Oct 30, 2016 Motivational Articles

Creative Guidance – Focus – Inspirational & Educative Articles

  Focus: Focus is one of the easiest topics to talk about and one of the most difficult of qualities to cultivate. In the simplest sense, focus is your ability to choose a task and dedicate your time and energy till it is completed. Sounds extremely easy to understand and follow, but focus is anything but easy. It is a multi layered dynamic quality that needs time, energy and yes, focus to develop One of the most difficult things to understand about focus is that it is so simple and independent of all other qualities that you either know how to focus or you don’t. There are really no alternate paths and ways through which one can develop focus. The only way to focus is by focusing. Let us take a few simple and easy to understand examples. Let us say you want to read a book for one hour every day, or you want to exercise for one hour every day or you want to follow a strict diet plan or any other simple easy to do activities that you want to do on a daily basis. The biggest challenge to accomplish any of these simple tasks is your ability to focus. You are almost like a great warrior possessing enormous focus, energy and determination to accomplish a task when you first decide to do it. And almost as a definite rule your focus and determination gradually reduces to a point where you need other external warrior forces to persuade you to accomplish those tasks. Now, why is this considering that you are the same person who decided to do something and later decided to give up? The simple answer to this predicament is lack of focus. You give up because you can no longer hold on to the task, you can no longer focus. Anyways, you need not be alarmed if you cannot focus because focus doesn’t come naturally to human beings. It is a quality that has to be cultivated over rigorous hours of discipline and hard work. Unless you have been through a system of self discipline and focus, you simply don’t know how to focus. The first challenge is to identify your lack of focus. Observing your daily actions and the pattern of accomplishing them will give you a fair idea about your ability to focus. If you realize that you lack focus, then that becomes the starting point of changing your behavior. As mentioned before, focus can only be practiced by focusing. So the best way to start learning this most important habit is by picking a task and deciding to see it that it is completed. You can start with simple and easy activities that you can do on a daily basis. The activity should not be entertaining, or something that you are overly enthusiastic about. The secret of learning to focus is by first picking an activity that you normally don’t enjoy doing. The activity should be easy but it should take some effort to accomplish it. Examples can be reading, exercise, meditation, running, painting, sports etc. Once you have chosen the task, make a note of the day when you begin and continue to mark the days when you were able to accomplish it. Also mark the days when you were not able to accomplish the task. This will clearly show you your level of focus. Rest is simply a matter of Focus! “The articles are a copyright of The Ahamo Movement and IASBABA.” Read more such articles– Click Here

Oct 29, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 29th October, 2016

Archives   IASbaba’s Daily Current Affairs – 29th October, 2016   NATIONAL   TOPIC: General Studies 1 Social empowerment General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.   Ten years of Domestic Violence Act- What is the progress? The Protection of Women from Domestic Violence Act (PWDVA) 2005 is a landmark legislation to protect and grant relief to victims of domestic violence. Let us take a look at how is it faring. Background: The PWDVA is first of its kind law in India which came into force on 26th October 2006. For the first time, a law dealt with private spaces of individuals—something the law had avoided doing until then—although selectively. The function of the law was simple- address violence against women within the home. It had a broad definition of ‘domestic relationship’ which included married women, mothers, daughters and sisters. It is acknowledged that domestic violence is ‘widely prevalent but it has remained largely invisible in the public domain’. It is a civil law aimed at providing a fourfold support system to women who have suffered violence at home Residence orders Custody orders Protection orders Monetary relief from a respondent Before PWDVA, women could only seek recourse under the Indian Penal Code (IPC)—sections 304B (dowry death) and 498A (cruelty by husband or his relative). The right to reside in a shared household, provided by the law, was considered a huge step towards empowering women, especially in a society where women often do not own property. PWDVA enshrines principles of the Convention on the Elimination of All forms of Discrimination Against Women (CEDAW). This convention was ratified by India in 1993. CEDAW’s 12th general recommendation required “the States parties to act to protect women against violence of any kind occurring within the family, at the work place or in any other area of social life”. Picture credit: http://www.livemint.com/r/LiveMint/Period2/2016/10/28/Photos/Processed/g_DV_2_web.jpg Domestic Violence definition PWDVA defined domestic violence for the first time and it did not restrict itself to physical violence, hence kept up with international definitions. It includes physical abuse (which is more identifiable and is easier to prove), emotional and sexual abuse. Threat is also included as a part of violence. Thus, such broad definition was a major breakthrough in protecting women against domestic violence. Significantly, PWDVA recognizes sexual violence within the confines of marriage- Marital rape is an exception to rape under IPC but PWDVA can come to the rescue of these women through protection orders or orders to stop violence.   Impact of law Despite such extensive definitions and provisions, the impact of law has not been remarkable. It has been noted in many orders under PWDVA that they do not specifically mention the category of sexual abuse even when alleged. Not much has changed in 10 years in terms of awareness within the law enforcement agencies and the lower judiciary. Many believe that law in spirit has not been implemented. Though the law is useful, the states have failed in enforcement. Also, the judiciary still has a long way to go as despite progressive law as the judicial attitudes are still steeped in patriarchal norms. The judicial narrative on women’s rights within marriage in India has been woefully restricted to ‘lawful’ wives with little or no attention paid to other women in non-marital relationships. However, the SC has made significant changes in the law such as: A wife would be considered an aggrieved person under PWDVA even if she was judicially separated from her husband. ‘Adult male’ is struck down from the definition of respondent. It means that wives or women in relationships akin to marriages can take legal action against female relatives of their husbands under PWDVA. Data from reports A 2014 study by the United Nations Population Fund and the International Center for Research on Women: 60% of men reported using some form of violence—physical, economic, emotional or sexual—against their wife or partner. Emotional violence had the highest prevalence, with 41% of men admitting that they had used it at some point on their wives or partners. National Crime Records Bureau It introduced a category of offences under PWDVA. In 2014, there were 426 cases which increased to 461 in 2015. There were 7,634 reported cases of dowry deaths and 113,403 incidents of cruelty against a woman by her husband or his relatives in 2015.   Conclusion From accounts across the board, it is clear that the progress on the law from 2006 to 2016 has been slow. Though it does not mean that all that had been expected from the law has not been achieved yet. When the law was passed, it was very futuristic and ahead of time as it sought to collapse the gap between civil and criminal law. Also, it sought to move away from the adversarial system of justice and the judge was expected to have more of a role in an inquiry with the help of protection officers. When this will be done, the victim will get timely justice which has not been possible in most of the cases till now. The state government has to prepare a cadre of professionally qualified well-paid protection officers who could do the kind of outreach work that is required to be done for a woman in distress. The protection officers have to be allowed to play their role in being the eyes and ears of the court. The rights of women and dignity of women needs to be protected for her empowerment and thus, this law has to be implemented with utmost sincerity by the state. Connecting the dots: Despite a well framed law of protection of women against domestic violence, the law has not been effective in its impact. Explain the causes and suggest way forward. Violence against women is now taking a dangerous turn with physical abuse not only being one of the medium. Discuss the role of state in protecting the women and her dignity.   MUST READ Extending food security Hindu   Centre is trying to decimate judiciary: SC Hindu   Save us from the patriots Indian Express   It’s still a grim fight against HIV Business Line   Only holistic intervention ‘can get 22GW plants going’ Business Line

Oct 28, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 28th October, 2016

Archives   IASbaba’s Daily Current Affairs – 28th October, 2016   ECONOMY   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.   Banking – Non Performing Assets What are Non Performing Assets?   As per Reserve Bank of India (RBI), an asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. A 'Non-Performing Asset' (NPA) was defined as a credit facility in respect of which the interest and/ or instalment of principal has remained 'past due' for a specified period of time. NPAs are further categorized depending upon the time periods for which the payments have been overdue. Reasons for Non Performance Gross bad loans at commercial banks could increase to 8.5 per cent of total advances by March 2017, from 7.6 per cent in March 2016, according to projections by the RBI in its Financial Stability Report released earlier this year during the tenure of Dr. Raghuram Rajan. Picture Credit: http://www.thehindu.com/multimedia/dynamic/02912/28-biz_lead_2912232f.jpg A few important reasons for the constant increase of NPA are as follows: Global economic slowdown leading to a reduced demand Reckless lending by banks during periods of boom Lack of digitisation of banks and poor data management Poor quality of due diligence conducted by banks thus leading to poor loan appraisals Delay in implementation of infrastructure projects due to environment or regulatory hurdles Wilful defaults and frauds   Recent remedies and their impact RBI has recently released the following guidelines to ease the pressure on the banking sector: Limit the lending by banks to corporate borrowers Restrict the overall lending to large borrowers gradually to Rs. 10,000 Crores by April 1, 2019. Corporates requiring loans in excess of specified limits will have to reach out directly to the market. Increased risk weights have been allocated for excessive lending and borrowing. However, the above guidelines are not being viewed very positively due to the following concerns: Guidelines, such as allocation of increased risk weights, have added additional pressure on the lender and the borrower. Borrowing from the market can be tough for those companies suffering credibility issues and low investment ratings leading to slowdown of infrastructure development. The banks are moving towards alternative areas of credit expansion which have other limitations and constraints such as risk.   Alternatives investment avenues and limitations Retail Sector: Lending to the retail sector might not prove to be very fruitful due to low margins leading to higher risk and poor quality. Agricultural Sector: Banks are not very enthusiastic in lending to the farmers due to constant loan waivers given by the government. Investing beyond the Statutory Liquidity Limits (SLR): This will lead to increase in the fiscal deficit of the government. Bond Markets: Investment in bond markets are also restricted due to higher risk involved and limits imposed by RBI guidelines. Way Forward Discipline in case of consortium lending and involvement of executives with sufficient and relevant expertise. Monitoring and strict scrutiny of utilisation of funds without solely relying on external auditors. Quality and on the field inspection of projects being implemented by expert branch officials. Steps should be taken to ensure both responsibility and accountability of lending banks who have taken to outsourcing. The role of credit committees sanctioning loans need to be revisited, in terms of increased accountability, especially in this age of digitisation where loan processing has become centralised. There are hardly ways to hold them accountable for their work. Online application procedures do increase the transparency, but they reduce the significance attached to the branch officials’ role. Critical processes such as background analysis, risk potential of borrowers are ignored. The short period of one month or 90 days, used for classifying NPAs, is inadequate to analyse the reasons for default and assess the genuine requirements of the borrower. Strict action against wilful defaulters. Conclusion There is a need to avoid hasty provisioning and write-offs, for merely reducing NPAs at enormous cost to the entire system. The regulatory authorities have to play a more proactive role in prevention with more supervisory oversight on credit management in banks. Lastly, a huge importance needs to be given to training and skilling the bank executives with relevant skill set. Connecting the dots What are Non Performing Assets? Is limiting the lending and borrowing capacity the most appropriate solution for tackling the problem of NPAs? If not suggest a strategy for overcoming this problem plaguing the Indian economy.     NATIONAL TOPIC: General Studies 2 Structure, organization and functioning of the Executive and the Judiciary   Judging the Judges: Is it needed? In news: Recently, the law department in Gujarat, on the recommendation of the Gujarat High Court, cracked the whip on 17 judges from various cadres in lower courts, ordering their retirement for unsatisfactory performance. Background: The 17 judges, who were ordered to take retirement, were issued notices in past to improve their performance but their failure to heed to these warnings led to the government taking this drastic step. As per official of HC secretariat, the state government and the high court’s administration are spending Rs. 2-3 lakh per month on the functioning of a court and if the performance of a judge is not up to the mark, they are bound to take action against them. This action of the state suggests that holding judges to performance standards is gaining momentum. However, the existing system of performance evaluation for the lower judiciary is plagued with various problems. What is more worrying is that higher judiciary in India is not subject to any sort of evaluation. Assessing the judges- India and abroad India Lower court judges in India are evaluated through a system of Annual Confidential Reports (ACRs), which are completed by the senior-most judges of the lower court, and reviewed by the State High Court. But ACRs are neither filled up regularly nor is the evaluation process transparent. Concerns about this lack of due process have even reached the Supreme Court, which recently has summoned the Registrar General of the Delhi High Court to explain why a lower court judge was marked as ‘integrity doubtful’ without material basis. In 2013, the idea for amending and improving existing methods for evaluating judges’ performance was floated, when the Law Ministry acknowledged the need for a more scientific method of performance appraisal of judges. The Ministry also admitted that there was a lack of uniformity of judicial performance appraisal across States. However, there has been no significant changes since these observations were made. A research institute recently surveyed the legal community for its views on judicial performance evaluation where it found that almost all the surveyed individuals were of the opinion of a system of performance appraisal of judges, particularly of the higher judiciary. Most survey respondents believed that such appraisal would lead to greater accountability, transparency and better and efficient functioning of judges. Hence, this is an opportune moment to revise existing mechanisms and deliberate on the performance evaluation of judges at all levels of the judiciary.   Abroad USA The system of periodic assessment of judicial performance, formally called as ‘Judicial Performance Evaluation’ (JPE), originated in USA. Here, the sitting judges were evaluated to inform voters about a judge’s performance record for ‘retention elections’. The retention elections allowed the public to vote for or against the continuing tenure of judges. Thus, JPEs became institutionalised over time, and are now regularly followed across the USA, with most States incorporating provisions for evaluating judges in their constitutions. Studies of JPE programmes suggest that parameters for evaluating judicial performance may be qualitative as well as quantitative. These include the rate of disposal of cases by a judge, the quality of judgments and legal reasoning, knowledge of the law, behaviour towards lawyers in court proceedings, independence and transparency. JPE programmes initially tend to use objective criteria to evaluate judges, eventually moving towards more qualitative criteria when systems have evolved sufficiently to reduce likelihood of bias and subjectivity in assessment processes.   EU Here, the European Commission for the Efficiency of Justice conducts a periodic performance review of court systems of different member states. This country-wise study collects data on various parameters, including the efficiency of courts in justice disposal, the costs per case, and the budget of courts. The outcome of this exercise is called the ‘EU Justice Scoreboard’ which is published annually and rates the working of justice systems across member states. JPE in India? Judges in India are nominated or appointed through examination processes and not elected as in the USA. Therefore, JPE programmes here would not work the same way as in the US, where they were formulated to give voters information on judges before retention elections. However, studies of JPEs show that besides providing information to voters, these programmes also serve the purpose of increased transparency and accountability of the judiciary. A regular review of judicial performance ensures that once appointed, judges are mindful of their accountability to the institution of the judiciary. Conclusion A delicate balance needs to be struck even while measuring judicial performance. Scholars have expressed reservations that performance evaluations could compromise the independence of the judiciary. Thus, to avoid this, a JPE programme should be devised by the judiciary itself, instead of government. The Madras High Court, for the first time, has come out with qualitative as well as quantitative performance assessment of its judges in 2016. As it is was for first time, it was met with mixed reactions from lawyers, some of whom felt that this could unduly pressurise judges to dispose of cases and encourage indiscriminate disposal rather than delivering justice. However, this is precisely the sort of performance evaluation courts should start conversations about despite the opposition from a section of lawyers. For this, the first step towards such evaluation should be the objectives of such evaluation, such as improving quality of justice, pendency rates, and so on. A joint consultation could be held with stakeholders, including judges, lawyers, academics and members of civil society to understand how best to initiate such a system in India. Any codified system that emerges from these discussions, like in the form of guidelines or regulations, must be reviewed to ensure minimum bias and maximum transparency. All these steps would help India work towards higher standards and greater accountability in judicial functioning. Connecting the dots: Judges in India have a comparatively opaque way of functioning than in western countries? Do you agree? Examine. How can judiciary in India be made more transparent and accountable? Discuss.   MUST READ Situating law in the land Hindu   Shy of fighting causes Hindu   Swachh biology - swasth biology Hindu   When an icon falls Indian Express   A Story Of Two Bills Indian Express   Multiple ways to equality Indian Express   Unhealthy delay Indian Express   SC ruling on equal pay for equal work difficult to implement: Experts Livemint   Ensure pay parity for the armed forces Livemint   Arrest this drift in ties with Bangladesh Business Line   Centre to modify model APMC law to address States’ concerns Business Line  

Oct 28, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 48]

Click here to get all the Tests– Archives Q.1) Which organisation released the recent report ‘Global Urban Ambient Air Pollution Database 2016’? World Health Organization United Nations Environment Programme (UNEP) United Nations Development Programme Médecins Sans Frontières  Q.2) With the United Arab Emirates as the starting point, arrange the following list of countries in a clockwise direction of them opening out to the Persian Gulf: Kuwait Iraq Qatar Bahrain UAE Select the correct answer using the code given below: 5-3-4-1- 2 3-5-1-4- 2 5-4-3-2- 1 3-4-1-2- 5 Q.3) ExoMars, a two-part Martian astrobiology project to search for evidence of life on Mars is a joint mission of the European Space Agency (ESA) and ______________ NASA ISRO SpaceX ROSCOMOS Q.4) Recently ‘Hanuman Tok’ was in news. It is located in which of the following states Uttarakhand Sikkim Punjab Rajasthan Q.5) Consider the following about Macro Vulnerability Index (MVI). It adds together the rate of inflation, current account deficit and fiscal deficit of a country The Index value can be compared across countries for different time periods to gauge their relative vulnerability Select the correct answer: 1 only 2 only Both 1 and 2 None of the above Download the Solution- Click here All the best IASbaba

Oct 27, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 27th October, 2016

Archives   IASbaba’s Daily Current Affairs – 27th October, 2016   NATIONAL   TOPIC: General Studies 2 Issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Reviving decentralisation in Indian planning For long, the Planning Commission, which was formed by an Executive order (thus could be easily abolished), formulated five year plans for India. It was considered virtually an executive arm of the Union government. In contrast to it, a District Planning Committee (DPC) stood neglected for which there is provision in Constitution of India under art 243ZD. DPC, a constitutional institution is mandated ‘to prepare a draft development plan for the district as a whole’ with a focus on resource endowments, environmental conservation, infrastructural development and spatial planning. Today, the rapid urbanisation has made difficult to make a sharp rural/urban differentiation at the district level and integrated planning has become a sine qua non (essential condition). The constitutional goal to create ‘institutions of self-government’ at the local level is tasked to ‘plan for development economic and social justice’. However, the operationalization and effectiveness of these constitutional goal depends on meaningful response of the Centre and the State governments to the institutional architecture implied in the 73rd and 74th Thus, India needs multi-level development and planning so as to cater to its diverse population.   Reviving the committees In most States, there does not exist decentralised governance with DPCs acting as the functional hub. The Devolution Report 2015 (Ministry of Panchayati Raj) says that several States have not constituted DPCs and thus there is no scope of preparing an integrated district plan. Although 12 States have reported that they had formulated integrated district development plans but most of them may not stand professional scrutiny and citizens’ approval. Now with the arrival of NITI Ayog, it has to be seen if it will try to revive District Planning Committees and institutionalise the preparation of district development plans. NITI Ayog has outlined its functional responsibilities where it proposed ‘to develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government’. This is possible only through a critical review of the functioning of the institutions of decentralised governance in every State. The sixth report (2007) of the Second Administrative Reform Commission (ARC) outlines in great detail ways to make the DPC a viable component in the process of decentralised planning. But, as the planning environment reveals- no one bothered to take care of this ARC recommendation. No Union ministry has made any scientific scrutiny nor reported to the nation about what happened to the constitutional mandate of decentralised planning and local democracy during the last 22 years. Reviving federalism Most of the SDGs and the 169 targets related to them are best implemented only as part of decentralised governance. Also, Local governments (LGs) have a key role in delivering several public goods and social justice. The nodal agency for UN sustainable development goals (SDGs) in India is NITI Ayog. So, here the NITI Ayog may examine the possibilities of giving a new lease of life to local governments. India is a federation with extreme diversity in resource endowments, poverty incidence, development attainments and potential for growth and its regional disparities are widening. Thus, there is a need for social intervention else the economy which is committed to market-mediated growth can only accentuate divergence. This can become possible with decentralised planning. The Centre and the finance commission are expected to play a key role in ensuring spatial equity in Indian federation. But these institutions have failed in their responsibilities which is revealed in a recent study that covered 19 major States involving 96% of the population. Using criteria relating to infrastructure, social services, fiscal performance, justice etc., it was demonstrated that regional disparities have widened between 2001 and 2012. The prime rationale of cooperative federalism is to ensure spatial equity. Every citizen, irrespective of choice of residence, should have minimum public good and quality of life. Local government and decentralised planning are the avowed Indian mechanisms and strategy to ensure this. For a federal polity that is strongly committed to market-mediated resource allocation and economic growth, the architecture of a viable local governance is to be accepted as part of its national aspirations. Being indifferent to local governments on the grounds of inexperience or inefficiency is a way of ensuring centralisation which is certainly not the road to transforming the nation.   Conclusion Successful model There have been success stories too in local development planning. An Integrated District Development Plan was prepared at the initiative of the District Planning Committee of Kollam district during the eleventh Five Year Plan. Over a period of four years, a district plan methodology was evolved that integrated the rural and urban space through a long process of consultation, debate and discussion with sectoral departments, along with elected representatives at various tiers of local government. Major development choices were made through consensus which ensured the feasibility of implementation. Time to realign to realities India is extremely diverse and thus every district has to formulate its model of district development outlining its short-, medium- and long-term perspectives. In 2008, Planning Commission noted on Kollam initiative that the project gave decision-makers in local governments, the District Planning Committee and other stake-holders the opportunity to consider and take decisions in the emerging area of spatial planning and the methodologies developed by it, can be up-scaled to other districts. Towards Holistic Panchayat Raj report (2013) leveraged panchayats for efficient delivery of public goods and services and even it endorsed the replicability and relevance of the Kollam model. Now the NITI Ayog has to take note of the situation confronting Indian planning and uphold the constitutional obligation by promoting decentralised planning. Connecting the dots: What do you understand by decentralised planning? Critically analyse its need in developing the planning structure in India.   ECONOMY   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.   India and Ease of Doing Business What is Ease of Doing Business?   The World Bank ranks economies on the Ease of Doing Business Index on the basis of regulatory environment within a country. Whether the same is conducive for starting and operating a local firm or not. The following are the parameters used by the World Bank to rank the countries: Starting a business Dealing with construction permits Getting electricity Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency India’s growth story The Doing Business Report 2017, which ranks as New Zealand as Number 1, ranks India 130 among 190 countries, just one rank higher than last year. This is a matter of concern since it shows the worrisome pace of the economic reforms in India. Even the one rank improvement is because India had been downgraded in the 2016 edition to 131 from 130 earlier. India does not feature on the top 10 improvers list as well, which includes Pakistan as well. Picture Credit: http://img.etimg.com/photo/55059057/.jpg The present government had set a target for India to enter the top 50 in ease of doing business ranking in three years after breaking into top 100 this year. However, certain areas of concern which still continue to exist and keep pulling India down the ladder are: Retrospective taxation Simpler land acquisition norms Status quo in ranks in parameters of starting a business and registering property Delays in litigations in matters of payment of bonus and mining royalties Lack of labour law reform   The bright spots  The World Bank has identified certain areas where India has shown satisfactory performance. The identified areas are as highlighted below: Simplifying tax payments E-biz portal Simplifying trade procedures and contract enforcement Ease in getting an electricity connection, where India has jumped 26 spots and obtained a rank of 26 Electronic system for paying Employee State Insurance Contributions, electronic filing of integrated customs declarations Legislative overhauls by way of Goods and Service Tax (GST), Insolvency and Bankruptcy Code and Companies (Amendment) Act are other ways to move up the ladder. Special mechanisms for resolving commercial disputes. Way Forward India hopes that various reforms being implemented will bear fruits in years to come and also feels that some of the reforms have not been considered in the report, of which some were not implemented before the cut off date. Apart from waiting for World Bank to be considerate towards these concerns, for India to shine brighter on this global platform a few additional steps need to be taken as well. Put in place a single window mechanism for registering companies Building a unified database of security interests over movable assets Improving customs clearances Upgrading the rules for registering property and digitizing records Promote role modelling by promoting steps taken by states such as Tamil Nadu and Gujarat who have shown exemplary performance in promoting investor friendly environment. Efficiency in the functioning of bureaucracy and judiciary Connecting the dots India has set itself an over ambitious target of entering the top 50 in The World Bank Ease of Doing Business Rankings by 2017. Comment. What do you understand by Ease of Doing Business? Examine the reasons for a negligible rise in India’s ranking in The World Bank Doing Business Report 2017 in spite of numerous steps being taken in the recent past.   MUST READ Building synergy for energy security Hindu   Hindutva at the hustings Hindu   Failing to take the lead Indian Express   India must delink classroom teaching from student learning Indian Express   Grievous hurt Indian Express   Brown Plant Hopper: Pests in Paddy Indian Express   India slams UN Security Council for ‘unimplementable’ peacekeeping mandates Indian Express   Technology is not here to take our jobs Livemint   Three false beliefs in the field of education Livemint   No clear picture of access to banking in India Livemint   Deciphering the non-conscious Livemint   Reality check for IT companies to stay relevant Business Line   The rationale for multiple rates in GST Business Line  

Oct 27, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 47]

Click here to get all the Tests– Archives Q.1) In macroeconomics, 'paradox of thrift' is concerned with:  Fiscal planning Industrial Production Savings in the economy Unemployment Q.2) The scheme ‘Urja Ganga’ is related with: Gas Pipeline Project River Ganga Rejuvenation Hydro Electric Projects in Gaga Basin Mekong Ganga Cooperation Q.3) The concept of fundamental duties of Indian constitution was borrowed from which among the following? UN Carter United Kingdom Russia Ireland Q.4) Which subjects the Delhi State legislature can make laws on Public Order Police Land Select the correct code: 1 and 2 Only 3 2 and 3 None of the above Q.5) Consider the following statements regarding the Preamble of the constitution. Preamble is not a part of Constitution. Preamble is not a source of power to legislature. It is non-justiciable in nature. Which of the following statements is/are incorrect? 1 only 3 only 2 and 3 only 1, 2 and 3 Download the Solution- Click here All the best IASbaba

Oct 26, 2016 RSTV Video

The Big Picture - Merging Budgets: What are the Benefits?

Archives     Merging Budgets: What are the Benefits? TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Government Budgeting.   The proposed reforms The decades old practice of presenting two budgets- railway and the general budget, will come to an end when two budgets will be merged from next year onwards. The decision by the cabinet also saw the re-schedule of parliament session and to advance the date of presentation of general budget which was traditionally presented at the last day of February. Another change is doing away with plan and non-plan expenditure. History of rail budget A committee was set up under chairmanship of William Acworth which submitted a report in 1924. The report said that Railway be under state control Railway budget separated from general budget Reason- Railways require a certain autonomy, flexibility in the administration. Even at that time it was fairly big organisation which has now grown many times. Merging of budgets These reforms were being considered for long. It will give multiple benefits to the functioning of the government by improving the efficiency of expenditure that government is incurring on infrastructure sectors and other sectors.   Earlier, decision making was politicised, especially the fares. Normally the taxation has to be approved by the Parliament but the user charges did not require parliament approval. However, since railways were presenting their own budget, they had to present the revenue and expenditure part to the parliament. This brought forward the rail fares which became a tool of votebank politics and hardly the fares were increase due to populist measures. Now, the reforms will be advantageous if two things are taken care of: Financial autonomy of railways is preserved. The railways work round the clock and throughout the year. Decisions have to be taken immediately on many things. Thus, Railways had lot of power when the finances were under the control of railways. They could use the funds from one project to another which was more urgent and progressive. However, if all this will be available or not is still a question. Earlier, there have been powers which were misused by people. The railway minister worked under tremendous pressure for railway budget as scores of MPs, MLAs and CMs met and pestered the minister for favouring their constituency. Also, the minister also had his own constituency. So, lot of lobbying was done internally. Railway gets required help from the exchequer from progressing its projects. Right now, railway gets GBS- Gross Budgetary Support. It was 40000 crore last year which now needs to be now increased. However, there are talks that GBS may go down as dividend of around 10000 crore is not going to be taken. In such case, there will be no added benefit to railways. The purpose of the merger is that railway develops faster. If it has to again cry for money, progress will not be as expected. Difference made to railways- There should be result in improvement of railway system, the development of railways should accelerate and the projects which are languishing for years should be completed quickly. However, the parliament should have been taken into confidence on this subject. The finance committee of parliament has taken up this subject to study the ramification of the separation of railway budget from general budget. But this is a post mortem as government has already decided. Instead, the government could have waited for finance committee’s report. This would have made parliament’s view available to government before they take the decision. Plan and no plan expenditure has also been eliminated The elimination of plan non plan expenditure bifurcation was overdue and it was a part of Rangarajan committee recommendation too. India was getting into a situation where it was able to provide for capital expenditure but not maintenance expenditure on assets created by government. The origin was that the Finance Commission will devolve funds to the state for capital expenditures which would include maintenance expenditure on past investments. But the maintenance expenditure on new investments cannot be covered by Finance Commission since it does not know how much they would be and hence they were included in the planned expenditure. It was becoming increasingly meaningless because in key areas like education and health, it is essentially maintenance expenditure as most of the investment stuff has been done. So much of the plan was revenue type expenditure. However, it will also mean that there will be change how centre-state fiscal relation are done. The states are being made to adopt new thigs- GST is being implemented, the expenditure has to be streamlined as per new definitions. Thus, the states need help to implement the new changes. No mechanism has yet been evolved as how the state governments will adopt to these changes in revenue and expenditure patterns. Budget making is presenting revenues and expenditure for next year. Though with the proposed change, the expenditure will get sanctions much before April 1, but on the revenue as well as expenditure projection side, it is doubtful about how much information the government would have before going to budget. The crucial information about the GDP growth for next year is very important. Earlier, there were limitations with February estimates, now it is going one quarter before, before the end of financial year. Hence, how much weightage can be given to the estimate and how much use it can have on revenue projection is dubious. For past 10-15 years, all revenue projection have been off- track. So, given the new changes, it will be important to see how will such early revenue and expenditure projections for next year be effective. However it has been said that Finance Minister can revise the budget estimates before March 31, if the data varies too much. Another view says that getting advanced GDP numbers should not be such a big challenge because the CSO has said that it can make the basic information available on the kind of economic growth that they projecting for next year. The nominal growth figure is the key. It has two components- the real GDP growth estimate comes from CSO and the inflation estimate comes from economic division of finance ministry. The economic division will face more critical time in predicting the nominal growth on the basis of which the deficit ratios will be fixed but they are not insurmountable. The bigger challenge is to get revised estimate number on expenditure side. Normally the revised estimate figures are worked out by November by when there is a fair idea of three quarters. However, such challenge will be faced this year only as by next year the CSO will come out with new device and instrument by which new and accurate GDP numbers can be projected. Another issue will be that indirect taxes take immediate effect in a budget. The moment the budget is advanced, if the budget sees indirect taxes, which this year GST may actually raise.  The upside of this year’s revenue will be very substantial. Hence, there are three basic challenges- Expenditure side estimate GDP estimate Indirect tax revenue issue Conclusion To believe that rail budget is dead is an exaggeration of sorts. The railway minister will not have the pleasure of delivering a speech but the railways budget exercise will be continued and railway board members will have to explain the rationale of budget. It should be seen that the rights that belong to the railways and Rail Tariff Authority and Railway Development Authority of fixing fare and freight should not be seeded to finance ministry. Now, there wont be railway budget but demand for grants. The scope of demand for grants is limited. The finance ministry should not micromanage the railway finances. Functional autonomy for effective and efficient working of railways is essential. The trend of de-politicisation of railways has started when the current railway minister did not introduce any new rains. For last 10-15 years, the railway ministers were highly political persons with high political ambitions. Also, new methods like flexi fare as an executive decision have been introduced on trial bases. This will make sure that railways manage to create income for them for their sustenance. Key words: Gross Budgetary Support: The Government's support to the Central plan is called the Gross Budgetary Support. The GBS includes the tax receipts and other sources of revenue raised by the Government. Nominal Growth: The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP. Connecting the dots: Is merging of budget expected to bring more freedom for railways? Examine.   Related article: A unified budget- Railway budget to be merged with General budget Don’t merge rail and general Budgets

Oct 26, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 26th October, 2016

Archives   IASbaba’s Daily Current Affairs – 26th October, 2016   INTERNATIONAL   TOPIC: General Studies 2 Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Effect of policies and politics of developed and developing countries on India's interests, Indian Diaspora.   India and it’s Foreign Policy Need for changes in foreign policy The present day geopolitical world is continuously evolving and relationships, multilateral or bilateral, and alignments are neither permanent nor consistent. Although India has been making necessary changes in it’s foreign policy by pursuing a robust and an aggressive approach, it needs to evolve its strategy in tune with the changes taking place across the world. Hence, a few key aspects those have to be kept in mind while making these changes are as follows Comprehensive consideration of ‘all’ relevant aspects, Systemic, national and international decision making factors and Coherent and balanced policy approach   Role of Multilateral Groupings The relevance of multilateral groupings, both old and new, continues to be very high. These multilateral groupings such as NAM(Non Aligned Movement), SAARC (South Asian Association for Regional Cooperation), BRICS (Brazil, Russia, Indi, China, South Africa) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) are indispensable and how a nation deals with these and the importance that it gives to them is very critical. Even if some of these institutions are not as significant as they used to be, still how they are dealt with is important. India’s Approach towards Multilateral Groupings Since the world is gradually moving towards exchange politics and certain groupings are losing their relevance, India is seeking membership of various new institutions such as the NSG (Nuclear Supplier Group), Wassenaar Agreement (on Export Control for Conventional Arms and Dual-use Goods and Technologies) and full membership of organisations such as SCO (Shanghai Cooperation Organisation). However, India needs to assess the utility of older groupings, of many of which India has been a founder member, in a very careful manner before discarding them completely and India should attempt to have its presence at as many groupings as possible. Relevance of NAM and SAARC Even though the world is shifting towards strategic alignment from non alignment, NAM should not be written off completely. It’s contemporary relevance is as follows: Continued relevance for the Third World Nations Acts as an alternative stage for presenting different opinions For India, it is important for countering the aggressive growth of China SAARC Unlike NAM, SAARC holds greater significance for India and it is like an anchor of the SAARC. Undermining SAARC solely due to the Indo- Pak crisis is not advisable and will lead to letting go off benefits of a bigger picture. BRICS and BIMSTEC cannot be an alternative to SAARC because of the following reasons Growing influence of China in the region The increasing proximity between Russia and China and weakening of the Russia India China trilateral Deteriorating economic conditions in Russia, Brazil and South Africa   Changing Equations Changing Foreign Policy India needs to ensure that various changes in it’s foreign policy are not just isolated steps which bear only short term fruits of marginal importance. Signs of such instances can be seen in India USA relationship which was not at a similar high as it is now and India Russia relationships are probably at their lowest today. As a result of such an approach India is also witnessing increasing ambiguities in its neighbourhood and losing out on benefits it could have gained from the Russia India China trilateral. Way Forward India needs to ensure that it does not see the world through a very narrow lens of terrorism only. It needs to focus on numerous other matters of global concern. India needs to focus on accelerating its economic growth and human resource development. Connecting the dots As the world moves from non alignment to strategic alignment, discuss the contemporary relevance of Non-Aligned Movement (NAM) and South Asian Association of Regional Cooperation (SAARC) Along with coherence and balance in policy, it is essential that foreign policy has to evolve in line with the changes taking place across the globe. Highlight how India’s foreign policy has been in line with the above criteria and suggest necessary changes which India still needs to incorporate in it’s foreign policy.   Related articles: TLP 2015 No more aligned to ‘Non-Alignment’   SECURITY/NATIONAL   TOPIC: General Studies 3 Linkages between development and spread of extremism. General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Malkangiri killings: What is happening in Maoist affected areas? In news: In a joint operation led by anti-Naxalite units of the Andhra Pradesh and Odisha police on the Odisha-Andhra Pradesh border, 28 members of Communist Party of India (Maoist) were killed. It is said that villagers were the informers which led to the success of the operation. Are Maoists losing their ground? Malkangiri: It is a rugged, forested terrain known as the ‘cut off’ area where a cluster of some 150 villages are separated from the mainland by two reservoirs — that the Maoists had made their home for over a decade now. It is situated in the tri-junction of three states – Andhra Pradesh, Odisha and Chhattisgarh. Here the state was practically absent and the Maoists did as they pleased. The densely forested area made it possible for the Maoists to roam freely from one state to the other even as it made it difficult for security forces to enter the area. It was in 2008, when 38 personnel of ‘Greyhounds’, the elite, anti-Maoist unit of Andhra police were killed. Following closely, the Red ultras blew up an anti-landmine vehicle, killing 17 paramilitary personnel on the spot. But today, there is a dwindling support to these Maoists which is evident from a progressing 918 metre bridge over river Gurupriya, which was opposed by Maoists. Once this bridge is completed, it would connect the ‘cut off’ area to mainland Malkangiri by road, making it easier for security forces to reach there – the main reason the Maoists have opposed it all these years. This turn around in weakened support to Maoists is witnessed because of steadily shrinking support of the local tribals. Disillusionment with the Maoists, coupled with the mass outreach programme launched by Malkangiri police has seen scores of Maoists surrender and hundreds of their supporters and sympathisers joining the social mainstream in recent months. The recent encounter is also said to be because of inputs from these villagers that security forces were able to plan an operation. Not long ago, Maoists were active in as many as 18 of the 30 districts in Odisha. But with their footprints steadily vanishing from most of these areas, including the Narayanpatna and Bandhugaon areas in neighbouring Koraput district, the cut off area in Malkangiri remained their sole stronghold. Once this area is freed from their clutches, Maoists would have a tough time finding a foothold in Odisha.   The status of Maoists Apart from the military setbacks, the Maoists are today diminished politically as well. One of their top tribal leaders, Sabyasachi Panda, deserted them in 2012. The surrender of Maoists tribal cadres in Narayanpatna in Koraput district have set the Maoists on the back foot in southern Odisha. For a while it seems that Maoists are losing ground in terms of popularising their left-wing extremism. The reasons could be Leadership crisis: The government policy of targeting top Maoist leaders which has disturbed the political hierarchy of the outfit. Many leaders have been arrested or surrendered or killed. Differences within cadres: differences within the central committee (CC) and the leaders in the state committees, regionalism in the party, ideological differences etc. Implementation of two-pronged strategy- development programmes and police action in Maoist-affected areas) by the Centre. Choking the supply- the government’s tactic of choking materials supply, funding and source of weapons has affected the organisational expansion and capability of the outfit. Anti-maoist movement- the degradation and criminalisation of the Maoist movement gave rise to an anti-Maoist movement in some pockets, especially in Chhattisgarh, Jharkhand and Odisha. Less development- though they claim to protect the tribal areas (jal, jungle, jameen) but have failed to develop them. Other factors- attractive terms for surrender, recruitment of tribal and rural youth in the Indian army and paramilitary forces, job opportunities in private companies, etc. adversely affected the cadre inflow to the outfit. When the recent killings occurred, a ‘plenary’ was believed to be organised by Maoists to examine ways of getting out of the current organisational and political chaos. This information is said to be shared by the villagers with the security forces which is a big blow to their presence in the region. The Maoists have not been able to expand themselves in plains as they are essentially a guerrilla force and thus have been limited to the remote and hilly tribal belt of central India. Picture Credit: http://www.malkangirizp.odishapr.gov.in/documents/1089945/0/malkangiri-river-map.gif?t=1373364954298 Internal security threat In 2006, former PM Manmohan Singh had identified the Maoist movement as ‘the biggest internal security threat’. He clearly said that the "deprived and alienated sections of the population" forms the backbone of the Maoist movement in India. This statement came after unification of various Naxalite outfits into one party which is called Communist Party of India (Maoist) in 2004. These parties had consolidated themselves in some districts by taking advantage of the weak presence of the welfare and administrative agencies. But, even they failed to administer their areas well as they resorted to militarism by subordinating political activism. Because of this, they did little for tribal empowerment. Instead, they settled for a war of attrition against the state. Today, CPI (M) is designated as terrorist organisation in India under Unlawful Activities (Prevention) Act. Even the state has faltered on its part over a decade as it pursued dual strategy of — containing the military threat of the Maoists and expanding its developmental footprint in these districts. Though the Maoists have been driven away from undivided Andhra Pradesh into parts of Chhattisgarh, Maharashtra and Odisha, the dual strategy of state has been unevenly implemented and generated mixed results. Conclusion It is not certain that after such attacks by the states, if the Maoists will give up their insurgent goals and instead join the political mainstream to pursue their avowed ambition of guarding the interests of the tribal poor. Hence, the government has to become more active and increase the intensity, quality and quantity of development and welfare programmes to slowly bring more Maoist affected areas into mainstream development. However, greater political will is required to address the developmental shortcomings. But, the government has to take care that the tribal culture, values and their tradition is protected while aiming to develop them. They opposed the state earlier for its interference with its culture and they felt threatened. Now, the state has to cautiously tread on this path. Also, it has to be assured that private companies in these mineral rich areas don’t exploit the locals else they will rebuke further and may not cooperate with the government or the private companies. Connecting the dots: Why Maoists are considered ‘biggest internal security threat’ to India? Examine. Do you agree that getting tribal in mainstream will lead to loss of their identity and it will be a regressive step in keeping India a heterogeneous country? Analyse.   MUST READ More than a hundred days later Hindu   Review ‘No Detention’, give States discretion to hold exams : CABE Hindu   Reduced role for Centre in CBI appointment Hindu   Neighbour Power Indian Express   Cities at Crossroads: Heaps of hazards Indian Express   The cost of internet shutdowns Indian Express   The Brics push for a more equitable world Livemint   Tell Beijing where to get off Livemint   Financing higher education Livemint   We need to design in India, too Livemint   Roadblocks to India’s competitiveness Business Line   Who said slum voters can be bought? Business Line  

Oct 26, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 46]

Click here to get all the Tests– ArchivesQ.1) Consider the following statements about Chandrayaan – 2 It consists of an Orbiter, Lander and a Rover It is joint venture of ISRO and ROSCOSMOSSelect the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Which of the following countries is not a part of Borneo Island? Indonesia Philippines Brunei Malaysia Q.3) Which of the following regions is called as ‘Third Pole’ Andean Mountains Heard Island glaciers Svalbard in Norway None of the aboveQ.4) _____________ is the only privately-owned railway line in India Railway Orient Train Fairy Queen Train Shakuntala Express Deccan OdysseyQ.5) Which of the following is/are correctly matched Insulin - regulate the levels of blood sugar Keratin - structural component in hair, nails, teeth and skin Fibrinogen - blood clotting Calbindin - facilitates the absorption of calcium from the intestinal wallsSelect the correct code 1 and 2 1, 2and 3 1, 2 and 4 All of the aboveDownload the Solution- Click hereAll the bestIASbaba

Oct 25, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 25th October, 2016

ArchivesIASbaba’s Daily Current Affairs – 25th October, 2016 NATIONAL TOPIC:General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Need for Industrial Revolution in India In early 2016, the Economic report of the President (US) highlighted the threat from automation to lesser skilled occupations in manufacturing and services. Resounding the same threat, the recently released World Development Report by the World Bank said that up to 69% of existing jobs in India are under threat from automation. When looked in a macro views, this is not just about displacement of existing occupations but also puts to test the development model of Asian economy. The Asian economy which now tries to establish its foothold at centre of global economy had been in the peripheral due to technological change and colonisation. Now, once again with growth of automation in the western world, the Asian model of development might experience wobble to its position in global economy.Asia is again at disadvantageous position The Asian model of development was on the basis of state-supported industrialisation. It focussed on export orientation by using lower production costs as a competitive edge. The lower production costs were possible because of the lower labour costs in the early stages and increases in labour productivity later on. Along the East Asia, this model with state and region specific variations was successful. But now, the increasing innovation and dependence on automation will again shift in the favour of owners of intellectual capital and technology which comes from the western countries. Here, there will be diminishing returns to the labour in developing countries with onset of automation. (Meaning: Adding more labour will at some point of time yield lower per-unit returns.) Thus, this will be disadvantageous to countries like India in Asia, which has large, young working population.India will need new industrial policy India will need an updated policy, Industrial policy 4.0, to align itself to new paradigm of industrialisation. India cannot afford to have business as usual it is more labour based industrialisation. If so happens, India will be demoted back to a peripheral position in the global economy with a large segment of its population unemployable or under-employed in the new economic context. This might lead to terrible socio-economic and political implications. Thus, it is important to keep the inevitable transformation in mind and create an appropriate policy which shall be capable of minimising the negative effect of automation. For this, the industry needs to create competitive opportunities for employment which would require massive resource mobilisation focused on developing the ability of the working population to absorb new skills. The new industrial policy will require investment in high-quality skills related to applied science and technology, engineering, quantitative and social analysis, design and product development. The shopfloor activities will be still done by humans who would require high familiarity with technology and analytical abilities. Hence, the workers would need to have educational levels currently available to college graduates and advanced industrial training institutes. This means that the industrial policy is closely linked to educational policy.Education as industrial policy India is aware of the abysmal state of its educational standards and quality, especially the higher education system. The primary education has received full focus of the government but after that in higher education, much has been left to situations. This has made the Indian higher education perform poorly as well as creation of inadequate infrastructure. Few stats are mentioned: Industrial training (mostly basic and outdated) creates only 1.7 million graduates annually. In next three decades, over 300 million new workers are expected to be added. In that comparison, the industrial training is appallingly low. There are around 7 million graduates every year from social and natural sciences. It is unfortunate that many of them come from poorly run state universities and also, most of them lack applied skills. It has been observed that institutional expenditure in universities is largely dominated by staff salaries and maintenance (85%). This leaves very little for investment in research and advanced learning modules (5%). This has given rise to culture of mediocrity and low adaptation to change. Major tech firms re-train over 80% of their fresh engineering recruits. Now, this re-training which is largely for ‘low-skill’ jobs are expected to be overtaken by automation! In such a scenario, the quality of teaching required for inculcating Industrialisation can be safely assumed to be absent. Thus, in this condition, if there is no updated industrial policy, India is set to lose its economic growth run.Conclusion- Need for change There is now a requirement of unflinching political will which will be able to radically alter the existing apparatus of skilling and higher education. Education is a state subject, hence, a political consensus is a critical challenge. The action plan for tackling the educational and training challenge will be a long and painful process as huge resource mobilisation will take place. Hence, it is difficult but inevitable to bring in together multiple stakeholders of educational sector who don’t have vested interests within the teaching and academic community and rather look forward to work for a larger goal. Hence, it requires important interventions like Private Sector involvement Financing the curriculum- innovative ways will be required to finance the development of advanced curriculum Integration with industrial and applied training Sustainable pool of next-gen teachers and trainers. Combination of ICT-based training with regular classroom teaching and on-the-job training and creating balance between them. Each of the intervention will require mission-mode initiatives. Interventions like ICT based training will need global best practices and thus the industry has to be on board on framing educational policy. The Skill India programme is good start for the government but it will not be sufficient for the enormity and complexity of the industrialisation issues. It has to be understood that skilling people and educational reforms are two separate initiatives with little actual overlap. Skill India scheme wont solve the poor education standards. Thus, the first step is recognising the enormity of the challenge, second is to integrate the industrial development and available financing options and then re-designing them with a skilling and higher education focus. This would lead to formation of various action plans. The ministry of finance and Ministry of human resource development should start a dialogue on developing the roadmap for an Industrial Policy 4.0 because the new industrial policy will be focussed on making Indian human resources ready for the next level of industrialisation. This is a long and difficult path but if not taken, there is a risk of not being able to maintain the economic growth in the country and after automation takes over manpower jobs, India might suffer once again from under-development and under-employment.Connecting the dots: What is automation? Is it a threat to developing countries? Critically examine. Technologies like Automation, artificial intelligence are slowly taking over human jobs. Is this an alarming situation? What should be done to prevent robots from ruining human lives and livelihood? Discuss.INTERNATIONAL  TOPIC: General Studies 3 India and its neighborhood – relations Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests, India’s interests Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora Important international institutions, agencies and fora- their structure, mandateInternational North-South Transit Corridor (INSTC) Transit CorridorsIran’s geographical location and proximity to India, make it an ideal transit hub for reaching Russia and CIS countries. The country is politically stable. It is also a fast growing economy. Its GDP is expected to grow by 5 % this year. Lifting of sanctions has made it easier to do business with Iran.There are multiple axes along which International North-South Transit Corridor runs northwards from Bandar Abbas port. (Locate these ports and places in your Atlas) Amirabad port on the Caspian Sea, and Inchebarun crossing on Iran’s land border with Turkmenistan, are connected by rail-road to Bandar Abbas. Inchebarun railway crossing was inaugurated by Presidents of Kazakhstan, Turkmenistan and Iran in December 2014. Bandar Abbas is connected with Astara port on the western fringe of Iran’s Caspian sea-shore by road; the railway line has a gap between Rasht and Astara. There is rail connectivity between Bandar Abbas and Mashad, and Sarakhs, in the north east on Iran’s border with Turkmenistan. Thus considerable infra-structure already exists. Do you know?In 2014, a trial run was also conducted by Federation of Freight Forwarder’s Association of India (FFFAI) under the aegis of Department of Commerce, GOI. Two containers were sent north to Astara port and Amirabad port from Bandar Abbas by road. Iran’s Caspian Sea ports of Astara, Bandar Anzali and Amirabad are connected with the Russian port of Astarakhan. There is a railway line from Astarakhan to Moscow. This route will save an estimated 40 % in time, and 30 % in cost over the traditional route from India, which goes around Europe to St. Petersberg and Moscow.Iranian ports are similarly connected with Kazakhstan port of Aktau. Kazakhstan participated in development of Amirabad port in Iran as an outlet for its wheat exports. Economic importance of INSTCAccording to a study done by Federation of Freight Forwarders Association of India (FFFAI), INSTC will reduce the distance from JNPT port in Mumbai to Moscow via current route from 8,700 nautical miles to 2,200 nautical miles and 3000 km (over-land).In terms of cost, this will reduce the freight cost of a 20 feet container from USD 1400 to USD 1250. The transit time will be reduced from 32 -37 days to 19 days. INSTC will also bring enormous saving in time, and cost, for transit to CIS countries through Iran. (Existing routes either go eastward to China and then loop back westward to CIS countries. The alternate route through Georgian port of Poti is also too long.)Absence of a direct route is one of the factors behind the rather small trade volume between India and CIS countries. Russian and CIS economies together have GDP of more than 1.6 trillion dollars. Global imports of CIS countries from all sources exceed USD 67 billion. India’s share in their total import basket is a miniscule USD 362.5 million or 0.54 %. In case of Russia, while its global imports are USD 193 billion, imports from India account for only USD 1.587 billion or 0.82 %. The break-up is given in the table below: Transit TradeTransit trade continued during the sanctions period; there were no sanctions on the transit trade per se. Exports routed through Dubai accounted for much of the north bound traffic through Iranian ports on the Caspian. Bandar Anzali also receives machinery, wood and steel from Russia.Iran is also being used as a transit hub by member States of Economic Co-operation Organisation (ECO). This is a regional grouping of countries. This includes trade along east –west axis from Turkey to Pakistan and CIS countries. Ashgabad Agreement signed between Iran, Oman, Uzbekistan, Turkmenistan and Kazakhstan will also contribute to increasing transit trade.However, the volume of transit trade through Iran is low. (Transit trade through Iranian ports was 7.4 % and 7.09 % of the total traffic). It should pick up as insurance, banking and shipping arrangements are normalized following lifting of sanctions.Iran after the SanctionsLifting of sanctions should make it easier to do business with Iran. This will boost transit trade as well.Payment for Iranian leg of the transit, and insurance, were problems during the sanctions period. These issues can be resolved now that sanctions have been lifted.This will make it possible to have single set of documents for the entire journey from India to Russia or CIS countries. Direct payments will bring down transaction cost. International North South Transit Corridor begins in Iran. Iran is a stable country, and has fast growing economy. According to Economist Intelligence (EIU) report of August, 2016, Iran is expected to record the fastest growth in the Middle East and North Africa from 2016 till 2020. This year, Iran’s GDP is expected to grow by 5 % despite low oil prices. Iran has trade surplus as well as current account surplus.Recent OPEC meeting in Algiers exempted Iran, Libya and Nigeria from production cut, while agreeing to overall reduction in OPEC ceiling. The Iranian government plans to recover its share of crude production in OPEC of more than 4 million barrels a day.While oil export constitute a major share of Iran Government’s revenue, its dependence on oil revenues is less than other countries in the region. It is a diversified economy.Banking channels with Iran are opening up. Already, number of EU banks have resumed operations with Iran. While US dollar payments are not possible under the US sanctions, there is no sanction on payment in Euro, Japanese Yen, Swiss Franc or any other currency.ChabaharWhile Bandar Abbas port is the main port serving International North South Transit Corridor, Chabahar port could also be linked to this route, once Chabahar-Zahedan rail line is built. Zahedan is linked to Baff railway junction to the west, which is connected with Bandar Abbas in the south, and Mashad and Sarakhs in the north east of Iran.An MOU was signed by IRCON during PM Modi’s visit to Iran for building this sector of the railway line.It is preferable that the entire Chabahar-Zahedan-Mashad rail corridor is completed. This will provide a direct, and shorter, access to northern Iran, than Zahedan-Baff-Mashad railway line. Mashad is already connected to Sarakh on Iran-Turkmenistan border. Once the goods reach Turkmenistan, they can move into Central Asia, which has a very well developed railway system. One Belt One Road (OBOR)Iran is discussing projects under ‘One Belt One Road’ initiative. China has already built a 6,000 km railway line from Eastern China to northern Iran. To the extent, OBOR contributes to building infra-structure, it will facilitate trade. There should be no conflict between OBOR and INSTC. The two could be mutually complementary. Traffic flowing along INSTC can use OBOR infra-structure and vice-versa. Way ForwardThere is a need to improve infrastructure within Iran to boost transit trade. This will involve completing Rasht-Astara railway line. This will also require upgrading Bandar Abbas – Amirabad and Bandar Abbas-Inchebarun rail corridor.To make full use of International North-South Transit Corridor, India would also need to sign TIR (Transport Internationaux Routier) and COTIF (convention concerning international carriage by rail). These are conventions regulating road and rail traffic.There is a need to increase shipping lines operating directly between Indian ports and Iran. Shipping Corporation of India (SCI) should start a direct shipping line. This is needed particularly for Chabahar port, which does not have any regular shipping line.During PM Modi’s visit to Iran, financing to the tune of USD 1.6 billion was promised for Chabahar-Zahedan railway line. This commitment has to be followed with negotiation, and implementation, on the ground. Eventually, the railway line will need to be extended to Mashad also.Trade routes bring development. Improved connectivity will benefit all countries of the region.In short, it is time for India to put more weight on the effective implementation of its Connect Central Asia policy through appropriate institutional mechanisms. This will improve its political and economic partnerships with Central Asia countries, including Afghanistan, and will strengthen its connectivity with Eurasian economies. To achieve the goal of this policy, India should establish an India-Central Asia Forum along the lines of the India-Africa Forum.India needs to get more proactive in exploiting opportunities to explore new markets and expand its trade with Eurasia and Central Asia.Connecting the dots: Discuss the strategic significance of International North- South Transport Corridor (INSTC) for India. What are the prospects and bottlenecks for India in achieving the fruits of INSTC? What is the North-South Transport Corridor? What significance does it hold for India economically and geo-strategically?MUST READThe perils of plasticHindu Bird flu and what we must doHindu Postcards of change- India- Myanmar relationHindu Double-talk on free speechHindu Family politics playbookIndian Express The expansion of SinosphereIndian Express The Kigali BreakthroughIndian Express Kerala is a warning about political violence in IndiaLivemint Afghanistan and South Asian securityLivemint The relevance of the ‘New Urban Agenda’Livemint The crisis of farmer politicsLivemint Keep the army out of politics of blackmailBusiness Line