A national border guard, reporting to the army, will enhance border security.

• In recent times, along with usurping its neighbours’ territories, starting with Doklam and followed by the Galwan crisis, China has escalated armed activities resulting in enhanced cross-border infiltration and armed intrusions. Similarly, the continued Pakistan-backed infiltration of terrorists poses fresh challenges to India.

Recent developments

• Two recent developments initiated by China have made our borders more vulnerable.
  • China’s Land Border Law (LBL) will enhance Beijing’s aggressive posture and is aimed at resolving border disputes on its terms.
  • Also the move to build 628 “Xiaokang model border defence villages” along the 3,488 km Line of Actual Control (LAC), is conceived as a tactic to consolidate Chinese claims over disputed areas and garner local support. Additionally, these villages are capable of acting as forward assembly and administrative areas during hostilities. Two villages have already come up in the disputed area across Arunachal Pradesh.

These developments warrant a comprehensive review of border management to ensure the all-weather security of our borders.

India’s borders

• India shares land borders with Pakistan, China, Nepal, Bhutan, Bangladesh and Myanmar, which stretch approximately 15,106 km.
• In addition, we have an approximately 3,323 km-long LoC with Pakistan, which further extends to the rechristened 110 km stretch of “Actual Ground Position Line” (AGPL) dividing the Siachen glacier region.
• Further east, we have the 3,488 km LAC with China.
• We share maritime boundaries with Sri Lanka, Maldives, Bangladesh, Pakistan, Myanmar and Indonesia; we have a 7,683 km coastline and an approximately 2 million sq km exclusive economic zone (EEZ).

If a democracy is to thrive, the role of money in influencing politics ought to be limited. In many advanced countries, elections are funded publicly so as to guarantee a somewhat level playing field.

About the scheme 

• An electoral bond is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of State Bank of India.
  • The citizen or corporate can then donate the same to any eligible political party of his/her choice.
  • The bonds are similar to bank notes that are payable to the bearer on demand and are free of interest.
  • An individual or party will be allowed to purchase these bonds digitally or through cheque.
• A bearer instrument does not carry any information about the buyer or payee and the holder of the instrument (which is the political party) is presumed to be its owner.
• The electoral bonds were introduced with the Finance Bill (2017).
  • The bonds are issued in multiples of Rs 1,000, Rs 10,000, Rs 100,000 and Rs 1 crore (the range of a bond is between Rs 1,000 to Rs 1 crore). These would be available at some branches of SBI.
• These can be purchased by individuals and companies who have to disclose their identity through know your customer (KYC) norms to SBI, while political parties can encash these bonds within 15 days only in their specified bank accounts.
• Only those parties, which have got 1% of all votes polled in the last Lok Sabha or state assembly polls, are eligible for funding through these bonds.
  • This makes it possible to give political contributions through a legitimate channel with tax-paid funds, while who gave how much to which party remains anonymous.

Context

Impact on school education by the pandemic and induced lockdowns needs urgent attention.

More on the news 

A recovery in the classroom also needs critical attention.

• India has seen one of the longest school closures in the world. The pivot to digital learning has locked vast numbers of underprivileged schoolchildren out of the classroom
• Online classes have struggled to replace the experience and quality of teaching in a physical classroom.

This is adding up to a grave learning crisis.

• A study carried out in January 2021 in five states by a research group from Azim Premji University found not only clear evidence of learning loss, but an alarming regression in children’s foundational abilities — to read, to understand what they are reading or do simple sums.
• A report in this newspaper has pointed to more evidence — over a third of Class X students in Gujarat needed grace marks to be promoted to the next class. Worryingly, this suggests that the deficit is not restricted to primary school, but is also showing up in higher classes.
• A field assessment carried out by Pratham-ASER in Karnataka in March 2021 had revealed, for instance, that only 66.4 per cent of Class VIII students could read a Class III textbook, compared to 70 per cent three years ago. If not arrested, the slide in learning, at this scale, has grim consequences for the young, and is likely to push them out of education entirely and stunt their future income opportunities significantly.

The Republic Day is a reminder of the spirit of federalism – and why it is under strain.

• On January 26, 1950 when the Indian Constitution came into force, it was a big step for the nation that had longed to achieve the ideals of justice, equality, liberty and fraternity.
• Our Constitution tried to give a definite shape to the aspirations of the people for a sovereign, socialist, secular democratic republic through provisions like fundamental rights of all citizens. In a country of subcontinental proportions, it is necessary that the ideals mentioned in the Preamble to the Constitution should extend to all levels of governance. The overall emphasis on equality in the Constitution is visible in all arrangements made around the federal spirit and ideas.

Constitutional provisions and other institutions for federalism

Conscious of the differential needs of the populations of different states, the drafters of the Constitution made provisions for an equitable share of powers and responsibilities among different levels of governments.

• The lists in the 7th Schedule of the Constitution — Union, state and concurrent — are an example of this division, wherein each level of government has its own sphere, enabling context-sensitive decision-making.
• Also, institutions for local self government were added through the 73rd and 74th amendments, which strengthened grass roots democracy.
• Article 246 and Article 243 G provide for this division of responsibilities.

• The National Disaster Response Force (NDRF) Raising Day was marked on January 19. The NDRF was formed on this day in 2006.

About NDRF

• The National Disaster Response Force is a specialised, multi-skilled, humanitarian force in India, which has been playing a crucial role in the country’s disaster management and community awareness for Disaster Risk Reduction (DRR).

Formation

• The successive natural calamities from 1990 to 2004 led to the enactment of the Disaster Management Act on December 26, 2005. The result was the formation of the National Disaster Response Force. This was set up to lay down the plans, policies, and guidelines for disaster management.

Context

• The union cabinet has approved the extension of the National Commission for Safai Karamcharis (NCSK) for three years with effect from April 1, 2022.

About NCSK

• The National Commission for Safai Karamcharis (NCSK) was established in 1993 as per the provisions of the National Commission for Safai Karamcharis Act, 1993, initially for the period upto March 31,1997. Later the validity of the Act was extended for five years and then again for two years i.e up to February 29, 2004.
• After that it was lapsed and the tenure of the commission was extended as a non-statutory body under the Ministry of Social Justice and Empowerment. The tenure of the Commission was being extended from time to time through government resolutions. The present tenure is valid upto March 31, 2022.
• The major beneficiaries under the commission are the Safai Karamcharis and identified manual scavengers in the country. According to the government data, there were 58,098 manual scavengers identitied in the country as on December 31, 2021.

Context

The last two quarters have seen a substantive recovery in the Indian economy per major indicators

• Corporate profitability of our largest firms has hit a new record this year.
• GST collections, another indicator of the formal economy, with an average monthly collection of Rs 1.2 trillion in the second and third quarters.
• The budget deficit is expected to be well the forecast from last year.

On the flip side

• The informal economy was badly hit by Covid and its associated lockdowns. Small enterprises, retail, hospitality, and construction were all hammered. These were our main source of recent employment growth.
• Agricultural employment has risen in the last year-and-a-half, while manufacturing and services employment has fallen — this is the opposite of development.
• Informal urban employment has led to first-time buyers of everything from toothpaste to two-wheelers. This consumption story has driven our economic growth for the last 30 years.
• Covid and its associated restrictions have been a perfect storm for the informally employed.
  • A study by researchers from Azim Premji University tells us that both earnings and employment fell for those at the bottom of the urban employment pyramid.

Context

• A reportby the Indian Cellular and Electronics Association (ICEA) has said that India’s policy of adopting high tariffs on the import of electronics components to reduce risks from global competition and save domestic companies may prove to be counterproductive to its schemes aimed at increasing domestic production of electronic products.

How does India compare to other electronics manufacturing nations?

• Comparison of India’s performance with that of China, Vietnam, Mexico and Thailand, shows that all the countries have tried to encourage the domestic production of electronic goods in their geographies by adopting almost similar strategies such as
  • attracting foreign direct investment,
  • improving domestic capabilities and competitiveness,
  • increasing exports and
  • linking their markets with global value chains.
• Improvement in rank electronics exports since 1980-
  • China from 35^th to 1^st , Mexico from 37^th to 11^th.
  • India from 40^th in 1980s to 28^th in 1980.

Context

• Kathak maestro Pandit Birju Maharaj passed away recently.

About Kathak

• The word Kathak has been derived from the word Katha which means a story.
• It is one of India’s classical dances.
• It was mostly a temple or village entertainment in which the dancers told stories from ancient scriptures.
• The Vaishnavite cult which swept North India in the 15th century and the resultant bhakti movement contributed to a whole new range of lyrics and musical forms, including Kathak.
• Radha-Krishna tales were portrayed in rasa lila folk plays, which merged folk dance with the basic gestures of kathak story-tellers.

Free Trade Agreement (FTA)
Countries decide to reduce or eliminate the customs duty on commonly agreed goods. Usually, the list of goods on which the customs duty would not be reduced is part of Negative list and on all other goods the customs duty is either reduced or eliminated. Normally, the FTAs cover trade in goods or trade in services. Example: India-ASEAN FTA in Goods.

Various FTAs and their working mechanisms:

Trade integration refers to free movement of goods, services, investment and people across the countries. Such trade integration may take place through multiple phases:

• Preferential Trade Agreement (PTA): Countries decide to reduce the customs duty on commonly agreed goods. Usually, the list of goods on which the customs duty is to be reduced is part of Positive List. In general PTAs do not cover substantially all goods. Example: India- Afghanistan PTA (2003).
  
• Free Trade Agreement (FTA): Countries decide to reduce or eliminate the customs duty on commonly agreed goods. Usually, the list of goods on which the customs duty would not be reduced is part of Negative list and on all other goods the customs duty is either reduced or eliminated. Normally, the FTAs cover trade in goods or trade in services. Example: India-ASEAN FTA in Goods.
  
• Comprehensive Economic Cooperation Agreement (CECA)/Comprehensive Economic Partnership Agreement (CEPA): Integrated package on goods, services and investment along with other areas including IPR, competition etc. Example: India Japan CEPA.
  
• Custom Union: Member countries may decide to trade at zero duty among themselves, however they maintain common customs duty against rest of the world. Example: Southern African Customs Union (SACU)
  
• Common Market: A common market is a Customs Union with provisions to facilitate free movements of labor and capital.
  
• Economic Union: Economic Union is a Common Market extended through harmonization of fiscal/monetary policies and shared executive, judicial and legislative institutions among the member countries. Example: European Union.

The importance of FTAs

• India’s Experience during 1947-91: The protectionist policies followed by India prior to 1991 LPG reforms adversely affected the economy in terms of lower exports, lower foreign investment, poor competitiveness of industries and overall reduced GDP growth rate. Need to learn from the past mistakes.
  
• Learning from other economies: Countries such as Japan, South Korea, Singapore etc. have been able to sustain higher economic growth by integrating with the global economy. In the recent times, such a export-led strategy has benefitted both bigger economies such as China as well as smaller economies such as Vietnam. In particular, FTAs signed by Vietnam with other countries has made it possible to attract foreign companies exiting from China.
  
• Shift from consumption led to Investment and Export driven Model: Consumption expenditure accounting for 60% of India’s GDP is the major driver. To ensure $ 5 trillion economy, we cannot rely only on domestic demand. Like China, we need to cater to global demand by boosting our exports.
  
• Boost Make in India and Assemble in India: By integrating “Assemble in India for the world” into Make in India, India can raise its export market share to about 3.5 percent by 2025 and 6 per cent by 2030. India would create about 4 crore well-paid jobs by 2025 and about 8 crore by 2030.
  
• Innovation and Efficiency: The FTAs would force domestic Industries to innovate, adapt and Exporters would be required to innovate and adopt new technologies to boost exports.
  
• Trade Liberalisation with Flexibility: The FTAs help reduce tariffs with a chosen trade partner in a calibrated manner with tariff reductions spread over time. Further, the partner country would also be required to reciprocate by reducing the tariffs.
  
• Conducive environment in terms of US-China Trade war, rising Labour costs in China, growing anti-china sentiment etc. India needs to fill up the vacuum which is slowly left by China.

What are the other important trade agreements of India?
India and Mauritius have signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA).

• • The South Asia Preferential Trading Agreement (SAPTA)
    It entered into force in 1995 to promote trade among member countries.

• South Asian Free Trade Agreement (SAFTA)
  A free trade agreement focusing on goods but excluding all services such as information technology. An agreement was signed to reduce customs duties on all traded goods to zero by 2016.

• APTA (Asia Pacific Trade Agreement)
  It was previously known as the Bangkok Agreement, and it is a preferential tariff arrangement aimed at promoting intra-regional trade through the exchange of mutually agreed-upon concessions by member countries.

Positive Impacts of FTAs

• More Dynamic Business Climate: Without free trade agreements, countries often protected their domestic industries and businesses. This protection often made them stagnant and non-competitive on the global market. With the protection removed, they became motivated to become true global competitors.
• Lower Government Spending: Many governments subsidize local industries. After the trade agreement removes subsidies, those funds can be put to better use.
• Foreign Direct Investment: Investors will flock to the country. This adds capital to expand local industries and boost domestic businesses.
  
• Expertise: ​Global companies have more expertise than domestic companies to develop local resources. That’s especially true in mining, oil drilling, and manufacturing. Free trade agreements allow global firms access to these business opportunities. 
• Technology Transfer: Local companies also receive access to the latest technologies from their multinational partners. As local economies grow, so do job opportunities. Multi-national companies provide job training to local employees
  
• India’s Trade with FTA partners: India’s total trade has increased with each FTA partner in post-FTA phase.
  
• Structure of Imports and Exports: India’s imports are primarily accounted for by non-consumer goods with respect to each FTA partner. This shows that the FTA partners have been able to provide for high quality raw materials to our domestic Industries leading to a push to “Make in India”. Further, India’s exports are primarily accounted for by non-raw materials with respect to each FTA partner.
  
• Trade in Services: India’s trade in services has increased with some of the FTA partners such as Japan, South Korea, Malaysia etc. Some of the sectors that have been benefitted include technology (Computer Software), telecommunication, finance, tourism etc.
  
• FDI in FTA Partners: Indian companies have been established in most of the major FTA partner countries of India. This Indian FDI outflow to major FTA partner countries not only generates employment opportunities in the partner countries but also lead to greater exports from India.
  

Negative Impacts of FTAs

The biggest criticism of free trade agreements is that they are responsible for job outsourcing. 

• Increased Job Outsourcing: Why does that happen? Reducing tariffs on imports allows companies to expand to other countries. Without tariffs, imports from countries with a low cost of living cost less. It makes it difficult for Indian companies in those same industries to compete, so they may reduce their workforce. 
• Theft of Intellectual Property: Many developing countries don’t have laws to protect patents, inventions, and new processes. The laws they do have aren’t always strictly enforced. As a result, corporations often have their ideas stolen. They must then compete with lower-priced domestic knock-offs.8
• Crowd out Domestic Industries: Many emerging markets are traditional economies that rely on farming for most employment eg. India. These small family farms can’t compete with subsidized agri-businesses in the developed countries. As a result, they lose their farms and must look for work in the cities. This aggravates unemployment, crime, and poverty.
• Poor Working Conditions: Multi-national companies may outsource jobs to emerging market countries without adequate labour protections. As a result, women and children are often subjected to grueling factory jobs in sub-standard conditions.
• Degradation of Natural Resources: Emerging market countries often don’t have many environmental protections. Free trade leads to depletion of timber, minerals, and other natural resources. Deforestation and strip-mining reduce their jungles and fields to wastelands.
• Destruction of Native Cultures: As development moves into isolated areas, indigenous cultures can be destroyed. Local peoples are uprooted. Many suffer disease and death when their resources are polluted.
• Reduced Tax Revenue: Many smaller countries struggle to replace revenue lost from import tariffs and fees
  
• Structure of Trade: FTAs have led to increased imports and exports. However, imports are much higher than exports. For example, import of tea for re-exports has led adverse impact on domestic growers. 
• Widening Trade Deficit: India’s trade deficit with ASEAN, Korea and Japan has widened post-FTAs. 
• Sector-Wise Impact of FTAs: Apart from the widening trade deficit, the quality of trade has also deteriorated after signing of FTAs. Out of 21 important sectors, 13 sectors have been adversely affected by higher imports as compared to exports. Some of these affected sectors are minerals, leather, textiles, gems and jewellery, metals, vehicles etc.
  

Way Forward

• Given that India is not a signatory party to any mega-trade agreements, this would be a critical component of a positive trade policy agenda.
• The economic reforms that result in an open, competitive, and technologically innovative Indian economy must underpin India’s trade policy framework.
• People’s sense of being left behind and excluded from the system is exploited by nationalism, populism and protectionism.
• As a result, we must prioritize ensuring universal inclusion in economic networks that enable individuals and families to achieve financial security and pursue opportunities for betterment.

Reference: The IE link