July Magazine IASBaba

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PREFACE
With the present shift in examination pattern of UPSC Civil Services Examination, General
Studies II and General Studies III can safely be replaced with Current Affairs. Moreover,
following the recent trend of UPSC, almost all the questions are issue-based rather than
news-based. Therefore, the right approach to preparation is to prepare issues, rather than
just reading news.
Taking this into account, our website www.iasbaba.com will cover current affairs focusing
more on issues on a daily basis. This will help you pick up relevant news items of the day
from various national dailies such as The Hindu, Indian Express, Business Standard, LiveMint,
Business Line and other important Online sources. Over time, some of these news items will
become important issues.
UPSC has the knack of picking such issues and asking general opinion based questions.
Answering such questions will require general awareness and an overall understanding of
the issue. Therefore, we intend to create the right understanding among aspirants How to
cover these issues?
This is the 14th edition of IASbabas Monthly Magazine. This edition covers all important
issues that were in news in the month of July 2016
Value adds from IASbaba- Must Read and Connecting the dots.
Must Read section, will give you important links to be read from exam perspective. This
will make sure that, you dont miss out on any important news/editorials from various
newspapers on daily basis.
Under each news article, Connecting the dots facilitates your thinking to connect and
ponder over various aspects of an issue. Basically, it helps you in understanding an issue
from multi-dimensional view-point. You will understand its importance while giving Mains
or Interview.
Ive missed more than 9000 shots in my career. Ive lost almost 300 games. 26 times Ive
been trusted to take the game winning shot and missed. Ive failed over & over again in
my life. And that is why I succeed.
- Michael Jordan
All the Best

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INDEX
NATIONAL
(Pages 5-69)
Talaq-e-Bidat To be tested on touchstone of Constitution

Hanging Free BasicsBetween Telecom & Internet Services
Who decides the fault in our speech?
Export Oriented Unit (EoU) Scheme
LGBT Issue: To be equal before the law
Immoral Traffic (Prevention) Act (ITPA)
AFSPA and Supreme Courts recent orders calling to account
Expanding the Idea of India
Is protectionism a problem?
Indian federalism needs the Inter-State Council
Why caste matters less in urban India
India needs a nutrition mission
It never trickles down
Assessing the workings of Indian Democracy
Bridging gap between middle and median class
Bridging the digital divide
Digitised records and patient rights
A law against children?
Kovvada Nuclear Plant, Andhra Pradesh
INTERNATIONAL
(Pages 70-100)
Reviving Act East Policy

Indias dynamic diplomacy: Pause for a reality check
Africa, a land of opportunity
India and Maldives Relations
The RCEP Effect on India
Turkey and Kurds Issue: Full Story
The dynamics of India-Pakistan trade
The death of World Heritage Sites
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ECONOMICS
(Pages 101-135)
Is FDI really a gift horse?

Tightrope walkfor the new RBI Governor
Dynamics of National Agricultural Market
India needs a robust corporate bond market
Indian Accounting Standards
Can India achieve 8% GDP growth for 2016-17?
Taking Pensions to the poorAtal Pension Yojana (APY)
Indias role in a changing global economy
Benami Transactions (Prohibition) (Amendment) Bill 2015
How misinvoicing is robbing developing countries of export earnings
Assessment of 1991 reforms
SCIENCE AND TECHNOLOGY
(Pages 136)
Indias Software-as-a-Service market
ENVIRONMENT
(Pages 137-154)
Let us get smarter about Water

We need a smart way of dealing with e-waste
Average Global Temperatures are rising rapidly: What India has to do?
Draft water bills: Address gaps through comprehensive research agenda
Looming water crisis
175GW of renewable energy by 2022 Is this goal achievable?
DEFENCE/SECURITY
(Pages 155-162)
The growing Islamic State threat: a Big Concern

Nagaland Issue: Full Story
MUST READ
(Pages 163-208)
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NATIONAL
TOPIC:
General Studies 1
Role of women and womens organization women empowerment
General studies 2:
Welfare schemes for vulnerable sections of the population by the Centre and States
and the performance of these schemes; mechanisms, laws, institutions and Bodies
constituted for the protection and betterment of these vulnerable sections
Talaq-e-Bidat To be tested on touchstone of Constitution
Shayara Bano1st woman to challenge a personal law practice
She has challenged the triad of instantaneous triple talaq (talaq-e-bidat), polygamy and
halala (a practice where divorced women, in case they want to go back to their
husbands, have to consummate a second marriage).
In her petition, there is no mention of the contentious Uniform Civil Code, or
codification of the Muslim personal lawShe has sought equality before law and
protection against discrimination on the basis of her gender and religion.
The Supreme Court has decided to examine the legality of triple talaq by entertaining a
Muslim woman's petition stating that this mode of divorce be declared unconstitutional
as it allowed Muslim men to treat women like "chattel".
The triple talaq system
Enables Muslim men to unilaterally exercise the power of divorce
According to the Hanafis when triple divorce is pronounced, the wife will become totally
alienated from the husband and he cannot remarry her. She becomes haram (totally
prohibited) for him. Neither can he take her back nor can he go for fresh nikah with her.
He can go for nikah with her only after she marries another person and that person
divorces her on account of marital conflict or she becomes a widow.
Totally un-Quranic
The Prophet of Islam was tremendously displeased and reprimanded a man for divorcing
his wife in an instant. Therefore, world-over as well as in the Shia community in India,
triple talaq is not accepted by Muslims.
In Islam, marriage is a social contract with clear conditions to be noted down in a
nikahnama (marriage contract) as well as provides for affirmative provisions for a bride
such as mehr (dower).
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The Quran gives equal right to both husband and wife to seek divorce. But it nowhere
allows instant divorce, for it treats marriage as a serious social relationship, entered into
by two individuals.
There are a number of verses in the Quran that call for attempts to reconcile in the case
of marital discord to be carried out over a period of 90 days.
Findings:
According to a survey conducted by the Bharatiya Muslim MahilaAndolan (BMMA), a
women's rights advocacy group, which is campaigning against triple talaq, 59 percent of
divorced Indian Muslim women were divorced through triple talaq.
In a national study, Seeking Justice within Family, out of a sample of 4,710 women, 525
have been divorced. Of these, 346 women were divorced orally, 40 women were sent a
letter of divorce by their husbands, 18 women were divorced on phone, one via SMS,
three through email and 117 through other methods. In the same study, 92%
respondents called for a legal ban on the practice of oral, unilateral or triple divorce.
By Law:
The Muslim Personal Law (Shariat) Application Act, 1937, allows Indian Muslims to be
governed by the Shariat. The absence of codification has legally allowed community
leaders to hold the practices as sacrosanct.
The Dissolution of Muslim Marriages Act, 1939, however, codifies a womans right to
seek divorce by approaching the court.
Courts could adjudicate under Article 13 of the Constitution if the Shariat law was found
to be inconsistent with or in derogation of the fundamental rights of Muslim women.
JamiatUlama-i-Hind, a Maharashtra-based organisation committed to protecting the
Islamic way of life, has argued that the minority religious communitys personal laws
draw its authority from the Holy Koran and not the Indian Constitution. The law is not
within the purview of the expression laws in force as mentioned in Article 13 of the
constitution and hence its validity could not be tested on a challenge based on Part III
(fundamental rights) of the constitution. In view of such clear provisions, if the court
frames fresh provisions, it will amount to judicial legislation and will be violative of the
doctrine of separation of powers
In the Past:
SC had urged the government in the Shah Bano case to frame a uniform civil code, a
two-judge bench in October 2015 suo-motu ordered registration of a PIL.
Justices Anil R Dave and Adarsh K Goel had sought responses from the Attorney General
and the National Legal Services Authority of India on whether gender discrimination
suffered by Muslim women should not be considered a violation of fundamental rights.
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The bench was hearing a matter related to succession when it said it is time to focus on
rights of Muslim women. The judges asked for the case to be placed before the CJI to
constitute a bench. It is now being heard with Shayara Bano case.
During UPA government a report had been submitted to the Ministry of women and
child development on the subject 'Women and the law: An assessment of family laws
with focus on laws relating to marriage, divorce, custody, inheritance and succession'.
The committee recommended a ban on various practices that are purportedly Islamic
but require reform, including talaq-e-bidat (unilateral triple talaq) and polygamy
The Shamim Ara Judgement makes it clear that talaq sent over email or text message
or through a notice or through the Qazi, etc is not valid and also clarified the procedure
for a Muslim husband to divorce his wife:
Present:
Supreme Court: Has called for an open-court debate on the highest judiciarys authority to
look into Islamic personal law and possibly subject it to the regime of fundamental rights
under the Constitution.
Connecting the Dots:
1. Does the language of Article 44 needs correction? Is the agitation for a Uniform Civil
Code biased? Discuss.
2. Will the ban on triple-talaq bring acche din for the Muslim women? Discuss.
TOPIC:
General studies 2:
Government policies and interventions for development in various sectors and issues
arising out of their design and implementation.
General studies 3:
Science and Technology developments and their applications and effects in everyday
life Achievements of Indians in science & technology; indigenization of technology and
developing new technology.
Awareness in the fields of IT, Space, Computers, robotics, nano-technology, biotechnology and issues relating to intellectual property rights.
Hanging Free BasicsBetween Telecom & Internet Services
Net neutrality
Net neutrality is the principle that individuals should be free to access all content and
applications equally, regardless of the source, without Internet service providers
discriminating against specific online services or websites.
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Without net neutrality rules in place, ISPs can prevent users from visiting some websites,
provide slower speeds for services like Netflix, or even redirect users from one website
to a competing website. Net neutrality rules prevent this by requiring ISPs to connect
users to all lawful content on the internet equally, without giving preferential treatment
to certain sites or services.
In the absence of net neutrality, companies can buy priority access to ISP customers.
Larger, wealthier companies like Google or Facebook can pay ISPs to provide faster,
more reliable access to their websites than to potential competitors. This could deter
innovative start-up services that are unable to purchase priority access from the ISPs.
Also, if ISPs can charge online services to connect to consumers, consumers would
ultimately bear these additional costs
Facebooks Free BasicsFacebook (FB) had recently allowed signing an online petition by those who support free
basics. As per FBs online petition, it urged users to send a letter to Telecom Regulatory
Authority of India (TRAI) supporting Free Basics.
Free basics: Free Basics is part of the Internet.org by Facebook initiative. It is a platform
(app) which makes the internet accessible to more people by providing them access to a
range of free basic services like news, maternal health, travel, local jobs, sports,
communication, and local government information.
Against free basics1. Data as commodity:
When users go online internet data is consumed and personal data is the currency of the
Internet economy.
Data as commodity is the oil of the 21st century. Facebook and Googles revenue model
is based on monetising our personal data and selling it to advertisers (like what we
search more, which age group etc.)
Facebook generates estimated revenue of nearly $1 billion from its Indian subscribers,
on which it pays no tax (FB is a US based company for which it pays no tax in India).
2. Free basics is not free and violates net neutrality:
Free Basics is not free, basic Internet as its name appears to imply. It has a version of
Facebook, and only a few other websites and services that are willing to partner
Facebooks proprietary platform.
With free basics the concept of net neutrality is violated. The internet service providers
(ISPs) by tying up with FB act as gatekeepers, regulating what content we have to view
and what we should not.
3. Basic flaw with the model:
Facebooks ads and advertorials talk about education, health and other services being
provided by Free Basics, without telling us how we are going to access doctors and
medicines through the Internet; or education.
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It forgets that while English is spoken by only about 12 per cent of the worlds
population, 53 per cent of the Internets content is English.If Indians need to access
education or health services, they need to access it in their languages, and not in English.
And no education can succeed without teachers. The Internet is not a substitute for
schools and colleges but only a complement, that too if material exists in the languages
that the students understand. Similarly, health demands clinics, hospitals and doctors,
not a few websites on a private Facebook platform.
4. Monopolization of internet:
Free basics have some limited apps which can be accessed without any cost (zero
rating). When more people log onto free basics as it has no data charge, indirectly FB
starts monopolising internet.
Internet becomes FB and FB becomes internet. Who knowsif after monopolisation FB
can charge money or data from people for accessing its services!
Thus, TRAI ruled in favour of Net neutralityThe telecom regulator struck down differential pricing for internet services offered by
telecom players to mobile users, in a bid to uphold the principles of net neutralityserving
a big blow to Facebooks Free Basics and other zero-rated platforms such as Airtel Zero for
which the social media giant
No service provider can offer or charge discriminatory tariffs for data services on the
basis of content.Tariff for data services could not vary on the basis of the
website/application/ platform/ or type of content being accessed. For example, a
consumer could not be charged differently based on whether she was browsing social
media site A or B, or on whether she was watching streaming videos or shopping on the
Internet, it added
No service provider shall enter into any arrangement, agreement or contract, by
whatever name called, with any person, natural or legal, that the effect of discriminatory
tariffs for data services being offered or charged by the service provider for the purpose
of evading the prohibition in this regulation.
A new Consultation paperBringing Free Basics back from the grave
Differential pricing back in spirit?
Differential pricing means charging customers different prices for access to different
websites and services. Zero-rating platforms are services developed by telcos in partnership
with internet service providers (ISPs)/app makers come give free access to customers for
certain applications/websites
TRAI, earlier: Price-based differentiation would make certain content more attractive to
consumers resulting in altering a consumers online behaviour and the knowledge and
outlook of those users would be shaped only by the information made available through
those select offerings.
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TRAI, at present: The real problem was that Free Basics had an exclusive agreement with
just one telco to do so. It would accordingly be fine if Free Basics entered into a similar
agreement with all telcos.
Telcos will not be able to benefit from content-based price discrimination. However,
they will facilitate ways whereby content providers can pick up the tab for consumers
accessing their content (and not other)
Orconsumers being reimbursed directly by content providers for the access of their
content
Effects on the consumer: Incentivised access to some content and services over others,
undercutting the key equalising feature of the Internet
Internet exceptionalismA new trend on the block
The Internet is considered to be some kind of uniquely regulation-free zone
Paves way for a distinction being done by the regulatorbetween regulating the telcos
and regulating Internet services and apps
IASbabas Views:
Universal access to the Internet need not be interpreted as uniform access and the
build-out of networks should be aligned to the absorptive capacity of a region by making
it a demand-driven service.
The time is also right to give up the telecom-Internet distinction as communication
systems of the society are of special social significance and requires committed
regulation and not just be treated as ordinary market goods.
An attempt to bring back the Free Basicsby making a distinction between telecom and
Internet services should be done away with and TRAI should make sure that paid
prioritisation, blocking and throttling of lawful content and services on the net be
excluded (strictly, at that)
1. What do you understand by net neutrality? Is free basics initiative of Facebook a
violation of net neutrality? Substantiate
2. Explain the terms differential pricing and zero rating used in telecom sector.
3. The British Empire was based on the control of the seas. Today, whoever controls the
data oceans controls the global economy. Comment.
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TOPIC:
General Studies 2
Indian Constitution, significant provisions and basic structure Fundamental Rights

(Freedom of Speech) Issues
Separation of powers between various organs , dispute redressal mechanisms and
institution
Structure, organization and functioning of Executive and Judiciary

Issue:
PerumalMurugan, award-winning Tamil writer, had become a household name last year
when he publicly announced that he was giving up writing after coming under sustained
attack from certain local, caste-based groups, who had protested against his
novel Mathorubhagan (translated into English as One Part Woman).
After widespread protests by local caste-based groups, the police got involved, and
summoned the parties for a peace talk.
He was forced to agree to a written unconditional apology at a peace committee
meeting organized by local officials and they orchestrated protests to demand a ban on
his novel and his prosecution, as they deemed his writings were prurient and
defamatory (i.e. police-mediated settlement had been coercively imposed upon Mr.
Murugan)
High Court Verdict
However, the Madras High Court has now rejected the demand for banning the book
or prosecuting him, and declared that it will not allow self-appointed super-censors
in society to decide what people read or see.
It has upheld the freedom of writers to write and advised those professing to be hurt
by a book to just avoid reading it.
The Bench also reminded the authorities (police and the local officials) of their duty
to secure freedom of expression and not give in to mob demands in the name of
preserving law and order thus, handing Mr. Murugan a complete victory.
The concept called: hecklers veto
As mentioned above, local police and officials imposed an unequal settlement upon
Mr. Murugan.
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The local police cited its duty to maintain law and order, and had told him that this
was the only way in which the protesters could be appeased.
In the language of free speech, this is known as the hecklers veto: by threatening
public disorder or disturbance, socially powerful groups can shut down critical or
inconvenient speech by simply cowing the writer as well as the police into
submission. India has a long and shameful history of caving in to the hecklers veto.
However, the recent verdict is a welcome one as the Court placed itself firmly on the
side of the more liberal and progressive Indian free speech tradition, and against a
series of regressive judgments that have upheld book bans and censorship on the
specious grounds of hurt sentiments or offended religious beliefs (on the basis of
hecklers veto).
Judicial censorship (Very important)
Under the Constitution, the judiciary is not granted the power to censor speech.
Article 19(2) stipulates that the freedom of speech can be restricted only by a valid
law that is (subject to certain exceptions contained in Article 13 of the
Constitution), a law enacted by Parliament.
Once Parliament passes a law restricting speech, the judiciary may review it to check
whether it passes constitutional scrutiny.
In the case of banning books,this procedure is contained in Sections 95 and 96 of the
Code of Criminal Procedure.
Section 95 authorizes the government to ban a book if it appears to have violated
certain laws.
If the government chooses to ban a book, the writer or publisher may then approach the
High Court, arguing that the ban is an unconstitutional invasion of their right to free
speech. Then the High Courts can and often have struck down bans on this basis.
This two-step procedure is vitally important in protecting the right to free speech,
since it first requires the government to apply its mind to the question of whether a
book may legitimately be banned, and then authorizes the court to determine whether
the government correctly applied its mind.
Troubling straight jacket move
Straightaway approaching the court for a ban short-circuits an essential safeguard, and
also invites the court to step outside its jurisdiction by passing banning orders not
contemplated by the Constitution.
Unfortunately, this has become an increasingly common tactic in recent years (i.e. no
courts are following the above two steps procedure), and also has far too frequently
been entertained by the Supreme Court.
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The PerumalMurugan case, presented a great chance for the Madras High Court to spell
out the limits of the courts jurisdiction, and the impermissibility of judicial censorship.
But, it failed to do so.
Conclusion
The most troubling part is The courts themselves are arriving at the conclusion
whether the book (One Part Woman in this case) breaks or do not break any laws. (just
by relying upon arguments by different sides)
The verdicts given in many previous cases (even in the Perumal case) also shows how
this form of analysis is heavily judge-centric, depending almost entirely on what an
individual judge feels about a controversial work.
For speech to be truly free, the judiciary must stop relying upon the rigid straitjacket
model it is following; it should understand its limitations on judicial censorship and
follow the procedures laid down by the Constitution of India (as mentioned above)
TOPIC: General Studies 2

Government policies and interventions for development in various sectors and issues ;
Governance Issues
Export Oriented Unit (EoU) Scheme
Launch: 1980
Objective: To boost exports and increase production
Scheme: Indian companies that produce goods solely for export can register as exportoriented units. In doing so, these producers become exempt from duty payments on a
range of resources used in production
Time for a relook at the EoU Scheme
Is there really a needYesdue to the following reasons
Declining exports
Rising trade deficit
To achieve its target of $900 billion exports by 2020 as envisaged in the Foreign Trade
Policy (FTP) of 201520
Gradual reduction in EoUs after the SEZ Act
Inability in fulfilling the net foreign exchange (NFE) obligations
Not paying the central sales tax (CST)
Exceeding the limit in sales to the domestic tariff area (DTA)
Growth and performance
Growth Trend: Downward; constitutes around 20 per cent of the total registered EoUs
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Reasons:
SEZ Act coming in force
Governments inability to utilise properly the uniqueness of the 100-per-cent-EoU
Scheme
Performance: Fallen drastically as well as turned negative in 2010-12
Reason:
Withdrawal of the tax benefits under the Income Tax Act, 1961 from 1 April 2011 (EoUs
opted out)
No internal audit mechanism to check and facilitate the functioning of EoUs in place
Governance Woes
Cases of misrepresentation and non-compliance: Around 48 cases of incorrect/irregular
DTA sales were recordedduty forgone, irregular internal audit system
Clearance of products into DTA often exceeds these prescribed limits
Others
Complexities that arise due to its size
Lack of entrepreneurial talent
Lack of promotion of the scheme
Limited share in manufacturing
Inability of the FTPto make the best of the 100-per cent-EoU scheme
Steps to improve performance
Revise the scheme to suit the changing global environment
Initiate policies to stop the downward trend of EoU growth and performance with
timelines by utilising the uniqueness of EoUs
Implement an internal audit system and ensure that EoUs submit APRs timely containing
relevant data related to exports, duty forgone, DTA sales, etc.
Fix liability for any non-compliance
Modify the provisions for EoU to achieve objectives and ensure proper functioning and
monitoring, but without affecting its competitiveness with other related schemes and
acts
Clear the ambiguities and inconsistencies in role and procedure between policies and
departments
Foreign Trade Policy 2015-2020
Target: $900 billion exports by 2020
Features:
Raise India's share in world exports from 2% to 3.5%.
New Schemes: Merchandise Exports from India Scheme & Services Exports from India
Scheme
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Higher level of rewards under MEIS for export items with High domestic content and
value addition
Chapter-3 incentives extended to units located in SEZs.
Export obligation under EPCG scheme reduced to 75% to Promote domestic capital
goods manufacturing.
FTP to be aligned with Make in India, Digital India and Skills India initiatives.
Duty credit scrips made freely transferable and usable for payment of custom duty,
excise duty and service tax.
Export promotion mission to take on board state Governments
Unlike annual reviews, FTP will be reviewed after two-and-Half years.
Higher level of support for export of defence, farm Produce and eco-friendly products.
TOPIC: General studies 2:
constituted for the protection and betterment of these vulnerable sections.
Human Rights Issue LGBT community issue
Government policies and interventions in regard to the above issue.
LGBT Issue: To be equal before the law

In News:
On June 30 (in Geneva), following a seminal vote, the United Nations Human Rights
Council (UNHRC) passed a resolution to create a post of an independent expert on
sexual orientation and gender identity. (Remember it as SOGI expert)
This SOGI expert, once officially appointed, will assess, study and report annually on the
nature, the cause, and the extent of discrimination faced by lesbian, gay, bisexual and
transgender (LGBT) persons around the world.
However, India chose to abstain from voting altogether to appoint this SOGI expert and
offered no official reasons for its abstention.
We also know that, the issue of LGBT rights in India is a matter being considered by the
Supreme Court under a batch of curative petitions filed by various institutions and
organisations and the apex court is yet to pronounce on this issue.
Analysis: It should be viewed here that whether Indias recent decision to abstain from
voting would in any way affect the upcoming Supreme Courts judgment, which the apex
court is right now considering the curative petitions filed by various institutions and
organisations.
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What critics argue about Indias present status on LGBT?
Proponents of LGBT rights have argued that Indias decision to abstain was a matter of
grave shame and as an act utterly unbecoming of a modern progressive state.
In India the transgender persons are deprived of the fundamental rights available to the
other two sexes, i.e. male and female.
We also know that, the issue of LGBT rights in India is a matter being considered by the
Supreme Court under a batch of curative petitions filed by various institutions and
organisations And the Apex Court is yet to pronounce on this issue.
Critics argue that the Supreme Courts judgment - upholding Section 377 of the Indian
Penal Code, according to which homosexuality or unnatural sex between two consenting
adults is illegal and an offence violates Fundamental Rights under Articles 14, 15 and
21 of the Constitution.
A majority of the countries have legalised homosexuality. Even in India, Section 377 IPC
was introduced not as a reflection of existing Indian values and traditions, but rather, it
was imposed upon Indian society due to the moral values of the colonisers. Indian
society prior to enactment of the IPC had a much greater tolerance of homosexuality.
The apex court has failed to consider the dynamic nature of law, particularly with
respect to homosexuality.
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India also favoured rigid amendments
India also voted in favour of amendments that were introduced by Pakistan which
explicitly states that the SOGI experts mission would ensure, at all costs, respect for the
sovereign right of every country to implement its own national laws.
I.e. in Indias case, this is a direct reference to Section 377 of the Indian Penal Code,
which makes even consensual homosexual activity a crime.
Therefore, any report of the newly appointed expert would have to give sufficient
weight to the fact that Indias laws proscribe, and even criminalise, homosexuality.
Conclusion:
When viewed in this light, its clear that Indias above acts and laws directly or indirectly
denies to several persons their basic human dignity, and that impinges on the rights of a
sizeable slice of the populace from participating fully in the make-up of our countrys
moral bedrock.
Now, with the curative petitions still left undecided, Indias decision to abstain from
voting sharpens the focus on the Supreme Courts next steps on Section 377.
It is imperative that a Bench of five judges or more is constituted as expeditiously as
possible to rehear the challenge to Section 377, made by the clutch of petitioners both
old and new.
For, a failure to annul the Supreme Courts verdict in Koushal would only perpetuate
what is really a gross miscarriage of justice. Ultimately, the courts legitimacy as a vital
pillar of our democracy depends on its ability to nullify popular will when the decisions
of the majority transgress the Constitutions guarantees.
By reversing Koushal, the court can help usher India into a more equal future, where the
tyrannical belief of some does not deny to any person the right to be treated as an equal
member of society, and the right to enjoy the Constitutions foundational liberties.
Connecting the dots:

1. Recent Supreme Courts Judgement recognizing transgenders as third gender puts them
in a strange paradox situation On the one hand, they are now legally recognised and
protected under the Constitution, but on the other hand they may be breaking the law if
they have consensual gay sex. Critically analyze.
2. Is Indias recent position on issues related to LGBT (Lesbian, Gay, Bisexual and
Transgender) rights both at International and National level, progressive? Critically
analyze.
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TOPIC: General studies 2
Government policies and interventions for development in various sectors and

issues arising out of their design and implementation.
Development processes and the development industry- the role of NGOs, SHGs,
various groups and associations, donors, charities, institutional and other
stakeholders
Immoral Traffic (Prevention) Act (ITPA)
Immoral Traffic (Prevention) Act lays down the legal framework for sex work in India
Some of the provisions under ITPA provide for rescuing sex workers, remanding them to
a rescue home and handing over them to their parents or family members (i.e. Rescue,
Protect and Rehabilitate)
However, a case study in Kolhapur showed that some of the women/sex workers
rescued and remanded in home did not have living parents, some had left home
decades ago, and some had families who did not know they were engaged in sex work.
The women were shunted from home to home and finally released after some years.
Such episode reveals in a nutshell all the shortcomings in the Immoral Traffic (Prevention)
Act (ITPA).
1. One, that it includes the word immoral, inserting an element of morality when the
discussion should be purely legal.
2. Two, that all sex work is assumed to be a result of trafficking with workers needing
rescue.
3. Three, that adult sex workers should be put into homes without their consent.
4. Four, that adult women should need to produce families to be released, thus
denying them any agency in their lives.
5. And finally, that what is fondly paraded as an act of rescue and rehabilitation
should actually be incarceration and trauma.
Sex workers and activists have also been demanding amendments to the Act,
pointing out that its various provisions are being used disproportionately against sex
workers.
There is a demand from several sex workers collectives to legalise the trade, and
allow them to work with dignity. Organisations such as the All India Network of Sex
Workers have maintained that by legalising the trade not only will trafficking of
women come down, but will also help in availing benefits of various health and
welfare schemes.
Clearly, there is every reason to desire a better law that can correct the anomalies in
the existing one. But the recently minted Draft Trafficking of Persons (Prevention,
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Protection and Rehabilitation) Bill, 2016 does not do this. On the contrary, it opens
up brand new grounds for anxiety.
Concerns with the new Draft Trafficking of Persons (Prevention, Protection and
Rehabilitation) Bill, 2016
1. The Bill was fashioned in great secrecy i.e. no wide consultative process took place
among all the stakeholders
2. The Draft Bill tackles trafficking solely through the lens of sex work. The Bill ignores
the tens of thousands of men, women and children who are routinely trafficked for
marriage, domestic labour or bonded labour in fields, mines, and textile
and beedi factories.
3. A provision in the Draft Bill allows any social worker or public-spirited citizen to
rescue and produce a victim before the District Anti-Trafficking Committees it
proposes to set up. This may create tensions in future as it opens doors to moral
policing and could lead to harassment of not just sex workers but other ordinary
people by overzealous, vigilante citizens.
4. The Bill continues to conflate or combine both prostitution with commercial
sexual exploitation into one which goes completely against the grain of what
activists are fighting for, namely protecting the rights of adults who stay in
prostitution voluntarily.
5. I.e. the Bill follows the conventional and simplistic approach to define prostitution
as exploitation rather than looking at it as exploitation of prostitution, which is
the primary evil that must be addressed.
6. It is important to treat trafficking in children, adult trafficked labour, and forced sex
work as separate categories, but the Draft Bill mixes up everything in its
portmanteau approach.
The 2013 Verma Committee had specifically clarified that the recast Section 370 ought not
to be interpreted to permit law enforcement agencies to harass sex workers who undertake
activities of their own free will, and their clients.
In 2015, a Supreme Court panel had recommended that the law relating to trafficking be
read down for consenting adults in sex work and their clients.
1. The Draft Bill also fails to mention the above recommendations.
Enormous power, little accountability
Further, the Draft Bill threatens basic constitutional freedoms of the persons it seeks to
rescue. For instance,
Article 22 gives a detained individual the right to consult a lawyer and be produced
before a magistrate within 24 hours, but the Draft Bill allows persons to be directly
produced before the member-secretaries of its District Anti-Trafficking Committees.
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Second, the Committees can independently recommend that a victim be repatriated

to her home State (or another State) for increased protection. This contravenes
Article 19, which grants citizens the right to move freely across, and reside anywhere
in, the country.
The way ahead:
Adult trafficked persons must be consulted and made aware of their rights so that
they can take informed and independent decisions on whether they want to be
repatriated.
The enormous power and little accountability that is vested in the proposed District
Committees is troubling. They raid and rescue, rescued persons are produced before
them, and they are also responsible for post-rescue care. In effect, it would appear
that they are policeman, judge and rehabilitator rolled in one. At present, despite its
lacunae, the ITPA still has some processes in place. For instance, nobody can enter a
brothel without a warrant, and only some categories of police officers have the
power to raid a brothel. Now, these guidelines stand to be transgressed.
Overall, the critics argue that the present ITP Bill is carelessly drafted and muddled
Bill that does more harm than good.
It duplicates several existing (and unimaginative) provisions: Anti Human Trafficking
Units already work in districts and States, the ITPAs present raid-rescuerehabilitation approach is a dismal failure, and rescue homes today are often the site
of fresh exploitation.
Thousands of placement agencies continue to be the chief source of human
trafficking despite laws.
The Draft Bill repeats the need for their registration without explaining how it will
ensure it. These are but a few of the many shortcomings the Draft Bill needs to fix.

1. Critically analyze the provisions of Immoral Traffic (Prevention) Act and suggest some
strategies to plug the loopholes in the ITPA Act.
2. Government of India has come up with a new Draft Trafficking of Persons (Prevention,
Protection and Rehabilitation) Bill, 2016. Critically analyze how effective this Bill would
be if it becomes an Act.
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TOPIC:
General studies 2
General studies 3
Security challenges and their management in border areas; linkages of organized

crime with terrorism
Various Security forces and agencies and their mandate
AFSPA and Supreme Courts recent orders calling to account

In News:
Extra Judicial Execution Victims Families Association, a representative platform of people

in Manipur whose kin have allegedly been summarily killed by security forces had filed a
petition against the AFSPA requesting Supreme Court to repeal AFSPA or at least make it
accountable.
The petition had alleged that there have been over 1,500 extra-judicial killings in the
state and pleaded for the courts intervention to deliver justice.
Supreme Court made it clear: AFSPA does not provide blanket immunity to army
personnel.
The Supreme Court ruling is a strong critique of the manner of deployment of the Armed
Forces Special Powers Act (AFSPA).
The state and its agencies, under the cover of AFSPA, had sought immunity from legal
scrutiny. The SC order has refused to be imprisoned by the states security-centric
framework and the resultant curtailing of the citizens fundamental rights.
AFSPA and its confrontations

AFSPA was first introduced in 1958
The validity of the AFSPA has periodically come under scrutiny.
A constitutional bench had upheld the act in the Naga Peoples Movement of Human
Rights, the Justice B.P. Jeevan Reddy committee advised the government to repeal it.
Now the recent order of the Supreme Court is a landmark in the rights discourse in the
country, where one may say that the court adopts an approach consistent with
constitutional guarantees of life and liberty and dismantles the incessant and
unreflective argument based on extreme notions of security and order.
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Recent Supreme Courts order outlines three crucial principles:

1. One, the order situation in Manipur is, at best, an internal disturbance. There is no
threat to the security of the country or a part thereof either by war or an external
aggression or an armed rebellion.
2. Two, for tackling the internal disturbance, the armed forces of the Union can be
deployed in aid of the civil power. The armed forces do not supplant the civil
administration but only supplement it.
3. Three, the deployment of the armed forces is intended to restore normalcy and it
would be extremely odd if normalcy were not restored within some reasonable
period, certainly not an indefinite period or an indeterminate period.
Conclusion:
The AFSPA provides the framework for the armed forces but the law clearly lays down
the operational procedure which is more often violated than followed.
However, the court has made it clear that the state is bound by the direction of the
Constitution bench that every death caused by the armed forces should be thoroughly
inquired into if there is a complaint or allegation of abuse or misuse of power.
The order, which will be one in a series of orders to come, as more cases being
investigated reach their conclusions, has shone a much needed light on the dark
underbelly of the operation of the AFSPA in several parts of the country and the effects
it has had on governance and civil liberties.
It is a welcome step in extending the rule of law and fundamental rights to an area
where there has been much need for it for decades.

1. Border management strategies should not only focus on strengthening the border
protection forces but also on generating goodwill with the people residing in the border
regions. Do you agree? Analyse in the context of India.
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Indian Constitution- historical underpinnings, evolution, features, amendments,

significant provisions and basic structure.
Expansion of Fundamental Rights and Fundamental Duties
Expanding the Idea of India

What does the below article intends to say?
Our Constitution has guaranteed and envisaged certain Fundamental Rights and
Fundamental Duties respectively.
However, since then, the scope of Fundamental Rights has seen significant
expansion (especially through judicial pronouncements) and as a result, an
imbalance has been created between the current set of Fundamental Rights and
Duties.
Therefore, this particular article attempts to examine if a few additional
Fundamental Duties in the Constitution of this country could help in balancing out
the rights of its citizens and further make them more responsible towards the
countrys development.
Basics: FRs and FDs
The Constitution of India has envisaged a holistic approach towards civic life in a
democratic polity through guaranteeing certain rights called as Fundamental Rights.
These Fundamental Rights uphold the equality of all individuals, the dignity of the
individual, the larger public interest and unity of the nation.
Since human conduct cannot be confined to the realm of Fundamental Rights, the
Constitution has also envisaged certain duties, known as Fundamental Duties.
Though the rights and duties of the citizens are correlative and inseparable, the original
constitution contained only the fundamental rights and not the fundamental duties.
In other words, the framers of the Constitution did not feel it necessary to incorporate
the fundamental duties of the citizens in the Constitution.
However, the post-Constitution civic life, for around a quarter century, did not portray a
rosy picture, and therefore, it was thought fit to have a framework of duties in the
Constitution itself.
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The Fundamental Duties
In 1976, the Sardar Swaran Singh Committee was set up to make recommendations
about fundamental duties, the need and necessity of which was felt during the
operation of the internal emergency (19751977).
In 1976, the fundamental duties of citizens were added in the Constitution. In 2002, one
more Fundamental Duty was added.
The following ten Fundamental Duties were introduced by the 42nd Amendment Act, 1976
Article 51-A: It shall be the duty of every citizen of India:
1. To abide by the Constitution and respect its ideals and institutions, the National Flag
and the National Anthem;
2. to cherish and follow the noble ideals which inspired our national struggle for
freedom;
3. to uphold and protect the sovereignty, unity and integrity of India;
4. to defend the country and render national service when called upon to do so;
5. to promote harmony and the spirit of common brotherhood amongst all people of
India transcending religious, linguistic and regional or sectional diversities and to
renounce practices derogatory to the dignity of women;
6. to value and preserve the rich heritage of our composite culture;
7. to protect and improve the natural environment including forests, lakes, rivers and
wildlife and to have compassion for living creatures;
8. to develop the scientific temper, humanism and the spirit of inquiry and reform;
9. to safeguard public property and to abjure violence;
10. to strive towards excellence in all spheres of individual and collective activity, so that
the nation constantly rises to higher levels of endeavour and achievement.
Subsequently, another duty was added by the 86th Constitutional Amendment Act of 2002:
for a parent or guardian
11. to provide opportunities for education of the child or ward between the age of six
and fourteen.
Since then, the scope of Fundamental Rights has seen significant expansion through
judicial pronouncements:
For example:
the right to free legal services to the poor,
right to speedy trial and
right to live in a clean and healthy environment
As a result, an imbalance has been created between the current set of Fundamental Rights
and Duties.
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So let us examine whether adding a few new Fundamental Duties in the Constitution could
help in balancing out the rights of its citizens and further make them more responsible
towards the countrys development.
Additional duties
1. Duty to vote:
o Article 326 of the Constitution read with Section 62 of the Representation of
Peoples Act, 1951 confers the right to vote. However, quite often the
question arises as to whether that right also implies an obligation.
o The voter turnout during the last general election amounted only to about 67
per cent. This voter apathy should be taken seriously and an attempt should
be made to make voting a citizenship obligation.
o The state can take several steps to ensure that this duty to vote is made
operational and effective. One method through which this may be achieved is
by developing a system of incentives for voters and conversely
disadvantages for those who abstain from performing their duty to vote. A
very large section of people can be motivated to vote this way.
2. Duty to pay taxes:
o The tax gap (the revenue that a government is expected to receive as against
the revenue it actually collects) continues to increase every year.
o Research has found that tax evasion is a direct result of lack of trust among
the people, in general, and the government, in particular. Citizens must
believe that their taxes are bound to be used for public good.
o The incorporation of the right to pay taxes as part of Fundamental Duties in
the Constitution will shift the onus onto the taxpayer to pay taxes rather than
the tax department to collect them.
3. Duty to help accident victims:
o Every 60 minutes, 16 persons die in traffic accidents in India. According to
the Law Commission of India, at least 50 per cent of fatalities can be
prevented if road accident victims receive medical attention within the
critical first hour after the accident.
o The Karnataka governments decision to frame a Good Samaritan law is a
step in the right direction. With the increase in the number of accidents, it
has become pertinent for India to recognise this duty as one owed by its
citizens towards each other.
4. Duty to keep the premises clean:
o PM Modis Swachh Bharat Mission has received tremendous support from
people from all walks of life. The most effective mechanism to tackle
uncleanliness is to sensitise people about this duty. Therefore, it is
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imperative that a Fundamental Duty to this effect be added to the

Constitution.
For a better society
5. Duty to prevent civil wrongs:
o It is not enough that a citizen refrains from committing wrong; he has a duty
to see that fellow citizens do not indulge in the commission of wrongs.
6. Duty to raise voice against injustice:
o Today people seem to have stopped reacting to atrocities; they neither
report crimes nor volunteer to testify in a court. The duties of a victim or a
witness can be classified into two main categories, viz. duty to report a crime
and duty to testify in court.
o The state must also on its part work to ensure that the fight to bring the
offender to book does not become a Kafkaesque nightmare for the victim or
witness.
7. Duty to protect whistle-blowers:
o With the coming into force of the Right to Information Act, 2005, every
citizen has become a potential whistle-blower. While the state has a great
deal of responsibility in providing for their protection through appropriate
legislative instruments, the responsibility to protect torchbearers of
transparency vests on each one of us.
8. Duty to support bona fide civil society movements:
o Citizens have a moral duty to organise themselves or support citizen groups
so that the gaps in governance left by the executive can be filled and the
rights guaranteed by the Constitution are made available to every citizen.
Therefore, it is proposed that there must be an addition to Part IV-A of the
Constitution to that effect.
9. Reinvigorating civic responsibility:
o In the modern context, it has become increasingly important to instill a
reinvigorated sense of civic responsibility among Indian citizens.
o This can be achieved by adding new duties to the existing list of Fundamental
Duties while also laying emphasis on the performance of the existing ones.
The significance of Fundamental Duties is not diminished by the fact that there is no
punishment prescribed for not following them. Fundamental Duties constitute the
conscience of our Constitution; they should be treated as constitutional values that must be
propagated by all citizens.
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It appears our polity is not even aware of such a noble part of our Constitution. This should
be included in the curriculum of high school students at least.
A new set of Fundamental Duties can go a long way towards instilling a reinvigorated sense
of civic responsibility among citizens.
The scope of Fundamental Rights and Fundamental Duties has seen significant
expansion, especially through judicial pronouncements and as a result, an imbalance
has been created between the current set of Fundamental Rights and Duties.
Examine whether adding a few new Fundamental Duties in the Constitution could
help in balancing out the rights of its citizens and further make them more
responsible towards the countrys development.
TOPIC:
General Studies 2
Effect of policies and politics of developed and developing countries on Indias
interests, Indian Diaspora.
General Studies 3
Effects of liberalization on the economy, changes in industrial policy and their effects
on industrialgrowth.
Is protectionism a problem?
Will the next USA President becommitted to free trade?
Democratic candidate has given lukewarm support to free trade as well as Trans-Pacific
Partnership.
Republican candidate is hostile towards trade deals that throw open US markets.
Trump envisages a 35% tariff on imported cars and parts produced by Ford plants in
Mexico and a 45% tariff on imports from China. Such a step is called as Tariff protection
policy.
Tariff protection policymeans that a duty is imposed on imports to raise their price, making
them less attractive to consumers and thus protecting domestic industries from foreign
competition
Implications
Economists are of the opinion thatsuch tariff protectionist measures may prove to be
macroeconomic disasters.
Would repudiate free and open trade
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Reduce confidence of the stakeholders/investors and decrease investments

Other countries would retaliate by imposing their own import tariffs
History: Such step had been taken in USA by Smoot-Hawley Tariff Act in 1930s.
Is such step advisable?
When a country is facing deflation and experiencing liquidity trap, tariff protection can be
considered Upward prices during deflation are needed as higher prices encourage firms to raise
production, households to increase their spending.
Due to low inflation, they can also reduce their debts and US Fed need not also raise the
interest rates owing to depressed macroeconomic condition.
Deflation:Fall in prices, lower productivity, loss of jobs, thus slower economic growth. It
increases value of money in a sense that goods are cheaper, but people save more in hope
of further price reduction. Thus, there is slowdown in economic activities and ultimately,
people end up earning less. Great Depression is an example. (Advantage is increased exports
due to inflationary trends in other countries)
Liquidity trap:Consumers prefer saving in banks than other investment options even when
central bank is infusing more money to stimulate economy. Low interest rates spur low-risk
and high-liquid investments. In such situations, the bondholders sell off their bonds and
prioritize cash savings.
However, tariff protection in normal circumstances will impact the global trade
negatively.
Consider an example
Product A costs= $100
Step taken:
Now, President Trump announces 50% tariff on Chinese imports used in the product.
The new price of product A= $150
So, the US manufacturers will turn to domestic producers and thus put upward pressure
on US prices. The revised price of product A comes to $120.Hence, this will help during
deflation.
Chinas Reaction:
However, President Xi Jinping retaliates with a Chinese tariff. This means that US goods
become more expensive abroad and thus, there will be decrease in US exports.
Consequently, the domestic producers will raise the domestic prices to sustain and
hence, the final price of product A will be more than $120
Overall Effect:From the viewpoint of American consumer, any product they buy, whether
Chinese (now subject to tax) or US produced substitute, it will be more costly than before.
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Alternate to Tariff Protectionism

There are other alternates to raise prices and stimulate economic activity by
Tax cuts
Increase in public spending
The tariff protection is not a macroeconomic problem during deflationary condition;
similarly, free trade is not a solution for stagnation.
(Stagnation: Prolonged period of little or no growth in economy (less than 2-3% annually))
The Smoot-Hawley Act
The Smoot-Hawley Tariff Act is a U.S. law enacted in June 1930 which caused an increase in
import duties by as much as 50%.
Goal: To increase U.S. farmer protection against agricultural imports
Other sectors got wind of it and they also increased their tariffs
President Hoover: Signed it despite requesting him not to do so. Hence, as a sign of
disapproval to the act,other countries retaliated and also increased their tariffs.Though it
did not cause the Great Depression, it certainly did ignite other damaging consequences
Disrupted international financial system operation
Free trade and free international capital flows hand in hand.
Countries that import have to export to pay off their debts
The foreign relations soured because of this act, due to widespread defaults on foreign
debts, financial distress and collapse of international capital flows
Geopolitical tensions due to trade wars
France: Outraged by American taxation of French speciality exportsurged economic
war against US
UK: Taxed imports from US; gave special preference to Commonwealth nations
Canada: The then PM warned of outbreak of border warfare and deteriorated political
relations
Thus, such diplomatic conflicts created a setback to efforts made for stabilizing the
international financial system and end to the global decline.The result was that banks in
foreign countries began to fail and international trade declined drastically (world trade
decline of 66% between 1929 and 1934).
IASbabas Views
The need was: All the country governments should have worked together and focussed
on the risingNazi threat and German re-militarisation.
Thus, tariff protectionism might not be a bad macroeconomic policy in liquidity trap
situation and should be limited to need-based economic conditions. But, it is not a good
foreign policy either, hence should be used cautiously.
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Is tariff protectionism a preferable act by any country? Do you agree?
Refer:
Post-Nairobi: WTO- Doha Development Agenda
http://iasbaba.com/2015/12/iasbabas-daily-current-affairs-29th-december-2015/
Indias trade pacts in a changing world
http://iasbabas-daily-current-affairs-4th-march-2016/
TOPIC:General Studies 2
Indian Constitution, significant provisions and basic structure- Cooperative Federalism
Functions and responsibilities of the Union and the States, issues and challenges
pertaining to the federal structure, devolution of powers and finances up to local levels
and challenges therein
Appointment to various Constitutional posts, powers, functions and responsibilities of
various Constitutional Bodies
Background
Art 263 contemplates the establishment of an Inter-State Council to effect coordination
between the states and between Centre and states.
The President can establish such a council if at any time it appears to him that the
public interest would be served by its establishment.
Thus, Inter-state Council is not a permanent constitutional body for coordination
between the States of the Union
For example
1952- Invoked first time by President through notice to establish the Central Council of
Health under the Chairmanship of the Union Minister of Health and Family Planning
1954-President established the Central Council for Local Government and Urban
Development
1968- President established four Regional Councils for Sales Tax and State Excise Duties
However, National Development Council established in 1952 does not come under
constitutional definition ofInter-State Council as it was formed by an executive order.
Though there existed annual conferences of Chief Ministers, Finance Ministers, Labour
Ministers etc., the Administrative Reforms Commission (1969)felt the 'need for a single'
standing body which could
Discuss all issues of national importance
Advise on such issues authoritatively after taking all aspects of the problem into account
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Sarkaria Commission
ARC views were endorsed by Commission on Centre-State Relations (Sarkaria Commission)
Sarkaria Commission (198387) made a strong case for the establishment of a
permanent Inter-State Council
Government accepted the recommendation and in 1990, under Art 263 of the Indian
Constitution, established the Inter-state Council (ISC)
Inter-State Council
Composition:
Chairman: Prime Minister
Members:
Chief Ministers of all states
Chief Ministers of Union Territories having a Legislative Assembly and Administrators of
UTs not having a Legislative Assembly
Union Ministers of Cabinet rank in the Union Council of Ministers nominated by the
Prime Minister
Under: Ministry of Home Affairs
Mandate:
Investigating and discussing such subjects of common interests between some/all states
and between Union and state/s
Making recommendations upon any such subject
Deliberating upon such other matters of general interest to the States as may be
referred by the Chairman to the Council.
Why in news?
The 11th Inter-State Council meeting organised in July 2016 was convened after 10 years
Prime Minister of India chaired the Council in presence of the Chief Ministers,
Lieutenant-Governors of the Union Territories and 17 Union Ministers who are members
of the Inter-State Council.
ISC, 2016:
Intelligence sharing between states and union
Countering Internal security challenges
Adequate financial resources to states to implement government schemes
CAMPA amendment to disburse Rs. 40,000 crore to states
Sharing with states- the revenue generated from auction of natural resources
Imparting Skill education
Pan- India coverage of Aadhar
DBT for providing subsidies, benefits and public services
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Chief Ministers speak

Adventurism by Governors:
Recent crisis in Arunachal Pradesh and Uttarakhandproject the status of centre-state
relations
Centre and state having different ruling parties tend to have frictional relation through
the Governor.
Punchhi commissions recommendation to be implemented after discussion and
consensus between centre and states.
Shifting subjects from state list to concurrent list:
Education and forests have been shifted
Centre should extensively consult states and offer more flexibility in legislation
Tax devolution:
Acceptance of 14th FC recommendation to allocate 42% of the tax pool from 32% was
well received, for the most part
The GST is expected to change the scenario even more once implemented
States want centre to take their views into consideration as it is matter of constitutional
amendment as well as financial stability of the state.
Importance of ISC
Bridge trust deficit between centre and states
If the platform is not a problem solver, it atleast acts as a safety-valve
ISC has constitutional backing which gives states a strong footing that is essential to
build the atmosphere of confidence in calibrating centre-state relation.
Other platform
NITI Aayogs Governing Council
Similar to ISC composition to address centre- state issues
Prime minister, chosen Cabinet ministers and chief ministers
NITIAayog is by executive decision
Punchhi Commission (2007)
GoI constituted another Commission on Centre-State Relations in 2007
Objective:To look into the new issues of Centre-State relations keeping in view the
changes that have been taken place in the polity and economy of India since the Sarkaria
Commission.
Submitted report in 2010
Recommendations relating to legislative relations, administrative relations, role of
Governors, emergency provisions, financial relations, economic and social planning,
Panchayati Raj institutions, sharing of resources including inter-state river water etc.
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Some recommendations:
For ISC:
To be substantially strengthened and activised as the key player in intergovernmental
resolutions
Must meet at least thrice in a year on an agenda evolved after proper consultation with
States.
Issues of governance must as far as possible be sorted out through the political and
administrative processes rather than pushed to long drawn adjudication in the Court.
Such strongly it projects the importance of ISC that it commented Once ISC is made a vibrant, negotiating forum for policy development and conflict
resolution, the Government may consider the functions for the National Development
also being transferred to the ISC.
For Governor:
Fixing Governors tenures
Mandatory consultation of chief ministers before the appointment of Governors
Choosing individuals who have been outside active politics for at least a couple of years.
Way forward
There are many challenges of maintaining a federation. The Solutionis periodic debates
and discussions.
Post liberalisation too, centralised nature of economy was visible. Today, the new
government has shown its inclination towards federalist vision with emphasis on
decentralizing decision making and encouraging state competition
The centrehas also hinted at discussing and implementingsome of Punchhi Committee
recommendations which broadly fall under legislative, administrative and financial
heads
Dr.B.R.Ambedkar had described India and its states as one integral whole, its people a
single people living under a single imperium derived from a single source
Thus, Centre-state relation should be harmonised as disruption created by constant
altercating situations impose heavy administrative and economic costs on the states
affected.
Connecting the dots

Inter-state Council remains the best venue to address various issues concerning
national development. Elaborate
Refer:
Article 356Arunachal Pradesh: Is Presidents rule being misused?
http://iasbaba.com/2016/01/iasbabas-daily-current-affairs-27th-january-2016/
Harking back to an interventionist era Article 356
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http://iasbaba.com/2016/04/iasbabas-daily-current-affairs-2nd-april-2016/
Centrally sponsored schemes (CSS):Slimming Down
http://iasbaba.com/2015/08/iasbabas-daily-current-affairs-7th-august-2015/

Salient features of Indian Society, Diversity of India
Social empowerment, communalism, regionalism & secularism
Marriage outside caste has not found social approval traditionally.
Reason:Honour killings continue to be reported across the country.
However, young people of urban middle-class India are no longer limiting their search for
partners within their own caste.
Ambiguous outcomes
Social outcomes are an unreliable indicator of social attitudes as they do not necessarily
reflect peoples actual preferences.
For instance
In US, of all marriages, approx.1% consists of black and white marriages. But, the social
acceptance of these marriages has increased dramatically.
In India, a report suggests that interest in intercaste marriage is higher than the actual
reported rate
A 2004 Indian National Election Study was conducted by Centre for the Study of
Developing Societies
Sample: asked 27,000 respondents if intercaste marriage should be banned.
Result: Though 60% approved of such proposition, only 47% of urban residents were in
favour.
Also
Study:of more than 10,000 matrimonial advertisements in major national dailies was
conducted between 1970 to 2010
Result: requests for within-caste proposals fell from 30% during 1970-1980 to 19% for
2000-10
Motivations that drive inter-caste marriage
To understand inter-caste marriages, a study was conducted which focused on
Dalit and upper caste women in urban middle class
Arranged marriage institution
Uttar Pradesh, Maharashtra and Tamil Nadu were targeted states
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Womens behaviour- because the taboos against intercaste marriage are stronger for
women than men. (Woman adopts husbands caste)
Sample
1070 women were studied. They were given choice of three matrimonial matches who had
high-income potential
high status
similarity in height, age, skin tone and educational status
Only difference: each belonged to upper caste, backward caste and Dalit
Findings
62% women willing to look beyond their caste to find suitable matches
71% Dalit women and 54% upper caste women expressed interest in intercaste matches
Thoughts behind it
The marriage market, like any other market, works on principle of exchange. To get
something, one has to offer something too.
Women approached marriage with a view to upgrade either economic status or caste
status.
Middle class upper caste woman would consider marrying a wealthier lower caste man
(Trade of castestatus)
Lower caste woman from wealthy family would consider marrying middle class higher
caste man (Trade of class status)
Wealthier Dalit women, in comparison to lower middle and middle class Dalitwomen,
were more likely to respond to other two out-of-caste matrimonial interests
Notable: Although an expression of matrimonial interest does not consequentially translate
into marriage, yet considering the inter-caste match is transformative.
Discrimination persists
For upward mobility, significant number of people consider crossing caste boundaries in
marriage.
Yet, stigma associated with Dalits ensures discrimination against them
Upper caste women: For an identical profile of a groom, 52.1% showed interest for
backward caste match and 28.7% for a Dalitmatch.
Future?
By 2030, 40 per cent of Indians are predicted to live in urban areas
Urban areashave relative anonymity of individuals identity
This doesnt allow strict observation and enforcement of rules of purity or pollution
Fewer activities are related caste identity
The urban middle class which was dominated by upper caste has now become more
diverse with entry of backward castes and Dalits.
Thus, Urbanisation has high probability of undermining caste
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Marriage market
Matrimonial ads published in the national dailies belonging to backward castes and
Dalits- 1970- 1.5% 2010- 10%
Networks:In cities, middle class people shift from family and caste network to friends
and professional networks.
Reliance on technology: Though online matrimonial websites bundle caste with
personal profile, new dating apps are different from it.
Obstacles
Families run after such marriages with threat of humiliation, boycott and in extreme
cases, honour killing.
Caste based political parties and leaders may lose influence if intercaste marriages take
place. Thus they incite violence as well as threaten the boycott of entire family.
Role of State
State has to protect individuals freedom to marry
Few states have encouraged intercaste marriage by providingcash rewards or
preferential access to government programs to intercaste couples. (Rajasthan and
Haryana)
Public campaigns in favour of intercaste marriages will encourage such practice and also
slowly change peoples mind-set.
Caste based politics has to be policed.
Acting swiftly against instigators and propagators of honour killings will deter such
future practices.
Conclusion
Genetic studies: Before disappearing 1900 years ago, practice of intercaste marriages
was prevalent in Indian subcontinent.
Dr. B.R. Ambedkar had extensively propagated intercaste marriages. He observed
thatrules of caste and marriage were socially constructed, and what societies can build,
can also be undone.
Though caste fault lines remain strong in social and political arena, they are not set in
stone. Openness to intercaste marriages indicate silent and gradual transformation of
social behaviour.
1. Critically analyse if caste boundaries in urban areas are more blur than in rural areas.
2. Integrating Dalits into Hindu society without upsetting the caste system is a far cry from
Ambedkars call for annihilation of caste. Discuss. (HOT question)
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Refer:
BabasahebAmbedkar 125th Birth Anniversary
http://iasbaba.com/2016/04/iasbabas-daily-current-affairs-14th-april-2016/
Socio Economic and Caste Census (SECC) 2011 data
http://iasbaba.com/2015/07/iasbabas-daily-current-affairs-23th-july-2015/
TOPIC:
General Studies 2
arising out of their design and implementation
Issues relating to development and management of Social Sector or Services relating
to Health, Education, Human Resources.
Issues relating to poverty and hunger
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Inclusive growth and issues arising from it.
India needs a nutrition mission
What: Indias disappointing performance in combating nutrition issues is visible in The
Global Nutrition Report 2016. It includes:
Chronic malnutrition
Stunting (low weight for age)
Wasting (low weight for height)
Micronutrient deficiencies
over-weight
Indias track record in reducing the proportion of undernourished children in past decade
has been modest. And it lags in comparison with other countries having comparable socioeconomic indicators.
Stunting- Rank 114 out of 132 countries.
India- 38.7%, Germany- 1.3% and Chile- 1.8%, Bangladesh and Nepal rank marginally
higher than India
Wasting- Rank 120 out of 130 countries
India-15.1%, Australia-0%, Chile- 0.3% and South Sudan- 22.7% (130 rank)
Anaemia- women of reproductive age- Rank 170 out of 185 countries
India- 48.1%, Senegal- 57.5% (worst), US- 11.9% (best)
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Stopping the cycle of malnutrition

Undernutrition in India remains startlingly high despite noticeable reduction in stunting in
last decade.
Risk population:adolescent girls, women and children. And among them, Scheduled Castes
and Tribes are the worst off.
Reflects:deceptive economic and sociocultural deprivation prevalent in India.
United Nations Population Fund (UNFPA) report
50%of women in India are married before they turn 18, which is in violation of the law.
30% children born are low weight because- poor nutritional status of adolescent girls,
combined with child marriage and multiple pregnancies even before becoming an adult
Result:Approx. 7 million, potentially wasted and stunted, added to Indian population every
year!
Focus be on Health, nutrition and social status of children.
Of total population, adolescent girls and women should be a priority for India to be
healthy and break the inter-generational cycle of malnutrition
Undernutrition
among nearly 70 per cent of school-going children
Protein energy malnutrition and micronutrient deficiencies like iron deficiency anaemia
exists
It challenges the capacity for physical growth and cognitive development.
However, steady build-up of momentum around nutrition in past decadeis noticeable with
the setting up of
SUN (Scaling Up Nutrition) secretariat in the UN
World Health Assembly adoption (in 2012) of the 2025 global targets for maternal,
infant and young childrens nutrition
2015 Sustainable Development Goals which focus the ending of all forms of
malnutrition for all people by 2030
Indian states
In 2005, Maharashtra was the first State to launch a nutrition mission
Other 5 states followed- Madhya Pradesh, Uttar Pradesh, Odisha, Gujarat and Karnataka
Population covered- 300 million
Focus of all states: inter-sectoral coordination to improve child nutrition in the first 1000
days.
Nutrition schemes in India
Integrated Child Development Services (ICDS) in 1975
national coverage of the Mid-Day Meal Scheme (MDMS) in 1995
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The problem and solution framework are correctly identified. What lacks is targets or
financial commitments or concrete and specific programmes and processes to accomplish
this goal.
Systemic development is a long process to convert intent into action.It requires
Continuity
Consistency
excellence in execution
A measurement of process, output and outcome/impact metrics
Currently, there exists no structure for multi-sectoral coordination which is essential to
address the inter-generational and multifaceted nature of malnutrition.
Poor nutrition = Poor economics
There is an urgency to address underlying causes of malnutrition in India as
1. Economics is related to nutrition
World Bank: India loses 2-3 of its annual GDP due to lower productivity (malnutrition
being the underlying cause)
Economic Survey 2015-16:Some of the highest economic returns to public investment

in human capital in India lie in maternal and early-life health and nutrition interventions
Copenhagen Consensus:Identified several nutrition interventions as some of the most
high-yielding of all possible development assessments
2. Dream of India as global player in manufacturing is dependent on nutrition
One out of every three children is born underweight
Low level of productivity due to inability to realise full potential for physical growth and
cognitive development
Thus, Indias population dividend is turning out to be liability.
3. Humanity is related to nutrition
Art 47 of Constitution of India
Duty of the state to raise the level of nutrition and the standard of living and to
improve public health.
The state shall regard the raising of the level of nutrition and the standard of living of its
people and the improvement of public health as among its primary duties.
Positive factors
Programmes like Swachh Bharat, BetiBachao, BetiPadhao, etc. are important nutritionsensitive factors that address hygiene, sanitation and education.
India already has the infrastructure and mechanism for reaching people most at risk in
the nutrition-specific areas. Need is to revamp it and make more effective.
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Three priority structures

1. ICDS
For pregnant and nursing mothers and children under the age of six
The intent to revamp the ICDS has been recently announced
Streamline the work in the 1.34 million anganwadi centres by investing in training the
2.5 million workers and helpers at these centres
Standardise the nutrition component of the supplementary food offered
Focus on the overall dissemination of information and education to pregnant and
nursing mothers on healthy eating habits, hygiene and sanitation, etc.
CARE India has recently created a job aid which is a piloted mobile application that
helps anganwadi workers plan, schedule and better coordinate their work.
2. MDMS
Directly feeds approximately 120 million schoolchildren every day
A large number of children suffer from both insufficient calories and inadequate
micronutrients.
Single-minded focus on nutrition in addition to food will make a critical difference.
Focus on children is targeted, continued and regular which makes impact of MDMS
measurable over period of time.
Accomplished by: addition of micronutrients to cooked food or by adding universally
liked and accepted products such as milk, biscuits, etc. fortified with micronutrients as a
mid-morning or afternoon snack.
Global evidence: Large-scale food fortification is one of the best ways to address
micronutrient deficiency.The standards of the cooked meal could be changed to using
only fortified flour, fortified oil and iodised salt
Food fortification is the practice of adding essential vitamins and minerals (e.g. iron, vitamin
A, folic acid, iodine) to staple foods to improve their nutritional content.
3. PDS
Makes available subsistence rations to above and below poverty line families.
These are excellent platforms for public-private partnerships to improve the level and
quality of service. CSR intervention in these areas can be effective.
What to do next?
Immediate steps to be taken should include
Creating Nutrition Mission to arrange work both in nutrition-specific and nutritionsensitive areas so that the impact from them can be embedded in productive outcomes
Creating a Nutrition Secretariat as part of the PMO. Responsibility will be to ensure
multi-sectoral alignment on priorities, sequencing and timelines.
Making the nodal Ministries accountable for revamping the ICDS, MDM, PDS with clear
goals, timelines and resources. Open it for PPP and CSRindulgence
Extening large-scale food fortification beyond salt to other staples like flour, oil, dairy,
etc.
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Simplifying nutrition in behavioural terms by investing in information dissemination and

education about good nutrition practices, need of a diverse diet, importance of
deworming, breastfeeding, hygiene and sanitation, etc.
Evidence from other countries has shown thatcountries which have adopted a multisectoral framework, the results are tangible and specific. India needs demographic dividend
and not a demographic disaster.
1. A country will truly prosper when its economic capital and human capital are at par.
Critically examine.
Related Articles
India: Epicentre of Global Malnutrition
http://iasbaba.com/2015/10/iasbabas-daily-current-affairs-27th-october-2015/
Battle with many corners
http://indianexpress.com/article/opinion/columns/battle-with-many-corners/

Inclusive growth and issues arising from it
Effects of liberalization on the economy, changes in industrial policy and their effects
on industrial growth
It never trickles down
The 1991 reforms
As commonly believed, the reforms were not a retreat of the state in favour of the
market, but a change in the nature of the state.
It was more of a spontaneous outcome of the introduction of the reforms themselves
rather than a conscious decision.
Reforms entailed the opening of the economy to freer cross-border flows of goods and
capital, including of finance which is highly mobile and whose sudden outflow could
induce a financial crisis
Thus, the state policy had to be in conformity with the confidence of the international
financiers under this reform regime to ensure that the economy remains intact.
Result:As earlier when the state used to promote capitalist development along with
protecting traditional small producers, including peasantry and workers against capital
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exploitation, the 1991 reforms tilted the states concern towards the interests of
globalised capital. The domestic corporate financial oligarchy also aligned with it.
Withdrawal of state support
The traditional petty production, including peasant agriculturesuffered crisisdue to
withdrawal of state support
This led to increased agricultural input prices due to reduced government subsidies
(Fiscal deficit had to be maintained by not raising taxes on rich to ultimately calm the
financial capital flow)
The market intervention role of Commodity Boards was brought to an end as the
government withdrew price supports for various crops
The nationalised banks were allowed to default on providing agricultural credit. This
forced the peasant to depend on private moneylenders who chargedexorbitant high
rates.
Public extension services were winded up (Extension is a process of working with rural
people in order to improve their livelihoods. This involves helping farmers to improve the
productivity of their agriculture and also developing their abilities to direct their own
future development.)
Insulation to agriculture from world market price fluctuation provided in form of tariff
and quantitative restrictions were removed
Budgetary cuts in agriculture and irrigation investments
Poor state of agricultural research and development in public institutions
Agribusiness was given permission to deal with peasants in a direct, unmediated and
unregulated way. This increased chances of peasant exploitation
The state also slowly retreated away from providing essential services like quality
education and health care by allocating less financial aid.
Impact on peasants
Adversely affected their income
Handicapped profitability of peasant agriculture
Reduced its growth
Brought acute distress to countryside, economically, physically (health wise), mentally
(agri-stress and suicide) and more
The same is the case with fishermen, artisans, craftsmen, weavers and others.
Income squeeze
Taking over of peasants land for infrastructure and industrial projects, often at
throwaway prices and against their wishes
Even when consent is obtained, not all are consulted who are dependent on land
With smart city as an ambitious government programme, these actions are set to gain
momentum
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This would have been not an issue if jobs were available to peasants who migrated to
urban areas.
Sadly, the scale of job creation has been little despite high GDP growth.
As Karl Marx says- Primitive accumulation of capital is rampant not only in flow terms
(income squeeze) but also in stock terms (asset dispossession).
Primitive Accumulation of capital= a process by which large swaths of the population are
violently divorced from their traditional means of self-sufficiency.
A weakened workforce
Joblessness has variety of forms which misleads the picture of unemployment scenario.
Casual employment
Intermittent employment
Part-time employment
Disguised unemployment (camouflaged often as petty entrepreneurship)
National Sample Survey
The usual status employment grew at 0.8% per annumduring 2004-05 to 2009-10, a
period of high GDP growth.
This was below the natural rate of growth of the workforce itself, even when the jobseeking displaced peasants are not included.
Result
Proliferation of risky and insecure employment
A burgeoning lumpenproletariat-the unorganized and unpolitical lower orders of society
who are not interested in revolutionary advancement.
Weakening of bargaining powereven of the unionised workers
Hence, compression of the per capita real income of the working people as a whole
(agricultural labourers, traditional petty producers, and non-white-collar workers.)
Statistics supplement the results
Rural population- food intake below 2,200 calories per person per day= 58.5% (93-94)
and 68% (2011-12)
Urban population- food intake below 2,100 calories per person per day= 57% (93-94)
and 65% (2011-12)
Decoding the results
It is often claimed that increase in calorie deprivation doesnot necessarily mean
worsening economic status.
It could arise for other reasons such as changing tastes, greater health consciousness,
reduced physical work effort, or greater emphasis on childrens education and health
care.
However it is difficult to explain that Reduced calorie intake occurred because of other reasons even when real incomes
of the working people were rising andalso, an increase in calorie intake when real
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incomes were also rising, such as between 2009-10 (a poor crop year) and 2011-12
(a good crop year).
Thus, the reasonable explanation for declining calorie intake is a decline in real income of
the working people that is, income deflated by a price index that takes into account the
effect of privatisation of essential services.
Middle class gains
The reforms thus brought primitive accumulation of capital without the creation of
adequate employment opportunities to absorb those who are displaced by it.
It caused worsening of the conditions of the working people as a whole.
The other side of reforms
The growth of the financial sector (financialisation)
Growth of service sector outsourcing from developed countries owing to the
comparatively lower wages prevalent domestically.
Increase in relative incomes of middle class
Thus, middle class emerged in support of the development paradigm of the reform
regime
However, the global financial crisis still persists and its end is a long due in future. This will
remove the sheen of high growth benefits from minds of middle class and then support a
development strategy which would entail to interests of working class and surpass the neoliberal capitalism.
The infamous trickle-down
What is it: Trickle-down theory is an idea that tax breaks or other economic benefits
provided to businesses and upper income levels will benefit poorer members of society
by improving the economy as a whole.
However, it has been globally experienced and proven that cutting tax rates of the
richest does not lead to economic growth, income growth, wage growth or job creation.
Thus, trickle down never happens.
1. Targeted approach and not Trickle-down theory will aid and assist development of
underprivileged and exploited population of India. Examine.
Refer:
It doesnt trickle down
http://indianexpress.com/article/opinion/columns/facebook-free-basic-net-neutrality-traiitdoesnt-trickle-down/
Punjab: A case study in agricultural and economic mismanagement in India
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TOPIC:
General studies 1
Post-independence consolidation and reorganization within the country.

Working of Indian Democracy towards Social empowerment, communalism,
regionalism & secularism.
General studies 2

Welfare schemes for vulnerable sections of the population
Assessing the workings of Indian Democracy

No attention given to the workings of Indian democracy
Unlike the Indian economy, which receives periodic attention and reforms (mostly
during critical moments defined by food shortages and foreign exchange outages),
the workings of Indian democracy have not received a single one.
This reflects that there are no desires to expand the horizons of the workings of
democracy.
The neglect is clearly visible in every angle from which the country has been approached, by
the observers located both within and without its society.
The rulers of the western world often criticize and rate Indias conditions poorly,
especially for its deviance from the apparently superior norms of a free-market
architecture.
However, Indias nationalist elite in contrast to above arguments traces the causes
and effects that India face today to western hegemony (leadership or dominance).
But both lose the narrative by refusing to see that its condition is related to the failings of
its democracy, which in one dimension has remained more or less unchanged since 1947.
This dimension is that the majority of the population has been left with weak
capabilities.
Capabilities are what enable individuals to pursue the lives that they value. This, Nobel
laureate Amartya Sen has suggested, is true freedom and should therefore be the focus of
all developmental effort.
People are incapable and unfree after Independence
The idea of development should not be narrowed down to economistic or political
definitions rather it should expand its horizon to include building capabilities.
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It is irrelevant to it whether we have more or less of the state or the market or whether
we insert socialist and secular into the Constitution so long as large sections of our
people are unfree in the sense that they cannot lead lives that they value.
Jawaharlal Nehru expressed in his famous speech - "He sees Indian Independence as an
opportunity to build a prosperous, democratic and progressive nation and to create social,
economic and political institutions which will ensure justice and fullness of life to every man
and woman.
B.R. Ambedkar had defined democracy as a means to bring about a significant change in
the living conditions of the depressed without resorting to bloodshed.
Concerns:
However, Indian democracy has failed to fulfill the vision and expectations of these Indias
founding fathers. As a matter of fact, it has done far worse.
In the past year it appears to have added heightened violence towards the
marginalised to its sedentary character.
With recent one being the incident in Gujarat, where 4 Dalits were stripped in full
public view, beaten up for skinning dead cow.
By assaulting them for undertaking it, not only has their dignity been denied but
their livelihood snatched away. In any civilised society the perpetrators of this crime
would not just be grasped by the long arm of the law but publicly shamed.
Gujarat is of course only one of the sites of violence against Dalits. It is important to
recognise that it has been widespread across northern India and not absent from the
south either, with Tamil Nadu featuring prominently. It is also important to recognise
that acts of violence against Dalits are not of recent origin. Their oppression is
systemic and deeply rooted in India.
Even the states that are long-ruled by parties with leadership drawn from the middle
castes have witnessed violence against the Dalits for some time. When in power,
middle caste-based parties have replaced their invective towards the top of the
caste pyramid with suppression of those at its bottom.
Caste still very much matters to Indian citizens even in the modern world, though one must
point out that different groups of citizens have different reasons for maintaining the system
of caste.
The upper castes want to keep caste alive to oppress the lower castes thereby maintaining
their domination. It is very interesting to note that the lower caste groups, who are
supposed to hate the caste system, also want to use their caste identity to gain benefits in
the corridors of power and politics and, at the same time, they want to put a stop to the
caste oppression imposed upon them by the upper castes. It is an ironical and interesting
situation of the Indian society in modern India.
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So what can we do now?

1. The task should be to shape the Indian democracy. Its goal must now be redirected
towards human development while ensuring the security of all vulnerable groups.
2. This should be done in harmony with growing a strong economy. In fact, a strong
economy, including a vigorous market, is one element in furthering development as the
expansion of freedoms.
3. The empowerment of the marginalised in a society can come about only via direct
public action to build their capabilities.
4. A genuine commitment to socialism would help here.
5. Reorienting public policy (as explained below)
The roots of democracy lie not in the form of Government, Parliamentary or otherwise. A
democracy is more than a form of government. It is primarily a mode of associated living.
The roots of democracy are to be searched in the social relationship, in the terms of
associated life between people who form a society. -- Dr. Ambedkar
Reorienting public policy
India today hosts the worlds largest number of the poorly educated and prone to poor
health, a development disaster in spite of being the worlds third-largest economy in
purchasing power terms.
Quarter century has been spent focussing on Indias economic architecture in the name of
economic reforms, but still majority of Indians is still below poverty line and think twice to
travel in third tier AC on the Indian Railways.
It would be profitable if the government now devote the next decade to mounting
an assault on human deprivation.
The development of the capabilities of Indias women, Dalits and deprived should
merit the first draft of attention and resources thus expended.
For a democracy to be complete, something more than just focus on the individual is
necessary as members of a democracy must engage with one another.
India has failed to nurture individual and collective capabilities. There has been far
too little effort in public policy to create spaces where citizens interact freely and
peacefully.
Therefore, public policy should engineer spaces where Indians can meet on the basis of a
participatory parity. Widespread public services from schools and hospitals to parks and
crematoria are one way to bring individuals together as they struggle from birth to death in
this country. Repeated interaction in public spaces would make us realise our common
humanity and enable us to see any residual identity for what it really is.
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Conclusion:
The need of the hour is that we, Indians, regardless of caste, ethnic religious and regional
identities, should aim at creating an egalitarian society for the future of India and develop
some universal values upon which the edifice of the idea of India can stand with pride and
glory.
"A persons worth is determined by his knowledge and capacity and the inherent qualities
which mark his conduct in life.
The four fold division of castes says the Creator in the Bhagavad Gita, was created by me
according to the apportionment of qualities and duties. Not birth, not sacrament, not
learning, makes one dvija (twice-born), but righteous conduct alone causes it.
Be he a Sudra or a member of any other class, says the Lord in the same epic, he that
serves as a raft on a raftlesscurrent, or helps to ford the unfordable, deserves respect in
every way.
The spirit of democracy is not a mechanical thing to be adjusted by abolition of forms. It
requires change of heart. -- Mahatma Gandhi
Indian democracy has failed to fulfil the vision and expectations of the Indias founding
fathers. Do you agree with this view? Give arguments in favour of your answer.
Highlight with suitable examples why there is a need for periodic attention and review of
the workings of Indian democracy on the lines of Indian economy?
The empowerment of the marginalised in a society can come about only via direct public
action to build their capabilities. Do you agree? Critically examine the statement.
Essay: The spirit of democracy is not a mechanical thing to be adjusted by abolition of
forms. It requires change of heart.
Essay: "A persons worth is determined by his knowledge and capacity and the inherent
qualities which mark his conduct in life.
TOPIC:
General Studies 1
Capitalism, socialism etc.- their forms and effect on the society.
Social empowerment, regionalism & secularism.
General Studies 2
Issues relating to development and management of Social Sector/Services relating
to Health, Education, Human Resources.
Bridging gap between middle and median class
Indias poverty debate and huge increase in billionaires post 1991 economic reforms are
well known.
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However, not much has been known where middle class in this and how it has fared.
More than a class between rich and poor, it is more of a socio-economic construct.
Middle class and their self-perception
As per National Council of Applied Economic Research (NCAER), Indias middle class was
expected to be around 5-6% of the total population (2001-02)
Estimate based on Market Information Survey of Households
Included household with annual income in range of Rs. 2-10 lakh
In 2011-12, as per India Human Development Survey (IHDS)- done by NCAER + University
of Maryland- the share of middle class was just below 6% of the total population
The estimate household annual income was in range of Rs. 2.7-13.4lakh
The price change and decline in average family size were taken into consideration
to determine middle class household income range.
Wholesale Price Index used to make price adjustments
Middle class and median class
The NCAER survey fixed Rs. 22000 per month as the minimum criteria to be a middle
class. (average family of four)
See above the estimated household annual income range starts from Rs. 2.7 lakh
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In this survey, 49% of the respondents having monthly income of Rs.5000 identified
themselves as middle class
The NCAER survey gave only three choices to respondents- rich, poor or middle class
Lok survey- 2014
It is a series of surveys to study the changing social and political attitudes in India (done
by University of Pennsylvania)
Of a sample size more than 62,000, 49% of the respondents identified themselves as
middle class
It included even those in the lowest of the five designated income groups of the
sample
The middle class notion
More than 60% respondents of Lok Survey identified themselves as middle class as
they were optimistic about increasing living standards in future even when at the given
point of time, they did not enjoy all material comforts.
On the other hand, the relatively rich have identified themselves as poor
IHDS 2011-12 survey showed that even within the richest 20% of urban households,
ranked by per capita income, more than 8% of them identified themselves as poor.
Thus, middle class is more of a socio-economic construct than a statistical category. It
is more about self-perception than reflection of material well-being
Median is not middle
Consumer durables
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Though almost 50% of Indians aspire to be a part of middle class, the reality differs
The consumer durables normally associated with the middle class is still a luxury for
median class
From IHDS data, five consumer goods are chosen that are expected to be owned by the
middle class
Any motor vehicle, TV, computer or laptop, cooler or AC and refrigerator.
At all-India level, rural and urban areas combined, the median household owned only
one of the five assets. (2011-12)
In 90% of the cases, it is the TV
At urban level, the median household owned two of the five assets
Most cases were TV and refrigerator
A household possessing all the five of the mentioned assets, it is among the 2.75% of all
household in India.
Urban India has 7% of such households, hence, more egalitarian
Thus, the asset ownership reflects income levels
Households having all five consumer goods in urban India is 6 times more likely to be
among the top income quartile than being in the median quartile.
Employment
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Usual Principal Status is considered for the occupation for the NSSO survey (2011-12)
UPS= status of activity on which a person has spent relatively longer time of the
preceding 365 days prior to the date of survey. (more than 180 days)
Median class is relatively engaged more in manual work than the white-collar jobs.
White collar job= performed in an office, cubicle, or other administrative setting.
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Only 31% of the working age men of the urban median class is engaged in white collar
jobs like managers, professionals and technicians.
Still 47% are engaged in work arenas like metal, machinery and related trades
workers, machine operators, drivers, labourers in construction or manufacturing, etc.
which is exactly not a white-collar job
From urban median class to urban rich class, the picture changes drastically.
74% working age men are employed in white-collar jobs,
Only 10% of working age men from rich class are involved in non white-collar jobs
like plant workers
Less than 30% of the median class working age males of the urban areas had any
written job contract
It included salaried or wage employment, whether regular or casual
In contrast to it, 60% rich class working age males of the urban areas had a written job
contract
The top 1% urban working age males, who were not self-employed had a written job
contract in more than 70% cases.
Thus, Prima facie, the occupation structure for the three different urban classes suggests
that
It is the rich and the super-rich together constituting the top 10% of population,
whose occupation structure more closely matches our established notions of what
constitutes the middle class, rather than the median 20%.
In rural occupation, manual work dominates for all classes, though there are some
differences
30% of the median rural class work as either agricultural labourers (excluding farmers
who worked on own land) or as construction or industrial labourers.
However, only 10% of rich rural class are engaged as agricultural labourers or industrial
labourers.
New middle class, Old social inequalities

The actual middle class is not only economically but socially also skewed.
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The richest 10% income class who have income levels to be qualified as middle class is
almostentirely dominated by upper caste in urban areas.
As per NSSO, upper caste (excluding Muslims) constituted 30% of the households in
overall urban India
But, top 1% class of urban India has 73% households by upper caste
Thus, social inequality is present in almost all indicators of economic well-being in India
In a recent Oxford University Press blog, two professors from Indiamentioned that
middle class might perpetuate social inequalities than eradicating it.
Even when the rise of middle class transforms the way people think, behave and relate to
each other, the process does not do away with inequalities of caste and community. Those
trying to move up in the new social and economic order use their available resources and
networks, including those of caste and kinship to stabilize and improve their positions in the
emerging social order, with a new framework of inequality,
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Is there a solution?
Yes, EDUCATION
The notion of an aspirational and upwardly mobile middle class is not just a chimera.
Education is a great unifier.
An overwhelming large section of the population has woke up to the importance of
education, irrespective of socio-economic equalities
In contrast to asset ownership or employment categories, there is little gap in school
enrolment levels between various incomes classes
However, the quality of public education matters as poorer sections go to
government schools
Conclusion
The younger generation needs to be educated if the Indias median class wants to reach
themiddle class income levels.
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Education will clearly determine whether or not India moves up from its current status
of a lower middle income nation to a middle income nation.

1. The Indian middle class is significantly different from its counterparts in other regions of
the world. Do you agree? What are those attributes that impart uniqueness to the middle
class in India? Discuss (TLP 2015)
Related articles:
1991 is history: Where do we go now?
http://www.livemint.com/Opinion/rFnp5HBiv7YgCE6DDQVpkM/1991-is-history-Where-dowe-go-now.html
TOPIC:
General Studies 2
Role of ICT - Important aspects of governance, transparency and accountability, egovernance- applications and models
General Studies 3
Information and communications technology (ICT) - developments and their

applications and effects in everyday life
Awareness in the fields of IT, ICT and bridging the digital divide
Bridging the digital divide

Importance of ICT
Information and communications technology (ICT) has played an increasingly important role
in promoting economic and social development, such as
enhancing productivity,
facilitating trade,
creating quality jobs,
providing ICT-based services such as e-health and e-learning, and
improving governance.
We can assess a countrys societal development by considering

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the extent to which there has been penetration of information and communications
technology (ICT) especially through the Internet and mobile phone subscriptions
through the degree of press freedom given to the journalists, news organisations
and citizens of a country
or
Access to ICT also gains relevance in the newly adopted Sustainable Development Goals
(SDGs) for 2030 of the United Nations, with greater relevance for the least developed
countries to be able to provide universal and affordable access to the Internet to its
people.
Over-performers, underperformers
Though ICT has promoted development across various dimensions of society from
connecting individuals to spreading across businesses, and governments, there exists a
digital divide in its accessibility between the high income and low income countries.
Data from World Development Report 2016 shows
High income countries typically have greater penetration of digital technology as

compared to less developed countries.
While in high income countries such as Finland, Norway, Denmark, Netherlands and
Sweden, over 90 per cent of the population is using the Internet, in lower income
countries such as Afghanistan, Sub-Saharan African countries such as Central African
Republic, Ethiopia, Tanzania, and Malawi, less than 10 per cent of the population
uses it.
Similarly, with regard to the extent of mobile penetration, Sub-Saharan Africa has
the lowest mobile penetration of 73 per cent, compared to 98 per cent penetration
in high income countries
From the above stats, we can arrive at a conclusion that there is a high degree of
correlation between the economic progress of a country and its access to ICT. However, this
is not true.
There are countries which have over-performed relative to their economic peers in
providing digital technology.
One such country worth mentioning here is Costa Rica, which is the worlds top overperformer, known for its communication technology and also press freedom.
Similarly, there are countries which have underperformedamong their income peers on
access to information and communication.
For instance, Cuba, which has the lowest number of mobile phone subscriptions and
lowest press freedom index, has been the most underperforming country on access to
information and communication.
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Further, two of the worlds most populated countries India and China are also
among the few underperformers on access to ICT.
India and China are among the underperformers on access to ICT
India, which has been appreciated globally for providing IT services, faces a huge digital
divide, having a relatively low percentage of population with access to the Internet.
In 2014, it had only about 18 people per 100 using the Internet (World Bank Data).
China on the other hand has a very weak press freedom index, resulting in its overall
low performance on access to ICT.
Apart from the digital divide existing between countries, there also exists a gap in
adoption of digital technologyacross different demographic groups within the country.
Increasing access to ICT

To be able to promote greater social progress in the world, it is imperative to increase
access to information and communication technology universally.
With the world presently scoring 62.99 on a scale of 100 in access to ICT, higher overall
social progress could be achieved by overcoming the digital divides that exist between the
countries regardless of their level of economic progress.
1. One of the ways to bring about greater penetration of digital technology in society is
to make it more affordable.
2. This could be realised through support from multilateral organisations to the
underperforming countries by helping them build their communication
infrastructure.
3. Promoting greater market competition in Internet provision
4. Encouraging public-private partnerships in building ICT infrastructure could increase
the affordability of digital technology and thereby improve access to it.
5. Further, digital divides could be bridged to an extent by bringing greater awareness
among citizens about the use of digital technology which could help in reducing
information inequality in society.
6. It is also essential to build up the corresponding human capital necessary for making
optimal use of the technology.
Conclusion:
ICT proves to play a fundamental role in the improvement of education, the battle against
climate change and even the progress on gender equality. Therefore, the significant digital
dividesneed to be addressed through strengthened enabling policy environments and
international cooperation to improve affordability, access, education, capacity-building,
multilingualism, cultural preservation, investment and appropriate financing.
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1. India is among the underperformers on access to Information and Communications
Technology. Highlight the causes for this underperformance and also discuss why there
exists a gap in adoption of digital technology across different demographic groups?
2. Why are science, technology and innovation essential for the achievement of the
economic and social development of our country?
3. Highlight the importance of Information and Communications Technology to India and
also suggest strategies to increase its access to ICT.
TOPIC:
General Studies 2
Issues relating to development and management of Social Sector/Services relating to
Health, Education, Human Resources.
General Studies 3
Science and Technology- developments and their applications and effects in everyday
life
Basics of cyber security
Awareness in the fields of IT
E-Health initiative
A health branch of Digital India project to provide quality health care to the citizens
through use of ICT
E-health seeks transparency in health care delivery, elimination of structural opacity and
bypassing of multiple intermediaries
It also aims to connect specialized health professionals with the patients in far flung
area, creating e-accessibility of services
Need: centralised information databases will allow health and research experts to
engage in disease surveillance and better understanding of state of public health of the
nation.
E-health threats
Cyber threat is a real menace of the digitised world.
Data theft and hacking has become a routine
The threat of electronic data misuse is on the rise with sensitive data having limited or
no protection
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In such scenario, when health care is being encouraged for digitisation, along with its
advantage, it is necessary to acknowledge threats and take required precautions.
Medical data
It is sensitive in nature and contains details such as bodily functions, physical anatomy,
sexuality, a history of substance abuse, psychological issues or any other diagnosis or
prognosis.
Patients expect full anonymity of their medical health from the third parties or even
close relatives.
The patients may share the chosen information for self-benefit and not to reveal
entirely
External Fallout of leak: social isolation or discrimination
Internal Fallout of leak: Patients might not reveal true or complete information, leading
to inaccurate medical treatment
Observed inthe west:
Non-physicians improperly viewing e-health data of celebrities without any
legitimate reason
Health records sold on e-bay.
Stealing medical records from computer and laptops
Medical info for sale: As per report, medical information has more worth than financial
information as they can be misused to buy drugs and medical equipment for resale and
also making false insurance claims.
Digitalising health records
In last few years, Indian government has taken initiatives to digitise patient records
The benefits include
Streamlining interaction between doctors and patients
More accurate diagnosis and therapy due to complete medical history availability
A completer repository of up-to-date health data which will avoid repeated medical
investigations and reducing paperwork
The government is in process to establish Integrated Health Information Platform
(IHIP) to ensure the interoperability of health records in any corner of the country
To develop IHIP, a National e-Health Authority (NeHA) shall be developed.
It will encourage adoption and promotion of e-health standards
It will enforce the laws and regulations relating to the privacy and security of patient
health information and records.
The process has already begun to update infrastructure in district and sub-district
hospitals under the National Health Mission
In 2013, government had notified the Electronic Health Record Standards (EHRS) to
introduce a uniform system for the maintenance of Electronic Medical
Records/Electronic Health Records by healthcare providers in the country. It included
standards for interoperability
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guidelines for hardware

networking and connectivity
specifications on data ownership of electronic health records
data privacy and security.
Recently, attempts have been made to introduce new forms technology in EHRS and
upgrade it with international best practices.
Hence, EHRSis being revised and opened for public comments
Changes required in EHRS

Drafting of EHRS
Unsatisfactory drafting of the standards. Expert opinion, involvment of cyber security
experts and suggestions of all other stakeholders should be taken into consideration
for a sturdy EHRS.
Legal issues need to be addressed pertaining to revised standards in light of
prevalent international best practices
Consent
At present, sensitive information can be collected without any identified purpose or
consent of the patient.
Only when the data of the person is used for a specific purpose, the patients
consent is taken.
A general consent of the next of relative of the patient is considered sufficient when
the data is used in treatment, payments and other healthcare operations
What is required: a notice and consent requirement before or at time of collection
of sensitive data like passwords, financial information, physical, psychological and
mental health condition, sexual orientation and biometric information of the patient.
Stricter data regulation
More stringent standards required against the present status of availability of all
recorded health data to health care providers on required on demand basis.
Revocation of data
As per current standards, a patient cannot ask to delete data once recorded.
It is recorded for his lifetime and preserved after three years of his death
What is required: a provision for revocation of consent where the patient has the
right to amend the data on grounds other than correcting errors.
Data leak
In case of privacy breach, the patient is not informed about it.
The health care providers are not accountable for such security lapse which may
harm the patient mentally, socially or physically.
What is required: A privacy officer to notify the patient within a specified time and
also provide the course of remedy available.
Conclusion
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Need for a robust EHRS

The EHRS is expected to be implemented by the end of 2016.
Need is to rectify the loopholes in standards
Improving the IT Act
EHRS will be prevailed by the Information Technology Act, 2000 (IT Act), and
consequently the safeguards it incorporates.
However, the IT Act and its relevant rules have been subject to criticism for being vague
and unfocussed.
The government is expected to mitigate the IT Act flaws by strengthening EHRS
Giving teeth to NeHA
It is a centralized electronic healthcare record repository which will contain
comprehensive health information of all citizens
NeHA will deal with issues relating to privacy and confidentiality of patients e-health
records.
For a sustainable, effective and enforceable EHRS, NeHA has to be vested with sufficient
power to implement and enforce it.
Hence, in light of digitisation security concerns, a nationwide system should be
implemented only when adequate safeguards are in place to ensure privacy of patients and
data security.
1. Security of medical records is essential to maintain the good health of the country.Do
you agree? Support with your reasons.
TOPIC :General Studies 2

Social Issue Child labour and related issues
A law against children?

Child Labour (Prohibition and Regulation) Act
Parliament has passed the Child Labour (Prohibition and Regulation) Amendment Bill,
2016. The bill was first passed in Rajya Sabha and later in Lok Sabha during Monsoon
session of Parliament.
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It seeks to amend the Child Labour (Prohibition and Regulation) Act, 1986 to widen the
scope of the law against child labour and stricter punishments for violations.
But will it?
Currently, children under the age of 14 are banned only from working in hazardous
industries. There was no bar on the employment of children between 14 and 18 years.
Now, the proposed amendments prohibit all work, hazardous or otherwise, for children
under 14, who now also enjoy the constitutional right to free and compulsory education.
And for adolescents between 14 and 18 years, whose labour was entirely lawful until
now, the law prohibits their employment in work scheduled as hazardous.
It makes child labour a cognizable offence attracting a jail term of up to two years and
penalty up to fifty thousand rupees.
The Bill has a provision of creating Rehabilitation Fund has also been made for the
rehabilitation of children.
Until here, the amendments made seem good and meant to strengthen legislative
framework that prohibits children from employment.
However, on closer scrutiny, the reality of what is being offered is the reverse of what
appears on paper.
Amendments proposed
1. Ban on hazardous adolescent work drastically reduced to three
Initially 83 works or activities were identified as hazardous and were banned for
children under the age of 14. But now this number has been reduced from 83 to only
3.
I.e. apart from mining and explosives, the law only prohibits processes deemed
hazardous under the Factories Act 1948.
In other words, the amended law prohibits only that child work which is considered
hazardous for adult workers, without recognising the specific vulnerabilities of
children.
2. Permits children below 14 years to work in non-hazardous family enterprises
The amended law permits even children under 14 years to now work in nonhazardous family enterprises after school hours and during vacations.
The family is defined to include not just the childs parents and siblings, but also
siblings of the childs parents. And a family enterprise includes any work, profession
or business in which any family member works along with other persons.
In effect, this proviso accomplishes the very opposite of what it claims to do. Instead
of ending child labour, it actually makes lawful once again a large part of child work
that was earlier unlawful.
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It is estimated that around 80 per cent of child labour is in work with family
members. This is in farms, forests, home-based work such as bidi rolling, carpet
weaving, making of bangles and handicrafts, home-based assembly tasks, domestic
work, eateries, roadside garages, and street vending.
The amended act legalises the bulk of child labour while claiming to do the opposite.
What the government has missed?
Under the garb of family-run enterprises, children will also be allowed to work in
industries like zari, bangle and carpet making, beedi making, brick kilns, diamond
cutting, even scavenging.
The truth is that a number of these industries rely on the small nimble fingers of children
and perpetuate a system that thrives on bonded labour, or at best very poor wages.
The government argues that these amendments are being made in response to the
socio-economic realities of the country and to allow children to learn traditional crafts
after school hours.
A sobering study points out that while combining school and work is a reality for poor
children in India, the likelihood of children who work for over 3hours dropping out of
school is estimated to be as high as 70%.
In the country where the traffickers passes on as a Mama (uncle) or a Mausi (aunt),
where is the question of state actually being able to monitor the number of hours a child
actually works, even if he is actually working in the family enterprise?
Once again it will be the girl child who will be the 1 st to be pulled out of school and put
into the workforce, as will children from economically weaker section and marginalized
section of society the very children most at risk and whom the Act is largely designed
to protect.
Not only will these amendments not help eliminate child labour, but will also in all
likelihood, deny our children their rights under the RTE Act, possibly creating the perfect
preconditions for some of them to take to juvenile crime.
Conclusion:
The argument that has long held sway is that child labour, however unfortunate, is
inevitable as long as households remained poor. Only after parents escape poverty will
their children be able to enter school. What these claims ignore is that the reverse is far
more true. That child labour is indeed a major cause of persisting poverty. That if a child
is trapped in labour instead of being able to attend fully to her schooling, she will never
be able to escape the poverty of her parents. The child of a sanitation worker, ragpicker, domestic worker or casual labourer is likely to be trapped in the professions of
her parents unless she is able to access quality education.
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We should not be the generation that will preside over a system when the state dropped
the ball and our children and we pay the price for it, under the garb of doing right for
them.
Economic development, investment, women and child welfare and job creation should
be given their rightful place in budgetary allocation. Amidst the furore over the recent
juvenile crimes and release we should be able to think of such positive steps so that
another child is not turned into a criminal because of avoidable circumstances.

1. Critically analyse recent amendments made to Indias child labour law.
2. Do you think the existing legal and institutional support is adequate to end the menace
of child labour in India. Critically comment.
TOPIC:
General Studies 2
General Studies 3
Conservation, environmental pollution and degradation, environmental impact
assessment
Disaster and disaster management.
Science and Technology- developments and their applications and effects in everyday
life
Kovvada Nuclear Plant, Andhra Pradesh
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What?
As part of the Indo-US nuclear deal signed almost a decade ago, India had offered GE
and Westinghouse one site each to set up six units of 1000 MWe.
Government in 2012 demarcated Kovvada land in Andhra Pradesh for acquisition to
build nuclear power plant.
This project is transferred from Gujarat. Westinghouse was given to Mithivirdi. But after
protests from local people and also environmental objections, it was shifted to Andhra
Pradesh
Nuclear hub in making
The Nuclear Power Corporation of India Limited (NPCIL) plans to install six nuclear
reactors, each generating 1,594 megawatts (MW), or 9,564 MW of power overall.
This will throw the normal life out of gear of the communities of Kovvada as they will
have to shift to other areas.
Andhra Pradesh has permitted for the establishment of string of nuclear plants along the
coastline- both U.S. and Russian-which will together generate 30,000 MW by 2031.
Political angle
In 2012, the protestors mainly included cadre of TDP workers, which was then in
opposition.
The opposition in parliament during the UPA rule also opposed the nuclear power plant
project.
However, now the centre and the Andhra Pradesh state government are in support of
the project.
It is not a political issue in the State as all parties have agreed to the project.
However, this time it is the CPI (M) which is mobilising the masses to rise against the
proposed plant at Kovvada.
Resistance in Kovvada:
Four years ago, Kovvada had experienced a small resistance movement.
The protestors, including the fisherfolk, anti-nuclear activists and leaders of political
parties raised slogans against establishment of the nuclear power plant as it would rob
them of their livelihood and expose to high dose of radiation
Relay hunger strike: It began in December 2012 where hundreds of people staged
protests and raised slogans against the power plant. it lasted for more than 150 days
With passage of time and no strong political backing, the movement lost its steam.
The fishermen are indulged in knitting long nylon and plastic threads into hammocks
because effluents from nearby pharma industries into the water bodies consumed their
fishes.
Activists cite four reasons for Destination Andhra Pradesh for nuclear plants
Warm rapport between leadership of central and state government
APs huge requirement for power as it shifts from agriculture to industrialisation
Ready availability of government land
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Virtually no resistance from people

Creating a dumpyard: it is feared by activists that Andhra Pradesh may become a
nuclear dumpyard as it is willingly accepting the nuclear power plant project, which is
opposed by people in states of West Bengal, Tamil Nadu, Maharashtra and even Gujarat
Ground Realities- A lookout

One view
People are ready to move out from the plant/nearby plant areas as they have lost their
primary livelihood already (fishing), persistent unavailability of drinking water, no
MGNREGA facility or any old age pension scheme
Theyawait a good package of Rs. 25 lakh for each family as a Relief and
Rehabilitationscheme before they hand over their lands
Another view
Vaddu, nuclear plant vaddu, Kovvadamakumuddu (No, we dont want nuclear plant, we
love our Kovvada) is a slogan one hears on the beach.
The 560 acres of coconut plantation is expected to be lost if the nuclear plant comes in
the vicinity.
Some people are doubting the officials who assure them best monetary package, when
their real concern is the information they have got about radiation effects that cause
serious damages to human, animal and environmental health.
Also, governments promise of employment opportunities is looked at with scepticism.
When graduates from their villages did not get job assurance from NPCIL or villagers
themselves found that they will be end up as coolies during the construction work and
will be out of employment once the plant is constructed, they doubt if the development
and prosperity is for them.
Land Acquisition
Plans to acquire 2000 acres of land- some fallow, some fertile- in Kovvada and abutting
areas (Pedda and ChinnaKovvada, Tekkali, Ramachandrapuram and Kotapalem)
This is expected to displace 3000 families
Governments rule:the state government has declared ban on land registration
In simple terms, no one can buy or sell lands, use it as collaterals to raise loan for
health emergencies or marriages.
Indirectly, the state government expects the people to leave the place themselves as
they cannot live in such areas, with such rules.
NPCIL has completed the survey of 1200 acres of government land after the project was
proposed four years ago
As per government, a big part of land is illegally occupied by the big landowners and
landless. This has encouraged government for a speedier process
However, there are holes in private land survey done by Revenue Department officials
where the farmers have alleged under-measurement of their land to reduce
compensation amount.
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Astonishingly, the state government says that it has no role in deciding anything relating
to such projects which come under the aegis of the Central government and NPCIL
As per a state government official, the Government of India has just asked the state
government to look for nuclear plant sites in Nellore and Prakasam districts
US will build nuclear plant at Kovvada, Russia is expected in Nellore/Prakasam.
Where is safety?
Vicinity of plant
Kovvada and surrounding villages have many families living within the exclusion
zone, i.e. the immediate vicinity of the nuclear plant upto 1.5km from the project
site where no one is expected to live.
There are 42 villages in the sterilised zone, upto 5 km where no development
should take place.
In the emergency zone which is upto 16km, there are 66 villages
Safety from nuclear issue is debatable as
Neither India has experience in handling new generation reactors- whether GEHitachis Economic simplified boiling water reactor or Westinghouses AP1000
Nor an independent and strong regulatory mechanism
The Atomic Regulatory Board works like an arm of DAE
Another issue is of Indian Civil Nuclear Liability law which has a low liability cap
The liability for Kovvada is put at Rs. 1600 crore for a plant whereas its cost is whopping
Rs. 4 lakh crore!!
Report findings
A US based institute called- Energy Economics and Financial Analysis revealed that GEHitachi and Westinghouse nuclear reactors were neither cost effective nor power
efficient along with a huge risk factor.
The first units of six nuclear reactors are not expected to produce electricity for the
grid before 2031
Indian Institute of Chemical Technology has estimated that tariffs for electricity in
Kovvada will be very high
First year tariffs will be in range of Rs. 19.8 to Rs. 32.77per KwH
Thus, it needs to be understood if it is worth to spend crores on nuclear power
whose share is just 0.58% in primary energy demand of India
NPCIL
When state government is acting in an unfriendly manner with ban on land registration,
the NPCIL is making all efforts to encourage people to accept the RR package which it
calls the best package ever.
It has deposited the first tranche of Rs.359 crore of the Rs.1,000 crore it has earmarked
as relief and rehabilitation (R&R) package with the Srikakulam District Collector.
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NPCIL officers believe that local people will cooperate once they get the assured
monetary reliefs.
On safety
The new age reactors require less land
The reactors have latest Generation-III plus pressurised water type which automatically
shuts down in case of an accident or an earthquake above 7.2 magnitude.
Once the reactors shut down, they cooling takes place on its own in the fortnight.
Human intervention is required after that only.
Survey support
National Geophysical Research Institute has conducted study which classified Kovvada as
low vulnerability of zone 2
Conclusion
Too much haste?
Former Union Energy Secretary has expressed displeasure over showing such rush in
building the nuclear plant in Kovvada
There has been no scientific bases on which the site is chosen.
Intense seismic activity was recorded by the Department of Atomic Energys own
agencies
Four fault lines run through the region
It is also a cyclone affected area
Yet, the site has been selected for building the nuclear plant. With such plans,
Fukushima disaster cant be ruled out
Exposure to radiations can lead to genetic disorders and cancer. The sufferings can last
till generations. And more importantly, though some people knew, most of them were
not made aware fully of such critical information
Chernobyl disaster: A WHO report mapping the impact of disaster after two decades
mentioned
Increased incidence of thyroid cancer
Doubling of leukaemia
Radiation cataract
Mental health issues
Though Social Impact Assessment has been on the agenda, the environmental clearance
for the project is yet to be sought.
20000 people are estimated to be displaced which belong to agriculture and fishing
families, affecting a total population of more than 6 lakhs.
What remains to be seen is if people will succumb to the temporary monetary bait or fight
for their human rights.
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INTERNATIONAL
India and its neighborhood - relations, Act East Policy

Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
interests, Indian diaspora.
Reviving Act East Policy

Introduction:
We have earlier covered many articles in regard to Indias engagement with Iran and how it
is working to spread its influence and presence in Central Asia.
We also know that India recently concluded the long-awaited contract with Iran, i.e.
to develop the Chabahar port, and
a related deal involving the establishment of a trilateral trade and economic
corridor
This engagement is possibly one of the most crucial steps which would not only enable
Indias access to Afghanistan, but also large parts of Central Asia which are rich in natural
resources.
It is significant also because India gets to contest Chinas influence in the region.
While theres been some headway in Central Asia, in the immediate neighbourhood things
have not been quite so impressive in terms of Indias investments.
Note: The below article briefs us about the present lethargic relations between India and its
immediate neighbouring countries (esp. South-East Asian countries) and makes a point why
India should increase its presence/relations in/with these countries.
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Why India should focus nearer East?

1. To bring back its Act East Policy back to life
In 2014, the Government announced the Act East Policy to bring more focus to this
region, in particular, to the CLMV nations.
However, no significant business engagements have resulted, and if this situation
continues, the Act East Policy may just appear as old wine in a new bottle.
2. To grab the economic opportunities these countries offer for India
Cambodia, Laos, Myanmar and Vietnam (CLMV) have all been exhibiting more than 5 per
cent GDP growth over the last few years, as the world economy struggled to breach the
2.5 per cent growth. Myanmar and Vietnam have led the pack, with 8.5 per cent and 6
per cent growth respectively.
The CLMV region has received a significant amount of FDI (increased from $13.3 billion
in 2011 to $38.7 billion in 2015), with Vietnam and Myanmar taking the large chunk of
this share.
Interestingly, both these countries, Vietnam and Myanmar, also offer tremendous
opportunities for India to access huge markets.
3. For duty-free and quota-free access
Myanmar, along with Cambodia and Laos, by virtue of being a Least Developed Country,
benefits from the most favourable regime available under the EUs Everything ButArms
scheme, providing duty-free and quota-free access to the EU for the export of products,
except arms and ammunition.
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On the other hand, the recently concluded Trans-Pacific Partnership (TPP) agreement to
which Vietnam is a signatory along with 11 other Pacific economies representing 26 per
cent of world trade, would provide almost duty-free access to goods produced in and
exported from Vietnam.
4. Indian companies can get direct access to the developing and developed markets of TPP
and ASEAN members
While Myanmar could act as the gateway to the entire Asean region apart from tapping
the significant local market, Indian companies in Vietnam would get direct access to
the developing and developed markets of TPP members. Besides these, it goes without
saying that CLMV would provide access to the entire Asean landmass.
Concerns:
Indias negligible presence
Unfortunately, bilateral economic engagement between India and the CLMV countries is
less than satisfactory.
The irony is that in spite of these apparent benefits, Indias cumulative investment in
two of the large markets in the region, Myanmar and Vietnam, stands at an abysmal low
of $1.1 billion and $2.2 billion, during 2011 and 2015.
Indias share in total investments in the CLMV region during the same period stands at
just 2.4 per cent.
On the other hand, while imports by CLMV doubled during 2010 and 2014, Indias share
in its imports remained the same, hovering around 2 per cent, since 2010.
Increasing presence of China and far of countries
The ground reality is that while China already has made significant inroads into CLMV,
countries far from Europe and the Asia-Pacific are not far behind.
It may not be out of place to conclude that India is increasingly being observed to be
missing the bus in the CLMV region.
Ideally, India should have been playing to its strengths in the region, executing projects
in the area of healthcare, ICT and education, and possibly even replicating some of its
African models.
A big dose of lethargy
While the Government in 2014 had expressed the desire to set up a Rs. 500-crore
Project Development Fund (PDF) for catalysing Indian investments in CLMV countries,
the same has not seen any significant traction on the ground either.
If these initiatives see the light of day, it will usher in a good amount of Indian
investments into the region, possibly in textiles, leather and low-end manufacturing,
amongst others.
The Kaladan multi-modal transit-transport system conceived in 2008 envisioning
connecting Indias north-eastern States through Myanmar to its Sitwe port has been in
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limbo due to delay and escalated costs. The project was intended to be a landmark
initiative that would facilitate Indias links to the Asean region.
Conclusion:
It is extremely important, given the geopolitical conditions, that inertia at the

government level be shaken off so as to see the completion of the planned projects.
Good economics is good politics. India must increasingly push for engaging more with
these four countries in the region so as to benefit not only on the economic front, but
also be a constructive and strategic partner in their growth stories.
There has been apprehension in some quarters about completion of the Chabahar port
in time, in light of Indias recent record in delays in completion of strategic projects. Such
notions should be corrected.
As India goes to Laos in a few months to participate in the Asean summit, the NDA
government should work to shift its focus back to the region.
Good economics is good politics. Elucidate the statement in regard to the importance
of why India should focus East?
India and its neighborhood and International relations.

affecting Indias interests
Indias dynamic diplomacy: Pause for a reality check

The below article deals with following dimensions:
India_Iran_Afghan relations (focus on development of Chabahar port and trilateral

transit corridor)
Indias present relation with West Asian countries (in focus with strategic dimension)
Comparison of Indias development of Chabahar port in Iran with Chinas development
of Gwador port in Pakistan
How Indias diplomacy is changing in current existing global scenario
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Indias changing diplomacy:
Indias diplomatic relation with world countries and among multi-lateral ladder is
said to be under-performing or volatile, even though it has huge potential.
Indian diplomacy in the past was careful to operate under the radar (low visibility
and presence), which was advantageous to our country in gaining consensus and
maintain cordial relationship with all the countries.
But of lately, there has been a tendency to depart from this low visibility and
attempts are been made to impart high visibility to achieve its development
interests.
Indias recent failure to bid for membership of the Nuclear Suppliers Group (NSG) is
an example which highlights the perils of high visibility and volatility in diplomatic
negotiations.
However, a step towards this kind of high visibility and volatile diplomatic
negotiations might make other countries to take us as a threat.
Indias present relation with West Asian countries (in focus with strategic dimension):
Recent visits of our Prime Minister to the West Asian countries (United Arab
Emirates, Saudi Arabia, Iran, Afghanistan and Qatar) have, undoubtedly, helped
strengthen relations with these countries, especially in the area of economics and
trade.
Each one of these countries has also been desirous of partnering India in
development-related activities, recognising Indias current importance in Asia and
the region.
However, the same cannot be said of strategic and security relations. i.e. mere
mention in joint statements of shared security and strategic concerns, common
ideals and convergence of interests, enhanced defence ties, etc do not translate into
a strategic relationship
Here, Indias foreign policy and diplomacy have to move with caution.
Caution against exuberance:
Most countries of West Asia have their own security and strategic construct. India is
not visualised nor does India see itself as a net provider of security in the
region and, consequently, India does not figure prominently in these countries
security and strategic plans.
There are again certain limits to intelligence and counter-terrorism cooperation, as
serious differences exist between many of these countries and India on what
constitutes terrorism and who can be described as a terrorist.
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India-Iran nexus may hurt Saudi Arabia and Saudi-Pak nexus hurts India:
Saudi Arabia, for example, needs to be seen as a dilettante in security matters flirting
with different nations, most noticeably the U.S., and frequently leaning towards
Pakistan.
Hence, when the India-Saudi Arabia joint statement talks of the two countries
responsibilities to promote peace, security and stability in the region, it conveys
different meanings for the two countries.
For Saudi Arabia, locked in a near existential conflict with Iran with which it has
ideological, doctrinal and hegemonistic issues Iran is the main enemy.
For India, Iran is a friend, and the threat of terrorism emanates from Pakistan, which
remains intent on employing terror as a strategic instrumentality to destroy India.
Hence, it is best to avoid an excess of exuberance in such matters.
Much of this applies in equal, if not greater, measure to the current euphoria regarding
our relations with Iran.
India and Iran relation:
India and Iran share very strong cultural relation. India is home to the second largest
Shia population in the world is well known.
The umbilical links between Qom (Iran) and centres of Shia orthodoxy in India may
be less known, but do exist.
Yet, Iran maintains a certain wariness in its relations with India.
Reasons:
o Many attribute this to Indias negative vote in the Atomic Energy Agency
earlier on, and
o Indias implicit adherence to U.S. sanctions against Iran more recently.
Other reasons possibly exist, but clearly New Delhi needs to work far more strenuously to
regain Tehrans confidence. One high-profile visit by the Prime Minister, or the inking of the
Chabahar port agreement, may not be enough.
Chabahar port and Trilateral Transit Corridor is viewed as a threat:
Indias development of Chabahar port is being mistakenly viewed by some people

as a declaration of strategic intent.
Chabahar port was solely intended to be an alternate trade and transit route to
Afghanistan and conceived as such at the turn of the century. It aimed to circumvent
Pakistans embargo on movement of goods from India to Afghanistan with no
strategic overtones.
The transit corridor involving Chabahar to Zaranj to Delaram (Afghanistan) was to be
complemented by another International North-South Transit Corridor from the
Iranian port of Bandar Abbas into Central Asia.
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The delay in setting up Chabahar port has, however, reduced its economic value and
utility, with Chinas One Belt One Road (OBOR) initiative to which both Pakistan
and Iran subscribe threatening to outflank it.
Chabahar versus Gwadar:
Another impression that the establishment of Chabahar port gives India a strategic
advantage vis--visChina is equally misleading.
Comparison with Gwadar port makes this obvious. Chinas investment in Gwadar port
dwarfs what India proposes to invest in Chabahar. Moreover, Chinas relations with Iran
are today on an upswing.
Chinese President Xi Jinping was the first major world leader to visit Iran after the lifting
of sanctions, signing more than a dozen deals, including the OBOR initiative. Iran has
openly welcomed both Chinas OBOR initiative and Maritime Silk Road initiative, and
sees major economic benefits to itself once they are completed.
Chinas trade with Iran is of the order of $52 billion, much higher than the $9 billion
trade between India and Iran. China expects to raise this to nearly $600 billion over the
next decade.
Not to be ignored is the Pakistan factor, adding further grist to Chinas efforts. This
includes dangling the possibility of an Iran-Pakistan-China gas pipeline.
Challenges in Afghanistan:
Unfortunately, Afghanistan, for which Chabahar port was intended to be the lifeline, is in
dire straits today and its future in jeopardy.
1. Indias poor investment:
Indias investment in Afghanistan has been substantial (for which it paid a heavy
price in terms of both development assistance and the loss of human lives), including
the Rs.1,700 crore Salma dam in the strategically vital Herat province (opened by the
Prime Minister on June 4 this year); the new Afghan Parliament building; and the
218-km long Zaranj-Delaram Highway in western Afghanistan but it faces the
prospect of losing out on all that it has invested.
Currently, large swathes of Afghanistan are under Taliban control. Constant attacks
on government and other targets have eroded the credibility of the National Unity
Government.
2. Afghanistans changing politics and Taliban:
Some parties are aligning more with Pakistan and some Afghan leaders now seem to be
leaning towards the China-dominated Shanghai Cooperation Organisation and give it a
key role in a future security architecture. Only, Hamid Karzai government displays little
preference for India.
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Some Collapse of the National Unity Government will almost certainly lead to a surge in
Taliban-directed activity.
Countries that have propped up the National Unity Government might even offer an
olive branch to the Taliban and involve Taliban members in a future Afghan
government.
This would then enable the Tehrik-e-Taliban Pakistan, the Haqqani network and the
Islamic State (IS) to further enlarge their presence inside Afghanistan.
A Talibanised Afghanistan could well become a staging post for launching attacks
against India. The possibility of regional instability, which Pakistan could use to its
advantage and to Indias detriment, cannot also be disregarded.
Conclusion:
These developments constitute a strategic reversal for India. In the new order of
things, India faces the danger of being relegated to a bit player, with little or no
influence.
India has been kept out of the newly created Quadrilateral Coordination Group
which consists of the U.S., China, Pakistan and Afghanistan to discuss Afghanistans
future.
Left with few options and with the anticipated proliferation of Islamist extremist
groups including the al-Qaeda and the IS, Indias focus would need to shift from
development to finding ways and means to ensure that Afghanistan does not turn
into a major crucible for myriad terrorist groups, specially the IS and the al-Qaeda in
the Indian Subcontinent (AQIS).
Consequently, the dividend that India expects from the development of Chabahar
port may well prove to be highly evanescent. Hence, premature celebrations are
best avoided. As Indias prospects recede, the economic advantages accruing to
China from the OBOR which incorporates Pakistan, Afghanistan and Iran would
increase. This would further diminish whatever elbow room exists for India in that
country and in the region.
What are the implications of Indias highly visible changing diplomacy in regard to the
development of Chabahar port? Discuss the issue highlighting the difference between
Chinas development of Gwadhar port and Indias development of Chabahar port.
Examine the Indias recent developments in strategic dimensions with West Asian
countries. Why Indias foreign policy and diplomacy have to move with caution?
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India and its International relations, Africa Policy


In News:
PM Modi will be visiting some of the African countries (especially the four Indian Ocean
littoral countries Kenya, Tanzania, Mozambique and South Africa)
The visit will be the first by an Indian PM to Mozambique since 1982 and the first to
Kenya since 1981.
NDA govts Africa policy was manifested in the third India-Africa summit in 2015, which
was attended by the leaders of 51 of 54 African nations. Previous summits in 2008 and
2011 had attracted 14-15 heads of state of governments.
Purpose of the visit:

PM Modis visit to the four Indian Ocean littoral countries has three components
the first related to economy and trade,
the second to security and
the third to the Indian diaspora.
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Fig: Four Indian Ocean littoral countries - Tanzania, Kenya, Mozambique, South Africa
which the PM Modi will be visiting
India, stresses all-round relations which includes business, investment, education and
training.
Economy and Trade:
1. India has significant relations with all four countries in terms of trade as well as
investment of Indian private and public sector companies.
2. Other areas - oil and gas industry, automobile, textiles, telecommunications,
engineering products, pharma and medicine
3. Emerging areas of interest - floriculture and agriculture, commercial farming of
sugarcane, palm oil and coffee, because of the agriculture investment-friendly
attitude of many of the states
4. Cabinet has also approved of an MoU with Mozambique to double the import of
pulses to 2,00,000 tonnes by 2020.
Education and IT:
1. Proximity has made India a major destination for African students.
2. Government of India also provides scholarships and training programmes for the
nationals of these countries.
3. Possibilities of expanding Indian IT education and medical tourism.
4. India can also unleash massive possibilities in digital penetration in the continent.
The Digital India initiative can be useful as Africa steps up its IT spend on egovernment solutions, new banking platforms, security to information management.
Security Interests and Diaspora:
1. Indian diaspora is spread across the Indian Ocean islands of Seychelles, Reunion,
Mauritius, as well as the littoral states like Kenya, Tanzania, and South Africa.
2. Indias goal is to incorporate the vast region from India to South Africa as part of its
security sphere.
3. New Delhi has had old ties with the Indian Ocean states of Seychelles and Mauritius
on the security front. India reportedly also maintains a listening post in Madagascar
and Oman.
4. In this context, naval exercises, military and peacekeeping operations, outreach to
the littoral states is crucial.
5. India has emerged as a maritime security provider in East Africa and has build up a
regular naval presence in the strategic Mozambique channel.
6. 2012 agreement provides for anti-piracy patrols by the Indian Navy in the Channel
and in Mozambican waters.
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7. Security from the grim reality of Islamic State terror will have to be and will be at the
core of dialogues.
As for security, the region is far more important for India especially because of the diaspora.
India is a trusted security partner. What it now needs to do is to step up its economic game.
Concerns:
1. Latent racism of large sections of its people
2. Women violence, especially experience of women tourists goes against Indias
Atithidevo Bhava (the guest is equivalent to god) concept
3. Attacks on Africans studying, working and domiciled in India
What India should learn from Africa?
1. Death penalty
In three of the four countries PM is visiting, namely, Mozambique, South Africa and
Kenya, the death penalty now belongs to the past, the first two having abolished it
by law and the third stopped it de facto.
India is behind these three countries and Asia as a whole is behind Africa in regard to
Death penalties.
India gave its excuse explaining that retaining the death penalty is that it acts as a
deterrence against terror.
But still the question remains Does it really? By making martyrs of terrorists, it
makes role models of them for the cause.
2. Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or
Punishment (commonly known as the United Nations Convention against Torture)
India signed the Convention in October 1997 during the Prime Ministership of Inder
Gujral, but it has yet not ratified it. Neither the two NDA governments nor the two
UPA governments thought fit to ratify it.
Tanzania too has neither signed nor ratified it. Mozambique, Kenya and South Africa
have, all three, signed and ratified it.
If torture is savage, Africa is civilisationally ahead of Asia and, more specifically, these
three countries are ahead of India.
Conclusion:
Africa is key to Indias economic and maritime interests in the Indian Ocean region. The
Prime Ministers emphasis on the blue economy initiative which aims to build on maritime
trade links between India and the countries situated along the Indian Ocean is significant.
With South Africa, Kenya and Mozambique among these, is important for India to establish
deeper links with Africa so as not to get crowded out by other Asian giants.
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It is obvious the possibilities in relationship building are infinite. All we have to do is to push
the boundaries.
1. Discuss the opportunities that the African countries (especially the Indian Ocean littoral
countries) provide for India. Also discuss the concerns between India and these countries.
India and its neighborhood and International relations.

affecting Indias interests
India and Maldives Relations

A friend in need:
Maldives is a strategically important Indian Ocean archipelago

Indian Army's 'Operation Cactus' foiled a coup in Maldives that was attempted by a proEelam group in 1988.
India maintains a naval presence in Maldives, at the request of the Maldives, since 2009
. President Yameen, in an interview had said, "If they [Indian Army] had not come to our
rescue, we would have lost independence during the past 50 years."
Indian Coast Guard's Dornier was the first to land at the Ibrahim Nasir Airport with relief
and supplies after the tsunami of December 26, 2004.
Maldives has pledged its support to India as a permanent member of an expanded UN
Security Council.
In 2014, India dispatched water aid to the Maldivian capital of Male, after a fire
destroyed the generator of its biggest water treatment plant.
Concerns:
Turbulent Maldivian politics: Maldives continues its descent into political anarchy with
democratic institutions facing an unabated onslaught under the authoritarian regime of
President Abdulla Yameen
The Yameen government stands accused of stifling democracy, riding roughshod over
the countrys 2008 constitution, reducing its majlis (parliament) where his party has a
majority to a mere rubber stamp, and weakening the judiciary.
Unfair persecution and imprisonment of political rivals, rampant corruption and severe
curbs on press freedom are other charges.
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Maldives growing "closeness" with China: Both China and Pakistan stepping up their
strategic inroads into the Maldives
Religious radicalization: The island-nation (Maldives) is being radicalized by the Saudi

funds and influence
The continuing money flow from Saudi Arabia for the construction of mosques and
madarsas which now dot the archipelago is also worrying as they emerge as hubs for
religious radicalisation and indoctrination.
The Saudis along with Pakistan and Egypt are seen as fuelling extremist religious views
through the scholarships they are offering to Maldivian youth who are returning
radicalised after having travelled to these countries.
ISIS threat: Growing Islamic radicalisation in the tiny island-nation of about four lakh
people once known for its tolerant practices has many foreign governments, including
India, deeply concerned. While the Maldivian government says only 49 of its citizens
have joined ISIS, unofficial figures pitch the number at about 250-300.
GMR issue: Relations between India and Maldives came under a strain after Male had
terminated the agreement it entered into with GMR in 2010 for the modernisation of
the Ibrahim Nasir International Airport. The airport was taken over by the Maldives
Airports Company Limited after a high-voltage legal tussle in which GMR.
The quantum of damages to be paid by the Maldives is yet to announced by the
arbitration tribunal in Singapore.
India has, for some time, chosen to maintain a studied silence on whats happening in this
troubled tourists paradise.
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India can no longer afford to be a mere spectator.

India seems to be fast ceding its traditional space for effective diplomatic influence in the
archipelago.
Proceed with caution
Indias cautious dealings with the Yameen regime followed a period of strained bilateral
ties after Mohamed Nasheed he was the first democratically elected president of the
archipelago in 2008 was ousted in 2012.
Unwilling to be seen as aligning with any political faction, India has engaged in outreach
to the entire political spectrum in the archipelago.
New Delhi is also unlikely to accede to the request of the Maldives United Opposition
(MUO) a broad coalition of political parties seeking restoration of democracy to
directly intervene or impose sanctions to arm-twist the Yameen regime.
The MUO that has Nasheed as an advisor, was launched in early-June at London with a
25-member shadow cabinet. Some of its members were in New Delhi recently to seek
Indias support to bring back democracy to the Maldives and ensure the elections
which are still two years away are free and fair by having a transitional arrangement
in place after Yameens removal.
However, as India walks the middle path, what remains worrying is the Yameens
regimes deep involvement with China.
The contract for the $500-million Male international airport modernisation project
bagged by GMR was unilaterally terminated once Nasheed was ousted.
Indias loss was Chinas gain with the latter bagging the contract for the airport and the
China-Maldives Friendship Bridge project that will link Male to the airport.
Conclusion:
Amid all these concerns, the

closing. In seeking to balance
engaged with the Yameen
enunciation of an India First
the Indian Ocean region.
New Delhi will need to step up pressure on the government in Male if it is to safeguard
its own strategic and security interests in the archipelago that straddles important sea
lanes in the Indian Ocean Region. Quiet persuasion is what India has been engaging in so
far, but it may need to rally international opinion against the repressive regime, possibly
through the Commonwealth Ministerial Action Group (CMAG).
window for Indian diplomatic intervention seems to be

its geo-strategic interests along with the need to remain
government, India cannot afford to trust Yameens
approach. Especially when at stake is Indias influence in
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1. Critically analyze the relations and growing concerns between India and Maldives. Also
discuss the importance of this island-nation for India with regard to strategic and
security perspective.

Important Bilateral, regional and global groupings and agreements involving India
and/or affecting Indias interests.
Why in news?
The Regional Comprehensive Economic Policy negotiations enter the fourth year in 2016
and the 13th round of RCEP negotiations took place in Auckland on12-18th June 2016.
RCEP Regional Comprehensive Economic Partnership (RCEP) is an ASEAN-centred
proposal for a regional free trade area.
Between:
10 ASEAN states: (Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the
Philippines, Singapore, Thailand, Vietnam)CLIMBB-PSTV+
Six states with which ASEAN has existing FTAs (Australia, China, India, Japan, South
Korea and New Zealand)JACSIN
Launched in: November 2012 at the ASEAN Summit in Cambodia
Viewed as: Alternative to the Trans-Pacific Partnership Trade Agreement
Stats: The 16 RCEP participating countries account for almost half of the worlds
population, almost 30 per cent of global GDP and over a quarter of world exports.
Why RCEP?
Purpose: ASEAN+6 RECPaimed at transforming the region by higher economic growth
through more cross-border trade and investment.
Objective: To achieve a modern, comprehensive, high-quality and mutually beneficial
economic partnership agreement that will covertrade in goods, trade in services,
investment, economic and technical co-operation, intellectual property, competition,
dispute settlement and other issues.
Dynamics of RCEP
1. It will not create a large integrated market
For an integrated market, RCEP must agree to a zero tariff area among members. However,
this was never on agenda. Best possible solution was RCEP countries agreeing to a single
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tariff concession list providing uniform tariffs for products across member-countries. The
noodle-bowl of numerous competing FTAs will continue and RCEP will be an add-on to the
list.
Challenge: The zero-tariff was not agreeable to all countries.
2. No substantial tariff concessions in most cases
Large-scale slashing is theoretically not possible among the countries already connected
through FTAs. For example, ASEAN countries and their FTA partners have already
opened over 80 per cent trade through existing FTAs. They can, at best, make small
incremental offers to each other, under RCEP.
Country groups such as India-China, India-Australia and New Zealand or China-Japan do
not have any existing FTA relationship with each other and hence theres scope for
exchanging deeper tariff slashing.
Challenge: Many countries in the group are not enthusiastic about this, probably due to a
tough economic climate. The level of tariff slashing that these countries will finally agree
upon is yet to be established.
3.ROO criteria
Consensus on adopting common Rules of Origins (ROO) will make movement of goods
easier, predictable across the member-countries.
However, this is just a framework and product level details for almost 5,200 product
sub-headings are yet to be negotiated.
A ROO criterion determines nationality of goods.
For instance, if squash is made in India from Nagpur oranges, the squash obviously
originates in India. But what if the squash is made in India from oranges grown in the US?
Which is the country of origin for squash here: India or the US? There is no standard answer.
Two broad interests group in RCEP
1. Export- driven trading economy: Many ASEAN countries argue that even minor
processing should qualify a product for FTA benefits
2. Manufacturing economy: China or India argues that processing should be substantial
else non-FTA country products will enter the domestic market.
Challenge: RCEP will have a tough time balancing the conflicting needs of the stakeholders,
comprising a mix of manufacturing and trading economies. While a few countries are
pushing for large MNC-centric rules, RCEP being home to over 100 million SMEs may
struggle to find a balance.
4. Pending indecisive areas: Contours of the final outcome are yet to emerge in the area of
IPR, services and investments. RCEP will have to reconcile the interests of many conflicting
interest groups to ensure that IPR provisions do not compromise on public health issues as it
contains 45 per cent of the world population, of which the majority is poor.
Another contentious issue before it is investor-state dispute settlement (ISDS) that seeks
to enable an investor to sue a foreign government.
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Predicted industry trends due to RCEP negotiations

1. Influence new investment decisions: in textiles, leather, processed food, machinery and
electronic component sectors. Sectors such as agriculture, automotive products, steel
may not see fresh tariff concessions and face restrictive ROOs
2. Less intra-ASEAN trade: Trade for immediate products such as integrated circuits
accounts for over 60 per cent of ASEAN import of these. Much of this trade may relocate
to one or two ASEAN countries or even to China on account of the common ROO
framework and to achieve economies of scale.
3. Increased Chinese exports to India:Today, China exports to India at full duty as it does
not have an FTA with India. But for products where duty differential matters, it needs to
set up joint ventures in Thailand or Malaysia from where products can be exported to
India at zero duty under the ASEAN-India FTA. With RCEP, many such facilities will not be
required as China will export directly to India.
While Chinas exports to India may increase, most of these will be at the expense of ASEANs
exports to India. However, China and ASEANs combined exports to India may not see much
change.
What future RCEP holds for India?
1. Boost to India-ASEAN relation:
Help in furthering the aims and objectives of Indias own Act-East Policy.
In real practice, RCEP once formalized, is supposed to emerge as the most effective
and largest free-trade bloc in the world with combined geo-political resources.
This is particularly important because India is not a party to two important regional
economic blocs: the Asia-Pacific Economic Cooperation and the Trans-Pacific
Partnership.
The RCEP would enable India to strengthen its trade ties with Australia, China, Japan
and South Korea, and should reduce the potential negative impacts of TPP and TTIP
on the Indian economy.
2. Increased Chinese investments in India:
To offset the increasing labour costs, Chinese firms have been relocating labourintensive manufacturing to Vietnam, Cambodia, Thailand and Indonesia.
By setting up manufacturing joint ventures in India, China can effectively reach
Indias domestic market and also a large European market once India signs an FTA
with the European Union.
If this frames true, Indias trade deficit with China will come down as well.
3. Revenue loss for India:
An internal commerce ministry estimate that signing the RCEP trade agreement will
result in a revenue loss of as much as 1.6% of gross domestic product.
This is expected to make India more aggressive in the upcoming negotiations,
seeking greater market access in services to be able to justify the closing of the deal
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at home, where an apprehensive local industry views it as equivalent to signing a

free trade agreement with China.
4. More access to service market needed:
India, due to its higher tariff wall, ends up cutting its tariffs more significantly in such
bilateral or plurilateral trade negotiations, while other countries, due to their already
low tariff lines, need only to reduce them marginally.
If balance cannot be achieved in goods, other countries need to give greater market
access to services from India.
India thinks its best bet is in services export, through which it can supply its
burgeoning skilled professionals to other countries, thus partially meeting the
demand for jobs from a million people joining the labour market every month.
In conclusion, RCEP may still take over a year to conclude. This intervening period can be
used to tie up loose ends. The Cabinets decision in June on introducing labour reforms for
the textiles and apparel sector may prove to be a welcome grand step in this direction.
1. RCEP holds a gateway to a regional trading bloc for India but, India has to cautiously pave
its way. Critically analyse.
Refer:
The new Great Game in Asia
http://iasbaba.com/2015/09/iasbabas-daily-current-affairs-15th-september-2015/
Trans-Pacific Partnership (TPP) & India
HOT question- March 2016
http://iasbaba.com/2016/03/iasbabas-tlp-2016-9th-march-upsc-mains-gs-questions-hotsynopsis/
INDIA-ASEAN TRADE TIES
http://iasbaba.com/2015/11/all-india-radio-22nd-november-2015/
Needless pressure to change copyright laws
http://www.thehindubusinessline.com/todays-paper/tp-opinion/needless-pressure-tochange-copyright-laws/article8557839.ece
RCEP negotiations: India likely to take a more aggressive stand
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http://www.livemint.com/Politics/37pnX4pjCINPeglF6d53HL/RCEP-negotiations-India-likelyto-take-a-more-aggressive-st.html
International Affairs - Turkey and Kurds Issue


Why Turkey is in news?
1. Military Coup: Turkey's army launches a coup attempt
A section of Turkeys military on Friday tried to overthrow President Tayyip Erdogan
who has been in power since 2003.
If the coup is successful, it will be a significant power shift in West Asia, already
struggling with failed states, internal strife and the threat from ISIS.
Turkey which is a strategically important Muslim-majority nation has already
seen three full military coups since 1960.
2. Turkey versus IS and Kurds: Turkey is battling threats on two main fronts, against
Islamic State group jihadists and Kurdish militants.
3. Geo-strategic significance (Syria Issue): Turkey, a NATO frontline state was also in News
as it waited for almost a year to join US-led air strikes on Syria (against Islamic State
jihadists) and to open its air bases to US planes.
4. Turkey versus Russia: Turkey had criticised Russia's intervention in Syria, which had
provoked several airspace incidents along its border.
Geographical importance of Turkey:
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Turkey is located between Europe and Asia. Turkey's location at the crossroads of Europe
and Asia makes it a country of significant geostrategic importance.
Turkey is bordered by eight countries:
Syria and Iraq to the south;

Iran, Armenia, and the Azerbaijani exclave of Nakhchivan to the east;
Georgia to the northeast;
Bulgaria to the northwest; and
Greece to the west.
The Black Sea is to the north, the Mediterranean Sea to the south, and the Aegean Sea to
the west.
The Bosphorus, the Sea of Marmara, and the Dardanelles (which together form the Turkish
Straits) demarcate the boundary between Thrace and Anatolia.
Note: Locate and remember all the above said straits and seas in your Atlas. (Important
for exams)
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Strategic importance of Turkey
With a Black Sea coastline facing Russia, Turkey has been a NATO frontline state for
more than 60 years. (NATO member since 1952)
Turkeys strategically placed location is important for US, as both can take part in the
US-led fight against Islamic State jihadists
Turkey bordering with Black Sea, makes it a prime location to watch the activities of
Russia and contain Russia. Turkey had criticised Russia's intervention in Syria, which
has provoked several airspace incidents along its border.
Turkey has played a key role in Europe's migrant crisis, having taken in more than
two million Syrian refugees, compared with its own population of around 78 million.
Troubled political life
The Republic of Turkey was created as a secular state in 1923 after the collapse of the
Ottoman empire at the end of World War I.
Its founder Mustafa Kemal Ataturk was president until his death in 1938. His successor
Ismet Inonu introduced multi-party democracy in 1946. Turkey witnessed repressive
military coups in 1960, 1971 and 1980.
In 1997 the Turkish military also forced out current President Recep Tayyip Erdogan's
late mentor Necmettin Erbakan from the premiership.
The Islamic-rooted Justice and Development Party (AKP) came to power in November
2002. Its leader Erdogan was prime minister from 2003 until 2014, when he became
the first Turkish president directly elected by the people.
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Why a coup?
Erdogan has comfortably been in power for well over a decade and has brought in a lot
of reform to the Turkish establishment and society.
The military sees itself as upholders of Kemalism, the form of democratic nationalism
and secularism ushered in by founding father Mustafa Kemal Ataturk in 1923. Erdogan
on the other hand is considered an Islamist and conservative.
Will the coup succeed?
At the moment, it seem the coup has lost its momentum. Erdogan also seems to have
the support of the public and maybe a section of the military too. Also, thousands of
people took to the streets in favour of the democratic Erdogan government.
What will be the impact?
If the coup fails, then President Erdogan will emerge more powerful. Since 2003 he has
been able to make himself one of the most powerful president in the country ever, and
this make him more authoritarian. Some experts suggest he might even push for more
constitutional changes.
Kurds Issue:
Who are these Kurds? Why are they fighting?
The Kurds are one of the indigenous people of the Mesopotamian plains and the
highlands in what are now south-eastern Turkey, north-eastern Syria, northern Iraq,
north-western Iran and south-western Armenia.
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In recent decades, Kurds have increasingly influenced regional developments, fighting

for autonomy in Turkey and playing prominent roles in the conflicts in Iraq and Syria,
where they have resisted the advance of the so-called Islamic State (IS) jihadist group.
Today, they form a distinctive community, united through race, culture and language,
even though they have no standard dialect. They also adhere to a number of different
religions and creeds, although the majority are Sunni Muslims.
In the early 20th Century, many Kurds began to consider the creation of a homeland generally referred to as "Kurdistan".
Kurds are fighting for Kurdistan
Treaty of Sevres: After World War One and the defeat of the Ottoman Empire, the
victorious Western allies made provision for a Kurdish state in the 1920 Treaty of
Sevres.
Treaty of Lausanne: However, such hopes were dashed three years later, when the
Treaty of Lausanne, which set the boundaries of modern Turkey, made no provision for
a Kurdish state and left Kurds with minority status in their respective countries.
Over the next 80 years, any move by Kurds to set up an independent state was brutally
quashed.
So, these Kurds are aiming to change the outcome of World War One
Why Kurds fought against Islamic State?
In mid-2013, IS turned its sights on three Kurdish enclaves that bordered its territory
in northern Syria. It launched repeated attacks until mid-2014, when the armed wing
of the Syrian Kurdish Democratic Unity Party (PYD) repelled IS.
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The jihadists' advance in Iraq also drew that country's Kurds into the conflict. The
government of Iraq's semi-autonomous Kurdistan Region sent its Peshmerga forces
to areas abandoned by the army.
In mid-September 2014, IS launched an assault on the enclave around the northern
town of Kobane, forcing tens of thousands of people to flee across the nearby
Turkish border.
Despite the proximity of the fighting and the threat posed by IS, Turkey refused to attack
the jihadist group's positions near the border or allow Turkish Kurds to cross to defend
it, triggering Kurdish protests.
In October, Ankara partially relented and agreed to allow Peshmerga fighters to join the
battle for Kobane, after US-led air strikes helped halt the IS advance.
In January 2015, Kurdish forces regained control of Kobane.
Since then, the Kurds won series of battles against IS and established control over a
400km (250-mile) stretch of contiguous territory along the Turkish border and advanced
to within 50km (30 miles) of the IS stronghold of Raqqa.
Turkey versus Kurdistan

Since July 2015, Turkey has suffered heavy violence with the resumption of the Kurdish
conflict against the background of the war in Syria and a series of bloody attacks.
Small background:
Since 1984, the outlawed Kurdistan Workers' Party (PKK) in Turkey has led an armed
rebellion in the Kurdish-majority southeast that has claimed more than 45,000 lives.
In order to stop this rebellion, Turkey government and Kurdistan Workers' Party
(PKK) had signed a ceasefire agreement.
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However this de facto ceasefire was broken in July 2015 when the Turkey
government launched an unprecedented two-pronged "anti-terror" operation
against jihadists in Syria and Kurdish militants in southeast Turkey and northern Iraq.
Western concerns have also mounted about the state of democracy and freedom of
speech in Turkey after several raids on media groups and a string of prosecutions of
journalists.
Major attacks
Since mid-2015 Turkey has seen a string of attacks with mass fatalities
Oct 2015 - 103 people were killed and more than 500 wounded in twin suicide
bombings targeting a pro-Kurdish peace rally in Ankara. The prime minister said IS
was the main suspect.
In 2016, seven major attacks claimed more than 120 lives including the latest on
June 28.
In that attack, 45 people were killed, including foreigners, and over 200 injured in a
triple suicide bombing and gun attack at Istanbul's Ataturk airport. There was no
claim of responsibility but authorities said evidence points to the Islamic State group.
Migrant crisis
Turkey has taken in 2.7 million Syrians from the brutal war that broke out across its
border in 2011, making it host to the largest refugee population in the world.
Many Syrian refugees have launched attempts to reach Europe from Turkey's shores,
making the perilous journey by sea to Greece.
Under a controversial deal between the European Union and Turkey that came into
force in March, failed asylum seekers face being sent back from the Greek islands to
Turkey.
India and its neighborhood- relations, India-Pakistan economic trade relations

The dynamics of India-Pakistan trade

In News:
A recent study by Delhi-based research institute Indian Council for Research on

International Economic Relations (ICRIER) shows that informal trade between India and
Pakistan is almost twice the value of formal trade between the two countries.
What is informal trade?

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Informal trade is broadly defined as all trade between two countries that should be
included in the national income statistics, according to conventional national income
accounting, but is not.
What drives informal trade?

Factors such as high tariffs, political tension, infrastructure impediments, ease of trading
goods via third countries have generated a thriving industry for informal trade between the
two South Asian giants.
1. Pakistans negative list of 1,209 itemsis the most important factor pushing informal
exports from India.
Items on the negative list are those that are not allowed to be imported from India.
More than one in every two items exported informally to Pakistan were on Pakistans
negative list. Clearly, the restriction has fuelled indirect trade.
2. 58% of the traders cited ease of sending goods via a third country as the second biggest
important reason. This highlights weaknesses in infrastructure for formal trade,
consequently leading to high transport costs.
3. The third biggest reason was seen to be high tariffs. Compliance to the tariff
liberalization plan of South Asian Free Trade Area (SAFTA) is expected to bring down
tariff rates.
The agreement on SAFTA is a trade agreement to promote trade and economic growth in
South Asia by reducing tariffs for intra-regional export. India also maintains a sensitive list of
614 items on which no tariff concessions are granted.
4. The fact that Pakistan has refrained from according the Most Favoured Nation (MFN)
title to India has also hindered barrier-free trade, say trade analysts.
According to the World Trade Organisation, MFN means that every time a country lowers a
trade barrier or opens up a market, it has to do so for the same goods or services from all its
trading partnerswhether rich or poor, weak or strong.
Which commodities are traded?
Real jewellery, including gold, diamond and precious stones, accounted for the largest
share of 23% of informal exports from India to Pakistan.
About 30% of items on Indias current sensitive list comprise of textiles, indicating that
shift to formal trade can be expected once India relaxes its tariffs.
While Indias imports from Pakistan included items such as dry fruits and spices,
informal exports from India included chemicals, tyres, alcohol and tobacco products,
among several others.
Informal exports from India to Pakistan in 2012-13 stood at $3.9 billion, much higher than
the just over $2 billion worth of formal exports. Informal imports, on the other hand, from
Pakistan valued $0.7 billion, slightly more than formal imports of $0.5 billion.
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How does informal trade take place?
Most of informal trade between the two countries were also found to be via a third
country, inparticular Dubai.
About 68% of Indias informal export to Pakistan was found to be routed via Dubai.
59% of informal import from Pakistan was accounted for by passengers travelling by bus
or rail.
24% of informal import from Pakistan was via Line of Control trade routes, while 17%
was via Dubai.
India and Pakistan trade potential is huge
Experts say that trade via a circuitous route is itself an indication of the potential of
bilateral trade between the two countries.
However, the cost of non-cooperation is huge. People in third countries know what
India has and what Pakistan wants, and their business thrives on the lack of information
and hesitation of these two countries. The benefits of direct trade need to be explored.
Formal trade routes are inefficient
The survey, which measured the efficiency of transport of goods via two routesthe
Delhi-Lahore route and the Delhi-Mumbai-Dubai-Karachi-Lahore routefound that the
latter route was 2.75 times more efficient in terms of transport per transaction cost
incurred per container-kilometre.
Higher transaction cost per-tonne-per-kilometre on the direct route is because of
factors such as limited number of items that can be exported via road route,
cumbersome customs checks at Attari/Wagah customs station, transaction costs in the
form of bribes incurred in getting customs clearances, physical examination of goods
and poor infrastructure, among others.
While the total cost of shipping would still be lower in the formal channel, given the fact
that the distance is one-tenth of the route via Dubai, predictability and comfort
encourages traders to incur these high costs
The study highlights that if appropriate measures are taken, a significant share of
informal trade can be diverted to formal channels. Informal trade between India and
Pakistan, though, is unlikely to be totally eliminated as ethnic networks between the two
countries would continue to facilitate it at cheaper costs.
1. Recent studies have shown that informal trade between India and Pakistan is almost
twice the value of formal trade between the two countries. Discuss what factors are
driving this informal trade and also suggest appropriate measures to be taken to convert
this significant share of informal trade to formal trade.
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Conservation, environmental pollution and degradation, environmental impact
assessment
The death of World Heritage Sites
What are World Heritage sites?
A natural or man-made site, area, or structure recognized as being of outstanding
international importance due to its cultural or physical significance and therefore
deserving a special protection.
There are 1,031 World Heritage sites around the world, representing sites of
"outstanding universal value" because of their importance in capturing human cultural
traditions, creative genius, history or exceptional natural phenomena.
World Heritage sites belong to all the peoples of the world, irrespective of the territory
on which they are located.
UNESCO
The United Nations Educational, Scientific and Cultural Organization (UNESCO) seeks to
encourage the identification, protection and preservation of cultural and natural
heritage around the world considered to be of outstanding value to humanity.
This is embodied in an international treaty called the Convention concerning the
Protection of the World Cultural and Natural Heritage, adopted by UNESCO in 1972.
Climate change and World Heritage sites
Marine and coastal sites are facing particular challenges due to sea level rise, ocean
acidification, and increased frequency and severity of extreme weather events.
Latest victim: Great Barrier Reefs corals- Australia
It is one of the worlds richest and most complex ecosystems.
In 2015, almost one-quarter of the coral has died. It is the worst mass coral bleaching in
recorded history.
Threatening: Even in the far northern reaches of the Reef which is away from human
pressures like coastal development, a staggering 50% of the coral has died.
Reason:Above-average sea temperatures.
Further impact? As the ocean continues to absorb more heat from the atmosphere, largescale coral bleaching is likely to become even more frequent and devastating throughout
the global waters.
World Heritage and Tourism in a Changing Climate report
Report by: UNEP, UNESCO and Union of Concerned Scientists (UCS)
It notes: Some 31 natural and cultural World Heritage sites in 29 countries across the world
are becoming increasingly vulnerable to the effects of climate change
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Documents:Climate impacts including increasing temperatures, melting glaciers, rising seas,

intensifying weather events, worsening droughts and longer wildfire seasons.
Examples:Venice, Stonehenge, the Galapagos Islands, South Africas Cape Floral Kingdom,
the port city of Cartagena-Colombia and Shiretoko National Park in Japan
Report Highlights
Identifying the World Heritage sites that are most vulnerable to climate change and
implement policies and provide resources to increase resilience at those sites
Ensuring that the threat of climate impacts is taken into account in the nomination and
listing process for new World Heritage sites
Engaging the tourism sector in efforts to manage and protect vulnerable sites in the face
of climate change and educate visitors about climate threats
Increasing global efforts to meet the Paris Agreement climate change pledges in order to
preserve World Heritage sites for future generations
Effect on tourism:
Climate change could eventually even cause some World Heritage Sites to lose their
status.
The effects could be a blow to the tourism industry and economies of some of the
countries where the World Heritage sites are found,noting that many developing
countries are quite reliant on tourism revenue.
The report gave a miss to the iconic Great Barrier Reef in Australia and the Sundarbans in
India and Bangladesh.
Fossil fuels are the culprit
Existence: The World Heritage Sites future depends on immediate reduction of climatechange-inducing greenhouse-gas emissions.
Governments inaction and insensitivity: The responsible governments are failing to protect
sites within their boundaries, from climate change. They are continuing to pursue polluting
energy projects like coal mines and coal-fired power plants.
Australia:
Inspite of such devastating effect on its corals, it continues to increase its exploitation of
dirty fossil fuels.
In 2015, the Australian government has approved both the massive Carmichael
coalmine and the Abbot Point terminal, located near the Reef, to facilitate the global
export of output from the Carmichael mine.
Bangladesh:
It is one of the most vulnerable countries to climate change. Even then, the government
supports a proposal to build two huge coal-fired power plants adjacent to the
Sundarbans World Heritage site. India is in support of it.
They will emit large quantities of greenhouse gases, devastate the Sundarbans, where
the Ganga and other rivers meet the Bay of Bengal in a spectacular delta of mangrove
islands that is home to endangered Bengal tigers and river dolphins.
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The power plants will pollute the waters with toxic coal ash, bring constant coal-barge
traffic, and require the dredging of riverbeds.
Mercury from the smokestacks will accumulate in the marine life, permanently
contaminating the food supply of hundreds of thousands of people and vulnerable
wildlife.
And therefore, it needs to use renewable energy. It is already a world leader in solar
energy and has significant potential of other resources like hydro energy.
World Heritage Sites as part of climate change solution

Nature based solutions
Contribute to global climate stability by storing significant amounts of carbon.
Forests found in world heritage sites across the tropical regions store 5.7 billion tons of
carbon.
Two-thirds of natural sites on the UNESCO world heritage list are crucial sources of
water and about half help prevent natural disasters such as floods or landslides.
In India and Bangladesh, the Sundarbans 2,200km mangrove coastline offers flood
protection, which would otherwise require an investment of us$ 300 million in manmade infrastructure.
Wilderness approach
The large, intact landscapes play a crucial role in helping species survive climate change
events by providing options such as refuge or dispersal.
A World Heritage site in Costa Rica, linking coastal areas to mountain ranges,
allowsplants and animals to move to higher ground in case of sea level rise or rising
temperatures.
However, more attention need to be accorded to wilderness as currently the World
Heritage Convention provides little or no protection to many exceptional wilderness
areas. They face increased global threats, particularly from industrial activities and
climate change.
World Heritage Committee
What is WHC?The World Heritage Committee establishes the sites to be listed as UNESCO
World Heritage Sites.
In 2004: WHC Invited "the World Heritage Centre, in co-operation with the States Parties,
Advisory Bodies, and other international agencies and non-governmental organisations
concerned by emergency interventions
To:prepare a risk-preparedness strategy
Result:Strategy for Risk Reduction at World Heritage Propertiespresented and approved by
the World Heritage Committee in 2007
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Role of World Heritage Committee

It needs to step up as governments fail to protect the heritage and to help bring an end
to the relentless exploitation of fossil fuels
It needs to make recommendations to governments for reducing fossil-fuel-related
threats, identify sites that are in particular danger from such threats, and carry out
monitoring missions.
This would help to educate and empower civil society and also place pressure on
financial institutions to withhold the funding required for massive development projects.
Annual Meetings are ideal forums for such efforts. (40th World Heritage Committee met
in Istanbul)
Request Indian, Bangladesh and Australian governments to cancel their environment
polluting projects and invest in renewable energy instead.
Conclusion
World governments, the private sector and tourists all need to coordinate their efforts
to reduce carbon emissions and to protect the worlds most treasured cultural and
natural resources from the impact of tourism activities as well as other polluting
developmental activities.
As the threat of climate change grows increasingly menacing, influential institutions like
the WHC must take a stand against the toxic and insidious legacy of dependence on coal
and other fossil fuels.
The committee shouldnt be silent on this crucial issue so as to prevent World Heritage
sites around the world from suffering.
The World Heritage Sites are not only our pride but our responsibility and climate
change is threatening their vital existence. Critically analyse the co-existence of heritage
with development.
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ECONOMICS
Effects of liberalization on the economy, changes in FDI policy and their effects on
economic growth.
Investment models
Is FDI really a gift horse?
Government of India recently announced another new set of radical changes in foreign
direct investment (FDI) policies
Just in November 2015, the government had introduced changes in 15 major sectors, and
now, the latest announcement covers nine sectors
Comparison between the changes adopted by the earlier and latest FDI policy reforms:
November 2016 FDI policy changes
Last years announcement stated that the policy changes were intended
to ease, rationalise and simplify the process of foreign investments in the country
and
to putmore and more FDI proposals on automatic route instead of Government
route where time and energy of the investors is wasted
Latest FDI policy changes
The recent amendments to FDI policy seek to
further simplify the regulations governing FDI in the country and
make India an attractive destination for foreign investors
to attract and promote FDI in order to supplement domestic capital, technology and
skills, for accelerated economic growth
However, the thrust/vision of the two sets of policy changes remains the same to ease
entry of foreign investors in India
With these successive changes in FDI policy, India has become the most open economy in
the world for FDI but can the country expect to benefit from this form of investment?
Can the country expect to benefit from this form of investment?
In order to answer the above question, it is important to understand the following
1. Are Indias FDI true in its character i.e. long-term inflows?
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FDI, as distinguished from portfolio investment, has the connotation of establishing a

lasting interest in an enterprise that is resident in an economy other than that of the
investor.
Therefore, it is important to understand whether FDI has retained its character of being
long-term inflows of investible capital in an age when global capital markets are being
ruled by investors having short-term targets.
2. Understanding the proper definition of FDI
Economists have always treated FDI as that component of foreign investment in an

enterprise that confers control to the foreign investor over the enterprise.
All other foreign investment was defined as portfolio investment, and this component
was considered footloose.
As regards the threshold for identifying whether an enterprise was foreign-controlled or
otherwise, most countries adopted their own definitions.
3. Improper/poor definition of FDI do not allow us to make the distinction between longterm investments and portfolio investments
In the past, the RBI followed the practice of identifying foreign-controlled rupee
companies, which were companies having foreign shareholding of 25 per cent or more
of total equity or where 40 per cent share is held by investors from a single country.
In recent decades, the Organisation for Economic Cooperation and Development (OECD)
and International Monetary Fund (IMF) have pushed for a globally acceptable definition
of FDI, according to which 10 per cent or more of foreign equity constitutes the
controlling share in an enterprise. But not all countries have adopted the OECD-IMF
definition.
For instance, in India all investments other than those through the stock market are
reported as FDI. India, therefore, does not make any distinction between the
controlling share and the others as far as FDI is concerned.
This implies that data on FDI for India do not allow us to make the distinction between
long-term investments and portfolio investments.
4. Lack of access to the state-of-the-art technologies
Foreign investors consider controlling share to be vital for bringing in state-of-the-art
technologies.
However, given the fact that developing countries have been struggling to get access to
proprietary technologies despite steep increases in FDI inflows over time, there seems
to be the proverbial slip between access to technology and FDI inflows.
5. Increasing reinvested earnings
The OECD-IMF duo introduced some other components in the definition of FDI, the most
significant of these being the inclusion of reinvested earnings.
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While it may be justified for balance of payments purposes, the fact is that retained
earnings increase the host countrys liabilities without actually transferring resources
from abroad.
Retained earnings are a part of the profits earned by foreign companies in their host
countries, which are in domestic currencies. Once capitalised and absorbed in the equity
stock, retained earnings become conduits for larger dividend remittances in future.
Further, if such earnings are used to take over domestic companies or to buy back
shares from the public, then they would not add to the existing capacities.
Data provided by the UN Conference on Trade and Development (UNCTAD) show that
the share of reinvested earnings has increased progressively during the recent past and
by 2013 they constituted two-thirds of the FDI outflows from the developed countries.
In fact, more money was flowing into the developed countries as dividend income than
that was flowing out as direct investment. Thus actual cross-border equity flows that
meet the conventional definition of FDI are only a fraction of the reported global FDI
flows.
6. Inflows and outflows

According to official statistics, India has seen a steep increase in FDI inflows totalling over
$55 billion in 2015-16. However, in the world of high finance, FDI is not a gift horse there
are at least two sets of costs that host countries have to bear.
The first is the direct cost stemming from outflows on account of operation of foreign
companies.
The RBI has reported that between 2009-10 and 2014-15, outflows due to repatriations,
dividends and payments for technology have together constituted a major foreign
exchange drain nearly one-half of the equity inflows during this period!
The RBI also tells us that during the same period, subsidiaries of foreign companies
operating in India ran negative trade balances in almost all manufacturing sub-sectors.
But, together with remittances and other payments, foreign subsidiaries in most sectors
regularly drew out surpluses which look quite large when compared with the capital that
the foreign companies were bringing in.
Apart from the direct costs, foreign investors are able to extract indirect benefits from
their host economies by using bilateral investment promotion and protection
agreements (BIPA).
In recent years, India has faced a number of disputes with foreign investors, which arose
because the latter was able to invoke the investor-state dispute settlement (ISDS)
mechanism included in the BIPAs that allows disputes to be taken to private
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international arbitration panels. Most of the cases have arisen as the foreign investors
have challenged the tax liabilities imposed by the government.
The government has amended the model BIPA ostensibly to blunt the ISDS mechanism.
The new model BIPA includes a strong stricture to foreign investors to make timely
payment of their tax liabilities in accordance with Indias laws. It will be well worth
watching as to how this instrument gels with the investor-friendly regime that has now
been put in place.
(Note: Crux of the whole article can be concluded as below)
IASbabas views on: India has become the most open economy in the world for FDI but can
the country expect to benefit from this form of (FDI) investment?
From the above article, we can conclude that India gets benefitted from FDI if
1. Indias FDI inflows retains its character of being long-term inflows (rather than short
term inflows or portfolio investments)
2. Definition of FDI adopted by India provides data that allow us to make the distinction
between long-term investments and portfolio investments
3. India succeeds in its true interest of obtaining access to state-of-the-art technologies
and proprietary technologies from the FDI
4. Its retained earnings are less, as the retained earnings increase the host countrys
liabilities without actually transferring resources from abroad
5. Effective policies and laws are implemented to restrict or reduce the share of
reinvested earnings and also to keep a check on inflows and outflows
India should also be aware of the two sets of costs that it has to bear:
Direct cost stemming from outflows on account of operation of foreign companies; and
Indirect benefits, that the foreign investors are able to extract from their host
economies by using bilateral investment promotion and protection agreements (BIPA)
India has become the most open economy in the world for FDI but can the country
expect to benefit from this form of investment? Critically comment.
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TOPIC:
General Studies 2:
arising out of their design and implementation; Governance issues
General Studies 3:
Indian Economy and issues relating to mobilization of resources, growth, development;
Banking Issues
Tightrope walkfor the new RBI Governor
FCNR (B) Redemption
The redemption pressure of the Foreign Currency Non-Resident (bank) deposits, or the
FCNR (B) deposits will increase as the outflow would start in September.
Usually it is considered to be a non-event; however, if foreign exchange flows dry up due
to Brexit (as banks will struggle to deliver more than $10 billion of forwards to the RBI
after maintaining nostro balances of $10 billion to $15 billion) it may inflict damage on
the Indian financial sector.
Scheme:
These deposits were raised in 2013 to accumulate foreign currency due to the worsening
balance of payment conditionswhen the rupee was depreciating sharply and went on
to hit its lowest against the dollar in August 2013
RBI offered a special window to the banks to swap the fresh FCNR (B) dollar funds,
mobilised for a tenor of three years to five years at a fixed rate of 3.5 per cent annually
for the tenor of the deposit.
Way Ahead:
Need to take a closer assessment as we reach closer to the time of maturity of the FCNR
(B) deposits.
The liquidity tightness that time would have to be replenished by stepping-up open
market purchases
RBI has entered into currency swaps and forwards, and that should take care of the
dollar requirement and be neutral for the reserves
RBI will keep systemic liquidity at ease and additionally could consider a combination of
three options arrange for a sizable amount of higher tenor term repo; followed by
OMO purchases; and reduction in daily cash reserve ratio maintenance from 90 per cent
to 70 per cent of the net demand and time liabilities for the stipulated period.
Besides the swap arrangements and forex flows from exports, RBI can utilise the foreign
exchange reserve, which stands at $363 billion as of April 29, 2016. Additionally, RBI can
also use the line of credit arrangement with other central banks
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Monetary Policy Committee
New rules: MPC is a departure from the present practice where the entire onus rests on
the governor for any rate decision. While the governor will have the casting vote if there
is a tie, the responsibility will be shared by the committee. The governor has to ensure
that he does not opt for the casting vote frequently.
The transition to the new policy framework would require more discussion and better
discipline, to ensure with this committee approach which will improve credibility of
decision-making
Refer: Clipping RBIs wings: On deciding monetary policy

Burden of Expectations
Expectation of sharp cuts in interest rates: Difficult to manage rate cut expectation of the
government and the industry at a time when inflation is on the rise
This at a time when retail inflation accelerated to a near two-year high of 5.76 per cent
in May, driven by surging prices of food products such as pulses and sugar
The Consumer Price Index-based and the Wholesale Price Index-based inflations are
climbing.
Food inflation rose by 100 basis points, headline inflation moved up by 60 basis points,
and after excluding food, fuel, petrol and diesel, inflation edged up marginally and
remained sticky in April.
To counter food inflation, RBI can only cut liquidity and keep interest rates high. With 7 th
Pay Commission handing more money in the hands of the consumers, itll be difficult to
cut liquidity
Refer: Indias Inflation Outlook

http://iasbaba.com/2016/05/iasbabas-daily-current-affairs-31st-may-2016/
Cleaning up Banks
Bad loans have skyrocketed to Rs 5.8 lakh-crore Crisil has downgraded nine banks
since March and expects stressed loans to rise to Rs 7.1 lakh crore by the end of 201617.
Banks must be recapitalised after the write-offs and additional capital brought in to
meet Basel-III norms.
Recapitalisation involves political decision as the bulk of the bad loans, roughly 90 per
cent, are in public sector banks but the responsibility would still stay with the Central
Bankwhich if not managed properly, could lead to structural problems that can cripple
the entire economy.
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A massive overhaul and reform of banking processes is required to prevent this sort of
bad loan situation building up again and RBI needs to give advices in a well-thought
politically acceptable ways.
With public sector banks burdened with bad loans, it will be a challenge to kick-start
lending in the economy for growth to revive
Refer:Fashioning a Banking Turn- Public Sector Banks


General studies 3
Transport and marketing of agricultural produce and issues and related constraints; etechnology in the aid of farmers
Dynamics of National Agricultural Market
National Agricultural Market (NAM) is designed to serve as a pan-India electronic trading
portal which networks the existing APMC mandis to create a unified national market for
agricultural commodities.
Highlights:
Pilot phase: includes 21 markets in eight States and 11 commodities

Integrate 585 mandis by 2018 (8 per cent of the nearly 7,500 regulated markets) while
covering a small fraction of the vast range of agricultural commodities marketed and
traded, both inside and outside mandis across the country
Promote transparent operation
Play a key role in doubling Indian farmers incomes by 2022
To participate on e-NAM, states have to modify their respective APMC acts to allow a
single state-wide trading licence or move towards a regime based on registration rather
than licensing.
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Point of Focus
Encourage States: More states need to be encouraged to participate and the compliance
can be ensured via Digital initiative and the idea of last-mile delivery via better
infrastructure.
Large mandis should lead the way: will create a demand-side pull and attract more farmers
to the e-NAM
Create validation: Success needs to be brought about early for its spill-over effects to take
place. Increasingly, the government should aim for better management of perishables.
Licensing reform: It is a very significant shift, away from the current system of local mandispecific licensing and therefore, it requires dealing away with restrictions and rents on
licenses to new buyers that often limited the pool of buyers in primary markets, especially
for parties located outside the State and its entrenched networks.
Standardisation of System: Along the provision of quality assessors to certify the produce,
there has to be an institutional attempt for quality standardisation
Need much more competitive, integrated and well-appointed local markets, where both
local traders and extra-local online buyers can bid on the produce brought by farmers to
their mandis
Need to standardise the logistics (transportation and shipment charges) aspect as well
Ease of movement needs to be secured against the maze of permits, the condition of the
road network, the inability of the railways to transport commodities at a scale
transportation accounts for 14 per cent of the supply chain costs
The lack of specialised agricultural produce transportation vehicles needs to be done
away with the help of the Make In India programme
More investment in invested in basic facilities like warehouses, cold storages and
inventory management systemsproper price discovery and national trading needs to
be backed up by massive investment in storage sites and facilities
Private players need to be encouraged to spend on research and development on
mobile cold storages
Encouraging large farmers, APMCs or transport operators to buy fit-for-purpose
vehiclesgeographical boundaries to be diluted
There is also a need to address the marketing challenges of many producers still
restricted to transacting, under very unfavourable conditions, outside market yards. This
can be emphasised upon as an opportunity for both a more comprehensive and
contextual approach to market reformincluding support to new and promising
institutional forms such as producer companies, especially among small and marginal
farmers working in rain-fed regions.
The opening up of the food-processing sector for foreign direct investment (FDI) should be
complemented with the above steps.
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Do away with the opaqueness of operations

There needs to be incorporated an element of transparency w.r.t. clearing (matching
buyers and sellers and assigning trades) and settlement (exchange of the traded
commodity and money between buyers and sellers).
The government needs to spend time and resources in educating potential participants
in the market, making features and associated fall-backs of e-NAM
Financial Inclusion: The government should find a way to extend the financial inclusion
programmes for agricultural credit to bring the bottom of the pyramid population into the
financial net
Connecting the Dots
1. Is there a need for the Centre to enact a Right to Trade law to create a true national
market for agricultural produce? Discuss.
Refer:
E-platform for trading farm produce to make agriculture remunerative
The need for unifying agricultural markets
http://iasbaba.com/2015/11/iasbabas-daily-current-affairs-26th-november-2015/

Indian economy and issues relating to planning, mobilization of resources, growth,
development and employment
India needs a robust corporate bond market
Background:
The financial condition of Indian banks has deteriorated in tandem with the economic cycle
since 2013. A 2013 report by India Ratings and Research, an arm of Fitch Ratings, predicted
further deteriorationRs.1.26 trillion of bank loans may potentially be in distress over the
next 12 to 24 months.
What is bond market?
Corporates, governments and individuals rely on various sources of funding to meet their
capital requirements. Specifically, corporates use either internal accruals or external sources
of capital to finance their business. The capital raised by companies through debt
instruments is broadly referred to as corporate debt.
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Corporate debt consists of broadly two types

Bank borrowings: consist of project loans, syndicated loans, working capital, trade finance,
etc. for various business purposes and for varying durations through non-standardized and
negotiated bank loans.
Bond: Corporate bonds are transferable debt instruments issued by a company to a broad
base of Investors.
a) Corporate bonds are issued to the public (similar to equity instruments)
b) Listed on stock exchanges and traded in secondary markets
c) Are transferable
d) Possess a broad base of issuers (ranging from small companies to conglomerates and
multinationals) and investors (including retail participants)
e) Are under the additional purview of the regulators of the securities market other than
the central bank.
There are three main pillars that make up the corporate bond market ecosystem:
1. Institutions: securities market regulator, the banking regulator, the credit rating
agencies, clearing houses, stock exchanges and the regulations and governance norms
prescribed by these institutions
2. Participants: The market players- investors on the demand side and issuers on the
supply side.
3. Instruments: indicate the form and features of securities issued in the corporate bond
market. Interest rate and currency derivatives and government securities
Vibrant, deep and robust corporate bond markets are essential to enhance stability of
financial system of a country, mitigate financial crises and support the credit needs of
corporate sector, which is vital for the growth of an economy. However, a sudden
expansion of corporate bond markets without the necessary support structures is
unsustainable and can cause strain on the financial system if the prevailing credit quality of
corporate bonds is compromised or companies overleverage their balance sheets.
Why bonds over banks?
Non-performing loans have been climbing and the problem of restructured assets has also
been increasing over recent quarters. Such restructured loans as well as the usual bad loans
now weigh down bank balance sheets. The deterioration in the asset quality of banks is an
important challenge for the Indian economy when India continues to have a financial system
that is dominated by banks.
Reasons for opting a bond market includes:
1. Indian banks are currently in no position to rapidly expand their lending portfolios till
they sort out the existing bad loans problem.
2. The heavy demands on bank funds by large companies in effect crowd out small
enterprises from funding.
Thus, India needs to eventually move to a financial system where large companies get most
of their funds from the bond markets while banks focus on smaller enterprises.
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India and bond market

Luengnaruemitchai and Ong (2005) opine that crowding out by government bonds is one of
the potential obstacles to healthy corporate bond markets. A high level of public debt
crowds out corporate borrowing by reducing the appetite of financial institutions. This
increases the cost of borrowing for corporates making bond markets an unviable source of
funding (Aca and Celasun, 2009). On the contrary, Raghavan and Sarwano (2012) conclude
that in case of India, unlike economies like Korea, the development of the government bond
market has in fact had a positive effect on the corporate bond market.
In the Indian context, Mitra (2009) focuses on the supply side issues hampering the
development of corporate debt markets in India and lists the lack of diversity in
instruments as a major factor.
Indian bond market
Primarily dominated by fixed rate coupon bonds
The average age of the bonds issued by Indian corporations is only 5 to 7 years
Role of RBI:
RBI has added an important new element to this debate in its new Financial Stability
Report, which has a section on the optimal configuration of a financial system, or how
much of funding is through banks and how much through the bond market.
According to the central bank, with banks undertaking the much needed balance sheet
repairs and a section of the corporate sector coming to terms with deleveraging, the
onus of providing credit falls on the other actors.
Under pressure from the Reserve Bank of India (RBI), public sector banks have begun to
admit the extent of their bad loan problem. Over the past year, the Reserve Bank of
India has stepped up pressure on big corporate debtors to pay up, despite the absence
of an effective national bankruptcy law. Stressed assets accounted for an estimated 14
per cent of Indias total banking system as of September, according to the RBI.
A government source said that in the past, promoters [controlling shareholders] had a
tremendous amount of leverage in the system who were able to get fresh loans as well
as evergreen *extend+ existing loans. And hence, the bankruptcy code will be a gamechanger, strengthening the hand of creditors.
World Bank says
From the perspective of a developing economy, the World Bank (2000) observes that the
corporate bond market in a country can substitute part of the bank loan market, and is
potentially able to relieve the stressed banking system in a developing country of
unbearable burden. Development of corporate debt markets needs strong institutional and
regulatory support. The World Bank (2000) specifically identifies seven necessary
developmental components for the effective functioning of vibrant bond markets. Any
absence, deficiency or inefficiency of any of these components can potentially stall the
development process. These components are:
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1.
2.
3.
4.
5.
6.
7.
Disclosure and information system

Credit rating system
Effective bankruptcy laws
Market intermediaries
Institutional investors
Trading system and clearing platform
Depository system
Way Ahead
Indias corporate bond market needs liquidity, transparency, safe and sound market
infrastructure, appropriate institutional structure, etc.
Regulatory efforts are on to enable wider participation in the market and create scope
for market making. This would facilitate the growth of the corporate bond market,
which would directly cater to the needs of the real economy and the financial sector.
Corporate bond market is still shallow in India, issuance concentrated in few highly rated
firms. Securitisation is at its minimal level. Hence diversification and awareness among
the investors can increase the investor base in this market. Therefore, a collaborative
effort of all stake holders including RBI, SEBI, Finance Ministry and co-operation of
market participants can develop Indian debt market.

How can the bankruptcy code boost the corporate bond market? Discuss the limitations, if
any.
Refer:
Non-performing assets and recent steps to clean them up
The problem of debt concentration
Fashioning a Banking Turn- Public Sector Banks
Indradhanush Plan for Public Sector Banks (PSBs)
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Indian Accounting Standards
In news: SEBI extended the deadline for some listed companies to file their results for the
quarter ending June 2016, to give them additional time to comply with new Ind AS rules.
The companies now have the time till September 14, 2016 to declare their quarterly results
with the new accounting standards.
Ind AS?
What: The Indian Accounting Standards or Ind AS
To:
govern the accounting
recording of financial transactions
presentation of statements such as Profit and Loss account and Balance Sheet of the
company
What are financial statements?
Structured representation of financial position and performance of an entity
Shows the results of the management of the entity that are entrusted with resources
Gives information about assets, liabilities, income and expenses, cash flow, etc.
Sectors to be affected: Metals, telecoms, oil & gas, and real estate are likely to be impacted
most post the implementation of Ind AS.
Background
Who: National Advisory Committee on Accounting Standards (NACAS) recommended Ind AS
standards to the Ministry of Corporate Affairs (MCA)
For: Commercial Banks (Banks), Insurance Companies (Insurers) and Non-Banking Financial
Companies (NBFCs)
Earlier: India was following accounting standards from GAAP prior to adoption of IndAS.
Applicability: mandatorily to be followed by companies having net worth of Rs. 500 crore
(US$74 million) or more from 1 April 2016
International Accounting Standards
The globally accepted format is International Financial Reporting Standards (IFRS) for
company accounting.
To: Design a common global language for business affairs so that company accounts are
understandable and comparable across international boundaries.
Why: IFSR are progressively replacing the many different national accounting standards.
They are the rules to be followed by accountants to maintain books of accounts which are
comparable, understandable, reliable and relevant as per the users internal or external.
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Indias stand: Firms resisted the shift to IFSR stating drastic changes in numbers. Thus, Ind
AS chosen as a middle path to harmonise Indian accounting rules with IFSR
Importance of Ind AS
Changes the way companies present their position; either increase or decrease
profits/losses of the firm
Pre-Ind AS
Post-Ind AS
Incentives, discounts or rebates given to Incentives, discounts or rebates given to
customers could be shown as part of customers will have to be deducted from
advertising, sales promotion or marketing sales (revenues).
expenses. This was cost to company.
Excise duties taken away from revenues to Excise duties will now come under
show net sales
expenses
Intangible assets like goodwill were Intangible assets like goodwill has indefinite
amortised or written off as expenses over a life and hence neednt be amortised. This
period of time.
can increase profit of the firm which carry
sizeable goodwill in books
Investments by a company in government Advocates the fair value method of
securities or mutual funds is shown at the accounting
lower of cost ormarket value.
Will have to be necessarily be captured at
fair value.
For firms which have legacy or undervalued
investments, this revaluation can expand
the balance sheet size
Companies reported their segment-wise Segments reported to investors are the
performance
based
on
a
broad same as the firm uses for the purpose of
product/service
grouping
or
even assessing performance and allocating
geographical segments (within India, resources.
Outside India).
Promises clearer disclosures to investors in
certain cases
Dynamics of Ind AS
Higher disclosure requirements contained in Ind AS can help make more informed
decisions about its investment worthiness
In the coming quarterly results, compliance with Ind AS rules could lead to blips in
profits earned by listed firms, due to a change in the method of accounting. (Profit blips
don't mean a banking crisis)
May take some time for analysts to get used to the new format.
Markets could even beat down stocks whose earnings dont meet expectations.
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1. The new Indian Accounting Standards are expected to bring in global best practices of
accountingCritically examine

Inclusive growth and issues arising from it.
Can India achieve 8% GDP growth for 2016-17?

Indian Economy Scenario
The Central Statistics Offices (CSO) provisional estimates for the Indian economy for 201516 show that the Indian economy growing at 7.6 per cent in 2015-16 and predicts that 8 per
cent growth is around the corner.
In 2016-17, the upbeat view is that we can expect a boost to growth in the coming year
from three sources:
1. rural consumption (thanks to better monsoons),
2. urban consumption (thanks to the impending Seventh Central Pay Commission
award), and
3. increased government capital expenditure projected in the Budget for 2016-17
Global Economic Scenario
Ever since the global financial crisis broke (2007-08), the economy has not behaved
the way economic textbooks prescribe.
Economic policies are proving to be singularly ineffective in reviving the global
economy.
Governments have failed to control running levels of fiscal deficits and public debt.
Central banks have been experimenting with unorthodox policies such as
quantitative easing, zero interest rate and now negative interest rate policy.
However, all these efforts and policies have failed to revive the economy.
Why 8% growth is difficult to happen?
First, manufacturing has grown at 8.1 per cent at current prices. This is not matched by
the growth in the Index of Industrial Production (IIP), which is only 2.4 per cent.
Second, it is hard to explain how manufacturing growth has been so strong when
exports asa whole have contracted.
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Third, as the Centre for Monitoring Indian Economy has pointed out, a big chunk of the
growth in 2015-16 has come from an item called discrepancies in the CSOs statistics
(in plain language, an item about which we know little).
I.e. of the growth of 7.6 per cent in 2015-16, 2.4 percentage points were accounted for
by discrepancies.
Continued weakness in the world economy, problems in our banking sector, the ongoing
fiscal consolidation and the falling investment rate mean a return to 8 per cent growth
may not happen anytime soon.
Also, a key factor boosting Indias growth in 2015-16 was the decline in world oil prices.
Lower oil prices translate into higher private consumption.
Now both the estimates of Central Statistics Office and Economic Survey are based on
the assumption that this benefit (low oil prices) would continue to accrue to the
economy in 2016-17. (CSO estimated that oil prices to be $50 per barrel and Economic
Survey assumes it to be $35 per barrel) However which may not happen
This assumption seems wrong as oil prices have already moved up to $50 per barrel. If
they stay at this level, there is every prospect that the gains in 2015-16 on account of
falling oil prices would be absent.
Some mixed signs for the economy
The Pay Commission hike could contribute about 0.6 per cent of the GDP depending on
how much of it is fully paid out in 2016-17.
A better monsoon could add about 0.3 percentage points.
However, the recent rise in oil prices could thus overwhelm potential gains from better
monsoons and the pay hike.
Given global uncertainties, export demand will improve only marginally.
Most analysts predict that increase in government spending might improve the
aggregate demand, but increased public expenditure may lead to fiscal deficit.
The fiscal deficit factors in not just increases in capital expenditure but also declines in
other government expenditure as well higher taxes. Fiscal consolidation planned for
2016-17 means that demand will shrink by 0.4 percentage points of the GDP.
Lastly, we cannot expect private investment to pick up given that corporate balance
sheets are stressed and real interest rates very high.
Conclusion:
Adding up all the pluses and minuses estimated above, we get a fall in GDP growth. This
means that growth is likely to end up closer to 7 per cent in 2016-17.
And this is without factoring in the potential for upheaval arising from Brexit, a rise in
U.S. interest rates and a further slowing down in China.
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Raising the growth rate to over 8 per cent in the next two or three years is a huge
challenge. Its a challenge that certainly cannot be overcome as long as the government
operates within the present straitjacket of fiscal consolidation and inflation targeting;
policies that tend to reduce growth in the medium-term.

1. The Central Statistics Offices (CSO) estimates for the Indian economy predicts that 8 per
cent growth is around the corner. Do you agree? Critically analyze why raising the
growth rate to over 8 per cent in the next two or three years is a huge challenge.

Issues relating to development and management of Social Sector/Services relating to
Health, Education, Human Resources.
Taking Pensions to the poorAtal Pension Yojana (APY)
When: APY was introduced in 2015
For: The unorganised sector workers who do not have sufficient and reliable old age security
Earlier called: Swavalamban Yojana NPS (National Pension Scheme) Lite
Objective: To encourage unorganised workers to make regular small savings during their
working years towards pension benefits later
Regulated by: Pension Fund Regulatory and Development Authority (PFRDA)
This is an important policy shift away from social assistance schemes to contributory
schemes.
Features
Monthly pension:
Ranging from Rs. 1,000 to Rs. 5000 is guaranteed upon retirement (Age= 60 years) if
subscribers contribute the prescribed amount for at least 20 years.
In NPS-Lite, the pension amount was uncertain.
Government contribution:
Government of India (GoI) will co-contribute 50% of the subscribers contribution or Rs.
1,000 per annum, whichever is lower.
The Governments co-contribution is available for those who are not covered by any
Statutory Social Security Schemes and is not an Income Tax payer
It is available for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who join the
scheme during the period from 1st June, 2015 to 31st December, 2015
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Age group:
The subscriber should be between 18 - 40 years
Therefore, minimum period of contribution by the subscriber under APY would be 20
years or more.
Key functions:
Record keeping, administration and customer service are performed by National
Securities Depository Limited.
A Permanent Retirement Account Number (PRAN) is assigned to all subscribers.
Under a broader framework: Becomes a part of financial inclusion under the Pradhan
Mantri Jan Dhan Yojanausing banks as intermediaries for promoting, administering and
extending pension benefits to low income workers.
E-governance focus: To use mobile SMS reminders/alerts, electronic KYC-based registration
and online exit, withdrawal, claims settlement processes to overcome last mile challenges
and simplify the experience.
However, unorganised workers covered by it are barely 1 per cent.
Existing limitations
Major impediment- Stringent default penalties:
If a subscriber misses six months consecutive contributions, the account is frozen
After 12 months, it is deactivated
Beyond 24 months, the account is permanently closed.
Considering that APY is meant for unorganised workers with irregular income streams, this
feature reduces the schemes effectiveness.
Limited government co-contribution:
Although co-contribution has been extended to 2019-2020, this could be availed of only
by those joining before March 31, 2016 (revised from December 31, 2015).
In such a case when the coverage of the scheme is less than 1 per cent, many
unorganised workers joining the scheme in future may not be able to fully access it.
Poor agent incentives:
Increased responsibilities: Banks are asked to administer APY so that new bank accounts
opened under PMJDY could be used for promoting the scheme and expanding financial
inclusion among the economically excluded.
Lesser incentives: In comparison to responsibilities, incentives to banks are considerably
lower than those provided in previous schemes. Here, the incentives have to be
mutually negotiated, and shared between banks and business correspondents.
Poorer reach: Due to low financial inclusion and low penetration of bank branches in
rural areas, it will come in the way of the rural poor accessing the scheme.
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Lower flexibility in exit and withdrawal:

Rigid exit process as the scheme permits premature withdrawals only in the event of
death or terminal disease of the beneficiary.
Subsequently, the exit option was given to the beneficiary if she/he gave up the
governments contribution and interest earned on his/her contributions.
Thus, this reduces the reach of scheme considering that poor unorganised workers are
highly vulnerable to workplace injuries, accidents and disability.
Scope of improvement
Removing account closure for defaults:
If there is sustained non-payment, a system should be devised by which subscribers are
no longer entitled to a fixed monthly pension on retirement as per APY
But, they can continue making suitable contributions to the APY account at his/her
discretion to get different returns.
At retirement, 40 per cent of the accumulated corpus can be converted into an annuity
and the rest can be offered as a lump sum.
Encouraging mobile money payments:
APY hopes to leverage PMJDYs success to expand its coverage among low income
workers.
According to the RBI, though there is increased account density among underserved
communities in PMJDY, the account usage is low with nearly 35 per cent of such bank
accounts having zero balance.
This requires the deployment of low cost and flexible mobile money channels, which is a
newly emerging technology, to improve last mile access to banks for the rural poor.
Ease of premature exits and withdrawals:
APY should provide for partial withdrawal of the corpus in an emergency after a
reasonable lock-in period of 5 or 10 years.
Public Provident Fund schemes have a 15-year lock-in period prior to full withdrawal,
and allow 50 per cent withdrawal at the end of the sixth year. APY should introduce
similar flexibility.
Enhancing behavioural interventions:
Recently, behavioural interventions or nudges have attracted significant attention as
low cost policy tools to cause desired savings behaviour.
Studies around the world show that nudges such as peer comparison, commitment
devices, goal-setting calendars and personalisation are effective in overcoming selfcontrol issues and prompting regular savings.
Although APY has incorporated SMS reminders and auto-debit facility, scope for
embedding behavioural interventions into the APY design still exists.
Thus, these improvements are urgently needed to improve the coverage of unorganised
workers and enhance old age security among them.
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1. Do you think Atal Pension Yojana has the potential to provide post retirement social
security to 90% unorganised labour in India? Discuss.
TOPIC:
General Studies 3

General Studies 2
affecting India's interests
Important International institutions, agencies and fora- their structure, mandate.
Indias role in a changing global economy

Introduction:
India has become the fastest-growing country even as the global economy has
weakened.
This is because India got benefitted from a confluence of factors such as the
reduced international price of energy and resilience in domestic private
consumption.
However, if India has to continue its sustained growth leadership, it should carefully
study and assess the global outlook and international policy agenda impacts.
Concerns: We have earlier read that
Global growth has been underperforming in recent years

Since 2008 financial crisis, the cyclical nature of industrial country growth has been
deeper than expected
This underperformance is increasingly structural in nature, i.e. it will affect emerging
markets as well
Therefore, this article gives a solution for above concern It advocates for an urgent
requirement for a global policy agenda to address the rising structural weaknesses.
And the article also discusses that India must play a key role in helping to build and
implement such a global agenda, as part of the process in sustaining its own growth.
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Factors that affect Indian Economy:

Global structural weaknesses deserve to be looked at carefully. They arise from both supplyside factors and demand constraints, affecting global trade, a critical growth engine in
recent decades:
1. Low productivity: Productivity has clearly been falling in industrialised countries, and in
emerging markets, leading to supply shortages.
2. Spillover effects: Chinas slowing growth has had significant spillover effects on other
countries.
3. Falling investments and innovations: There is rising consensus that the spillover effects
led to falling investment returns, perhaps from slowing innovation that has reduced
investment.
(Greater research and increased competition, especially in the service sector, would help
raise investment and productivity.)
4. Poor demand and rising inequalities: The imbalances slowing growth possibly also
reflect an overall demand shortfall.
Why has demand slowed down?
Demand was likely boosted by debt in many advanced and emerging market countries,
sequentially, and capital is now at the risk of moving out of emerging markets.
Additionally, many believe rising inequalities in advanced countries and key emerging
markets have reduced the propensity to consume and produced what is called a savings
glut in many countriesthe counterpart of a demand-side constraint which feeds the fear
of deflation.
5. Global trade has stalled far below the long-term annual average trade growth of at least
5% until the start of the financial crisis, and even more, in emerging markets.
It is not just cyclical in nature: there is evidence that trade elasticity to income has
fallen, especially in the United States and China. Of course, trade liberalisation has
slowed significantly with the collapse of the Doha Development Round.
India is and will be affected by all these factors.
Especially on the investment side, corporate investment remains low and higher
levels of public infrastructure are needed to meet supply bottlenecks and crowd in
private investment.
On the demand side, inequalities have clearly increased in recent years and exports
remain weak though India has been relatively protected from the factors affecting
Chinas reduced trade.
What India should do?

While each of abovementioned factors require concerted domestic policy reforms, India
also needs to be fully engaged in the emerging G20-led international policy agenda being
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developed to deal with global structural weaknesses and raise public investment where
fiscal space is available.
1. Indian markets should remain attractive:
India and many other emerging markets clearly offer higher investment returns
partly on account of their demographicsand should remain attractive to the
global savings glut with their deepening international integration.
2. India should reap the benefits out of WTO trade facilitation and reduced trade costs:
With the failure of the Doha Round to move ahead with multilateral trade
liberalisation, other efforts are being proposed to revive trade. Thus far, India has
not benefited as much as others like China (as it did after securing World Trade
Organization (WTO) membership), from the trade booms in recent decades.
But India has ratified the deal reached by the WTO on trade facilitation, which
should, potentially, significantly reduce trade costs.
3. India should increase its trade integration through more regional and bilateral trade
agreements:
A number of regional and bilateral trade agreements have been proposed, some
going beyond manufacturing, to cover agriculture, investment, business, and other
services where India has comparative strength.
In any case, steps to raise Indias trade integration more quickly in the South Asia region
would help catalyse new investment and competition.
4. India must play a key role in helping to build and implement a global policy agenda
There is the issue of the international monetary system and how it manages the
volatility of global liquidity.
Also at stake are the spillovers from domestic monetary policies, especially from the
industrialised countries, and their implications for global liquidity.
Therefore, there is an urgent requirement for a global policy agenda to address the
rising structural weaknesses and better manage the volatility of global liquidity.
The International Monetary Fund (IMF) is now discussing a road map for
strengthening the international monetary system, and India needs to be part of the
brainstorming behind it; how to better manage liquidity shocks and deal with
external financing needs.
Indias increased role
Indias role is especially important as tomorrows key financial playersofficial and

privatewill come from emerging markets and their rising financial integration will
impact global liquidity.
In order to better manage the volatility of global liquidity, there is a need for a global
mechanism.
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In the absence of such mechanism, the world will continue to be vulnerable to the
sudden drying up of liquidity or of disorderly acceleration in capital flows. This risk, in
particular, is now a major concern in the current international monetary situation.
Need of the hour: A transformed and strengthened IMF
India has advocated that the role of IMF should be transformed to act as the global
mechanism, with the mandate and instruments that would allow it to regulate global
liquidity in addition to its other functions.
IMF should be provided with a stronger governance framework that reflects the
rising role of emerging markets, a mandate for effective surveillance, stabilisation of
global liquidity and exchange rates, mechanisms for reducing the risk of disorderly
spillovers, and for dealing with debt restructuring. Eventually, the IMF would need to
be better equipped with a monetary asset instrument to deal with changing global
liquidity.
Such a transformed IMF could be charged, in cooperation with national and
international central banks, with continuously monitoring global liquidity flows and
taking the regulatory decisions needed to manage the same.
Undoubtedly, it will take time to build the necessary global consensus. To achieve it,
international public opinion needs to be better informed of the ongoing risks of
instability inherent in the current system.
In fact, in todays climate, it is highly desirable for major stakeholders to take this
initiative forward and convene a new Bretton Woods II conference to consider the
necessary changes in the Articles of Agreement of the IMF.

1. Highlight the factors and global structural weaknesses that affect Indian Economy and
examine why there is an urgent requirement for India to fully engage in the emerging
G20-led international policy agenda to address the rising structural weaknesses.
2. Highlight why there is an urgent requirement for a transformed and strengthened IMF in
a changing global economy.
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TOPIC:
General Studies 2
arising out of their design and implementation
General Studies 3
Benami Transactions (Prohibition) (Amendment) Bill 2015
What is a benami transaction?
When a transaction is done in name of a person other than the one who finances, is called
benami transaction.(Benami literally means without name)
If person A pays the money for Property X, but the property is transferred in name of person
B, person B is benamdar and Property X is called benami property. Person A is the real
owner
Does the benami holder benefits?
The ultimate beneficiary is the person who pays for it, i.e. the real owner
Benami transactions act as escape-valve for the financers.
No benefit is intended upon the benamdar. He/She/It is just an alias
Purpose of benami transaction
The purposes are mostly illegal ones
They were made to find a way with land ceiling laws (the real owner had more property
than legally mentioned due to benami transactions)
The land owner would transfer property in name of family and relatives or other
fictitious/ghost names to evade taxation as provided by tax laws
To circulate black money in the market
Benami Transaction Act 1988
To put an end to such benami transactions
To empower government to recover benami properties
Loopholes
Lack of proper machinery for proper and strict implementation
Absence of appellate mechanism
Lack of provision with centre for vesting confiscated property
Excluded
Buying property through known source of income in names of spouse or children and
others as specified
Akarta of the Hindu Undivided Family
A person standing in fiduciary capacity for the benefit of another person such as a
trustee, executor, partner or director of a company
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Why in news?
The Union Cabinet has given approval to amend the Benami Transactions Act 1988 vide
Benami Transaction (Provision) (Amendment) Bill 2015
It is in continuation with governments efforts to curb black money.
Provides for: confiscation of assets held in name of another person or a fictitious name to
avoid taxation or obtain wealth illegally.
Similar scheme to curb black money: Black Money (Undisclosed Foreign Income and Assets)
and Imposition of Tax Act, 2015 to catch those with undisclosed foreign assets.
Benami Transaction Bill
Flashback: It was tabled in 2015 and was referred to Parliaments standing committee on
finance.
Aim: to curb domestic black money
Fine: upto 25% of fair value of assets and 7 years of imprisonment. (Earlier bill had either
fine or imprisonment)
Property: will cover movable, immovable, tangible and intangible properties. If joint
ownership, tax payer will have to show financing sources
Other changes:
Providing more time to allow property holders to furnish information,
A time-bound process for initiating investigation and for filing appeals.
Amendments aims at
Strengthening the bill in terms of legal and administrative procedure so that practical
difficulties be overcome
Prohibiting benami transactions and consequently prevent circumvention of law through
unfair practices
Immunity to: those who declare their benami properties under income declaration scheme.
Details of
The bill is expected to be tabled in Monsoon session of Parliament in 2016
Curbing Black Money
Benami Transaction Bill can also be complemented by various government initiatives to
curb black money. One of it is making a cashless Indian society.
A vast network of off-the-book transaction and unbanked money lies beyond the reach
of tax authorities, anti-corruption investigators and creditors.
Estimated Figure: Around $460 billion a year. Bigger than GDP of Argentina
Reasons for black money
More than half of Indias output comes from small, informal sector. Dealing in cash is a
norm
Taxes are cumbersome to pay, easy to avoid
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Direct tax contributes only 35% of the total tax collected. (OECD ideal is two-thirds). The
upper class is benefited most by existing tax benefits
Indirect taxes are distortionary and regressive due to excess dependence on indirect
levies such as sales tax and excise tax.
Banking revolution: Can push up the need of cashless transaction.
It already provides for most sophisticated public payments infrastructure in the world.
Introduction of Unified Payment Interface by RBI- easier for consumers to use mobile
phones for money transfer
The ideas is to shift from
Low-volume, high-value, high-cost and high fees high-volume, low-value, low cost and no
fees money transactions
Thus, concentrated efforts of government to barricade black money transactions from all
sides viz.domestic laws, foreign agreements, banking reforms etc. is the need of the hour.
1. The fight against black money is expected to be intensified post the enactment of new
changes in Benami Transaction law. Identify the steps taken by government to curb the
menace of black money.
Refer:
Black Money Law-will it act as deterrent?
http://iasbaba.com/2015/05/big-picture-black-money-law/
No immunity for wealth generated from graft
Measures taken by the Government to Curb Black Money in the Country
http://iasbaba.com/2016/05/iasbaba-press-information-bureau-pib-25th-april-to-1st-may2016/
TOPIC:
General Studies 3
General Studies 2
Important International institutions, agencies and fora- their structure, mandate.
How mis-invoicing is robbing developing countries of export earnings?
About: According to Global Financial Integrity (GFI) December 2015 report
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Trade misinvoicing was revealed to be the largest component of illicit financial flows
(IFF) from developing countries
It accounted for 83.4% of all illicit flows
Figures say it all:
$1.1 trillion that flowed illicitly out of developing countries in 2013 was greater than what
they received by the combined foreign direct investment (FDI) and net official development
assistance (ODA).
Context:
Increasing exports form one of the most important routes to develop fortunes of a
developing country.
But, there is a possibility that what the developing countries might rightfully gain
through trade may get usurped by others through various means and methods.
Trade misinvoicingis an important route contributing to it.
Hence, UNSDGs has incorporated curbing IFFs into its framework.
What is trade misinvoicing?
Invoice: An invoice shows what a buyer has to pay to the seller.
Misinvoicing: The amount actually paid or obtained may be higher or lower than the
amount indicated in the invoice.
How it works?
Country A exports $100 item to Country B.
Country B shows amount in its books after making adjustments as there would be a
calculating difference
Difference would exist as:
Export calculated on Free on Board (fob) basis
Import calculated on Cost, Insurance and Freight (cif) basis
Trade mis-invoicing happens when there is a difference in the amount even after factoring
the basic calculations.
There might be under-invoicing by exporters or over-invoicing by importers.
Export underinvoicing- value of exports for exporting country is less than what the
importing country reports as imports after adjusting for cif.
Exporter reportsinvoice of $100 for goods worth $120. In reality, he will deposit the
$100 officially and $20 will go into his personal account.
Import overinvoicing- adjusted value of imports for importing country is more than
what the exporting country reports as exports.
Importer reports invoice of $120 for goods worth $100. He pays $100 in reality and the
remaining amount is deposited in his foreign accounts.
Another example
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Although the Indian importer is buying $1 million worth of cars from the U.S. exporter,
he uses a Mauritius intermediary to re-invoice the amount up to $1,500,000.
The U.S. exporter gets paid $1 million.
The $500,000 that is left over is then diverted to an offshore bank account owned by the
Indian importer. This is case of import over-invoicing
Reasons for trade misinvoicing

Money laundering
Tax evasion-To maximise the profits by tax evasion in either of the countries.
Dodging Capital Controls-Many developing countries have restrictions on the amount of
capital that a person or business can bring in or out of their economies. Investors
attempting to break these capital controls often misinvoice trade transactions as an
illegal alternative to getting money in or out of the country.
Bureaucratic bypass- To circumvent bureaucratic hurdles to speed up execution and
settlement of transactions
Such activities often take place along with legitimate trade, which provides a good cover.
Extent of trade mis-invoicing in developing countries
Preventing trade mis-invoicing requires to first identify the countries and its exact products.
UNCTAD study: Developing countries exporting primary products have reportedly high
levels of trade mis-invoicing.
Study countries: Chile, Cte dIvoire, Nigeria, South Africa and Zambia
Primary products exported:
Oil and gas
Minerals, ores and metals (copper, gold, iron ore, silver and platinum)
Agricultural commodities (cocoa).
Why these countries: exports of these commodities constitute a large part of their total
exports. They are also called Commodity Dependent Developing Countries (CDDCs).
UNCTAD study results:
Though significant export misinvoicing was reported, there was extreme variations
across countries and trading patterns.
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South Africas gold export:

For 14 selected partners, South Africas official trade data shows gold exports worth just
$3.17 billion (in 2014 constant dollars),
Whereas partners data shows the value of exports from South Africa to be $ 117.12
billion.
India is the biggest trade partner of South Africa in gold exports.
China is present on almost every selected countrys export misinvoicing list which
suggests that many countries are losing a lot of money in exports to it.
India not immune to trade misinvoicing

The IFF outflows via trade misinvoicing is not confined to African countries
A 2014 report estimated that a total of$186 billion worth of IFF went out from India
through trade misinvoicing route.
For comparison: Indias total exports in 2015-16 were worth $262 billion
Conclusion
These statistics show how despite significant exports, developing countries are failing to
realise the gains from trade.
Nearly 90 developing countries are losing commodity export earnings worth billions of
dollars in valuable foreign exchange earnings, taxes and income that might otherwise be
spent on development.
In India, through encouraging exports via Make in India, there seems to be considerable
scope for tapping illegal flow of funds.
India has been a recent signatory to the agreements facilitating autonomous exchange
of tax information between countries and is much better placed to tackle the menace.
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1. Curbing trade mis-invoicing is imperative to stop global illicit financial flows. Explain
Related Articles:
Illicit Financial Flows
Tackling off Shore Tax Evasion
http://iasbaba.com/2016/04/all-india-radio-tackling-off-shore-tax-evasion/
Topic: General studies 3

Effects of liberalization and 1991 reforms on the economy, changes in economic
policy and their effects on overall growth.
Assessment of 1991 reforms:

As India celebrates 25th anniversary of the 1991 reforms, there have been a flood of
retrospective assessments in the national media.
This article deals with some of the key messages and highlighting their implications for the
future.
Highlights:
1. The record on growth
There was a huge criticism and fears that the dismantling of government controls and
greater reliance upon the private sector and market forces would be ruinous for the
economy.
However, results of many assessments shows that India has done quite well after the
reforms.
1991 reforms have transformed India from a low-income economy at the start of the
reforms to one at the lower end of what the world bank calls the middle-income
range.
We are also currently the fastest growing emerging market country at a time when
both the industrialized countries and the major emerging market countries have
slowed down.
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If we judge only by gross domestic product (gdp), we can say the reforms succeeded.
2. External vulnerability
Another criticism in 1991 was that the opening of the economy to trade and capital flows
would make us vulnerable externally, and the international monetary fund (imf) loan would
be a precursor to continuous recourse to IMF and extended submission to its intrusive
conditionalities. This fear too was ill-founded.
After reforms, India went to IMF in 1981, and again in 1991, but we have not needed
IMF since then.
India did experience external difficulties a few years ago when the current account
deficit increased to almost 4% of gdp in 2012-13, actually worse than in 1990-91. The
fiscal deficit had also worsened because of the fiscal stimulus.
Rupee was depreciated to some extent in the face of market pressure.
However, we were able to handle the crisis without having to call in IMF. The situation was
brought to normal very quickly due to the credibility provided by the large reserves (thanks
to 1991 reforms).
The decision in 1992 to open up to foreign institutional investment (FII) was much criticized
at the time as making the country vulnerable to hot money flows. The fact is that while
there was some outflow of FII money, it was for a brief period only, and was easily
managed.
3. Have the reforms helped the poor?
The impact of the reforms on the poor is obviously a critical factor in any retrospective
assessment.
In the pre-reform period the percentage of the population below the poverty line
(based on the lakdawala committee estimates that were then used) increased
marginally from 44.5% in 1983 to 45.3% in 1993-94 and the absolute number of the
poor increased from 323 million to 404 million.
In the immediate post-reform period 1993-94 to 2004-05, the percentage in
poverty (using the latest tendulkar committee estimates) declined, from 45.3% in
1993-94 to 37.2% in 2004-05.
However, because population had increased, the absolute numbers increased marginally by
3.5 million.
In more recent years, when growth accelerated sharply, the percentage of the
population in poverty declined much faster than before from 37.2% in 2004-05 to
21.9% in 2011-12.
For the first time ever, the absolute numbers declined by almost 140 million from
407 million in 2004-05 to 269 million in 2011-12.
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This achievement is now internationally recognized, with the world bank highlighting it as a
major positive development in the fight against poverty globally.
Still poverty is a concern
However, there is no doubt that the numbers in poverty are still too large. To have 269
million below the poverty line, and a very austere poverty line at that, is not something
that should be seen as a victory.
Nevertheless, we can say that if we can grow at 8% or so, and the growth is as inclusive
as it has been in the recent past, we can expect to see poverty reduced to a truly
marginal level in another 20 years.
It is a different matter that by then our goalposts will have changed and government will
have to meet higher expectations.
4. Access to essential services

The real failure is perhaps less in reducing poverty defined in terms of consumption
expenditures and more in the failure to deliver basic services such as education, health,
clean drinking water and sanitation to the mass of our population.
Access to these services is critical for human welfare. It is also critical for growth since they
affect the productivity of the labour force and an unhealthy and inadequately
educated/skilled workforce cannot sustain high growth.
In the case of education, we have achieved near universal enrolment in primary

schools, but thequality of education provided is poor.
The situation in healthcare is even less impressive because the roll-out of facilities,
and especially their staffing, is much less widespread, especially in rural areas.
Access to clean drinking water and sanitation, which is closely related to health, is a
major problem. Although the percentage of the population said to have access to
protected water sources has increased markedly, the quality of water, especially in
rural areas, cannot be certified because it is not regularly tested.
Open defecation is still practised by almost 50% of the population, much higher
than in many other countries with lower per capita incomes.
The way ahead:

These shortcomings are all interconnected because poor sanitation and poor quality of
drinking water leads to ill health and reduced learning outcomes.
A) Improving performance in these areas should be a priority for governments for the next
10 years.
B) Additional financial resources will be needed, but there is also the problem of the
institutional capacity to spend money well.
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C) Both central and state governments have to put combined efforts and should be
accountable in regard to institutions for delivery and personnel in these areas.
Reforms have failed to provide quality education and health care.
For instance, some years ago, the organisation for economic co-operation and
development-sponsored programme for international student assessment (pisa)
survey, which is conducted in several countries, was conducted in india for the first time
on a pilot basis.
It showed that the levels achieved by students from two relatively advanced states
(tamil nadu and himachal pradesh) ranked at the very bottom of developing countries!
Lant pritchett, a professor at harvard university, has pointed out that indias top 100,000
students compare with the best anywhere, but quality collapses beyond this thin layer.
Rapid growth cannot be achieved on the basis of a thin layer of excellence. It has to be
based on a much broader level of quality, and our public educational system is very far
from getting there.
However, unless there is agreement that a problem exists, we cannot expect a solution.
D) A systematic resort to pisa type testing in all states, after allowing for cultural
differences which could skew results, is essential to form an independent opinion on the
quality of outcomes. There is considerable evidence from other countries that once the
problem is identified and accepted, corrective steps do help.
5. The employment problem
Perhaps the greatest unhappiness about the reforms is because the growth process they
have produced has not yielded a sufficient expansion of job opportunities, and the
opportunities created are of poor quality. (jobless growth)
Rapid growth is certainly necessary for this outcome, but it is not enough. It must be
accompanied by growth in more labour-intensive sectors.
Small and medium manufacturing units are a part of the solution because they are
typically more labour using.
However, the objective must be to create an environment in which even large units
in labour-intensive sectors can do well, even as smaller units in the same sectors
expand in size.
Policies that discriminate against organized sector units in favour of unorganized
sector production, for example, modern retail formats, need to be reviewed because
they discourage the expansion of the organized labour force.
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The way ahead:
Some of what is needed has been on the reform agenda for some time and is
uncontroversial, though complex. This includes the provision of good quality
infrastructure to all parts of the country, building an efficient banking system and the
related set of financial sector reforms, including the new bankruptcy code and its
supporting infrastructure, ease of doing business, etc.
Some of what is necessary is controversial, notably labour reform. Leaving it to state
governments could help, but it is important to be sure that states implement the right
kind of reforms. What we need is flexibility of the right kind, available to firms
employing many more workers.
6. Corruption
A common worry of many people is that the reforms have increased the level of corruption.
The fact is that the elimination of industrial licensing and import licensing
eliminated corruption and cronyism from areas where it was once widespread.
Where scams are alleged today are the areas that were not reformed, notably
allocation of spectrum, mining rights and land.
Land is a state subject. In the case of mining rights and spectrum a decision was
taken in united progressive alliance (upa)-ii that all future allocations would be by
auction.
In these areas there should be no problems in future and very successful spectrum auctions
were conducted under upa-ii and this is continuing under the present regime.
Conclusions
The central message coming out of the anniversary celebrations is that the reforms did
well in many fields, but not as well as might have been hoped in some important areas.
India has to renew its efforts in what remains undone.
Meanwhile, an economy that has moved into middle income status is bound to face new
challenges. If the government doesnt respond, we run the risk of getting stuck in what
has been called the middle income trap.
The lesson is clear: we need more reforms and not less, but as the economy becomes
more complex, the reforms have to be much more carefully designed.

1. India is celebrating the 25th anniversary of the 1991 reforms. Critically analyze their
achievements and highlight their implications for the future.
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2. In future India may run the risk of getting stuck in what has been called the middle
income trap. What do you mean by this middle income trap? Suggest some suitable
reforms to escape from this trap?
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SCIENCE AND TECHNOLOGY

Science and Technology- Developments and their applications & effects in everyday life
Indias Software-as-a-Service market
Software-as-a-ServiceWhat is it?
A software distribution model in which a third-party provider hosts applications and makes
them available to customers over the Internet
Demand Drivers:
Businesses looking to focus more on their core operations

The rapid growth of data
Increased focus on content solution being deployed over mobile devices
Movement of customers to a cloud-first mentality
Benefits of Saas:
Removes the need for organizations to install and run applications on their own
computers or in their own data centres, eliminating the expense of hardware
acquisition, provisioning and maintenance, as well as software licensing, installation and
support.
They pay for this service on a monthly basis using a pay-as-you-go model allowing
businesses to exercise better and more predictable budgeting with the flexibility to
terminate SaaS offerings at any time to stop those recurring costs.
Offer high scalability, which gives customers the option to access more, or fewer,
services or features on-demand
Automatically perform updates and patch management
Statistics:
NASSCOM Report: The Software-as-a-Service (SaaS) market in India is expected to triple to
about $1 billion by 2020
2014-15: Market pegged at $300 million
2015-16: Expected to be worth $407 million
The U.S. and Europe account for more than 80 per cent of the demand for Indian SaaS
solutions
India SaaS based products have received close to $450 million in the first two quarters of
2015
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ENVIRONMENT
Conservation, environmental pollution and degradation
Let us get smarter about Water
India has sizeable water resources, but the country faces huge challenges in the water
sector as the distribution of water varies widely by season and region owing to the
growing scarcity; increasing pollution; enhanced competition, conflicts and transboundary water sharing issues; that have dominated the national discourse in current
times.
Although industry is the largest contributor to Indias GDP, agriculture accounts for
nearly 90% of water use. Two-thirds of Indias irrigation needs and 80% of domestic
water needs are met using groundwater, contributing to the significant groundwater
depletion rate. Although India has one of the worlds largest irrigation systems, it is
characterised by high levels of inefficient water use
The country is also facing the potent threat of climate change, which may have complex
implications on the pattern of availability of water resources including changes in
pattern and intensity of rainfall and glacial melt resulting in altered river flows, changes
in ground water recharge, more intense floods, severe droughts in many parts of the
country, salt water intrusion in coastal aquifers, and a number of water quality issues.
For India Improving water security is essential for Indias development
With total water demand in India expected to rise by over 70% by 2025, a huge demandsupply gap is expected in the coming years and will act as a potentially significant
constraint on economic growth
The alarming rate of groundwater depletion
Declining water tables means increased cost of pumping, salty irrigation water as a
result of over-abstraction leading to crop and revenue losses for farmers, and long-term
consequences for water availability.
Poor water quality and lack of adequate access to sanitation are also major causes of
disease and poor health
Innovative Ways: Ensuring access to water sustainably

Comprehensive assessment of water resources:
The last time a comprehensive assessment of water resources for the entire country was
done was in 1999-2000
Weakness: absence of data on the sources and volume of water supply
Planning:
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Need for a complete assessment on water availability (use and future demand)
updated in real time on the size and sustainable levels of exploitation
Build a data infrastructure around the multiple sources of water in the city:
Creation of a flexible, responsive water management system
Utilization of Data: To integrate surface and groundwater sources more wisely.
Community-based modelling of Water Usage
Better understanding of its groundwater reserves and ensuring adequate recharge;
groundwater being a common pool resourceconsensus must be built to get users to
bear the true ecological and social cost of using that water privately
Building local capacity of both citizen groups and government, allows cities to have a
reliable, cost-efficient system. If the city also gets real-time data, partly with crowdsourced, citizen-led information, the system can become more sustainable over time
Models of decentralized groundwater governance Installation of a wastewater
treatment plantpublic reporting on the volume and quality of water they treat and
release, then communities residing there could do more to ensure the health of water
bodies around them (influence innovation and new policy alike).
Water-use efficiency would increase multi-fold:
By the adoption of low-cost technologies
Better demand management
Effective recycling and reuse
Efficient Regulation Mechanism:
By a statutory regulatory authority; Water pricing should be shifted away from the shadows
of politics and be assigned to a statutory regulatory authority
Determining water tariff for cost recovery allowing for reasonable costs
Hear all stakeholders and formulate a standard mechanism for pricing
No alteration be allowed from government
Government should be allowed to introduce a subsidy which can be paid directly to the
targeted consumers after making necessary provision in the budgetmaking the pricing
of water transparent, and help begin the transition to a system of public debate on the
importance of cost recovery and scrutiny of cost elements.
India is facing a looming water crisis that has implications not only for its 1.1 billion
people, but for the entire globe. Discuss
Also Refer:
A strained relationship: ULBs & Water
http://iasbaba.com/2016/06/iasbabas-daily-current-affairs-25th-june-2016/
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Environment and Ecology, Bio diversity - Conservation, environmental degradation,
environmental impact assessment, Environment versus Development
Issues relating to e-wastes
We need a smart way of dealing with e-waste
What is e-Waste?
e-Wasteis technically all waste electrical and electronic equipment (WEEE) discarded
without the intent of reuse.
Its all around usin the form of discarded microwaves, toaster, television sets, mobile
phones, air-conditioners, computers, printers, etc.
It is one of the fastest growing waste streams in both developed and developing
countries.
What is Smart City?
A 'smart city' is an urban region that is highly advanced in terms of overall infrastructure,
sustainable real estate, communications and market viability.
It is a city where information technology is the principal infrastructure and the basis for
providing essential services to residents.
There are many technological platforms involved, including but not limited to
automated sensor networks and data centres.
Concerns:
Smart Cities will use technology. And the technology will use hardware which will
eventually become e-waste.
The United Nations University (UNU) has calculated that about 42 million tons of ewaste was generated globally in 2014. And between 2014 and 2017, we will have a 36%
rise in e-waste globally.
India is estimated to be the fifth largest producer of e-waste in the world.
Within India,
1. Mumbai is the highest generator of e-waste with 96,000 tonnes per annum,
2. Delhi at second with 67,000 tonnes and
3. Bengaluru at third with 57,000 tonnes per year
Poor handling of wastes: a big concern
Estimates are that only about 15% of all e-waste globally is recycled. This probably
means that only 15% is recycled by formal actors.
A significant chunk is collected, dismantled and recycled by the informal sector whose
trading and work stands condemned as polluted.
Over 80% of Indias e-waste is being recycled by the informal sector.
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They typically extract metals by dipping motherboards in acid vats, then burning them.
They extract gold by a process that involves cyanide in a home-made furnace. These
crude processes result in intense pollution.
Revised e-waste rules of 2016
The new rules issued by the Ministry of Environment and Forests to manage electronic
waste must be implemented with firm political will to close the gap between growing
volumes of hazardous trash and inadequate recycling infrastructure.
Producers and consumers of electronic goods have a responsibility under the E-waste
(Management and Handling) Rules 2011 to ensure proper disposal, but progress has
been slow for various reasons.
Now the E-waste (Management) Rules 2016 provide several options to manufacturers
such as collection of a refundable deposit and paying for the return of goods to meet
the requirements of law.
In spite of its growing environmental footprint, sound management of electronic waste has
received low priority. Urban solid waste management policy has focussed on cleaning
streets and transferring garbage to landfills, ignoring the legal obligation to segregate and
recycle. Hazardous materials, including heavy metals, are dumped in garbage yards,
polluting soil and water.
The new rules have positive measures in this regard:
theyclassify mercury-laden light bulbs as e-waste, which will keep them out of
municipal landfills.
Bulk consumers have to file annual returns(another welcome move).
An awareness campaign on e-waste will make it easier to implement the rules. Often,
consumers do not let go of defunct gadgets. Several Indian households also stock e-waste
items.
The success of the new rules will depend on incentivising such consumers to enter the
formal recycling channel using the producer-operated buy-back scheme.
They will come on board when the repurchase offer is better than that of the
unorganised sector and a collection mechanism is available.
The Centre and the States have a responsibility to ensure that producers contribute to
the e-waste management system, which has been designed with their inputs.
The collection targets, that will touch 70 per cent in seven years, are realistic. A healthy
environment demands that the targets get more ambitious.
The way ahead:
A smart citymost are existing cities that will be upgradedshould plan to formalize
the space, and train the workers theremost of whom will be traders and
dismantlersto work safely.
It can license them to work in a cluster, if they adhere to safety standards and keep
paper work to show they are sending the e-waste they are buying to authorized
recyclers.
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In this way, not only will the authorities know more about the e-waste flows in their city,
but they can also monitor these.
This will need small loans, space and capacity building for municipal authorities
themselves. Only a few cities will actually have metal extraction in the formal sector.
Where they do, their work will have to be piloted with technical institutes and
carefully monitored, before it is scaled up. Since data is key here, good dashboards
used and shared with the workerswill be absolutely key to an e-waste solution.
If any of the smart cities had to be given an award, it should be for how theyve used tech
and IT to solve the challenges that all other cities struggle withpollution, waste, jobs,
youth and above all, shifting from a linear to a circular economy that makes for
sustainability.
1. Recently the Ministry of Environment and Forests hasissued new norms regarding
management of e-waste. Discuss the significance of these rules.
2. India is estimated to be the fifth largest producer of e-waste in the world and over 80%
of Indias e-waste is being recycled by the informal sector. In your opinion, what
strategies can be taken to avoid the above concerns? Discuss.

Effect of environmental policies and politics of developed and developing countries
on India's interests.
Important International Environmental Institutions, agencies and fora- their
structure, mandate
Average Global Temperatures are rising rapidly: What India has to do?
Big concern
Studies and estimates shows
The first few months of 2016 were close to 1.5 Celsius higher than average global
temperatures for at least 10,000 years prior to the 19th century.
Long-term average global temperatures are expected to cross the 1.5C threshold
(which Paris COP-21 set) in just about 10 to 15 years.
This period is considered to be much too soon for countries across the world which are
still struggling to reduce their greenhouse gas (GHG) emissions and adapt to the impacts
of rising temperatures.
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We know that, at the Paris Conference of Parties (COP-21) last December, world leaders
agreed to limit global warming to well below 2C while still making an effort to keep the
average rise to below 1.5C.
However, many scientists and analysts actually consider staying within a long-term rise of
1.5C to be an impossible goal unless some far-fetched method of sucking carbon out of the
air or burying it forever becomes viable.
IPCC Assessment Report
Intergovernmental Panel on Climate Change (IPCC) publishes an integrated review of
the science, impacts, mitigation and adaptation assessment.
Last such review report was published in 2014 and next round of review was
expected to be in 2022.
However, considering the rapid rise in average global temperature, IPCC has decided
to commission some special reviews now only -- (an outcome of Nairobi meeting,
April 2016).
These special reviews would examine the effect that 1.5C would have on land use,
ecosystems, oceans and glaciers.
The above concerns present a very bleak picture. Therefore, the article deals with what
India has done so far and what India has to do to come out of this bleak setting?
What India has done so far?
1)
2)
3)
4)
5)
6)
7)
8)
In 2007, the Indian government established the Prime Ministers Council on Climate
Change, out of which emerged the National Action Plan on Climate Change
(NAPCC).
The NAPCC also rolled out a fair number of programmes and strategies under its
eight missions.
Core Missions are
National Solar Mission
National Mission for Enhanced Energy Efficiency
National Mission on Sustainable Habitat
National Water Mission
National Mission for Sustaining the Himalayan Ecosystem
National Mission for a Green India
National Mission for Sustainable Agriculture
National Mission on Strategic Knowledge for Climate Change
Each of the States then developed State-level climate action plans, which are
currently being implemented. The State-level studies and plans have also in effect
alerted the States to begin the task of incorporating climate change into their
planning.
The NAPCC essentially announced to the world that India was willing to act on its
global responsibility to limit GHG emissions.
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This was despite the fact that the country has low per capita emissions (less than 2
tonnes per capita, which is lower than the world average) and has historically often
taken the lead in calling for equity in international climate policy and the allocation
of a fair carbon budget.
At COP-21, India proposed that it would reduce the emissions intensity of its GDP
(GHG emissions per unit of GDP) by about a third compared with its 2005 levels,
and has committed itself to depending on non-fossil fuel sources for 40 per cent of
its generation capacity by 2030.
Adaptation was also mentioned in Indias Nationally Determined Contribution
(NDC) along with several details in different sectors.
What India has to do?
The Paris Agreement calls for comprehensive reviews, regular global stocktaking
and ratcheting up of targets periodically.
We know that India will experience severe effects of global warming. The recent
floods in Jammu and Kashmir and Tamil Nadu, and severe drought in many districts,
are probably just an indication of the harsh implications for the future.
Given these pressures and commitments that have been made, India now needs to
1) Re-imagine and develop a new approach, or national strategy a set of policies
that lay out its action plans for reaching its targets, and not just for reducing
emissions.
2) With the close monitoring that is expected of the announced NDC targets, there is a
lot that India needs to be prepared with.
3) The countrys overall strategies would have to include a number of different aspects
such as an integration of mitigation, adaptation and inclusive low-carbon
development.
4) India has to have clarity on implementation, along with an understanding of which
programmes would be undertaken by the Central government, which ones by the
States, and how these would all add up to fulfilling our commitments.
5) State-based Approach:
Each State faces a distinctive set of challenges regarding the impact of warming, but
also offers its own set of opportunities for reducing emissions depending on its
natural resources.
For example, coastal States need to take action to protect their shores from sea level
rise, districts that are drier need to prepare for variable monsoon precipitation,
Himalayan regions have their own unique challenges, and selected parts of
peninsular India and offshore areas offer great opportunities for harnessing wind
power.
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These various aspects need to be considered in fulfilling the Paris Agreement now, but also
for developing clear and sustainable goals for the future.
Although ratification of the Paris Agreement is already being considered, the deliverables on
adaptation are far from clear. In fact, there are no agreed-upon adaptation goalsat the
global level.
It would therefore be interesting and useful for India to formulate adaptation strategies at
State levels and demonstrate if and how these could be meaningful for the country as a
whole.
The way ahead
Countries need to re-think in terms of targets well beyond 2030 for emissions and
adaptation.
Fundamental decisions on growth and development need to go well beyond the
goals for a high GDP and consider surviving extreme events, living in a warmer world,
and inclusivity, especially with hundreds of millions who are poor, which is
fundamental to countries like India.
The linkages among development trajectories, GHG emissions reduction targets and
adaptation strategies perhaps need to be made more explicit by researchers and
scientists, so that decision makers can understand the medium- and long-term
implications of virtually all their choices.
With the challenges that India faces and the need to provide human services in a sustainable
manner to its vast underserved population, the country requires social and economic
transformation at a scale that has not been attempted before.
1. Estimates and studies have shown that long-term average global temperatures are
expected to cross the 1.5C threshold set by Paris COP-21 set in just about 10 to 15
years. What strategies should India take to adapt to the impacts of rising
temperatures.
2. Scientists and analysts actually consider staying within a long-term rise of 1.5C, set
by Paris COP-21, to be an impossible goal. Do you agree? In your opinion what
strategies should India take to adapt to the impacts of rising temperatures both at
domestic and international level.
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Ministry of Water Resources, River Development & Ganga Rejuvenation placed 2 Draft
Bills in public domain for comments (before 2 months).
1. Draft National Water Framework Bill 2016 (NWFB)
2. Model Bill for the Conservation, Protection, Regulation and Management of
Groundwater 2016
Unfortunately, till now, the Bills have not raised the public debate that they are
supposed to evoke, given the fact that there are sufficient elements that deserve to be
discussed and debated.
The below article briefly analyzes both the bills.
Draft National Water Framework Bill 2016 (NWFB)
The NFWB seems to be a follow-up on the action taken on The National Water Policy
2012,that talked about the ..need to evolve a National Framework Law as an
umbrella law that governs the general principles and manages water needs.
Under the framework proposed by the NWP 2012,
Water needs to be managed as a community resource by states under the

public trust doctrine to achieve food security, livelihood, and equitable and
sustainable development for all.
Existing Acts of various statessuch as the Indian Easements Act, 1882, the
IrrigationActs, etc. may have to be amended accordingly if they give proprietary
rights to a land owner on groundwater under his land rather than treated as a
community resource.
The NWFB has been placed in public domain at a time when the world is witnessing the
emergence of a new paradigm in water management, which is continually enriched by
incremental accrual of new knowledge, both disciplinary and interdisciplinary.
However, water policy formulation in India has been largely disconnected from the
ongoing conceptual changes in water management.
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Concerns and solutions:
There is a clear disconnect between holistic science and fragmented policy making
and has resulted in the domination of a reductionist engineering paradigm to
manage water without any concern to the ecological concerns.
(i.e. provisions in policy is focusing more on water management techniques that
do not consider or take care of ecological concerns)
Though the policy documents related to water in South Asian nations often allude
of terms like integrated river basin management (IRBM), demand management,
etc. they prove to be rather decorative when it comes to concepts and project
design.
(i.e. provisions in policies talk more and act less)
This disconnect is evident even in the two bills mentioned above.

1. First concern emerges from the fact that the two bills are separated, and hardly
any linkage has been created between the two.
As such, groundwater and surface water are integral components of the global
ecohydrological cycle, and need to be seen through an integrated holistic lens
of water management and property rights.
Separate bills create the impression of fragmented approach to water
management, as the interactivity between surface water and groundwater,
which is also acknowledged in the water balance equation, seems to have been
ignored.
2. Second, the draft NWFB suggests maintaining adherence to certain percentage of

water to flow naturally.
The draft NWFB suggests for maintaining certain percentage of natural flow of
water in rivers (i.e. adherence to the reductionist arithmetic hydrology)
adequate to preserve and protect a river basin as a hydrological and ecological
system.
However, it is highly difficult for the very science to arrive at a measure of how
much water a river needs
It is only in India that there is an over-reliance on a specified quantitative
measure on how the environmental water needs of a river.
Policy makers have failed to have an ecological scientific thinking; they should
understand that no studies can tell exactly what level of natural water flow is
required for maintaining certain ecosystem services.
3. Third, despite the reference of the River Basin Authority (RBA) in the NWFB, the
role of the RBA seems to have been confined to creating master-plans for the
basins.
As a recommended institutional set-up, there is a need for a basin-level

authority which is democratic in nature, with greater powers, and which can
initiate actions to prevent degradation of freshwater ecosystems and can
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initiate actions against all forms of stakeholders including State governments

for any form of violation.
This implies that the authority should be vested with adequate regulatory
powers.
4. Fourth, it needs to be noted that the moot point lies with the promotion of
Integrated River Basin Management (IRBM).
While todays best practices in water resources planning entail integration of

water quantity and quality management for both groundwater and surface
water, there remains a need for comprehensive understanding of how the
natural environment and the resident population of a basin are impacted by
various levels of interventions in the rivers or by adoption of new policies.
This is best done in a highly participative way, involving all the major
stakeholder groups, and in a way that achieves a balance between the level of
economic development and the consequent impact on the natural resource
base of a river basin as agreed by the stakeholders.
This participatory and comprehensive approach is what is generally referred to
as integrated river basin management (IRBM).
At a watershed/basin level, different water users co-exist and therefore any
decision towards sustainable resource management will need collective action.
The NWFB needs to encourage, facilitate and promote multi-stakeholder
interaction and collaboration between diverse stakeholders at the watershed,
sub-basin and basin levels. This is another missing dimension from the draft.
5. Fifth, the draft makes very important recommendation regarding differential and
full cost pricing.
This pricing instrument should be designed as not merely covering only the
O&M costs (operation and maintenance costs).
The pricing should reflect the scarcity value of water not merely of its
economic use, but also the scarcity value of the ecosystem services. This implies
that the users may cover part of the environmental costs that their use of
water entails.
6. Sixth, the composition and role of the statutory Water Regulatory Authority is not
clearly defined.
It is not clear how such an authority will operate: Is it under the aegis of the
river basin authority? Or should it exist as a separate structure?
Conclusion:
Therefore, the scope for improvement in this draft remains. While forwarding this
IRBM agenda, it is important that the various knowledge gaps are addressed
through the creation of a comprehensive research agenda.
This will define the overarching principles for managing trade-offs between water
for development and water for ecology, and trade-offs arising out of water
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allocations across competing sectors and sustainable abstraction limits so that the
ecosystem integrity is maintained.
At an institutional level, there needs to be constant evaluation of the effectiveness
of various institutions at various levels, including the river basin master plans.

Critically comment on the provisions of Draft National Water Framework Bill 2016
(NWFB)
Environment and Ecology, Bio diversity Conservation, environmental degradation,
Looming water crisis
(ill)Usage of water
Water was seen as a key requirement for agricultural sector until a decade ago
The focus was to invest in irrigation infrastructure to reduce the dependence of
farmers on rains + meet rural drinking needs
Green Revolution stressed the increased usage as well as secured storage of water for
HYV seeds.
Not exactly as planned: Marred with inadequate investments and poor planning and
maintenance of the irrigation infrastructure, water problems persisted
Result: canal irrigation was much less effective than planned.
Negative impact:Farmers used groundwater excessively as there was no groundwater
extraction regulation. Free or cheap electricity accelerated usage of tubewells and
electric pumps to lift underground water.
Since 1970, 80% of the addition to net irrigated area has come from groundwater.
Cheap water = rampant water waste:
Water has not been economically priced in India.
Water intensive crops are grown in water scarce areas
Punjab- rice, Maharashtra- Sugarcane etc
These are further contributing to declining water tables
Urbanisation and water problems
Urbanisation is gathering momentum
Urban has only one-third of population, yet the share of urban GDP in total is almost
two-thirds
Projected urban changes: 600 million population and share to GDP 75%by 2031
However, Unplanned urbanisation has highlighted the water problems faced in urban
India, in past decade: Declining water tables + water pollution
Possible solution
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Improving agriculture water efficiency and releasing water from it. (Agriculture
counts for 80% of total water use in country)
Recycling water
Recycled water: drinking water, sewerage and wastewater treatment, stormwater
drains and solid waste management be planned and managed in an integrated manner.
However, recycling has a fragmented approach.
Some services are managed in silos, some by ULBs and some by Parastatal
institutions (Metro Boards) of state governments
Solid waste management is under Swachh Bharat Abhiyan and also under AMRUT.
Also, it is a part of city development plan in which all activities are attached.
State of water delivery
It is deficient
62% urban households have access to treated tap water
Little over 50% households are directly connected to piped networks
Approx. two hours per day is water availability to connected household
33% of urban household has piped sewer system
40% dependent on septic tanks
13% still defecate in open
Drains
Inadequate and ill-maintained stormwater drains
Natural drains provide exit to stormwater including flood water. But, either they are
encroached or carry sewage.
Natural recharge zones not taken into account in urban planning
Wastewater treatment has been neglected even when it is important to keep rivers and
groundwater clean
Sewage treatment capacity
Sewage or waste water treatment capacity is only 37% of the total need of the country.
Actual treatment is even lesser- 30%
It is sometimes redundantly utilised where treated waste water is discharged in drains
where it mixes with untreated sewage flowing in natural stormwater drains.
The polluted mixture is discharged in river finally.
CPCB observation supplements it: Out of total pollution in rivers, 75% is from municipal
waste and 25% from industrial effluents.
Groundwater survey: high level of microbial contamination from municipal sewage
WHO: Effect of polluted and unsafe water and poor sanitation facilities has led to
increased water-borne disease in India. This causes serious public health issues.
Water market
When water policies fail to deliver their goals, the private players fill in the gap by
creating water markets
Water tankers become critical source of water availability, which in turn become
extremely expensive.
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Even here, the groundwater is extensively drawn to meet the demand deficit
Tanker mafias are known to exist in Delhi!
Hence, though it is generally not realised but Indias water crisis is graver than energy crisis.
Alternative energy sources:
Solar and wind energy
Gradually becoming cost effective
Alternative water sources:
Desalination
Very expensive
Conclusion
Groundwater realities:
India is largest user of groundwater in world, surpassing china
The groundwater abstraction is at 251 cubic km per year (China has its half)
Groundwater use is in excess to what is being recharged
Situation is grim in four northern states of Punjab, Haryana, Rajasthan and Delhi
NASA assessment: The decline in water table of Punjab, Haryana, Rajasthan and Delhi is
at an average rate of 4 cm per annum.
th
12 Five Year Plan
Has called for a paradigm shift
Has proposed a comprehensive programme for the mapping of Indias aquifers as a
prerequisite and a precursor to a National Ground Water Management Programme
Aquifer Mapping and Management
Launch of Aquifer Mapping and Management project
Objective: to prepare Management Plans in consultation with stakeholders and State
Governments and then identify the recharge and other measures to replenish the
declining trend of groundwater
The mapping would assist in estimating the quantity and quality of groundwater in an
aquifer and would help in assessment of sustainable level of groundwater extraction
Also help in making the India climate change resilient.
An aquifer is an underground layer of water-bearing rock, from which groundwater can
be extracted.
Groundwater governance
Governed by British common law sanctified by the Indian Easement Act of 1882
In this, landowner has the absolute right to draw any amount of ground water from
under the land owned by him.
Water being a state subject, the centres attempt at legislative reforms has focused
mostly on allocation and setting up a public regulatory authority for groundwater
regulation and management.
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Central government is expected to bring out a national water framework bill and a
model groundwater bill.
The need is to address the challenge of equitable access and aquifer protection and
move away from focus on link between land ownership and control over groundwater.
Groundwater has to be treated as a common pool resource only for public good.

Water should be transferred to concurrent list. Critically Analyse
Related articles:
World Water Day (March 22nd) The importance of Water Management
http://iasbaba.com/2016/03/iasbabas-daily-current-affairs-22nd-march-2016/
India is the biggest virtual exporter of water
http://www.livemint.com/Opinion/bPPHFHv19qBaA5qrPa6SuN/India-is-the-biggest-virtualexporter-of-water.html
TOPIC:
General Studies 3

Issues relating to renewable energy technology and developing new technology.
175GW of renewable energy by 2022 Is this goal achievable?

India has set ambitious goals to achieve 175GW of renewable energy by 2022.
A large share of this goal 100GW is expected to come from solar energy
A relatively smaller share 10GW from bio-energy
The below article discusses the difference between Solar photovoltaic (PV) technology,
Solar thermal technology, biomass-based technologies and importance of hybridisation
model.
Current status of solar energy in India:
Today, the Indian market is dominated by the photovoltaic (PV) technology, which
has an installed capacity of almost 7000 MW.
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Also worth noticing is the fact that the price of solar PV fell from Rs. 17 to Rs. 5 per
unit (1 unit = 1 kWh) in the past few years, while the price of solar thermal has
remained above Rs. 10/kWh.
As solar energy is available only a few hours in a day, it is desirable to store it, to be
able to dispatch power when required.
However, battery storage is expensive and unviable for long-term use, as batteries
need to be replaced at least every five years.
Hence, PV with battery storage, using current technologies, looks unviable as a longterm solution for dispatchable and reliable power.
Solar Thermal Technology versus Solar PV Technology:
Solar thermal, which concentrates suns rays to produce heat (steam), is used to
drive turbines. This heat energy can be stored and used to generate electricity when
there is no sunlight; this makes it cost-effectivein comparison with battery storage.
Worldwide, most solar thermal power plants have incorporated thermal storage.
Solar thermal with storage facility can be used to overcome intermittency and
provide steady power to grids; however, the inclusion of thermal storage increases
the capital cost further.
In India, solar thermal technology had limited success in the initial phase of the
National Solar Mission owing to challenges in terms of financial closure, sourcing of
critical components of the power plant, etc., and this led to a substantial delay in
their commissioning. This also resulted in a reduction of the allotted target in the
subsequent phases.
Also, the capital cost of solar PV reduced from Rs. 12.5 crore/MW to Rs. 5.8
crore/MW, whereas that of solar thermal remained at Rs. 12 crore/MW. This led to
the dominance of PV in the Indian market. Hence, solar thermal has not been able
to compete with solar PV.
Conclusion: Solar thermal technology is far effective and better for longer term than solar
battery or photovoltaic (PV) technology. But Indian government in its National Solar Mission
is pushing for solar photovoltaic (PV) technology which will be helpful for just short-term.
On the other hand, biomass-based technologies are relatively mature here, with
investment and generation costs of about Rs. 6.5 crore/MW and Rs. 4.5/unit, respectively.
However, biomass plants are also not able to progress due to various reasons such as
availability (lack of a well-established supply chain) and variations in costs of biomass.
Mix and make
Considering above issues, India must have a mix of both thermal and PV technologies
to achieve 100GW.
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And to bring down the cost of solar thermal, one of the options is to have thermal
storage or to hybridise solar thermal power plants with biomass.
Biomass is predominantly used by combustion and gasification technologies to
generate power. It is estimated that 120-150 million tonne of surplus biomass is
available in India annually, which has a potential of generating 18GW.
However, the typical capital cost for setting up a biomass-based plant is about Rs. 6.5
crore/MW, while the benchmark cost of biomass-based power is Rs. 4.5/kWh.
Hence, biomass-based standalone power plants have not been popular in India.
Both solar thermal and biomass technologies work on the same principle. The heat
generated is used to produce steam, which is in turn fed into a turbine to generate
electricity. Thus, a hybrid of a solar thermal plant and a biomass plant is a viable option.
For example, based on the Central Electricity Regulatory Commission guidelines, the capital
cost of a 3MW hybrid plant is about Rs. 30 crore, whereas the cost of a standalone solar
thermal plant is about Rs. 45 crore and that of a biomass-based plant of equal capacity
would be about Rs. 20 crore. The capital cost of a hybrid plant reduces due to the use of
common equipment (turbine generator set, cooling systems, etc).
Biomass versus Hybrid model:
Though a biomass plant costs less compared to a hybrid one, the latter scores on
operational parameters. Operating costs of a biomass plant increase with the rise in
fuel requirements. Biomass prices also fluctuate typically between Rs. 3-6 per kg, or
even more.
The availability of biomass and supply chain is also a major issue. Hybrid plants also
score because they require considerably lower quantity of biomass as it is used in
combination with solar radiation.
A comparison of the tariffs of the power generated from a standalone solar thermal
and a hybrid system shows that the costs range from Rs. 14-16/kWh and Rs. 8/kWh,
respectively. These estimates are based on a normal eight-hour operation
considering only solar hours. If the plant runs 24 hours, the cost comes down
to Rs. 5.4/ kWh.
Hybridisation will increase the capacity utilisation factor of a plant threefold, as it
will generate electricity from biomass in the absence of sunlight. This will make the
plant financially viable.
Also, biomass-based power can help overcome the intermittency without adding
thermal storage. A standalone biomass-based power plant requires a continuous
supply of biomass in large quantities. Hybridisation with solar thermal will reduce
the biomass requirement, and in the case of a temporary shortage of biomass,
power production will be curtailed but the plant will remain functional throughout
the year.
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Some hurdles
However, the hybridisation model has some issues.
Securing a continuous supply of biomass still remains a hurdle because there is no

provision for a long-term purchase agreement between biomass suppliers and
power producers, which makes the price of biomass unpredictable.
Another issue is the configuration of plants (i.e., solar and biomass contribution)
that can produce electricity at the lowest cost. Regulatory issues such as monitoring
the contribution of each source in power generation remain a point of contention.
A 3MW hybrid is being implemented in Bihar as a demonstration project by CSTEP along

with Indian and European partners. Currently, there is no regulatory and policy framework
in India to address or promote hybridised renewable energy plants.
The learnings from the operations of this power plant will lead to a better understanding of
the technical challenges associated with hybrid systems, and can lead to better policy
frameworks and tariff pricing mechanisms.
1. Discuss the features and provisions under National Solar Mission. Highlight the
difference between Solar PV technology and Solar Thermal technology.
2. What are the limitations associated with solar and biomass technologies. Do you think
hybridization model can help India to achieve its ambitious 175GW of renewable energy
by 2022? Critically analyze.
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DEFENCE/SECURITY
Role of external state and non-state actors in creating challenges to internal

security.
Challenges to internal security through communication networks and social
networking sites
Linkages between development and spread of extremism.
crime with terrorism.

Extremists have carried out four massive attacks in three continents since the beginning of
Ramzan this year, the holy month in the Islamic calendar. All the attacks were directly or
indirectly linked to the Islamic State (IS) terror group.
Recent attacks by extremists in
1.
2.
3.
4.
Orlando, U.S.
Istanbul, Turkey
Dhaka , Bangladesh
Baghdad, Iraq
Out of these, the IS has claimed direct responsibility for the July 3 bombing in Baghdad that
killed more than 200 people.
In other three attacks, most of the attackers have pledged their allegiance to the IS or not
an IS-directed assault but an inspired one.
New face of Terrorism
Each of the above attacks has its own nuances.
The U.S. government says Orlando was not an IS-directed assault but an inspired one.
In Turkey, the outfit did not claim responsibility (something unusual when compared to
the boastful claims it makes after terror strikes elsewhere)
In Bangladesh, the government has rejected the ISs claims, blaming local militant
networks instead.
Baghdad could be the only incident in this set where theres a consensus on the identity
of the perpetrator.
But these nuances also reflect the new face of terrorism.
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P a g e | 156
The IS is expanding its reach through its ideology even as its facing organisational setbacks
at its core.
All attackers in the above discussed four cities may not have got directions from Abu
Bakr al-Baghdadi or his core team.
There need not be an organisational link between the IS in Iraq and Syria and the terror
cells in Dhaka or Jhenaidah.
What connects these men is the deadly world view the IS is propagating.
For the IS, everyone who doesnt subscribe to its vision is an enemy and it divides these
enemies into different sects crusaders (largely Christians), apostates (mostly nonSunni Muslims) and sinners (it could be anyone from gays to rebels).
Evolving strategy
In the three years of its existence, the IS has adopted several tactical approaches to stay
relevant as a global jihadist force.
(Case I) Initial Tactic: Establishment of a Caliphate
Its early focus was on the establishment of a Caliphate.

The weak sectarian government of PM Nouri al-Maliki in Iraq and the bloody chaotic civil
war in Syria let the group capture territories in both countries and declare the
Caliphate.
In the first year of the Caliphate, the IS kept expanding its territorial reach.
The IS blended both asymmetric terrorism and modern warfare tactics to capture and
hold on to territories.
(This approach was different from the al-Qaeda-type terror organisations which were
mainly hit-and-run groups.)
Problem with this tactic:
Enemies could easily target such groups by attacking the areas they control. The IS
started facing the heat when its multiple enemies such as Russia, the U.S., Iran and
the Kurds launched separate attacks from all sides of the Caliphate.
(Case II) Tactic: Suicide Bombings
When the IS lost most of its territories and when they were repelled by the Kurdish fighters,
the IS shifted its strategy by started attacking faraway locations using suicide bombers at
the same time. (Especially when it lostKobane, the Syrian border town which the IS laid
siege too briefly.)
So, till Kobane, the ISs focus was largely on Iraq and Syria. But Kobane shattered the myth
of invincibility, prompting the group to change tack.
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P a g e | 157
Incidents of IS attacks
IS gunmen killed 22 people in Tunisias Bardo national museum.

They struck Paris, killing 130 people.
Brussels attacks
Beirut bombing
These attacks were largely planned at the core and executed elsewhere or the al-Qaeda
style of suicide attacks. In all these attacks, the jihadists were trained in Syria and sent out
to carry out the missions.
Problems with this tactic:
Even this tactic had its limitations. Terror modules could attract the attention of
intelligence agencies in countries with functional institutions.Theres a higher chance
for them to be busted than attacks being carried out.
On the other side, the ISs core territory kept shrinking. It lost Palmyra in Syria, and
Ramadi and Fallujah in Iraq.
The group is facing enormous pressure from all sides of the Caliphate the Iraqis
are set to march towards Mosul, while Kurdish forces backed by U.S. aircraft are
breathing down on Raqqa.
(Case III) New Tactic: Propagation of IS ideology

The IS wanted to strike anywhere outside Iraq and Syria (which is relatively easy for the
group) to continue to stay in the business of jihadism.
This desperation was apparent in the Ramzan message released by IS spokesperson Abu
Muhammad al-Adnani, who called for a month of calamity everywhere for non-believers.
The groups propaganda has urged supporters and soldiers of the Caliphate to pledge
allegiance to the Caliph and then carry out mass murder.
IS issued an audio message - The smallest action you do in the heart of their land is dearer
to us than the largest action by us
The new tactic is paying off
The recent attacks since the beginning of Ramzan this year Orlando, Turkey and Dhaka
attacks show that this tactic is paying off.
This is a far more dangerous phase.
Al-Qaeda usually operates from its hideouts through its networks or autonomous cells.
The IS has territory (the Caliphate); it has networks and affiliates (from Afghanistan to
Nigeria); autonomous cells (possibly the Istanbul attack was carried out by such a cell
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P a g e | 158
and thats why the IS leadership doesnt claim the assault); and lone wolves and local
groups that have subscribed to its world view (Orlando and Dhaka).
Conclusion:
Irrespective of the setbacks it suffered at its core, the IS has transformed its ideology, which
at the advent of the group was seen as an isolated, barbaric world view propagated by a few
wicked human beings, into that of a globalised force. This means that even if the IS is
defeated in Mosul and Raqqa, the threat it poses to the modern world is not going to
subside anytime soon.
The recent attacks by IS either directly or indirectly reflects its new phase or tactic,
which the security experts claim, is a far more dangerous phase. Do you agree?
Discuss your view point. Also discuss, how Islamic State approach differs from the alQaeda-type terror organisations?
The recent attacks by IS are not an IS-directed assault but an inspired one. Give some
strategies/suggestions, both from a domestic viewpoint and at global level, how to
tackle these kinds of attacks which are carried out by its autonomous cells or lone
wolves or local extremist groups that have subscribed to its (ISs) world view.
North East Issues - Nagaland Issue

Role of external state and non-state actors in creating challenges to internal
security.
Challenges to internal security through communication networks
crime with terrorism.
NAGALAND ISSUE: FULL STORY

BACKGROUND:
(Before Independence)
The British annexed Assam in 1826, and in 1881, the Naga Hills too became part of
British India.
The first sign of Naga resistance can be seen in the formation of the Naga Club in 1918,
which told the Simon Commission in 1929 to leave them alone to determine for
themselves as in ancient times.
In 1946 came the Naga National Council (NNC), which, under the leadership of Angami
Zapu Phizo, declared Nagaland an independent state on August 14, 1947.
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P a g e | 159
(After Independence)
The NNC resolved to establish a sovereign Naga state and conducted a referendum
in 1951, in which 99 per cent supported an independent Nagaland.
On March 22, 1952, Phizo formed the underground Naga Federal Government (NFG)
and the Naga Federal Army (NFA).
The Government of India sent in the Army to crush the insurgency and, in 1958, enacted
the Armed Forces (Special Powers) Act.
The Naga Hills, a district of Assam, was upgraded to a state in 1963.
In 1964, Jai Prakash Narain, then Assam Chief Minister Bimala Prasad Chaliha and Rev.
Michael Scott formed a Peace Mission, and got the government and NNC to sign an
agreement to suspend operations. But the NNC/NFG/NFA continued to indulge in
violence, and after six rounds of talks, the Peace Mission was abandoned in 1967, and a
massive counter-insurgency operation launched.
On November 11, 1975, the government got a section of NNC leaders to sign the
Shillong Accord, under which this section of NNC and NFG agreed to give up arms.
However, a group of about 140 members led by Thuingaleng Muivah, who were at that
time in China, refused to accept the Shillong Accord, and formed the National Socialist
Council of Nagaland in 1980. Muivah also had Isak Chisi Swu and S S Khaplang with him.
In 1988, the NSCN split into NSCN (IM) and NSCN (K) after a violent clash. While the NNC
began to fade away, and Phizo died in London in 1991, the NSCN (IM) came to be seen
as the mother of all insurgencies in the region.
After NSCN(I-M) and NSCN(K) more factions like NSCN(K-K), NSCN (Reformation), NSCN
(Unification), etc. sprang up. The faction, NSCN (K-K), led by Khole Konyak, a Konyak
Naga from Mon district and Kitovi Zhimomi, a Sumi Naga of Zunheboto district, merged
not long ago into the NSCN(I-M).
All these outfits agreed to strengthen reconciliation process to unite Nagas for the
purpose of achieving their historical and political rights.
WHAT DID THE NSCN (IM) WANT?
A Greater Nagalim comprising all contiguous Naga-inhabited areas, along with

Nagaland. That included several districts of Assam, Arunachal and Manipur, as also a
large tract of Myanmar.
The map of Greater Nagalim has about 1,20,000 sq km, while the state of Nagaland
consists of 16,527 sq km.
The claims have always kept Assam, Manipur and Arunachal Pradesh wary of a peace
settlement that might affect their territories.
The Nagaland Assembly has endorsed the Greater Nagalim demand Integration of
all Naga-inhabited contiguous areas under one administrative umbrella as many as
five times: in December 1964, August 1970, September 1994, December 2003 and as
recently as on July 27, 2015.
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P a g e | 160
WHEN DID NSCN (IM) JOIN PEACE TALKS?
Prime Minister P V Narasimha Rao met Muivah, Swu and other top NSCN (IM) leaders in
Paris on June 15, 1995. In November 1995, then MoS (Home) Rajesh Pilot met them in
Bangkok.
Subsequently, Prime Minister H D Deve Gowda met them in Zurich on February 3, 1997,
which was followed by meetings with officers in Geneva and Bangkok.
Prime Minister Atal Bihari Vajpayee met them in Paris on September 30, 1998.
The Government of India signed a ceasefire agreement with NSCN (IM) on July 25,
1997, which came into effect on August 1, 1997. Over 80 rounds of talks between the
two sides were held subsequently.
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P a g e | 161
The peace process entered a crucial phase with the NSCN (Khaplang) faction formally
announcing its unilateral cease-fire decision on April 9, 2000 and indicating that it is
willing to hold peace talks with the Centre.
PEACE AGAIN WAS AT STAKE IN NAGALAND

Unfortunately, on Mar 2015, the NSCN-K headed by its Myanmar-based Chairman, S.S.
Khaplang, unilaterally decided to retract from the 14-year ceasefire agreement with the
Indian government.
However, in April 2012, NSCN-K signed a ceasefire with Yangon (Myanmar)
NSCN-K, even though on ceasefire agreement (from last 14 years), continued with its
militant activities and setting up camps in 3 zones of Myanmar where it enjoys
autonomy conferred by Myanmar Govt.
NSCN-K inked friendship with other insurgent groups such as CorComm (Cooperation
Committee, which is an umbrella organisation of 6 insurgent groups in Manipur) and
with ULFA (United Liberation Front of Asom-Parmesh Barua) and the NDFB (National
Democratic Front of Bodoland - Songbijit Faction) and provides them training and
camping in 3 zones of Myanmar.
(ENPO)Eastern Naga Peoples' Organisation, civil organisation with representatives from
ethnic groups of Nagaland, Arunachal Pradesh and Myanmar - declared that NSCN-K
which is Myanmar based group now is more concerned with new territorial alignments
along international border and hence they deal with Myanmar Government.
Naga Framework Agreement, 2015
On Aug 3, 2015, latest agreement was signed with NSCN (I-M), and other Naga armed
groups such as NSCN (Khole-Kitovi) etc. (however, NSCN (K) was excluded)
On August 25, at a Peoples Consultative Meeting on the accord, Mr. Muivah spoke
about the criticality of getting the other Naga armed actors on board.
While explaining the idea of a pan-Naga Hoho (a proposed statutory body as part of the
framework agreement) that will enjoy independent executive and budgetary powers to
look after the welfare of Naga inhabited areas outside Nagaland, Mr. Muivah again
called for mutual understanding and dialogue among the Nagas.
However, the biggest breakthrough is that the NSCN (I-M), and other Naga armed
groups such as NSCN (Khole-Kitovi) have agreed to give up violence and resolve all issues
peacefully (thanks to Isak Chishi Swu).
Demise of Isak Chishi Swu
The demise of Isak Chishi Swu, Chairman of the Naga rebel outfit, National Socialist
Council of Nagaland (Isak-Muivah), and President of the outfits government, the
Government of the Peoples Republic of Nagaland (GPRN), is a great loss to the Nagas,
particularly to those in Nagaland.
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P a g e | 162
Will Swus departure complicate the above discussed matter further? Will the rebel
outfit with a new chairman be able to unite different rebel factions and command
respect and trust of different Naga civil society groups?
The way ahead:
As Isak Chishi Swus death complicates the Naga question, the Government of Indias
approach towards Northeast India would be healthier if it was based on a policy framed
for holistic development of the region as a unit as against meek responses to claims or
demands of different warring ethnic groups.
Looking for solutions to problems on ethnic lines is a sure way to breed problems of
greater complexity. A comprehensive plan with flexibility that is prepared on the ground
in broad consultation with stakeholders for development of the region is the need of the
hour.
It is understandable that without significantly developing all the states in the Northeast,
realising the vision of the Act East policy from all dimensions remain to be a difficult
proposition.
There is a need to comprehensively engage Indias Northeast with the strategic
community based in New Delhi and to transform the NER as a gateway for trade and
commerce with ASEAN countries.
Blind pouring of money alone will not integrate the Northeast into the mainstream. The
region will remain a boiling pot until the time the Government of India looks seriously,
sincerely and with an open mind towards the Northeast to develop it as an integral part
of the nation.
Therefore, any attempt to find a way out of the present imbroglio would require an
impartial stand on the part of the Centre. The Government cannot afford to be seen as
favouring one or the other faction. For any meaningful outcome, all factions of the
undergrounds even including overgrounds, shall have to be involved, otherwise
piecemeal peace/dialogue will not bring a satisfactory political solution.
A lasting solution lies in more autonomy to the state, genuine economic development,
accelerated infrastructural development, new trade routes, less Central funds and a little
bit of pressure on militant groups to accept the peace proposal. Sincerity on the part of
political and insurgent leadership alone can bring 'peace to the land of the exhilarating
Nagas'.
www.IASbaba.com
P a g e | 163
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July Magazine IASBaba

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Page |1

All the Best

Talaq-e-Bidat To be tested on touchstone of Constitution

Reviving Act East Policy

Is FDI really a gift horse?

SCIENCE AND TECHNOLOGY

Indias Software-as-a-Service market

Let us get smarter about Water

The growing Islamic State threat: a Big Concern

Indian Constitution, significant provisions and basic structure Fundamental Rights

Who decides the fault in our speech?

High Court Verdict

The concept called: hecklers veto

Troubling straight jacket move

TOPIC: General Studies 2

TOPIC: General studies 2:

LGBT Issue: To be equal before the law

What critics argue about Indias present status on LGBT?

India also favoured rigid amendments

Connecting the dots:

TOPIC: General studies 2

Government policies and interventions for development in various sectors and

Immoral Traffic (Prevention) Act (ITPA)

Second, the Committees can independently recommend that a victim be repatriated

The way ahead:

Connecting the dots:

Security challenges and their management in border areas; linkages of organized

AFSPA and Supreme Courts recent orders calling to account

Extra Judicial Execution Victims Families Association, a representative platform of people

AFSPA and its confrontations

Recent Supreme Courts order outlines three crucial principles:

Connecting the dots:

TOPIC: General Studies 2

Indian Constitution- historical underpinnings, evolution, features, amendments,

Expanding the Idea of India

Basics: FRs and FDs

The Fundamental Duties

imperative that a Fundamental Duty to this effect be added to the

Reduce confidence of the stakeholders/investors and decrease investments

Alternate to Tariff Protectionism

Connecting the dots:

Chief Ministers speak

Connecting the dots

TOPIC: General Studies 1

Stopping the cycle of malnutrition

Economic Survey 2015-16:Some of the highest economic returns to public investment

Three priority structures

Simplifying nutrition in behavioural terms by investing in information dissemination and

TOPIC: General Studies 3

Post-independence consolidation and reorganization within the country.

Government policies and interventions for development in various sectors and

Welfare schemes for vulnerable sections of the population

Assessing the workings of Indian Democracy

So what can we do now?

Middle class and their self-perception

New middle class, Old social inequalities

Connecting the dots:

Information and communications technology (ICT) - developments and their

Bridging the digital divide

We can assess a countrys societal development by considering

High income countries typically have greater penetration of digital technology as

India and China are among the underperformers on access to ICT

Increasing access to ICT

Connecting the dots: