June-July IASbaba's Monthly Magazine - Compressed PDF

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PREFACE
With the present shift in examination pattern of UPSC Civil Services Examination, General
Studies II and General Studies III can safely be replaced with Current Affairs. Moreover,
following the recent trend of UPSC, almost all the questions are issue-based rather than
news-based. Therefore, the right approach to preparation is to prepare issues, rather than
just reading news.
Taking this into account, our website www.iasbaba.com will cover current affairs focusing
more on issues on a daily basis. This will help you pick up relevant news items of the day
from various national dailies such as The Hindu, Indian Express, Business Standard, LiveMint,
Business Line and other important Online sources. Over time, some of these news items will
become important issues.
UPSC has the knack of picking such issues and asking general opinion based questions.
Answering such questions will require general awareness and an overall understanding of
the issue. Therefore, we intend to create the right understanding among aspirants How to
cover these issues?
As promised, in the Second edition of our magazine, we have given a holistic approach
covering both news and issues in a comprehensive manner. The news items covered in this
magazine date from June 15th to July 31st, 2015.
Another important thing to note here is, IASbaba has come up with a innovative, alternate
thinking process with Connecting the dots. 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.
Belief is what makes an idea a reality. Believe in yourself and your Dreams!
We at IASbaba are always there to sustain and support your dream of becoming an IAS
officer. Wish you all the Best!!
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INDEX
IMPORTANT ARTICELS (Pages: 6-21)
Greece Crisis De-mystified

Indias Intellectual Property Regime- Does it need a Review?
Armed Forces Special Powers Act (AFSPA)
Repeal of Archaic Laws
Diverging CPI, WPI: The inflation conundrum
NATIONAL
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(Pages: 22-68)
Redesigning of Make in India

Dedicated Freight corridors
Solar systems mandatory on roof-tops
Three mega urban schemes launched: Primacy to peoples vision
a. Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
b. Smart city
c. Housing for All
Government to revamp oil, gas block auctions
Lower rank in Corruption Index helped India
Is Second Green Revolution Needed?
NGOs foreign funds and a trust deficit
One Rank One Pension (OROP): exclusivity key to preventing legal resources
A model for India - Section 377 of the Indian Penal Code
Controversy over Land Bill
Building India 2.0
Security agencies, not politicians, to decide over AFSPA
National Agriculture Market
A CTO for bridging the gap between governance and technology
Aadhaar data, NPR to be merged for National IDs
Dramatic drop in number of Underfed (Malnourished) children: UNICEF
India on track in cutting poverty: MDG report
Is NJAC a superior alternative compared to the present Collegium system?
Despite bar, private players continue in nutrition scheme
Corporate espionage: Government issues stringent guidelines to check information leak
North East: Inner line Permit
Manipurs dilemma
Interlinking of Rivers: Challenges
Criminal defamation- A pernicious law
India can be worlds HR capital: PM
a. National Skill Development Mission
b. National Policy for Skill Development and Entrepreneurship 2015
c. Pradhan Mantri Kaushal Vikas Yojana
d. Skill Loan scheme
Affordability of Drugs: 39 more Drugs under Price Control
Net neutrality: DoT panel backs regulating Skype, WhatsApp calls
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29.
30.
31.
32.
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35.
36.
No Indian educational institution in global list of top 300 universities

Dont take away our autonomy: IIMs
Autonomy of Indian Universities
Fixing food regulation : Maggi Controversy
The Energy Elephant
Renewable power: the challenges ahead
DNA profiling Bill triggers debate
Human trafficking A modern Slavery
INTERNATIONAL (Pages: 69-104)

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Two-speed regionalism
The Nuclear deal in Iran
India moves to reset ties with Iran
Iran Nuclear Deal: Challenges and Implications
India, Brazil cross swords with U.S. at WTO
U.N. accuses Israel, Hamas of committing war crimes
Heat Wave Kills Around 400 People in Karachi
Australia to join China-led Asian Infrastructure Investment Bank (AIIB)
50 nations in, AIIB takes shape
China, India fast-track BCIM economic corridor project
Bridging ties with the New Silk Road
Tibet poised to become part of Belt and Road initiative
Integrating Tibet with the world
India keeps away from vote against Israel in U.N.
Islamic State guidelines to avoid online surveillance
Pakistan dismisses Indias objections to China-Pak Economic corridor as intervention
India US: Issues
Liability law still clouds nuclear deal
India, U.S. ink pact on sharing account info
SCO decides to include India as full-time member
Dire need for a global consensus on refugees
India-Bangladesh: 90% of enclave dwellers give choice of nation
Strategic importance of Ufa summits
Food subsidies still haunt India at WTO
ECONOMICS
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(Pages: 105-143)
Moving from Cash to Card payment: Why is it a win-win situation for all?
Capacity building in Banks and Non-Bank Institutions
India among top 10 FDI recipients
Banks allowed to borrow from global institutions
World economy may be slipping into 1930s Great Depression problems: RBI's Raghuram Rajan
India ranked best for investment- Factual news
Concerns over risk in Algorithm trading
India is now a $2-trillion economy
RBI sets up panel on financial inclusion
RBI inks pact with Sri Lankas Central Bank
Clipping RBIs wings: On deciding monetary policy
Centre notifies rules for valuation of black money stashed abroad
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13. No immunity for wealth generated from graft
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Centre appoints arbitrator for Vodafone tax case

Govt. looks to simplify investment regime
Goods and Services Tax (GST) legislation and Issues
Labour Reforms and Challenges involved
Why is gold falling, and where is it headed?
Time to abolish the MRP
MAT: Shah panel says no relief for FIIs
Government releases Socio-Economic and Caste census
30 p.c. of rural households landless
Poverty estimation in India
How bad is the SECC data?
NITI Aayog taskforce to draw the line on poverty
Corporate Governance & Issues with Public Undertakings in India
Ending round-tripping : Time for a road map on abolition of participatory notes
ENVIRONMENT
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(Pages: 144-153)
Blue Economy, Green Gain

A note about Green Climate Fund
No mining, polluting units in eco-sensitive zones.
Gujarat and Tamil Nadu lead in project clearance in coastal areas
Rise in global temperature might make outdoor work impossible in India
Sowing the seeds of a disaster: Compensatory Afforestation Fund Bill, 2015 (CAF Bill)
SCIENCE & TECHNOLOGY

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(Pages: 154-160)
PSLV C-28 launches five UK satellites

ISRO tests indigenous cryogenic engine
After Nuclear-plants, Russia targets irradiation network
Defence Sector: Not in the spirit of indigenization
DO YOU KNOW?
(Pages: 161-162)
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IMPORTANT ARTICLES
Greece Crisis De-mystified
Imagine there is a guy X who has borrowed money from your father and bought an iPhone
with it; again he borrows money from your mother to buy expensive clothes; again he
borrows money from your brother/sister to buy utilities. The money that he is borrowing is
being lent at low rates and not adjusted for, in terms of inflation. Now this guy X asked a guy
Y to borrow a bigger amount from your father, your father lent him that money which in
turn was lent to X; who bought a Car for himself. So, in the eyes of the society, X is leading a
lavish life. Now your father/mother/brother have stopped lending more money and this has
made X not-adjustable to his expenditures and all. WHY? Because this lifestyle is not fuelled
by income but by taxes.
Here:
X : Greece
Father: EU (Read Germany)
Mother: IMF
Brother/Sister: Some other Creditor
Y: Greek Banks
The above mentioned story is what happened in Greece. Basically there are some macro
reasons as well like Corruption, Ill-Governance, Politics etc. , but the above factor is the
most crucial i.e. The growth & development of Greece was not fuelled by Taxes but through
debt
Here is the Timeline:
In the 1980s, Greece was a poor country and wasnt doing very well economically. But
Greece got major Financial institutions to conceal & dissimulate debt & other payables (like
pensions etc.) & got access to European Communities(and subsequently EU). This allowed it
to borrow loans at low rates and not adjusted for inflation. Greeks started to splurge on this
money. They started invested heavily and mindlessly in infrastructure projects like Athens
Olympics , they started to have huge military expenditures, totally uncalled for; considering
it to be a small country and its threat perceptions all this while dealing with the High-Levels
of Corruption, Bad Governance , Low Tax Compliance which had(has) crippled the nation to
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generate some income, on the back of which they were botching up the financial books to
show it(Greece) in Good Health & to gain more loans so as to keep up the growth &
developmental works and also to pay back the previous debts. All this was going on well till
the 2008 Crisis. WHY? Because the mortgage security crisis put a lot of pressure on the
creditors which all of a sudden were unwilling or unable to lend to the Greek Government
and with the sudden cut-off of this air-supply like debt; Greek Economy started to choke.
And with the Greek Govt. looking insolvent, banks became insolvent and the money
stopped flowing in Greece and because the govt. had internal liabilities as well it infuriated
the masses which further worsened the already worsened Economy of Greece.
So, How Bad was (is) it?
Imagine that you own a Hotel in Greece and 99% of your Guests are foreigners then youre
okay else you are not, which means there is no money in Greece on (of) its own.
So, whats the Way out?
The troika i.e. IMF, ECB, Juncker Commission issued the first of the two international bailouts for the Greece for about 110 Billion+ 130 Billion. But it came with certain conditions
like:1.
2.
3.
4.
Harsh Austerity terms; deep budget cuts &steep tax increases

Streamlining the Govt.
Ending Tax Evasion
Making Greece a better place to do business
But this happened sometime back? Why hasnt the conditions improved much?
They say To make Money, you need Money
Same is happening here. Much of the bail-out money goes off towards paying off Greeces
international loans, rather than making in-roads into the countrys economy.
Now, a deadlock arose between the Greeks and the Creditors over the bail-out conditions as
many felt that the austerity measures were(are) inhumane and this had lead to the
repeated violent protests all over Greece in the past some time.
To overcome this, a plebiscite was proposed by the Greek Govt., which was held on
05/07/2015; in which 61% of the people rejected the conditions. This prompted another
round of deliberations between the Creditors and Greek Govt. and on 13/07/2015, they
stroked a deal for 86 Billion over three years, but it came with a condition that it must be
approved by all the parliaments of Eurozone Countries.
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How did Greece and the EU get into this mess in the first place?
The seeds were sown back in 2001, when Greece adopted the euro as its currency. Greece
had been an EU member since 1981, but its annual budget deficit was never low enough to
satisfy the eurozone's Maastricht Criteria.
All went well for the first several years. Like other eurozone countries, Greece benefited
from the power of the euro, which meant lower interest rates and an inflow of
investment capital and loans.
However, in 2004, Greece announced it had lied to get around the Maastrict Criteria.
Surprisingly, the EU imposed no sanctions! Why not? There were three reasons.
France and Germany were also spending above the limit at the time. They'd be hypocritical
to sanction Greece until they imposed their own austerity measures first.
There was uncertainty on exactly what sanctions to apply. They could expel Greece, but that
would be highly disruptive and possibly weaken the euro itself.
The EU wanted to strengthen, not weaken, the power of the euro in international currency
markets. A strong euro would convince other EU countries, like the UK, Denmark, and
Sweden, to adopt the euro.
As a result, Greek debt continued to rise until the crisis erupted in 2009. Now, the EU must
stand behind its member or face the consequences of either Greece leaving the eurozone,
or even worse, a Greek default.
Should India be worried?

No direct affect as far as Greece crisis is concerned since India is not exposed to any trade
relations with Greece on larger extent. Though, it may affect India if the crisis is spilled to
other EU nations.
Europe is Indias one of the largest trading partners. The exports of India may get affected
if other EU nations fall into any crisis of this sort. It may also affect the capital inflows and
outflows. With over USD 355 billion foreign exchange reserves and the country promising to
grow at the fastest rate in the world, India can withstand any pressure from Greek crisis.
India is responding to the Greek crisis in line with other global economies. So far, there is no
cause of worry on Greece development
On 30/06/2015, Greece became the 1st Advanced Economy to default on an IMF payment.
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P.S: On 20/07/2015, Greece re-paid two loans to IMF & ECB.
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Indias Intellectual Property Regime- Does it need a Review?
Background Information:
India doesnt have a Policy for IPR though it works in compliance to TRIPS through a proper
framework and its Patent Act, 2005.
Recently, Global Intellectual Property Centre (GIPC), a US-based agency, published its IPR
ranking of countries the International IP Index 2014, where India got a low rank,
triggering some concern among Indian industry.
USTR had placed India under Priority Watch List under 301 report saying Indias IPR regime
is flawed.
The issue of Compulsory Licensing and disallowing the patents has enraged the pharma
lobbies of USA that put pressure on US policy makers to stand against India.
Basically the case of USA is of drug related patents and Solar panels to which Indian law is
fully compliant to TRIPS.
A look at Indian IPR:
India at Uruguay round managed to have certain flexibilities under TRIPS and after its Patent
Act, 2005 became deterrent to patent awards.
But India has used this flexibility of Compulsory Licensing only twice. Indias patent law is
compliant to TRIPS but only with respect to drug domain. Indias IPR law is parochial in the
sense that it does not put emphasis or secure other dimensions like Geographical
Indications, Trade Marks and Industrial innovations. Copyright issue is also one of the
aspects under intellectual property that has been misused by international and national
players.
In April 2013 the Supreme Court upheld the 2006 decision of the Indian patent office
denying the Swiss multinational Novartis patent on a drug that involved only incremental
innovation. (A case of Evergreening).
Overall, Indian IPR regime needs to be in line to protect holistic dimensions of Patent
System not only drug related domain as per TRIPS flexibility.
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Implications
Indias strong patent law has been a base for other developing nation to formulate such IPR
regime that is rattling big pharmas of USA and other developed countries.
Even if USA threatens India to come to WTO for negotiations, India has nothing to lose.
India has set an example through its stand against the pressure of USA and other developing
nations can emulate India that can be devastation for US companies that earn billion dollars
from patenting their products in developing nations.
Indias IPR Law: Critical Assessment
It will be incorrect to say the Indian legal system has not provided adequate protection for
IP. The Indian enforcement systems, especially courts, are rising to the occasion; in recent
years many cases have been handled by Indian courts.
CII is clear that IPRs help industries and companies enhance economic position, competitive
advantage, business, growth and investment in research and development.
The management of IPRs in India is at its early stages of development and there is a need
for consolidated efforts by government, industry, civil society and research institutions to
continually evaluate the Indian IPR system. Moreover a holistic policy concerning every
aspect of patents as mentioned above needs to be incorporated under future law or policy.
IPR jurisprudence is yet to make the desired impact on social, cultural, economic and
political fronts. India is sincere to its global commitments on this front and Indian industries
are partners to the government in this effort.
India needs a National Policy without succumbing to external pressure. Its contemporary
framework should be the bedrock for the future policy as it complies with TRIPS and other
international commitments.
Developing countries and also a few developed ones expect India to act effectively to
safeguard its domestic commitment to public health.
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Armed Forces Special Powers Act (AFSPA)

Historical perspective:
The roots of the Armed Forces Special Powers Act can be traced back in colonial time
of 1942, when an ordinance on Armed Special Power was promulgated by the then
Governor-General of India to contain the Quit India Movement .
This act proved very useful for colonial power to suppress the violence. This colonial
law also came handy to contain the large scale violence in post-partition time in
1948.
However, it was only in 1958, when the independent legislation on special powers of
Armed forces of Independent India, was enacted.
In mid 1950s, the law-and-order situation in North-east region, especially in
Nagaland rapidly deteriorated. Even, Naga rebels established a parallel
government in Nagaland. It caused severe security concerns and threatened
national integrity.
Though armed forces were deployed, but troops failed to contain the guerrilla war
waged by rebels. Because the civil and criminal laws were being major
impediments in conducting search and military operations in conflict prone areas.
In this light, Government of India (GoI), first promulgated an ordinance conferring
special powers to Armed forces which was later replaced with an independent
legislation.
Constitutional Validity:
Article 355 of constitution of India imposes a responsibility upon union government

to look after all severe security concerns of a state of union of India.
AFSPA is confined to be enacted only when a state, or part of it, is declared a
'disturbed area'. Continued unrest, like in the cases of militancy and insurgency, and
especially when borders are threatened, are situations where AFSPA is resorted to.
However, the right to declare any area as a disturbed area belongs to union
government. Initially, this right was given to Governor of the state but through an
amendment in 1972, this power was extended to union government.
It violates many fundamental rights like article 14, 21 and 22 through the protection
given to army personals against civilians.
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Present Scenario:
Presently, AFSPA is in force in mostly all or some parts of seven sister states of
North-East region as well as in the state of Jammu & Kashmir.
AFSPA has been a subject of major debate among union and state governments,
defence officials, civil societies and human rights NGOs.
There have been serious allegations against army officials regarding large scale
human right violations and misusages of the law.
This act is a kind of bare act with minimum provisions. AFSPA has only 6 schedules,
which provides substantial immunity to defence force personnel from all civil and
criminal laws of the land. It simply confers the immunity as same as, the soldiers are
entitled to get at the battlegrounds and wars.
AFSPA: Repeal or Stay
AFSPA was envisaged as a tool to address all major security concerns in disturbed
areas. It empowered the armed forces to take aggressive stance against all security
threats without bothering much about violations of civilian laws.
However, in the absence of an effective check-and-balance system, these powers
have been used in unsatisfactory ways. There are major human right violations
issues have been involved with AFSPA.
Union government have appointed several committees to look into the act and
suggest improvement but due to potential adverse repercussions on military forces,
union government could not implement any of recommendations.
B.P Jeevan Reddys committee had holistically reviewed the act in 2004. However,
its recommendation could not be implemented on the same account of fierce
opposition from ministry of defence and armed institutions.
Counter-insurgency experts argue that in any counter- insurgency endeavour,
primary focus should be on Winning Hearts and Minds (WHAM) of local people.
From this point of view, AFSPA stands on contrary side. Instead of winning hearts
and mind, it further worsens the relationship between Armed forces and Civilians.
It has created a Trust-Deficit.
Compromising Professionalism: With AFSPA being in force, military personnel
exercise little restrain on their part from taking extreme decisions such as firing or
torturing upon innocents. This leads to sharp drop in professionalism of armed
forces.
AFSPA provide incentives to perform lazy, non-perforfessional soldiering,
characterised by lack of focus.
Though AFSPA may have been effective in containing violence in disturbed areas, yet
its long run use and associated human right violations outweigh its benefits
regarding security concerns.
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On contrary Indias strategic imperatives demands laws like AFSPA to deal with
rising rebellious aspirations in North East and J &K.
Police reform is one major area that needs to be facilitated so as to maintain law
and order effectively leading to non- interference of Union in state domains. If state
machineries would have been able to maintain the proliferation of law and order
then there is no justification exists for acts like AFSPA.
AFSPA and Geopolitics:
This law has been condemned by most of international agencies, including UNHCR.
This has downgraded Indias image as a humanitarian country. It also weakens
Indias democratic credentials on global high table.
Under relevant international human rights and humanitarian law standards there is
no justification for such an act as the AFSPA. The AFSPA, by its form and in its
application violates the
1.
2.
3.
4.
5.
6.
Universal Declaration of Human Rights

International Covenant on Civil and Political Rights,
Convention Against Torture,
UN Code of Conduct for Law Enforcement Officials,
UN Body of Principles for Protection of All Persons Under any form of Detention,
UN Principles on Effective Prevention and Investigation of Extra- legal and
summary executions.
AFSPA has also caused severe tensions in centre-state relations vis-a-vis alleged
grave human rights violations and inability of union government to repeal or amend
the act.
Some foreign countries, including USA and China have taken special interest in
AFSPA and its alleged human right violations. In a recent wikileaks revelations, the
established correspondence between North-east region and US embassy in New
Delhi came to light. China on the other hand tacitly involved with the rebels and
encouraging the natives in their struggle against AFSPA.
The inclusion of Kashmir in 1990 through an amendment as a disturbed area in the
list has resulted into massive militarisation of the state. Kashmir is the most
militarized area in the world and this has serious repercussions for state
development process.
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Repeal of Archaic Laws
As part of the governments efforts to repeal obsolete laws and reform Indias legal
system, the government had introduced The Appropriation Acts (Repeal) Bill in
April, 2015 and has recently cleared a proposal to introduce a bill Repealing and
Amending (Fourth) Bill, 2015 in the parliament.
This is the first time since the year 2001 that such an exercise has been undertaken
by the law Ministry. Between 1950 as well as 2001, around 100 acts were repealed.
The Appropriation Acts (Repeal) Bill, 2015:
With the Appropriation Acts

(Repeal) Bill, 2015, over 700
Appropriation Acts which have lost
relevance and are clogging the
statute will be repealed.
It will do away with 758
appropriation
laws,
including
railways appropriation acts, and
111 State appropriation acts enacted by Parliament between 1950 and 1976. These
Acts provide budgetary support to states and were enacted when the states were
under Presidents Rule. After 1976, the right to repeal such Appropriation Acts was
given to states.
What are Appropriation Acts?
Appropriation Acts are intended to operate for a limited period of time - authorising
expenditures for the duration of one financial year or less, for example in the case of
Vote on Account Bills.
Though these Acts/Laws are not usually included in any list of Central Acts, either by
the Ministry of Law and Justice, or elsewhere, these laws still technically remain on
the books.
Why should these laws be repealed?
Laws don't suddenly become useless. It is due to a very serious change of

circumstances in a country's culture, economic needs, or political dispensation that
some laws need to be amended.
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In India, we have over an estimated 3000 central statutes which are obsolete,
redundant or have outlived their purpose. Over the years, Governments policies
have changed, it doesnt serve meaningful purpose now and many have been
superseded by modern laws.
There are over 300 colonial-era enactments in force in India which are redundant
and not implemented. Some of these British-era laws are even derogatory to a
particular group in India, and hence reminds of the days of slavery. Others pertain to
(a few examples)partition and post-independence reorganisation, unnecessary levies
and taxes, redundant nationalisation, outmoded labour relations, restrictive business
and economic regulations, ineffective governance and administration, obstructive
civil and personal interference.
Doing away with these laws would also make the governance more effective by
repealing obsolete laws and reforming Indias legal system.
Also, many unnecessary laws corrupt ordinary citizens who find it expensive and
time-taking to go through lengthy legal process and hence prefer to give bribes.
Red tape have been the talk of the town since the Prime Minister promised red
carpet and not red tape to businessmen in Japan. This red tapism has been the
major cause of crony capitalism. The other repercussion is that people and firms
prefer to stay away from engaging with the law and economic institutions
respectively. Hence, denial of justice to many and deceleration of economic
growth.
Will it have any cascading effect on the actions taken by the Government hitherto?
Repealing these will not cause any negative impact on actions that were validly
taken under these laws. It will, however, clean up the statute books.
EXAMPLES:
Laws which have become obsolete or unwanted or redundant
1. Reserve Bank of India Act, 1934: The preamble to the act governing the Reserve
Bank of India confers on India's central bank a "temporary" status, that continues
even now.
2. The Official Secrets Act of 1923: Any civilian or bureaucrat can be sent behind bars
for up to 14 years if he/she shares information related to government offices.
3. Section 309 of IPC: Attempt to commit suicide in India - a person committing suicide
is legal but if the person fails to do so, then attempting suicide is illegal! The person
can be arrested for committing the crime.
4. Bengal Suppression of Terrorist Outrages (Supplementary) Act, 1932 The law was
enacted to suppress the Indian freedom movement.
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Doesnt serve meaningful purpose now

1. The Sarais Act, 1867 Under this Act, a sarai has to offer passers-by free drinks of
water. A Delhi five-star hotel was harassed under the clause, though not prosecuted,
for not doing so.
2. The Research and Development Cess Act, 1986 The Act levies a 5 % cess on all
technology imported from overseas. This cess hinders the flow of technology into
the nation and poses a barrier to trade.
Have outlived their purpose
1. The Foreign Recruiting Act, 1874 This law was enacted with the interests of the
British Raj in mind, to prevent colonial subjects from serving any rival European
power.
2. The Resettlement of Displaced Persons (Land Acquisition) Act, 1948 The Act was
enacted to provide relief to persons displaced from their place of residence (in areas
now comprising of Pakistan) on account of the Partition, and subsequently residing
in India.
Derogatory to a particular group
1. The Santhal Parganas Act, 1855 This Act, introduced to serve the needs of the
British colonial administration, exempted districts inhabited by the Santhal tribe
from the operation of general laws and regulations. The purpose was to curb tribal
uprisings by isolating tribal populations.
Have been superseded by a modern law
1. The Companies (Donation to National Funds) Act, 1951 The Acts purpose can be
achieved through the Companies Act, 2013. The 1951 Act empowers any company to
make donations to the Gandhi National Memorial Fund, the Sardar Vallabhabhai
Memorial Fund or any other fund established for a charitable purpose and approved
by the central government by reason of its national importance.
Background:
The Repealing and Amending Bill, 2014
The Repealing and Amending Bill, 2014 was introduced in the Lok Sabha in August,
2014 by the Minister of Law and Justice, Mr. Ravi Shankar Prasad.
On May 05, 2015 the Bill has been passed by both the houses of the Parliament.
The Bill seeks to repeal about 36 laws and pass amendments to two laws.
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Repealing of certain laws: Indian Fisheries Act, 1897, The Foreign Jurisdiction Act,
1947, The Employment of Manual Scavengers and Construction of Dry Latrines
(Prohibition) Act, 1993 etc.
Amendment of certain laws: The Bill amends some provisions of The Prohibition of
Manual Scavengers Act, 2013, and The Whistle Blowers Protection Act, 2011. These
rectify typographical and certain patent errors, like the year of enactment
respectively.
The recently introduced Repealing and Amending (Fourth) Bill, 2015 is the 4th such
Bill continuing with governments efforts to repeal obsolete laws and reform Indias
legal system.
Connecting the Dots:

All possible dimensions relating to the Archiac or the obsolete laws have been dealt
comprehensively in this article. So we advice you to read this article 2-3 times, this will give
not only give you complete analysis and multi-dimensional view point, but also bring in
more clarity.
Also think over these issues:
How relevant is the provisions of Indian Penal Code (IPC), 1860 in the context of
streamlining of Criminal Justice system (or Police Reforms) in India?
Does Official Secrets Act, 1923 have relevance to the modern times?
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Diverging CPI, WPI: The inflation conundrum
The two main inflation indicators - the Wholesale Price Index (WPI) and the
Consumer Price Index (CPI) are moving in widely divergent directions. In the last
eight months, while CPI (retail inflation) has consistently moved upwards, the WPI
(headline inflation) has dramatically contracted, leaving a substantial 7.8 % point
gap between these two inflation estimates.
The development has posed a problem for policy makers as while the movement of
consumer prices makes out a case for higher interest rates, the wholesale price
movement demands urgent reduction in key interest rate.
The recent trend of WPI :
The headline inflation (WPI) covers the entire production chain and measures
inflation across the spectrum. It has been declining due to the significant fall in the
global commodity prices, leading to a decline in the prices of raw materials.
WPI is more affected by the international prices, since manufacturing has a higher
weightage in WPI (while food is given higher weightage in CPI). International marked
are predominated by the manufacturing goods.
The headline inflation has been on the downward trend since June 2014 when it
stood at 5.66 %, subsequently falling to 1.66% in October, turning zero in November
and then entering into the negative zone in January 2015 when it stood at -0.95 %.
Why has CPI remained high?
The main reason is lack of competitive integrated market this is the reason why
price changes at the upstream level, i.e., the raw material, intermediate goods and
capital goods, dont get reflected in the final products and eventually in the CPI.
Lack of proper infrastructure inefficient forward and backward linkages leading to
wastages and higher cost.
Reasons for the divergence between the two indices- WPI and CPI and its Impact:
1. Variation in base years While WPI is measured on base year 2004-05, CPI is
measured on base year 2012. The government moved to the new base year for CPI
from January 2015.
2. Composition -The basket of items and weights allocated to the individual items in
the two indices, is also different with cost of transportation and rent on housing
being a part of the CPI and not WPI.
3. End consumers overburdened - Though the prices of raw materials have gone down
considerably, it is not getting reflected in the final price of the product as it is not
passed on to the consumers. There is a huge profit margin made by the users.
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4. While profit margins are a significant factor in the CPI divergence, corporate profits
have not really gone up much so as to define the current gap between the two
indices.
5. Same is the case with fuel prices Though the fuel prices too have come down
sharply, the government has not passed the benefit of a benign fuel prices to
customers. That has been used to reduce subsidies and strengthen the fiscal
position.
What should the ideal difference between CPI and WPI be?
According to economists, ideally CPI should not be more than 1% point of WPI on
either side. Headline inflation in June 2015 was -2.4 % while the retail inflation was
5.4 % during the month.
Some experts Opinion/Views:

For WPI - WPI should be used to measure inflation because Indian markets are not
integrated.
For CPI - In economies where such integrated markets exist, CPI is the ideal measure. In such
markets, both CPI and WPI should move in tandem.
Balanced view While WPI can be used as a more effective measure of inflation, CPI can be
used for inflation targeting by the RBI because it has to maintain the real interest rate and
therefore has to target CPI because retail consumers are impacted by it.
The below picture indicates the weightage given to different commodities under CPI and
WPI
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Composition of WPI:
Around 20.12% of the basket consists of primary articles. This includes food articles
such as cereals, meat, fish, fruits and vegetables. It also includes non-food articles
such as cooking oil, cotton, jute and minerals.
Fuel and power (14.91%) includes elements such as electricity, mineral oils and coal.
Items such as kerosene, diesel, liquefied petroleum gas and petrol also fall in this
category.
Manufactured goods (64.9%)- There are many sub-groups in this category; some of
the main ones are chemical and chemical products, basic metals, alloys and metal
products, food products, machinery and machine tools and textiles.
Changes in bulk prices of items in the WPI basket may not affect ones spending
directly but ultimately this trickles down to retail prices as well.
Composition of CPI:
Earlier the CPI was compiled for three segmentsindustrial, agricultural and rural
workers. However, in 2012 this got changed and is now compiled as urban
household and rural household linked CPI.
This is relevant because the consumption patterns vary vastly in urban and rural
India. The CPI is like your shopping basket. The new CPI has five sub-groups including
food and beverages, fuel and light, housing and clothing, bedding and footwear.
The weightages differ for the rural and urban baskets. For example, the urban basket
has a much higher weightage to housing related items.
Unlike the WPI, this is more relevant to an individuals daily expenditure.
In the Indian context, is CPI the right measure of inflation?

Should India use both the indices (CPI, WPI) for inflation measurement and inflation
targeting/ inflation control? Give your arguments and substantiate.
What are the steps taken by the govt. and RBI with regard to the same
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NATIONAL
Redesigning of Make in India
To some, Make in India intends

to foster innovation and build the
economy by attracting foreign
investment
to
develop
infrastructure
in
the
manufacturing sector.
To others, it focuses on
domestically
manufacturing
products innovated by foreign
firms. However, unless R&D is
strengthened
and
the
manufacturing ecosystem for homegrown entrepreneurs is developed, Make in India
will not help the nation emerge as an innovation hub.
What the government is missing in formulating Make in India is design thinking?
Make in India lacks systemic thinking, and does not have a human-centred approach,
which are key tenets of design thinking.
A systemic problem-solving process that can visualize or shape tools, society,
policies, products, businesses and environment by driving human-centred and
context-sensitive innovations.
The programme also lacks granularity in terms of details and foresightedness
towards building an innovation-driven nation.
What are the flaws in Make in India Design?
First, due to a lack of systems thinking, Make in India will not lead to the creation of
a sustainable economy.
Second, due to a lack of empathy for domestic manufacturers and entrepreneurs,
Make in India by itself will not foster domestic innovation.
Third, Make in India does not encourage inclusive growth.
Fourth, Make in India focuses on the economy, but misses on the socio-cultural and
behavioral aspects of encouraging productivity.
What changes can Design thinking bring out?
Design thinking can bring about societal change, especially when injected into the
education system from kindergarten all the way to training of administrative officers
and civil servants.
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Design thinking can be applied to visualizing new policies as well as re-framing

existing policies, to make them human-centric, cohesive and to include multiple
stakeholder needs and views, thus increasing their adaptability and efficiency in
implementation.
Sadly, in India, the most common notion of design is still only linked with aesthetics.
IAS BABAs View
A design thinking approach is essential to nurturing a culture of innovation.

For Make in India to focus on inclusive growth through innovation, it must be
clubbed with Made in India.
It must focus on building a robust ecosystem and leading a cultural change that
drives innovation encouraging entrepreneurs and intrapreneurs.
By involving multi-stakeholder views and an iterative thinking cycle at the time of
envisioning policy, granular details towards building up high quality R&D units and
manufacturing to build an innovation ecosystem can be detailed out.
Only then can Make in India bring about societal change, creating a new breed of
thinkers and innovators who take pride in building high-quality products that are
trusted for quality and that bear the imprint conceived and manufactured in India.
Explain why Indian manufacturing sector needs to undertake more indigenous

research and development to alien manufacturing with the principles of sustainable
development?
What explains Indias lackluster participation in Global production network for
Make in India?
Dedicated Freight corridors

Advantages of the Freight Corridor
The Eastern and Western Dedicated Freight Corridor (DFC) Project will significantly
reduce transportation cost and benefit power plants, mines, ports, and boost trade
and industry.
Only electric trains operate on the Dedicated freight corridor hence this will reduce
pollution or Green house gases.
Would lead to greater speeds and increased efficiency, as the passenger traffic and
freight (or goods) traffic will be separated.
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Facts:
The Western DFC starts from JNPT Mumbai and passes through Maharashtra,
Gujarat, Rajasthan, Haryana, and terminates at Dadri in Uttar Pradesh. The total
length will be about 1,500 km.
The Eastern DFC starts from Sahnewal near Ludhiana in Punjab and passes through
Haryana, Uttar Pradesh, Bihar and Jharkhand and terminates at Dankuni in West
Bengal. The total length is about 1,856 km.
The Cabinet had in February 2008 approved the construction of the freight corridor.
Issues related to infrastructure Development Financing, PPP challenges etc.

What are the other industrial corridors like Delhi - Mumbai Industrial Corridor
(DMIC) in partnership with Japan etc.? Co-relate this with Smart cities.
Make note of Golden and Diamond Quadrilateral; North-South Corridors. How
advantages
Solar systems mandatory on roof-tops

Proposal
The Central government is likely to make it mandatory for buildings to install solar
roof-top systems. The proposal is among the initiatives planned by the Government
of India to support the massive solar capacity addition target (100 GW by 2022).
The proposal is to amend building norms for mandatory provision of roof-top solar
for new construction and 10 % renewable energy provision for end-customers under
the new scheme of Ministry of Urban Development.
Mandatory roof-top solar in Indian States
Mandatory roof-top solar is not new to India. Similar policies have earlier been
formulated by the states of Haryana and Tamil Nadu.
Likely Reasons for Non-compliance of the mandate
Though Central and state government subsidies are announced, they are not
available.
Net-metering exists on paper but the process for providing inter-connection has not
yet been streamlined.
Awareness and support from the public
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Background
Jawaharlal Nehru National Solar Mission
The Jawaharlal Nehru National Solar Mission was launched in 2010. The Mission has
set the ambitious target of deploying 20,000 MW of grid connected solar power by
2022.
It is aimed at reducing the cost of solar power generation in the country through (i)
long term policy; (ii) large scale deployment goals; (iii) aggressive R&D; and (iv)
domestic production of critical raw materials, components and products, as a result
to achieve grid tariff parity by 2022.
Courtesy Ministry of New and renewable Energy

In the backdrop of increasing demand-supply gap in energy, what is the significance

of renewable energy in India?
Though Solar potential is immense in India, what are the challenges? What are the
steps taken by the Government in this regard?
Three mega urban schemes launched: Primacy to peoples vision
With the objective of urban transformation, the Prime Minister has launched 3 Mega
Urban schemes viz., Smart Cities Mission, Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) and Housing for All to enable better living and drive
economic growth.
Under AMRUT, 500 cities are targeted for development. The Smart Cities scheme will
target development of 100 cities over five years and Housing for All envisages
construction of two crore houses in urban areas in seven years.
Two systemic changes in the flagship programs:
With the vision of people-centric urban development, for the first time residents
will be given the mandate to formulate a development vision for their cities.
States have been given more powers to decide how urban areas should emerge and
be given liberty and flexibility in formulation, approval and execution of projects.
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Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which replaces
the Jawaharlal Nehru National Urban Renewal Mission, will give the States and the
Union Territories the liberty and flexibility in formulation, approval and execution of
projects.
AMRUT adopts a project approach to ensure basic infrastructure services relating to
water supply, sewerage, storm water drains, transport and development of green
spaces and parks with special provision for meeting the needs of children.
Implementation of this mission will be linked to promotion of urban reforms such as
e-governance, constitution of professional municipal cadre, devolving funds and
functions to urban local bodies, review of building bye-laws, improvement in
assessment and collection of municipal taxes, credit rating of urban local bodies,
energy and water audit and citizen-centric urban planning in cities other than the
100 smart cities.
Under this project, 10% of the budget allocation will be given to states/union
territories as incentive based on achievement of reforms during the previous year.
Smart city
The 100 smart cities mission intends to promote adoption of smart solutions for
efficient use of available assets, resources and infrastructure with the objective of
enhancing the quality of urban life and providing a clean and sustainable
environment.
Under the Smart Cities Mission selected through a City Challenge Competition
would get central assistance of Rs 100 crore per year for five years.
Each state will shortlist a certain number of smart city aspirants and they will
prepare smart city proposals for further evaluation for extending central support,
Under this mission, special emphasis will be given to participation of citizens in
prioritizing and planning urban interventions.
This will be implemented through an 'area based' approach consisting of retrofitting,
redevelopment, pan-city initiatives and development of new cities.
Under retrofitting, deficiencies in an identified area will be addressed through
necessary interventions. Pan-city components could be interventions like Intelligent
Transport Solutions that benefits all residents by reducing the commuting time.
Smart city aspirants will be selected through a process of competition and with
effective citizen participation ending the top down approach and leading to
people centric urban development.
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Housing for All

Components of the program
Slum rehabilitation of Slum Dwellers with participation of private developers using

land as a resource;
Promotion of affordable housing for weaker section through credit linked subsidy;
Affordable housing in partnership with Public & Private sectors
Subsidy for beneficiary-led individual house construction or enhancement.
Mandatory Reforms
The Mission prescribes certain mandatory reforms for easing up the urban land
market for housing, to make adequate urban land available for affordable housing.
Womens empowerment has been made a component of the Housing for All
scheme that envisages houses for all by 2022. Ownership of houses will be in the
name of women or jointly with the husband.
The average Rs. 1-lakh grant for a house to be provided by the Centre can be used by
the States for slum redevelopment projects to make them viable.
Courtesy PIB, Economic Times

Connecting the dots:
In the process of rapid expansion of urbanisation in India, what are the challenges
and opportunities?
Governance issues related to infrastructure, finance, slums, migration in Urban
areas.
Though urban development programmes launched by the Government of India, in
the recent decade are of best of intentions what are the issues in achieving the
targets? Is the problem at the plan formulation stage or implementing stage or topdown approach followed by the govt?
Government to revamp oil, gas block auctions
Government will hold the tenth round of auctions for oil and gas blocks under the
New Exploration Licensing Policy (NELP) in the current fiscal.
The auction, which will be held almost four years after the ninth round received a
lukewarm response in 2010-11, is expected to bring in investments and boost
domestic production.
Government is looking to introduce open acreage system and also change the
formula for the production sharing agreement.
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The open acreage system will enable bidders to bid for blocks on offer at any time of
the year, and data for these blocks would be made available to the bidders through
the National Data Repository.
What is NELP?
New Exploration Licensing Policy (NELP) was conceptualised by the Government of

India, during 1997-98 to provide an equal platform to both Public and Private sector
companies in exploration and production of hydrocarbons with Directorate General
of Hydrocarbons (DGH) as a nodal agency for its implementation. It was introduced
to boost the production of oil and natural gas and providing level playing field for
both public and private players.
What is Production Sharing Contract?
Production sharing agreements are a common type of contract signed between a

government and a resource extraction company concerning how much of
the resource (usually oil) extracted from the country each will receive. Production
sharing agreements can be beneficial to governments of countries that lack the
expertise and/or capital to develop their resources and wish to attract foreign
companies to do so.
This way India invites foreign entities to invest in Indian Oil Sectors.
What is Open Acreage System?

Lets keep it simple- It allows an explorer to study the data available and bid for blocks of his
choice.
1. Why Government wants to shift from NELP to Open Acreage Policy?
2. Despite an excellent production-sharing contract (PSC) regime, Indian oil and gas
block auctions have not attracted the big daddys in the business? Such questions
giving importance to Indian policies and laws that are flawed, is trap for you either in
Mains or Interview
Lower rank in Corruption Index helped India

Not so important news. Just have a read.
India came first in the Baseline Profitability Index helped by its improved ranking in
the Transparency Internationals Corruption Perception Index in 2014, the
country was at the 85th position out of 175 countries as compared to its ranking of
94 out of 177 countries in 2013.
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In 2014, the average BPI score across all countries was 0.99; this year it is 1.03
meaning the expected returns over the next five years are about three-quarters of a
per cent higher a year.
Is Second Green Revolution Needed?
In the recent times there has been a major thrust for another Green Revolution and
special focus would be on Eastern States likeUttar Pradesh, Bihar, West Bengal,
Jharkhand, Assam, Odhisa.
Modernising the agriculture sector
For this to happen Modernising the agriculture sector and making it more
productive is the key. Henceforth, emphasis should be On the need for scientific methods for farming to increase productivity like
Research in the field of agriculture to determine the health of soil, quality of
seeds, water quantity, amount of fertilizers etc.
Training youth in soil testing, this would also lead to job creation.
Water conservation techniques like micro-irrigation, drip irrigation, water-shed
management etc.
Other Measures:
Recently, the Government of India (GOI) has set-up Indian Agriculture Research
Institute (IARI)in Jharkhand, which would achieve inclusive agricultural growth
through Integrated Farming Systems (IFS) in the region. The institute will attract the
cream of post-graduate and doctoral students from all over India and abroad to
conduct region-specific research
Focus on Pulses production and high-value crops, like Chawlas baby corn, certain
village can be dedicated to sowing lentils and oilseeds.
A long and inefficient supply chain means that the average farmer receives less than
a fifth of the price the consumer pays, as per the World Bank study report. Hence,
steps to increase the efficiency of the supply chain and market linkages should be
looked into.
Background:
What do you understand by the term Green revolution?
The term "Green Revolution" basically applies to successful agricultural experiments in
many Third World countries. It was first introduced in India during period from 1967 to
1978 to achieve food self-sufficiency.
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There were three basic elements in the method of the Green Revolution
1. expansion of cultivable areas
2. two-crop seasons per year instead of one-crop season per year
3. using High-yielding variety (HYV) seeds rice , wheat (especially K68 variety) and
also millet and corn; increased use of irrigation, pesticides and fertilizers.
Trace the initial development of agriculture in India with emphasis on launch of

Green Revolution.
Do you think Green Revolution actually brought the revolution, it was meant for?
What were the impacts of first Green Revolution on Indian agriculture?
Look for other initiatives like Blue Revolution, Pink Revolution etc and prepare a
short analysis and impact of them.
NGOs foreign funds and a trust deficit
Recently, the provision of Foreign Contributions Regulation Act has been used to cut
funding for some of the NGOs. Some provisions of the FCRA act regulate the foreign
funding to NGOs. The government has also rightly cancelled licenses of 9000 NGOs
as they havent submitted their accounts.
Why Government did this?
The reasons given by the government is that the funding is detrimental to

the national interest, economic, strategic interest or likely to affect public
interest in general.
Is there any discrimination only against foreign funding to NGO?

Views of IASbaba and Analysis
If we look at the ground realities and facts, the picture is a bit shady. There are a
total of 22,702 NGOs registered to receive foreign funding. In 2011-12 the total
funding received was Rs11, 546 Crore of which only 6% was used for religious
activities and another 6% for lobbying, advocacy, awareness generation etc which
is negligible. There is discrimination only against foreign funds and what if domestic
funds are used for the same purposes?
Secondly, the government receives funds from agencies like World Bank, UN etc
which are not allowed to contribute through FCRA. In 2013-14 the World Bank Group
itself contributed Rs 3.22 lakh crore towards India. Next is the FDI which India
receives which was to the tune of 1.76lakh crore in 2014-15.
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Thirdly, the Supreme Court noted that there were few political parties receiving
foreign funds which are otherwise barred from receiving foreign funds but no action
was taken on them.
Fourthly, the political parties themselves were not compliant to the orders of CIC on
disclosure norms.
As seen above there is undue discrimination against some foreign funded NGOs
which are spending major portions of their funds in education, health, rural
development etc. Organization like Green Peace was unequivocally raising its voice
against unsustainable development activities critically affecting environment and
local people. But they were banned.
Also unlike in the western democracies there is a clamp down on certain NGOs. Are
we moving towards a free market economy with totalitarian controls like in few
communist countries is the question.
All agencies including the NGOs need to be accountable to the law of the land and in
punishing a few for wrong doing, the ones abiding by the law must not be penalized.
The main issue to be addressed is the trust deficit between the govt and the civil
society organizations whose definitions of development may vary.
Discuss the role of NGOs in healthy development of democratic country like India.
India will not reach to the levels of developed nations if a proper balance is not
maintained between Government and NGOs. Do you agree?
Suppose you are a District Administrator of an area where an NGO is doing great
ground work for the development of rural health and education sector. Some high
political class people foul played against the NGO and government planned to ban it.
You were informed about the same but being the administrator of the area, you
know about their honest work for the local populace. How will you handle this and
stop the conspiracy against the NGO?
One Rank One Pension (OROP): exclusivity key to preventing legal resources
The retired personnel from Central Armed Police forces (CAPF) and Central Para
Military Forces (CPMF) have raised the demand for One Rank One Pension (OROP) in
line with the plans for Ex-servicemen.
To prevent legal challenges in future, the Defence Ministry has stated that OROP
would be made exclusive for Service personnel by classifying it as military pension.
The essential criterion is to clearly define it as different from civilian pension.
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What is OROP?
One Rank, One Pension(OROP), or same pension, for same rank, for same length of
service, irrespective of the date of retirement.
Example, a soldier who has retired in 2010 would get the same amount of pension as
the one (soldier) who has retired in 2014.
A model for India - Section 377 of the Indian Penal Code
The Supreme Courts December 2013 judgment upholding Section 377 of the Indian
Penal Code, which seeks to punish carnal intercourse against the order of nature,
continues to hold the field.
The pious observation by the two-judge Bench that it was up to Parliament to decide
whether to retain, amend or delete the section has not been acted upon by the
political leadership.
Why does not mean much for

LGBT rights in India?
In India, gay marriage is

a distant dream since
our own Supreme Court
had ruled on December
11, 2013 , that Section
377 which criminalises
homosexual acts was still
legal.
The Supreme Court of
India said courts are not
the
appropriate
authority to strike down
Section 377 and it is the Parliament which has to legislate upon the matter.
An earlier judgement by the Delhi High Court had deemed Section 377 illegal, giving
hope to the LGBT community in India.
What is the US stand on LGBT?
The US Supreme Court ruled that right to marriage was a Constitutional Right and
that same-sex marriage was a part of this. Celebrating pride on Facebook might be a
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way to show support. But in India being gay is hardly something you can announce
with pride.
Is it the time for the debate on (Section) 377 to reflect what the Constitution
guarantees for every Indian which is equality?
Do India need to consider the abolishing of Section 377 of the Indian Penal Code that
criminalises gay liaisons and the legalisation of same-sex marriages?
Controversy over Land Bill
The Joint Committee was formed to examine the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement (Second
Amendment) Bill, 2015.
After Recent meeting, the committee has now recorded a total of 52 depositions and
is likely to begin clause by clause discussion on the amendments in next the meeting,
sources said.
Former BJP general secretary told that the RSS is dejected and its
disenchantment is finding expression in the opposition, for instance, to the
controversial Land Bill with Sangh-affiliates such as the Swadeshi JagranManch,
BharatiyaKisanManch, etc. speaking out against it.
Why is the Land bill in New Controversy?
The economic wing of the RSS, said that the re-promulgated Bill contains several
detestable and unacceptable sections, even after incorporation of several
amendments that have been included in the second amendment under intense
public pressure.
It said that cultivable and arable land is under serious onslaught from multi-nationals
and corporates, who with the help of governments are accumulating and taking over
more arable land from the poor.
What are the new Amendments that are being demanded?
SJM has demanded that the government should re-introduce the clauses of social
impact assessment and reinstate the land acquisition consent to 80% for private
projects and 70% for public-private partnerships.
It has also asked the government to issue a white paper about acquisition of land by
governments since 1947 stating its present status, unused land lying with
government and also with big industries.
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1. Is it necessary to re-introduce the clauses of social impact assessment and reinstate
the land acquisition consent?
2. What are the features of Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (Second Amendment) Bill, 2015?
Building India 2.0
What is the unexceptionable set of goals under Building India 2.0?
One, it aims to build infrastructure and provide the internet as a utility to every
citizen.
Two, it promises to improve service delivery by making services available online.
And three, it seeks to enable people to access the internet by building digital literacy.
What are the Initiatives under Building India 2.0?
Digital India claim and programme following on the heels of Make in India and
Skill India is three-pronged.
Among the new initiatives aimed at reducing paperwork is the Digital Locker, which
allows users to upload and store documents that can be shared with government
agencies to expedite official applications for, say, marriage licences or LPG
connections.
Aadhaar card holders will be able to authenticate documents using eSign, a digital
signature application.
Another portal is eHospital, which will let citizens avail health services online, also
issuing a unique health identification number piggybacked to Aadhaar.
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What is the Role and status of Internet in Building India 2.0?
As a utility, the internet has tangible value. It could reduce leakages in welfare
schemes and provide huge economic benefits by enabling better decision-making
with improved access to information and markets.
Yet, there are several challenges, not least of them are bringing the digitally
unempowered majority online.
Despite years of plans and schemes, attempts to connect remote rural areas to the
internet have faltered.
What are the Drawbacks of Building India 2.0?
Only 9 per cent of those who live in rural areas have access to the internet,
compared to 64 per cent of those who live in cities.
There is the lack of a legal framework to address concerns over privacy and data
protection.
India also lacks a privacy law, without which initiatives like Digital Locker and
eHospital are open to flagrant misuse by the state.
Finally, getting stakeholders to buy in could be a trial. As other programmes
launched with much fanfare, like Swachh Bharat, have shown, it is difficult to sustain
the initial impetus if surrounding structures are not sufficiently built up.

1. What is national optical fibre network project?
2. What measures should be taken to address concerns about privacy and data
protection?
3. Write a note on digitally underpowered majority online.
Security agencies, not politicians, to decide over AFSPA
The AFSPA is applicable on Jammu and Kashmir and some north eastern states. Civil
society organisations have been seeking its revocation alleging misuse as it gives
sweeping powers to security forces.
Revocation of the AFSPA is part of the 'Agenda of Alliance the common minimum
programme on which the PDP formed government with the BJP in Jammu and
Kashmir.
"While both parties have historically held a different view on the AFSPA and the
need for it in the State at present, as part of the agenda for governance of this
alliance, the coalition government will examine the need for de-notifying disturbed
areas'.
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Who should decide on the withdrawal of AFSPA?
Security agencies should have the last word on revocation of AFSPA in Jammu and
Kashmir instead of any political functionary hat is my consistent point of view that
this is a subject where the last word should come from the security agencies.
Any political functionary on any of the highest post can provide suggestions on the
issue but cannot be a deciding factor-said Minister of State in the PMO
Did India Fail Its Own Constitution in Kashmir?
India has neglected international obligations and its own constitution by ignoring
human rights violations allegedly carried out in the name of national security in
Jammu and Kashmir State an Amnesty International report released says.
The report says that no member of the security forces deployed in the northernmost state over the past 25 years of militancy in the region has been tried for human
rights violations in a civilian court.
An absence of accountability has ensured that security force personnel continue to
operate in a manner that facilitates serious human rights violations, the group says
in the report
Discuss the Flaws in Controversial Armed Forces (Jammu and Kashmir) Special
Powers Act, 1990.
Who should decide over the revoking of the AFSPA?
Did emergency law fuel the army abuses in Indian Kashmir?
National Agriculture Market
The Cabinet on gave its nod for the setting up of a National Agriculture Market which
would require a single licence for market operations, single point of levy of market
fee and electronic auction as a mode of price discovery.
The single licence will be valid for all farm markets across each State.
What is National Agriculture Market?
The Online national agriculture market will provide more options to farmers for
selling their produce.
Move is expected to give choice to farmers to sell the farm produce both in physical
mandis or online platform.
The free access to sell via online trade is likely to boost their incomes and improve
availability, moderating price rise.
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What is the Need for National Agriculture Market?
Currently, farmers are restricted to selling their produce at mandis or market

committees that charge various taxes on producers.
Sources said an online platform would be set up wherein farmers will be able to sell
and buy fruits, vegetables and other produce from across the country.
An agency would be set up to oversee online trading and to ensure that transactions
take place smoothly.
It will also focus on creating godowns and facilitating transportation of the farm
produce after the online trade, sources added.
How will the National Agriculture Market contribute to the Minimum export
prices?
Will the national agriculture market benefit the rural farmers?
Write a note on Essential Commodities Act (ECA), 1955.
A CTO for bridging the gap between governance and technology
Digital India can be the prime mover to making a reality of this governments
promise of minimum government, maximum governance.
Such a transformation requires technology to be firmly embedded into government,
something that the Digital India project lists as one of its foremost objectives.
How to Bridge the Gap?

Embedding technology into governance processes will do three things.
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One, transform government and make it more transparent and efficient;

Two, transform the lives of citizens, especially those at the bottom of proverbial
pyramid;
Three, make our economy more efficient and competitive.
Is this a new paradigm?
E-governance and technology in government is not a new idea.

This has evolved over years from replacing typewriters with PCs and the process of
computerisation to a more complex, multi-functional, departmentwide application
of the concept.
However, despite thousands of crores of rupees spent in the last decade in the name
of e-governance and efficiency, there has been little change in government as a
consequence of these investments.
Why India Needs CTO?
More mature democracies such as the US have beaten India in recognising the need
for a chief technology officer (CTO).
President Barack Obama made this appointment a centrepoint of his 2007 electoral
campaign.
Obama conceptualised the role of the CTO to be someone that would focus on
transparency and ensure that each arm of the federal government makes its
records open and accessible as the e-Government Act requires.
India needs to take a similar approach and use this as a precedent while rolling out
Digital India.
What should be the focus of CTO?

The focus of the CTO should be to design an architecture that achieves three broad goals:
1) Enable easy, transparent access for citizens and business to and from government,
2) enable government departments to operate transparently and efficiently,
3) Connect various departments to ensure that government and policymakers operate in a
seamless, transparent, responsive and data-driven manner.
In what way India can make use of the Chief Technology officer?
Do Embedding technology in Real time Governance and policy action be accurate?
Write a note on challenges that would be confronted by the CTO.
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Aadhaar data, NPR to be merged for National IDs
The National Population Register, envisioned during the Atal Behari Vajpayee
government in 2002, is all set to
be the final word on the identity
of Indian citizens.
The Union home ministry is now

fast-tracking the merger of
Aadhaar with NPR, which it
believes will be the final
authentic national database on
the basis of which National
Identity Cards for all citizens
above 18 can be issued.
Why is National ID Necessary?
From weeding out wrong persons holding ration cards and LPG subsidy to illegal
migrants and terror suspects, the biometric details and iris images along with
personal data will be readily available.
Those with Aadhaar, will not have to go for a separate entry in NPR.
How is it related to security of the country?
So far, 75 crore people have been enrolled in the NPR, and the home ministry hopes
to complete the entire enrolment process by March 2016.
The MHA is looking at NPR data to tackle rising internal security threats from
organised crime, money-laundering, terrorism and illegal migration.
What are the salient Features of National Identification Authority of India Bill?
Write a note on National Population Register and explain its Advantages
Dramatic drop in number of Underfed(Malnourished) children: UNICEF

Despite remarkable improvements in child nutrition over the last decade in India, Some
States, Such as Gujarat, Have struggled to reduce the numbers of underweight and stunted
children.
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What RSOC says?
Tamil Nadu, West Bengal,

Uttarakhand and Tripura are
the only States which have
reduced the proportion of
underweight adolescent girls
according to the findings of
the Rapid Survey on Children
(RSOC), a nation-wide sample
survey of over one lakh
households conducted by the
UNICEF.
Almost all States have
performed poorly in reducing
the number of underweight
adolescent girls.
What is the status of States

according to UNICEF?
Uttar Pradesh still has the highest levels of child stunting, with over 50 per cent of
the children under the age of five underdeveloped, meaning that their height is more
than two standard deviations less than the expected height for their age for that
population.
Jharkhand, meanwhile, has the highest number of underweight children under the
age of five, meaning their weight for age is more than two standard deviations less
than what would be expected.
Kerala remains the best performing State in the number of child stunting cases,
while Manipur and Mizoram have the lowest numbers of underweight children.
Delhi and Mizoram reduced child stunting at the fastest rate between 2004-05
when the last official National Family Health Survey (NFHS-3) was conducted and
2013-14.
While Madhya Pradesh and Bihar still have high levels of underweight children, both
States reduced these numbers at fast rates along with Himachal Pradesh.
Why there is a sudden child stunt drop in India In spite of many welfare schemes?
Why only some States have made remarkable progress in battling child
malnourishment, others have made little progress despite a decade of high growth?
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India on track in cutting poverty: MDG report

India has halved its incidence of extreme poverty, from 49.4% in 1994 to 24.7% in 2011
ahead of the deadline of 2015 set by the United Nations, shows the Millennium
Development Goals (MDG) Report 2015.
Comparing with our Neighbours?
The report set the limit for extreme poverty as those living on $1.25 or less a day.
However, this reduction in poverty is still less than that achieved by several of Indias
poorer neighbours.
Pakistan, Nepal and Bangladesh have each outstripped India in poverty reduction
over comparable time periods.
Is India Really on Track?
While the report says India is on-track to achieving the hunger targets, it still remains
home to one quarter of the worlds undernourished population, over a third of the
worlds underweight children, and nearly a third of the worlds food-insecure people.
The report is especially important because it marks the deadline by which the MDG
should have been achieved.
India has already achieved 11 out of 22 parameters in the report spanning issues like
education, poverty, health, and education and is on track to achieve one more by
the end of 2015.
Write a note on Millennium Development Goals (MDG).

Why India still remains as home to one quarter of the worlds undernourished
population?
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Is NJAC a superior alternative compared to the present Collegium system?
The much debated National Judicial Appointments Commission Act is again in news,
on the ground that it would destroy judicial independence and thus violate the basic
structure of the Constitution.
Some experts argue that collegium system was good but its implementation was
bad. However there are more pros than cons to the new system of selection of
Judges.
Pro NJAC:
The new judicial appointments act is superior alternative to the collegium system
since it raises the consultative process in the selection of judges. The selection of the
Judges made jointly by all the constitutional functionaries will help to transcend the
concept of primacy between them.
This integrated participatory consultative process, provides for qualitatively better
and more broad-based consultation than the consultation among a few judges as per
the collegium system.
Though there are constitutional functionaries other than the Judges, it does not take
away the primacy of the Chief Justice. The judiciary is represented by the Chief
Justice and two senior-most judges who have a powerful voice in this body. Their
knowledge and expertise are enough to influence the other members and bring
them around to their view. If the judges do not approve of a certain name, they can
veto it. Once a proposal is vetoed, it cannot be revived.
Way forward:
There is no question of primacy, be it the executive or legislature or judiciary.
Judicial independence is not an end in itself. It is also a means to realise a higher
objective, namely to find competent, independent-minded judges for Indias higher
judiciary. It is not the means to select judges arbitrarily and without any sense of
accountability using the power of primacy. The true merit of a judge will become
known only through the process of wider consultation. And the new enactment has
provided for such consultation.
Background:
Three Judges Cases
The Supreme Court of India's collegium system, which appoints judges to the nation's
constitutional courts, has its genesis in, and continued basis resting on, three of its own
judgments which are collectively known as the Three Judges Cases.
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S. P. Gupta v. Union of India 1981 (also known as the Judges' Transfer case)
Supreme Court Advocates-on Record Association vs Union of India - 1993
In re Special Reference 1 of 1998
Over the course of the three cases, the court evolved the principle of judicial independence
to mean that no other branch of the state - including the legislature and the executive would have any say in the appointment of judges.
The court then created the collegium system, which has been in use since the judgment in
the Second Judges Case was issued in 1993. There is no mention of the collegium either in
the original Constitution of India or in successive amendments.
The Third Judges Case of 1998 is not a case but an opinion delivered by the Supreme Court
of India responding to a question of law regarding the collegium system, raised by then
President of India K. R. Narayanan, in July 1998 under his constitutional powers.
Does NJAC erode the primacy of Judiciary? What are the other constitutional
provisions safeguarding the Independency of Judiciary?
Relate the concept of Checks & balance to the ongoing issue.
What are the de-merits of Collegium system?
Despite bar, private players continue in nutrition scheme
Womens self-help groups,

village panchayats and
MahilaMandals
are
supposed to be the agents
of change in tackling
malnutrition.
To this end, the Supreme
Court has banned private
players in the Integrated
Child Development Scheme
(ICDS) aimed at tackling
malnutrition among infants
and improving the health
standards of pregnant women.
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Did Ministry misinterpret court orders?
The Women and Child Development Ministry is still not averse to having private
contractors in the Supplementary Nutrition Programme for providing home rations
to vulnerable infants in the age group of six months to three years and pregnant and
nursing mothers.
If its circular dated September 26, 2014, to the States is any indication, the Ministry
is not averse to roping in private contractors.
What is the Raising Concern?
Involvement of commercial players in the procurement and supply chain of providing

food to children raises concern.
An e-mail sent to the Ministry went unanswered at the time of writing this report.
Roughly a little over Rs. 8,000 crore is earmarked for the programme in the Union
Budget.
Barring a few States, notably Kerala and Orissa, the rest continue to rely on
contractors.
What is the aim of Integrated Child Development Scheme (ICDS)?

Do you think PPP will enhance effectiveness in the implementation of welfare
schemes?
Write a note on Rapid survey n Children and child Malnutrition.
Corporate espionage: Government issues stringent guidelines to check information leak
To plug information leak in the wake of corporate espionage case, the Centre has
issued stringent guidelines for its departments, making security screening of
personnel outsourced from elsewhere mandatory and avoiding doing confidential
work on computers with net connection.
What is Corporate Espionage case about?

The sensational corporate espionage scandal is about the leakage of classified documents,
including an input for upcoming finance minister's budget speech.
What created demand for privileged information?
The documents were generally used by the corporate houses to gain advance
information and make suitable changes in their business or legal strategy.
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These were also leaked to the media, if the corporate houses felt the need, to hit out
at a rival by manipulating the policy environment.
What are the Recent Guidelines?
External memory devices must not be connected to the USB drives on these
computers
And that misuse of photocopying machines should be prevented.
The ministries and departments will ensure that confidential work is not done on
computers connected to the internet.
CCTV cameras can also be deployed judiciously.
Are competitive intelligence and corporate espionage related to each other?

Write a note on the Ethics surrounding the Corporate Espionage Case.
North East: Inner line Permit

The campaign for the Inner Line Permit in
Manipur is threatening to become a turmoil
with fresh protests breaking out in Imphal.
What is Inner line Permit?
Inner Line Permit (ILP) is an official

travel document issued by the
Government of India to allow inward
travel of an Indian citizen into a
protected/restricted area for a limited
period.
It is obligatory for Indian citizens from outside those states to obtain permit for
entering into the protected state.
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Which States require ILP?
ILP's valid for tourism purposes are granted as a matter of routine.

The states which require the permit are Arunachal Pradesh, Nagaland, Mizoram, and
some connecting roads of these states.
Why India needs ILP?
The document is an effort by the government to regulate movement to certain areas

located near the international border of India.
Despite the fact that the ILP was originally created by the British to safeguard their
commercial interests, it continues to be used in India, officially to protect tribal
cultures in northeastern India.
Write a note on Different Kinds of ILP.

Why the people of Manipur are demanding the ILP?
What are the Advantages and Implications of ILP to India?
Manipurs dilemma
Inner Line Permits regulate the entry of non-domicile citizens into a restricted
region. Those demanding it want to restrict and regulate the influx of outsiders and
internal migrants to save the culture, tradition, identity and demographic structure
of the indigenous people of the state.
Where did it all begin?
The Inner Line Permit regime, introduced by the British to protect tribal populations
from encroachment into their areas, but later used to advance commercial interests
involves a system akin to the issue of visas to Indian citizens to enter a State of the
Union.
The first demand for restoration of the ILP in Manipur was made in Parliament in
1980, and on several occasions subsequently.
What are the Current Protests?
The current phase of protests is being spearheaded by the Joint Committee on Inner
Line Permit System (JCILPS), an umbrella organisation of 30 civil bodies in Manipur,
including all valley (that is, Meitei) student organisations.
The JCILPS has no political affiliation, and its volunteers are mostly students and
student leaders.
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It is primarily Meitei driven (Upper Class). Manipuri tribals have largely kept away
from the agitation, which has been concentrated in the Imphal valley.
What is the Earlier Bill Passed with this regards?
The Regulation of Visitors, Tenants and Migrant Workers Bill made it mandatory for
non-Manipuris to register themselves with the government for reasons of their
safety and security and for the maintenance of public order upon entering the
state.
The Bill fulfilled a longstanding demand from powerful groups in the state, but failed
to satisfy the hardliners.
Is the Issue Complex?
The demand, though, is more legitimately a consequence of the hill-valley divide in

the State and the congestion in the valley rather than any huge influx of outsiders.
The situation is thus complex but not out-of-control.
But the State should ensure that alien-investor-driven development does not disrobe
its people.
After all, they are supposed to benefit from the growth generated out of its own
domestic resources.
IAS BABAs View
The tribal people of Manipur have their reason to feel skeptical about the Inner Line
Permit System movement.
The current struggle to protect local interests and its land is far removed from
reality.
Failure to realise this can exclude tribal people further and can be counterproductive
for Manipur.
Can the Union afford to introduce a quasi-visa to its citizens to enter one State from
another State?
Why is there a wide range of opposition to Manipur Regulation of Visitors, Tenant
and Migrant Workers Bill, 2015?
Interlinking of Rivers: Challenges
Inter-linking the great rivers of India is a dream that has been around for a while. The
idea was first proposed in 1970s and revived again in 2003 but nothing concrete has
been done till date.
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Advantages of this project:
Problems related to flood control, irrigation, limiting droughts and boosting farm
outputcan be sorted out by linking the countrys rivers.
Potential benefits to transport infrastructure through navigation, as well as to
broadening income sources in rural areas through fish farming.
But, what about the feasibility of the Project ?
A north to south inter-linking of rivers is physically not possible. The barrier imposed
by the Vindhya mountains makes it expensive to lift water along the north and south
axis. It is also unnecessary.
Henceforth, the river-water linking plan - one for peninsular India and the other for
linking rivers from the east to the north is an ideal solution.
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Other issues:
River inter-linking is an expensive business from building the link canals to the
monitoring and maintenance infrastructure. Implementation of the project not only
needs a huge financial capital but also political support, both are scarce
commodities as of now.
Another important issue is building consensus among states and Land acquisition.
Once the project is implemented it would lead to large scale displacement of people
and animals. Hence appropriate rehabilitation measures should be taken by the
Government.
A careful scientific assessment of the project and its impact on the environment, is
necessary in case of a project of this magnitude especially with regard to
Biodiversity, aqualife.
Background:
The Indian Rivers Inter-link aims to link India's rivers by a network of reservoirs and
canals and so reduce persistent floods in some parts and water shortages in other
parts of India.
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The Inter-link project has been split into three parts: a northern Himalayan rivers
inter-link component, a southern Peninsular component and starting 2005, an
intrastate rivers linking component.
The project is being managed by India's National Water Development Agency
(NWDA), under its Ministry of Water Resources.
National Water Development Agency (NWDA):
National Water Development Agency (NWDA) was set up in July, 1982 as

Autonomous Society under the Societies Registration Act, 1860, to carry out the
water balance and other studies on a scientific and realistic basis for optimum
utilisation of Water Resources of the Peninsular rivers system for preparation of
feasibility reports and thus to give concrete shape to Peninsular Rivers Development
Component of National Perspective. In 1990, NWDA was also entrusted with the
task of Himalayan Rivers Development Component of National Perspectives.
What can be the practical solutions to the above mentioned issues, regarding
interlinking of rivers? (Or) How effectively can this project can be implemented?
Impact of Interlinking of rivers on all the stakeholders involved from the Central
Government, State Governments, common man to the environment?
What is your take on this project? Yes/No. Justify.
Criminal defamation- A pernicious law
The United Nations Special Rapporteur on freedom of expression, the Human Rights
Committee of the International Covenant on Civil and Political Rights and other
international bodies have called upon states to abolish criminal defamation,
recognizing that it intimidates citizens and dissuades them from exposing
wrongdoing.
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What is there in the Indian Penal Code?
The grounds cited by the Centre now to justify the continuance of Sections 499 and
500 of the IPC, which deal with defamation and prescribe a maximum jail term of
two years, are specious
That in India, citizens are unlikely to have enough liquidity to pay damages for civil
defamation;
That online defamation in the Internet age can be effectively countered only by
making it a criminal offence, and that the law is part of the states compelling
interest to protect the dignity and reputation of citizens.
What is the ugly side of Criminal defamation?
It fails to see is that the main feature of criminal defamation is its potential for
harassment.
It is a tool that can be easily invoked and that enables allegedly defamed persons to
drag anyone to courts across the country.
Criminal defamation has a pernicious effect on society.
How is the state using this?
The state uses it as a means to coerce the media and political opponents into
adopting self-censorship and unwarranted self-restraint; groups or sections claiming
to have been hurt or insulted, abuse the process by initiating multiple proceedings in
different places; and, more importantly, the protracted process itself is a
punishment.
Write a note on how Defamation works in a democratic country like India.

Should Indian government come out against the criminal defamation law?
Is criminal defamation invoked to stifle free speech?
India can be worlds HR capital: PM
Prime Minister Narendra Modi has pitched for making India a human resource
capital of the world like China has become a manufacturing factory as he launched
a number of schemes to train 40 crore people in various skills by 2022 as part of war
against poverty.
Skill development is the shared responsibility of
the
key stakeholders
viz.
Government, the entire spectrum of corporate sector, community based
organizations, those outstanding, highly qualified and dedicated individuals who
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have
been
working
in
the
skilling
and
entrepreneurship space
for many years, industry and trade organisations and other stakeholders
India has the potential to provide a workforce of about 4-5 crore to the world if the
capabilities of the countrymen are honed through proper and dynamic skill training.
The ambitious schemes launched by the PM were National Skill Development
Mission, the National Policy for Skill Development and Entrepreneurship 2015,
Pradhan Mantri Kaushal Vikas Yojana and Skill Loan scheme on World Youth Skill
Day.
More about National Skill Development Mission

The National Skill Development Mission consists of following three institutions:
1. The Prime Ministers National Council on Skill Development (NCSD) -under the
chairmanship of PM, for policy direction and review of spectrum of skill development
efforts in country.
2. National Skill Development Coordination Board (NSDCB)-under the chairmanship of
Dy. Chairman Planning Commission to enumerate strategies to implement the
decisions of PMs council.
3. National Skill Development Corporation (NSDC), a non-profit company under the
Companies Act, 1956. The corporation is being funded by trust National Skill
Development Fund
Objective:
The objective of NSDC is to skill/ upskill 150 million people in India including persons
from rural areas by the year 2022, mainly by fostering private sector initiatives in
skill development programmes and providing viability gap funding.
NSDC would cover skills from the organized as well as from the un-organized sector.
National Policy for Skill Development and Entrepreneurship 2015

National Policy for Skill Development and Entrepreneurship 2015 supersedes the
policy of 2009.
Objective:
The objective will be to meet the challenge of skilling at scale with speed and
standard (quality). It will aim to provide an umbrella framework to all skilling
activities being carried out within the country, to align them to common standards
and link the skilling with demand centres.
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In addition to laying down the objectives and expected outcomes, the effort will also
be to identify the various institutional frameworks which can act as the vehicle to
reach the expected outcomes.
The policy links skills development to improved employability and productivity in
paving the way forward for inclusive growth in the country.
Pradhan Mantri Kaushal Vikas Yojana
Pradhan Mantri Kaushal Vikas Yojana is a unique initiative by the Government of

India that aims to offer 24 lakh Indian youth meaningful, industry relevant, skill
based training making every skilled youth employable.
Under this scheme, the trainees will be offered a financial reward and a government
certification on successful completion of training and assessment, which will help
them in securing a job for a better future.
Skill Loan scheme
Under the scheme loans ranging from Rs 5,000-1.5 lakhs will be made available to 34
lakh youth of India seeking to attend skill development programmes over the next
five years.
Courtesy- http://pib.nic.in/
Do you think India can become a Human Resource Capital?

In the present scenario, what are the challenges faced by India in the area of Skill
Development? How can we overcome these challenges?
Can the same approach be applied to both organized and unorganized sector for Skill
Development?
Affordability of Drugs: 39 more Drugs under Price Control
India has extended price control on 39 more medicines used to treat diabetes,
infections, digestive disorders and pain among others, in an effort to make them
affordable.
Some of the medicines, which have been put under price control, include
Ciprofloxacin Hydrochloride, Cefotaxime, Paracetamol, Domperidone and Metformin
+ Glime. Already, 652 medicines are under price control.
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Why should the price of Drugs be under control?

To ensure equitable distribution and availability of medicines at affordable prices,
especially for the low income groups and the poor.
For instance, in a nation like India with such high prevalence of diabetes and
cardiovascular diseases (CVD), the move of the National Pharmaceutical Pricing
Authority (NPPA) is of great significance 30-40% reduction in the price of the
expensive anti-cancer, anti-asthma, anti-tuberculosis and other such drugs, would be
of great importance to the patients.
How does Price Control happen in India?
In respect of the price control of drugs, the Central government acts through
the National Pharmaceutical Pricing Authority (NPPA), a body that was set up in
1997 especially for this purpose.
The central government publishes a National List of Essential Medicine (NLEM) from
time to time, the latest one being in 2011 which is also included in the Drug (Pricing
Control) Order, 2013 (DPCO). This list contains a list of 348 medicines, which ought
to not be sold at the price beyond what is fixed by the central government.
Additionally, paragraph 19 of the DPCO provides that in extraordinary
circumstances, and in public interest, the government can fix the prices of the nonessential drugs as well.
More about National List of Essential Medicine (NLEM)
The NLEM caters to the primary healthcare needs of the country. Safety, efficacy and
cost-effectiveness are its core concerns. It ensures availability of medicines in
adequate amount and appropriate dosage forms with assured quality at an
affordable price.
It is one of the key instruments for balanced healthcare delivery system of a country.
The NLEM 2011 has 348 medicines from 27 therapeutic categories such as
cardiovascular, anti-cancer, antineoplastic, immunological, anti-infective,
ophthalmological preparations, diuretics, anti-allergic, etc. Medicines have also been
categorised on the basis of essentiality at different levels of healthcare.
Is the Price control ineffective in improving the access to drugs?
Is this process sustainable in the long-run or is can it be counter-productive?
How much is the Indian government spending on Healthcare annually? Can the
present expenditure made by the govt. create a affordable healthcare to all.
What do you think about the idea of Universal Healthcare in India? Both pros and
cons.
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Net neutrality: DoT panel backs regulating Skype, WhatsApp calls
A telecom department panel (headed by headed by K. Bhargava) on net neutrality

has recommended that local voice calls made using applications such as Skype and
WhatsApp be regulated, favouring arguments made by the countrys telecom
operators that sought a level playing field.
But those providing messaging and international calling services over the Internet be
kept free from licensing requirements.
Net neutrality advocates criticized the move as protectionist and in violation of the
idea of a free and open Internet.
NOTE: For more information, please check IASbabas Monthly Magazine- APRIL 2015 . We
have covered the entire issue regarding Net Neutrality comprehensively.
No Indian educational institution in global list of top 300 universities
There may be several top class universities in the country but not even a single institute
from India figures in the top 300 overall ranks in the global rankings released recently by
Centre for World University Rankings.
Why is there no room for an Indian university in the top global rankings?
Indias inability to push even one single university to the ranks of the top 300
universities in the World Rankings released is yet another reminder of how far we
are away from building centres of educational excellence.
But what makes the hurt more galling is that other Bric nations like China, Russia and
Brazil could at least make their presence felt in this marquee list in which we still
seem to be miles away.
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What is the justification given by IIT Chairman?
Global ranking agencies include universities started 500-600 years ago abroad, which
have billions of dollars as their resource and endowments while the Indian
counterparts have no big funds.
It is not right to compare foreign universities which neither have any government
control nor any legislation, with the Indian ones that are under government control
and dont have any big autonomy
IAS BABAs View
It should be a cause for serious concern that a country of India's size, which is
growing in economic strength and has a great intellectual history, still does not have
a top-300 entrant.
It does not seem to be making enough progress up the rankings.
The world rankings are extremely competitive, as many countries put serious
resources into improving the global profile and performance of universities, as part
of their economic growth plans; India needs to ensure it does not fall far behind.
Is this a bad scenario for a nation trying to reinvent itself as a new knowledge hub
despite being stuck at the fringes of the higher education scene?
What is your stand on why is there no room for an Indian university in the top global
rankings?
Dont take away our autonomy: IIMs

Recently government has introduced a draft on Institutes of Management Bill, 2015. IIM Bill
2015 has been put under discussion and is going to take the shape of IIM Act 2015 after nod
from Parliament.
What is the bone of contention?
Clause 35 and 36 that rob the board of governors of its powers

Board of governors will need ministry approval before passing any regulation
Changes in fees, remuneration, infrastructure, scholarships, etc, will need ministry
approval
A visitor as a de facto head of the institute to be appointed through the ministry
Appointments of chairpersons and directors will need ministry nod
Converting Diploma into Degree
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Points against the Bill
Public educational institutes as compared to private (autonomous) institutions like

IITs and IIMs have performed badly and stand nowhere in global parameters and
standards. Whereas IITs and IIMs are the only institutions which have created a
mark at global level. Diluting their autonomy will be detrimental to their
management system creating continuous tussle between government and institution
The Bill seeks to dilute the powers of Board of governors and seeking approvals for
financial, regulatory and academic issues. This may suppress the talented workforce
in the management board as evident from enough interference from government
domain.
Indian Institute of Management has placed India at world level through its quality
even without government interference. The dilution of powers will stagnate their
growth.
It is the step towards centralization of power that is not good for growing
institutions.
Points in favour of the Bill
In 50 years of establishment, Indian institutes have not fared well at global level.
They are even far from their Asian counterparts such as China and others.
Governmental regulation will address the inefficient management system through
constant check and financial help.
For a country which has had a history of management education of over six decades,
it is unfortunate that no Indian business school is anywhere near the top 10 global
institutions measured by various rankings. The China Europe International Business
School or CEIBS, set up 20 years ago in China, beat the 53-year old Indian Institute of
Ahmedabad (IIM-A) by a long margin to feature at the 11th place in the Financial
Times' Global MBA Ranking 2015.
The regulatory measures of government include fee structure that is a real challenge
for medium class students. The fees of these institutes are not something a middle
class can manage. With the autonomy they will seldom ease it for the larger good of
younger generation aspiring to be graduated from these institutions.
Indian institutes have performed badly in Research domain at global level. One
important reason is scarcity of funds and infrastructure. With governmental
regulation and proper funding, the prospects of growth in research and development
will be more.
IASbabas view
As far as the draft bill is concerned, everything seems okay except the length and
breadth of the word Regulation. Governments bill mentioned about regulation
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multiple times but its not explicitly elaborated. The opposition should be explained
about the extent of regulation clearly.
With the past performances of public institutions and their impact on global level, it
is less of an argument to say if governments regulation will bring Indian
Management institutions to the top. Ongoing tussle and opposition without proper
deliberation will only bring non-uniformity over the issue. There is need to discuss
the most contentious issues considering the views of Management Institutions. It is
for simple reason that they are the one who will run the institutions with their sheer
hard work and quality.
Government should not control the decision making process to a greater extent. It
will give way to constant tussle and consequently affect the academic processes.
Arguments in favour of more funding stands poor because government has not done
well enough as evident from reduction in budget allocation for educational
institutions.
UPSC in 2014 had asked a question on Autonomy of IITs and other institutions.
Prepare this issue from various dimensions.
Do you think the proposed bill if enacted will improve the performances of Indian
Management Institutes? Explain
Regulatory measures of Government should be limited and should not interfere with
the decision making process of Private Institutions? Prepare both pros and cons
Autonomy of Indian Universities
The fundamental disagreement in the clash of the titans, Amartya Sen and
PratapBhanu Mehta, appears to center on the question of whether political
interference in universities today is more egregious than in the past.
The Indian university has increasingly and exclusively become a source of
credentialisation for a society in which certification matters more than what is
learned.
Two current obsessions that of fake degrees and of 100 per cent marks in schoolleaving examinations are poignant symbols of this.
Should Indian Universities be made Autonomous?
There is an urgent need to seek a complete overhaul of the regulatory framework.

Universities in India need to be made more autonomous; they need freedom, in
every sense of the word, from both government and from regulatory bodies.
The agenda of universities needs to be established by the faculty and students,
keeping in mind the needs and aspirations of everyone in society.
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What are the Major concerns?
The Napoleonic model of the university as a department of state, with faculty

treated as (lesser) civil servants, has long thrived in India.
Centralisation and bureaucratisation have serious implications curricular and
pedagogical for universities.
Indeed, a major concern of the university community today is the clumsy attempt,
initiated by the last government and being energetically promoted today, to
standardise the curricula of the central universities, ostensibly to give students more
choice.
What are the most serious challenges that are being faced by universities?
Ironically, this so-called choice entails the sacrifice of diversity and greater control
through homogenisation.
This is certainly among the most serious challenges facing universities today, along
with the stifling of dissent, the packing of leadership positions with individuals whose
calling card is loyalty rather than academic credentials, and the pathetic attempts to
infiltrate the intellectual life of the academy armed with faith and myth rather than
objective standards of scientific achievement.
In the states, where the bulk of Indian universities are located, talk of nepotism,
cronyism, and even corruption in appointments from lectureships to vicechancellorships is commonplace.
What are the Reforms and Policy Initiatives that Indian Universities should consider?
First, there is an urgent need to recognise that not all universities need to be
engaged in the same manner on different aspects of institution building.
Second, taking inspiration from the Project 5-100 initiative, India could consider
empowering 50 of its top universities in every possible manner to seek global
excellence.
Third, there is an urgent need to seek a complete overhaul of the regulatory
framework.
Fourth, there is no doubt that world-class universities are built and nurtured with a
strong focus on research.
Fifth, it is important that we need to focus on internationalisation of faculty
members and students within Indian universities.
IAS BABAs View
In the end, what we have is a highly uneven and differentiated university system in
which there is little reflection and no consensus on what a university is for.
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There has to be a new imagination for Indian universities one which draws
inspiration from the past, but will also have to look to the future.
Transformational change needs to take place at every level of policymaking,
regulation and governance in higher education if Indian universities are serious
about seeking global excellence and achieving higher rankings.
Write a note on policymaking, regulation and governance in higher education of

Indian universities.
What inspiration can India take from the Project 5-100 initiative of Russia
Fixing food regulation : Maggi Controversy
The country's food regulator, the Food Safety and Standards Authority of India (FSSAI), has
come in for severe criticism since it banned Nestle India's Maggi noodles last month
following claims that excessive amounts of monosodium glutamate (MSG) had been found
in some samples.
What is the role of FSSAI?
The FSSAI has been established under Food Safety and Standards Act, 2006.
This act consolidates various acts & orders that have hitherto handled food related issues
in various Ministries and Departments.
FSSAI has been created for laying down science based standards for articles of food and to
regulate their manufacture, storage, distribution, sale and import to ensure availability of
safe and wholesome food for human consumption.
What is the new hope from FSSAI to resolve these issues?
The FSSAI has reportedly finalised about 12,000 standards for food ingredients and
additives which, it is claimed, are in line with the global safety and quality standards.
If so, once enforced, food companies may not need to seek product approvals if they
follow these standards.
The option of random sampling for quality assessment of the packaged products
would always be available to the FSSAI to ascertain compliance.
Hopefully the principles of minimum interference and global benchmarking will be
considered paramount.
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IAS BABAs View
Regardless of the merits and demerits of the specific case, the fact remains that
some of the adverse fallout of the regulator's actions cannot be overlooked.
Some 700 new food products are said to have been awaiting pre-launch approval
from the FSSAI for over a year because of the cumbersome and lengthy approval
procedures.
In addition, consignments of imported food products often remain stuck at the ports
for long for want of clearance by the FSSAI.
In many cases, permission is withheld on the flimsiest of grounds - because the
labelling of the packages does not conform to arbitrary norms specified by the FSSAI,
which differ from the widely accepted global standards.
Is the problem rooted in the Food Safety and Standards Act, 2006, which neither
defines "product approval" nor lays down any norms for this purpose?
Write a note on Monosodium glutamate(MSG)
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Explain how the transparent regulation and global standards can be Implemented in
India?
The Energy Elephant
Modern energy such as electricity or petroleum products plays a crucial role in

enhancing quality of life and driving an industrial economy.
Peoples lives are enriched through energy-based conveniences such as lighting,
appliances and motorized transport.
Energy is an important input to most enterprises in the industrial and service sectors,
and thus important from the economys perspective.
What is the darker side of this Elephant?
Deteriorating urban air quality, much of which can be attributed to motorized

transport, has gained wide attention recently.
There are also significant social and environmental concerns (such as air and water
pollution, deforestation and displacement) around energy-related activities such as
coal mining and power generation.
Subsidies, particularly untargeted subsidies, on petroleum products and electricity
are often criticized for their fiscal imprudence and promotion of inefficient
consumption.
Energy-related emissions are the largest contributor to climate change and India is
under increasing pressure to take action in this regard as the date for the Paris
climate summit approaches.
How can one truly understand the Energy Sector?

It accounts for the positives and negatives of the sector by considering five separate
dimensions
1.
2.
3.
4.
5.
consumption
supply
environmental
social and
Economic impacts.
Each dimension consists of two indicators and most indicators require a single data point
while few require two data points adding up to 13 data points totally.
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What are some Interesting facts about the Indian Energy Sector?
Though the scores for modern energy consumption have improved over the years,
the scores are still quite poor, particularly when it comes to the use of modern
energy in cooking and rural enterprises.
Indias energy import exposure is increasing rapidly with about a third of our energy
being imported, increasing the geopolitical as well as price risks of our energy
system.
It is unfortunate that even though land is such a politically sensitive topic in India,
there is no systematic data collected about the number of people displaced by
various projects and subsequently rehabilitated.
Finally and most damningly, Indias environmental management systems are
completely broken with average respirable suspended particulate matter (RSPM)
levels in the vicinity of energy projects consistently well above prescribed norms and
levels of chemical pollution (various nitrogen and sulphur oxides) also steadily
getting worse.
IAS BABAs View
These findings clearly indicate there is a need to focus policy action on rapidly
increasing access to electricity and modern cooking fuels, having a much more
effective and functional environmental management system, reducing energy import
exposure and instituting data collection systems for social impacts of energy
projects.
It is imperative to adopt measurement frameworks such as the proposed dashboard
to track and understand the sector given the scale and likely impact of such plans.
Otherwise, there is a real danger of stumbling along haphazardly without being
entirely sure of the direction taken by the energy sector.
Write a note on Governments ambitious plans for the energy sector.

What are the Increasing Geopolitical and price risks of our Energy Sector?
Renewable power: the challenges ahead
The target of raising renewable-based capacities to 175GW by 2022 is a continuation

of the generation-centric approach, while neglecting the criticality of the distribution
segment.
The result has been that despite impressive achievements in increasing generation
capacity and creation of a state-of-the-art national transmission grid, power sector
finances have remained weak, mainly because of distribution companies, or discoms.
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Is this target feasible?
It is five times the current capacity overall; wind-based capacity is set to treble and
solar capacity to be practically built from zero.
It is difficult to imagine the addition of 20GW of renewable capacity year-on-year for
the next seven years.
It should also be remembered that the central government has for many years
offered incentives like accelerated depreciation to bring down wind energy prices.
Solar energy has been supported by bundling it with coal-based electricity to make it
affordable to discoms.
Can the central government offer such security for 100GW or any such other alternative?
Raising funds, both equity and debt, to finance such a huge capacity addition is also
fraught with challenges. Developers will be looking for long-tenor, low-cost debt.
Given the state of finances of discoms detailed earlier, banks and other financial
institutions will be hesitant to offer loans.
Their enthusiasm will be dampened further if the centre does not offer any payment
security mechanism.
Banks and financial institutions will look for power purchase agreements (PPAs) to
be signed by the developer with the discoms before considering financing.
IAS BABAs View
The government should work to make discoms commercially viable, when the sale of
a unit of electricity does not mean loss.
That is when discoms will embrace renewable targets.
That is when financial institutions will come forward to support the sector.
That is when investors will be keen to invest and stay with the sector.
Is it fair to force discoms to buy higher cost electricity when they cannot ask for and
get cost-reflective tariffs?
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What are power purchase agreements (PPAs)?
DNA profiling Bill triggers debate
The DNA profiling Bill will allow the government to establish a National DNA Data
Bank and a DNA Profiling Board, and use the data for various specified forensic
purposes.
The data is collected and stored
under indices including, crime scene
index, suspects index, offenders
index, missing persons index,
unknown deceased persons index,
volunteers index, and such other
DNA indices as may be specified by
regulations made by the Board.
The government is planning to pass
the DNA profiling Bill in the current
session (Monsoon) of Parliament.
However, the Bill has raised many
issues especially with regard to
privacy of an individual.
Supporters of the Bill:
Scientists who have supported the DNA Bill have given a go ahead for the Bill, while
disregarding the privacy concerns and fear of social and political misuse of the data.
They have said, the country should not be worried about the privacy concerns since,
the DNA profiling is being done legally in various Western countries and it was
successful in solving a large number of crime cases. And regarding privacy concerns,
there are enough safeguards for the misuse of the data.
Issues: Potential for misuse
Those opposing the legislation fear that the bill could result in large scale violation
of human rights. DNA can reveal very personal information about people. And
biometric data collection of the scale of this kind has a high potential for misuse and
hence the bill itself should have powerful safeguards for privacy that it currently
lacks.
Legal experts have said that the scope of the Bill was too wide to be implemented in
India. As it allowed the use of DNA data in relation with offences including abortions,
paternity disputes and crimes against the law of nature, it could make the databank
too large for any sort of use.
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DNA fingerprinting experts found that the whole process could further slow down
the legal framework in the country. In India, where the conviction time for major
offences is anywhere between 10 to 20 years, this will only make the legal process
cumbersome and add on to peoples misery.
What can be the Safeguards against the potential misuse?
Limiting the scope of the DNA database to include only samples from a crime scene
for serious crimes and not minor offenses
Destruction of DNA samples once a DNA profile is created
Clearly defining when a court order is needed to collect DNA samples, defining when
consent is required and is not required from the individual for a DNA sample to be
taken, and ensuring that the individual has a right of appeal.
For more information regarding the provisions of the Bill, refer the below link
http://www.prsindia.org/theprsblog/?tag=dna-profiling
Does the DNA profiling Bill mean to say that once a criminal always a criminal? Will
the Bill affect the future of these individuals?
What are the pros and cons of the Bill? Will this Bill reduce the crime rate in India?
Is India well equipped to implement such a Bill?
Human trafficking A modern Slavery
The United Nations (UN) has

designated July 30 as World Day
against Trafficking in Persons.
It is a good day to remind ourselves
of the plight of an estimated 2.5
million people and 1.2 million
children who are victims of trafficking
every year all over the world.
With 2.5 million people a year falling
victim to it, human trafficking forms a
lucrative illicit economy that must be attacked from every angle
Why Human Trafficking increasing in India?
Fundamental theory of demand and supply is applicable to this situation as well.
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Men for work generally migrate to major commercial cities and from here the
demand for commercial sex is created.
To fulfill the supply all sorts of efforts are made by the suppliers like abduction etc.
Young girls and women belonging to poor families are at higher risk.
Then comes the economic injustice and poverty. If you are born to a poor family in
Northeastern state of India then you are at a higher risk of being sold.
If you are born to a poor family and a girl then these chances further increases.
Sometimes parents are also desperate to sell their daughters to earn money.
Social inequality, regional gender preference, imbalance and corruption are the
other leading causes of human trafficking in India.
How Is Bonded labour a major concern?
Though debt labour is not known much but it is illegal in India and prevalent in our
society.
According to the International Labour Organization there are more than 11.7 million
people working as a forced labour in the Asia-Pacific region.
People running out of cash generally sell their kids as debt labour in exchange for
cash. Both boys and girls are sold for this purpose and generally not paid for years.
Victims of human trafficking have great chances of suffering from issues like mental
disorders, depression and anxiety.
Women forced into sexual trafficking have at higher risk of getting affected from HIV
and other STDs.
What is the Action against guilty?
Under the Immoral Trafficking Prevention Act (ITPA) trafficking for commercial
sexual exploitation is penalized. The punishment ranges from seven years to life
imprisonment.
The Bonded Labor Abolition Act, the Child Labor Act, and the Juvenile Justice Act
prohibit the bonded and forced labor in India.
Because of the brutal gang rape of December 2012, government has passed a bill in
which laws related to sexual violence and making sex trafficking have been
amended.
But still there is a huge gap between enactment and enforcement of these laws.
Because of widespread corruption and bride, it is easy for agents for bring these
young boys and girls for their profit.
What's Being Done to Stop Human Trafficking?
In general, government intervention varieswhile some countries are creating

policies that work for their cultures, others are lagging behind with no countertrafficking laws at all.
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There are also some international standards: In 2003, the UN Protocol to Prevent,
Suppress, and Punish Trafficking in Persons established a universal trafficking
definition and set a goal for countries to prevent and combat trafficking and assist
victims.
Similarly, the U.S. Department of States Trafficking in Persons Report offers
suggestions for nations to comply with the minimum standards for the elimination
of trafficking.
IAS BABAs View
All the efforts will only see results through dedicated public participation. Our social
conscience has to treat trafficking for what it is, a crime and an evil.
We can, all of us, help combat trafficking. Stay vigilant and inform the authorities
whenever you see a case of exploitation, do not frequent restaurants or shops that
employ child labour, report homes that employ children, be sensitive towards
victims of sexual abuse, and participate actively in dialogue against trafficking and
slavery.
Businesses and corporate houses must self-monitor and map their supply chain to
ensure there is no trafficking or forced labour.
What Measures can be taken to prevent human trafficking in India?

Write a note on Palermo Protocol
What was recommended in Justice Verma committee report on the Basis of
BachpanBachaoAndolan(BBA) ?
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INTERNATIONAL
Two-speed regionalism
The recent agreement - motor vehicle agreement signed by the transport ministers
of Bangladesh, Bhutan, India and Nepal (BBIN) marks a big breakthrough in the
evolution of South Asian regionalism.
On implementation of the agreement the cross-border movement of goods and
people will becomea lot easier in the eastern subcontinent.
Is it isolating Pakistan ?
In the process, some view this agreement as being aimed at isolating Pakistan. But
what is driving this process is Pakistans delaying nature of negotiations which was
evident at the 2014 SAARC Summit in Kathmandu, Nepal.
After prolonged negotiations among all parties, including Pakistan, the SAARC
summit was presented with three agreements on cross-border energy cooperation,
motor-vehicle movement and railway cooperation. But Pakistan was not ready to
sign them, and it was only after great persuasion that Prime Minister Nawaz Sharif
endorsed the agreement on energy cooperation.
Advantages of the initiative
The initiative for sub-regional cooperation was taken by Bangladesh 2 years ago
(2013). With the sub-regional co-operation not only the need for its trans-frontier
connectivity is satisfied but also advantages for the member countries For Nepal and Bhutan, the two landlocked countries, this would improve their access
to the open seas, global markets and energy trade across borders that will boost
their economies.
Sub-regionalism across the globe
The sub-regionalism is quite common around the world too. For instance Britain,
Denmark and Sweden are among the members of the European Union that have not
adopted the euro as their currency. Many in Britain,want London to exit from the
European Union.
India, too, has often looked beyond the SAARC to benefit from trans-regional
cooperation. Along with Bangladesh, Bhutan, Nepal and Sri Lanka, India has been
promoting a trans-regional forum, called BIMSTEC(Bay of Bengal Multi-Sectoral
Technical and Economic Cooperation), with Myanmar and Thailand.
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Also sub-regionalism has got world-wide support from World Bank, Asian
Development Bank, Japan and China for sub-regions energy and transport corridors
and trans-border connectivity.
Way Forward:
If the BBIN programme succeeds, it could spur similar integration in other subregions, like the one formed by peninsular India, Sri Lanka and the Maldives. Some
day, even Pakistan might be ready to restore the historic economic connectivity in
the region stretching from the west of the Jumna to the Indus and beyond.
What are the disadvantages of sub-regionalism for overall growth of SAARC nations?
BBIN is not one of its kind programs. Make a list of other initiatives among South
East Asian Nations of which India is part of?
Advantages of BBIN for India and member nations.
The Nuclear deal in Iran
Nuclear agreement marks a new era in Iranian politics.

But political troubles await the Middle East.
The marathon nuclear talks between Iran and the major powers continue, while both
sides are trying to keep their cards close to the chest in order to get to what Iranian
Foreign Minister called a just deal.
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What is the role of the International Atomic Energy Agency (IAEA)?
Under the new framework drawn up in Lausanne, Iran agrees to substantially scale
down its nuclear activities to prevent any attempt to develop nuclear weapons.
In return, Tehran has asked for immediate relief vis-a-vis economic and financial
sanctions that have suffocated the economy by decreasing Irans oil exports and its
ability to earn foreign currency.
But there are tougher issues to be resolved.
Among these is the role of the International Atomic Energy Agency (IAEA) in keeping
tabs on Irans nuclear sites to ensure that Tehran indeed reduces its capacities.
However, the IAEAs demand to visit Irans military bases has been rejected as a red
line by Supreme Leader Ayatollah Ali Khamenei.
Who are other Important Players of this Deal?
The Obama administration and the Europeans have invested enormous political
capital in their Israeli and Saudi critics, by relying on tight sanctions that crippled
Irans economy and forced Tehran to negotiate.
Moreover, the Americans are trying to construct a nuclear deal that would give them
the flexibility to reimpose limited sanctions without putting the whole process in
danger.
But tailoring limited sanctions is as difficult as knowing the right moment to lift
them.
One of the insurmountable obstacles would be the factional war in Irans domestic
politics.
IAS BABAs View
The final deal will certainly heighten political tensions within Iran, giving a political
boost to Rouhanis cabinet and the reformists in the 2016 parliamentary elections.
Having the final say on all matters of state, the supreme leader ensures that no
group including the Revolutionary Guards and the ultra-conservatives gains enough
power to challenge the status quo.
Write a note on Marathon Nuclear Talks.

Discuss the effects that a nuclear deal might have on the future of Iranian civil
society?
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India moves to reset ties with Iran
Following recent sanctions, India had cut down on its oil imports from Iran and this
had strained the relationship between the two countries.
Now, India has decided to take certain measures to reset its ties with Iran.
Measures:
Connectivity Impetus to North-South Transport Corridor, which will pave the way
for its entry into Afghanistan and the Central Asian region
An inter-government memorandum of understanding has been signed in May, 2015
for the development of the Chabahar Port in Iran.
Way Forward:
India must look beyond trade and economic ties - possible cooperation to fight the
emerging terror groups in Central Asia. The disturbing developments in Afghanistan,
the penetration of militants into Central Asia, and the continued expansion of IS in
Iraq, all necessitate better India-Iran ties.
Background:
The North-South Transport Corridor connects India, Iran and Russia via the Caspian
Sea. The international transport corridor across NhavaSheva (Mumbai) through
Bandar Abbas (Iran) to Astrakhan (Russia) and Baku (Azerbaijan) is expected to
substantially reduce cargo transport time between India and Central Asia and Russia.
In the meanwhile India has ignored the warnings from the US, of not rushing into
doing business with Iran, till P5+1 Nations (the U.K., China, France, Russia and the
U.S and Germany) firms up the nuclear deal with Iran on June 30, 2015.
What is the strategic significance of Iran for India? Learn about TAPI Pipeline
Can India-Iran partnership balance China-Pakistan ally?
Role of India in geopolitics of Middle East?
Iran Nuclear Deal: Challenges and Implications
The nuclear deal reached on July 14, 2015 between Iran and six world powers is a
historic step forward that solves an over-a-decade-long stand-off between Iran and
the West. It sets the stage for a radical realignment of equations in West Asia, and
has the potential to transform the conflict-ridden region in the long term.
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Why its a wini-win situation for all?
Sanctions imposed by the U.S., the European Union and the UN would be lifted, in
return for Iran agreeing to long-term curbs on its nuclear programme.
All of Irans nuclear facilities would be allowed to continue operations.
Iran has also agreed to a snapback mechanism, under which some sanctions could
be reinstated after 65 days if it violated the deal. A UN weapons moratorium would
remain for 5 years and a ban on buying missile technology for 8 years.
How will this reconciliation help West Asia?
The changing geopolitical dynamics of West Asia have also played a major role in
bringing the U.S. and Iran together. If Iran is allowed to claim the economic and
diplomatic status it deserves, that could have a positive impact on several conflicts in
the region.
The real potential of the deal lies in the fact that it has removed the greatest
obstacle for reconciliation between Iran and the U.S.
Now, both the countries are cooperating in Iraq in the war against Islamic State.
What are the Challenges?
Powerful sections, including the Republicans in the U.S., hardliners in Iran, and the
Israelis and Saudis, remain opposed to a U.S.-Iran reconciliation.
But if Iran and the big powers continue to show the will and the commitment they
have demonstrated during the talks, the goals of the deal will be achievable.
From Indias Perspective:
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India has welcomed the successful conclusion of negotiations on the Iranian nuclear
issue between Iran and the Europe 3+3 (US, Russia and China) and the UN atomic
energy agency IAEA. However, India is concerned about the security fallout - (See
the picture above for Indias concerns with the deal)
India has always been supportive of Irans right to peaceful use of nuclear energy
while at the same time upholding the international communitys strong interest in
the exclusively peaceful nature of Irans nuclear programme.
Benefits for India
Connectivity The number of opportunities that the opening of the International

North-South transport corridor (from India to Central Asia) would give, especially
access to Afghanistan for trade via Chabahar port.
Economic Co-operation: Trade & Energy Co-operation - India and Iran have an
annual bilateral trade of about $14 billion, with an extremely high balance of trade
deficit, as India has been unable to pay Iran about $8.8 billion for oil due to
sanctions.
Earlier in March 2015, the Indian Government had completely stopped oil imports
for the first time in more than a decade in order to keep its international pressure.
Once sanctions are lifted, not only will oil imports from Iran be regularised, they will
be cheaper owing to Irans estimated added production of at least 500,000 barrels of
oil per day (by 2016).
Moreover, banking and insurance procedures with Iran will also ease and Indias
current concerns over the lack of access to Afghanistan could also be resolved by
the opening of the route via Irans Chabahar port instead of Karachi.
Indias Concerns: Nuclear arms race
Indias concerns over the lifting of sanctions on Iran could see a backlash from rivals
Saudi Arabia, that has hinted in the past months that it would try and match Irans
nuclear capabilities if the deal went through. Indian experts believe this could mean
closer cooperation with Pakistan.
India will also have to balance its support for Iran with its mushrooming ties with
Israel that has taken a very strong position against the deal.
Once Iran opens up its economy, it may not give India preferential treatment, as
Russia and China have been stronger supporters, and Europe and US may offer
better technology and opportunities.
What are the geostrategic implications of the deal?

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Will the deal lead to destabilized West Asia? Look at both the positives and the
negatives.
What steps should Indian Government take to ease the above concerns? Are the
concerns justified?
India, Brazil cross swords with U.S. at WTO
Switzerland and the U.S. have begun a campaign at the World Trade Organisation
(WTO) to not renew a moratorium on non-violation complaints and situations for
intellectual property rights that would expire at the end of 2015.
What is non-violation and situation complaint?
A non-violation and situation complaint can be raised against a WTO member when
it undertakes a certain action which, while not violating WTO rules itself, denies
another member an expected benefit by nullifying or countering another action or
policy required by the WTO.
For instance, introducing subsidies to undo the effect of lowered tariffs would be an
example of an action that could potentially attract a non-violation complaint.
Proposal to continue the moratorium
A proposal to continue the moratorium has been submitted by Brazil on behalf of a

group of 19 countries that includes India and China. If the proposal is successful, the
moratorium will continue after 2015, preserving the status quo.
Impact on India
If the moratorium gets cancelled, it would open the door to a new world of
possibilities and litigation as far as intellectual property is concerned.
Section 3(d) of the India Patents Act (1970) is likely to be a target of complainants.
This section of the Act defines what an invention is, and has been interpreted by the
Indian Patent Office to deny patents for drugs such as Sovaldi, a hepatitis C drug by
Gilead Sciences, and Glivec, a cancer drug by Novartis.
The denial of these patents has significant benefits for access to affordable
medication in India. It also has implications for the revenues of multi-national
pharmaceutical companies and their incentives to innovate.
Background:
Intellectual property (IP)
It is a term used to refer to creations of the intellect for which a monopoly is

assigned to designated owners by law.
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Some common types of intellectual property rights (IPR) are copyright, patents,
industrial design rights and trademarks. It also covers music, literature, and other
artistic works; discoveries and inventions; and words, phrases, symbols, and designs.
Intellectual property rights are themselves a form of property, called intangible
property.
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an
international agreement administered by the WTO that sets down minimum
standards for many forms of intellectual property regulation as applied to nationals
of other WTO Members.It was negotiated at the end of the Uruguay Round of the
General Agreement on Tariffs and Trade (GATT) in 1994.
The TRIPS agreement introduced intellectual property law into the international
trading system for the first time and remains the most comprehensive international
agreement on intellectual property to date.
What is TRIPS plus agreement?

Make a note on various conflicts between India and USA related to WTO
Do you think Indian Patent Law is regressive?
U.N. accuses Israel, Hamas of committing war crimes
According to the recently released United

Nations report both Israel and Palestinian
militants have committed war crimes during last
years (2014) Gaza war, which has led to
unprecedented devastation and human
suffering.
Israel has denied the allegations. However,

Hamas has welcomed the report as this can
further their process to International Criminal
Court (ICC).
Background:
West bank
The West Bank is a landlocked territory near the
Mediterranean coast of Western Asia, forming the bulk
of the Palestinian territories. The West Bank shares
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boundaries to the west, north, and south with

the state of Israel, and to the east, across the
Jordan River, with Jordan. The West Bank also
contains a significant coastline along the
western bank of the Dead Sea.
Gaza Strip
The Gaza Strip is a pene-exclave region of
Palestine on the eastern coast of the
Mediterranean Sea that borders Egypt and
Israel. Gaza makes up part of the Palestinian
territories which includes the West Bank. In
2012 the United Nations General Assembly
accorded Palestine non-Member Observer
State status in the United Nations.
Gaza-Israel Conflict
The GazaIsrael conflict is a part of the wider
IsraeliPalestinian conflict. Palestinian militant
actions escalated in the Gaza Strip following the
overwhelming election to government of the
Islamic political party Hamas in 2005 and 2006.
The conflict escalated with the split of the
Palestinian Authority to Fatah government in the
West Bank and the Hamas Government in Gaza
and the following violent ousting of Fatah.
Palestinian rocket attacks on Israel and the joint
Israeli-Egyptian
blockade
of
Gaza
have
exacerbated the conflict.
International Criminal Court (ICC)
The International Criminal Court (ICC) is an intergovernmental organization and

international tribunal that sits in The Hague in the Netherlands.
The ICC has the jurisdiction to prosecute individuals for the international crimes of
genocide, crimes against humanity, and war crimes.
The ICC is intended to complement existing national judicial systems and it may
therefore only exercise its jurisdiction when certain conditions are met, such as
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when national courts are unwilling or unable to prosecute criminals or when the
United Nations Security Council or individual states refer investigations to the Court.
The ICC began functioning on 1 July 2002, the date that the Rome Statute entered
into force. The Rome Statute is a multilateral treaty which serves as the ICCs
foundational and governing document. States which become party to the Rome
Statute, for example by ratifying it, become member states of the ICC. Currently,
there are 123 states which are party to the Rome Statute and therefore members of
the ICC.
Courtesy Wikipedia
Understand the Historical Perspective of the conflict between Israel and Palestine.
What is the present situation? Is Palestine a recognized country?
Role of International Criminal Court (ICC) in settlement of War crimes.
Heat Wave Kills Around 400 People in Karachi

What is Heat Wave?
A heat wave is a prolonged period of excessively hot weather, which may be

accompanied by high humidity, especially in the west coasts of the middle latitude
continents.
A heat wave is measured relative to the usual weather in the area and relative to
normal temperatures for the season. Temperatures that people from a hotter
climate consider normal can be termed a heat wave in a cooler area if they are
outside the normal climate pattern for that area.
How does it occur?
Heat waves are most common in summer when high pressure develops across an
area. High pressure systems are slow moving and can persist over an area for a
prolonged period of time such as days or weeks.
Consequences of Heat Wave
Severe heat waves have caused catastrophic crop failures, thousands of deaths from
hyperthermia, and widespread power outages due to increased use of air
conditioning. A heat wave is considered extreme weather, and a danger because
heat and sunlight may overheat the human body
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Australia to join China-led Asian Infrastructure Investment Bank (AIIB)
It is stated that, Australia would join the new China-led AIIB as a founding member,
contributing about $930 million to the financial institution of which India will be the
second largest shareholder.
Australia would contribute around A$930 million as paid-in capital to the AIIB over
five years and will be the sixth largest shareholder. AIIB will have paid-in capital of
$20 billion (A$25.2 billion) with total authorised capital of $100 billion (A$126.2
billion).
This would also help Australia take advantage of the growth in infrastructure in the
Asian region.
According to a report, there was an estimated infrastructure financing gap of around
$8 trillion in the Asian region over the current decade.The AIIB will be part of the
solution to closing this gap.
Background:
What is The Asian Infrastructure Investment Bank (AIIB)?
AIIB is an international financial institution proposed by the government of China in

2013 and was launched in Beijing in October 2014.The AIIB, which will be
headquartered in Beijing.
Purpose
The purpose of the multilateral development bank is to provide finance to

infrastructure projects in the Asia region. AIIB is regarded by some as a rival for the
IMF, the World Bank and the Asian Development Bank (ADB),which are regarded as
dominated by developed countries like the United States.
Key focus areas
The AIIB, a modern knowledge-based institution, will focus on the development of

infrastructure and other productive sectors in Asia, including energy and power,
transportation and telecommunications, rural infrastructure and agriculture
development, water supply and sanitation, environmental protection, urban
development and logistics, etc.
AIIB will complement and cooperate with the existing multilateral development bank
(MDBs) to jointly address the daunting infrastructure needs in Asia.
Courtesy http://www.aiibank.org/& Wikipedia
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How different is AIIB from other multilateral developmental banks like WB, IMF,
ADB? Its merits and de-merits.
Does The US Fear The Asian Infrastructure Investment Bank? What is the stance of
European countries and Japan?
How crucial is AIIB in propelling Indias growth?
50 nations in, AIIB takes shape

India to have 7.5 per cent voting share, and China 26 per cent
What is AIIB?
The Asian Infrastructure Investment Bank (AIIB) is an international financial

institution proposed by the government of China. The purpose of the multilateral
development bank is to provide finance to infrastructure projects in the Asia region.
AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian
Development Bank (ADB),
which
are
regarded
as
dominated
by
developed
countries like the United
States.
Who Constitute AIIB?
There are 57 Prospective

Founding
Members
(PFM).Hong Kong joins the
delegation of China in the
negotiations. India and 49
other founding members of the
Asian
Infrastructure
Investment Bank (AIIB) have
signed articles that determine each countrys share and the lenders initial capital.
The remaining seven founding members can sign the agreement before December
2015.
Vision and Mission of AIIB
The AIIB is expected to focus on infrastructure development in Asia, and unlike the
existing International Monetary Fund and World Bank, is unlikely to restrict lending
on political considerations. The Banks foundation will be built on international best
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practices and the lessons and experiences of existing multilateral development banks
and the private sector
Will AIIB bridge infrastructure financing gap in Asia?
China-led $100 billion Asian Infrastructure Investment Bank (AIIB) will become an
important forum to bridge an infrastructure financing gap in Asia to help regional
economies achieve stable and sustainable growth.
The bank estimated that Asia will need $8 trillion from 2010 to 2020 for
infrastructure investment in fields such as energy, transportation,
telecommunication, water and sanitation, but the region is facing a gap between
great demand and inadequate capital supply.
Why the Chinese economy is deeply integrated with the global economy and forms
an important driving force of the economy of Asia and even the world at large?
Advantage of AIIB to India?
What is the Importance of Infrastructure driven Economic Development Framework?
China, India fast-track BCIM economic corridor project
The talks between BCIM countries have been going from a long time since 1999 track
II dialogue in Kunmiang. There had been a realization that improving trade is a
matter of more and better connectivity. Since this issue is also liked with N-eastern
Indian development; and relations with neighboring countries, it is an important
issue.
Recently China and India are adding fresh momentum to the establishment of the
Bangladesh-China-India-Myanmar (BCIM) economic corridor, which is expected to
develop gradually before more ambitious goals are achieved.
What is BCIM Corridor?
The
BCIM
Economic
Corridor is a modern
version of the Silk Road.
It is planned to run from
Chinas Kunming province
to Kolkata in India, and link
Mandalay in Myanmar and
Dhaka and Chittagong in
Bangladesh through a
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network of roads, railways, waterways, and airways under a proper regulatory

framework
The initiative seeks to:
Improve connectivity and infrastructure - power projects, telecommunications etc.
Energy resources, agriculture, and trade and investment.
Benefits to India and BCIM as a whole
Together, the BCIM countries account for 9 per cent of the global landmass and 40
per cent of the global population.
Special emphasis in BCIM is on inter-regional road network as roads are the cheapest
route of trade. This will lower transportation costs between India and China by 30
per cent and escalate already growing SinoIndian trade through the BCIM Corridor.
The BCIM Corridor will allow all four countries to exploit existing complementarities
in trade in terms of both sectors and products. Myanmar is a primary goods
exporter and has abundant cheap labour. India has positioned itself as a leading
services exporter. China is the largest manufacturing exporter in the world; and
Bangladesh, like many other South Asian countries, engages in both services export
and low-end manufactured goods.
To address energy security, BCIM sub-regional cooperation can capitalise on

hydrocarbons in Bangladesh, hydro-electric and mineral resources in Northeast
India, natural gas reserves in Myanmar, and coal reserves in East Indian states like
Odisha, Chhattisgarh and Jharkhand and Chinas Yunnan province.
Indias engagement with Myanmar will contribute to Indias energy security as India
is currently heavily dependent on Gulf oil imports.
These initiatives will also lead to economic development of the NE region of India
with special emphasis on infrastructure creation and people-to-people contacts.
Corridor will provide access to sea for north-eastern States- From the West Bengal
capital, the corridor will head towards Benapole, a border crossing town in
Bangladesh. After passing through Dhaka and Sylhet, it will re-enter the Indian
territory near Silchar in Assam. The rest of the passage will be connected with Imphal
and then pass through the India-built Tamu-Kalewa friendship road in Myanmar.
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North Eastern States are crucial for any international engagements from South
Asian Nations. NE States needs to be developed before any developmental activity
is thought of? Relate it with infrastructural requirements and development of NE.
What are the hurdles in the efficient completion of BCIM project?
Dont you think it is the policy of China to get access to NE States of India with
alluring projects like BCIM? Relate BCIM with Silk Road Strategy of China
Bridging ties with the New Silk Road
The Maritime Silk Road, officially the 21st Century Maritime Silk Route Economic
beltis a Chinese strategic initiative to increase investments and foster collaboration
across the historic Silk Road. ChinaPakistan Economic Corridor is an extension to
proposed Silk Road.
The Belt and the Road project is an ambitious exercise that was announced by the
Chinese President Xi Jinping-led regime in 2013. It encompasses trade and
investment hubs to the north of China by reaching out to Eurasia including a link via
Myanmar to India (the New Silk Road Economic Belt).
The other component, the Maritime Silk Road begins from the south of the land
mass via the South China Sea, then going on towards Indo-China, south-East Asia and
then traversing around the Indian Ocean by reaching out to Africa and Europe.
China has committed $40 billion in initial investments for the Silk Road Infrastructure
fund, over and above the investments that are to be funded by the newly
constituted Asian Infrastructure Investment Bank (AIIB).
What is driving China for these initiatives?
It is more of an economic imperative for China topromote theNew Silk Road

Economic Beltand the Road. The Chinese economy is undergoing a structural
change, from one that was export and investment-led, labour intensive and
manufacturing driven to a more diversified, industrially transformed, internal
consumption driven, economic one.
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Indian response:
The response from the Indian government to its participation in the Belt and the
Road projects (the latter especially) has been lukewarm, even though India has
become a founding member of the AIIB along with China.
While the Maritime Silk Road would be a way to build a route for the
rerouting/export of Chinese capital and consumer goods, the Silk Road Belt will be a
channel for land-based projects like building pipelines, and infrastructure such as
roads and rail-lines with partnering countries along the routes.
China visualises synergy with the Indian Act East initiative and the development of
the Bangladesh-China-India-Myanmar(BCIM) corridor.
Indias participation in the Silk Road project willincrease Chinese investment in
infrastructure projects in Indiaand ease the massive trade deficit.
Strategic dilemma:
Some experts consider the Maritime Silk Road as a way of establishing a String of
Pearls strategic bases encircling India and constituting a challenge of a
geopolitical kind.
This view does not consider the fact that Indias neighbours, Sri Lanka, Pakistan and
even Nepal have largely and willingly wanted to partner with China in projects
related to port and infrastructure development in the form of rail links among
others.
Way forward:
There are avenues that can be explored to leverage Indias advantages in the tertiary
sector and Chinas strengths in capital investment for what could be a win-win
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deal. Therefore, a more open assessment of the Belt and the Road initiative in this
regard would be a step in the right direction.
UPSC had asked a question on China-Pak Economic Corridor in 2014 Mains. Prepare
the developmental aspects of the same
Mention the advantages and disadvantages of China-Pak Corridor for India.
What are the similarities and differences between String of Pearl and New Maritime
Silk Route?
Is it a threat for India? On contrary how India can take advantages from the same?
Tibet poised to become part of Belt and Road initiative

Chinas efforts to forge a new social contract with people of the Tibet Autonomous Region
(TAR), based on generous subsidies, jobs and education, appear to be paying off, with the
booming Tibetan capital showing little signs of remembering the Dalai Lama on the eve of
his eightieth birthday
What is Belt and Road Initiative?
China announces plans to boost the road, rail and maritime trade by creating
economic corridors and investing nearly $900bn (586bn) in countries along the
route.
The country is mulling six economic corridors to better connect Asia and Europe,
with funding from the Asian Infrastructure Investment Bank and the Silk Road Fund,
for the project that is known in China as One Road, One Belt
Why India needs to be wary of China's ambitious belt and road initiative?
India looks at this Chinese initiative suspiciously.

The Indian suspicion has been fueled further as strategic circles in New Delhi view
the China-Pakistan Economic Corridor (CPEC) and the Bangladesh-China-IndiaMyanmar (BCIM) Economic Corridor as nothing but microcosms of the Chinese Belt
and Road Initiative.
What type of Nexus this creates between China and Pakistan?
Implementing the CPEC by itself is not going to be easy as announcing the grant of
funds because physically making the connections on the ground between China and
Pakistan is going to pose a stiff challenge given the state of internal security in
Pakistan.
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And then there is debate on the route of the CPEC itself as Pakistan wants it to pass
through the more prosperous Punjab and not through Khyber Pakhtunkhwa (KPK),
formerly known as North-West Frontier Province (NWFP).
Will One Belt and Initiative Increase the Domination of China In Asian Geopolitics?
Explain Why India needs to be wary of China's ambitious belt and road initiative?
Integrating Tibet with the world
The ambitious SichuanTibet railway project will

connect Lhasa with
Chengdu, and include
Tibet
in
Chinas
transportation corridor
to Europe.
China is on course to
integrate the Tibet
Autonomous Republic
(TAR) into the global
mainstream, with India
and Nepal among the
spurs that will connect it
with South Asia.
How the Chengdu would be the Game changer?
The extension of the railway to Chengdu would be a game changer, for it would
integrate Tibet with Chinas transportation corridor to Europe.
This step would also be path-breaking, for it would establish a link between Tibet
with the proposed Bangladesh-China-India-Myanmar (BCIM) economic corridor.
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What is TAR-India connectivity?
The Chinese are proposing another rail

link, which could revolutionise contact
between TAR and India.
In case that happens, it would establish a
Chinese railhead in the Chumbi valley, only
31 kilometres away from the Nathu La
pass that connects Tibet with Sikkim.
The Nathu La pass is the channel for
border trade, but Chinese officials say that
Sikkim could become an important
destination for investments and tourism as
well.
IAS BABAs Views
China stresses that its bold enterprise is part of its plan to elevate the economies of
backward regions.
The growing linkages between Chinese and Indian provinces are the new drivers of
Sino-Indian ties.
Indian officials say that Yunnan and West Bengal are emerging as BCIMs twin
growth engines.
Briefly explain the controversial hydro-electric projects, involving China, India and
Bangladesh.
Write a note on how TAR links with the Association of the South East Asian Nations
(ASEAN)?
India keeps away from vote against Israel in U.N.

The government denied what appeared to be a major shift in Indias policy on Israel,
particularly on UN votes related to the Palestinian cause, after it abstained from a vote
against Israel at the UN Human Rights Council in Geneva
What is UNHRC Resolution?
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India abstained on a resolution at the UN Human Rights Council condemning Israel

over the UN report into Operation Edge in Gaza.
Resolution calls on all
UN
officials
to
implement the reports
recommendations and
on UNHRC member
states to ensure the
application
of
international law in the
occupied
Palestinian
territories.
What is Indias Stand?
Although India, Kenya,

Ethiopia, Paraguay and
Macedonia abstained,
the
resolution
was
adopted as 41 countries
voted in its favour.
These included European Union member countries Britain, France and Germany;
China, Pakistan, Bangladesh and Maldives from Indias neighbourhood and Russia.
Israels closest ally US was the only country to vote against the resolution.
India has traditionally voted in favour of such resolutions.
So, the move is being seen in the context of India warming up to Israel under PM
Narendra Modi.
IAS BABAs Views
Indias vote notwithstanding, the 47-member UNHRC adopted the resolution on

ensuring accountability and justice for all violations of international law in the
occupied Palestinian territory including East Jerusalem asking Israel and Palestine to
prosecute alleged war crimes committed in the 2014 Gaza war and to cooperate
with ICCs probe.
While the Council has no binding powers, its moral authority raises the pressure on
both sides.
Write a note on Mandate of International criminal court.

Plot a timeline understanding the issue of Israels offensive in Gaza.
Analyze Indias foreign policy towards Israel
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Islamic State guidelines to avoid online surveillance

Stepping up their online propaganda war, proponents of the Islamic State have now come
up with guidelines for followers to thwart attempts by foreign intelligence agencies to track
them down.
What hints can be traced from these guidelines?
Launched about a week ago and circulated through Twitter, the four-page guidelines
suggest employing a tool initially developed by the United States Naval Research
Laboratory in the mid-1990s.
Use TOR *acronym for The Onion Router+. Even if you are in IS territory, use TOR so
as to not reveal your IP address and thus, location as the kuffar coalition can use
this information for military means, says the IS release titled Collation of social
media tips & hints to help muwahideen& new users created on website
justpaste.in.
Those outside the IS territory must understand that their accounts can be followed
and tracked by security agencies in order to arrest them and other muwahideen they
interact with online
Is it possible for a lone wolf in Cyberspace?
An aspiring terrorist can use the Internet to find everything from instructions on how
to build a bomb to diagrams of civic buildings that could be potential targets.
Websites, Facebook pages, YouTube videos and Twitter postings all provide venues
for cultivating extremism that was once possible only through clandestine face-toface meetings.
In the 2013 Boston Marathon bombing, for example, the lone-wolf killers used an
explosive device they had learned to make on the Internet.
What anonymity this ensures?
The free software works on a large network of volunteer-operated servers. It is

said to be a safer way of ensuring anonymity on the Internet, and facilitates
access to blocked sites, hides user IP address and encrypts contents.
The IS guidelines warn that even TOR maintained by a U.S.-based non-profit
Organisation is not foolproof and that more precautions need to be taken to
ensure anonymity.
IAS BABAS View
Lone wolf terrorism is often cited as the biggest terrorist threat today.
This is particularly true at a time when surveillance technology and societys reliance
on digital information are evolving much faster than U.S. laws.
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The war on terrorism especially on lone-wolf terrorism requires new

countermeasures.
But also a well-defined set of rules and guidelines.
What is Online Surveillance?

What measures should India adopt to ensure safety of Surveillance Technology?
Pakistan dismisses Indias objections to China-Pak Economic corridor as intervention
India has conveyed its objections to

Beijing over the project which links
Chinas Xinjiang province with
Pakistans Gwadar port through the
Pakistan-occupied Kashmir (PoK).
Pakistan says it is a commercial
project aimed at improving the
livelihood of people.
What is Pakistans Voice over this?
Greater regional connectivity and the

Corridor will utterly benefit the
whole region including India.
Eradicating extremism and terrorism is one of our priorities.
The present government has formulated the National Action Plan (NAP) with the
consensus of other political parties to root out terrorism in all its forms and
manifestations.
What are its Implications for Regional Security?
The agreement will give China a land route with the Middle East and South Asia that
does not pass through potentially-contested chokepoints near Taiwan, the
Philippines, Vietnam, Indonesia, and India.
The move may bring greater prosperity to the region but there are risks of greater
tensions and unrest.
How about The India-Pakistan rivalry?
The arrangement is not being welcomed in India.

Its security bureaus see it as part of Chinas string of pearls strategy of surrounding
India with potential foes.
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India knows well that the recent deal was preceded by the announced sale of eight
Chinese submarines to Pakistan.
Do you think that the investment program with Pakistan will make China even more
of a world actor?
Write a note on Indias Security concerns of Pakistan-China Economic Corridor
India US: Issues

Five days ahead of the
10th anniversary of the
signing
of
the
landmark
Indo-U.S.
nuclear deal, U.S.
Ambassador Richard
Verma spoke about
the expanding range of
India-U.S.
relations,
even as discussions
continue
over
differences in issues
such as nuclear cooperation, patent laws, and climate change.
What is the present status of nuclear cooperation (INDIA+U.S.?)
Nuclear cooperation brought the two governments, the two peoples, together, and
it brought U.S. companies and technology to help solve Indias power issues and to
bring a non-carbon intensive power source to India.
It also brought India back into the nuclear fold by bringing a certain number of its
facilities under international safeguards.
The establishment of the insurance pool is also an important step to provide
insurance coverage, where there may still be some risk and exposure.
How is U.S. financing the Clear Energy?
Clean energy and climate is the new and significant pathway of cooperation for the
future.
U.S. brought nearly $4 billion to the table already through Exim Bank, TDA [Trade
and Development Agency], and USAID [U.S. Agency for International Development].
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Just last week U.S. established another multi-million dollar fund with Indian
counterparts, to bring green technologies and energy solutions to communities
where they dont currently exist.
What is the stand of India-U.S. in the issue of drug patents?
Theres a difference of opinion on Section 3d of the Patent act.

This section states that inventions that are mere "discovery" of a "new form" of a
"known substance" and do not result in increased efficacy of that substance are not
patentable.
This implied that India did not support patents for inventions which were minor
modifications and prevented undue monopoly during the extended period of patent
protection by the company.
What are the Deals on Which India-U.S agreed with regards to climate change?
The United States and India agreed on:
Enhancing Bilateral Climate Change Cooperation

Cooperating on Hydroflurocarbons (HFCs)
Expanding Partnership to Advance Clean Energy Research (PACE-R)
Accelerating Clean Energy Finance
Launching Air Quality Cooperation
Starting Technical Cooperation on Heavy-Duty Vehicles and Transportation Fuels
Initiating Climate Resilience Tool Development
Promoting Super-Efficient Off-Grid Appliances
Transforming the Market for Efficient and Climate-Friendly Cooling
Demonstrating Clean Energy Initiatives on the Ground
IAS BABAs View
Indias commitment to ratify the treaty on supplementary compensation, the one

that focuses on liability, these all are important steps that would bring us to the
conclusion of commercial arrangements which are very much under way now.
India is leading the world in so many categories.Indian innovators want strong
intellectual property protection and enforcement.
Its interesting that both the U.S. and India have similar elements of relationship with
China, involving both competition and cooperation
What has been the progress in technological cooperation between the two
countries, especially in clear energy?
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U.S. drug companies have raised objections to Indian patent laws several times. How
do you reconcile these differences?
Whats the view in the U.S. about Indias engagement with Russia and China?
Liability law still clouds nuclear deal

Led by U.S. Vice-President Joe Biden,
senior Indian and U.S. officials sent
out a strong signal of their
commitment to moving the bilateral
civil nuclear deal forward despite
obstacles.
What is the bilateral civil nuclear

deal?
The 123 Agreement signed

between the United States of America and the Republic of India is known as the
U.S.India Civil Nuclear Agreement or Indo-US nuclear deal.
This U.S.-India deal took more than three years to come to fruition as it had to go
through several complex stages, including amendment of U.S. domestic law,
especially the Atomic Energy Act of 1954, a civil-military nuclear Separation Plan in
India, an India-IAEA safeguards (inspections) agreement and the grant of an
exemption for India by the Nuclear Suppliers Group, an export-control cartel that
had been formed mainly in response to India's first nuclear test in 1974.
What kind of technology would India receive in return?
India would be eligible to buy Nuclear Technology from Nuclear Suppliers

Group(NSG).
There are 45 countries in NSG.
India will get Nuclear reactor and nuclear fuel for making power for energy.
India will become the only one country that gets nuclear technology without signing
Nuclear Non-Proliferation Treaty.
Explain the Indias three stage nuclear power programme

Write a note on Nuclear Power in India.
www.IASbaba.com
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India, U.S. ink pact on sharing account info

In a step towards curbing overseas tax evasion and black money, India and the U.S. signed
an inter-governmental agreement to implement the Foreign Account Tax Compliance Act
(FATCA)
Why did India Ink US Foreign Account Tax Compliance Act?
It reaffirms the government of India's commitment to fight the menace of black

money.
It is hoped that the exchange of information on automatic basis regarding offshore
accounts under FATCA would deter tax offenders, would enhance tax transparency
and eventually bring in higher equity into the direct tax regime.
The signing of tax agreement is an important step forward in the collaboration
between the US and India to combat tax evasion.
Will U.S. also share financial information with India?
As per this inter-governmental agreement under a new US law, Indian financial

institutions would have to reveal information about US tax payers to the revenue
department which would be passed on to the US tax authorities.
In turn, the US will also share financial information with India.
IAS BABAs Views
FATCA enables automatic transfer of information on offshore accounts.

India and the other G20 countries agreed to automatically exchanging tax
information on a reciprocal basis by the end of 2018.
FATCA is an important part of the US government's effort to address Tax Evasion
issue.
Write a note on the role of Central Board of Direct Taxes.

What are the Challenges in implementing the required infrastructure and processes
in India?
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What are the Features of Foreign Account Tax Compliance Act (FATCA)?
SCO decides to include India as full-time member
Beijing-based SCO currently has China, Russia, Kazakhstan, Kyrgyzstan, Uzbekistan

and Tajikistan as members.
India, which has an Observer status for the past 10 years, will technically become the
member by next year after completion of certain procedures.
What and who of SCO
The Shanghai Cooperation Organisation or SCO or Shanghai Pact is a Eurasian

political, economicand military Organisation which was founded in 2001 in Shanghai
by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.
These countries, except for India, Pakistan and Uzbekistan had been members of the
Shanghai Five, founded in 1996; after the inclusion of Uzbekistan in 2001, the
members renamed the Organisation.
After over a decade, on July 2015, SCO decided to include India and Pakistan as fulltime members.
What are the activities of SCO?
Cooperation on security
Military activities
Economic cooperation
Cultural cooperation
How are the relations of SCO and the WEST?
While the SCO (together with the BRICS) is described by Western analysts as a way
for Russia and China to cooperate with each other in creating stability in Central Asia
as well as challenging the current, Western-dominated global order, the
organisation's lack of resources are seen as a sign of weakness.
The United States applied for observer status in the SCO, but was rejected in 2005.
The SCO has made no direct comments against the U.S. or its military presence in the
region; however, some indirect statements at the past summits have been viewed by
the western media as "thinly veiled swipes at Washington"
Why the International Federation has for Human Rights has called SCO a "vehicle"
for human rights violations?
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What are the Geo Political Advantages and Disadvantages of Permanent Member
status of India in SCO?
Dire need for a global consensus on refugees
Over the past few months, the headlines have been dominated by the plight of
people fleeing their countries and seeking refuge elsewhere.
With several recent instances of migrants being left in the lurch, the international
community must arrive at a consensus to protect refugees
Who is a refugee?
A refugee is a person who is outside their home country because they have suffered
(or feared) persecution on account of race, religion, nationality, or political opinion;
Because they are a member of a persecuted social category of persons; or because
they are fleeing a war.
Who are in need of refugee Norms?
Perhaps of greater significance to the majority of todays refugees is the emerging

customary norm of temporary refuge, which prohibits a state from expelling foreign
nationals who have fled armed conflict and civil strife.
Such persons are not the targets of persecution but are innocent civilians whose own
government cannot guarantee their safety.
The situation in Syria perhaps represents the need for such a norm.
What is the Responsibility of International Community?
It is the responsibility of the state to protect their citizens.

When the governments of home countries are not able or willing to protect the basic
rights of people living in the state and these people are forced to cross an
international border to escape persecution, generalized violence, conflict, or serious
human rights violations, then the international community has the responsibility to
step to ensure that these people receive effective protection and that their basic
rights are respected.
The creation of national refugee legislation based on International standards is the
key to strengthening asylum, making protection more effective, and developing
solutions for refugees
IAS BABAs View
India, with its long history of providing shelter to the persecuted, is uniquely
positioned to take the lead.
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India, with its long history of providing shelter to the persecuted, from the
Zoroastrians to, more recently, the Tibetans, is perhaps uniquely positioned,
particularly in the Asian subcontinent, to take the lead in any international
consensus building on the subject.
What is the role and mandate of UNHCR?

To what extent are the provisions of the 1951 Refugee Convention reflected in the
legislation of India?
India-Bangladesh: 90% of enclave dwellers give choice of nation
India and Bangladesh will complete a survey asking each of the 51,000 people living
in 162 enclaves on the border to give their choice of citizenship of either nation.
Most Bangladeshi nationals on the Indian side wanted to remain in India, the
decision of Indians on the Bangladeshi side would depend on the compensation
offered for their lands.
What is Indo-Bangla Enclave Exchange Coordination Committee about?
Indo-Bangla Enclave Exchange Coordination Committee is appointed to submit a

rehabilitation plan for the dwellers of Indian enclaves in Bangladesh who want to
settle in India after the land boundary agreement has been implemented.
The committee is
expected to submit
a list of 149
families who want
to settle in India
with
a
rehabilitation plan
to look after their
stay.
India
and
Bangladesh
governments had
signed the enclave
exchange protocol
in September 2011.
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Why Enclave Exchange Protocol?
An international enclave is a fragment of foreign territory landlocked within a

country.
When the borders were drawn in 1947, about 51 international enclaves came into
being in India, initially territories of East Pakistan and then of Bangladesh.
There are 111 Indian enclaves in Bangladesh.
Over the last six decades, enclave dwellers have led a stateless existence, stranded in
these tiny pockets of land.
Are they the people without a state?
Cut off from the administrative offices of their countrys mainland, they cannot
acquire birth certificates or passports.
Accessing basic facilities like hospitals and primary schools, or going to nearby
markets to make a living, entails a perilous journey across an international border
and harassment by state officials.
Until a joint census conducted by the two countries in 2011, they were never
counted.
Whatprovided for the exchange of enclaves between the two countries?
Prime Minister Manmohan Singh and his Bangladeshi counterpart signed the Land
Boundary Agreement (LBA), which provided for the exchange of enclaves between
the two countries.
But that initiative lost its way in Parliament.
Apart from the need to keep faith with a loyal ally, the plight of the enclave dwellers
should be a powerful argument for pressing on with the land swap deal.
Write a note on the Enclave Dwellers who live in a stateless limbo?

Write a note on the Land Boundary Agreement and Teesta Treaty.
Strategic importance of Ufa summits
The recently concluded twin summits in Ufa, Russia - of the BRICS (Brazil, Russia,
India, China and South Africa) grouping and the SCO (Shanghai Cooperation
Organization) are a strategic milestone for the emerging global order and Indias role
in it for several reasons.
Russia sought to use the summit to defend and strengthen its own global standing
over the Ukraine imbroglio and highlight that it was not isolated either politically or
economically, despite the sanctions imposed by the Group of 7 countries (G7).
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This has a stark resemblance to the twin BRICS (South Africa became a member in
2010) and SCO summits that Russia hosted in Yekaterinburg in 2009, a year after
Russia faced international criticism for its invasion of neighbouring Georgia.
Issues and Challenges in the recently held summit:

1. Russia : Both 2009 & 2015 Summit, has not improved Russias international standing.
In fact, the efforts put has only reflected Russias diminishing role in shaping the
emerging world order, which is increasingly being determined by other BRICS and
SCO members, especially China.
2. There are some inherent contradictions between the various BRICS and SCO
members, particularly China and India. For instance, regarding the issue of terrorism
the Ufa declaration states that, UN has a central role in coordinating international
action against terrorism, which would effectively be addressed through the UN
Global Counter-Terrorism Strategy. But it does not say anything about Chinas
blocking of Indias move in the United Nations to challenge Pakistans release of Zakiur Rehman Lakhvi, the alleged mastermind behind the 26/11 Mumbai attacks.
3. Also there are contradictions among BRICS members on how the Internet should be
governed.
4. There are issues raised over Indias decision to join the SCO ( which has been
referred to as the league of dictators) as it may contradict the principles of
Democracy. However, this holds any weight since India can use SCO as an
opportunity to enhance its connectivity and boost trade by easing barriers,
particularly with the Central Asian members. And also to resolve its disputed border
with China.
5. Though the Ufa declaration stresses on the BRICS role in maintaining international
peace and security, advance global development and promote and protect human
rights, there has been no steps taken to reform UN Security Council.
Way forward:
While the formal establishment of the New Development Bank (NDB) has made
BRICS a serious international actor in the financial forum, inability to reach similar
consensus on UN reform, governance of the Internet and counter-terrorism will
limit its political clout. So these issues must be taken as a priority and a consensus
should be reached at the earliest.
India, which assumes the leadership of the grouping and will host the next summit,
should make sure that a consensus is built to transform the BRICS into a significant
strategic global actor.
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Background:
Shanghai Cooperation Organisation (SCO):
The SCO is a Eurasian political, economic and military organisation which was
founded in 2001 in Shanghai.
Members: China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan. In July 2015,
the SCO had decided to admit India and Pakistan as full members, and they are
expected to join by 2016.
BRICS:
BRICS is the acronym for an association of five major emerging national economies:
Brazil, Russia, India, China and South Africa.
The grouping was originally known as "BRIC" before the inclusion of South Africa in
2010.
The BRICS members are all developing or newly industrialised countries, but they are
distinguished by their large, fast-growing economies and significant influence on
regional and global affairs.
Since 2010, the BRICS nations have met annually at formal summits. Russia currently
holds the chair of the BRICS group, and had hosted the group's seventh summit in
July 2015.
The Group of 7 (G7):
The Group of 7 (G7) is a group consisting of the finance ministers and central bank
governors of seven major advanced economies as reported by the International
Monetary Fund: Canada, France, Germany, Italy, Japan, the United Kingdom, and the
United States meeting to discuss primarily economic issues. The European Union is
also represented within the G7.
Objective: The organization was originally founded to facilitate shared
macroeconomic initiatives by its members in response to the collapse of the
exchange rate 1971, during the time of the Nixon Shock, the 1970s energy crisis and
the ensuing recession.Its goal was fine tuning of short term economic policies among
participant countries to monitor developments in the world economy and assess
economic policies.
The next major G7 summit will be held in 2016 in Japan.
Courtesy - Wikipedia
Critically examine the geostrategic and geopolitical implications of Indias

membership to SCO.
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Is there still a role for the concept of balance of power in contemporary international
politics?
What is the role of India in the emerging global order? Can India become a World
leader?
Food subsidies still haunt India at WTO

What are Indias concerns?
India is concerned over the

delay
in
reaching
a
permanent solution to the
problem of dealing with
food procurement subsidies.
What
does
Agreement
Agriculture (AoA) say?
on
Under Agreement on Agriculture (AoA), developing countries can give agricultural

subsidies or aggregate measurement support (AMS) up to 10 % of the value of
agricultural production.
AMS has two components:
1. Product-specific or the excess of price paid to farmers over international price
or ERP (external reference price) multiplied by quantum of produce;
2. Non-product specific or money spent on schemes to supply inputs such as
fertilisers, seed, irrigation, electricity at subsidised rates.
Peace clause :
For calculating AMS, support on inputs to resource poor farmers was excluded
under the AoA. The rationale for this was that such support does not have any
trade-distorting effect. The same logic applied to product specific subsidies.
However, it was not explicitly incorporated in the agreement as the minimum
support price (MSP) given to farmers then was substantially lower than ERP,
resulting in negative product-specific AMS. Indeed, this position continued till 200406.
Thereafter, due to significant increase in MSP, things have changed. For instance, at
present for wheat, MSP at $226 per tonne (corresponding to Rs. 1,450 a quintal) is
higher than 1986-88 based ERP of $130 per tonne. In view of product-specific
subsidy going into positive territory and subsidies on agricultural inputs also
increasing substantially, there is a real risk of AMS exceeding the 10 % ceiling.
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How can this issue be resolved?

The problem can be solved by amending the AoA to
1. Update ERP to current level and
2. Exclude purchases from resource poor farmers for calculating product-specific
subsidies. This indeed is a permanent solution that India has been looking for.
Background:
At Bali ministerial in December 2013, developed countries had agreed to a peace

clause (exemption from penal action for violations)
Under the peace clause, if a developing country gives agricultural subsidies in excess
of 10 % of its agri-GDP, no member can challenge this until 2017. In the meanwhile,
WTO would look for a permanent solution to address the developing countries food
security concerns. This meant that while peace clause would go till 2017, there was
no guarantee that permanent solution would be in place by then.
The peace clause too came with a plethora of conditions, such as submission of data
on food procurement, stockholding, distribution and subsidies (including their
computation), etc. These also included establishing that subsidies are not trade
distorting which is nearly impossible to comply. In other words, even in the
interim, any member can challenge farm support measures.
Indias intervention: Why India resisted rich nations in WTO trade talks?
India recognised that Bali agreement was flawed. So, in the meeting of the WTOGeneral Council (GC) in Geneva (July 31, 2014), it insisted on a time bound action
plan to address the food procurement subsidy issue.
That was considered too demanding by US. However, the WTO-GC in its meeting
held on December 2014, approved extension of peace clause till such time a
permanent solution is put in place.
On the face of it, it might appear that India is in a safe zone. But, it is not so. This is
because the conditions appended to peace clause have not been dropped and the
search for a permanent solution has been deferred for an indefinite period. The
fear is of the US asking for all sorts of data to deny India, the benefit of peace clause
even in the interim.
Way forward:
At the next WTO meeting, to be held in Nairobi this December (2015), India should
insist on getting a permanent solution by (i) updating ERP to the current level and (ii)
excluding purchases from resource poor farmers for calculating product-specific
subsidies under AoA.
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The developed countries should recognise that a three-decade old ERP cannot be
compared with todays MSP in India to compute the current level of subsidy.
If resource poor farmers can get exemption on input subsidies, how can they be
denied exemption on product subsidies?
If, the developed countries do not agree to the above solution, then India should
insist on unconditional availability of interim peace clause till such time a
permanent solution is found. This must not be linked to any other issue in the
discussion such as industrial tariff or services.
What is Minimum support price (MSP) ?
Minimum Support Price (MSP) is a form of market intervention by the Government

of India to insure agricultural producers against any sharp fall in farm prices.
The minimum support prices are announced by the Government of India at the
beginning of the sowing season for certain crops on the basis of the
recommendations of the Commission for Agricultural Costs and Prices (CACP).
MSP is price fixed by Government of India to protect the producer - farmers - against
excessive fall in price during bumper production years. The minimum support prices
are a guarantee price for their produce from the Government.
The major objectives are to support the farmers from distress sales and to procure
food grains for public distribution. In case the market price for the commodity falls
below the announced minimum price due to bumper production and glut in the
market, government agencies purchase the entire quantity offered by the farmers at
the announced minimum price.
Courtesy - http://vikaspedia.in/
More about Doha round
The Doha Development Agenda, more often referred to as the Doha round trade
talks, is the latest cycle of negotiations under the umbrella of the World Trade
Organisation (WTO), the Geneva-based arbiter of global trade.
There have been nine rounds of multilateral trade talks since the end of the second
world war, but the Doha round is the first to focus on helping developing countries
join the global marketplace, and boost their economies as a result. The round was
launched in November 2001 and it's still not over.
What are they negotiating?
Broadly speaking, the goal of any trade talks is to make it easier for goods and
services to be bought and sold across national borders. In the case of the Doha
round, that means cutting import taxes (tariffs) on everything from wheat to cars to
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lingerie; restricting countries' use of subsidies for farmers and fishermen; lowering
taxes and regulatory barriers that affect the cross-border trade in services(such as
banking and consulting); negotiating new intellectual property rules on things such
as drugs and copyrighted works.
The Doha development round of trade talks is all but dead, and only two issues have
survived to merit serious consideration at Bali.
1. Trade facilitation - the harmonising and standardising of customs rules and
procedures that is an agenda of the global north to ease import practices across the
world. The developed countries have argued that, this will dramatically increase both
trade and employment worldwide, on the basis of spurious empirical exercises.
2. Agricultural subsidies - which affects the livelihoods and food security of more
than half the world's population. Unfortunately, some wealthy countries have
demanded acceptance of the former while refusing to make even the most obvious
adjustments to meet the latter.
Courtesy - http://www.theguardian.com/
All possible dimensions relating to the Doha issue have been covered comprehensively in
this article. So we advice you to read this article 2-3 times, this will give not only give you
complete analysis and multi-dimensional view point, but also bring in more clarity.
Also think over these issues:
India has faced criticism for stonewalling global trade deal. Is it justified?
Is WTO facing a crisis? Is WTO still relevant as a forum for conducting global trade
talks?
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ECONOMICS
Moving from Cash to Card payment: Why is it a win-win situation for all?
One of the ways to curb the flow of black money is to discourage transactions in
cash. In line with this agenda, the Union government has proposed a series of
measures aimed at moving towards a cashless economy, to improve the ease of
conducting transactions for individuals, build a transaction history to enable
improved credit access and financial inclusion, reduce tax avoidance and minimize
the impact of counterfeit money.
According to the Draft proposal
Incentives for Consumers:
Income tax rebates for consumers who use debit and credit cards to make their
payments, removing convenience fee, service charge, surcharge for card payments
at petrol pumps, gas agencies and for railway tickets.
Incentives for Merchants/Service Providers to move towards acceptance of cashless

payment mode:
Tax benefits, 1-2 % reduction in value added tax (VAT) could be considered on all
electronic transactions by the merchants
The government is also looking at reduction in the Merchant Discount Rate, which is
the rate charged to a merchant by a bank for providing debit and credit card
services.
Utility service providers could be advised to give a discount to users for small ticket
payments through e-payments, on the lines of BSNL, which provides an incentive of
1% of the billed amount if the payment is done through electronic mode.
The draft proposal for facilitating electronic transaction caters to all stakeholders,
from the consumer to the merchant, and even the banks. It is quite a prevalent
practice in several countries like Belgium, France, Canada and United Kingdom
where cashless payments account for over 80-90% of the total value of consumer
payments.
How black money circulation impacts social and economical aspects of a nation?
What are the other ways of curbing Black Money? What are the steps taken by the
government in this regard?
Other issues related to it like Money laundering, GAAR General Anti-Avoidance Rule
(GAAR).
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Capacity building in Banks and Non-Bank Institutions:
The Committee on Capacity Building in Bank and Non-Bank Institutions was set up by
the RBI in response to recommendations by the Financial Sector Legislative Reforms
Commission (FSLRC), a body set up in 2011 to reform the institutional and legal
structures of the financial sector.
The concept of capacity building is not just about training. It goes beyond it
includes human resource development, organisational development, institutional
and legal framework development.
Importance of Capacity-building in the Banking Sector:
Capacity building underlines the strategic importance of Human Resource

management practices both at the top and the bottom levels, requiring employees
to pass certification programmes prior to being promoted; designing banking
aptitude test and leadership development.
In the backdrop of recent financial (2008 financial crisis, Euro crisis etc.) crisis
worldwide due to the weakness in corporate governance, capacity building becomes
even more important at the board and top management levels.
The Indian Banking Regulation Act (1949) required only 51 % of the board of a
banking company to have specialist knowledge. With the new committee setup, RBI
is looking forward to include systematic induction, training programs and mandatory
certification of all directors.
Background :
The Financial Sector Legislative Reforms Commission (FSLRC) was set-up by

Government of India, Ministry of Finance in March 2011, to comprehensively review
and redraw the legislations governing Indias financial system.
According to the FSLRC, the current regulatory architecture is fragmented and is

fraught with regulatory gaps, overlaps, inconsistencies and arbitrage. To address
this, the FSLRC submitted its report to the Ministry of Finance on March 22, 2013,
containing an analysis of the current regulatory architecture and a draft Indian
Financial Code to replace the bulk of the existing financial laws.
This Commission is chaired by a former Judge of the Supreme Court of India, Justice
B. N. Srikrishna and has an eclectic mix of expert members drawn from the fields of
finance, economics, public administration, law etc.
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With regard to Regulators:
With respect to regulators, the FSLRC stresses the need for both independence and
accountability. The draft Code adopts ownership neutrality whereby the regulatory
and supervisory treatment of a financial firm is the same whether it is a private or
public company.
The draft Code seeks to move away from the current sector-wise regulation to a
system where the RBI regulates the banking and payments system and a Unified
Financial Agency subsumes existing regulators like SEBI, IRDA, PFRDA and FMC, to
regulate the rest of the financial markets.
FSLRC envisages a unified Financial Sector Appellate Tribunal (FSAT), subsuming the
existing Securities Appellate Tribunal (SAT), to hear all appeals in finance.
Are the recommendations made by FSLRC feasible? Especially with regard to having
a unified Financial Sector Appellate Tribunal (FSAT, subsuming the existing Securities
Appellate Tribunal (SAT), to hear all appeals in finance.
What are the weaknesses in corporate governance? How can it be improved? What
are the measures taken by the Government or RBI in this regard?
India among top 10 FDI recipients

(Note: Though this article is factual, it will be helpful in the Exam. One needs to state
important facts in Mains.)
According to the UNCTADin its World Investment Report 2015, India for the first
time has made it through top 10 recipients of foreign direct investment (FDI)since
2008.
Largest recipients of FDI
China became the largest recipient of FDI in 2014 with $129 billion inflows, followed
by Hong Kong (China) that received $103 billion and the U.S. with $92 billion. At 39%,
Hong Kong saw the biggest surge in inflows during the year.
Among the top 10 FDI recipients in the world, half are developing economies - Brazil,
China, Hong Kong (China), India and Singapore.
Position of India
India has jumped to the 9th rank in 2014 with a 22% rise in FDI inflows to $34 billion.
India was at the 15th position in the previous two years (2012 & 2013).
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But in terms of outward FDI flows, India has dropped out of the top 20 countries.
India is the only BRIC (Brazil, Russia, India and China) country that hasnt yet crossed
the $50 billion-a-year FDI mark.
In a development of significance to India, for the first time FDI inflows in to Chinas
services sector were greater than into its manufacturing sector.
Status of Other Countries

Due to economic sanctions from the Western countries, Russia has dropped out of
the top 10 as foreign investors exited its oil sector and other projects.
The report records the big surge in investments from China into every region of the
world, and especially in Indias neighbourhood. FDI inflows to Pakistan increased by
31% to $1.7 billion as a result of rising Chinese FDI flows in services. Further, Pakistan
will benefit significantly from the China-Pakistan Industrial Corridor and associated
Chinese investment in infrastructure and manufacturing in the overall context of
implementing the One Belt, One Road strategy.
In Sri Lanka, where China has become the largest source of FDI in recent years, FDI
flows from it rose. A China-Sri Lanka FTAwill be signed in June 2015. Moreover, if the
implementation of the China-led 21st Century Maritime Silk Route Economic Belt
gains ground, an increasing amount of Chinese investment will flow to Sri Lanka,
particularly in large infrastructure projects.
Tax havens
The report also found that developing countries lost $100 billion in tax revenues
owing to investors routing FDI through tax havens such as Mauritius, and has made a
strong case for multilateral action to address the issue.
Background:
What is FDI?
An investment made by a company or entity based in one country, into a company

or entity based in another country.
Foreign direct investments differ substantially from indirect investments such as
portfolio flows, wherein overseas institutions invest in equities listed on a nation's
stock exchange.
Entities making direct investments typically have a significant degree of influence
and control over the company into which the investment is made. Open economies
with skilled workforces and good growth prospects tend to attract larger amounts of
foreign direct investment than closed, highly regulated economies.
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Tax Haven
A country that offers foreign individuals and businesses little or no tax liability in a
politically and economically stable environment.
Tax havens also provide little or no financial information to foreign tax authorities.
Individuals and businesses that do not reside a tax haven can take advantage of
these countries' tax regimes to avoid paying taxes in their home countries.
Tax havens do not require that an individual reside in or a business operate out of
that country in order to benefit from its tax policies.
Courtesy - Investopedia
What are the advantage and disadvantages of FDI, especially with reference to
India?
What do you understand by the term hot money? Its merits and de-merits.
Allowing 100% FDI in key sectors like Railways, and increasing FDI from 26% to 49%
in Defence, Insurance - is it beneficial for India?
Banks allowed to borrow from global institutions
With the objective of making the funding process easier, Reserve Bank of India (RBI)
has allowed banks to borrow from global multilateral financial institutions for
general banking business. They can do so without seeking the central banks
approval.
However such borrowings should not be for capital augmentation and would be
subject to the applicable prudential norms.
With a view to providing greater flexibility in seeking access to overseas funds, it has
now been decided to permit AD Category-I banks to borrow from
international/multilateral financial institutions without approaching Reserve Bank
for a case-by-case approval.
Such institutions include international/multilateral financial institutions of which
Government of India is a shareholding member or which have been established by
more than one government or have shareholding by more than one government and
other international organisations
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World economy may be slipping into 1930s Great Depression problems: RBI's Raghuram
Rajan
Raghuram Rajan, RBI Governor has expressed concerns over world being dragged
into the situation like Great Depression of 1930.
His reasoning is based on unconventional monetary policies of the US Federal
Reserve and the European Central Bank. He further said, their zero lower-bound
interest rates are distorting markets and countries are turning protectionist.
What is Great Depression?
The Great Depression was a severe worldwide economic depression in the 1930s.
The timing of the Great Depression varied across nations; however, in most
countries it started in 1929 and lasted until the late 1930s. It was the longest,
deepest, and most widespread depression of the 20th century.
Worldwide GDP fell by 15% from 1929 to 1932. In the 21st century, the Great
Depression is commonly used as an example of how far the world's economy can
decline.
IASbabas view
The Great Depression started in the United States after the stock market crashed in
October 1929 and then gradually spread to other parts of the world. This led to a
contraction of economic growth and huge unemployment. Countries tried to solve
this problem by devaluing their currencies against other currencies in order to
increase their international competitiveness.
By devaluing a currency exports become competitive and imports become
problematic or say expensive. Devaluation also means compelling people to buy
national goods over international products. This helps businesses within a country
and hence, creates economic growth.
But problem aggravates because this devaluation can be started by anyone. Why
America only? I too have right to do so- Japan, EU etc IASbaba is pointing to US
Quantitative Easing and EU crisis.
This was the same situation aftermath of Great Depression.
And it is this currency war that Dr Rajan is pointing to and worried about. In the
aftermath of the financial crisis which started in September 2008, countries have
printed money in an effort to revive economic growth.
The idea of this money printing was to achieve some inflation and lower interest
rates. At lower interest rates people are likely to borrow and spend more money,
and in the process help local businesses and economic growth. This has led to
inflation because there is more money than demand.
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This explains the statement of Dr Rajan "The question is are we now moving into
the territory in trying to produce growth out of nowhere we are in fact shifting
growth from each other, rather than creating growth."
Why Rajan compared the current global economic scenario to the Great Depression
of late 1929 and the 1930s? Think
How can present situation of global financing mechanism be solved?
Do you think a universal banking regulatory mechanism is need of the hour?
Can IMF play a role of global regulator?
India ranked best for investment- Factual news

A ranking of destinations for attractiveness to foreign investors has placed India at the top
among 110 countries. China has secured the 65th position and the U.S. is at the 50th. In the
2014 index, India was at the sixth
position and Hong Kong was number
one.
Basis of Ranking
The ranking is based on an index for
baseline profitability that assumes
that three factors affect the ultimate
success of a foreign investment:
1. How much the value of an
asset grows;
2. The preservation of that value
while the asset is owned;
3. And the ease of repatriation of
proceeds from selling the
asset.
1. Prepare about the Ease of Doing Business scenario of India. Jot some readymade
points for your reference. The news will change but pointers (facts) will less variably
be same.
2. What are the other measures India needs to attract foreign investment?
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Concerns over risk in Algorithm trading
Algo trading was introduced in India in April 2008 with the advent of direct market
access (DMA).Financial regulators are alarmed by the increasing clout of algorithm
trading or high frequency trading (HFT) and fear that it could result in a systemic
failure.
The Financial Stability Report (FSR) June 2015, aired serious concerns on algorithm
trading or algo trading leading to stock price manipulation as well as alienate retail
or small investor from stock markets.
What is Algorithm Trading?
Algorithmic trading (automated trading, black-box trading, or simply algo-trading) is

the process of using computers programmed to follow a defined set of instructions
for placing a trade in order to generate profits at a speed and frequency that is
impossible for a human trader.
The defined sets of rules are based on timing, price, quantity or any mathematical
model. Apart from profit opportunities for the trader, algo-trading makes markets
more liquid and makes trading more systematic by ruling out emotional human
impacts on trading activities.
Benefits of Algo-Trading
Trades executed at the best possible

prices
Instant and accurate
trade order placement
(thereby high chances
of execution at desired
levels)
Trades timed correctly
and instantly, to avoid
significant
price
changes
Reduced transaction costs
(see
the
implementation
shortfall example below)
Simultaneous automated
checks
on
multiple
market conditions
Reduced risk of manual errors in
placing
the
trades
Back-test the algorithm, based on available historical and real time data
Reduced possibility of mistakes by human traders based on emotional and
psychological factors
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What Algo-Trading Report says?
The report is a collective assessment of a sub-committee of the Financial Stability

and Development Council, which includes all financial market regulators.
Interestingly, the reports in the past have also emphasised the risks involved with
HFT.
While volumes have increased sharply in the cash segment of stock markets in India,
there is a concern whether markets could be rigged through these trades. Algo
trading has undergone a substantial change with the development in information
processing and communications technologies over the last two to three decades.
Role of SEBI in Algo-Trading?
Though these trades are monitored by the Securities and Exchange Board of India
(SEBI), which is mandated to protect the interests of small investors, the FSR report
expressed apprehensions that they could result in market manipulation.
SEBI keeps a close watch on the developments to formulate appropriate policies
based on recommendation by the Senior Supervisors Group (SSG), a group of 10
supervisors which issued a report on April 30, 2015 that assesses risks associated
with algorithmic trading.
Do you think that the key is to check whether the system is being abused as a
manipulative device or an innovation?
Are Indian markets are matured enough to embrace algo or high frequency trades?
India is now a $2-trillion economy

Indias GDP crossed the $2-trillion mark in 2014, according to data released by the World
Bank in Washington late on
Wednesday. After taking 60 years
to reach the $1-trillion mark, India
added the next trillion in just
seven years.
Is India in the list of Fastest
Growing Major Economy?
Indias growth rate, at 7.4

per cent in 2014, makes it
the
fastest
growing
major economy along with
Chinas, which is a
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whopping $10.4 trillion in size.

The Indian economy, at $2.06 trillion, has almost doubled in size since the financial
crisis hit the country in 2008, and has more than quadrupled from the start of this
millennium.
What does World Bank Data says?

The World Banks data on gross national income per capita the total value added
by all producers within the country, plus income received from citizens working
abroad, divided by the population of the country show Bangladesh, Kenya,
Myanmar, Tajikistan, Mongolia, Paraguay, Argentina, Hungary, the Seychelles and
Venezuela have shifted their income categories for the better.
For example, Bangladesh, Kenya, Myanmar, and Tajikistan are now middle income
countries from being low income nations.
IAS BABAS Views
Little Research from Indias average annual growth rate over the last decade of 8.9
per cent and found that it would become an upper middle income country ($4,126$12,735) in 2026, a little more than a decade from now.
This will put it in the category China occupies now.
Connecting the dots
Write a note on different income categories

How is development progress of a country measured?
RBI sets up panel on financial inclusion

RBI has set up a committee on Financial
Inclusion under the chairmanship of
Deepak Mohanty, Executive Director of
RBI.
What would the Panel work upon?
The panel would suggest a

`monitorable
medium-term
action plan for financial
inclusion in terms of its various
components
such
as
payments, deposit, credit, social
security transfers, pension and
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insurance. The committee would review the existing policy of financial inclusion,
including supportive payment system and customer protection framework.
It would also study cross-country experiences in financial inclusion to identify key
learning, particularly in the area of technology-based delivery models.
With regard to Rural Inclusion :
It would look into group-based credit delivery mechanisms

Consumer protection and financial literacy
Delivery mechanism of financial inclusion encompassing both households and small
businesses.
More about Financial Inclusion
Financial inclusion is the delivery of financial services at affordable costs to vast

sections of disadvantaged and low income groups (For example: no frill accounts )
Why Financial Inclusion is important in our country?

What are the steps taken by Government of India and RBI in this regard?
RBI inks pact with Sri Lankas Central Bank
Recently, the Reserve Bank of India (RBI) signed a currency swap agreement with
the Central Bank of Sri Lanka.
Under this agreement, Sri Lanka can draw a maximum of $1.1 billion for a period of
up to six months.
The agreement is in addition to the existing framework on currency swap
arrangement for the SAARC member countries, an arrangement by which SAARC
members can draw currency $100 million-$400 million, with a total limit of $2 billion,
from an RBI financing facility set up for this purpose.
What do you understand by Currency Swap?

A swap that involves the exchange of principal and interest in one currency for the
same in another currency. It is considered to be a foreign exchange transaction and
is not required by law to be shown on a companys balance sheet.
For example, suppose a Indian-based company needs to acquire U.S. dollars and a
U.S.-based company needs to acquire Indian rupee. These two companies could
arrange to swap currencies by establishing an interest rate, an agreed upon amount
and a common maturity date for the exchange. Currency swap maturities are
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negotiable for at least 10 years, making them a very flexible method of foreign
exchange.
Courtesy- Investopedia
ADVANTAGES of having currency swap agreement
Currency swaps have emerged as an important derivative tool after the global
financial crisis of 2008 to hedge the exchange rate risks.
Currency swap agreements will help countries during periods of tight liquidity or
balance of payments and liquidity crises.
Borrowing under unforeseen economic situation : In a currency-swap arrangement,
India will be able to use the reserves of the country with which it has entered into
an agreement should it need foreign exchanges. This could be dollar line or in the
currency of that country. The arrangement allows India access to US dollar in an
unforeseen economic situation from Bank of Japan, which it can return at a later
date.
Stability to the Rupee (Indian context) through a swap, a country can boost its
dollar or other hard currency reserves if it faces speculative pressure on its currency.
It would help in increasing exports and bring down trade deficit, which is putting
pressure on the rupee. For example A dollar swap arrangement, it further said,
would help India in supporting the rupee, which has depreciated significantly against
the US currency over the past few months due to various global and domestic
factors.
What are the advantages and disadvantages of Currency Swap agreements?

A general idea on the countries with which India has signed Currency Swap
Agreements; How are these agreements helping India?
Will the agreement bring stability in the global market? Yes or No. Justify.
Clipping RBIs wings: On deciding monetary policy
Government proposes to take away RBI governors veto power in deciding monetary
policy
Revised draft Indian Financial Code proposes to give RBI governor an additional vote
in case of a tie in the monetary policy committee meeting
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What does the new draft says?
The MPC will be chaired by the RBI governor

It will also comprise a member of the RBI board and an RBI employee
Decisions at MPC meetings will be taken by a majority vote of the members present
and voting
The previous draft had suggested the RBI governor have the power to supersede any
MPC decision
Each member of the MPC will have to state the reasons for voting in favour of or
against proposed resolutions
What is the proposed shift in the structure?

At present, the monetary policy is framed by the central bank after factoring in the
recommendations of an expert advisory committee, assessing multiple economic
indicators in domestic and global markets and, finally, consulting with the finance
minister on the broader policy direction.
The final decision, however, rests with the governor.
But, under the proposed framework, RBI governor will be one of the several
members of the committee and the government will dictate the policy.
In effect, the power to decide the countrys monetary policy will be shifted from an
independent, credible institution to the political interests of the government, for
whom monetary policy will then be among the many tools under disposal to work
operate in line with its political agenda.
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What are the Possible Conflicts of the new proposal?

This will give room to major conflict of interests in the functioning of the MPC. For
instance, a government-controlled MPC can push for a rate cut, even if the RBI is not
fully convinced with the signals emanating from the inflation-front.
The RBI will then be forced to sing the same tune of the finance ministry.
This can put the economy in serious trouble in the long term.
IAS BABAs View
Sidelining the central bank according to political whims and fancies of politics, the
government will risk making Indias economy a black spot in the eyes of rest of the
world with no credible, independent monetary policy framework.
An RBI, with little control on the monetary policy, will not be a favorite in the eyes of
global investors and international rating agencies, which would do no good for India,
which is aspiring to become a global economic power.
Is the Government undermining the RBIs Independence?
Write a note on Urjit Patel committee recommendation on MPC.
Centre notifies rules for valuation of black money stashed abroad

Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of
Tax Act, 2015, the value of an overseas bank account will be the sum of all deposits
made in the account since its opening.
The Centre has notified the rules for calculating overseas income and assets under
the stringent foreign black money law that came into force on July 1, 2015.
What are the new notified rules?
The law provides for a total of tax and penalty of 120% on the income or assets held
abroad after the expiry of a one-time 90-day compliance window, which ends on
September 30.
The rules notified provide for the way foreign income and assets would be valued for
calculation of tax and penalty both for the compliance period and beyond its expiry.
Any income or asset declared during this period, which ends on September 30,
would attract a total of 60 per cent tax and penalty, without penal provisions like jail
term. They will have time till December 31 to pay the levies.
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What is the role of RBI?

The rules said the Reserve Banks reference rate on the date of valuation should be
used for converting the value of foreign assets and income into Indian rupee.
Where the fair market value of an asset is determined in a currency other than one
of the permitted currencies designated by the RBI, they should be converted into
U.S. dollars on the date of valuation as per the rate specified by the central bank of
that country.
Thereafter, the value in dollar would be converted into rupee.
Is Foreign Black Money Law Stringent?
What are the Features of the Black Money (Undisclosed Foreign Income and Assets)
and Imposition of Tax Act, 2015?
Write a note on Limited Liability Partnership (LLP).
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No immunity for wealth generated from graft

The advantage of declaring foreign assets under the compliance window in the new black
money law will not be available to those who were served notices by tax authorities before
July
Who are not eligible?
Those persons whose cases are pending before an appellate authority will also not
be eligible for the one-time offer, the Ministry said in FAQs on the new Black Money
Act.
The declarant is not entitled to re-open any assessment or reassessment made
under the Income Tax Act, it clarified.
What are the other Important Provisions of Black Money Act?
Declarations by persons against whom the government has prior information will be
dealt with under the Income Tax Act and not under the stringent black money law.
The one-time 90-day compliance window is being provided to foreign asset holders
to come clean under the new law.
Holders of foreign assets availing the compliance window will have to pay 30 per
cent tax and an equivalent amount of penalty by December 31.
How the PMLA linked to this?
The government will give immunity from prosecution under FEMA, Prevention of
Money Laundering Act and four other laws to persons declaring undisclosed foreign
assets under the compliance window.
The offence of wilful attempt to evade tax will also not be an offence under the
Prevention of Money Laundering Act (PMLA).
Disclosures made will enjoy immunity from prosecution under the Income-tax Act,
Wealth Tax Act, FEMA, Companies Act and Customs Act.
In what way black money act is related to Prevention of Money Laundering Act?
Write a note on Black Money Compliance Window.
Where does the wealth generated from corruption go?
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Centre appoints arbitrator for Vodafone tax case
The government has appointed international lawyer Rodrigo Oreamuno to arbitrate

on its behalf in the Rs.20,000
crore tax case with the UK
telecom major Vodafone.
Costa Rica-based Oreamuno
replaces former Chief Justice of
India R C Lahoti who had in May
recused himself.
Whats Vodafone tax case?

The case concerns a tax dispute
between the Vodafone group
and the Indian income tax (IT)
authorities over the acquisition
by Vodafone
International
Holdings BV (VIH) (part of the
Vodafone group and a company
resident for tax purposes in the
Netherlands) of the entire share
capital of CGP Investments
(Holdings) Ltd (a company incorporated in Hong Kong but resident for tax purposes
in the Cayman Islands) on February 11, 2007 for about $11 billion (Rs 55,000 crore)
from Hutchison Telecommunications International Ltd (HTIL).
What is the Verdict of Supreme court?
The Supreme Court judgment makes it a point to emphasize that even a subsidiary
has an identity that is distinct from its parent holding company.
The second interesting aspect of the Supreme Court judgment is that it argues for a
"look at" test in which tax authorities consider the entire Hutchison structure as it
existed, "holistically", at its face value, and not adopt a "dissecting approach".
In other words, authorities should not ask whether the transaction is a tax avoidance
method, but apply the "look at" test to ascertain its legal nature
The Supreme Court judgment in the Vodafone case argues that the 'corporate veil'
cannot be pierced as long as there was no intention to avoid taxes.
IAS BABAs View
Framed in narrow legal terms and the limiting framework of the so-called welfare
nation-states in the times of globalisation, it has become a continuously losing battle
for the people at large.
This tide can be turned only by a clear realisation that public good and modern
corporations are inversely proportional to each other and this debate needs to be
taken much beyond immediate tax and legal issues.
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How and why corporations in India manage to undermine the law and the public
good for the sake of private profit?
Write a note on
1. DTAA
2. FDI
3. FII
4. IT Act of India
Govt. looks to simplify investment regime
Foreign direct and portfolio

investments will be clubbed
together with investments by
non-resident Indians (NRIs)
under a composite sectoral cap
in a decision taken by the
cabinet to simplify Indias
investment regime and give
companies greater leeway in
choosing how they plan to raise
capital.
Good News for Whom?
Good news for multi-brand

retail, pharma.
Cabinet approved a proposal to
scrap the distinctions among
different types of overseas
investment by shifting to a
single composite limit.
What is the Significance of this

Simplification?
The new policy also means portfolio investment up to 49 per cent will not need
government approval or have to comply with sectoral conditions as long as it doesn't
result in transfer of ownership and/or control of Indian entities to foreigners.
This will immediately benefit sectors such as multi-brand retail and pharmaceuticals
that do not have sub-limits within the overall limit and will henceforth not need
approval for increasing portfolio investment up to 49 per cent of the total holding.
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What is composite foreign investment caps?
The composite foreign investment caps will now encompass all types of foreign
investments like foreign direct investment (FDI), foreign institutional investors (FIIs),
foreign portfolio investors (FPIs), non-resident Indians (NRIs), foreign venture capital
investors (FVCIs), qualified foreign investors (QFIs), limited liability partnerships
(LLPs) and depository receipts (DRs).
Following this, Indian companies can now have just two kinds of capital i.e.; Indian
and foreign,ending the categories that made the FDI policy complicated.
1.
2.
3.
Do the composite caps have potential to speed up foreign exchange flows in India?
Write a note on
Foreign currency convertible bonds (FCCBs)
Qualified foreign investors (QFIs)
Limited liability partnerships (LLPs)
Goods and Services Tax (GST) legislation and Issues
The government is preparing model draft legislations to implement the proposed

national goods and services tax (GST).
The three legislations - Central GST (CGST), State GST (SGST) and integrated GST
(iGST) - will have to be approved by the respective legislatures for nationwide rollout
of the single rate GST.
Why has the central government introduced GST?

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According to current tax structure, tax on the goods and services is levied at different
points from manufacturing to retail outlet. This increases the price of the service.
On the other hand GST will be levied only at the destination point and will be backed
by the robust IT infrastructure.
The GST will subsume all indirect taxes levied on the goods and services by the state
and the central government.
Under the GST the taxation burden will be divided equitably between manufacturing
and services, the tax rate will be low.
The GST will broaden the tax base and will minimize the exemptions.
What are the PROS of GST?
GST will replace a plethora of indirect taxes like central and state excise, VAT, Octroi,
Service tax and so on with a single tax.
This will simplify tax compliance for businesses and lead to greater efficiency in tax
administration. It will unify the entire country into one single market with a uniform
rate of indirect tax for most goods and services.
In the long run, this is expected to boost Economic Growth.
What are the CONS of GST?
There are no real cons, but in short run, come states particularly those that are
major producers of goods and services may witness a drop in revenues as their share
in the GST collection may not be enough to offset the loss from doing away with
state levies.
Thats why states are proposed to be compensated for potential loss.
What Points are causing the stalemate?
The states want compensation for the revenue they will lose. They have demanded
to insert the clause on compensation into the bill.
States demand that fuel and liquor to be put out of the GST.
States demand that entry tax should be kept out of GST.
Why some states are against the GST bill?
The GST would result in another un-understandable and much abused formula of
sharing between the Centre and the states like the Gadgil-Mukherjee formula.
And the possibility of richer states, which are contributing a larger chunk to indirect
taxation (which previously would have gone into their state kitties), opposing doles
and special payments out of the GST collections to specific states is distinct and
would also be a valid objection.
The autonomy of a state to face an economic challenge or initiate a new social
welfare scheme will be severely strained under a GST regime.
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IAS BABAs View
GST is good for the country.

Most problematic issues have been ironed out with the states.
Government and Think Tanks must rise above partisan politics to do whats right.
What are the salient features of the Constitution (One Hundred and Twenty-Second
Amendment) Bill, 2014?
How will the implementation of the GST boost the Indian economy?
Labour Reforms and Challenges involved
Underlining the historical

role
of
tripartite
mechanism for enactment
of labour laws, the Indian
Labour Conference said that
labour laws need to be
relooked and updated in a
time-bound manner.
But said that the welfare
and rights of workers,
sustainability of enterprises
and job creation and
industrial peace must be
taken into account
What is the Tripartite Mechanism?

The term 'tripartism' is used in the sense of a process (of cooperation) whereby
governments
consult and involve representatives of employers and workers in the formulation ofSocioeconomic policies at the national and industry levels and in particular, on the Legal
framework of labour relations and labour-related policy;
ensure that the social partners' views and concerns are reflected in the policies and laws
formulated;
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provide the social partners with opportunities to contribute to socio-economic progress,

and thereby enable them to fulfil a wider role than one of only providing direct services to
their members in relation to matters covered by the employment relationship.
The tripartite arrangements - both formal and informal - that may be adopted (consultation
fora or bodies) are the means which give effect to the basic objectives of tripartism.
What gives robust structure to Labour Relations?
Both industry and trade union representatives should welcome the reported
proposals to introduce a provision in the draft labour code making it mandatory for
factories to recognise a trade union as the "principal bargaining agent" for settling a
dispute or engaging in a discussion with employers.
This provision, together with a formally specified threshold of 10 per cent of workers
or 100 workers (whichever is less) for union registration, is likely to impart a more
robust structure to labour relations, currently bedevilled by a multiplicity of trade
unions and arbitrary managements.
Other suggested reforms should also be taken forward.
What is the Core Economic Issues Involved?
The core economic issues are varied: the capital intensity of Indian industry, the
employment elasticity of economic growth, the exchange rate strategy, the level of
skills on offer in the labour market, the ease of doing business, the structural
impediments faced by informal enterprises and much more. Indian industry seems
to believe that all that matters is waving a magic wand called labour market reforms.
The problem is far more complicated.
IAS BABAs View
Making the Indian labour market less rigid is thus not just about the freedom of big
business houses to fire people at will.
Nor should it be restricted to such an outcome.
The real reason to push ahead with labour market reforms is that these reforms
should interact with changes in other areas of industrial regulation so that factory
employment begins to rise in tandem with output.
Can India absorb the large number of new entrants to its labour market with
adequate reforms?
Does the draft Labour Code on Industrial Relations Bill 2015 would correct serious
legacy problems?
Write a note on Indian workers in Unorganized sector
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Why is gold falling, and where is it headed?

When the Gold prices are in rise generally?
Gold prices have gone up whenever

public confidence in the dollar
the worlds reserve currency has
suffered erosion.
This is hardly the case today, with
the US economy recovering from a
recession even with low inflation
defying dire predictions of an
imminent dollar collapse.
The best proof of it is the US dollar
index, which measures the value of
the greenback relative to a basket
of six other global currencies.
The dollar index (base: March 1973
= 100) is currently close to 98,
compared to the low of 72.93 on
April 29, 2011 when the American economy was still sputtering.
A strong dollar has made the world somewhat less pessimistic about fiat currencies,
while reducing the allure of gold as a safe haven asset.
The dollar index and gold prices generally move in opposite directions.
What about India? Why are prices falling here?
With a strong rupee in combination with relatively low inflation making the yellow
metal not a very good investment. (The huge outflows from gold exchange-traded
funds would testify to this.)
Gold ultimately has very little utility other than being raw material for jewellery and
a store of value (though perhaps not over the long run).
Nor does it generate any income unlike rentals from land, dividends from shares
or interest from bonds.
But can the shiny metal rally again?

And as far as India goes, a big negative for gold is diminished rural purchasing power.
Given that an estimated two-thirds of Indias gold demand comes from rural areas,
lower crop prices and a not-so-good monsoon so far is not good news for bullion
traders and jewellers.
But it isnt bad for the countrys balance of payments.
Gold imports peaked at $ 55-56 billion in 2011-12 and 2012-13 and, along with oil,
were the primary source of current account deficits, before falling to $ 29-34 billion
in the last two years. And they could fall further this year.
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Write a note on reason behind falling prices of gold, oil and copper.
Why have gold prices crashed to more than five-year lows globally, and to near fouryear lows in India?
Time to abolish the MRP

The fixed maximum retail price is an archaic and dysfunctional mechanism that hurts both
retailers and the consumers it seeks to protect.
What is MRP?
The maximum retail price (MRP) that is printed on all packaged commodities that
consumers purchase was introduced in 1990 by the Ministry of Civil Supplies,
Department of Legal Metrology, by making an amendment to the Standards of
Weights and Measures Act (Packaged Commodities Rules) (1976).
It was meant to prevent tax evasion and protect consumers from profiteering by
retailers.
Why MRP system in India is remarked as Dysfunctional?

1. The MRP applies only to commodities and not services.
2. Most essential commodities are not packaged and, thus, do not fall under the MRP
rule.
3. Even packaged commodities are not usually sold at MRP. It is not uncommon to pay
a price much higher than the MRP
4. Many shops charge for services that are not covered by the MRP,
5. Producers sometimes print an MRP so ridiculously high that the product can be sold
at an actual price that is up to 90 per cent discounted.
Do retailers have right to sell his product at any price?
Just as a consumer has the right to buy a product at a particular price, the retailer
should have a right to sell his product at any price.
If he charges a higher price, the customer is free to go to another store.
Retail density in India is high enough for the market mechanism to function properly,
as the OECD 2007 Report on India notes.
Even in places that do not have high retail density, if retailers charge very high prices
in the absence of an MRP, other retailers will soon enter the market and the
resulting competition will eventually reduce prices.
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IAS BABAs View
While the intention to protect consumers in a pre-liberalised India can be lauded,

continuing the system today does not make any sense.
The practice of MRP in India is unique, archaic and dysfunctional.
India is perhaps the only country in the world to have such a system, where it is
punishable by law to charge a price higher than the printed maximum retail price.
In most countries, the system of having a universally enforceable printed price is
viewed as being akin to price fixing and is thus prohibited as being anti-competitive.
Do you agree with the MRP rule "the greatest good of the greatest number"?
Write a note on the pitfalls of following the MRP system in India?
MAT: Shah panel says no relief for FIIs
The much-awaited AP Shah Panel report on levy of Minimum Alternate Tax (MAT)
on foreign institutional investors has not recommended any relief to FIIs. This has
drawn flak from overseas portfolio players and the Finance Minister as well.
Depending on the verdict of The Castleton case which is slated to be heard by the
Supreme Court on August 4, 2015 government will take decision.
Earlier in 2012, the Income Tax department had sent notices to 68 foreign
institutional investors (FIIs) demanding Rs 602 crore as MAT dues of the previous
years. Following which a Mauritius-based Castleton had approached the Supreme
Court against a ruling by the Authority for Advance Rulings (AAR), which had said the
company would have to pay MAT on capital gains arising from sale of shares from a
Mauritius entity to a Singapore one.
Crux of the issue is whether the government will waive MAT prior to April 2015. It
should be noted that, FIIs would not be subjected to MAT for transactions
undertaken post April 1, 2015
Everything that you need to know about Minimum Alternate Tax (MAT):
Companies find various loop-holes to avoid paying income tax by using several exemptions.
MAT is a way of making companies pay a minimum amount of tax.
Direct tax
Direct tax in lay terms is a tax on income that you have to pay, it cannot be shifted to
others. Some of its forms include income tax, wealth tax, etc. Direct taxes are
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directly levied on individuals, corporations and organisations and collected by way of

income tax returns to be filed each year.
One such direct tax is the minimum alternate tax (MAT).
Indirect tax
An indirect tax is collected by an intermediary (such as a retail store) from the person
who bears the ultimate economic burden of the tax (such as the customer). Indirect
taxes include sales tax, service tax, value-added tax, commodity transaction tax
and securities transaction tax among others.
Minimum alternate tax (MAT)
MAT is a way of making companies pay minimum amount of tax.

Exclusion: It is applicable to all companies except those engaged in infrastructure
and power sectors; Income arising from free trade zones, charitable activities,
investments by venture capital companies are also excluded from the purview of
MAT.
However, foreign companies with income sources in India are liable under MAT.
In the past, a large number of companies showed book profits and declared huge
dividends to their shareholders but were not paying any tax, as they reported either
nil or negative income under provisions of the Income-Tax Act . These companies are
popularly known as zero tax companies.
The Indian Income-Tax Act allows a large number of exemptions from total income.
Besides exemptions, there are several deductions permitted from the gross total
income.
The result of such exemptions, deductions, and other incentives under the IncomeTax Act in the form of liberal rates of depreciation is the emergence of zero tax
companies, which in spite of having high book profit are able to reduce their taxable
income to nil.
In order to bring such companies under the Income Tax net, Section 115JA was
introduced from assessment year 1997-98. Now, all companies having book profits
under the Companies Act shall have to pay a minimum alternate tax at 18.5%.
For example: Suppose book profit before depreciation of a company is Rs. 8 lakh.
After claiming depreciation and other exemptions, gross taxable income comes to
Rs. 4 lakh. The income tax applicable Rs. 1.5 lakh at a rate of 30% = Rs. 45,000 .
However, if MAT is applicable then company would be paying a tax of Rs. 1.48 lakh
(Rs. 8 lakh at 18.5%).
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Will the retrospective amendment to the Income Tax Act, discourage foreign
investors investing in India?
Link this with the Vodafone Tax issue. What was the issue ? How was it resolved?
Are the corporates undermining the law of the country and the public good for the
sake of private profit?
Government releases Socio-Economic and Caste census
The percentage of Scheduled Caste (SC) households paying income tax was 3.49 per
cent while Scheduled Tribe (ST) tax-paying rural households were mere 3.34 per
cent, the Socio Economic and Caste Census 2011 said.
Just 4.6 per cent of all rural households in the country pay income tax while such
households with salaried income are close to 10 per cent, the first Socio-Economic
and Caste Census released in eight decades.
What is Socio-Economic and Caste Census?

The SECC has the following three objectives:
To enable households to be ranked based on their Socio- Economic status. State

Governments can then prepare a list of families living below the poverty line
To make available authentic information that will enable caste-wise population
enumeration of the country
To make available authentic information regarding the socio economic condition,
and education status of various castes and sections of the population.
What is the use of this Census?
The enormity of schemes and reaches that all governments have, this document will
form a basis of helping us target groups for support in terms of policy planning,
The document will reflect the reality of India and be a very important input for all
policymakers both for the central and state governments.
It is also a document which contains various details ... who are the ones who have
qualitatively moved up in terms of life, which are the ones both in terms of
geographical regions, social groupings which in future planning needs to be targeted
Write a note on Housing and Urban Poverty Alleviation

Is respondent based Input like SECC is really reliable?
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30 p.c. of rural households landless

Nearly 19 per cent of Indias rural population in 2011 lacked at least one of seven socioeconomic parameters used to estimate deprivation that include source of income, the
presence of an able and literate adult and quality dwelling.
What are the socio economic Indicators?
Socio-economic indicators provide a

background to understanding the
health scenario in a country.
Socio-economic indicators provide
data on education, gender, poverty,
housing, amenities, employment
and other economic indicators.
These indicators for the country as
well as states will help in identifying
the linkages between socioeconomic
indicators
and
achievement of health goals.
What does the SECC Report says?
According to the SECC data, 31.26 per cent of the total rural households can be
broadly identified as poor where the main earner has an insecure and uncertain
source of income and the household lives in a one room house with kutcha walls
and kutcha roof.
As many as 74.49 per cent rural households survive on a monthly income of less than
Rs 5,000 of its highest earner.
Five percent of rural households derive salaries from government jobs, 1.11 per cent
from public and 3.57 per cent from private sources.
Overall, 94 per cent of households own houses, but only 17.70 per cent of SC and
10.50 per cent of ST households have their own houses.
Only 4.58 percent of rural households pay income tax.
IAS BABAS Views
Although it is called the Socio Economic and Caste data, the release so far has been
of only the socio-economic data.
The detailed caste-based data has not yet been released.
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This census measures deprivation on the basis of what a household does not have as
against the Planning Commissions poverty estimates that looked at the income an
individual does have.
Is internal poverty estimate and the Rangarajan committee report the same?
Write a note n Tendulkar Methodology.
Discuss Multidimensional Aspects of Poverty in India
Poverty estimation in India

Recently, the government released data from the Socio-Economic Caste Census (SECC)
2011. There has been comment that hereafter, we need not have consumption-based
poverty estimates using NSS (National Sample Surveys) data. It is thought that SECC data will
alone be enough to estimate poverty and deprivation.
What is the difference between NSS and SECC?
NSS consumption-based poverty estimates are still relevant.

SECC-based estimates are important, but no substitutes for NSS-based poverty
ratios.
Estimates based on SECC and NSS data have different purposes.
What are the different studies on poverty measurement?
The methodology for the estimation of poverty used by the erstwhile Planning
Commission was based on recommendations made by various expert groups.
The Rangarajan expert group has gone back to the idea of separate poverty line
baskets for rural and urban areas, unlike the Tendulkar Committee, which took
urban poverty as a given and used it as the common basket for rural and urban
households.
What is the present basis for poverty line?
Based on the analysis presented in the expert group report, monthly per capita
consumption expenditure of Rs 972 in rural areas and Rs 1,407 in urban areas is
treated as the poverty line at the all-India level.
Assuming five members for a family, this will imply a monthly per household
expenditure of Rs 4,860 in rural areas and Rs 7,035 in urban areas.
The expert group estimates that 30.9 per cent of the rural population and 26.4 per
cent of the urban population were below the poverty line in 2011-12.
The all-India ratio was 29.5 per cent.
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IAS BABAs View
Poverty estimates provide the proportion and size of the poor population and their
spread across states and broad regions.
But they cannot be used for identification of the individual poor, which is necessary
to ensure that the benefits of programmes and schemes reach only the deserving
and targeted group.
What is the rationale for having poverty estimates based on consumption estimates?
What are the various Income and non-income indicators of poverty?
How bad is the SECC data?
The Socio Economic and Caste Census (SECC) 2011 data, released partially by the
central government, has shown worrying levels of rural poverty.
The NDA has signalled that this data would be the basis for targeted allocation of
entitlements under various poverty alleviation programmes.
Several economists and census experts, however, worry that the SECC data itself
might be unreliable or incomplete.
What is missing in it?
The final data is still missing for over half the districts, and the draft list has gaps and
inaccuracies," says economist Jean Dreze.
Of 640 districts covered, data for 628 is in a draft list and only 277 in the final list.
Of the 35 states and Union territories, 21 are yet to publish their final list.
The PDFs released online are of the draft list, with missing households or even
hamlets, and sometimes handwritten information that may or may not be in the
digitised dataset.
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It is hard to judge
the integrity of
the data until
samples of the
dataset
are
released
for
independent
scrutiny."
Why do we
authentic data?
need
It's
used
for
targeted
allocation
of
entitlements
under
various
programmes.
Welfare schemes
flounder because
they are scattershot. As a result,
sections of society
who don't need a
leg-up end up
cornering welfare, at the cost of other less politically represented sections which
need them the most.
Caste-based socio-economic backwardness is a reality.
To work towards ending it beyond making pious gestures, one needs caste-based
data that is empirically correct.
Why is there so much debate on Caste data?
Caste is the other set of data which is yet to be released.

We are now told that the NitiAayog will compile and put out the information.
Census information on caste should have been canvassed by the agency with the
best skills for the purpose the Office of the Registrar General and Census
Commissioner, India (ORGI).
However, the ORGI baulked at collecting this information as part of the Census of
2011.
Will SECC serve the purpose?
In the end, the SECC will turn out to be most useful only if the socio-economic
component of the data is used for the specific purposes for which it was collected.
The Indira AwaasYojana could, for instance, cover only households living in one room
or kutcha houses as identified in the SECC.
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It would be a case of overreach if the finance ministry sees the SECC as providing it
an opportunity to reduce coverage and slash welfare expenditure.
IAS BABAs View
As the rather politically incorrect but well-meaning saying goes, it's better to have no
uncle than a blind uncle.
Add to that the fact that vote-bank politics has been responsible for development
being more uneven than equitable,
Let the government first set up a panel of experts that includes those critics of the
current methodology.
Let it then agree upon a set of SECC data within a timeframe. Armed with that data,
let the welfare schemes reach their targeted destinations.
Could the central government then be thinking of cutting back on its food security
obligations by restricting (National food security act) NFSA coverage to 40% of the
population?
Write a note on N.C. Saxena committee appointed by the ministry of rural
development.
NITI Aayog taskforce to draw the line on poverty
A high-powered taskforce on poverty elimination, has been constituted under vicechairman of NITI Ayog Arvind Panagariya.
What is the job of the TaskForce?
To recommend use of poverty line to analyse poverty over time and better
understand allocation of resources to the poor.
How would this help in targeting poverty?
The poverty line would act as a yardstick to measure efficacy of government

schemes/programs on the lives of lower strata of society.
The poverty ratio would give a better understanding of the distribution of the
resources and better targeting of household subsidies to eliminate poverty faster.
The taskforce is also expected to highlight the need for sustained economic growth
and composition of that growth as being the imperatives to bring down poverty.
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Poverty estimation over the years:
However, some experts argue that since Socio Economic Cast Census (SECC) for Rural
India has already come up with a number in absolute terms based on certain
deprivations, there is no need to recalculate poverty based on any other criteria.
The erstwhile Planning Commission had landed itself in a number of controversies
relating to poverty line and yardsticks for calculating that.
An earlier method, based on the Suresh Tendulkar methodology, had said anyone
spending more than Rs 33 in urban areas and over Rs 27 in villages a day in 2011-12
as not poor. Later, the Rangarajan panel had pegged these as Rs 47 a day in urban
areas and Rs 32 in villages.
Is there is a need to recalculate poverty when Socio Economic Cast Census (SECC)
has already come up with one?
Though there are many committees setup by the government, the poverty
estimation has always been questioned. What are the difficulties in estimation of
poverty? Are the hitherto available estimates reliable? Can they be used in better
poverty targeting?
Why was Planning Commission replaced by Niti Ayog?
Corporate Governance & Issues with Public Undertakings in India
Indias PSUs should be setting the

benchmark for governance, which can
in turn help put pressure on privatesector firms when it comes to corporate
behaviour.
Sadly, that does not appear to be the
case. Data compiled by Prime Database
shows that several state-owned
companies are, in fact, violating the
Companies Act, 2013, and Sebis equity
listing agreement.
What is raising the question of Transparency and professionalism?
Independent directors are key to good corporate governance, especially to safeguard

the rights of minority shareholders, all the more important when the dominant
shareholder is as powerful an entity as the sovereign or the government of India.
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The absence of such independent directors not only raises questions of transparency
but also of professionalism independent directors are meant to have domain
expertise and discharge supervisory functions.
Further, non-compliance with norms raises questions of propriety for the
governments ambitious disinvestment agenda.
How the Logic of Privatization works?
In this context there is merit in assuming that the logic of privatization of a few
enterprises does not necessarily settle the broader issue of government-public
enterprise interface.
This issue must be kept alive not only because of the transition problems and the
continuance of the public enterprise system in some strategic areas but also because
of two other reasons:
1. As seen in several countries the first step in administrative reforms results in
corporatization of activities which often take the shape of public enterprises.
2. Some countries in the developing world have indicated the possibilities of
governmental intervention/re-nationalization. For these reasons it is contextual to
revisit the issue of public enterprises and arrive at an action agenda for restructuring
the control architecture.
What is the Issue of Independent Directors?
The absence of independent directors on PSU boards raises questions of corporate

governance and poses a challenge for the governments target of raising Rs 41,000
crore through minority stake sale in these companies.
In April, the government had tightened norms for the appointment of independent
directors to raise the bar for corporate governance at state-owned banks and
financial institutions.
The issue of vacancies has been taken up with the government and that the process
of filling these vacancies was currently on at the ministry-level
IAS BABAs View
According to information accessed from Prime Database, only BHEL appointed a new
independent director during this period when it brought in Anami Narayan Roy,
former Mumbai Police chief and ex-DGP of Maharashtra, last August (2014).
The 32 PSUs, including blue chip names such as ONGC, Coal India, IOC, NTPC and
SAIL, have admitted in their compliance reports submitted to the National Stock
Exchange that they have failed to comply with norms specified in the equity listing
agreement for independent directors on their boards.
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Write a note on Shortfall of Independent Directors in Indian PSUS and their effect to
the Economy.
In what way Competitive neutrality is important in an economy where critical
infrastructure and service sectors are dominated by the public sector?
Ending round-tripping : Time for a road map on abolition of participatory notes
The special investigation team (SIT)

set up by the Supreme Court to
unearth black money has come up
with recommendations to curb the
menace of participatory notes or PNotes, which are derivative
instruments issued by Foreign
Portfolio Investors (FPIs) against
underlying Indian securities.
The issue of promoters and market
intermediaries aiding money laundering by rigging up stock prices of companies with
no fundamental value is a genuine concern and needs to be addressed speedily.
The SIT committee has emphasised on 2 aspects:
The role of the stock market in converting unaccounted black money into
accounted money
The role of round tripping of unaccounted funds via participatory notes (P-notes)
issued to offshore investors, as well as market manipulations by domestic entities.
Steps to curb the menace:

Earlier, P-notes thrived and was seen as a major threat- in 2008, they accounted for
over 50 % of the assets of foreign investors; but now they form just 11 % of these
assets. This is due to the strict regulations - it has been mandated that, P-notes can
be issued only to entities that are regulated in their country and those that have
undergone know-your-client checks.
In the recent report, SIT has suggested that P-notes should be made nontransferable, to further tighten this route.
Money laundering through domestic companies is a greater concern than
unaccounted funds via participatory notes. Hence more focus should be on the
numerous small companies with unscrupulous promoters and dubious business
models that populate the Indian stock market.
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These companies have largely proliferated due to the lax regulations governing
primary market listings in the years prior to 2010. While tightening of IPO guidelines
in recent years will ensure that such companies do not raise money from the public
in the future, the regulator will have to devise a way to check malpractices by
companies that are already listed.
SEBI has taken some actions already on black money entering the country through
the offshore derivative instrument (ODI) route. It has set out stringent eligibility
requirements for buying ODIs; these instruments can only be issued to entities from
countries that have signed a multilateral agreement to combat money laundering
and for exchange of information with the International Organisation of Securities
Commission.
The fund structures need to be transparent, and two or more P-Notes subscribers
with the same beneficiary would be considered as one subscriber and SEBI has to
share information on such activities with both the tax authorities and the financial
intelligence unit.
Stringent punitive action - SEBI has been asked to launch prosecution under the SEBI
Act, which can lead to imprisonment up to 10 years or fine up to Rs. 25 crores.
Along with more stringent punitive action, speedier investigation and trial will also
serve as a deterrent.
Background:
What is Money laundering?
It is the generic term used to describe the process by which criminals disguise the
original ownership and control of the proceeds of criminal conduct by making such
proceeds appear to have derived from a legitimate source.
However, in a number of legal and regulatory systems, the term money laundering
has become conflated with other forms of financial crime, and sometimes used more
generally to include misuse of the financial system (involving things such as
securities, digital currencies, credit cards, and traditional currency), including
terrorism financing and evasion of international sanctions.
Money obtained from certain crimes, such as extortion, insider trading, drug
trafficking and illegal gambling is "dirty". It needs to be cleaned to appear to have
been derived from legal activities so that banks and other financial institutions will
deal with it without suspicion. Money can be laundered by many methods, which
vary in complexity and sophistication.
Courtesy - Wikipedia
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What are P-notes?
Participatory Notes (P-Notes) are derivative instruments (with underlying Indian

stocks, debt or derivatives instruments) issued by registered foreign institutional
investors (FII) to overseas investors or hedge funds, who wish to invest in the Indian
stock markets without registering themselves with the market regulator (SEBI).
How does it work?
P-Notes are for individuals who do not want to disclose their identity for various
reasons. Therefore, they put their money in foreign bank branches located outside
India, which then issues participatory notes to them. The bank can then invest or bet
in the Indian stock markets on behalf of those clients, without disclosing their
identities to SEBI. (or)
Indian-based brokerages buy India-based securities and then issue participatory
notes to foreign investors. Any dividends or capital gains collected from the
underlying securities go back to the investors.
In many ways, this is similar to an informal ADR process, where brokerages hold on
to stocks for foreign investors.
How does this affect Indian markets?
Regulators fear that hedge funds acting through participatory notes will cause
economic volatility in India's exchanges.
Recently, the BSE fell over 550 points and NSE's Nifty by161 points. Indian stock
markets are led by foreign money through FIIs and many choose to take the P-notes
route to keep their identities a secret. If the government approves the SIT view and
asks SEBI to curb black money via P-Notes, then this FII money will leave the Indian
markets. This is precisely what happened recently, where markets lost Rs 1.5 lakh
crore in value.
What is 'Round-Trip Trading'?
The act or practice of two or more companies trading assets or securities back and
forth at approximately the same price.
For example, Company A may sell securities to Company B and agree to buy them
back at the same price at a later time. Round-trip trading creates the impression of a
high trading volume, suggesting interest in assets or securities that may not actually
be there. It also increases a firm's earnings and expenses without increasing or
decreasing its net income. It is a form of market manipulation.
What are Tax Havens?
A country that offers foreign individuals and businesses little or no tax liability in a
politically and economically stable environment.
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Tax havens also provide little or no financial information to foreign tax authorities.
Individuals and businesses that do not reside a tax haven can take advantage of
these countries tax regimes to avoid paying taxes in their home countries.
Tax havens do not require that an individual reside in or a business operate out of
that country in order to benefit from its tax policies.
Critically examine the role of SEBI in curbing the Money laundering as a menace?
Money laundering is the hand in the gloves behind the terrorism? Comment.
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ENVIRONMENT
Blue Economy, Green Gain
Blue Economy is a term referring to a healthy ocean, supporting higher productivity.

It encompasses marine products, including minerals and maritime activities, such as
shipping services.
Blue economy infrastructure:
The aim of blue economy infrastructure is to create environment-friendly

infrastructure in the ocean.
With this infrastructure, larger cargo consignments can move directly from the
mother-ship to the hinterland through inland waterways, obviating the need for
trucks or railways.
Blue economy infrastructure In INDIA :
What makes it especially attractive in India is the vast coastline of almost 7,500
kilometres, with no immediate coastal neighbours except for some stretches around
the southern tip. This is not possible, for example, in the Persian Gulf region because
of the proximity to trade routes and contiguous countries. The Strait of Hormuz has
several overlapping maritime jurisdictions.
Also, when land acquisition is such a contentious issue in India, shifting some
infrastructure to the seas is a good economic and political strategy.
In 2014, Ministry of shipping had launched an offshore infrastructure (by creating
an ocean-based transshipment mechanism) project for transporting imported coal
to the thermal power station at Farakka in West Bengal.
The Transshipment has worked out to be financially viable and environmentally
friendlier, compared to traditional handling of cargo at ports.
A major network of inland waterways has historically developed on the east coast.
On the west coast, it exists only in Goa and Kerala. The eastern waterways can be
easily connected to ports for transshipment traffic. The Ganga, Brahmani, Godavari
and the Mahanadi basin systems have dormant waterways, but they all lie on the
east coast. The proposed project to rejuvenate them will bring cargo to their
mouths.
For an offshore transloading zone, the availability of calm waters during the
monsoons is a problem. But this can be overcome by conducting such operations
closer to the coast and seasonally, in calmer waters.
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Benefits:
As ship sizes become bigger, transhipment or the lighterage operations on the high
seas are becoming more viable.
Transloading bulk cargo at sea will complement major ports and other underutilised
non-major ports. For both shallow and deepwater ports, offshore cargo handling will
be a capacity-multiplier.
While relieving infrastructure shortages and pressure on an already overburdened
rail and road network, this will also bring immense benefits by reducing costs, delays
and pollution.
As transloading takes place on the high seas, it creates an opportunity to spread the
cargo across more ports. By creating a well-distributed network for handling bulk
cargo along the entire coastline, the transaction cost can be reduced.
Ports can multiply operations because each cargo shipment is of small parcel size,
with no extra capital expenditure for dredging or for large berths or infrastructure
required for large ships.
A large network of small ports operating would also lead to less physical congestion
or unclogs bottlenecks at ports. This has several advantages - faster clearances mean
less waiting time for ships, which also helps the environment by reducing fuel burn;
it also saves the demurrage charges (a charge required as compensation for the
delay of a ship or freight car or other cargo beyond its scheduled time of departure)
What steps should Indian Government take to complement Blue economy

infrastructure complement with the onshore infrastructure?
Is the Blue economy infrastructure a viable option? Would this lead to territorial
water disputes with the neighbouring countries?
Interlink this concept with inter-linking of rivers in India.
A note about Green Climate Fund
The $100-billion Green Climate Fund will soon become operational in India and the process
of accrediting organisations which can access the funds is going on, DipakDasgupta,
Alternate Director (India), Green Climate Fund Board and Chair, Investment Committee,
says.
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What is Green Climate Fund?

The Green Climate Fund (GCF) is a fund
within the framework of the UNFCCC
founded as a mechanism to redistribute
money from the developed to the
developing world, in order to assist the
developing countries in adaptation and
mitigation practices to counter climate
change.
What is the role of India in GCF?
The first accredited Indian entity that

will get access to Green Climate
Fund's (GCF) resources to undertake
clean energy projects in the country
is likely to be announced soon.
This GCF was set up to help developing countries build resilience to climate-related
disasters and reduces carbon pollution that drives climate change.
So, far 33 countries have pledged $10 billion.
IAS BABAS Views
Countries spend trillions of dollars on waging wars, but they are reluctant to commit
more to mitigate climate change and this is an imminent disaster.
The world is at an important stage to deal with climate change and should lay
stress on very strong community- oriented activity to tackle the issue.

1. How long-term and sustained financing be restructured for mitigation and
adaptation of climate change?
2. What is COP21 Dialogue?
3. What commitments and actions different parties observed to tackle climate change
at the Paris meet?
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No mining, polluting units in eco-sensitive zones.

Union Environment Minister held review meeting to check the progress of demarcation of
Ecologically Sensitive Areas (ESA) in the Western Ghats region and discuss the further
course of action in keeping with the recommendations of the 2013 Kasturirangan
Committee report.
What was said about Kasturirangan committee?
Minister said that earlier people were misled to believe that the Kasturirangan
report would destroy the livelihood prospects of people living in the Western Ghats
forest regions, but such rumors should not be believed.
Only in places demarcated as ecologically sensitive zones, commercial mining and
polluting industries would not be started.
What are the conclusions of the Review Meet?
Since more than 4,000 villages fell in the proposed eco-sensitive zones, consultation
with local population was on to seek their recommendation on the plan of action
and the process would be completed by month-end.
The final notification on demarcation of eco-sensitive zones and mining and polluting
industries to be banned would be available by August.
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Remember the Renowned ecologist MadhavGadgil ??
The Western Ghats Ecology Expert Panel (WGEEP), also known as the Gadgil
Commission after its chairman MadhavGadgil, was an environmental research
commission appointed by the Ministry of Environment and Forests of India.
The Expert Panel approached the project through a set of tasks such as:
1. Compilation of readily available information about Western Ghats
2. Development of Geo-spatial database based on environmental sensitivity, and
3. Consultation with Government bodies and Civil society groups.
Write a note on
1.
2.
3.
4.
Kasturirangan Report
MadhavGadgil Report
M.B Shah Commission
Ecologically Sensitive Areas
Gujarat and Tamil Nadu lead in project clearance in coastal areas
The State Coastal Zone

Management
Authorities (SCZMA) of
Gujarat and Tamil Nadu
have topped in granting
clearances to proposed
projects in last two
decades.
A recent report by the
Centre
for
Policy
Research (CPR) and
Namati, titled Coastal
Zone
Management
Authorities (CZMAs) and Costal Environments: Two decades of regulating land use
change on Indias coastline shows that Gujarat topped the list with 93% rate of
project clearance, with only one project was rejected out of 76 proposals.
What is the role of The State Coastal Zone Management Authorities (SCZMA)?
To take measures for protecting and improving the quality of the coastal
environment
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Examination of proposals for changes or modification in classification of Coastal

Regulation Zone (CRZ) areas
Enquiry into cases of alleged violation of the provisions of the CRZ Notification, 1991
and take appropriate decision under Section-5, 10 & 19 of Environment (Protection)
Act, 1986
To examine all projects proposed in CRZ areas and give their recommendations
To identify ecologically, economically and highly vulnerable areas of the coastal zone
and formulate area specific management plans.
Why there are many rejections in other states?
The Report relies on 39 interviews with sitting and ex-members of the CZMAs and
staff, consultants and officers of the MoEFCC in charge of implementation of the CRZ
Notification and analyses the functioning of CZMAs on their key tasks - project
appraisals, coastal zone mapping, action against violations and conservation of
coastal areas.
If one blames the environmental laws and authorities to delay the approval of
projects along Indias coastline, the report challenges the apprehensions.
Write a note on structure, functioning and performance of Coastal Zone

Management Authorities (CZMAs).
Explain the role of Coastal Regulatory Zone/Authorities (CRZ) in protecting
Environment.
Rise in global temperature might make outdoor work impossible in India
If the world warms up by four degrees Celsius, there is a 30 per cent probability that
temperatures will be so high that even moderate outdoor work cannot be carried
out in the hottest month in northern India, a study on the risks of climate change has
said.
What are some alarming facts said by climate scientists?
The study also said that on a high emission pathway, flooding in the Ganges basin
could be six times more frequent, becoming a 1 in 5 year event over the course of
the century.
It also said that with 1 meter of global sea level rise, the probability of what is now a
"100-year flood event" becomes about 1000 times more likely in Kolkata.
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It finds that migration from some regions of the world could become "more a
necessity than a choice" and that the risks of state failure could rise significantly
affecting many countries simultaneously.
What are the Key assessment areas of the Report?

The assessment considers three key areas
The future pathway of global emissions

The direct risks arising from the climate's response to those emissions
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And the risks arising from the interaction of climate change with complex human
systems.
IAS BABAs View
The most important decision any government has to make about climate change is
one of priority - how much effort to expend on countering it, relative to the effort
that must be spent on other issues.
This risk assessment aims to inform that decision.
In a year when important climate negotiations are scheduled, this kind of multicountry risk assessment hopes to inform a wide range of stakeholders about the
risks for which human societies need to prepare.
Write a note on causes of Global Warming.

How can humans cope with the kinds of temperatures that scientists fear may
become ever more common?
Is it time to consider other approaches to climate policy?
Sowing the seeds of a disaster: Compensatory Afforestation Fund Bill, 2015 (CAF Bill)
There is cause for apprehension in the form of the Compensatory Afforestation

Fund Bill, 2015 (CAF Bill), which was introduced in the Lok Sabha.
The Compensatory Afforestation Fund Bill in its present form could squander away
staggering amounts on meaningless afforestation. It must be recast to protect Indias
forests
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What is the Compensatory Afforestation Fund Bill?
Compensatory afforestation is defined as afforestation done in lieu of the diversion

of forest land for non-forest use under the Forests (Conservation) Act, 1980.
Creation of Compensatory Afforestation Funds: The Bill seeks to establish a
permanent National Compensatory Afforestation Fund under the public account of
India. It also allows states to establish State Compensatory Afforestation Funds.
The National Fund will be under the central government, and managed by a National
Compensatory Afforestation Fund Management and Planning Authority (CAMPA).
The central government will appoint a State CAMPA in each state. The State CAMPA
will be responsible for the management of the State Fund.
What are the special features of the Proposed Law?
Creation of appropriate institutional mechanism, both at the Centre and the states
to utilize these funds for afforestation, and other purposes that would mitigate the
effects of diversion of forest land.
This institutional mechanism will replace the Compensatory Afforestation
Management and Planning Authority (CAMPA) that currently exists but only in an
ad-hoc manner.
The proposed legislation also seeks to provide safety, security and, transparencies
in utilization of these amounts, which currently are being kept in nationalised banks
and are being managed by an ad-hoc body.
How the compensatory afforestation approach ends up not just being a greenwash, but
an ecological disaster as well? *(CASE STUDY + Example)*
From 1980 to 2005, the Kudremukh Iron Ore Company Limited (KIOCL) strip-mined
hill slopes clothed in virgin rainforests in the heart of Karnatakas Kudremukh
National Park.
To compensate for the loss of natural habitat, KIOCL went on a massive
compensatory afforestation spree, planting millions of trees.
The problem with this was twofold
1. The trees were non-native species with zero biodiversity value;
2. And they were planted on adjoining areas of natural grassland, which are an
extremely important component of the Bhadra Rivers watershed.
Thus, apart from the forested hill slopes and the valley that were destroyed by
mining activities, a third natural habitat, in the form of ecologically important
grasslands, was destroyed through mindless tree planting.
To add insult to injury, governments and project proponents alike proclaim such
travesties as achievements towards a Green India.
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IAS BABAs View
We are at a critical moment in Indias fight to achieve ecological security while

ensuring economic and social progress.
If recast on the basis of sound science, the CAF Bill 2015 will form the basis of a farsighted and genuinely beneficial strategy to protect Indias forests.
However, given the way it is crafted presently, it will allow Rs. 35,000 crore to be
squandered away on corruption-ridden afforestation projects involving digging pits,
buying polythene bags for raising saplings, and planting trees that can never become
forests.
Write a note on National Compensatory Afforestation Fund (CAF)

Discuss the key features of the Compensatory Afforestation Fund Bill 2015.
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SCIENCE & TECHNOLOGY
PSLV C-28 launches five UK satellites

In the heaviest commercial launch since its inception, the Indian Space Research
Organisations Polar Satellite Launch Vehicle (PSLV) launched five satellites, weighing 1,440
kg for a United Kingdom-based company.
What are the Must Know facts about PSLV-C28?
This is the 30th flight of the PSLV since it became operational in 1995, with one early
failure
It is launching 5 UK satellites
The satellites totally weigh 1,440 kg, the heaviest paid PSLV service to date
Launch site Satish Dhawan Space Centre at Sriharikota is in Andhra Pradesh and
about 70 km from Chennai
Also its ninth flight in the modified `extended' configuration, called XL
ISRO has so far launched about 40 small to medium size foreign satellites for a fee
Of today's payloads, 3 are identical mini satellites, weighing 447 kg each
They are DMC-3 1, 2 and 3 optical earth observation satellites; 91-kg CBNT-1 microsatellite; and the 7 kg De-orbitSail
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DMC-3 satellites are each 3m high. ISRO designed a circular launcher adaptor and a
triangular deck to fit them in
The late-night flight helps the UK operator to get control over them in orbit at
suitable time
Nearly 63-hour countdown began on July 8 at 7.28 a.m.
Why are all satellites and missiles launched from the east coast?
The surface velocity of rotation varies from point to point on the Earth. It is about
1600 km per hour or about 460 meters in a second near the equator.
The velocity gradually reduces as we move to the poles and it is practically zero
there. A satellite launched from the sites near the equator towards the east direction
will get an initial boost equal to the velocity of Earth surface. This is similar to an
athlete circling round and round before throwing a discus or a shot put.
The initial boost helps in cutting down the cost of rockets used to launch the
satellites.
This is the major reason for launching satellites in the east ward direction.
What is the difference between GSLV and PSLV?
Both PSLV (Polar Satellite Launch Vehicle) and GSLV (Geosynchronous Satellite
Launch Vehicle) are the satellite-launch vehicles (rockets) developed by ISRO.
PSLV is designed mainly to deliver the earth-observation or remote-sensing
satellites with lift-off mass of up to about 1750 Kg to Sun-Synchronous circular polar
orbits of 600-900 Km altitude.
The GSLV is designed mainly to deliver the communication-satellites to the highly
elliptical (typically 250 x 36000 Km) Geosynchronous Transfer Orbit (GTO).
The satellite in GTO is further raised to its final destination, viz., Geo-synchronous
Earth orbit (GEO) of about 36000 Km altitude (and zero deg inclination on equatorial
plane) by firing its in-built on-board engines.
Why is PSLV-C28 accounted as heaviest commercial vehicle so far?

What are the Major Applications of PSLV-C28?
ISRO tests indigenous cryogenic engine
An indigenous cryogenic rocket engine being developed to power Indias most

powerful rocket system, the GSLV Mk III, underwent a successful endurance test for
duration of 800 seconds at ISROs propulsion complex at Mahendragiri.
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The cryogenic engine which will power the upper stage of the GSLV Mk III was fired
for a period that is 25 per cent longer than required in a space flight with a nominal
thrust of 19 tones and its performance matched prediction made through computer
simulation.
What is the Difference between GSLV and PSLV?
Both PSLV (Polar Satellite Launch Vehicle) and GSLV (Geosynchronous Satellite
Launch Vehicle) are the satellite-launch vehicles (rockets) developed by ISRO.
PSLV is designed mainly
to deliver the earthobservation or remotesensing satellites with
lift-off mass of up to
about 1750 Kg to SunSynchronous
circular
polar orbits of 600-900
Km altitude.
The GSLV is designed
mainly to deliver the
communication-satellites
to the highly elliptical
(typically 250 x 36000 Km) Geosynchronous Transfer Orbit (GTO).
The satellite in GTO is further raised to its final destination, viz., Geo-synchronous
Earth orbit (GEO) of about 36000 Km altitude (and zero deg inclination on equatorial
plane) by firing its in-built on-board engines.
How cryogenic C25 operates?
The cryogenic C25 stage engine operates on Gas Generator Cycle using extremely
low temperature propellants Liquid Hydrogen at 20 Kelvin (-253 degree C) and Liquid
Oxygen at 80 Kelvin (-193 degree C).
The successful endurance hot test of the first high thrust cryogenic engine is the
tenth test in a series planned as part of the development of the engine employing
complex cryogenic technology.
What are the applications of Cryogenic Engine?
Aerospace-cryogenic engines
Medical Field
Manufacturing field
Electronics Field
Fuels Research
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IAS BABAs View
This new rocket will be capable of doubling the capacity of payloads India can carry
into space.
GSLV Mk-III is conceived and designed to make India self-reliant in launching heavier
communication satellites of INSAT-4 class, which weigh 4,500 to 5,000 kg.
It will also enhance the capability of the country to be a competitive player in the
multimillion dollar commercial launch market.
Write a note on Indias first indigenously designed and developed high thrust
cryogenic rocket engine.
Make a note on various important subsystems designed.
After Nuclear-plants, Russia targets irradiation network
In a step towards furthering the atomic cooperation with India, Russian state-owned
nuclear firm Rosatom State Corp has picked up a 51 % stake in Tamil Nadu-based
Gamma Tech India Private Ltd. to jointly implement a project that aims to set up a
network of radiation sterilisation centres across India.
The centres will be constructed in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh
and Maharashtra and the first pilot centre is planned to be established in Tamil
Nadu.
This is the first such major intervention by a foreign government nuclear utility in
India, one of the largest food producers in the world with about 600 million tonnes
of food products generated every year.
The approval by the Indian nuclear regulator, the Atomic Energy Regulatory Board
of India (AERB) for the irradiation equipment design and the construction of the first
irradiation centre has already been obtained.
The centres to be developed by Rosatom will offer
sterilisation of medical products (by ionizing radiation) such as latex gloves

decontamination of fruit, berries and other products exported from India to
developed countries
Background:
What is Radiation sterilisation?
Radiation sterilisation is a physical process of irradiation of medical products by

ionizing radiation. Products are subjected to irradiation in specialised radiation
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technology facilities where gamma-rays (gamma-rays of Co-60 or Cs-137 isotopes) or

electron accelerators are used.
How is it done?
When electrons go through the material substance, most of their energy is spent on
ionization, which results in destruction of micro-organisms and a reduction in the
number of pathogenic bacteria and viruses.
The process of radiation sterilisation is the final stage of production of single-use
medical products. These technologies can be used in agriculture, as well as for
municipal solid waste sterilisation and in the petrochemical industry. Over 42
countries in the world including the US, the UK, Canada and France have given
clearance for radiation processing of food.
Radiation Technology in India:
The Government of India has permitted the use of radiation technology in

preservation of food items such as potato, onion, rice semolina, wheat flour, mango,
raisins, dried dates, ginger, garlic, shallots (small onions) as well as meat and meat
products including chicken.
The Mumbai-based Bhabha Atomic Research Centre has done extensive research
and development work on preservation of food by radiation and has been involved
in setting up the first demonstration plant for radiation processing of onions and
potatoes at Lasalgaon in Nasik, Maharashtra. The same plant is also proposed to be
used for low dose radiation processing of other foods with alterations in throughput
and source utilisation efficiency.
More about Atomic Energy Regulatory Board (AERB):
Atomic Energy Regulatory Board was constituted on November 15, 1983 by the
President of India by exercising the powers conferred by the Atomic Energy Act to
carry out certain regulatory and safety functions under the Act.
The regulatory authority of AERB is derived from the rules and notifications
promulgated under the Atomic Energy Act, 1962 and the Environmental (Protection)
Act, 1986. The headquarters is in Mumbai.
The Mission of the AERB is to ensure the use of ionising radiation and nuclear energy
in India does not cause undue risk to the health of people and the environment.
Courtesy- http://www.aerb.gov.in/
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Defence Sector: Not in the spirit of indigenization
The stellar achievement of the late APJ Abdul Kalam in the national security sphere
was the Integrated Guided Missile Development Programme (IGMDP) responsible
for the Prithvi and especially, the very advanced, highly accurate and lethal Agni
series of ballistic missiles.
Along with nuclear warheads/bombs designed and produced in Trombay, and the
Advanced Technology Vehicle project that begot the Arihant-class nuclear-powered
ballistic missile-firing submarine (SSBN), the IGMDP has created a paradox: India is
self-sufficient in strategic armaments and long-range delivery systems but is an
abject dependency with regard to conventional weaponry.
What is Integrated Guided Missile Development Programme (IGMDP)?
What began as the modest Integrated Guided Missile Development Programme

(IGMDP) in 1983, has delivered to the military a range of missiles, both strategic and
tactical.
The Missiles developed under the programme were:

1.
2.
3.
4.
5.
Short-range surface-to-surface ballistic missile PRITHVI

Intermediate-range surface-to-surface ballistic missile AGNI
Short-range low-level surface-to-air missile TRISHUL
Medium-range surface-to-air missile AKASH
Third generation anti-tank missile NAG
The Agni, which was initially conceived as a technology demonstrator project in the form of
a re-entry vehicle, was later upgraded to a ballistic missile with different ranges.
What was Dr. Kalams Contribution to this Indigenous Project?
Dr. Kalam played a major role in the development and operationalization of Agni and
Prithvi missiles.
After achieving the goal of making India self-reliant in missile technology, DRDO on
January 8, 2008, formally announced successful completion of IGMDP.
The ambitious, time-bound project brought together the countrys scientific
community, academic institutions, R&D Laboratories, industries and the three
Services in giving shape to strategic, indigenous missile systems.
How has India pointedly steered clear of Tactical Nuclear Weapons?
India has pointedly steered clear of Tactical Nuclear Weapons (TNW), which are
smaller bombs delivered by shorter-range missiles.
Pakistan's nuclear deterrent relies on a TNW - called the Nasr, or the Hatf-9, with a
maximum range of 60 kilometres - to counter India's Cold Start Doctrine, which
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allows India to retaliate to major Pakistani provocations, like a terrorist strike or a

political assassination, with punitive strikes deep into Pakistan by armoured battle
groups. Pakistan hopes to deter such strikes with the threat of small TNWs.
India, like China, believes that TNWs are inherently dangerous.
Since they are short range battlefield weapons, they are vulnerable to theft by
terrorists, or to being launched by renegade military commanders. India's nuclear
deterrent, therefore, consists of longer-range weapons that target enemy cities (i.e.
counter value targeting), not military formations (counter force targeting).
What are the main factors responsible for our Missiles success?
Firstly, this batch of young scientists came with a work culture, thought processes
and confidence that they could do almost anything.
"Secondly, Kalam unleashed thought processes and the freedom to function, thus
reinforcing creativity with excellent review mechanisms.
Thirdly, Kalam created an eco-system where DRDO laboratories worked together in
clusters.
IAS BABAs View
This success has not come easy.

The success of the 5000-km-range Agni V reflects India's long-sought self-reliance in
missile technology
India has to stop mollycodding DPSUs, wasting the sophisticated built-up capacities
in the private sector, and sustaining the defence industries in the US, Russia,
Western Europe, and Israel by reflexively buying armaments abroad.
Wherever we have worked without the option of import - be it on strategic missiles,
nuclear weapons, atomic energy or the space programme - we have achieved selfreliance. In the super-secret world of electronic warfare, where import is not an
option, we have built world-class systems.
What are the Challenges that are being faced by the Defence public sector Units
(DPSU S?)
What were the Technology limitations to Nag', a 'fire and forget' missile?
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DID YOU KNOW?
Vyapam Scam
The ongoing VyavsayikPareeksha Mandal scam in Madhya Pradesh (commonly

known by its Hindi acronym Vyapam) has seen the deaths of a number of people
under suspicious circumstances.
The rising body count has caused a national furore, forcing the government to hand
over the case to the Central Bureau of Investigation to look further into
the admissions and recruitment scandalthat has been rocking the country.
The scam involves students who paid bribes to officials to get high marks in entrance
tests to get government jobs and coveted slots in medical schools.
Solar Scam
In 2013, a fraudulent solar energy company, Team Solar, in Kerala, India, used two
women to create political contacts with links even to the Chief Ministers office,
duped several influential people to the tune of 70 million Rupees.
They had collected advance amounts from large number of people and investors by
offering to make them business partners, or in the guise of installing alternate
sources of energy (solar power units) and failed to deliver the goods.
Tit-Bits:
You can file your application with some designated post offices for getting
information under the Right to Information Act
On the feedback from Secretaries, who were asked by the Prime Minister earlier this
year to travel to the districts of their first posting in the civil services, the
government proposes to train 3,000 barefoot engineers under the
DeenDayalUpadhyayaGrameen Kausalya Yojana for rural infrastructure projects.
Bio slurry pellet method of rice cultivation to increase production.
Indian scientist helps find breakthrough malaria cure. They found that one protein
kinase (PfPKG) plays a central role in various pathways that allow the parasite to
survive in the blood.
The Karur district (Tamil nadu) is all set to lead by example in terms of sanitation and
hygiene. The district administration will shortly announce that it has attained the
status of the district with toilets in all schools.
Has your name been removed from the electoral list, denying you your right to vote?
Now, you can take the Chief Electoral Officer to task for denying you your statutory
right as a citizen and demand compensation for it.
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The Tamilnadu government has sanctioned 60 MLD capacity seawater reverse

osmosis desalination plants, one each at Kuthiraimozhi in Ramanathapuram and
Alanthalai in Tuticorin to benefit over 1,100 rural habitations where safe drinking
water has been a perennial problem.
The Reserve Bank on announced plans to put into circulation 10 rupee coins to
commemorate the International Day of Yoga.
Rag pickers to be recognized with national award with a cash prize of Rs 1.5 lakh, will
be given to three best rag pickers and three associations involved in innovation of
best practices
China has proposed a trilateral economic corridor with India through Nepal and a
railway line linking the three nations via Tibet besides undertaking joint
reconstruction projects to rebuild quake-hit Nepal.
The total number of telephone connections in the country crossed the record one
billion mark in May, bolstered by growth in number of mobile users according to the
data released by TRAI.
www.IASbaba.com

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IMPORTANT ARTICELS (Pages: 6-21)

Greece Crisis De-mystified

Redesigning of Make in India

No Indian educational institution in global list of top 300 universities

INTERNATIONAL (Pages: 69-104)

Centre appoints arbitrator for Vodafone tax case

Blue Economy, Green Gain

SCIENCE & TECHNOLOGY

PSLV C-28 launches five UK satellites

Harsh Austerity terms; deep budget cuts &steep tax increases

Should India be worried?

P.S: On 20/07/2015, Greece re-paid two loans to IMF & ECB.

Indias Intellectual Property Regime- Does it need a Review?

Armed Forces Special Powers Act (AFSPA)

Article 355 of constitution of India imposes a responsibility upon union government

AFSPA: Repeal or Stay

AFSPA and Geopolitics:

Universal Declaration of Human Rights

Repeal of Archaic Laws

The Appropriation Acts (Repeal) Bill, 2015:

With the Appropriation Acts

What are Appropriation Acts?

Why should these laws be repealed?

Laws don't suddenly become useless. It is due to a very serious change of

Doesnt serve meaningful purpose now

Connecting the Dots:

Diverging CPI, WPI: The inflation conundrum

The recent trend of WPI :

Why has CPI remained high?

Some experts Opinion/Views:

Connecting the Dots:

In the Indian context, is CPI the right measure of inflation?

To some, Make in India intends

What the government is missing in formulating Make in India is design thinking?

What are the flaws in Make in India Design?

What changes can Design thinking bring out?

Design thinking can be applied to visualizing new policies as well as re-framing

IAS BABAs View

A design thinking approach is essential to nurturing a culture of innovation.

Connecting the Dots:

Explain why Indian manufacturing sector needs to undertake more indigenous

Dedicated Freight corridors

Connecting the Dots:

Issues related to infrastructure Development Financing, PPP challenges etc.

Solar systems mandatory on roof-tops

Mandatory roof-top solar in Indian States

Likely Reasons for Non-compliance of the mandate

Courtesy Ministry of New and renewable Energy

In the backdrop of increasing demand-supply gap in energy, what is the significance

Three mega urban schemes launched: Primacy to peoples vision

Two systemic changes in the flagship programs:

Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Housing for All

Slum rehabilitation of Slum Dwellers with participation of private developers using

Courtesy PIB, Economic Times

Government to revamp oil, gas block auctions

New Exploration Licensing Policy (NELP) was conceptualised by the Government of

What is Production Sharing Contract?

Production sharing agreements are a common type of contract signed between a

What is Open Acreage System?

Lower rank in Corruption Index helped India