January

25 January 2016

12:05

Chennai Floods
1. Heavy rainfall of greater than 34cm on a single day is unprecedented in last 100 years.
2. More than the rainfall, there are many reasons in urban planning and management for this
havoc.
3. Unregulated growth of real estate, clogging of drains, illegal occupation of flood plains of
rivers all of them can be cited as reasons. Added to this, drainage system was not upgraded to
facilitate the needs of growing city.
4. However, the resilience shown by the Chennai people to fight back the disaster need to be
appreciated.
Division of history
1. Historical periodization of Ancient, Medieval and Modern is based on developments in Europe
and need a rethink.
2. The word modern was used to identify the changes brought in by enlightenment period based
on rationalism, scientism, objective thinking. Earlier periods was described as medieval or dark
age of stagnation, religiosity and superstition.
3. It was seen as a gift of Europe to Humanity during 18th and 20th century with industry,
democracy, capitalism, individualism, secularism etc. as its hallmarks.
4. This entire periodization ignored the developments occurred in Asia, Europe that had wider
implications for the world.
For ex china inventions of compass, printing are totally ignored. Eisenstaedt has clearly expressed
this saying There is only one modernity is a fallacy.
One specific feature that is attributed to modernity is the fast pace of change. It Ignores that, this
change depends on the accumulated things of past. So, History need to be made value neutral.

New technologies to fight climate change

1. Electro mobility Mass production of affordable electric cars
2. Solar roads
3. High quality public transport systems and sustainable urban mobility practices.
Gold Bonds
1. Under this scheme instead of buying physical gold, Indian residents can buy the gold bonds
which will be related to the weight of the gold
2. The bonds will be issued in 10gm, 50 gm, 100gm for a term of five years and 7 years
3. There will be a cap of 500 grams that a person can purchase in a Year
Gold Monetization Scheme
1. The scheme allows a minimum deposit which can be as low as 30 grams by individuals and
even talks of exempting gold deposit from capital gains tax, income tax and wealth tax. See
more at:
2. The prime objective of these plans is to curtail gold import into the country.
3. This will help in reducing the demand for physical gold by shifting a part of the estimated 300
tons of physical bars and coins purchased every year for investment into gold bonds. Since
most of the demand for gold in India is met through imports, this scheme will, ultimately help
in maintaining the countrys current account deficit within sustainable limits.
4. The gold monetization scheme is aimed to mobilize the surplus gold holdings held with Indian
households and institutions as deposits. Under the scheme, gold lying idle with people can
be deposited in banks and generate interest.
5. The return from these deposits is totally tax free. The deposited gold will be melted and make
available for jewelers as raw material so as to restrict the increased dependence of imported
gold.
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gold.
Sovereign Gold Bond Scheme
1. Under the Sovereign Gold Bond Scheme, instead of buying gold in physical form investors can
park their money in bonds which are backed by gold. The bonds will be available both in
demat and paper form. These bonds will be issued in denominations of 5, 10, 50 and 100
grams of gold or other denominations.
2. Sovereign Gold Bond has more or equal advantage against the physical gold. The bond will be
issued by RBI on behalf of the Government of India. The bond would be restricted for sale to
resident Indian entities and the maximum allowable limit is 500 grams per person per year.
3. The government will issue bonds with an appropriate rate of interest and which shall be
payable in terms of grams of gold. Banks/NBFCs/Post offices may be authorized to transact on
these bonds on behalf of the Government for a fee. The bonds will be available in various
denominations and the minimum tenor of the bond could be around 5 to 7 years.
4. These bonds can be used as collateral for loans. The Loan to Value ratio is to be set equal to
ordinary gold loan mandated by the RBI from time to time. They can be easily sold and traded
on exchanges to allow early exits for investors who may so desire. Capital gains tax treatment
will be the same as for physical gold for an individual investor.
5. On maturity, the redemption will be in rupee amount only. The rate of interest on the bonds
will be calculated on the value of the gold at the time of investment. The principal amount of
investment, which is denominated in grams of gold, will be redeemed at the price of gold at
that time. If the price of gold has fallen from the time that the investment was made, or for
any other reason, the depositor will be given an option to roll over the bond for three or more
years.
6. KYC norms will be the same as that for gold.
Factors necessary for low cost of funds

Sustained low inflation

Robust banking

Textile scheme Amended Technology upgradation fund scheme

Government of India cleared amended technology upgradation fund scheme In this apparel,
Garment and technical textiles will get will get 15% of subsidy on capital investment, subject to a
max ceiling of 30 crores over 5 years.
On the other years a 10% subsidy is given on capital investment to a maximum of 20 crores over a
period of five years.
The existing scheme does not cover the spinning sector, where already excessive capacities exist.
Impact
It can improve the employment generation in Textile sector and can make them globally
competitive. Around 1lakh crore rupees of investment is expected.
Technical textiles These are products manufactured for protective clothing, textiles used in
applications such as automotive and Medical field.
Government created incubation centers in this field.
Other proposals by ministry of Textiles

Tax holidays to establish textile parks

Reduction of excise duty on manmade fibers from current 12 percent

To promote cotton, Price deficiency payment system in place of MSP is being tried on a pilot
basis in wardha.
Textile Industry Zero liquid discharge
1. Ministry of environment provided new guidelines prescribing Zero liquid discharge for the
textile processing units emitting greater than 25 kilo liters of water a day.
2. Added to this, textile clusters irrespective of individual unit size shall establish common
effluent treatment plants, irrespective of waste water discharge levels.
Impact
1. It may worst affect the textile sector and changes are capital intensive and can makes our
exports uncompetitive. So, it can be introduced in a phased manner and alternatives such as
marine discharge can be tried out.

January Page 2

Disaster management
1. Army is frequently roped in for various disaster responses in India. It is increasing the
dependency on the armed forces further and their statutory duty to train and nurture the
disaster response system is ignored.
2. According to Disaster management act, 2005 armed forces role is only supportive and major
responsibility is on the shoulders of NDMA, NDRF and state Governments. Barring few states
like Odisha, none of the states really established the responsive units. Their police, fire and
home guards were trained. Guidelines that are put in place for vulnerability studies and source
list of goods for emergency services are not done yet.
3. NDRF on its part also suffers from shoprtfall of staff and Bureaucratic failures. It is not made
functionally independent or accountable for its actions.
To improve disaster response
1. Local teams shall be made available immediately on call.
2. Rules for calling army shall be clearly defined. It must be restricted only to the national
calamities and what constitutes a national calamity shall be clearly defined.
Diplomacy of Business
1. Diplomacy and Business are intricately related to each other and one promotes the interests
of the other. Global Business leaders have access to important leaders and have a strong
networks established. It can provide for a back channel negotiations and engagement. They
defacto emerged as national ambassadors.
2. It is a standard western practice to engage the business along the leaders as these countries
see promoting their business is in the national interest. Commerce divisions in embassies are
exclusively involved with promoting the business interests.
3. The growing associations of business in the form of world economic forum, Boao forum made
the exercise of i8nteraction between Business and Political leaders a regular annual affair.
Business firms are also investing in securing information on geo political risks to invest abroad.
Geo political risk consultancy is a growing field to this extent.
4. In India, though Business makes an important role, the excessive stress on protocol by
Bureaucracy, fear of accusations of cronyism, corruption makes the politics to keep a distance
from business in official engagements. In a market economy, Government shall play its role in
encouraging the business.
Labors love
1. Indian constitution provides for right to form a union and collective bargaining flows from this.
But, this is systematically deprived for the Indian industrial workers. Temporary workers intake
is increasing and they are even employed in core business. In spite of contractual labour
(Regulation and Abolition) act, 1970 prohibits it, weak law enforcement mechanisms are
making it to happen.
2. Today, the bargaining between capital and Labour weakened to such a level that, it is not
more about bargaining for better conditions of work and now having a space for a union itself
became the objective. The amendments proposed can make the situation of labour much
worse and can increase the ease of taking more temporary workers.
China and Eurasian Land mass
Growing relationship between Russia and china can a give a new direction towards the multipolar
world. The recent increase in engagement on both energy and defence front reflects thus. These
include
1. $400bn import deal of gas from Russia
2. S-400 and Su-35 air defence deal
3. Both Russia and China are challenging the hegemony of USA dollar and are trading in local
currencies. China led AIIB and BRICS New development bank are the two institutional
mechanisms which can strengthen this kind of trade in the future. China started investing in
Mega infrastructure projects under belt and road initiative rather on USA bonds.
Nai Manzil
A $50mn World Bank initiative to improve education and training for skill improvement for minority
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A $50mn World Bank initiative to improve education and training for skill improvement for minority
youth to improve their employability.
According to World Bank, minorities have lowest labour market outcomes.
Location too matters for growth
1. The sex ratio differences are influenced both by community and region.
2. Across the nation Christians, Muslims continue to have the higher sex ratio and Jains, Sikhs
record the lowest sex ratio.
3. The states with higher tribal population have a better sex ratio and the southern states too.
4. In Haryana, the sex ratio of all the communities is lower than the national average and in
Kerala it is higher than the national avg.
Question of the day
Discuss the amendments to the labour laws proposed in India. Do you think they are shifting the
balance away from the welfare of the labour? Throw light with recent examples of Industrial unrest.
India and China on Afghanistan
1. India and china are deeply engaging on Afghanistan political transition, regional trade blocs
and counter terrorism. It can be described as a full spectrum dialogue. Latest in these is
security cooperation and intelligence sharing. Growth of new network of institutions after high
level visits between these countries are strongly cementing these relations.
2. Another important feature of these relations in decentralization of policy. Many of the states
in India are engaging directly with Chinese provinces. On economic front, new normal
economy of china can be synergized to the Indias make in India.
Terms to understand
The new normal of china It implies lower growth rates for the Chinese economy.
Kerala liquor case
1. Analysis of Supreme court judgement Kerala bar hotels association vs state of Kerala
2. Kerala Government introduced a new liquor policy prohibiting the open consumption of liquor
in open and restricting the bar licenses only to the five star hotels. It is challenged in the
Supreme court as violative of Right to equality under art14 and Right to freedom of vocation,
trade and business under Art 19(1)(g).
3. Supreme Court already clarified in its previous judgements( Khoday distilleries vs state of
Kerala) that reasonable restrictions can be imposed on Art 19(1)(g) as liquor business is Res
extra commercium ( A thing outside commerce) and Art 47 of the constitution explicitly
states for prohibition of consumption of liquor to improve public health.
4. Supreme Court also clarified that any law that brings in distinctions based on class, shall have
an intelligent differentia and it shall have a rational relation to the objective sought by the law.
The present law appears to fail on this ground. There is a clear class difference to allow people
in five star hotels to consume alcohol and below that not giving access to it.
Jallikattu and animal rights
1. Jallikattu refers to a famous animal taming sport played on Pongal times in the state of Tamil
Nadu. Supreme Court banned it citing cruelty to animals and loss of precious human life. The
political parties in TN argue for revival of the sport through legislative route on the pretext of
culture, tradition and pride of Tamil Nadu.
2. Constitutionally, Art 51(g) imposes a duty on the citizens for treating the animals with
compassion and Art 21 prohibits any disturbance to the environment including animals,
considering them as essential for human life. Animal welfare board clearly reported the cruelty
met by an animal and how it is making bulls as performing animals.
3. On one side the world is moving towards the right to life for animals and our attempt to
legitimize the heinous sport is a retrogressive step.
Terror attack on India
1. There is a repeated pattern of attacks on India, when India and Pakistan start a constructive
engagement. The present attack is no different and is meant to derail the ongoing peace
process. If talks are halted on the pre text of terrorism, it will be directly playing in to their
hands and giving a veto on dialogue to these fringe elements.
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hands and giving a veto on dialogue to these fringe elements.

2. The ongoing process to solve the issues such as visas, sir creek, CBMs on LOC shall continue
and more complex issues can be slowly solved.
Oil resources, Terrorism, Climate change
1. Competition for oil resources, failed states, greed of MNC is creating an instability and giving
an impetus for terrorism. Growth of Boko Haram in Niger delta is an example of this. The
wealth generated is also used for terror funding and Islamic States major resources are from
trade in Syrian oil and Saudi Arabia is long accused of funding terror form its oil wealth.
2. The Paris conference pushes the countries away from fossil fuels and towards renewables. As
worlds reliance on oil decreases for their energy needs, oil economies slow down and
terrorism too is expected to follow the line.
Terrorist attacks
1. Pathankot terror and attack on Indian consulate at the Mazar-i-Sharif shows the desperation
of the non-state actors and dissident elements in the Pakistan military establishment to derail
the dialogue process. India wisely differentiated between the Pakistan Government and nonstate actors.
2. In this context, if history is observed, the talks and terrorism almost have gone together since
the composite dialogue started in 1997. It also led to the suspension of dialogue and only to
be resumed later. It had given a veto to the fringe elements on the dialogue process.
3. There is also a continuing myth that Pakistans military is a monolith. But, there is an army
with in army who support the jihadi elements. Pakistan is also victim of such attacks.
Pakistans democratic forces shall get strengthened to counter these elements.
What India shall do
1. Pakistan Government shall be engaged not just bilaterally but multilaterally and shall push for
bringing terror elements to justice.
2. People of both the sides shall be taken in to confidence
3. National security doctrine and national security strategy It provides for a stability and
permanency to the strategy, in spite of change in government of the day. Existing Adhocism
made the security response is linked to the likings and dislikings of the Government of the
day. The intelligence systems shall be well coordinate with cohesive command and control
structure. It also shall cover non-state actors who are becoming a major threat to the
sovereignty across the world.
Non Alignment to Multi alignment
Non alignment served Indias interest during the cold war era and it generated a climate of trust for
India and made it acceptable to the world. As the situations changed, India is also shifting to
multilateralism engaging all the major powers to serve its national interests. Recent engagements of
India are a typical example of this. It shows the maturity, vision of our diplomatic establishment to
accommodate divergent interests and find constructive solutions to the pending issues.
India USA
Defence Minister Manohar Panikkars visit to USA
1. Progress is made on CISMOA, LSA and it can take forward the DTTI (defence technology and
trade initiative to a new level.
2. C-17 Boeing P 8I maritime patrol aircraft, c-17 Globemaster III airlift aircraft, M777
ultralight howitzers.
3. Russia visit
Energy India got 10% of stake in Russian oil company Rosneft and defence deals are signed for
Kamov 226 T , MI-17 helicopters, triumph air missile defence system. Kamov 226T will be
manufactured in India with an Indian partner.
India Japan
Prime Minister Shinzo Abe visit to India
1. The most important part is Japans willingness to cooperate on peaceful nuclear energy and to
subtle acknowledgement of India as a reliable and trustworthy nuclear power.
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subtle acknowledgement of India as a reliable and trustworthy nuclear power.

2. Both the countries also issued a joint statement on emerging threats in Indo pacific and need
to maintain freedom of navigation.
3. High speed rail between Mumbai and Ahmedabad has received a soft loan from Japan.
India- Pakistan
1. PM Lahore visit developed a necessary good will but India shall not be complacent and its
security establishment shall be put to alert. It is very much stressed by the Prime minister in
the combined commanders conference on INS Vikramaditya.
2. Indias strategy to isolate the Pakistan on the international forums on terrorism is also not very
assuring. America considers Pakistan as an important partner in south Asian strategy and for
stabilization of Afghanistan. Recent supply of F16 jets, extension of coalition fund, joint
statement during the Sharifs visit to USA on Jammu and Kashmir are a reflection of this.
Chinas liberal financing under its CPEC also made it financially strong. So, an assertive Pakistan
with a strong military can be more dangerous to Indias national security.
Japan Russia relations
Kuril Islands
1. The island chain known as the Kurils stretches north across the Pacific Ocean from the
Japanese island of Hokkaido to the southern tip of Russias Kamchatka Peninsula.
2. Four islands which Russia calls the Southern Kurils and Japan calls the Northern Territories
are the subject of a 60-year-old dispute between the two nations.
3. They are Kunashir (known in Japanese as Kunashiri), Iturup (Etorofu), Shikotan and the rocky
Habomai islets.
4. Because of the dispute, Russia and Japan have not yet signed a peace treaty to end World War
II.
History
1. Japanese people migrated north to the islands in the 18th and 19th century, including
members of Hokkaidos minority Ainu community.
2. In 1855, Russia and Japan signed the Treaty of Shimoda, which gave Japan ownership of the
four southern islands and Russia ownership of everything to the north.
3. Communities developed on three of the islands and by the time World War II began, there
were 17,000 Japanese residents.
4. Russia took control of the islands at the end of the war, and by 1949 it had deported all
residents to Japan.
5. Under the 1951 San Francisco Peace Treaty, signed between the Allies and Japan, Japan
renounced all right, title and claim to the Kuril Islands, as well as over other possessions.
6. But this resolved nothing, because Russia did not sign the treaty and the Japanese government
has never recognised the four islands as part of the Kuril chain.
7. In 1956, the Japan-Soviet Joint Declaration restored diplomatic ties between the two nations,
but a formal peace deal remained out of reach because of the territorial dispute.
8. At the time, Russia proposed returning the two islands closest to Japan, a deal Japan rejected,
in part because the two islands represent only 7% of the land in question.
9. Since then, the dispute has remained unresolved.
Natural resources
1. A 30,000-strong Russian community now lives on the islands and there is also a Russian
military presence on Iturup.
2. In early August 2006, the Russian government backed a 17bn-rouble ($630m) plan to develop
the entire Kuril island chain, including improving energy and transport infrastructure.
3. Chances of an early resolution to the dispute look slim.
4. Vladimir Putin indicated in 2004 that the offer of a return of the two southernmost islands was
still on the table, but showed no signs of relinquishing the two larger islands.
5. Natural resources are part of the reason.
6. The islands are surrounded by rich fishing grounds and are thought to have offshore reserves
of oil and gas. Rare rhenium and thorium deposits have been found on the Kudriavy volcano
on Iturup.
January Page 6

on Iturup.
7. Tourism is also a potential source of income, as the islands have several volcanoes and a
variety of birdlife.
8. Meanwhile, the Japanese government has worked to maintain public awareness of the
dispute.
9. Periodic visits by relatives of those displaced after the war to pray before their ancestral
shrines have made the issue a highly emotive one for the Japanese public.
Rail regulatory authority
1. The rail development authority will be created as an independent authority by executive
resolution, funded through annual railway budget.
Functions
1. Tariff regulator
2. Level playing field for investors
Note Cross subsidization of passenger traffic has increased the costs of the freight traffic and
reduced the share of railways in freight traffic from 89% in 50-51 to 36% in 07-08
BCCI Lodha committee report
Separate notes will be provided.
JANUARY 5, 2016
BCCI-Lodha committee
The key proposals that can reduce the credibility deficit in Indian cricket management include
1. Legalizing betting and effectively regulating it
2. Keeping politicians and bureaucrats out of the governing council
3. Fixed terms . cooling off period for members
4. To bring BCCI under the ambit of RTI
Colombo reconciliation
1. Ongoing constitutional exercise is 4th similar exercise in srilanka since its independence.
Earlier constitutions built a unitary, majoritarian state that led the nation in to a ethnic fight.
2. Every time faith in constitutionalism is often accompanied by the skepticism in constitutional
arrangements and processes. It is majorly due to its failure to implement the constitutional
guarantees given to minorities.
3. 1987 Indo srilanka peace accord and the 13th constitutional amendment and many other
initiatives were started and abandoned very soon.
Now, the challenges before the new constitution assembly include
1. Democratisation of its institutions It can be better achieved if executive presidency is
abolished and a parliamentary democracy is restored.
2. Constitutional safeguards to minorities
3. Building a federation that will satisfy the Tamil minorities, muslims, Tamils of Indian origin.
Green safeguards
The economic goals cannot be achieved by endangering the environment and society. Short term
economic gains are very minimal if compared with loss incurred by long-term damages. So,
international lending agencies are applying severe environmental and social safeguards to reduce
the damages the projects can cause. Certain recommendations on improving these safeguards
include
1. Safeguards must be legally binding and compliance should be enforceable. Flexibilities to
speed up the project can weaken the adoption of safeguards. ( exceptions shall be kept to
minimum)
2. International policy should govern safeguards, rather than national systems. ( National
systems often get influenced by the domestic pressures for dilution)
3. Implementation and oversight need strengthening
4. Efficiency of the processes shall be improved to a great deal.
The hot Saudi Iran cold war

January Page 7

Riyadh has the support of sunni monarchs and Iran has the support of Iraq, Syria and Hezbollah of
Lebanon. All the countries practice institutionalised segregation of their minorities.
After the execution of sheikh nimr , a shia cleric by Saudi Arabia led to a reactionary protests and
attacks on Saudi embassy in Iran. Consequent to this, Saudi severed its diplomatic relations with
Iran. Kuwait, Bahrain, Sudan followed the same line making it a full blown diplomatic crisis.
Iran nuclear deal and the present crisis
Saudi Arabia, a close ally of USA is critical of Iran nuclear deal and Americas handling of Syrian crisis.
In spite of its repeated requests for war on Syria, America choose diplomatic path to defuse the
crisis. It also fears the nuclear deal will further strength and legitimacy to Iran and brings it in to the
diplomatic high table on west Asian issues.
Impact on Syria
Pragmatically, USA believes that Iran has a strong influence in Syria and no solution can be arrived
without Irans involvement. On the other hand, Saudi actively supports Assad opponents in Syria. In
the ongoing multilateral peace process both Iran and Saudi Arabia are the members. USA urged the
both not to derail the peace process.
India- Pakistan relations Nirupama rao
1. India Pakistan relations are always haunted by the past filled with terrorist attacks and war.
Pakistani military establishment havent come out of the war losses and India cannot forget
the terrorist attacks on its soil. Every time diplomatic engagement is always invited with terror.
So, diplomacy has more become a white flag meeting rather than a sustained effort. In this
context, India shall understand deeply how a multi headed Pakistan shall be handled.
2. Display of strength and flexibility are the signs of a mature grown up nation. At the same time,
India shall protect its vital interests. Diplomacy shall take an active role over and all the issues
shall be addressed in a gradual manner. A peaceful relationship is in the interest of both the
nations. It mean channels of dialogue shall be kept open and vigilant intelligence mechanism
on Pakistan moves shall also be built.
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on Pakistan moves shall also be built.

3. Pathankot again exposed our systemic weakness in handling a crisis. National preparedness in
terms of intelligence assessments, interagency coordination shall be improved. So, a war room
approach with clear command and control response away from media hysteria can be a
solution.
Nepal way forward
Nepal logjam continues with Government offering its 3point formula and Madhesis enlarging their
demands further. Meanwhile, supplies are restored to Nepal to near normal. Still, it continues to
haunt Indias neighborhood first policy.
The three point formula proposed by the Government include
1. Reorganisation of provinces will be undertaken in three months on the basis of consensus
through political mechanism.
2. Participation in state organs on the basis of proportionate inclusiveness and delineation of the
electoral constituencies.
3. Citizenship issues will be addressed through negotiations and appropriate notification.
India welcomed these steps as positive to end the impasse. In spite of this, the mistrust created
continues. Nepali nationalism is more getting reflected through Anti Indianism. China card is freely
flaunted by the important functionaries in the Government. In this scenario, India shall improve its
engagement, improve its constituency and shall give greater political content to its engagement.
West Asias crisis
Terrorism, insurgency, sectarian crisis together will define the present day crisis in west Asia. The
sectarian violence after the execution of Nimr al Nimr again led to a deep diplomatic crisis in west
Asia fueling the tensions between Iran and Saudi Arabia.
It appears to be a cautious move by the Saudi Al saud regime to consolidate its control over its own
people and to gain support from other sunni regimes.
The reasons include
1. Decreasing oil prices creating a strain on welfare projects in Saudi Arabia and no room left for
populistic measures to control dissent. It is resorting to extreme majoritarianism and
strengthening its hardline Wahhabi credentials to tide over social and economic difficulties.
2. Iran Saudi Arabia tensions reintegration of Iran in to global economy after nuclear pact,
Shia dominant regime in Iraq, Inclusion of Iran in Syria peace process, Iran growing as a
competitor in global oil market and rise of Tehran as a legitimate power are against to the
interests of Saudi Arabia. It tried to derail the Iran nuclear deal and wanted to expose the role
of Iran in Yemen, Syria.
Iran Hardliners are also against to Iran nuclear deal. Execution of Nimr Al Nimr led to the attacks,
hooliganism of Saudi embassy has escalated the tension in to a deep diplomatic crisis. Iran has
directly played in to the hands of Saudi Arabia and its plans to rise sectarianism.
It may worse impact the ongoing Syrian peace process, fight against Islamic State, stability in Iraq.
Shyam Benegal committee
The committee will examine the rules of film certification. It has no references to recommend on
appointment of members to CBFC.
CBFC is largely controlled by Ministry of I&B and most of its members are political appointees. They
see film certification as equivalent to censorship and the victim is artistic expression. As like in USA,
film certification in India shall be self-regulated through trade association of film industry.
WTO
India will prevent Non issues such as global value chains, digital economy, labour and climate related
trade in to the WTO deliberations and negotiations. It will raise their relevance and lack of consensus
among the members.
Superior standards in developed countries in these areas can induce them to impose the non-tariff
barriers. Along with this, India will push for Trade facilitation agreement for services and
Investments both at WTO and regional trade pacts.
MGNREGA
The MGNREGA is a demand driven scheme and flexibility in flow of funds is necessary to meet the
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The MGNREGA is a demand driven scheme and flexibility in flow of funds is necessary to meet the
growing demand in the light of existing drought. Delay in release of funds is increasing the loss of
sheen of the program that is the last resort for rural distress.
Infrastructure
Public sector shall become the driver of growth engine in conditions of slow economy. Low
commodity prices provides a room for the Government to increase its expenditure on the long-term
infrastructure. Fiscal deficit can be overlooked for creating more jobs along with durable public
assets.
The major challenge is Business as usual approach and increasing time and cost overruns of the
projects. The project Monitoring group in cabinet secretariat is almost nonfunctional. Effectiveness
of implementation with accountability is the need of the hour.

China currency devaluation

Reasons
1. Falling exports
It mean the value of investments in Chinese economy will erode fast.
Impact
1. Fears of competitive devaluation of currency plagued the market.
2. Markets fear that Chinas economic slowdown could be worse than anticipated.
3. Commodities prices can fall further as china is an important market for them. Brent crude
came below the $33 mark. As Gold man sachs predicted, fall below $20/barrel by 2020
appears certain now.
4. Investors are moving to the risk off mood and shifting to the USA and other stable markets in
the west. (Flight of capital from emerging economies)
Fall in crude prices
1. Fears of slowdown in Chinese economy.
2. Peak production and massive stockpiles of crude and refined products.
DBT Direct Benefits transfer
The two major issues with subsidies in India are Targeting and leakages
1. Mis targeting refers to benefits slipping away from the poor to the high income groups.
2. Leakages make the benefits not reaching the intended beneficiaries due to corruption,
pilferage etc.
JAM trinity Jandhan yojna, Aadhar, Mobil number can collectively address the issue.
Examples
DBT directly transfers the cash to the accounts of the beneficiaries, it decreases the role of
middlemen. The advantage is clearly visible in MGNREGA.
Kerosene subsidies suffered huge leakages and now the issue is addressed through DBT.
Ford foundation Add on to civil society
Ford foundation was brought under prior permission category on the allegations of supporting anti
India activities and citing national security. It mean MHA clearance is necessary for any transfer to
any bank account in India by the foundation.
Now, Ford foundation agreed to register under FEMA act,1999 facilitating the Government to ease
restrictions on the agency.
Iran Saudi Arabia
Iran accuses Saudi Arabia of bombing its embassy in Yemen capital, Sanaa. It banned imports from
Saudi Arabia and prohibited its citizens from visiting Makkah further worsening the diplomatic crisis.
Death of Mufti Mohammed Sayeed
Chief Minister of J&K passed away leaving behind a legacy of peace, stability to the region. Today,
Kashmir is again at cross roads with rise in militancy, natural disasters.
His achievements and failures as chief minister

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1st tenure 2002-05

1. Prime Minister Vajpayees Insaniyat doctrine was accompanied by Sayeeds healing touch
policy. (It refers to a three pronged initiative Talks with Pakistan and Hurriyat separately,
ceasefire negotiations with militant groups, humanitarian political approach to the valley and
pandits Actions included were inviting pandits to resettle in the valley, reduction of military
and para military forces in the valley, improving health care and education,
2. Rehabilitation to militants who left the arms etc)
3. Decentralization of powers to Leh Ladakh and Kargil hill councils are established
4. Opening of roads and trade across LOC
2nd Tenure 2014-till death
1. Rise in youth unrest
2. Mismanagement of disaster
3. Release of hardliners such as masrath alam increased tensions in the valley.
4. Islamic State and its salafist ideology is penetrating in the valley
5. Revival of Hurriyat
North Korea Nuclear challenge
North Korea recent testing of Hydrogen bomb (as claimed by it) has created disturbance to the
peace and stability in East Asia. USA described it as a serious national security challenge, South
Korea called it as an unpardonable provocation and Japan as a serious threat to its National security.
Close ally if North Korea, China also condemned the tests.
What can be the reasons?
1. Kim Jong un could be tightening his grip on the state
2. North Korea might be looking for an Iran like deal
3. He might be sending a message to south Korea about the military preparedness
Above all, it shows the failure of Nuclear diplomacy and six party talks with North Korea. The Khan
network of Pakistan and its nuclear sales are throwing their challenge now.
The present challenge is there is no other channel to engage Kim Jong un other than China. Even,
china appears to be losing its influence on him as he wants to shun the china ally tag. Added to this,
fears where tentacles of Khan nuclear business is spread still looms large. Saudi Arabia is also high on
the radar.
Reforms Amartya Sen pointers for the exam. Useful to quote in support of our answer.
1. A successful market economy is necessary for fast growth and development
2. Market economy does well for industries and agriculture with few exceptions, it does not do
well for education and health care.
3. India has lot of asymmetric information in the operation of markets
4. India is the only country which is trying to achieve universal health care and education through
private sector.
5. Across the world, political right or left have an important role for the state in education and
health care.
6. Development is not only a matter of financial investment, it is also about the building of
human capabilities. These capabilities can be built only through Education and health care.
Syria peace plan
USA also took a common ground with Russia in protection of state Institutions in Syria and to give a
smooth transition to the Nation.
It is feared that recent escalation of tensions between Iran and Saudi Arabia can derail the peace
process.
International Syria support group both Iran and Saudi Arabia are the members said that, they
believe its important to move forward is a welcome sign.
January 8
Council for Trade development and promotion
In the spirit of cooperative and competitive federation, council for trade development promotion is
created in partnership with states.
January Page 11

created in partnership with states.

Objective is to encourage states to reform the regulatory framework to attract the better
investments and increase the exports further.
Issues raised at the first meeting
1. Infrastructure related issues
2. Delay in refund of state levies
3. Improving the last mile connectivity of major exporting hubs to ICDs/Ports
China economic turmoil Indian challenge
1. India has a spiraling trade deficit with china and it is to the tune of $48bn. Devaluation of the
Yuan can lead to much cheaper imports from china and widening of deficit further.
2. India wants to fill the trade deficit with increasing flow of Chinese investments and resultant
rise in exports. But, the flow of investments are only to the tune of 1bn. China is stalling Indian
imports using non-tariff barriers.
3. It can adversely impact the Make in India program of the Prime minister.
Way out for India
1. Global economic scenario is not very healthy and it has to spur the domestic demand.
Global Impact
1. Protective measures, competitive devaluation will make the entire global trade to shrunk, to
the advantage of none.
2. There are accelerating outflows of forex from Chinese economy and it will deepen the crisis
further.
Chinas new normal china is entering in to a phase of low growth and it is often described it as a
new normal. In this phase, it aims shift from low cost, export led growth to sustainable domestic
consumption and services.

Jallikattu
Central Government has issued a notification to allow Jallikattu in TN, Bullock cart races in MH and
overturned the 2011 notification that prohibited using these animals as performing animals. Here
exception is made only to the traditional sports on cultural context and the general prohibition on
using bulls, bears, panthers and other wild animals as performing animals still continues.
Save security from Establishment
1. India, in spite of being a victim of constant terror from non-state actors, still it do not have a
comprehensive strategy to fight the same. Recent Pathankot incident exposes the lapses again
from processing intelligence alerts to neutralizing of terrorists on the ground. In this context,
issues of accountability, prevention of future attacks need an urgent attention. Political misuse
of state organs and lack of transparency made intelligence agencies ineffective over a period
of time.
2. India need a well thought out National security doctrine, National security strategy and an
independent federal commission of accountability on security matters.
3. National security doctrine shall be enacted by the parliament firmly based on constitutional
values and it shall prevent successive Government s to define and redefine the security
architecture for their whims and fancies.
4. National security strategy will outlines the protocol of action, command and control structure
and provides for a quick decision making and swift action in the times attacks.
5. Federal commisison on accountability will fix the responsibility for failures and excesses by
security agencies. It shall function totally independent from the Government of the day and be
answerable to the parliament.
Srilanka constitution
Terms to Know in Srilankan story
The 13th amendment was introduced to create provincial councils as a follow up action on Indo-Sri
Lanka Agreement of 1987 to devolve powers to the Tamil majority north and east.
India Srilanka peace accord It was signed by Prime minister of India Rajiv Gandhi and President of
January Page 12

India Srilanka peace accord It was signed by Prime minister of India Rajiv Gandhi and President of
Sri Lanka J.R Jayawardhane. The three pillars of the accord include
1. More devolution of powers to provinces
2. Srilankan army moving back to barracks from Northern and eastern areas
3. Tamils rebels shall surrender their weapons.
Ongoing constitutional redrafting in Srilanka can be successful only if it can clearly reassure the
rights of the minorities and can ensure their self-governance. So, a federal spirit in a unitary system
is only the way out. In spite of 13th AA, non-transfer of the powers on land and police to the
provinces is a major issue between Tamil groups and parties.
USA gun control Reform
An executive action is announced in USA to control the firearms in USA. It involves
1. background checks for gun ownership
2. increasing funding for federal agencies enforcing gun laws
3. improvement of treatment of mental health conditions nationwide
4. Development of Smart gun technology to prevent accidental firearm deaths.
January 9
Playing games with taxmen
1. Transfer Price: The price at which divisions of a company transact with each other.
Transactions may include the trade of supplies or labor between departments. Transfer prices
are used when individual entities of a larger multi-entity firm are treated and measured as
separately run entities. It may include royalty payments, interest payments or licensing fee
paid by the subsidiary to the parent company.
2. Index / Report to quote in answer/Essay
a. Report on Illicit financial flows by global financial integrity
b. Report on illicit financial flows by global financial integrity says that $510 bn of black
money flew out of India from 2004 to 2013. It can be of many proportions higher if it
includes wrong invoicing of trade in services (not goods), cash transactions and hawala
transactions. Most of the (83.4%) of illicit financial flows is due to trade related wrong
invoicing.
3. MNC account for major illicit flight of capital. Transfer pricing is the convenient route for this
and capital is shifted from countries with tax rates to low or Zero tax rates (often described as
tax heavens). For Ex- Mauritius, Bermuda, Luxemburg etc. EU estimates the tax losses across
the world are to the tune of $1.1tn.
4. This capital flew out from developing countries flies back to them as investment with
Government offering too many subsidies and benefits. This gives it a dual advantage. No tax
and subsidies to the same capital out bound and coming back. This cycle repeats further. So, a
tax regime is necessary to ensure revenue for every country while avoiding double taxation.
5. Here there is a fundamental difference between UN and OECD model of taxation. UN model
favored taxing income at the source country. (Source of income shall be the basis for taxation.)
OECD countries residents of a country would be taxed on their worldwide income, while
nonresidents would be taxed only on their domestic income. (Residence as a criteria where
the management of a company sits). It provides for the tax heavens and transfer pricing
mechanism to form a deadly combination for tax evasion. Indian double taxation avoidance
agreements are based on OECD model.
6. In India, the need of the hour is to curb the illicit flight of the capital and reforming the tax
laws appropriately.
No tax on seed funding
1. Seed funding refers to the funds invested in a start up by an investor. Finance act of 2013
introduced a tax on seed capital provided to startups by investors.
2. In India, Funds invested in startups are treated as income of the startup and taxed. It mean
30% of the money is taken by the Government from every domestic investment. Profit earned
by the investor is taxed again creating a double taxation cycle. The same do not apply for a
foreign investor. He ends paying only capital gains tax. It is making the startups to relocate to
January Page 13

foreign investor. He ends paying only capital gains tax. It is making the startups to relocate to
the countries such as Singapore.
LPG Subsidy
1. Government of India recently announced for withdrawal of subsidy on LPG gas cylinders, if
either of the partners wife or husband crosses an income of 10lakhs per annum on the basis
of self-declaration. It intends to transfer these benefits to the poor to provide clean energy.
2. Income of the individuals is not verified but it shall be self-declared and it depends solely on
the integrity of the people. On the other hand, Government would have considered high value
asset ownership as a criteria for the same. Information is largely available based on the census
data.
Digital Transformation
Organisations are fast changing and work flows are getting redefined with changing technology. It is
posing new challenges to the organization to adapt, hire, and train the human resources. Life cycle
of the organization is also coming down rapidly and it is reduced from 60 yrs to 15 yrs. over 50 yrs.
Srilanka
Refer to the last week notes.

January 11
Economy Improving Investment Climate
1. IMF projections for global economic growth for 2016 stand at 3.6 with advanced economies
growing at 2.2 and developing economies projected to grow at 4.5%. Among the BRICS bloc
India appears to be rightly placed with strong macroeconomic fundamentals.
2. Globally, the factors that can influence the global demand include fall in commodity prices,
US Fed interest rates, Chinas economic situation. Its recent devaluation of currency can have
spiraling impact on global economy.
3. In India, economic growth though projected at 7-7.5% it has its own challenges.
4. Agriculture is stagnant, rural demand may not increase in the coming year. Falling exports, lack
of private investment is particularly worrisome. It shall be noted that bulk of public investment
comes from the public sector enterprises. So, improving the investment climate and
confidence of the investors by fast pacing the reforms is the need of the hour.
5. On fiscal front, Seventh pay commission can increase the burden on fiscal consolidation path,
but the impact will be less than 1%. It will boost the demand in the economy. The major
challenge is how to achieve growth by not off tracking from the fiscal consolidation path.
Afghanistan Pakistan talks
Analysis more hype than hope
1. The talks are guided and guaranteed by Pakistan, which has an interests of its own in
Afghanistan. The previous attempts by Karzai Government to start negotiations with Taliban
are thwarted by Pakistan itself.
2. The objectives of The Taliban and Afghan Government are at contradicting each other- Taliban
wants the exit of foreign forces, power sharing, constitutional changes establishing the
supremacy of the Sharia, and the reestablishment of the Islamic Emirate of Afghanistan,
reversing the gains of the Afghan people over the past 14 years. Its immediate objectives are
seeking the release of Taliban prisoners, ending targeted sanctions.
3. Not all factions of the Taliban are committed to peace.
4. Violence and talks both cannot exist together simultaneously.
Organisational Struggles
1. Inter-tribal conflict The southern stronghold of Taliban is no more under its control and the
major reason is ethnically divided Taliban.
2. Leadership crisis- After the death of Mullah Omar and killing of his son, many factions in
Taliban are not willing to accept the leadership of Mullah Akhtar Mansour.
Indias stand
1. The official stand of the India is that it is supportive of the peace process provided it brings
January Page 14

1. The official stand of the India is that it is supportive of the peace process provided it brings
genuine peace and internationally accepted red lines.
2. In 2010, former President Hamid Karzai had listed these red lines as an acceptance of the
Afghan Constitution; peace or a ceasefire as a pre-condition for talks; and following an
Afghan owned, Afghan-led process. These all are violated in the present talks.
China USA
1. China has expanded its second artillery force Institution that controls a chinas nuclear forces
to a full pledged service as PLA rocket force. It makes china only the country to have first
independent service with land, sea, air nuclear forces in the world.
2. China also has established the worlds near complete ballistic missile strike system with both
nuclear and conventional missiles. It can challenge the superiority of USA on Land and sea.
Clean Air
1. Recent initiatives that can have significant impact on quality of air in the urban areas include
Governments early shift to the EURO VI norms. Various committees such as Saumitra
Choudhury committee on auto fuel vision and policy 2025, IIT, Delhi recommended for
revision of fuel standard and influencing the passenger behaviour to decrease the emissions.
2. We still need to address the issues of public transport, population of vehicles on the roads,
poor civic governance to take the quality of air to the next level.
Odd Even formula Trying and testing the car formula
1. National Air quality index shows that Odd even formula for use of domestic cars in Delhi had a
little impact on the pollution levels. It is because 80% of the pollution in the city comes from
Trucks and two wheelers and cars only form 20% of Particulate matter less than 2.5 M
concentration.
2. Other actions such as vacuum cleaning of roads, temporary controls on industry and
construction can help. However, implementation of scheme showed the community
organization abilities of the Government.
Economy Make in India Defence procurement
1. Government made changes to the defence procurement procedures to boost Make in India.
These include
2. DPP 2016 will have a new category indigenously designed, developed and manufactured
category. Mandatory 40% domestic content for a domestic design or a mandatory local
content of 60% if design is not Indian.
3. Department of defence production will fund private R&D
4. Offset policy is amended and the bar is raised from 300cr to 2000cr ( 30% of contracts value
shall be manufactured in India)
5. In the bidding process, additional weight is given to the performance rather than relying only
on lowest bidder.
January 12
Jallikattu
1. Central Government has issued a notification to allow Jallikattu in TN, Bullock cart races in MH
and overturned the 2011 notification that prohibited using these animals as performing
animals. Here exception is made only to the traditional sports on cultural context and the
general prohibition on using bulls, bears, panthers and other wild animals as performing
animals still continues. Few Safeguards are also issued by the Government notification for
avoiding the cruelty to animals during jallikattu and Bullock cart races.
2. Supreme Court of India in 2014 upheld the ban imposed by 2011 order on using the animals
for performing purposes. It described Jallikattu as inherently cruel and violates prevention of
cruelty to animals act 1960.
3. Animal welfare Board of India filed a petition in Supreme Court on the notification issued by its
ministry. Supreme Court is in resonance with the argument that cruel treatment of animals
cant be a matter of human festivity in 21st century.
NFSA Leaving no poor person behind
January Page 15

NFSA Leaving no poor person behind

NFSA beneficiary list is too wide and most inclusive than the BPL list and is more reliable. It has
excluded a small percentage of population from the scheme. This along with the PDS reforms can
improve the food security situation in the country.
In this context the following points can be noted
1. If a program has only few people exempted from beneficiaries, the operational and
administrative cost of exclusion will be very higher compared to the cost involved in making
them as beneficiaries.
2. Exclusionary errors can lead to loss of genuine beneficiaries from the net.
3. Most of the exclusionaries will be from middle class and their exclusion decreases pressure on
the system to deliver.
In this context, instead of choosing minimal exclusionary program Government can shift to
universalization.
Budget waning lustre
1. In India the focus on Budget as an annual policy exercise is decreasing and continuous policy
change and midyear announcements are increasing. It appears that, India is shifting to a longterm fiscal policy rather than on annual budget. According to former cabinet secy, TSR
Subramanian, it is reducing the budget to just an annual budget document.
2. The annual budgets are often criticized as momentum breakers as Government action
decreases in February as all Government departments shift to budget mode. In this context,
new approach is said to be better in imparting economic stability and to ensure continuity.
Added to this, as parliament sits often, in every session a quarterly account statement can be
submitted instead of making it an annual exercise.
January 13
Talks with Pakistan To Talk or not to Talk
1. Indian policy towards Pakistan seems to be a lack of coherence with oscillations between talks
and no talks. After Pathankot incidents again the choice between talks and no talks is
discussed. In this context, it shall be said that the only way forward to achieve progress is
dialogue. The past experience proves the same.
2. If history is observed, during VP Singh era, foreign secy level talks were first initiated on
confidence building measures. Prime Minister IK Gujral, kept it in a eight point framework
composite dialogue. Since then, by and large India Pakistan talks are guided by this framework.
Incremental progress was also made on many issues but the outcomes of one matter is linked
to progress on others. Typically to Kashmir by Pakistan.
3. Since 2008, changes in Pakistan domestic policy against terrorism, Prime minister Modis
Neighborhood first policy, USA withdrawal from Afghanistan, Robust Chinese investments in
Pakistan created a new environment and hope for progress on talks. The major challenge in
this scenario is managing the rising expectations. So, new round of talks between NSA and
Foreign Secy are initiated away front the media lens.
4. Indias excessive focus on Pakistan is distracting it from healthy economic engagement,
limiting it to south Asia and restricting its wider diplomatic engagement. So, the way forward is
to maintain tranquil at the borders and to continue talks without arbitrary redlines. It shall be
a win win situation for both the nations. Stable, secure and prosperous Pakistan is in Indias
interest.
Canada India FTA Challenges
Trade between India Canada stands around $6bn and investments from Canada to India are
around $586 mn way below their potential.
The FTA that intends to take forward is temporarily halted due to disagreements. These include
1. BIPA Bilateral Foreign investment promotion and protection agreement Canada want India
to ensure the rights of their investors first before moving forward for FTA.
2. Investor-state dispute settlement mechanism In case of a dispute, India wants investors to
exhaust all remedies domestically available before approaching international tribunals. Canada
is skeptical in the light of judicial delays in India.
3. Retrogressive Tax laws In case of a change in Taxation policy, Canada wants India to protect
the investments from these changes.
January Page 16

the investments from these changes.

4. MFN forward and ratchet According this, any benefit offered to any other country through
FTA shall automatically apply to Canada and similarly any liberalization of policy shall be
extended to Canada and vice versa. India believes that it will decrease its policy space.
India China Pakistan
1. India can leverage its relationships with China on issues of terrorism involving non state actors
from Pakistan. Visible influence of china on Pakistan in particular and South Asia in general is
clearly visible. $46bn CPEC, China in Afghanistan talks, Kashmir connection between the
countries makes China involvement in control of terror elements to bear fruits.
2. On the other hand, growing India-Japan- USA relations are seen as a containment by China.
US-India Joint vision statement on Asia Pacific and Indian Ocean region with the USA
categorically mentioned Freedom of Navigation and overflight on South China Sea. For the first
time, it also extended their engagement outside south Asia.
3. At this moment, Indias toughest challenge is to balance the both and to appeal to China to use
its good offices in Pakistan for peace in the region.
Pradhan Mantri Fasal Bima Yojana
1. The program changes the present NAIS and modified NAIS to increase the reach of agricultural
insurance for the Farmers.
2. The scheme will have a uniform premium of only 2% to be paid by all farmers for Kharif and
1.5% for Rabi crops. It is 5% in the case of horticultural and cotton crops.
3. Government expects the scheme to increase insurance coverage to 50% of total crop area.
DPP Issues
Make in India Defence procurement
Government made changes to the defence procurement procedures to boost Make in India. These
include
1. DPP 2016 will have a new category indigenously designed, developed and manufactured
category. Mandatory 40% domestic content for a domestic design or a mandatory local
content of 60% if design is not Indian.
2. Department of defence production will fund private R&D
3. Offset policy is amended and the bar is raised from 300cr to 2000cr ( 30% of contracts value
shall be manufactured in India)
4. In the bidding process, additional weightage is given to the performance rather than relying
only on lowest bidder.
5. MSME will be encouraged in defence procurement
6. India is the second largest importer of Weapons and is bund to grow to $100bn by next
decade and the country has no strong military industry complex. It is very critical for local
employment generation, strategic purpose and provide for a research base for the country.
The present procurement policy though made some superficial changes, it failed to address the
systemic weakness
1. In India, domestic military industry is dominated by the PSU and are a drag on an economy.
2. The duty exemptions, self-certification benefits offered to foreign vendors are not offered to
Indian companies.
Free Basics
The ongoing discussion on free basics raised some fundamental questions and solutions on use of
internet in India. These include
1. Internet as a right state shall take the responsibility to provide the connectivity to all.
2. The public consciousness today recognizes Internet not just in pure market terms but also a
social phenomenon that require regulation in public interest.
3. The net neutrality discussion is further extended in to platform neutrality to disallow the
manipulative practices by social media giants like Facebook.
WDR 2015 update e gov notes on digital divide
The highlights of the report are
1. Automation of jobs in some cases leading to inequalities in labour markets between high skill
January Page 17

1. Automation of jobs in some cases leading to inequalities in labour markets between high skill
and low skill workers.
2. Big data can violate laws and rights of the people.
3. NGO are very active in digital citizen engagement in partnership with Government. Ex I
change my city, I paid a Bribe and Karnataka BVS.
4. A poor business environment and vested interests often holdback digital adoption.
5. A new under class is created due to digital under literacy.
Obama s final state of the Union address and achievements as a president
1. Shift of USA diplomacy from Unilateralism to multilateralism
2. Iran nuclear deal and diplomatic engagement with Cuba
3. Successful economic turnaround from crisis
4 point formula for future
1. Economy shall secure the oppourtunities for all
2. US shall harness the power of technology to tackle climate change
3. Safety of Americans in and outside the country without involving in military conflict
4. American leadership shall foster a less hateful national politics.
Brain drain
National foundation report of USA says that Indian origin scientists and engineers in the USA grew by
85% between 2003 and 2013. According to the UN, India makes up the largest diaspora in the world,
with 16million scattered around the world.
Funds and research
Indian Scientific and research organisations need to be empowered globally to be competitive.
Enough resource at disposal, financial and managerial flexibility and availability of credible data need
to be improved to encourage the prospects of research.
India Pakistan Talks
India Pakistan agreed to postpone the talks to a future date of mutual convenience. It is not a total
call off from talks but mere a postponement expecting Pakistan to take a credible action on
perpetrators of Pathankot incident.
Maoist challenge Digital solution Bultoo Radio
Mobile penetration, Broadband network with Radio can be used as effective communication
strategies to reach to the tribal people and redress their grievances by the state and civil society. It
will wean out the Maoist influence. Bultoo Radio in Balrampur in MP, CG Net Swara in central
Gondwana are successful example for this.
Participatory, local language platforms on bottom up media can facilitate this.
Pakistan Polio challenge
1. As long as polio exists anywhere, it is a threat everywhere. India, though is declared as polio
free, high prevalence of Polio in Pakistan and Afghanistan pose an eminent threat to India.
2. In this context, fight against polio also need a fight against misconceptions. People believe
polio vaccination as a conspiracy by the west to sterilize Pakistani children. After the use of
immunization program by CIA to track down Osama, suspicion and attacks on health care
workers by the militants have increased and it complicated the situation further.
Communalization of politics in India
Recent Mob violence in Malda district west Bengal shows the growing communal politics in India
centered on vote bank politics. Strong polarization of communities is facilitated by the first pass the
post system and growth of right wing politics in Bengal.

Start Up ecosystem
India is only after the USA and UK in the number of startups that are initiated every year. But, many
of them fail to create an impact due to the regulatory environment that exists in the country.
Start up ecosystem need
1. Favorable Regulatory and Taxation environment
2. Co-existence of capital, ideas, passion and technology together.
January Page 18

2.
3.
4.
5.
6.

Co-existence of capital, ideas, passion and technology together.

Angel investors need to be encouraged with better incentives
Freedom of communication
Government support For ex, CIA in USA funds technology startups in cyber security
Easy availability of Loans

Sabarimala temple Access to women

Constitutional provisions
1. Art 25(1) guarantees to all persons right to freely, profess, practice and propagate religion.
Here religion extends to beliefs, rituals and ceremonies that are essentially religious. It mean
that, one has to prove the existence of a custom and essentiality of the custom to the practice
of a religion.
2. It is enforceable against the state and not against the private individuals and not corporates.
Supreme Court held that corporate bodies functionally, financially and administratively
controlled by the state can be equated with state for the purpose of fundamental rights.
3. Art 25(2) State can intervene in the religious practice to prevent untouchability and to
promote social welfare. Right to worship and access to those places is constitutionally
protected.
4. Art 26(b) grants to religious denominations right to manage their own affairs in the matter of
religion.
5. In not allowing the women to enter the shrine, the above provisions come in conflict with each
other. Travancore devasthanam board argues to protect the custom under right to manage its
affairs and women argue for their right to worship in public places and gender equality.
Stagflation risk
Term you shall know
Stagflation Stagnation + Inflation. Fall in economic production along with rise in prices. Fiscal
expansion is undertaken in the early stages if signs of stagflation appears in an economy (Pump
priming of economy)
Signs
1. Index of Industrial production show a contraction in factory output
2. Acceleration in retail inflation esp food inflation
Reasons
1. Globally, fall in demand for export and china slowdown
2. Domestic fall in demand on rural front due to deficient monsoon
3. Low levels of private investment.
4. Rise in salaries after 7th pay commission recommendation can rise the retail inflation
WIPO and IPR
1. Weak intellectual property regime is considered as a reason for lack of flow of investments
and innovation in India. According to WIPOs global innovation index 2015 India is placed at
81st position out of 141 countries due to weak IPR protection. USA also in its report special
301 in 2015 placed India on priority watch list. A new IPR policy is considered in consultation
with WIPO by the Government.
2. The consultations majorly revolve around IPR awareness creation, enforcement and capacity
building.
Terms to Know
Special 301 It identifies countries which do not provide adequate and effective protection of
intellectual property rights or fair and equitable market access to United States persons that rely
upon intellectual property rights
Question of the day
Rights Right to freedom of religion is not an absolute right under the constitution of India. It shall
attune to the other fundamental rights. Express your opinion on a conflict between right to freedom
of religion and right to equality with suitable examples ?
Fundamental rights are given a sacrosanct position and are limitations on power of the state.
Supreme Court of India has clarified that articles of the constitution cannot be read isolated and it
January Page 19

Supreme Court of India has clarified that articles of the constitution cannot be read isolated and it
shall be understood as an organic whole. Art 25 of the constitution provides for the freedom to
profess, practice and propagate a religion. Art 25(2) states that state can intervene in the religious
practice to prevent untouchability and to promote social welfare. Right to worship and access to
those places is also constitutionally protected. This is essentially to protect equal access to the
temples irrespective of race, caste, religion, gender etc. Historically Temple entry movement was
able to provide entry to the Dalits and women are still discriminated to the place of worship on the
basis of customs. Dravid movement and many other socio religious reform movements focused on
discrimination faced by Dalits and not women.
Though there appears an argument between Art 14, 15 and 25, 26, Supreme Court has clarified that
one has to prove the existence of a custom and essentiality of the custom to the practice of a
religion. If Existing practices that discriminate women are put to this test, many of these cannot
withstand legal scrutiny. Personal laws of various religions in India are out of the ambit of our
constitution and they continue to allow the discrimination against women. In this context to achieve
the objective of equality state has to strive for enacting uniform civil code in due consultation with
all sections of the society.
Iran Lifting Sanctions
Iran Nuclear Deal Joint Comprehensive Plan of Action
1. Under the JCPOA, the number of centrifuges has been reduced by more than two thirds and
enrichment will be restricted to a single facility at Natanz. The remaining centrifuges will be
mothballed and the Fordow enrichment facility will be converted into a nuclear, physics,
technology, research centre where no fissile material can be introduced.
2. From its existing stockpile of nearly 10 MT of partially enriched uranium, Iran will retain only
300 kg of uranium enriched to a level of 3.6 per cent; the rest will be shipped out. The Arak
heavy water reactor will be redesigned and Iran will not undertake any reprocessing activity.
3. While the duration of the agreement is 10 years, the International Atomic Energy Agency
verification provisions will remain in effect for an additional five years.
4. Restrictions on designing and the production of new centrifuges will remain in force for 20
years while monitoring of uranium mining and milling will continue for 25 years and
verification covers the supply chain of nuclear related components.
5. While defence related sites like Parchin have been kept out of the nuclear related facilities,
there is a provision for seeking inspections if treaty violating activity is suspected.
6. In case of a dispute, a 24-day time frame is provided for adjudication by a joint commission to
be set up under the JCPOA. Nuclear-related imports are permitted but will be channeled
through a designated procurement channel.
7. In return, all nuclear related sanctions will be lifted. This will gradually permit nearly $100
billion of blocked funds to be released and, more significantly, permit Iranian banks and
financial institutions to resume their international engagement. A number of institutions and
individuals will be taken off the sanctions list.
Iran Nuclear Deal Sanctions are Lifted
Iran in line with its commitments made took the following actions.
1. It has redesigned the arak nuclear reactor
2. Deactivated 2/3 of its centrifuge capacity
3. Reduced the stockpile of enriched uranium
4. Disconnects the centrifuges at fordow facility
In return, USA has lifted the sanctions against the financial, banking, trading, insurance,
petrochemicals, shipping, and ports.
Note
1. The sanctions lifted are only secondary and are not primary sanctions It mean the sanctions
on other countries to trade and transact with Iran are lifted but not for USA companies to
trade directly with Iran
2. Iran ballistic missile program is still on the radar of the USA and it treats Iran as a state sponsor
of terrorism and punitive actions on human rights violations, terrorism, missile tests will
continue
3. Hardliners in Iran and republicans in USA are not welcoming the deal. In Iran, it is often
described as a nuclear burial. Allies of USA in Middle East, Saudi Arabia, UAE, and Israel are
skeptical about the deal. On the other hand to allay the fears, USA declared its objective is to
January Page 20

skeptical about the deal. On the other hand to allay the fears, USA declared its objective is to
keep Iran away from nuclear bomb and not to have a relationship
Impact for India
1. Oil prices will further decrease as more crude is expected to release in to international market
from Iran. Iran Pakistan-India pipeline, Chabahar port construction can gain momentum.
2. India will gain more contracts with Iran and its export market will diversify.
3. Indian access to Afghanistan, central Asia will increase through Iran.
Sabarimala Temple Access to Worship for Women
Constitutional Argument
Dr B.R Ambedkar argued for a minimalist definition of Religion that needs to be kept out of the
state. Religious conceptions in India are so broad and they cover every aspect of life from birth
to death. If definition of religion is not confined, it will restrict the functioning of constitution
and it brings society to a standstill.
So, our forefathers have provided the authority to the state to intervene in social customs and
redress grievances arising out of it so that all enjoy equal rights and protections.
Constitutional position on Religion
1. In line with the above, reasonable restrictions are imposed on Art 25 on grounds of public
order, morality, health. State also can regulate and restrict non-religious activities associated
with religion.
Art 25 says that
Freedom of conscience and free profession, practice and propagation of religion
(1) Subject to public order, morality and health and to the other provisions of this Part,
all persons are equally entitled to freedom of conscience and the right freely to profess,
practice and propagate religion
(2) Nothing in this article shall affect the operation of any existing law or prevent the
State from making any law
(a) regulating or restricting any economic, financial, political or other secular activity
which may be associated with religious practice;
(b) providing for social welfare and reform or the throwing open of Hindu religious
institutions of a public character to all classes and sections of Hindus
Explanation I The wearing and carrying of kirpans shall be deemed to be included in the
profession of the Sikh religion
Explanation II In sub clause (b) of clause reference to Hindus shall be construed as
including a reference to persons professing the Sikh, Jaina or Buddhist religion, and the
reference to Hindu religious institutions shall be construed accordingly.
2. Supreme court later evolved essential religious practices doctrine It mean that, one has to
prove the existence of a custom and essentiality of the custom to the practice of a religion.
3. Judicial overreach vs social reform
4. Constitutional mandate given to the state to restrict the religious rights have led to the
increase in powers of judiciary and it became the final arbitrator to the question of religion in
India. It is one-way due to the credibility enjoyed by the Judiciary among the people.
5. Historically religious reform in India has emerged from the society itself. Judicial interference
can weaken the very forces in society and reform more becomes an exercise of state.
Biofuels flexi fuel cars
Flexi fuel cars can be explained as the cars that run on different fuels with different levels of
blending with Ethanol. It is environmental friendly
Challenges
1. It increases the cost of the technology and car manufacturing. Only few foreign car
manufacturing companies have the knowhow of technology.
2. It may provide the market for excess sugarcane produced in the country. But, if it increases the
area of cultivation of sugarcane, it can cause stress on water resources.
Solutions
1. Other choices such as cellulosic ethanol need to be encouraged
2. Yield differences can be minimized between the states by shifting to high yield sugar cane.
Note A separate article will be prepared on Start up policy in India.
January Page 21

Note A separate article will be prepared on Start up policy in India.

Question of the day
Iran nuclear deal opens new opportunities for trade and Business for India. Analyze them and also
comment on the new challenges of the deal to West Asia ?
JANUARY 18, 2016
January 19
India EU FTA
Outstanding Issues
What EU wants?
1. Duty cuts on automobiles, wines and spirits
What India is demanding?
1. Data security status
2. Easier temporary movement of skilled professionals
3. Seamless intra corporate movement
4. Real market access cutting down sanitary and phytosanitary measures and technical barriers
Recent Irritant
1. EU banning sale of 700 Pharma products clinically tested by GVK bio-sciences
Way forward
1. Situations improved in India. Cabinet has provided for a model bilateral investment treaty and
it can speed up the discussions.
In God and Guns they Trust USA gun control Reform
An executive action is announced in USA to control the firearms in USA. It involves
1. background checks for gun ownership
2. increasing funding for federal agencies enforcing gun laws
3. improvement of treatment of mental health conditions nationwide
4. Development of Smart gun technology to prevent accidental firearm deaths.
National Rifle association, a strong lobby in favor of guns has a different argument for gun violence
in the country.
1. The best way to stop terrorism is to have several good guys with guns everywhere. Gun is a
solution for violence by gun. If everyone has gun, everyone will be safer.
2. Mandatory gun training in schools, colleges and churches.
Now, religious dimension has entered in to the discussion of gun culture in USA.
To counter Islamic terrorism, every American who believes in Christianity to protect his faith shall
have a gun. It is a dangerous religious turn the argument is taking in the recent presidential race.
Minority status Supreme Court in Bal Patil judgement held that
1. Minority from a constitutional scheme signifies an identifiable group of people or community
who deserve protection from likely deprivation of their religious, cultural and educational
rights from a majority who can likely gain a political power in a democratic form of
Government through election.
2. Sikhs in Punjab are a majority and HC of Haryana and Punjab quashed the Government
notification that allowed SGPC to reserve 50% of seats in its institutions for students form Sikh
community.
The issue before the court?
1. What shall be the geographical unit to identify a minority (state or Nation)? If it is state, Sikhs
in Punjab, Muslims in Kashmir, Christians in Meghalaya cannot be a minority)
Economy
1. The economic growth is not in line with the major expectations from the Chief economic
adviser Dr Arvind Subramanian.
2. According to him, growth will come from incremental policy push such as subsidy reforms,
direct benefit transfers and financial inclusion of the poor. He also relied on the massive public
investment in infrastructure. But, impact of loss of steam in private investment and fall in
export growth is under estimated.
3. Monetary policy as a tool to revive the growth has its own limitations. Inflation targeting being
the primary goal of monetary policy, it cannot reduce the interest rates further. In this context,
January Page 22

the primary goal of monetary policy, it cannot reduce the interest rates further. In this context,
a pause in fiscal deficit reduction is suggested.
4. The existing path of fiscal deficit reduction can keep the macroeconomic stability at risk. Wider
the deficit is, Government has to borrow more and it will increase the interest rates further
and crowds out private borrowers.
5. The best way out is increasing the efficiency and quality of expenditure, strategic
disinvestment is the way out.
Question of the day
Recently, IMF reduced the Indian growth expectations for the ongoing financial year. What do you
think is the right strategy for this situation and identify the tools available to handle the situation.
Critically analyze role of fiscal stimulus to revive the growth ?
January 20
Caste in Indian society
1. Indian thought on social structure and model order have strong inclination towards caste
identity and discrimination. It has determined the access to knowledge, power and
determined the relationship between self, society and state. It is visible in the ancient stories
of Ekalavya, satyakamaJabali.
2. Indian constitution, fundamental rights have created a socioeconomic progressive
environment on the principle of equality. It brought a conflict between an established order
and desired goals of the constitution. Finally, Institutions of higher education need to b agents
of change. They shall not be occupied by the vested interests and the discussion on
empowerment and equality shall not be reduced to entitlement and exclusion based on caste,
religion and gender.
Urban Spaces
Growth, infrastructure development and green cover, lung spaces in the urban areas are in constant
conflict with each other. It is clearly visible in the cities such as Mumbai where land is very scare and
opportunity for the expansion of the city is limited. The fight for protection of Aarey colony,
mahalakshmi race course falls in to this argument.
Global inequalities are on rise Oxfam
1. The value of 62 richest billionaires hold equal wealth as the poor half of the world.
2. Wealth of the poorest half of the world population has fallen and rich half has increased.
3. Globally, $7.6 tn wealth sits offshore in tax heavens. More than 30% of African wealth in
offshore assets. It reflects loss of tax revenue to the developing countries.
Three pronged strategy
1. Rise minimum wages
2. Collective action on missing billions to tax heavens
3. Invest in public services
National Family Health Survey (NFHS) 4

Child mortality has decreased and access to skilled ant natal care has increased

Over nutrition and obesity among adults are the growing concerns

Death rate has fallen to 51 deaths to 1000 live births

Civil Society
1. Civil society role in demanding accountability, organizing the masses and spreading the
awareness is part of their democratic right. The Jawabdehi yatra in Rajasthan spearheaded by
Aruna roy is aimed to achieve this. Attacks on the civil society from the state, ruling elite
shows growing intolerance towards their function.
2. It can be said that, prevention of free functioning of the society will decrease the democratic
space, muffle the voice of participants, stakeholders in the countrys social, economic and
political policy making sphere.
IMF forecast
IMF reduce the growth forecast of the world. The reasons include
1. Slowdown in China trade
January Page 23

1. Slowdown in China trade

2. Weak commodity prices
3. Rise in interest rate in USA
Suggestions
1. Accommodative fiscal policies in the in the near term and they shall support the recovery.
2. Structural reforms shall continue
NPA s of Banks solutions
1. Watertight loan evaluation process
2. Speedy NPA recovery mechanism
3. Development of a long term debt market
Question of the day
Even after half a century of constitutional governance, caste still has a strong presence in our
societal sphere
1.
Identify the reasons and
2.
Evaluate the changing dynamics of caste in todays globalized world
January 21
Hidden wealth of Nations
Terms to understand
1. DTAA: a bilateral economic agreement between two nations that aims to avoid or eliminate
double taxation of the same income in two countries.
2. Tax Heavens: countries that have very low taxation or zero taxes
3. P Notes: Financial instruments used by investors or hedge funds that are not registered with
the SEBI to invest in Indian securities. Indian-based brokerages buy India-based securities and
then issue participatory notes to foreign investors. Any dividends or capital gains collected
from the underlying securities go back to the investors.
4. Read the following article for greater clarity http://www.thehindubusinessline.com/todayspaper/why-participatory-notes-are-dangerous/article1672845.ece
5. Round tripping: It denotes a trip where a person or thing returns to the place from where the
journey began. In the context of black money, it leaves the country through various channels
such as inflated invoices, payments to shell companies overseas, the hawala route and so on.
After cooling its heels overseas for a while, this money returns in a freshly laundered form;
thus completing a round-trip.
How does the money return to India? It could be invested in offshore funds that in turn invest in
Indian assets.
1. The Global Depository Receipts (GDR) and Participatory Notes (P-Notes)
2. GAAR: GAAR is basically a set of rules designed to give Indian authorities the right to scrutinize
and tax transactions which they believe are structured solely to avoid taxes. The rules would
be applicable to all taxpayers.
3. Offshore financial centers: Markets in which financial operators are permitted to raise funds
from nonresidents and invest or lend the money to other nonresidents free from most
regulations and taxes.
Notes
1. Many of the Indian companies and foreign MNC through legal accounting loop holes evade the
taxes, stock the capital in a tax heaven and reroute the same capital as an FDI in to the
country. DTAA (double taxation avoidance agreement) with countries such as Mauritius and P
notes, lack of GAAR etc. are facilitating this.
2. OECD report on Base Erosion and profit sharing lays out 15 points to counter the tax avoidance
by the MNC by shifting to the tax heavens. India to what extent has the political will to
implement these actions is at question. Whenever India initiated the reforms to control these
routes of tax evasion, there is flight of capital, increased volatility in stock exchanges. It is
creating panic ultimately leading to reversal of the reforms.
3. An economic growth without public investment in social infrastructure such as health and
education will not benefit the majority. Public funds are critical for this and it is the reason
why curbing tax evasion is part of the UN sustainable development goals. We need to plug the
menace of tax avoidance by amending DTAA, plugging accounting loop holes.

January Page 24

NFHS
NFHS 4 data shows that malnutrition is still a major challenge in India. Only success has been in the
area of child wasting and reduction of proportion of adult men and women with below normal body
mass index.
Maternity benefits conditional cash transfers
Janani suraksha Yojana, NFSA offered monetary benefit for every pregnant mother. It helped to
supplement the necessary nutrition during pregnancy. Indira Gandhi matritva sahyog yojana is a
conditional cash transfer scheme where mothers will receive the maternity benefits only if they fulfil
certain requirements. For instance, registration of pregnancy, antenatal check ups, intake of iron
folic acid tablets etc.
The challenges in the implementation of the program include

Conditional cash transfers (CCT) are successful in Brazil because of the existence of sound
health care system. That is CCTs address demand problems but India suffers from supply problems

Many of the targets are not verifiable and their consumption occurs in private at home.
Documentation of the detail and availing of the benefit can breed corruption
Question of the day
Conditional cash transfers successful in Brazil had a very systematic approach. Do you think the same
system can be successful in India with appropriate reasons ?
JANUARY 21, 201

January 22
India Pakistan
Indian diplomacy shall strive for a greater objective that is to achieve robust and efficient
economic growth, giving a dignified life to all its poor and marginalized. National security doctrine
shall have this as a central theme.
On the other hand, Pakistans national security doctrine is centered on the perceived notion of
existential threat from India. It led to an unusually high military expenditure that is a drain on its
economy. Added to this, it nurtured mujahidin elements to bleed India by thousand cuts.
In this context
1. India getting hyphenated itself with Pakistan in the international projection is not in its longterm economic interests.
2. Stable and prosperous Pakistan is in the best interest of India. India seeking for retaliation will
lead to playing directly in to the objectives of Pakistan national security doctrine.
Industrial corridors
Various industrial corridors proposed are
1.
DMIC
2.
AKIC
3.
BMEC
4.
CBIC
5.
VCIC or east coast economic corridor
There is a very slow progress on the development of these industrial corridors. The major challenges
are the availability of finances and land acquisition. A parliamentary committee is constituted to look
in to these matters.
NFHS
NFHS survey shows the failures of India to convert its wealth in to developmental outcomes on
nutritional and health front. The major policy challenges it still faces include
1. Severe malnutrition
2. Low birth weight
3. Chronic anemia and underweight among pregnant women.
Solutions
1. Access to nutrition and health shall be right for all.
2. ICDS shall be strengthened in all states.
3. Antenatal care, early life care and nutrition are critical for development of brain and other
neural capabilities and shall be focused.
4. NFHS data cycles shall be reduced to 2-3 years from the existing 10 yrs to get a ready data for
January Page 25

4. NFHS data cycles shall be reduced to 2-3 years from the existing 10 yrs to get a ready data for
policy correction.
USA Education
There are regulatory and coordination challenges in the functioning of higher education and its
access to foreign students in USA.
Loop holes in SEVIS student and exchange visitor information system, lack of control for
department of education on admission process, lack of coordination between the US customs and
border protection and US consular missions in India is causing a huge damage to students aspiring
for higher education in USA.
Question of the day
Indias excessive focus on Pakistan is leading to a hyphenation in the global diplomatic
establishment. It is not in the best interests of India. Suggest your opinion on how Indias Pakistan
policy shall be place ?
ECB External Commercial Borrowing
The revised framework includes three track s
1. Medium term foreign currency denominated ECBs with a maturity period of 3-5 yrs.
2. Long term foreign currency denominated borrowings with a maturity period of ten years
3. Rupee denominated borrowings with a maturity period of three to five years
Concerns
1. ECBs in infrastructure are limited to Track II and III and it could limit financing from
international lenders
2. Details about Track 3 are not made clear
3. The new rules have liberalized the lending side and there is no real change in borrower base
E Pragathi
It is a state enterprise architecture for designing and delivering government services in a
coordinating manner by integrating all departments.
French President Hollande visit to India
1. India and France are set for a new partnership in counter terrorism cooperation and enhancing
their strategic partnership.
2. Special and strategic partnership signed in 1998 will be revisited to engage on the lines of
India USA homeland security dialogue.
Pakistan diplomacy
1. In Pakistan, National policy on India is majorly dominated by the Military narrative. Political
class has a limited control and media, military together set a popular national discourse
against India.
2. Pakistan military establishment believes India as an existential threat and is the reason for the
failure to achieve a civil military balance to improve the relations with India.
3. In this scenario, innovative ways need to be found to bring the military across the table.
Public investment for a new normal
Public investment shall create the demand in the economy when there is a cynicism in the private
sector.
Innovative use of fiscal consolidation and its expansion, review of subsidies, promotion of
disinvestment and diverting the funds for infrastructure can create a demand in the economy.
WEF, Davos
1. Financial markets need clarity and certainty.
2. Recent devaluation of currency by the China and the competitive devaluations followed have
shrunk the global growth by 0.2%. It has hurt all the BRICS economies, Japan and Eurozone
3. Inequalities are rising
4. Monetary easing have run its course and reached the limits of efficacy as a policy tool
Discrimination on the campus
January Page 26

Discrimination on the campus

The student population on campus is becoming increasingly diverse. Accommodation between the
diversities need to be taught to the students.
Reasons for discrimination
1. Caste prejudices has firmly entrenched in the elite institutions. Reservations are seen as a lost
opportunity and are seen as a dubious merit. University environment reinforces and maintains
a divide between Dalit and non-Dalit.
2. Separation of groups and lack of intermixing of the diverse groups is a major problem.
3. Fear of academic failure, hostile regulations, academic stigmatization are the reasons for
humiliation, Exclusion and suicide.
4. The first challenge to the policy making is to come out of denial mode and accept the
discrimination existing in higher education of campuses.
How to fight these?
Legal safeguards
1. SC, ST prevention of atrocities (amendment) act 2015, UGC Regulations are the main legal
solutions. But, their specificity to education is limited. A special law need to be enacted against
discrimination in colleges/universities.
Importance of civic education
1. Civic education that discrimination associated with caste, ethnicity, gender, race, religion and
other identities undermines the citizenship values of equity, freedom and brotherhood.
2. Civic learning component shall be included all courses it shall consist of courses with themes
of diversity, racism, sexism, religion, casteism etc.
3. Inter group dialogue, mixed peer groups will reduce the prejudices.
Academic assistance
1. Most of the SC, ST students are from regional language, rural background and they need a
personal mentorship to pull them up.
2. Remedial coaching schemes in universities are mostly nonfunctional. JNUs personalized
academic support system has yielded good results and can be replicated.
Participation in Governance
1. Representation to Dalit students and teachers on all university administrative bodies.
2. Elimination of symbols of inequality and Exclusion in society
Presidents address to the nation
1. We shall guard ourselves against the forces of violence, intolerance and unreason.
2. Spirit of accommodation, cooperation and consensus building should be the preffered mode
of decision making.
3. An eco-system that fosters the critical thinking and makes teaching intellectually stimulating is
necessary.
4. Presidents rule in Arunachal Pradesh Arunachal crisis
5. Governor of the state Governor JP Rajkhowa has advanced the session of Legislative assembly
without making the same request to his COM. Added to that, he sent message to the house to
take up resolution for the removal of the speaker as the first item on the agenda.
6. When the Government locked down the legislature and speaker disqualified dissidents under
anti defection law, governor ordered for a parallel assembly that revoked the disqualification
and passed the no confidence motion against the Government.
In this context, constitutional role of the governor came in to question again.
The matter is before the constitutional bench of Supreme Court and COM recommended for
imposition of Art 356 to president of India. It is criticized as anti-federal and against to parliamentary
democracy
President Hollandes visit to India
1. Fifth French president to be the chief guest at the republic day parade.
2. Inaugurated international solar alliance at Gurgaon
3. Agreement on upgrading Delhi-Chandigarh line to 200kmph.
4. Alstom (French company) will manufacture high horsepower locomotives at Madhepura,
Bihar.
5. Development of Chandigarh as a smart city
6. Space ISRO and CNES Organisations together will be working on Next Mars Missions,
January Page 27

6. Space ISRO and CNES Organisations together will be working on Next Mars Missions,
satellite launch and Thermal infrared observation mission.
7. France is committed to support India on its bid UNSC seat and Indias accession to multilateral
export control regimes in 2016 itself.
8. Rafale deal intergovernmental agreement to buy 36 Rafale fighter jets is completed. But,
price issue, delivery deadlines are yet to be resolved.
9. Terror fight Intelligence sharing, joint exercises, annual strategic dialogue, joint working
group on counter terrorism are suggested.
Ease of doing business in India
Central registration center and government process re-engineering are announced to reduce the
time to incorporate a company.
Shome panel
1. Government is seriously considering the implementation of Shome panel recommendations.
The objective is to make tax system simpler, leaner and decreases the litigation. It will also
reduce the discretion of tax officials.
2. Important recommendations
3. No retrospective taxation
4. Merger of CBDT and CBEC
5. Widening the use of PAN number

RBI Governor steps out to the challenge

1. Indian banking sector has an elitist bias and benefits and flexibility enjoyed by the large,
industrial borrowers are not given to the retail borrowers.
2. There are increasing cases of defaults from these large borrowers and are responsible for
growing NPAs of banks.
3. In this context, Raghuram Rajan has clearly said that India is often considered as a weak state
for its inability to punish the wrong doing and wrong doer, unless he is small and weak. That is,
well connected, rich gets away easily. He suggested defaulting promoters have no divine right
to remain in charge of their companies.
Lahore to Pathankot via Kandhahar
India, in spite of a having a struggling history with hijacking, it has no hostage policy and crisis
management situation is still not improved.
Iran China relations
1. China sees Iran as a source of its energy security, gateway to west Asia and it can unlock the
potential of Chinese western provinces. It is an important link in Chinas Silk Road strategy.
2. Chinese cooperation to Iran during the time of sanctions generated necessary goodwill to take
forward the relations. Urban metro, elevated express way, Niyaesh tunnel in Tehran are
symbols of this cooperation.
After the Delhi experiment
1. An aspirational lifestyle symbolizes the primacy of consumption as a source of happiness. It is
the reason for pollution, solid waste and urban crisis. So, unless these aspirational classes
engage in deeper debate on development, no sustainable progress can happen on ground.
Question of the day
Governors role, Art 356 are always controversial in Indian federation. A new edition to the list is
anti-defection law. Discuss in the light of recent Arunachal crisis ?
From <https://www.civilsprep.com/civilsprep-ias-current-affairs-26th-jan-2016/>

Politics, impropriety and Presidents Rule

The issue regarding Presidents rule in Arunachal Pradesh has constitutionality dimension.

January Page 28

 Whether Governor can legislature on his own and decide what business the house has to take up is the
question before the Supreme Court
Whatever the issue, any political process in a democracy must be rooted in democratic norms and it
should not be left to the discretion of constitutional functionaries

Consolidating ties with France

France was Indias first strategic partner with institutionalized dialogue continuing since 1998.
France has been consistent defense supplier since 1953.
Under utilization of trade potential between the two countries was due to Indias impasse with European
Union
India needs to move fast on its reform to consolidate French business in India

Need safeguards against majoritarianism

What should be the key themes in the proposed new Sri Lankan constitution ?

It must be very inclusive constitution

Provincial councils at present should act as bridge between Center and the local governments
There can be five members elected from each provincial council to the upper house. Even small parties
shall be represented
To include social, economic and cultural rights as minimum guarantees to every one

A ringside view of the proposed GST

There are two issues that need focus in the proposed GSTDesign and Assessment environment of
tax structure
Recent reports envisage even three tier tax structure instead of two at present proposal
It shall be the destination based tax and not origin based tax
Shift to a singular digitized compliance set up to completely do away with manual intervention
Rules regarding place of supply of should be clear to avoid jurisdictional confusion
There is a need for clear and objective guidelines to whittle down any opportunity to abuse discretionary
powers by revenue authorities

Soon, annual and quarterly reports to replace once-in-5-year job surveys

What purpose would these reports serve?

They will help mapping the condition of Indian economy

The data from them will help government to give quick policy responses to spur job creation
The data will be analyzed with modern technology to track labor market movements

Question of the day

GST with many compromises ahead and within cannot be called a reform of the century. Elaborate ?
From <https://www.civilsprep.com/civilsprep-ias-current-affairs-27th-jan-2016/>

Stained steel frame corruption

1. Installing Fear of law, making corruption a high risk activity by increasing legal and institutional
checks is necessary to check the menace. If not, it erodes the public confidence on the
institutions of governance.
2. The major challenge today is lack of integrity in the whole civil service including higher
echelons and minister civil servant nexus is leading to a collusive corruption at the highest
level.
3. According to CVC act 2003, DSPE act 1946 Government permission is necessary to the
investigating agency to initiate a preliminary inquiry against the official at the level of joint
secretary. Supreme Court has struck down this provision as discriminatory and violation of the
January Page 29

secretary. Supreme Court has struck down this provision as discriminatory and violation of the
constitutional principle of equality before law.
4. Government sanction is also required to prosecute an official found by investigative agency to
have violated PCA or the IPC. It is meant to protect an honest officer from unnecessary
harassment, it is misused corrupt politico administrative establishment for its advantage.
Denials, Delay in providing permissions are the rule of the day. Union Government proposed
for an amendment to the PCA, making a mandatory decision within 3 months and it need to be
passed expeditiously.
5. Criminal law amendment ordinance, 1944 permits attachment of property believed to have
been purchased through illegally obtained money. It will be forfeited after judicial order. Such
deterrence and punitive action discourages a civil servant resorting to corrupt behavior.
Technology transfer to mitigate climate change
Effective use of technology includes
1. Access Research and development shall be tied to right enabling environment. These include
affordability, development of market, Regulatory and policy environment.
2. Every country has technology requirements specific to its priorities, opportunities and socioeconomic circumstances. So, a policy environment that supports innovation with in countries,
transfers suitable technologies from outside, allows equity sensitive application are very
important.
3. In this context, Climate technology Centre and network and technology executive committee
set up under the technology mechanism in COP 16. They are not very effective and their
process are too slow, if targets of GHG emission reduction are considered.
Tobacco consumption sounding the smoke alarm
1. According to global youth tobacco survey 2009-10, global adult tobacco survey 2010
smoking and use of tobacco products is increasing among the children. It is high among
uneducated and lower income groups.
2. Legal measures
3. According to Juvenile justice (care and protection of children) act, 2015 any person who sells
the tobacco products to underage children is punishable up to 7 yrs of imprisonment and 1
lakh rupees of fine.
4. The major challenge is the implementation of law. Most of the sale of tobacco products
happens in India through small, unlicensed shops.
In this context, Indian cigarettes and other tobacco products act, 2003 need to be amended to bring
in following changes
1. Ban of the cigarettes within 100 meters radius of school
2. Ban on advertisements on sale of tobacco near schools and colleges
3. Pictorial warnings
Refugee law in Denmark
Many European countries instead of being sympathetic to immigrants from Syria and Libya, are
enacting laws to discourage their entry in to Europe.
Denmark in line with Switzerland recently enacted a law to confiscate valuables from refugees to
pay for their upkeep.
On the other side, countries such as Hungary already seized the boundaries and few other countries
are suggesting to seal off the boundary with Greece where most of the refugees are being landed.
These measures are very much against the Human rights record itself. At this moment, the need of
the hour is to develop an effective resettlement plan at home and pursuing peace and stability in
war torn countries.
Arunachal crisis
1. Supreme Court directed the Centre and Arunachal Pradesh Governor to furnish relevant
material backing the claim for breakdown of constitutional machinery that has led to
proclamation of emergency.
2. SR Bommai case
a. Art 356 is not immune from judicial review
b. Validity of proclamation issued by the president of India under Art 356(1) is judicially
January Page 30

b. Validity of proclamation issued by the president of India under Art 356(1) is judicially
review-able to the extent of examining whether it was issued on the basis of any
material at all or weather material was relevant or whether the proclamation is issued in
the malafide exercise of power.
c. Supreme Court or High Court can strike down the proclamation if it is found to be
malafide or wholly based on irrelevant or extraneous grounds.
Cairn India may shutdown Fiscal policy predicatability
1. Cairn India is the nations largest onshore oil driller expressed concerns on high cess and
retrograde tax imposition.
2. Cess on output of oil is fixed at $9 per barrel and with decrease in prices of oil, cess has
become 33% of the cost of crude. Shifting cess to advalorem duty linked to product price is
being expected.
3. Curbs on exports is restricting their customers and price discovery and these unintended
consequences are overburdening the industry.
Pakistan on Mumbai Terror
Pakistan court has dismissed the Government petition for the voice samples of 26/11 mastermind
lakhvi and others.
Question of the day
Corruption if unchecked can erode the public confidence in Bureaucratic fairness and objectivity. In
the light of above statement discuss on strengthening of deterrence mechanisms against corruption
in India ?
Answer for this question is posted under Question & Recommended Answer tab above.
From <https://www.civilsprep.com/civilsprep-ias-current-affairs-28th-jan-2016/>

China and Iran

Traditional hands off policy of china towards west Asia is replaced by active engagement. It is visible in its
stand on Iran nuclear deal, Syrian crisis and naval exercises in the Mediterranean.
The reasons include
1. Diversification of energy needs
2. To access the central Asia and Europe through west Asia under one belt one road initiative.
3. Iran is the country where USA has no practical influence.
4. Trade and investment reasons
5. Reflection to this, Present Xi Jingping visit to Iran is first of its kind after lifting of sanctions.
Negotiating with Taliban
There is an ongoing Unofficial Doha round of talks with Taliban facilitated by the Pugwash conference on
science and world affairs with support of state of Qatar. Afghan Government is not a party to the talks.
Why talks are important now
1. At the juncture of American troops leaving the Afghanistan, negotiated settlement is the only way
out to put an end to the bloodshed.
2. Widespread electoral fraud during presidential elections and final power sharing between main
contenders to power has eroded the legitimacy of the Government. Decreasing military support
and erosion of legitimacy of Government will increase the troubles of the Government further.
3. Taliban leadership itself showed the indications for negotiations and power sharing arrangements.
Taliban and visible change
1. Taliban Reassured dialogue partners that they would respect women rights and ensure modern
education for all.
2. Taliban now seem to be receptive to the idea that power of the state and political space in
Afghanistan cannot be dominated by one party.
3. They underscored the importance of economically developing the country in cooperation with
neighboring states.
Challenges ahead
1. Taliban refer to themselves as Islamic Emirate of Afghanistan centered around sharia law and are
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1. Taliban refer to themselves as Islamic Emirate of Afghanistan centered around sharia law and are
not ready to accept constitution.
2. Taliban are not willing to participate in democratic process.
India way forward
1. Taliban declared that they will not allow its territory to be used by foreign countries for terror
activities.
2. Stable and peaceful Afghanistan is in the best interests of the country and Indian Afghan policy
after the fall of Taliban appears to be right on the track. India shall give its support to the
engagement process of Afghanistan.
Power to Centralize
Factors that determined the centralization of power in Indian politics include
1. Constitution and political system left the room for Prime minister to decide the nature of
engagement with Cabinet
2. Control over the party and Government From the days of Nehru, Prime minister who enjoyed
control over the party, are able to centralize the power
Advantages
1. It avoided the factionalism in Government and politics retaining the central authority of Prime
minister in Government.
Disadvantages
1. Centralisation always delays the Decision making
2. It disintegrates the party institutions and central leadership can loose touch with ground realities
3. High command politics weakened political dynamics in the state.
Students suicides regulation of higher education
1. Entry of Private educational institutions led to the rapid expansion of higher education with a
compromise in quality. In this context, strengthening regulatory standards, strong grievance
redressal mechanism can improve the functioning of the system
2. Excessive litigation can be avoided through streamlined process
IMF reforms
Share of BRICS economies increased and India share increased from 2.6% from existing 2.3% and china
from 3.8% to 6%
Reforms will bring china and India to the top 10 members of the IMF
Executive board will now consist only of elected executive directors
Smart cities
1. 20 smart cities are announced by the Government and a special purpose vehicle is constituted to
execute proposed developments and projects
2. Credit rating system will be developed for local governments to attract investments
3. The mission promotes an integrated city planning and Government policies like swachh Bharat,
Amrut complement each other
4. Weather forecasting
IMD will be giving block level forecasts. It will increase accuracy at the intra-district level.
Framework to help answer the question below
CivilsPrep Current Affairs 29th Jan 2016
Question of the day
Higher Education in India is going through transformation. Discuss the challenges and suggest measures
to improve the system with a special focus on recent reforms initiated ?

Basics of free speech

1. Art 19(2) of the constitution allows for the state to impose reasonable restrictions on freedom
of speech of the citizens. One of the restriction mentioned in the constitution is contempt of
court.
2. Contempt of court act -1971 defines the broad contours of the contempt It has two common
forms civil and criminal contempt. Civil contempt is a willful disobedience to the court
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3.

4.
5.
6.
7.

8.

forms civil and criminal contempt. Civil contempt is a willful disobedience to the court
judgement, order or direction.
Criminal contempt involves the following three conditions Any action that
a. Scandalizes or lowers the authority of any court
b. Prejudices or interferes with due course of any judicial proceeding
c. Interfere or obstruct the administration of justice in any manner.
Supreme court in 1996 ruled that all acts which bring the court under disrepute, disrespect, or
which offends its dignity or majesty or lowers its authority amount to punishable contempt.
In 2006, contempt of court law is amended to provide two additional safeguards
A sentence for contempt of court can only be issued if any action interferes or tend to
interfere with due course of justice.
Truth in a speech constitutes a valid defense against the proceedings of contempt, if court is
satisfied that the larger public interest is served through publication of content.
In constitution assembly, pundit Thakur das Bhargava argued that, contempt of court can be
misused and can lead to judicial abuse of powers. In line with these fears, Courts have
routinely used contempt to punish expression of dissent, when such expressions posed no
threat to the administration of justice.

In England, from where India adopted contempt of court, no contempt proceedings are issued for
scandalizing a court in the last decades and is recently abolished on the recommendation of law
commission. India shall follow the same line.

Arunachal crisis constitutional question

1. The major constitutional provisions that come in to debate in the present episode are
2. Can Governor summon a house without the advice of his council of ministers and can he
decide the agenda of the house for the day.
3. CM and speaker can they continue in power without advising the governor for summoning the
house and so No confidence motion can be passed.
4. Art 174(1) of the constitution gives power to the governor to summon, prorogue the houses.
Art 175(2) allows for fixing a specific agenda of the legislature
5. As per Art 163 governor can act in his discretion and his greatest discretion is to decide what
his discretion is. High court of Gauhati upheld the governors action on interpretation of the
above articles.
But, it highlights the need for standard procedures to eliminate partisan behavior and to ascertain
chief minister commands majority in the legislature or not.
Urban poor
Urban poor are worst placed compared to rural poor. They possess lesser wealth and greater debt.
(NSSO survey)
Levels of urban poverty also vary widely across the states
Universal health coverage
Universal health coverage is a sustainable development goal and it shall be achieved through
financial risk protection and improving access to essential health care services. Quality of services
has not been stressed with in UHC dialogue.
WHO constituted a special cell that will focus on 3 key aspects
1. Alignment of country engagements and global framework
2. Health service resilience and quality
3. Establishing partnerships to reach the goals
Fiscal path Raghram Rajan
Macroeconomic stability relies immensely on policy stability. India shall not deviate from fiscal
consolidation path for short term gains. Brazil experience shows that an enormous costs of
becoming an unstable country outweigh the small benefits we forego. In this global turnaround,
Indias major advantage is its macroeconomic stability.
Question of the day
Urban poor in the country are worst victims of present model development compared to the rural
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Urban poor in the country are worst victims of present model development compared to the rural
poor. Analyze ?
LGBT Rights in India
1. Indian civilization has provided for a free expression of alternate sexualities but IPC sec 377
criminalizes the few kinds of sexual behavior among the LGBT That is unnatural sex against
the order of nature.
2. Delhi High court in 2009 judgement allowed consensual sex between same sex adults. It
confined the law only to the non-consensual, penile, non vaginal sex and sex acts by adults
with minors.
3. Supreme Court in 2013 has overturned the above judgement and a curative petition is filed in
this context.
Supreme Court observations in 2013
1. Supreme Court observed that there have been only 200 prosecutions over 150 years.
Counter Fundamental rights to minorities are not determined by the numerical factors. They
are available to all the individuals.
2. It does not criminalize a sexual orientation or a community but merely identifies certain acts
as offenses. Counter argument separation of a person and his acts is not possible. Sec 377 is
misused to harass and extort the homosexuals. It denies the only form of sexual intercourse
available to the class of LGBT persons.
3. In 2014 NALSA judgement Supreme Court affirmed the fundamental rights of and freedoms of
third gender. Equalities and freedoms cannot be fully functional with simultaneous
criminalization of their sexual function.
4. It is always easy to fight the social prejudice when law is on their side. Supreme court has left
the decision on the issue to the parliament
5. Medically, DSM IV diagnostic and statistical manual IV, ICD International classification of
diseases no more identify homosexuality as a disease and considers it as a behavior of a
natural order. Non recognition of their sexuality can cause many mental health problems

India France relations

1. France is the first country India established a strategic partnership in 1998. It is the first major
power to open a dialogue after Indias nuclear tests
2. Strategic partnership institutionalized now at the level of NSA s extends in to anti-terrorism,
cyber safety, nuclear, space and defense related matters
3. The present visit of president Francois Hollande had deepened these relations further and an
array of agreements reached They are Rafale fighter jets, Nuclear installations at Jaitapur,
extension of agreement on defense cooperation, environment and weather monitoring,
climate change, mapping of water resources, joint thermal infrared
Earth observation mission
The areas lagging behind are people to people exchanges, economic trade relations
Gujarat terror bill
1. It allows for the state home secretary to authorize the interception of calls on his own. It can
be admitted as an evidence in a court of law
2. It allows the confessions made before the police officer of the rank of superintendent of police
as admissible as an evidence in court of law
3. It provides an extended period up to 180 days instead of the usual 90 days for the filing of a
charge sheet
4. Indias experimentation with anti-terror laws ultimately led to the violation of human rights.
In this context, country shall work to strengthen police investigation and resources to combat
organized crime.
India Pakistan
1. DE hyphenation of India and Pakistan mean India and Pakistan will be dealt in two different
silos without referring to their bilateral relations. Bush administration de-hyphenated India
with Pakistan and Obama administration planning to re-hyphenate them by merging both the
desks.
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desks.
2. In the past, India opposed special representative holdbrooke to the region and strongly
opposed America s view of seeing its relations with India from perspective of later relations
with other countries in the region
VISA on arrival to Japanese and South Koreans
It is to promote investments and to deepen business to business relations between the nations.
Question of the day
Democracy shall protect the rights and liberties of everybody. Indias Journey in criminalizing sexual
orientation of LGBT is not in the spirit of our progressive constitution. Social prejudice against this
sexual minority community can be fought only when law is firm on their side. Discuss ?

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