www.IASbaba.com
Page |2
PREFACE
With the present shift in examination pattern of UPSC Civil Services Examination, General
Studies II and General Studies III can safely be replaced with Current Affairs. Moreover,
following the recent trend of UPSC, almost all the questions are issue-based rather than news-
based. Therefore, the right approach to preparation is to prepare issues, rather than just
reading news.
Taking this into account, our website www.iasbaba.com will cover current affairs focusing
more on issues on a daily basis. This will help you pick up relevant news items of the day
from various national dailies such as The Hindu, Indian Express, Business Standard, LiveMint,
Business Line and other important Online sources. Over time, some of these news items will
become important issues.
UPSC has the knack of picking such issues and asking general opinion based questions.
Answering such questions will require general awareness and an overall understanding of the
issue. Therefore, we intend to create the right understanding among aspirants How to
cover these issues?
This is the 25th edition of IASbabas Monthly Magazine. This edition covers all important issues
that were in news in the month of June 2017.
Value adds from IASbaba- Must Read and Connecting the dots.
Must Read section, will give you important links to be read from exam perspective. This will
make sure that, you dont miss out on any important news/editorials from various
newspapers on daily basis.
Under each news article, Connecting the dots facilitates your thinking to connect and
ponder over various aspects of an issue. Basically, it helps you in understanding an issue from
multi-dimensional view-point. You will understand its importance while giving Mains or
Interview.
Must Read Articles: We have not included them in the magazine. Those following DNA on
daily basis may follow it- http://iasbaba.com/babas-daily-news-analysis/
www.IASbaba.com
Page |3
INDEX
NATIONAL (Page No. 5-71)
Twenty world- class "Institutions of Eminence" to be established
Better Evaluation System
Preventive Detention Law
Political funding: Maintaining transparency
Missing women in India's labour force
India-EU FTA- what ails it and way forward
Indias neutrino opportunity
Providing safety-net: Pension for all
Understanding the agitating farmers
A calibrated approach to reforms
A shift towards Electric Vehicles(EVs)
Harnessing wind power through Kites
Start Up India Pan- Taking it forward
Indias Energy Transformation
Can Big Data Analytics lead to eColonisation of India
Worsening state finances
Creation of Gorkhaland: A long-standing demand
Transforming India into a knowledge-based economy
Women farmers in India needs attention
Urban agriculture: Building food-smart cities
Anti-defection law- Faces a new threat
Blockchain Voting
Smart City Mission: Challenges and Way ahead
What ails Indian education system?
Breach of privilege-It's time to codify the rules
Making Indian companies cybersecure:
www.IASbaba.com
Page |4
www.IASbaba.com
Page |5
NATIONAL
TOPIC:
General Studies 2
Issues relating to development and management of Social sector or Services
relating to Health, Education, Human Resources.
While a select group of existing public institutions will be upgraded to the world class
status, both existing and upcoming private institutions can bid for the tag.
The institutions of eminence will have greater autonomy compared to other higher
education institutions. They can be free from the clutches of the overarching
regulatory regime of bodies such as University Grants Commission (UGC), AICTE, and
Medical Council Of India (MCI).
More autonomy in designing syllabi and deciding fee structure. Teachers would also
be allowed to take up consultancy work among others.
Public institutions will get financial support from the human resource development
ministry.
The private institutions under the project will enjoy two key freedoms: one, they can
offer as much salary as they want to their teaching staff; and two, the course fee can
be completely market linked. The government institutions, however, will have to
follow the UGC scale of pay for permanent employees. For contractual staff
including professors on contract, they too can pay as much as they wish.
If a new institutions fails to make enough progress in the first 18 to 20 months, then
the government will cancel its candidature. And the disqualified institution will be
replaced from a reserve list of institutions.
www.IASbaba.com
Page |6
Way ahead:
If these institutions develop and deliver on suggested lines, eventually driving
innovation and economic growth, they could potentially mark the beginning of a new
chapter in Indias nation-building exercise. If not, they will be the missed opportunity
that sets back Indias aspirations to be a great power. China makes for a good example.
In an effort to revamp its tertiary education sector China marked out elite institutions
for generous state funding, and changed its focus from quantity-oriented deliverables
such as enrolment numbers to quality-oriented deliverables such as citations in
respected peer-reviewed journals. The results began to show in less than a decade. By
2008, it was already churning out the largest number of PhDs in the world.
Liberalising education. As the government sets up these institutions (institutions of
eminence) the fundamental structural problems related to over-regulation that
continue to hobble the Indian education sector needs to be addressed.
Establishing a link between research institutions and education sector. A commonly
cited example of how research universities have incubated innovative ecosystems
around them is that of Stanford University and Silicon Valley. Similarly, across the
world in Israel, Technion University was the catalyst that sparked the start-up
nation. Thus the new set of institutions must be structure in a way so as to emerge
as research centres as well.
An inter-disciplinary approach must be adopted by these institutions.
For any development in higher education to bear fruit, it must be supported by the
strengthening of primary education. An important reason why Chinese higher
education has galloped ahead of India is that it strengthened its primary and
secondary education systems first, which India is only now attempting to achieve.
T.S.R. Subramanian committee has recommended that top-rated educational
institutions in India be given greater autonomy including the freedom to fix salaries
of their staffa break from the controlled pay structure decided by bureaucrats
sitting in New Delhi or in state capitals.
Financial autonomy to institutions should be linked to their performance as
recommended by the Subramanian committee. The institutions on the upper end of
www.IASbaba.com
Page |7
the scale of performance must be given total autonomy in all respects, including
fixing faculty salaries, fee structure, entering into collaborations, etc.
Regional and rural-urban disparities must be addressed while selecting institutions
to be tagged as "institutions of eminence".
GIAN(Global Initiative of Academic Networks GIAN) that brings talent pool of
scientists and entrepreneurs, internationally must be engaged with the institutes of
Higher Education in India so as to augment the countrys existing academic
resources, accelerate the pace of quality reform, and elevate Indias scientific and
technological capacity to global excellence.
Conclusion:
Development in educational sector is very crucial for the future of India and next
generations in India. The attempts of improving the educational sector will always be
beneficial to all the people living in India and mostly, to the children as good education
has a strong link with better jobs and opportunities.
The upcoming institutions are a step closer to a better India and its better future. A well-
thought decision should be made with regarding the issues in the educational sector
just like the decision of approval of word class institutions in India.
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issues relating to development and management of Social sector or Services
relating to Health, Education, Human Resources.
www.IASbaba.com
Page |8
Issue:
The use of moderation by the Central Board of Secondary Education while finalising
Class 12 marks under a Delhi High Court directive poses the immediate question of
how various State boards of education that have not adopted the practice will
respond.
It also points to the long-standing challenge of achieving comparability while
assessing students for undergraduate studies from different systems.
Some boards have already published the results without moderation, while others
will resort to the practice, making it necessary for college authorities to make offsets
while fixing admission criteria.
Another substantive concern is the pattern of testing procedures placing high
importance on a single external examination, without an assurance to all students
that the same tasks are being assessed on the same standards.
Across-the-board use of tools such as moderation also raises questions on the actual
scores.
It is extraordinary that tests for non-quantitative subjects such as English and
Political Science yield perfect scores of 100% in the CBSE examination and
elsewhere, giving the impression that the questions require to be answered only
within a limited framework laid out in a textbook, leaving little scope for creative
responses that reflect the quality of teaching in the classroom.
Concerns:
Moderation of marks under the CBSE policy has been followed partly to offset the
ambiguity of questions and any errors, and to achieve parity in the evaluation
process and the annual pass percentage.
The Central Board recently decided to do away with the practice, in consultation
with State boards, and sought the assistance of the Human Resource Development
Ministry to make a complete shift.
This is something the Ministry should take up on priority, since a consensus among
the States would eliminate litigation on grounds of uneven competition which is
what invited judicial intervention on the issue of moderation this year.
It is also relevant to point out that the emphasis on a single external examination
has heavily influenced the learning process, tailoring it almost entirely to score
marks. Built on a foundation of weak primary education, it does little to improve
outcomes for the majority of students at the secondary school level.
www.IASbaba.com
Page |9
Conclusion:
Policies should be done with due consultation and field expertise. Judicial intervention
in the interest of a particular section is vested and narrow. It is important to formulate
policies that are time tested and grants parity to the entire nations aspirants especially
in education and future deciding courses.
Connecting the dots
Critically discuss the impact of judicial interventions in education and course related
aspects. Does it amount to judicial overreach? Elaborate.
TOPIC:
General Studies 2
Important aspects of governance, transparency and accountability, egovernance
applications, models, successes, limitations, and potential; citizens charters,
transparency & accountability and institutional and other measures.
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
General Studies 3
Challenges to internal security through communication networks, role of media
and social networking sites in internal security challenges
Introduction
Law should be such that a layman can comprehend and be used for the welfare and
regulation of a law abiding society. But sometimes misuse of law can have wider
implications. The issue with preventive detention law and misuse of its provision is a
cause of concern.
www.IASbaba.com
P a g e | 10
Issue:
Preventive detention laws in the country have come to be associated with frequent
misuse.
Such laws confer extraordinary discretionary powers on the executive to detain
persons without bail for a period that may extend to one year and courts tend to
review them on the touchstone of strict adherence to the prescribed procedure.
Sometimes they question the invocation of the draconian power when sufficient
provisions are available in the ordinary laws of the land.
Several States have a law popularly known as the Goondas Act aimed at preventing
the dangerous activities of specified kinds of offenders.
In a recent order, the Supreme Court has questioned the use of words such as
goonda and prejudicial to the maintenance of public order as a rhetorical
incantation solely to justify an arbitrary detention order.
It struck down the detention of a man who had allegedly sold spurious chilli seeds in
Telangana, holding that the grounds of detention were extraneous to the Act.
This detention order has captured what is wrong with the frequent resort to
preventive detention laws.
It stated that recourse to normal legal procedure would be time-consuming and
would not be an effective deterrent against the sale of spurious seeds.
Therefore, it claimed, there was no option but to invoke the preventive detention
law to insulate society from the persons evil deeds.
The court rightly termed this as a gross abuse of statutory powers.
www.IASbaba.com
P a g e | 11
Those who authorise such preventive detention for flimsy reasons should
understand that prevention of crime needs an efficient system of investigation and
trial, and not draconian laws.
Conclusion:
Indias criminal justice system needs a reform from all fronts. It is further also true that
the reform should be holistic and transparent. Preventive detention laws and their
frequent misuse needs a permanent solution.
TOPIC:
General Studies 2:
Salient features of the Representation of Peoples Act
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Why in news?
The Election Commission has raised concerns regarding the recent amendments to the
Representation of the People Act and Companies Act, effected through the Finance Bill,
with respect to political funding. The Bill has a provision that allows anonymous
donations by companies to political parties through electoral bonds. It is believed that
anonymity would protect a company from reprisal by rival parties. The Bill also removes
the limit on donations.
Electoral bonds:
Finance Minister, Arun Jaitley had introduced the electoral bonds in his Budget speech
this year. These bonds which will resemble a promissory note and not an interest-paying
debt instrument will be sold by authorized banks and can be deposited in notified
accounts of political parties within the duration of their validity.
Advantages of Electoral Bonds:
Transparency Although the donors using the bonds will be anonymous (their
names will not be disclosed in the audit report to be filed by the party), their records
will nonetheless be maintained by the banks. Issuance of electoral bonds would
ensure that only legitimate, tax paid, accounted money comes into the political
system.
www.IASbaba.com
P a g e | 12
Secrecy This is particularly important for the donors in the sense that disclosing
their identity can result in them facing attacks from rival or opposition groups.
Earlier, political parties had to disclose details of the donors who made contributions
above Rs 20,000. The provision made it possible to track the identity and volume of
contributions received by every political party.
Promoting digitization This is one of the steps forward in the Digital India
Campaign. Earlier, the donors used to donate in cash in fear of losing anonymity. As
this was not curbed, huge chunks of black money flew into the party funds. But
through creation of electoral bonds, donors could make digital payments and yet
keep their identity secret.
Conclusion:
The opacity of political finance has been a significant part of the story of political
corruption in the country. In light of the ECs note of caution, the government needs to
revisit the changes it has made both in the RPA and the Companies Act.
www.IASbaba.com
P a g e | 13
TOPIC:
General Studies 1
Social empowerment
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Welfare schemes for vulnerable sections of the population by the Centre and States
and the performance of these schemes
General Studies 3
Indian economy and issues related to planning, mobilization of resources, growth,
development and employment.
Introduction:
A major problem with Indias labour force is the women are missing.
Indian women are not only staying out of the workforce, they are doing so in increasing
numbers across the board.
FLFP(Female labour force participation rate) is typically measured as the share of
women who are employed or are seeking work as a share of the working-age female
population.
The labour force participation rate (LFPR) for working-age women (15 years and older)
is abysmally low in India. At about 27%, it performs only slightly better than Afghanistan,
Pakistan and Saudi Arabia.
www.IASbaba.com
P a g e | 14
Gender segmentation:
The World Banks report finds a clear pattern of gender segmentation in both
manufacturing and services, where, for instance, about 90% of employees in female-
owned business in unorganized manufacturing are females.
Gender segmentation is a double-edged sword in the sense that just like female-owned
or female-led firms tend to hire more female workers, male owners and employers have
the same tendencies.
In the long run, such extreme levels of gender segmentation are obviously undesirable
and inefficient.
www.IASbaba.com
P a g e | 15
Way ahead:
A multifaceted response is required:
Regulatory changes example The Maternity Benefit (Amendment) Bill, 2016
Public awareness campaigns.
Improving law and order so that women feel secure outside their homes.
Encouraging entrepreneurship in women can be a good starting point.
Reshaping societal attitudes and beliefs about women participation in the labour
force.
Case study
A good example here is Bangladesh, where the export-oriented garment industry has
brought a large section of women into the workforce. It ranks sixth among 54 countries
on women business ownership, while India is at the bottom of the pile along with Iran,
United Arab Emirates, Egypt and Saudi Arabia.
Conclusion:
India needs to take gender segmentation as an opportunity. We need to increase
women entrepreneurship. Thus women will be creating jobs and opportunities for
themselves, and bringing other women on board. In short, if Indias growth story has to
www.IASbaba.com
P a g e | 16
translate into shared prosperity for all its people, then it cannot afford to have one half
of its population sit out.
Background
In 2016, India terminated its bilateral investment treaties (BIT) with 57 countries.
This meant that the countries companies in India and Indian companies in those
countries can no longer make use of the controversial arbitration procedures called
ISDS.
However, lapse of these BITs will not necessarily have any visible impact on capital
flows into India as existing investments will retain the past protections. Though, the
lack of a BIT means the present FDI flows are certainly less than they could have
been.
India is now looking forward to replace the individual treaties with EU countries with
a single India-EU free trade agreement. However, these negotiations showed no
signs of closure.
But, a decision by European Court of Justice (ECJ) saying that European Commission
cannot alone finalise a FTA and it needs approval from national parliaments to have
a trade deal poses new challenges for India to have FTA with EU.
ECJ held that since the ISDS provision allowed the removal of the disputes from the
jurisdiction of the courts of an EU member state, it could not be done without the
consent of the member states.
BITs
They are often detrimental for developing countries, as they provide extensive
protection for foreign investors through the ISDS arbitration procedures.
Investors who believe they are effected by policy changes can claim billions from the
state. This gives businesses an undesirable power position.
www.IASbaba.com
P a g e | 17
Examples in India - In the recent past, many multinationals including Vodafone Group
and Sistema have dragged India to international arbitration, citing treaty violation.
Model BIT
The revised model BIT will be used for re-negotiation of existing BITs and negotiation
of future BITs and investment chapters in Comprehensive Economic Cooperation
Agreements (CECAs)/ Comprehensive Economic Partnership Agreements (CEPAs) /
Free Trade Agreements (FTAs).
The new Indian Model BIT text will provide appropriate protection to foreign
investors in India and Indian investors in the foreign country, in the light of relevant
international precedents and practices.
It also states for a refined Investor State Dispute Settlement (ISDS) provision
requiring investors to exhaust local remedies before commencing international
arbitration along with other provisions such as national treatment, protections
against expropriation etc.
A BIT increases the comfort level and boosts the confidence of investors by assuring
a level playing field and non-discrimination in all matters while providing for an
independent forum for dispute settlement by arbitration. In turn, BITs help project
India as a preferred foreign direct investment (FDI) destination as well as protect
outbound Indian FDI.
The model excludes matters such as government procurement, taxation, subsidies,
compulsory licenses and national security to preserve the regulatory authority for
the Government.
www.IASbaba.com
P a g e | 18
However, the ECJ decision will impact the EUs ongoing FTA negotiations with India
among other countries. This has led to EU to consider other options
1. It could decide to discard the ISDS clauses in all its future FTAs. So, FTAs may be
negotiated where disputes between investors and states would be resolved using
the state-state dispute settlement (SSDS) mechanism. This can be a positive
outcome for India given its protectionist stand on BITs and ISDS.
2. EU could negotiate an FTA with ISDS provisions subject to the treaty being approved
by all EU member states. But there is very less chance of all EU member countries
ratifying such FTAs.
3. There is a possibility of negotiating an FTA without an ISDS provision but make ISDS
provisions a subject matter of an optional protocol provided this is permitted under
EU law. The optional protocol could theoretically bind the EUs partner country and
only those EU member countries that ratify it and thus give their consent to the
removal of investor-state disputes from their jurisdiction.
Conclusion
www.IASbaba.com
P a g e | 19
It is a good opportunity for India to rethink the best way of approaching the ISDS. India
should actively engage with EU for the FTA negotiations and create a robust and
transparent international judicial system like the MIC that would protect foreign
investment from states any regulatory exploitation.
TOPIC:
General Studies 3
Science and Technology- developments and their applications and effects in
everyday life Achievements of Indians in science & technology; indigenization of
technology and developing new technology.
What is INO?
The India-based Neutrino Observatory (INO) Project is a multi-institutional effort
aimed at building a world-class underground laboratory with a rock cover of
approx.1200 m for non-accelerator based high energy and nuclear physics research
in India.
It proposes to build an underground laboratory at Pottipuram in Bodi West hills of
Theni District of Tamil Nadu.
The initial goal of INO is to study neutrinos. Neutrinos are fundamental particles
belonging to the lepton family.
If the project is cleared, INO would house the largest magnet in the world, four
times more massive than the European Organization for Nuclear Research, CERNs
Compact Muon Solenoid (CMS) detectors magnet.
www.IASbaba.com
P a g e | 20
The issue
In March 2017, the National Green Tribunal (NGT) suspended the environmental
clearance (EC) granted to the INO and has ordered to file a fresh application for
clearance.
This was because new facts were found that the proposed INO lab was situated
about 4.9 km from Madhikettan Shola National Park in Idukki district of Kerala. Also,
as it is within 5km of the interstate boundary, it becomes a category A project.
This will require clearance under the Wild Life (Protection) Act, 1972 from the
National Board for Wild Life along with Environmental Clearances.
Even at the earliest, India shall be able to complete the construction of its
underground laboratory by 2022. This is way behind china which is expected to open
its neutrino observatory in 2019.
The procedural lapses and assumptions about the projects agenda have made a
project of this scale hard to make positive developments in field of scientific
research in India.
www.IASbaba.com
P a g e | 21
Conclusion:
The 1500 crore investment is not a waste of money as some call it so. In past 50 years,
more than half the Nobel Prizes in physics have been awarded to basic research in
particle physics, including the 2015 Prize for the discovery of neutrino oscillations.
Many allegations about neutrinos being radioactive particles and INO doubling up the
storage of nuclear waste are undermining Indias efforts in the world to make pioneering
research in science. The public apprehensions in such projects are totally
understandable. Hence this requires more communication between the scientific
community and the public.
A project of such magnitude and such goal requires to generate public support,
especially from the younger ones.
TOPIC:
General Studies 3:
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Government Budgeting, Taxation & its impact
General Studies 2:
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issue:
According to a recent report by the World Economic Forum, the retirement savings gap
in India is estimated to escalate to $85 trillion by 2050. And as most people in India do
not have any kind of insurance and, as the population ages, it will also be pension less.
The retirement savings gap will not only affect the quality of life of retirees, but can also
pose macroeconomic challenges. As the proportion of retirees rises in the population, a
shortfall in retirement income will affect consumption and growth. It will also affect
fiscal sustainability as governments will have to spend more on retirees even in
countries that do not have a state-funded retirement system.
What is NPS?
NPS (National Pension System) is a defined contribution based Pension Scheme
launched by Government of India with the following objectives-
www.IASbaba.com
P a g e | 22
What is required?
In order to improve financial security the policymakers should focus on three key
areas
Providing a safety- net pension for all.
Improving access to retirement plans
Encouraging initiatives to increase the rate of contribution.
Challenges:
Fiscal constraints. The biggest problem for India is that about 90% of the workforce
is in the unorganized sector and lacks proper access to retirement-saving
instruments.
The pension challenge in India will be fairly acute. According to the UN Population
Division, the share of population aged 60 or above will rise to 19% by 2050,
compared with 8% in 2010.
Even those who are investing may not be aware how much money they will need
after retirement and what it takes to attain that goal. People generally lack the
ability to make complex calculations and give more importance to their near-term
needs than a longer-term requirement like retirement saving.
www.IASbaba.com
P a g e | 23
Union finance minister Arun Jaitley, in his 2015 budget speech, announced steps for
creating a social security system. This included insurance and pension schemes,
mostly for the underprivileged segments of society.
Recent developments:
A new Rs 5,000-crore pension formula is in process. It is expected to benefit more than
five million central government employees. The new formula will calculate pension
based on the latest drawn salary for a particular post.
The new method was fixed by an empowered committee of secretaries (Ecos) headed
by secretary (pensions).
The seventh pay commission recommended that pension could be calculated by two
methods:
1. Pension would be 50% of the last salary and multiplied by 2.57.
2. An incremental method where pension was fixed at the last salary drawn with
adjustments of increments drawn in that particular pay band.
However, the incremental method was found to have lacunae as 20% of records were
found to be missing in various government departments, and officials felt this could lead
to litigation in future.
To avoid legal hurdles, the Ecos came up with the pay fixation method.
TOPIC:
General Studies 3:
Issues related to direct and indirect farm subsidies and minimum support prices
Inclusive growth and issues arising from it.
www.IASbaba.com
P a g e | 24
General Studies 2:
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Welfare schemes for vulnerable sections of the population by the Centre and States
and the performance of these schemes; mechanisms, laws, institutions and bodies
constituted for the protection and betterment of these vulnerable sections
Farmers' demands:
Full waiver of farm loans.
Hikes in the minimum support price for agricultural produce.
Writing off of pending electricity bills.
Government's response:
Maharashtra government promised to waive farm loans of small and marginal
farmers worth about Rs. 30,000 crore and set up a State commission to look into
the matter of raising the MSP for crops. The Chief Minister also promised that
buying agricultural produce below their MSP would soon be made a criminal
offence.
Issues:
Indian farmers faced two consecutive years of drought in 2014-15 and 2015-16. Such
an occurrence two droughts in a row only happened five times since 1870, and
on three occasions in independent India: The mid-sixties, the mid-eighties and now.
Despite this rare farmer tragedy, we did not observe any farmer riots during the
recent drought years.
More than 5,500 farmer suicides were recorded in 2014 and the figure rose at least
40% in 2015, with Maharashtra contributing the most, according to the National
Crime Records Bureau.In Maharashtra, which witnessed the highest number of
farmer suicides between 2014 and 2015. Between 2014 and 2015, the state saw an
18 per cent jump from 2,568 to 3,030.
The National Crime Records Bureau attributed the reasons to crop failure, failure to
sell produce, inability to repay loans, and other non-agriculture factors such as
poverty and property disputes.
www.IASbaba.com
P a g e | 25
www.IASbaba.com
P a g e | 26
In Madhya Pradesh, this year was the second year of a bumper onion crop with no
buyers. Farmers were forced to sell produce at for Rs 2 to 3 per kg as the state
government delayed announcing procurement price of Rs 8 per kg. 33% of onion
procured by the government rotted in absence of adequate storage facility
Our farm subsidy policy encourages the production of only low-value staples, such
as rice and wheat, and the output of fruits and vegetables that more Indians are
eating and farmers producing is not covered by the governments minimum
support price. Much of the farm distress sweeping India now stemmed from a glut
of potatoes, onion and tomatoes.
3. Agriculture still at mercy of monsoon rain:
For far too long, farming has been at the mercy of nature, especially the June-
September monsoon rain.
Agriculture in India is facing a tough time because of its dependence on the
monsoon. Over 50% of the crop area does not have any irrigation facility and almost
three-fourth of the annual rainfall is concentrated in four months a year, between
June and September. A deficit monsoon for two consecutive years in 2014 and 2015
and unseasonal showers ahead of the winter harvest in 2015 have hit the farmers
hard. Entire south India is bearing the brunt and Tamil Nadu is facing the worst
drought in 140 years.
4. Poor productivity:
The use of technology is patchy, and only one-tenth of every rupee the government
spends on rural areas goes to improving productivity which is why farmers in India
grow 46% less rice an acre than their Chinese counterparts.
5. Agricultural market- Yet not reformed:
The monopoly of traders over local agricultural markets is perpetuated by law, which
bars farmers from selling directly to consumers. This kills any chance of farmers
getting a fair price, lining the pockets of commission agents instead.
6. Politicisation:
The cardinal malaise lies in successive governments treating agriculture as a source
of votes and not an engine of growth
www.IASbaba.com
P a g e | 27
It does increase the problem of moral hazard by penalising sincere and law abiding
farmers.
It gives rise to a tendency to default if the loan waivers are not a one-time solution
but keep appearing every decade.
It certainly leads to a deterioration in the performance of banks but also has an
impact on credit off-take and repayments. It was the same approach of writing off
loans of big corporate defaulters which has led to a situation of unprecedented NPAs
in the banking system.
But it also penalizes the small and marginal farmers who are more dependent on
non-institutional sources of loan such as the local moneylender. The interest on
these loans is higher but these are excluded from any loan waiver scheme.
Way ahead:
The old, labour-intensive methods must give way to technology for efficiency and
higher yield
Pricing and subsidy mechanism must be overhauled.
The focus should be more on making the Pradhan Mantri Fasal Bima Yojana a
success rather than demanding farm loans waivers from banks.
The government should look at diversifying the cropping pattern and developing
new technology to fight drought. Bringing green revolution to eastern India(BGREI)
must be implemented in true spirit.
The Pradhan Mantri Fasal Bima Yojana, the new crop damage insurance scheme
approved by the Union cabinet in January 2016, is also a vast improvement on the
old crop insurance model in vogue since 1970s. The new scheme which has the
lowest premium so far has proposed use of remote sensing, smart phones and
drones for quick estimation of crop loss and speedy claim process. The focus should
be more on making this a success.
Conserving water, improving the irrigation facilities, and developing agriculture
markets and competition can be the building blocks for growth in agriculture and
mitigating farmers woes. State governments are barking up the wrong tree by
resorting to loan waivers.
The only long-term solution is to gradually align crop production with genuine price
signals, while moving ahead with reforms to de-risk agriculture, especially by
increasing the crop insurance cover. Expediting steps to reform the Agricultural
Produce Market Committee system and introduce the model contract farming law
would go a long way to free farmers from MSP-driven crop planning
Conclusion:
To be sure, India is reforming parts of its economy. But not farming. If farmers are to
escape poverty, farming needs to become more like manufacturing: Teched up
operations, free as far as possible from imponderables, churning out quality produce
that fetch the right price. It is imperative that policymakers and analysts understand the
www.IASbaba.com
P a g e | 28
causes behind the riots in order to best insure society, and farmers, from economic
doom.
In the past, a single season of dry spell was enough to send the economy into recession.
Now failed monsoons trigger localised distress. Thats an improvement. Still, far too
many farm households remain too poor. And unless the rural economy is unshackled
from a time and policy warp, our dream of double-digit economic growth will remain
just that: A dream.
www.IASbaba.com
P a g e | 29
Yet, India moved towards current account convertibility, it wasnt fast on capital
account convertibility which was conventional thing to do.
However, when India was recovering from her 1991 financial crisis, another crisis
was in the making in the East Asian Countries which had already embraced full
capital account convertibility.
There was a heavy capital inflow in these countries which when coupled with fixed
exchange rate regimes resulted in asset bubble burst in 1997.
Thus, post the crisis, there was new policy understanding about the difference
between the theory and practice of capital account liberalisation and how free
movement of short-term capital flows had destabilising effect on individual
economies.
Contrastingly, Indias approach of gradual lifting of capital controls was considered
sustainable.
Trade liberalisation
The theories mending the trade liberalisation policies has changed over the time
period.
Earlier the convention was to protect infant industry by giving state support through
high import tariffs or domestic subsidies until the industries have matured and
attained economies of scale.
During WWII, US had one of the highest import tariffs in the world.
Now, the conventional wisdom has changed over time. With the era of globalisation
and incoming of WTO agreement, trade facilitation has changed.
India has two examples of diametrically opposite views made by the policymakers
which resulted in two different results which hold a lot of value.
www.IASbaba.com
P a g e | 30
When India signed the Information Technology Agreement (ITA-I) in 1997 under
WTOs Singapore Ministerial Conference it removed tariff protection for IT hardware
products covered in the agreement.
Thus, electronic hardware imports became cheap which led to huge influx of
Japanese, Korean and Chinese manufactured IT hardware.
This negatively impacted Indian nascent electronics manufacturing as other
countries had built their capabilities previously whereas in India, the infant IT
manufacturing industry was barely born.
The effect today is such that Indian presence in this industry is hardly felt.
On the other hand
The auto and auto-ancillary sector in India was protected through high import duties
and other conditions in terms of mandatory localisation provisions and investment
restrictions
This led to healthy growth of auto sector in India. Today, India is a hub of world class
auto and auto parts sector.
This led to slowly withdrawal of most restrictions except high duties on fully
assembled vehicles.
Conclusion
There was a time when India was considered as a slow liberaliser and high import tariff
country. But om infact it was this organised policy making and long term vision which
has helped India in most sectors.
Today the world is once again turning to high import duties to protect their domestic
jobs and also restrict China from spreading its tanctacles of becoming manufacturing
hub in Asia.
India is in a good position in critical areas and sensitive sectors. Though it is not that
policy reforms should continue at slow rate only, but to consider diverse developmental
strategies possible while making a policy for a complex society.
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
General Studies 3
Conservation, environmental pollution and degradation, environmental impact
assessment
www.IASbaba.com
P a g e | 31
In news:
In May 2017 Nagpur became the first Indian city to have an electric cab fleetwith
about 100 EVs from the Mahindra stable and around 100 e-rickshaws from Kinetic linked
to the Ola transport aggregator platform. Also, the state-run power giant NTPC set up
its first Electric vehicle(EV) charging stations in Delhi and Noida.
Policy shifts:
Power minister Piyush Goyal has announced that government officials and agencies
will soon be using only EVs.
Public buses are also expected to go electric.
Road transport and highways minister Nitin Gadkari has promised a national EV
policy before the end of the year
The governments think tank, Niti Aayog, has already put out a road map for Indias
mobility transformation that has three core elements: shared, electric, and
connected.
The goal, according to the power minister, is to have no diesel or petrol car sales in
the country by 2030.
This marks a sharp shift from the current policy that incentivizes both hybrid vehicles
which combine fossil fuel and electric power and electric cars.
www.IASbaba.com
P a g e | 32
eco-friendly vehicles to up to 7 million vehicles by the year 2020. However, sales of EVs
have been abysmally poor.
Benefits of EVs:
Environment-friendly EVs will reduce air pollution and thus contribute to the fight
against climate change. As per NITI Aayog's report EVs will help in cutting down as
much as 1 gigatonne (GT) of carbon emissions by 2030
Lower Indias dependence on imported oil
Will cut Indias energy demand (from the road sector for passenger mobility).
Save the country $60 billion in energy bills on petrol and diesel by 2030(As per Niti
Aayog)
EVs efficientwith regenerative braking capturing energy otherwise wasted and
also due to the inherent efficiency of motors, especially at low speeds
www.IASbaba.com
P a g e | 33
ethanol was all the rage and the government again put good money into developing a
market for it but eventually it too collapsed.
These examples indicate there are many risks associated with the government picking
the winnera job that is better left to the market and industry.
Conclusion:
The government should have a role. However, instead of trying to pick winners, the
government should focus on building an enabling business environment that supports
research and innovation. Thus, instead of pumping money into one project or firm, it
should support clean energy research in general. That way, the government does its part
in steering the policy ship towards clean energy while still being technology-agnostic.
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
General Studies 3
Conservation, environmental pollution and degradation, environmental impact
assessment
Science and Technology developments and their applications and effects in
everyday life
Achievements of Indians in science & technology; indigenization of technology and
developing new technology
Introduction:
Wind energy in India has seen steady development in the last decade. With 32,279.77
MW of installed wind generation capacity (compared to 12,288.83 MW of solar power),
India is one of the leading generators of wind energy worldwide. Yet, due to certain
constraints, and more recently the more competitive rates in solar energy, there are
concerns that the share of wind energy may decline.
www.IASbaba.com
P a g e | 34
www.IASbaba.com
P a g e | 35
the traction force during reel-in by 80 per cent, thereby allowing less energy to be
consumed as against the energy generated during the reel-out cycle. Once the
descent is complete, the kite is allowed to climb once more, where it generates
electricity once again. This allows these kites to be more efficient than traditional
wind turbines.
Source:https://www.thememo.com/2017/05/30/kite-wind-farms-take-off-in-uk-as-
fut....
www.IASbaba.com
P a g e | 36
elements like neodymium for the magnet in a wind power plant, thereby making
them far more environment-friendly than their conventional counterparts.
Wind kites also require less power to operate.
Challenges:
Some technical issues will have to be resolved before these kites can replace
traditional turbines.
A major challenge is lightning, which could damage the small computer placed inside
the kite.
Given the height at which the kites would be flying, the location of these wind farms
will have to be carefully planned so as not to interfere with or hamper the flight
paths of aeroplanes.
Conclusion:
Although India is no longer deemed power-deficient, it is by no means energy secure
as millions of people do not have access to grid connections. As connectivity
increases, the demand for power will surge. Moreover, initiatives like Make in India,
Power for All Campaign for total rural electrification by the end of 2017, and the
drive to ramp up the use of electric vehicles in place of fossil fuel-based vehicles,
among others, will see a quantum jump in energy consumption. While evolving solar
technology can fill some of the gap, the government should also look at other new
energy technologies across the energy spectrum to meet its energy generation
target. Indias record in wind energy development is good. But the existing
technology is fast becoming outdated. Evolving technologies like kite wind should
therefore be considered.
TOPIC:
General studies 2:
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issues relating to development and management of Social Sector or Services
relating to Health, Education, Human Resources.
General studies 3:
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Inclusive growth and issues arising from it.
www.IASbaba.com
P a g e | 37
www.IASbaba.com
P a g e | 38
Issues:
The governments initiative has had an impact on only a small section of start-ups.
Many of the steps taken by government is unlikely to have a meaningful impact
unless the number of recognized starts-up is in the thousands.
So far, there have been only limited disbursementscommitments to the tune of
about Rs600 crore have been made and there is a budget allocation of Rs1,100 crore.
This is a small amount compared to the nearly Rs16,000 crore start-up funding in
2016.
The details of the promised credit guarantee fund for start-ups are not out yet
except that it is intended to have a corpus of Rs2,000 crore, to be built over four
years.
Since start-ups dont make profits in their early period and the minimum alternative
tax is still applicable, the benefits of a three-year tax holiday are only notional.
Way forward:
All start-ups, regardless of whether they are considered innovative by the
government, should be able to enjoy the benefits, so as to encourage
entrepreneurship and generate jobs. The government should not get into defining
and deciding what innovation means.
Ease of closure- A critical measure to enable start-ups which could go on to fail (and
a lot of them do) is the ease of closure. In this regard, the rules for voluntary
liquidation are still in the works. The rules should be released and notified soon
permitting start-ups to wind up business within 90 days.
Start Up festivals and The Grand Challenge award announced by government is
welocme . But such hand-holding is the job of incubators and accelerators, and the
government should focus on clarifying policy questions.
Conclusion:
It is commendable that the government thought of start-ups as a separate category,
recognized their potential, and came out with a visionary plan to promote start-up
culture and entrepreneurship in India. However, much of its efforts have been restricted
by what we can term bureaucratic impediments, so progress has been limited. The
government needs to review the policy soon, remove impediments and give a stronger
impetus to start-ups. Importantly, it also needs to reduce the flight of successful start-
ups to other jurisdictions. Thus a lot more needs to be done to provide a strong fillip to
the start-up world.
www.IASbaba.com
P a g e | 39
TOPIC:
General Studies 3
Infrastructure: Energy
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
India has gained global attention for its ambitious clean energy targets. India is now
expected to play a major role in global energy transformation, by maintaining its own
pledges, holding to account the developed world and thus, building global confidence.
Ambitious targets:
In 2014, the domestic RE target was revised to 175 GW of installed capacity by 2022.
In 2015, in its Intended Nationally Determined Contributions (INDC), India made a
global pledge to achieve 40% cumulative installed capacity from fossil-fuel-free
resources by 2030.
The country already has 33% fossil-fuel-free generation capacity, and as predicted
by Central Electricity Authority, it may achieve the INDC target sooner.
Issues:
1) Domestic target versus global pledge
No sync between the domestic target and global pledge: Several analyses have
pointed out that if India achieves the 2022 target, it will likely overachieve the INDC
target for next five years.
As many of the distribution companies (discoms) are struggling with surplus capacity
and storage capacities are yet to be developed, RE will add to power scheduling and
balancing woes.
2) Mismatch between RE capacity and energy generated:
www.IASbaba.com
P a g e | 40
Source:
http://www.livemint.com/r/LiveMint/Period2/2017/06/14/Photos/Processed/w_o
ped.jpg
3) Focus on building a domestic reform coalition is inadequate:
Past experiences in India suggest Centre-pushed reforms have failed to sustain,
owing to poor sub-national adoption.
Sustaining the desired energy transformation needs alignment of interests and
building a reform coalition between the Centre, states, utilities, regulators and
private players, among others.
On the deployment front, while there is good progress in reaching the 60 GW utility
scale solar capacity, rooftop solar is lagging behind. As of April, only 1.5 GW capacity
has been installed against a target of 40 GW by 2022.
4) Conventional power suppliers will be affected:
The rise in cheap supply from renewable sources would affect the demand from
conventional power suppliers in India. A hit in revenue will hurt the ability of thermal
power companies to repay loans, which would mean more trouble for the banking
sector.
The fall in tariffs(solar power) may make adjustments difficult for conventional
power producers
www.IASbaba.com
P a g e | 41
Way ahead:
A high-level policy signal is in place, a political mandate is shaping up and implementing
actors are coming up. To meet the global expectations, India needs much more
proactive and creative actions.
It needs to ensure that proposed RE capacity transforms the consumable energy
mix. To do so, India must balance between complementing generation capacities
rather than pushing for preferred technologies.
In addition, given the unpredictability of RE generation, the time is ripe for storage
capacity development.
The proposed policy goal of electric vehicles is a welcome step, but it needs to be
creatively used for storage, while reaping other co-benefits.
Finally, the state must facilitate a domestic coalition for energy transformation, by
aligning interests.
We should prioritise the increase in shares of all renewable sources proportionately
for greater reach in clean energy. Portugal and Costa Rica, for example, depend upon
a renewable energy mix that affords due importance to solar, wind and hydropower,
and the results speak for themselves
www.IASbaba.com
P a g e | 42
Ensuring the right incentives are in place, not just for solar but all renewables, as
well as strictly directing funds from the coal tax to NCFE to facilitate larger
investment.
Conclusion:
With ambitious targets and policy incentives India is surely on its path of energy
transformation. Globally moving towards renewable energy will help fight climate
change while domestically it will help in energy security and economic development.
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
India and its neighborhood relations.
General Studies 3
Science and Technology developments and their applications and effects in
everyday life
Awareness in the fields of IT, Space
www.IASbaba.com
P a g e | 43
Possible application:
Health- Big Data is being used to find solutions of Multi Drug Resistant bacteria,
HIV/AIDS, Cancer etc. Data-driven medicine involves analyzing vast numbers of
medical records and images for patterns which can help spot disease early and
develop new medicines.
Education- Andhra Pradesh govt has cooperated with tech giant Microsoft to analyze
school drop out rate and suggest solutions.
Climate change- A number of variable affecting climate change makes big Data only
option for successful analysis and suggesting remedial steps.
Agriculture- It can be employed to analyze soil health, predict water availability,
impact of pesticides etc. Agriculture is being revolutionized by data which can be
used to maximize crop yields, minimize the amount of pollutants released into the
ecosystem and optimize the use of machines and equipment
Predict and respond to natural and man-made disasters- Sensor data can be
analyzed to predict where earthquakes are likely to strike next, and patterns of
human behavior give clues which help aid organizations give relief to survivors. Big
Data technology is also used to monitor and safeguard the flow of refugees away
from war zones around the world
Crime tracking & prevention- It can be used to reduce crime by exposing Nexus and
crime trends invisible by naked eyes. Police forces are increasingly adopting data-
driven strategies based on their own intelligence and public data sets in order to
deploy resources more efficiently and act as a deterrent where one is needed.
Make our everyday lives easier and more convenient- Shopping online,
crowdsourcing a ride or a place to stay on holiday, choosing the best time to book
flights and deciding what movie to watch next are all easier thanks to Big Data.
Improved governance- Big data and advanced analytics platform can play a critical
role in integrating and exploiting the multiple data sources to help tax departments
in efficient discharge of their responsibilities and bridging the tax gap. This will not
only help them build integrated views of tax filers and individual tax submissions but
also empower them to respond in a more targeted way , thereby using resources
optimally.
It is an indispensable tool for effective policy making , efficient public service delivery
and better resource optimization. Big Data can enhance the governments ability to
serve its citizens and address major national challenges involving the economy,
healthcare, job creation, natural disasters, and terrorism.
www.IASbaba.com
P a g e | 44
Data privacy The Big Data we now generate contains a lot of information about
our personal lives, much of which we have a right to keep private. Increasingly we
are asked to strike a balance between the amount of personal data we divulge, and
the convenience that Big Data powered apps and services offer.
Data security- One major problem with collecting and storing such vast amounts of
data overseas is the ability of owners of such data stores to violate the privacy of
people. Foreign governments or rogue multinationals could clandestinely access
these vast pools of personal data in order to affect policies of a nation. Such
knowledge could prove toxic and detrimental in the hands of unscrupulous elements
or hostile foreign governments. The alleged Russian interference in the U.S. election
tells us that these possibilities are not simply science fiction fantasies.
Data discrimination When everything is known, will it become acceptable to
discriminate against people based on data we have on their lives? We already use
credit scoring to decide who can borrow money, and insurance is heavily data-
driven. We can expect to be analyzed and assessed in greater detail.
Potential drain of economic wealth of a nation- Currently, the corporations
collecting such vast amounts of data are all based in developed countries, mostly in
the U.S. Most emerging economies, including India, have neither the knowledge nor
the favourable environment for businesses that collect data on such a vast scale. The
advertising revenue that is currently earned by local newspapers or other media
companies would eventually start to flow outside the country to overseas
multinationals.
www.IASbaba.com
P a g e | 45
We need to develop software and train individuals on how to protect their privacy
and for organisations and government officials to put in place strict firewalls, data
backup and secure procedures.
It should be ensured that the information is not distorted; not disclosed; not
appropriated; not stolen; and not intruded upon within specified rules and
guidelines. Hence the importance of government regulation and policies on the use
of such collected data and associated privacy rights.
India also needs to adopt BDT in areas where it can prove to be beneficial. Gartner,
a research firm expects over 25% of global firms to have adopted big analytics for at
least one security and fraud detection use case by 2016 and therefore, countries
such as India, China, and Singapore will find themselves at the receiving end, if they
do not translate their failure- to adoption of Big Data for increased security
purposes.
Conclusion:
The government has approved the Digital India Plan that aims to connect 2.5 lakh
villages to the Internet by 2019 and to bring Wi-Fi access to 2.5 lakh schools, all
universities and public places in major cities and major tourist centres. This is indeed a
very desirable policy step. But unless we evolve appropriate policies to counter the side
effects of the Digital Plan, this could also lead to the unforeseen e-Colonisation of India.
We need to make sure that India finds a way to protect both financial rewards and
ensure individual privacy and national security through appropriate safeguards.
TOPIC:
General Studies 2
Indian Constitution- historical underpinnings, evolution, features, amendments,
significant provisions and basic structure.
Functions and responsibilities of the Union and the States, issues and challenges
pertaining to the federal structure, devolution of powers and finances up to local
levels and challenges therein.
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
www.IASbaba.com
P a g e | 46
In news:
The viral of farm loan waivers is acquiring epidemic proportions. Unfortunately,
broader structural changes in agriculture have eluded coherent implementation. The
loan waivers of February 1990 by the National Front government led to sharp fiscal
deterioration and the subsequent balance of payments crisis. Subsequent loan waivers
had similar results. State governments are entitled to take such decisions but manage
their financial consequences. Farm loan waivers are a subset of the broader issue of
sustainable State finances. We need to address several issues.
Fiscal consolidation
State expenditure higher than that of centre:
Following the 14th Finance Commission recommendations, the total State
expenditure (as a percentage of GSDP) is higher than even the Centres.
State finances have increasingly become a crucial lynchpin of Indias fiscal
framework. Many State governments have adopted State-level fiscal laws and
adhered to the 3% fiscal target under the State-level FRBMs (Fiscal Responsibility
and Budget Management Act).
However as per a report of the Reserve Bank, State Finances: A Study of Budgets
2016-17, the combined deficit of the States reached 3.6% of GDP in FY16, significantly
higher than 2.6% in the previous year. This significantly breaches the 3% fiscal deficit
stipulated by the States themselves in their FRBMs. The fiscal consolidation of the
Centre is more than offset by expansion of the States. This is partly explained by the
State power distribution companies (DISCOM) debt, 75% of which will be explicitly
accounted in States balance sheets, and treated as capital spending in fiscal accounts.
The quality of compliance by States has also deteriorated. These go beyond UDAY
(Ujwal DISCOM Assurance Yojana) to include irregularities in food credit accounts of
State governments with commercial banks, off-balance sheet expenditures, and
creative accounting engineering to evade stipulated targets.
www.IASbaba.com
P a g e | 47
Conclusion:
Investors recognize and reward macro stability. Fiscal prudence exercised by the Central
government has been widely acclaimed. The management of State finances must not
undercut this important achievement which is central to investor confidence and
enhanced credit rating. Unchecked profligacy by States can undermine the overall
macro stability and thus must be checked.
www.IASbaba.com
P a g e | 48
TOPIC:
General Studies 2
Parliament and State Legislatures structure, functioning, conduct of business,
powers & privileges and issues arising out of these.
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
In news:
West Bengals Darjeeling district has been on the boil over a separate state demand and
witnessed widespread clashes between Gorkha Janmukti Morcha activists and the
police. The tourism sector has been hit hard.
Background:
Sikkim gifted Darjeeling to the East India Company in 1835. Historically, until 1905,
when the then Viceroy of India, Lord Curzon, effected the partition of Bengal,
Darjeeling was a part of the Rajshahi division, now in Bangladesh. From 1905 to 1912
Darjeeling formed a part of the Bhagalpur division now in Bihar. It was given back to
Rajshahi in 1912 and remained with the Rajshahi division till Partition.
The Gorkhaland region, comprising the districts of Darjeeling and Jalpaiguri, is home
to a large number of Nepali speakers, who resent being part of a state dominated
by Bengali speakers. It remains among the earliest demands for statehood in India.
Recognised as an official language of Bengal in 1961, Nepali is the official language
in the hills of West Bengal. In 1992, Nepali was recognised as one of the official
languages of India.
www.IASbaba.com
P a g e | 49
The tactful and rigid segregation of workers from the British era to the line of
ethnicity in the hills, where the Nepalese were brought in and the plains, where the
Chottanagpur migrants worked, rendered one community hostile against the other.
The few Bengalis present in the hills were and have always been the babus, working
for the British and then the State. The marwaris have controlled most of the wealth,
further isolating the Nepali population.
The Nepalese find themselves reduced to second class citizens, at the hands of these
otherwise miniscule inhabitants.
The movement led by the Gorkha National Liberation Front, projected the CPM-led
government in Bengal as anti-Nepali.
The demand for Gorkhaland has always found its support among the tea plantation
workers. Kipat (ownership of land by a community) and Maato (mud) remain central
to the movement.
Way forward:
www.IASbaba.com
P a g e | 50
The State government must reach out to the GJM and work out a way to transfer
powers to the GTA as was promised in 2011. A signal in this direction will go a long
way in tamping down the violent agitation. It should also abandon its wishful
thinking that short cuts can solve the intractable Gorkhaland issue, which is
culturally rooted.
Take steps to empower the Gorkhaland Territorial Administration. In the years since
the establishment of GTA, little has been done on the ground to transfer many of
the subjects to the body as was promised, rendering the notion of autonomous rule
in the Hills rather moot.
Language has been a fraught issue in the Darjeeling hills for more than a century.
Identity politics aside, there is something utilitarian about learning a language.
Learning the language, formally, will only help expand the economic avenues of
Nepali-speaking people in the Darjeeling hills in West Bengal.
A dialogue must be initiated with those demanding a separate Gorkhaland state and
the issue thoroughly examined, and that it should not be kept lingering for long.
Conclusion:
The demand for carving out a separate state, Gorkhaland, from West Bengal is a
decades old demand. The issue needs to be handled diplomatically. The cultural divide
based on ethnicity and language must be bridged and this can be done only through
discussion and engagement rather than violence. The GJM and the state government
with the Centre as mediator must come together to bring this issue to a peaceful end.
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issues relating to development and management of Social Sector/Services relating
to Health, Education, Human Resources.
Important aspects of governance, transparency and accountability
www.IASbaba.com
P a g e | 51
Introduction:
Knowledge-based economies use ICT, innovation and research, higher education and
specialised skills to create, disseminate and apply knowledge for growth.
Transformational idea emanates from knowledge institutions. This can then be put to
practical use by a for-profit company.
Advanced Asian economies such as Japan, Korea, Singapore, Taipei and China have
successfully shifted from agriculture to manufacturing to knowledge-based industries.
China and India, have built pockets of knowledge-based growth, but have not yet
translated this into a broader economic model. Countries such as Bangladesh,
Myanmar, and Lao have yet to really embark upon knowledge-based growth.
Examples:
Nike has been experimenting with the use of 3D printers to manufacture shoes.
These areas of high-end technology have a rapid rate of convergence. It is well nigh
possible that our shoe manufacturing industry could be hard-hit in no time.
Google is still very much smaller than the Indian IT company in terms of employees,
but it earns much more in one quarter than what the Indian IT company earns in a
whole year. This is simply because Google is based on a knowledge idea that has
connections to Stanford. The Indian IT company, alas, is dependent on brawn as
opposed to brains.
A former professor of robotics at the Georgia Institute of Technology has helped
create a robotic tailor that can stitch a perfect circle. The only seemingly viable
option for the garments industry in the Asian region is to seek to import such
machines. There goes a part of our plan to keep unemployment figures down. This
indicates troubling future of the garments industry.
Indian context:
As per the Mimansa school of Indian philosophy, Knowledge without action is
meaningless. India has accrued enormous for centuries based on our knowledge
systems:
www.IASbaba.com
P a g e | 52
C.V. Raman was in the office of the accountant general while making his discovery.
In ancient India, much before Christ and the Greeks, some outstanding mathematics
was discovered and driven by societal needs.
Knowledge systems in India invented cataract surgery and plastic surgery much
before Christ.
The invention and use of the rapalgai a rope-based device also called kamal
enabled our merchant ships to calculate positions at sea at a time when Europe was
clueless.
Way ahead:
India has the potential to become a leading knowledge-based economy with its
youth population and growing information technology.
Policy if at all must simply be more in the realm of enlightened inducement
that encourages and engenders good practices. It must nurture and encourage
initiative and out-of-the-box thinking and should be, to an extent, ready to
accommodate risk taking and have room for failure.
Institutions have to move out of traditional modes of thinking and must recognise
that knowledge can exist in all realms, not just in formal systems around academia.
The need to develop and nurture educational institutions in a manner that ensures
their linkages to the needs and challenges of the nation including its economic
needs. This requires inducing young minds to grapple with the challenges of the
nation and society.
Steps such as supportive laws, improved infrastructure, removal of barriers to trade
and investment, up-skilling of labour force, higher spending in R&D and innovative
financing for small businesses must be taken urgently.
Regulatory, education, and infrastructure barriers must be overcome.
What is required is a strong, coordinated government policies coupled with
investment in ICT including universal, affordable and high-speed broadband
connectivity, better education notably tertiary and skills-focused training, and a
culture of research and innovation with strong intellectual property rights. Flexible
capital and labor markets are also crucial.
Conclusion:
The shift to knowledge-based growth is critical since Indias comparative advantages in
labor and capital-intensive manufacturing are fading. New technologies like robotics,
and increasing stress on resources like energy and water, are emerging as threats to
Asias competitive edge. A shift to innovation-based growth would help India avoid the
middle-income trap and also address rising income inequalities.
www.IASbaba.com
P a g e | 53
TOPIC:
General Studies 1:
Role of women and womens organization, population and associated issues
Social empowerment
General studies 3:
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Inclusive growth and issues arising from it.
Major crops cropping patterns in various parts of the country, irrigation,
agricultural produce and issues and related constraints; e-technology in the aid of
farmers.
www.IASbaba.com
P a g e | 54
political representatives and bargaining for MSPs (minimum support prices), loans
and subsidies, remain male activities.
Weaknesses in women's rights to land also results in the inability to use land as
collateral to obtain credit that is crucial to the purchase of inputs such as seeds and
fertilisers. This, in turn, limits adoption of new technology.
Unlike male farmers and cultivators, their female counterparts remained doubly
burdened during their peak productive period with their reproductive role seen as
fundamental to their gender. So even as women laboured in fields, they continued
to have and rear children almost single-handedly. In many regions of the developing
world, women spend up to five hours a day gathering fuel wood and water and up
to 4 hours preparing food. This cuts short time on child care.
Women possess traditional knowledge of agriculture and they often possess unique
knowledge about livestock, fish and many conventional aspects of farming. But, in
many organised activities, women are left behind in the up-gradation of their
knowledge and skills. FAO study conducted recently found that women in
developing countries contributed about 80% towards food production but received
only 2% to 10% of the extension services (FAO, 1998).
Agricultural extension agents are a critically important source of technology
information to women farmers, given the generally lower levels of education of
women compared to men. Yet, the UNEP (United Nations Environment Programme)
in 1988 reported that less than 1 per cent of government-employed agricultural
advisers in Asia and West Asia are women.
India has one of the largest agricultural research and education systems in the world
with an estimated stock of about three lakh graduates in the year 2010, out of which
about 25 per cent are women (Rama Rao et al, 2011). But women presence is
negligible in high-level decision-making bodies, advisory boards and national
academies. agricultural education and work places sensitive to women's needs
Women farmers are not given many benefits and do not hold social connections
such as credit or market networks.
They are even denied irrigation rights because that is provided by the government
only to those male farmers who have agreed to grow commercial cash crops on their
land and women, on the other hand, use the irrigation water for household use and
also to grow subsistence crops.
Women working on fields, alongside their husbands, arent considered farmers per
say, and therefore suicides committed by women are rarely considered farmer
suicides, thus leaving them out from benefitting from the government schemes.
Way out:
The Food and Agriculture Organisation of the United Nations stress upon the
increasing access to many inputs to productive agriculture, including credit,
education and land, and at the same time, promote the development of rural female
farmers organisations.
www.IASbaba.com
P a g e | 55
Updating the legal codes to give women the legal rights of property ownership and
credit, which can allow for increased food security.
Mechanisation of agriculture: Rapid urbanisation and increased participation of
women in the labour force makes a great demand on women's time. This calls for
developing technology which relieve women of ``time burdens'' in agricultural
production and maintenance without sacrificing their ability to earn independent
incomes.
Employing women agricultural extension workers is particularly important in
societies which forbid the interaction of women farmers with men agricultural
extension agents.
Conclusion:
In spite of the best efforts, the programmes aimed at women fail to realise the desired
goals as they are rarely designed and managed by women. This is one of the serious
concerns of social planners. Women can play a significant role in agriculture related
activities if they are provided relevant education and training. The educated and trained
women in agriculture can provide extension services as well as can help in transfer of
technologies to the farm women.
TOPIC:
General Studies 1
Poverty and developmental issues, urbanization, their problems and their
remedies
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issues relating to poverty and hunger.
Introduction:
By 2030, it is projected that 60 per cent of the population in developing countries will
live in cities. Cities have a strategic role to play in developing sustainable food systems
and promoting healthy diets. As India progresses towards a rapid phase of urbanisation,
attempts are being made to build urban agricultural systems.
www.IASbaba.com
P a g e | 56
www.IASbaba.com
P a g e | 57
Providing access to healthy foods in neighborhoods that lack it, as well as economic
stimulation, community engagement, and significant reductions in greenhouse gas
emissions.
The practice of urban agriculture promotes economic development through food
production, builds social capital, community well-being and civic engagement.
Urban agriculture can be a sustainable strategy to reduce urban poverty, food
insecurity and enhance urban environmental management.
It contributes to poverty alleviation, social inclusion of the poor, women
empowerment, productive use of vacant plots and reuse of urban waste.
Urban growers can sell directly by avoiding intermediaries and spend less time on
transport, packaging and storage.
Further, urban agriculture can create employment opportunities for disadvantaged
groups.
Apart from the benefits to the economy, urban agriculture stimulates the
development of related micro-enterprises.
Greater access to produce could help improve the diet of city residents, and
replacing pavement with soil could help abate water runoff, for example.
The importance of urban agriculture is also being recognised by various organisations
such as the United Nations-Habitat and FAO (Food and Agriculture Organisation).
Challenges:
Inattentiveness in practising urban agriculture may cause health and environmental
risks such as use of contaminated land, inappropriate use of pesticides or raw
organic manure leaking into water sources.
Increasing pollution, and contamination of the citys waste water with industrial
effluents is a major constraint to the continued viability of irrigated farming and
aquaculture in urban and peri-urban areas.
While city-grown vegetables can have a slightly lower environmental impact than
those grown thousands of miles away, horticulture has never been the real problem.
It's not apples and tomatoes that are responsible for most of the diet's greenhouse
gas emissions; it's animals- meat and dairy products. Thus the focus should not only
be on growing vegeatbles.
www.IASbaba.com
P a g e | 58
From the social angle, subsistence agriculture can form part of the livelihood
strategies of urban households.
The economic angle is primarily market-oriented urban agriculture, involving small-
scale, family-based initiatives and larger-scale entrepreneurial farms, run by private
investors or producer associations.
The environment management factor lies in nutrient recycling, adoption of agro-
ecological production methods, eco-sanitation and waste management.
Incorporating urban agriculture into the policies and systems of every city will play an
important role in unleashing its full potential.
Demarcating zones:
Cities can facilitate the access to urban spaces by having demarcated zones, similar
to Pretoria and Beijing. Making an inventory of the available vacant open land within
the city by community mapping or GIS-based data and by analysing its suitability for
agriculture will be a good starting point for enhancing access to land for urban
farming. Giving short- or medium-term leases to organised groups of urban
producers for gardening purposes can also help.
Clearly earmarking zones and avoiding unscientific intervention where only urban
agriculture suited to local conditions and resource availability is practised can
reduce possible health and environmental risks.
Conclusion:
Urban agriculture has the potential to become a vibrant economic sector that quickly
adapts to changing conditions and demands, intensifying its productivity and
diversifying its functions for the city. Its future will depend on its contributions to the
development of a sustainable and resilient city that is inclusive, food-secure, productive
and healthy, thus establishing food-smart cities. Urban agriculture, although not a
solution to food insecurity, has the potential to provide millions with access to food and
nutrition.
TOPIC:
General studies 2
Parliament and State Legislatures structure, functioning, conduct of business,
powers & privileges and issues arising out of these.
www.IASbaba.com
P a g e | 59
In news:
After the assembly elections in 2014, a troubling situation has emerged in Andhra
Pradesh and Telangana. As of date, 27 legislators are alleged to have defected from
various parties to the ruling Telangana Rashtra Samiti (TRS) since 2014. The speaker, S
Madhusudhana Chary, himself a member of the TRS, has not taken any decision on the
disqualification petitions filed against these MLAs over these three years. Likewise, in
Andhra Pradesh, the Telugu Desam Party (TDP) in power has been able to get 21 MLAs
from the Yuvajana Shramika Rythu Congress Party (YSRCP) to defect to it, without
suffering disqualification. Here too, Speaker Kodela Siva Prasada Rao, a member of the
TDP, has taken no decision on the disqualification petitions.
The question that "does the Tenth Schedule, in its present form, strike the right balance
between the freedoms of the legislator and the need for respecting democratic
mandates and processes?" has emerged again.
www.IASbaba.com
P a g e | 60
Conclusion:
The above changes are necessary since what has taken place in Telangana and Andhra
Pradesh is probably being watched with interest by political parties around the country.
Given that most ideas concerning governance in India, good or bad, have travelled from
the states to the centre, the day may not be far when the central government is formed
through an illegitimate majority gained only by flagrant violation of the Tenth Schedule.
TOPIC:
General Studies 2
www.IASbaba.com
P a g e | 61
Blockchain Voting
Introduction:
Allegations of EVM tampering by political parties have certainly planted seeds of
mistrust among the people. Studies allege that EVMs have hardware and software
vulnerabilities that can be exploited to commit election malpractices.
Contemporary and emerging technologies seek to address the core incompetencies in
the infrastructure of the voting system through advances in networking and encryption
methods. An emerging technology called blockchain is in various stages of
implementation across the world for voting and other public services.
www.IASbaba.com
P a g e | 62
Indian context:
In India, given the deep penetration of cellphones and the unique identification
(Aadhaar) system, blockchain could be a practical and feasible tool to fight voter
fraud and alleviate vote authentication and validation concerns.
Aadhaar cards and electronic-know your customer (e-KYC) norms are already
becoming mainstream. These critical infrastructure components can be leveraged
to implement blockchain solutions in voting and public services such as land
registrations, public-private contracts and other service level agreements (SLA).
The technology sector is also responding positively by increasing investments and
resources. For instance, around 32 blockchain firms were founded in India in 2016,
up from 23 founded before 2016, according to a fintech report by PwC.
The Reserve Bank of Indias research arm has also developed proof of concepts with
a few banks on blockchain, and it said in its white paper that the results are quite
encouraging, giving comfort and confidence in the implementability of blockchain
technology.
The proactive study and prototyping of emerging technologies creates an
encouraging environment for other independent government agencies to venture
out and experiment.
Conclusion:
Keeping in mind the emerging and potential threats to the current voting system, it is
essential to experiment with new technologies that can potentially secure the system.
Conducting research, building proof of concepts and end-to-end pilots by leveraging the
burgeoning activity in blockchain technology can be undertaken by the ECI. Given the
favourable conditions of improved infrastructure and interest, the time is ripe for the
ECI to explore blockchain technology as a future alternative to EVMs.
www.IASbaba.com
P a g e | 63
Recent allegations of EVM tampering must be dealt with seriously as free and fair
elections is bedrock of Indian democracy. Discuss how technology like Blockchain
can be used to make EVMs tamper proof.
TOPIC:
General Studies 2:
Important aspects of governance, transparency and accountability, e-governance-
applications, models, successes, limitations, and potential; Government policies
and interventions for development in various sectors and issues arising out of their
design and implementation.
In news:
The Union Ministry of Urban Developments ministry recently released its fourth list
under the Smart City Mission, taking the total number of cities picked under the
Centres flagship project to 90 10 more cities will be included in the project.
Background:
Smart Cities can be defined as places where information technology is combined with
infrastructure, architecture, everyday objects, and our own bodies to address social,
economic, and environmental problems.
One of the stated objectives of the Smart City Mission is to act as a corrective to a
lopsided developmental pattern. The mission intends to create employment and
enhance incomes for all, especially the poor and disadvantaged leading to inclusive
cities.
Official data shows that merely half of the urban households have water connections, a
third have no toilets, the national average for sewage network coverage is a low 12 per
cent, and on an average only about 10 per cent of the municipal solid waste is
segregated. Public transportation and public schools and hospitals are woefully
disproportionate to the population densities within cities.
Issues:
Although Indias Smart Cities Mission has identified more than 20 priority areas,
interventions by the respective agencies are weak.
The emphasis on inclusive development has been diluted. Only 26 of the cities
selected last week have plans to provide affordable housing, education and medical
facilities.
www.IASbaba.com
P a g e | 64
Smart city plans have also not found a way to deal with recurring problems. For
instance, Aizawl, which found a place in the urban development ministrys latest list,
was in the grip of a severe water crisis in the third week of this month. The shortage
was caused by damages to water pipelines by floods a problem which the city has
not yet addressed effectively. Guwahati, amongst the earliest to be included in the
smart city list, also has no effective plan to deal with floods that ravage it every year.
The path chosen to leapfrog to the level of urbanisation in the developed nations
can lead to creation of uneven geographies.
For urban planners, a greater concern is an urbanisation process that accords
primacy to technology a field where the private sector has unchallenged
monopoly over the basic needs of the city.
Plans and models till now that show that almost 80 per cent of the funds are being
channelized to less than three per cent area of many mission cities. These are mostly
well-off enclaves that already have decent infrastructure in place and are more likely
to yield a dividend for private investors.
The government does have plans to promote start-ups and infrastructure projects.
But these projects are concentrated in tiny pockets in the selected cities nearly
80 per cent of the Centres funds are skewed towards them. For example, in Pune,
from where Prime Minister flagged off the Smart City projects last year, around 75
per cent of the investment will be used for the development of a 3.6 sq km area in
the Aundh-Baner-Balewadi pocket, which comprises a little more than 1 per cent of
the citys total area.
Unless this urban entropy is addressed first, an overbearing emphasis on application
of digital technology or developing smaller areas in an attempt at instant urbanism
can have disastrous socio-spatial consequences.
The Smart City mission bypasses democratic processes by executing projects
through Special Purpose Vehicles wherein private corporations can have up to 40
per cent share-holding.
Way ahead:
The Centre has adopted a managed urbanisation approach in the chosen cities,
with the powers of municipal councils delegated to a Special Purpose Vehicle (SPV),
under the Companies Act, that will act in its own wisdom. Given that this is the
model adopted by the two-year-old Mission, the Centre must present a status
report on what the SPVs have achieved so far.
Any serious attempt at improving the quality of life in cities would depend on how
governments approach data. It would be smart, for instance, to use sensors to
estimate the flow of vehicles and pedestrians, and create smartphone applications
for the public to report on a variety of parameters.
Making such data open would enable citizens groups to themselves come up with
analyses to help city administrators make decisions, boost transparency and make
officials accountable. Example- Making street-level waste management data public
www.IASbaba.com
P a g e | 65
would lead to a heat map of the worst sites, compelling managers to solve the
problem.
Access to special funding should make it mandatory for all public transport providers
city bus corporations, Metro Rail and suburban trains to provide real-time
passenger information in the form of open data, an inexpensive global standard that
raises both access and efficiency through smartphone applications.
The city development plans should be aligned with some of the governments
employment-generating initiatives, such as Make In India.
It is alright to overlay the citys infrastructure with technology but, for starters,
adequate infrastructure must be in place at a city-wide level. Creation of Smart
Cities is a welcome step, but in the process of urbanisation gentrification should not
take place.
Conclusion:
The ideology that guides the smart cities plan should recognise that the vibrant life of
cities depends on variety and enabling environments, rather than a mere technology-
led vision. Pollution-free commons, walkability and easy mobility, with a base of reliable
civic services, is the smart way to go. As the Centre finalises the list of cities, it needs to
remind itself of the original goal of the Smart City Mission making cities inclusive.
TOPIC:
General Studies 2
Issues relating to development and management of Social sector or Services
relating to Health, Education, Human Resources.
www.IASbaba.com
P a g e | 66
over 50 per cent in Class V and over 25 per cent in Class VIII could not read texts
meant for Class II. Further, reading levels for all children enrolled in government
schools in Class V showed a decline between 2010 and 2012.
National Survey Sample results in 2015 indicated sharp decline in learning outcomes
in mathematics, science and English in the secondary schools.
A recent study in Delhi has come out with the finding that only 54 per cent of the
citys children can read something it could be only a sentence.
Reforms required:
Activity-Based Learning and teaching at the right level, tools for real learning and
skill-absorption must become a norm
While efforts of the present and previous government to boost the quality of
learning in higher and vocational education must be appreciated, policymakers
ought not to ignore early childhood education and primary schooling, the phases
during which the most important cognitive development milestones are attained.
www.IASbaba.com
P a g e | 67
A healthy pupil-teacher ratio could help overcome many of the shortcomings. The
Right of Children to Free and Compulsory Education Act stipulates a 30:1 ratio.
Conclusion:
In todays competitive environment, the ability of students to read, write, count and
measure is a bare minimum. The country cannot continue to fail its children. For
Indias medium-term prospects of stability, and for the country to play a rightful role in
world affairs, it is imperative that the Centre takes this as a major area for intervention.
TOPIC:
General studies 2
Parliament and State Legislatures structure, functioning, conduct of business,
powers & privileges and issues arising out of these.
In news:
On June 21, the Karnataka assembly Speaker ordered the imprisonment of two
journalists for a year based on recommendations in two separate reports of its privilege
committees. The order has drawn widespread criticism as an effort to throttle the
media.
What provisions of the Constitution protect the privileges of the legislature?
Article 105 pertains to the powers, privileges, etc, of Parliament, its members and
committees while Article 194, which is identical to 105, protects the privileges and
powers of the houses of legislature, their members and committees in the states.
These sections protect the freedom of speech of parliamentarians and legislators,
insulate them against litigation over matters that occur in these houses, and give
powers to define the powers, privileges and immunities of a house, its members and
committees.
The Constitution confers certain privileges on legislative institutions with the idea
of protecting freedom of speech and expression in the House and ensuring that
undue influence, pressure or coercion is not brought on the legislature in the course
of its functioning.
www.IASbaba.com
P a g e | 68
Issues:
The provision is at times used to counter media criticism of legislators and as a
substitute for legal proceedings.
Breach of privilege laws allow politicians to become judges in their own cause,
raising concerns of conflict of interest and violating basic fair trial guarantees.
Unfortunately, breach of privilege is invoked to insulate elected representatives
from criticism.
Without a law codifying the legislative privileges, there is little merit in subjecting
anyone, leave alone a journalist, to penal action for allegedly breaching a legislators
privilege, unless there is a move or attempt to obstruct the functioning of either the
House or its members.
In the present case, by no stretch of imagination could the articles published by the
two journalists could have impeded the independent functioning of the three
legislators who had complained against them. If the members felt defamed, they
could have opted to pursue an appropriate judicial remedy in their individual
capacity.
There is very little clarity about the law of privilege, and whether it is proper for
legislatures to award punishments remains debatable.
There are many unsettled questions about the very nature of legislative privileges.
The absence of codification gives the House the freedom to decide when and how
breach of privilege occurs. Even if it is conceded that the House has such a right, a
www.IASbaba.com
P a g e | 69
Way ahead:
The legislature must use the power to punish for contempt or breach of privilege
sparingly, invoking it mainly to protect the independence of the House and not to
take away the liberty of critics. Legislators are in a position to clarify facts and refute
misconceived criticism. There is no reason for them to seek imprisonment for
contempt.
The time has come for the legislature to codify privileges and for the higher judiciary
to lay down the limits of penal action for breach of privilege.
The judiciary should immediately clarify the applicability of privilege, and ensure
that legislatures can no longer play plaintiff, advocate and judge, all rolled into one.
This case should serve as a spur to bring clarity to the provision of privilege.
Situations which attract it should be narrowly and unambiguously defined, and
legislatures should not have the right to impose punishments unilaterally, only
because some of their members feel impugned.
Conclusion:
Article 105 and Article 194 was inserted in the constitution with the basic objective of
allowing legislators and parliamentarians to function efficiently. However the breach of
privilege has not been defined clearly and thus space for its misuse. Thus its time to
codify the rules.
TOPIC:
General Studies 3
Awareness in the fields of IT, computers,
Challenges to internal security through communication networks, basics of cyber
security; money-laundering and its prevention.
Linkages of organized crime with terrorism.
General Studies 2
Government policies and interventions for development in various sectors and issues
arising out of their design and implementation.
Important aspects of governance
www.IASbaba.com
P a g e | 70
India is to soon transform into digital economy. It is likely to help trigger a fresh wave
of economic growth, attract more investment, and create new jobs, across multiple
sectors. However this also creates cybersecurity challenges which must be dealt with
seriously.
Issues:
Limited awareness of the impact and importance of cybersecurity currently. Many
companies do not treat it as a strategic agenda, but rather as a small issue for their
IT departments. In fact, a lot of cybersecurity incidents go unidentified and hence,
unreported.
Limited awareness of the need for specialized and customized industry-specific
cybersecurity measures which are significantly different from IT security and need
to be adapted by the industry.
Low existing capability, or lack of skill sets, to drive cybersecurity agendas. This
includes capability both in terms of people, cybersecurity strategies, as well as
actual implementation of security measures.
Conventional IT systems and firewalls are increasingly becoming ineffective in
preventing sophisticated hackers from creating havoc.
Way forward:
www.IASbaba.com
P a g e | 71
Companies in India need to be proactive to ensure they foster efficiency and efficacy
in cybersecurity management. Cybersecurity must be put on a high priority on the
management agenda.
Companies also need to assess the assets that are most at risk. This will differ from
sector to sector and company to company. It is important to identify the most
valuable assets, the ones which will hit you the most, narrow down all possible
attack avenues and proactively prepare mechanisms and procedures to address
those risks.
It is also important that companies run regular stress tests, which simulate real-life
attacks.
Companies need to start cooperating with peers to learn from each others
experiencesidentify potential attack scenarios, identify hidden threats and co-
develop a security framework.
Organizations also need to enlist their employees in the fight against breaches.
There is a need to change the perception of cybersecurity from being a passive
agent, to an active business enabler.
The regulators need to ensure they are covering all aspects at their end. This
includes regulations that set minimum standards on cybersecurity for companies
across the country.
Tough laws are needed to be put in place for perpetrators of cybercrime to ensure
such criminals are deterred effectively.
Conclusion:
India is sitting on the cusp of digital evolution. The government has overcome its
detractors with an eagle-eyed focus to achieve this goal for the country. It is now up to
companies to ensure they are ready and prepared to harness and exploit the
opportunities this evolution will bring.
www.IASbaba.com
P a g e | 72
INTERNATIONAL
TOPIC:
General Studies 2:
India and its International relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
www.IASbaba.com
P a g e | 73
Concerns:
While the EU and India have a clear convergence in many areas, a dependable alliance
can only come from a concurrent worldview.
The Chinese Premier Li Keqiangs visit to Berlin and Brussels recently saw the EU
repose much more faith in Beijing than New Delhi would be comfortable with, given
the current Sino-Indian tensions. European leaders praised President Xi Jinpings
leadership on connectivity and climate change. Europe perceives its single largest
threat to be from Moscow, not Beijing.
Mr. Modis attendance at the St. Petersburg International Economic Forum to unveil
a new India-Russia vision statement for the 21st century along with President
Vladimir Putin could cause similar discomfort in European capitals.
India is soon going to formalise Indias membership of the Shanghai Cooperation
Organisation, seen as a counter-NATO coalition of Russia, China and Central Asian
states.
Way ahead:
India and Europe have to understand each other better, build a more pragmatic and
At a time when India is juggling its relationships with the United States, Russia and
China, India-EU dynamic could be an important element in the countrys multilateral
approach to the world
The government should also use this pause to reflect on how it would like to leverage
this partnership on the world stage where the EU may not be present as an
ubiquitous functional entity just yet but where some or all members are present.
The world must re-engage in a way that important issues like the climate change are
addressed and remains vital no matter how the U.S. views it.
Conclusion:
Standing at a crossroads few had expected at this stage, India will have to consider its
options carefully as it decides which coalitions to forge as the U.S. overturns traditional
ties in favor of transactionalism. But to play the long game in these tumultuous times,
India must get his domestic, economic and security decision-making in sync with the
new global imperatives.
With Mr. Trump's uncalled for behavior India needs to revamp its alliances with the rest
of the world.
www.IASbaba.com
P a g e | 74
TOPIC:
General Studies:
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their diplomatic ties
with Qatar on 5 th , June 2017, accusing it of supporting terrorism and opening up the
worst rift in years among some of the most powerful states in the Arab world.
Qatar:
State of Qatar is a high-income economy, backed by the worlds third largest natural gas
reserves and oil reserves. The country has the highest per capita income in the world.
Qatar is classified as a country of very high human development and is the most
advanced Arab state for human development. Qatar is a significant power in the Arab
world, supporting several rebel groups during the Arab Spring both financially and
through its globally expanding media group, Al Jazeera Media Network. Qatar is a
constitutional monarchy, ruled by the house of Thani since 19 th century. The Emir of
Qatar is the head of state and head of government.
www.IASbaba.com
P a g e | 75
Effects on India
Instability in Qatar could also have adverse effects for India.
New Delhi is the second largest buyer of Qatari liquefied natural gas (LNG), after
Japan. Indias Petronet LNG, as part of a long-term deal, imports 8.5 million tones
of LNG from Doha every year. One consignment worth Rs 150 crore arrives on Indian
shores every 72 hours.
Besides this, more than 650,000 Indians live and work in the country, and any major
deterioration in the situation could put India into difficulties. The interest of citizens
living and working in Qatar, many of them engaged in projects related to the FIFA
World Cup in 2022, is paramount for India.
www.IASbaba.com
P a g e | 76
Conclusion:
While Saudi Arabia and partners have escalated matters with Qatar significantly, de-
escalation may take time, and is harder to orchestrate as is in most such cases. Both
Qatar and the Saudi-led GCC members will need to find a common ground for their
grievances, but a long-drawn diplomatic rift of such nature has more adverse affects for
Qatar than the others.
What West Asia requires is a united front against terror and lowering of Saudi-Iran
tensions. Opening new fronts in the rivalry will only destabilise the region further.
TOPIC:
General studies 2
India and its neighborhood relations, International relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
Important International institutions, agencies and fora- their structure, mandate.
Why in news:
India and Pakistan are likely to become full members of the Shanghai Cooperation
Organisation (SCO) at the Astana summit on June 8-9, 2017. The addition of another 1.5
billion people would provide fresh excitement, for the SCO will now represent the voice
of three billion people half the worlds population.
About SCO:
The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, and
military organisation. It was founded with the aim to strengthen relations among
member states and promote cooperation in political affairs, economics and trade.
www.IASbaba.com
P a g e | 77
Opportunities at SCO:
India could gain from SCOs Regional Anti-Terrorist Structure (RATS) manned by 30
professionals analyzing key intelligence inputs on the movements of terror outfits,
drug-trafficking, cyber security threats and public information in the region that we
in India know little about.
Participation in SCOs counter-terror exercises and military drills could be beneficial
to the Indian armed forces.
www.IASbaba.com
P a g e | 78
Profiting in terms of energy security would be critical, but the idea of a SCO Energy
Club will gain full meaning only if Iran joins the grouping eventually.
SCO might provide a rare opportunity for the militaries of Pakistan and India to share
several multilateral tables antiterrorism structure, military exercises etc. under
the SCO framework, which in many ways might change the regional climate and have
a positive impact on Indo-Pak relations.
www.IASbaba.com
P a g e | 79
Conclusion:
To be sure, multiple conflicting interests would intersect at the SCO forum, ranging from
regional and global issues to combating terrorism. Indias positions may sometimes be
at odds with those of other countries which have been going along with the Chinese
viewpoints.
But India needs to adopt a strategy which helps her tide over challenges and tap the
opportunities.
TOPIC:
General Studies 2:
India and its International relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
www.IASbaba.com
P a g e | 80
Convergence:
In specific areas such as defence hardware and technology, nuclear energy and oil
and gas any cooperation is of mutual benefit.
There may even exist longer-term convergence in helping shape a multipolar
international political and security architecture.
Divergence:
However, these shared interests must be balanced against divergences that are inherent
in the very dramatic transformations which have taken place in the two countries
themselves, and in the regional and global situation since the end of the Cold War, which
have inevitably altered the overall context of our relations.
Shared China concerns
It is the shared perception of a Chinese threat which brought Delhi and Moscow
together.
The end of the Cold War changed this, with Russia no longer looking at China as a
current security threat. The early settlement of their border dispute, the expansion
in their economic and trade relations and the emergence of China as a major
recipient of Russian weapons and defence technologies brought about an
asymmetry in perceptions of China between India and Russia.
But Russian perceptions of a long-term Chinese challenge to its interests persisted,
and still do. For example, Russian nuclear experts have been reluctant to deep cuts
in nuclear weapons in bilateral negotiations with the U.S. precisely because the gap
www.IASbaba.com
P a g e | 81
with Chinas expanding and qualitatively better nuclear arsenal is diminishing and
this heightens Russian concerns.
Chinese inroads into Central Asia and Eastern Europe are also a concern for Russia,
which regards both these regions as part of its strategic periphery.
www.IASbaba.com
P a g e | 82
Conclusion:
Russias current closeness to China is tactical; its long-term interest both globally and in
its neighborhood are not aligned with China. India should pursue its relations with
Russia keeping this reality in mind. This 18th annual India-Russia summit appears to
have been more substantive than the previous ones. The altered context has to be
acknowledged by both sides and there should be an unsentimental reckoning of both
the challenges and opportunities that could define India-Russia relations in the new
millennium.
Connecting the dots:
This year India and Russia celebrated 70 years of diplomatic ties. Discuss how the
altered global context calls for redefining India-Russia relationship.
TOPIC:
General Studies 2
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests
Effect of policies and politics of developed and developing countries on Indias
interests.
www.IASbaba.com
P a g e | 83
India at a disadvantage
India has to recognise the reality that it cannot match China in weapons supply, or
in a range of infrastructure and industrial projects. India, for example, cannot match
Chinese supply of JF 17 fighters manufactured in Pakistan, as our much-touted Light
Combat Aircraft has not yet been operationalised.
Likewise, our public sector infrastructure projects such as the Sittwe Port, the
Kaladan Corridor linking our landlocked north-eastern States to the Bay of Bengal at
Sittwe, or the proposed 1800 MW hydro-electric project, have either been delayed
or abandoned.
While diplomatic efforts enabled us to get a stake in successful offshore gas
exploration, we lost access to the gas because of our inability and indeed
inefficiency in devising measures to transport/transfer and utilise the gas, which is
now transshipped to China by a pipeline.
Private sector projects to use Myanmars vast bamboo resources for the paper
industry, or investment in the agricultural sector have similarly been delayed, or
failed.
Problems for India have now increased, because of covert Chinese support for
Indias north-eastern separatist groups. Chinas envoy to Myanmar has facilitated
talks with the KIO a development India should closely monitor. China now has an
ability to significantly influence Myanmar insurgent groups.
www.IASbaba.com
P a g e | 84
This could be undertaken in close cooperation with Japan and the Asian
Development Bank and duly integrated with new measures now being considered
for giving momentum to Regional Cooperation through BIMSTEC.
Conclusion:
Despite above developments, India has continued its engagement with Myanmar, with
both Army Chief General B. P. Rawat and Foreign Secretary Jaishankar visiting Myanmar
recently. The Indian Armed Forces have traditionally had friendly relations with their
Myanmar counterparts. Both countries face problems of armed separatist groups using
each others soil. This should be focused upon. Further India must reorient and review
its relationship with Myanmar if it wants to maintain stability in Northeastern region of
the country.
TOPIC:
General Studies 2
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
At the end of this month, Prime Minister Narendra Modi will head to the US to meet
President Donald Trump. It might just end up being the defining visit of Modis US policy
in the age of Trump.
www.IASbaba.com
P a g e | 85
Pakistan about terror, his approach has been erratic at best. The US ambassador to
the UN, Nikki Haley, went so far as to say that the US may play a proactive role in
de-escalating tensions between Islamabad and New Delhi.
Trump withdrew from the Paris agreement. Targeting India specifically, Trump
argued that India makes its participation contingent on receiving billions of dollars
in foreign aid and that it will be allowed to double its coal production by 2020.
Economic and trade ties have also been under stress, with Trump asking federal
agencies to review the temporary visa programme for high-skilled foreigners to
ensure preference was accorded to the most-skilled and highest-paid.
Trump has been critical of H-1B visas, suggesting that they were being used by
outsourcing firms to bring in low-skilled workers on low wages who displace
Americans. His larger approach towards economic globalization has produced a
paradoxical situation wherein China is trying, with some success, to project itself as
a defender of the extant global order.
Conclusion:
There are indeed challenges here as New Delhi has become used to the broader
strategic logic and has traditionally been averse to transactional relationships. But
there are new opportunities, if only Indian policy makers remain open to new
possibilities.
www.IASbaba.com
P a g e | 86
TOPIC:
General studies 2:
India and its neighborhood- relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
Important International institutions, agencies and fora- their structure, mandate.
Introduction:
China has been effectively using its civilians and consequently army troops to further its
expansion into the Indian soil. Bite by kilometre-size bite, China is eating away at Indias
Himalayan borderlands. From Shyok, the northernmost border village in the sector
where China has been the most aggressive -- the latest reported aggression was in April
this year in which they grabbed further some 30 kms of the Indian territory.
On average, China launches one stealth incursion into India every 24 hours. The Peoples
Liberation Army (PLA) is actively intruding into vacant border space with the objective
of occupying it. And according to a former top official with Indias Intelligence Bureau,
India has lost nearly 2,000 sq. km to PLA encroachments over the last decade.
www.IASbaba.com
P a g e | 87
India's response:
Chinas non-violent terrestrial aggression has garnered less opposition than its blue-
water ambition, which has been challenged by the US under international law.
Indian leaders have at times even seemed to condone Chinas actions. During a recent
panel discussion in Russia, for example, Prime Minister Narendra Modi said that
although China and India are at odds over borders, it was remarkable that in the last
40 years, not a single bullet has been fired because of [it].
www.IASbaba.com
P a g e | 88
operating on their land. They promised to exchange maps with India in 2001 but
that promise was never met.
By acquiescing on bilateral tradethe dumping of Chinese-made steel on the Indian
market is just one of many examplesIndia has inadvertently helped foot the bill
for the PLAs encirclement strategy.
Indian border police patrolling the area dont even carry weapons. With such a
docile response, China has been able to do as it pleases along Indias northern
frontier. Chinas support of the Pakistani military, whose forces often fire at Indian
troops along the disputed Kashmir frontier, should be viewed in this light.
Way out:
India needs to adopt a different strategy, having been on the defensive stance for so
many years. PM Modis narrative of border peace is not as strong to deter the plans of
PLA or China. India has failed to deter China and it is crucial for the Indian government
to adopt a new stance so as to counter the aggression. China has become more
assertive, underscoring the need for a new Indian containment strategy.
We need to abandon the platitudes. Modis calls for border peace and tranquillity
might be sincere, but his tone has made India look like a meek enabler.
A more regionally integrated Indian economy would serve as a counterweight to
Chinas territorial expansion.
India should also beef up its border security forces to become a more formidable
barrier to the PLA. Indias under-resourced Indo-Tibetan Border Police, under the
command of the home ministry, needs training and equipping, and placing them
under the command of the army. This would signal to China that the days of an open
door are over.
Strengthening the border police exploring the vast number of economic
opportunities will send a powerful message to China
Conclusion:
The PLA began honing its salami tactics in the Himalayas in the 1950s, when it sliced
off the Switzerland-size Aksai Chin plateau. Later, China inflicted a humiliating defeat
on India in the 1962 border war, securing peace, as a state mouthpiece crowed in 2012,
on its own terms. Today, China pursues a cabbage approach to borders, cutting off
access to an adversarys previously controlled territory and gradually surrounding it
with multiple civilian and security layers. Against this backdrop, the true sign of
Himalayan peace will not be the holstering of guns, but rather the end of border
incursions. Indias accommodating approach has failed to deter China. To halt further
encroachments, India will need to bare its own teeth. Ending these incursions should
be of prime importance to India if it wants Himalayan Peace. Self-praising that there
have been no bullets from either side does not amount to Indias borders being secured.
www.IASbaba.com
P a g e | 89
A recent study highlights how China is garbing India's territory across Himalayan
borders. Discuss the strategy used by China and how India hasn't responded to such
territorial assertiveness effectively.
China in recent times has grown more and more assertive both on land and sea.
Discuss how India can contain China in this regard.
TOPIC:
General Studies 2
India and its neighborhood- relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
Important International institutions, agencies and fora- their structure, mandate.
In news:
On June 06 this year, the Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation (BIMSTEC) completed 20 years of its establishment.
About BIMSTEC:
Comprising of Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan,
BIMSTEC is home to 1.5 billion people, accounting for approximately 21 per cent of the
world population, and a combined GDP of US$ 2.5 trillion. The growth rate sustained by
the BIMSTEC countries is around six per cent per annum.
Initially known as the Bangladesh-India-Sri Lanka-Thailand Economic Cooperation (BIST-
EC), it was formed after representatives from the aforesaid four countries met at
Bangkok in June 1997. With Myanmar joining the grouping as a full member in
December the same year, the BIST-EC was renamed as BIMST-EC. In February 2004,
when Nepal and Bhutan too joined, the grouping was renamed as the Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic Cooperation or BIMSTEC.
So far, BIMSTEC has held three summit meetings. The first one was held in Thailand in
2004, seven years after the establishment of the grouping; the second one was held
four years later in India in 2008, and the third one six years later in Myanmar in 2014.
The fourth summit meeting is expected to take place later this year in Nepal, the current
Chair of BIMSTEC.
Objectives:
According to the June 1997 Declaration on the Establishment of the Bangladesh-India-
Sri Lanka-Thailand Economic Cooperation (BIST-EC), also known as the Bangkok
Declaration, the founding objectives of the sub-regional initiative were:
www.IASbaba.com
P a g e | 90
Recent developments:
Recently, Prime Minister Narendra Modi, in his message on the 20th anniversary of
the establishment of BIMSTEC, described the sub-regional grouping as a natural
platform to fulfill Indias key foreign policy priorities of Neighbourhood First and
Act East.
Earlier in October 2016, India had hosted the BIMSTEC members at Goa during the
BRICS (Brazil, Russia, India, China and South Africa) Outreach Summit. It was viewed
as a pragmatic step on Indias part, demonstrating its potential to play the role of a
regional leader, an aspiration which was instrumental in transforming its Look East
into Act East policy. The BRICS-BIMSTEC Outreach Summit is believed to have given
BIMSTEC its due importance by inviting its members to participate in a larger
platform comprising five major emerging economies of the world.
Within few months of the Goa Summit, India hosted the first meeting of the
BIMSTEC National Security Chiefs in New Delhi in March 2017.
Potential of BIMSTEC:
BIMSTEC provided opportunities to all its member countries
For India, the establishment of BIMSTEC, was an opportunity, besides the
Association of Southeast Asian Nations (ASEAN), to engage with Southeast Asia, at
least partially. BIMSTEC provided scope for direct connectivity with Southeast Asia
via Northeast India and Myanmar. Counter-terrorism and anti-insurgency
cooperation with Myanmar and other members, potential access to alternative
energy resources in Myanmar as well as economic opportunities available in the
ASEAN region had evoked sufficient interest.
Besides India, other members too considered it as an important mechanism to
achieve their national goals and regional aspirations. Myanmar, for example,
became a member at a time when the junta in the country was facing serious
international criticism. Membership in regional and sub-regional groupings like
ASEAN and BIMSTEC provided its military rulers an opportunity to gain some sort of
recognition among the regional stakeholders.
Thailand, on the other hand, was looking for an opportunity to enhance its trade
and connectivity with the South Asian countries under the ambit of its Look West
policy. So, in a way, Indias Look East and Thailands Look West policy
complemented each other within the ambit of BIMSTEC. The ongoing India-
Myanmar-Thailand Trilateral Highway and the India-Myanmar Kaladan Multimodal
www.IASbaba.com
P a g e | 91
Challenges:
BIMSTEC does not seem to have made much progress. Despite its huge potential in
terms of enhancing regional cooperation between parts of South and Southeast Asia,
BIMSTEC has long suffered from lack of resources and proper coordination among its
member states.
India, the largest member of the grouping, has often been criticised for not
providing a strong leadership to BIMSTEC. Both Thailand and Myanmar are criticised
for having ignored BIMSTEC in favour of ASEAN.
Absence of a permanent secretariat for a long time and lack of commitment to
invest in several priority areas identified by the member states were seen as some
of the key institutional factors holding the BIMSTEC back. It took 17 long years for
BIMSTEC to finally establish its permanent secretariat in Dhaka in 2014.
The noodle bowl effect of regionalism too was at work as formation of another
sub-regional initiative, the Bangladesh-China-India-Myanmar (BCIM) Forum, with
the proactive membership of China, created more doubts about the exclusive
potential of BIMSTEC.
Renewed Interest:
India has been clearly signaling its renewed interest in BIMSTEC. India is already the lead
country for four priority sectors, namely, transportation and communication,
environment and disaster management, tourism, and counter-terrorism and trans-
national crime.
In an effort to strengthen sub-regional cooperation on combating terrorism and
trans-national crime, the BIMSTEC member states are trying to implement a
convention on anti-terrorism. Except for Nepal and Bhutan, all member states of
BIMSTEC have ratified it.
BIMSTEC is now trying to sign a Convention on Mutual Legal Assistance in Criminal
Matters.
Progress made in other sectors are- India hosting a working group meeting to
finalise the BIMSTEC Motor Vehicles Agreement, finalisation of a Memorandum of
Understanding (MoU) on Grid Interconnection to facilitate electricity trade in the
sub-region, and a meeting of BIMSTEC Trade Negotiating Committee to fast-track
the process of trade facilitation in the region.
www.IASbaba.com
P a g e | 92
The declaration issued at the Goa Summit had also stated that BIMSTEC needs to
have a Coastal Shipping Agreement to allow the member states to trade freely
within the sub-region.
It is noteworthy that between 2002 and 2014, the intra-BIMSTEC trade registered a
very marginal growth, from 3.6 to 4.3 per cent only.
A former Thai ambassador described it as a complimentary organisation which can
support the people in the region.
Way ahead:
For BIMSTEC to become an enabler of regional cooperation, it will have to evolve as
an organisation that works through a bottom-up rather than a top-down approach.
The people-centric approach seems to be the best as BIMSTEC seriously lags behind
ASEAN and other regional organisations in terms of people-to-people contacts.
Also, the organisation needs to focus on fewer priority areas for purpose of better
implementation. It needs to undertake projects that are economically feasible and
result-driven. This would add to the credibility of BIMSTEC.
Finally, since the BIMSTEC region is notable for its diversity, the member states need
to build on the regional synergies and work towards utilising the available resources
in the most optimal manner. This would help build a stronger and a more dynamic
BIMSTEC.
Conclusion:
In todays context, the possibility of enhancing physical, digital and people-to-people
connectivity in the sub-region is huge. Similarly, the potential to tap the vast energy
resources and scope for intra-regional trade and investment too is enormous. BIMSTEC
member nations must work on in a cooperative manner to take advantage of huge
potential BIMSTEC offers.
TOPIC:
General Studies 2:
India and its International relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
www.IASbaba.com
P a g e | 93
Introduction:
In the coming decades, Asia will be the growth engine for the world, and India will be
one of the fastest growing large economies contributing to that growth. This presents
an immense market for U.S. goods and services, and an opportunity for India to
benefit from greater trade and investment leading to employment and growth for
both countries. We need to put in place the necessary policy frameworks that give
confidence and certainty to the private sector. There is significant scope to develop a
cooperative India-US trade relationship that expands bilateral economic ties.
Key concerns:
The bilateral deficit
Trade barriers such as tariffs on goods and enforcement of intellectual property
rights.
New Delhi is concerned with the inward orientation of the US under Trump.
Way ahead:
www.IASbaba.com
P a g e | 94
Conclusion:
India and the US could show significant results in trade areas by establishing a common
platform to address specific concerns in areas that require administrative solutions or
better information flows between the two. Focusing on possible solutions that are more
within reach, while continuing efforts to address the major concerns, is more likely to
create better opportunities and more win-win situations for both India and the US. Such
an approach is a pragmatic response to the challenges of making significant progress on
trade. This approach will reduce the focus on more politically contentious issues, such
www.IASbaba.com
P a g e | 95
as Indias demands for improved access to the US market for its workers, or US interests
in seeing major decreases in Indias tariffs across the board.
TOPIC:
General Studies 2:
India and its International relations.
Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
PM Modi's visit to US
Introduction:
This was PM Modis fifth US visit.
PM Modi remarked that when it comes to the development of the worlds two
largest democracies, India remains a driven, determined, and decisive partner.
Donald J Trump on Twitter remarked- "Important strategic issues to discuss with a
true friend.
For India, which kept expectations muted for the visit, it was clearly a moment of
triumph.
It was an effective and efficient meeting between two extraordinarily strong leaders
united by a common goal: How to advance his own countrys interests first.
www.IASbaba.com
P a g e | 96
On economic front:
On economic front- Trumps slogan, Make America Great Again is directly at odds
with Modis vision of Make in India because both nationalist leaders are actively
attempting to increase manufacturing in their respective countries as a pathway to
lift their respective middle classes. Companies such as Infosys have already done the
unthinkable and announced massive plans to hire Americans in the US and scale
back hiring in India.
On the economic front, India came under increased U.S. pressure on IPRs.
The HIB visa issue remained unaddressed.
Trump duly noted his intent to reduce the US trade deficit with India. He highlighted
that the US is trying to get higher prices for a long-term contract to sell natural gas
to India. He was glad to note an Indian airlines recent order of 100 new American
planes, one of the largest orders of its kind, which will support thousands and
thousands of American jobs. In the delegation-level talks, Trump also thanked
Modi for the Indian governments decision to purchase 22 unarmed Guardian
drones from the US.
Defence relation:
In terms of defence, India got the 22 Guardian drones its been keen to add to its
arsenal and significantly, its the first non-Nato ally to be allowed to buy these hi-
tech weapons.
Further defence equipment sales to India could help reduce the US-India trade
deficit and improve the USs defence-industrial manufacturing base.
Background- In August 2016, the Government of India finalised the Logistics
Exchange Memorandum of Agreement (LEMOA). For its part, the US government
recognised India as Major Defense Partner.
On Pakistan:
Hours after Modis arrival, the Americans sent out an even stronger signal by
declaring Hizbul Mujahidden chief Syed Salahuddin a Specially Designated Global
Terrorist. This vindicated New Delhis position of Kashmiri separatism being fuelled
by Pakistan as a part of its sub-conventional warfare against India.
In turn, India pledged to join the United States campaign against North Koreas
nuclear weapons.
The language on Pakistan was tougher and more direct than before. In a joint
statement, the leaders called on Pakistan to ensure its territory is not used to launch
terrorist attacks on other countries. They further called on Pakistan to
expeditiously bring to justice perpetrators of the 26/11 Mumbai, Pathankot, and
other cross-border terrorist attacks by Pakistan-based groups.
On China:
www.IASbaba.com
P a g e | 97
The joint statement released by India and US can be seen as an indicator of change
in Washingtons stance, to accede to Indias views on the Chinese Belt and Road
Initiative. The statement supports regional economic connectivity projects provided
they respect sovereignty and territorial integrity, the rule of law, and the
environment and employ responsible debt financing practices.
The statement recognizes India and the US as two democratic stalwarts in the Indo-
Pacific regiona clear hint towards building a coalition of democratic countries
against non-democratic forces (read China) in the region.
Perhaps significantly, the specific references to the South China Sea dispute and
China in last years joint statement were replaced with a call on all nations to
resolve territorial and maritime disputes peacefully and in accordance with
international law. This could suggest that the strategic outlook that underpinned
the India-US relationship is changing, as President Trump turns away from seeking
to contain Chinese power in Asia.
On climate change:
Climate change, the star of the 2016 joint statement, has disappeared from the 2017
joint statement. For Indian farmers, already hard hit by climate change this issue is
key.
President Trumps decision to walk back on the USs Paris Agreement commitments
marks a major blow.
Way ahead:
Many bilateral issues including Indias concerns on the immigration process and H1B
visa curbs, and Mr. Trumps withdrawal from the Paris climate accord, which will
leave Indias climate change financing handicapped remains undiscussed.
The two countries need to move past obvious headwinds such as Indias IP
standards and the immigration executive orders affecting high-skilled workers in the
US.
On the face of it, America First and Make in India are not natural points of
convergence, but they need not be matters of conflict either only if both
countries avoid protectionist measures. Since the Trump administration is keen on
bilateral treaties instead of multilateral trade deals, it may be a tangible outcome if
the two governments set their goals on negotiating a bilateral investment treaty.
Divisive political sentiments can be overcome as Indian companies make it their
mandate to hire locally in the US.
On matters of trade, climate change and high-tech visas, the meeting resulted in
few successes. Intellectual property rights and trade regulations could again occupy
centre stage in relations between the two countries. Bilateral talks should continue
to sort out these issues.
Conclusion:
www.IASbaba.com
P a g e | 98
All things considered, a good beginning appears to have been made during Mr. Modis
maiden meeting with Mr. Trump. Clearly, the India-U.S. joint statement has exceeded
expectations, with an emphasis on the need for Pakistan to stop attacks on India
launched from its soil, and for China to forge its Belt and Road Initiative taking into
account Indias concerns on territorial and sovereignty issues. Mentioning North Korea,
West Asia and Afghanistan, the statement talks of a growing strategic convergence
between the two countries and a shared vision on world affairs. However, while the two
leaders were able to establish a common understanding of global issues, the joint
statement indicates that many bilateral issues are yet to be resolved. It is now for them
to tackle the more substantive bilateral issues.
www.IASbaba.com
P a g e | 99
HEALTH
TOPIC:
General Studies 2:
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issues relating to development and management of Social Sector/Services relating
to Health
Development processes and the development industry the role of NGOs, SHGs,
various groups and associations, donors, charities, institutional and other
stakeholders
Why in news?
In a widely publicized speech on April 17, Prime Minister Narendra Modi indicated that
the government may bring in a legal framework under which doctors will have to
prescribe generic medicines.
Introduction:
Generic drug- The generics are medicines on which patents have expired. They are sold
either as branded products or as unbranded products under their generic names. These
drugs ae. equivalent to a brand-name product in dosage, strength, route of administration,
quality, performance, and intended use. The generic names are internationally agreed short
names called International Non-Proprietary Names. For example, paracetamol is the
name for a pain relieving and fever reducing medication and Crocin is one brand name
of paracetamol.
The Indian Medical Council (Professional Conduct Etiquette and Ethics) Regulations,
2002 says: "Every physician should prescribe drugs with generic names legibly (can be
read easily) and preferably in capital letters and he/she shall ensure that there is a
rational prescription and use of drugs."
The move proposed by the government will make it illegal for Indian doctors to write
out a prescription for the trademark of the drug, forcing them to mention the chemical
name instead.
www.IASbaba.com
P a g e | 100
While generic medicines are good quality low-cost drugs with equal efficacy as that
of branded drugs, in the absence of proper knowledge consumers often tend to go
by what doctors and chemists decide for them.
The government's move assumes significance as medicines account for 70-75% of a
household's out of pocket expenditure on health
The move will result into affordable access to quality medicines which is a part of
free universal access to healthcare services.
India being a world leader in generics, the dependency on imports of patent drugs
will reduce improving our trade of balance.
Example:
The US in 1984 introduced the Drug Price Competition and Patent Term Restoration
Act, it transformed the drug market by allowing a generic medicine, that has
demonstrated mere bioequivalence with the branded drug, to be dispensed as a
substitute for a prescription of the branded drug. Subsequently, this model has been
followed in other countries and today most OECD and other developing countries accept
the substitution of a branded medicine with a generic equivalent.
Challenges:
Questionable quality of generic drugs in India: According to the governments most
recent survey of the quality of drugs in India, 10% of all drugs from government
sources tested NSQ, or not of standard quality.
Many states do not have their own drug-testing labs where authenticity of generic
drugs can be checked.
Food and Drug Administration offices across the country, tasked with inspecting
drug manufacturing facilities and regulating pharmaceutical distribution business,
are short staffed.
The generics available are only with brand names and are not exactly generics. The
prices of these branded generics is not much less than the patent ones defeating the
whole intention of making medicines cheap in India. Over 90% of the Indian
pharmaceutical industry is of branded generics and only 10% is unbranded generics.
Unbranded generic medicines are sold only in public health centres and
government-owned pharmacies like the Jan Aushadhi Stores and the reach of Jan
Aushadhi Stores is very limited.
It will be difficult to write the generic names of medicine contained in FDCs-some of
which range from 8-9.
The doctors have reservations over the bioavailability of the generic drugs as
branded drugs. (Bioavailability is the ability of medicine to reach the active site of
action)
Innovation can be negatively affected and may pose a challenge to coming up of
newer drugs to meet the dynamic and complex health needs of the people today.
www.IASbaba.com
P a g e | 101
A strong regulatory structure should be put in place to both certify and monitor drug
testing and enforce the compliance with GMP (Good Manufacturing Practice).
If the government wants to make the prescription of generics compulsory, it needs
to put in place a legal mechanism to guarantee that all generics are bioequivalent to
the innovator product by making bioequivalence testing compulsory (Bioequivalent
generic drugs are therapeutically equal to the innovator drug. Once bioequivalence
is established, a generic drug is legally certified to be of the same quality to replace
the innovator product and can therefore be interchanged for the innovator
product).
A patient with a prescription detailing the composition of the medicine could still be
dependent on a pharmacist to make the most suitable drug choice. As generic
medicines have low margins they are unlikely to be stocked by the retail pharmacist.
Therefore the pharmacists should also be brought under its ambit.
Facilities which do not comply with GMP should be immediately barred from
production.
Using technology-
Using IT tools to network all 36 drug regulators into one integrated national
database. This can then be accessed by every citizen over a smartphone.
All products should be tagged with a unique RFID, barcode or such similar
identification to ensure traceability from manufacture to consumption.
Generics should be labelled and sold as such in order to prevent a brand to brand
substitution rather than a brand to generic substitution at the retail level.
Capping the maximum sale price of the generic taking into account the cost of
making the drug and distribution and retail margins as branded generics can be as
costly as patent drugs.
Rules for punitive fines for non-compliance must be laid down.
Conclusion:
Making prescription of generic drugs mandatory is a noble intention. It will surely make
medicines affordable to all and bring us closer to universal healthcare, but the step
should be accompanied with guidelines regarding regulation this will give the customers
the choice without fear of compromising the quality of their care.
Thus the need of the hour is not a piecemeal legislation mandating the doctors to
prescribe generic medicines, but a holistic legislative and regulatory framework that
addresses both the quality and affordability aspects.
www.IASbaba.com
P a g e | 102
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Issues relating to development and management of Social Sector/Services relating
to Health
Introduction:
In an effort to curb antibiotic resistance, the World Health Organization (WHO) has
divided the drugs into three categories access, watch and reserve specifying which
are to be used for common ailments and which are to be kept for complicated diseases.
The division of the antibiotic is as follows:
Access: For commonly used antibiotics. Antibiotics in this group will be available at
all times as treatment for a wide range of common infections. This includes
amoxicillin, a widely-used antibiotic to treat infections such as pneumonia.
Watch: For second line drugs, slightly more potent. It covers antibiotics that are
recommended as first or second choice treatment for a small number of infections.
The WHO has recommended that prescription of these drugs should be dramatically
reduced to avoid further development of resistance.
Reserve: For crucial stage, potent drugs to be used only as a last resort . The third
group, reserve, includes antibiotics such as colistin and some cephalosporins that
should be considered last-resort options, and used only in the most severe
circumstances when all other alternatives have failed, such as for life-threatening
infections due to multidrug-resistant bacteria.
This is the biggest revision of the antibiotics section in the 40-year history of the
essential medicines list (EML).
www.IASbaba.com
P a g e | 103
Conclusion:
www.IASbaba.com
P a g e | 104
The new guidelines by WHO will surely help in fighting the spread of antibiotic
resistance. Health system planners and prescribers must ensure the rules are followed
in true spirit.
www.IASbaba.com
P a g e | 105
ENVIRONMENT
TOPIC:
General Studies 2
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
Bilateral, regional and global groupings and agreements involving India and/or
affecting India's interests.
Effect of policies and politics of developed and developing countries on India's
interests.
General Studies 3
Conservation, environmental pollution and degradation, environmental impact
assessment.
Why in news:
American President Donald Trump recently announced that the U.S. would exit the Paris
agreement on Climate Change.
Background:
The Paris agreement commits the US and 194 other countries to keeping rising global
temperatures "well below" 2C above pre-industrial levels and "endeavor to limit" them
even more, to 1.5C. All countries except Syria and Nicaragua did not sign up.
Under the agreement the countries agreed to:
Keep global temperatures "well below" the level of 20C (3.6F) above pre-industrial
times and "endeavor to limit" them even more, to 1.50C
Limit the amount of greenhouse gases emitted by human activity to the same levels
that trees, soil and oceans can absorb naturally, beginning at some point between
2050 and 2100
Review each country's contribution to cutting emissions every five years so they
scale up to the challenge
Enable rich countries to help poorer nations by providing "climate finance" to adapt
to climate change and switch to renewable energy
www.IASbaba.com
P a g e | 106
In Mr. Trumps view, the Paris accord represents an attack on the sovereignty of the
United States and a threat to the ability of his administration to reshape the nations
environmental laws in ways that benefit everyday Americans.
www.IASbaba.com
P a g e | 107
becoming hotter than the previous one, and the ice sheets in West Antarctica and
Greenland, which hold the key to sea levels, have recorded a steady loss in mass.
Indias role:
There shouldn't be any re-negotiation of the agreement as demanded by Mr. Trump.
And here, Indias role could be potentially crucial.
During his recent visit with Chancellor Angela Merkel of Germany, Prime Minister
Narendra Modi clearly and usefully articulated Indias support for climate action.
Now, in the wake of clarity about Mr. Trumps intent, India could go further.
India could play a leadership role in mobilizing the climate-vulnerable countries in
our region and beyond, to recommit to the Paris Agreement.
India could also explicitly and formally make common cause with countries such as
China and the EU, which have reportedly planned an alliance to lead implementation
of the Paris Agreement. Based on our recent track record of falling solar prices and
declining estimates of coal needs, India is also well placed to forcefully make the
case for the merits of a clean energy transition.
India must emphasize the five pillars of its climate leadership in action.
One, policy. In 2010 Indias National Solar Mission commenced with a target of
installing 22,000 megawatts (MW). At the time, Indias total installed capacity was
17.8 MW. The worlds leading solar countries were Germany, Spain, Japan, US and
Italy. India was at 10th place. In 2014, India asked itself a simple question: How big
can we get on renewables? And by early 2015, India announced that by 2022, it
would install 1,00,000 MW of solar, 60,000 MW of wind, 10,000 MW of small
hydropower and 5,000 MW of biomass-based electricity capacity.
In addition to policies, India has demonstrated its willingness and ability to scale
programmes nationwide and rapidly to move faster towards cleaner fuels while also
increasing energy access.
Whereas many European countries pushed renewable energy through consumer
subsidies, India adopted a reverse auction-based competitive bidding process for
solar. That has meant that the lowest tariffs have dropped from INR 10.95 (USD 0.17)
in December 2010 to INR 2.44 (USD 0.038) in May 2017.
Climate change is already impacting India, with increasing water stress and billions
of dollars of lost agricultural output during this century. India needs to increase
agricultural production, while reducing water and energy intensity.
India has already displayed its leadership role. In November 2015, India and France
launched the International Solar Alliance (ISA). The ISA plans to aggregate demand
to drive prices down, scale up technologies currently available, and pool resources
to invest in solar R&D.
For its level of income and per capita emissions, India is doing disproportionately more
than many of the larger polluters. It must speak confidently about its actions and its
leadership for other countries.
www.IASbaba.com
P a g e | 108
Way forward:
The rest of the world will have to continue to act on climate change, regardless of
what the US does. Secondly,
The mantle of climate leadership cannot be held by just one country. The U.S. exit
from the Paris Agreement could help cement new alliances.
It is time for the world to recognise the real climate leaders. India is one of them and
it needs to speak up.
Conclusion:
As a major legacy polluter, the U.S. has a responsibility to mitigate the damage.
In abandoning the Paris Agreement on climate change, U.S. President Donald Trump has
chosen to adopt a backward-looking course on one of the most important issues facing
humanity.
The urgent task at hand for the rest of the global community is to ensure that the Paris
Agreement remains in place and even wins renewed support. The overall goal to keep
the increase in global average temperature over pre-industrial levels to less than 2C
should not be affected. And more importantly the principle of CBDR that underpins the
UN climate framework, and casts a duty on industrial powers responsible for the worlds
accumulated carbon emissions, needs to be strengthened.
TOPIC:
General Studies 3
Conservation, environmental pollution and degradation, environmental impact
assessment
www.IASbaba.com
P a g e | 109
The court also observed that the rivers are the source of physical and spiritual
sustenance of people from time immemorial, that these rivers are breathing, living
and sustaining the communities from mountains to sea and that such declaration
as legal persons is needed to protect the faith in of society.
Following this precedent, the Madhya Pradesh government also took a decision in
May this year to declare river Narmada as a living person with all attendant rights.
Challenges:
Providing a sustainable ecosystem is the need of the hour. The polluters who are
liable to be sanctioned in court proceedings are however many: industrial units,
municipal authorities, local bodies, millions of villages, and so on. This is definitely a
vast challenge. There are millions of players who are involved. The industries and
utilities of local bodies are the point sources of pollution and millions of farmers
alongside the rivers are the non- point sources of pollution.
The challenge before the policy makers is how to bring all the players on the same
page for not polluting the rivers. For instance, the industrial units should discharge
industrial effluents into rivers after proper treatment or even take steps for Zero
liquid discharge. The regulatory machinery for ensuring the same has weak capacity
to deliver today. Online data monitoring at sewage discharge points of an industrial
unit or utility has been thought of, but its proper implementation is a big challenge.
Similarly, in the case of local bodies, it is often difficult to prevent the municipal
sewage from polluting the river water. In a country where open defecators pose the
biggest challenge, absence of proper sewer network and subsequent non-treatment
of municipal sewage, especially in urban areas, aggravate the problem in the context
of polluting the river Ganga and Yamuna.
In this context, the Swachh Bharat Abhiyan programme is a right step forward, but
its lesser emphasis on faecal sludge management is a matter of concern.
www.IASbaba.com
P a g e | 110
Several questions like- How can a river or its constituents, with no voice of their
own, ensure such rights, or demand justice should they be violated? Who would be
the beneficiary of compensatory action?- remains to be answered.
As far as cleaning of rivers is concerned, there exists political will at least at the
central level, but its absence has been noticed in all States through which the two
rivers flow.
Way out:
Overall, the perception is that only governments are mandated or supposed to
ensure clean rivers. The public at large, civil societies, and industrial stakeholders,
are important stakeholders for achieving such objectives. And thus the civil society
must come together to protect the rivers.
Attention should also be given to reviewing the existing policy and legislative
initiatives: for example, adoption and implementation of laws such as the
Uttarakhand Flood Zoning Act 2012 by the participating States would also help in
restoring the health of the rivers by creating room for them.
Conclusion:
Nevertheless, the Uttarakhand courts judgement is an important step in the right
direction for ensuring clean rivers. Its time policy makers, civil society and more
importantly central and state administration fall in line.
www.IASbaba.com
P a g e | 111
ENERGY
TOPIC:
General Studies 3
Technology, Energy Security
Achievements of Indians in science & technology; indigenization of technology and
developing new technology.
Why in news:
The government has recently approved the construction of ten 700 MW Pressurized
Heavy Water Reactors (PHWRs). Even though the PHWRs are expensive, the
department of atomic energy persists with them because it lacks the expertise required
to build and operate cheaper light-water reactors (LWRs). The imported LWRs are more
expensive than the domestically built PHWRs.
Background:
India has a flourishing and largely indigenous nuclear power programme and expects to
have 14.6 GWe nuclear capacity by 2024 and 63 GWe by 2032. It aims to supply 25% of
electricity from nuclear power by 2050.
The proposed new reactors will amount to 7,000 MWe (megawatt electric), i.e. will
more than double the countrys current installed nuclear capacity of 6,780 MWe, a little
over 2% of power generated from all sources in the country.
www.IASbaba.com
P a g e | 112
that Indias agreements with Areva and Westinghouse were fiscally irresponsible. If
these projects had gone ahead we would have left with billions of dollars of debt,
and incomplete projects.
These reactors are commercially untested, since the largest PHWRs constructed so
far in India are the 540 MW twin units at Tarapur.
Nuclear electricity is likely to be costly. A rough estimate suggests that the cost of
electricity during the first year of operations at these reactors is likely to be around
Rs. 6 per unit at current prices. The Central Electricity Regulatory Commissions
published tariffs show that almost all currently operating Indian coal, natural gas and
hydroelectric power plants produce cheaper electricity. Even prices for solar power
have dropped below those of nuclear power. For example, the winning bid at the
auction for the Bhadla Phase-IV Solar Park in Rajasthan held last month was Rs. 2.44
per unit, which is fixed for 25 years.
Other sources of electricity have shorter gestation periods.
While announcing its decision, the government claimed that these plants would
generate more than 33,400 jobs in direct and indirect employment. But this
number ceases to be impressive when viewed in the context of the planned capital
expenditure of Rs. 70,000 crore. The relevant factor in assessing the employment
opportunities provided by a project is not just the total number of jobs produced
but the ratio of the jobs produced to the capital invested. In contrast, solar
photovoltaic sources were more than six times as labour intensive, creating about
0.87 job-years per gigawatt-hour of electricity.
Bad fit for climate change. The government also argued that these reactors would
bolster global efforts to combat climate change. Nuclear power poses its own set
of threats to the environment and public health, and is therefore an inappropriate
tool to mitigate climate change. All nuclear reactors produce radioactive waste
materials because each fission event involving nuclei of uranium or plutonium gives
rise to radioactive elements called fission products. Some of these remain
radioactive for hundreds of thousands of years. Despite decades of research, nuclear
waste remains an unavoidable long-term problem for the environment.
Nuclear reactors are also capable of catastrophic accidents, as witnessed in
Fukushima and Chernobyl. A single nuclear disaster can contaminate large tracts of
land with radioactive materials, rendering these areas uninhabitable for decades.
More than 30 years after the accident at Chernobyl, about 650,000 acres are still
excluded from inhabitation.
The peoples concerns. Local communities are keenly aware of the hazardous nature
of nuclear power. Since the 1980s, every new site chosen for a nuclear plant has
been greeted with a protest movement. The risks and costs are borne
overwhelmingly by poor rural communities, who consume only a tiny fraction of the
electricity that is generated.
The story of nuclear plants in India has been fraught with delays and opacity.
www.IASbaba.com
P a g e | 113
Conclusion:
With the changed international scenario for nuclear energy as source of power, and
disadvantages of nuclear electricity over other sustainable energy sources like solar,
hydro etc. we need to have a comprehensive re-evaluation of the role of nuclear power
in the countrys energy mix. The path to sustainable development run through a source
of electricity that is expensive and hazardous.
www.IASbaba.com
P a g e | 114
ECONOMY
In news: Recently, the National Income for 2016-17 were released. The data forms a
part of the 'Provisional Estimates of Annual National Income 2016-17 and Quarterly
Estimates of Gross Domestic Product 2016-17' released by the Ministry of Statistics and
Programme Implementation
India's per capita income grew by 9.7 per cent to Rs 1,03,219 in 2016-17 from Rs
94,130 a year ago.
In 2015-16, the growth rate of Indias per capita net income was 7.4%
Indias Gross National Income (GNI) at 2011-12 prices was estimated at Rs 120.35
lakh crore during 2016-17, against Rs 112.46 lakh crore a year ago.
The gross value added (GVA) growth slowed sharply in the fourth quarter to 5.6
percent, compared to 6.7 percent in the third quarter.
Growth in the fourth quarter of fiscal 2017 is also much lower than the 8.7 percent
growth reported in the fourth quarter of fiscal 2016.
www.IASbaba.com
P a g e | 115
National income is hard to estimate, particularly in economies like India where the
informal sector accounts for much activity and employment, thus making difficult to
capture official data.
The growth rate of every quarter has been sliding from the previous quarter.
During Q4, only two sectors- agriculture and public administration- have shown
strong growth
Construction and trade, hotels, transport and communication have shown a sharp
decline in Q4. These are the sectors which use cash extensively.
Demonetisation impact:
The overall growth rate of GDP is 6.1%, which is nearly 1% below the growth rate for
the previous quarter at 7%.
The liquidity crunch brought about by inadequate availability of currency
consequent upon demonetisation must have impacted a lot of activities, especially
such as housing and construction.
No doubt, demonetisation would have had a short-term disruptive effect which
would adversely affect growth.
The long-term benefits in terms of a change in mindset and behaviour of people and
greater use of technology-driven payments system can be analysed only in future.
However, there are other factors too which had an impact in growth.
Rate of Investment
The most disturbing aspect of the data just released is the continuing decline in the
Gross Fixed Capital Formation (GFCF) rate as proportion to GDP. It is steadily
declining and in 2016-17 it fell to 29.5% from 30.9% in 2015-16. During high growth
period, it was 33%.
Though attempts have been made to raise public investment and also improvement
in efficiency in the use of capital. This has led to significant improvements in the
output of coal, power and roads.
Job generation
It has been modest in past few years.
Growth can happen because of greater utilisation of existing capacity or new
investment.
For this, there is a need to bring in new investment which will push growth and
generate greater employment.
Of course, there will be many factors such as technology that play a key role in
determining the level of employment, but the investment needs a boost.
Burden of debt
The Indian banks and businesses are extensively suffering under the debt burden.
The health of the banking system is closely aligned to the health of the private sector
business, both corporate and non-corporate.
www.IASbaba.com
P a g e | 116
There is a need to quickly resolve the bank problems, especially the NPAs that will
enable the banks to restart their lending programme in a big way and help business
to embark on new investment.
Policy implications
For a sustained high growth, there is a need of policymakers to shift their focus
towards increasing the rate of investment in India. Though FDI in India is high, the
rate of growth of fixed capital formation has been weak. With the reforms agenda
being pushed forward, Bankruptcy Code becoming operational, implementation of
GST, these are welcome steps.
The slowdown in economy will put pressure on RBI to explain its stance on tight
monetary policy. The CPI has pegged inflation at 3%, well below RBIs medium term
target of 4 percent. Thus, the lower-than-expected inflation, together with
weakening growth, could prompt calls for a relook at the RBIs policy stance.
Adequate remonetisation should be done quickly to eliminate the adverse effects
caused by shortage of currency. Though decreased use of currency is desirable, it
should not be assumed show and resultantly reduce the supply. Many of the
informal sectors, rural population, poor people, senior citizens are using cash as
means of transaction.
Conclusion
While the adverse effects of demonetisation on GDP are clearly seen, it is difficult to
decipher how much of the decline in growth rate in the January-March quarter is due to
demonetisation and how much due to the underlying declining trend.
The macroeconomic stability parameters are in good shape with prices being in control.
The central governments fiscal deficit target is being adhered to as mentioned in
budget.
With the monsoons expected normal in 2017, it is the most appropriate time to convert
sentiment to firm action with a big push on private investment. Along with it, social
harmony and law and order also are the pre-requisites for faster growth and hence
shouldnt be ignored in race to achieve high growth.
TOPIC:
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Effects of liberalization on the economy, changes in industrial policy and their
effects on industrial growth.
www.IASbaba.com
P a g e | 117
It is vital that Indias trade policy, while taking cognizance of GSTs nitty-gritties, also
realigns domestic trade infrastructure with the altering global trade landscape. Indias
commerce ministry is conducting a mid-year review of its trade policy to closely align it
with the roll-out of the goods and services tax (GST) on 1 July. It might make more sense
to re-anchor the policy in the shifting framework for global trade and the rapidly
evolving nature of globalization.
Way forward:
Three areas demand trade policys attention.
1) Targeting alternative markets:
Less reliance on traditional trade partners in the West while increasing Indias trade
and investment footprint in alternative markets, such as the African continent.
India started looking at Africa seriously after the launch of economic reforms in 1991
and then with renewed vigour after the 2008 crisis. However, promises to increase
two-way trade between India and Africa to $90 billion by 2015 have remained
largely unfulfilled. Indias trade with Africa touched $56.7 billion during 2015-16,
down from $72 billion in 2014-15. The drop is largely due to the fall in oil prices,
which contracted Indias import bill with Nigeria. Meanwhile, China-Africa two-way
trade touched $215 billion during calendar 2014.
India has intensified its relationship with Africa, which includes initiating several
high-level visits since 2015. Prime Minister Narendra Modi, President Pranab
Mukherjee and vice-president Hamid Ansari have between them visited 16
www.IASbaba.com
P a g e | 118
countries, with senior cabinet ministers visiting the remaining countries on the
continent. During May, the African Development Bank held its 52nd annual meeting
in Ahmedabad.
More needs to be done, of course. Trade policy can examine how coordinated action
between commerce, finance and external affairs ministries might help in expanding
Indias trade efforts; for example, a larger presence of Indian banks outside the
conventional East African can help reduce export credit costs.
2) Linking India's trade policy with Make in India:
Second, there is a need for a clear link between Indias trade policy and Make In
India, including strategic linkages through global value chains. Policy clarity will be
required whether India desires domestic manufacturing platforms that double as
supply hubs for a global market, or assembly units that can be folded up and
relocated elsewhere when cost arbitrage dries up (Chinese mobile units are perhaps
a good example). Trade policy may be able to play a role here.
3) Focusing on trade in services:
Finally, there is trade in services. There seems to be a concerted move within the
rich countriesthrough the Organisation for Economic Cooperation and
Developmentto open up trade in services, including movement of professionals.
This has been Indias longstanding demand because trade in services has been
asymmetric so farhigh in capital flows, information and communication
technology, but low in free movement of professionals.
Rising unemployment, particularly in Europe, could be driving Western agencies to
prise open employment markets elsewhere. Indias demand (and strategy) for trade
facilitation in services should find some articulation in the revised trade policy.
Conclusion:
Recent developments are bound to reorder the global trade system. Therefore, it is
imperative that Indias trade policy also realigns domestic trade infrastructure with
the altering global trade landscape. It is also perhaps the perfect opportunity for the
policy to be more of a strategy document rather than a manual.
TOPIC:
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
General Studies 2
www.IASbaba.com
P a g e | 119
www.IASbaba.com
P a g e | 120
Challenges:
The global financial crisis largely passed India by; so, our need for quantitative easing
was limited. But we have created our own crisis non-performing assets (NPA).
However, the government is working to resolve the issue. It is worth mentioning that
the banking system has a provisioning coverage of 50 per cent plus on NPAs.
Conclusion:
The winners in this changing world are likely to be countries less reliant on global trade,
domestic consumption-driven, with an increasing population, a scope for productivity
improvement and a low per capita base. It would be fair to conclude that Indias GDP
growth rate of 7.5 per cent is good and sustainable, so also is the potential target of 8
per cent plus. We are moving towards increasing manufacturings share in furthering
www.IASbaba.com
P a g e | 121
jobs. This, combined with the increase in consumption through workforce increase,
should impact both consumption and investment, leading to the delta required to take
our GDP past 8 per cent. Driven by domestic consumption, the Indian economy is poised
to do better than most others. The present situation calls for accelerated economic
reforms for India to achieve a higher growth trajectory.
TOPIC:
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment
Inclusive growth and issues arising from it
Brief introduction
The GST will replace the present very complex system where the Centre levies a central
excise duty on goods up to the production stage and a service tax on services while the
states levy a state VAT (value added tax) on sales of goods, but do not tax services. Each
of these taxes has a VAT (value added tax) structure, but they are applied on different
bases. And in addition, there are a number of additional taxes e.g. the additional duty,
special excise duty and various central cesses by the Centre and luxury tax,
entertainment tax, octroi etc. by the states. All these taxes by the Centre will be
subsumed into a single central GST and the multiple state taxes by the state into a state
GST (legally a different tax in each state). These taxes will be applied on a common base
and at the same rate for each commodity across the country. This is a major
simplification which should be welcomed.
Timeline:
In 2006, then finance minister P. Chidambaram, in his budget speech for 2006, set the
target of moving a Constitutional Amendment Bill in 2010. It was moved by United
Progressive Alliance finance minister Pranab Mukherjee in 2012, but could not be
passed before the election. The National Democratic Alliance government took up the
baton after coming to power in 2014. Fortunately, differences were resolved and the
Bill was passed in 2016. The goods and services tax (GST) will now finally come into force
on 1 July
www.IASbaba.com
P a g e | 122
Benefits:
Despite these weaknesses, the GST will still be beneficial in many respects.
The replacement of multiple taxes with a single rate for each commodity (taking
Central and state GST together) is an advantage.
The fact that the same rate will be imposed on all imports in addition to the normal
import duty, is a major gain. It will level the playing field for domestic producers vis-
a-vis imports because at present imports escape the state taxes, which erodes the
protective benefit of customs duty.
The elimination of border posts will be a major benefit.
Way forward:
The GST Council should set up an expert group that could assess the performance
of the system based on results of the first year and work on a revised GST rate
structure to be implemented after the general election in 2019. One of the terms of
www.IASbaba.com
P a g e | 123
Conclusion:
No new system is without glitches. The new system should be judged not by whether
there are problems, but by whether the problems that arise are promptly corrected.
We must recognize that the birth of the GST is only a beginning. A systematic effort
should be launched to correct deficiencies over time through the mechanism of the GST
Council.
www.IASbaba.com
P a g e | 124
ECONOMICS
TOPIC:
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Government Budgeting.
Significance of budgets
The budget is an extremely important political expression affecting every citizen.
Budgets can be seen as contracts between citizens and the state. The budget, as a socio-
economic and political document, primarily involves a legitimate process of raising
revenue and (an equitable) distribution of public resources amongst various sectors.
The budget is the clearest expression of the direction of a governments priorities and
targets, reflecting its fiscal plans, and social and financial commitments. The budget is
also a primary instrument through which the elected representatives can exercise
influence on economic and social development policies of the country.
www.IASbaba.com
P a g e | 125
What is PBO?
A PBO is an independent and impartial body linked directly to the Parliament. It provides
high-quality technical, objective and non-partisan analysis of budgets and public finance
to the Parliament and its committees.
Need of PBO:
An institutional mechanism, such as a parliamentary budget office (PBO), is
necessary to provide continuous assistance to MPs and their committees.
An adequate and inclusive role of Parliament or the state legislatures in public
finance management is not sufficiently dealt with in the political economy literature
in India. There is a visible deficit, a knowledge gap, between Parliament and its
members in India. Parliamentarians do not have access to detailed evidence that
may allow them to pass judgment on budgetary decisions. A body that is
independent of the executive is necessary in order to provide independent
costings, fiscal analysis and research to all MPs, especially non-government
members.
Many ordinary laws have been piggybacked as money bills and included within the
Finance Act, 2017, while the Parliament remained entirely oblivious. The
establishment of a PBO would eliminate such malpractice as MPs would have been
alerted and appropriate action would follow.
A PBO is an instrument for addressing bias towards spending and deficits and, more
significantly, for enhancing fiscal discipline and promoting accountability.
Further, it can generate quality public debate on budget policy and public finance,
enabling parliamentarians to engage more meaningfully in the budget process.
A PBO could provide the essential substantive information and knowledge support
services for parliamentarians and committees. Such timely, accurate, objective,
responsive, and non-partisan information is vital for the productive working of the
parliament and its members. An independent, non-partisan, transparent body can
bridge the gap between executive decision-making and parliamentarian
involvement.
www.IASbaba.com
P a g e | 126
Conclusions:
The goal of the PBO is to render budgets more transparent and accountable. PBOs can
help parliamentarians understand the complex nature of the budgeting process and
provide the parliament and its committees with the capacity to contribute to the budget
process. Parliamentary scrutiny of public finance is a very important aspect for holding
the government(s) accountable to the people. However, the Parliament as well as the
state legislatures are institutionally fragile and ineffective in fulfilling their oversight and
scrutiny functions. There is a legitimate democratic need in this country to strengthen
the capacity of Parliament and its members. A PBO can ensure that parliamentarians
remain informed well enough to perform their budgetary and oversight responsibilities
effectively. Establishing a PBO in Parliament will have a positive impact on its ability to
carry out budgetary oversight and fiscal decision-making.
TOPIC:
General Studies 3:
Indian Economy and issues relating to mobilization of resources, growth,
development
General Studies 2:
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation; Important aspects of
governance, transparency and accountability
www.IASbaba.com
P a g e | 127
Introduction:
Many new measures to help resolve Indias problem of large and mounting non-
performing loans/assets, or NPAs have been launched by the government. Still Indias
war on NPAs seem intractable. Indian regulators have not yet resolved a case that can
be showcased as an example of what the recent regulatory measures can achieve.
Recent measures:
The Securities and Exchange Board of India announced that companies that are
pursuing acquisitions as part of resolution plans approved under the Insolvency and
Bankruptcy Code, 2016 (IBC) would be exempted from open offer obligations
typically applied under Indian takeover regulations.
The Reserve Bank of India (RBI) announced its decision to focus on 12 stressed
accounts, totalling about 25% of the current gross NPAs and referring them to the
IBC immediately.
The government had cleared an ordinance to amend the Banking Regulation Act,
giving the RBI more powers to direct banks to resolve bad loans.
A tough task:
These measures do not address some of the underlying characteristics of the Indian
economy and the banking sector that make NPA resolution a diificult task in India.
Indian banks need to accept significant haircuts to resolve the NPA cases as several
of them are in sectors where market conditions are in a slump, such as steel, power
and textiles. In this environment, it is difficult for banks to find suitable buyers of
distressed assets at desired valuations.
The government will require immense political will to allow bankers to take the
necessary haircuts (which will impact profitability negatively), without bankers
fearing that their decisions will be questioned or investigated in the future.
The tight resolution timelines envisaged under the IBC cannot be achieved if bankers
do not have the commercial flexibility and the autonomy to sell distressed assets.
Another issue not addressed by the recent regulatory changes is what role
promoters play in delaying NPA resolution. Unlike more developed markets, in India,
bankers cannot make significant management changes in distressed companies as
promoters closely control key aspects of a business such as relationships with
suppliers, customers and regulators. It becomes critical that promoters should agree
to and be involved in any resolution process. However, the RBI does not regulate
promoters and other shareholders, and hence cannot force resolutions on to them.
www.IASbaba.com
P a g e | 128
The framework includes the National Company Law Tribunal (NCLT), the
adjudicating authority for corporate insolvency cases under Section 60 of the IBC.
It also includes the network of insolvency professionals (IPs), a special class of
professionals, who will be appointed by the NCLT and in charge of managing the
debtor company, whilst being accountable to the committee of creditors and the
NCLT.
Issues:
The severe capacity constraints of the NCLT in handling the present and past backlog
of cases is well recognised.
It is also unclear how long it will take the NCLT judges to ramp up their
understanding of the complex bankruptcy environment to allow them to handle the
cases in an expedient and fair way.
Way ahead:
Regarding IPs, it is critical for the Insolvency and Bankruptcy Board of India to quickly
develop a robust way to select the most qualified IPs.
Apart from their technical capabilities, it will be crucial to ensure that the IPs are
truly independent and do not allow promoters or other key stakeholders to
manipulate the resolution process in any unfair manner.
India has a mixed track record of regulating professional services, and the quality
and independence of the IPs is critical to the successful implementation of the IBA.
The success of the bankruptcy law in India will depend on the jurisprudence that
develops under the IBC. We have to wait and watch how the various players,
including bankers, promoters, the government, IPs, auditors, lawyers, valuers and
liquidators, behave in the next few cases.
Conclusion:
The NPA issue can be surely resolved with the hope that institutional capacity will
strengthen; there will be greater alignment in the interests of the promoters, creditors
and buyers of distressed assets; and, finally, the government and banks will show a
strong political will to settle a few cases quickly and transparently.
www.IASbaba.com
P a g e | 129
INTERNAL SECURITY
TOPIC:
General Studies 3
Security challenges and their management in border areas; linkages of organized
crime with terrorism.
Role of external state and non-state actors in creating challenges to internal
security.
General Studies 2
India and its neighbourhood- relations.
External security:
India has a difficult neighbourhood and a full spectrum of security challenges. We
have over 4,900 km (4056+740+110) long unresolved borders with two major
neighbours. Both are nuclear armed. Over the years, they have established a strong
strategic nexus/alliance against India.
In the last few years, China has extended its claim to the whole of Arunachal
Pradesh. Already occupying Aksai Chin and Shaksgam part of Gilgit-Baltistan. The
China Pakistan Economic Corridor (CPEC), if and when it succeeds, will be a regional
game-changer. It would affect our relationship not only with Pakistan, but also with
Central Asia, and even Afghanistan.
As for Pakistan, the legacy of Partition continues to fuel its unremitting animosity
towards India. Kashmir and terrorism are only an expression. An increasingly
dysfunctional state like Pakistan, run by generals and increasingly wracked by
religious extremism, will not make peace with India.
China has been equipping Pakistan with strategic and conventional military
capabilities. With CPEC we will see more Chinese armed forces will enter Pakistan
to protect their assets and personnel.
www.IASbaba.com
P a g e | 130
Internal Security:
On the internal security front, much more worrisome today are the new, emerging
vulnerabilities.
Growing unemployment, the increasing ethnic, caste, communal divides, the
worsening Centre-state relations, and politicisation of every socio-economic issue
have ignited more fires lately and caused serious and more frequent law and order
situations.
Partisan politics over national security issues with media exploiting it for TRPs
with the multiplier effect of social media is getting the armed forces into political
cross-fire.
Way ahead:
We need to design and produce a major proportion of the hardware required by our
armed forces. We now have an elaborate Defence Procurement Procedure (DPP-
2016), with the newly approved strategic partnership model which will enable
private players to make big tickets defence systems. We thus need to build our
defence industrial base,
We require frequent updating of weapons, equipment, revision of security concepts
and doctrines, greater level of jointmanship and synergy, and much faster decision-
making.
www.IASbaba.com
P a g e | 131
In recent years, cyber and space domains have added yet another complexity. The
entire command and control mechanism of the government is dependent on space
satellites and IT facilities. Therefore, any military cyber war infrastructure should
work in close coordination with the National Information Board.
It is essential to develop, prioritise and optimally employ inter-services capabilities
and promote jointness in the armed forces.
Conclusion:
Indias security challenges are less traditional war threats, more diffused and
ambiguous. What is worrisome currently is not just the external threats, but Indias
weakening from inside: Weakening institutions, poor governance, sharpening political,
social and ethnic divides, internal security, and our lack of strategic vision and thinking.
Countering national security challenges and decision-making can no longer be dealt
with in silos. These challenges require multi-disciplinary vertical and lateral
consultations, and much faster decision-making.
TOPIC:
General Studies 2:
Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
General Studies 3:
Mobilization of resources, growth, development and employment
Indigenization of technology and developing new technology.
In news:
Tata Advanced Systems Ltd and US plane-maker Lockheed Martin Corp. signed an
agreement at the Paris Air Show to produce F-16 fighter jets in India.
Reliance Defence entered into a strategic partnership with Serbias Yugoimport for
ammunition manufacturing in India.
Reliance Defence joined hands with Frances Thales to set up a joint venture that
will develop Indian capabilities in radars and high-tech airborne electronics.
Meanwhile, at home in India, the army rejected, for the second year in a row, an
indigenously-built assault rifle after it failed field testsa pointed reminder of how the
countrys sub-par defence industry continues to damage the militarys operational
preparedness.
www.IASbaba.com
P a g e | 132
Recent developments:
In recent years there has been a greater focus on developing indigenous capabilities
through technology transfers and joint production projects with international
partners.
The government has also put defence at the core of its flagship domestic
manufacturing programme, Make in India.
It has opened up the still largely state-run sector to private players and foreign firms
in an effort to build a defence industrial ecosystem that will not only support the
countrys military requirements but also emerge as an important economic lever
generating exports, creating jobs, and spurring innovation.
The target is to source about 70% of Indias military needs from domestic sources
by 2020.
Cause of concern
Notably, the defence manufacturing industry has been open to the private sector for
well over a decade, and several foreign firms are involved in the joint production of
weapons systems in India. Yet the defence industrial ecosystem hasnt quite taken off.
The Indian military is still heavily reliant on foreign imports and state-owned defence
firms are still the dominant force in the market. Private firms, though growing in
number, have struggled to find their feet. Much will depend on how its strategic
partnership model, released late May, plays out on the ground.
www.IASbaba.com
P a g e | 133
Potential Benefits:
From the private sectors point of view, the biggest benefit would be the
opportunity to participate in some big ticket contracts which were hitherto reserved
for the DPSUs and OFs.
The model would also go a long way in bridging the long-standing trust gap between
the Indian private sector and MoD, with the latter perceived to be friendlier toward
public sector entities.
Given that future orders would not be awarded automatically after the initial
contract, it is in the interest of SPs to constantly improve upon their competitiveness
and core expertise.
The development of competitiveness and expertise to compete to win future
contracts, which was lacking in the case of DPSUs/OFs because of a constant flow of
orders handed over on a platter by the MoD, is something that would contribute to
laying a strong and credible foundation for Indias military industrial complex.
Challenges:
Lack of institutional capacity and ability to guide the new process to its logical
conclusion. In the past, several promising measures, especially those connected
with the Make and Buy and Make (Indian) procedures, have failed to yield the
desired results because of these shortcomings.
There is also a concern regarding the long-term viability of SPs largely due to the
privileged position enjoyed by public sector entities. Time and again, the MoD has
deviated from its own promise of fair play in award of contracts and handed over
large orders to DPSUs and OFs on nomination. It would be futile to expect SPs to
make major investments if the government does not provide a level-playing filed to
the private sector.
Yet another issue is that of how small and medium-scale enterprises (SMEs) will
respond to this model. SMEs are crucial to building a vibrant and robust ecosystem.
In particular, they do a much better job of absorbing, developing and
commercializing niche technology, which is key in the defence sector. But while the
government acknowledges their role and importance, it is unclear if its policy
supports that vision.
Outside of policy design, the biggest challenge to developing Indias defence
industry ecosystem is undoubtedly human resource and skill development. The
Dhirendra Singh committee report deals with this issue at length, noting that India
at present does not have a structured framework and a robust system to prepare its
human resources to address all issues connected with building and sustaining
defence systems.
Way ahead:
Apart from overcoming above mentioned challenges we need to bridge the skills gap
by-
www.IASbaba.com
P a g e | 134
Conclusion:
The "strategic partnership" model can potentially be a turning point in Indias
endeavour to have a robust home-grown private defence industrial base. It can be seen
as shot in the arm for the governments Make in India programme as well as efforts by
the Indian private sector to make inroads into the lucrative defence equipment
business. Thus the step is a welcome one,however, we need to overcome some
challenges.
www.IASbaba.com