September 15, 2025

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Rising Gap in Incomes

General Studies Paper -3

Context: According to a recent report by the State Bank of India (SBI), India has witnessed a significant fall in inequality over the last decade.

Key Findings

  • The report claims that the Gini coefficient has fallen from 472 in 2014-15 to 0.402 in 2022-23.
  • The Gini coefficient falls for regular wage and casual wage workers, but rises for the self-employed. However, the changes are largely minimal.

The polarization of incomes

  • The fall in the Gini coefficient is accompanied by a polarization in incomes. Incomes of the top 10% have grown faster than the bottom 30%, with polarization largely seen amongst self-employed workers.
  • The category of the self-employed includes own-account workers, such as individual farmers, roadside hawkers, etc. and those who are self-employed but also employ other workers.

Gini Coefficient for different segments

  • The Gini for the self-employed workers rises from 37 to 0.3765,an increase of 1.5%. 
  • For regular and casual wage workers, the coefficient register falls of7% and 4.8%, respectively.
  • Though the Inequality has fallen, inequality among the top income earners seems to have fallen far more.

 

Gini coefficient Gini coefficient is a gauge of economic inequality, measuring income distribution or wealth distribution among a population. The coefficient ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality.

Concern

  • The analysis is conducted on taxpayer data, and a majority of income-earners fall outside the tax net.
  • According to data from the 2022-23 Periodic Labour Force Survey (PLFS), nearly 80% of income-earners earn less than ₹2.5 lakh per annum — the minimum taxable amount.
  • Only those individuals who earn income from work are considered in the report. It excludes those who work as unpaid family helpers, a large proportion of whom are women.
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General Studies Paper -3

Context: Ola group’s AI firm Krutrim is India’s first artificial intelligence unicorn. Krutrim has raised $50 million at a valuation of $1 billion in a funding round.

What is a Unicorn?

  • Unicorn is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 billion.
  • The term was coined to represent the rarity and uniqueness of such companies, much like the mythical creature.
  • Unicorns are often characterized by their rapid growth, disruptive business models, and the ability to attract substantial investment.
  • Growth of Unicorns: Work from home during the pandemic fueled the growth of digital businesses in India, the incident also resulted in a long unicorn list.
  • Mainly three factors, a thriving digital payments ecosystem, large smartphone user base and digital-first business models, have come together to attract investors.
  • Companies that achieve unicorn status are considered to be high-value and have the potential to impact their respective industries significantly.

Unicorns of India 

  • As of 2023, India is home to 111 unicorns with a total valuation of $349.67 Bn.
  • The year 2021, 2020, and 2019saw the birth of the maximum number of Indian unicorns.
  • Bengaluru is India’s unicorn capital with the largest number of unicorn headquarters followed by Delhi (NCR) and Mumbai.
  • Traditional sectors such as E-commerce, Fin-tech, E-commerce, Supply Chain & Logistics, Internet Software & Services do dominate the arena but a strong wave of unconventional sectors such as Content, Gaming, Hospitality, Data management & analytics, etc are making their place on the list.
  • Mensa Brands took only 6 months to become a unicorn in 2021, making it one of fastest unicorns in Asia.  
Do you know ?The global startup ecosystem is witnessing a shift of gradually transitioning from the age of unicorns to the age of decacorns. A decacorn is company that has attained a valuation of more than $ 10 Bn. India has five startups namely, Flipkart, BYJU’s, Nykaa and Swiggy, added in decacorn cohort.

Significance of Rise of Unicorns for Indian Economy

  • Job Creation:Unicorns often experience rapid growth, leading to an increase in job opportunities.
  • Innovation and Technology: Their success signifies a thriving ecosystem that fosters innovation, research, and the development of cutting-edge technologies.
  • Foreign Investments:Foreign investments not only provide capital for these companies but also contribute to the overall inflow of foreign capital into the Indian economy, supporting economic growth.
  • Entrepreneurship Ecosystem:The success stories of these companies motivate aspiring entrepreneurs, creating a positive impact on the overall entrepreneurship ecosystem.
  • Global Recognition: Indian unicorns, especially those expanding globally, enhance the global recognition of India as a hub for technology and business innovation.
  • Economic Growth:The success of unicorns contributes to economic growth by adding value to various sectors of the economy.

Measures Taken by Government of India to support Unicorn/Startups

  • Atal Innovation Mission (AIM): The scheme was launched by the government in 2016, and aims to foster innovation as the government creates new programs and policies to assist start-up development in several economic areas.
  • It grants approximately Rs 10 crores to finance firms over five years.
  • Multiplier Grant Scheme (MGS): The Department of Electronics and Information Technology initiated the Multiplier Grant Scheme (MGS) to empower collaborative research and development among industries for the growth of goods and services.
  • The government gives a maximum amount of Rs 2 crore per project for a duration of less than two years.
  • Dairy Entrepreneurship Development Scheme (DEDS): The Department of Animal Husbandry, Fisheries, and Dairying has launched the DEDS scheme, which aims to create self-employment in the dairy sector.
  • The activities include milk production, procurement, preservation, marketing, etc.
  • Startup India Initiative: This is one of the most popular government schemes for startups in India. The Startup India Initiative aims to provide tax benefits to entrepreneurs for over five years. 
  • Startup India Seed Fund Scheme: The government of India introduced this scheme in2021 to assist early-stage startups.
  • The selected entrepreneurs under this scheme will get the funding of Rs 5 crore. 
  • Fund of Funds for Startups (FFS): The government has established the Fund in 2016 with a corpus of Rs 10,000 crore to provide financial support to startups.
  • This fund is managed by SIDBI (Small Industries Development Bank of India) and aims to promote innovation and entrepreneurship.

Challenges 

  • India is home to a vibrant and diverse startup ecosystem, with a growing number of unicorn startups
  • However, most of these unicorns have not gone public yet, due to various reasons, such as regulatory hurdles, high costs, and abundant private capital.
  • India does not have a dedicated stock exchange for startups, unlike the US, which has the Nasdaq, or China, which has the STAR Market.
  • The existing exchanges, such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), have stringent listing norms, such as profitability criteria, minimum promoter holding, lock-in periods, and disclosure requirements, that may not suit the growth-oriented and innovation-driven nature of startups.

Conclusion and Way ahead 

  • The Indian economy is intricately tied to the success of its startup ecosystem.
  • The long-term prospects are still promising as the IMF projects that India’s economy will grow to become the third largest in the world by 2027.
  • An uptick in investment activity is anticipated in the upcoming years as the world economy stabilizes, solidifying India’s standing as a top investment destination.
  • There is a need to make more investments in startups that emphasize professional upskilling and ongoing education, demonstrating the industry’s dedication to worker empowerment.
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General Studies Paper -2

Context: More than 3,000 flats are likely to be allotted to slum dwellers by the Delhi Development Authority (DDA) under the PMAY-U.

About PMAY-U

  • TheMinistry of Housing and Urban Affairs (MoHUA) launched the Pradhan Mantri Awas Yojana – Urban (PMAY-U) in 2015, as a flagship Mission of the Government of India.
  • Objective:It addresses urban housing shortage among the Economically Weaker Section (EWS)/Low Income Group (LIG) category including the slum dwellers by ensuring a pucca house to eligible urban households.
  • Coverage: The Mission covers the entire urban area consisting of Statutory Towns, Notified Planning Areas, Development Authorities, Special Area Development Authorities, Industrial Development Authorities or any such authority under State legislation which is entrusted with the functions of urban planning & regulations.
  • Implementation period: The scheme was earlier from 25.06.2015 to 31.03.2022. Now it has been extended up to 31.12.2024, except Credit Linked Subsidy Scheme (CLSS) vertical, to complete all the houses sanctioned under the scheme.

Features 

  • PMAY-U adopts a demand-driven approach wherein the housing shortage is decided based on demand assessment by States/Union Territories (UTs).
  • It is a demand driven scheme and GoI has not fixed any target for construction of houses.

Components of the scheme

  • In-situ Slum Redevelopment (ISSR): Central Assistance of Rs. 1 lakh per house is admissible for all houses built for eligible slum dwellers under the component of ISSR using land as a Resource with the participation of private developers.
  • Credit Linked Subsidy Scheme (CLSS): Beneficiaries are eligible for an interest subsidy of 6.5%, 4% and 3% on loan amounts up to Rs. 6 Lakh, Rs. 9 Lakh and Rs. 12 Lakh respectively.
  • Affordable Housing in Partnership (AHP): Under AHP, Central Assistance of Rs. 1.5 Lakh per EWS house is provided by the Government of India.
  • An affordable housing project can be a mix of houses for different categories but it will be eligible for Central Assistance, if at least 35% of the houses in the project are for the EWS category.
  • Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E):Central Assistance up to Rs. 1.5 lakh per EWS house is provided to eligible families belonging to EWS categories for individual house construction/ enhancement.

The Urban Local Bodies validate the information and building plan submitted by the beneficiary so that ownership of land and other details like economic status and eligibility can be ascertained.

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General Studies Paper -1

Context: Women’s political empowerment will enhance governance and boost the economy, as per 2023 UNDP report.

Political Empowerment

  • Political empowerment refers to women’s increased capacity to influence and participate in decision-making processes at all levels of political life.
  • It is a crucial element of achieving gender equality and building a just and equitable society.

Current status

  • In the Global Gender Gap Report 2023,India has achieved an overall rank of 127 out of the 146 countries and in the political empowerment front, India’s rank is
  • In the 2019 Lok Sabha elections, there were only 719 women contestants,9% of the total, and 78 won, making up under 14.4% of all seat winners, a proportion that is below the South Asian average of 18.9% (World Bank).
  • In India, only 10.5% of all Members of Parliament in 2021 were women, while state assembly representation stands at an average of 9%.
  • However, India’s electoral landscape is set for a transformative gender shift. Projections show that women’s voter turnout would exceed that of men by 2029 and reach 55% of the total by 2047.
  • Five recent state elections saw well above 70% of eligible women voting. Rural gains stood out.
  • Many social researchers specifically link these gains to India’s 33% reservation of seats in local representative bodies, as well as grassroots self-help group movements. 
  • Some attribute it to the influence of development schemes that “recognize women’s agency.”

Benefits of Women Political Empowerment (WPE)

  • Governance: As a 2023 UNDP report underscores, women’s political empowerment (WPE) leads to responsive and transparent governance, reduces risks of civil war and political violence, and breaks down gender stereotypes.
  • Economic benefits:A recent data-analysis over an extended time-span (from 1830) across 182 countries has assessed that there have been clear differences in the annual GDP per capita growth rates between countries with low and high rates of WPE.
  • A 2013 study found that WPE over a period of time can augment women’s presence in the economy, labour markeand reduction in gender wage gaps.
  • Innovation and growth:The same analysis showed, increased WPE also brings in technological change and innovation and growth, particularly in non-Western nations, with the infusion of new and efficient ideas into the economy.
  • Multiplier effect:A regional study in Europe and Central Asia (ECA) estimated that a 10%-point increase in women’s representation in parliament is likely to yield a 0.74%-point rise in GDP growth.
  • Sustainable Development Goals: A meta analysis of a global data-set (2015- 2019) said that increased WPE also contributes to the realization of Sustainable Development Goals.
  • Better at role given: In India, a study revealed that “women legislators perform better in their constituencies on economic indicators than their male counterparts and are less likely to be criminal and corrupt, more efficacious, and less vulnerable to political opportunism” (Thushyanthan Baskaran, et al).
  • Access to financial resources: A 2020 field study in 163 villages to evaluate the uptake of India’s rural jobs scheme where women helm local bodies found “it raised women’s demand for work and access to financial resources.”

Challenges

  • Internalized patriarchy: Deep-rooted gender biases and discriminatory practices often limit women’s access to political opportunities and decision-making positions.
  • Violence and Harassment: Women in politics face higher risks of violence, harassment, and intimidation, discouraging their participation.
  • Lack of Support:Limited access to childcare, funding, and political networks can hinder women’s ability to campaign and run for office.
  • Unequal Representation:Existing power structures and political systems often favor men, making it difficult for women to break through and win elections.
  • Political parties often fight shy of fielding a fair share of women as contestants.
  • Women who do get party tickets have family political connections, said a study. In 2019,41% of all women candidates and 30% of those who got elected were ‘dynasts.’
  • Just a vote bank:The importance accorded to women is transactional i.e., a “your-vote-for-my-scheme approach.”

Strategies for Progress

  • Quotas and Reserved Seats: Affirmative action policies, like reserving seats for women in legislatures, can increase their representation in the short term.
  • The Constitution (106th Amendment) Act, 2023,which reserves one-third of all seats for women in Lok Sabha and State legislative assemblies is a right step in this direction.
  • Capacity Building and Training:Empowering women with political knowledge, skills, and leadership training can enhance their confidence and abilities in political leadership.
  • Combating Gender-Based Violence: Robust legal frameworks and comprehensive measures are needed to prevent and address violence against women in politics.
  • Raising Awareness and Advocacy: Public education and campaigns can challenge gender stereotypes and promote social and cultural change towards greater gender equality in politics.
  • Supporting Women’s Organizations:Women’s organizations and networks play a crucial role in supporting female candidates, advocating for their rights, and holding governments accountable.

Way Ahead

  • Thepursuit of gender equality in politics isn’t merely for justice and fair play, but foremost for a more stable and sustainable economy. Trends suggest that goal is almost 130 years away (UN Women).
  • For accountable governance, be it in India or elsewhere, women must pitch in as voters, poll workers, candidates and lawmakers.
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General Studies Paper -2

Context: The article discusses the India-Middle East-Europe Economic Corridor (IMEC), a proposed trade route. It mentions how conflicts like the Yemen conflict and Gaza war affect trade through the Suez Canal, making alternatives like IMEC more important.

What is the IMEC Project?

India Middle East Europe Corridor is a network of transport corridors comprising railway lines and sea lanes to promote economic integration between Asia, the Arabian Gulf, and Europe.

What are the challenges IMEC is facing?

  • Geopolitical Tensions:The conflicts in Yemen and Gaza have impacted regional stability, crucial for IMEC’s success. The Yemen conflict undermines confidence in the Suez Canal, highlighting the need for alternatives like IMEC.
    Turkey’s Exclusion and Alternative Proposal: Excluded from IMEC, Turkey has shown dissatisfaction and proposed an alternative trade route. This route, positioning itself as an alternative to Saudi Arabia, would pass through Iraq to reach the Mediterranean.
  • Saudi Israeli Link Controversy: The key part of IMEC, connecting Saudi Arabia to Israel, faces opposition due to longstanding regional disputes. Critics argue that the Arab Street would not support a major trade link between these two nations, especially following the Gaza war.
  • Uncertain U.S. Support:The potential political return of Donald Trump casts doubts on the U.S.’s commitment to IMEC. Trump’s unpredictable nature raises questions about sustained U.S. interest in such a global project.

How does IMEC benefit India?

  • Enhanced Container Shipping:For India, particularly the southern region, IMEC holds the potential to reduce delivery schedules by up to 40%. This improvement hinges on the development of dedicated freight corridors as part of a comprehensive all-India network, thereby making trade faster and more efficient.
    Reduced Logistics Costs: Aligning with India’s National Logistics Policy of 2022, IMEC could help in reducing logistics costs to global levels by 2030.
  • Optimizing Transport Modes:Currently, 70% of India’s containers move by road. IMEC could shift this towards a more balanced split among road, rail, and coastal shipping, as recommended by industry experts.
  • Integration with Indian Ports:The corridor plans to integrate with major Indian ports like Mundra and Jawaharlal Nehru Port Trust, enhancing their global connectivity and trade capacity.
  • Support for the Hydrogen Economy:IMEC includes plans for hydrogen pipelines, which could benefit India in the transition to a decarbonized economy.

Way forward

The future of IMEC hinges on overcoming geopolitical hurdles and infrastructure challenges. Successful resolution of issues, like Turkey’s exclusion and the Saudi Israeli link, will be crucial. With potential global financing and support, especially from the U.S., Europe, and Saudi Arabia, IMEC could become a major, transformative trade route, benefiting regional economies and enhancing global trade connectivity.

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General Studies Paper -2

Context: The article discusses the strong 25-year partnership between France and India. They want to deepen their ties to address modern challenges like security in the Indo-Pacific, climate change, and technology cooperation.

What is The Consensus Regarding Cooperation between India and France?

  • Strategic Partnership Foundation:Both nations view their alliance as a pillar of stability in a turbulent world, having cultivated ties for over 25 years without major contention.
  • Focus on Indo-Pacific Region: Key areas of joint concern include security, climate change, and regional architecture development. France, with its significant Indian Ocean presence, partners with India in addressing these challenges.
  • Security Cooperation:They collaborate against traditional threats like piracy and non-traditional ones such as illegal fishing. France’s regional military bases, like in La Reunion and Djibouti, facilitate joint naval patrols and resource pooling.
  • Technology and Digital Initiatives:Joint efforts in digital technology aim to foster economic growth and sustainable development, emphasizing an inclusive digital environment.
  • Research and Development:Collaborations in frontier technologies, such as AI and quantum computing, are central, highlighted by the Indo-French Centre of Excellence in quantum computing.
  • Environmental Initiatives: They share a roadmap for developing Green Hydrogen, aspiring to lead in decarbonized hydrogen production.
  • Defence and Space Collaboration: Defense relationship is evolving, with India diversifying its defence acquisitions and France emerging as a key supplier. In space, joint initiatives include the Gaganyaan project and collaboration in the upcoming Venus mission.

What Required Grow Cooperation Between India and France?

  • Maritime Security Enhancement:Increase frequency and scale of joint naval exercises, utilizing French bases more effectively for regional security.
  • Institutional Mechanism Synergy:Foster better integration between the Indian Ocean Rim Association, Indian Ocean Naval Symposium, and the Indian Ocean Commission, led by India and France for a unified approach to maritime challenges.
  • Trade and Technology Coordination: Strengthen collaboration in the EU-India Trade and Technology Council, utilizing France’s influence for beneficial outcomes, and align strategies in the Mineral Security Partnership with the US and G7 countries.
  • Defense Manufacturing Collaboration:Beyond purchasing French defense equipment, India should focus on manufacturing items like Rafale jets domestically, benefiting from the trilateral partnership with France and UAE, to deepen defense ties.
  • Joint Research Initiatives:Expand consortiums involving academic, governmental, and corporate entities for projects in crucial sectors like health and climate change, leveraging the Indo-French Centre of Excellence in quantum computing.
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General Studies Paper -2

Context: The 1st meeting of the Social Audit Advisory Body (SAAB) was held recently.

About

  • The Meeting was chaired by the Secretary, Department of Social Justice & Empowerment. 
  • This advisory body, a first of its kind, has been established to guide the Ministry in institutionalizing social audits for its various schemes.
  • Members:Representatives from key ministries and academic institutions are members of this advisory body.

What is Social Audit?

  • Social Audit is the examination and assessment of a programme/scheme for comparing official records with actual ground realities. 
  • It includes an audit of the quality of works being executed at different levels along with the details of disbursements made, the number of labourers employed and materials used.
  • Objective:The basic objective of social audit is to ensure public accountability in the implementation of projects, laws and policies.
  • Significance:Social Audits play an important role in bringing transparency and driving corrective actions based on valuable feedback from citizens.

National Resource Cell for Social Audit (NRCSA)

  • The Department of Social Justice and Empowerment has established the National Resource Cell for Social Audit (NRCSA)to ensure social audits through dedicated Social Audit Units at the state level. 
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19th NAM Summit

General Studies Paper -2

Context: The 19th Non-Aligned Movement (NAM) Summit was held in Uganda’s capital, Kampala.

Key discussions at the summit

  • Israel-Hamas war:The leaders of NAM countries have denounced Israel’s offensive in Gaza and demanded an immediate ceasefire during the summit.
  • India urged establishing a free Palestinian state and asked for a two-state solution where the Palestinian people can live within a secure border.
  • India’s “Vishwa Mitra” initiative: India  emphasized its role as a friend to the world, or “Vishwa Mitra” to global solidarity and cooperation in his address.

What is Non-Aligned Movement (NAM)?

  • NAM is an alliance of developing nations that refuses to identify with any major superpower during the Cold War.
  • History: It has its origins in the 1955Bandung conference in Indonesia during which representatives from 29 Asian and African countries, including many newly independent states that had been colonized for years, discussed common concerns.
  • NAM was established and held its first conference in 1961 in Belgrade, the capital of Yugoslavia.
  • Founders: The movement’s founders are President Sukarno of Indonesia, Prime Minister Jawaharlal Nehru of India, Gamal Abdel Nasser of Egypt, Kwame Nkrumah of Ghana, and President Josip Tito of Yugoslavia.
  • Secretariat: NAM does not have a permanent secretariat or a formal founding charter, act, or treaty. After the United Nations, NAM is the second-largest grouping of nations.
  • Members: Currently, NAM membership consists of 120 countries: 53 from Africa, 39 from Asia, 26 from Latin America and the Caribbean, and two from Europe. It also includes the non-UN member state of Palestine, and 17 other observer countries.

Challenges faced by NAM in today’s world

  • Changing Geopolitical Dynamics:The geopolitical landscape continues to evolve, with emerging powers and shifting alliances. NAM is facing it challenging to navigate these changes.
  • Human Rights:Issues related to human rights and governance like Crisis in Gaza have gained prominence on the international stage. It is difficult to balance the diverse political systems while addressing concerns related to democracy, human rights abuses, and good governance.
  • Internal Differences: The NAM consisted of countries with diverse political systems, economic structures, and cultural backgrounds. Solving internal differences and maintaining cohesion within the movement is an ongoing challenge.

Relevance of NAM today

  • Address economic Challenges:After the Cold War, there is still an economic divide between developed and developing countries. NAM has significant relevance in today’s world as the movement now shifts from a political concept to an economic one.
  • To ensure World Peace:The movement plays a key role in maintaining world peace and preserving the independence of every nation is equally relevant. It acts as a catalyst to foster cooperation between South nations.
  • Development of nations: It also raises key issues of economic, political, and social development to achieve the desired results of moving from developing to developed nations.

Way ahead

  • Despite these challenges, the Non-Aligned Movement has remained a forum for cooperation and dialogue among its member nations, contributing to diplomatic efforts, conflict resolution, and the promotion of peace and development.
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General Studies Paper -2

Context: The 54th annual meeting of the World Economic Forum in Davos, Switzerland was concluded recently.

About

  • Every year, leaders from various fields, such as business, politics, economics, etc., gather in the Swiss town to discuss challenges facing the world and explore the ways forward.
  • The five-day session was held offline for the first time in three years.

Five Takeaways of the 2024 Summit:

  • Artificial Intelligence:Many transformational abilities for human welfare were discussed, so were the need for regulation, fear of job losses, the risks of impersonation and misinformation, and the inequalities it can potentially worsen.
  • The overall discussion seemed to be that the positives outweigh the negatives, and human intelligence did not face a major threat from AI.
  • War and Uncertainty: Business leaders spoke of the risk posed by a fragile geopolitical situation, wars in the Middle East and Europe, the threats to global supply chains, and the uncertainty around food security.
  • Yet, no plans or roadmaps for peace were offered about the Israel-Gaza violence.
  • Climate:The need for businesses to adapt to climate change and for countries to unite for action against it despite differences was another topic.
  • The need for the Developed countries to assist in the financing of climate action in the developing countries was discussed.
  • China’s Economy: Facing a slowing economy, China tried to attract more investment from the West, which has witnessed some cooling.
  • At 5.2%, China’s GDP growth in 2023 is still below pre-pandemic levels, and it is battling American attempts to isolate it.
  • India: India seemed to be the most visible among its regional Asian peers, with major tech companies staging booths in Davos.
  • Indian business leaders were seen at the forefront of debates over technology and supply chain issues.
  • One of the key takeaways from the Forum meeting was the announcement of the launch of a Global Good Alliance for Gender Equity and Equality with the support by WEF and Government of India.
  • The objective of this Alliance is to bring together global best practices, knowledge sharing and investments in the identified areas of women’s health, education, and enterprise.
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General Studies Paper -2

Context: The Union Ministry of Home Affairs (MHA) is planning to end the Free Movement Regime (FMR) with Myanmar.

Free Movement Regime (FMR) Agreement

  • The FMR is a mutually agreed arrangement between the two countries that allows tribes living along the border on either side to travel up to 16 km inside the other country without a visa.
  • It was aimed to minimise the historical divide and facilitate cultural and economic ties.
    • The border between India and Myanmar was demarcated by the British in 1826without seeking the opinion of the people living in the region, which effectively divided people of the same ethnicity and culture into two nations without their consent.
    • People in the region have strong ethnic and familial ties across the border.
  • It was implemented in 2018 as part of the Act East Policy and was supposed to provide impetus to local trade and business and boost regional ties.
    • The region has a long history of trans-border commerce through customs and border haats.

Differed Opinion

  • Manipurhad urged the MHA to suspend the FMR and fence the entire India-Myanmar border in September 2023.
    • It had already suspended the FMR in 2022to prevent large-scale migration of refugees from Myanmar.
  • However, Mizoram and Nagaland have opposed this move of MHA, arguing that the FMR allows the tribes residing across the borders to maintain their ethnic, social, and cultural ties, as well as contribute to the economic well-being of people on both sides of the border.
    • They have also opposed the proposal of fencing the entire border with Myanmar.

Why ending the FMR Agreement is significant to India?

  • Security Concerns:There are illegal immigrants, drug traffickers, and insurgents from Myanmar have been misusing the liberty of the FMR.
  • Control of Ethnic Violence:There have been several instances of ethnic violence in the region.
    • About 200 people have lost their lives in ethnic violence between the Kuki tribes and the Meiteis in the second half of 2023.
  • Border Management:The decision to end the FMR is part of a broader plan to secure the India-Myanmar border.
    • The government plans to fence the border, similar to the India-Bangladesh border.
  • Regulation of Movement:The FMR allowed locals from both countries to enter either side up to a certain distance without visas and passports.
    • This arrangement will be scrapped, regulating the movement of people across the border.

India’s strategy to safeguard its borders

  • Developing Infrastructure: As part of the strategy to secure the borders as also to create infrastructure in the border areas of the country, several initiatives have been undertaken by the Border Management Division.
    • These include the construction of the fence, floodlighting, roads, Border Out Posts (BOPs), Company Operating Bases (COBs), and deployment of technological solutions along the India-Pakistan, India-Bangladesh, India-China, India-Nepal, India-Bhutan and India-Myanmar borders.
  • Deployment of Troops & Surveillance:The Indian Army and the BSF are deployed in multiple layers to form an anti-infiltration grid.
    • The border fence and deployment of other surveillance devices have helped in reducing infiltrations.
    • Improving our intelligence network within the state to nab the drug dealers on our side of the border must be the main priority of our security forces.
  • Along Bangladesh, Nepal, Bhutan, and Myanmar borders:Our borders with these countries are guarded primarily by paramilitary forces, and they have to deal with the smuggling and trafficking of humans, drugs, arms, illegal migration, and movement of suspected insurgents.
  • Drugs Challenge: Drones have proved to be an effective tool in smuggling drugs across the border.
    • It will take more than mere vigilance on the border to deal with this menace.

Conclusion and Way Forward

  • Mere scrapping of FMR might not make any difference on the ground, as in the case of  Manipur where FMR has remained suspended since September 2022.
    • The people continue to cross the international border from any point mostly without permits. Crossing the border freely highlights the fact that the India-Myanmar border continues to be poorly guarded.
  • There is a need to ensure that the border between India and Myanmar is effectively secured and regulated by all stakeholders.
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