General Studies Paper 3

Context: After raising interest rates aggressively to tame inflation, the US Federal Reserve has once again raised its benchmark overnight interest rate by a quarter of a percentage point to the 5.00%-5.25% range.

Overnight rates are the rates at which banks lend funds to each other at the end of the day in the overnight market.

In many countries, the overnight rate is the interest rate the central bank sets to target monetary policy (Repo Rate in India).

What could be the Possible Impact of this Hike on India?

• The economists have expected that the latest Fed hike may not have a material impact on India as the RBI has paused hikes and there is weakness in the crude oil prices as well.
• Domestic markets are likely to remain resilient and if there is volatility, it would have a limited impact on the economy.
• It is also expected that the strength of the rupee and the continued buying by foreign institutional investors (FIIs) will strengthen the market.
• FIIs have already started investing in India, with inflows in April 2023 rising to Rs 13,545 crore and Rs 8,243 crore in May so far.
• Moreover, this hike is being viewed as last one for this year,2023 and the Fed will start cutting rates from the second half of 2023.
• If the Fed opts for a cut later in the year, capital inflows are expected to pick up.
• If the Fed starts cutting rates from July 2023, markets are expected to rise sharply.

Why do Central Banks resort to a Rate Hike?

• The central bank may increase interest rates to control inflation.
• This is being done to reduce the amount of money available for borrowing, which can help to cool down the economy and prevent prices from rising too quickly.
• With higher borrowing costs, people and companies may be less willing to borrow, which can slow down economic activity and growth.
• Businesses may take fewer loans, hire fewer people, and reduce production in response to the increased costs of borrowing.

What are the Impacts of US Fed Rate Hike on Indian Economy?

• Capital Flows: A US Fed rate hike can lead to a rise in interest rates in the US, which can attract capital flows from other countries. This can lead to a reduction in foreign investment in India, which can affect economic growth.
• Depreciation of rupee: It can also lead to a depreciation of rupee, which can have an impact on India’s trade balance and current account deficit.
  • Depreciation of Indian rupee may result in costlier imports such as crude oil and other goods. This may bring the imported inflation in Indian Economy.
• Domestic Borrowing Costs: It can lead to an increase in borrowing costs in India, as investors may choose to invest in US securities instead of Indian securities. This can lead to a reduction in domestic investment and higher borrowing costs for businesses and individuals.
• Stock Market: It can also impact the stock market in India. Higher US interest rates can lead to a reduction in demand for risky assets such as equities, which can lead to a decline in stock prices in India.
• External Debt: India’s external debt is mostly denominated in US Dollars, a US Fed rate hike can increase the cost of servicing that debt, as the value of the rupee may fall against the dollar. This can lead to an increase in India’s external debt burden and a negative impact on the economy.
• Banks: The banking industry gets benefited by the interest rates rise, as banks re-price their loan portfolio much quicker than their deposit rates, which helps them to increase their net interest margin.

What Options are Available with India to Counter Fed Hikes?

• Adjusting Domestic Interest Rates: The RBI, could raise interest rates in response to the Fed hikes to attract foreign investors to invest in Indian markets, which would increase demand for Indian currency and help maintain its value. However, this could also slow down domestic economic growth.
• Diversifying Reserves: India could diversify its foreign exchange reserves to reduce its dependence on the U.S. dollar and mitigate the impact of Fed rate hikes. For instance, India could increase its holdings of other major currencies such as the Euro, Yen, and Chinese Yuan.
• Enhancing Trade Relations with Other Countries: India could focus on expanding trade ties with other countries to boost its economic growth and reduce the impact of the Fed rate hikes. This could include exploring new export markets, attracting foreign investment, and increasing bilateral trade agreements.
• Encouraging Domestic Consumption: If the Fed rate hikes lead to a slowdown in the Indian economy, the government could boost domestic consumption through measures such as tax cuts, subsidies, or public works programs to stimulate economic activity.
• Reduce Dependence on Crude Oil: One of the major effects of a stronger US dollar is the increase in crude oil prices, which in turn contributes to the overall rise in commodity prices. To address this, it is important to promote the use of alternative sources of energy such as renewable energy and ethanol.

General Studies Paper 3

Context: The Ministry of Environment, Forest, and Climate Change in collaboration with the United Nations Environment Programme/ Convention on Migratory Species (UNEP/CMS) had organized a meeting of Range Countries to strengthen conservation efforts for migratory birds and their habitats in the Central Asian Flyway (CAF).

The meeting was attended by 11 countries, including Armenia, Bangladesh, Kazakhstan, Kyrgyzstan, Kuwait. The delegates agreed on an institutional framework for the CAF and a draft roadmap for updating the CMS CAF Action Plan.

What is CMS?

• It is an intergovernmental treaty under the UNEP- popularly known as Bonn Convention.
• It was signed in 1979 and in force since 1983.
• As of 1 March 2022, the CMS has 133 Parties.
• India is also a party to CMS since 1983.

Aim:

• It aims to conserve terrestrial, marine and avian migratory species throughout their range.
• It lays the legal foundation to conduct conservation measures on a global scale.
• The legal instruments under CMS may range from legally binding Agreements to less formal MoU.

Two appendices under CMS:

• Appendix I lists ‘Threatened Migratory Species’.
• Appendix II lists ‘Migratory Species requiring international cooperation’.

India and the CMS:

• India has signed a non-legally binding Memorandum of Understanding (MoU) with CMS on conservation and management of Siberian Cranes (1998), Marine Turtles (2007), Dugongs (2008), and Raptors (2016).
• With 2.4% of the world’s land area, India contributes to around 8% of the known global biodiversity.
• India also provides temporary shelter to several migratory species including Amur Falcons, Bar-headed Geese, Black-necked Cranes, Marine Turtles, Dugongs, Humpback Whales, etc.

What is a Migratory Species?

• A species or lower taxon of wild animals of which the entire population or any geographically separate part of the population cyclically and predictably cross one or more national jurisdictional boundaries.
• The word ‘cyclically’ relates to a cycle of any nature, such as astronomical (circadian, annual, etc.), life or climatic, and of any frequency.
• The word ‘predictably’ implies that a phenomenon can be anticipated to recur in a given set of circumstances, though not necessarily regularly in time.

What is Central Asian Flyway?

• The CAF is a major migratory route for birds, covering 30 countries from the Arctic Ocean to the Indian Ocean.
• Indian subcontinent is a part of a CAF with at least 279 populations of 182 migratory waterbird species (including 29 globally threatened species).
• It is home to more than 400 species of migratory birds, including threatened and endangered species such as the Siberian crane and the lesser white-fronted goose.

What are some Efforts made by India for Migratory Species?

National Action Plan for the Conservation of Migratory Birds (2018-2023): India has launched the National Action Plan for the conservation of migratory species along the Central Asian Flyway.

• To reduce pressure on critical habitats and migratory routes by addressing the various challenges faced by migratory birds, including habitat loss, degradation and fragmentation, hunting, poaching, pollution, and climate change.
• To stop the decline of migratory birds and reverse the scenario by 2027.
• To avoid threats to habitats and migratory routes and ensure their sustainability for future generations.
• To support trans-boundary cooperation among various countries along the Central Asian Flyway to conserve migratory birds and their habitats.
• To improve the database on migratory birds and their habitats to enhance our understanding of their conservation needs.

India also Announced:

• Conservation of marine turtles- by launching its Marine Turtle Policy and Marine Stranding Management Policy, by 2020,
• Reduction of pollution from micro-plastic and single-use plastic,
• Transboundary protected areas for conservation of species like Tigers, Asian elephants, Snow Leopard, the Asiatic Lion, the one-horned rhinoceros, and the Great Indian Bustard, and
• Sustainable infrastructure development like Linear Infrastructure Policy Guidelines to tailor development in ecologically fragile areas.
• Project Snow Leopard (PSL): PSL was launched in 2009 to promote an inclusive and participatory approach to conserve snow leopards and their habitat.
• Dugong Conservation Reserve: India has established its first Dugong conservation reserve in Tamil Nadu.

Wildlife Protection Act, 1972:

• Rare and endangered species of birds including migratory birds are included in Schedule-I of the Act thereby according them highest degree of protection.
• Stringent punishments have been provided in the Act for violation of provisions of the Act.
• Important habitats of birds, including migratory birds have been notified as protected Areas under the Act for better conservation and protection of birds and their habitats.

Other Initiatives:

• Focused protection measures involving the local communities have been taken up in the State of Nagaland for protection of Amur Falcons that migrate to Northeast India on their route to Southern Africa.
• India has taken several steps to conserve vultures like imposing ban on veterinary use of diclofenac, establishment of Vulture breeding centres etc.
• Wildlife Crime Control Bureau has been established for control of illegal trade in wildlife and its parts and products.

General Studies Paper 2

Context: Recently, China and Pakistan have held the 4th round of the Foreign Minister-level Pakistan-China Strategic Dialogue Islamabad, Pakistan, where they agreed to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan.

Alongside, the 5th China-Pakistan-Afghanistan Trilateral Foreign Ministers Dialogue was also held where they agreed to combat terrorism and enhance cooperation in different economic fields.

In 2021, China proposed construction of the Peshawar-Kabul motorway as an extension of CPEC in Afghanistan.

What is the China-Pakistan Economic Corridor?

• CPEC is a 3,000-km long route of infrastructure projects connecting China’s northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western province of Balochistan in Pakistan.
• It is a bilateral project between Pakistan and China, intended to promote connectivity across Pakistan with a network of highways, railways, and pipelines accompanied by energy, industrial, and other infrastructure development projects.
• It will pave the way for China to access the Middle East and Africa from Gwadar Port, enabling China to access the Indian Ocean and in return China will support development projects in Pakistan to overcome the latter’s energy crises and stabilizing its faltering economy.
• CPEC is a part of the Belt and Road Initiative.
• The BRI, launched in 2013, aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.

Why does Afghanistan seem Significant for Both Pakistan and China?

• Access to Rare Minerals: Afghanistan has a large amount of Rare Earth Minerals (1.4 million tonnes) that are important for making electronics and military equipment. However, since the Taliban took over, the country has been facing economic difficulties because foreign aid has been withdrawn.
• Energy and Other Resources: Afghan participation in CPEC will allow Islamabad and Beijing to harness energy and other resources, as well as gain access to Afghanistan’s vast wealth of untapped natural resources, ranging from copper, gold, uranium, and lithium, which are critical components for a variety of advanced electronic technologies and high-tech missile guidance systems.

What can be the Implications for India on CPEC’s Extension to Afghanistan?

Reduces India’s Scope in Central Asia:

• Afghanistan’s involvement in CPEC can reduce the scope of India’s investment in Iran’s Chabahar port. India intends to project the port as a gateway to lucrative prospects for commerce between India, Iran, and Afghanistan with Central Asian countries.
• Pakistan is also hoping to undermine India’s influence in Central Asia and CPEC might provide the perfect platform for this.

China can take Lead from India in Development Aid:

• In terms of development aid, India has been the largest regional lender to Afghanistan, investing more than USD 3 Billion for projects such as
• Road construction, power plant construction, dam construction, parliament building, rural development, education, infrastructure, and much more.
• With the extension of CPEC, China is projected to displace India and take the lead in Afghanistan’s development sphere.

Security Concerns:

• China may control Afghanistan’s Bagram air force base.
• The Bagram airport is the biggest airport and technically well-equipped as the Americans kept it for their use till the end, instead of the Kabul airport.

Undermining India’s Sovereignty:

• The CPEC passes through PoK, which undermines India’s sovereignty. India has repeatedly raised concerns over this issue as a violation of its sovereignty and territorial integrity.
• By extending the CPEC to Afghanistan, China and Pakistan are further consolidating their economic and strategic ties, which India sees as a threat to its security and regional interests.

Terrorism and Strategic Concerns:

• If Afghanistan becomes a part of the CPEC, it will boost economic development but may also give Pakistan a strategic advantage in the region, which could be a threat to India’s interests.
• It may lead to an increase in terrorism from Pakistan against India, as it seeks to gain the upper hand in the region.

Exploitation of Rare Earth Minerals:

• With the extension of CPEC, China is also looking to exploit Afghanistan’s rich minerals and highly lucrative rare-earth mines.
• Rare-earth metals, which are key components for a host of advanced electronic technologies and hi-tech missile guidance systems.

Way Forward

CPEC has the potential to alter the power balance in the region in China’s favour, much to India’s displeasure. If not dealt with properly, this might change the strategic dynamics of the region and the credibility of India’s claim over PoK in the long run.

India should strengthen its economic and trade ties with Afghanistan by investing in the country’s infrastructure and development. This will not only improve the economic situation in Afghanistan but also help India in countering the influence of CPEC.

General Studies Paper 2

Context: It has been criticised that Conflicts like those in Sudan, Syria, Myanmar go largely unchecked at the United Nations.

UN Reforms

• Demand of reform:
  • Reform of the United Nations Security Council (UNSC) encompasses five key issues: 
    • Categories of membership,
    • The question of the veto held by the five permanent members,
    • Regional representation,
    • The size of an enlarged Council and its working methods, and
    • The Security Council-General Assembly relationship.
  • Why?
    • Changing world order:
      • In the 77-year-old history of the UN, the composition of the Security Council has been altered only once.
        • e., In 1963 when the General Assembly decided to expand the Council from 11 to 15 members, with the addition of four non-permanent seats.
      • Since then, the world has changed. The geopolitical relations in the world have altered, the economic responsibilities in the world in countries have also changed.
    • Equitable World Order: 
      • There is a need for a more equitable world in order to uphold the principles of democracy at the global level.
    • Inclusivity: 
      • Developing countries like the African countries, need to be made stakeholders in the multilateral institutions and involved in the decision-making process.
    • Mitigation of New Threats: 
      • With rising protectionism, increased incidents of terrorism and the threat of climate change, the multilateral system must become more resilient and responsive.
    • How?
      • Agreement of members:
        • Any reform of the Security Council would require the agreement of at least two-thirds of UN member states in a vote in the General Assembly and must be ratified by two-thirds of Member States.
        • All of the permanent members of the UNSC (which have veto rights) must also agree.
      • Expansion:
        • The expansion of the Security Council in both permanent and non-permanent categories, as well as reform in its working methods, is indispensable to making this body more representative, legitimate and effective.

Issues

• Unchecked conflicts:
  • It has been criticised that Conflicts like those in Sudan, Syria, Myanmar go largely unchecked at the UN.
  • Some countries and non-state actors benefit from the conflict economy. They launder money, sell arms, supply fuel and exploit natural resources.
  • Whereas in the past the UN has played an important role in international diplomacy over the former Yugoslavia, Rwanda and the Middle East.
• Unable to discharge basic functions: 
  • The Security Council cannot discharge its basic function as one of the permanent members of the Security Council attacked its neighbour.
  • The Security Council should be the body to take action against the aggression. But because of the veto power, the Security Council cannot act.
  • The recent example being Russia’s:
    • Russia, a veto-wielding permanent member of the UN, attacked Ukraine in February 2022.
    • Russia has vetoed UNSC resolutions on Ukraine.
    • Russia also voted against a resolution in the UNGA which called on countries not to recognise the four regions of Ukraine that Russia has claimed.

Challenges

• Lack of Political Will: 
  • Although there is a general agreement towards change in the system, different countries have different perceptions of the requirement for change.
• Coffee Club: 
  • It is an informal group comprising 40-odd member states, mostly middle-sized states who oppose bigger regional powers grabbing permanent seats, has been instrumental in holding back reforms to the United Nations Security Council over the past six years.
• Chinese Opposition: 
  • China being a permanent member blocks the growth of India becoming a Permanent Member.
• Operationalization of the reforms:
  • The challenge is also regarding how to operationalize these reforms.
  • The UN is structured in such a way that the decision-making process is distributed among a wide range of countries and constituencies with often competing and contradictory views and interests.
    • Russia and China, for example, did not attend the previous UN meeting on reforms.

Way ahead

• Some of the UN’s specialized agencies like Unicef and UNHCR do an admirable job under exacting circumstances when no one else will do it.
  • They need to be further strengthened.
• India has suggested that the UN reforms need to be “broad-based and all-encompassing” and the changes should not be restricted to its secretariat only.

General Studies Paper 3

Context: The Petersberg Dialogue on Climate Change was held in Berlin from May 2-3, 2023.

• The Petersberg Climate Dialogue was hosted by Germany and the United Arab Emirates, which is hosting the 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change.
• Ministers from 40 countries attended the conference to discuss the way forward towards COP28.
• The discussions at the event veered around global renewables target, climate finance and Global Stocktake.

Summit highlights

• Global renewables target
  • According to members, in order to limit global warming to 1.5°C, the world needs to make sharp cuts in their greenhouse gas emissions.
  • They also initiated discussions around a potential global target for renewables at the next climate conference.
• Fossil fuels: Phaseout production or reduce emissions?
  • Members agreed to be laser focused on phasing out fossil fuel emissions,while phasing up viable, affordable zero-carbon alternatives.
  • They called for a tripling of renewable energy capacity by 2030 followed by a doubling in 2040, & the address was focused on reducing fossil fuel ‘emissions’.
• On track for $100 billion climate finance:
  • According to members, developed countries are “on good track” to deliver the $100 billion per year they had promised to mobilise by 2020 during the COP15 in 2009.
    • Although this is good news, delivering the $100 billion goal in 2023 might be a little too late.
  • The $100 billion is likely to be a gross underestimation of the true need for climate finance in developing countries.
  • A recent estimate pegs climate finance needs at $1 trillion per year by 2030for emerging markets alone.
    • This means that climate finance needs are more than 10 times the amount that developed countries have been able to mobilise, 14 years after committing to the $100 billion figure.
  • Global Stocktake:
    • 2023 is the year for the Global Stocktake.
      • Global Stocktake is essentially a periodic review of global climate action which aims to assess whether current efforts will enable us to reach the objectives set out in the Paris Agreement.
      • This is the first Global Stocktake year since the Paris Agreement was signed in 2015 and the report has been underway for the past two years.
        • It is set to be released in September of 2023.
      • Stocktake outcomes:
        • Members noted that the Global Stocktake outcome should focus on how climate change impacts, actions and responses have a bearing on the developmental priorities of developing countries including eradication of poverty.
        • The first Global Stocktake should seek to convey a message on sustainable lifestyles as well as sustainable consumption to inform the next round of Nationally Determined Contributions and enhanced international cooperation.

Way ahead:

• Although the $100 billion pledge might have been met this year, the needs have now escalated. This underlines the urgent need for financial reparations.
• COP28 UAE will be a milestone moment when the world will take stock of its progress on the Paris Agreement.
  • The first Global Stocktake (GST), will provide a comprehensive assessment of progress since adopting the Paris Agreement.
  • This will help align efforts on climate action,including measures that need to be put in place to bridge the gaps in progress.

General Studies Paper 2

Context: Recently, India’s Council of Scientific and Industrial Research (CSIR) and Israel’s Defense Research and Development (DDR&D) have signed a Memorandum of Understanding (MoU) on Industrial Research and Development Cooperation.

What are the Key Highlights of the MoU?

• It aims to work together on research and development projects in various fields such as Artificial Intelligence (AI), Quantum and semiconductors, synthetic biology, Sustainable Energy, Healthcare, and Agriculture. They will focus on implementing specific projects in mutually agreeable areas.
• The collaboration will include important industrial sectors such as aerospace, chemicals, and infrastructure.
• The MoU will be monitored by a Joint Steering Committee led by the heads of the CSIR and DDR&D for taking forward mutually benefiting Industrial and technology cooperation.

How has the India-Israel Relations been So Far?

Diplomatic: Though India officially recognized Israel in 1950, both countries established full diplomatic ties only on 29th January 1992.

• As of December 2020, India was among 164 United Nations (UN) member states to have diplomatic ties with Israel.

Economic and Commercial: Trade between India and Israel has increased from USD 5 billion before the Covid-19 pandemic to about USD 7.5 billion till 2023 January.

• Trade in diamonds constitutes about 50% of bilateral trade.
• India is Israel’s third-largest trade partner in Asia and seventh largest globally.
• Israeli companies have invested in India in energy, renewable energy, telecom, real estate, water technologies, and are focusing on setting up R&D centers or production units in India.
• India is also in dialogue with Israel for concluding a Free Trade Agreement (FTA).

Defence: India is one of the largest importers of weapons from Israel, contributing to about 40% of its annual arms exports.

• The Indian armed forces have inducted a wide array of Israeli weapon systems over the years, which range from Phalcon AWACS (Airborne Warning And Control Systems) and Heron, Searcher-II and Harop drones to Barak anti-missile defence systems and Spyder quick-reaction anti-aircraft missile systems.
• At the 15th Joint Working Group (JWG 2021) meeting on Bilateral Defence Cooperation, countries agreed to form a Task Force to formulate a comprehensive Ten-Year Roadmap to identify new areas of cooperation.

Agriculture: In May 2021, “a three-year work program agreement” for development in agriculture cooperation, was signed.

• The programme aims to grow existing Centres of Excellence (CoE), establish new centers, increase CoE’s value chain, bring the Centres of Excellence into the self-sufficient mode, and encourage private sector companies and collaboration.

Science & Technology: In recent years, multiple MoUs have been signed between Israel’s Start-Up National Central and Indian entrepreneurship centres like iCreate and TiE (Technology Business Incubators).

• In 2022, the two countries recently widened the scope of the India-Israel Industrial R&D and Innovation Fund (I4F) to include sectors like renewable energy and ICT (Information and Communication Technology) through increased participation of academia and business entities.
• I4F is a cooperation between the two countries to promote, facilitate and support joint industrial R&D projects between companies from India and Israel to address the challenges in the agreed ‘Focus Sectors’.

Others: Israel is also joining the India-led International Solar Alliance (ISA), which aligns very well with the objectives of both countries to scale up their cooperation in renewable energy and partner in clean energy.

Way Forward

• Indians are sympathetic towards Israel and the government is balancing and recalibrating its West Asia policy on the premise of its own national interest.
• India and Israel need to overcome the vulnerability of their religious extremist neighbours and work productively on global issues like climate change, water scarcity, population explosion and food scarcity.
• A more aggressive and proactive Middle Eastern policy is the need of the hour for India to reap the maximum benefit of the geopolitical realignments gradually being brought in by the Abraham Accords.

General Studies Paper 3

Context: With the acceleration in the pace of technological change and the demands for such skills exceeding their supply, digital literacy and upskilling is not anymore optional and rather a necessity. The National Sample Survey (NSS) (2020-21) and LFPS 2020-21 indicate the need to broaden the coverage of IT or computer-based training across various sectors.

• So does the Future of Jobs 2023 report (4th edition; first launched in 2016) released recently by the World Economic Forum (WEF) which highlights the creation of 97 million new jobs by 2025 on account of technological advancements in artificial intelligence (AI) and other fields.
• Notwithstanding the initiatives for digital literacy, India still has a long way to go before it comes at par with the countries with highly skilled workforce.
• There is an urgent need for the Indian government, businesses, and educational institutions to invest in digital upskilling initiatives to bridge the existing digital gap and remain competitive and relevant in the global marketplace.

What does the WEF Report say about Tech-Advancement and Job Creation?

• Optimistic yet Cautionary Projection: The WEF predicts that while 85 million jobs will become obsolete by 2025, technological advancements in AI and other fields will lead to the creation of 97 million new jobs.
• However, the role of machines in the division of labour will continue to increase, especially for repetitive and routine tasks.
• The jobs of the future are expected to rely more on data-driven and machine-powered processes.
• Tech-driven Shift in India: The WEF has also projected a slightly lower churn in jobs for the labour markets in India over the next 5 years compared to the global average of 23%. The churn in India will largely be technology-driven, via sectors such as AI & ML (machine learning) (38%), followed by data analysts and scientists (33%) and data entry clerks (32%).
• The smallest churn, predictably, will be in labour-intensive segments of the economy.
• However, the report also shows employers in India and China to remain the most upbeat in terms of future talent availability.

What Factors Indicate that India’s Workforce is Digitally Unprepared?

• Huge Demand-Supply Gap: As per a report by Nasscom, Draup, and Salesforce, even when taking into account the current talent base of 420,000, there exists a 51% gap between AI & ML and big data analytics’ (BDA) talent demand and supply. This gap is significantly worse for ML engineers, data scientists, DevOps engineers and data architects where the demand-supply gap is 60-73%.
• Shortcomings in Upskilling: The problem is exacerbated by the quality of talent available; an overwhelming number of engineering graduates are unemployable with their current level of skills.
• Approximately 30% of the trained workforce in different fields have IT training, yet 29% of individuals with such training are unemployed, pointing towards either inadequate training content or poor training quality that results in low employability.
• Apart from the IT sector, the overall skilling effort, across segments of the economy, falls far short of what is required.
• For instance, just 22% of those certified under the Pradhan Mantri Kaushal Vikas Yojana have found placement.
• Lack of Basic Understanding of Computers: The NSS 2020-21 reveals about 42% of the country’s youth has a basic understanding of copying or moving files or using copy and paste tools on a computer.
• Additionally, only 10% and 8.6% of youth have knowledge of basic arithmetic formulae in a spreadsheet and creating an electronic presentation using presentation software, respectively. Only 2.4% of youth have programming skills.
• Low Investments: India’s investment in mid-career upskilling also remains quite average which has been reflected in the high unemployment rate among those with advanced education.

How can India Make its Workforce Digitally Prepared?

• Revamping Skills and Investments: To adapt to the changing job market, it is crucial to restructure the entire skill development system and focus on upskilling the workforce with an eye on emerging technologies and the future of work.
• India has an advantage over other countries due to its sizable working-age population and a significant youth demographic.
• However, full benefits of demography can’t be reaped if sufficient attention is not given to strategic investment, particularly in the reskilling of the workforce to keep up with the digital transformation.
• Special Focus on IT Skills: To remain competitive in the global market, it has become increasingly imperative for individuals from all sectors to possess specialised IT or computer skills.
• The government, recognising this, has implemented several skilling programmes, such as the Skill India Mission and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0.
• These initiatives aim to train and certify millions of individuals in various vocational skills, including IT and digital skills, with a focus on emerging technologies like artificial intelligence, mechatronics and robotics.
• Alternate Talent Pools: We need to build digital capabilities in smaller towns, get more women to join the work-stream with hybrid work norms, revamp vocational education from industrial training institutes and polytechnics.
• Corporate-Social-Responsibility (CSR) funding from industries can be leveraged for these programmes.
• The governments should work together with employers, training providers, and workers to meet the growing digital learning needs.

General Studies Paper 2 

Context: There are reports that Himachal Pradesh is considering joining Uttarakhand, Gujarat and Madhya Pradesh as states that have legalised cannabis cultivation.

The production, manufacturing, possession, consumption, sale, purchase, transport and use of cannabis is prohibited and criminalised by the Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985.

What are issues with the current approach to deal with drug abuse?

• Criminalisation is used to deter the use of drugs. However, drug dependence has increased over the years across the world.
• In India, 3.1 crore people are reported to have used a cannabis product in the last 12 months and about 72 lakh people required help to address their cannabis dependency-related problems.
• Criminalisation means long pre-trial incarceration and stigmatisation of users. They lack access to de-addiction centres.
• The 2001 amendment to the law differentiates between those who possess a “small quantity” of the drug and those found storing it in “commercial quantities’ ‘. This is a welcome step in distinguishing between “drug users” and “drug traffickers”.
• However, possession of the drug for personal consumption or consuming it for recreational purposes remains an offence under the Act. Such cases constitute 60% of the total NDPS cases reported in India.
• People who end up in jail often belong to the socially and economically vulnerable class. They constitute the majority of the undertrial prisoners under the NDPS Act.
• Putting drug users behind bars makes their rehabilitation difficult and exposes them to the risk of becoming peddlers.
• Rehabilitation of drug users is systematically replaced by the denial of bail and enforcement of jail terms and penalties.
• The bail provision of the NDPS Act makes jail a rule, and bail an exception. The moral panic in society relating to drug use and abuse has an impact on the pre-trial procedure.
• The over-criminalisation of drug users undermines their social well-being. It results in the wastage of precious time of the criminal justice machinery.

What is the way forward to deal with drug abuse?

• In 2021, the Ministry of Social Justice and Empowerment recommended the decriminalisation of the possession of small quantities of drugs for personal consumption. Drug consumers should be treated as victims rather than culprits.
• The Ministry also suggested mandatory de-addiction and rehab facility for 30 days followed by mandatory community service for one year for drug addicts. The ministry’s position was along the lines of the approach advocated by UN human rights experts.
• There is a need to focus on a public health approach to deal with drug addiction. Countries such as Portugal and Canada have demonstrated the efficacy of the public health approach.
• Law enforcement agencies view drug users as offenders, whereas the public health systems focus on their well-being.
• In India, Sikkim has tried to tackle the drug problem by differentiating between peddlers and consumers. It has tried to advance healthcare services to the most vulnerable drug users. The state’s model of decriminalisation can be replicated at the national level.

General Studies Paper 2

Context: Manipur has been grappling with unrest and violent protests, recently witnessing the first direct clashes between the Kuki-Zomi tribals and the Meiteis in three decades. With a complex cultural geography divided into ‘valley’ and ‘hill’ districts, the state has experienced longstanding ethnic tensions. The Manipur unrest poses significant challenges to regional security, potentially destabilizing the fragile peace and affecting the broader geopolitical landscape of the region. 

What are the reasons behind the unrest in Manipur?

External factors 

• Myanmar crisis: The military coup in Myanmar in 2021 and subsequent unrest have led to a continuous influx of Burmese refugees into Manipur. Thus, complicating the ethnic balance in the state. Many of the refugees share kinship ties with Manipur’s Kuki tribe.
• Drug trafficking and cross-border crime: The proximity to the Golden Triangle and porous international borders make Manipur vulnerable to drug trafficking and other cross-border criminal activities. These illegal activities can fuel violence and social unrest in the region.

Internal Factors 

• Demand for Scheduled Tribe status: The Manipur high court recently asked the state government to send a recommendation to the Centre on the Meiteis’ demand for Scheduled Tribe status, which has triggered protests by tribal groups fearing a loss of reservation benefits.
• Land issues: The Meitei community, which is numerically in the majority, mainly inhabits the Imphal Valley, accounting for just a tenth of the state’s total land area. The competition for land and resources has intensified tensions between the Meiteis and hill tribes.
• Historic tensions: Longstanding tensions between hill tribes and Meiteis in Manipur have contributed to the unrest, as both communities vie for political representation, resources, and cultural recognition.
• Lack of economic development: Economic underdevelopment in the region has exacerbated inter-ethnic tensions, as communities compete for scarce resources and opportunities.
• Governance issues: The government’s handling of the situation, such as the suspension of mobile internet and the application of the Armed Forces (Special Powers) Act (AFSPA), has been disruptive and has not effectively addressed the root causes of the unrest.

What will be the impact of Manipur unrest on regional security?

• Border vulnerability: The unrest in Manipur could lead to increased cross-border criminal activities such as smuggling, drug trafficking, and illegal arms trading. This could make the region’s borders more vulnerable and affect overall security.
• Growth of militancy: Prolonged unrest could provide fertile ground for militant groups to expand their influence and recruit more people, leading to a rise in extremist activities and further destabilizing the region.
• Strained relations with neighbouring countries: The unrest in Manipur could have implications for India’s relations with neighbouring countries like Myanmar, Bangladesh, and China. Increased refugee flows and cross-border crimes can strain relations and hinder diplomatic efforts in the region.
• Hindrance to economic development: Persistent unrest could deter investment and hinder economic development in the region, leading to increased unemployment and poverty, which in turn could feed into more instability and security challenges.
• Challenges to India’s Act East Policy: The unrest in Manipur could impact India’s Act East Policy, which aims to boost economic and strategic ties with Southeast Asia. Ensuring peace and stability in the Northeast region is essential for the success of this policy and for India’s broader strategic interests.
• Internal displacement: Unrest in Manipur may lead to the large-scale internal displacement of people, putting pressure on neighbouring states and resources. This could create additional tensions between various ethnic groups and communities, further complicating regional security.
• Human rights violations: Prolonged unrest may result in human rights violations, attracting international attention and criticism. This could affect India’s image and its ability to advocate for human rights and democratic values in the region and beyond.
• Impact on social cohesion: The unrest in Manipur can deepen ethnic, religious, and social divisions, weakening social cohesion and harmony. This may lead to long-term challenges for regional security and peacebuilding efforts.

What are the government initiatives to overcome Manipur unrest?

• Political dialogue: The government has initiated political dialogues with various ethnic groups and stakeholders to address their grievances and demands, aiming to build trust and find common ground for lasting peace.
• For example, the Manipur government held peace talks with several insurgent groups like the United National Liberation Front and Kangleipak Communist Party. These peace talks aim to find a lasting political solution to the ongoing conflict in the state and create a more stable environment.
• Suspension of Operations (SoO) Pact: The Manipur government has decided to withdraw from the Suspension of Operations (SoO) arrangement with two militant organisations, the Kuki National Army (KNA) and the Zomi Revolutionary Army (ZRA), amid allegations of instigating discontent among forest encroachers.
• Development initiatives: The government has been promoting development initiatives in Manipur, focusing on infrastructure, education, and healthcare to improve living standards and economic opportunities for local communities. Like, the government has launched the Northeast Special Infrastructure Development Scheme (NESIDS) to improve infrastructure in the region, including Manipur.
• Act East Policy: India’s Act East Policy aims to strengthen economic and cultural ties with Southeast Asian countries, potentially benefiting Manipur and the Northeast region by increasing trade, investment, and connectivity. For instance, the India-Myanmar-Thailand Trilateral Highway project has been advancing, which will improve connectivity between Manipur and Southeast Asia, promoting trade and economic opportunities.
• Skill development programs: The government has introduced skill development programs to provide better employment opportunities for the youth in Manipur, addressing some of the root causes of unrest. For example, the National Skill Development Corporation (NSDC) partnered with the Manipur State Rural Livelihoods Mission to train and provide employment opportunities to 5,000 youths from the state.
• Security measures: The government has deployed additional security forces to maintain law and order and protect citizens from violence during periods of unrest.
• Counter-narcotics operations: In recent years, the government of Manipur has intensified its efforts to combat drug trafficking and cultivation, which has been fueling instability in the region.
• For example, Manipur police destroyed illegal poppy plantations spread over 90 acres in the Tengnoupal district. Such operations aim to reduce the influence of criminal organizations and improve security in the region.

What are the challenges associated with resolving unrest in Manipur?

• Complex ethnic dynamics: Manipur’s diverse ethnic landscape, with multiple tribes and communities, makes it difficult to address the grievances of all parties. The ongoing tensions between Meiteis, Nagas, Kukis, and other tribes make it challenging to find a solution that satisfies everyone.
• Presence of armed groups: Numerous armed groups operate in Manipur, each with its own objectives and demands. Their presence complicates the peace process and makes it difficult for the government to establish law and order in the region.
• External influences: The unrest in Manipur is influenced by events in neighbouring countries like Myanmar, where the military coup and subsequent crackdown have led to an influx of refugees. These external factors add another layer of complexity to the situation in Manipur.
• Lack of development: The Northeast region, including Manipur, faces significant developmental challenges, including poor infrastructure, limited access to resources, and high unemployment. These factors exacerbate existing tensions and make it harder to resolve unrest.
• Inadequate policy implementation: Although the government has introduced various initiatives to address the issues in Manipur, the implementation of these policies often falls short, limiting their impact on the ground. This has led to a lack of trust between the local population and the government, which hinders progress in resolving unrest.
• AFSPA: The continued implementation of the Armed Forces (Special Powers) Act (AFSPA) in Manipur has been a contentious issue. While the government argues that it is necessary to maintain order, critics argue that the act has led to human rights abuses and fueled resentment among the local population.
• Way forward:
• Inclusive dialogue: Engage all stakeholders, including various ethnic groups, in a dialogue to understand their grievances and find common ground. The Mizoram Accord of 1986 between the Government of India and the Mizo National Front (MNF) serves as an example of successful engagement with all stakeholders.
• Strengthen governance: Improve governance by addressing corruption, and inefficiency, and strengthening local administration. This can be modelled on the successful decentralization efforts in Kerala, which have empowered local communities and improved the delivery of public services.
• Promote economic development: Invest in infrastructure, education, and job creation to foster economic development and reduce poverty. The success of the Gujarat model in India, which emphasizes industrialization and infrastructure development, can serve as a blueprint.
• Reevaluate AFSPA: Review the implementation of the Armed Forces (Special Powers) Act and consider alternative security measures that protect human rights and promote trust between security forces and the local population. The withdrawal of AFSPA from Tripura in 2015 could serve as a model for a phased reduction of the act in Manipur.
• Address border issues: Strengthen cooperation with neighboring countries, particularly Myanmar, to manage cross-border issues such as smuggling, infiltration, and refugee influx. The cooperation between India and Bangladesh on border management can serve as a model for enhancing security along the Manipur-Myanmar border.
• Encourage civil society involvement: Empower civil society organizations to play an active role in conflict resolution and peacebuilding. The work of organizations like the Naga Mothers Association and the Northeast India Women Initiative for Peace in Manipur can be further supported and expanded.
• Cultural Exchange Programs: Promote cultural exchange programs within Manipur and between the state and other regions of India to foster a better understanding and appreciation of diverse cultures. This can be inspired by the European Union’s Erasmus+ program, which encourages cross-cultural learning and interaction among students and educators.

General Studies Paper 2

Context: A recent investigation revealed that more than half of India’s 30 national sports federations do not have an Internal Complaints Committee (ICC) which is a legal requirement under the Prevention of Sexual Harassment (PoSH) Act, 2013.

About Prevention of Sexual Harassment (PoSH) Act, 2013

• The Government of India has enacted ‘the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013’ (POSH Act) with the aim to provide a safe and secure work environment to women.
• It broadened and gave legislative backing to what is known as the Vishaka Guidelines, which were laid down by the Supreme Court in a judgment passed in 1997.
  • The Vishaka Guidelines defined sexual harassment and imposed three key obligations on institutions — prohibition, prevention, and redress.
  • The Supreme Court directed that they should establish a Complaints Committee, which would look into matters of sexual harassment of women in the workplace.
  • The court made the guidelines legally binding.

Features 

• It mandated that every employer must constitute an Internal Complaints Committee (ICC)at each office or branch with 10 or more employees.
• It lay down procedures and defined various aspects of sexual harassment, including the aggrieved victim, who could be a woman “of any age whether employed or not”, who “alleges to have been subjected to any act of sexual harassment”.
  • The aggrieved victim under the Act can be a woman “of any age whether employed [at the workplace] or not”, who “alleges to have been subjected to any act of sexual harassment”.
  • In effect, the Act protects the rights of all women who are working or visiting any workplace, in any capacity.
• The Act in its Section 2n, defines sexual harassment. Sexual harassment includes any one or more of the following unwelcome acts or behaviour (whether directly or by implication), namely
  • Physical contact and advances, or
  • A demand or request for sexual favours, or
  • Making sexually coloured remarks, or
  • Showing pornography, or
  • Any other unwelcome physical, verbal, non verbal conduct of sexual nature
• Section 3 (2) of the Act further elaborates that if any of the following circumstances occurs or is present in relation to or connected with any act or behavior of sexual harassment among other circumstances, it may amount to sexual harassment-
  • Implied or explicit promise of preferential treatment in her employment, or
  • Implied or explicit threat of detrimental treatment in her employment, or
  • Implied or explicit threat about her present or future employment status, or
  • Interference with her work or creating an intimidating or offensive or hostile work environment for her, or
  • Humiliating treatment likely to affect her health or safety
• Procedure for complaint: It is not compulsory for the aggrieved victim to file a complaint for the ICC to take action.

• she “may” do so — and if she cannot, any member of the ICC “shall” render “all reasonable assistance” to her to complain in writing.

• The complaint must be made “within three months from the date of the incident”.

• After the ICC has filed its report: If the allegations of sexual harassment are proven, the ICC will recommend to the employer to take action “in accordance with the provisions of the service rules” of the company. These may vary from company to company.
  • The ICC may also recommend that the company deduct the salary of the person found guilty, “as it may consider appropriate”.

Issues and Concerns 

• Sexual harassment at the workplace is becoming one of the most pressing issues affecting women across the globe.
• The Posh Act, 2013 does not satisfactorily address accountability. Notably, it does not specify who is in charge of ensuring that workplaces comply with the Act, and who can be held responsible if its provisions are not followed.
• Awareness about the  Posh Act, 2013 is still low in certain areas, making it difficult for victims to report cases.

Suggestions 

• The State Women Commissions should monitor the constitution of Internal Complaint Committees and Local Complaint Committees at district level in their respective States.
• The State Women Commissions should regularly hold programmes to disseminate information about provisions of Act and rules thereto in their respective States for its better implementation.
• Educate all staff on the various aspects of sexual harassment and the necessary steps to be taken if a complaint is made.
• Establish a formal complaint procedure and ensure all complaints are addressed promptly and fairly.
• Ensure all employees know their rights and the procedure for making a complaint.
• Take disciplinary action against those found guilty of sexual harassment.
• Provide counselling services to both the complainant and the accused.