NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.
General Studies – 2
Topic: India and its neighborhood- relations
1. Discuss the possible ways to recalibrate the relationship between India and Taiwan. (250 words)
Reference: The Hindu
Why the question:
The article talks about the recalibrating aspects of India-Taiwan relations.
Key Demand of the question:
One must present means and methods to recalibrate the relationship between India and Taiwan.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Briefly discuss the background of India-Taiwan relations from past to present.
Body:
India and Taiwan do not maintain formal diplomatic relations. The areas of cooperation between India and Taiwan have been limited due to negligible political relations.
Discuss what have been the long standing concerns; discuss the challenge of One China policy, The economic exchange is still relatively insignificant. Taiwan’s share of trade with India is around 1% of its global trade etc.
Discuss the areas where India and Taiwan can deepen ties.
Discuss the hurdles before it.
Conclusion:
Conclude that policymakers need to coordinate better with the business community to help them navigate the regulatory and cultural landscape for better ties.
Introduction:
The bilateral relations between India and Taiwan have improved since the 1990s despite both nations not maintaining official diplomatic relations. Today, India and Taiwan are celebrating 25 years of their partnership. India recognises only the People’s Republic of China (in mainland China) and not the Republic of China’s claims of being the legitimate government of Mainland China, Hong Kong, and Macau – a conflict that emerged after the Chinese Civil War (1945–49). However, India’s economic & Commercial links as well as people-to-people contacts with Taiwan have expanded in recent years.
Body:
Need to work on bettering of India-Taiwan relations:
- China’s hegemony:
- The India-China border stand-off in the Galwan Valley, following China’s incursion into Indian territory, is a reminder of India’s perennial problems with China.
- The recent violent clashes are an indication of Beijing’s hardline approach towards India.
- The clashes have confirmed is that this is not just about differing perceptions of the boundary, but China’s blatant attempts to change the status quo.
- This is in clear violation of the Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control (LAC) in the India-China border areas signed in 1993.
- Reducing dependence on China:
- Enhancing Taiwan-India relations is consistent with the Taiwanese government’s efforts to decrease economic reliance on China and with Taiwan’s New Southbound Policy (NSP), which improves upon the efforts of several of her predecessors.
- Taiwanese businesses are increasingly interested in shifting business ties from China to India and policies that facilitate such cooperation could provide mutual benefits.
- Geo- Strategic:
- The unfolding dynamic around Taiwan will have significant consequences for India’s Act East Policy and its emerging role in the Indo-Pacific Region.
- Strengthening Taiwan-India ties within the rubric of the NSP also overlaps with Taiwan’s relationships with Australia, United States, and Japan.
- Because these three countries, along with India, have formed an Indo-Pacific entente cordiale called the “Quad” to maintain a rules-based order in the region, Taiwan-India ties can benefit from the positive synergy of collaboration in areas of trade, research, and even defense.
- Moreover, India and Taiwan may see a convergence of security interests that could be further developed through interactions between the strategic communities on both sides.
- A stronger relationship between India and Taiwan could increase tourism, improve research and development, and promote educational ties, all of which are mutually beneficial.
- For the first time, Taiwan has officially started looking towards the six South Asian countries — Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka. India is a steering wheel for Taiwan’s deepening engagement in the South Asian region.
- Geo-Economic:
- The unfolding trade war between the US and China is compelling Taiwan to accelerate its plans to move its large manufacturing bases away from China to Southeast Asia and India.
- For India to promote industrial production and create jobs, the Taiwan connection with its impressive small and medium enterprises is more than opportune.
- Taiwan’s GDP is about $600 billion and twice the size of Pakistan’s economy. And few entities in the international system are today as eager and capable of boosting India’s domestic economic agenda.
- Talent and technology:
- Taiwan has embarked on a big mission to attract skilled workers. With a declining birth rate and growing emigration, Taiwan’s industry, education, and technology development could do with Indian engineers and scientists.
- The synergy in human resources provides the basis for massive collaborations between the universities, research institutions and technology enclaves in the two countries.
Concerns in the relations:
- India does not have formal diplomatic ties with Taiwan yet as it adheres to the One-China policy.
- India’s China policy and its focus on stabilizing relations with Beijing have led to the marginalization of Taiwan.
- When China protested the visit of an all-women parliamentarians’ delegation from Taiwan to India in 2018, the momentum in India-Taiwan ties further slowed down.
- Taiwan has been an excellent example of containing the ongoing Covid-19 pandemic. Yet, Beijing has been unjustly blocking Taipei’s participation at the WHO. India too has not tried to engage Taiwan in dealing with the pandemic. Through its response to Covid-19, the island nation has shown that it is beneficial to engage with it.
- Taiwan’s possible role in the emerging Indo-Pacific order has been under-appreciated.
Possible measures to better India-Taiwan ties:
- Political will: The shared faith in freedom, human rights, justice, and rule of law continues to embolden their partnership. To make this relationship more meaningful, both sides can create a group of empowered persons or a task force to chart out a road map in a given time frame.
- Electronics trade: India’s huge market provides Taiwan with investment opportunities. Taiwan’s reputation as the world leader in semiconductor and electronics complements India’s leadership in ITES (Information Technology-Enabled Services). This convergence of interests will help create new opportunities. India’s recent strides in the ease of business ranking not only provide Taiwan with lucrative business opportunities but also help it mitigate its over-dependence on one country for investment opportunities.
- Reducing regulatory cholesterol: There are around 200 Taiwanese companies in the field of electronics, construction, petrochemicals, machine, Information and Communications Technology and auto parts operating in India. Despite the huge potential, Taiwan investments have been paltry in India. Taiwanese firms find the regulatory and labour regime daunting with stray incidents such as the incident in the Wistron plant last year creating confusion and mistrust.
- Boosting avenues of Traditional medicine: India and Taiwan already collaborate in the area of traditional medicine. The time is ripe to expand cooperation in the field of healthcare.
- Fighting Air pollution: Taiwan could be a valuable partner in dealing with this challenge through its bio-friendly technologies. Such methods are applied to convert agricultural waste into value-added and environmentally beneficial renewable energy or biochemicals. This will be a win-win situation as it will help in dealing with air pollution and also enhance farmers’ income.
- Organic farming: New Delhi and Taipei can also undertake joint research and development initiatives in the field of organic farming.
- Tourism and Cultural exchange: The Buddhist pilgrimage tour needs better connectivity and visibility, in addition to showcasing incredible India’s diversity. This will accelerate the flow of Taiwanese tourists.
Way forward:
- It’s true that India does indeed adhere to the ‘One China’ principle. But that shouldn’t stop us from expanding appropriate relations with Taiwan which enjoys de facto sovereignty.
- India’s foreign policy priorities, particularly with regard to the Indo-Pacific, should accommodate Taiwan.
- Along with military preparedness and aligning interests with key countries, Taiwan needs to be included prominently in its long-term strategy towards China.
- Broad support from the Taiwanese public is necessary for increasing trade and people-to-people contacts, as well as for pushing Taiwan’s ruling parties to increase ties with India.
Conclusion:
The ties with Taiwan should not be solely viewed through China’s lens, the current border clashes with China has given a chance to both India and Taiwan to introspect on their policies and reach out to each other. India can no longer just rely on the transactional and need-based policies of major powers. It has to explore more options. This makes sense when Taiwan is willing to strengthen ties with India and even domestic debate is tilting in favour of this. It is high time India engages Taiwan bilaterally and also positions India-Taiwan ties in the regional context.
Topic: India and its neighborhood- relations
Reference: Indian Express
Why the question:
The article presents the tale of two relationships; Political stability and policy continuity have helped Delhi and Dhaka deepen bilateral ties over the last decade. In contrast, political cycles in Delhi and Islamabad have rarely been in sync.
Key Demand of the question:
Compare the two relationships of India and draw lessons of India-Bangladesh that can be utilized and applied with India –pak relations.
Directive:
Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Structure of the answer:
Introduction:
Start with brief background of the question’s context.
Body:
The answer body must have the following aspects covered:
- Factors responsible for deepened India-Bangladesh relation; Political stability and rapid economic growth in Bangladesh, India’s role in multiple instances such as – creation of Bangladesh, Invested diplomatic energy into transforming bilateral relations, boundary settlement and resolving the maritime territorial dispute with Bangladesh etc.
- Factors responsible for India’s poor relation with Pakistan; Cross-border terrorism, Lack ofpopular support in Pakistan, Politicisation of economic issues, Kashmir issue etc.
- Suggest way forward.
Conclusion:
Underline the importance of pursuing national well-being through regional cooperation.
Introduction:
India’s links with Bangladesh are civilisational, cultural, social and economic. India and Bangladesh today enjoy one of the best periods of their relationship, with positive development in the areas of diplomatic, political, economic and security relations. India played the great role in emergence of independent Bangladesh and was the first country to recognise Bangladesh as separate state. The 50th anniversary of the same will be commemorated shortly.
The historic land boundary agreement signed in 2015 opened a new era in the relations. Both the countries are the common members of SAARC, BIMSTEC, IORA and the Commonwealth. India has always stood by Bangladesh in its hour of need with aid and economic assistance to help it cope with natural disasters and floods.
Body:
Bilateral relations between India and Bangladesh:
- India and Bangladesh today enjoy one of the best periods of their relationship, with positive development in the areas of diplomatic, political, economic and security relations.
- Bilateral trade was a little over $9 billion in FY 2017-18 and Bangladeshi exports increased by 42.91%, reaching $1.25 billion in FY 2018-2019.
- The India-Bangladesh border is one of India’s most secured.
- By signing of the Land Boundary Agreement in 2015, the two neighbours amicably resolved a long-outstanding issue.
- In 2018, in addition to the 660 MW of power imported by Bangladesh, Indian export of electricity increased by another 500 MW.
- Train services on the Dhaka-Kolkata and Kolkata-Khulna are doing well, while a third, on the Agartala-Akhaura route, is under construction.
- Today, Bangladesh contributes 50% of India’s health tourism revenue.
- India and Bangladesh share 4096.7 km. of border, which is the longest land boundary that India shares with any of its neighbours. The India-Bangladesh Land Boundary Agreement (LBA) came into force following the exchange of instruments of ratification in June 2015
- Relations between the two border guarding forces are at their best right now.
- India and Bangladesh share 54 common rivers. A bilateral Joint Rivers Commission (JRC) is working since June 1972 to maintain liaison between the two countries to maximize benefits from common river systems.
- India and Bangladesh share the historical legacy of cooperation and support during the Liberation War of 1971.Various Joint exercises of Army (Exercise Sampriti) and Navy (Exercise Milan) take place between the two countries.
Factors responsible for deepened India-Bangladesh relation:
- India’s lending hand:
- Not only did India help the Bangladeshi freedom fighters during the 1971 war, it also assisted in its post-war reconstruction by providing financial assistance.
- The Indian Railway Board and Corps of Engineers of the Indian Army repaired 247 bridges and restored around 1,747 miles of railway tracks.
- Ups and downs:
- For a long time, the relationship was mired in mistrust and suspicion, but the political will displayed by the top leadership of both countries helped in resolving some long-standing issues; other important issues remain unaddressed.
- In 2019, Prime Minister Narendra Modi described India–Bangladesh relationship as being in its “golden era”.
- Cordial Bilateral relations:
- The Awami League’s victory in 1996 marked improvement in India–Bangladesh relations. Prime Minister Sheikh Hasina, the daughter of Mujibur Rahman, declared that she would not allow any anti-India activities in her country.
- Bangladesh’s gesture was reciprocated by many Indian leaders and particularly by I.K. Gujral, the then foreign minister in the H.D. Deve Gowda government and who later became prime minister and propagated a policy of India garnering goodwill among the neighbours by accommodating their demands without seeking reciprocity.
- Water- treaty:
- The landmark 30-year-long Ganges Water Treaty was an outcome of this doctrine. The upward trajectory of the bilateral relations continued and a Dhaka–Kolkata bus service was started on 19 June 1999 to improve connectivity between the two countries.
- Duty-free access:
- India also agreed to provide duty-free access to select Bangladeshi products and provided INR 200 crore of credit line to Bangladesh for buying transport equipment from India.
- Transit:
- Given the warmth in the relationship, Prime Minister Hasina initiated efforts to implement transit to India to reach its northeast regions (NER) by land.
- Strengthened Internal Security:
- Security forces in Bangladesh launched operations against such groups and helped in arresting leaders of various northeast Indian insurgency groups, including the chair of the United Liberation Front of Assam (ULFA) and chief of National Democratic Front of Bodoland (NDFB).
- Several militant leaders of these two organisations were handed over to India.
- Multi-dimensional ties:
- It has helped to maintain consistency in the relationship and to expand cooperation in multiple areas including connectivity, energy, space, and climate action.
- Around 50 institutional mechanisms have been established between India and Bangladesh in areas of security, trade, power and energy, transport and connectivity, science and technology, defence, river management, and maritime affairs.
- The peaceful resolution of the boundary dispute (land and maritime) is a success of this period.
Factors responsible for India’s poor relation with Pakistan:
- Refugees-sent after the partition.
- Distribution of assets and properties at the time of partition.
- Sharing of river water from tributaries of Indus.
- Status of Kashmir.
- Border disputes-stand on LOC (Line of Control).
- Infiltration by Pakistani insurgents.
- Pakistan’s aggressive posture; evident in attaining membership of SEATO, CENTO nuclear programmes, military strength, and activities of ISI etc.
- Pakistan’s close proximity to China and surrender of a large tract of Indian Territory under its occupation.
- Pakistan’s scepticism with India’s stance during the revolt of East Pakistan and creation of independent state of Bangladesh. On the contrary India’s intervention became a necessity to deal with large influx of refugees.
- Islamic state, political instability and dominant military have contributed in building anti-India posture in the minds of people.
- Extending support to separatist and terrorist elements to cause severe deadlocks and instability in India.
Way Forward for betterment of India- Pak ties:
- Strategic:
- It is time to define the nature and scope of our conflict with Pakistan.
- As the dominant power in South Asia and one of the world’s leading democracies, India must find a proper answer to what could otherwise become a serious existential crisis.
- India need to establish a national security doctrine in order to deal with all security issues
- Surgical strikes with support of the global countries.
- Strong intelligence network both inside as well as outside the country with effective dissemination to the stakeholders.
- Water issues should be resolved through the mechanisms provided by the Indus Basin Treaty and should not be allowed to degenerate into a serious source of conflict.
- Diplomatic:
- Creating International pressure on Pakistan to curb state sponsored terror.
- There is a strong need for India to change its approach from Responsive to Proactive.
- Gaining support of global players to designate terror organizations and its entities as global terrorists.
- India needs to engage and develop relationships with countries from important organizations like SCO, BRICS and try to enable solutions for the issue of cross border terrorism.
- This must be bolstered with Dialogues at the highest level to track 2 diplomacies.
- More avenues for people to people contact need to be encouraged.
- Economic:
- Imposing economic and political sanctions on Pakistan and asking the world to follow suit.
- The recent move of removing MFN status, increasing of import duty to 200%.
- Technological:
- Advance technology like drones, thermal imaging etc can be used to monitor the activities in the border and track any violations beforehand.
- Against cross-border firing:
- To reduce the destruction of civilian habitats is to lower the calibre of the violations. The two sides could consider withdrawing heavy artillery to 50 km behind the zero line.
- The two Director-Generals of Military Operations, along with their delegations, could consider holding regular meetings every six months. Data show that every time the leaderships of the armed forces meet, ceasefire violations come down
- Establishing more flag meeting points between local commanders and responding quickly to meeting requests could lead to better communication and reduced misunderstandings resulting in fewer ceasefire violations.
- Confidence-building measures should be pursued to alleviate the “trust deficit” but should not be used as a substitute for the resolution of disputes.
Conclusion:
There is a need to embrace an overarching strategic stability regime and to shun aggressive security doctrines to reduce the possibility of a nuclear conflict. The problems of terrorism and Non-State Actors need to be addressed jointly through institutionalised mechanisms. Indeed, India should focus on a different type of a surgical strike; it’s a strike that could push Pakistan out of its terror past and military dependency.
Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation
Reference: Economic Times
Why the question:
Following the military coup in Myanmar, at least 1,000 people from the adjoining Chin State of Myanmar are said to have crossed over to Mizoram, fearing a military crackdown. Thus the question.
Key Demand of the question:
Discuss in detail the Refugee crisis facing Myanmar and posing concerns on the state of Mizoram.
Directive:
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Set the context of the question with some key fact related to the migration of refugees.
Body:
The answer body must have the following aspects covered:
Discuss the issue at hand first.
Explain the concerns associated; Extremism, counter-insurgency and sectarian violence have driven people out of Myanmar into India in the past as well.
Discuss the underlying reasons – Much of the border with Myanmar is without any fence. The tough terrain along the border comes in the way of maintaining airtight vigil along the border. Present the Centre-State difference in terms of policy to address the issue. The Centre’s directive is at complete odds with the State government’s stand.
The Mizoram government favors providing refuge to the Chins, who are ethnically related to the majority Mizos in the State, but the Ministry of Home Affairs has made it clear that “India is not a signatory to the 1951 UN Convention relating to the Status of Refugees and the 1967 Protocol thereon”. The Ministry has pointed out that State governments have no powers to grant “refugee status to any foreigner”.
Conclusion:
Conclude with what needs to be done and suggest way forward.
Introduction:
Mizoram is caught between a humanitarian urge and India’s policy on refugees, with the February 1 military coup in Myanmar. At least 1,000 people from the adjoining Chin State of Myanmar are said to have crossed over to Mizoram, fearing a military crackdown. The Ministry of Home Affairs has made it clear that “India is not a signatory to the 1951 UN Convention relating to the Status of Refugees and the 1967 Protocol thereon”.
Body:
Background:
- Amid coup and crisis in Myanmar there is a free movement of refugees from across Myanmar into north-eastern states particularly Mizoram.
- The Centre is now proposing full border fencing.
- The Ministry of Home Affairs (MHA) has written to the Chief Secretaries of Nagaland, Manipur, Mizoram and Arunachal Pradesh to “take appropriate action as per law to check illegal influx from Myanmar into India.”
- India and Myanmar share 1,643-km border and people on either side have familial ties.
- India and Myanmar share friendly ties with each other, and the security forces of both countries have carried out multiple joint operations against Indian insurgent groups that sought a safe haven in Myanmar.
Challenges:
- Extremism, counter-insurgency and sectarian violence have driven people out of Myanmar into India in the past as well.
- More than 1,200 Buddhists and Christians from Myanmar’s Arakan State had taken refuge in Mizoram’s Lawngtlai district in 2017.
- They fled their homes after the Myanmar Army clashed with the extremist Arakan Army.
- The refugees stayed back for more than a year. Thousands of Chins are said to be living in Mizoram for more than 40 years now.
- Unlike India’s border with Pakistan and Bangladesh, much of the border with Myanmar is without any fence.
- The border areas between Myanmar and India are not highly difficult to cross, with a large percentage of it being unmanned and unfenced.
- The Assam Rifles personnel guard the border but a tough terrain comes in the way of maintaining airtight vigil.
- There are more than 250 villages with about 3,00,000 people living within 10 km of the India-Myanmar border.
- The influx of Myanmar citizens puts India in a difficult position, given New Delhi has close ties with the Myanmar military.
- The Myanmar military has often been supportive to Indian interests by helping to crackdown on North-East insurgency forces that have their bases set up across the Myanmar borders.
- India and Myanmar have an arrangement called Free Movement Regime (FMR) which allows locals on both sides to go upto 16 km across the other side and stay upto 14 days. Thousands of Myanmarese nationals visit regularly for work and to meet relatives.
- In March 2020, FMR was suspended due to COVID-2019 and no one has been being allowed since.
- The fallout of this, officials said, was that there has been an increase smuggling across the border as the livelihood of people has been disrupted due to the pandemic.
- For central agencies and Assam Rifles on the ground, it is a tricky situation in maintaining a delicate balance in executing the MHA orders and maintaining the cordial relations with the States agencies and the locals.
India’s response to refugee situation:
- As a humanitarian gesture, the Mizoram government on February 26 issued a standard operating procedure (SOP) to Deputy Commissioners of border districts to facilitate the entry of refugees and migrants.
- The SOP stated that all Myanmar nationals entering Mizoram in connection with the political developments in the country shall be properly identified.
- The government said those facing a threat to their lives should be treated as refugees, given medical care, relief and rehabilitation and security.
- But the SOP was revoked on March 6 after the Centre conveyed its displeasure to the State over the development.
- On March 10, the North East Division of the Ministry of Home Affairs issued a letter to chief secretaries of Mizoram, Nagaland, Arunachal Pradesh, Manipur and Director General of Assam Rifles, directing them not to allow refugees from Myanmar and take appropriate action as per law.
- The Ministry pointed out that State governments have no powers to grant “refugee status to any foreigner”.
Way forward:
- The immediate need of the hour is to discuss and have high level talks regarding the fallout of the military coup in Myanmar last month and the influx of refugees to Mizoram through the border.
- India cannot turn a blind eye to this humanitarian crisis unfolding right in front of us in our own backyard as this could have repercussions later.
- The humanitarian crisis faced by the people in the Myanmar should be taken into consideration and provided with intermediate relief to the refugees (Chin community) with whom Mizo people have ethnic ties and have close contacts from even before India became independent.
- The central government’s intervention for providing necessary relief measures to refugees staying in Mizoram should be expedited
- India must take a more proactive role and raise a stronger voice in support of people fighting for the restoration of democracy in Myanmar.
Topic: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Reference: Live Mint
Why the question:
The column from Livemint explains in what way the view that wage floors reduce jobs and don’t help workers has roundly been proven false.
Key Demand of the question:
Examine the scope of base wage policy at a time when at least half a dozen states in the country are in a rush to pass a law that reserves 75% of all jobs for locals.
Directive:
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Introduction:
Start with factual data related to states that have propounded reservations for locals.
Body:
The answer body must have the following aspects covered:
- Issues with the policy of job reservation for locals
- Background to the Minimum Wage
- Discuss the Minimum Wage Policy in India
- Arguments against raising base wage- Neo classical bogey
- Arguments for raising the base wage
Conclusion:
Minimum Wage has to be large enough to make a material difference to workers but small enough to keep demand inelastic.
Introduction:
At least half a dozen states of India are in a rush to pass a law that reserves 75% of all jobs for locals. Such a law would be deemed unconstitutional, and is unlikely to increase employment by much for locals, as compared to other strategies such as subsidizing skill-building and training, or improving commuting infrastructure, or creating an efficient jobs marketplace.
On the other hand, a wage floor (Code on wages) will neither create employment nor reduce poverty. This is the neo-classical position, most vehemently articulated by Milton Friedman and George Stigler back in the 1940s.
Body:
Issue with job reservation for locals:
- Compulsion on companies to employ locals might compromise quality and delay the recovery phase.
- Compulsions to employ decreases the competitiveness of companies. Apart from that, such measures directly discourage investment potential in a state.
- It might lead to the inspector raj prior to 1991 economic reforms.
- This step would create friction among locals and non-locals in the implementing states. This will shake the fundamental of Indian democracy (Unity in Diversity) in long run.
- Reservation to locals also violates Article 19(1)(g) is violated by Haryana’s law as outsiders won’t be able to effectively do any job of their choice in the state.
Along with this, if minimum wage is combined, this will be a double whammy for Indian economy.
Minimum wage policy: Background
- The new wage code removes the multiplicity of wage definitions, which can significantly reduce litigation as well as compliance cost for employers.
- The new Act links minimum wage across the country to the skills of the employee and the place of employment.
- It seeks to universalizes the provisions of minimum wages and timely payment of wages to all employees irrespective of the sector and wage ceiling.
- A National Floor Level Minimum Wage will be set by the Centre and will be revised every five years, while states will fix minimum wages for their regions, which cannot be lower than the floor wage.
Issues with raising base wage
- Minimum wages won’t help workers, it will lead to more automation and skew the mix away from labour to capital.
- David Card and Alan Krueger using inter-state data in US, were able to show that changes in minimum wage did not affect employment.
- Higher pay for low-skilled workers also reduces churn and decreases the overall cost of training and retention of workers for their employers.
Way Forward:
- The government should focus on “Need Based Minimum Wage” covering nutrition, healthcare, education, housing and provisions of old-age.
- An effective minimum wage policy that targets the vulnerable bottom rung of wage earners can help in driving up aggregate demand and building and strengthening the middle class, and thus spur a phase of sustainable and inclusive growth.
- There are number of labour-intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments. Special packages, individually designed for each industry are needed to create jobs.
- Decentralisation of Industrial activities is necessary so that people of every region get employment.
General Studies – 3
Topic: issues relating to intellectual property rights.
Reference: Insights on India
Why the question:
The question is from the static portions of GS paper III , part Indian economy.
Key Demand of the question:
Account for the issues that are faced in registering IPR in India and suggest solutions to address the same.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Start with the definition of IPR.
Body:
There are many IPR issues that one faces while getting IP rights in India. The issues are – Patent Ever greening Prevention, Subsidies & IPR Issues, The Product Patents Process, Protecting traditional knowledge, Compulsory Licensing & Drug Price Control Order etc.
Discuss the above mentioned points in detail and suggest what needs to be done.
Conclusion:
Conclude with way forward.
Introduction:
Intellectual Property Rights (IPRs) are legal rights, which result from intellectual invention, innovation and discovery in the industrial, scientific, literary and artistic fields. These rights entitle an individual or group to the moral and economic rights of creators in their creation. For ex: In India, patents are granted for a period of 20 years from the date of filing of the patent application. It is also to be noted that the patents are valid only within the territory where they have been granted. Once a patent expires, protection ends and the invention enters the public domain. In India, Patent Acts, 1970 regulate the IPRs.
Body:
Intellectual Policy Rights Issues:
There are many intellectual property rights issues that one faces while getting IP rights in India. So, getting IP rights in India has become a matter of contention and stakeholders are optimistic about India addressing these issues. There are many challenges and issues that India needs to address to maximize the profits of the companies. The issues are as follows:
- Patent Evergreening Prevention:
- One of the most important intellectual property rights issues challenges is the prevention of the evergreening of the patents for multinational companies.
- The companies cannot evergreen their patents simply by making minor changes. So, section 3(d) in the Indian Patent Act (IPA) possess as one of the biggest issues with regards to IPR.
- This act bars the grant of patents to new forms of substances.
- Subsidies & IPR Issues:
- The government provides subsidies to people especially farmers to reduce their burden.
- A major form of subsidies includes food subsidy, fertilizer subsidy, education subsidy, etc.
- However, for the complete implementation of TRIPS agreements, one needs to reduce or eliminate these subsidies.
- Thus, the Indian government needs to create a balance between providing subsidies and providing IP rights in India.
- The Product Patents Process:
- A product patent protects a product.
- It offers high protection to the original inventor to reduce the competition for the same product.
- Whereas, a process patent protects the process through which one manufactures the product and not the product.
- It reduces the element of monopoly in the market.
- As India is a part of the TRIPS agreement, the agreement requires all its members to shift their patent regime from process to product patent.
- This remains a challenge for India, as process patent would be more helpful to a country like India.
- This is due to the fact that India is a developing country and ordinary people are struggling with basic necessities like food.
- Protecting traditional knowledge:
- Traditional knowledge, especially in the field of medicine, is like a gold mine.
- The Indian government is bound to protect the traditional knowledge by not allowing MNC’s to get patents on the traditional culture.
- Above all, the government has created a Traditional Knowledge Digital Library (TKDL) to prevent the patenting of traditional knowledge.
- So, this is one of the intellectual property rights issues in India.
- Compulsory Licensing & Drug Price Control Order:
- One of the most important intellectual property rights issues that the government needs to address is the use of compulsory licensing.
- It’s a relaxation available to the developing countries under the TRIPS agreement, something which organizations misuse sometimes.
- Moreover, under section 84 of the IPA, a company can acquire a compulsory license for “private commercial use” under certain circumstances.
- National IPR Policy shortcomings:
- Policy is aimed at a gold rush towards IPR. A blind rush towards IP could be a deterrent to innovation itself by restricting knowledge flow.
- Policy recommends scientist and professors to convert all their discoveries into IP which in turn has the potential to curb the free flow of knowledge
- IPR policy is driven by the agenda of IP maximalism, where IP owners’ rights will be maximised at the cost of public interest. This (policy) will influence courts and judges who might consider rights of patentees above that on common man in certain cases.
- Policy recommends criminalization of unauthorised copying of movies – which is just a civil wrong.
- Not understanding the modes of creativity and sharing in “shadow economy “, the policy leans towards superimposition of formal IP framework.
- Other issues:
- Trademark Violations: India has very high level of trademark counterfeiting against which the authorities in India do not take proper actions.
- Enforcement of IPR regulations is quite weak in the country because of two important reasons
- India is key exporter of counterfeit fake products such as foodstuffs, textiles, shoes, electronics etc
- Judicial delays in IPR disputes
- India maintains high custom duties on IP intensive products as advocated by western countries impacting the investment (US puts India into priority watch list i.e., special 301 report).
Measures needed:
- Fostering an environment where innovation flourishes and a knowledge economy is built, is the key idea. Hence, the policy should have a balance.
- It should encourage patenting and at the same time ensure that patentability of a product/process does not deter further innovation and progress.
- Intellectual Property must not be about patents on paper but dearth of application in reality. T
- The organisations such as CSIR and others must be encouraged to work upon socially useful applications of their patents.
- Support for innovation has to be accompanied with instruments that guard local companies against the misuse of market power, coercive bargaining and aggressive acquisition strategies.
- India needs to spread awareness on IPR in public and for its traditional industries to enable fair monetisation of IP Rights.
- It needs to safeguard its patents, copyrights and traditional knowledge by ensuring easy IPR rules.
The steps taken by India for strengthening IPR:
- The statutes governing different kinds of IPRs in India are Patents Act, 1970; Trade Marks Act, 1999; Designs Act, 2000; Geographical Indications of Goods (Registration and Protection) Act, 1999; Copyright Act, 1957; Protection of Plant Varieties and Farmers’ Rights Act, 2001; Semiconductor Integrated Circuits Layout-Design Act, 2000 and Biological Diversity Act, 2002.
- The Department of Industrial Policy and Promotion (DIPP) is entrusted with matters concerning the specialised UN agency on IPRs, the World Intellectual Property Organisation (WIPO), including coordination with other concerned Ministries or Departments.
- The Controller General of Patents, Designs and Trade Marks (CGPDTM) under the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry is entrusted with the responsibility of administering the laws relating to Patents, Designs, Trade Marks and Geographical Indications within the territory of India.
- The Protection of Plant Varieties and Farmers’ Rights Act, 2001 is a sui generis legislation in India providing protection for plant varieties and rights of farmers and is under the aegis of the Ministry of Agriculture.
- The preservation of biological diversity in India is under the Ministry of Environment and Forests; the Biological Diversity Act 2002 provides mechanism for regulating access and ensuring fair and equitable sharing of benefits arising out of the use of biological resources and associated traditional knowledge.
- India has always been conscious of its obligations in the international arena, and has acceded to a number of international conventions to further the cause of IPRs globally.
- India was the first country to ratify the Marrakesh Treaty 2013 for Access to Published Works by visually impaired persons.
- The accession to the Madrid Protocol in 2013 is a step towards global alignment for proprietors of marks.
- The Indian Patent Office has been recognized as an International Search Authority and an International Preliminary Examination Authority.
- The Intellectual Property Appellate Board hears appeals arising from the decisions of Controllers of Patents as also Registrars of Trade Marks and GIs.
Way forward:
- Fostering an environment where innovation flourishes and a knowledge economy is built, is the key idea. Hence, the policy should have a balance.
- It should encourage patenting and at the same time ensure that patentability of a product/process does not deter further innovation and progress.
- Intellectual Property must not be about patents on paper but dearth of application in reality. T
- The organisations such as CSIR and others must be encouraged to work upon socially useful applications of their patents.
- Support for innovation has to be accompanied with instruments that guard local companies against the misuse of market power, coercive bargaining and aggressive acquisition strategies.
- India needs to spread awareness on IPR in public and for its traditional industries to enable fair monetisation of IP Rights.
- It needs to safeguard its patents, copyrights and traditional knowledge by ensuring easy IPR rules.
Topic: Conservation, environmental pollution and degradation, environmental impact assessment.
Reference: Down to Earth
Why the question:
More than 155 million children in South Asia live in areas with high or even extremely high water vulnerability, Unicef.
Key Demand of the question:
Discuss the factors that lead to water insecurity and suggest what needs to be done to address the issue while presenting its effect on children.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Quote the report – More than 450 million or one in five children, worldwide resided in areas of high or extremely high water vulnerability, according to a new report released by the Unicef March 18, 2021.
Body:
The new report is part of UNICEF’s ‘Water security for all’ initiative that identifies areas where physical water scarcity risks overlap with poor water service levels. The initiative aims to mobilize resources, partnerships, innovation and global response to identified hot spots.
Discuss the key findings in the report related to effect on children; the dimensions must talk about – health and nutrition, inequality, Gender inequality, livelihood and future etc.
Conclusion:
Conclude with way forward.
Introduction:
Water scarcity limits access to safe water for drinking and for practising basic hygiene at home, in schools and in health-care facilities. When water is scarce, sewage systems can fail and the threat of contracting diseases like cholera surges. Scarce water also becomes more expensive.
Lack of access to safe water also affects the physical well-being of women and children who have no choice but to carry heavy vessels long distances. As we face the COVID-19 pandemic, now more than ever access to safe water is critical to the health of families around the world.
Body:
According to a new report released by the UNICEF, more than 450 million, or one in five children, worldwide resided in areas of high or extremely high water vulnerability. The new report is part of UNICEF’s ‘Water security for all’ initiative that identifies areas where physical water scarcity risks overlap with poor water service levels.
Water insecurity and impact on children:
- Safe drinking water is critical to the development of a healthy child.
- Children who are consistently exposed to hazardous, unpotable water or exposed to pumps or water sources that have been contaminated by water-borne bacteria, contract diseases such as cholera and they are often affected by life-threatening diarrhoea from parasites in unclean water.
- Diarrhoea is one of the top three leading causes of child death and this is often triggered from consuming unclean water.
- Further, every 2 minutes a child dies from a water-borne disease.
- Whether they are consuming contaminated water or suffering from dehydration due to diarrhoea, a lack of access to safe water is responsible.
- 160 million children suffer from stunting and chronic malnutrition, which has been linked to lack of access to safe water and sanitation
- Water scarcity takes a greater toll on women and children because they are often the ones responsible for collecting it.
- When water is further away, it requires more time to collect, which often means less time at school.
- Particularly for girls, a shortage of water in schools impacts student enrolment, attendance and performance.
- Carrying water long distances is also an enormous physical burden and can expose children to safety risks and exploitation.
- Lack of sanitation and clean water often means that girls who are fortunate to be in school must often stop their education at puberty because of lack of proper resources during menstruation.
- Lack of sanitary facilities in schools for this purpose, and lack of any sanitary facilities along water ways means that children expose themselves to human waste on a daily basis, whether relieving themselves while traveling or wading in waters with high coliform levels.
Factors that lead to water insecurity:
- A combination of population explosion, unplanned growth of the city and its expansion to some traditional catchment areas (a region from which rainfall flows into a river, lake, or reservoir) have led to a reduction in the natural flow of water, and large-scale deforestation.
- Climate change, leading to much lower precipitation during the winter months. As a result, the natural flow and recharge of water in the region has fallen sharply
- Failure of State governments to check unplanned development and exploitation of water resources. There is no attempt at the central or state levels to manage water quantity and quality
- The vegetation pattern has changed, tree cover is shrinking and unscientific dumping of debris in water streams is rampant.
- The debris blocks the natural course of water bodies.
- Increasing number of tube wells resulting in depletion of groundwater.
- Changes in farming patterns lead to consumption of more water for irrigation and also change the soil profile because of the use of fertilizers
- The states ranked lowest like Uttar Pradesh, Haryana and Jharkhand – are home to almost half of India’s population along with the majority of its agricultural produce.
- There is also a lack of interest in maintaining India’s traditional water harvesting structures.
Measures needed:
- Structural measures:
- Putting in place an efficient piped supply system (without leakage of pipes) has to be top on the agenda.
- Ancient India had well-managed wells and canal systems. Indigenous water harvesting systems need to be revived and protected at the local level. Examples: Karez, Bawli, Vav etc
- Digging of rainwater harvesting pits must be made mandatory for all types of buildings, both in urban and rural areas.
- Treating the Greywater and reusing it needs to be adopted by countries like Israel (upto 85%). It could be used to recharge depleted aquifers and use on crops.
- Initiatives such as community water storage and decentralized treatment facilities, including elevated water towers or reservoirs and water ATMs, based on a realistic understanding of the costs involved, can help support the city’s water distribution.
- Technologies capable of converting non-drinkable water into fresh, consumable water, offering a potential solution to the impending water crisis are needed. Example: Desalination technologies in Coastal areas, Water-sterilization in polluted water areas.
- Non-structural measures:
- The World Bank’s Water Scarce Cities Initiative seeks to promote an integrated approach, aims at managing water resources and service delivery in water-scarce cities as the basis for building climate change resilience.
- Groundwater extraction patterns need to be better understood through robust data collection
- Decentralization of irrigation commands, offering higher financial flows to well-performing States through a National Irrigation Management Fund.
- Public awareness campaigns, tax incentives for water conservation and the use of technology interfaces can also go a long way in addressing the water problem. Example, measures such as water credits can be introduced with tax benefits as incentives for efficient use and recycling of water.
- A collaborative approach like the adoption of a public-private partnership model for water projects can help. Example, in Netherlands, water companies are incorporated as private companies, with the local and national governments being majority shareholders.
- Sustained measures should be taken to prevent pollution of water bodies and contamination of groundwater.
- Ensuring proper treatment of domestic and industrial waste water is also essential.
Way forward:
- Identifying new water resources: Assess the availability of water resources using various technologies, including remote sensing and geophysical surveys and field investigations.
- Improving the efficiency of water resources: Rehabilitate urban water distribution networks and treatment systems to reduce water leakage and contamination, promoting wastewater reuse for agriculture to protect groundwater.
- Planning for urban scarcity: Plan for future water needs by identifying available resources to reduce the risk of cities running out of water.
- Expanding technologies to ensure climate resilience: Support and develop climate-resilient water sources, including the use of deeper groundwater reserves through solar-powered water networks. Advance water storage through small-scale retention structures, managed aquifer recharge (where water is pumped into underground reserves to improve its quality), and rainwater harvesting.
- Changing behaviours: Work with schools and communities to promote an understanding of the value of water and the importance of its protection, including by supporting environmental clubs in schools.
- Planning national water needs: Work with key stakeholders at national and sub-national levels to understand the water requirements for domestic use and for health and sanitation, and advocate to ensure that this is reflected in national planning considerations.
- Supporting the WASH sector: Develop technical guidance, manuals and online training programmes for WASH practitioners to improve standards for water access.
Conclusion:
Water scarcity goes beyond a “simple” quest for clean water and exposes the unjustifiable conditions in which children across the globe live daily, with slow-evolving, sustainable solutions still too far behind their fate.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Reference: Live Mint
Why the question:
The article presents a new auction design for a bad bank to achieve its goals.
Key Demand of the question:
Explain and account for key reforms needed to effectively operationalize the proposed public bad bank idea in the country.
Directive:
Account – Weigh up to what extent something is true. Persuade the reader of your argument by citing relevant research but also remember to point out any flaws and counter- arguments as well. Conclude by stating clearly how far you are in agreement with the original proposition.
Structure of the answer:
Introduction:
Start with definition of a public bad bank.
Body:
The answer body must have the following aspects covered:
Issues with the proposal of Bad Bank by the government: It fell short of principles of: Enabling fair value discovery, Crowding out private investment.
Discuss how to retain the advantages of the present scheme while fixing its drawbacks.
Conclusion:
Conclude with suitable solutions.
Introduction:
A Bad Bank can be construed as an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC) that takes over the bad loans of commercial banks, manages them and finally recovers the money over a period of time.
Body:
Bad Bank: Background
- The bad bank is not involved in lending and taking deposits, but helps commercial banks clean up their balance sheets and resolve bad loans.
- The takeover of bad loans is normally below the book value of the loan and the bad bank tries to recover as much as possible subsequently.
- The burden of recovering those loans is reduced for other banks.
- Speed of recovery will be better as Bad Bank’s main work is recovery and they are specialised in that.
- Bad Bank increases profitability as they can focus on other aspects of credit than recovery.
However, before operationalising bad bank, government must ensure key reforms to make it successful.
Reforms needed to effectively operationalize bad bank in India
- Value-discovery: Written down book values, recently suggested by the Parliamentary Panel on Finance, are accounting conveniences and do not represent market value.
- Of critical importance is the creation of a level playing field for all market players, which, given the unequal treatment of public and private ARCs, doesn’t currently exist.
- Drop the government guarantee: In its place, the government should support the public ARC by subsidizing 15-20% of the cash component of every deal. This subsidy will counter-balance the ability of private ARCs to raise foreign capital at low rates of interest.
- Expand the addressable market for ARCs: As suggested in RBI’s draft circular of August 2020, private ARCs should also be allowed to bid for distressed assets that have not yet been deemed NPAs, referred to as SMAs.
- Raise the minimum cash proportion to 35%: Economic analysis shows that the problem with a 15% cash proportion is that it encourages deals at inflated values, which would artificially bolster the books of banks only to be followed by future write-downs.
- Equalize and rationalize accounting gains: Gains in the form of avoidance of provisioning should be available in an identical fashion for transactions of the public ARC as well as private ARCs
- Combinatorial auction instead of Swiss challenge: A new regulation should be passed which mandates that for every account with more than five creditors, the availability of more than 50% of the debtor’s outstanding amount for auction will automatically trigger an auction of the account’s NPAs held by all banks. This is similar in spirit to the IBC rules prescribing an absolute majority of 66% for a decision on a resolution plan.
Conclusion:
Minimizing the deployment of public capital and enabling fair value discovery must be the lodestar of a government that walks the talk on minimalism. The principles outlined above offer a way to operationalize the government’s intentions of setting up a bad bank.
