and tranquility on the border is of highest importance in establishing the preconditions
for peaceful and normal relations between India and Pakistan. Ms. Singh also maintained that
sari and shawl diplomacy fit in with Indias policy towards its neighbours. Last month, Mr.
Modi had sent a shawl as a gift for Mr. Sharifs mother in Lahore.
The exchange of letters seems to indicate Mr. Modis desire for more direct diplomacy with Mr.
Sharif , whom he addressed as Mian Sahab. Many in the government were taken by surprise at
the speed of correspondence that may indicate an unofficial channel at work between the Indian
and Pakistani leadership.
3.21 HYDEL PROJECTS CENTRAL TO OUR TIES
Prime Minister Tshering Tobgay of Bhutan will highlight enhanced cooperation in the
hydropower sector between India and his country as a key focus of the bilateral relationship
during Prime Minister Narendra Modis two-day visit beginning on Sunday.
The Bhutan Prime Minister said his country, endowed with abundant water resources, had
commissioned three major hydropower projects while three more are under construction. The
surplus electricity generated these hydropower plants is exported to India.
Bhutan would be ready to discuss any issues that PM Modi may wish to raise, Prime Minister
Tobgay said. The gamut of Bhutan-India cooperation is wide and includes trade and
investment, economic cooperation, development of hydropower, development assistance,
cultural cooperation and most important of all, security interests.
The deep and abiding friendship between the two countries was the reason Prime Minister
Modi had chosen Thimphu for his first foreign visit, he said.

49

3.22 MODI STRESSES B2B TIES WITH BHUTAN
Prime Minister Narendra Modi vowed to nurture bilateral relations with Bhutan, which he
described as B2B Bharat to Bhutan, as he met his counterpart, Tshering Tobgay, and King
Jigme Khesar Namgyel Wangchuk here on Sunday.
He specified areas such as peace, security, development and tourism to push bilateral
ties.
Earlier, Mr. Modi inaugurated the Supreme Court complex built here by India. He
announced doubling of scholarships being provided to Bhutanese students in India
to Rs. 2 crore, and promised to assist Bhutan in setting up a digital library.
3.23 REACHING OUT TO BHUTAN
Bhutan-India relations are governed by a friendship treaty that was renegotiated only in
2007, freeing Thimphus external relations from New Delhi, but still subjecting the Himalayan
nations security needs to supervision.
India has also provided financial assistance to its tiny neighbours five-year development
plans since 1961, last year committing Rs.4,500 crore for the period up to 2018.
The gamut of ties between the two countries covers cooperation and investment in
infrastructure development, health, education and most significantly, hydropower projects.
Last year's controversy
Meanwhile, Bhutan itself has undergone radical changes, transitioning from a benevolent
monarchy to a democracy. A new generation of Bhutanese have come of age under the new
system. The country held its second democratic election last year, one in which, for the first
time, resentment against New Delhis meddling through the cutting of fuel subsidies, among
other actions, was openly expressed. Supporters of the Druk Phuensum Tshogpa, which lost the
election after its first term, believed that New Delhi was cut up with the 2012 meeting between
Wen Jiabao, the then Chinese premier and Jigmey Thinley, then Prime Minister of Bhutan.
At that meeting, which was held in Rio de Janeiro on the sidelines of a multilateral forum, the
Chinese side was quoted as saying that Beijing was willing to complete border demarcation
with Bhutan at an early date. Both sides have held many rounds of talks on the issue, without
coming close to a resolution. Chinese territorial claims in western Bhutan are close to the
Siliguri Corridor, also known as Chickens Neck, the narrow strip of land that connects West
Bengal to northeastern India.
China is also interested in establishing formal ties with Thimphu, where it does not yet have a
diplomatic mission despite a nearly 500-km shared border with Bhutan.

All this is no doubt causing concern in New Delhi, and is clearly part of the reason Prime
Minister Modi chose to visit the country quickly. During the visit, the two sides reiterated an
important clause in the 2007 Treaty neither side will allow its territory to be used for
purposes inimical to the other. India cannot stop a sovereign country from establishing
diplomatic relations with other countries. What it can do though is to protect and nurture its
relations with Bhutan in a way that the friendship grows and does not falter.


50

3.24 NO STRATEGIC CONTEST WITH INDIA: CHINA
Article talks about India China relations with Bhutan as a factor
China on Monday rejected suggestions of any competition with India for strategic space in the
neighbourhood, affirming that it was both happy with Mr. Modis visit and full of confidence over the
future of relations with India.
While China and Bhutan do not have formal diplomatic relations, the two countries have engaged in talks
to settle their disputed border, holding more than 19 rounds of negotiations.
While India has had close historical relations with Bhutan, that Beijing and Thimphu were willing to take
ties to a higher level was made evident in June 2012 when former Bhutan Prime Minister Jigme Thinley,
who ended his term in July last year, held a first-ever meeting with then Chinese Premier Wen Jiabao, on
the sidelines of a United Nations conference in Brazil.
Mr. Thinley then told Mr. Wen that his government wishes to forge formal diplomatic ties with China as
soon as possible a declaration that generated much interest in India at the time while the Chinese
leader said Beijing was willing to settle the boundary dispute at an early date and step up cooperation in
all fields.
Some analysts in Beijing have held the view that India has since then sought to block Bhutan from
establishing diplomatic ties with China.
Subsidy issue
A commentary in the Communist Party-run tabloid Global Times last year accused India of influencing
domestic elections in Bhutan and treating the country like a protectorate by withdrawing petroleum
subsidies.
The move was seen by some in Thimphu also as a response to its warming ties with Beijing, though New
Delhi rejected those suggestions.

Since the change in government in Thimphu last year, talk of moves to establish diplomatic ties with
Beijing has cooled.

China has been keen to quickly establish contact with the Modi government. Mr. Modis electoral victory
has been seen by many analysts in Beijing and by Chinese industry representatives as providing a
platform to deepen economic ties, with Gujarat emerging as a popular destination for Chinese investment
during Mr. Modis tenure as Chief Minister. Mr. Modi has visited China four times.

3.25 PMS VISIT SIGNALS MARITIME AMBITIONS
By choosing the giant aircraft carrier as his first outing to a defence establishment, Prime
Minister Narendra Modi on Saturday seemed to convey that Indias long-held aspiration of
establishing a footprint in the Indian Ocean which was drawing several
competing powers had not been extinguished.
Mr. Modi called for the establishment of a robust maritime infrastructure. Separately, Navy
sources pointed out that a weak focus on strong maritime foundations had become

51

graphically visible in the inordinate delay in the establishment of the Karwar naval
base in Karnataka.
Mr. Modi apparently impressed his hosts by stressing plugging the skills drain, which
follows the underutilisation of highly skilled people who retire from service. The
sources said that the Prime Minister was fully aware that institutional mechanisms to
redeploy this outflow of talent were poorly developed in the country.

3.26 AFGHANISTAN BETS ON INDIAN HELP AFTER U.S. DRAWDOWN
Afghanistan is hopeful that India, under the Modi government, will emerge as a major player in
filling the military vacuum left behind by US troops. A prominent military dimension will raise
the profile of the relationship between the two SAARC countries.
With the Americans expected to leave behind only 10,000 troops by 2014-end, the Afghan
government is looking to bolster its armed forces with big-ticket military hardware from India
including used MiG-21 fighters, T-72 tanks, Bofors howitzers and equipment vital for command and
control.
But wary of upsetting Pakistan, the UPA-II government had told the Afghans that India would not be
in a position to fly these equipment over Pakistani airspace for any repairs in Indian military
establishments, sources said.
Consequently, the Afghans approached the problem in a larger geopolitical perspective, involving a
deeper and simultaneous engagement with India, Russia and China. Russia was approached to
supply Indian-funded military hardware to Afghanistan, resulting in the establishment of a
complex triangular partnership. New Delhi had held talks with China, Japan and Iran to find ways to
fund Afghan security demands, with a price tag of around $4 billion a year.
Seeking a special relationship with China, the Afghans want Beijing to invest heavily in their
country, hoping that the Chinese will pour in enough economic and commercial stakes in
Afghanistan, persuading them to play a stabilising role in the country. Analysts point out that the
focus of Afghanistan on India, Russia and China to fortify its strategic interests comes at a time of a
sharp deterioration of ties between Washington and Moscow, and Russias growing relationship with
China, anchored by a recent $400-billion gas deal.
3.27 COLOMBO REJECTS JAYALALITHAAS ALLEGATIONS
Sri Lanka has lashed out at Tamil Nadu CM for her wild allegations of a pogrom and
genocide against the island nation in a memorandum to Prime Minister Narendra Modi earlier
this week. They hoped that the Prime Minister will stand by the right side [Sri Lankas side].

Devolution risky
In another development, the Sri Lankan government has told India that it would be risky for
it to devolve police powers as per the 13th Amendment to its Constitution, which followed
the Indo-Lanka Accord of 1987.
President Rajapaksa had clearly expressed the view that devolution of police powers to the
provincial councils would result in undesirable repercussions.

52

Prime Minister Modi urged President Rajapaksa at the bilateral meeting held in New Delhi
after Mr Modis swearing-in to deliver on his promises to devolve wide powers to the
provincial councils, including those with a majority of Tamils.
3.28 VICTIMS OF POLITICAL MANIPULATION
Of the nearly two lakh people a fifth of the Northern Provinces population who depend on
fisheries for their income, fishermen are severely affected by the Indian trawlers. Mannar alone
has nearly 40,000 people whose lives are tied to fishing activity along its 163 km long-coastline.
Compounding the issue are a few local fishermen engaging in banned fishing methods, including
bottom-trawling, citing the Indian trawlers as the reason.
The frustration of fishermen has only grown after the second round of talks between fishermen
of the two countries, held in Colombo on May 12, proved futile.
The problem has to be seen at two levels, says K. Rajachandran, president of a Jaffna-based
cooperative. 1. Trawlers pose a serious threat to marine resources and in the long run, it would
affect not just fishermen of northern Sri Lanka, but all fishermen in the region.
2. It is unreasonable on the part of Tamil Nadu fishermen to expect them to negotiate without
bringing in the International Maritime Boundary Line (IMBL) into the discussion.
Indian fishermen unfailingly returned to the Sri Lankan waters just as the 45-day ban on
trawling observed by them ended on May 31. Following the arrest of the 33 Indian fishermen
caught by the Sri Lankan Navy on Sunday, Tamil Nadu Chief Minister Jayalalithaa was quick to
write to Prime Minister Narendra Modi, as has been her practice, seeking a strong and robust
diplomatic response. What transpired through diplomatic channels remains unknown but the
following day, President Rajapaksa ordered their release in a goodwill gesture.
In less than a week, on June 7 and 8, nearly 80 Indian fishermen all from Tamil Nadu were
arrested by the Sri Lankan Navy on charges of poaching. As many as 18 trawlers they used were
also seized. Within a day of their detention the Sri Lankan President on Monday ordered their
release on the occasion of the first joint sitting of Indian Parliament.
Seeing the repeated arrests of fishermen who trespass, Tamil Nadus demand for
their immediate release and the diplomatic trade-offs that follow, northern Sri
Lankan fishermen say they have been made victims of political manipulation.

Need for long-term solution
The Palk Bay conflict was one of the key issues that Ms. Jayalalithaa discussed with Mr. Modi. In
the memorandum to him, she has sought assistance for deep sea fishing for Tamil Nadu
fishermen.
Considering that Tamil Nadu has to necessarily think of deep sea fishing in its pursuit of a long-
term solution to the Palk Bay Crisis, this is a welcome move. The Tamil Nadu Chief Minister has
also made out a case for what she terms traditional fishing rights of Tamil Nadu fishermen,
and for the retrieval of Katchatheevu, both heavily politicised matters.

53

However, what Ms. Jayalalithaa has been reluctant to admit is that Tamil Nadu fishermen go
well past Katchatheevu into what is legally Sri Lankas fishing territory across the IMBL. After a
brutal war spanning nearly three decades the fishermen are desperately trying to put their lives
back on track. Unless the Tamil Nadu Chief Minister recognises this and
acknowledges that fishermen from her State are trespassing into Sri Lankan
waters as has been repeatedly proved by satellite images the fisher folk of Sri
Lankas Tamil-majority Northern Province will have no reason to cling on to
hope. They have already been pushed to the very edge.
3.29 SUSHMA, WANG TALK TRADE
$100 billion target
India and China have set a target of $100 billion in bilateral trade a year by 2015, a goal which the
two Ministers spoke about in their meetings. Indias concerns over the vast trade deficit of $ 31
billion out of bilateral trade of $ 65 billion last year came up, as Ms. Swaraj is also learnt to have
spoken of more investment from China into Indian infrastructure, particularly in the Railway sector.
3.30 BORDER RESOLUTION MUST BE FAIR: WANG
The Chinese Presidents special envoy, Foreign Minister Wang Yi called India and China natural
partners and said both countries feel each other's development is a foreign policy priority
Speaking to the media before returning to Beijing, Mr. Wang, who met with President Pranab
Mukherjee, Prime Minister Narendra Modi, National Security Adviser Ajit Kumar Doval as well as
his counterpart Sushma Swaraj, said the two sides had reached agreements on many points and had
discussed all bilateral issues.
Developing trade and people-to-people ties was the focus in the conversation between Mr. Modi and
Mr. Wang as it was during the bilateral talks. We have reached an agreement on visa
facilitation between India and China, announced Mr. Wang on Monday.
He called the joint efforts to maintain peace along the LAC a hard won achievement, and
expressed the hope that this question left to us by history could have a fair resolution.
Mr. Modi has decided to make his second bilateral foray after Bhutan and Japan, that has very tense
relations with China at present. Later this month, India will also host the India-US-Japan
trilateral in Delhi that is seen as a counterpoint to the close engagement with Beijing.
India and China share strong civilisational contacts and should build on them to enhance
understanding of each other. That civilisational understanding will be tested against the question
of history with the border negotiations when the special representatives meet next for the 18th
round of talks between India and China.

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3.31 CHINA INVITES INDIA TO JOIN ASIAN INFRASTRUCTURE INVESTMENT
BANK

3.32 FIXING PROBLEMS OF WORKERS OVERSEAS IS PRIORITY: SUSHMA
Ms. Swaraj says she is particularly concerned about Indians working in the Gulf region and
other countries that they frequent. More than six million Indians live and work in the Gulf
region, of which a large number come from the southern States of Andhra Pradesh, Telangana and
Kerala
While India ranks first in global remittances at about $63.5 billion, many tales of misery
accompany that money being sent home. On an average, say activists, two Indians commit suicide
every week in the Gulf region. Others face stress and health issuesgiven the poor working
conditions and unfavourable laws in the GCC (Gulf Cooperation Council) countries. Reports
say about 400 bodies were returned to Hyderabad airport in 2012 alone, and even the procedure
of repatriating the bodies is a long and arduous one for the families.
3.33 ECB HURLS CASH AT EURO ZONE ECONOMY, SAYS NOT DONE YET
The European Central Bank cut interest rates to record lows on Thursday, launched a series of
measures to pump money into the sluggish euro zone economy, and pledged to do more if
needed to fight off the risk of Japan-like deflation.

What are the Measures?
Interest rates have been slashed to a record low and will stay low for a prolonged period.
For the first time, the ECB will charge banks for parking funds at the central bank
overnight in an attempt to force them to lend to small- and medium-sized businesses.
ECB extended the duration of unlimited cheap liquidity for euro zone banks, injecting
about 170 billion.
These measures would ease pressure on the strong euro, which is threatening economic
recovery and importingdisinflation.

55

The bank stopped short of full-fledged quantitative easing (QE) - printing money to
buy assets - but ECB President Mario Draghi said more action would come if necessary.
Why these measures?
Euro zone is still plagued by low inflation, a weak recovery and weak monetary and credit
dynamics.
Inflation has been stuck in "the danger zone" below 1% since October, mainly because of weaker
commodity and food prices, but also because of wage and other adjustments in euro zone crisis
countries.
If required, ECB can further ease the monetary policy and may use unconventional instruments
to further address risks of too prolonged a period of low inflation.

France happy, Germany silent
French President Francois Hollande, who has been calling for months for ECB action to weaken
the euro's exchange rate, which Paris argues is holding back economic recovery, welcomed the
central bank's decision.
The International Monetary Fund, which has also pressed the ECB to take robust action,
welcomed Thursday's announcements a "very proactive stance".
German Chancellor Angela Merkel declined comment, noting that the ECB took its decisions
independently of governments. Her finance minister said low interest rates were not a
long-term solution.
Low rates are unpopular in Germany, Europe's biggest economy, because they are seen as
penalising savers.
3.34 MASS SURVEILLANCE IS PERMITTED BY LAW IN THE U.K.
Mass surveillance of social media, such as Facebook, Twitter and YouTube, and even Google
searches, is permissible in the U.K. because these are external communications, according to
the governments most senior security official.
The claims have been brought in the wake of revelations from the U.S. whistleblower Edward
Snowden about mass surveillance under the Tempora programme by the U.K. monitoring
agency GCHQ and the U.S. National Security Agency (NSA). Under the Regulation of
Investigatory Powers Act (RIPA), the interception of any domestic communications requires an
individual warrant a legal safeguard that previously was thought to extend to all users.
Under section 8(1) of RIPA, internal communications between British residents within the U.K.
may only be monitored pursuant to a specific warrant. These specific warrants should only be
granted where there is some reason to suspect the person in question of unlawful activity.
External communications, however, may be monitored indiscriminately under a general
warrant according to section 8(4).

3.35 REBELS SEIZE IRAQ'S SECOND-LARGEST CITY
Rebels seized Iraq's second-largest city on Tuesday as Iraqi Soldiers threw away their
uniforms and abandoned their posts. Predominantly Sunni muslim city Mosul, 350 kilometres
north of Baghdad, has long been a militant stronghold and one of the most dangerous areas in
the country.
It is the Capital of Nineveh province and the second city after Fallujah, that the Iraqi

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government has lost this year.
Violence is running at its highest levels since 2006-2007, when tens of thousands were killed in
sectarian conflict betweenIraq's Shiite majority and Sunni Arab minority. Officials
blame external factors for the rising bloodshed, particularly the civil war in neighbouring
Syria. But analysts say widespread Sunni Arab anger with the Shiite-led government has also
been a major factor.
Militants have launched major operations in Nineveh, Anbar, Diyala, Salaheddin and
Baghdad provinces since Thursday, killing scores of people and highlighting both their long
reach and the weakness of Iraq's security forces.
3.36 IRAQ TROUBLE

3.37 TURNING TO IRAN
Key reasons for the situation in Iraq
1. In 2003 the invaders abolished Iraqs public and civic institutions, in the deluded belief that
all Iraqi officials were fanatical Saddam Hussein followers. Almost immediately, extreme Sunni
and Shia leaders started a savage civil war, dividing Iraqi society and enabling al-Qaeda to
establish a powerful presence where it previously had none.
2. Matters were then exacerbated by Iraqi Prime Minister Nouri al Malikis sectarianism; he
sacked 700,000 Sunnis from the military and banned substantial numbers of Sunnis from
civilian public-service posts.
3. Widespread corruption and brutality on the part of government militias have made things
even worse; some Mosul residents say that ISIL has brought renewed stability and an end to
fighting, bomb explosions, and looting.
4. Moreover, two allies, Saudi Arabia and Qatar, have been funding and possibly arming ISIL
with a view to overthrowing Syrian President Bashar al-Assad; Riyadh and Doha might also seek
to remove Mr. al Malikis Shia-dominated government.
5. Above all, the British and American lies about Saddam Husseins weapons of mass
destruction in 2003 now mean military intervention will not be tolerated by the public in either
country.

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So summarising the reasons:
1. abolishing of public and civil institutions --> enabled al-Qaeda to establish its presence
2. sectarian move of sacking Sunnis from military and civil public service post --> these Sunnis
sacked were recruited by al-Qaeda
3. government's corruption and brutality ---> conducive conditions for al-Qaeda
4. Saudi Arabia and Qatar funding and arming to remove Shia-dominated government
3.38 WAR IN IRAQ HURTS EVERY HOME IN INDIA
Picking up select few points:
Indians ought to be paying close attention, for this war will hit homes from Kupwara to
Kanyakumari. Fifty-seven per cent of Indias crude oil imports come from states directly
threatened by the looming chaos in West Asia Saudi Arabia, Iran, the United Arab Emirates,
Kuwait and Iraq itself. Long wars in the region could disrupt supplies and raise prices,
undermining Indias hopes of an economic revival.
Last year President Barack Obama announced that the U.S. was no longer interested in
being the worlds policeman. In a speech delivered earlier this summer, he expanded on that
vision, saying that military force would only be used to protect American lives against direct
threats. The economic rationale behind Mr. Obamas thinking is simple: by 2025, the shale oil
and gas revolution in the U.S. will have long freed it of dependence on imported
hydrocarbons.
The major lesson to be drawn from Mr. Bushs wars, though, is that the capability to
wage war isnt nearly enough. In a thoughtful essay on the U.S. war in Iraq, scholar Toby
Dodge has noted that the neoconservatives grouped around Mr. Bush believed that, left to
themselves, people would make rational choices, paving the way for a free market economy. Mr.
Rumsfeld successfully argued that a long-term presence in Afghanistan would be unnatural,
even counterproductive; in the neoconservative imagination, there was no room for the
reconstruction of polities and political systems.
For India to succeed in protecting its vital energy interests in western Asia, it will need
the focussed application of all elements of its national power: military, yes, but also
diplomatic and economic.Hard as it may be, New Delhi will have to find ways to work with
China and Japan, the two other Asian states powered by West Asian oil. Powers across the
region will have to find cooperative mechanisms to finance future interventions that may
become necessary.
3.39 INDIA MUST FIND ITS VOICE IN WEST ASIA
Authors talks about the lack of understanding in the Indian establishment of the value that lies
in ties with West Asia; ties that have been slipping in the past few years.
The region is important because of following reasons
1. dependence on the region for oil about 70 per cent of all oil imports,
2. bulk of trade that is conducted through this region via the Suez Canal,

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3. Nearly seven million Indians now live and work in the Gulf and WANA(West Asia and North
Africa), sending home about half of the $65 billion India earns in global remittances.
Some of the issues related with this region:
1. everyday in the Gulf, two Indians commit suicide on an average. They work gruelling hours for
unregulated agencies, being shipped around, as the construction workers were from the United
Arab Emirates to Iraq, without India speaking up for them.
2. Indias voice doesnt carry the weight it once did in the region.
Fading diplomatic stance
For the past decade, especially after what are called the 9/11 wars (Iraq and Afghanistan), India
has chosen to give up its own say on matters of the Middle East to the big powers.
On matters of conflict, Iraq, Syria, Libya, the government has chosen to piggyback on Russia
and Chinas stand at the United Nations, or to be intimidated by the U.S. and Europe into
adopting a hands-off policy there.
India has restricted dialogue on the issues of Libya, Syria and Iraq and others to its
conversations with the two most powerful influencers in the region: the U.S. and
Russia. However, given that it is Arab-Persian rivalries that are playing out more than Cold
War ones, it is imperative that the new government finds ways of initiating dialogue on
West Asian conflicts with the GCC (Gulf Cooperation Council), mainly Saudi Arabia
and with Iran as well.
For India, the disinterest has been enhanced by the growing conflicts in the region, from Libya
to Syria and Iraq. Every time a country in the region erupts, India seems less willing to engage
with it. As a result, the only bilateral visit by Dr. Manmohan Singh in his tenure during UPA-II
was to Saudi Arabia in 2010. In his schedule of engagements for the remainder of this year,
Prime Minister Narendra Modi has made no mention of the region either.
Once India shows its intent to engage, officials will find that their voice is heard very quickly. As
any Indian traveller to the region will tell you, India occupies a very high place in these
countries, dating back from the civilisational ties it shared with Egypt, Syria and Mesopotamia
(Iraq).
Gyaan
West Asia

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Western Asia is a newer term for the area that encompasses the Middle East and the Near East.
3.40 A TIME FOR ARAB, ASIAN STATESMANSHIP
Another article explaining the situation in Iraq. Its already covered in previous days so just adding
extra info:
taking advantage of ISIS attacks and the failure of the Iraqi Army to take a stand,
Kurdish forces, better trained and disciplined, have moved quickly to occupy Kirkuk, thus
consolidating the quasi-independence of the Kurdish region.
The origins of the current situation lie in the U.S.-led military assault on Iraq which
destroyed the countrys infrastructure, and in the immediate aftermath of the occupation when
the countrys two principal institutions were systematically destroyed, i.e., the disbanding of the
Iraqi Army and the prohibiting of the employment of Baath Party members - these Baath party
members are now in ISIS.

3.41 CHANGING RULES OF THE GAME OF THRONES
Obama's decision that USA will not send combat troops to Iraq - USA's unwillingness to enforce
the global order anymore. (Reason is that now it is not dependent on West Asia for its energy
needs because of shale deposit's in USA itself). Implications of this:
1. Powers like China, Russia and India will have to hammer out new rules
2. This may give rise to the Multipolar world creating a web of regional powers that would limit
each others ambitions.
3. Another possibilty is that faced with threatening regional hegemons, and with no great-power
allies at hand, smaller states are likely to expand their arsenals. The first signs of this are already

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evident. Through the Pacific Rim, fears that the U.S. will no longer be willing to contain China
have led states to grow their militaries at an alarming rate.
3.42 RAFALE DEAL TO TOP FRENCH FOREIGN MINISTERS AGENDA

3.43 INDIA EASES VISA NORMS FOR SENIOR BANGLADESHI NATIONAL
India has decided to relax visa restrictions for Bangladeshi nationals above the age of 65 and
below the age of 13. Senior citizens and young Bangladeshis will now be eligible for five-
year multiple entry visas as against the one-year visa available earlier.
However there was no proposal for visa free travel for Bangladeshi nationals to India.
The announcement of visas-on-arrival for nationals of some countries, which was made by the
UPA government in March, has also been held back after the Home Ministry cited concerns.
A new era of cooperation and connectivity
India confirmed the offer of enhancing power supply on the newly opened power-grid
connection between both countries by 100 MW from the Palatana project in Tripura. India has
made several other announcements including increasing the frequency of the Dhaka-Kolkata
Maitree Express, and proposed a Dhaka-Shillong-Guwahati bus service as well.
3.44 HASINA SEEKS PARTNERSHIP WITH CHINA
Declaring to the Chinese Premier that Bangladesh would be an active partner in a China-led
Asian century, Prime Minister Sheikh Hasina has underlined her willingness to deepen her
countrys strategic and economic engagement with China, signing major agreements for the
construction of roads, railway lines and power plants on a three-day visit to the Chinese capital.

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Ms. Hasina, who met President Xi Jinping and Premier Li Keqiang, also discussed with Beijing
the construction of a second deep-sea port off the Coxs Bazar coast at Sonadia China
is already involved in a port project at Chittagong that will give China further access to the
Indian Ocean, and an alternative route for energy imports.
Mr. Xi described Bangladesh as an important country along the maritime silk road project that
he has been championing, which envisages deepening connectivity, building ports and free trade
zones, and boosting trade with littoral countries in the Indian Ocean region and in Southeast
Asia.
3.45 TEESTA HIGH ON DHAKAS AGENDA
Ms. Swaraj will be in Bangladesh for a three-day trip.
No agreements are expected to be signed as the two sides hold talks as Ms. Swaraj is on a goodwill
visit. Those familiar with the preparations said the trip would see the first initial contacts between
the two governments, and an occasion to convey their thoughts on the future of the relationship.
Bangladesh would like to speak about the possibility of signing the Teesta river water
agreement.
Ms. Swaraj is expected to talk about increasing power supply on the new transmission grid from
Tripura to Bangladesh, bettering trade relations, as well as focussing on border management issues.
While Indian forces have claimed Bangladeshi forces arent doing enough to check illegal infiltration,
officials in Dhaka say they are worried about the increase in civilian casualties from alleged firing by
the BSF on the India-Bangladesh border.
Ms Swaraj will also meet officials of the Bangladesh Chambers of Commerce and Industry. Indias
bilateral trade with Bangladesh stands at $6.6 billion, a figure that could double to more than $10
billion by 2018.

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3.46 INDIA MORE OPEN TO N-INSPECTIONS

India has decided to enhance transparency of its nuclear infrastructure by ratifying an Additional
Protocol with the International Atomic Energy Agency (IAEA) a step that in a single stroke can be
leveraged to boost energy security and lift international confidence.
This will clear the decks for large imports of nuclear technology, boosting power generation
and other civilian purposes. The move is clearly tied to the new governments push for enhancing
energy security, which is slated to have a significant nuclear component. It will not be surprising if
countries such as Japan, France and the United States now enhance the level of their
civilian nuclear trade with India."
The Additional Protocol will cover only those facilities which are monitored by the IAEA, and will
have no bearing on the non-safeguarded facilities which are used for building weapons.
3.47 POSITIVE STEP, BUT HURDLES REMAIN
News: Ratification of Additional Protocol (AP) to the India-specific nuclear safeguards
agreement with the International Atomic Energy Agency (IAEA).
bolsters our case for NSG membership.
creats openings that could be possibly used for easier access to advanced nuclear
technology, a presence in the NSG, which functions on the basis of consensus, would arm India
with the power to protect its core interests
reinforces Indias credentials as a country committed to non-proliferation, for transfer of
data on Indias nuclear exports to the IAEA is a core element of the document.

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ratification may also improve the atmospherics of the visit in September to the U.S. by
Prime Minister Modi. India has now fulfilled a commitment that it had made in the Indo-U.S.
joint statement of 2005.
Still impediments to nuclear commerce between New Delhi and the rest of the world would
remain.
The Nuclear Liability Bill, which puts the onus of damages on the supplier, continues to
hamper normalisation of Indias nuclear trade with countries including the U.S. and France.
The bilateral nuclear cooperation agreement between India and Japan, which would
allow New Delhi to import nuclear know-how from Tokyo, is also not yet concluded.
3.48 MYSORE SITE MAY BE COVERTLY USED TO PRODUCE N-MATERIAL:
U.S. THINK TANK
Satellite imagery may have blown the shroud of secrecy surrounding Indias efforts to extend a
Mysore nuclear centrifuge plant constructed in 1992 for the covert production of uranium
hexafluoride, which may in turn be channelled towards the manufacture of hydrogen bombs
(Thermonuclear Bomb).
Mysores Indian Rare Metals Plant could help expand Indias uranium enrichment substantially,
for its nuclear submarine fleet and it would be most likely to facilitate the construction of an
increased number of naval reactors. It could also be used to support the development of
thermonuclear weapons.
HYDROGEN BOMB? and why does it requires Uranium?
A thermonuclear weapon is a nuclear weapon design that uses the heat generated by a fission
reaction to compress and ignite a nuclear fusion stage. This results in a greatly increased explosive
power. It is colloquially referred to as a hydrogen bomb or H-bomb because it employs hydrogen
fusion, though in most applications the majority of its destructive energy comes from uranium
fission, not hydrogen fusion alone.
3.49 AGENDA FOR NUCLEAR DIPLOMACY
The Article explaining history of Model Additional protocol which it ratified recently
The IAEA was already implementing full-scope-safeguards in countries that were party
to the Nuclear Non-Proliferation Treaty (NPT) as non-nuclear weapon states. This meant that
all nuclear activity in these countries was monitored to ensure that it was intended only for
peaceful purposes.
For the five nuclear weapon states recognised by the NPT (the United States, Russia, the
United Kingdom, France and China), full-scope-safeguards were not applicable as these
countries had a nuclear weapon fuel cycle that could not be subjected to international
accounting and inspection by the IAEA.
With the end of the Cold War, the prospects of a nuclear exchange between the two
superpowers receded and the proliferation of nuclear weapons became the new threat that
needed to be addressed at a global level. In 1993, the IAEA began to consider how it could play a
role in this and began a deliberative two-year exercise, described as 93+2.
The 93+2 exercise led, in 1997, to the Model Additional Protocol. The logic behind it was
different while full-scope-safeguards provided assurance that all nuclear materials were fully

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accounted for in exclusively peaceful activities, the Additional Protocol was intended to reassure
that there was no clandestine nuclear activity being undertaken. Remote monitoring and
analysis, environmental sampling to detect traces of radioactivity, and inspections without
notice, were introduced.
Not being party to the NPT, India was not subject to full-scope-safeguards. However,
nuclear reactors set up with international cooperation (e.g. Tarapur 1&2, Rajasthan 1&2, and
more recently, Kudankulam 1&2) were subject to the IAEAs facility-specific safeguards.
As per the 2005 undertaking, it was tacitly understood that as a nuclear weapon state,
India would keep some of its facilities out of safeguards for national security reasons and there
would, therefore, be significant differences between the Model Additional Protocol (as adopted
by states under full-scope-safeguards) and the customised Additional Protocol that would apply
in the case of India.
In fact, the Indian Additional Protocol does not contain most of the Model Additional
Protocols provisions and basically requires that India provide information to the IAEA
regarding its nuclear-related exports.
3.50 UPHOLDING THE FIVE PRINCIPLES
This year marks the 60th anniversary of the Five Principles of Peaceful Coexistence. Six decades
ago, during Chinese Premier Zhou Enlais visits to India and Myanmar, Mr. Enlai along with
Indian Prime Minister Jawaharlal Nehru and Myanmar Prime Minister U Nu issued joint
statements and initiated the Five Principles of Peaceful Coexistence, which are
1. mutual respect for sovereignty and territorial integrity,
2. mutual non-aggression,
3. mutual non-interference in each others internal affairs,
4. equality and mutual benefit, and
5. peaceful coexistence.
Since then, these principles have been widely recognised and observed by the international
community, and have served as basic norms of state-to-state relations. They have withstood the
test of time and made significant contributions to the cause of world peace and progress.
Historical background
The Five Principles prevailed against specific historical backgrounds. After World War II, the
global colonial system collapsed and a large number of national states emerged independent in
Asia and Africa. The most urgent task for these countries at the time was to safeguard national
independence and sovereignty, prevent external invasion or interference, and establish relations
with other countries on an equal footing, so as to strive for a peaceful international
environment. China, India and Myanmar are among those countries that first won national
independence in Asia and jointly initiated the Five Principles. In April 1955, the first Asian-
African Conference in Bandung, Indonesia, adopted these Principles. Since then, they have been
written into a large number of important international documents.
Relevance today

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The world today is very much different from that of six decades ago, with peace, development
and cooperation becoming the trend of the times. China, India and Myanmar, along with other
emerging markets and developing countries, are becoming more and more important in the
international arena. While the international situation is moving toward a direction more in
favour of peace and development, the world today is still faced with many difficulties and
challenges. We still have a long way to go to establish an international order that is more just
and reasonable. Under the new circumstances, we should continue to uphold and implement the
Five Principles.
1. The first is to firmly safeguard sovereign equality among all states and stand against
interfering in other countries internal affairs.
2. The second is to actively seek peaceful and common development in order to realise our
common dream.
3. The third is to promote the New Security Concept featuring mutual trust, mutual benefit,
equality and coordination, and advocate common, comprehensive, cooperative and sustainable
security.
4. The fourth is to fully respect diversity of the world and encourage various civilisations,
cultures and religions to respect one another.
5. The fifth is to push the process of multi-polarisation and support larger representation and
influence of developing countries in international affairs.
India-China relations
China and India are among the first to initiate the Five Principles, which have been the
cornerstone of our respective foreign policies. Over the years, the Five Principles have helped us
to properly handle our bilateral issues left over by history, such as the Tibet-related issue and
the boundary question. We have pushed forward all-around cooperation in political, economic,
cultural and other areas, established the Strategic and Cooperative Partnership for Peace and
Prosperity, and become good neighbours.
Today, China and India are both faced with the task of developing the economy and improving
peoples lives; therefore, both need a peaceful and stable neighbourhood and global
environment. As two important emerging markets and members of BRICS, both countries wish
to improve existing international governance, so that emerging markets and developing
countries can have more say in international affairs. Compared to the situation six decades ago,
the Five Principles have become more relevant to China-India relations. We should continue to
uphold and carry forward this common property.
First, we will continue to respect each other and accumulate mutual trust. For historical reasons,
there remain some outstanding issues between China and India. We should draw wisdom from
the Five Principles, always treat China-India relations from a strategic viewpoint, and take stock
of the whole situation, with full confidence that we have far more common interests than
differences.
Second, we will continue to carry out practical cooperation based on mutual benefit. As
neighbouring countries with the largest populations and greatest market potentials, China and
India are highly complementary in economy, and are natural partners of cooperation. We are

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both implementing a 12th Five-Year Plan. Chinas further opening up to the West echoes well
with Indias Look East policy. China and India should give full play to each others advantages,
deepen mutually beneficial cooperation, cooperate on the BCIM Economic Corridor, the Silk
Road Economic Belt, the 21st Century Maritime Silk Road, and establish a China and India
double-engine powered Trans-Himalaya Economic Growth Region, so that our dreams of
development and prosperity can interconnect.
Third, we will continue to treat each other on an equal footing. We should proceed from overall
interests of bilateral relations and handle the boundary question through peaceful and friendly
negotiations to find a fair, reasonable and mutually acceptable solution. Before that, we should
improve relevant mechanisms on border affairs, properly manage differences and jointly
maintain peace and tranquillity in the border areas. With regard to the issues of trade imbalance
and transborder rivers, we should treat each other on an equal footing, give full consideration to
each others concerns and find a proper solution.
Fourth, we will continue to promote people-to-people and cultural exchanges to foster
friendship among our two nations.
We should be inspired by our ancestors and encourage more youth, media, academia and other
people-to-people exchanges to promote mutual understanding. And we should pass on our
friendship from generation to generation, in order to make new contributions to world peace
and development.
3.51 MOVING BEYOND THE PANCHSHEEL DECEPTION

Author is highly critical of celebrations around the 60th Anniversary of Panchseel because:
1. When it was signed with China it was an agreement between "Tibetan region of China and
India" whereas till then Tibet was considered independent based on Simla accord of 1912. So it
reflected that India had conceded Tibet's independence.
2. Panchsheel met its end just three months after its signing, when the Chinese were found
violating Indian borders in Ladakh in late-1954
3. The history of Sino-Indian relations in the last five decades is replete with instances of
violations of sovereignty, mutual animosity, attempts to upstage each other and general ill-will.
4. The Chinese have a clever way of promoting their superiority and exclusivism. Sinologists
describe it as the Middle Kingdom syndrome. While Nehru wanted to take credit for the
Panchsheel, Zhou told Richard Nixon in 1973 that actually, the five principles were put forward
by us, and Nehru agreed. But later on he didnt implement them.
5.We always fall back to these principles and we don't try to do something new and innovative.

India and China can cooperate with each other on the principles of sovereign equality and
mutual sensitivity. China has emerged as an economic superpower, but is exposed to serious
internal and external threats. It is facing problems with almost all of its 13 neighbours. The fact
that China spends more money on internal security than on external security speaks volumes
about its internal vulnerability. So, while India is not as big economically as China, its security
apparatus is better-placed.

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3.52 KABUL CANNOT FIGHT TERROR ALONE: ENVOY
Afghanistan is stepping up its request for military and training assistance from India as the pullout
date for NATO forces approaches.
Afghanistan doesnt have the defence it needs to fight proxy-terror groups and wants to
strengthen their strategic cooperation with India.
Afghanistan had put in a wish list with India, including requests for tanks, helicopters
and ground vehicles, which Delhi had politely turned down. Instead India supported
infrastructure projects and provided military training to Afghan troops and police forces in India
itself.
India does not wish to upset Pakistan with overt military help that may be construed as
interference in Afghanistan.
The Cabinet Committee on Security had agreed to fund the supply of small arms to
Afghan National Army from Russia in order to avoid this problem.

Reacting sharply to these concerns, Ambassador Abdali told The Hindu , If a third country,
like Pakistan, is unhappy to see Afghanistan getting military support from India, I
have just one question Are we arming the Afghan army (so as to) to fight one
country? Why are we an exception in the region when everyone wants a strong army
and police? Why shouldnt Afghanistan? I think there is nothing wrong for India to do
whatever it can to support Afghanistan. It is Afghanistan seeking that assistance not
India giving it to us.
The Afghan envoy confirmed that India and Afghanistan were working at a trilateral transitory
agreement with Iran to trade goods via the Iranian port of Chabahar, which India is helping to
refurbish, as an alternative to the land route via Pakistan. He also spoke of the negotiations over the
TAPI gas pipeline from Turkmenistan, but said security is a pre-requisite for any economic
integration.
3.53 CONTINUE THE CONVERSATION
News: London summit, the global campaign to combat sexual violence in conflict
The London summit resulted in as many as 150 countries signing a protocol to end
sexual violence in conflict situations, at the end of week-long deliberations.
The guidelines contained therein on collection of evidence and investigation of atrocities
remain critical to the protection of the integrity and dignity of individual victims.
The provisions of the protocol are obviously far from being any binding legal
commitments.
Nevertheless, such promises provide a platform that civil society organisations may build
upon to press governments to commit to concrete actions in the future.
Some initiatives taken earlier in this direction:
1. The 1925 Geneva Conventions and the special tribunals to try crimes of
genocide and breach of humanitarian law established in the 1990s are still at best well-
intentioned, rather than vibrant and effective, institutional mechanisms.
2. Even the more recent International Criminal Court (ICC) based in The
Hague is beset with formidable obstacles when it comes to bringing criminals to justice.


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4 YEARBOOK/WELFARE SCHEMES
4.1 UPA FLAGSHIP SCHEME TO BE REJIGGED

As part of its 100-day agenda, the Modi government has set the ball rolling on redesigning the
Mahatma Gandhi National Rural Employment Guarantee Scheme.
The objective is to ensure that the assets created under the scheme augment rural
productivity, besides providing jobs to unskilled rural labourers.
The Modi government plans to leverage the redesigned MGNREGS for development of villages.
The BJP manifesto promised to link the scheme to agriculture.
4.2 KANYASHREE PRAKALPA
Kanyashree Prakalpa,West Bengal government scheme that provides scholarship to girls from
economically-backward backgrounds, has been given international recognition by the United
Kingdoms Department for International Development (DFID) and UNICEF.
Under the scheme, the government provides an annual scholarship of Rs. 500 to girls between
12 and 18 years (class eight to class 12) to continue with their studies, provided they are
unmarried. A one-time grant of Rs.25,000 is also provided to the girl, once she reaches the age
of (at) 18, to pursue higher studies.
The conditional cash transfer scheme for school girls was inaugurated by the Trinamool
Congress government on October 1, 2013, with the express purpose of ensuring the education of
girls and thereby preventing forced child marriage.
There were visible changes at the ground level with regard to enrolment of girl students and
child marriage, UNICEF said, citing a State survey. UNICEF has provided technical assistance to
the scheme and is aiding the State in its evaluation and monitoring processes.

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UNICEF representatives also pointed out that apart from increasing enrolment in schools and
preventing child marriages, the scheme would also address the issue of trafficking of young girls.
4.3 THE BATTLE FOR TOILETS AND MINDS
Article talks about the one of the major shortcomings of Total Sanitation Campaign.
One of the major problems is that villages build toilets and get the Nirmal Gram Puraskar but
the problem of sanitation is not solved as they don't use the built toilets. Some of the reasons
given are:
It is much healthier to go in the open,
For the new daughter-in-law or for emergencies, you need a toilet. Otherwise, taking a
walk in the fresh air is much better for health.

Sangita Vyas and Ashish Gupta of the Research Institute for Compassionate Economics (r.i.c.e.),
led a Sanitation Quality Use Access and Trends (SQUAT) survey in 13 districts of the five States
of Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh and Bihar.They found that
a full 40 per cent of households in the sample that had a latrine had at least one person
who was still defecating in the open.
Of those who had a toilet but defecated in the open, 74 per cent gave pleasure, comfort,
and convenience as the reason for this, and another 14 per cent said it was because of habit,
tradition, and because they have always done so.
Undoubtedly, the majority of people who defecate in the open are not doing it for
pleasure; in the survey, of the persons defecating the open, 86 per cent did not have toilets.
The findings also show that just building toilets without focussing on behaviour change
is not going to be enough, the researchers say.

Since Indias sanitation problem has been diagnosed as a lack of access to toilets,
the official sanitation policy has been uniquely focussed on building toilets.
However, the survey findings also show that the lack of money to build a toilet is
not the only thing that is holding rural households back from building toilets; large
parts of the population do not seem to have as yet made the association between
good health and using toilets.

There has been research showing that stunting in children is related to open defecation. But less
than half of all households in the survey which did not have a toilet believed that children would
be a lot healthier in a village where no one defecated in the open. As a result, families are
unlikely to build a basic toilet that they can afford at their stage of development.
Eliminating open defecation requires a focus on behaviour change not construction and
commit to learning and tinkering with new behavioural solutions.
4.4 THE NEW URBAN AGENDA
The new BJP government has outlined an urban agenda to make cities symbols of efficiency,
speed and scale. To achieve this, it plans to

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prioritise housing and public transport,
build 100 new cities,
use technology to improve urban services, and
make development sustainable.
The government has also ambitiously declared that everyone would own a house by 2020.
About 95 per cent of the 18.78 million-unit housing shortage still affects the lower
income groups. The question is: will this government succeed where the previous one failed?
The proposal to reduce interest rates on home loans, and rope in private companies to invest in
housing as part of corporate social responsibility requirements, are good initiatives.
However, these will not deliver unless the incentives are strictly tied to the actual
creation and delivery of affordable housing.
Instead of building new cities in distant places around a single industrial activity, the present
proposal is to build them either as a satellite city or a twin city near existing
metros in order to ease urban pressure. Would this simple extension of cities fare well
when compared with alternatives such as the city-cluster approach followed by China.
Building a new city on the periphery of an existing one is a plausible solution but without a
regional approach, better distribution of the urban population and the efficient integration of
the hinterland will not become possible. A standardised urban growth template also will
not work for all situations. The plans have to go beyond a city-centred approach, and
comprehensively include larger areas around them. It will help
integrate greenfield development with an existing city,
enable the networking of small urban centres in the vicinity using rapid transit systems,
use land optimally, and
protect ecological assets.

Urban governance is another major area of concern. The success of the governments policies
will depend on how well they bridge the distance between intention and implementation.
4.5 UN AWARD FOR GOVTS MOBILE SEVA INITIATIVE
An initiative conceptualised by Indian governments Department of Electronics and Information
Technology to enable delivery of public services electronically through the mobile
platform has been awarded a United Nations public service award.
Mobile Seva, a nationwide initiative conceptualised, funded and implemented by the
Department of Electronics and Information Technology (DeitY) leverages the massive
penetration of mobile phones in India to substantially enhance access to electronic
services, especially in the rural areas.
The main objectives of the initiative are to be a one-stop solution for all mobile-based
public service delivery needs through mobile-based channels, including SMS,
voice/Integrated Voice Response System and mobile applications, a statement said.

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