IAS Baba

Oct 22, 2017 AIR

All India Radio (AIR) : Skill Development in India

Skill Development in India ARCHIVES Search 16th July 2017 http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Background: Every year World Youth Skills Day is celebrated all over the world to raise awareness about the issue of unemployment among youth. The United Nations General Assembly in November 2014, declared 15th July as World Youth Skills Day. The theme of 2017 is ‘Skill for All’. Importance: Today, the statistics say that youth are almost three times more likely unemployed when compared to adults. Most of the youth are exposed to the lower quality of jobs. Hence, they require short professional and internship courses which will help them to earn their livelihood in an honourable way. Education and Training plays a vital role to get success in the labour market. World Youth Skills Day 2017 will help the students to enhance their skills and gives them a chance to contribute their skills to the society. Government of India initiatives Govt. of India already started Skill India Mission on 15th July 2015 to overcome the problem of youth unemployment and youth unemployability by equipping youth with industry need specific skills. 100 GST training centres were inaugurated recently Ministry of skill development will promote apprenticeship training and increase the engagement of apprentices to 50 lakh by cumulatively by 2050. Generating meaningful employment is now the important task of the government. Historically, in the pre-independence age, there used to be debate in the national movement itself. Most important step was ‘Wardha scheme of education’ 1937. Following Wardha conference, a committee under Dr. Zakir Hussain was appointed to formulate the scheme of the basic education, which was later called as Zakir Hussain scheme of education. Many of these schemes were tried to be implemented post-independence. But due to economic constraints, lack of administrative structure and shortness of the ministry, not much had been done. The most important plan- Nehru mahanalobis plan also thought of creating employment. But there was too much of deterministic idea about being scientific without exposing or leading to the solution to the problem. With fewer jobs, many were left unemployed. (Nehru-Mahanalobis Model= The objective of the economic policy in the 1950s was to raise per capita income in the country via industrialisation. This was through building machines as fast as possible as capital goods were seen as a basic input in all lines of production. But this strategy was incomplete as there was absence of a serious effort to build human capabilities via education and training.) Present situation There was a general understanding that there were two modes of employment- capital intensive and labour intensive. In context of India, capital intensive couldn’t be depended upon totally as such industries have less job creation. IITs and IIMs became top priority and are now world class. But the intermediaries, the ITIs did not get the support of the government to the extent they should have. Every month, one million people join the labour market. The large percentage is well educated. India produces one million engineers every year and only about 25% of them are employable and get reasonable employment. 75% do either ordinary job or remain unemployed for a long time. Study by Indian confederation industry says that requirement of skilled workforce by 2030 will be 30 crores in India. We are nowhere near the target. The output and the input ratio has increased by not substantially. Thus the employment exchanges queues are ever growing, thus there is a need to think in a multi-dimensional approach. Overall picture of India- there is gap between education, employment and employability. Educated people were not getting employment because they were not skilled. Now, the present government has moved in right direction, understanding the immense nature of the problem. If nothing concrete is done in this regard, the demographic advantage will be lost. Data- Ministry of Skill Development and Entrepreneurship has trained 1.17 crore people in 2015-17 under PM KVY. More than 6 lakh apprentices engaged by the industry under national apprenticeship programme post comprehensive reforms in apprenticeship act 1961. These figures show that things have moved though more needs to be done. Entrepreneurship It is not possible in the context of today’s globalisation and liberalisation and competitiveness, and compulsion to limit the fiscal deficit that government has to provide full time jobs. It can provide initiatives in education but cannot provide entire education. So PPP model is the best way to kickstart reforms in education. The government and the private have to come together to increase the workforces. The spirit of entrepreneurship needs to be extended and developed and India should become a nation of entrepreneurs. There are some important problems Inequality in education is the fundamental problem in education in society, There is need for quality education Education in India being uneven, the government must address it. Many fraudulent institutes are coming up all the time in name providing quality education. Different development levels of different states has to be looked out and then create a unified model where every Indian will get benefit. Accessibility, desirability and social alleviation of BPL families will automatically alleviate by providing meaningful education and skill government. Conclusion It is a beginning. There is a need to enhance skill and its scale. The technological changes have to be incorporated and then there is need train people for organised job and bring out their entrepreneurial qualities. With the ever-changing markets, the workforce has to be trained to adjust to quick change and development. Now is the time to move ahead of lower quality of jobs, labour market inequalities, and longer and more insecure school-to-work transitions. In addition, women should be encouraged for more employment and properly-paid, and not just resort to undertake part-time jobs or work under temporary contracts. Connecting the dots: Skill India is the first step towards economic empowerment. Substantiate

Oct 22, 2017 RSTV Video

RSTV- The Big Picture : Can India Leverage its Forex Wealth?

Can India Leverage its Forex Wealth? Archives TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. India’s forex reserve crossed the 400 billion dollars mark strengthening the hopes that India will be able to withstand an expected reduction in stimulus by the US central bank later in the year. This is a long way since reserves bottomed out at USD 275 billion in August 2013, at the worst point of the Fed taper tantrum. The reserves stock has increased on the back of strong foreign portfolio inflows, net investment flows and a narrower current account deficit. The forex surged by 6.2 billion dollars which is likely to help the rupee volatility that may be seen on exodus of foreign funds on India’s debt and equity markets. Foreign investors have pumped in more than 1 lakh crore rupees in Indian debt and equity market in last one year. This in one sense is the validity and success of the economic reform process that began in the wake of the BoP crisis in 1990-91 when the reserves had fallen to less than $1 billion. It also portrays the good quality of overall macroeconomic management, especially of the external sector, in the post-reform years. Why higher reserve needed? India is a supply constrained economy. There is always current account deficit. Now it is 2.5% of GDP in first quarter of 2017-18. Lot of forex reserve is required to meet India’s demand. The export-import ratio has stagnated. The global market is still volatile. India will not be able to increase export trajectory as demand may remain subdued. Geopolitical conditions are constantly being strained and there are risk to global growth. That’s why reserve at this juncture is needed. What high reserves mean? It is an insurance against any kind of external shock which can impact the rupee as India runs a current account deficit. It exports far less than it imports. Moreover, the current account deficits are financed by capital flows which are most difficult in nature. It is described as hot money and can reverse any time. There is a loss of confidence or increase in risk aversion in the west. It took a decade to move from 300 million dollar reserve to 400 million dollars. The increase in reserve is due to increase in portfolio investments, equity and investments in debt market. There is now higher degree of import coverage of 13 months of imports. This gives confidence in the Indian currency. This is attracting it as a good investment source and there is increase in FDI. All these advantages can be wiped away if there is a foreign currency crisis. There is no proof to the contrary that a huge amount of reserve can withstand against a major currency crisis. This is unlike china which has 3 trillion dollars reserve which it has earned the surpluses coming from higher exports and lower imports, India is borrowing and accumulating it from portfolio capital inflows and therefore there is a cost it incurs. These reserves are accumulated from the surpluses of the capital account. So there is a cost incurred by holding these reserve. Volatility in rupee Rupee prices keep fluctuating all the time. Sometimes we need more rupees to buy one unit of foreign currency and sometimes we need fewer rupees to buy one unit of foreign currency. This change in rupee price is known as rupee appreciation or depreciation Appreciating rupee- when value of rupee increases (becomes expensive) and fewer rupees can buy one unit of foreign currency. Also called as strengthening of rupee as now INR is worth more than foreign currency. (Import is favourable) Depreciating rupee- when rupee value decreases (becomes less expensive) and more rupees can buy one unit of foreign currency. Also called as weakening of rupee as now INR worth is less than foreign currency. (Export is favourable) Appreciating rupee brings other kind of problems- the exports aren’t increasing at all. Instead of leveraging the reserves that are rising, there should be composition of the reserves. Much of the money has come through the debt route with 2017 having inflow of 1 lakh crore compared to Rs. 45000 crore in 2016. However, rupee appreciation and depreciation is not entirely related to export growth. When rupee was appreciating in 2004-05 and 2006-07, the export growth was more than 25%. These are the global demand conditions on which export of the country is based on. There is need to take a hard look at exchange rate policy not from export perspective but a rapidly appreciating rupee always endangers and carries the seed of macro-economic instability. It happens because the more rupee appreciates, the imports become cheaper. Over time, the trade deficit on structural basis, the difference between merchandise exports and imports have continuously expanded for more than a decade. The more the imports takes place, the wider is the CAD. The moment portfolio capital investment comes to a sudden stop, there will be a reversal. Here forex will help to check the path of depreciation. But eventually is unsustainable as seen in 2011, 2012 and 2013. If there is an exchange rate policy where the rupee is getting stronger, the tradeable import sector is easy to import. So the tradeable import sector is facing competition from manufacturing side and foreign exchange management side. If the exchange rate policy is relaxed and RBI can moderate it, things would be better and there would be better quality of forex reserve. China and India They are significant differences between China and India. When China started liberalising, they followed export led growth model of industrialisation in late 1970s. The key difference is china managed to relax the FDI rules and managed to attract FDI into the exporting sectors and therefore was able to generate substantial surpluses. Through same mechanism, it was able to lift out its surplus labour from agriculture into industry and thereby achieve reduction in poverty. India has been much slower in opening up and liberalising FDI flows. Moreover, even after liberalisation, there is less FDI in exporting sectors. India also embarked upon opening its capital account side in parallel to trade liberalisation whereas china never gave up much control on capital account but it now it has begun to relax the capital account a bit. Conclusion Forex reserves are likely to increase further in the coming years, although the accumulation being driven by current account surplus may not happen soon. Nonetheless, the focus henceforth will possibly be on the quality of portfolio management of reserves, especially on the risk-return profile and performance of foreign currency assets (FCA). Demonetisation has had effect on the liquidity. There has been monthly 30% rise of non-oil non-gold import from February. Hence RBI has a major currency management challenge. Also, there is a need for domestic demand to build up to encourage investments. The stagnation in IT services, its export is not a favourable circumstance for India. And thus, domestic demand is one way forward to sustain the macro economic conditions. Connecting the dots: India’s high forex reserve is due to India’s economic policy post BoP crisis. Do you agree with the statement? Discus. Critically analyse how current account deficit affects India’s economic growth.

Oct 22, 2017 AIR

All India Radio (AIR) : Political Consensus on India-China Doklam Standoff

Political consensus on India-China Doklam standoff ARCHIVES Search 15th July 2017 http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 2 India and its neighbourhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests General Studies 3 Security challenges and their management in border areas; Background: China’s policy in the last decade has been to gradually expand in all directions and change the facts on ground. They are not being challenged and getting away with it. This is seen in SCS where many rocks have been converted into islands and there are air bases on them. So whole thing is of militarization expansion. This is the same broad policy which they are executing against a small country like Bhutan. It is clear that the tri-junction area is an area on which there is no agreement between Bhutan and China. China is trying to change the facts on ground by building that road when they had a clear negotiation that status quo will continue till they agree what is the exact international border between Bhutan and China. On 16th june, construction work started in Bhutanese territory by the Chinese group. When Bhutan soldiers confronted Chinese army, there was no paying heed to them. So Bhutan consulted Indian soldiers. There is an understanding between India and Bhutan that both countries will closely with each other on issues related to national interest will be together. The tri-junction territory that China is trying to occupy has vital significance for India. It is like a dagger at the heart of siliguri corridor. It is vital for India’s security and thus India had to take the step of stopping the Chinese soldiers. In last one year, relations between India and China have deteriorated despite the best efforts of Indian government. Some of the main interests of India has been vitally affected by Chinese stand in cases such as NSG and Masood Azhar. Terrorism is an emotional issue and they are backing Pakistan. Yet it promotes CPEC goes through PoK which is India’s territory. When China is sensitive to its own territorial claims like Taiwan or other islands with japan, they have shown total insensitivity towards Indian concerns. The place Picture credit: https://i1.wp.com/thewire.in/wp-content/uploads/2017/07/11-Screenshot-of-the-area.jpg?resize=1160%2C691&ssl=1 There is a 6.2 km gap in understanding the situation. China says its Gyemochen whereas India says its Batang La. In 1890, the demarcation took place where the water shed principle was agreed upon. It is clear that if that is followed then the tri junction should be batangla which is 6 km north of place China is claiming. The response China did not expect such a quick reaction by Indian army. Bhutanese immediately sensitized India about the situation. It has bullied many small countries in SCS and now they are towing the Chinese line. Thus, India has to clear to world that China is trying to bully Bhutan and India is trying to come to assistance of it. Also because of history shared and treaties agreed upon, India has given support to Bhutan. It is important that whole country is united in this episode in the issue. When there is national interest involved and difference with another country, media has many misinformation. Hence, for government to reach out to people and opposition is good idea. China has strategy to wage a media war and a psychological war. Chinese official media has been quite aggressive. Indian side response is restrain. The government is clear that this issue can be resolved diplomatically. The government doesn’t want differences to become disputes. How to deal with China? China has long term vision and plans. What they do, their objective is of 10-15 years down the line. Their establishment, media, party, diplomats, journalists speak same voice. Any agreement with Chinese should be taken in writing. Privately sometimes they agree to something and later they revile from that stand. Though it is difficult to negotiate with them, they respect if other country takes a stand and if they have some principles on which they abide. Conclusion India and China can resolve this issue. Chinese should stop road construction and India will withdraw from Bhutanese territory. Diplomatic engagement can open a way to solutions provided the parties to the conflict come on same table with rational points. Connecting the dots: India has had lukewarm-cold relation with china since long time. Yet India shares huge trade relations with China. Examine the prospect of economic relations vis-à-vis national security issues.

Oct 22, 2017 Motivational Articles

Creative Guidance – Attachment – Inspirational & Educative Articles

Attachment: Everything we experience becomes a part of us. The predicament of a human life has always been how to experience life without getting attached to our experiences. Attachment is the root of pain, suffering and frustration. The more attached we are to something, the more pain it causes. There is no other pain that can be compared to the pain of attachment. Our entire quest is to find a non-sticky emotion repellent suit that keeps us away from unwanted attachments and suffering. Attachment is not all that bad when accompanied with conscious and mindful action. Attachment is a beautiful thing for a conscious mind. But how many of us are actually conscious of what we are doing and conscious of what is happening to us. In a state of unconscious or let’s say partial consciousness, attachment becomes the biggest problem. The mind simply goes on gathering experiences; it becomes heavy and heavy, until that day comes when every step of life becomes a burden. A day will come when we have to think at least a 100 times before taking a single step. The whole beauty and magic of life is in an experience that is not burdened by unnecessary attachment. In truth, it is not attachment that is the problem; attachment to our attachments is the problem. Vivekananda once said that the best way to live in this world is with a sense of detached attachment. The real secret to living lies in being in this state of detached attachment. We have to be attached to everything around us to feel a part of it. We have to be attached to our parents, friends, family, society, culture and so many other things that not only add meaning to our lives, but nourish us and define who we are. By cultivating a sense of detachment deep within, it becomes infinitely easy to love, care, give and still be unburdened. The single biggest problem with human beings is that we simply cannot allow things to happen naturally and effortlessly. We cannot let go of things. Our attachment to experiences is so deep that we easily get entangled in the web of life. If only we can see the sticky part of the web of life and learn to navigate around it, life becomes a truly magical experience. Criticism, negativity, jealously, mistrust all have their roots in extreme attachment to the idea of who we are and what we are doing. With a little bit of detachment, it becomes extraordinarily easy to accept and accommodate people in our lives. With detachment, we can share, care and love with infinite intensity and depth. Only when we can step away from ourselves a little bit can we really see the purpose of life and what our role in it is. We are looking at the world through the lenses called us. Everything we see is skewed and adjusted to our personality and desires. We rarely see things; we only see what we want to see. If only we can step away from ourselves and look at life with a little detachment, life unravels its mystery and reveals its magnificence. “The articles are a copyright of The Ahamo Movement and IASBABA.”

Oct 21, 2017 AIR

All India Radio (AIR) : Gene Therapy for Cancer

Gene Therapy for Cancer ARCHIVES Search 10th July 2017 http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 3 Science and Technology- developments and their applications and effects in everyday life In news: There is ray of hope for cancer victims, especially victims of leukaemia, i.e. blood cancer. A new mode has been approved by US FDA which allows to alter the genes of cancer patients. The reengineers can be put back in body of cancer victims and make cancer patient fight the disease. There are various therapies to cure cancer Surgery- remove the tumour Radiotherapy- radiate the tumour and heal the tumour cells. Healthy cells are damaged. Chemotherapy- chemicals are injected into the body intravenously, oral route and kill the tumour cells and healthy cells. Immune therapy – no outside help to be taken. Chemical agents of x-rays. The body’s immune cells will kill the tumour. How the new therapy works? Known as a CAR-T therapy, the approach has shown remarkable results in patients. The treatment is not a pill or a form of chemotherapy. It uses a patient’s own immune cells, called T-cells, along with white blood cells. These cells are removed from a patient, sent to a lab, and encoded with a viral vector, reprogrammed, and returned to the patient. Here, these cells wont kill healthy tissues but only tumour. The process The report has been given to 35 countries. Every country has to do clinical trials to approve its use. There are monoclonal antibodies which augment the t-cells and have break on the t-cells. Monoclonal Antibodies (mAbs)- One way the immune system attacks foreign substances in the body is by making large numbers of antibodies. An antibody is a protein that sticks to a specific protein called an antigen. Antibodies circulate throughout the body until they find and attach to the antigen. Once attached, they can recruit other parts of the immune system to destroy the cells containing the antigen. Researchers can design antibodies that specifically target a certain antigen, such as one found on cancer cells. They can then make many copies of that antibody in the lab. These are known as monoclonal antibodies (mAbs). Over past couple of decades, USFDA has approved more than a dozen mAbs to treat certain cancers. Side effects As T-cells are modified genetically, so there will be reaction. So there is cytokine release system in the immune system. This cytokine immune release may lead to brain edema, may attack any organ of the body and cause damage. But it is risk worth taking as it is working well. Long time is taken to bring into market as they are contemplating adverse effect- fever, cerebral edema, various organs had inflammatory signs. All this has to be seen in this context so that patient safety and efficacy is assured. This is first time, there is a therapy to save people’s life. Despite the side effect, as they don’t occur in majority of deviations. Despite of the side effects, they are cured of the disease. The cure in T-cells in lymphoblastic leukaemia is a milestone. India’s fight against cancer Picture Credit: http://www.cipherhealthcare.com/images/no-of-cancer-patients.png India has 14.5 lakhs of cancer cases in India out of which 40% are tobacco related. Leukaemia is mostly visible below 25 years. Blood cancer and solid tumours can be targeted by this therapy. In Indian context, solid tumours will be addressed by this therapy as India is mainly fighting tobacco related cancer. Picture Credit: https://www.thebetterindia.com/wp-content/uploads/2016/11/cancer-2_2_650_020114021033.jpg Patented gene therapy India will not be able to copy the gene therapy as their will be patented rights. But Novartis will bring at lower cost to India. In clinical trials, the patients are not charged. Connecting the dots: “Cancer is making India’s demographic dividend into debt.” Justify the statement with examples and suggest a way forward with respect to new development of medication in this field.

Oct 21, 2017 AIR

All India Radio (AIR) : Malabar 2017- A Joint Naval Exercise

Malabar 2017- A Joint Naval Exercise ARCHIVES Search 10th July 2017 http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 2 Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests In news: India, US and Japan took part in Malabar exercise in Bay of Bengal in its 31st edition. Malabar importance in terms of strategic position of India, US and Japan. Malabar exercise is done annually between India and US Navy. Earlier it was carried on west coast but from 2007 onwards, India is holding exercise in Bay of Bengal and alternatively in Sea of Japan. Japan have joined exercise 7 times before, but this time they were formally inducted now onwards. Malabar 2017 featured 95 aircraft, 16 ships and two submarines, making it one of the largest naval exercises in the region in recent times. Background: The annual Malabar exercise started in 1992 as a bilateral event between the navies of India and the United States. It was an important step in the process of reviving India’s relation with USA, as both countries had occupied opposite ends of the spectrum during the Cold War. The aim- Increase interoperability Learn from each others’ experiences Observe Make friends Show solidarity between participating navies The thrust of exercises at sea this year would be on Aircraft Carrier operations, Air Defense, Anti-Submarine Warfare (ASW), Surface Warfare, Visit Board Search and Seizure (VBSS), Search and Rescue. What are the landing procedures? How the person on board aircraft carrier guides? What aids are available to pilot? This is subject matter of discussion during the present Malabar. Anti-submarine warfare is an important component of naval warfare. It assumes significance in Indian Ocean Region because hydrological conditions are severe. This means it is easy for submarines to hide in Indian Ocean water. It is consequently difficult for warships and aircrafts to search for them. India acquired P-8I aircraft which are for searching submarines in Indian Ocean. There is state of art sonars on newly commissioned ships. So India is well equipped to participate in these operations. For US it is important as they don’t generally operate in this area. Now they are getting an opportunity to test their sonars, sono buoys, P-8I capability against the submarines in Indian Ocean, there are helicopters which are being participated by 3 navies. So ASW has lot of significance. India is becoming partner to US? These exercise shouldn’t be interpreted as India joining some group. The Indian navy does joint exercises with 13 countries. The complexities of exercise may change- It may be a passing exercise as when Indian ships visit foreign ports and stand with the host navies. This happens with most navies. India does yearly exercises with all advanced navies and friendly countries- UK, France, China All regional navies- Indonesia, Myanmar, Malaysia, Bangladesh, Oman, Mauritius. So joint exercises doesn’t mean India is becoming part of the alliance. Joint exercises are held to learn from each other. Increased scope Complexity of exercise has increased in scope and work. With foreign navies, such exercise become more interesting as India is able to start getting into the nitty gritty of subject matter. There is a first-hand view of warfare tactics used by respective participating countries. Soon there might be increase in weapon firing between navies in terms of displaying more sate of the art technology available with them. Normally on aircraft, the landing is more challenging. It is complex for two reasons: Deck is small. So more accuracy needed Aircraft carrier is moving, the runaway is moving. So now the naval designers have designed that landing aircraft has a hook with it and there are arrester wires at the runway at sea. As it aircraft lands on that runway, it throws hook on the wires and is brought to a halt immediately. If it is missed, then the aircraft pilot is trained to take off again. Reaction of Russia So far as naval officers are concerned, they know what joint exercises are about. They don’t see anything beyond it. Naval officers essentially see joint exercises as means of interacting, both socially and operationally. Major part of joint exercises is interaction. Recently India had fleet review where hundreds of sailor and officers interacted with each other. So when these officers grow in ranks and head the navy, they shall remember the bonds shared during interactions. Conclusion Naval exercises are a complex process. The exercise are for 4 days, but the preparations start 4 months ago. What are going to be participating units, exercises, schedules etc are planned in detail. Also, there will be debriefs and reports post the exercises. The feedback goes back to the ship designers also which can learn and incorporate them. Navy will be the dominating force on India in coming times. It will be a kind of diplomatic military dominant force visible in other countries. Navy ought to be dominant force as there are sea lines of communication. However, India is still short of ships, aircrafts and submarines which is slowly needs to incorporate at available capacity. The responsibilities are growing and Indian Ocean Rim Countries look up to India to provide protection to them. Connecting the dots: The Malabar exercise 2017 is a critical security exercise between countries who see china as a fierce challenger. Do you agree? Give reasons for your answer.

Oct 21, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 21st Oct, 2017

IASbaba’s Daily Current Affairs – 21st Oct 2017 Archives 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. Important International institutions, agencies and fora- their structure, mandate Nuclear agreement with Iran: Objection from U.S. In news: Recently President Donald Trump announced that he could no longer certify that continuing the sanctions waiver for Iran, under the Joint Comprehensive Plan of Action (JCPOA), contributes to U.S. national security interests in view of Iran’s aggressive behaviour. Mr. Trump’s new policy therefore aims to “neutralize Iran’s destabilizing influence and constrain… its support for terrorism… and ballistic missile [programme]”. Background: The JCPOA, signed on July 14, 2015, was the result of prolonged negotiations between Iran and P5+1 (U.S., U.K., France, Russia, China, Germany and EU). Talks began in 2003 between Iran and E-3 (Germany, France and U.K.), and in 2005 expanded to the P5+1 format. Negotiations frequently stalled leading to new sanctions on Iran but became purposeful after Hassan Rouhani’s election as President in 2013. In 2004, Iran had around 1000 centrifuges, and by 2015 the number had grown to 20,000. The U.S. concluded that Iran had recovered from the Stuxnet debacle and was barely months away from producing enough highly enriched uranium (20-25 kg) to produce a nuclear device. While other aspects of Iran’s regional behaviour remained worrisome, the rationale driving the Obama administration was that a nuclear armed Iran would be more threatening. Therefore, the JCPOA focussed exclusively on rolling back Iran’s nuclear activities. Under the JCPOA, Iran ended certain activities (converting the underground Fordow enrichment facility into a research centre and dismantling of the Arak heavy water research reactor), accepted restraints on other activities (reducing the number of operational centrifuges to 5060 at Natanz for 10 years, restricting enrichment level to 3.6% for 15 years, limiting the low enriched uranium stocks to 300 kg by shipping out nearly 10 tonnes of extra stocks and refraining from setting up a research reactor for 15 years) and accepted a highly rigorous inspection regime. In return, about $100 billion of Iranian assets were unfrozen and Iran was allowed to resume sales of oil. The UN Security Council (UNSC) unanimously adopted Resolution 2231, endorsing the JCPOA and lifting the UNSC sanctions. U.S. sanctions waiver: A multiplicity of sanctions (relating to nuclear and missile activities, human rights violations and terrorism) were imposed which also had extra-territorial application, implying that third country companies would be penalised if they engaged in activities from which U.S. companies were barred. An isolated U.S.: Withholding of renewal of sanctions waiver by Mr. Trump would have triggered re-imposition of secondary nuclear sanctions and violated international law since Iran remains in compliance with the JCPOA. In case US congress puts an end to some of the sunset clauses of 10/15 years in the JCPOA by making it permanent it would imply an implicit renegotiation of the JCPOA, something that would attract a veto by both Russia and China were it to be taken up in the UNSC. A divide: For the first time since 1945, a clear divide with European allies has emerged, with German, French and British leaders jointly declaring that preserving the JCPOA is in their shared national security interests. The European Union (EU) foreign policy chief Federica Mogherini said that the world cannot afford “to dismantle a nuclear agreement that is working”. Only two countries have applauded Mr. Trump’s decision — Saudi Arabia praised the U.S.’s firm strategy and Israeli Prime Minister Benjamin Netanyahu conveyed his congratulations. International Atomic Energy Agency (IAEA) Director General Yukiya Amano has publicly stated that Iran is in full compliance with the deal and subject to the world’s most robust nuclear verification regime. Implications: Implications of the breakdown are not limited to U.S.-Iran relations. Iran can make things difficult for the U.S. in Afghanistan as also in Iraq and Syria. The U.S.’s ability to work with Russia in Syria or with China regarding North Korea will also be impacted. Questions will be asked in Iran about why it should continue with the restrictions and inspections that it accepted under the JCPOA, which would have far-reaching implications for the global nuclear architecture. Coming after the rejection of the Trans-Pacific Partnership, the Paris climate change accord and the North American Free Trade Agreement, Mr. Trump’s decision further diminishes U.S. credibility. Future: The deal has broken down because Iran is not prepared to renegotiate it. Other countries have promised to uphold it but their ability to do so will depend on how their companies can be firewalled from U.S. sanctions if they continue their engagement with Iran. Connecting the dots: The nuclear agreement with Iran is in jeopardy with U.S. changing its stance towards the deal. Discuss the implications of such decision and how it has created a global divide. ECONOMICS TOPIC: General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. Avoiding demographic crisis Background: A study from 2014 indicated that 76 per cent of the youth belonging to farming households in India were not interested in pursuing farming as an occupation, and a large share of landless and marginal farmers preferred exploring livelihood options in cities. The reason behind agriculture’s decreasing appeal among even its practitioners is simply that the economics of farming is failing in India. It has to be understood that sustaining 50 per cent of the population gainfully on what constitutes less than 12 per cent of the GDP pie has proven untenable. Farm loan waivers are no solution akin to only a temporary symptomatic relief to a deep-rooted disease. Troubling economy: On all fronts, India’s recent record is troubling. Exports have fallen by and large. Right now, with banks under duress, gross fixed capital formation (GFCF) — a proxy for private investment in the economy — has hit rock bottom. The battered banking sector — thanks to corporate India’s bad loan problem — does little to help the already under credited MSMEs. Construction — which is the second largest employment generator in India — is undergoing its biggest slowdown since 2008. This is worrisome as the diversification of even rural employment towards non-farm is principally owed to construction. The skilling mission has failed to meet the target by huge gap. A fraction of DDUGKY trainees (under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana) went on to be placed, and even fewer of them continued with their jobs. In jobs higher up the skill ladder, all is not well. We have seen unprecedented layoffs in IT sector recently. And then there is the potential impact of artificial intelligence on relatively low-end service sector jobs. Way ahead: Increasing agricultural productivity is part of the solution. But not an end to all woes as it is often a supply glut in perishables that induces price crashes leading to poor or no recovery and trapping the farmer in debt. For example, in 2016-17 bumper harvest notwithstanding, farmers suffered. The inflation targeting mandate of the macroeconomic policy dispensation (RBI and finance ministry) is also problematic for farmers already operating in a fragmented supply chain with grossly inadequate access to either infrastructure, the market, credit or proper insurance. Intelligent ways forward to keep at bay a demographic disaster include: A China-like push to engender an en masse shift from farm labour to industry, or millions of rural micro-enterprises that are in agro-industries or otherwise. A specific push for value chain upgradation including food processing, packaging, etc. by cooperatives or farmers groups / producer companies can be explored. To create mass employment in industry, the manufacturing sector needs to take the lead and perform. This need not be big manufacturing. Even MSMEs are fine. Farmers can be absorbed in manufacturing without much additional skilling, and with an export-oriented thrust, the sector might actually bypass muted demand scenarios domestically. According to latest estimates, MSMEs contributed 37.33 per cent of total manufacturing output in the country. During 2015-16, MSMEs made up almost as much as 50 per cent of total exports. It needs no underlining as to the importance of MSMEs with respect to job creation. The MUDRA initiative — aimed at creating microenterprises across India’s villages, towns and cities — has proven to be a dark horse among all of Prime Minister Modi’s policies. One report goes on to claim that 16.18 million incremental jobs have been created under MUDRA in the last two years. But more rigorous evidence about MUDRA’s impact on job creation and incomes is needed. Government-backed infrastructure projects such as ‘Housing for All’ reflect some hope for construction sector job creation nonetheless. As it would give boost to construction sector. Conclusion: At a time when the Labour Force Participation Rate (LFPR) has been steadily going down (from 63.7 per cent in 2012-13 to 55.6 per cent in 2015-16) — indicating possible spike in youths, including females, enrolled in formal higher education — the economy has to be ready to offer young people jobs — 1 million every month. Connecting the dots: With trouble brewing in farming and realty, factory output slackening and joblessness on the rise, radical solutions are needed if our demographic dividend is to be a dividend and not a crisis. Discuss. MUST READ The man who stole gods The Hindu Unravelling of the Iran deal The Hindu Shine the light Indian Express Hungry for publicity Indian Express

Oct 20, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 20th Oct, 2017

IASbaba’s Daily Current Affairs – 20th Oct 2017 Archives NATIONAL TOPIC General studies 1: Role of women and women’s organization, women related issues, Social empowerment General studies 2: Mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections. Temple Entry Issue: Referred to a constitution bench In news: The Supreme Court of India has repeatedly struck down discriminatory religious practices, the latest of which is the triple talaq (in Shayara Bano v. Union of India , 2017). Recently the Supreme Court referred to a five-judge Constitution Bench the question whether the fundamental right of women to pray at the place of their choice can be discriminated against solely based “on a biological factor exclusive to the female gender.” Background: The Sabarimala temple restricts women aged between 10 and 50 from taking the pilgrimage to Sabarimala – which means women are banned from even making the arduous trek to the shrine. The Constitution Bench of the Supreme Court will scrutinise the age-old practice. The Constitution Bench will decide whether Rule 3 (b) of the Kerala Hindu Places of Public Worship (Authorisation of Entry) Rules, 1965 allows a ‘religious denomination’ to ban entry of women between the age of 10 to 50 years. If so, does this amount to discrimination and violation of the fundamental rights to equality and gender justice. It will decide whether Rule 3(b) is ultra vires the Kerala Hindu Places of Public Worship (Authorisation of Entry) Act, 1965 and violative of the fundamental rights. The restriction finds its source in the legend that the Sabarimala temple deity – Swami Ayyappa – is a 'Naishtika Brahmachari' – and should not be disturbed. A 1991 Kerala High Court judgment supports the restriction imposed on women devotees. It had found that the restriction was in place since time immemorial and not discriminatory to the Constitution. Tradition in conflict with the constitution: Preventing women’s entry to the Sabarimala temple with an irrational and obsolete notion of “purity” clearly offends the equality clauses in the Constitution. It denotes a patriarchal and partisan approach. The entry prohibition takes away the woman’s right against discrimination guaranteed under Article 15(1) of the Constitution. It curtails her religious freedom assured by Article 25(1). Prohibition of women’s entry to the shrine solely on the basis of womanhood and the biological features associated with womanhood is derogatory to women, which Article 51A(e) aims to renounce. The classification based on age is, in essence, an act of discrimination based on sex. R. Ambedkar famously said that public temples, like public roads and schools, are places meant for public access and so the question of entry is, essentially, a question of equality. The managerial rights of religious authorities under Article 26(b) of the Constitution cannot override the individual woman’s religious freedom guaranteed under Article 25(1). The former is intended to safeguard, not annihilate, the latter. A fragile judgment: There is no unanimity on whether the Sabarimala temple bar is ‘age-old.’ The practice rests on a fragile rule and an equally fragile judgment of the Kerala High Court ( S. Mahendran v. The Secretary, Travancore Devaswom Board , 1991). The very purpose of the Kerala Hindu Places of Public Worship (Authorisation of Entry) Act, 1965 is to ensure entry of all Hindus to temples without being discriminatory. The High Court, in its verdict, relied too much on the T antri’s (chief priest) opinion without a deeper analysis of the competing claims. Individual liberty at stake: It is erroneous to conceive of the issue only as one involving a fissure between individual freedom and gender justice on the one hand and religious practice on the other. It also reflects a conflict among believers themselves. Therefore, it is essential to prevent monopolisation of religious rights by a few under the guise of management of religious institutions. Those at the helm of affairs can only manage the institutions in a lawful and fair manner and they cannot be permitted to manage others’ freedom. Any other interpretation of Articles 25 and 26 would damage the very idea of individual liberty. Conclusion: Article 25(2)(b) enables the state “(to provide) for social welfare and reform or the throwing open of Hindu religious institutions of a public character to all classes and sections of the Hindus.” Viewed so, a legislation to put an end to the objectionable practice must be brought in. Connecting the dots: The restriction on women to enter few temples in the country is in conflict with constitutional principles. Critically analyze in reference to Sabarimala temple issue. ECONOMICS 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: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Redefining MSMEs In news: The Centre recently enlarged the definition of what constitutes a startup venture from five to seven years old. The Government has also eased norms for companies to avail themselves of income tax benefits under the Startup India programme. While these initiatives have been welcomed, the traditional sector which largely comes under the purview of micro, small and medium enterprises (MSMEs) is yet to be rescued from a decade-old definition which is stunting its growth. The importance of MSMEs: In 2016, there were more than 36 million such units providing employment to over 80 million persons, whilst contributing about 8 per cent to GDP, 45 per cent to the total manufacturing output, and 40 per cent to the exports from the country. The sector has thus played an important role in India’s economic growth. Issues: The MSME sector in India, with some exceptions, is characterised by low technology levels, which act as a handicap in the emerging global market. Not many units have the ability to access technological expertise or mobilise resources for in-house innovation. MSMEs in India are defined on the basis of the investments made in plant and machinery, according to the MSME Development Act of 2006. The concern is that the limits identified in 2006 have gone out of sync in the last ten years. Definition of MSMEs: Investment levels required to be classified as an MSME: Prescribed limit Manufacturing sector- Micro enterprises are classified as those with investment in plant and machinery not exceeding Rs. 25 lakh For a small enterprise, the investment limit has been prescribed at Rs. 5 crore. For a medium enterprise, the investment limit is of Rs. 10 crore. The above limits were set in 2006. Factoring the inflation: Ideal limit However, factoring the inflation since 2006, the ideal investment limits for micro enterprises should stand at Rs. 43 lakh; for small enterprises the upper limit should be Rs. 8.75 crore; whereas for medium enterprises it should be around Rs. 17.51 crore. The estimated difference between the prescribed investment limit and ideal investment on an average across all the three segments of MSMEs stands at 85 per cent. The MSMEs in the services sector have also been experiencing a similar fate. Global comparison: Globally, medium-size enterprises in the manufacturing industry differ by definition. In China it is defined as those having investment ceiling of 300 million yuan (at the current price level $44 million); in Thailand it is with a ceiling on investment capital of up to 200 million Thai bahts ($6 million); and EU defines medium enterprises as those of having turnover of €50 million, which is approximately $58 million. In comparison, the investment limits for medium enterprises in the manufacturing sector in India as defined in 2006 was Rs. 10 crore, which was equivalent to $2.3 million then. Factoring for inflation, this figure stood at just Rs. 5.28 crore in 2016, or $0.8 million at the current exchange rate. This anomaly is a huge deterrent for enterprises in this sector to grow and participate in the value chain. With such a low investment ceiling, Indian MSMEs are either expanding laterally or engaging themselves at the lower end of the value chain. Way forward: Redefine MSMEs: The Government could enhance the spread of the investment limits of MSMEs to accommodate the technological needs of the sector. This would allow the enterprises to continue as MSMEs while also enabling them to grow. Some regions (such as EU and China) have kept the ceiling on investment for medium enterprises at high levels, encouraging capital infusion, technology upgradation, quality improvement, export orientation and employment generation. It is important to review the investment limits every three to four years, factoring inflation. Since manufacturing operations are generally capital intensive, investment ceiling for SMEs should be reviewed periodically. There should be a broad demarcation within the two broad categories — manufacturing and services, while defining MSMEs. Within these broad categories , each sector would require a different level and size of investments. The need of the hour is to have a definition which would consider not only the capital employed, but also factors such as turnover and number of people employed. Connecting the dots: A big challenge faced by the MSME sector in India is regarding the definition of what constitutes micro, medium and small units both in manufacturing and services. Discuss briefly what the issue is about and how it hampers the growth of the sector. MUST READ Back to the future The Hindu A separate peace The Hindu A first step The Hindu Bans and the livelihood debate The Hindu Why higher education is devoid of quality Business Line

Oct 20, 2017 RSTV Video

RSTV- The Big Picture : Takeaways from Abe Visit

Takeaways from Abe Visit Archives 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. In news: It was fourth annual summit between India and China where 15 agreements were signed between India and Japan strengthening strategic partnership and to strengthen cooperation in the Indo-pacific region as china is now increasingly becoming assertive. The present takeaways are in areas of Defence sector equipment The Asia Africa growth corridor Food culture exchange Research More people to people exchange through language sharing Japan supports India as it provides natural counter balance to china in the region without raising a hostile posture. It can be said that Chinese hegemony has brought India and Japan close. India and Japan look forward to counter OBOR project but it needs more push in terms of money, diplomatic outreach and planning before anything takes off. What lacks? In 2015, the joint statement talked about synergies between India’s Act East policy and Japan’s infrastructure partnership policy. But the bullet train foundation was in 2017. So there needs to be more urgency in the relationship. Also, the much-awaited deal on the purchase of ShinMaywa US-2 amphibious aircraft hasn’t been signed yet. The slow pace of India in responding to bilateral agreement concretisation is detrimental to national security. Restraint by each Japan has an attractive market in India. Japan is still a hesitant partner. Its trade with china in investments is huge. They have self-imposed constraints post the world wars through their post war time constituency like nuclear or defence area. Japan is trying to break out of those things due to china. However apart from restraint Japanese actions, there is a hesitation on India’s part in articulating its own role in ascertaining itself in Asia generally and Indian Ocean in particular and certainly in seas of china. India believes in freedom of navigation in South China Sea so there is no reason for Indian navy to not assert that aspect of it. Security Diamond The security diamond is a natural coalition of states on Chinese periphery. Japan in east, India in west, Australia in south and US state of Hawai in north. This is the way to go. India and Japan are natural counters to the dominating china. The natural way to tackle is to forge partnership between Asian countries to make China more responsible, less aggressive and more accommodative of other countries’ interest. However, this arrangement has not been pushed more. There is no need of USA to interfere in Asia. There is a need of security structure which is organic to Asia. The current world order in the Asia pacific was made after WWII. There is nothing natural in nature of a current world order which is dominated by the USA. As China and India rises and Asian countries become more powerful, its only natural that USA power will shrink over the countries. Bullet train The bullet train infrastructure between two cities which is competing with the airline in comparison to time line and cost will be monumental for Indian railways. Bullet trains will improve tracks, signalling and this is expected to upgrade the standard of rest of railways as a spillover effect. For this, there is a need of an SPV which will run bullet trains. If it is commercially viable there will be investments in it. The Indian railways and Indian government should defer from making investments and instead focus on making Indian railway infrastructure more safe. Terror Japan has been not hit by the magnitude of terror as yet or victimised like India has been through cross-border terrorism. But it recognises that terror is a problem and that terror is incubated in certain areas like Pakistan and state uses terror for its strategic objectives. There is arrangement on intelligence cooperation between two countries but it doesn’t have that much of traction as far as India’s problems are concerned. It is symbolic. Response of china China sees it as a normal interaction between two countries. But it does seem to worry when India, Japan and USA come together as a means of containment. In the past during the cold war period, the containment policy was seen against USSR which ultimately led to its demise. Way forward More effort towards make in India and skill development should be focused. More focus on other strategic aspects are required to be discussed and followed up. India has been so much hinged onto Pakistan that it forgets to see the remaining issues. This is costing India. India can be a security provider for the region and India does nothing to actualise it. India has the manpower and the Japanese have to technology. There are certain kind of technologies that India has to develop and no one can supply it to India. Mainstream engineering technology can have larger suppliers. For Japan, India can be a beneficial partner as it looks for more manufacturing bases to access markets around the world. Connecting the dots: Japan is India’s growing strategic partner and India is Japan’s future market. Analyse the present relation between both the nations and suggest way forward for improvement.

Oct 19, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 19th Oct, 2017

IASbaba’s Daily Current Affairs – 19th Oct 2017 Archives NATIONAL TOPIC: General Studies 2: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. General Studies 1: Social empowerment Population and associated issues, poverty and developmental issues Tackling hunger in India In news: This year’s report of Global Hunger Index shows that India has slipped three positions from last year — it ties with Djibouti and war-ravaged Rwanda for the 100th rank among 119 nations. The report does mention that India has scaled up its Integrated Child Development Services (ICDS) Scheme and the National Health Mission but also notes that they are yet to achieve adequate coverage. What is GHI? Published by the International Food Policy Research Institute, Concern Worldwide, an Irish aid agency, and Welthungerhilfe, a German private aid organisation, the Global Hunger Index tracks hunger worldwide. The GHI score is a multidimensional index composed of four indicators—proportion of undernourished in the population, prevalence of child mortality, child stunting, and child wasting. On the severity scale, a GHI score of less than 10 means “low” prevalence of hunger while a score of more than 50 implies an “extremely alarming” situation. Where does India stands? India has a “serious” hunger problem and ranks 100 among 119 developing countries, lagging behind countries such as North Korea and Iraq With a global hunger index (GHI) score of 31.4, India is at the high end of the “serious” category With more than a fifth of the country’s children under five suffering from “wasting” — low weight for height —India is among the very few countries that have made no progress, over the past 20 years, in arresting the problem. The report draws on India’s National Family Health Survey to show that the proportion of children in the country suffering the problem has increased from 17 per cent in 1998-2002 to 21 per cent in 2012-2016. This is way above the global prevalence — less than 10 per cent of under-five children suffer from wasting. Only three other countries— Djibouti, Sri Lanka, and South Sudan — have a child-wasting rate of over 20 per cent. India has considerably improved its child stunting rate, down 29% since 2000, but even that progress leaves India with a relatively high stunting rate of 38.4%. More than one-fifth of Indian children under five weigh too little for their height and over a third are too short for their age. Why does India always score poorly on the Global Hunger Index? It should be a pressing question for the country’s policymakers. The Centre and the states do have several schemes to improve the nutritional status of people in the country. But confronting the country’s nutritional problems has never acquired adequate urgency. Many of India’s social welfare schemes — including those related to food security —have been facing challenges related to identifying and reaching targeted groups. As the report highlighted, the country’s top 1% own more than 50% of its wealth, India is the world’s second largest food producer, yet it is also home to the second highest population of under-nourished in the world. Way forward: The continued poor performance in the Global Hunger Index should make the government think on the shortcomings with various schemes and steps taken in this regard. The report also carries an important message for the Swachh Bharat Mission (SBM): The project should not lose sight of the links between sanitation and nutrition. Water-borne diseases like diarrhoea, for example, are known to result in poor absorption of nutrients, especially in children under five. With a GHI score that is near the high end of the serious category, it is obvious that a high GDP growth rate alone is no guarantee of food and nutrition security for India’s vast majority. Growing inequality in Indian society needs to be checked. The ability to access food items needs to be improved by seeing exclusions from BPL category is reduced. Household/family knowledge and information about good nutrition is must. This includes knowledge about locally available foods that are good from the nutrition perspective. This can be based on. In this regard access to media such as newspapers, radio and TV, coupled with propagation of such information on radio and through programmes like the ICDS that directly educate mothers about child rearing and nutrition should be ensured. The state of health needs to be improved. Public health measures like clean drinking water, sanitation, sewerage, control of communicable and epidemic diseases and public health education play an important role in reducing mortality rates at every age and across gender. In the Indian environment, access to water and toilets, breastfeeding (to impart immunity in an unhealthy environment), access to sound health advice/treatment, the prevalence of vaccination and availability of vitamin supplements are possible indicators are the basics that should be availed on priority basis. The government's initiative of resolving this issue by linking targeted welfare schemes to instruments such as Aadhaar is a welcome step and should be taken forward. Connecting the dots: What do you mean by Global Hunger Index? India comes under the serious category in the report. This is despite multiple schemes launched by the government. Critically discuss the reasons behind. 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