1) Congress, six other parties move to impeach CJI Misra The Congress, supported by six other Opposition parties in the Rajya Sabha took the

unprecedented step of moving an impeachment motion against Chief Justice of India (CJI)

Dipak Misra on grounds of ‘misbehaviour’ and levelled five charges against him.

It is the first time a sitting Chief Justice will face an impeachment notice in India’s

constitutional history.

The notice comes a day after the Supreme Court rejected a clutch of petitions seeking a

probe into the circumstances surrounding the death of judge B.H. Loya, who was hearing

the Sohrabuddin Sheikh encounter case in which BJP president Amit Shah was an

accused.

The court held that Loya had died of “natural causes”.The Congress, however, insisted

that the move was not linked to the verdict in the Loya case.

Both the Constitution and the Judges (Inquiry) Act of 1968 are silent on whether a judge

facing impeachment motion should recuse from judicial and administrative work till he is

cleared of the charges against him. This is the first time that a Chief Justice of India is

facing an impeachment motion.

The jurists are, however, divided on whether a decision by the Rajya Sabha Chairman to

refuse the impeachment motion would be judicially reviewable.

2) Union Cabinet approves death for rape of girls under 12 years

The Criminal Law (Amendment) Ordinance provides for stringent punishment of a jail

term of minimum 20 years or life imprisonment or death for rape of a girl under 12 years.

Amendments Amendments would be made to the Indian Penal Code, the Criminal Procedure Code, the

Protection of Children from Sexual Offences (POCSO) Act and the Indian Evidence Act.

Changes in Investigation Mechanism o To improve the capacity of the judicial system, the government plans to set up new

fast track courts, special forensic labs exclusively for rape cases, forensic kits for rape

cases at all police stations and hospitals and dedicated manpower for investigation of

such cases.

o This will be done within three months on a “mission mode”.

Stats o National Crime Records Bureau (NCRB) put a question mark on the effectiveness of

death as a deterrence for child rape.

o In 2016, of the 64,138 child rape cases that came up before the courts under the

Protection of Children from Sexual Offences (POSCO) Act read with IPC Section

376, 1,869 cases — or less than three per cent — ended in convictions.

Why the act is not good? o Moreover, of the total cases of rape of women and children before the police that

year, in over 94 per cent of the cases (34,650 out of 36,657 cases), the offender was

known to the victim — he was either a close family member, a neighbour, or an

acquaintance.

o Given this reality, experts point to the need for more debate before any amendment of

the criminal law is carried out to award death penalty for cases of child rape

o Far from reporting the crime, death penalty is going to deter the victim from reporting

sexual assault when the offender is from the family or is known to them. This will

lead to the crime being suppressed and the victim being left completely helpless.

Concerns in the ordinance o sexual assaults against boys have been left unaddressed

o sentencing on the basis of age is not right because rape is rape.

Justice Verma Committee Recommendation o The Justice Verma Committee, which was constituted in the aftermath of December

2012 gangrape in Delhi to recommend legal reforms to curb sexual assault crimes, in

its report said introduction of death penalty for rape may not have a deterrent effect

and recommended enhanced sentence of jail for the remainder of life.

3) India- UK : The issue of retrospective taxation in India, and labour mobility in the U.K. were among

the issues raised by Indian and British chief executives during a round-table discussion

with the two Prime Ministers during the bilateral that took place earlier this week.

The forum, which involved about 30 CEOs from India and the U.K on the bilateral leg of

Mr. Modi’s visit to London for the Commonwealth Heads of Government Meeting.

Indian business leaders also raised the issue of mobility for those in professional services

in the U.K., including around costs and the need for technology sector workers to pay

National Insurance contributions, despite being in the country for short periods. “These

were the nitty gritty issues that impact the cost of business and can really make a

difference,” he said.

Other issues discussed included opportunities for tech collaboration, including the

creation of a virtual incubator for U.K.-Indian start-ups and links up between universities,

advanced manufacturing, autonomous and electric vehicles, and life sciences.

The failure of Britain and India to sign a key memorandum of understanding on the return

of illegal migrants during Prime Minister Narendra Modi’s visit has been greeted with

surprise, as the agreement was seen as a key element of the visit.

During her visit to India in 2016, British Prime Minister Theresa May said the U.K.

would consider an improved visa deal, “if, at the same time, we can step up the speed and

volume of returns of Indians with no right to remain in the U.K.”

The signing — which would have been seen as a gesture of goodwill from India —

would have placed the onus on Britain to deliver on Indian requests around visas for

professionals and students, thereby making a crucial breakthrough in issues that have

presented challenges to the bilateral relationship.

A national portal enabled the identification of nationality that would enable someone’s

status to be swiftly verified once someone had been identified as illegal by Britain.

However, it is understood that a failure to reach an agreement on the numbers of returns

and the speed at which they would be required to be returned led to hopes of a swift deal

being reached fading.

A source suggested Britain’s expectations on these issues were beyond the level India

was willing to commit to. Discussions on the issue are expected to continue at Home

Secretary level next month.

The whole point of the better economic closer relationship between India and the U.K.

was predicated on greater visas access which in turn was predicated on the return of

illegal migrants, estimates on the numbers of which varies dramatically.

The MoU would also have come at a politically sensitive time for Britain, amid questions

about its treatment of the “Windrush generation” — men and women from the Caribbean

who came to the U.K. between the late 1940s and early 1970s, many as children, before

U.K. legislation no longer gave Commonwealth citizens the automatic right to reside in

Britain.

4) India, Finland end Nokia tax dispute The Income Tax Department has confirmed that India and Finland have reached an

agreement under the Mutual Agreement Procedure (MAP) system and that the issue

surrounding the alleged tax payable by Nokia ‘has been resolved’, paving the way for the

company to sell its long-shuttered plant in Chennai.

Proceedings [between the two countries] have been completed under MAP and the issue

has been resolved.

Nokia India had been issued a demand notice for Rs. 2,500 crore in 2013, which was

thereafter reduced to Rs. 1,600 crore.The Income Tax Department had also raised a tax

demand of Rs. 10,000 crore tax on Nokia Corporation for the same transaction, which has

now been dropped under the MAP agreement.

5) A promise of reform

Context:

Proposed Defence Planning Committee aims to institutionalise a new decision-making

system on national security

Composition of the DPC

A permanent body, comprising of

1. Chairman Chiefs of Staff Committee (COSC),

2. service chiefs,

3. Defence Secretary,

4. Foreign Secretary and Secretary (expenditure) in the Finance Ministry,

Features of the DPC

DPC is a permanent institutional mechanism with a specified charter which means that it

not only can make recommendations, but can also follow up on their implementation.

This takes care of the biggest lacuna in the reports produced so far by high-powered

committees, which are usually full of retired officials with little authority in government.

The DPC has top bureaucrats from three important ministries, and is chaired by the NSA

who is backed by the PM’s political mandate.

This new committee should help the armed forces prioritise their procurement plans to

reflect diplomatic and financial realities.

The DPC would also give the armed forces an institutional role in higher policy

formulation, which has been lacking so far.

But over-dependence on such a high-powered committee to achieve defence planning

goals also carries the danger of over-centralisation of national security initiatives in one

official, the NSA.

The committee will draft reports on national security strategy, says notification. The new

permanent higher defence management committee headed by the National Security

Adviser can help improve India’s defence planning in the long term, but may end up

having no noticeable impact if the present government does not return to power in 2019,

several military sources and observers say.

A government notification said the Defence Planning Committee (DPC) would prepare a

draft national security strategy, develop a capability development plan and work on

defence diplomacy issues and improving defence manufacturing in India. The DPC will

submit its reports to the Defence Minister.

6) Cabinet approves Fugitive Economic Offenders Ordinance 2018 The Union Cabinet approved a proposal to promulgate Fugitive Economic Offenders

Ordinance 2018 that provides for confiscating properties and assets of economic offenders

like loan defaulters who flee the country

According to the ordinance, a director or deputy director (appointed under the PMLA,

2002) may file an application before a special court (designated under the 2002 Act) to

declare a person as a fugitive economic offender.

The application will contain the reasons to believe that an individual is a fugitive

economic offender.

The application will have information about his whereabouts, a list of properties believed

to be proceeds of a crime for which confiscation is sought, a list of benami properties or

foreign properties for which confiscation is sought, and a list of persons having an

interest in these properties.

Upon receiving the application, the special court will issue a notice to the individual,

requiring him to appear at a specified place within six weeks. If the person appears at the

specified place, the special court will terminate its proceedings under the provisions of

the Bill.

7) Countering America’s Adversaries Through Sanctions Act (CAATSA) It is a United States federal law that imposed sanctions on Iran, North Korea, and Russia

The CAATSA includes sanctions against countries that engage in significant transactions

with the Russian defence and intelligence sectors.

U.S. Position India would not be immune to the proposed sanctions under CAATSA.

According to Section 231 of CAATSA, any country or entity that carries out

“transactions with the intelligence or defence sectors” of the Russian government would

face sanctions from the U.S.

8) Antarctic expedition Context

In February 2018, 30 Indian scientists on an expedition to one of India’s base stations in

Antarctica had to be evacuated after their ship collided with an iceberg.

The hired Russian ship, m.v. Ivan Papanin, was on its way to Maitri, India’s inland

research base, from Bharati, another India station.

The Indian Antarctic Program is a multi-disciplinary, multi-institutional program under

the control of the National Centre for Antarctic and Ocean Research, Ministry of Earth

Sciences. It was initiated in 1981 with the first Indian expedition to Antarctica.

The program gained global acceptance with India’s signing of the Antarctic Treaty and

subsequent construction of the Dakshin Gangotri Antarctic research base in

1983, superseded by the Maitri base from 1990.

The newest base commissioned in 2015 is Bharati, constructed out of 134 shipping

containers.

Multidisciplinary drifting Observatory for the Study of Arctic Climate

(MOSAiC)

It is yearlong expedition in arctic. The project with a total budget exceeding 60 Million €

has been designed by an international consortium of leading polar research institutions,

under the umbrella of the International Arctic Science Committee (IASC)

The expedition will gather data observing the ocean, ice and atmosphere, helping to better

understand the physical, chemical and biological properties of the Arctic environment and

how it is changing.

The results of MOSAiC will contribute to enhance understanding of the regional and

global consequences of Arctic climate change and sea-ice loss and improve weather and

climate predictions. As such it will support safer maritime and offshore operations,

contribute to an improved scientific basis for future fishery and traffic along northern sea

routes, increase coastal-community resilience, and support science-informed decision-

making and policy development.

9) Aadhaar does not record caste or race, says SC judge

The Aadhaar Act does not record the caste, religion, race, etc., of individuals, thus

ensuring that these demographics are not used to discriminate among citizens, Justice

D.Y. Chandrachud observed during the Constitution Bench hearing in the Aadhaar case .

Justice Chandrachud had, in August 2017, authored the historic verdict for the nine-judge

Constitution Bench, which declared that privacy was intrinsic to life and liberty and an

inherent part of the fundamental rights enshrined in the Constitution.

Justice Chandrachud summarised Mr. Dwivedi’s submissions, saying the latter meant that

there were four levels of identification – demographics, optional demographics,

biometrics and core biometrics like fingerprints and iris scans.

Dwivedi said the UIDAI does not share core biometrics at all.

10) PIL has become an ‘industry of vested interests’: SC Supreme Court says it is a travesty of justice for the resources of the legal system to be

consumed by an avalanche of misdirected public interest petitions.

The Supreme Court derided the Loya PIL petitions as a case in point of how public

interest litigation has become an “industry of vested interests” rather than a powerful tool

to espouse the cause of the marginalised and oppressed.

A Bench of Chief Justice of India Dipak Misra and Justices A.M. Khanwilkar and D.Y.

Chandrachud said the essential aspect of a genuine PIL petition was that the person who

moves the court has no personal interest in the outcome of the proceedings, apart from a

general standing as a citizen before the court.

The PIL was envisioned by the Supreme Court’s legendary judges as “a powerful

instrument to preserve the rule of law and to ensure the accountability of and

transparency within structures of governance”.

11) Sustainable growth should be a goal PM on Common Wealth

Prime Minister Modi says interests of small island states should be on the

Commonwealth’s agenda.

Prime Minister Narendra Modi urged the Commonwealth to put sustainable development

and climate change, particularly of small island states, at the heart of its agenda, as India

announced an increased funding for various Commonwealth initiatives and sought to take

a leadership role in a renewed group.

During the executive sessions that focussed on democracy and the rule of law, the

international trading system, climate change and sustainable development goals, Mr.

Modi spoke on the need in particular to give a greater role to the concerns of small island

states.

India has said that it would double its contribution to the Commonwealth’s small states

offices in New York and Geneva to help them deal with multilateral areas of concern.

Ahead of the summit, it was hoped that renewed interest from India will give new

impetus and relevance to the organisation. After many years of active engagement with it,

there was an eight-year period where no Indian Prime Minister had participated in a

CHOGM, so the decision by Mr. Modi to attend the event was seen as a significant

moment for the group.

12) Has there been a sharp rise in construction of toilets?

National Family Health Survey (NFHS) and National Annual Rural Sanitation

Survey (NARSS) are government-backed surveys conducted in league with

multilateral donor organizations such as United Nations Population Fund (UNPF) and

World Bank, respectively.

NARSS interviewed 92,000 households across the country while the NFHS surveyed a

much larger sample of 601,509 households.

Although the methodologies of NFHS and NARSS are similar, the former survey is about

health while the latter focuses exclusively on sanitation and that may explain part of the

jump, according to an official involved with the survey.

Performance assessment by the surveys:

The National Annual Rural Sanitation Survey conducted between November 2017 and

March 2018 shows that 75% of rural households in the country have access to toilets.

29 percentage point jump over what the National Family Health Survey (NFHS) 2015-

16 reported.

India has built more toilets over the past two years than it did in the previous five years, if

the latest official sanitation survey is to be believed.

A comparison of disaggregated NFHS and census 2011 data shows that between 2011

and 2015-16, the share of households with exclusive access to toilets rose 9 percentage

points to 37%.

But a comparison of NFHS and NARSS data shows that between 2015-16 and 2017-18,

the share of such households rose a whopping 27 percentage points to 64%.

State-wise performance

The annual pace of toilet addition went up from 2 percentage points in 2011-2016 to

30 percentage points in 2016-18 in Chhattisgarh.

In Madhya Pradesh, the pace of toilet addition accelerated to 24 percentage points

per annum from 1.4 percentage points per annum earlier, according to data from NFHS

and NARSS.

“States such as Chhattisgarh have been declared open-defecation free since then. The

results of this survey can, however, be confirmed only by surveys which need to be

conducted every six months.”

Conclusion:

The NARSS data suggests that 93.4% of the people who had access to toilets used them

regularly.

Overall though, NARSS paints a picture of phenomenal progress in sanitation across

India.

Only after the results of the 2021 census are declared will we know for sure whether this

is an accurate reflection of reality.

13) . Breakthrough in cancer detection? A Japanese firm is poised to carry out what it hailed as the world’s first experiment to test

for cancer using urine samples, which would greatly facilitate screening for the deadly

disease.

Engineering and IT conglomerate Hitachi developed the basic technology to detect breast

or colon cancer from urine samples two years ago.

It will now begin testing the method using some 250 urine samples, to see if samples at

room temperature are suitable for analysis.It is also intended to be used to detect

paediatric cancers.

Research published earlier this year demonstrated that a new blood test has shown

promise towards detecting eight different kinds of tumours before they spread elsewhere

in the body.

14) Nod awaited to induct jurist into Lokpal panel The high-profile Lokpal selection committee, led by the Prime Minister, met on April 10 and

the recommendations for the induction of an eminent jurist in the panel is awaiting approval,

the government informed the Supreme Court.

Besides the Prime Minister, the selection committee is composed of Chief Justice of India

and Lok Sabha Speaker.

Though passed in 2014, the Lokpal and Lokayukta Act of 2013 was not implemented all

these years because there was no Leader of Opposition (LoP) in the 16th Lok Sabha.

The 2013 statute includes the LoP as a member of the selection committee. The Act

intends the LoP to be the part of the selection committee of the PM, the CJI and the

Speaker, which has to first appoint an eminent jurist among their ranks.

However, on April 27 last year, the Supreme Court, in a judgment, clarified that the

Lokpal appointment process need not be stalled merely due to the absence of the LoP.

15) Centre to rank States on startup ecosystem On the lines of Ease of Doing Business (EDB) ranking, the Centre will rate the State/Union

Territories by finalising a Startup Ranking Framework from this year based on the scores

obtained in various parameters.

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and

Industry, has asked the States/UTs to upload the required documents on or before April

30.

After thorough evaluation, rating will be given through a public announcement in June.

The ranking, as part of the Startup India initiative aimed at ensuring a healthy

competition.

16) . Law Commission favours simultaneous elections A draft white paper released by the Law Commission of India recommends holding of

simultaneous elections to the Lok Sabha and the Assemblies, possibly in 2019.It suggests

amending the Constitution to realise this objective.

In a public notice annexed to the draft, the commission, which is the government’s

highest law advisory body, said the white paper would be circulated to constitutional

experts, academia, political parties, bureaucrats, students, etc

The commission says simultaneous elections were held in the country during the first two

decades after Independence up to 1967.

Dissolution of certain Assemblies in 1968 and 1969 followed by the dissolution of the

Lok Sabha led to the disruption of the conduct of simultaneous elections.

17) . India, Sweden agree upon ‘win-win’ joint action plan Prime Minister Narendra Modi arrived in the capital of Sweden, the first bilateral visit by an

Indian premier .

India and Sweden will also jointly organize the India-Nordic Summit in Stockholm

tomorrow. The summit will also be attended by the prime ministers of Finland, Norway,

Denmark and Iceland.

After a hectic day of bilateral parleys here, Prime Minister Narendra Modi and his

Swedish counterpart, Stefan Löfven, on Tuesday agreed upon a joint action plan (JAP)

for both countries to take forward a wide range of initiatives in defence, trade and

investment, counterterrorism, renewable energy, smart cities, women’s skill development,

space and science and healthcare.

18) Sooner or later, there will be a new financial crisis’

The recent bubbles in the stock exchanges and financial markets foretell an imminent

financial crisis that would likely be stronger and more dangerous than in the past,

according to Eric Toussaint, historian, political scientist and a spokesman of the

Committee for the Abolition of Illegitimate Debt (CADTM).

Committee for the Abolition of Illegitimate Debt (CADTM)

The CADTM is an international network of activists working on cancellation of

illegitimate debt.

Based in Belgium and Morocco, its activists work on developing alternatives to help

communities tackle the pile up of debt, with particular focus on the global south.

Central banks — the U.S. Federal reserve, the European Central Bank, the Bank of

England, the Bank of Japan — implemented a policy of Quantitative Easing, injecting a

lot of liquidity into banks, and buying very toxic products like mortgage-backed

securities and asset backed-securities.

Socialisation of banks

Toussaint advocated the socialisation of the banks where citizens, the banks’ employees

and local authorities control the activities of banks. The public banks should intervene in

the local economy and help it develop and coincide with the needs of the people.

19) India must create 8.1 million jobs annually, says World Bank report

India needs to create 8.1 million jobs a year to maintain its employment rate, said a World

Bank report which projected the country’s growth to accelerate to 7.3% in the current

financial year.

It has projected the growth rate to increase further to 7.5% in the following two years.

The report also said that India has recovered from the withdrawal of large denomination

bank notes in November 2016, and the rollout of the Goods and Services Tax (GST) in

July 2017.

In its twice-a-year South Asia Economic Focus (SAEF) titled ‘Jobless Growth?’, the bank

also said that the area has regained its lead as the fastest growing region in the world,

supported by recovery in India.

“Growth is expected to accelerate from 6.7% in 2017 to 7.3% in 2018 and to

subsequently stabilise supported by a sustained recovery in private investment and private

consumption,” it said, referreing to India.

SAEF finds that the South Asia region could even extend its lead over East Asia and the

Pacific.

20) . Towards a regional reset?

Bold moves to normalise ties with China and Pakistan will enhance India’s standing.

The shift has given rise to speculation that the two sides are intent on making significant

progress in smoothening ties on outstanding issues such as boundary negotiations and

also narrowing the trade deficit.

The most obvious in this is what is now being called the “reset” with China.

While the trigger for the rapprochement between the two neighbours was the peaceful

resolution of the Doklam standoff and Mr. Modi’s meeting with Chinese President Xi

Jinping in Xiamen last year.

Indian response to Chinese issues:

The government has also gone to some lengths to tone down planned celebrations

marking the anniversary of the Dalai Lama’s arrival from Tibet. New Delhi and

Beijing have now embarked on a flurry of high-level visits that are meant to lead up to a

summit meeting between the two leaders; they may even meet more than once.

1. Indo-Maldives

Despite several appeals by the Maldivian opposition, and nudges from the U.S., the Modi

government decided not to exert hard power in bringing Maldives President Abdulla

Yameen around after he declared a state of emergency in the country.

Nor did it engage China in a confrontation when Mr. Yameen sought Beijing’s support in

this regard.

The government remained silent as Male went a step further and held discussions

with Pakistan’s Army Chief, on joint patrolling of its Exclusive Economic Zone, an

area of operation in the Indian Ocean considered to be India’s domain.

2. Indo-Nepal

With Nepal, instead of seeing red when a victorious Prime Minister K.P. Oli made it clear

that he would step up engagement with China in infrastructure development, India rolled

out the red carpet for him earlier this month.

Nor did India raise concern over Nepal’s Constitution, which had sparked the

confrontation between India and Nepal in 2015-16.

3. With respect to Bangladesh and Bhutan

Both Bhutan and Bangladesh are to hold elections this year, and with incumbent

governments more favourably disposed to New Delhi than their challengers in the

opposition.

The results will have an impact on India’s influence in these countries as well.

Quiet progress with Pakistan

Government admitted in Parliament for the first time that National Security Adviser

(NSA) Ajit Doval had met his Pakistani counterpart, Nasser Khan Janjua, as a part of

“established channels of communications at various levels” between the two sides in the

past few years, post-Pathankot.

Meanwhile, the resolution of the standoff over the treatment of diplomats in Delhi and

Islamabad indicates that neither government has the appetite for escalation at this point.

Majorly visible changes in Indian Foreign Policy

All around, it would appear that India’s hard power strategy in the region is being

replaced with a more conciliatory one.

However, the next steps will be defined not by a quiet or defensive approach to redefining

India’s foreign policy in the region, but with a more bold and proactive one.

Benefits on change in Indo-China policy

The reset with China will work only if there are transactional dividends for both New

Delhi and Beijing, in case the two governments go back to the default antagonism of the

past after the summit meetings.

Two issues on which both governments can show flexibility are

1. China’s Belt and Road Initiative (BRI) and

2. India’s bid for Nuclear Suppliers Group (NSG) membership.

Article I. On the NSG

China could remove its block to India’s membership by adopting a more inclusive

approach within the nuclear export control organisation.

As Indian membership will only strengthen the international nuclear regime.

Even if withdrawal of China’s objections does not soften the objections of more hardline

“non-proliferationists” or Non-Proliferation Treaty-proponents, the goodwill from such a

move would propel India-China relations forward.

Article II. On the BRI

If there is political will on both sides, they needn’t look too far for creative solutions

around India’s three concerns:

1. On territorial integrity,

2. Transparency of projects and

3. Sustainability

The solution to the first is contained in a proposal under consideration to extend the

China-Pakistan Economic Corridor (CPEC) to Afghanistan.

While it may not have been the outcome discussed, the shift from the CPEC to what

could be called PACE or the Pakistan-Afghanistan-China Economic corridor would

necessitate a shift away from projects in Gilgit-Baltistan and Pakistan-occupied Kashmir.

Other sovereigns concern over BRI

Meanwhile, several countries, from Europe to Central and East Asia, are now echoing

India’s concerns about the environmental and debt trap risks that BRI projects pose.

India could take the lead in creating an international template for infrastructure and

connectivity proposals, one that would seek to engage China and other donor countries in

a structured approach towards debt financing.

This would win India goodwill in the neighbourhood too, where every other country

(apart from Bhutan) has signed on to the BRI, but has felt alienated by India’s rigid

opposition to the initiative.

SAARC re-engagement

However, the real tipping point in India’s regional reset will come if the government also

decides to reconsider its opposition to the South Asian Association for Regional

Cooperation (SAARC) summit this year, with Pakistan as the host.

Foreign Secretary repeated India’s concerns over cross-border terrorism from Pakistan,

saying: “Given the current state of play where there is cross-border terrorism and

where this is a disruptive force in the region, it is difficult in such circumstances to

proceed with [SAARC].” But the argument is beginning to wear thin.

Responses from other SAARC members

Afghanistan, which supported India’s move to pull out of the SAARC summit in

Islamabad in 2016 following the Uri attacks, is engaging with Pakistan again.

Afghan President Ashraf Ghani and Pakistan Prime Minister Shahid Khaqan Abbasi

signed a seven-point Afghanistan-Pakistan Action Plan for Peace and Solidarity early this

month.

21) . From Plate to Plough: Freeing the farm

Raising agricultural exports requires the government to unburden policy of consumer

bias.

The Agriculture Minister, Radha Mohan Singh, recently tweeted about the government’s

resolve to increase the value of the country’s agricultural exports to $100 billion by 2022-

23.

From $8.7 billion in 2004-05 to $42.6 billion by 2013-14. This was an unprecedented

achievement in independent India’s history.

Not only this, India’s net agri-export surplus (exports minus imports) increased from $3.7

billion in 2004-05 to about $27 billion in 2013-14; that was a more than a seven-fold

increase.

However, in 2014-16, India’s agri-exports fell to $32 billion.

They rose marginally to $33 billion in 2016-17 (see graph). The net trade surplus fell to

$9.5 billion in 2015-16 and further to $7.8 billion in 2016-17.

The April-February data for 2017-18 shows agri-exports at $34 billion; this is likely to go

up to about $38 billion once we have figures for the entire financial year.

The draft Agri-Exports Policy rightly identifies two steps

Identify commodities in which India holds a global comparative advantage and develop

clusters in states to create value chains for these commodities.

Research conducted at ICRIER can be of help if the government decides to take the first

step enunciated in the draft policy.

Eleven commodities marine products, rice, meat, spices, cotton, fresh fruits and

vegetables, sugar, coffee, groundnut, oilmeals and cashews comprised more than 80 per

cent of the country’s agri-export basket in 2016-17.

22) . Make BCCI a public body: law panel

In news

The 90-year-old Board of Control for Cricket in India (BCCI) should be declared a public

body. The board and all its member cricket associations should be brought under the

Right to Information law regime, the Law Commission of India recommended to the

government.

The board’s monopolistic activities, directly and indirectly, affect the fundamental rights

of citizens, players, and other functionaries.

A private citizen should be able to move the highest court against the BCCI for any

violation of his fundamental rights, the Law Commission led by former Supreme Court

judge, Justice B.S. Chauhan, said in its report handed over to Union Law Minister Ravi

Shankar Prasad.

The commission said the board has been flying under the radar of public scrutiny and

encouraged an environment of opacity and non-accountability.

The BCCI virtually acts as a National Sports Federation (NSF). The commission

recommended that the Ministry website should explicitly mention BCCI in the list of

NSFs. This would automatically bring it within the purview of the RTI Act, the

commission said.

Listing some of the reasons why it concluded that the BCCI is a limb of the state, the

commission pointed out how the cricket board, as an entity, is permitted de facto by the

state to represent the country at the international stage.

It selects the Indian cricket team. The selected players wear the national colours and are

the recipients of Arjuna Awards.

23) Study in India website launched

External Affairs Minister Sushma Swaraj launched the Study in India website, marking

the setting in motion of an ambitious scheme to attract foreign students to study in good

Indian higher educational institutions.

The scheme will entail the admission of foreign students from 30 countries — with a

focus on South Asia, South East Asia, West Asia and Africa — to study in 160 quality

higher educational institutions of India as per NIRF ranks and NAAC grades.

The central education portal put in place for Study in India was comprehensive, he said.

Once students register on it, they can apply for 160 institutions and get seats as per merit.

It also has a provision for online counselling and a helpline number.

The goal of the ambitious scheme is to increase the number of foreign students in India to

2 lakh by 2023.

24) National portal to share research facilities soon

Soon researchers in any college or institution and research organisations can check,

reserve and have easy access to even expensive research equipment and facilities

anywhere in India, thanks to the efforts by the Centre for Nano Science and Engineering

(CeNSE) at the Indian Institute of Science, Bengaluru.

The centre is in the process of collating information about scientific and research

equipment and facilities available at academic institutions and research organisations

across the country.

Online reservation

The portal — Indian Science, Technology and Engineering Facilities Map (I-STEM) —

will soon become operational. The government green signalled the project last month.

The institutions and organisations that have the equipment and facilities will provide

access to researchers for both academic and non-academic work through an online

reservation system.

25) Minority institutions panel gets court relief

The Supreme Court held that the National Commission for Minority Educational Institutions

(NCMEI) has original jurisdiction to determine which institution should be granted minority

status.

The wide power given to an independent forum like the NCMEI to declare an institution

as a minority educational institution furthered the fundamental right guaranteed under

Article 30.

Justice Nariman, who authored the judgment, said the NCMEI Act empowered the

Commission to decide all questions relating to the status of an institution as a minority

educational institution and to declare its status as such.

Section 11(f) would include the declaration of the status of an institution as a minority

educational institution at all stages.

The court held that the NCMEI had the power to decide any question that might arise,

which relate directly or indirectly, with respect to the status of an institution as a minority

educational institution.

The Supreme Court held that the NCMEI could declare an establishment as a minority

educational institution at all stages.

Justice Nariman said the 2006 amendments to the NCMEI Act introduced a “sea change”

to the Commission’s powers. The 2006 amendments even conferred powers of appeal

against orders of the competent authority to the NCMEI. A power of cancellation was

also vested in the NCMEI to cancel a certificate granted either by an authority or the

NCMEI.

The apex court overruled a Calcutta High Court judgment which set aside the NCMEI

decision to grant minority status to Cluny Women’s College.

26) Minorities’ commission to seek constitutional status

The National Commission for Minorities (NCM) has decided to approach the government

for granting it Constitutional status to protect the rights of minority communities more

effectively.

If granted such a status, the NCM will be able to act against errant officials who do not

attend hearings, follow its order or are found guilty of dereliction of duty. The decision

was made during the panel’s meeting last week, he said.

Till now, only the National Commission for Scheduled Castes and the National

Commission for Scheduled Tribes enjoy constitutional status.

In its present form, the NCM has powers to summon officials, including chief secretaries

and director generals of police, but has to rely on departments concerned to take action

against them.

More powers

If granted constitutional status, the NCM can penalise or suspend an officer for two days

or send him/her to jail.

Earlier, the Standing Committee on Social Justice and Empowerment (2017-18), in its

53rd report noted that the NCM is almost ineffective in its current state to deal with cases

of atrocities against minorities.

The committee recommended constitutional status to the body without any delay.

27) Agasthyamala Biosphere Reserve

Background

Established in 2001, the Agasthyamala Biosphere Reserve is spread across the States of

Kerala and Tamil Nadu. Located in the southernmost end of the Western Ghats, the

Reserve covers an impressive area of over 3,500 sq.km. Hosting one of the most diverse

ecosystems in peninsular India, it constitutes an important biogeographical hotspot within

the Western Ghats.

As a biosphere reserve, it protects larger areas of natural habitats and includes three

wildlife sanctuaries – Shendurney, Peppara and Nayar, as well as the Kalakad

Mundanthurai Tiger Reserve.

A few years ago, the Agasthyamala Biosphere Reserve was brought under the

Biodiversity Conservation and Rural Livelihood Improvement Project, a programme

assisted by World Bank. It aims at conserving biodiversity in selected landscapes,

including protected areas / critical conservation areas, while improving rural livelihoods

through participatory approaches.

28) . ‘Bank credit: can’t be business as usual’

RBI’s Vishwanathan says stressed asset norms aimed at changing behaviour of lenders and

borrowers

RBI’s New norms

The Reserve Bank of India’s latest norms for the resolution of stressed assets are aimed at

warding off further risks to the banking sector from lending operations.

The new norms mandate banks to start the resolution process even if there is a payment

default for one day. In many cases, banks have to increase provisioning if the resolution

is implemented.

In the wake of this, banks have represented to the central bank to ease the norms. They

are also lobbying with the finance ministry to convince RBI to relax the norms.

29) Enhanced telecom in LWE regions

In news

To enhance mobile communication in regions affected by left wing extremism (LWE),

the government plans to install more than 4,000 mobile towers across 10 States at an

estimated cost of over Rs. 7,300 crore, to be funded through the Universal Obligation

Fund.

More about the Project

The proposal, which will soon be taken up for approval by the Union Cabinet, aims to

provide calling as well as internet facility to security forces and citizens in 96 districts.

The completion of Phase 1 of the project has enabled better communication and

coordination between security forces, leading to a reduction in the number of Naxal

attacks. There is a need to fast track Phase 2, set up basic infrastructure.

Phase 1 of the project was implemented by Bharat Sanchar Nigam Limited (BSNL), a

public sector enterprise, due to security reasons. However, BSNL currently does not have

4G spectrum. It has requested the Department of Telecom (DoT) for it and is hopeful of

rolling out pan India 4G services (except in Delhi and Mumbai) next year.

The official added that it has been decided to upgrade the technology after the Ministry of

Home Affairs (MHA) raised no objection to 2G and 4G technology for voice and data

services as it does not have any security implication.

30) . When it rains

Importance of the article:

A ‘normal’ monsoon prediction is welcome. But the real challenge farmers face today is

not production, but prices.

Facts and analysis about the monsoon:

India Meteorological Department (IMD) predicting overall rainfall during the south-west

monsoon season from June to September to be 97 per cent of the country’s historical long

period average (LPA) for these four months.

Thanks to the very low probability of an El Nino event — the abnormal warming of the

equatorial eastern Pacific Ocean waters, which is known to adversely impact rainfall in

India during the season from June to September.

That technically translates into a “normal” monsoon, with only 14 per cent forecast

probability of the rains being “deficient” (less than 90 per cent of LPA) and 30 per cent

“below normal” (90-96 per cent of LPA).

It correctly predicted below-normal rainfall in 2014 and 2015 (both turned out to be

drought years) and normal monsoons in 2016 and 2017 (both bumper harvest years), even

if the spatial and temporal distribution (particularly in the second half of the season) may

have been somewhat off the mark.

Impact of monsoon on the political arena:

For a ruling party, facing the electorate in a drought year is the worst possible nightmare.

High food prices and farm distress from drought can be a intoxicating combination in an

election year.

A normal monsoon forecast should be welcome news for the Narendra Modi government

and good for market sentiment as well.

Are bumper harvests sufficient to guarantee farm prosperity?

The real challenge that farmers are facing today is not production, but prices.

The IMD, has done a decent job of forecasting rainfall or even adverse weather events.

The farmer, however, is equally in need of price forecasting and market intelligence to

enable informed planting decisions. That, unfortunately, is still missing.

Agriculture and the monsoon:

The farm sector per se accounts for hardly 16 per cent of India’s GDP today, but it still

employs almost half of the country’s workforce and has a bearing on inflation.

Food and beverages have a 45.86 per cent weight in the official consumer price index.

A normal monsoon would keep a lid on food inflation.

In the current context, it will also neutralise the impact of rising oil prices and a

weakening of the rupee.

For farmers, rains are a necessary condition for their survival, despite the possibility of

achieving significant drought-proofing with irrigation (through large canals, tube-wells

and use of water harvesting, drip and sprinkler technologies) and proper crop planning.

Why farm deflation is essentially a problem of liquidity

The main problem for farmers today is to do with prices that they are getting for their

produce.

In majority of crops, inflation has been negative this year.

The accompanying table shows the annual price increase in key agricultural commodities

for the latest month of March and also the corresponding average figure for the 2017-18

financial year as a whole.

Since the inflation rates here are based on the official wholesale price index, they are a

reasonable proxy for the extent of raise or decline in farmer realisations at the mandis.

Inflationary trends on Food

It can be seen that in a majority of crops, inflation has been negative, with prices actually

falling year-on-year.

The incidence of deflation has been particularly pronounced in pulses and oilseeds, but

also recorded for wheat, condiments and spices, and natural rubber. In most other crops

— be it paddy, milk, egg and meat, cotton or sugar — the price increases are at very low

single-digits.

The only exception has been fruits and vegetables, though even in their case, the inflation

is mainly on account of a low base.

Potato, for instance, is selling in Uttar Pradesh’s Agra mandi at around Rs 10 per kg,

which is just about remunerative for the farmer. Last year, at this time, the tuber was

fetching a mere Rs 3.7-3.8/kg.

On the other hand, the average modal price of onion at Lasalgaon (Maharashtra) has

crashed from Rs 15.50 to Rs 6.25 per kg in the last two months, while tomato is currently

trading at Rs 4.50/kg in Kolar (Karnataka). This, in peak summer, when vegetable prices

are expected to generally firm up!

Reasons behind the trends in prices

The above across-the-board price declines in agri-commodities defies ordinary

explanation.

Many ground reports, including from this newspaper, suggest that a major cause could be

the demonetisation-induced liquidity crunch in rural areas.

Much of produce trading takes place in cash, simply because that is the farmers’ preferred

medium of payment.

Ground realities

Farmers normally bring their crop to commission agents in mandis.

These middlemen not only help farmers connect to traders/buyers, but also ensure

payment in hard cash for the produce that is sold by them.

The commission agents themselves may be paid through cheque or electronic transfer by

the traders taking delivery, but the payment to farmers is mostly in cash.

There is anecdotal evidence to show that the supply of currency to rural areas has not

fully normalised even almost one-and-a-half years since the scrapping of the old Rs 500

and Rs 1,000 denomination notes.

While the shortage has been obvious in recent weeks, whether the availability of currency

was adequate even prior to that – more so, given the bumper crops harvested and brought

to the mandis by farmers in recent seasons – is something which needs probing.

It is a simple rule of economics that when there’s too much money chasing too few

goods, the result is inflation. That rule is now, perhaps, working in the reverse.

When the mandis are devoid of liquidity and farmers want to be paid in cash for their

higher output from normal monsoons, they are bound to receive lower prices. The current

crisis in farms may be a more a crisis of liquidity.

31) . Mega SEZs to spur electronics exports

In a bid to make India an export hub for electronics, the government plans to set up at

least one SEZ or special economic zone in every State under the proposed electronic

policy.

The new policy will focus on making India an export hub. It has been proposed that at

least one mega SEZ be set up in each state, with emphasis on coastal economic zones.

‘Africa, Europe focus’

Under the new policy, which was earlier expected to be out by March 2018, the

government also plans to sign free trade agreements (FTAs) with countries, including

those in Africa and Europe, to which India can export smaller electronic products.

In 2016, as part of a Make in India strategy for electronics, the government think-tank

NITI Aayog had recommended that India forge FTAs [towards creating a] duty free

market for our electronic goods.

At present, our approach with respect to FTAs is defensive because we are a much larger

importer of electronic products than an exporter. But a switch to an export-oriented

strategy would convert FTAs into an opportunity.

Push for CEZs

It had also recommended that Costal Economic Zones (CEZs) be set up, similar to what

China has done.

Pointing out that India’s numerous SEZs have not taken off in the way they did in China

due to issues such as size and location, the Aayog had said large areas near the coast can

be set aside for CEZs in which a sound ecosystem for healthy growth of export-oriented

firms is fostered.

India has set a target of net zero imports in electronics by 2020, in the meeting of which

the new policy will play a crucial role.

32) What govt. can do to keep fuel prices under check

Petrol and diesel prices touched record levels over the weekend with petrol selling at Rs.

74.40 a litre, the highest it’s been under the current government’s tenure and diesel at Rs.

65.65, largely due to rising global crude oil prices but also on high excise duty on the fuels.

How are oil prices behaving?

Crude oil prices rose at a scorching 24% in the first three months of 2018 before hitting a

40-month high in April following a decline in global inventories, largely caused by the

production cuts by the Organisation of Petroleum Exporting Countries (OPEC) members

and also by geopolitical tensions in West Asia.

Agencies such as Crisil Research expect crude oil prices to settle at about $70 a barrel

during the calendar year of 2018, representing a 27% increase over last year’s level. As a

consequence, India’s oil import bill is expected to balloon by about 26% to Rs. 6.5 lakh

crore in FY19.

What is the impact of taxes?

The other aspect has to do with the excise duty on petrol and diesel, imposed by the

government, which has risen sharply over the last few years.

According to data with the Petroleum Planning and Analysis Cell of the Ministry of

Petroleum and Natural Gas, the excise duty on branded petrol is Rs. 20.66 a litre or

almost 28% of the total price of the fuel. This proportion is 27% for branded diesel.

Excise duties have risen significantly since 2013-14, accounting for 22-25% of the retail

prices of petrol and diesel respectively, compared with 12-15% earlier when crude prices

were at similar levels.

What can be done?

The advantage of linking domestic fuel prices to the global oil market, as India has done, is

that oil marketing companies (OMCs) are no longer forced to sell fuel at subsidised rates.

But on the flip side, as can be seen now, is that the consumer is forced to buy fuel at high

prices when global price levels are elevated.

So, one thing the government can do, and which it is reportedly considering doing, is to ask

the OMCs to refrain from passing on the higher oil prices to consumers.

In other words, this would represent a return to the previous subsidy regime, albeit somewhat

better. If crude price hikes are not allowed to be largely passed on to consumers, the

marketing margins of OMCs will decline by 80 paise to Rs. 1 per litre.