9 PM Compilation - July

INDEX
Economy
1 Demonetization: An Analysis
2 Effectiveness of Banks merger
3 Monetary Policy Committee (MPC) and inflation targeting
4 Deteriorating States Fiscal Deficit
5 Privatization of Air India
6 GIFT City: En-route to a New Commercial hub
7 India to Remain in the Top 3 Investment Destination
8 Post Recession Indias Stand and Opportunities
9 Can Economic Forecasting be called a Science?
10 India is no longer the fastest-growing
11 State Farm Loan Waivers mania needs a second thought
12 Critical Analysis of the Aadhaar Project
13 Geography
14 Climate Change may Cause More Rainfall in the Tropics
International Relations
15 India EU Free Trade Agreement
16 Saudi-Iran issue and India
17 Indias Role and challenges in SAARC
18 All about India-Nepal complicated relationship
19 Introduction to India-Israel relations
20 India and Africa in association with African Development
Bank
21 Qatar Crisis and implications on India
22 India and Spains call for Zero Tolerance to Terrorism
23 India-Bangladesh Relations
24 Reforming International Investment Agreement (IIA) and
Investor-State Dispute Settlement (ISDS)
Social Issues
25 Quota in higher education institutes
26 Women in Indian Agriculture
27 Women in the combat roles
28 WHOs new initiative on Antibiotics
29 Issue of farmers suicide in India
30 Issue of Child Labour in India
31 Child Marriages in India
Polity
32 Electronic Voting Machine (EVM)
33 Is it time to transform the Voting System in India?
34 Contest or Consent?
35 India all set to get a new data protection law?
36 Liquor ban in India: Would it prove to be effective?
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Environment
37 Issue of Genetically Modified Crops in India
38 Nuclear power in India
39 China Presenting Worlds Largest Solar Farm
40 A New Cast of Crabs in Western Ghats
41 Paris Agreement post US withdrawal
42 Discovery of Flying Squirrel
43 New Method to Assess Water Quality
Science and Technology
44 Navy Intends to Buy Advanced Subs
45 CDSCO has registered the oral pellet form of HIV drugs
46 India launched its heaviest launch vehicle GSLV MkIII-D1
47 Genetic secrets of ancient Egypt unwrapped
48 Indias polar ship still a long way off
49 Third gravitational wave merger detected
50 Discovery of new species in India
51 Citizen scientists find cold new world near solar system
52 OXYTOCIN at a fix
53 India makes medical achievement-first successful uterine
transplants
54 Neutrino opportunity
55 Scientists conjure up largest virtual universe
56 New rifle introduced but army gives second thought
57 Shift from gelatin to plant based capsules not a medical
decision
58 NASA to equip ISS with ROSA

Economy
Demonetization: An Analysis
Why it is in News?
Recent trends, especially the fourth quarter (Q4) of financial year (FY) 2016-17 saw a sharp
decline in the growth rate and is speculated that demonetization might be the cause.
What is Demonetization?
Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs
whenever there is a change of national currency: The current form or forms of money is
pulled from circulation and retired, often to be replaced with new notes or coins.
The opposite of demonetization is remonetization, in which a form of payment is restored as
legal tender
On 8th November 2016, the Government of India announced the demonetization of all 500
and 1000 banknotes of Mahatma Gandhi Series (*)
(*) The Gandhi series of banknotes are issued by the Reserve Bank of India as the legal tender
o f Indian Rupee.
Why it was done?
Government of India announced the demonetization of the then existing 500 and 1000 notes
and justified the move on the basis of the following points:
To tackle black money in the economy
To lower the cash circulation in the economy which is directly related to the
corruption in our country according to Modi.
To eliminate fake currency and dodgy funds which have been used by terror groups
to fund terrorism in India.
Effects of demonetization
Demonetization and Agriculture
Factors like Good monsoon rains, after successive drought years, the timely onset of winter, replacing
cash with deferred payments, for labor, purchase of seed, fertilizer and pesticides, Informal credit
networks and social capital led to the bumper crops.
But agriculture could not stay totally immune of the negative impacts of demonetization. Some of the
negative impacts are as follows:-
Price of the crops like Potato, Onions, tomato dropped very low.
According to some reports it has been expected that Weve entered deflation territory in farm
produce, whose proximate trigger clearly has been demonetization.
Due to the problem of liquidity, traders which used to buy and stock up whenever prices fell,
are no longer active.
Till liquidity truly returns, the ultimate sufferer is the farmer, evidence of which is visible in
mandi prices and restive hinterlands.
Demonetization and growth rate
According to some recent estimates, the overall growth rate of GDP is 6.1%, which is nearly
1% below the growth rate for the previous quarter at 7%
During Quarter 4 of this year, the only two sectors which have shown strong growth are
agriculture and public administration.
The sectors that have shown a sharp decline are construction and trade, hotels, transport and
communication. These are the sectors which use cash extensively
Is governments present policy good enough?
Over-reliance on the government is not great news for the long-term health of the economy,
or the aspiration towards less government.
Given fiscal constraints, a government spending binge extracts a toll on taxpayers.
The improvement on the agriculture figures is due to the good monsoon. The dependency on
monsoon for agricultural growth is definitely neither a stable nor a viable option.
So revival of private sector is a necessary condition.
For economic growth to create jobs, demand for goods and services has to fuel investments in
new factories and offices.
But the investment influx for the country still remains at a grave condition. In comparison to
FY 2016, growth in new investments slumped from 6.5% to 2.4% IN FY 2017.
Need for New Investment
In the days of high growth, investment hovered around 33%.

In recent years an attempt has been made to raise public investment.
In fact, this effort, combined with some improvements in the efficiency in the use of capital,
has led to significant improvements in the output of coal, power and roads
This is necessary and must be continued. But the ultimate answer lies in the pickup in private
investment.
It is only new investment that will push growth and that will generate greater employment
For sustained high growth, we need new investment and policymakers must shift their focus
towards this.
In fact, foreign direct investment has been very high. Despite this, the rate of growth of fixed
capital formation has been weak
How to Handle the Issues?
In the Economic Survey, 2016-17, following suggestions were made to handle the effects of
demonetization:-

Fast and demand driven re-monetization.
furthering of tax reforms (DTC)
Bringing land and real estate into GST.
Reducing the tax rates and stamp duties.
Acting to reduce anxieties of the investors and tax-payers about over-zealous tax
administration.
Other suggestions
Demonetization led to a severe cash crunch which pushed the economy towards cashless
economy. The better utilization of Bharat Interface for Bhim (BHIM), a digital payment app
can be the resolving factor.
Extensive programs for all sections of the society to make them capable of understanding and
undertaking online banking and transactions.
Structural changes have to be introduced to make the system more rules-basedreduce the
discretionary powers of the bureaucracy.
Make the tax system simple, transparent and less discretionary.
Make a greater effort to include the informal sector and ensure effective and quick
dispensation of justice.
Conclusion
Demonetizations immediate effect was the severe cash crunch and the after effect is - a sharp
fall in the growth rate.
Demonetization had a severe impact on private consumption.
As the cash crunch eases, consumption will probably revive. But the risk to the recovery is
from the credit crunch that demonetization worsened.
Overall, if the dependency on monsoon does not get dismantled and privates sector revives,
then the economy will definitely witness green spots.
Effectiveness of Banks merger
Context
The Finance Ministry has asked four large PSU creditors to explore opportunities for
acquisition of small and mid-sized banks with a goal to create global sized lenders.
Key Features
Large public sector banks (PSBs) like Punjab National Bank, Bank of Baroda, Canara Bank
and Bank of India could try looking for potential contenders for acquisition.

The Indian government in February had decided the merger of these five associate banks
with SBI. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore,
State Bank of Patiala and State Bank of Travancore were merged with SBI, tossing the
countrys largest creditor to among the league of top 50 banks in the world. Later inApril 1,
2017thecabinet further approved merger of BMB as well.
The combined entity will have network of over 24000 branches with ATM serving 50 crore
customers.
History
In the year 1993, the government took a drastic stride towards economic affluence and took a
step towards merger of banks.
The New Bank of India was merged with the Punjab National Bank (PNB). This was the first
merger between nationalized banks, ever witnessed in Indian history.
SBI first merged State Bank of Saurashtra with itself in 2008. Later in 2010, State Bank of
Indore was merged with it.
The decision to amalgamate the PSU banks under SBI however, has come with both its Pros and
Cons.
Benefits
Effective utilization of resources: After the amalgamation it can withstand the strong
competition from private sector banks and can accumulate more resources to channelize
trained manpower across its branches. Secondly in terms of cost cutting, instead of setting up
new branches, it can utilize the already existing branches of its child banks.
Better reachability: Merging with other banks shall result to strong occurrence of a major
bank in every nook and corner, which can help to connect with customers from small towns
and even rural areas. Further, after the closure of duplicated branches, chances of relocating
branches in underserved areas is a possibility.
Reduced risk of failure: By merging with one of the largest banks, chance of failure or
closure of bank is minimal. The larger the bank, the better is the diversification of its assets
portfolio and lesser are chances that the bank will flop in the system
Better projects and investments: With the merger SBI and other major banks will be able to
finance more in enormous projects that will lead to economic development of our country.
Shortcomings:
Job satisfaction of existing Employees: The merger might pose an adverse effect on existing
employees working in small banks as issues like skills, salary, and hikes come into picture.
Merger shall further result to loss of jobs through VRS and stoppage of recruitment which can
further complicate things.
Degradation of banks financial health: The dimness and flaws of smaller banks can further
adversely impact the health of the bigger banks. The amalgamation of Global Trust Bank with
Oriental Bank of Commerce in 2004 is one of the examples.
General Confusion: There will be some confusion initially. It will be difficult to recollect the
name of the banks which have been grouped together and amalgamated.
Conclusion
Government has been infusing money continuously to help PSBs to come out of the uncompetitive
situation and that cannot be the best solution, hence trying new strategies like merger and
acquisitions would be a better solution. Government should go ahead with the solution taking care of
the challenges coming with that.
Monetary Policy Committee (MPC) and inflation targeting
Context
MPC has failed in achieving the ambitious inflation target of 4% on a sustained basis despite near-
term inflation being temporarily well below that level.
Introduction
About Monetary Policy Committee

The Monetary Policy Committee (MPC) is a committee of the Central Bank in India (Reserve
Bank of India), headed by its Governor, which is entrusted with the task of fixing the
benchmark policy interest rate (repo rate) to contain inflation within the specified target level
i.e. inflation targeting.
The Reserve Bank of India Act, 1934 (RBI Act) was amended by the Finance Act, 2016, to
provide for a statutory and institutionalized framework for a Monetary Policy Committee, for
maintaining price stability, while keeping in mind the objective of growth.
MPC was set up consequent to the agreement reached between Government and RBI to task RBI
with the responsibility for price stability and inflation targeting.
Structure of MPC
Formation of the committee witnessed a sturdy debate with regard to the number of members
that will constitute the committee.
Finally it was decided that the committee will have 6 members
Three of the members are from the RBI while the other three members are appointed by the
government.
Members from the RBI are the Governor who is the chairman of the MPC, a Deputy Governor

and one officer of the RBI
The government members are appointed by the Centre on the recommendations of a search-
cum-selection committee which is to be headed by the Cabinet Secretary
Search cum selection committee consisting of the cabinet secretary (Chairperson), the RBI
Governor, the secretary of the Department of Economic Affairs, Ministry of Finance, and three
experts in the field of economics or banking are nominated by the central government.
Each member has one vote of equal weight, for which they can be held publicly accountable
The Governor chairs the meeting and is the last to cast his vote, acting as a casting vote in event
of a tie
Decision Making of MPC

The proceedings of MPC are confidential and the quorum for a meeting shall be four Members,
at least one of them shall be the Governor and in his absence, the Deputy Governor who is the
Member of the MPC.
The MPC takes decisions based on majority vote (by those who are present and voting). In case
of a tie, the RBI governor will have the second or casting vote. The decision of the Committee
would be binding on the RBI.
As per the Act, RBI has to organize at least four meetings of the MPC in a year.
RBI Act, 1934
Reserve Bank of India Act, 1934 is the legislative act under which the Reserve Bank of India was formed.
What is Inflation Targeting?

Inflation targeting is essentially a monetary policy of the Central Banks to maintain Inflation
rate at a certain level or range.
Under Section 45ZA(1) of the RBI Act, 1934, the Central Government determines the inflation
target in terms of the Consumer Price Index, once in every five years in consultation with the
RBI.
The monetary policy framework would be operated by the RBI. RBI would aim to contain
consumer price inflation within 6 percent by January 2016 and within 4 percent with a band of
(+/-) 2 percent for all subsequent years.
What is the Need for Inflation Targeting?
Inflation targeting will stabilize price expectations which are an essential requirement to keep
in control the volatility of price changes.
Adopting price stability as a primary objective creates a stable non-inflationary environment
for resource allocation.
RBIs Decision
At its two-day meeting that ended on 7 June, MCP of RBI has resolved to keep the policy repo
rate unchanged at 6.25%.
The decision is to be welcomed even though it largely goes against the aspirations of the
government

Simultaneously, the RBI announced that it had reduced the statutory liquidity ratio from
20.5% of the net demand and time liabilities (NDTL) to 20% of NDTL
This will free up some investible resources of banks primarily for private investment.
Rationale behind RBIs Decision
Yet the MPC has in its wisdom thought otherwise and there is deep merit in its decision.
It is true that growth is down from 7.9% gross value added (GVA) in 2015-16 to 6.6% GVA in
2016-17.
This supply-side slowdown is primarily because of the slowdown in the services sector,
particularly in construction, financial and professional services and real estate.
This has its roots in the adverse impact of demonetization in Q4 of 2016-17.
When seen from the demand side, the deceleration in growth was largely on account of a
slowdown in investment, both public and private.
These facts signal that government consumption-led growth is not sustainable and more so
when consumption is financed by borrowed resources.
In a situation like this, a policy repo rate cut can at best work as a steroid and is therefore an
unhealthy option to revive growth through private sector investment
Has MPCs been efficient?
Forecasting error
MPC in its 7th December, 2016 meeting stated that demonetization is a temporary phenomena
and expected inflation and growth to follow a V shaped pattern i.e. both the inflation
and growth would decrease sharply and then will rise, which actually hasnt happened.
Now GDP growth is at flat and inflation has followed just the first half of the V.
MPCs post demonetization inflation forecast for March 2017 was 5% with an upward bias
whereas as actual March 2017 CPI Inflation was a low 3.5% and actual April 2017 CPI
Inflation was 3%.
Thus the forecast of the three month projection shows a huge error.
MPCs prime mandate was to target headline inflation and now is considering targeting core
inflation.
RBI and MPC tug of war
Another point of contradiction has aroused between the views of the RBI and the Chief
Economic Advisor Arvind Subramanyam.
According to Subramanyam, last year saw a deceleration in manufacturing sector and there is
a strong need of macro policy support whereas RBI in its monetary policy report noted that
manufacturing sector has gained momentum in the second half of 2016-17.

With regard to growth, RBI has stated that growth is recovering of its own accord which is
not quite true. And even if it is recovering, it would be below the output potential of the
economy. So RBI needs to cut interest rates in order to support growth
But MPC states that it only needs to ensure that inflation stayed with the overall band.
Investment and rate of interest are negatively related. A non-accommodative stance is already
causing losses in terms of prospective investments.
Absolutely different from this, for a government that is keen to push growth, a cut in the
policy rate would help repair the balance sheets of banks and corporate and reverse the fall in
the investment rate.
It would further boost consumption. However, the RBIs commitment to an inflation target of
4% renders a rate cut difficult.
Communication gap
Apart from the policy related issues, RBI and MPC has failed miserably in meeting its own set
standards of communication and reporting.
In a highly regressive move beginning in October, the transcripts and recordings of the post-
policy briefings with researchers are no longer being uploaded on the RBIs website. No
explanation has been offered.
Clash between RBI and the Government
The decision by the Reserve Bank of India (RBI) to keep the policy repo rate unchanged
brought to the fore clear signs that the Centre and RBI are not seeing eye-to-eye on interest
rates.
Addressing a customary post-monetary policy press conference on Wednesday, RBI
Governor Urjit Patel told the media that the members of the Monetary Policy Committee
(MPC) had declined an invitation to meet with Finance Ministry officials ahead of the policy
review.
The six-member MPCs decision to hold rates and retain a neutral stance was also the
panels first to lack unanimity, with one member, Ravindra H. Dholakia, dissenting.
Tension had been brewing between the central bank and the Centre for some time over
several issues, but the most important disagreement was over the RBIs views on inflation.
The RBI had, in February, changed its policy stance from accommodative to neutral due to
inflation concerns, surprising many.
The MPC highlighted the risk of premature action at this stage and said it would be wise to
remain watchful of incoming data, thus avoiding disruptive policy reversals at a later stage.
The Centre, however, differed sharply with the RBI on inflation.
Chief Economic Adviser Arvind Subramanian termed real policy rates as tight and rising at
a time of low inflation and slowing growth.
However, the Governor has been critical of farm loan waivers announced by some States,
cited the risk of fiscal slippages that could entail inflationary spillovers.
Suggestions for Improvement

The immediate action that the RBI and the MCP needs to consider is improving the
forecasting analysis and at the same time not setting up rigid goals for itself.
There is an urgent requirement to clear the air on its definition of core inflation despite its
legal mandate for headline consumer price index (CPI) inflation.
The MPC/RBI must address the criticism that its preferred core measure (i.e. CPI ex-food and
fuel) is incomplete as it excludes transportation, thereby overstating core inflation.
The inflation outlook also needs to be assessed in the context of potential reflationary policies
for the agriculture and rural sectors.
The solution when it comes to moving to a sustainable higher- growth trajectory lies in
elevated private investment demand addressing structural issues
The current state of the economy underscores the need to revive private investment, restore
banking sector health and remove infrastructural bottlenecks.
Monetary policy can play a more effective role only when these factors are in place.
Premature action at this stage risks disruptive policy reversals later and the loss of credibility.
Accordingly, the MPC decided to keep the policy rate unchanged with a neutral stance while
being watchful of incoming data.
Deteriorating States Fiscal Deficit
Context
Some of the recent reports have stated that Fiscal Deficit of some states is over the suitable level.
Current Issue
Information available for 2016-17 suggests that the seven states which actually resorted to
additional borrowing can be categorized into three groups:
states which were eligible for additional borrowing but remained within the
prescribed limit
states which were eligible for additional borrowing but crossed the limit and
states which have borrowed without being eligible for additional borrowing as per
the above-mentioned criteria
While two states belong to the first category, three states have borrowed more than their
respective limits.
Finally, two states that were not eligible for additional borrowing also resorted to borrowing
during the year.
While the Reserve Bank of India (RBI) had specifically cautioned seven States not to breach
the 3% fiscal deficit target, two States had already breached that threshold
Recommendations of 14th Finance commission
14th Finance Commission (FC) recommended that the fiscal deficit of all states will be
anchored to an annual limit of 3 per cent of GSDP for the award period (2015-16 to 2019-20).
Relaxations were, however, given to state governments for additional borrowings provided
they met some criteria of fiscal prudence.
These criteria can be broadly categorized as: a) necessary and b) sufficient conditions
Necessary Condition (NC): Availing additional borrowing is contingent upon the state
recording a zero revenue deficit in the year for which the borrowing limit has to be fixed and
in the immediately preceding year.
Sufficient Conditions (SCs) : An additional borrowing limit of 0.25 per cent each is allowed if:
SC-I: states debt-GSDP ratio is less than or equal to 25 per cent in the preceding year,
SC-II: interest payment/revenue receipts (IP/RR) is less than or equal to 10 per cent
in the preceding year
States meeting one or both of the above criteria are allowed a relaxation in their fiscal deficit
targets by 0.25/0.5 per cent of GSDP provided they meet NC.
Position of the States with regard to FRL
There were seventeen states which satisfied the NC and at least one of the SCs, becoming
eligible for additional borrowing in 2016-17.
Out of these states, seven satisfied both the SCs and were eligible to have a maximum Gross
Fiscal Deficit (GFD) - GSDP ratio of 3.5 per cent in 2016-17.
There were ten states which satisfied only one of the SCs, becoming eligible for additional
borrowings to the extent of 0.25 per cent of GSDP in 2016-17. Consequently, their GFD-GSDP
ratio can increase to a maximum of 3.25 per cent.
Why the Breaching Happened?
For the first time in 10 years, the state-level gross fiscal deficit (GFD) to GDP ratio stood at 3.6
per cent in FY16, breaching the three per cent ceiling of fiscal prudence, according to the
Reserve Bank of India (RBI).
For 20 states, the situation worsened with Rajasthan, Haryana and Uttar Pradesh clocking
deficits between five per cent and 10 per cent
This was primarily due to significant capital outlays, loans and advances to power projects.
According to RBIs State Finances 2016-17, outlook for revenue receipts is uncertain due to
GST, though centre will compensate the revenue loss for five years.
As per RBI, 25 states that indicated improvement in fiscal metrics during FY17 may not
materialize and are expected to consolidate their fiscal position
RBIs Explanation
The Central Bank observed that State governments face severe resource constraints as their
non-debt receipts are often insufficient for fulfilling developmental obligations
As a result, States resorted to market borrowings to bridge the resource gap.
Over a period of time, such borrowings may result in the accumulation of debt liabilities,
which, if unchecked could pose major challenges.

Another point put forward by RBI in the State Finances Report 2016 is : excluding Uday
bonds, the combined fiscal deficits of the states would have been 2.7 per cent of gross
domestic product (GDP).
Central Bank identifies the reason for fiscal deficit target overshooting in the year FY16 (RE) is
the borrowing of Rs 990 billion under UDAY by eight states during FY16.
Including this, deficits jumped to a 12- year high of 3.6 per cent, which is the highest since
FY04 when it had stood at 4.2 per cent.
On the recent farm loan waivers, the RBI said, "while these loan waivers may alleviate the
immediate debt burden of financially distressed farmers, it is essentially a transfer from
taxpayers to borrowers with an adverse bearing on the fiscal viability of states".
Why States Fiscal Deficit Matters?
State Budgets have been the cause of concern of late because the movement in their fiscal
deficits largely determines the variation in the combined fiscal deficit of the country
States have now started forming a larger proportion of the public expenditures and having a
clear idea on their fiscal deficits is important for the monetary policy
When states run large deficits, they have to bridge those by borrowing from the market
As more bonds come in the market, the interest rate gets pushed up, even if RBI wants
interest rate to be low.
Second, the wide deficits of states happen because of expansion in expenditures.
When states spend more, it strokes inflation and RBI's inflation mandate becomes challenging
to meet.
Hence, along with centre's deficits, state deficit is important for the RBI to consider
Positive Aspects
While the states finance report noted a deterioration in the states' fiscal deficits in FY16 at 3.4
per cent, the RBI termed overall fiscal position was sustainable in long run listing GST as a
big positive for finances
As per RBI standpoint, despite the increase in the debt burden of the states in recent years,
the overall fiscal position is found to be sustainable in the long-run
Relaxations in market borrowings provided by the 14th Finance Commission have allowed
states to mobilize additional resources
The ratio of states gross fiscal deficit (GFD) to gross state domestic product (GSDP) is
budgeted at 2.6 per cent for 2017-18, according to data available for 25 states.
This is lower than the 3.4 per cent in 2016-17 as per revised estimates, the central bank said.
The number is also lower than the centres fiscal deficit target of 3.2 per cent for 2017-18.
Privatization of Air India
Air India
Air India is the flag carrier airline of India
Headquartered at New Delhi, it is owned by Air India Limited, a Government of India
enterprise, and operates a fleet of Airbus and Boeing aircraft serving 90 domestic and
international destinations.
The airline was founded by J. R. D. Tata as Tata Airlines in 1932 and post World War II it
became a public limited company and was renamed as Air India.
In 1953, the Government of India passed the Air Corporations Act and purchased a majority
stake in the carrier. The company was renamed as Air India International Limited and the
domestic services were transferred to Indian Airlines as a part of restructuring
Privatization of Air India
In 200001, attempts were made to re-privatize Air India. In 2007, Air India and Indian
Airlines were merged under Air India Limited
The combined losses for Air India and Indian Airlines in 200607 were 7.7 billion and after
the merger, it went up to 72 billion by March 2009. By March 2011, Air India had accumulated
a debt of 426 billion and was seeking 429 billion from the government.
In 2013, the then-Civil Aviation Minister Ajit Singh stated privatization was the key to the
airline's survival, however the call for privatization brought in strong opposition led by BJP
and the CPI (M).
Air India reported an operational loss of Rs. 246.14 crore in the April-June quarter of 2016.
Current Issue
The Economic Survey 2017 recommended that the government privatize Air India. The state-
owned airline has a debt of about Rs50, 000 crore.
The Narendra Modi government has decided to privatize Air India. Finance and defense
minister Arun Jaitley has said that on the basis of the suggestions provide by NITI Aayog, the
civil aviation ministry has been asked to plan for the privatization of Air India Ltd.
This is the most explicit stand on the airline by the government so far.
What is the Need for Privatization?
Everything that could possibly go wrong with a public sector company has gone wrong with
Air India. It is operationally inefficient and unable to compete with private sector operators.
The airline has been grossly mismanaged over the years and now is being probed by the
Central Bureau of Investigation.
Considering the financial dimension, the 2012 turnaround plan has not shown the desired
results. The government committed itself to infusing Rs42, 182 crore of equity between
financial years 2011-12 and 2031-32. However, the airline has not been able to achieve the
targets set in the turnaround plan.
As highlighted by the Comptroller and Auditor General (CAG) of India, compared with the
target of raising Rs500 crore annually through monetization of assets in the four-year period
from 2012-13 to 2015-16, the company managed to raise only Rs64.06 crore.

Similarly, it has not been able to meet the operational targets. The company has accumulated
debt of about Rs50, 000 crore out of which and is struggling to repay. The government will
have to keep bailing out Air India with taxpayers money if it decides to hold on to it.
How could the privatization be proceed?
Options available to government
Currently the Union Cabinet is considering outright sale of Air India

The Union Government is considering three options to divest the governments majority
stake and consider the creation of a special purpose vehicle (SPV) to get rid of a major portion
of its more than Rs. 50,000-crore debt.
As per the note prepared by the Department of Investment and Public Asset Management
(DIPAM) for the Cabinet's consideration, three options on the table are:
(a) a full 100% sell-off
(b) a 74% stake sale or
(c) retaining a 49% share in the airline
The Divergence
The Central government think-tank NITI Aayog and the Finance Ministry are in favour of an
outright sale of the ailing airline
But the Civil Aviation Ministry is keen that the government continues to remain a
stakeholder in the national carrier after handing over the management to the private sector.
Talks of Special Purpose Vehicle (SPV)
The Cabinet is also considering a proposal of clearing up Air Indias liabilities by forming a
Special Purpose Vehicle (SPV)
The Special Purpose Vehicle (SPV) will house a portion of its non-aircraft debt along with its
subsidiaries and real estate assets
Case for privatization
The government has fiscal constraints and needs to spend more in important areas such as
health and education. There is absolutely no rationale in exhausting resources in running a
company like Air India
Considering the established norms of market economy, the government should not be in the
business of providing goods and services where the private sector has a vibrant presence.
And this applies to all businesses run by the government.
Furthermore, the presence of state-owned enterprise distorts the market. A firm with access
to government finances and practically no fear of failing affects price discovery in the market
and can hurt private sector operators in the business.
Another point is, disinvesting the loss-making Air India will send a strong signal to investors
that India is serious about reforms and is no longer willing to throw good money after bad.

This will also set an example and pave the way for disinvestment of other loss-making
companies, such as Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd
(MTNL). There is no way that these companies will be able to compete in Indias hyper-
competitive telecom market.
Prospective Solution
It will not be easy for the government to privatize the debt-laden Air India. It will have to
work with professionals and investment bankers to find ways and make the deal reasonably
attractive for a prospective buyer.
The government will have to bring down the level of debt in the company. This can possibly
be done by selling non-core assets.
The government can infuse equity capital one last time to bring down the debt and make it
attractive for potential buyers. If the financial institutions are willing, a part of the debt can be
converted into equity.
GIFT City: En-route to a New Commercial hub
Whats the Current Aspect?
On 5th June 2017, National Stock Exchange (NSE) initiated its exchange in the GIFT City.
The move comes five months after rival BSE went live with its operations in the special
economic zone (SEZ).
What is GIFT City?

Gujarat International Finance Tec-City or GIFT is an under-construction central business
district between Ahmedabad and Gandhinagar in the Indian state of Gujarat.
Its main purpose is to provide high quality physical infrastructure (electricity, water, gas,
district cooling, roads, telecoms and broadband), so that finance and tech firms can relocate
their operations there from Mumbai, Bangalore, Gurgaon etc. where infrastructure is either
inadequate or very expensive.
It will have a special economic zone (SEZ), international education zone, integrated
townships, an entertainment zone, hotels, a convention center, an international techno park,
Software Technology Parks of India (STPI) units, shopping malls, stock exchanges and
service units
The idea of this city was conceived during the Vibrant Gujarat Global Investor Summit 2007.
The exchange will see trading on derivative products based on stocks, indices as well as on
precious metals (gold and silver) and currencies i.e. apart from offering derivatives contact on
gold and silver, contracts for the same will be offered on the two cross currency pairs of euro-
dollar and GBP(*)-dollar.
NSE will initially offer trading in derivatives contracts of Nifty, Bank Nifty and Nifty IT.
The exchange will also open up trading in at least 10 stocks each from the domestic and
global markets.
The market timings will be gradually extended based on demand. The trading hours will overlap
with the timings in London and Dubai markets. This will allow investors to react to news
developments over a longer period of time, said a release from the exchange.
Future Prospects
Exchanges and other Gift City participants are hopeful regulators, including the Securities
and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), will give a push to
the operations by allowing more products.
GIFT City seeks to compete with global financial hubs like London, New York Singapore,
Dubai and Hong Kong, is developing fast with several domestic and global entities setting
shop there.
Foreign investors will be attracted toward Gift City IFSC as trading here will be more cost
effective compared to other global financial centers. Also, investors would prefer trading in
India-based derivatives contract in the domestic market once there is enough liquidity.
(*) GBP Great Britain Pound
India to Remain in the Top 3 Investment Destination
Why in News?
According to United Nations Conference on Trade and Developments (UNCTAD) World

Investment Report, 2017, India continues to remain at rank 3 as a favorite destination for
investment.
UNCTADs World Investment Report 2017 also said India ranked 10th in terms of FDI
inflows in 2016
Implications
India continues to remain as a favorite destination for FDI even though tax related concerns
remain as a deterrent for the foreign investors
Over the next two years, India will be behind only the U.S. and China in terms of investment
attractiveness
The report noted that although FDI flows had remained the same in 2016 as they were in
2015, there was global interest in mergers and acquisitions in the Indian market
Potential Cause
A surge in investments in the first four months of 2016 is mainly on account of the Make in
India initiative

along with that liberalization measures and reforms initiated by the current government
makes India an attractive investment hub
The huge potential offered by India, the fastest growing major economy, is also one of the
reason of such interest
Post Recession Indias Stand and Opportunities
Context
After the recession of 2008, the world recovery has been slow and while for most of the countries,
high or higher growth rate might be ambiguous or illusionary India has great opportunity before it.
Background
Post 2008 recession the global economy has recovered at a tepid rate of around 2.5% per
annum.
Now what is noticeable is that this recovery rate has been much lower than that after World
War II.
The end of World War II brought a baby boom to many countries, especially Western ones.
But for the baby boom and the massive rebuilding of economies after World War II, the fact is
global growth never topped 3%
When considered relatively with pre World War II period, the period between World War II
and the financial crisis was characterized by population growth, major investment,
productivity gains, increases in global trade and cross-border flows of people a debt boom.
Today, in most countries, these trends are decelerating.
Cause of the Slow Global Growth
The major reason behind this tepid global economic growth is the demographic cause of
declining population.
For most countries, a declining population was already on the way prior to the financial crisis
Population growth boosts economic growth through an increase in the workforce, aided by
an increase in productivity.
Apart from the demographic aspect, on the economic font; protectionism, de-leveraging and
no major productivity-enhancing revolution are the other major causes of the current
However, it cannot be refused that political manipulation and power mongering has a major
role to play in this slow economic growth.
Indias Position
Though for most of the countries the situation does not appear very favorable, but for India,
there lies a great opportunity.

India is about to enter the phase of a demographic dividend which would be an impetus to
growth, if the new entrants to the work force are productively employed.
Indias Stand
The government has recognized the need for jobs and embarked on a multi-pronged strategy
This strategy encompasses
corporate governance reform
pro-growth tax reform
agricultural reform
government administration reform
the expansion of public-private partnerships
increasing jobs through targeted manufacturing/service investment in sectors like
tourism, health, education, micro and small enterprises, agribusiness
massive drive in all these areas and efficient and continuous functioning of drives
like Make in India, Skill India
productivity-based infrastructure development and
initiatives related to the ease of doing business.
Result of these Strategies
These strategies have begun to make a difference and should, over a reasonable period of
time, create the jobs that are needed.
The rationalization of subsidies and direct cash transfers will plug leakages associated with
the previous subsidy regime and make money available for merit subsidies health,
education, etc. that can help us exploit our population dividend.
Hurdles that Stands in Front of India
The global financial crisis largely passed India by; so, our need for quantitative easing was
limited.
But we have created our own crisis non-performing assets (NPA).
Furthermore, an ADB report suggests that a growth slowdown of 1.6 percentage points in
China would bring about a growth deceleration of 0.26 percentage points in developing Asia
as a whole.
Meanwhile, India is most insulated from Chinas slowdown: Its annual GDP growth could be
lower by a slight 0.14 percentage points.
India has an Opportunity. How?
Unfortunately, the tech-based productivity revolution largely passed India by, so did
fortunately the money revolution
Indias debt to GDP ratio is 68 per cent. We are now poised to leapfrog directly into the
digital world and reap the productivity gains.

Secondly, with growing political uncertainty in the US, the emergence of protectionist
policies and amidst slowdown concerns related to China, countries whose GDP is dependent
on exports could find themselves with increased instability.
The most affected are those with exports accounting for a high percentage of their GDP and
with low domestic demand support.
Thus India appears to be less vulnerable on these fronts.
Despite the USs importance as a market for India and Japan shipments to the US make up
only 2 per cent and 3 per cent of their respective GDPs.
The larger and more diverse nature of these economies provides them with some cushioning
from protectionist trade policies of US.
With roughly 59 per cent share in Indias GDP, household consumption spending has been
the major driver of economic growth and has, on many occasions, acted as a protective shield
to global demand shocks.
India also has low reliance on external savings to fund its growth.
The Indian banks are mainly deposit-funded and dont rely on wholesale funding to grow
their loan books
What India Needs to Do?
The priorities should be focusing on the ease of doing business, infrastructure improvement,
fiscal reforms such as GST agriculture reforms, administrative reforms, conservation,
labor reforms and the digital revolution
Manufacturing has to be expanded so as to increase output and employment opportunities
and quality up gradation has also to be taken care of so that Indian products can compete and
survive in the global competition.
The above factors combined with the increase in consumption through workforce increase,
should impact both consumption and investment, leading to the delta required to take our
GDP past 8 per cent.
Conclusion
In a changing world the economic leaders are likely to be countries that less reliant on global
trade, domestic consumption-driven, with an increasing population, a scope for productivity
improvement and a low per capita base.
It would be fair to conclude that Indias GDP growth rate of 7.5 per cent is good and
sustainable: So also is the potential target of 8 per cent plus.
Given the condition that India works efficiently towards the target and simultaneously taps
its peripheral opportunities, it will definitely come out as a global economic giant.
Can Economic Forecasting be called a Science?
Why the Discussion?

Last month India lost its tag of worlds fastest growing economy as its fourth quarter GDP
This was a stark blow to the expectations of the most of the economists.
They expected the economy to rebound as it quickly healed from the impact of the
demonetization of high-value rupee notes in November.
Critics of demonetization felt vindicated, particularly after GDP figures for the third quarter
suggested that the shocking, overnight move to demonetize had very little negative impact.
Why Economic Forecasting is being challenged?
One, data cannot prove or disprove any hypothesis as they do not establish causation.
The mere fact that growth slowed in the first full quarter after demonetization does not prove
decisively that the slowdown was caused by demonetization.
Nor does the unexpectedly strong GDP growth in the third quarter prove that
demonetization has had no negative impact on the economy.
The economy is a complex organism with several variables working in tandem, which makes
prediction an almost impossible task.
This is in contrast to the physical sciences where controlled experiments allow scientists to
tease out the influence of any variable.
Two, there are no constant relationships between variables when it comes to the economy
that allow for making exact predictions.
Even if economists find the exact impact that demonetization has had on GDP growth, there
is no guarantee that it would hold in the future.
Three, macroeconomic forecasting is focused to a very large extent on measuring things
that are fundamentally immeasurable.
Finally, both innocent and political biases influence the process of official data collection to
calculate GDP, a fact that raises questions about its reliability.
Implications
None of this is to say that economists can make no useful predictions

But such predictions are more likely to be qualitative rather than quantitative.
Obviously, economist could foresee that demonetization would have a substantial impact on
the economy; simply from the premise that money greases the wheels of commerce, so
outlawing it would affect demand and create chaos across production lines.
But trying to quantify its impact in terms of the exact percentage points of growth that would
be shaved off GDP is a futile exercise
India is no longer the fastest-growing
Context

India lost its fastest-growing major economy tag in the fourth quarter of 2016-17, with GDP growth
coming in at 6.1% compared with Chinas 6.9%.
GDP
Gross domestic product (GDP) is the monetary value of all the finished goods and services
produced within a country's borders in a specific time period.
GDP includes all private and public consumption, government outlays, investments, private
inventories, paid-in construction costs and the foreign balance of trade (exports are added,
imports are subtracted)
Thus the components of GDP are (C) plus Investment (I) plus Government Spending (G)
plus BOP i.e. Exports minus Imports (X-M)
GDP is calculated using this standard formula: C + I + G + (X-M).
GDP is commonly used as an indicator of the economic health of a country, as well as to
determine a country's standard of living
Since the mode of measuring GDP is uniform from country to country, GDP can be used to
compare the productivity of various countries.
Data
Data from the Ministry of Statistics on Wednesday showed GDP grew 7.1% in the financial
year 2016-17, slower than the 8% registered in 2015-16.
The GDP numbers were based on the new 2011-12 base year recently adopted for data
including the Index of Industrial Production (IIP) and Wholesale Price Index (WPI).
Gross value added (GVA) growth was 6.6% for 2016-17 and 5.6% in the fourth quarter,
compared with 7.9% in 2015-16 and 8.7% in Q4 of that year.
GDP and its importance
The gross domestic product (GDP) is one of the primary indicators used to gauge the health
of a country's economy.
Economic production and growth - what GDP represents - has a large impact on nearly
everyone within that economy.
A significant change in GDP, whether up or down, usually has a significant effect on
the stock market
Investors worry about negative GDP growth, which is one of the factors economists use to
determine whether an economy is in a recession.
Reasons for slowdown
The numbers show a clear slowdown in GVA. Post-demonetization there has been a
slowdown.
The GDP growth rate is slightly higher (than GVA growth) because of a more than
proportionate increase in indirect tax net of subsidies.

State Farm Loan Waivers mania needs a second thought
Context
The Centre and states together must formulate a farm credit model which guards both
farmers and creditors without affecting the credit culture.
What is the controversy over farm loan waiving?
In a country, where annual agriculture surplus is about 96,000 crore, farm loan waiver is
just a poll sop with no long term economic gain for farmers in distress
Loan waivers have led to a rise in the non-performing assets (NPAs) of banks, especially
public-sector banks, and are likely to have a significant bearing on the state and national fiscal
deficits.
In 2013, agricultural NPAs accounted for about 41.8 per cent of "priority sector"
The farm loan waiver undermines an honest credit culture and further impacts credit
discipline which dampens incentives for future borrowers to repay loans.
If on account of this, overall government borrowing goes up; yields on government bonds
also are impacted. Thereafter it can also lead to the flocking out of private borrowers as
higher government borrowing can lead to an increase in cost of further loans.
Key facts
India faces a cumulative loan waiver of 3.1 lakh crore, or 2.6 per cent of its GDP in 2016-17.
Over nine years to March 2017, the central and state governments waived 88,988 crore in loans
to 48.6 million farmers.
The nationwide 52,000 crore loan-waivers announced by the United Progressive Alliance
(UPA) in 2008 occupies the bulk of this figure.
Uttar Pradesh and Maharashtra, the countrys largest states by population, have announced
waivers on more than Rs665 billion ($10.3 billion) in agricultural loans since April.
The new chief minister of Uttar Pradesh (UP), Yogi Adityanath, made his first substantive
economic announcement, in keeping with his partys manifesto, although there was no overt
demand from UP farmers then
Challenges faced by farmers
About 85 per cent of all operational farm holdings in India are less than two hectares in size.
Owners of these shrinking farms find it difficult to use modern machinery and are often too
poor to afford farm equipment.
Manual labor increases costs, and size and output further limits access to loans and
institutional credit.
Irrigation, increasingly vital in an era of climate change, has failed Indian farming. No more
than 47.6 per cent of India's farms are irrigated, and the decadal growth in net-irrigated area
to 2010 was 0.3 per cent, according to Ministry of Agriculture.

Limitations of private credit lending
Around 90% of the debt owed by farmers is to private lenders.

It is highly exploitative in character because of the inherent profit motive.
Since such credit is provided largely for unproductive purposes the rate of interest charged is
very high.
Such credit is not necessarily directed toward needy persons or desired channels.
Such credit is provided for short periods of time and at high rates of interest and cannot,
therefore, be utilized for land development or long- term improvement of agriculture.
Institutional credit is not linked with other non-farm services such as marketing and process-
ing and warehousing.
Can waiver eradicate the challenges?
The loan waiver is a mere tool, but it does not necessarily endorse transformation. They are
the instrument but not the answer.
Farm loan waiver, in the long term, is an example of poor governance and policies as they are
a medicine which only works temporarily. However, they fail to addresses the underlying
problem of the lack of efficient markets in agriculture
The impact was limited since a large chunk of farmers dont borrow from formal
institutions like banks but from private creditors.
Effects of farm loans waivers
Evidence from the 2008 farm loan waiver proved that the loan waiving scheme can have
unintended consequences.
Economists at SBI have calculated that farm loan waivers Uttar Pradesh will cost about Rs27,420
crore, or about 8% of the states revenue.
Economists believe that the Maharashtra governments fiscal deficit would rise up to around
2.71% in the current financial year of gross state domestic product.
If the government takes the burden on itself and repays the loan taken by the farmers, it will
impact the governments finances which in turn will raise the state's fiscal deficit.
What should be done(alternative)
The agriculture sector needs government provisions and schemes but loan waivers are not
the solution. On the contrary, expenditure on loan waivers will eventually leave less fiscal
space for public expenditure in agriculture.
India needs massive investment in areas such as irrigation, water conservation, better
storage facilities, market connectivity and agricultural research. The problems in Indian
agriculture are structural.
They need long-term solutions. Loan waivers will only end up complicating the problem.

It is to be ensured that the quantum of fresh borrowing is reduced to the minimum, keeping
in view the repayment capacity of farmers.
It is equally important to ensure that new borrowing is strictly for productive purposes and
not for meeting consumption needs
The government needs to be technology enabler instead of waiving loans so that farmers
are empowered to make their produce remunerative.
Critical Analysis of the Aadhaar Project
Aadhaar becomes mandatory for two schemes
The Aadhaar card has been made mandatory to get subsidy on kerosene and benefits from
the Atal Pension Yojna.
The last date for getting the Aadhaar or enrolling for it is 30th September for the kerosene
subsidy and 15th June for the pension scheme.
Till Aadhaar is obtained, ration card, driving license, voter identity card, Kisan passbook with
photo, job card issued under the Mahatma Gandhi National Rural Employment Guarantee
Scheme or a certificate issued by a gazette officer or a Tehsildar will be considered as proof of
identity for the benefits.
It has also been decided to link the Aadhaar card with the ration card issued to beneficiary
households or with the bank account for cash transfer.
Why such steps?

Earlier, various identity proofs were required for access to government benefits, subsidies
and services, such as a ration card, driving license or voter id.
However, as these proofs could be easily duplicated or forged, there was leakage of benefits
and subsidies to ineligible beneficiaries.
It was thought to be a more reliable identity proof, because it sought to authenticate a
persons identity based on their unique biometrics, like fingerprints and iris scans.

What is Aadhaar?
The Aadhaar is the brand name of the Unique Identification Number that the Unique
Identification Authority of India (UIDAI) issues to every resident of India.
It is a twelve digit number which is linked the residents demographic and biometric
information
Each number relates to a set of information stored in a centralized database which aids in real
time verification.
The Aadhaar Project
The Aadhaar Project was initiated by the Government of India as an attempt towards single, unique
identification document that will include all the demographic and biometric information of the

residents of India. The objective of the scheme is to issue a unique identification number by the
Unique Identification Authority of India, which can be authenticated and verified online.
Purpose of the Aadhaar Project

Inclusion:
The birth registration system in India is not efficient enough and millions of Indians live
without a birth certificate.
A large part of the Indian population had no IDs or relied on IDs like ration cards and Voter
Cards. Most of these IDs like the Voter ID card are meant only for adults. This necessitated
the need for a single digital ID which could be verified anytime, anywhere in India.
This would also facilitate the access to host of governmental benefits and services.
Efficiency:
For the effective enforcement of individual rights it became necessary to have a unique
identification number.
A clear registration and recognition of the individual identity with the state is necessary to
implement their rights, to employment, education, food etc.
However, the lack of proper identification system led to duplicate beneficiaries in
Government welfare schemes. Thus, for the state to deliver rights to individuals, the
enforcement of the unique registration became necessary.
Supreme Court over Aadhaar-Pan card linkage
The petitioners have argued that making Aadhaar card mandatory discriminates between
individual and non individual assesses as it only seeks to address the tax fraud by the
individuals.
But the Court has rejected the argument saying that Aadhaar is the best method of
eliminating duplicate PANs.
On the other hand Supreme Court has also provided relief to the people not enrolled for
aadhaar by stating that their PAN cards cannot be invalidated till the time when the matter is
finally decided by such a bench.
Challenges faced by the Project
The establishment of uniqueness: This had to be done without the birth certificate.
Biometric duplication was carried out to establish the unique identity.
To cover the huge population of India within a particular time frame turned out to be a
serious challenge.
The third challenge was the design for privacy and security
Finally, to execute such a big project in a complex political and bureaucratic environment was
a serious challenge.
Benefits of Using Aadhaar
Cost Effective:

Govt. can save Rs 50,000 crore per year by using Aadhaar Card for distributing social
welfare schemes to the poor by better targeting as most of schemes are marred by
leakages. In the form of DBT scheme for LPG, government has saved Rs 10,000 crore in
two years.
As per Nandan Nilekani, Government of India can now claim to be paper-less, presence-
less and cash-less by using Aadhaar Card extensively which can further save about 2000
crore of papers approximately.
Time Saving: 600 million hours would be saved by 300 million+ people who seek Govt.
services daily
Financial Inclusion: Jan Dhan, Aadhaar, Mobile trinity can be the greatest beneficiary for
the poor who didnt have any identity till date, helps in financial inclusion and reduce
exclusion errors.
Net Neutrality: Aadhaar Card shall also help in ensuring Net Neutrality, as digital
identity of all Aadhaar Card users would be stored within India.
Issues and concerns pertaining to Aadhaar:
Privacy and Security concerns: Advocators of privacy and information protection are arguing
that Aadhaar Card can be grossly misused by both Govt. agencies and via unauthorized
access.
Surveillance, tracking or profiling of people beyond legal sanctions using the centralized
database, either through external hacks or through insider leaks and connivance have
emerged as a major concern. Thus, a strong cyber security becomes very important.
Aadhaar act, which provides the Aadhaar card legitimacy, has been passed as a money bill
i.e. by passing the upper house of parliament.
Making Aadhaar mandatory for tax filing and various other schemes has been a resisted by
people, a case is ongoing over that issue.
Technical shortcomings, authentication and coverage issues
Exclusion due to authentication issue has emerged as a serious concern. A large number of
Aadhaar card holders are facing authentication issue while accessing the Public Distribution
System.
There have also been cases where Aadhaar cards could not be issued due to technical
shortcomings. Thousands still remain without the Aadhaar cards due to such technical
shortcomings and are often being branded as the duplicate, fraud or even dead and thus
denying them access to governmental benefits and services.
Lately, people have also complained about unavailability of Aadhaar enrolment centers. This
has led to a major setback to the Aadhaar Project as a large number of people are facing
problem issuing Aadhaar card due to inadequate number of centers.
Conclusion

Privacy still remains the contentious issue over Aadhaar project, but minimal monitoring is indeed
required by the state to protect citizens. Although there are several issues with the Aadhaar project,
but the benefits that can be availed by that cannot be neglected.
The government still requires much more dedicated, informed and comprehensive security policies
and accelerated efforts to realize Aadhaars full effectiveness.
Geography
Climate Change may Cause More Rainfall in the Tropics
Context
NASA study has warned that increasing global warming will result in significant increase in
amount of rainfall in the Tropical region.
The research was led by scientist Hui Su of NASAs Jet Propulsion Laboratory.
Why the change?
Rainfall is related to both clouds and the earths energy budget- the flow of incoming solar
energy and outgoing heat energy released by the earth.
The high-altitude tropical clouds trap heat in the atmosphere.
The increasing surface warming would lead to less creation of higher clouds in the
atmosphere.
Global shift in atmospheric general circulation is occurring as a result of increasing warming
of the Earths surface.
The atmospheric general circulation includes a wide zone of rising air centred on the Equator.
Research has shown that this zone is narrowing down as a result of warming of the climate.
This results in decrease in high altitude clouds.
If there are lesser high clouds in the atmosphere, it is likely that the tropical atmosphere
would cool.
It would also increase tropical rainfall.
Increase in the tropical rainfall would warm the air to balance cooling from high cloud
shrinkage.
Rainfall warming- How is this possible?

We believe that rainfall only has a cooling effect.
However, rainfall might also cause warming
When water evaporates into water vapour on the Earths surface and rises into the
atmosphere, it carries with it the heat energy that made it evaporate.
In the cold upper atmosphere, when the water vapour condenses into liquid droplets or ice
particles, it releases its heat and warms the atmosphere.
Why are monsoon rains crucial for the Indian economy?

Indian economy is largely agrarian and the agriculture in India is largely dependent on the
monsoon as nearly half of the crop-area in the country is rain-fed. The lack of irrigation
facilities throughout the country increases the dependence on monsoon rains.
The monsoon also replenishes many water reservoirs crucial for drinking, power and
irrigation.
More than half of Indias population is dependent on agriculture and the economic activity
accounts for nearly 15% of the Gross Domestic Product (GDP).
Poor monsoon conditions thus can have disastrous effect on the Indian economy.
How does monsoon impact the economy?

Monsoon has direct impact on countries agricultural GDP.
The fate of Kharif crops like rice, sugarcane, pulses etc depends largely on the monsoon rain.
Normal monsoon conditions helps in better farm output thus resulting in overall increase in
the farm income.
However, excessive rainfall or deficient monsoon rains leads to crop failure. As a result,
overall agricultural production is low.
Such a situation may lead to supply issues, consequently increasing the prices, thus resulting
in food inflation.
Normal rains act as a strong check on food inflation by increasing food output and
availability.
When monsoon is good, the robust farm output results in high rural income.
This increased income results in an increase in the demand for consumer and automotive
goods in the rural markets.
Without this demand, the industrial growth would slow down.
Recent trends
Monsoon rains were poor for two consecutive years of 2014 and 2015 which affected the
growth of the economy.
After a normal monsoon in 2016, 2017 too, is expected to be a normal monsoon year.
A normal monsoon this year is expected to result in high agricultural yield and better rural
household income.
The consumptive demand which has been severely affected post demonetization is also
expected to rise and thus result in overall growth in the economy.
Types of rainfall
On the basis of origin and characteristics, rainfall can be classified into the following types:
1. Convectional rainfall:
Necessary conditions:
The intense heating of the surface so as to expand and raise the lower layer of the
atmosphere, and
Abundant supply of moisture in the air to provide it with a high relative humidity
Mechanism:
The warm ground heats the air over it.
The air expands and rises

As the air rises, it cools
Water vapour in the air condenses mainly in the form of cumulus or cumulonimbus
clouds and brings rain.
Distribution:
Under favourable conditions convectional rainfall occurs in the low latitudes and
temperate zones.
It is an important characteristic feature of the equatorial belt of low pressure.
The zone witnesses mid-day formation of clouds, followed in the afternoon or evening by
occurrence of rainfall. The clouds dissolve at late night and morning sky is clear.
2. Orographic Rainfall
Mechanism
Mountains or highlands acting as barriers force the air to rise
As the air rises in cools. Why? Higher altitude causes cooler temperature.
Cold air cannot hold as much moisture as warm air.
As air cools, the water vapour in the air condenses.
Further condensation leads to formation of clouds and finally rainfall or snowfall.
Rain or snow occurs in the windward side of the physical barriers.
The air is now dry and rises over top the mountain.
As the air moves back down the mountain, it collects moisture from the ground via
evaporation.
On the leeward slope, a relatively dry area exists which is known as the rain shadow.

Inversion of rainfall: There is continuous increase in precipitation on the windward
slope up to a certain height, beyond which it starts decreasing. This is because lower
moisture content. Such phenomenon is termed as the inversion of rainfall.
3. Frontal Rainfall
Mechanism
Frontal or cyclonic rainfall occurs when warm and cold air masses converge.
The warmer air mass is forced up over the cool air.
As it rises, the warm air cools, the water vapour in the air condenses, and clouds and
precipitation result.

The
India Meteorological Department (IMD) has predicted the country would get normal monsoon
rains in 2017.
The IMD announced that in 2017, Indias annual monsoon is expected to be 98% of the long-
period average (LPA).
This implies higher prospects of farm output and economic growth.

International Relations
India EU Free Trade Agreement
India and the EU first started negotiations in 2007 on an FTA to cover trade in goods, services, intellectual
property and foreign investment. However, 13 rounds of negotiations have not yielded a treaty to
regulate trade and investment between the two sides
Why in news?
During the 13th India-EU Summit that was held after four years and was attended by Prime
Minister Narendra Modi and EU leaders, India and EU failed to declare the announcement with
regard to the resumption long stalled negotiations for free trade agreements as many hurdles still
remains.
However leaders of both the sides have welcomed the re-engagement of discussions for
furthering the proposal pact.
It was expected that India and the 28 nations European Union (EU) would announce resurrection
of talks, which have been on hold since May 2013 as both the sides are yet to come into a
consensus on crucial issues like data security status for the IT sector.
What are the Hurdles and their Impact on India?
Hurdle
First in terms of trade, the purpose of an FTA is to bring down tariff rates from the most favoured
nation (MFN) rates. One of the major demands of EU is that India should lower tariffs on
European automobiles and wine and spirits.
Impact:
This will cause great trade for EU but for India it will imply more imports than exports.
EU tariff rates are already low and thus, apart from sectors like textiles and fisheries, Indias
exports to the region might not increase significantly if tariffs are cut.
Hurdle
Another factor in terms of goods is the non-tariff barriers such as sanitary and phytosanitary
measures. EU imposes stringent labeling requirements and trademark norms.
Thirdly, in terms of services if India wants to benefit from a FTA with EU, then it needs strong
binding promise from EU to liberalize trade in services.

Fourthly, in terms of intellectual property (IP), the major disagreement is regarding IP protection
standards.
Impact:
India should not agree to additional protection measures as this could compromise public health
and raise other compelling concerns
Hurdle
Fourthly, Indias new model bilateral investment treaty (BIT) is an issue, especially for foreign
investment.
Impact:
Indias BIT model does not contain an MFN provision, excludes taxation measures, and makes it
mandatory for foreign investors to exhaust domestic judicial and administrative remedies for at
least a period of five years before pursuing a claim under international law.
Indias Benefit from the FTA
India will gain a lot from an FTA with the EU with regard to preferential and duty free access to
European market.
According to a Sustainability Impact Assessment, commissioned by the EU called Trade
Sustainability Impact Assesment for the FTA between the EU and the Republic of India an
extended FTA i.e. and FTA that will include further removal of non-tariff barriers would lead to
significant benefits in terms of welfare gains, production, international trade, wage and
productivity increase.
The welfare effect of the FTA will provide an additional 0.3% growth for the Indian economy in
the short run and 1.6% growth in the long run.
FTA between India and EU will boost job creation and facilitate investments.
Indias demographic dividend will provide it with a young, skilled, competitive workforce which
Europe lacks. And India needs employment opportunities to absorb this demographic dividend
which an FTA with the EU can provide with.
Way Forward
Manufacturing Sector Reform
India has to improve its manufacturing by introducing domestic reforms.

Indias manufacturing sector is still struggling in comparison to international market
competitiveness
Providing a more congenial and conducing environment to the domestic manufacturers will
lead to production of better and competitive goods
With a quality manufacturing sector India can afford to clear through the stringent non-tariff
barriers.
Tariff Reforms:
India levies an average tariff of 14.1% which has to be reduced.

India can consider a policy of setting lower tariffs for the automobile sector and can move
towards stringent IPR regulation and promotion of innovation.
This will provide the much needed mutual confidence that is needed to arrive at the India-
EU FTA.
Government Initiative:
Government has to come up with proper procurement processes.

GOI launching long awaited economic reforms in India can be an incentive for EU firms to
enter the Indian market.
This could offset the impact of the tapering off quantitative easing, both by the US Federal
Reserve and the European Central Bank by injecting appropriate capital flows in India
What are Free Trade Agreements?

FTAs are arrangements between two or more countries or trading blocs that primarily agree
to reduce or eliminate customs tariff and non tariff barriers on substantial trade between
them, but (in contrast to a common market) capital or labor may not move freely.
FTAs normally cover trade in goods (such as agricultural or industrial products) or trade in
services (such as banking, construction, trading etc.).
FTAs can also cover other areas such as intellectual property rights (IPRs), investment,
government procurement and competition policy, etc.
Why most of the countries are signing FTAs?
Countries sign and negotiate ion FTAs for many reasons.

By eliminating tariffs and some non-tariff barriers FTA partners get easier market access into
one another's markets.
Exporters prefer FTAs to multilateral trade liberalization because they get preferential
treatment over non-FTA member country competitors.
Saudi-Iran issue and India
Context:

A twin assault at the Parliament and the tomb of Ayatollah Khomeini, the founder of the Islamic
Republic on June 7, 2017 killed at least 12 people.
Islamic State has claimed responsibility for the suicide bombings and gun attacks.
But Irans Revolutionary Guards have accused Saudi Arabia of masterminding the attacks in
Tehran along with ISIS.
Present Issues:
Iran and Saudi Arabia are on opposing sides of a more than 1,000-year old argument between
Sunnis and Shia. After the death of the Prophet Muhammad, the power struggle began over who
was his rightful heir.
The relationship between Iran and the Gulf Cooperation Council countries Saudi Arabia,
Kuwait, Oman, Qatar, Bahrain and the United Arab Emirates is at risk leading to direct
confrontation.
The relationship between Iran and Saudi Arabia has deteriorated to such an extent that both sides
and their allies have found themselves at the precipice of a major war.
Saudi Arabia has also managed to convince several other GCC states and a number of countries
in the Arab and Muslim world to support it against Iran.
Saudi Arabia and other Gulf Arab states broke diplomatic relations and cut all land sea and air
contacts with Qatar, accusing it of supporting terrorism and aligning with Iran.
Implications (Global):
The struggle for dominance between Saudi Arabia and Iran is worsening the problems in the
Middle East such as dictatorship, militia violence and religious extremism.
Saudi Iran tension has a big role in escalation of wars like Syria, Yemen and Iraq war.
Recent Oil price crisiss one of the implicit reason was this tension.
Millions of people have died all over Middle East.
Implications (India):
The Saudi-Iran tension, with the underpinning of a Sunni-Shia divide, is especially worrying for
India since the Gulf region has vital economic and strategic significance for the country.
Saudi Arabia hosts the maximum number of Indian expatriates and is a major employer of Indian
nationals.
India also enjoys robust security cooperation with Saudi Arabia, which has deported several
most wanted terrorists such as Abu Jundal, linked to the Mumbai attacks case.
Although such steps do not in any way diminish the strategic partnership between Saudi Arabia
and Pakistan, the growing security cooperation is of vital significance for India.

Iran is crucial for Indias energy security. India primarily imports oil from Iran. India will not
find it easy to court Iran as in the changed environment a more assertive Iran will drive hard
bargains as it will have a multiplicity of customers and partners to choose from.
But the row could also lead to some positive developments for India, which imports more than
three-fourths of its energy requirements, because oil prices, already near historic lows, could
head further south.
What India should do in this situation?
India has adopted a position of neutrality since it enjoys good relations with both countries.
India should also be willing to work in tandem with other Asian countries where their interests
converge.
India should develop contingency plans for potential fallout of conflicts in the region, like
devising a viable plan to ensure the safety and security of Indian diaspora and countering the
effects of falling remittances in case people choose to move back to India.
India should focus on strengthening its bilateral, political, and economic and security ties with
relatively stable countries within the region, diversifying its relations and moving beyond energy
trade.
India needs to play a more active role in the region to safeguard its interests.
Indias Role and challenges in SAARC
Context
India will host a start-up summit from SAARC nations later this year. Government of India is
planning to bring together the startups of SAARC for exchanging new ideas and promoting
interaction among them.
About SAARC (South Asian Association for Regional Corporation)
SAARC is an organization of eight countries located in the South Asia and it stands for the
South Asian Association for Regional Corporation
Initial members of the SAARC countries were India, Bangladesh, Pakistan, Bhutan, Neola,
Maldives and Sri Lanka. Later another country Afghanistan was awarded the full membership
The Secretariat of this organization is located in the Kathmandu which is capital of Nepal.
3% of the area of the world is represented by SAARC countries. It is around 1.7 billion of the
people and it is 21% of the world population.
Objective of the SAARC to develop economies, collective self reliance in the South Asian
countries and to step up the social and cultural development in South Asian countries.
SAARC was founded in 1985 and dedicated to economic, technological, social, and cultural
development emphasizing collective self-reliance.
There are 11 stated areas of cooperation - agriculture; education, culture, and sports; health,
population, and child welfare; the environment and meteorology; rural development (including
the SAARC Youth Volunteers Program); tourism; transport; science and technology;
communications; women in development; and the prevention of drug trafficking and drug abuse.
Regional Centers have been established in member countries in order to promote regional
cooperation. These centers are handled by Boards of representatives from all SAARC countries.
Why India should lead the SAARC
SAARC, as a regional forum, has great potential, but this potential of regional cooperation cannot
be realized without strong bilateral linkages.
Given the geographical, economic and strategic differences of the eight member countries,
meaningful cooperation can materialize only when there is mutual trust and willingness among
member countries to resolve and overcome bilateral differences and apprehensions for the
greater good of their own people.
India has a major responsibility in this respect on account of several factors.
The most important factor is that India is the only country, which shares borders with all the
SAARC countries, barring Maldives and Afghanistan
The implication of this geographical reality is that India has to facilitate the establishment of
strong economical linkages with the neighboring countries.
More importantly, India should take initiatives to solve the difficulties, which the partner
countries have been experiencing in trade with India on matters relating to border trade and
transit facilities.
Currently, India runs a huge $15 billion trade surplus with other SAARC countries, with exports
worth $17.5 billion and imports of just $2.5 billion.
The idea is to correct this skewed figure in a way so that Indian businesses can source more from
other SAARC countries and build better value chains.
Hurdles in its Effective Working
Overall Issues
SAARC has achieved very little in comparison to the other regional organizations.
In its 30 years of existence SAARC failed to hold 11 annual summits for political reasons, both at
the bilateral and internal levels. The last summit was held in Kathmandu in 2014 after a gap of
three years
The intra-regional trade of SAARC constitutes just 5% member countries trade. This figure when
considered relatively is insignificant when the volumes of trilateral trade between member
countries of NAFTA or ASEAN are taken into consideration.
While different regions of world have progressed into monetary union, SAARC has failed to
come up with a free trade agreement.
In the last summit, there were three connectivity agreements on road, rail and energy which were
to be endorsed by all the eight member countries. Out of these, only the one on energy could be
signed.

Issues related to India
Indias disputes and military rivalry with Pakistan is believed to be the cause of ineffectiveness of
SAARC in integrating South Asian countries.
If Indo-Pak relations improve, many SAARC nations could benefit from it by improved trade
relations and creation of better export markets.
Since India has an unbeatable economic, military strength and international influence compared
to all 6 members of SAARC, the disparity of power brings in the reluctance from smaller states to
work with India.
The other member countries have fear of dominance from India if they co-operate in order to
facilitate faster economic growth.
India has also heightened the fears of fears of South Asian nations by acting in a dominating and
arrogant way.
Its dispute with neighboring Bangladesh due to redirection of water flows impacting
Bangladeshs agricultural production has kept Bangladesh afraid of its powers.
Nepal is also fearful that India may take over its world trade because of its geographical
suitability.
The tension between India and Sri Lanka that prevailed for 4 years over Indian Military trying to
curb the revolution by the Liberation Tigers of Tamil E Elam and Indo-Pak Dispute over the
Kashmir valley and the resulting Trade violations is another issue of concern.
As a result of all these fears and disagreements, SAARC has failed to promote regional co-
operation and mutual trust amongst the South Asian countries.
Recent Initiative by India
India is planning to organize a meet of startups of the South Asian region for exchange of new
ideas and promoting interaction among them.
The event will act as a platform for exchanging ideas, which can be mutually beneficial and can
be worked out.
Startups has been asked to give ideas about the people who can be invited for the meet.
If the ministry would get feedback and suggestions in the next couple of months, by December
the meet can happen, in which SAARC country startups can come to India and share ideas.
This will assist an exchange of ideas between the two countries start-ups, so our entrepreneurs
can stay in touch with whats happening there and if there are some things their government has
done, that could be replicated
All about India-Nepal complicated relationship
Context
Last week Prime Minister Sher Bahadur Deuba was sworn in as the new Prime Minister of Nepal,
marking his fourth term as Prime Minister
For India, it is a major opportunity to restore goodwill
Background
Initiation of India Nepal Ties
The Union of India and the Republic of Nepal initiated their relationship with the 1950 Indo-
Nepal Treaty of Peace and Friendship
The treaty defined security relations between the two countries, and an agreement governing
both bilateral trade and trade transiting Indian territory
The 1950 treaty and letters exchanged between the then Indian government and Rana rulers of
Nepal stated that "neither government shall tolerate any threat to the security of the other by a
foreign aggressor".
It further obligated both sides "to inform each other of any serious friction or misunderstanding
with any neighboring state likely to cause any breach in the friendly relations subsisting between
the two governments."
The treaty also granted Nepalese, the same economic and educational opportunities as Indian
citizens in India, while accounting for preferential treatment to Indian citizens and businesses
compared to other nationalities in Nepal.
Nepalese and Indian nationals may move freely across the border without passports or visas and
may live and work in either country.
However, Indians aren't allowed to own land-properties or work in government institutions in
Nepal, while Nepalese nationals in India are allowed to work in Indian government institutions
(except in some states) and some civil services (the IFS, IAS, and IPS)
Stressed Relation with India
The Nepalese Citizenship Act of 1952 allowed Indians to immigrate to Nepal and acquire
Nepalese citizenship with easea source of huge resentment in Nepal
Following the 1962 Sino-Indian border war, India suspended its support to India-based Nepalese
opposition forces (opposing the takeover of the government by King Mahendra) which India had
been doing in violation of 1950's PFT, which clearly stated 'not to allow any country's soil to be
used against the other
In 1988, when the treaties were up for renewal, Nepal refused to accommodate India's wishes for
a single trade and transit treaty stating that 'it violates the principle of freedom to trade'
Thereafter, both India and Nepal took a hard-line position that led to a serious crisis in India
Nepal relations
The treaties expired on 23 March 1989, resulting in a virtual Indian economic blockade of Nepal
that lasted until late April 1990.

The 13-month-long economic blockade of Nepal ended in December 1991 when the two countries
signed new, separate trade and transit treaties and other economic agreements designed to
accord Nepal additional economic benefits.
Nepals Own Crisis
In 1947 when British forces withdraw from India, there was no one to protect Nepalese kingdom
and thus revolution was launched by anti king forces led by Nepali Congress (NC). Because of
this king had to draft constitution under settlement and elections were held.
After election National Congress (NC) form government but the power struggle continued
between the Prime Minister and the King. As a result in 1960s king assumed all power by
passing a new constitution and banned all political parties.
But in 1990 there was huge uprising by people which is known as First Jan Andolan. Under
settlement the king had drafted new constitution in which king remained head of state similar to
Indian President but the real power was with PM. Multiparty parliamentary system was accepted
and elections were held.
But the government was not able to upgrade the life of people. Corruption was rampant. Power
was held in the hands of elite people only. As a result ethnic division sharpened in an already
divided society.
These issued led to the emergence of Maoist element and they started armed struggle against
government. They took control over various areas in Nepal. Their demand was to abolish
monarchy and draft a new constitution.
As Maoist menace increased King dissolved the government and assumed all power to it citing
that government was not able to tackle Maoist effectively in 2005.
But because of people uprising king was forced to restore the government.
After restoration the parliament passed a law according to which the army will now take
command from PM and not King. It also declares Nepal a secular country.
Finally in 2006 Maoists sign a Comprehensive peace accord with Nepal Government, under
which Maoists will stop violence and join mainstream.
After this an interim constitution was made replacing 1990s constitution and according to this
Constituent assembly was elected which was to draft a new constitution.
Election was held under this but no party got absolute majority thus coalition government was
formed.
But for a very long time the constituent assembly was not able to deliver result because of
disagreement between various parties.
Finally on September 20, 2015 new constitution of Nepal came into force replacing the interim
constitution of 2007.
Under the new Constitution promulgated in 2015, seven provinces have been created and
significant decentralisation of powers has taken place.

Controversy over 2015 Constitution
The promulgation of the new constitution was immediately followed by virtual blockade of all
checkpoints at Nepal-India border.
Various Human Rights Activists and some ethnic groups in lowland Nepal have accused the
Constitution of being gender discriminatory especially in regards to citizenship provisions.
They alleged that the new constitution makes it difficult for woman to pass on the citizenship to
their children as compared to men.
Similarly, Madhesi and indigenous population say that the new constitution fails to address
demands of marginalized communities and support status-quo of the ruling groups.
They are still protesting mainly over the federal delineation of new states as proposed in the
constitution fearing existing demarcation could affect their political representation.
After the formation of constitution Khadga Prasad Sharma Oli was elected as Prime Minister by
the parliament of Nepal
Current Issue
Last week Prime Minister Sher Bahadur Deuba was sworn in as the new Prime Minister of Nepal,
marking his fourth term as Prime Minister
His elevation comes as part of the deal struck between Nepali Congress (NC) and the Maoist
party (CPN-Maoist Centre) last July under which Pushpa Kamal Dahal Prachanda (chairman of
the Communist Party of Nepal) became Prime Minister in August, with NC support on the
understanding that after nine months, during which his government would conduct the local
body elections, he would hand over charge and support NC leader Deubas claim to the post.
Mr. Deubas immediate challenge is to conclude the second phase of the local body elections
scheduled for June 28 in the four remaining provinces.
These provinces include the two Terai-based provinces and the far east and the far west
provinces)
Madhesis have a significant presence in the two Terai-based provinces. They had demanded that
unless the constitutional amendment addressing their concerns was passed, they would not
participate in the local body elections.
Prachandas Regime
Domestically, he tried to build bridges with the Madhesis and the Janjatis who had been
alienated by his predecessor K.P. Sharma Olis highhandedness, by promising them a
consultative process and a constitutional amendment that would address their concerns.
His government tabled a constitutional amendment proposal which goes a long way in
addressing the Madhesi reservations.
It has not been passed is because of opposition from Mr. Olis party, the Communist Party of
Nepal (UML), and IS FACING difficulty in mustering the two-thirds majority necessary.
Bilateral Ties in Prachandas Regime
Remarkably, Nepals Prime Minister K.P. Sharma Oli, during his visit to India from February 19-
24, 2016, signed seven agreements and memorandums of understanding (MoUs) to
comprehensively review bilateral relations
Conversely, just prior to the visit, Oli alleged that India has imposed an unofficial border
blockade. It would not be appropriate for me to visit India unless the situation returns to
normal
India heaved a sigh of relief after Pushpa Kamal Dahal aka Prachanda, Chairman of Communist
Party of Nepal-Maoist Centre (CPN-Maoist Centre) was elected as the new Prime Minister of
Nepal on August 3, 2016.
Externally, Mr. Prachanda set about repairing relations with India which had reached a low
during the tenure of Mr. Oli, who blamed India for stoking the Madhesi agitation and imposing
an economic blockade
In the Eminent Persons Group on Nepal-India Relations (EPG-NIR), Nepal presented facts on the
need to review the 1950s peace treaty citing it not in tune with time and impractical.
Further, the fourth Joint Commission meeting led by the Foreign Ministers of both countries held
in New Delhi had noted the automatic renewal of the India-Nepal Trade Treaty for another seven
years
In addition, Nepal and India have planned to build Integrated Check Posts (ICPs) on their
respective sides at ports of entry in Birgunj, Biratnagar, Bhairahwa and Nepalgunj.
To promote tourism, India and Nepal agreed to adopt the open skies policy in their respective
aviation sectors.
What Lies Ahead: after the Sworn in of Sher Bhahadur Deuba as the new Prime Minister
Mr. Olis party, the Communist Party of Nepal (UML), it is clear that the Deuba government
cannot muster the two-thirds majority needed.
Mr. Deuba has, however, committed that once the local body elections are concluded, he will
exert all possible efforts to get the constitutional amendment through.
Except for a small number, most Madhesi leaders who have strong roots in the Terai see the
political logic in participating in the local body elections.
The Backlog
Mr. Olis nine-month tenure which ended in July last year marked a low point in India-Nepal
relations
It increased ethnic polarisation within Nepal and blamed India for interfering in its internal
affairs, of imposing an economic blockade and supporting the Madhesi agitation.
Significantly, it eroded the significant goodwill that had been generated by Prime Minister
Narendra Modis historic visits to Nepal in 2014.
Miffed with India, Mr. Oli had signed an Agreement on Transit Trade which is now being
developed along with an examination of a possible rail link
Way Forward
With Mr. Prachanda withdrawing support from the Oli coalition and forming his coalition
government with NC support, it gave both Nepal and India an opportunity to rekindle its
bilateral ties
India needs to support Mr. Deubas efforts to conclude the local body elections followed by the
passage of the constitutional amendment, which will clear the way for the provincial and
parliamentary elections under the new Constitution.
This will go a long way in bringing political stability to Nepal which, during the last quarter
century has gone through a Maoist insurgency and transitioned from a monarchy to a republic.
Importantly, India needs to ensure speedy delivery of the generous pledges of over a billion
dollars committed during the last two years to make good on Mr. Modis neighbourhood first
policy.
Introduction to India-Israel relations
Context:
India and Israel are close to concluding a deal for Spike Anti-Tank Guided Missiles.
Details
The purchase of Spike missiles was approved by the Defence Acquisition Council (DAC) in
October 2014.
However, the negotiation had issues with cost and technology transfer which delayed the
purchase process.
Spike Anti-tank Missile

Israeli defence technology company RAFAEL manufactures the Spike family of anti-armour
weapons.
The systems are used by infantry soldiers, special rapid reaction forces, ground forces and
helicopter aircrew.
The Spike family includes: Spike LR, Spike SR, Spike ER and Spike MR
The weapons are lightweight fire-and-forget anti-tank missiles.
They use electro-optical and fiber-optic technologies

India-Israel Relation
Introduction
India and Israel share a common colonial legacy. Both the countries gained their independence from the
United Kingdom within months of each other.
Historical Background:
India initially opposed the creation of Israel.
India as a part of the Non-aligned movement, kept close relation with the Arab world and Soviet
Union. On the other hand, Israel linked its future to close ties with the United States and Western
Europe.
Another important reason except the ties with Arab world, which prohibited India from
recognizing Israel, was the position of its significant Muslim minority on Palestine-Israel issue.
India formally recognized Israel in 1950
After extending recognition to Israel, India had allowed Israel to maintain a consulate in Mumbai
(Bombay) to facilitate the voluntary immigration of thousands of Indian Jews to Israel.
By the 1960s, India and Israel were exchanging military aid.
The first sign of collaboration came with the Sino-Indian war in 1962, when Israel provided India
with military aid.
Israel also gave aid to India during her two wars with Pakistan in 1965 and 1971.
It was only in 1992 that India and Israel established full diplomatic relations.
Since then the bilateral relation between India and Israel has progressed significantly.
Economic Relations
As of 2016, the trade between India and Israel has a value of 4.16 billion USD (excluding defense).
In 2016, the balance of trade favored Israel with Israel exporting goods worth USD 2.4 billion as
opposed to Indias exports of USD 1.76 billion.
Though trade in diamonds constitute more than half of the bilateral trade, trade has diversified in
the recent years to include electronic machinery and high tech products; communications
systems; medical equipment etc.
Agriculture and Water technology

India and Israel has bilateral agreement for cooperation in agriculture.
The bilateral action plan for 2015-2018 is currently operational.
Bilateral projects are implemented through MASHAV (Center for International Cooperation of
Israels Ministry of Foreign Affairs) and CINADCO (Centre for International Agricultural
Development Cooperation of Israels Ministry of Agriculture and Rural Development).
India has benefited from Israeli expertise and technologies in horticulture mechanization,
protected cultivation, orchard and canopy management, nursery management, drip irrigation
and post-harvest management.

India and Israel had signed a MoU on Cooperation in Water Resource Management in 2016.
Investment
In addition to direct investments, FDI from Israel to India also flows through USA, Europe and
Singapore.
Israeli companies invest mainly in high-tech, chemicals and agriculture.
There have also been significant investments in water technologies, homeland security and real
estates.
Teva Pharmaceuticals, IDE, Netafim are among the leading Israeli companies which have notable
investments in India.
Defence Cooperation
The India- Israel defence relationship has been progressing steadily since the establishment of
their diplomatic relationship in 1992.
Israel is the third largest defence supplier after Russia and USA.
In 2016, contracts were signed with Israeli Aerospace Industries (IAI).
The two contracts were concerned with Indias purchase from Israel of two Phalcon/IL-76
Airborne Early Warning and Control Systems (AWACS) and 10 Heron TP UAV drones.
In 2017, Cabinet Committee on Security (CCS) approved deal to jointly develop a Medium Range
Surface to Air Missile (MR-SAM) system for the Army.
The Indian military carried out their first successful tests of the Israeli-made Surface-to-air
Python and Derby missile system (SPYDER) in May 2017.
Recently, there has been news that India and Israel are close to conclude a deal on Spike Anti-
tank Guided Missiles.
Cooperation in Science and Technology

India and Israel signed the agreement on Cooperation in S&T in 1993.
MoU on Industrial Research and Development Initiative was signed in 2005.
Under this agreement, a joint industrial R&D fund i4RD was set up to promote joint industrial
R&D and specific projects.
Conclusion
Historically, it had been difficult for India to maintain a parallel relationship with Arab world
and Israel.
India has always feared that her ties with Israel might antagonize the countrys significant
minority population.
However, post establishment of diplomatic relationships with Israel in 1992, Indo-Israeli ties have
progressed without alienating Arab and radicalizing the countrys Muslim population.
Today India maintains close relationships with both Israel and Arab nations.

Due to its close ties with both the countries, India has the potential to expand her role in Middle
East Peace process and thus it is suggested that India should play an active role in peace process
in the Middle East.
India and Africa in association with African Development Bank
Context
The recent annual meeting of African Development Bank (AfDB) from May 22 nd to 26th, 2017, at
Gandhinagar, Gujarat, witnessed a powerful Indo-African political and business relation. The
gathering confirmed Africas growing interest in connecting more extensively with India Inc.
Asia Africa Growth Corridor
The recent talk of the town was the release by Mr. Modi of a vision document on the Asia Africa
Growth Corridor (AAGC). This study was jointly produced by three research institutions of
India and Japan Research band Information System for Developing Countries (RIS), New
Delhi; the Economic Research Institute for ASEAN and East Asia (ERIA), Jakarta, and the
Institute of Developing Economies Japan External Trade Organization (IDE-JETRO), Japan in
consultation with other Asian and African great minds.
AAGCs fundamental goal is sustainable and innovative development, and will be exposed to
four pillars:
Development and cooperation projects;
Quality infrastructure and institutional connectivity;
Enhancing capacities and skills; and
People-to- people partnership.
The AAGC will accord priority to development projects in health and pharmaceuticals,
agriculture and agro-processing, disaster management, and skill enhancement.
It will have special focus on the following geographies: Africa, India and South Asia, Southeast
Asia, East Asia and Oceania.
How this project would be different from China?
In comparison, China concentrates on infrastructure and cheque-book diplomacy, whereas India

promotes a broader spectrum of cooperation projects and programs focused on the development
of Africas human resources.
China goes solo while India makes an attempt to align with other nations in order to forward its
helping hand to Africa.
It should be reckoned that India and Japan do not have the luxury of time in view of Chinas
rapidly expanding footprint in Africa.

Chinas substantial success needs to be matched by sustained India-Japan cooperation in Africa.
The African Development Bank (AfDB)

ADB is a multilateral development finance institution.
It provides finance to African governments and private companies investing in the Regional
Member Countries (RMC).
It was founded in 1948.
Its fundamental duty is to fight poverty and improve the standard of living of the continent by
investing in projects and programs which uplifts the socio-economic conditions of the common
mass.
The Headquarter is located in in Abidjan, Cte dIvoire. But it moved to Tunis, Tunisia in 2003,
before returning in September 2014.
The AfDB is controlled by a Board of Executive Directors, made up of representatives of its
member countries.
Dr. Akinwumi Ayodeji Adesina is the 8th elected President of the African Development Bank
Group, on September 1, 2015.
Member governments are officially represented at the AfDB by their Minister of Finance,
Planning or Cooperation who sits on the AfDB Board of Governors.
It is to be noted that Cabo Verde and Libya are the only two countries are without the
beneficiary of AfDB or ADF.
Points to be noted
It is to be noted that the meetings of AfDB outside Africa were held in Valencia, Spain in 2001,
Shanghai, China in 2007, Lisbon, Portugal in 2011 and Ganghinagar, Gujarat, 2017. The next
meeting is scheduled to be held in Busan, South Korea in 2008.
India as a non-regional member got engaged with African Development Fund in 1982 and
eventually became a member of the bank in 1983.
Chinas One Belt One Road: The OBOR initiative is a Chinese economic and strategic agenda by
which the two ends of Eurasia, Africa and Oceania are being Tied into a single thread (two
routes-one overland and one maritime).
Qatar Crisis and implications on India
Context
Amid the ongoing Qatar crisis, Doha has recently implied that although they are looking
forward to work together with other Gulf nations, they are reluctant to discuss any measures that
impinge the sovereignty of Qatar.
Key Highlights
Saudi Arabia, Egypt, Bahrain and the United Arab Emirates have handed over a list of 13-point
demand list to the Qatari regime
The list reportedly demands Qatar to conclude all trade ties with Iran, end military cooperation
with Turkey and shut down the Al Jazeera news network.
Qatar is however, reluctant to comply with the conditions made by GCC and has remarked the
demands as non-negotiable.
Current Issue
Four Arab countries out of which three are also the members of Gulf Cooperation Council
Saudi Arabia, the United Arab Emirates and Bahrain along with Egypt severed diplomatic ties
with Qatar as well as suspended land, sea, air travel routes to and from the country.
The Persian Gulf and its coastal areas is the worlds largest single provider of crude oil and India
might get affected by this rift that has aroused among the Arab States of the Persian Gulf.
The growing diplomatic rift is raising concerns about the global access to Qatars LNG.
Apart from that around six million Indians live and work in West Asia and in Qatar in particular,
there are 6,00,000 Indian workers.
The Saudi coalition has also decided not to allow Qatar Airways flight to their countries. This will
affect Indian passengers who use Doha as the nexus to get to other destinations of the Gulf.

Reason
A longstanding war of words had been taking place between Saudi Arabia and Qatar over the
issue of Qatar and its state sponsored terrorism.
Tensions between Qatar and its neighboring countries soared high when state-run news agency
of Qatar published an article in which the Qatars ruling emir, Sheikh Taminbin Hamad Al
Thaniwas quoted praising Israel and Iran Saudi Arabs biggest rivals in the region.
Qatar disowned the article and called it fake news that was manufactured by hackers, which
Saudi and its allies were definitely not convinced of.
A few days later Sheikh Tamimexaggerated the ongoing tension when he called Iranian President
Hassan Rouhani to congratulate him on his re-election. This was a clear act of Qatar going against
Saudis strong hostile stance on Iran.
In light of this long standing feud and the recent activities on part of Qatar, Saudi Arab accused
Qatar of supporting radical Islamist groups like the Muslim Brotherhood and the ISIS and hence
is severing diplomatic ties with the country and also cutting links to the country by land, sea and
air.
Since then Libya, Yemen and Maldives have also joined the diplomatic boycott
Effect on India
In the backdrop of this diplomatic crisis, with regard to India, the first point of concern is this
the country meets half of its energy import needs from the Persian Gulf and Qatar, small in size,
is the worlds top seller of liquefied natural gas (LNG).
Qatars dispute with Arab states has put LNG market on edge.
The government and energy officials of India have stated that the diplomatic cut-up of Qatar by
the seven West Asian countries will create no impact on Indian economy and political tie-ups.
There might not be an immediate effect, but if the rift continues and intensifies and is not
checked, there would be negative repercussions for India too
Energy imports might not get affected until Gulf countries follow through with sanctions but in
case of countries like Yemen and Libya, any tensions in these regions will have a consequential
impact on thousands of Indian workers.
Qatar will be hosting 2022 FIFA World Cup and many Indian workers are working there in terms
of the project related to the World Cup. Indian company L&T have won contracts to construct
stadium there. Around 60000 Indians are working there.
Qatar is Indias 19th biggest trading partner with trade value of $9 billion. At the same it should
be noted that its trade ties with the UAE and Saudi Arabia is even higher and stands at the third
and fourth rank respectively and trade worth of $49 billion and $26 billion, as per 2015
Commerce Ministry figures.

Given the risky and volatile conditions of the region, India has always tried to maintain a
balanced relationship and stayed away out of Shia-Sunni, Arab-Persian or Wahabi-Salafi
divide.
Another effect that might be seen is the rise in airfare. Flying restriction on Qatar will lead to
sharp rise of airfares from Doha to India as more Indians are expected to return back home.
Qatar Airways has suspended all its flight to the four Arab countries and currently its operations
to India and elsewhere are expected to be normal.
But if the situation aggravates then there would arise a threat of thousands of cabin crew and
hundreds of pilots from India working in that airline getting adversely affected.
Conclusion
Whenever there is an international tussle like that every other related country stands to lose or gain
something, same goes with India. India should always consider the national goals first before supporting
or opposing any country or preferably should take a neutral stance so that there is always a chance of
continuing the relationship with every benefitting country.
India and Spains call for Zero Tolerance to Terrorism
Context:
Prime Minister Narendra Modi visited Spain as a part of his four-nation tour aimed at boosting
bilateral economic engagement with them and inviting more investment for India's
transformation.
India and Spain stressed that there should be zero tolerance to terrorism.
They called on the international community to end selective or partial approaches in
combating the menace which posed the gravest threat to international peace and stability.
Background:
Modi's visit to Spain will be first visit by an Indian prime minister since 1988.
Modi held discussions with his Spanish counterpart Mariano Rajoy on ways to deepen bilateral
engagement, including in the high-tech sector.
The visit is intended towards improving economic and cultural relations with Spain.
Spain is India's seventh largest trading partner in the European Union.
Recent agreements
Following are the seven agreements and MoUs that are signed between India and Spain during recent
visit of PM Modi:
1. Agreement for Transfer of Sentence Persons

2. Agreement of waiving of visas for diplomatic passport holders
3. MoU on Cooperation in Organ Transplantation
4. MoU on Cooperation in Cyber Security
5. MoU on Cooperation in Renewable Energy
6. MoU on Technical Cooperation in Civil Aviation Agreement on visa waiver for holders of diplomatic
passports
7. MoU between Foreign Service Institute and Diplomatic Academy of Spain
India & Spain on Terrorism:
India and Spain discussed Mediterranean issues of mutual interest, including combating
terrorism, threats to navigation security and trade.
Both the nations underlined the ongoing conflicts in North Africa and the Middle East, posing
major security threats in Europe and Asia, such as terrorism, threats to security of navigation in
the Mediterranean and the Indian Ocean and illegal migration.
Both the countries noted that the countries of the Maghreb region and southern and eastern
shores of the Mediterranean are crucial to Europe's security and stability.
They also recognized the need for promoting regional integration and constructive dialogue
among the countries of the Mediterranean by supporting regional cooperation and dialogue
initiatives.
India-Bangladesh Relations
Context
With an attempt to improve bilateral trade, Bangladesh had approved land for establishment of
SEZs exclusively for Indian companies.
The SEZs are supposed to be located near Mongla Port which is in close proximity to the
Sundarbans, the other at Behrammara, very close to Murshidabad and the third one at Mirsarai.
However, recently the plan had hit a major setback owing to lack of infrastructure and
uninterrupted power supply.
Background
The South Asian democracies, India and Bangladesh have the longest common border of over
4,000 km with each other.
India was the first country to recognize Bangladesh as a separate and independent state and
established diplomatic relations with the country immediately after its independence in
December 1971.
India and Bangladesh not only have economic and political ties but a strong socio-cultural
connection.
However, India and Bangladesh bilateral relationship is very complex.
What are the Major Issues between India and Bangladesh?
Border Issues
Illegal migration: Illegal migration from Bangladesh has always been a major issue. The Indian
state of Assam has been facing the problem of illegal immigration from Bangladesh for decades.
In view of this, the Supreme Court had lately asked the centre complete the fencing of the India-
Bangladesh border soon to check illegal immigration from Bangladesh into Assam.
Smuggling: The Indo- Bangladesh border is being used as a route for smuggling livestock, food
items, medicines and drugs from India to Bangladesh.
Terrorist infiltration has been a major concern for the last few years. ecently a report sent by the
Bangladesh Government to Indias Ministry of Home Affairs noted that approximately 2,000
operatives of the Harkat ul Jihad al Islami Bangladesh (HUJI-B) and Jamaatul Mujahideen
Bangladesh (JMB) had entered India through the porous India-Bangladesh border.
Dumping of fake currency notes has a come up as major problem of late. The dumping gravely
affects the Indian economy.
Teesta waters Issue
Sharing the waters of Teesta River is one of the grave issues between India and Bangladesh
The issue remains big problem due to continuous protest by the West Bengal government.

While the Central government did put the river Teesta on the bilateral discussion table, the
federal political dynamics has prevented the Centre from resolving the issue of water-sharing
overruling Bengals position.
Mamta Banerjee led West Bengal government is of the view that Bangladesh having its largest
irrigation project, Teesta Barrage running does not deserve more water.
The treaty is particularly important for the Hasina government (which has often been accused by
critics as leaning towards India) to show that there has been genuine progress in bilateral
relations.
The Teesta waters issue apart, the Bangladesh side is also very keen about a Ganga Barrage and
talks in this regard are expected during the summit.
India Bangladesh areas of cooperation
Trade and Investment
At present, the volume of bilateral trade between India and Bangladesh is about $6.6 billion.
Blue Economy Programme: An initiative has been taken up by the Indian and Bangladesh governments
to develop blue economy partnerships with the littoral states of the Indian Ocean Region to harness
maritime resources and ensure peace.
Establishment of SEZs:
Bangladesh government had proposed establishment of SEZs exclusively for India at Mongla
Port which is in close proximity to the Sundarbans, the other at Behrammara, very close to
Murshidabad and the third one at Mirsarai.
Till now Bangladesh Economic Zone Authority has given land to two SEZs.
Indian investments via Economic Zones are supposed to redress Bangladeshs huge trade
deficit.
However, the deal has recently faced a setback.
Representatives of Indian Inc have cited inadequate infrastructure and lack of uninterrupted
electricity as reasons behind establishments of SEZs in Bangladesh to be not commercially
viable.
Connectivity
Memoranda of Understanding (MoU) has been signed on the development of Ashuganj-Zakiganj

stretch of Kushiyara river and Sirajganj-Daikhawa stretch of the Jamuna river
This will improve connectivity between the two countries and will help reduce logistics cost of
cargo movement to northeast India and also reduce congestion through the Siliguris Chickens
Neck corridor.

In 2016 when Chinese President Xi Jinping visited Bangladesh, and Bangladesh agreed to join the
One Belt, One Road Project (OBOR).
China is already investing in a number of infrastructure projects in the country including the
deep sea port at Chittagong. It is likely that these projects will now be subsumed under the
OBOR project.
Energy Cooperation
Energy cooperation between the two sides has also shown a lot of positivity with Indian state Tripura
supplying a total of 160 MW of power to Bangladesh in addition to the 500 MW the country is receiving
from West Bengal since 2013.
Defence Cooperation
The new line of credit, which allows Bangladesh to buy around $500 million worth of Indian defence
equipment, has been planned to chip away at this dependence on China.
In April 2017, four defence related agreements were signed which included a defence framework pact
and two MoUs between defence colleges.
Conclusion
India and Bangladesh are intricately interwoven by common history and culture. However, the bilateral
relationship between these two South Asian countries has always been very complex. Given Indias better
economic conditions vis--vis Bangladeshs this imperative for India lending a strong support system to
Bangladesh in order to build an efficient and strong infrastructural framework.
Reforming International Investment Agreement (IIA) and Investor-State Dispute

Settlement (ISDS)
Indias Take on ISDS
Earlier this year some of the countries led by India, Japan, Argentina and South Africa rejected an
informal proposal brought forward by the EU and Canada to form a multilateral investments
pact at the World Trade Organization (WTO) that will have an in-built an Investor State Dispute
Settlement system.

The EU and Canada got into an investment agreement that has lead to a controversial decision
making on part of the ISDS mechanism, which allows companies/corporate to drag sovereign
governments to international arbitration
Next they wanted to take this a notch higher i.e. they want it to be the norm for multilateral
agreements which was absolutely opposed by the aforementioned countries.
Current Issue
The government observes that the system of International Investment Agreements (IIA)
including the Investor-State Dispute Settlement (ISDS) mechanism needs to be urgently
reviewed and reformed
This is because the IIA system currently has a pro-investor bias with an aim to protect only
capital and not labor, indigenous people, migrants, or consumers, all of whom have linkages with
investment.
Saurabh Garg, the Joint Secretary (Investments) in the Finance Ministrys Department of
Economic Affairs said Despite the obvious costs of the current ISDS mechanism, there is little
empirical evidence establishing a link between the existence of BITs and FDI flows. This is one
area that requires substantial work to reinforce countries trust in the legitimacy of IIAs.
While observing that ISDS lies at the core of IIAs, he said: The current ISDS mechanism, which
is ad hoc, unpredictable and often arbitrary, needs urgent review The current ISDS regime can
be quite costly for host countries.
The strong remark was made on the basis of the fact that as per a UN Conference on Trade and
Development report, as of end-2016, some 767 arbitration cases were publicly known to have
been filed against host countries under IIAs.
Possible Wayout
There should be a greater focus on other alternative modes of dispute settlement, including
domestic remedies or compulsory negotiation and mediation, wherever possible.
Direct access to international mechanisms should be allowed only when there are no local
remedies. Going to ISDS should be the last resort and it should refrain from being a benevolent
settlement system and should take up disputes that are genuine and grave in nature which
cannot be solved at the local level.
What is India doing about it?
On July 6, 2016, the Dutch government announced that it has received an official notification
from Indian authorities seeking termination of the bilateral investment protection treaty (BIT)
signed between the Netherlands and India in 1995.

India has recently served similar termination notices to as many as 57 countries (including the
UK, France, Germany, Spain and Sweden) with which the initial duration of the treaty has either
expired or will expire soon.
For the remaining 25 countries with whom the initial duration of the treaty will expire from July
2017 onward, India has requested them to sign joint interpretative statements to clarify
ambiguities in treaty texts so as to avoid expansive interpretations by arbitral tribunals.
A comprehensive joint interpretative statement text has been prepared by the Indian government
clarifying the meaning and intention of key treaty provisions.
This bold policy initiative is essentially an outcome of Indias new model BIT which was released
in December 2015.
The new model BIT is a major departure from earlier models (1993 and 2003) as it provides
protection to foreign investors in limited circumstances. Under the new Model, controversial
clauses such as most favored nation have been completely dropped while the scope of national
treatment and fair and equitable treatment clauses has been considerably narrowed down.
Although investor-state dispute settlement (ISDS) mechanism which allows investors to initiate
international arbitration against states and thereby bypass domestic courts entirely has been
retained but access to ISDS mechanism has been made conditional on the exhaustion of local
remedies.
Challenges for India
The next big task for India is to negotiate its future treaties as per the new model text. India is
currently negotiating standalone BIT with the US and Canada. Besides an investment chapter is
part of the proposed free trade agreement (FTA) with the EU.
India is no longer a purely capital-importing nation.
Indian companies are increasingly looking at expanding their global footprint by investing
abroad. Indian investors are increasingly seeking investment protection tools in those
jurisdictions that are generally perceived to have greater potential risks and uncertainties related
to regulatory framework and political climate.
So the government will have to strike a fine balance between the competing claims of this nature.
Further, it is not yet clear what would be the Indian governments approach towards investment
chapters of the FTAs. The termination of investment chapters of the FTAs is filled up with
complexities and legal hurdles.

Social Issues
Quota in higher education institutes
What is the Issue?
Noting that the Allahabad High Court overstepped its jurisdiction, the Supreme Court has set aside the
High Courts decision to remove the 50% institutional quota for admission to postgraduate medical
courses in Aligarh Muslim University (AMU) and Banaras Hindu University (BHU).
Judgment
The judgment said: The High Court did not take into consideration the fact that the State [Uttar
Pradesh] had no power to control admission to these universities. Therefore, we are clearly of the
view that the High Court overstepped its jurisdiction and the order of the High Court is
erroneous and is liable to be set aside.
The court said that the issue of the 50% reservation of seats was not before the High Court when
it passed order.
The Bench also found that AMU, BHU, Medical Council of India (MCI) and the Union of India
were also not parties before the High Court.
The court held that in Central universities 100% admissions to MBBS course are based on all-
India examination.
There is no State quota for seats in Central universities like the AMU and the BHU or other
Central institutions like the All India Institute of Medical Sciences (AIIMS).
Another observation: These seats have to be filled up on the basis of merit and institutional
preference could be given to the extent permissible, i.e., 50% , as has been held by a catena of
decisions including the Constitution Bench judgment of this court in the case of Saurabh
Chaudri .
Current status of Reservation in higher education in India
50% of the seats are reserved currently.

The Supreme Court had earlier ruled that the total percentage of reservation should not exceed
50% of the seats.
Criticisms of reservation policy
Attempts are being made to create a vote bank by satisfying a particular chunk of Indian voters.
Attempts are also made to include more and more castes in the list of OBC beneficiaries.
The Reservation Policy actually has created a new class of vested interest in the society. They
have earned permanently the benefit of the reservation policy.
The policy of reservation is contrary to the principle of equality. Equality presupposes equal
treatment to all and equal protection of all people.
The policy of reservation has given rise to the politics of casteism in Indian political system.
The over consciousness of caste identity is obstructing the process of national integration.
Castes have been used as instruments for maintaining the vote banks of different political parties.
Justification of reservation
The Preamble to the Constitution of India aims to secure Justice-Social, Economic and Political
among all its citizens. But so long as the social and economic inequalities continue, this objective
cannot be secured.
The Scheduled Castes, Scheduled Tribes and other Backward Castes are victims of inequalities.
So it is necessary to provide them special care and protections through reservations until they
come forward at par with others.
The weaker sections of the society, like STs, SCs and Dalits have been the victims of exploitation
for many centuries. Their backwardness, underdevelopment and deprivation can be removed
through the compensatory provisions of reservation.
Empowerment of the weaker sections in the society will be possible through reservation. They
can play their role in the political process of the system with confidence. In India, reservation has
become a means of empowerment.
The Constitution gives directives to the State to take special care for protecting the interests of the
weaker sections of the society. The best way of protecting their interest is to provide them some
facilities in the way of reservations.
Women in Indian Agriculture
Context
The latest census figures list only 32.8 per cent women formally as primary workers in the
agricultural sector, in contrast to 81.1 per cent men.
But the undeniable fact remains that Indias agricultural industry, which employs 80 to 100
million women and the sector cannot survive without their labor.
Current Status of Women in Indian Agriculture

Even now, agriculture supports 58% of the population, as against about 75% at the time of
independence
Women make up about 33% of cultivators and about 47% percent of agricultural laborers.
In rural India, the percentage of women who depend on agriculture for their livelihood is as high
as 84%.
These statistics do not account for work in livestock, fisheries and various other ancillary forms of
food production in the country.
Women's participation rate in the agricultural sectors is about 47% in tea plantations, 46.84% in
cotton cultivation, 45.43% growing oil seeds and 39.13% in vegetable production.
While these crops require labor-intensive work, the work is considered quite unskilled
Women are heavily involved in seed selection, sowing, planting, harvesting and other aspects of
farm management
Maintaining the ancillary branches in this sector, like animal husbandry, fisheries and vegetable
cultivation, depends almost solely on women.
Current Issue
Men get a lot of share in governmental publicity material and within the banking sectors but
millions of women farmers have no spokesperson from their ranks.
Women remained outside the formal definition of worker in the census reports
The primary reason for this is that they are usually not listed as primary earners and owners of
land assets within their families

There exist an embedded gender discrimination in the Indian farming sector.
Problems faced by Women Farmers
In India, the typical work of the female agricultural laborer or cultivator is limited to less skilled
jobs, such as sowing, transplanting, weeding and harvesting, that often fit well within the
framework of domestic life and child-rearing
In all agricultural activities there is an average gender wage disparity, with women earning only
70 percent of men's wage.
Additionally many women also participate in agricultural work as unpaid subsistence labor
Unlike male farmers and cultivators, their female counterparts remained doubly burdened
during their peak productive period with their reproductive role seen as fundamental to their
gender while the duties it entailed were socially created.
So even as women labored in fields, they continued to have and rear children almost single-
handedly.
Thus, in addition to rigorous agricultural work that is undervalued and underpaid, women are
also responsible for the well-being of the household.
It has been observed that an Indian female agriculture worker spends around 25 hours doing in a
week doing household chores and 5 hours in caring and community work.
Besides the 30 hours of unpaid work, women spend the same amount of time as men carrying
out agricultural work.
Daughters typically assist their daughters in doing household chores. Girls do significantly more
housework than boys, which compromises their schooling.
Women seldom enjoy property ownership rights directly in their names. They have little control
over decisions made in reference to land.
For women, access to credit is difficult, since they lack many of the prerequisites for lending such
as assets or ownership of property
Causes
The Indian agriculture sector is typically characterized by the presence of gender discrimination,
where women contribute extensively to the agricultural with no credits and no or very les
remuneration.
The condition of the women farmers can be improved only if the root cause of this existing
gender division is identified and taken care of.
Patriarchy is the root cause of the hurdles faced by not only women farmers but women in
general
Extreme poverty and lack of education are also some of the reasons for womens low status in
society.

Thus, without having good education women are found lacking in present days demanding job
skills
Women are not able to resolve the conflict between new economic and old domestic roles. In both
rural and urban India, women spend a large proportion of time on unpaid home sustaining
work.
Rights and obligations within a house hold are not distributed evenly. Male ownership of assets
and conventional division of labor reduce incentives for women to undertake new activities.
In addition child bearing has clear implications for labor force participation by women. Time
spent in bearing and rearing of children often results in de-skilling, termination of long term
labor contacts
Last but not the least, most of the women are unaware of their basic rights and capabilities and
are not aware of their socio-economic conditions, owing to which they are not being able to take
decisions for themselves
Suggestions
Providing Agricultural Training

Providing Basic Education
Awareness in the Society
Awareness with regard to Rights and Provisions
Equal Job Opportunities
Ensuring Equal Pay Mechanism
Easy Credit Facilities
Maternity Support Programs
Women in the combat roles
Indian Army is all set to open up combat positions for women. India will be among very few countries to
do so.
Initially women will be recruited for positions in military police.
Until now, women were allowed in a number of select areas including in medical, legal, educational,
signals and engineering wings of the Army but combat roles are off limits for them.

Only countries such as Germany, Australia, Canada, the U.S., Britain, Denmark, Finland, France,
Norway, Sweden and Israel have allowed women in combat roles.
The roles of military police include:-
Policing the cantonments and Army establishments,

Prevent breach of rules and regulations by soldiers,
Maintaining movement of soldiers as well as logistics during peace and war,
Handling prisoners of war and extending aid to the civil police whenever required.
WHOs new initiative on Antibiotics
Context
The World Health Organisation (WHO) has updated its Essential Medicines List with advice on which
antibiotics to prescribe in which circumstances.
What are the changes?
As part of work to halt increasing rates of antimicrobial resistance, WHO has grouped antibiotics into
three groups
Those that can be widely used ('Access): Meanwhile, drugs on the 'Access' list should be
'available at all times as treatments for a wide range of common infections' such as pneumonia,
including for example amoxicillin.
Those that should be used with caution ('Watch'): On the 'Watch' list are 'antibiotics that are
recommended as first- or second-choice treatments for a small number of infections'. This
includes for example ciprofloxacin
And those only to use in life-threatening circumstances ('Reserve): Drugs on the Reserve list
includes antibiotics such as colistin and some cephalosporins that 'should be considered last-
resort options
Aims of initiative
The change aims to ensure that antibiotics are available when needed, and that the right
antibiotics are prescribed for the right infections.
It should enhance treatment outcomes, reduce the development of drug-resistant bacteria, and
preserve the effectiveness of "last resort" antibiotics that are needed when all others fail.
These changes support WHO's Global action plan on antimicrobial resistance, which aims to fight the
development of drug resistance by ensuring the best use of antibiotics.
Need for initiative

Antibiotics have increased the prevalence of resistance in Bacteria.
The recent study of The Indian Council of Medical Research found out that the resistance to
antibiotics was found in 50% of patients.
The rise in antibiotic resistance stems from how we are using and misusing these medicines
A large number of infants were dying due to infections that did not respond to treatment.
Drug-resistant microbes pose a serious threat today to treat, among other things, pneumonia,
infection of blood and surgical sites, and meningitis.
India has severe uneven hemlines in the delivery of health care: rural vs. urban and poor vs.
affluent patients, common vs. life threatening diseases, to name a few.
As per the statistics of Centers for Disease Control at least 23,000 people in the United States die
each year due to infections that are resistant to antibiotic treatments.
The new WHO list should help health system planners and prescribers ensure people who need
antibiotics have access to them, and ensure they get the right one, so that the problem of
resistance doesnt get worse
Factors governing the usage
Within the realm of medical practice, the prescription of antibiotics is often guided by such
factors as patient demand, competing alternative treatment systems, and even financial
incentives which make the usage and misuse vulnerable to a dangerous extend.
There are also environmental factors, including the widespread use of antibiotics on farm animals
that require more research to determine their role in building resistance.
Significance of the initiative
Prior to everything, the best way to educate the public about medicine is to properly educate
physicians first.
The fresh list should help the health system, planners and prescribers ensure that people who
need antibiotics have access to them.
It will also ensure that they get the right antibiotic which will eventually solve the problem of
resistance.
With strict filter of the antibiotics, under which some medicines are reserved for the most
resistant microbes, the WHO list can stop their misuse as broad-spectrum treatments.
With access to speedy and accurate diagnosis, this new beginning can sensitize the medical
community to its responsibility to prevent antimicrobial resistance
It will also take enlightened policies on housing, sanitation and hygiene education to prevent
new infections and the spread of disease-causing organisms.
It will take good public health policies, sufficient funding and determined leadership to
overcome antibiotic resistance.

The new categorization will further guide countries in ensuring access to appropriate
antibacterial agents and support antimicrobial stewardship effort.
What is an antibiotic?
An antibiotic is a substance used to kill bacteria.

Say for instance, our guts are full of bacteria. Some are good, and some are bad. Once someone
takes an antibiotic, it clears the gut of most bacteria, including the good kind. But some resistant
bacteria remain and develop resistance to the antibiotic over time.
Antibiotics kill bacteria, not viruses, which means an antibiotic prescription for a cold or the flu
isnt going to do any good.
Antibiotic resistance
Antibiotic resistance is the ability of bacteria to resist the effects of an antibiotic.
Antibiotic resistance occurs when bacteria change in a way that reduces the effectiveness of
drugs, chemicals, or other agents designed to cure or prevent infections.
The bacteria survive and continue to multiply, causing more harm.
Antibiotic resistance leads to higher medical costs, prolonged hospital stays, and increased
mortality.
Antibiotic resistance is one of the biggest threats to global health, food security, and development
today.
Antibiotic resistance can affect anyone, of any age, in any country.
Antibiotic resistance occurs naturally, but misuse of antibiotics in humans and animals is
accelerating the process.
A growing number of infections such as pneumonia, tuberculosis, and gonorrhoea are
becoming harder to treat as the antibiotics used to treat them become less effective.
Antibiotic resistance leads to longer hospital stays, higher medical costs and increased
mortality.
Issue of farmers suicide in India
Present issue
Farmers in Maharashtra have gone for strike recently.

Demand of the farmers includes:
Full waiver of farm loans,
Hikes in the minimum support price for agricultural produce and
Writing off of pending electricity bills.
As the strike nears the end of its first week, prices of essential goods such as milk, fruits and
vegetables have risen steeply.
This hike of price causes distress to consumers which in turn shake the economic pillars of the
country.
The Reserve Bank of India has warned of inflationary risks from fiscal slippages caused by large
farm loan waivers.
Small and marginal farmers in India
Of the total households in India, Small and marginal farmers constitute 80 per cent of total farm
households, 50 per cent of rural households and 36 per cent of total households in India.
Farm output contributes about 15% to the Indias economy.
From an eagle-eye point of view, nobody wants to be a farmer anymore, for it is unremunerative
and relatively hard physical work.
Also the children of farmers aspire for a well-paying urban job.
But the economy is not producing enough jobs to accommodate the migrants from farmer
families. This leads to frustration, despair, unrest, hence, the riots.
State of farmers distress
Farmers suicides, while numbering 12,600, have declined, from a peak level of 18,241 in 2004,
and 17,368 in 2009.
But according to the most recent NCRB data, farmer suicides in the country rose by 42% between
2014 and 2015.
With 3,030 cases, Maharashtra recorded the highest number of farmer suicides in the country
(37.8%).
Telangana was second, with 1,358 cases, and Karnataka third with 1,197.
Six states of Maharashtra, Telangana, Andhra Pradesh, Madhya Pradesh, Chhattisgarh and
Karnataka accounted for 94.1% of total farmer suicides.
Causes behind farmers problem
Increased production
Steep fall in the prices of agricultural goods due to bumper production this year
Production of Tur pulses, for instance, increased five-fold from last year to over 20 lakh tonnes in
2016-17.
Though procurement of crops at MSP supposed to provide remunerative price to the government
but except rice and wheat, the MSP has been low for most crops.
It leads to distressed farmers selling their crops at much lower price.
Cost of inputs and credit facilities
Costs of inputs to the agriculture have risen to an unsustainable level.

Cost of inputs cannot be recovered in the years when the rainfall is less than normal or
insufficient for the crop to grow.
Small and marginal farmers also do not have access to institutional credit.
For example: Maharashtra has on paper 21,185 village-level PACS that are supposed to meet the
requirements of its 1.36 crore-odd farmers. But the truth is that about 34 per cent of farmers in the state do
not even have access to institutional crop credit,
Most of these farmers take loans from the local moneylenders on high interest rates.
Food prices
The table documents the course of prices of six food items. Two dominant conclusions are:
Producer prices (whether minimum support prices of the government of India or wholesale
prices) have risen by about 5 to 10 per cent over the last year.
At the same time, consumer prices of selected and volatile food items (fruits, vegetables and
pulses) have stayed broadly constant over the last three years.
The problem is price discovery. In fact, there is deflation in pulse and vegetable prices.
The RBI has acknowledged that already falling vegetable prices dipped more sharply because of
fire sales following demonetization, and pulses are cheaper because of high output on top of
imports.
The sharp fall in food prices has kept consumer price inflation tepid, rural distress has been
aggravated.
Commerce Secretary, Rita Teaotia asked organic goods exporters to certify their products as it
would help boost competitiveness in the global markets.
Presence of middlemen
Due to lack of storage and transportation facilities, farmers cannot sell their produce directly in
the markets, hence there is always need of middle men/big traders.
These traders only provide a fraction of the actual market price to the farmers, rest they keep for
themselves.
Loan waiver
Finance Minister, Arun Jaitley, on Monday, reminded that the States going in for farm loan
waivers will have to generate funds from their own resources, in context to the farmers
agitations.
The issue of loan waiver has cropped up in several States.
The Centre has its policies for the agriculture sector, under which there is a provision for interest
subvention and other support.
Other factors

Fragmentation of land holdings and a fall in public investments in rural areas, especially in
irrigation facilities.
It has been confirmed by many reports that majority of the subsidies by government is going to
the medium or large farmers.
In the eyes of the government, only those in whose name the land is registered are seen as
farmers. Landless laborers, working for living on farm escape the government consideration.
Demonetization came in like a hurricane, an all-round destructive force. The farmers need cash to
transact sales, but there is no cash in the system and loss in countrys national income.
Reports suggest there is a lot of looting, and stealing of liquor.
Rural lending growth collapsed to 2.5% in the second half of 2016-17 and even shrank in several
States, including Punjab and Maharashtra.
Loan waiver
A loan waiver is the waiving of the real or potential liability of the person or party who has taken
out a loan through the voluntary action of the person or party who has made the loan.
Loan waivers might help the government buy peace with farmers in the short run, but they are
unlikely to change much on the ground.
The issue of loan waiver has cropped up in several States.
Finance Minister, Arun Jaitley, on Monday, reminded that the States going in for farm loan
waivers will have to generate funds from their own resources, in context to the farmers
agitations.
The Centre has its policies for the agriculture sector, under which there is a provision for interest
subvention and other support.
Suggestions
Following are some of the suggestions to tackle the issue of farmer distress:
Increasing the crop insurance cover.

Reforming Agricultural Produce Marketing Committee.
Introducing the model contract farming law.
Ensuring the availability of water to the farms of small and marginal farmers.
Ensuring the access of the marginal farmers to the institutional credits.
Government needs to create awareness among rural populations about new schemes and their
rights.
Removing the middlemen between the farmers and consumers would ensure price stability of the
essential commodities.
The "land to the tiller" policy needs to be implemented in India so that those who are actually
doing the farming get the benefits due to them.

Labor and land reforms also need to be revisited to create more opportunities beyond farming,
and irrigation and other infrastructure projects speeded up to boost farm productivity.
Issue of Child Labour in India
Context:
India recently ratified two core conventions of International Labour Organisation on child labour.
Details:
India ratified International Labour Organizations Convention No 138 (minimum age for
employment) and Convention No 182 (worst forms of child labour).
The ratification of both conventions coincided with the International Day against Child Labour.
The ratification symbolised Indias commitment and initiatives for eradication of child labour and
attainment of Sustainable Development Goal 8.7 related with curbing of child labour.
Status of Child Labour in India
Child labour has been one of the biggest concerns in India.

According to 2011 Census, There were more than 10.2 million economically active children in
the age group of 5to 14-5.6 million boys and 4.5 million girls.
8 million children were working in rural areas, and 2 million in urban areas.
Child labour has decreased in rural areas however; it has increased drastically in the urban areas
which is really alarming.
An analysis (2016) by CRY (Child Rights and You) of census data shows that the overall decrease
in child labour is only 2.2%per year from 2001 to 2011.

Causes of Child labour
Poverty is the greatest cause of child labour. For impoverished households, income from a child's
work is usually crucial for his or her own survival or for that of the household. Children are also
bonded to labour due to a family indebtedness.
Illiteracy of the childs parents further worsens the situation. Lack of awareness of the harmful
effects of child labour is a major cause behind the prevalence of child labour.
Lack of access to basic and meaningful quality education and skills training. Especially in rural
areas, there is lack of adequate school facilities. Schools are often far, and quality of education is
poor.
Increasing demand for child labour especially in urban areas is an important reason. Children
are employed because they are cheap and flexible according to the demands of the employer and
not aware of their rights.
Nature of Child labour in India

The location of work has changed. There has been an increasing involvement of children in
home-based works and in the informal sector. The change in type of child labour mainly
attributes to enforcement of legislation and awareness amongst buyers about child exploitation.

In urban areas, a large number of children are engaged in manual domestic work, rag picking,
restaurants, motor repair shops etc.
In rural sector children are engaged in the agricultural sector including cotton growing, at glass,
match box and brass and lock-making factories, in embroidery, rag-picking, beedi-rolling, in the
carpet-making industry, in mining and stone quarrying, brick kilns and tea gardens amongst
others.
The division of labour is gender-specific with girls being engaged in more domestic and home-
based work, and boys working as wage labourers.
Bonded child labour: Bonded labour means the employment of a person against a loan or debt
or social obligation by the family of the child or family as a whole. It is no less than slavery.
Bonded child labourers are often found in agriculture sector or assisting their families in brick
kilns, and stone quarries.
Impact of Child Labour

Child labour deprives a child of his/her childhood. It not only denies his/her right to
education but also a child is left with little or no time to play. Working in hazardous
conditions adversely affects a childs physical and mental health.
Presence of a large number of child labourers has long term effect on the economy; it is a
serious obstacle to socio-economic welfare of a country.
Children who work do not get proper education. Also their physical, intellectual, emotional
and psychological development gets hindered. Children, who work, instead of going to
school, will remain illiterate and this would hinder quality human capital formation.
According to the International Labour Organisation (ILO), there are tremendous economic
benefits for developing nations like India by sending children to school instead of work.
Without education, children do not gain the necessary skills that will increase their
productivity to enable them to secure higher skilled jobs in future with higher wages that will
lift them out of poverty.

Poor Wages
and
Child Labour
Inadequate
Education
Deteriorating
Poverty Labour
standards
Suggestions
Proper implementation of Child Labour (Prohibition and Regulation) Act
Stricter punishment for one who employs or encourages child labour
Improvement of educational infrastructure- ensuring access to educational institutions,
improvement in quality and relevance of education
Awareness-raising and mobilization of families and communities against the exploitation of
children
Social protection programmes and cash transfers to improve the economic situation of families
and to reduce the need to send children to work
Co-ordinated action is required between government departments to combat the problem of
child labour.
Child Marriages in India
Context
Recently, research by Young Lives in coordination with National Commission for Protection of
Child Rights (NCPCR) revealed that Rajasthan has reported the highest incidence of child
marriages.
The study was revealed by Justice A.K. Sikri of the Supreme Court.
Highlights of the Report

The study based on 2011 Census, stated that 2.5% of marriages of minor girls were reported in
Rajasthan.
The other states with high incidence of marriages of girls below the legal age are Meghalaya,
Arunachal Pradesh, Bihar, Uttar Pradesh, Gujarat, Sikkim, Madhya Pradesh and West Bengal.
Rajasthan also topped in the percentage of boys marrying below the legal age of 21 (4.69%).
No marriage below 10 years of age was reported across the country.
According to the Census study, 12.9% of girls got married in the age of 10-17 years and 43.6%
between 18-20 years.
However, only 4.9% of boys got married in the 10-17 years age group and 11.2 % in the 18-below
21 age group.
The study shows a minor decline of 0.1% in the marriage of minor girls.
The decline in rural India, between 2001 and 2011 Census was marginally higher than in the
whole of the country.
However, the incidence of child marriage among girls increased substantially in urban India from
1.78% in 2001 to 2.45% in 2011.
Defining Child Marriage:
Child marriage in India is defined as the marriage solemnized between two people where the
female is below the age of 18 years and the male is below the age of 21 years.
Though child marriage affects both the sexes, girls are disproportionately affected and are the
worst victims.
Major Reasons for prevalence of Child Marriage in India
Economies of marriage:
Poverty and marriage expenses such as dowry may lead a family to marry off their daughter
at a young age to reduce these costs.
Patriarchal Indian society considers a girl as an economic burden. Marrying her off at an
early age is away to transfer this burden to the maritial family.
There is another dimension to the economies of marriage. The marriage of the boy brings
home an additional hand to assist the unpaid household and economic activities.
Lack of education:
Poor educational opportunities for girls, especially in rural areas increase the vulnerability of a
girl child to be married off early.
Also, in the current patriarchal setup of the Indian society a girls right to education is regarded
as a secondary priority to her labor in the household. This aggravates the situation as the girls
power to resist marriage and opt for alternative aspirations is decreased.

Patriarchy and gender inequalities prevailing in the Indian society is one of the major reasons
for persisting high incidence of child marriages.
Prevailing cultural perspectives too encourage the child marriage to thrive in.
Inadequate implementation of laws is a major reason for persisting menace of child marriage in
the country.
Impacts of Child Marriage
On women health: Issues related to early pregnancy. Mental health is also a major concern.
Violence and abuse at marital home can lead to post-traumatic stress and depression.
On Education: Girls are forced to drop out schools. There lies a cause and effect relationship
between lack of education and child marriage.
On fertility: Lower age at marriage directly affects fertility rates. Lower the rate of age at
marriage higher is the fertility rate.
Maternal mortality: Maternal mortality is high among women who have conceived at an early
age. Risks associated with pregnancy are higher.
Infant Mortality: Mortality rates of children born to very young mothers are high. The children
that survive are likely to develop health problems and are more at risk of transmitting HIV/AIDS.
Violation of Rights of Children: The Rights of Children are denied by early marriage. The
Convention on the Rights of the Child is designed to guarantee certain individual rights. Child
marriage denies the following rights:
The right to education,
The right to be protected from physical and mental violence, injury or abuse, including sexual
abuse, rape and sexual exploitation,
The right to the enjoyment of the highest attainable standard of health,
The right to rest and leisure, and to participate freely in cultural life,
The right to not be separated from parents against the childs will,
The right to protection against all forms of exploitation affecting any aspect of the childs welfare
and
The right to eventual employment.
The Prohibition of Child Marriage Act, 2006
The Act came into effect on 1st November 2007

The Act extends to the whole of India except the State of Jammu and Kashmir; and it applies also
to all citizens of India without and beyond India
Under this Act, "child" means a person who, if a male, has not completed twenty-one years of
age, and if a female, has not completed eighteen years of age.
The Act defined "child marriage" as a marriage where either of the contracting parties is a child

Boys and girls forced into child marriages as minors have the option of voiding their marriage up
to two years after reaching adulthood, and in certain circumstances, marriages of minors can be
null and void before they reach adulthood.
It provides maintenance for the female contracting party.
Children born of child marriages are consider t be legitimate.
Responsibility laid on the District Courts to decide upon the parental custody of the child,
keeping in mind childrens best interests.
Punishment of male adult marrying a child: A male adult above eighteen years of age, if
contracts a child marriage shall be punishable with rigorous imprisonment which may extend to
two years or with fine which may extend to one lakh rupees or with both.
Punishment for solemnizing a child marriage: Whoever performs, conducts, directs or abets any
child marriage shall be punishable with rigorous imprisonment which may extend to two years
and shall be liable to fine which may extend to one lakh rupees unless he proves that he had
reasons to believe that the marriage was not a child marriage.
Inconsistency with Personal Laws
Under Prohibition of Child Marriage Act, parents, guardians, religious and community leaders
promoting the marriage are punishable.
However, under the Hindu Marriage Act, there are no such provisions for punishing the parents
or people who solemnized the marriage.
According to Muslim Personal Law, age of puberty (15years), is considered to be the minimum
age for marriage.
However, Child Marriage Prohibition Act clearly states that all marriages of girls below the age
of 18 years and of boys less than 21 years of age are punishable under law.
Under Jewish Personal law, minimum age of marriage for girls is 12 years.
Suggestions
Following steps can be taken to deal with child marriages:-
Extending educational infrastructure especially in rural areas. Education for girls at least up to
secondary level should be provided
Addressing the issue of gender biasness
Extensive awareness and gender sensitization programmes.
Empowering young people to criticize the existing social norms.
Integration of existing child laws in India.
Effective implementation of the Prohibition of Child Marriage act (2006).
Consistency between personal laws and The Prohibition of Child Marriage Act should be
established.

Polity
Electronic Voting Machine (EVM)
Why is it in news?
The issue over the reliability of the Electronic Voting Machine (EVM) has been in news ever since
the results of assembly elections of five states came out in March.
Some of the political parties raised doubts over EVMs regarding their technical sophistication.
The Election Commission invited political parties to prove that electronic voting machines
(EVMs) can be tampered with.
The Uttarakhand high Court earlier in its order refused to stay the EVM Challenge organized
by the Election Commission of India.
It also stated that the exercise would not in any way impact the outcome of the currently pending
election petitions on the EVM issue.
On June 4th, High Court stated that the outcome of EVM hack had no bearing on pending poll
petitions.
What is EVM?
EVM or Electronic Voting Machines are used to cast vote without revealing the identity of the
person
It is used in Indian General and State Elections.
It has replaced paper ballots in local, state and general (parliamentary) elections in India.
The two central govt. undertakings i.e. Bharat Electronics Limited and Electronics
Corporation of India Limited are the only manufacturers from whom the EVMs are procured
by the Election Commission of India.
The EVMs run on alkaline batteries and do not depend on electricity.
The shelf life of EVMs is around 15 years.
EVMs equipped with Voter-verified paper audit trail
VVPAT device functions like a printer to be attached to the ballot unit.

Once the vote is cast it dispenses a paper slip showing the symbol on which it is cast.
The voter can only see this slip through a screened window.
After seven seconds, the slip automatically gets cut and falls into a sealed drop box.
The printout is deposited in a box and can be used to resolve any dispute regarding the
election.
Advantages

It eliminates the possibility of invalid and doubtful votes which were the root causes for many
election petitions.
It eliminates the need for production and printing of ballot papers
A substantial reduction in expenses happens when it comes to transportation, storage, and
recruiting counting staff.
EVMs have reduced the time taken in election procedure.
Results can be stored in the machine memory before it is deleted manually.
Indian EVM is a standalone machine which cannot be connected to any network and controlled
through network or remote. Its original programme contained in a burnt chip cannot be altered,
making it tamper proof.
Issues
Reliability: Electronic Voting Machines: Unconstitutional and Tamperable, a volume edited by

Subramanium Swamy jointly with S. Kalyanaraman, a former senior executive of the Asian
Development Bank, raised several questions on EVMs reliability.
The EVM has no means for the voter to verify that his/her votes have been tallied properly.
A candidate can know how many people from a polling station voted for him. This may lead to
favoritism.
Is it time to transform the Voting System in India?
Context
Can the Blockchain technology prove as a more cost-effective and technologically superior
resolution for exiting voting system in India?
Key highlights
About Blockchain technology
Blockchain technology was first developed in 2009 by Satoshi Nakamoto.

Since its inception, it has been used as the basis for several cryptocurrencies from around the
world, including Bitcoin andBitshares.
Blockchain is a sort of distributed ledger or decentralized database that keeps records of digital
transactions.
The ledger can record many transactions such as monetary transactions, property transfer, and
even ballot storage.
When a digital transaction is carried out, it is grouped together in a cryptographically protected

block with other transactions
Each transaction is recorded and stored in the ledger that is out on a public bulletin board. Every
transaction adds a block to the chain of transactions and each one is assessed by every user based
on algorithms agreed upon.
All transactions that occur on a standard Blockchain are verified and signed with cryptography
to ensure security and anonymity
Rather than being kept in one location, a copy of the blockchain is stored on every users server
so that a user cannot alter it without other users finding out.
Blockchain for voting
In blockchain voting, each transaction is similar to a vote and through the use of multiple
Blockchains along with public key encryption, the voting process is thus secured while
protecting the anonymity of voters.
The votes can then be randomized several times in the digital ballot box so that voters identities
are not disclosed.
After the polls are closed, a separate blockchain application is created for the counting of votes in
the digital ballot box.
Application in Indian Voting System
Following the EVM hackathon by various leaders in India, Blockchain may prove as an effective
way to ensure transparency and undo such allegations.
Over32 blockchain firms were founded in India in 2016, up from 23 founded before 2016,
according to a fintech report by PwC.
Moreover, blockchain is in various stages of implementation across the world for voting and
other public services.
With the deep penetration of electronic devices such as cellular phones and the unique
identification (Aadhaar) system, blockchain could prove as a feasible alternative to fight voter
fraud and ease vote authentication concerns.
The Reserve Bank of Indias research arm has also advanced proof of concepts with a few banks
on blockchain, and it had stated that the results were quite encouraging and were confident in
the implementationcapability of blockchain technology.
Aadhaar cards and electronic-know your customer (e-KYC) norms have already become
conventional.
KYC is the process of a business identifying and verifying the identity of its clients, used widely
by companies and banks.

Countries implementing Blockchain technology in the voting system
Australia has declared its plan for using blockchain in voting and began projects for prototyping
the technology a couple of years ago
In 2014, Denmarks Liberal Alliance political party voted in a blockchain-based system for its
internal elections. Such systems have also been adopted in Norwayand Spain
Malta with a relatively small population of 450,000 is all set to introduce blockchain in land
registry, voting and other national services.
In a South Korea (Gyeonggi-do), a province government, used the blockchain platform in a local
funding ballot where around 9,000 votes were submitted.
Way ahead
More Transparency:A transparent voting system is a pre-requisite tool in order to run any
democracy. It thus becomes even more important to make the system as transparent and
unbiased as possible.
Efficient Implementation:The fact that Blockchain is relatively a new technology, a complete
change in the voting system might not be a viable solution.Although Blockchain may prove
beneficial if implemented on only some levels during the initial period, this would help retain
much the needed transparency in the election system while simultaneously countering any
(alleged) loopholes in the existing voting system.
Answer to all ambiguities:Keeping in mind the emergent and potential threats to the current
system of voting (allegedly), it is essential to experiment with new technologies that can
potentially secure the system.
Contest or Consent?
Context
The next president of the country should be the one who comes under the radar of popularity or
universal acceptability.
How to figure that out?
For this analysis, there should be meaningful discussions towards building an agreement among
the major political parties prior to the presidential election.
The party in regime has recently approached the opposition parties seeking a helping hand in
order to come down upon a candidate who is in an unanimous favor.
But it wont be worthwhile if the opposition parties are being approached without putting
forward a name.

To this context, The Union Ministers are of the opinion that the opposition leaders must not put
forward a name irrespective of quality and eligibility.
There will an influx of names but to saturate the best the Centre should draw up a list of possible
names and take in consideration the views of the opposition parties in getting one of them
elected.
Significance of consensus
Consensus would help the opposition parties arrive at a peaceful agreement among themselves
on whether to field a candidate or back the ruling partys choice.
It has always been seen that the ruling party leaves no stone unturned in getting its party
leaders elected President but A consensus is still possible if the candidate chosen meets one of
the most important qualifications for the presidency a general acceptability. Most
importantly, support of the common mass.
Challenges
The political scenario of the country is not entirely valuable to successful cooperation among
diverse political voices to get an eminent citizen elected without a contest.
There is an atrocity among the farmers and there are credible fears among several sections that
there may be an attempt of reduction in cultural diversity.
These atrocities serve as a loophole for the party in opposition and challenge the party in rule,
going to which, coming down upon a collective decision for the presidential election seems to be
a dicey affair.
The parties opposing the policies of National Democratic Alliance regime would want to make
use of this opportunity to amalgamate and make a determined attempt to challenge the electoral
supremacy enjoyed by the ruling party in the recent elections.
The ruling party too has the advantage of the Electoral College consisting of all members of
Parliament and the State Assemblies and can lean on the support of some regional parties.
This eventually will result in political-contesting.
Conclusion
In a nutshell, if someone who inspires confidence that he or she would act in a non-partisan
manner is elected with the support of both the ruling party and the major parties in the
opposition.
Indian Presidential Election

The president is elected by an electoral college consisting of the elected members of
both houses of parliament, the elected members of the Legislative assemblies of the
29 states and the elected members of the legislative assemblies of the Union
Territories of Delhi and Puducherry.
The nomination of a candidate for election to the office of the President must be
subscribed by at least 50 electors as proposers and 50 electors as seconders.
The election is held in accordance with the system of proportional representation by
means of the single transferable vote method.
The voting takes place by secret ballot.
The election of the President shall be held in accordance with the system of
proportional representation by means of single transferable vote by the Electoral
College consisting of the elected members of both Houses of Parliament and the
elected members of the Legislative Assemblies of the States.
The nominated members of the Houses at the Centre and the States do not have
voting rights in the election of the President.
Qualification for election as President
He/She should be an Indian citizen.
Should complete the age of thirty-five years
Is qualified for election as a member of the House of the People
Should not hold any office of profit under the Government of India or the
Government of any State or under any local or other authority subject to the control
of any of the said Governments.
India all set to get a new data protection law?
Context:
The Ministry of Electronics and Information Technology (MEIT) is working on a new data protection law.
The new data protection law is being worked upon two aims:
To ensure that personal data of individuals remain protected and is not misused,
To unlock the data economy. The underlying infrastructure of the digital economy is data. A lot
of benefits can be derived from the data that is publicly available, by using technology and big
data analytics.
Current scenario
Currently, India does not have a separate law for data protection.
There is no body that specifically regulates data privacy.
Nominally, there is a data protection law in India in the form of the Reasonable Security
Guidelines under Section 43A of the Information Technology Act.

Some redress for misuse of personal data by commercial entities is also available under the
Consumer Protection Act enacted in 2015.
As per the Act, the disclosure of personal information given in confidence is an unfair trade
practice.
Data protection in Information Technology(IT) Act,2000
The IT Act has a legal framework for privacy and security of data in digital format
and provides for compensation to the victim in case of unauthorised access and
leakage of sensitive personal information.
Section 43, Section 43A and Section 72A of the Information Technology Act,2000 and
the IT Rules (Reasonable Security Practices and Procedures and Sensitive Personal
Data or Information) 2011 provide comprehensive legal framework for privacy and
security in digital form
Section 43A also mandates that the corporate body which collects personal data or information
must provide privacy policy for handling of or dealing in personal information on their websites.
Significance
The above mentioned has proved to be useless.
Even when data leaks such as the ones from the official Narendra Modi app or McDonalds
McDelivery app have happened, section 43A and its rules have not proven of use.
There is significance in the initiative amid the debate over security of individuals private data
pertaining to Aadhaar-linked biometrics
Data protection law in India is currently facing many problem and resentments due the absence
of proper legislative framework. There is an ongoing explosion of cyber crimes. The law is also
expected to solve the problem of rising number of cyber-crimes in the country.
Liquor ban in India: Would it prove to be effective?
Context
The recent ban on alcohol doesnt really seem to uproot the behavioral pattern of the consumers
and in turn gives birth to other socio-economic hurdles for the country.
The political and legitimate loopholes raise a question on the authenticity of such bans.
State of alcohol bans in India
The court is quite concerned about the alarming statistics of road accidents and remarked that
human life is precious.

With Prime Minister Morarji Desai at the helm of crusades between 1949 and 1962, prohibition
ruled.
Not only a paltry amount of foreign liquor was officially allowed but also the economics of
liquor sidelined.
In 1968, those over 21 could drink beer and toddy with less than 5% alcohol without a permit.
While the minimum age lowered to over 30s for those needing stronger potions.
But in 1972, Maharashtra was forced to change after more than 100 people died consuming
rotgut.
During 2015, 5.01 lakh people were injured and 1.46 lakh people killed in road accidents, as per
official data compiled by the Road Transport and Highways Ministry.
Out of which, driving under the influence of alcohol or drugs accounted for 3.3% of the total road
accidents and 4.6% of the total deaths.
From April 1, the States and the Union Territories were mandated to shut all liquor vends
shops, bars and restaurants situated within 500 meters of the outer edge of National or State
Highways.
The ban order was based on a Supreme Court judgment on the petition delivered by a three-
judge Bench.
The policy makers made it clear that no liquor vend should be visible and directly accessible from
a highway.
The States were also barred from granting fresh licenses for liquor sale along the highways.
State with ban on liquor
Lakshadweep
Lakshadweep is the only union territory that bans the sale and consumption of alcohol.
Consumption is permitted only on the island of Bangaram.
Nagaland
The Nagaland Liquor Total Prohibition Act (NLTP) banned the sale and consumption of alcohol
in 1989.
Publishing of advertisements on liquor in newspapers are also prohibited under the Act.
Enforcement of the ban is lax and Indian Made Foreign Liquor is readily available.
Gujarat
Liquor was banned for long periods during the pre-Independence days, most of the states lifted
bans soon after India achieved freedom.
But Gujarat, after its formation in 1960 out of Bombay State, continued the ban and still enforces
it to this day.
Bihar
Bihar government has put a complete prohibition of alcohol in the state.
Kerala
The Congress government in Kerala introduced a liquor policy in August, 2014 advocating for
total prohibition.
But the policy was opposed by the bar owners.
High court in December 2015, backed the states liquor policy restricting the sale of alcohol only
to five-star hotels and establishments.
States that experimented with liquor ban

Andhra Pradesh, Haryana, Tamil Nadu, Mizoram and Manipur are all states that have experimented
with partial or complete ban on liquor.
Why the ban is good
According to NCRB data, 15 people die every day or one every 96 minutes from the effects of
drinking alcohol.
Per capita consumption of alcohol in India increased 38 percent, from 1.6 litres in 2003-05 to 2.2
litres in 2010-12.
More than 11 percent of Indians were binge drinkers, against the global average of 16 percent.
Maharashtra reported the most alcohol-related deaths, followed by Madhya Pradesh and Tamil
Nadu.
Major crimes and accidents are fuelled by alcohol, which also leads to sexual harassment of
women and robberies.
Alcohol abuse is said to be the major reason behind that Tamil Nadu has the largest number of
widows under 30 years of age.
According to the Alcohol and Drug Information Centre, quarter of all hospital admissions and 69
percent of all crimes in Kerala are due in part to intoxication.
Why the ban is not good
According to psychologist Jack Brehm, humans hate obstruction of personal freedom.

Accordingly, they get into a rebellious state of mind and regain their freedom through illegal
affairs.
The undercover liquor supply makes its way for new problems like spurious liquor, gang wars
and sale of other narcotic substances.
Economically, following the Supreme Court, the country has been facing problems for clubs,
hotels and restaurants.
In Chennai, around 120 bars attached to clubs have remained closed since April 1, and the loss
to the industry is estimated to be 600 crore, according to Benze Saravanan, founder, Tamil Nadu
Bar and Club Owners Association.
Large hotel chains are not the only ones affected by the ban.
Food and beverage revenues have declined by 30-40% since the court order, and specialty
restaurants have been badly hit.
In a nutshell, in the two months since the court ruling, the hospitality industry in Chennai has
lost an estimated 3,000 crore.
With hardly any progress being made on resolving the issue, the hospitality industry says
business in hotels on arterial roads has been crippled.
This is directly affecting their employees too.
International experiences
Positively, in the initial months of alcohol prohibition in the US, there was a 30% drop in alcohol
consumption and decline in arrests for drunkenness.
In the 1980s, Portugal rolled under the onslaught of drug and drug-related problems.
More than 1% of the population was addicted to heroin, and drug-related AIDS deaths in
Portugal were the highest in the entire European Union.
The immediate respond to the disturbance was strict law enforcement which did not last long.
Eventually, to come with something stricter, the policy makers in Portugal decriminalized the
possession of all drugs in 2001everything from marijuana to heroin.
The new strategy was focused on the individual drug user.
By this initiative, the authorities made sure that the problem was not driven underground.
Moreover, they asked the occasional users to appear before a dissuasion panel consisting of
legal, social and psychological experts.
The drug dealers and traffickers of course were sent to jail.
The philosophy of Portugals drug policy was to treat it as a public health issue rather than a
criminal issue and ban it.
Today Portugals current drug-induced death rate is more than five times lower than the
European Unions average.
Conclusions
Just like Portugal, ban on alcohol is to be treated as a public health issue and not as a criminal
issue and ban it.
Over the last few years, bars and pubs in the city have become more responsible
They have been engaging their patrons in discussions about drunk driving.
At a time when the economy is going through a rough patch, and consumer pace has declined,
the new norms will hit the hotels that survive on food and beverage sales even harder.
GST however, will bring some relief to these hotels with its input credit.
Drinking is fuelled by upper-caste hypocrisy, a complex mix of religious guilt and bigotry.

Environment
Issue of Genetically Modified Crops in India Issue of Genetically Modified Crops in India
Why is it in news?
The Genetic Engineering Appraisal Committee recently recommended the commercial approval
of the GM Mustard crop.
If approved by the Environment Ministry, GM Mustard will be the first genetically modified food
crop to be cultivated in India.
Given the results of extensive bio-safety studies over the last decade and the edible oil shortage
the country is facing, this should be an easy decision by the Environment Ministry.
However, it might not be as easy, as the activists who are ideologically opposed to GM crop
technologies have unleashed protest movements and campaigns.
The approval of GM Mustard by the Environment Ministry largely remains a political decision.
What are GM crops?
GM Crops are plants used in agriculture, the DNA of which has been modified using genetic
engineering methods.
GM is a technology that involves inserting DNA into the genome of an organism.
To produce a GM plant, new DNA is transferred into plant cells.
Usually, the cells are then grown in tissue culture where they develop into plants.
The seeds produced by these plants inherit the new DNA
Advantages of GM Crops:
Resistant to pest and diseases.

They have improved quality and taste, as well as increased nutrients.
Sustainability: GMOs provide a stable and efficient way to sustain enough crops to feed the ever
growing population of people in the world.
Longer Shelf life: Genetically modified foods have a longer shelf life. This improves how long
they last and stay fresh during transportation and storage.
They help reduce the environmental impact by human activities by reduction in the use of
insecticides and pesticides.
Some of the GM crops contain the quality of resistance to herbicides.
Some specific GM crops can bear the harsh climatic conditions like draught, salinity and cold,
which the original crops are unable to do.
Economic Benefits: GM crops can increase yield and thus increase farm income.
Concerns regarding GM crops:
Impact on Health: Effects of GM crops on human health can be unpredictable. They might have a
tendency to provoke any allergic reaction.
Environmental Concern:
They can reduce species diversity. For example, Insect-resistant plants might harm insects that
are not their intended target and thus result in destruction of that particular species.
GM technology could also allow the transfer of herbicide tolerant genes from GM crop to weeds,
creating super weeds, which will be immune to common control methods.
Viral genes added to crops to confer resistance might be transferred to other viral pathogens,
which can lead to new and more virulent virus strains.
Economic Concerns:
Introduction of a GM crop to market is a lengthy and costly process.

Patenting of GM plants is a great concern. Patenting these seeds increases the price of these seeds
and small farmers especially in developing countries cannot afford to buy GM seeds every year.
This result to be financially disastrous for poor farmers in developing countries like India, further
increasing the inequality in the distribution of income.
Way forward
GM crops are the way forward for sustainable development.

It has a great potential to address global hunger and malnutrition issues.
It can help protect and preserve the environment by increasing yield and reducing reliance upon
chemical pesticides and insecticides.
However, the unintended impact on human health and environment is a matter of concern.

Economic viability of farmers in developing countries in India is a major discourse.
In India, a strong regulatory framework is needed for commercialization of GM crops. Otherwise,
years of researches on GM crops will go in vain.
Therefore, there is an urgent needed for an independent biotechnology regulatory authority, a
single organization that will replace the multiple committees at least six that are part of the
current regulatory structure.
Nuclear power in India
Whats the issue?
India has agreements with Westinghouse and Areva to build power plants in India.
Recently, both Westinghouse and Areva have gone bankrupt.
The Critics of these deals had pointed out that Indias agreements with Areva and Westinghouse
were fiscally irresponsible.
Had these projects been implemented, Indian taxpayers would be holding billions of dollars of
debt and incomplete projects.
The issue has also put the governments recent decision to approve construction of ten 700 MW
PHWRs under scrutiny.
Indias Agreements with Westinghouse and Areva
Areva had promised to build the worlds largest nuclear complex at Jaitapur (Maharashtra).
In June 2016, Indian Prime Minister along with erstwhile U.S. President Barrack Obama had
announced that Westinghouse would build 6 reactors at Kovada (Andhra Pradesh).
What has happened to Westinghouse and Areva?
In March, Westinghouse, the largest builder of nuclear power plants declared bankruptcy.
This led to a major financial crisis for its parent company Toshiba.
The French Nuclear supplier, Areva too went bankrupt few months back.
It is at present in the midst of a restructuring that will cost French taxpayers about 10 billion.
Criticisms of this deal

How cheap are these actually?
700 MW PHWRs that Areva has promised, are cheaper than the imported reactors.
However, the electricity is likely to be costly.
Cost of electricity during the first year of operation at these reactors is likely to be Rs. 6 units at
current prices.
The prices of solar power have dropped below the nuclear power.
It is the government tariff model that makes nuclear power more competitive than it really is.
Nuclear power would be even less economically attractive if a methodology that consistently
incorporates the time value of capital were to be used to establish tariffs.
What is Pressurized Heavy Water Reactor (PHWR)?

A pressurized heavy-water reactor is a nuclear reactor, commonly using unenriched natural
uranium as its fuel that uses heavy water (deuterium oxide D2O) as its coolant and neutron
moderator.
The heavy water coolant is kept under pressure, allowing it to be heated to higher temperatures
without boiling, much as in a pressurized water reactor.
While heavy water is significantly more expensive than ordinary light water, it creates greatly
enhanced neutron economy, allowing the reactor to operate without fuel-enrichment
facilities (offsetting the additional expense of the heavy water) and enhancing the ability of the
reactor to make use of alternate fuel cycles.
The Employment issue
The government announced that these plants would generate more than 33,400 jobs in direct and
indirect employment.
However, when viewed in the context of the planned capital expenditure of Rs. 70000 crore these
figures do not look impressive The relevant factor for assessing the employment opportunities
provided by the project should be the ratio of jobs to the capital invested and not just mere
numbers of jobs.
Nuclear power in India
The first nuclear power plant in the country, comprising two nuclear reactor units, was set up at
Tarapur, Maharashtra on turnkey basis by GE, USA The units became operational in October,
1969.
Work on the Pressurised Heavy Water Reactors (PHWRs) of the first stage began with
construction of RAPS-1&2 at Rawatbhata, Rajasthan.
Commencing from 1983 and over a span of two and a half decades, India built 16 nuclear power
units using its own technology, materials and equipment.
These reactors use natural uranium as fuel.
Current Status
As of 2016, India has 22 nuclear reactors in operation in 8 nuclear power plants.
The Union Cabinet cleared the building of 10 new nuclear power plants in May, 2017.
The new reactors would be in addition to the ones that are expected to come on stream by 2021-
22, and are expected to add 6700 MW in addition to the current capacity of 6780 MW from 22
reactors.
Harmful effects of nuclear energy
Nuclear Power and Environmental Issues
The government argued that these power reactors would strengthen the global efforts to combat
climate change.
However, climate change is not the only environmental problem the world is facing today.
Nuclear power poses threat to environment and public health
All the nuclear reactors produce hazardous radioactive waste materials.
These radioactive wastes remain for thousands of years.
Nuclear reactors are also capable of catastrophe events. Example: Fukushima Nuclear Disaster
and the Chernobyl Disaster.
Social Risks involved
Since 1980s, every new site for selected for nuclear plant has been greeted with protest
movements by local communities.
There have been instances, where these movements have been successful in forcing the
cancellation of the plans. Example: cancellation of two sites in Kerala and one in West Bengal.
However, not all communities have been lucky.
In Chutka, the affected local community had been displaced earlier by the Bagri Dam Project.
Once again, they are being asked to move out for the nuclear power plant project.
Their plight symbolizes the social dynamics associated with nuclear power.
Poor rural communities, who consume only a tiny fraction of the electricity that is generated,
primarily borne the risks and costs involved.
New developments:
India, Russia ink nuclear plant pact
At the 18th India-Russia Annual Summit (2017), India and Russia signed an agreement to set up
two units at Kundakulam Power Plant, Tamil Nadu.
This step is likely to be a big boost for Indias clean energy requirements.
The reactors will be built by the joint efforts of Nuclear Power Corporation of India (NPCIL) and
Russias Atomstroyexport Company, a subsidiary of Rosatom, the regulatory body of the Russian
nuclear complex.
Each of the two units will have a capacity to produce 1,000 MW of power
India-Japan Civil Nuclear Deal
The talks for Civil Nuclear Agreement between India and Japan had started back in 2006 but
moved into a negotiation stage in 2010.
After years of negotiations, India and Japan signed the Civil Nuclear Deal in November 2016.
Political opposition within Japan especially after the Fukushima Disaster was the main reason
behind the delay of signing the deal.
However, the deal came into fruition only in June 2017 when Japans Parliament, the Diet,
approved the pact despite opposition parties raising voice against the deal highlighting concerns
that India has provided insufficient guarantees for Japans right to terminate the agreement.
The agreement will come into effect from July 2017.
Significance of the deal

The agreement will allow Japan to supply nuclear reactors, fuel and technology to India.
India had gone into an agreement with Westinghouse Electric, owned by Japan's Toshiba to build
nuclear reactors.
India is the first country to get into an agreement with Japan without signing the Non-
Proliferation Treaty.
India expects that after the deal coming into effect, the 2008 waiver it received from the Nuclear
Suppliers Group might finally begin paying off. India had limited tangible benefits prior.
Conclusion:
Nuclear power is an alternative to fossil fuels and has lately emerged as an initiative to sustainable
development. It is being widely considered as a solution to global warming and climate change.
However, debates have raged over nuclear power with regard to its environmental impact and social
costs and risks involved, especially in a developing country like India.
China Presenting Worlds Largest Solar Farm
Why in News?
China recently launched worlds largest solar farm
Significance
The solar facility went online around the time of President Donald Trumps much-criticized June
2 decision to withdraw from the international accord aimed at saving the planet from climate
change catastrophe.

His move shifted the spotlight onto China and whether it will take on the leadership mantle in
the fight against global warming.
Days after his announcement and by coincidence Beijing hosted an international conference
on clean energy.
It is an opportunity for China, which already produces two-thirds of the worlds solar panels, to
boast of its commitment to accelerating investment and reforms for greater use of renewable
energies.
Facts about the Solar Farm
The 40-megawatt power plant has 1,60,000 panels resting on a lake that emerged after the
collapse of a coal mine in central Anhui province.
It is part of Beijings effort to wean itself off a fossil fuel dependency that has made it the worlds
top carbon emitter, with two-thirds of its electricity still fuelled by coal
It has been the world's largest investor in clean energy since 2012, spending $88 billion on wind
and solar power last year
China's solar capacity has more than doubled in 2016.
The official goal is for 20 percent of Chinese power consumption to come from low-emission
energy, including nuclear, by 2030, compared to 11 percent currently.
Chinas Domination
The U.S. withdrawal from the Paris agreement offers China an unprecedented opportunity to
take the lead in climate change
Beijing is kind of dominating the game, especially because China is already moving rapidly
with or without the U.S. in terms of investments
Beijing hopes to combat endemic air pollution, but is also motivated by financial interests, as the
country is already reaping the economic benefits of clean energy.
A New Cast of Crabs in Western Ghats
Why in News?
The Western Ghats biodiversity hotspot is in the spotlight once again

Scientists have discovered a new genus and six new species of freshwater crabs in these
mountainous forests.
All six species were discovered on the Kerala side

A collaborative effort by the Zoological Survey of India and Department of Aquatic Biology
and Fisheries, Kerala University, has brought in light this new genus and six new species of
freshwater crabs from the Kerala side of the Ghats.
Significance
With this, the freshwater crab diversity of the state has risen to 34 species including 23 endemic
species, the highest in the country
What are the New Species?
The new genus, christened Karkata- meaning crab in Sanskrit and Malayalam - is endemic to the
Western Ghats
One of its species, Karkata ghanarakta , was collected from the Thattekad bird sanctuary in
Ernakulam district.
The second, Karkata kusumbha was reported from Mankulam in Idukki district.
The species name ghanarakta is derived from the Sanskrit for maroon, reflecting the colour of the
crab.
The word kusumbha (Sanskrit for safflower) refers to the orange-red colours of the creature that
resemble the floral hues.
The study also recorded two new species of the genus Pilarta - Pilarta aroma and Pilarta
punctatissima.
Pilarta aroma inhabits cold water mountain streams in the Agasthyamala Reserve in
Thiruvananthapuram
Pilarta punctatissima was collected from Ovumkal in the Thattekad sanctuary
One new species, Cylindrotelphusa longiphallus, came from deep burrows along paddy fields at
Kuzhikattusseri, Thrissur.
The name is derived from the Latin longi for long and the Greek phallus, a reference to long
male gonopods of the animal.
Another new discovery, Cylindrotelphusa breviphallus, is from Ponmudi in
Thiruvananthapuram
Note:
A couple of months back, a new genus and new species of tree crab was found in Kerala,
southern India, scientifically which is known as the "Kani maranjandu.
This is the first report of its kind to offer a record of an arboreal craba crab species that lives in
trees
The new species has been named Kani maranjandu after the Kani tribe of Kerala that first
reported the species.

Paris Agreement post US withdrawal
Context
Donald Trump has decided to pull U.S.A out of the Paris Climate Accord.
World Leaders, scientists and environmentalists have condemned Trumps decision.
What is Paris Agreement?

It is an agreement within the UNFCCC dealing with greenhouse gas emissions mitigation,
adaptation and finance starting in the year 2020. The Paris Accord is considered as a turning
point for global
Aims:
The central aim is to strengthen the global response to the threat of climate change by
keeping a global temperature rise this century well below 2 degrees Celsius above pre-
industrial levels.
It further aims at pursuing efforts to limit the temperature increase even further to 1.5
degrees Celsius.
The agreement aims to increase the ability of countries to deal with the impacts of climate
change.
It also aims at making finance flows consistent with a pathway towards low greenhouse
gas emissions and climate-resilient development.
Points to Remember
The Paris Agreement was adopted y 195 countries at the 21st Conference of the Parties of
the UNFCC in Paris on 12th December, 2015.
It came into force on 4th November, 2016
As of June 2017, 195 countries have signed the agreement.
148 countries have ratified it.
Nationally Determined Contributions (NDCs):
NDCs are contributions that each country should make in order to achieve the worldwide
goals.
The level of NDC that each country sets, determines the targets to be achieved by the
particular country.
These contributions should be reported every five years.
The principle of progression prevails which indicates that the next NDC should be more
ambitious than the previous one.
Nicaragua and Syria are the only countries who have not signed the agreement.
U.S.A recently joined the league as Trump announced to pull U.S.A out of the Paris
Agreement.
The Paris Agreement is not legally binding as a whole.
It does not penalize the countries who fail to fulfil their commitments.
However, it imposes obligations on countries to implement their plans.
This includes a review process every five years, designed to pressure them into compliance
and increase their efforts to fulfill their commitments.
Current Issue
On 1st June 2017, President Trump announced to pull U.S.A out of the Paris Agreement.
However, that there is strong support for the Paris Agreement among many individual States
and cities in the U.S.
President Trump had suggested that he would seek a new deal.
The withdrawal also implies the cancellation of U.S contributions to the Green Climate Fund.
Rationale behind the withdrawal
Trump had announced during his Presidential Campaign that he would withdraw U.S.A from
the Paris Accord.
Trump also commented that he was ready to negotiate for a better deal. However, European
leaders did not welcome the suggestion.
According to Trump, the decision to withdraw would help American business and workers
especially those in the fuel industry.
On June 1st, Trump had also cited Indias financial needs as a reason for inaction, despite the fact
that India has moved further and faster down the path of clean energy than most, based entirely
on domestic resources.
How can U.S.A withdraw from the Agreement?
The White House had announced that it would abide by the UN rules for withdrawing from the
agreement.
Under the provisions of the Accord U.S.A cannot withdraw before 2020.
Countries can only officially withdraw after three years of the agreement coming into effect and
must give a one-year notice prior to withdrawing.
As the agreement is not legally binding, U.S.A could simply chose not to follow the agreement.
A faster option could be withdrawing from 1992 UNFCC. This would take a shorter time period.
Impact of U.S.As decision to withdraw
Withdrawal of U.S.A can be a major setback to effective climate action.

Since, U.S.A is currently the second largest emitter of green-house gases, it has a major role to
play in reducing the emissions.
Withdrawal from the agreement also includes cancellation of all U.S contributions to the Green
Climate fund.
Environmentalist and others fear that this decision may lead to a domino effect. Other countries
might follow U.S.A and withdraw from the Paris Accord.
Other opinions
Many are of the opinion that U.Ss withdrawal is not the worst decision but the second worst.
More damaging would have been the other option Mr. Trump was reportedly considering: stay
in the Paris Agreement, but substantially lower the U.S. pledge.
But sanctifying a weaker U.S. pledge would have violated the principle of progression that lies
at the heart of the Paris Agreement.
India amidst the issue
India had announced that it would continue its support for climate action
According to many, India could play a leadership role in mobilizing the climate-vulnerable
countries, to recommit to and strengthen the Paris Agreement.
India could also formally make cause with China and the European Union.
China and EU have reportedly planned alliance to lead implementation of the Paris Accord.
Recently, price of solar energy has fallen and the need for coal has also decreased substantially.
This indicates that India is well placed to make a transition to clean energy use.
Discovery of Flying Squirrel
Why in News?
Scientists have discovered a new species of flying squirrel in North America that had been hiding
in plain sight for hundreds of years.
This new discovery is the 45th known species of flying squirrel in the world
Significance
The northern flying squirrel can be found throughout British Columbia but a new study has
found that those living on the coast are a completely different species from those found inland for
about a million years.
The discovery means that threenot twospecies of the furred gliders live in North America
It changes our understanding of how these squirrels evolved and spread across the continent

This new discovery is the 45th known species of flying squirrel in the world
It adds to the ongoing tally of our planets biodiversityan increasingly urgent matter, given the
high rate of extinctions.
What is the new Species?
The new flying squirrel species is known as Humboldts flying squirrel, or Glaucomys
oregonensis
The Humboldts flying squirrel is known as a cryptic species a species that was previously
thought to be another, known species because the two look similar.
The DNA of flying squirrel specimens collected throughout the Pacific Northwest, previously
thought to be the exclusive domain of the northern flying squirrel
But those found on the Pacific coast between southern B.C. and northern California turned out to
be genetically distinct from those found further inland.
Distinctive Feature
There's nothing physical or behavioral that differentiates the Humboldt's flying squirrel from
northern flying squirrels but genetically it is different
The Humboldt's flying squirrel probably diverged from the northern flying squirrel 1.3 million
years ago, during the Pleistocene epoch, when glaciers regularly pushed their way well into what
is now the United States.
Flying squirrels don't actually fly; they glide through the air.
New Method to Assess Water Quality
Context
Recently, it has been planned to introduce a water quality index to determine the pollution levels in
water.
Details
Based on the proposal of the Telangana State Pollution Control Board, Central Pollution Control
Board (CPCB) is working on to bring forth a Water Quality Index.
There will be three different models for lakes and rivers, ground water and coastal waters.
A committee has been formed with senior environment scientists from Telangana, Rajasthan,
Uttar Pradesh, Karnataka, Madhya Pradesh and other States to formulate models to assess the
water quality.

Four parameters will be used to assess the water quality of rivers and lakes, groundwater and
coastal waters.
The committee has plans to classify the lakes, groundwater and the coastal waters in India based
on the Water Quality Index.
The present classification is considered to be irrational and hence the need for a Water Quality
Index (WQI).
What is WQI?
WQI indicates the quality of water in terms of index number which represents overall quality of
water for any intended use.
It is defined as a rating reflecting the composite influence of different water quality parameters
taken into consideration for the calculation of water Quality index (WQI).
Concept of Designated Best Use (DBU)
What is DBU?
Out of several uses a water body is put to, the use which demands highest quality of water is termed as
designated best use, and accordingly the water body is designated.
Primary water quality has been identified for each use.
Water Use Map is prepared by classifying water resources of India based on their designated
best use.
Water Quality Map is prepared by identifying water bodies or their parts where water quality is
at variance with water quality criteria.
Next, the Water Quality Map is superimposed on the Water Use Map.
In this way, a large number of water bodies are identified as polluted stretches for taking
appropriate measures to restore their water quality.

Almost all policies and programmes on water quality management are based on this concept. Example:
Ganga Action Plan and National River Action Plans

Science and Tech
Navy Intends to Buy Advanced Subs
About Project 751-class submarine

The Project 75I-class submarine is follow-on of the Project 75 Kalvari-class submarine for the Indian
navy. Under this project, the Indian Navy intends to acquire 6 diesel-electric submarines, which will
also feature advanced Air Independent Propulsion (AIP) systems to enable them to stay submerged
for longer duration and substantially increase their operational range.
Sequence of Events
In 2005, in a major defense deal India decided to acquire six highly advanced French Scorpene
submarines worth $3 billion (about Rs 13,000 crore).
On 6th April 2015, the first indigenously built Scorpene submarine was launched. In the same year
i.e. 2015 Indian Navy planned to buy additional Scorpene submarines over and above an order of
six vessels.
Even at that point of time, the Navys Scorpene project was behind the schedule for more than
four years. Under the 2005 deal, first submarine was to be inducted in 2012. Earlier, the Indian
government had threatened to impose penalties if the submarines were not inducted on a
schedule, with the first one to be inducted in August 2015 and the remaining five every six
months following.
In August, 2016, there was a reported leak of a massive cache of secret documents detailing the
combat capabilities of Scorpene submarines designed for the Indian Navy by French shipbuilder
DCNS and in the light of this data leak, India was likely to scrap the proposed order of three new
submarines, that were to be built in addition to the six submarines that were built by a French
naval contractor DCNS.
In April 2017, India and France stepped up negotiations o expand the Scorpene submarine
contract.
After a series of delays, the first submarine Kalvari is now in advanced stages of sea trials and
expected to be commissioned in a few months. The second submarine Khanderi was launched in
January and is undergoing sea trials.
Current Scenario

As per the most recent advancements, Indian Navy is not interested in ordering additional
Scorpene submarine
The Navy wants to take forward the tender for a new line of advanced submarines under Project-
75I
Moreover, the Scorpene program is already delayed and now the corresponding technology is
much older.
In 2011, the then defense Minister A.K. Antony told the Indian Parliament that the first
submarine was scheduled to be delivered in December 2012, and thereafter one each year until
December 2017. By Dec, 2015 the delays in delivery had increased the cost of the submarine
project by more than $1 billion.
Current Features of Project 751-class submarine
The P-75I submarines will be more modern and advanced with all of them equipped with Air
Independent Propulsion (AIP) modules to enhance the reach and stealth characteristics.
AIP modules were not part of the Scorpene deal, and the Navy is trying to have them fitted on
the last two Scorpenes. That is contingent on the timely delivery of the AIP being indigenously
developed by the Defence Research and Development Organization.
About Kalvari
The Kalvari class is a class of submarines based on the Scorpne-class submarine being built for
the Indian Navy. It is a class of diesel-electric attack submarine.
More about INS Khanderi
The state-of-the-art features in the submarine include superior stealth and ability to launch a
crippling attack on the enemy using precision guided weapon.
The attack from it can be launched with torpedoes, as well as tube-launched anti-ship missiles,
whilst on surface or underwater.
The stealth features gives it invulnerability, unmatched by many submarines.
The submarine is designed to operate in all theatres, including the tropics.
All means and communications are provided to ensure interoperability with other components of
a Naval task force.
It can undertake multifarious types of missions typically undertaken by any modern submarine such as
anti-submarine warfare, anti-surface warfare, intelligence gathering, area surveillance, mine laying etc.
CDSCO has registered the oral pellet form of HIV drugs
Context

The Central Drugs Standard Control Organization registered the child friendly HIV drug in oral
pellet form.
This has opened up crucial supplies from Cipla Pharmaceuticals, a dominant player in the HIV
segment
Cipla developed a different formulation of the child friendly HIV drug Lopinavir and Ritonavir.
Those were pellets of lopinavir and ritonavir, packaged as micro-tablets inside a capsule.
The need for new formulation was quality issues with the syrup made earlier by Cipla.
The National Aids Control Programme (NACO) had been facing problem to procure quality
assured paediatric formulations of the drug after Liponavir syrup ran out of stock.
Crisis
NACO completely ran out of syrup comprising the drugs lopinavir and ritonavir which is given
to children up to age of 3 with HIV or AIDS.
HIV and AIDS patients need to take their antiretroviral medicines at fixed times every day.
Missing or skipping a dose escalates the chances of drug resistance with patients failing to
respond to the drugs.
Faced with a crisis, the Health Ministry had instructed State AIDS Control Societies (SACS) to
purchase the medicine from local markets.
However, since the syrup had gone out of production, they were not available in retail markets.
What led to the crisis?
The Lopinavir syrup which is a child friendly HIV drug ran out of stock
This happened as Cipla, the sole manufacturer of the drug stopped the production.
Non-payment from the Health Ministry was the issue behind stopping the production of the
drug.
Timeline
2014: NACO got a stock of lopinavir/ritonavir syrup from Cipla which is the sole maker of the
drug in the country.
2015: Cipla stops manufacture of the syrup and switches over to pellets of the same formulation.
October 2016: NACO issued tenders for syrup but no company bid.
January 2017: NACO issued tenders for the syrup again. The activists working with HIV patients
informed them that Cipla has stopped manufacturing the drug.
January 2017: The stock of syrup acquired from Cipla in 2014 ran out.
End of February 2017: NACO requests McNeil & Argus Pharmaceuticals to manufacture the
syrup on an emergency basis.
March 2017: struggling with the shortage of life-saving drugs, Children living with HIV (CLHIV)
wrote a letter to Prime Minister urging him to address the issue.
Significance of the issue:
Children are some of the most vulnerable HIV patients.

Lack of child friendly, quality assured HIV drugs is one of the major reasons behind the
treatment gap between adults and children
The registration of pellets is appositive step towards this issue.
India launched its heaviest launch vehicle GSLV MkIII-D1
Context
Indian Space Research Organisation (ISRO) successfully launched its heaviest launch vehicle,
GSLV MkIII-D1.
GSLV Mk III is a new, improved and powerful version of the GSLV rockets developed by ISRO.
It features an indigenously developed cryogenic engine.
GSAT-19 satellite was launched by GSLV Mk III-D1 on Monday, June 05, 2017.
GSAT-19 is Indias heaviest satellite till date.
It was placed into a Geosynchronous Transfer Orbit (GTO).
It will take about two to three weeks to be placed in its intended orbit.
All you need to know about GSAT-19

Type of Satellite: Communication
Launch mass: 3136 Kg
Mission Life: 10 years
Launch Vehicle: GSLV Mk III-D1/GSAT-19 Mission
Manufacturer: ISRO
Owner: ISRO
Application: Communication
Orbit type: GSO
GSAT-19 carries Ka/Ku-band high throughput communication transponders.
It carries a Geostationary Radiation Spectrometer (GRASP) payload to monitor and study the
nature of charged particles and the influence of space radiation on satellites and their electronic
components.
It also features certain advanced spacecraft technologies like miniaturised heat pipe, fibre optic
gyro, Micro Electro-Mechanical Systems (MEMS) accelerometer, Ku-band TTC transponder, as
well an indigenous Lithium-ion Battery.
Use of cryogenic engines in GSLV Mk III

A cryogenic rocket engine is a rocket engine that uses a cryogenic fuel or oxidizer, that is, its

fuel or oxidizer (or both) is gases liquefied and stored at very low temperatures.
Indigenously developed cryogenic stage uses liquid oxygen and liquid hydrogen.
India belongs to the elite club of countries that have mastered cryogenic technology.
Design and technology
ISRO has used indigenous cryogenic engines on earlier GSLV flights

However, modeled them mainly on Russian design.
On this latest GSLV no technological element was borrowed or adapted from any other space
organization
Significance and Opportunities
The spacecraft is expected to open up a lot of new vistas in the field of Internet and broadband
connectivity.
It will open up business opportunities for ISRO to launch heavy satellites for foreign customers.
It will reduce dependence on foreign space organizations such as Arianespace SA.
Future Plans of ISRO
There are two launches coming up.

However those will happen from Ariane in French Guiana.
The first one is scheduled for June 28, is GSAT 18, a 3.3 tonne satellite.
The second one is a 5.8 tonne satellite.
Work is on to launch two approved missions Aditya-L1 and Chandrayaan-II .
The launch is expected to take place in next two years.
Genetic secrets of ancient Egypt unwrapped
Context
DNA from mummies found at a site once known for its cult to the Egyptian god of the afterlife is
unwrapping intriguing insight into the people of ancient Egypt, including a surprise discovery that they
had scant genetic ties to sub-Saharan Africa.
About the DNA extracted

The DNA was extracted from the teeth and bones of mummies from a burial ground associated
with the god Osiris. The oldest were from about 1,388 BC during the New Kingdom, a high point
in ancient Egyptian influence and culture.
The most recent were from about 426 AD, centuries after Egypt had become a Roman Empire
province.
Mummification was used to preserve the bodies of the dead for the afterlife. The mummies in the
study were of middle-class people, not royalty.
Questions Raised
Are modern Egyptians direct descendants of ancient Egyptians?

Was there genetic continuity in Egypt through time?
Did foreign invaders change the genetic make-up: for example, did Egyptians become more
European after Alexander the Great conquered Egypt?
Findings
The genomes showed that, unlike modern Egyptians, ancient Egyptians had little to no genetic
kinship with sub-Saharan populations, some of which like ancient Ethiopia were known to have
had significant interactions with Egypt.
The closest genetic ties were to the peoples of the ancient Near East, spanning parts of Iraq and
Turkey as well as Israel, Jordan, Syria and Lebanon.
Mummification
Mummification is a process in which the skin and flesh of a corpse can be preserved.
The process can occur either naturally, or it can be intentional.
If it occurs naturally, it is the result of cold (as can be found in a glacier), acid (as can be found in
a bog) or dryness.
The practice was widely practiced in ancient Egypt.
Processes used for mummification were:-
o Mummification involved the removal of the bulk of the internal organs as well as
moisture from the body.
o The body cavity was then soaked in a bath of natron which acted as a dehydrating agent.
Natron is comprised of sodium bicarbonate and sodium carbonate.
o Once dried, the body was rid of all temporary stuffing and filled with permanent
stuffing. The slit in the abdomen was closed off, and wax or resin was used to seal off the
nostrils.
o The warm resin was poured into the form before wrapping was resumed.
o Hundreds of yards of linen were employed to wrap the corpse effectively.
o Once complete, the mummy was placed in the coffin in preparation for the burial rites.

Indias polar ship still a long way off
Context
Indias plans to acquire a Rs. 1,000-crore polar research vehicle (PRV) a ship that can cut through ice
sheets and glaciers may see fresh delays.
Issue
The new Make in India policy gives Indian companies an edge in bagging these contracts, which
are open to international and local bidders.
This concession allows an Indian company, which may have lost out to a foreign company in the
final bidding stage on price, to match the latters lower, winning bid and bag the contract.
The government had authorized the Goa-based National Centre for Antarctic and Ocean
Research (NCAOR), a facility that comes under the Earth Sciences Ministry, to acquire a Polar
Research Vehicle (PRV) in 2014.
An Indian company can also partner with a foreign company for the bidding. The ship is
expected to be ready within three years.
Indiaa ambitions
With a lifespan of 30 years, the ship is expected to be central to Indias ambitions in the Arctic
and Antarctica in coming years.
India has announced plans to rebuild Maitri, its research station in Antarctica, and make it
impervious to its harsh environment for at least 25 years.
Maitri
Maitri is India's second permanent research station in Antarctica as part of the Indian
Antarctic Programme.
Maitri is situated on the rocky mountainous region called Schirmacher Oasis. It is only 5 km
away from Russian Novolazarevskaya Station.
The station has modern facilities to carry out research in various disciplines, such as biology,
earth sciences, glaciology, atmospheric sciences, meteorology, cold region engineering,
communication, human physiology and medicine.
It has a capacity to accommodate 25 people for winter.
Fresh water is provided through a fresh water lake named Lake Priyadarshini, in front of
Maitri.
National Centre for Antarctic and Ocean Research

The National Centre for Antarctic and Ocean Research (NCAOR) is an Indian research and
development institution, situated in Vasco, Goa.
It is an autonomous Institution of the Department of Ocean Development
(DOD), Government of India which is responsible for administering the Indian Antarctic
Program and maintains the Indian government's Antarctic research station, Maitri.
NCAOR has been playing a major role in national Antarctic programs.
It is credited with pursuing cutting-edge studies in the field of earth, environment, life, space
and other subjects of Polar sciences in collaboration with research communities of India and
abroad.
The Centre is the nodal organization for the coordination and implementation of the Indian
polar program that includes Antarctic, Arctic and Southern Ocean studies as also
encompassing the maintenance of Indias permanent stations in these areas.
Third gravitational wave merger detected
Context
Observation of the merger of two black holes in January by scientists at LIGO confirms a pattern.
Findings
Named GW170104, this signal marks the third confirmed detection of gravitational waves
coming from a binary black hole merger.
It is of great interest to the scientific community that the black holes, having masses nearly 31
times and 19 times the suns mass.
The Indian space-based ASTROSAT mission did a related sensitive search for short duration x-
ray flashes associated with the event and did not detect any.
At LIGO, this time around, the detection has revealed not merely a black-hole merger but also the
alignment of the spins of the black holes.
This can shed light on the way the black holes might have formed. In this event, the spins of the
individual black holes making up the merger are probably not aligned along the same direction.
This supports the theory which says that black holes form independently in a star cluster, then
sink to the centre of the cluster and eventually merge. the detection does not favor the competing
theory according to which binary black holes form in pairs even at the start and eventually
merge.
Einsteins General Theory of Relativity

The observation also supports Einsteins General Theory of Relativity.
Albert Einstein, in his theory of special relativity, determined that the laws of physics are the
same for all non-accelerating observers, and he showed that the speed of light within a vacuum is
the same no matter the speed at which an observer travels.
According to this theory, gravitational waves, unlike light waves, will not disperse as they travel
through space. This, too, has been confirmed by the analysis of the latest signal.
Conclusion
The study had a major Indian contribution and the LIGO-India facility which is making immense
progress will join the club in 2024.
Gravitational waves
Gravitational waves are 'ripples' in the fabric of space-time caused by some of the most violent
and energetic processes in the Universe.
The strongest gravitational waves are produced by catastrophic events such as colliding black
holes, the collapse of stellar cores (supernovae), coalescing neutron stars or white dwarf stars and
the remnants of gravitational radiation created by the birth of the Universe itself.
Historically, scientists have relied primarily on observations with electromagnetic radiation
(visible light, x-rays, radio waves, microwaves, etc.) to learn about and understand objects and
phenomena in the Universe.
But now gravitational waves will open up a new window of study on the Universe, give us a
deeper understanding of these cataclysmic events, and usher in cutting-edge research in physics,
astronomy, and astrophysics.
Gravitational waves carry information about cosmic objects and events that is not carried by
electromagnetic radiation.
Since gravitational waves interact very weakly with matter (unlike electromagnetic radiation),
they travel through the Universe virtually unimpeded giving us a clear view of the gravitational-
wave Universe.
They carry information about their origins that is free of the kinds of distortion or alteration
suffered by electromagnetic radiation as it traverses intergalactic space.
Black holes
A black hole is a place in space where gravity pulls so much that even light can not get out. The
gravity is so strong because matter has been squeezed into a tiny space. This can happen when a
star is dying.
Because no light can get out, people can't see black holes. They are invisible.
Space telescopes with special tools can help find black holes. The special tools can see how stars
that are very close to black holes act differently than other stars.

Discovery of new species in India
Context
Recently, 499 new species have been discovered in India.

Animal Discoveries 2016, New Species and Records, brought out by the Zoological Survey of
India, and Plant Discoveries 2016, by the Botanical Survey of India revealed the fact.
New species discovered
313 animal species and 186 plant species have been discovered.
India is one of the 17 mega-diversity countries and has nearly 6.42% of the global fauna.
Of the recently discovered animal species 258 are invertebrates and 55 vertebrates.
Around 97 are insect species, 27 fish species, 12 species of amphibians, 10 species of
Platyhelminthes, 9 of Crustacea and 6 of reptiles.
There are also 61 species of moths and butterflies and 38 species of beetles.
The new species were discovered in the four biological hotspots of the country viz. the
Himalayas, the Northeast, the Western Ghats and the Andaman and Nicobar Islands.
For the first time number of animal species including protozoa crossed one lakh.
Large number of species has also been updated during the last year.
Along with 186 new plant species, seven new genera, four subspecies and nine new varieties
have also been discovered.
The new plant species were mostly discovered in Western Ghats (17%), followed by the Eastern
Himalayas (15%), the Western Himalayas (13%), the Eastern Ghats (12%) and the west coast (8%).
Zoological Survey of India

The Zoological survey of India is a subordinate organization of the Ministry of Environment and
Forests, Govt. of India.
It was established in 1916 as a national centre for faunistic survey and exploration of the
resources.
The headquarters is at Kolkata.
The main activities of the ZSI are:
Study of the fauna of states
Fauna of conservation areas
Fauna of important ecosystems
Status survey of endangered species
Fauna of India and
Ecological Studies & Environmental impact assessments.
Botanical Survey of India

The Botanical Survey of India (BSI) is the apex research organization under the Ministry of
Environment and Forests, Govt. of India for carrying out taxonomic and floristic studies on wild

plant resources of the country.
It was established in 1890 with the objectives of exploring the plant resources of the country and
identifying plant species with economic virtue.
In 1954, the Government reorganized the BSI
The prime objectives of the BSI are:
1. Undertake intensive floristic surveys and collecting accurate and detailed information on
the occurrence, distribution, ecology and economic utility of plants in the country;
2. collect, identify and distribute materials that may be of use to educational and research
institutions; and
3. to act as the custodian of authentic collections in well planned herbaria and documenting
plant resources in the form of local, district, state and national flora.
Citizen scientists find cold new world near solar system
Context
Professional and citizen astronomers with the NASA-funded Backyard Worlds: Planet 9 project have
made their first significant discovery: a new brown dwarf in the solar neighborhood, WISEA
J110125.95+540052.8
What is Planet 9- The Digital flipbook
This new website, called Backyard Worlds: Planet 9, lets everyone participate in the search by
viewing brief movies made from images captured by NASA's Wide-field Infrared Survey
Explorer (WISE) mission.
It is a free project that lets anyone with a computer with internet connection to browse through
images by NASAs Wide Field Infrared Survey explorer (WISE) spacecraft.
Objects close enough to the earth will tend to jump when multiple images of the same sky spot,
a few years apart, are compared.
Backyard Worlds project has recently helped to identify Brown Dwarf in our solar system.
Few days after the launch of Backyard Worlds website, Bob Fletcher an Australian, identified a
very faint object moving across the WISE images.
This object came to be known as Bobs Dwarf. Studies revealed that it was a brown dwarf.
What is Brown Dwarf?

Brown dwarfs are objects which have a size between that of a giant planet like Jupiter and that of
a small star.
The mass of the brown dwarfs, according to many scientists range from 15 times the mass of
Jupiter to 75 times the mass of Jupiter.
Given that range of masses, the object would not have been able to sustain the fusion of hydrogen
like a regular star; and hence are often termed by scientists as failed stars
They lack enough mass to sustain nuclear fusion but they are hot enough to glow in the infrared
range of the light spectrum
Brown dwarfs spread all across the Milky Way and are useful in studying atmosphere of other
worlds because of their striking similarity with Jupiter.
OXYTOCIN AT A FIX
Context
Soon after the ban for the retailers, the Drug Controller plans to restrict manufacturing of
controversial hormone drug Oxytocin, to Public Sector Undertakings (PSUs).
The Government of India banned retail sale of the hormone in 2014.
As per the orders of High Court, The manufacture and sale of Oxytocin without a license is
cognizable.
Reason for ban
Extreme use of Oxytocin in milch animals and by farmers was causing irreversible hormone
damage.
Use of Oxytocin without proper guidance is leading to early sterility in milch animals at an
unprecedented rate.
One major reason for such excessive misuse of this drug is the absence of robust veterinary
services in India.
The cost of procuring the Oxytocin injections was reported high, in spite of subsidized rates.
Challenges
Despite Oxytocin being a Schedule H drug, it is impossible to prevent its manufacturing at

registered private factories.
But it would be in the interest of the dairy industry and consumers to restrict manufacture and
import of Oxytocin.
What is Oxytocin?
Oxytocin is a hormone that helps the process of maternity labor.

It also helps women and female mammals to produce milk.
It is used by diary owners and farmers to boost milk production and make vegetables look bigger
and fresher.
The drug is often injected into cows and buffaloes twice a day, affecting their health as well of the
humans who consumes their milk.
It opens up an array of physical and psychological effects and is commonly used to facilitate
childbirth.
Oxytocin acts as both hormone and neurotransmitter.
India makes medical achievement-first successful uterine transplants
Context
India witnessed the first uterine transplants of two patients at Galaxy Care Laparoscopy Institute
(GCLI)
The woman from Solapur suffers from congenital uterus absence.
She was fitted with her mothers womb, which was retrieved mainly through laparoscopic or
minimally invasive surgery after a nine-hour operation on May 18.
The other woman from Baroda had a dysfunctional uterus and was suffering from Ashermans
Syndrome (adhesions or internal scar tissues)
About 20 uterine transplant operations have been performed around the world to date.
Post Surgery
Both the patients are in good health.

After internal tests, the doctors found out that the inner lining of the uterus in both cases has
thickened while the blood parameters are within normal range.
Sperms had been taken from the respective husbands of the patients and eight embryos had been
frozen.
There will be a wait for another six months at least before the embryos are implanted in the
transplanted wombs.
The hospital has received more than 80 applications since the transplants.
Ashermans Syndrome
Asherman's syndrome is a condition in which adhesions or scar tissue develops inside the uterus,
sticking the front wall to the back wall of the uterus, obstructing or obliterating the endometrial
cavity where a pregnancy develops.
Ashermans syndrome usually develops after a surgical procedure on the uterus such as a D&C
(Dilatation and curettage), termination of pregnancy, evacuation of retained products of conception
after a miscarriage or retained placenta or more extensive surgery such as a myomectomy
(operation to remove a fibroid).
It is usually made worse if there is an infection, and is much more common than many doctors accept. It is
not always caused by poor surgical technique and is an unfortunate consequence of some procedures.
Neutrino opportunity
Context
Setback to the Neutrino Observatory shows the need to garner public support for scientific research.
What is the issue?
Indias wait to join the elite club of countries undertaking neutrino research suffered a procedural delay
this year when the National Green Tribunal (NGT) suspended the environmental clearance (EC) granted
to the India-based Neutrino Observatory (INO), and ordered it to file a fresh application for clearance.
Proposed INO project
The proposed INO project primarily aims to study atmospheric neutrinos in a 1,300-m deep
cavern in the Bodi West Hills in Theni district, Tamil Nadu.
If completed, the INO would house the largest magnet in the world, four times more massive
than the European Organization for Nuclear Research, CERNs Compact Muon Solenoid (CMS)
detectors magnet.
Neutrinos are tiny particles, almost massless, that travel at near light speeds.
Born from violent astrophysical events such as exploding stars and gamma ray bursts, they are
abundant in the universe, and can move as easily through matter as we move through air.
They are notoriously difficult to track down. If you hold your hand towards the sunlight for one
second, about a billion neutrinos from the sun will pass through it; this is because they are the by-
products of nuclear fusion in the sun.
These little wisps hold the blueprint of nature, which the INO project aims to use to understand
some of the unsolved mysteries of the universe.
Critic of INO project
The INO project also has its critics:
Many argue, among other things, that the explosives used in construction are a threat to the
highly sensitive ecology of the Western Ghats, and that the relevant radiation safety studies for
carrying out the long baseline neutrino experiment in the second phase of INO have not been
done.
The proposed excavation is planned to be carried out by a controlled blast, limiting the impact of
vibrations with the help of computer simulations.
Additionally, building the INO involves constructing an underground lab accessed by a 2 km-
long horizontal access tunnel, resembling a road tunnel. Such tunnels have been built extensively

in India and the relevant studies show that the environmental impact (mainly dust and noise in
the initial phase) have been managed.
In the second phase, the INO project initially had planned to be set up as a far detector for the
Neutrino Factory, which is a proposed particle accelerator. This may not be necessary because of
the discoveries already being made in the field.
Even if you build it, the radiation from the neutrino beam alone on an average would be one in
100 millionth of the natural radiation, which is negligible.
Conclusion
While public apprehensions in such projects are understandable, they also demonstrate that
communication between the scientific community and the public needs to be more basic and democratic.
For a country of young minds, we should generate sufficient public support for such high technology and
science projects.
Scientists conjure up largest virtual universe
Context
Scientists have created the largest-ever virtual universe that simulates the formation galaxies and may
hold clues to the nature of the elusive dark matter that is believed to make up majority of the cosmos.
Details
The gigantic catalogue of about 25 billion virtual galaxies generated from 2 trillion digital
particles using a super computer is being used to calibrate the experiments on board the Euclid
satellite, that will be launched in 2020.
The satellite will investigate the nature of dark matter and dark energy.
The computer code that took three years to complete was executed on the world-leading
machine for only 80 hours, and generated a virtual universe of two trillion macro-particles
representing the dark matter fluid, from which a catalogue of 25 billion virtual galaxies was
extracted, researchers said.
About 95 per cent of the universe is dark. The cosmos consists of 23 per cent of dark matter
and 72 per cent of dark energy.
Dark Matter
Dark matter is a hypothetical type of matter distinct from baryonic matter (ordinary matter such as
protons and neutrons), neutrinos and dark energy.

Dark Energy
In physical cosmology and astronomy, dark energy is an unknown form of energy which is
hypothesized to permeate all of space, tending to accelerate the expansion of the universe.
Dark matter versus dark energy
Although dark matter makes up most of the matter of the universe, it only makes up about a
quarter of the composition. The universe is dominated by dark energy.
After the Big Bang, the universe began expanding outward.
Scientists once thought that it would eventually run out of the energy, slowing down as gravity
pulled the objects inside it together.
But studies of distant supernovae revealed that the universe today is expanding faster than it
was in the past, not slower, indicating that the expansion is accelerating.
This would only be possible if the universe contained enough energy to overcome gravity - dark
energy.
New rifle introduced but army gives second thought
Context
The Ordnance Factory Board (OFB) has developed an indigenous new self-loading 7.62-mm
assault rifle for the Army, which will begin its trails in June.
The first trial of the rifle will happen in the first half of June at the Rifle Factory, Ishapore and
eventually will be put through mainstream field trials.
On the contrary, the Army has been trying to replace the INSAS and had launched an ambitious
global tender for interchangeable barrels capable of firing both 5.56-mm and 7.62-mm-calibre
bullets. But it got cancelled in 2015 as none of the companies could meet the service quality
specifications.
Thus, the Army has now decided to go for 7.62-mm caliber, and fresh General Staff Quality
Requirements (GSQR) has just been issued.
Significance
The rifle weighs 4.5 kg and is fully automatic. It has two firing modes, single shot and automatic,
and has a lethal firing range of 500 meters.

The rifle has a tinny rail, a standard bracket on the gun, both above and below, where various
accessories such as night-vision devices and under-barrel grenade launchers can be attached.
The Ordnance Factory Board

The Ordinance Factory Board is an industrial organization which functions under the
Department of Defence Production of Ministry of Defense, Government of India.
OFB is commonly known as Fourth Arm of Defence" and "Force Behind the Armed Forces".
Its central motive is engaged in research, development, production, testing, marketing and
logistics of a comprehensive product range in the areas of air, land and sea systems.
Every year on 18th of March is celebrated as the Ordnance Factories' Day in India.
OFB comprises forty-one Ordnance Factories, nine Training Institutes, three Regional Marketing
Centers and four Regional Controllerates of Safety, which are spread all across the country.
OFB is the world's largest government-operated production organization, and the oldest
organization run by the Government of India.
The history and development of the Indian Ordnance Factories is directly linked with the British
reign in India.
There were eighteen ordnance factories before India became independent in 1947 and twenty-
three factories have been established after independence.
The Apex Board is headed by the Director General of Ordnance Factories (DGOF), who acts as
the Chairman of the Board (ex officio Secretary to Government of India) and consists of nine
other members who each hold the rank of Additional DGOF.
Ordnance Factories are divided into 5 operating divisions, depending upon the type of the main
products/technologies employed. These are :
Ammunition and Explosives (A&E)

Weapons, Vehicles & Equipment (WV&E)
Materials and Components (M&C)
Armored Vehicles (AV)
Ordnance Equipment Group of Factories (OEF)
Headquarters
Armored Vehicles Headquarters, Chennai (AVHQ)

Ordnance Equipment Factories Headquarters, Kanpur (OEFHQ)
Ordnance Factory Cell, New Delhi (OFBDEL)
Ordnance Factory Cell, Mumbai (OFBMUM)
Ordnance Factories Recruitment Board, Nagpur (OFRB)
Ordnance Factory Board, Kolkata (OFBHQ)
Shift from gelatin to plant based capsules not a medical decision

Context
The Drug Controller General of India(DGCI) approval to shift to cellulose-based capsules has created a
debate with the Drug Technical Board.
DGCI along with Health ministry of India in seeking for vegetable capsules for vegetarian society.
The Drug industry is skeptical of the move as gelatin capsules have been used all over the world for more
than 180 years.
The religious move
Women and Child Development Minister Maneka Gandhi argues that In a country where there are
millions of people, this hurts religious sentiments and many people avoid medicines that are in a capsule
form.
The PHD Chamber of Commerce and Industry in response have cited the cost of the switch, which may
impact accessibility of medicines.
The Industry argues that the cost of manufacturing cellulose capsules is approximately three times and
the cost of raw materials is four times the cost of gelatin capsules.
The government is still looking forward to the change as it will guard the religious sentiments of citizens
on health matters.
The Drug Technical Advisory Board dismissed Gandhis petition on grounds that Drugs are not taken as
choice but are prescribed by doctors to save lives and marking them as vegetarian or non-vegetarian is
not desirable.
The two types of capsules

Capsules are considered better than tablets because it dissolves quickly, meaning the medicine gets into
the body system faster, they are often tasteless, easy to swallow with no extra added ingredients to hold
the pill together.
Gelatin Capsules
These are made through a process that involves boiling down certain parts of animals such as bovine and
pigs. The hoofs, bones, and connective tissue gets boiled down until it is a gel like substance, and then
allowed to cool and expand in cool water. Once the process in finished, all that is left is a tasteless,
odorless, and colorless substance that can be formed into the gel caps.
They are less expensive than their vegetarian counterparts.
Some people have their reasons to not take Gelatin capsules maybe because of their religious affiliation
or because a person is a vegetarian.
Vegetarian Capsules
These are used by forming cellulose, as opposed to animal parts.
Works great as an alternative.
It provides a safe way for people who want to enjoy the benefit of speedy release and tasteless medication
without the guilt of consuming boiled animal parts as the shell of the pill.

NASA to equip ISS with ROSA
Context
NASA plans to test a flexible solar panel on the International Space Station.
Key features
The new flexible solar panel is called Roll-Out Solar Array (ROSA) on the International Space
Station. It reels up to form a compact cylinder and offerssignificant cost savings as well as an
escalation in power for satellites in the future
The International Space Station (ISS) is a space station, or a livable artificial satellite, in low
Earth orbit. Its first component launched into orbit in 1998, and the ISS is now the largest man-
made body in low Earth orbit and can often be seen with bare eyes from Earth
In a nutshell, Solar panels captivate the sunlight as a source of energy to
generate electricity or heat.
Traditional solar panels used today to power satellites are often bulky with hefty panels.
However, the new solar panels are moderately lighter.
The panel rolls up to form a compressed cylinder that may offer an increase in power for
satellites in the future.
The new Roll-Out Solar Array consists of a center wing made of a flexible materialcomprising
photovoltaic cells to convert light into electricity.
In addition, the technology conceivably could be modified to provide solar power in remote
locations. The technology has additional potential applications, such as for communications and
radar antennas and other instruments.


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INDEX

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Demonetization and Agriculture

Demonetization and growth rate

Is governments present policy good enough?

Need for New Investment

In the days of high growth, investment hovered around 33%.

How to Handle the Issues?

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Effectiveness of Banks merger

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Monetary Policy Committee (MPC) and inflation targeting

About Monetary Policy Committee

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Decision Making of MPC

RBI Act, 1934

What is Inflation Targeting?

What is the Need for Inflation Targeting?

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Rationale behind RBIs Decision

Has MPCs been efficient?

RBI and MPC tug of war

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Clash between RBI and the Government

Suggestions for Improvement

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Deteriorating States Fiscal Deficit

Recommendations of 14th Finance commission

Position of the States with regard to FRL

Why the Breaching Happened?

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

Why States Fiscal Deficit Matters?

Privatization of Air India

Privatization of Air India

What is the Need for Privatization?

Created with by ForumIAS.com - The Knowledge Network for Civil Services.

How could the privatization be proceed?

Options available to government

Currently the Union Cabinet is considering outright sale of Air India

Talks of Special Purpose Vehicle (SPV)

Case for privatization

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GIFT City: En-route to a New Commercial hub

Whats the Current Aspect?

What is GIFT City?

(*) GBP Great Britain Pound

India to Remain in the Top 3 Investment Destination

According to United Nations Conference on Trade and Developments (UNCTAD) World

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Post Recession Indias Stand and Opportunities

Cause of the Slow Global Growth

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Result of these Strategies

Hurdles that Stands in Front of India

India has an Opportunity. How?

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What India Needs to Do?

Can Economic Forecasting be called a Science?

Why the Discussion?

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Why Economic Forecasting is being challenged?

None of this is to say that economists can make no useful predictions

India is no longer the fastest-growing