SSB Lecturette 2

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING 1) The National Herald Case

Introduction The National Herald Case is an ongoing private case filed by BJP leader, Dr Subramanian Swamy in a Delhi court against Sonia Gandhi and Rahul Gandhi of fraud and land grabbing on 01 November 2012. Delhi High Court had ordered Sonia Gandhi, Rahul Gandhi and five others involved in the case to appear in person before the trial court on 09 December 2015. However, they did not appear in the trial court on 09 December and their lawyers requested the trial court to defer the hearing. The trial court then ordered the accused to appear in person on 19 December 2015. National Congress Party created a ruckus in the well of the House, disrupting the proceedings of the Winter Session of the Parliament, calling it political vendetta. The leaders of the ruling party called it a means adopted by Congress Party to draw out some political traction from a criminal case and prevent passage of important bills like the GST. In a very recent development, the Haryana Vigilance Department on 07 May 2016 registered an FIR against former state chief minister Bhupinder Singh Hooda for his alleged involvement in the National Herald case. Mr Hooda by virtue of being the chief minister of Haryana was also the ex-officio chairman of the Haryana Urban Development Authority (HUDA). 1

He has been accused of illegally transferring land to Associated Journals Ltd (AJL), for publication of newspaper, at Panchkula in 2005. Charges framed against him in the FIR include, cheating and breach of trust under the Indian Penal Code and also criminal misconduct under Prevention of Corruption Act. Incorporation of Associated Journals Limited (AJL) Pt. JL Nehru, along with some eminent personalities of those times like, Purushottam Das Tandon, Acharya Narendra Dev, Dr. Kailash Nath Katju, Rafi Ahmad Kidwai, Krishna Dutt Paliwal and Govind Ballabh Pant, incorporated an unlisted public company called the Associated Journals Limited (AJL), with a registered office at Herald House, in Delhi on 20 November 1937. The Company started with a capital of Rs 5 lacs with the support of about 5000 freedom fighters, who were shareholders of AJL. There were 2000 preferential shares worth Rs 100 each and 30,000 shares worth Rs 10 each. The Company did not belong to any particular person and was associated with the business of journalism/ News only. AJL published the English newspaper National Herald, Qaumi Awaz in Urdu and Navjeevan in Hindi until 2008. AJL owns real estate properties worth cores in various cities, including New Delhi (Herald House, is a six-storey building with around 10,000 sq meter office space), and in other prominent cities like, Lucknow, Bhopal, Mumbai, Indore, Patna and Panchkula. The Annual Return filed by the Company in the Registrar of Companies on 29 September 2010 displayed a total of 1,057 shareholders. Eminent Congressman Motilal Vora has been the Chairman and Managing Director of AJL since 22 March 2002. Incorporation of a Private Company ‘Young Indians’ On 23 November 2010 a private Company, called the Young Indian Pvt. Ltd. (YIL), with a capital of Rs 50 lacs was incorporated and registered in the same building, Herald House. The Company‟s 76% shares are jointly in the names of Sonia Gandhi and Rahul Gandhi and the balance 12% shares each are held in the names of Congressmen Motilal Vora and Oscar Fernandes. Rahul Gandhi was appointed Director of Young Indian on 13 December 2010 and Sonia Gandhi joined the Board of Directors on 22 January 2011. The Young Indian Pvt. Ltd. (YIL) has been declared by its office as a "not-for-profit company" and it does have any commercial operations. The account books of AJL showed heavy losses and its holdings were transferred to Young Indian Limited in 2011. Alleged Complaints in the Case The major issues highlighted in the case filled by Bharatiya Janata Party (BJP) leader and lawyer, Dr Subramanian Swamy is as follows: Sonia Gandhi, Rahul Gandhi and others acquired a public limited company, called “Associated Journals Limited (AJL)” through a privately owned company, “Young Indian Pvt. Ltd. (YIL)” and got the publication rights of News papers, National Herald and Quami Awaz.

He alleges that the real estate properties worth 2000 core which was given by the government only for newspaper purposes, also got transferred to Young Indian, whose 76 percent of shareholding is with Sonia and Rahul Gandhi, while the remaining 24 percent shareholding is with the other accused. Besides, the properties were being illegally used for commercial activities, and e.g. Herald House in New Delhi is running a passport office with rental income amounting to 60 lacs per month. The next allegation filed in the complaint is that Rs 90.25 core was transferred as an unsecured loan from the All India Congress Committee at zero percent interest to Young Indian Pvt. Ltd. (YIL). Thus, it entails misappropriation of funds, i.e. by paying just Rs. 50 lakh, the Young Indian (YI) obtained the rights to recover Rs 90.25 core which the Associated Journals Limited (AJL) had owed to the Congress Party. Dr Swamy argued that as per Section 29A to C of the Representation of the People Act, 1951 and Section 13A of Income-tax Act, 1961, it is illegal for a political party to lend money for commercial purposes and demanded investigation by the Central Bureau of Investigation (CBI). He has further sought de-recognition of the Indian National Congress party for using public money. Though, the Congress Party had responded on 02 November 2012 that the loan was given only for reviving National Herald newspaper with no commercial interest. Taking cognizance of the prima facie evidence, the Metropolitan Magistrate Ms. Gomati Manocha summoned Sonia Gandhi, Rahul Gandhi, Motilal Vora, Oscar Fernandes, Suman Dubey and Satyan Pitroda to appear in the court on 07 August 2014. The Magistrate said that according to the evidence so far "it appears that Young Indian Pvt. Ltd. (YIL) was in fact created as a sham or a cloak to convert public money to personal use" to acquire control of 250 crore worth of assets of AJL. A number of shareholders of Associated Journals Ltd (AJL), prominent ones being Shanti Bhushan and Markandey Katju, have claimed that the company‟s chairman, Motilal Vora, and its Directors did not inform them or obtain their approval while deciding to transfer its entire equity to Young Indian Pvt. Ltd. (YIL) in December 2010. Reasons for Implication of Former CM Hooda Plot number C-17, with the plot size of 3,360 square-meters, at Sector 6 in Panchkula, had been allotted to AJL in 1982 but was taken back in 1996, after the company failed to construct a building on it. Once Congress Party came into power in 2005, the then chief minister, Hooda initiated the process of restoring the plot to AJL on a representation made on the firm‟s behalf by one of the trustees. The land was then re-allotted to AJL on June 29, 2005. There is documented proof that the Haryana‟s Joint Legal Remembrancer, Mr Jagdeep Jain had on August 17, 2005, strongly opposed the plot‟s re-allotment. However, Hooda had at that stage overruled Jain‟s note.

On the other hand, Mr Hooda defends his action, by saying that there was “no wrongdoing and that everything was done as per the procedure”. He said that after the re-allotment, the AJL completed the construction on the plot. The land had been re-allotted and construction done to set up a news paper by the name of „Navjivan‟. However, the newspaper has yet to see the light of the day.

Conclusion The original 5000 shareholders of AJL, which include former Congressmen, freedom fighters and corporate people, are the biggest losers in the Herald case since they have died. Most of their descendants would never even be aware of the fortune that their forefathers left, which they are never going to inherit.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

2) Navigation with Indian Constellation (NAVIC) – Latest Feather in ISRO’s Cap

Introduction The Indian Space Research Organization (ISRO) is the premier space agency of India, which is committed to “harness space technology for national development, while pursuing space science research and planetary exploration. The headquarters of ISRO is at Bengaluru and its Chairman is Mr A S Kiran Kumar, who carries the titles of Secretary of the Department of Space and Chairman of the Space Commission. Today, the Indian Space Research Organization (ISRO) is amongst the world's best in space technology. The space programme has been the fore-runner to the coveted Integrated Missile Technology Programme of India and encompasses interdisciplinary areas of space technology, rocket research, testing, launch and tracking. In the succeeding paragraphs we shall discuss the contours of Indian space programme and the distinctive achievements of ISRO.

Advent of Space Research Programme 5

India‟s pursuit for space research began immediately after it became a Republic on 26 January 1950, and in the same year set up the Department of Atomic Energy, with Homi Baba as it secretary. When Soviet Union launched „Sputnik‟ into space in 1957, it opened the vistas for space exploration for the rest of the world. Indian National Committee for Space Research (INCOSPAR) was established at Bangalore in 1962 with Viram Sarabhai as its Chairman. In 1969, INCOSPAR was superseded by the Indian Space Research Organization (ISRO), which is the world‟s largest Government space agency. Its objective is to advance space technology and use its applications for national benefits. Milestones in the Journey of ISRO First Indian Satellite India built its first satellite, „Aryabhatta‟ that was launched into space by Soviet Union on 15 April 1975. During the 1960‟s and 70‟s programme were initiated for the development of indigenous launch vehicles, and finally in 1979, ISRO successfully developed Satellite Launch Vehicle (SLV-3). First Satellite Launched Indigenously In 1980, „Rohini‟, was the first satellite placed into orbit by the Indian SLV-3. India was dependent on Russia for the commercial launch of satellites. Therefore, in order to achieve self sufficiency in this field, the period from 1980 - 1990‟s was dedicated to the development of Polar Satellite Launch Vehicle (PSLV) and Geostationary Satellite Launch Vehicle (GSLV). Polar Satellite Launch Vehicle India developed this capability for launch of Indian Remote Sensing (IRS) satellites into Sun synchronous orbits. PSLV can launch small size satellites into geostationary transfer orbit. PSLV was first launched on 20 September 1993. As of 2015 the PSLV has launched 93 satellites (36 Indian and 57 foreign satellites of 20 different countries) into a variety of orbits. Polar Satellite Launch Vehicle broke the Russian held world record of launching ten satellites at one time in 2008. On 30 June 2014, PSLV successfully launched five satellites (besides its own, Canada, Singapore, Germany and France) into orbit. Polar Satellite Launch Vehicle successfully placed six satellites from Singapore in orbit after launching from Indian Space Research Organization‟s space port in Sriharikota on 16 December 2015. Geostationary Satellite Launch Vehicle (GSLV) GSLV is meant to launch heavy satellites like the INSAT series, with a payload of 500 tons (in comparison Aryabhata which was 40 kgs only) to low earth orbit. GSLV has been built by India with the cryogenic engine purchased from Russia. The transfer of technology for cryogenic engines from Russia was withheld due to the UN Resolution imposing sanctions against India after the Pokaran Nuclear Test conducted by India in May 1998. India pressed into action its own cryogenic engine development programme. On 25 December 2010, ISRO, finding itself very close to achieving a success received a setback as the GSLV 6

launch failed due to technical snags. Again in August 2013 launch had to be aborted because of fuel leakage during the second stage of launch. Finally, on 05 January 2014, GSLV D5 successfully launched GSAT-14 into its intended orbit putting India into the elite ‘Cryo Club’, a select group of space-faring nations. The other countries that possess this capability are USA, Russia, France, Japan, and China. This capability was crucial for India as it has been paying $85-90 million (500 crores) as fee to foreign agencies for launching communication satellites weighing 3.5 tons. Satellites launched by ISRO for national benefit include: INSAT Series. Multi-purpose geostationary satellites commissioned in 1983. It satisfies the need for telecommunication, broadcasting, metrology and search and rescue missions. INSAT is the largest domestic communication system in the Asia Pacific region. IRS Series. Indian Remote Sensing Satellite System is the largest Remote Sensing constellation for civilian use in operation in the entire world. It provides useful data to undertake relevant national development programmes. RISAT Series. Radar Imaging Satellites RISAT-1 and RISAT-2 have been launched to obtain high resolution data. GSAT Series. These are experimental satellites launched from GSLV. GSLV D5 successfully launched GSAT-14 into its intended orbit on 05 January 2014. GSAT-16. A multi-application satellite for telecommunication was successfully launched from on board Arianespace rocket from the space port of Kourou in French Guiana on 07 December 2014. GSAT-16 has 48 transponders, which is the largest ever carried by a communication satellite. The satellite has been built by Indian Space Research Organization (ISRO), and is designed to provide direct-to-home (DTH) television broadcast covering the complete Indian Sub-continent. Kalpna-1. ISRO dedicated its Metrological satellite launched on 12 September 2002, originally called MetSat to Kalpana-1 after her unfortunate demise. IRNSS Series. It is an independent regional satellite system developed by India to provide accurate position information to users in India and up to a distance of 1500 km of its boundary. This autonomous regional satellite navigation system has been indigenously developed by ISRO and will be under the exclusive control of the Indian government. It has been developed to offset reliance on global navigation satellite system like GPS, the availability of which cannot be guaranteed during hostile conditions. The Indian Regional Navigation Satellite System or IRNSS with an operational name of NAVIC stands for Navigation with Indian Constellation. The fully deployed NAVIC system consists of 3 satellites in GEO orbit and 4 satellites in GSO orbit, approximately 36,000 km altitude above earth surface. Besides these seven, two satellites will be on the ground as stand-by. The constellation comprising of these seven satellites are called IRNSS-1A to IRNSS-1G. The last satellite to complete the constellation was successfully launched on 28 April 2016 using PSLV-C33. The navigational system so developed will be a regional one targeted towards South Asia. The constellation will provide navigation, tracking and mapping services. 7

The Standard Positioning Service will be open for civilian use, while, there will be some restricted services with encryptions for authorized users only, like the military. It may be highlighted here that, missile targeting could be an important military application for the constellation. Once the NAVIC is declared operational after checking the systems – space (satellites), ground (ground stations) and the user-end signal receivers, India will formally join a select group of nations owning their own Navigational Satellite system. The NAVIC constellation of seven satellites are now already in the orbit and is expected to commence operations from June 2016 onwards. Lunar Exploration Chandrayan-1 First unmanned mission to moon was launched using modified version of PSLV from SD Space Centre, Srihaikota on 22 October 2008. It comprised a Lunar Orbiter that orbited the moon to survey the lunar surface to produce a complete map of its chemical characteristics and 3-dimensional topography and a Lunar Impactor for the moon impact probe. Chandrayan-1 became the first lunar mission to discover the traces of water on moon. Chandrayan-2 Is being planned to be launched using GSLV-MkII by 2016-17 and it will be India‟s second unmanned Lunar mission to further understand the origin and evolution of moon. Mars Exploration ISRO launched its $74 million first Mars Orbiter Mission called the Mangalyan on 05 November 2013. It carries 15-kilogram suite of five science instruments to study the Martian upper atmosphere, surface features and mineralogy. Indian scientists on 22 September successfully tested the main engine of the country‟s Mars mission spacecraft and completed a course correction that put the probe on track to enter the red planet‟s orbit on September 24. ISRO achieved the unattainable on 24 September 2014, and India became the first country in the entire world to put the Mars Orbiter into its intended orbit at a distance of 423 km from Mars in its first attempt and became the fourth country in the world to achieve this commendable feat. Conclusion Indian Space Research Organization is the finest example of an efficiently run Public sector organization. It has functioned with meagre resources and shoe string budgets to contribute exceptionally in the field of space research. The high level of technological expertise available with ISRO and its functional model of planning, designing, management, execution and man-management, can be replicated in other fields that require immediate attention like, efficient transportation, water management, pollution control, power generation and distribution that are vital to country‟s growth. The recent development of the Navigation with Indian Constellation is truly one of the most prominent feathers in the cap of ISRO.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

3) BITCOIN -THE INFAMOUS VIRTUAL CURRANCY

Background Bit coin is both a virtual currency and an online payment system which has the potential to revolutionize the global financial system. However the details of this technology have been shrouded in mystery till now. Bit coin is both a type of digital token, or virtual currency, and the network on which those tokens can be stored and moved around. Each unit of the virtual currency is nothing more than an entry on a digital ledger, just as most dollars and cents exist only as entries on a bank's digital ledger. The price of a Bit coin is set on the open market, generally on exchanges where people offer to buy and sell Bit coin, similar to the way that a stock's price is set. While normal currencies are tracked by banks, Bit coins are kept on a ledger that is maintained and updated by any user of Bit coin who wants to help. The constantly updated ledger is kept on the computers of all its users -just as Wikipedia entries are written and kept current by the encyclopedia's users rather than by any central authority. The work maintaining Bit coin‟s ledger is done according to rules that are established by the Bit coin software. The communally maintained ledger is known as the 'Block chain'. It makes the currency so different from exiting world currencies. Since there is no central authorities in Bit coin-just the network of users keeping the records - there is no one to shut down accounts or demand personal information from users. Any user can open an account and spend whatever Bit coins they have as long as they have the password-or secret key-for their account. Origin Of Background Bit coin is both a virtual currency and an online payment system which has the potential to revolutionize the global financial system. However the details of this technology have been shrouded in mystery till now. Bit coin is both a type of digital token, or virtual currency, and the network on which those tokens can be stored and moved around. Each unit of the virtual currency is nothing more than an entry on a digital ledger, just as most dollars and cents exist only as entries on a bank's digital ledger. The price of a Bit coin is set on the open market, generally on exchanges where people offer to buy and sell Bit coin, similar to the way that a stock's price is set. While normal currencies are tracked by banks, Bit coins are kept on a ledger that is maintained and updated by any user of Bit coin who wants to help. The 9

constantly updated ledger is kept on the computers of all its users -just as Wikipedia entries are written and kept current by the encyclopedia's users rather than by any central authority. The work maintaining Bit coin‟s ledger is done according to rules that are established by the Bit coin software. The communally maintained ledger is known as the 'Block chain'. It makes the currency so different from exiting world currencies. Since there is no central authorities in Bit coin-just the network of users keeping the records - there is no one to shut down accounts or demand personal information from users. Any user can open an account and spend whatever Bitcoins they have as long as they have the password-or secret key-for their account. Origin of Bit coin The anonymous creator of Bit coin was rumored to be Mr. Satoshi Nakamoto till now. Recently, an Australian tech entrepreneur Mr. Craig Wright made ripples in the financial world by announcing that he was the creator of Bit coin wearing the mask of Satoshi Nakamoto. The BBC reported that Wright gave some reliable technical proof demonstrating that he had access to blocks of Bit coins known to have created by the Bit coin‟s creator. But he declined requests from 'The Economist' to provide further proofs that he was Nakamoto, creating serious doubts about his claim, though dramatically Wright announced-"Satoshi is dead, but this is only the beginning." From the moment the Bitcoin network started operating in 2009,a new bundle of Bit coins - initially 50- was released every ten minutes or so, essentially for free, to one of the computers helping to update and maintain the Block chain ledger. Computers on the network take part in a sort of computational race to win these Bit coins, a process that came to be called 'Bit coin mining". This giveaway provided an incentive for people to join and support the network with their computers. New coins will be released n this way until there are 21 millions in the world (scheduled to happen in 2140). Once a user wins a new bundle of bit coins, he or she can divide the up in any way-up to eight decimal points- and distribute them to anyone else with a Bit coin address. Initially, people sent their Bit coins to friends for free. Now, there are exchanges on which people offer to buy and sell The price of Bit coins has swung wildly, reaching a high over $1,200 in intra-day trading in late 2013, but in the middle of last month,'The Wall Street Journal' reported that the currency had been about as volatile or less volatile than physical gold for a straight three weeks. The price of a Bit coin now is about $440,or approximately Rs 30,000/- How Does Transaction Happen While Spending Bit coin? Anyone with a Bit coin address-which is similar to an email address- can send and receive Bit coins from anyone else with a Bit coin address. Creating a Bit coin address is free. Each address comes with a private key, a sophisticated password that provided access to the coins in the address. It is a matter of interest that there are thousands of merchants that now accept Bit coin payments online, like any credit/debit card online payment. These companies will generally provide a Bit coin address where money can be sent in order to complete a transaction. For the merchants, Bit coin is preferable to credit card payments because the merchant doesn't have to pay a fee to

Credit Card Company. More over the transaction is never monitored by any government financial agency which could attract tax liabilities. Why Bit coin is a Notorious Currency? The online drug bazaar known as the 'Silk Road" offered a safe haven for vendors to sell illegal drugs, like Heroin and Cocaine, for Bit coins. Because Bit coin can be sent anywhere almost instantly, essentially free of cost, away from the scanning eyes of all Anti-narcotic Government agencies, it is the preferred mode of payment by all drug lords of the world now. Also since the payments are made in a veil of secrecy not revealing the identity of buyer and seller of drugs, the system is obviously the best choice for all criminal activity. Law enforcement officials have had some luck in tracking down Bit coin users by looking at IP addresses associated with particular Bit coin addresses, or by tracking down users on the 'Block chain ledger' of all Bit coin transactions. But this has proved to be a tedious and slow process with very limited success so far. Why Bitcoin is popular among the masses? The Silk Road helped demonstrate that money can be transferred quickly and cheaply without the gaze of legal authorities and without a bank account. Hence immigrants embraced Bit coin as a means of sending their earnings home cheaply, without scrutiny by banks or law enforcing agencies, since many do not have passports/visa and government identity documents. Seeing the potential of Bit coin, banks and financial firms are now looking to give it legitimacy, by using the block chain to allow for cheaper, faster stock and bond trades. Conclusion The economical world is awakening to this new currency which has the potential to challenge the government machineries' capabilities, to track and apprehend the smugglers and drug mafia and to weaken the global economical platform. The sensational declaration of Craig Wright, claiming to be the mysterious creator of Bit coin has unleashed apprehensions in the economic world-Nakamoto may be holding up to 1 million bit coins, which sold today would fetch about $ 440 million and he holds the key to control Bit coin price.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

4) Consequences of United Kingdom Exiting European Union – BREXIT

Introduction The possibility of withdrawal of the United Kingdom from the European Union is being widely referred to as BREXIT. A referendum on the country's membership of the EU will be held on 23 June 2016. A European Union Referendum Bill was introduced into the House of Commons on 28 May 2015, approved by the House of Lords on 14 December 2015, and was given the Royal Assent on 17 December 2015 to pass the European Union Referendum Act 2015. Under the provisions of the European Union Referendum Act 2015, UK will hold a referendum, not later than 31 December 2017 on whether the United Kingdom should remain a member of the European Union (EU). On 20 February 2016 it was announced by the Prime Minister David Cameron that the referendum would take place on Thursday, 23 June 2016. Background Information

A regional organization, called the European Economic Community (EEC) was created by the Treaty of Rome in 1957. The aim of this organization was to bring about economic integration amongst its member states. The UK was not a signatory to the Treaty of Rome and subsequently applied to join the organization in 1963 and 1967. However, both applications were vetoed by the then President of France, Charles de Gaulle. Finally, on 01 January 1973, UK gained entry into the EEC, while the Conservative Party was in power under Prime Minister Edward Heath. The opposition Labor Party, led by Harold Wilson, contested the October 1974 general elections with a commitment to renegotiate Britain's terms of membership of the EEC and then hold a referendum on whether to remain in the EEC on the new terms. Referendum of 1975 The Labor Party after coming into power held a referendum on whether UK must remain a part of EU on 07 June 1975. Most of the administrative county in the UK had a majority of "Yes", except the Shetland Islands and the Outer Hebrides. Consequently, as an outcome of the vote, the United Kingdom remained a member of the EEC. Creation of European Union The Maastricht Treaty was signed on 07 February 1992, with the aim to integrate Europe by the European Community and came into effect from 01 November 1993. Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed as the European Community (EC) to indicate that it covered a wider range of aspects, rather than just economic policy. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon, which incorporated the EC's institutions into the EU's wider framework and provided that the EU would "replace and succeed the European Community". Treaty of Lisbon The Treaty of Lisbon was signed by the EU member states on 13 December 2007, and entered into force on 1 December 2009. The Treaty of Lisbon amended the Treaty of Maastricht and greatly formalized the functioning of the European Union, to include:  Creating a more powerful European Parliament, with a bicameral legislature alongside the Council of Ministers.  Consolidated legal personality for the EU and the creation of a long-term President of the European Council and a High Representative of the Union for Foreign Affairs and Security Policy.  The Treaty also made the Union's bill of rights and the Charter of Fundamental Rights, legally binding.  The Treaty for the first time gave member states the explicit legal right to leave the EU and a procedure to do so.

Referendum of 2016 British Prime Minister David Cameron, who belongs to the Conservative Party after coming into power in 2012, had announced that a Conservative government would hold an in-out referendum on EU membership before the end of 2017. The provisions to leave the EU have been cited in Article 50 of the Treaty of Lisbon. PM Cameron has said that he would trigger the Article 50 process immediately following a „leave vote‟. Once the proceedings of Article 50 have been initiated, there is a two-year time period to negotiate the arrangements for exit. Process of Referendum The referendum will be held across all four countries of the United Kingdom, i.e. England, Scotland, Wales and Northern Ireland as well as in the Overseas Territory of Gibraltar on 23 June 2016. There are to be 382 local voting areas which are grouped into twelve regional counts and there will be separate declarations for each of the regional counts. Only British, Irish and Commonwealth citizens over 18 who are resident in the UK or Gibraltar will be able to vote in the Referendum. British citizens who have lived abroad for less than 15 years will also be eligible to vote. The final result of the referendum (combining all 12 regional counts from across the UK and Gibraltar) will be announced in Manchester on 24 June 2016. Consequences of United Kingdom Exiting European Union - BREXIT A report suggests that withdrawal of UK from EU "has the potential to fundamentally change the EU and European integration. On the one hand, a withdrawal could tip the EU towards protectionism, worsen existing divisions, or unleash centrifugal forces leading to the EU‟s unraveling. Alternatively, the EU could free itself of its most awkward member, making the EU easier to lead and more effective”. Britain will have to secure bilateral Free Trade Agreements (FTA) with the existing trading partners of the EU. The United States has indicated that it is not keen on pursuing a separate FTA with Britain if it leaves the European Union. The leave campaigners argue that a reduction in red tape associated with EU regulations would create more jobs and that small to medium-sized companies who trade domestically would be the biggest beneficiaries. Those arguing to remain in the EU, claim that millions of jobs would be lost.

In February 2016, half the companies on the FTSE 100 Index, “including Shell, BAE Systems, BT and Rio Tinto" as well as supermarket chains Asda and Marks and Spencer, officially supported staying in the EU. The possibility that the UK's constituent countries (England, Scotland, Wales and Northern Ireland) could vote to remain within the EU, but find themselves withdrawn from the EU has led to discussion about the risk to the unity of the United Kingdom. UK universities rely on the EU for around 16% of their total research funding, and are Oportionately successful at winning EU-awarded research grants. This has raised questions about how such funding would be affected by a British exit. The supply of workforce will get adversely affected as the movement of migrant labour from the other European nations will get restricted due to control on free movement within Euro zone. Those who propose that UK must remain a part of EU claim that taxes from immigrants boost public funding, while the leave campaigners believe that reduced immigration would ease pressure on public services such as schools and hospitals, as well as giving British workers more jobs and higher wages. EU exit is considered to be the 'biggest domestic risk' to the UK economy. In the week following conclusion of the negotiations on the referendum, the pound fell to a seven-year low against the dollar. In June 2015, the credit rating agency, Standard & Poor‟s, altered its outlook for the UK economy from 'neutral' to 'negative', saying that the referendum "represents a risk to growth prospects" for the country's economy. Implications of BREXIT on India It is believed that BREXIT, if it happens, may have positive implications for India. Existing from EU will compel UK to develop closer bilateral economic ties and Free Trade Agreements with emerging economies of Asia, like India and China. United Kingdom is believed to be relatively more flexible and commercially open when compared with the highly regulated EU. Thus, bilateral trade will have greater scope and lesser encumbrances. Conclusion The opinion polls held in June 2015, showed that those in favor of Britain remaining in the EU were 43%, versus those opposed to it were 36%. Analysis of polling suggests that young voters tend to support remaining in the EU, whereas those older tend to support leaving. Also, big businesses are broadly behind remaining in the EU, though the situation among smaller companies is less clearly defined. Finally, to my mind, it may be fair to predict that the referendum will go in the favor of United Kingdom remaining as a part of the European Union

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

5) Controversy about the AgustaWestland AW101 Helicopters Deal

Introduction Finmeccanica and GKN are Italy and United Kingdom based companies respectively that merged their respective helicopter subsidiaries, Agusta and Westland Helicopters, in March 1999. Subsequently, in October 2004, GKN got the approval of British government to sell its share of AgustaWestland to Finmeccanica for £1.06 billion. In February 2010, India signed a contract to purchase twelve AgustaWestland AW101 helicopters for the Communication Squadron of Indian Air force, to carry the President, PM and other VVIPs. On 12 February 2013, the Italian authorities arrested Giuseppe Orsi, the CEO of Finmeccanica, which is the parent company of AgustaWestland for using unfair means and giving bribe to procure the contacts. Consequently, Indian Defense Minister, AK Antony ordered a probe the same day, by the Central Bureau of Investigation (CBI) to investigate the case. CBI registered a Preliminary Enquiry (PE) against 11 persons, including the former Chief of the Indian Air Force, Air Marshal SP Tyagi on 25 February 2013. The preliminary enquiry of the CBI found adequate evidence regarding the accused and registered an FIR on 13 March 2013.

The FIR named 13 persons which included, Air Chief Marshal SP Taygi, his three brothers, brother of former Union Minister Santosh Bagrodia and Chairman and Managing Director of IDS InfoTech, Pratap Aggarwal. Four companies that were named in the FIR included, Finmeccanica, AgustaWestland and Chandigarh-based IDS InfoTech and Aero matrix. It emerged in the preliminary enquiry that IDS InfoTech was used for routing kickbacks to India. The media refers to this scandal as the Chopper scam or Chopper gate. Involvement of UPA in the Scam? It all started with a note dating back to 15 March 2008, which was presented in the Italian court, which indicated that “Congress Party President Sonia Gandhi is the driving force behind the VIP chopper purchase”. The note further asked middleman Peter Hulett to target key advisors to Sonia Gandhi and lists the names of Prime Minister Manmohan Singh, Ahmed Patel (political secretary to Congress President, Sonia Gandhi), Pranab Mukherjee, M. Veerappa Moily, Oscar Fernandez, M. K. Narayanan and Vinay Singh. The note also contains the bribes to be paid out (in code words) as, "AF" €6 Million, "BUR" €8.4 Million, "Pol" €6 Million and "AP" €3 Million. Follow-up Actions by UPA Government On 27 February 2013, UPA Government ordered a 30 member Joint Parliamentary Committee (JPC) to investigate the matter. In January 2014, the government cancelled the Rs 3,600 crore helicopter deal with AgustaWestland. The contact was cancelled on grounds of “breach of the Pre-contract Integrity Pact and the agreement by AWIL (AgustaWestland International Ltd)" and AWIL was black-listed. After the cancellation of the contract, India encased Rs 250 core made by AgustaWestland as bank guarantee in the Indian banks in January 2014, and requested the Italian government to retrieve the bank guarantee amount made by the firm in Italian banks which was Rs 2364 crores. Finally, India was able to recover the entire amount paid to AgustaWestland, which was about 45% of the total contract value of Rs 3600 core. Judgment by the Italian Court – October 2014 The Italian court, after due investigations, passed its judgment on the case in October 2014. The court acquitted the ex-IAF chief S.P. Tyagi of all corruption charges, as also, acquitted the former Finmeccanica CEO Giuseppe Orsi and former AgustaWestland head Bruno Spagnolini of “charges of international corruption” . However, the court convicted and sentenced both of them to two years in prison on the lesser charge of “false invoicing” in the case. AgustaWestland agreed to pay the fine, but reiterated that it knew nothing about the alleged bribery allegations. Reasons for the Latest Furore about the Case On 07 April 2016 an Italian Court of Appeals, which is like our High Court, overturned the lower court‟s judgment passed in October 2014 and convicted former Finmeccanica chief 17

executive Giuseppe Orsi for corruption and falsifying invoices and sentenced him to four and a half years in prison. The former head of AgustaWestland, Bruno Spagnolini, was also sentenced to four years in jail. The court also ordered the two executives to pay 7.5 million Euros, a sum related to the amounts deemed to have been allegedly paid in bribes. The Italian Court of Appeals has observed that there are “unmistakable indications regarding corruption of an Indian officer”, pointing at Air Chief Marshal S P Tyagi, the then Chief of Air Staff, who allegedly reduced the ceiling height of Agusta Westland choppers. I may be noted that prior to Tyagi becoming the Air Force chief, the IAF had opposed purchasing AgustaWestland's AW101 as they were not capable of flying in high-altitude areas like Siachen and Tiger Hill. The Congress party and the former Defense Minister AK Antony argues that, the UPA government had cancelled the deal, ordered a CBI inquiry, not a penny was paid, not one chopper was bought, then where is the question of any wrong doing. However, BJP believes that it has sufficient grounds to nail the UPA and bring to the public domain, the role played by Sonia Gandhi and others in the bribery case. Conclusion Though the Italian court names Dr Manmohan Singh and Mrs. Sonia Gandhi, it does not give any proof of their direct involvement. The major weapon of attack with the BJP against the Congress is the letter written by Christian Michel, the main middleman, to the head of the AgustaWestland, which describes the Congress President as one the main proponents of the deal. However, the evidence provided by the judgment of the Italian Court of Appeals, will strengthen the ongoing case against the 13 accused in the Indian court

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

6) WORLD - IN THE SHADOW OF NUCLEAR TERRORISM

Back Ground The looming disaster of a nuclear attack by terrorists on thickly populated cities and vital installations of the world is more a reality than a fiction. The seriousness is clearly visible from the information collated by the International Atomic Energy Agency (IAEA), which maintains an Incident and Trafficking Data base (ITDB) of nuclear and radioactive materials. As of December 31, 2014, the ITDB reported a total 2,734 confirmed incidents of unauthorized /illegal possession or theft of sensitive nuclear material and radioactive sources across the world. For India, the threat of nuclear terrorism s frighteningly real. We have a vast nuclear complex encompassing a full spectrum of resources to make nuclear weapons (India is in possession of around 120 nukes as per declared press release), 22 civil reactors that generate power including some that produce weapon grade nuclear materials. Naturally it has large amount of radioactive nuclear waste(spent fuel) stored in special containment areas and over 7000 institutions that use radiological devices, particularly hospitals ,for both diagnosis(X-Rays) and treatment(Cancer).While the military complexes are safely guarded many of the civil nuclear facilities including all hospitals are pathetically vulnerable to terrorist attacks and thefts. New Deadly Terror

The expected use of nuclear materials by terrorist organizations is three-fold:-  Detonate a Nuclear Bomb - either a weapon stolen from a state's nuclear stock-pile or an improvised nuclear device made from weapons-grade nuclear material that they smuggled out.  Blast or sabotage a major nuclear facility and cause it to release large amounts of harmful radiation to annihilate masses.  Detonate a 'Dirty Bomb' or radiological dispersal device in a city centre(which is the easiest option for terrorists). Can Terrorists Acquire Nuclear Material Easily? In India it is extremely difficult to either steal a nuclear weapon or smuggle weapon-grade nuclear materials from the Department of Atomic Energy (DAE) complexes and use it to build a dirty bomb, since all these complexes are safely guarded by the Army/Para-military Forces. India has an efficient command-and-control system for nuclear warfare that goes right up to the Prime Minister (who has the code to authorize nuclear attack) and the National Security Council, which controls all movements of nuclear weapons .The real locations and accessibility to the weapons are tightly guarded classified secrecies and are impenetrable to the terrorist organizations so far. To ensure safety nuclear weapons and trigger mechanisms are kept separately in different undisclosed locations. The two key agencies that control this operations are Bhabha Atomic Research Centre (BARC) which makes the nuclear core and the Defense Research and Development organization (DRDO) ,which makes the explosives required for the detonation of bombs as well as the missiles to deliver them. Though these facilities are protected by the 'Defense in Depth" system, the recent dare-devil terrorist attacks on the Pathankot Air Base, pose a challenge to the fool-proof safety arrangements made by Army. Though stealing a nuclear bomb is almost impossible, the threat that the terrorists might actually manage to make a 'Dirt Bomb" by collecting weapon grade nuclear material or deadly radioactive substances used or stored in India's nuclear complexes is worth examining. As it has been seen in previous incidents of terrorism, the danger comes from an "insider threat" - the large number of personnel employed in nuclear institutions with authorized access to facilities, materials and sensitive information. Nuclear Security Summit -01 April 2016. The fourth Nuclear Summit assembled in Washington DC was attended by 50 world leaders at Walter E. Washington Convention Center, discussed this most dangerous threat to mankind away from the glare of multi-media. Under the stewardship of US President Barack Obama, the world leaders played a war-game scenario of a nuclear dirty bomb attack and the reactions expected by world countries. The presentation showed the scenes of terrorists flying a crop duster, spraying deadly radioactive material extracted from radiological equipment found in medical institutions over a densely populated area, causing mass genocide and horrific sickness among citizens. The film ended with the grim message of how the world will have to combat terrorist‟s intent on causing mass causalities on mankind with utter disregard to humanity. Our PM Narendra Modi who was among the first to offer comment after the presentation, told the elite audience - "The only way to reduce the scope of terrorists using such weapons of mass

destructions is greater international cooperation and action including information sharing, intelligence exchange and developing human resources on a mass scale to tackle the threat".

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

7) The Political Quagmire in Uttarakhand

Introduction Uttarakhand was carved out of Uttar Pradesh in the year 2000 after a long grass-roots level struggle for statehood to meet the unique administrative needs of the Himalayan region. The State has 13 Districts, which, because of its composite character demand responsive politics and genuine intent for good governance to bind it together in its formative years. However, during the recent years, both BJP and Congress have had their stints of power in Uttarakhand, but unfortunately, there has always been a strong intra-party rivalry, accruing out of a nascent and still maturing State politics. Crisis as it Unfolded Up till 26 March 2016, before Presidents rule was imposed, Congress government led by Chief Minister Harish Rawat was in power in Uttarakhand. Before the crisis unfolded, the Congress had 36 MLAs in the Assembly. The party also had the support of six members of the Progressive Democratic Front, while Opposition BJP had 28 MLAs in the 71 seat Uttarakhand Assembly. Uttarakhand political crisis came to the fore when nine Congress MLAs, along with 27 BJP legislators, met Governor K. K. Paul at the Raj Bhavan in Dehradun, and sought the dismissal of the Congress government led by Chief Minister Harish Rawat on 18 March 2016.

However, Mr. Rawat met the Governor on March 19 and maintained that he enjoyed a majority in the Assembly. Consequently, the Uttarakhand Assembly Speaker Govind Singh Kunjwal, after taking concurrence of the CM, disqualified the nine rebel MLAs, namely, Vijay Bahuguna, Kunwar Pranav Singh Champion, Harak Singh Rawat, Shaela Rani Rawat, Pradip Batra, Shailendra Mohan Singhal, Amrita Rawat, Subodh Uniyal and Umesh Sharma for “indulging in anti-party activities”. Amidst the claims by BJP, that after including the nine rebel MLAs, it will have a majority in the State; Governor Krishna Kant Paul asked Rawat to prove his majority on the floor of the assembly by March 28. Meanwhile, Prime Minister Narendra Modi called for an emergency Party meeting after the Governor of UK, Mr KK Paul sent a report to the Centre on the crisis in the State, saying the political situation was "very volatile" and said that prohibitory orders have been issued across the State. One day prior to the date given by the Governor to prove majority on the floor of the assembly, i.e. March 27, the Centre brought Uttarakhand under President‟s rule citing a constitutional breakdown in the wake of a rebellion in the ruling Congress. President Pranab Mukherjee signed the proclamation under Article 356 of the Constitution dismissing the Congress government headed by Harish Rawat and placing the Assembly under suspended animation on the recommendation of the Union Cabinet. Congress called it the „murder of democracy‟ and a „black‟ day. Defeating of Appropriation Bill Led to Imposition of President’s Rule The earnings of the government through taxations, etc goes into an account called the Consolidated Fund. Once the Union Budget/ the State Budget is passed, the Lok Sabha/ the State Assembly‟s are required to pass an Appropriation Bill that allows the drawing of the funds from the Consolidated Fund based on the allocations made in the Budget. Just to explain the process a bit further, a Finance Bill is introduced after the Budget has been passed. The passing of this Bill allows the government to impose various taxes to collect the revenue that goes into the Consolidated Fund mentioned above. The contention between the Congress and BJP is with respect to whether the Appropriation Bill was passed by the Uttarakhand Assembly or not. BJP argues that the State was reduced to a minority on March 18 when 35 MLAs in the Assembly voted against the Appropriation Bill and 32 in favor. These 35 MLAs comprised of 27 from the BJP and the rest were rebel Congress legislators. Thus, the State was left without any approved financial expenditure with effect from 1st April 2016. The Finance Minister Mr Arun Jaitely said that, “It is now incumbent upon the central government to ensure that steps are taken under Article 357 to authorize expenditure of the State with effect from 1st April 2016” as the state cannot spend in next fiscal without the legislature approving the Appropriation Bill”.

He further said that, “Article 356 of the Constitution, imposing President‟s Rule in a state, can be invoked only if the President is satisfied that there are grounds for believing that the governance of the state cannot be carried on in accordance with the Constitution”. Finally, he added that, “if the Appropriation Bill was defeated, the continuation of the Government subsequent to 18th March 2016 is unconstitutional”. However, the former Chief Minister, Harish Rawat claims that the Appropriation Bill was constitutionally passed on March 18, as the Congress MLAs who had defected were not included and the strength of the votes was reduced to 71 – 09 = 62.

High Court Order Quashing President’s Rule A day after the imposition of President‟s Rule in Uttarakhand, former Chief Minister Harish Rawat moved the Uttarakhand High Court in Nainital on 28 March, arguing that invoking Article 356 was in “blatant violation of the Constitution.” The Uttarakhand HC bench headed by Chief Justice KM Joseph came down heavily on the Bharatiya Janata Party led government at the Centre for its March 27 move to dismiss Rawat under the much contested Article 356 that empowers the union cabinet to impose President's Rule in a state. He further said that the imposition of President's rule was contrary to the law laid down by the Supreme Court and added that the article should only be used as a last resort. The High Court ordered that "The proclamation of March 27 stands quashed and restored “status quo ante" order, meaning the previously existing state of affairs was to be restored. Thus, the Congress led Harish Rawat government was reinstated through the High Court order on 22 April. The High Court also ordered the CM to prove his majority on the floor of the Assembly on 29 April 2016. Appeal by Centre to the Apex against the HC Order The Centre filled a petition in the Supreme Court, stating that, “The impugned judgement resulted in serious miscarriage of justice; it deserves to be set aside.” The plea further said that gross injustice and irreparable loss is likely to be caused to the petitioner if the impugned judgment of HC is not stayed. An apex court bench headed by Justice Dipak Misra reviewed the order of the High Court and stayed its verdict till April 27. Thus, President‟s Rule was re-imposed in the interim period. The Supreme Court during its next hearing on April 27 would also decide whether a floor test should be held on April 29 in accordance with the High Court order. After Effects of SC Ruling The former CM, Mr Rawat has called for a trust vote on 29 April 2016. In case SC permits the floor test, the amount of votes that he needs to prove his majority will depend upon the total number of legislators or overall strength in the assembly. In case the nine Congress dissidents are not removed from the house, he will need 36 votes. The BJP in the State is very confident that Congress will be defeated, and that it will then have the right to stake claim to form the next government. Conclusion 24

Dr. B.R. Ambedkar believed that Article 356 of the Constitution, which provides for imposition of President‟s rule in the States and dissolution of State Assemblies, would, in reality, be only a „dead letter‟ or will happen in very rare and extreme cases. We saw a similar invocation of Article 356 in Arunachal Pradesh and imposition of President‟s rule in January this year. The emerging trend of invoking Article 356 to dissolve the state assembly‟s (especially, Congress led governments) is highly detrimental to the federal structure of our democracy and the independence to govern by the States. The Congress leaders are leaving this sinking ship, especially, with the push provided by the BJP and their open resolve to declare the country “Congress Mukt”. However, what our leaders do not understand is that their effort is ushering in petty politics thatstoops to the lowest level, which will eventually consume our democracy that we take so muchof pride in. HEMANT RR YADAV @ 9702341616 SCHOOL OF SSB TRAINING

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

8) India and Mauritius Amend Double Taxation Avoidance Agreement (DTAA) to Prevent Tax Evasion

Introduction India and Mauritius had signed a bilateral treaty 32 years ago called the Double Taxation Avoidance Agreement (DTAA), which allowed for routing of Indian money, back into Indian market through Mauritius. In the process, paying negligible tax in the source country, i.e. Mauritius, being a tax haven. After years of protracted negotiations, India and Mauritius agreed to amend the old tax treaty in Port Louis on 11 May 2016. The amendments to the treaty will enable India to levy capital gains tax on investments routed through Mauritius from 01 April 2017 at the rate of 50% of the domestic rates of taxation and at full rate of taxation after 31 March 2019. Exploitation of Double Taxation Avoidance Agreement (DTAA) The exploitation of the DTAA was being done through a process called “round tripping”. Primarily it means investment by a resident of one country into another country, and then bringing the original investment again back to his original country to avoid tax. The method that is being followed for “round tripping” is that, investors show investments made from India into „Shell Companies‟ (which exist only on papers) in Mauritius, with whom India has a bilateral tax avoidance treaty.

Now, this money is treated as capital of a registered corporate entity (Shell Company). The investor once again invests this money back in an Indian company as foreign direct investment (FDI) by buying stakes or invests it in Indian equity markets. Since, the investor would have paid the tax in Mauritius; he would cite the DTAA, to be exempted from taxation in India again. However, Mauritius being a tax haven, the taxation there is negligible. Thus, through this entire process of “round tripping” or “treaty shopping”, the investors simply window-dressed their own money as foreign capital and then brought back their original money that they had taken out from India for investment into Mauritius. Repercussions of Exploitation of DTAA Mauritius has been the largest FDI source for India, accounting for 34% of total FDI into India between 2000 and 2015. Government has highlighted that the revenue department has unearthed tax evasion of nearly Rs 50,000 crore in indirect taxes and undisclosed income of Rs 21,000 core. The other major tax haven is Singapore, which is also being used for tax evasion. The statistics reveal that 50% of the total inflow of FDI into India over the previous 15 years has been from these two countries combined. Thus, it implies that what we were calling foreign investments coming into India was actually our own money that was been routed back through “round tripping”. Highlights of the Amendment of Double Taxation Avoidance Agreement (DTAA) The changed DTAA will make it mandatory to pay capital gains tax on sale of shares in India by companies registered in Mauritius. As per the earlier tax treaty, only Mauritius had the right to tax capital gains by companies investing in India from that country, which was actually negligible. The new rules will not apply to investments made before April 1, 2017, meaning share sale of investments made before this date will be exempt from capital gains tax. The benefit of 50% reduction in tax rate during the transition period from April 1, 2017 to March 31, 2019 shall be subject to a limitation of benefit (LOB) Article. A Mauritius registered company (including a shell or conduit company) will not be entitled to lower tax rate, if it doesn‟t spend at least Rs 27 lakh in Mauritius in the previous 12 months. This is called „purpose and bonafide business test‟. Consequences of the New Regulations As a short term effect, the foreign investor inflows into India is likely to get restricted, particularly from companies whose investment strategies are guided by minimizing taxes. The same could pull down the markets initially.

Foreign portfolio investors (FPIs) who had invested in listed securities, that have existed since the previous 12 months will also get hit as they will have to pay short-term capital gains tax in India. The amendment to the India Mauritius tax treaty also automatically applies to the India- Singapore tax agreement. The reason for the same is that article 6 of the treaty with Singapore states that “articles 1, 2, 3 and 5 of this Protocol shall remain in force so long as any Convention or Agreement for the Avoidance of Double Taxation between the Government of the Republic of India and the Government of Mauritius provides that any gains from the alienation of shares in any company which is a resident of a Contracting State shall be taxable only in the Contracting State in which the alienator is a resident”. The finance ministry is expected to come out with a clarification on the impact on the India- Singapore treaty. Conclusion It is heartening to see that the government is taking such steps to plug in the loopholes through which black money finds its way back into India as white.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

9) Panama Papers Leak - the Mother of all Scams Introduction A German newspaper Sueddeutsche Zeixtung, obtained through an unknown source, more than eleven million classified documents belonging to a Panama based Law Firm, Mossack Fonseca. The German newspaper then shared these documents with the International Consortium of Investigative Journalists (ICIJ), who after carrying out due analysis of these documents, have put them up on the public domain. The analysis was carried out by 107 media organizations of the ICIJ in 76 different countries to ascertain the facts before the disclosure. The documents shed light on how Mossack Fonseca offered financial services designed to help business clients launder money, dodge sanctions and avoid tax. The documents show 12 current or former heads of state and at least 60 people linked to current or former world leaders in the data. The prominent Indian clients include, Amitabh Bachchan, Aishwarya Rai, DLF, Founder KP Singh, Indiabulls Promoter Sameer Gehlaut, etc. Background of Mossack Fonseca The law firm, Mossack Fonseca was formed in 1977 by Jurgen Mossack and Ramon Fonseca, which specializes in commercial law, trust services, investor advisory and international structures. Its website states that, “it can help reduce costs, incorporate and manage private interest foundations, conduct businesses anywhere in the world and carry out transactions in any chosen currency”. Its website further boasts that its offices are supported by “secure, state-of-the-art technology that is upgraded continually”. Mossack was a German immigrant, whose father moved to Panama, after serving in Hitler‟s Waffen-SS during WW-II. The elder Mossack offered to work as a spy for the US on Nazis. Jurgen Mossack graduated from the Santa Maria La Antigua University School of Law in Panama. Ramon Fonseca is an award winning novelist, who has also worked as an advisor to Panama‟s President. Mossack Fonseca claims that in its 40 years of operation it has always complied with international protocols to ensure the companies it incorporates are not used for tax evasion, money-laundering, terrorist finance or other illicit purposes. It has now been disclosed through the leaked documents that Mossack Fonseca has dozens of offices all over the world. It has founded, sold and managed thousands of companies, called the „Shell‟ companies.

It is believed that anyone can buy an anonymous company (Shell Company) through Mossack Fonseca for as little as $1,000 (nearly Rs 66,290). For an extra fee, it also provides a sham (fake) director and if the clients' desire it conceals the company's true shareholder. In short, Mossack Fonseca is into the business of withholding the true identity of the offshore company's owner and has managed in excess of 300,000 companies over the years, most of which are registered in the UK or are British-administered tax havens. The leaks reveal that more than 500 Indians used this law firm in Panama to set up offshore entities in tax havens across the world, e.g. Amitabh Bachchan is a Director in at least four offshore shipping companies in British Virgin Islands and the Bahamas, Aishwarya Rai and her family are Directors of a firm with initial authorized capital of $50,000, etc. What is a Shell Companies? A shell company has the outward appearance of being a legitimate business. Its management is made up of lawyers, accountants and other administrative staffs, who does little more than sign documents and allow their names to appear on the letterhead. Shell companies can also be called a "letterbox" companies, as they consist of little more than an address to post documents to. Such Shell companies are based out of Offshore Financial Centre, or what is often called a tax haven, which offers a great deal of banking secrecy and very low or non-existent taxes on financial transactions. There are many such countries or authorities around the world, from the British Virgin Islands, to Macao, the Bahamas and Panama. The conduct of financial services is done as per the law of the land; it is just the secrecy which makes them very attractive to the tax evaders from all across the world, especially if the regulators are weak or they turn a blind eye to the operation of these Shell companies. How Does a Shell Company Operate? In order to protect their clients, the Shell companies operate using bearer shares and bonds, rather than currency. The same is a very handy method to move vast amounts of money around the world and can easily deny ownership if caught by the authorities. The drug dealers, fraudsters or corrupt politicians who have amassed a lot of cash through illegal means, which they cannot disclose or hide and want to stash it away for a rainy day, without giving away their identity, look for such Shell companies. In order to clean this dirty money, they ship it to a dodgy firm in an Offshore Financial Centre, which helps them to convert it into bearer bonds, owned by a Shell company that no one knows about. The bearer bonds can then be used to purchase overseas property, pay the kids' school fees in fancy universities or fund family shopping trips to Paris, etc. Details Regarding Panama Papers Leak German newspaper Sueddeutsche Zeitung‟s reporter, Bastian Oberway was contacted by an unknown source via an encrypted chat and offered to pass on data from Mossack Fonseca “intended to make these crimes public”. The anonymous source asked for no monetary compensation and asked only for unspecified security measures as his live could be endangered after he shared the data. 30

Obermayer said that over the course of several months Sueddeutsche Zeitung received about 2.6 terabytes of data more than would fit on 600 DVDs. Sueddeutsche Zeitung thereafter passed on the information to the International Consortium of Investigative Journalists (ICIJ), a non-profit organization based in Washington, who after analysis put it on the public domain. ICIJ has said that the law firm‟s leaked internal files contain information on 214,488 offshore entities connected to people in more than 200 countries and territories. Indian Context to the Mossack Fonseca Leak As per the RBI norms, no Indian citizen could float an overseas entity before 2003. However, in 2004, a decision was taken to allow individuals to remit funds of up to $25,000 a year under the Liberalized Remittance Scheme (LRS). At present, this limit stands at $250,000 a year. While RBI had allowed individuals to buy shares under the LRS, it never allowed them to set up companies abroad. It was only in August 2013 that individuals were allowed to set up subsidiaries or invest in joint ventures under the Overseas Direct Investment Window. In most of the cases, which have been leaked by the Panama Papers, companies were set up long before the rule of 2013 was formulated, and the intention was quite obvious: „to park foreign exchange in a tax haven‟. The Mossack Fonseca data contains details of entities set up almost four decades ago from 1977 up to those registered just four months ago, that is, December 2015. The formation of the Special Investigating Team (SIT) was the very first decision taken by the Modi Government in May 2014 to unearth the black money stashed in foreign countries. The previous records reveal detailed correspondence between Indian tax authorities and those in British Virgin Islands, Seychelles, Panama or other tax havens seeking shareholder, bank account and even asset details of offshore companies set up by Mossack Fonseca for Indians. Unlike in India, the governments of these tax havens are not a repository of ownership details; the Indian investigating authorities had no choice but to depend on Mossack Fonseca for information. In July 2015, The Indian Express signed an agreement with ICIJ for being the Indian partner for The Panama Papers project. Since then, a team of 25 reporters, led by the newspaper‟s investigative team, joined 375 journalists in 76 countries for analyzing the truth behind the data. On hearing about the recent Panama papers expose‟, the Government of India has set up a multi agency team to investigate the matter on 04 April 2016. Finance Minister Arun Jaitley has promised strict action against any „unlawful‟ accounts. Furthermore, Supreme Court appointed Special Investigation Team to unearth black money has asked the Enforcement Directorate (ED) and allied investigating agencies to analyse the Panama documents, probe money laundering and black money angles and submit an initial report by 25 April 2016. Conclusion The Panama papers leak has created quite a furore across the world. Various heads of the states have reacted to the expose‟ by out rightly denying any involvement and have ordered high level inquiries, including, British PM David Cameron, Chinese President Xi Jinping, Pakistan PM Nawaaz Sharif, Ukrainian President Petro Poroshenko, etc. 31

Russia has said that there was a bigger design to malign the reputation of President Vladimir Putin, which they feel is the actual reasons for highlighting the scam at the first place. Dmitry Peskov, a Kremlim spokesperson said that “ICIJ was publishing a "series of fibs" that amounted to a media "attack" on Putin to discredit him and this country‟s leadership”. In another major development, thousands turned out to protest against Iceland‟s Prime Minister Sigmundur David Gunnlaugsson outside parliament in Reykjavik, a day after the release of the massive Panama Papers leak. Consequently, the PM has resigned. All Indians accused in the Panama papers leak have denied their involvement. Amitabh Bachchan has said that he has made all transactions as per the LRS mandate and his name may have been misused. The Panama Papers leak has been the biggest ever scam of all times. Nations across the world need to create a tax regime that dissuades tax evasion and also work in unison to prevent money laundering which is the gateway for proliferation of illegal activities, like drugs & human trafficking, weapons used by terrorists, dodging of sanctions by illegitimate entities, etc.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

10) Harnessing the Potential of Young Workforce: ‘Start-up India’ and ‘Skill India’ Introduction Prime Minister Narendra Modi formally launched the Start-up India Movement at Vigyan Bhawan, New Delhi on 16 January 2016. The prime motive of launching this movement is an Endeavour by the government to promote entrepreneurship in India by encouraging innovations and „out of the box‟ thinking, which would catapult the overall development of the country. The Prime Minister in his inaugural speech urged the budding entrepreneurs to look beyond the realms of just Information Technology. He unveiled a slew of incentives to boost start-up businesses, like, permitting a tax holiday, with no inspection by the departments for the next three years, offered capital gains tax exemption and announced that Rs 10,000 core corpuses has been earmarked to fund this movement. It is envisaged that the precursor to Start-up Movement should be a creation of a pool of skilled workforce. Considering that 54% of India‟s population is less than 25 years of age, rising aspirations of the youth seeking better jobs, and growing expectations of employers for an efficient, well trained workforce, the government recognized the need for skill development in India. The Government of India notified the formation of Department of Skill Development and Entrepreneurship on 31 July, 2014, that became a full-fledged Ministry of Skill Development and Entrepreneurship (MSDE) on 09 Nov, 2014. Salient Features of Start-up Movement In order to facilitate the implementation of the proposed „action plan‟ of the government, a start-up India hub will be created as a single point of contact for the entire start-up ecosystem to enable knowledge exchange and access to funding. The creation of a strong ecosystem will ensure sustainable development and generation of large scale employment opportunities, which would further generate the need for skill development in the desired skill sets. As direct fallout of this movement, large scale skill development of youth will take place. Consequently, it would empower the huge workforce at our disposal. Self-certification will be allowed in respect of nine labor and environment laws, thus reducing the gestation period for the launch of an enterprise, besides, curtailing red tapism and avoidable harassment to entrepreneurs. A much liberalized patent regime is being brought in, so as to help start-ups to register their patented product for a fee which will be slashed by 80% of the fee being charged at present for patent.

In this regard, government is considering to provide legal support for fast-tracking patent examination and to promote awareness regarding adoption of Intellectual Property Rights (IPRs) in terms of patents, designs, trademarks, etc, to help start-ups protect and commercialize their products under IPRs. The relaxed norms like tax exemptions, reducing regulatory burden, speedy availability of funds, etc, will provide the new start-ups with a level playing field and equal opportunities vis- a-vis experienced entrepreneurs and established companies. In order to ensure adequate funding for the campaign, government has initially kept a corpus of Rs 2,500 crore and plans to hold a total corpus of Rs 10,000 core over the next four years. Funds will be managed by private professionals drawn from the industry and LIC will be a co- investor in the fund. Further, in order to boost financing, the entrepreneurs can sell their private assets to fund their enterprises. They will be exempted 20% tax on the capital gains made from selling such an asset, provided the money is invested in their own start-up. An exit option under the Bankruptcy Act has been left as a safety value for the entrepreneurs, under which anyone can close down within 90 days of the launch of the enterprise. In order to provide quick redressed to issues and swift dissemination of information, a mobile app and portal will be rolled out for interacting with the government and regulatory bodies. Lastly, a Credit Guarantee Trust Company is envisaged to be formed with a budgetary allocation of Rs 500 core per year over the next four years. The credit guarantee fund would help flow of venture debt from banking system and serve as a guarantor against risks for start- ups. Salient Features of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) Scheme The Skill India mission was formally launched by PM Modi on the occasion of first ever World Youth Skills Day on 15 July 2015 at the Vigyan Bhawan, New Delhi. The tagline for Skill India is: 'Kaushal Bharat, Kushal Bharat'. The Skill India mission is expected to be the backbone for important government initiatives like Digital India, Smart Cities, Make in India and now, Start-up India campaign. The National Policy for Skill Development and Entrepreneurship, 2015 is the country's first integrated national policy for developing skills and promoting entrepreneurship on a large scale. The Government, under the Skill India mission has set a target of training over 40 crore people in various skills by 2022. The skills of young people who lack formal certification, such as workers in India‟s vast unorganized sector, will be recognized, through an initiative known as „Recognition of Prior Learning‟ (RPL). A total of 10 lakh youth will be assessed and certified for the skills that they already possess. The government, under the Skill Loan Scheme will be giving loans ranging from Rs 5,000-1.5 lakhs, initially to 34 lakh youth of India seeking to attend skill development programmes over the next five years. Conclusion

The Skill India mission also includes entrepreneurship, and it is expected to play a pivotal role in further development of the booming ecosystem for first generation entrepreneurs in the country. Towards this end, action is on at various levels, including the launch of schemes like the Atal Innovation Mission (AIM) for promotion of research and development, including 500 tinkering labs, 35 public-private sector incubators, 31 innovation centers at national institutes, 7 new research parks, 5 new bio-clusters are being planned. The initiatives like „Skill India‟ and „Start-up India‟ will go a long way to harness the indisputable potential of the young workforce of our country in the most appropriate manner and will not only make India the „human resource capital‟ of the world, but serve as a game changer to make our economy from being import driven to the world's fastest growing export driven economy.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

11) Digital India Initiative

Introduction Digital India Project has been very close to the heart of the Prime Minister and he is himself the Chairman of Monitoring Committee on Digital India. The aim as envisaged by the PM is to prepare India for becoming a knowledge economy and for bringing good governance to citizens through synchronized and co-ordinate engagement of the entire Government. Digital India programme aims to provide Broadband Highways, Universal Access to Mobile Connectivity, Public Internet Access Programme, E-Governance: Reforming Government through Technology, eKranti – Electronic Delivery of Services, Information for All, Electronics Manufacturing: Target Net Zero Imports, IT for Jobs and Early Harvest Programmes. All the existing and ongoing e-Governance initiatives have been revamped to align them with the principles of Digital India.

Projects being Envisaged under the Digital India Scheme

Digital Locker System aims to minimize the usage of physical documents and enable sharing of e-documents across agencies. The sharing of the e-documents will be done through registered repositories thereby ensuring the authenticity of the documents online. eSign framework would allow citizens to digitally sign a document online using Aadhaar authentication. MyGov.in has been implemented as a platform for citizen engagement in governance, through a “Discuss”, “Do” and “Disseminate” approach. The mobile App for MyGov would bring these features to users on a mobile phone. Swachh Bharat Mission (SBM) Mobile app would be used by people and Government organizations for achieving the goals of Swachh Bharat Mission. Online Registration System (ORS) under the eHospital application has been introduced. This application provides important services such as online registration, payment of fees and appointment, online diagnostic reports, enquiring availability of blood online etc. National Scholarships Portal is a one stop solution for end to end scholarship process right from submission of student application, verification, sanction and disbursal to end beneficiary for all the scholarships provided by the Government of India. Digitize India Platform (DIP) for large scale digitization of records in the country that would facilitate efficient delivery of services to the citizens. Bharat Net, a high speed digital highway to connect all 2.5 lakh Gram Panchayats of country. This would be the world‟s largest rural broadband connectivity project using optical fibre. Next Generation Network (NGN), to replace 30 year old exchanges, which is an IP based technology to manage all types of services like voice, data, multimedia/ video and other types of packet switched communication services. BSNL has undertaken large scale deployment of Wi-Fi hotspots throughout the country. The user can latch on the BSNL Wi-Fi network through their mobile devices. Implications of Digital India Broadband connectivity in all Panchayats would be a stepping stone for e- governance. The fund allocation, greater transparency and accountability in expenditure, promote decision making and monitoring of social / projects will become easier. Wi-fi in schools and universities and Public Wi-Fi hotspots will enable knowledge gathering, improve collation and dissemination of information and will pave the way for smart class rooms. The programme will generate huge number of IT, Telecom and Electronics jobs, both directly and indirectly. Improvement in the governance by the usage of IT in delivery of services related to various domains such as health, education, agriculture, banking, etc. Conclusion In order to deliver citizen services electronically and improve the way citizens and authorities transact with each other, it is imperative to have ubiquitous connectivity. It is considered that connectivity will be one of the major criterions for enabling and providing technologies to facilitate delivery of services to citizens under this highly ambitious and farsighted Campaign. 37

Therefore, the government will need to priorities establishment of fool proof means to secure swift connectivity by way of „broadband highways‟, which would serve as one of the main pillars of Digital India.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

12) 'Make in India' vs 'Made in China' Campaign Introduction On 25 September, at the eve of his departure for USA, PM Narendra Modi unveiled the Brochure and the Logo for the „Make in India‟ campaign, in the capital, at the Vigyaan Bhawan. The campaign aims to turn India into a global manufacturing centre. About 3,000 top global companies are being targeted in this ambitious campaign. This initiative is directed towards facilitating, setting up and running businesses with greater ease and to draw foreign investors to India with an overall aim of providing an impetus to the beleaguered manufacturing sector and generation of employment opportunities in India. Sectors Covered Under the Programme The programme lays emphasis on promoting 25 sectors. The programme would facilitate skill development and hence, quality job creation. The sectors covered under the programme include: automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism and hospitality, wellness, railways, auto components, design manufacturing, renewable energy, mining, bio-technology, pharmaceuticals and electronics among others. Highlights of Vision for Manufacturing Sector  An increase in manufacturing sector growth to 12-14% per annum over the medium term.  An increase in the share of manufacturing in the country‟s Gross Domestic Product from 16% to 25% by 2022. While, manufacturing sector contributes is in the range of 25% to 30% in countries like China, Thailand and Malaysia.  To create 100 million additional jobs by 2022 in manufacturing sector. PM Modi recommends handing over Industrial Training Institutes (ITIs) to the Industry to enhance trade specific training and generation of quality employment.  Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth. National Skills Development Centre will play a decisive role in identification and imparting training of skill sets required.  Providing heightened domestic value addition and technological depth in manufacturing to ensure high end products that are competitive in the world market are manufactured and also are affordable. .  Inspire self reliance and competiveness for sustainable growth, especially, of the national manufacturing units. Plans for Making Business Easier  New de-licensing and deregulation measures: Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis through eBiz portal.  Validity of Industrial license extended to three years.

 Empowering States by decentralising authority to introduce self-certification and third party certification to avoid delays and red tapism in the name of scrutiny.  Major components of Defense products‟ list excluded from industrial licensing to encourage and speed up indigenization of weapon/equipment components.  In order to encourage private parties to invest and assist in early procurement in dual use items having military as well as civilian applications, the items have been deregulated.  Services of all Central Govt. Departments & Ministries will be integrated with the E-Biz – a single window IT platform for services by 31 Dec. 2014. This would provide regular updates and prompt information about the policies and procedures.  Process of obtaining environmental clearances made online to save time and curb politically motivated tendency to create an issue out of it, as is usually found to be done.  Advisories sent to all Departments/ State Governments to simplify and rationalize regulatory environment. Presently, the entrepreneurs are harassed to the limit of exiting their planned venture.  All returns should be filed on-line through a unified form, to prevent subsequent manipulation and malpractices.  A check-list of required compliances would be placed on Ministry‟s/Department‟s web portal for the ease of preparing the requisite paperwork.  All registers required to be maintained by the business should be replaced with a single electronic register to cut down excessive documentation to be maintained by the entrepreneur.  No inspection to be undertaken without the approval of the Head of the Department to avoid harassment and arm twisting by government departments.  States given the liberty, for all non-risk, non-hazardous businesses, a system of self- certification could be introduced. Imperatives for Effective Implementation of Programme  Effectively implementing the idea of laying the „Red Carpet „ instead of the „Red Tapes‟ as was pronounced by PM Modi.  Deregulation of processes and decentralization of authority to speed up results on the ground.  It is unlikely that foreign companies will share the technology, otherwise they will lose monopoly and hence India must cater to huge investments in R&D to upgrade own manufacturing sector, so as to stand in competitive comparison to the foreign products being manufactured in India.  The workforce required to be employed in the industries identified in the programme must be trained concurrently to facilitate the success of the programme.  Stricter regulations for import of mass consumption commodities like food, consumer goods, electrical products and light engineering goods on quality clearances to compel such brands to manufacture in India for consumption in India.

 Manufacturing clusters need to be created with proper habitat for the workforce and all basic amenities must be catered for in these ecosystems, like, labor markets, livable spaces, and access to markets, etc.  Retrospect taxation, or „Tax Terrorism‟ as it is being called by foreign companies, e.g. in the case of Vodafone and some other service providers creates a sense of mistrust in the mind of investors. The taxation policies must be clear, concise, binding and standardized.  Invariably, entrepreneurs use the tax benefit region for packaging and shipping of their goods and then wait for the next region to be granted the benefit for planning their investment. Hence, the methodology adopted for such concessions must encourage more and more entrepreneurs to set up businesses.  Goods and Services Tax (GST) must be implemented earliest to create a better investment climate. China’s Made in China Campaign China‟s „Made in China‟ campaign coincided with India‟s global launch of „Make in India‟ campaign. China‟s intention appears to be, that it wants to send a message to the world that China will continue to hold technological edge over India in the manufacturing sector. The highpoints of China‟s campaign are as follows:  China will encourage high-tech imports for research and development (R&D) to upgrade its manufacturing sector.  China will use tax breaks to encourage enterprises to upgrade their equipment and increase R&D efforts to improve the manufacturing industry.  Companies that bought new R&D equipment and facilities after January 1 or possess minor fixed assets will have taxes reduced based on value.  Imported high-tech equipment will also enjoy tax deductions in aviation, bio-medicine production, manufacturing of railway and ships, electronics production including computer and telecommunications, instrument production and those used in making IT products and software

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAININ

13) Emerging Trends across National Political Canvas

Introduction The election results that were announced yesterday in four major states of the country, namely, West Bengal, Tamil Nadu, Kerala and Assam, are indicative of an emerging new trend across the national political canvas. Indian politics traditionally comprised of two major national parties, i.e. Congress and the BJP. The Communist Party was conventionally considered as the „third front‟. The regional parties were by far known to be the „king makers‟, who would provide support to one of the major parties to form a coalition government in a fractured mandate. The verdict that has come out this time around suggests that the regional parties are assuming greater relevance and are becoming more assertive; BJP is making inroads into the unchartered territories and is consolidating its gains, while the Congress party is being decimated and its prospects as a national party are getting eroded. The Verdict West Bengal (Chief Ministerial Candidate - Mamata Banerjee) TMC – 211 (plus 27 seats) Left + Congress - 76 (minus 27 seats) Others – 07 Tamil Nadu (Chief Ministerial Candidate - J Jayalalithaa) AIDMK - 134 (minus 16) DMK + Congress - 97 (plus 69) Others – 01 (minus 56) Kerala (Chief Ministerial Candidate - Pinarayi Vijayan) UDF - 91 (plus 19) LDF - 47 (minus 20) BJP - 01 (plus 01)

Others - 01 Assam (Chief Ministerial Candidate – Sarbananda Sonowal) BJP – 86 (plus 59) Congress – 26 (minus 52) AIUDF – 13 (minus 05) Others – 01 (minus 02) Emerging Trends across National Political Canvas Congress is losing its sheen completely, having lost six states since 2014 and its presence at the national level has got reduced to merely 15%. It is fast bringing the prophecy and agenda of BJP alive to have a „Congress Mukt Bharat‟. Meaninglessly sticking to dynastic politics, poor leadership, incoherent approach and inept decision making is being considered as the major folly of Congress party. BJP is emerging as a truly national party with its presence expanding to nearly 50% of the country now. The victory in Assam was a result of a craftily carved out strategy by a team of technocrats and campaigners. The Agenda of development and securing the identity of Assamese people worked for the BJP. Besides Assam, BJP has also made a breakthrough in Kerala for the first time ever, which represents the tenacity and the ability of the party workers to analyse the feedback on poll issues, identify the weaknesses of the opposition and strike the right cords with the masses. Another thing that has emerged from the election results is that the polls are being won more because of personalities rather than the parties, e.g. PM Modi was the reason for the victory in Assam and not the BJP, Mamata Banerjee won in-spite of Left-Congress combined front and has given an open hint of putting together a strong „third front‟ for the 2019 general elections. Similarly, Jayalalithaa is a cult figure in Tamil Nadu who is the single most important reason for her party to win elections. On the contrary, the 91 year old M Karunanidhi, blemished by the involvement of his daughter Kanimozhi in 2G scam and raging succession battle in his family was unable to keep up the „revolving door syndrome‟ in Tamil Nadu where ADMK and DMK always took turns to come into power. Similarly, previous chief ministers, i.e. 81 year old Tarun Gogoi in Assam and 72 year old Chandy in Kerala lost due to string of scams and discontent over governance in their respective states. Conclusion The most noteworthy development that is visible in the national political scenario is that, in the absence of Congress Party as the major national opposition party, the only serious competition that BJP has, is the regional parties. West Bengal CM, Mamata Banerjee has once again renewed talks on putting together a „third front‟ by listing out her non-congress and non-BJP friends like, Nitish Kumar, Arvind Kejriwal, Naveen Patnaik, Mayawati, Jayalalitha and others. The prediction of some political pundits may come true that there is a strong likelihood of the coalition of regional parties that would come to power in 2019.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

14) India - The Fastest Growing Economy of the World

Introduction India surpassed China as the fastest growing economy of the world, with its gross domestic product (GDP) growth at 7.6 per cent during 2015-16. As a sharp contrast, China has reported its slowest growth in the past seven years at 6.7 per cent in the March quarter. It is believed that Indian economy has bounced back owing to consistent low oil prices, improvement in electricity generation, better mining production, rebound in the farm output and higher inflow of foreign investments. The figures that reinforced India‟s position as the world‟s fastest, growing large economy, came on the back of a strong 7.9 per cent growth in the last quarter of the fiscal. Notwithstanding, the issues that need to be given attention so as to maintain a sustained higher growth trajectory include, prevent faltering of private investments, improve exports and capital goods growth, bringing about taxation reforms and make the market more investor friendly. Before we delve upon the recent economic data released by the Central Statistics Office (CSO), let us look at the contours of the Indian economy over the years. Economic Policies Post Independence The post independence period of India was marked by economic policies which tried to make the country self sufficient.

The economic reforms of India somewhat followed the democratic socialist principle with more emphasis on the growth of the public and rural sector. New roads were built, dams and bridges were constructed, and electricity was spread to the rural areas to improve the standard of living. Therefore, in the mid 1950's huge scale nationalization was done to industries like, telecommunications, mining, electricity, etc. Economic Reforms During 1960s to 1980s During the mid 1960s, the government initiated the „Green Revolution‟ movement and stressed on better agricultural yield through the use of synthetic fertilizers, improved seeds and mechanized techniques of agriculture. New irrigation projects were undertaken and the rural banks were also set up to provide financial support to the farmers. The first step towards liberalization of the economy was taken up in mid 1980s. The government of India took some bold decisions and started easing restrictions on capacity expansion, reduced corporate taxes and removed price controls, etc. These led to enhancement in growth rate, which in turn also led to high fiscal deficits and aggravating current account, because of increased imports and Indian companies were „earning in rupees and paying in dollars‟. Economic Crisis of 1991 As discussed above, as India eased restrictions for foreign investments and its economy was primarily import driven. In 1991, the country faced a serious economic crisis due to high balance of payments which India was incapable of paying up and foreign exchange reserves were depleted to the extent that it was enough only for three weeks of essential imports. India was only week‟s way from defaulting on its external balance of payment obligation, when it asked IMF for the bailout loan, by pledging 67 tons of India's gold reserves as collateral. To get out of the adverse financial situation, the then Finance Minister, Manmohan Singh initiated the economic liberation reform in the year 1991. Under the liberalization programme, foreign direct investment was encouraged, public monopolies were stopped. Service sector with businesses providing services, rather than manufacturing products was encouraged and developed. Initiation of Liberalisation Policy India was compelled to adopt the liberalization policy as per the IMF guidelines enunciated while sanctioning the bailout loan. Given below are the salient highlights of the Liberalization, Privatization and Globalization (LPG) Policy:  Foreign Technology Agreements were initiated to allow transfer of technology for setting up production lines of foreign equipments and products in India.  Foreign Investment was encouraged through easing regulatory norms to boost economy.  Industrial licensing policies were relaxed and made investor friendly.  Deregulation of centralized control was done to speed up business processes.

 Beginning of privatization commenced through public-private partnerships, especially of non-profit making public sector undertakings.  Opportunities for overseas trade were facilitated by removing certain trade barriers.  Steps to regulate inflation were instituted.  Tax reforms were proposed and work on uniform taxation policy was initiated.  Except for 18 sectors that required licensing, the License -Permit Raj was abolished to curtail red tapism and build up trust of investors. Economic Reforms Post Crisis  Doing away with the Controller of Capital matters in 1992 that determined the rates and number of stocks that companies were supposed to issue in the market.  Launching of the National Stock Exchange in 1994 in the form of a computerised share buying and selling system. By the year 1996, the National Stock Exchange surfaced as the biggest stock exchange in India.  In 1992, the equity markets of the country were made available for investment through overseas corporate investors. The companies were allowed to raise funds from overseas markets through issuance of Global Depository Receipts.  Promoting FDI (Foreign Direct Investment) by means of raising the highest cap on the contribution of international capital in business ventures or partnerships to 51 per cent from 40 per cent. In high priority industries, 100 per cent international equity was allowed.  Reorganization of the methods for sanction of FDI in 35 sectors was laid down. The boundaries for international investment and involvement were demarcated.  Cutting down duties from a mean level of 85 per cent to 25 per cent, and withdrawing quantitative regulations. The rupee was turned into an exchangeable currency on trading account. Outcome of Reforms The outcome of these reorganizations was mostly positive and can be estimated by the fact that the overall amount of overseas investment (comprising portfolio investment, FDI, and investment collected from overseas equity capital markets) rose to $5.3 billion in 1995-1996 in the country from a mere $132 million in 1991-1992. Impact of Global Financial Meltdown of 2008-09 on Indian Economy The global financial crisis occurred due to bad debits that burst the real estate bubble in USA. In the absence of poor regulatory mechanism loans were doled out to borrowers with poor credit histories and they were unable to repay the loans. The impact of the global financial meltdown did not impact the Indian economy very adversely because of its strong fundamentals listed below: - Robust Financial sector with proper regulatory mechanism and effective checks and balances in place. - Flexible Monetary policy with sufficient instruments for correction in the Banking sector. - Indian economy‟s mainstay is the Service sector, which was not too much affected being a necessity driven sector.

- Buoyant FDI continued, as India was found to be a safe country for investments during the turbulent financial times also. - Improving Agriculture sector provided the depth and staying power to the economy. - India‟s growth being domestically financed remained isolated from the global recession.

Adverse Impacts of Global Financial Meltdown on Indian Economy In spite of India having substantial foreign reserves, foolproof policy framework, robust corporate balance sheets and healthy banking sector, the global financial meltdown affected Indian economy as follows:  As a consequence of global liquidity squeeze, reversal of capital flows took place which put pressure on forex markets and rupee started to depreciate. There was rapid depreciation of exchange rate and surge in short-term interest rates.  Immediately after Lehman Bank failure in September 2008, the risk aversion of financial system increased and banks became highly cautious about lending.  India‟s oil import bill swelled, exports slumped, credit dried up and investors took their own money out, leading to fiscal deficit rise to 12.7 percent. All these led to: o Reduction in Capital Flows (foreign direct investment reduced by 54% in the first quarter of 2009). o Pressure on Balance of Payments as the global trade contracted. o Monetary & Liquidity Impact due to massive reversal of private capital flows. o Reduction in flows from non-banks because of increasing volatility and falling prices for primary commodities. o Perceptions of credit crunch made the investors and policy makers nervous and public confidence on financial institutions declined. o Growing budget deficits, falling tax revenues and reduction of fiscal space, because of Oil, Fertilizer & Food subsidies, Pay Commission, Debt Waiver, NRE, Stimulus Packages. o Reduced ability to maintain social security and provide other social services, such as health and education. Resulting in increased infant and maternal mortality. o Collapse of housing markets. o Finally, leading to large increase in market borrowings, deceleration of growth, economic contraction and volatile movements in exchange rates. Present Status of Indian Economy India is the world's 7th largest economy. It is the 12thlargest in terms of the rates of market exchange and stands 128th in the world on per capita basis. India is a $2.2trillion economy and is the world‟s 10th largest importer and 19th largest exporter. Around 54% of the GDP comprises the service industry, while 29% is the industrial sector and 17% is the agricultural sector. The main occupation in India is agriculture which employs 60% of the population. Around 28% of the population is employed in the service sector and the rest 12% are in the industrial sector. 47

The work force amounts to half a billion workers, which is the 2nd largest after China. Central Statistics Office (CSO) Report on Indian Economy The recent economic data released by the Central Statistics Office (CSO) spells out that the farm sector grew by 2.3 per cent from a year ago compared with a 1.0 per cent contraction in the December quarter. The Mining sector grew 8.6 per cent in the March quarter, up from 7.1 per cent in the previous quarter. Electricity, water and gas production growth surged to 9.3 per cent from 5.6 per cent in the December quarter. The manufacturing sector grew at a rate of 9.3 per cent during the above said period. Growth of trade, hotels, transport, communication services grew at 9 per cent, while financial, insurance and real estate sector grew at 10.3 per cent. The GDP data for the first three quarters was given as 7.5 per cent, 7.6 per cent and 7.2 per cent, respectively. The projections for the GDP growth during 2016-17 is being estimated at between 7 - 7.75. However, it is cautioned that with the global slowdown likely to persist, chances of India‟s growth rate in 2016-17 increasing significantly beyond 2015-16 levels were not very high. Points to Ponder Given the fact that Indian economy is on an upswing then why are the benefits not trickling down to the common man? The Rupee is continuously depreciating against the Dollar and inflation is on the rise, (petrol, diesel and LPG prices have been very steeply hiked yesterday, and additional cess for Swatch Bharat and Agriculture has been added to the Service Tax, taking it now, to15%, thus increasing the cost of every commodity for the common man). Why is Rupee Depreciating Against Dollar? Value of currency like all other traded goods is dependent upon its demand and supply. If the demand of Dollar is higher in the currency market than the supply as against the Rupee, the Rupee will depreciate. Conversely, if the supply of Dollar is higher in the market as against the Rupee, the Rupee will appreciate. India buys products from the foreign markets in Dollars and sells them in Rupees. When the goods and services are imported, the payments to the exporter have to be made in Dollars and hence, the demand of Dollars increases, with the result Rupee depreciates against the Dollar. Since, India imports more than it exports, the Rupee is continuously depreciating. In the recent times of recession, the capital inflow reduced and in fact a lot of reversal of capital flow took place, leading to reduced supply of Dollars and hence, Rupee depreciated at a faster rate. Why is Inflation Rising in India? The rising inflation is a function of imbalance in the demand and supply of commodities. It basically occurs in a situation when the aggregate demand in the economy has exceeded the aggregate supply.

The economic development in the country, over the years, has improved the living standards and increased the population of middle class and the upper middle class, whose purchasing power has improved. Let us understand this with an example, assume that our country has increased its capacity to produce 550 units of a commodity from earlier 450 units, so the GDP has shown an upwards trend, however, the actual demand of this commodity has now risen to 700 units, which is causing the scarcity. Hence, inflation is demand driven, due to scarcity in supply of desired commodities. The recent surge in the global oil prices has resulted in the hike in the domestic oil and LPG prices. The government has directly passed on the increased oil prices to the consumers, rather than letting the oil companies to share the burden. The agricultural scarcity accruing due to climate change, damage in transit and lack of cold chains/ warehouses for storing food grains creates a scarcity causing high inflationary pressures. The high cost of labor eventually increases the production cost and leads to a high price for the commodity. In order to pursue the desired development agenda, various taxes have to be levied by the government. Unfortunately, it is the middle class, salaried people who get most affected by higher taxation. Hence, enhanced demand due to a growing middle class population and reduced supply due to scarcity of commodities or its high production cost has resulted in rise in inflation. Conclusion In order to maintain a sustained growth path for the Indian economy the following steps may be considered:  Focus on promoting the manufacturing sector, so that the economy is export driven rather than being import driven. India needs to manufacture hi-quality, hi-end products through an investment vitalized R&D, highly skilled workforce, world class infrastructure to attract FDI, and consistency in policy making.  Deregulation of processes and decentralization of authority to speed up results on the ground and make business processes easy.  India being an agrarian society, impetus needs to be given to Agriculture sector to put money in the pockets of the farmers. The efforts in this direction must include, FDI in retail to support better pricing of agro-products, cold chains and warehousing for storage and minimizing losses of food products, expansion of food processing industry and qualitatively improve crops through scientific means of farming to yield agro-products that are competitive in the world market.  Stricter regulations for import of mass consumption commodities like food, consumer goods, electrical products and light engineering goods on quality clearances to compel such brands to „manufacture in India‟ for „consumption in India‟.  Manufacturing clusters need to be created with proper habitat for the workforce and all basic amenities must be catered for in these ecosystems, like, labor markets, livable spaces, and access to markets, etc.

 Retrospect taxation, or „Tax Terrorism‟ as it is being called by foreign companies, e.g. in the case of Vodafone and some other service providers creates a sense of mistrust in the mind of investors. The taxation policies must be clear, concise, binding and standardized. Hence, Goods and Services Tax (GST) must be implemented earliest to create a better investment climate.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

15) Strategic Advantages of the Recent Indo-Iran Agreements Signed During the Visit of PM Modi to Iran on 22-23 May 2016

Introduction Prime Minister Narendra Modi reached Tehran on 22 May 2016, for a two day visit to Iran. A total of 11 MoUs were linked on 23 May 2016 to promote trade and commerce with Iran. Indian entities, both from private and public sectors have projected an investment potential of $22 billion in Chabahar‟s Free Trade Zone. However, the most significant achievement of this historic visit was the signing of a tripartite agreement between Iran, India and Afghanistan to turn the Chabahar Port into a transit hub, which would bypass Pakistan for movement of Indian goods into Central Asia and beyond to Europe and Russia. Historical Perspective to Indo-Iran Relationship After independence and creation of Pakistan, India lost the geographical boundaries with Iran and this brought distance between the two nations. Formal diplomatic relations between India and Iran were established on 15 March 1950. During the cold war era, though India remained non-aligned, it fostered strong military links with the Soviet Union; while Iran signed the US led Central Treaty Organization (CENTO) and enjoyed close ties with the United States. However, during the immediate period post the Islamic Revolution in Iran in 1979, Iran momentarily shared better ties with India.

Once again, during the Iran-Iraq war that lasted for nearly a decade during the1980‟s, the relationship deteriorated because, Pakistan provided intimate supported to Iran, while India maintained close relations with Iraq. Indo-Iran relationship took a turn for the good in the 1990‟s, when both India and Iran supported the democratic government of the Northern Alliance against the autocratic regime of the Taliban‟s in Afghanistan. Both countries firmly support the anti-Taliban government of Ashraf Ghani, which has the backing of the United States. The first bilateral agreement on Defense Cooperation was signed in December 2002. In 2009, India under the pressure from US, voted against Iran in a resolution passed by UN watchdog for atomic expansion, the IAEA, censuring the Iran over it controversial nuclear programme demand. Naturally, the same brought in some sourness in the Indo-Iran relationship. However, in 2013, India was able to hold its ground when US once again pressurized India to stop buying oil and completely freeze its economic relations with Iran over its nuclear ambitions. India didn‟t bow to US pressure and continued to buy oil from Iran. It is perhaps one of the important reasons that Iran looks at India as a trusted partner, now that the sanctions are being progressively lifted. Areas of Interdependence between India and Iran Source of Oil and Gas: India imports 80% of its oil demand. Saudi Arabia is one of the largest suppliers of oil to India, followed by Iraq, Nigeria, Venezuela and then Iran. Nigeria replaced Saudi Arabia as the largest crude oil supplier to India after its oil exports to India last year surged by nearly 200 percent, supplying some 745,000 barrels per day. The shift occurred, as most of the Indian refiners switch out their long-term contracts with Middle East suppliers, owing to the prevalent turbulent environment, in favour of African oil spot purchases. Similarly, Saudi Arabia also fell behind Russia and Angola last year as the largest crude supplier to China. Iran was India‟s second biggest supplier of crude oil after Saudi Arabia till 2010-11. However, after the Western countries sanctions imposed on Iran, India brought down the purchases in 2012-13 and had limited them in the years thereafter. Once again, during the first half of 2015-16 fiscal year, Iran toppled Kuwait to become India's fifth largest crude oil supplier, selling over 6.5 million tons of oil. Improved ties with Iran, and once the Chabahar Port becomes operational, the availability and movement of oil to India from Iran will become highly cost effective. Besides the above, India's largest offshore drilling services provider Aban Offshore gets 35 per cent of its revenues from Iran. Better ties and easing of sanctions in Iran will help improve its functional ability. Iran and India have also agreed to sign a contract to develop the Farzad B gas field, which is a natural gas field in the Persian Gulf by October this year. Farzad B, has an estimated reserve of 12.8 trillion cubic feet of gas, and was opened in 2008 by a consortium of three Indian companies: ONGC Videsh, Oil India and Indian Oil. 52

Infrastructure Development: India had earlier constructed the Zaranj-Delaram road in 2009 which can give access to Afghanistan's Garland Highway, setting up road access to four major cities in Afghanistan - Herat, Kandahar, Kabul and Mazar-e-Sharif. During the ongoing visit of PM Modi to Iran, the following deals for infrastructure development in Iran have been signed:  India signed a commercial contract for ten years (extendable) to build and operate the strategic Chabahar Port on Iran‟s southern coast. India will guarantee 30,000 TEUs of cargo at the Chabahar port which will go up to 2, 50,000 TEUs by the 10th year.  India is planning to invest billions of dollars in setting up industries, ranging from aluminum smelter to urea plants in Iran's Chabahar Free Trade Zone. Indian Public Sector Undertaking (PSU) Nalco will set up the aluminum smelter while private and co-operative fertilizer firms are keen to build urea plants provided they get gas at less than $2 per mmBtu.  At present, we spend Rs. 45,000 core annually on urea subsidy, and if we can manufacture it in the Chabahar Free Trade Zone and move it through the port to Kandla and onward to hinterland, we can save that amount.  Indian railways PSU, IRCON will build a rail line at Chabahar to move goods right up to Afghanistan.  India Ports Global Pvt, a joint venture of the Jawaharlal Nehru Port Trust and the Kandla Port Trust, will invest $85 million in developing two container berths with a length of 640 meters and three multi cargo berths. The Indian consortium has signed the port pact with Aria Banader Iranian.  India, Afghanistan and Iran, also separately signed an agreement to set up a trade and transport corridor, with Chabahar as the hub.  India is planning to finance another road network inside Afghanistan to enable Iran access to as far as Tajikistan through a shorter route. Strategic Advantages of the Recent Indo-Iran Agreements At present India does not have a direct land access to Afghanistan and beyond to Central Asia, Russia and Europe, excepting, through Pakistan. The distance between Kandla Port in Gujarat and Iran‟s Chabahar Port is less than the distance between New Delhi and Mumbai. Hence, the access to Chabahar Port will help India gain a foothold in Iran which will enable quick movement of goods first to Iran and then onwards to Afghanistan and Russia through a new rail and road link being planned, as discussed above. Thus, it will now be possible to go to Afghanistan and further to Russia and Europe without going through Pakistan. Similarly, Afghanistan is a land-locked country and does not have a direct access to the Iranian ports, so it is dependent on the Pakistani port of Karachi. This landmark agreement will also help Afghanistan to get access to the Iranian port as an alternative to the port at Karachi. The same will cement strategic ties and foster trade between India-Afghanistan-Iran.

India's move to build and operate the Chabahar Port is also being viewed as a significant counterweight to China's influence in Pakistan. Chabahar is about 100 km from the Chinese-run Gwadar Port in Pakistan, which is a part of China's $46 billion plan to develop China-Pakistan Economic Corridor aimed at opening new trade and transport routes across Asia.

Geo-Political Relevance of PM Modi’s Visit to Iran The signing of the historic nuclear deal between Iran and the Western powers early this year, as a result of which, sanctions are being progressively lifted from Iran, has enhanced the Shia- Sunni rivalry for domination in the Middle East region. While Iran is a leading Shiite power, Saudi Arabia is the Sunni heavy weight in the region. A realignment has begun amongst the key Gulf countries and interestingly, most of the dominant players are important partners of India, especially Iran, Israel and Saudi Arabia. Furthermore, Saudi Arabia enjoys fairly strong and cordial ties with Pakistan. The major cause of concern for India has been the Saudi funding of various charities in Pakistan, many of which promote Wahhabism, which is the most stringent and orthodox form of Islam. The same has been giving rise to religious fundamentalism in the region. Therefore, while walking this tight rope, a renewed and meaningful engagement, especially with the Iranian leadership, had become an important imperative for India. Conclusion The landmark agreement to develop the Chahabar Port and further enhance the connectivity and avenues for improving trade links with Afghanistan and Central Asia is considered highly significant. India has been able to offset the strategic advantage gained by China by way of developing the Gwadar Port and the China-Pakistan Economic Corridor to forge new trade and transport routes across Asia. Therefore, besides the economic reasons, the visit of PM Modi to Iran has served India to bolster ties, create a balance of disposition and provide credence to India‟s image as an important player in the global arena.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAININ

16) India’s Push for Nuclear Suppliers Group (NSG) Membership

Introduction India is the fourth largest energy consumer after China, USA and Russia and third largest importer in the world and its import dependence is expected to grow to 50% of its current total demand by 2030. About 70% of India's electricity generation capacity is from fossil fuel and coal accounting for 40% of India's total energy consumption followed by crude oil and natural gas at 28% and 6% respectively. The conventional sources of energy are limited and leave a huge carbon imprint, which is highly detrimental for the very survival of our ecosystem. Therefore, it has become an imperative for India to aggressively pursue the development of unconventional, less polluting sources of energy. Amongst which, nuclear energy happens to be the cleanest and most efficient form. Before we look at India‟s efforts to establish amiable contact with the coterie of nuclear suppliers, let‟s first understand a few important connected aspects. Nuclear Energy Status for Sustainable Growth India‟s current nuclear generation capacity is 4.8 GW and ranks 13th in the world, which account for only 1.2% of global nuclear capacity. The installed capacity of nuclear energy is presently 4780MW, which accounts for 1.92% of the total power generation capacity of the country. Currently, four indigenously developed 700 MW PHWRs are under construction, two each at Rawathbhata in Rajasthan and Kakrapar in Gujarat. Several others are also planned.

Construction of two 1000 MW VVERs, (a type of Light Water Reactor) at Kudankulam in Tamilnadu is nearing completion and one of the reactor has been already tested for commercial production. An Inter-Governmental Agreement with Russia has been signed for setting another four light water reactors of 1 GW each, in addition to the two which are already under construction. India plans to import totally about 40 GWs of LWRs to accelerate the nuclear power deployment in the country. The target is to increase nuclear power capacity to about 60 GW by 2030. The major challenges to create the desired capacity are: · Ensuring a credible, high level of safety at the plants. · Capacity building and ensuring a perennial supply of fuel for the nuclear reactors. Nuclear liability in case of an accident and allied issues are inhibiting foreign companies to set up plants. · Environmental clearances, politically motivated agitations and other regulatory measures need to be addressed to encourage and win the trust of foreign companies. Reasons for India not Endorsing the Non-Proliferation Treaty (NPT) or the Comprehensive Nuclear-Test-Ban Treaty (CTBT) The endorsement campaign for NPT commenced in 1968 and it entered into force in 1970 for a period of 25 years. However, on 11 may 1995, it was extended indefinitely. A total of 191 states have joined the Treaty, North Korea which has initially acceded to NPT, announced its withdrawal in 2003. Four UN member states never joined the NPT: India, Israel, Pakistan and Sudan. The prime objectives of NPT is to prevent the spread of nuclear weapons and weapons technology, to promote cooperation in the peaceful uses of nuclear energy, and to further the goal of achieving nuclear disarmament. The treaty is reviewed every five years in meetings called Review Conferences of the Parties to the Treaty of Non-Proliferation of Nuclear Weapons. As per the provisions of the NPT, non-nuclear weapon states were prohibited from, among other things, possessing, manufacturing or acquiring nuclear weapons or other nuclear explosive devices. All signatories, including nuclear weapon states, were committed to the goal of total nuclear disarmament (which on ground has not been implemented by the superpowers). Similarly, the Comprehensive Nuclear-Test-Ban Treaty (CTBT) is a multilateral treaty by which states agree to ban all nuclear explosions in all environments, for military or civilian purposes. It was adopted by the United Nations General Assembly on 10 September 1996. However, the CTBT has not entered into force as eight specific states have not ratified the Treaty yet. It has been signed by 71 states. The states that have not ratified the treaty are as under: China, Egypt, Iran, Israel and the United States have signed but not ratified the Treaty; India, North Korea and Pakistan have not signed it. India is among the few countries, which follow a self-imposed “no first use” policy, a pledge not to use nuclear weapons unless first attacked by an adversary using nuclear weapons. 56

The argument that India gives for not signing the NPT or the CTBT is that these treaties creates a club of "nuclear haves" and a larger group of "nuclear have-nots" by restricting the legal possession of nuclear weapons to those states that tested them before 1967, but the treaties never explains on what ethical grounds such a distinction is valid. India's then External Affairs Minister Pranab Mukherjee said during a visit to Tokyo in 2007: "If India did not sign the NPT, it is not because of its lack of commitment for non-proliferation, but because we consider NPT as a flawed treaty and it did not recognize the need for universal, non-discriminatory verification and treatment." Role of Nuclear Suppliers Group (NSG) Nuclear Suppliers Group (NSG) is a multinational body comprising of 48 members states, which is concerned with reducing nuclear Proliferation by controlling the export and re-transfer of materials that may be applicable to nuclear weapon development and by improving safeguards and protection on existing materials. The NSG was founded in response to the first nuclear test conducted by India in May 1974 and had its first meeting in November 1975. A series of meetings by member nations were held in London from 1975 to 1978 and that is why this Group is also referred to as the „London Group‟. The meetings resulted in agreements on the guidelines that were formally published and essentially comprised of the list of items, also called the Zangger “Trigger List”, which could only be exported to non-nuclear states if certain International Atomic Energy Agency (IAEA) safeguards were agreed to or if exceptional circumstances relating to safety existed. India’s Pursuit for Nuclear Energy In July 2006, the United States Congress amended US law to accommodate civilian nuclear trade with India and endorsed the United States-India Peaceful Atomic Energy Cooperation Act in December 2006. India committed as part of the Deal to classify 14 of its 22 nuclear power plants as being for civilian use and to place them under International Atomic Energy Agency (IAEA) safeguards. Though India is not a signatory of the Nuclear Non-Proliferation Treaty, considering its clean non-proliferation track record, the above said legislation allows for the transfer of civilian nuclear material to India. The next hurdle was to get the approval of the Nuclear Supplier‟s Group (NSG) to allow major nuclear suppliers to indulge in nuclear trade with India. During the initial meeting on 21-22 August 2008, the NSG member countries, specially, Austria, Switzerland, Norway, Ireland, and New Zealand, expressed strong reservations about the lack of conditions in the proposed exemption Guidelines. However, on 06 September 2008, India was granted the waiver at the NSG meeting held in Vienna, Austria. Consequently, India could commence nuclear trade with other willing countries. President Bush signed the agreement approved by the US Congress on 08 October 2008. Further, as a result of protracted negotiations, PM Modi and Australian Prime Minister Tony Abbot were able to seal the civil nuclear deal with Australia, which holds the world‟s largest reserves of Uranium on 05 September 2014. 57

India’s Push for NSG Membership US President Barack Obama, during his state visit to India in November 2010, announced US support for India's participation in the Nuclear Suppliers Group, and other nuclear clubs, like the Wassenaar Arrangement, the Australia Group and the Missile Technology Control Regime, "in a phased manner," Again, during the Republic Day visit of India in January 2015, President Obama said that India was ready for NSG membership. The United Kingdom has for a long time been a supporter of India's inclusion in the Nuclear Suppliers Group and the French President Sarkozy also expressed his country's backing for India's inclusion in Nuclear Suppliers Group during a visit to India in December 2010. In the last two years, PM Modi has travelled to Australia, Belgium, Brazil, Canada, China, France, Germany, Ireland, Japan, Turkey, Russia, UK and the US. During these visits one of the important issues on the agenda has invariably been soliciting support from these NSG member countries. India had applied for NSG membership in May 2016. Concurrently, Pakistan also applied for the same. Many see the move as an apparent attempt to block India's Membership to the NSG. An elaborate plenary session of the NSG is scheduled to be held in Seoul from 20-24 June 2016. A meeting has been scheduled as a pre-plenary vetting process on 09 June 2016, where the countries will give their opinions on the new applications. PM Modi left for a five nation tour on 04 June 2016. He was earlier planning to go to only Afghanistan, Qatar and the US for his bilateral visits. However, given India‟s interest in joining the NSG, South Block decided that the PM should visit Switzerland and Mexico, to lobby for NSG membership. While he will be in Switzerland on June 06, he will visit Mexico on June 09. India’s Application for Other Organizations Besides NSG, India is also working towards becoming a member of other export control regimes: Missile Technology Control Regime (MTCR): The MTCR was established in April 1987 by the G7 countries: Canada, France, Germany, Italy, Japan, Great Britain, and the United States. It is an informal and voluntary partnership among 34 countries to prevent the proliferation of missile and unmanned aerial vehicle technology capable of carrying a 500 kg payload for at least 300 km. Australia Group: The Australia Group is an informal group of countries, now, also joined by the European Commission. It was established in 1985 after the use of chemical weapons by Iraq in 1984 to help member countries to identify those exports which need to be controlled so as not to contribute to the spread of chemical and biological weapons. Wassenaar Arrangements: The Wassenaar Arrangement was established to contribute to regional and international security and stability by promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies, thus preventing destabilizing accumulations. Roadblocks in the Path of India’s Membership for NSG

Primarily, three players, i.e. China, the “non-proliferation hardliner” countries, like Austria and Ireland, and the United States, will play an important role in deciding which way the vote will sway. In spite of explicit support of US for making an exception in respect of India, the Missile Technology Control Regime (MTCR) membership application of India was vetoed by Italy in October 2015. Therefore, it needs to be understood that all NSG member countries operates on consensus and each member has an equal vote. Giving India an admission into NSG is not as much of a debate, as setting up precedence by allowing a non-signatory of NPT into the NSG. China has already announced its opposition to permit non-Nuclear Non-proliferation Treaty (NPT) members into the NSG and is poised to resist consideration of India‟s NSG membership, even perhaps at the cost of damaging its bilateral ties with India. China‟s opposition is broadly based along two lines: firstly, keeping India out of the nuclear club, being its major competitor in the economic arena and contender for nuclear material to fuel its reactors, and secondly, keeping Pakistan pegged with India for admission into NSG, so that a positive vote can never come through, considering the dubious background of Pakistan. Conclusion NSG membership would give India greater access to the international nuclear market, and will opening up nuclear commerce for fuelling its reactors. Besides, the NSG can be a source of legitimacy for a nuclear-armed state outside of the NPT, to be granted a special status that would hugely enhance India‟s image and regional power projection. Whatsoever, be the outcome of the voting, it is obvious that both China and the United States are playing to their own interests. India, has demonstrated its resilience by sticking to its stand on nuclear non-proliferation and this exceptional status which it is demanding may call for firmer nuclear non-proliferation pledges.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

17) Recommendations of the Subramanian Committee for New Education Policy- 2016

Introduction The Constitution of India lies down, that the Right to Education is a Fundamental Right of every citizen. Article 21A was inserted under the 86th amendment to the Constitution on 12 December 2002, which states that, “The State shall provide free and compulsory education to all children of the age of six to fourteen years in such manner as the State may, by law, determine”. The National Council of Educational Research and Training (NCERT) is the apex body for curriculum related matters for school education in India and provides support and technical assistance to schools in various aspects of enforcement of education policies. Education in India is being provided by Public sector and Private sector school, in the ratio of 7:5. The quality of education being imparted in Public schools is much to be desired. It is felt that the education system in India needs further reforms to make it globally competitive, oriented towards reducing the academic stress and be more focused towards identifying the latent potential in the students and producing industry ready material. TSR Subramanian Committee The Subramanian Committee was formed in October 2015 to study feedback obtained from various states regarding reforming education. The Committee comprised of prominent academicians like, ex-NCERT chief, JS Rajput, Shalija Chandra, Seva Rama Sharama and Sudhir Mankad. The Committee was tasked to assist in the formulation of the National Policy of Education 2016.

Recommendations of the Subramanian Committee The Education Committee submitted its proposals to the HRD Ministry on 17 June 2016. It is a 200-page report, containing almost 90 suggestions; some of the major recommendations are as follows:  Class X exams to be held at two levels, particularly for math‟s and science, to reduce stress and anxiety amongst students, who do not wish to pursue these subjects further or are opting for vocational courses.  Conduct of online, on-demand board exams, which a candidate can take at his/her convenience. The same will serve to relieve stress and offer flexibility to students.  Conduct of national level test after class XII, similar to SAT in US, to replace various entrance exams for admission into colleges.  The Committee recommended reinstating detention of students beyond Class V.  It has proposed setting up an all-India cadre of educational services on the lines of the Indian Administrative Service (IAS).  An important suggestion is the overhaul of regulators such as the UGC, inculcating values and nationalistic pride in school students  In order to ensure quality maintenance, the Committee has recommended compulsory quality audit of all higher education institutions every three years  The Committee has proposed to allow foreign universities to set up campuses in the country in collaboration with Indian institutions, among other things.  Introduction of Sanskrit at primary level as an independent subject has been proposed. Also, English language was proposed to be given equal importance to enable students to transcend geographical boundaries and function effectively at national and international levels.  The Committee has recommended open school courses at all levels to give wider options to students.  The Committee highlighted the need for introducing sports facilities in education centers and importance of physical development for students. Further, it proposed to introduce compulsory Yoga in all public and private schools. Conclusion The HRD Ministry will now study the proposals and based on the same, formulate the Education Policy 2016. The aspects recommended by the Committee will be beneficial to remove stress and add value to the education system

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

18) Consequences of United Kingdom Exiting European Union - BREXIT

Opponents of the Treaty of Lisbon (Labor Party of UK) argued that it would overly centralize the EU, and weaken democracy by "moving power away" from national electorates. Supporters argue (Conservative Party of UK) that it brings in more checks and balances into the EU system, with stronger powers for the European Parliament and a new role for national parliaments. Referendum of 2016 British Prime Minister David Cameron, who belongs to the Conservative Party after coming into power in 2012, had announced that a Conservative government would hold an in-out referendum on EU membership before the end of 2017. The provisions to leave the EU have been cited in Article 50 of the Treaty of Lisbon. PM Cameron has said that he would trigger the Article 50 process immediately following a „leave vote‟. Once the proceedings of Article 50 have been initiated, there is a two-year time period to negotiate the arrangements for exit. Process of Referendum The referendum will be held across all four countries of the United Kingdom, i.e. England, Scotland, Wales and Northern Ireland as well as in the Overseas Territory of Gibraltar on 23 June 2016. There are to be 382 local voting areas which are grouped into twelve regional counts and there will be separate declarations for each of the regional counts. Only British, Irish and Commonwealth citizens over 18 who are resident in the UK or Gibraltar will be able to vote in the Referendum. British citizens who have lived abroad for less than 15 years will also be eligible to vote. The final result of the referendum (combining all 12 regional counts from across the UK and Gibraltar) will be announced in Manchester on 24 June 2016. Consequences of United Kingdom Exiting European Union - BREXIT A report suggests that withdrawal of UK from EU "has the potential to fundamentally change the EU and European integration. On the one hand, a withdrawal could tip the EU towards protectionism, worsen existing divisions, or unleash centrifugal forces leading to the EU‟s unraveling. Alternatively, the EU could free itself of its most awkward member, making the EU easier to lead and more effective”. Britain will have to secure bilateral Free Trade Agreements (FTA) with the existing trading partners of the EU. The United States has indicated that it is not keen on pursuing a separate FTA with Britain if it leaves the European Union. The leave campaigners argue that a reduction in red tape associated with EU regulations would create more jobs and that small to medium-sized companies who trade domestically would be the biggest beneficiaries. Those arguing to remain in the EU, claim that millions of jobs would be lost. In February 2016, half the companies on the FTSE 100 Index, “including Shell, BAE Systems, BT and Rio Tinto" as well as supermarket chains Asda and Marks and Spencer, officially supported staying in the EU.

The possibility that the UK's constituent countries (England, Scotland, Wales and Northern Ireland) could vote to remain within the EU, but find themselves withdrawn from the EU has led to discussion about the risk to the unity of the United Kingdom. UK universities rely on the EU for around 16% of their total research funding, and are disproportionately successful at winning EU-awarded research grants. This has raised questions about how such funding would be affected by a British exit. The supply of workforce will get adversely affected as the movement of migrant labor from the other European nations will get restricted due to control on free movement within Euro zone. Those who propose that UK must remain a part of EU claim that taxes from immigrants boost public funding, while the leave campaigners believe that reduced immigration would ease pressure on public services such as schools and hospitals, as well as giving British workers more jobs and higher wages. EU exit is considered to be the 'biggest domestic risk' to the UK economy. In the week following conclusion of the negotiations on the referendum, the pound fell to a seven-year low against the dollar. In June 2015, the credit rating agency, Standard & Poor‟s, altered its outlook for the UK economy from 'neutral' to 'negative', saying that the referendum "represents a risk to growth prospects" for the country's economy. Implications of BREXIT on India It is believed that BREXIT, if it happens, may have positive implications for India. Existing from EU will compel UK to develop closer bilateral economic ties and Free Trade Agreements with emerging economies of Asia, like India and China. United Kingdom is believed to be relatively more flexible and commercially open when compared with the highly regulated EU. Thus, bilateral trade will have greater scope and lesser encumbrances. Conclusion The opinion polls held in June 2015, showed that those in favor of Britain remaining in the EU were 43%, versus those opposed to it were 36%. Analysis of polling suggests that young voters tend to support remaining in the EU, whereas those older tend to support leaving. Also, big businesses are broadly behind remaining in the EU, though the situation among smaller companies is less clearly defined. Finally, to my mind, it may be fair to predict that the referendum will go in the favor of United Kingdom remaining as a part of the European Union.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

19) Implications of Foreign Direct Investment (FDI) Reforms Announced on 20 June 2016

Introduction Foreign Direct Investment (FDI) implies making investments, which will result in controlling ownership in a business enterprise in one country by an entity based in another country. The investment may be made either "inorganically" by buying a company in the target country or "organically" by expanding operations of an existing business in that country. The government, in mid November 2015, had announced 'Big Bang' Foreign Direct Investment (FDI) reforms to ease out norms across 15 sectors including defense, banking, construction, single brand retail, broadcasting and civil aviation. The aim of those reforms was to promote FDI inflow by rationalization and simplification of the process of foreign investments in the country and to put more and more FDI proposals on „automatic route‟ instead of „Government route‟ where time and energy of the investors is wasted. The „Government route‟ involves obtaining clearances and approval of the government authorities for investments by a foreign company in India. However, the „automatic route‟ implies that, for infusion of foreign investment into an Indian company which may or may not have operations abroad and also may not have any downstream investments, Government approval will not be required for its activities. Moreover, it will also not require fulfilling any FDI linked performance conditions. In order to ensure that the ownership and control remain in Indian hands, Government approval is required in case of infusion of fresh foreign investment into an Indian company within the

permitted automatic route level, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor. Once again, on 20 June 2016, with the objective of providing major impetus to employment and job creation in India, the government made changes to the FDI policy at a meeting chaired by Prime Minister Narendra Modi.

Highlights of Foreign Direct Investment (FDI) Reforms Announced in Nov 2015 Prime Minister's approval was obtained after several rounds of inter-ministerial consultations, to bring about 35 changes in the FDI policy cutting across 15 different sectors. The major sectors in which FDI policy reforms were carried out included, defense, rail infrastructure, construction development, insurance, pension, medical devices, white label ATM operations, investments by NRIs, etc. In order to facilitate faster approvals on proposals, the government raised the threshold limit of approval by Foreign Investment Promotion Board (FIPB) from the earlier Rs 3,000 core to Rs 5,000 core. Though the approval for proposals above Rs 3,000 core requires due consideration by Cabinet Committee on Economic Affairs. Defense: Foreign investment up to 49% was allowed under automatic route from the earlier government approved route. The proposals for foreign investment in excess of 49% were also approved, on case to case basis, which provided an access to „state-of-the-art‟ technology in the country. However, it requires the consideration of Foreign Investment Promotion Board and the approval of Cabinet Committee on Security. Construction sector: The FDI norms were brought in to boost demand for steel, cement and spur economic activity, ultimately with an aim to help build 50 million affordable houses for the poor. Broadcasting: In terrestrial Broadcasting FM (FM Radio), and in up-linking of „News & Government route Current Affairs‟ TV Channels FDI up to 49% was allowed through the FIPB route (from the earlier 26%). 100% FDI allowed through the automatic route in up-linking of Non-„News & Current Affairs‟ TV Channels. 100% FDI also allowed (up to 49% automatic route and beyond that through government route) in teleports, direct to home, cable networks, mobile TV, sky broadcasting service and cable networks. Banking: In order to give the banks and investors considerable flexibility in raising funds and investing respectively, portfolio investment and foreign venture capital investment, which were earlier restricted to 24%, was hiked to 49% and that too through the automatic route. Plantation: 100% FDI in plantation activities was permitted, namely; coffee, rubber, cardamom, palm oil tree and olive oil tree plantations under automatic route. Earlier, only tea plantation was open to foreign investment. NRIs: Investment by companies/trusts/partnerships owned & controlled by NRIs on non- repatriation basis is now treated as domestic investment. 67

E-Commerce: Manufacturers are allowed to sell their product through wholesale and/or retail, including through e-commerce without Government approval. Retail: Easing of several conditionality‟s for single brand retail trade (SBRT) and e-commerce. In case of state of art and cutting edge technology, sourcing norms (that 30% of value of goods will have to be purchased from India) can be relaxed subject to Government approval. The government also permitted entities that have been granted permission to undertake SBRT, to do e-commerce. Further, 100% FDI is permitted in duty free shops. Also, a single entity will be permitted to undertake both the activities of single brand retail trading (SBRT) and wholesale with the condition that conditions of FDI policy on wholesale/ cash & carry and SBRT have to be complied by both the business arms separately. Earlier, wholesale/cash & carry trader could not open retail shops to sell to the consumer directly. LLP: 100% FDI in limited liability partnerships (LLPs) was permitted under automatic route. Aviation: The eligibility for Regional Air Transport Service for foreign investment was increased to 49% under automatic route. Earlier, foreign investment up to 49% was allowed only in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline. Foreign equity: Caps on the following sectors was increased from 74% to 100%; Non- Scheduled Air Transport Service, Ground Handling Services, Satellites-establishment and operation and Credit Information Companies. Further, sectors other than Satellites- establishment and operation were placed under the automatic route. Highlights of Foreign Direct Investment (FDI) Reforms Announced on 20 June 2016 Foreign Investment in Defense Sector up to 100 per cent: The defense sector is now completely opened up to FDI through government approval route, in cases resulting in an access to modern technology in the country or for other reasons to be recorded. The condition of access to „state-of-the-art‟ technology in the country has been done away with. Further, the FDI limit for defense sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959. Foreign Investment in Civil Aviation Sector up to 100 per cent: Keeping in view the modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100 per cent FDI with FDI up to 49 per cent permitted under automatic route and FDI beyond 49 per cent through Government approval. Pharmaceutical Sector: The existing FDI policy on pharmaceutical sector provides for 100 per cent FDI under automatic route in Greenfield pharma (new plants) and FDI up to 100 per cent under government approval in Brownfield pharma (existing plants). With the objective of promoting the development of this sector, it has been decided to permit up to 74 per cent FDI under automatic route in Brownfield pharmaceuticals and government approval route beyond 74 per cent will continue. Other Sectors: Besides the above mentioned sectors, government has permitted 100 per cent FDI in animal husbandry and trading, including through e-commerce, in respect of food products manufactured or produced in India. 68

Foreign investment limits in private security agencies has been increased to 74% from the existing 49%. While investments up to 49% will be under the automatic route, investments above 49% will be subject to government approval. The FDI policy on broadcasting carriage services has also been amended to enable 100 per cent FDI in teleports, DTH, Cable Networks, mobile TVs, and Sky Broadcasting Service.

Policy Changes Announced: The government has decided to relax local sourcing norms of sourcing at least 30% from within India, for the next three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having „state-of-the-art‟ and „cutting edge‟ technology. It makes the case of Apple Inc. Stronger, who had applied for exemption from 30 per cent local sourcing norm, saying it will not be possible to source as much from India as they manufacture products having "state-of-the-art and cutting-edge technology." Prohibited list: FDI continues to be prohibited in lottery, gambling, atomic energy, real estate and Real Estate Investments Trusts (REIT) and railway operations. Advantages of Increased Inflow of FDI Economic Development Stimulation: Foreign direct investment will give a boost to the economic development of the country, creating a more conducive environment for the investors and also benefit the local industry by giving them opportunities to collaborate. Easy International Trade: The local industries will automatically get an indirect access to the international markets that would enhance their profitability. Employment and Economic Boost: New jobs will be created and diverse skills will be learnt by our youth, which will create new opportunities for them internationally. The same will also lead to an increase in income and improved purchasing power of the people, thereby stimulating economic growth. Development of Human Capital Resources: Human capital is the competence and knowledge of those able to perform labor, more known to us as the workforce. The attributes gained by training and sharing experience would increase the education and overall human capital of our country. Generation of Income from Hiring of Local Expertise and Indigenous Technology: The foreign enterprises may additionally have to invest to get certain local expertise, technology and products to „Make in India‟. Resource Transfer: Foreign direct investment will call for resource transfer, in terms of raw materials available locally to make their desired product and other exchanges of knowledge, technologies and skills. Reduced Costs of Production: Since when products will be manufactured locally the production costs will go down. Hence, the product will be available at a cheaper cost. Increased Productivity: The facilities and equipment provided by foreign investors will automatically increase the productivity of our workforce.

Increment in Income: The national income will increase owing to more jobs and higher wages by larger corporations. Consequently, economic growth will be spurred. Reasons for Foreign Companies to Elude the Indian Markets In spite of all the hype and actions taken by the government, the foreign investors are still shy to invest in India. Please go through the under mentioned blog on the issue to read about some of the reasons for the same:

Conclusion The FDI reforms put in place by the government will definitely promote employment, improve infrastructure, and lead to greater FDI inflows. It is heartening to note that there is already a healthy growth in FDI inflows due to the reforms previously announced. The collaboration with foreign companies is likely change the work culture in India for the good, infrastructure will become world class and hence, the general quality of life of the people improve.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

20) Debate on Uniform Civil Code Implementation in India Introduction The Modi government, on 01 July 2016, has asked the Law Commission to examine the matter in relation touniform civil code and submit a report after discussions with experts and stakeholders. The Law Commission, which has a crucial advisory role on legal reforms, is currently headed by retired Supreme Court Justice Balbir Singh Chauhan. The Government has announced that, it will move on implementation of the controversial Uniform Civil Code as per the spirit of the Constitution. It is for the first time that any government has asked the Commission to look into this highly politically controversial issue. However, it was clarified by the Law Minister D V Sadananda Gowda that the code should not be in conflict with Article 25 of the Constitution, which relates to freedom of conscience and free profession, practice and propagation of religion. It is envisaged that the findings of the Law Commission is likely to once again stroke a heated debate on this very contentious issue of uniform civil code. Basic Information about Uniform Civil Code Presently, there is a Hindu Marriage Act 1955, a Muslim Personal Law (Shariat) Application Act, 1937, a Christian Marriage Act 1872 and a Parsee Marriage and Divorce Act 1937. Hindu Marriage Act applies to any person who is a Hindu, Buddhist, Jain or Sikh by religion. Uniform civil code is a proposal, aimed to replace the various „personal laws‟ being practiced within our country, based on the scriptures and customs of each major religious community, with a set of common laws that would govern every citizen. The „personal laws‟ laws are distinguished from public laws and cover marriage, divorce, inheritance, adoption and maintenance. Separate „personal laws‟, mainly for Hindus and Muslims were framed during the British Raj, basically, with the motive to appease the communities. Probably, within this was also hidden the larger agenda of „divide and rule‟. The demand for a uniform civil code was first put forward by women activists in the beginning of the twentieth century, with the objective of women's rights, equality and secularism. In 1985 the uniform civil code became one of the most controversial topics in contemporary politics, owing to the Shah Bano case debate, pertaining to unilateral divorce and polygamy allowed under the Muslim Personal Law.The Bharatiya Janta Party and the Left support the uniform civil code, while the Congress Party and All India Muslim Personal Law Board oppose the adoption of uniform civil code in the country. Shah Bano Case Shah Bano, a 62-year-old Muslim mother of five from Indore, Madhya Pradesh, was divorced by her husband in 1978 after being married to him for 14 years.

The husband, Mohammed Ahmad Khan, who was an affluent and well-known advocate in Indore, had remarried a younger woman before divorcing Shah Bano. A few months after her divorce, Khan stopped giving her the Rs 200 per month he had apparently promised. Shah Bano filed a petition at a local court in Indore, against her husband under section 125 of the Code of Criminal Procedure, asking him for a maintenance amount of Rs 500 for herself and her children as she had no other means to support her family. However, the husband argued that he had given an irrevocable talaq (divorce) to her which was his prerogative under Islamic law and took up the defence, that since Bano had ceased to be his wife, he therefore was under no obligation to provide maintenance for her, as except prescribed under the Islamic law which was a onetime amount of Rs 5,400, called “iddat”. She filed a criminal suit in the Supreme Court of India, where the Supreme Court concluded that "there is no conflict between the provisions of section 125 and those of the Muslim Personal Law on the question of the Muslim husband's obligation, being an Indian first, to provide maintenance for a divorced wife who is unable to maintain herself." In its judgement pronounced on 03 Feb 1981, the Supreme Court invoked Section 125 of Code of Criminal Procedure, which applies to everyone regardless of caste, creed, or religion. It ruled that Shah Bano be given maintenance money, similar to alimony. The Shah Bano judgment elicited a protest from many sections of Muslims who also took to the streets against what they saw, and what they were led to believe, was an attack on their religion and their right to their own religious personal laws. In 1986, the Parliament of India, during the regime of PM Rajiv Gandhi, when Congress Party was in absolute majority, passed an act, titled “The Muslim Women (Protection of Rights on Divorce) Act, 1986”, that nullified the Supreme Court's judgment in the Shah Bano judgment. The Act diluted the Supreme Court judgment, and allowed maintenance to a divorced Muslim woman only during the period of iddat, or till 90 days after the divorce, according to the provisions of Islamic law. This was in stark contrast to Section 125 of the Code. The 'liability' of husband to pay the maintenance was thus restricted to the period of the iddat only. The Bharatiya Janata Party brought out that the Act was an 'appeasement' of the Muslim community and discriminatory to non-Muslim men and saw it as a "violation of the sanctity of the country's highest court". The 'Muslim Women (Protection of Rights on Divorce) Act' was seen as discriminatory by many Women‟s organizations as it denied divorced Muslim women the right to basic maintenance which women of other faiths had access to under secular law. The constitutional validity of “The Muslim Women (Protection of Rights on Divorce) Act 1986” was challenged before the Supreme Court in by Daniel Latifi, the lawyer of Shah Bano in 2001. The provision in question is Section 3(1)(a) of the Muslim Women (Protection of Rights on Divorce) Act 1986, which states that "a reasonable and fair provision and maintenance to be made and paid to her within the iddat period by her former husband". In an attempt to maintain balance, the Supreme Court concluded, that the above stated provision in the Act means that reasonable and fair provision and maintenance is not limited for the 72

„iddat‟ period (as evidenced by the use of word "within" and not "for"). It extends for the entire life of the divorced wife until she remarries. Arguments ‘For’ and ‘Against’ the Uniform Civil Code ‘For’ Uniform Civil Code A Uniform Civil Code will ensure equality before law as the same set of secular civil laws would govern different people belonging to different religions and regions rather than different personal laws based on their religion or ethnicity. The sense of equality will help to bind people together and reduce the religious divide to some extent, bringing about national integration. India as a nation will not be truly secular unless uniformity is established in the form of rational non-religious codified laws. The Muslim Personal Law has not been reformed since 1937 and in many ways appears to be not in keeping with the present times, especially, laws on polygamy and issue of unilateral divorce are grossly anti-women. Thousands of Muslim women have recently sought support to abolish the "heinous" practice of 'triple talaq', which they have termed as "un-Quranic" practice. Thus, uniform civil code will promote gender equality and give women more rights. The interpretation of laws, in the absence of a uniform code for all religious communities debars other religious communities from becoming a party to the case in the court in which an appeal is made to restrain the religious heads from harassing the members of that community. Thus, secular India has upheld the freedom of religion at the cost of national unity. By allowing personal laws we have constituted an alternate judicial system that still operates on thousands of years old values that are outdated in the present times, e.g. honor killings and verdicts of Khap Panchayats. A uniform civil code would restrict unorthodox practices in the name of religion. There have also been many incidents of non-Muslim men converting to Islam solely for the purpose of practicing polygamy legally. A uniform civil code will also help in reducing vote bank politics that most political parties indulge in during every election. If all religions are covered under the same laws, the politicians will have less to offer to certain minorities in exchange of their vote. Different personal laws for different communities creates unnecessary burden on the legal system. Bringing a Uniform Civil code would reduce that. It would also help in simplifying a lot of technicalities which are present in different personal laws. It will also address all the loopholes present in different personal laws. Muslim countries like Egypt, Turkey and even Pakistan have reformed their laws. Until 1947 both India and Pakistan had governed Muslims under the Shariat Act of 1937. However, by 1961 Pakistan, a Muslim country had actually reformed its Muslim Law. Thus, there is no reason why India should continue with vastly discriminatory personal laws. ‘Against’ Uniform Civil Code Most people, be it Hindu, Christian, Muslim or any other community, are not ready to adopt truly secular laws separated from religious customs. So why impose a law on an unwilling population. 73

It is not right to force the customs of one group, howsoever dominant it may be, upon the other groups of the society. It is argued by some orthodox people that it would lead to a loss of the culture and the identity of the minorities in the Indian society. The All India Muslim Personal Law Board (AIMPLB) claims that uniform civil code will undermine democracy's basic duty, i.e. protecting the rights of minorities, thereby going against the fundamental principle of any constitutional democracy. Further, AIMPLB argues that Muslim personal law is based on the Quran, which is inextricably interwoven with the religion of Islam and not on a law enacted by Parliament. Thus, it is the issue of freedom of conscience guaranteed under Articles 25 and 26 read with Article 29 of the Constitution. It will be far better that we propose to bring about reforms in various personal laws, in order to make them relevant for the changing times. Instead of an external enforcement, let these changes be internal reforms. Conclusion Uniform civil code to my mind should not be forced upon people. Rather, we need to ensure adequacy of general laws to ensure that the basic human rights and human dignity are protected. It is well understood that certain outdated practices in various personal laws need to be reformed. The same can serve as a first step towards a uniform civil code, which must be slowly ushered in through consensual debates and discussions

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

21) Radicalization within India and the Adjoining Nations – a Serious Threat to Indian Sovereignty Introduction The Islamic State of Iraq and Syria (ISIS) is under intense pressure due to the ongoing coordinated operations being conducted by the coalition forces of the Arab nations with the tacit support of US and other western allies. Last week a convoy of 70 trucks of ISIS trying to flee Fallujah after its defeat was air attacked by US causing huge casualties. The defeat in the battle of Fallujah, and with the Iraqi troops now training their guns towards their hub centre i.e. the city of Mosul, the Islamic State is completely rattled. In order to make up the depleting strength of its fighters it has sought to ramp up recruiting in South Asia, reaching out to prospective recruits online. India, with its large Muslim population is an important destination for their recruitment drive. A video purportedly released by the group in May 2016 showed fighters saying they would avenge what they called “atrocities” against Muslims in India. The video also showed the gun- wielding men urging Indian Muslims to join the group, and mocked those who live alongside Hindus. Radicalisation of Countries Adjoining India In order to meet their above mentioned intent of recruiting foot soldiers for their nefarious mission, the ISIS is progressively trying to radicalize Muslims in India and other Muslim countries surrounding India, like Pakistan, Bangladesh, Maldives, Myanmar, etc. India The National Investigation Agency (NIA) has busted a module in Hyderabad in June 2016, whose members allegedly owed allegiance to ISIS, and was planning to attack multiple targets in the city. Eleven people have been taken into custody so far. Officials have said that the module was planning to trigger bomb blasts at communally sensitive areas like Charminar, busy markets and malls, Hindu religious sites and target an important government building. NIA officials have seized target boards used for shooting practice, two pistols, an air gun, explosive substances (urea, acids, and hydrogen peroxide) and other material used for making improvised explosive devices (IEDs). About Rs 15 lac in cash were seized from them, which the men claimed was earned from trade, but the NIA suspects, was sent to them through hawala rackets. It is estimated that a total of 23 Indians have so far gone to ISIS hold areas in Iraq-Syria to fight for the terrorist group. Of them six are said to have died and one has returned home to Mumbai. Thirty other Indians, who were radicalized by ISIS elements, were also prevented from travelling to the conflict zone in the Middle-East and 150 are under the scanner of intelligence agencies, mostly from South India, who are believed to be attracted to the ISIS and sympathetic

to the group's activities. Among those who are currently fighting for ISIS include two youth from Kalyan, in the outskirts of Mumbai, an Australia-based Kashmiri, one youth from Telangana, one from Karnataka, one Oman-based Indian and another Singapore-based Indian. Details of some of the other known radicalized individuals are given below: September 2014: 15 students, including a girl from the city, were arrested in West Bengal while trying to cross into Bangladesh to join ISIS. They were left off after counseling as they had no criminal background. January 2015: A 32-year-old man named Salman Mohiuddin was arrested by police at Hyderabad airport. He was on his way to Dubai and was planning to join ISIS after reaching Syria via Turkey. March 2015: An MS student from America and a native of Hyderabad, Hafeez, joined ISIS in US. He later travelled to Syria and was killed by the Syrian Army. September 2015: 38-year-old Nicky Joseph alias Asfa Jabeen from Hyderabad was an alleged recruiter for ISIS. UAE deported her to India. December 2015: Three missing men from Hyderabad – Faruqui Hussaini, Abdul Basit and Mohammad Hussain arrested by the Maharashtra ATS. They were the same people who were let off in September 2014. January 2016: Two men from Hyderabad arrested by the NIA. One was 54-year-old. It is believed that Indians recruits have been usually teches, who have been invariably utilized for cyber related activities and for other menial jobs rather than fighting at the frontline. Pakistan Large areas of Pakistan-Afghanistan border region, especially the Federally Administered Tribal Areas (FATA) and the Swat district in the Khyber Pukhtunkhwa Province (KPP), is virtually being controlled by various militant groups aligned with Pakistani Taliban. Pakistan‟s regional agenda in Afghanistan and Kashmir, in the shape of support for religious militants, is the real reason for radicalization in Pakistan. Pakistan created a space for religious radicals, not realizing that such a policy was bound to have a local blowback. Ethnic Divide and Lopsided Distribution of Power: Punjab, the largest province of the country, with disproportionate resources and influence in the power corridors, both political and armed forces/ ISI is seen as overly dominating by smaller provinces. Baluchistan faces a growing insurgency as its people feel marginalized and isolated. Rifts between different communities in Karachi, the largest urban centre and port city of the country, especially between the Urdu-speaking migrant communities led by the Muttihada Qaumi Movement (MQM – United National Movement), Pukhtuns settled in the city, and local Sindhis, are assuming dangerous proportions due to tussles over resources and job opportunities. Corrupt and Weak State: Rampant corruption in the criminal justice system, lack of access to justice and deficient law enforcement capacity has disillusioned a growing number of people in the country. Extremist ideologues have benefitted from these weaknesses of the state.

Loss of Tribal identity in FATA: Maliks (tribal elders) lost power and influence to clerics (religious leaders), who were empowered with the advent of Taliban‟s. Consequently, discussion forums of tribal elders, called „Majlis‟ that used to define the laws, regulations, and general policies in various FATA agencies, lost relevance and the younger generation in that area started listening to the fatwas (religious edicts) of Afghan militant leaders. Most madrassas in FATA became training centers for jihadi/militant causes and traditional religious education became secondary. Italianization of the complete Khyber Pukhtunkhwa Province was a logical consequence of the above developments in FATA. The Pakistani security forces‟ operations in the FATA area to contain the spread of the said radicalization resulted in widespread incidents of collateral damage that further enraged people of the area and drew them towards the fundamentalist movement. The Sunni Connection: Another reason for the AF-Pak region to be harboring the world‟s deadliest terror groups is because of its Sunni orientation. Besides, being patronized by countries like Saudi Arabia, Pakistan and some North African countries, large scale opium cultivation serves as its primary source of funds to fight the jihad. Inequality has Spurred Radicalization: A deteriorating economy, huge gap between the haves and have-nots, the feudalistic culture and multiple power centers within the country (Military-ISI, powerful clergy and democratic government) has created a sense of disarray that exhibits in the form of inequality and double standards. The demand for joining the radical forces is popular, not only for its religious dimension, but also because it held out hope for social justice in a society, which is marked by vast inequalities. Bangladesh The ethnic composition of Bangladesh comprises of around 89% Muslims, while the rest being Hindus, Buddhists, Christians and others. The total population of the country is 160 million. Bangladesh has two major militant organizations, namely, the Jamaat-ul-Mujahideen, which claims to represent Islamic State in Bangladesh and Ansar-al-Islam, which pledges its allegiance to al-Qaida. Bangladesh government has banned both these militant organizations. Jamaat-ul-Mujahideen, focuses its attacks on non-Muslims, whether a poor rickshaw-puller or a grocer, while, Ansar-al-Islam, in contrast, has laid down strict "targeting criteria" under which its fighters attack people carrying out "anti-Islamic" activities such as bloggers criticizing radical Islam or activists promoting gay rights. The above trend of an increase in Islamist attacks on religious minorities, secularist and atheist writers and liberal-minded Muslims has seen an upsurge since the 2013. Since September 2015, there have been over 30 such attacks, and Islamic State of Iraq and the Levant (ISIL) claimed responsibility for 21 of them. Some of these attacks in the recent times include: Killing of the Bangladeshi-American writer and blogger Avijit Roy in February 2015, shortly after that Niladry Chattopadhya, another secular blogger, had been hacked to death at his Dhaka home.

Italian citizen Cesare Tavella, was gunned down as he went for a jog in the Gulshan neighborhoods. Another Italian national Nadia Benedetti identified as the managing director for Bangladeshi branch of a British firm. Most of the foreigners that have been killed were connected with the flourishing garment business in Bangladesh. More recently, after the murder of the wife of an antiterrorism police officer, the Hasina government launched a nationwide crackdown; with authorities arresting thousands of people in what it said was an effort to fight extremism. In two separate incidents in May and June 2016, two Hindu priests have been hacked to death in Jhenaidah district of Bangladesh. Bangladesh analysts say the killing of Hindu religious leaders in the country is a focused attempt by the Islamists to create misunderstanding between India and Bangladesh at a time when bilateral relations are at its peak. The most gruesome attack came on the night of 01 July 2016, when gunmen linked to the Islamic State raided a popular cafe in upscale neighborhoods in Bangladesh's capital city of Dhaka. Twenty civilians (mostly Italian and Japanese nationals), six gunmen, and two police officers died, while 50 others, mostly police personnel, were injured. Tarushi Jain, an 18-year-old Indian national who attended the University of California-Berkeley, also died in the attack. Maldives The tiny island chain of the Maldives, with a population of just 345,000, is fast becoming a fertile recruiting ground for Islamic State jihadists. Radical Islam is getting very strong in the Maldives and the strength of such elements that have made inroads into the strategic positions in the military and in the police is very significant. Recently in the islands‟ capital, Malé, there was a pro-IS rally featuring banners that called for the introduction of Shariah law in Maldives. A prominent investigative journalist, Ahmed Rilwan Abdulla, has been missing for many months after being abducted outside his home at knifepoint, while Mr Nasheed, leader of the secular opposition MDC party, has also received death threats. The major reason for radicalization of youth in Maldives is that the government has allowed and tolerated the preaching of violent ideologies. The same has led to a significant number of local youth joining the ranks of extremist outfits abroad. It is alarming to note that, out of the 200 people (huge percentage as compared to the population of Maldives) who have travelled abroad to join jihad, a vast majority is of ex-military personnel. Like in Pakistan, Maldives has seen a large influx of funds from Saudi Arabia to support Wahhabism (most stringent for of Islam). The funds are being directed towards payments to Wahhabi imams, construction and upkeep of mosques, and spreading a deeply conservative view of Islam, which is completely in contrast to the age old traditions of the island nation. There is a this strong perception among Maldivian civil society activists that the government is not only failing to take meaningful measures against radicalization but also using radicalized groups as a tool to curb political dissent. 78

The Islamic State has a design to not hit at the tourism industry, which is the mainstay of Maldives, because it is able to use the tourism industry for money laundering and recruitment. It is feared that with the radicalization of police forces and the military, owing to infiltration of ISIS into their rank and file, it may only be a matter of time before Islamists create havoc in Maldives and fully take over the country.

Myanmar The ethnic composition of Myanmar comprises of a majority of Rakhine Buddhists and a minority of Rohingya Muslims. The Muslims comprise about 4 percent of the 51 million population of Myanmar. Hatred and bigotry toward the minority Rohingya have been deeply rooted in Rakhine state and ever since 2012, hard-line Buddhist groups, like Ma Ba Tha, have led an anti-Muslim campaign that culminated in violent riots, harassment and discrimination. The threat to the lives of displaced Muslims, who had fled their homes after violent sectarian clashes, has converted the country‟s leading Madrassa, into a refugee camps and villages that have been under prison-like conditions since the last three years. Rohingyas, lack basic rights in Myanmar, are denied citizenship, stripped of voting rights and denied access to adequate health care and education. The analysts suggest that the abysmal living conditions in the refugee camps and the abject poverty of its residents has created conditions, just ripe for radicalization. The ISIS has already sensed the above probability and in June 2015, Abu Bakr al-Baghdadi, the leader of the Islamic State in Iraq, communicated that, "One million of the weak Muslims who are all without exception being exterminated in Burma," and has asked the Muslim world, as to what would they do about it. Radicalization within India and the Adjoining Nations – a Serious Threat to Indian Sovereignty Probability of frequent attacks by terror groups from across the borders has increased. Consequently, threat to innocent human lives, mistrust amongst communities and creating a sense of fear psychosis in the minds of everyone is inevitable. Widespread deployment of security forces restricts freedom, causes inconvenience and alienates the public, which in turn becomes counterproductive to check radicalization of disenchanted youth. Inability to maintain the sanctity of such large international borders with many countries that are hotbeds for terror outfits causes strain on the security setup and intelligence network of the country. Polarization within the country, spread of saffron terror as a counterweight, increased intolerance towards the belief system of others, fringe element gaining strength, incidents of moral policing, trust deficit between communities and fanning of vote bank politics are, a natural fallout of a radicalized society. Suggestions for Reversing Radicalization 79

The following measures can be instrumental in reversing the current negative drift: Effective law enforcement can enable any state affected by this menace to expand its writ and support a system based on supremacy of the Constitution and rule of law. Strong steps by government against hate speeches, rumor mongering, and moral policing by unauthorized people will check spread of radical mindsets. Police reforms that will help to make law enforcement more effective is the need of the hour. Further, establishment of a central agency like the proposed National Counter Terrorism Centre (NCTC) will help to streamline approach towards handling this menace. Capacity building of intelligence network by the use of state of art technologies, better integration between the various resources deployed and centralized collection, collation and dissemination of actionable intelligence. India must continuously Endeavour to establish a robust counter-terrorism partnership with the neighboring countries that are also adversely affected by the menace of radicalization. Reforms in the criminal justice system are also critical. Injustice, whether real or perceived, makes the young more vulnerable to extremist ideologies. Justice must be delivered without delay and must be reformatory rather than punitive, as the use of force alone has seldom proved to be a durable solution. Awareness through access to public education can also lessen the role of the divisive and decadent system. Perhaps including such topics in the curriculum that highlight the modus operandi of the divisive elements and the pitfalls of involvement in such activities can help impressionable minds to remain cautioned. Incentivizing the publishing industry of the country to counter the sophisticated propaganda war by anti-national elements, and help in perception management of the masses. Political leaders must ensure that the minority communities of their constituencies are afforded proper rights, protection and dignity. Inciting communal violence for votes may help the politicians in their short term goals, but, it would provide the separatists a perfect opportunity to entice the people and firmly establish a foothold in the country. Finally, the government must play a significant role to create an environment in which the country stands united against all forms of divisive forces by winning the trust level of the people through just and effective governance.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

22) Why is the Military Unhappy with 7th Pay Commission Report Cleared for Implementation by Cabinet on 29 June 2016? Introduction A Pay Commission is set up by the Government of India every ten years that gives its recommendations regarding changes in the work and pay structure of all central government employees, both civil and military. The first pay commission was established in January, 1946, which submitted its report in May, 1947, and since then seven pay commissions have been constituted. Headquartered in Delhi, the Commission is given 18 months from the date of its constitution to make its recommendations to the Government of India. On 25 September 2013 the UPA Government‟s Finance Minister P Chidambaram announced that, “Prime Minister Manmohan Singh has approved the constitution of the 7th Pay Commission”. Further, it was announced on 04 February 2014, that Justice AK Mathur would head the Seventh Pay Commission, and the recommendations will be implemented with effect from 01 January 2016. Finally, on 19 November 2015, the 7th Central Pay Commission submitted its Report to Finance Minister Arun Jaitley and the Cabinet cleared the Report for implementation on 29 June 2016. Implementation of the seventh pay commission will witness an increase in pay and allowances of 23.55% of 50 lac serving central government employees and a 24% rise in pension of 58 lac pensioners. Highlights of the 7th Pay Commission Recommendations Cleared by the Cabinet for Implementation Recommended Date of implementation: 01.01.2016 Minimum Pay: The minimum pay for the government employees is recommended to be set at Rs18, 000 per month. Maximum Pay: Rs 2, 25,000 per month for Apex Scale and Rs 2, 50,000 per month for Cabinet Secretary and others presently at the same pay level. Financial Implications: The total financial impact will be Rs1, 02,100 core annually, or nearly 0.7 per cent of the GDP. Rs. 73,650 core of the total payout will come from the general budget, while Rs. 28,450 core will come from the railways. The increase in pay would be Rs 39,100 core, increase in allowances would be Rs 29,300 core and increase in pension would be Rs 33,700 core (One Rank One Pension has been granted to all military, Para military and civil employees).

In terms of percentage, the overall increase in pay & allowances and pensions will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent. New Pay Structure: In order to bring about greater transparency, the existing system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. The status of the employee, which is presently determined by the grade pay, will now be determined by his level in the pay matrix. Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees, i.e. the salary of all employees will increase 2.57 times of what is being presently drawn. Annual Increment: The rate of annual increment of 3 percent has been recommended. Modified Assured Career Progression (MACP): Performance benchmark for assured promotion have been made more stringent, i.e. from “Good” to “Very Good”, which will be required to be earned by an employee in his/her Confidential Report or Performance Appraisal. The Commission has also proposed that annual increments would not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service. Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defense forces personnel only. Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows: Present Proposed i. Service Officers ₹6,000 ₹15,500 ii. Nursing Officers ₹4,200 ₹10,800 iii. JCO/ORs ₹2,000 ₹ 5,200 Non Combatants (Enrolled) in the Air iv. ₹1,000 ₹ 3,600 Force Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of their service, with a terminal gratuity equivalent of 10.5 months of total pay. They will further be entitled to a fully funded one year Executive Programme or an M.Tech. Programme at a premier institute of the country. Lateral Entry/Settlement: The Commission has recommended a revised formulation for lateral entry/resettlement of defense forces personnel as they retire at a fairly young age, including the Short Service Officers into organizations, like the Central Armed Police Forces (CAPFs). Allowances: The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH- Max to include Siachen Allowance. The current Siachen Allowance per month and the revised rates recommended are as follows:

Present Proposed i. Service Officers ₹21,000 ₹31,500 iii. JCO/ORs ₹14,000 ₹21,000 This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance. House Rent Allowance: The Commission has recommended that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent. In the case of Personnel Below Officer Rank (PBOR) of Defense, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorized married establishment (above the age of 25 years and serving in family station); hence many users are being deprived. The HRA coverage has now been expanded to cover all. Allowances not mentioned in the Report are deemed to cease to exist. Emphasis has been placed on simplifying the process of claiming allowances. Advances: All non-interest bearing Advances have been abolished. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to ₹25 lakhs from the present ₹7.5 lakhs. Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution was also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Present Proposed

Monthly Insurance Monthly Insurance Level of Employee Deduction Amount Deduction Amount (₹) (₹) (₹) (₹) 10 and above 120 1,20,000 5000 50,00,000 6 to 9 60 60,000 2500 25,00,000 1 to 5 30 30,000 1500 15,00,000

Medical Facilities: Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended. Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis. All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS. Pension: The Commission has recommended a revised pension formulation for civil employees including CAPF personnel as well as for Defense personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement. The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix. This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent. In the case of defense forces personnel this amount will include Military Service Pay as admissible. Fifty percent of the total amount so arrived at shall be the new pension. An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension. The pensioner will get the higher of the two. Gratuity: Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent. Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime. Ex-gratia Lump sum Compensation to Next of Kin: The Commission has recommended the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defense forces personnel and civilians including CAPF personnel. Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defense forces personnel. New Pension System: The New Pension System actually means no formal pension to any employee. However, the employee will be required to earn his/ her own pension by contributing towards it during his/ her service. Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressed mechanism. The New Pension System is not applicable to the armed forces personnel. 84

Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.

Why is the Military Unhappy with the 7th Pay Commission Report? Bureaucrats hold the Edge: An edge is presently accorded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) for promotions and drawing of emoluments. The protocol and status of the defense officers has been progressively downgraded e.g. The service chiefs' from 2nd position at the time of independence have been downgraded to 12th position. The Defense Pay Matrix in 7th Pay Commission has only 24 pay levels; on the other hand, the bureaucratic pay matrix has 40 levels. Due to this, not only the salary hike gets stagnated after some years of service, but the pensions which defense personnel draw is Rs 20,000 lower than civil employees after retirement. Disparity in Allowances with the Civil Counterparts: The demand to provide allowances at par have also not been taken into ACCOUNT. Civilian employees are entitled to large number allowances, which are not provided to defense personnel. For example, a CAPF DIG posted in Leh, will get Rs 57,000 as part of allowance. Whereas, a brigadier posted in the same region gets only Rs 17,000 allowance. Less Disability Pension: The demand of military employees to increase the disability pension to match with that provided to the bureaucrats was turned down. While an Additional Secretary would get Rs 60,000 as disability pension, a Lt General would earn only Rs 27,000. Disparity in Risk-Hardship Allowance: A civilian bureaucrat from the All India Services draws 30 per cent of his salary as "hardship allowance" when posted anywhere outside the comfort zone, e.g. a senior IAS official posted in a city in northeast will draw much more as "hardship allowance", compared to the Rs 31,500 per month drawn by military officers in Siachen. Non Functional Up gradation (NFU) for Organized Group ‘A’ Services: One of thy demands of the armed forces was that NFU availed by the entire organized Group `A‟ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defense forces. NFU applies to personnel who have got superseded for promotion, however, their pay and allowances are protected and they continue to get the emoluments as being received by their superior, who superseded them. However, this demand has been turned down. Superannuation: The military recommended the age of retirement for all personnel of the forces to be 60 years uniformly. However, the demand has not been agreed to. Suggested Method of Calculation of New Pay Structure: 7CPC Previous Basic Pay as per the Pay Band x 2.57 (fitment component as given by 7 CPC) = A (New Basic Pay, check the „Level‟ to which it corresponds in the New Pay Matrix). A + 15500 (New Military Service Pay) = B. 85

B X 3% (first increment applicable with effect from 01 Jan 2016) = D. D + Entitled Allowances = New Pay. Likely Pay Structure: Newly Commissioned Defense Officer Step-I Previous Basic Pay as per Sixth CPC: (Grade Pay + Band Pay in Band- III) = 5400 + 20500 = Rs 25900. Step-II Multiply the above figure with 7th CPC Fitment Formula 2.57 25900 x 2.57 = Rs 66,563 (New Basic Pay). Step-III Add the new Military Service Pay (Rs 155000/-) to it: 66563 + 15500 = Rs 82,063 Step-IV 82063 x 3% increment as on 01 Jan 2016 = 82063 + 2461 = Rs 84,525. Step-V New Pay: Rs 84,525 + Entitled Allowances Conclusion The Pay Commission recommendations, once implemented, are expected to boost the consumption demand, and in turn growth, especially in the automobile sector and a very sluggish housing sector. Though availability of more money in the market will usher in inflationary trends, and greater outflow from the government coffers will have serious repercussions on fiscal deficit of the government which has been set at 3.5 percent of GDP. However, as predicted by the economists, the net impact of the implementation of the recommendations of the pay commission is going to be positive on the econom

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

23) BREXIT - BRITAIN IN A TAILSPIN

On the eve of the D- Day landings in Normandy, way back in 1944, the British PM Sir Winston Churchill famously remarked to berate the French President Charles de Gaulle- “Every time we have to decide between Europe and open sea, it is always the open sea, we shall choose."The anecdote was seized upon by Brexit campaigners during the last month as a proof that the British psyche has always been Eurosceptic. The cult of Churchill did give a boost to the 'Leave' group. Of the 33.5 million votes cast at the referendum- a turnout of 72%, compared with 66% at the 2015 General Elections - 17.4 million voted for 'Leave', and 16.1 million for 'Remain'. Last minute opinion polls had suggested a 52-48 split in favor of staying in European Union. In the event, however, the equation was reversed. The final result was 'Leave'- 51.9% and 'Remain'- 48.1%. Prime Minister David Cameron had finished digging his own grave. Hours before the referendum a bold banner screamed-" Let's put the 'Great' back into Britain. Vote out and be great again."Like the proverb- 'Truth is the first casualty of a war'- the reason Great precedes Britain, is simply a throwback to the days when "Britannia Major" needed to be distinguished from "Britannia Minor" (Brittany in France).The results threw Britain in a tailspin- London, the capital of Britain, stood separate- 60 % voting to remain with EU. Scotland and Northern Ireland both chose to stay in EU, so did small pockets of liberalism, cities like Oxford, Cambridge and Norwich. The most notable fact is - While 75 % of voters aged 18-24 wanted to remain, 61 % of those above age 65 did not. The irony is- future of youth 87

of Britain was ultimately decided by elders, who are nearer to their graves whereas the youth were deprived of deciding for their long future. IMMEDIATE CONCERNS OF UK Boris Johnson the leader of the 'Vote Leave ' group and now the expected successor of Cameron, has already mellowed down his victory speech-" We cannot turn our backs on Europe; we are part of Europe; our children and grandchildren will continue to have a wonderful future as Europeans."Now that the rhetoric needed to be cemented by reality, the 'Vote Leave' group seemed to backtrack from three of their major campaign promises:- 1. During campaign they promised an extra £ 350 million for the NHS clampdown on immigration and a quick withdrawal from the EU. However, after the results, UKIP leader Nigel Farage said it was a mistake to claim that they would be able to stop the UK's £350 million weekly contribution to the EU and invest it in the fund- starved NHS. 2. He further announced that if people think that there is now going to be zero immigration from the EU to Britain, another campaign high-light, they are going to be disappointed. 3. During the campaign the 'Vote Leave' group leaders promised they would immediately invoke Article 50 of the Lisbon Treaty, which would trigger a speedy break-up from the EU. However they stopped on their tracks now, calling for a "period of calm". Dr Liam Fox, a prominent leader said-" it does not make any sense to trigger Article 50 without proper planning and road map ahead". Social media is buzzing with angry responses from British. These statements were mocked as the speediest' U-turns' in British political history. RESPONSE FROM EU A rude shock greeted the British, which came from across the English Channel. European Council President Donald Tusk and European Commission President Jean-Claude Juncker called on the UK to start Brexit with immediate effect. They said-" Any delay would unnecessarily prolong uncertainty". The Mirror came with a headline-" EU Bosses order Britain to pack their bag and get out now". The EU leaders would like it- to be a quick and amicable divorce. But ironically the British rather irritatingly, seem to be in no hurry to quit. The British have already set a timetable of two years to carry out new trade negotiations. The tremors of Friday event have angered Scotland where majority voted to remain in the EU. There could be a move by Scotland to remain in EU alone. In that case Scotland may have to adopt Euro, encouraging the country to seek a referendum on independence from the UK- an unseen crisis lurking in the dark, for Britain. To make matters worse a petition called "Lon dependence" has asked Londoners to join the EU on its own." London is an international city, and we want to remain at the heart of Europe"- states the petitioners which is fast gaining momentum and public support. CONCLUSION The world's oldest democracy has stunned the world, even itself, by choosing to leave EU. After the Hitler's invasion, I feel this is the most crucial crisis faced by Britain. Many horrors are waiting to dawn upon the beleaguered nation. Economic recession, Revival of Scottish Independence struggle, a movement to reunite the two Irelands - are a few. It's time for caution and meticulous planning to draw a realistic and futuristic road map, for the Britain.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

24) Will 100% FDI in Defense Sector Actually Benefit India?

Introduction The government has opened up the defense sector allowing foreign companies to own as much as 100% equity in the local defense sector through the government approval route in cases where it is likely to result in access to modern technology. The current foreign direct investment (FDI) regime permits foreign companies to own 49% in Indian units through the automatic approval route. The Long-term Integrated Procurement Plan of the government gives out the planned procurement right up to 2027. To meet this requirement internally, the industry needs a capital of more than Rs 50,000 core over the next three years. The defense Public Sector Units (PSUs) are in no position to make this investment and the Indian private industry may not find this high risk investment lucrative enough due to the fund intensive requirement of developing expertise through R&D / transfer of technology from foreign sources. Implications of 100% FDI in Defense Sector The existing policy on FDI requires the foreign Original Equipment Manufacturers (OEMs) to form joint ventures with domestic firms if they want to establish a manufacturing base in India. However, once the policy regarding 100% FDI in defense comes into force, an OEM can independently plan and implement operations in India. Thus, the new policy will reduces the dependence of OEMs on domestic manufacturers.

In other words, the new guidelines will automatically bring in greater competition for domestic firms, who will have to match up in every respect with their foreign counterparts. Advantages of 100% FDI in Defense Collaboration with foreign OEM will ensure availability of state-of-the-art and cutting edge technologies for the defense forces. Besides, it will serve as a catalyst to boost local manufacturing in India. Moreover, it will also promote India centric R&D to develop and deploy solutions catering specifically to the country‟s security needs, like, weather conditions, terrain and ergonomics. Defense manufacturing in India will be able to create couple of million jobs, which in turn will boost up the country‟s GDP. Bringing in 100% FDI will create a competitive atmosphere for India‟s „white elephant‟, the Defense Research and Development Organization (DRDO) and its agencies, which would then be pushed towards bringing in path-breaking products. The R&D within India will get a boost to develop cutting edge equipment and the Intellectual Property Rights of the designs developed through FDI by the joint ventures will be retained within the country. By allowing FDI in defense, India can ensure that companies deliver what they have promised. Many a times, there is a mismatch between what is promised and what is delivered. Considering that India imports most of its equipment and weapon systems, there will be a huge savings to the State exchequer as the cost of manufacturing in India will be low. The after sale service of the equipment will be better. Presently, there are many categories of equipment which are lying off road for want of spares and technical support. Many types of ammunition used by our equipment is not available in the world market, for various reasons, like, equipment has become obsolete, OEM has shut down, etc, and hence, that weapon system has become defunct. This problem will also not occur, if it is being manufactured in collaboration in India. Finally, FDI in defense will give a quantum boost to indigenization of equipment. Given the diversity of the wherewithal available in India, perhaps we could look at exporting rather than importing the same in future. Disadvantages of FDI in Defense It may be wishful thinking to assume that the foreign companies would transfer technology to India and give us their latest and best technologies. It is reasonable to say that DRDO has not delivered much in the last 60 odd years. However, instead of overhauling and making it productive, 100% FDI in defense will make DRDO irretrievably defunct. In other words indigenous R&D will get a beating and we will remain heavily dependent on foreign technologies. Further, it will be very unfair that 100% FDI in defense is being implemented even before giving a fair chance to the Indian private sector. We could have incentivized the defense manufacturing for the Indian private players first, as they cannot really compete with the foreign companies.

It has been proven by Indians time and again that given a chance and encouragement, they can deliver the same technology much cheaper, e.g. Chandrayaan and Mars mission. Lastly, there could be an element of security risk by inviting FDI from foreign firms. Conclusion The government‟s decision to allow 100% FDI in defense sector, to my mind is a win-win situation for all, as it will facilitate the much needed up-gradation of the equipment profile of our defense force in a much shorter timeframe with state of art equipment, obviate corrupt practices, which often delays and muddles critical defense deals, create jobs, skill youth and draw foreign exchange to bolster economic growth.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

25) Prevailing Situation in J&K – An Opportunity for Terrorist Groups to Revive Militancy Introduction The recent incidents of large scale mob violence in Jammu and Kashmir occurred due to the killing of 22-year-oldBurhan Wani from south Kashmir‟s Tral area by the security forces. Wani, was a recruitment icon for Hizbul Mujahideen and its glamorous face on social media. He was widely acclaimed as the poster boy for militancy in J& K. Burhan Wani was involved in motivating young Kashmiris to join Hizbul ranks. He was also a proclaimed offender as per the police records and his name figured in a string of police cases, starting with one of weapons snatching at a very young age. He was killed in a joint operation at Kokernag, Anantnag, around 83 km from Srinagar on 08 July 2016. The word about Wani‟s death purported to be an extra-judicial killing, spread like wild fire and resulted in major clashes between the locals and the security forces. Clashes in the Valley have resulted in more than 30 deaths and left over 1400 protesters wounded in the past few days. Details of the Encounter The intelligence agencies had information that some Hizbul terrorists were holed up in the Kokernag hideout. It was not known at that stage that Burhan Wani was also present in the hideout. Based on the above mentioned actionable information, on 08 July, a joint operation was conducted by the J&K Police's special operations group (SOG), Rashtriya Rifles and CRPF at Kokernag, Anantnag. The intelligence agencies said later, that the killing of Wani‟s in the encounter was a “bonus”. Two other terrorists were killed along with him, including Sartaj Ahmed Shaikh, who had earlier served a jail term in terror cases but went back to militancy after his release. Two policemen from the SOG also got injured during the encounter. How the Situation Got Aggravated Following his death, Hurriyat leaders called for a strike and three days of mourning. 50,000 people gathered to attend the funeral procession of Burhan Wani. Thousands of people took to the streets, defied curfew and clashed with the security forces. Rajendra Kumar, a senior police official, told reporters in Srinagar that 100 members of law enforcement agencies had been wounded and three were missing after clashes with militants. The miscreants also threw a police vehicle into River Jhelum, south of Srinagar, killing the officer inside. Adding fuel to fire, Pakistan‟s Foreign Office, while condemning the killing of Wani, called it”Wani‟s murder” and an “extrajudicial killing”, and commented that “the murder of Wani and scores of other innocent Kashmiris is deplorable”

. Reasons for Anger and Aggression Two things which uniquely stood out during the protests by the local Kashmiri‟s this time around are: Firstly, unlike as in 2008, 2009 and 2010, when the people agitated against the alleged human rights violations or excesses by security forces, this time the anger was more towards the establishment and the law enforcement agencies. Secondly, ever since the early days of militancy in 1990, that the protests have never spread so fast covering the length and the breadth of the entire Valley. Therefore, it may be deduced that the anger and anguish is more to do with the disillusionment amongst the youth of Kashmir rather than just an expression to legitimise militancy. In the words of senior CPM leader M Y Tarigami who represents Kulgam, an area in South Kashmir that has seen massive protests: “This is happening only because there is a lot of accumulated anger which is deep-rooted. This boy (Burhan) has become a symbolic expression of whatever is happening here and there is no denying that he has a following among youth.” Thus, the demonstrations and protests are more of a pent up anger and aggression spewed by the locals for want of better opportunities, employment and deprivation with respect to basic necessities required to live a dignified living. Prevailing Situation in J&K – An Opportunity for Terrorist Groups to Revive Militancy Intelligence reports suggest that, there are 26 terror training camps across the Line of Control (LoC) being run by LeT, Hizbul Mujaihideen and JeM in Muzaffarabad, Muridke Mansera and Bahawalpur from where possible infiltration can be launched. Presently, only around 145 militants are active in Kashmir, out of which local recruits are just 91. In 2013 also, the above said terrorist groups had used Parliament attack convict Afzal Guru‟s hanging to radicalise and recruit young men. Taking advantage of the massive protests across the Valley and the deteriorating conditions of law and order, the operatives from Jaish- e- Mohammed and Lashkar-e-Taiba may attempt to sneak into India and head to areas where locals are coming out in large numbers to protest against the death of Wani to recruit new cadres.Especially now, that the way people have reacted to a local militant‟s killing, making him a hero, it will attract more youngsters towards militancy. There are intelligence inputs that Lashkar-e-Tiaba (LeT) backed by the Pakistani forces has set up base in the areas merely 2-3 kilometers from the border, so that fidayeens can cross over in a matter of minutes. It is also possible for these terrorists to make an attempt to penetrate local protests and launch attacks on the security forces, e.g. On 10th July, three policemen were injured as militants hurled a hand grenade towards the vehicle of the superintendent of police of Kashmir‟s Shopian district, but the explosive went off on an escort vehicle and the IPS officer escaped unhurt.

Intelligence reports suggest that with more infiltration from across the border, the situation can worsen in the coming days. Conclusion The scale of support that the recent incident has generated to accord legitimacy to militancy and the magnitude of the protests against the state machinery are indicative of a growing disillusionment amongst the youth of Kashmir. There is an urgent need to keep the anti-national elements and terrorists at bay, stabilise the internal situation and sensitize the youth about the pitfalls of violence. Concurrently, carryout actions on the ground, both active and passive to bring about a visible perception change to rein in the situation.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

26) Major Reasons for Growing Rift between US & Russia and the Emerging World Order

Introduction The balkanization of the Soviet Union led to the breakup of the Union into 11 Commonwealth of Independent States (CIS) in December 1991. The same resulted in an ideological, political and economic crisis in the region as the collective strength of the USSR got depleted. Russia appeared much paler in strength than its arch rival United States of America. In 1955, the Warsaw Pact was signed as a treaty of Friendship, Co-operation, and Mutual Assistance, by the Soviet Union and seven other Soviet satellite states in Central and Eastern Europe to counterweight the NATO during the Cold War era. The agreement on the formation of North Atlantic Treaty Organization (NATO) was signed in Washington, D.C. on 4 April 1949. The words of the first NATO Secretary General, Lord Is may, stated in 1949, still find resonance, while he described the organization's goal: "to keep the Russians out, the Americans in, and the Germans down. The disintegration of Soviet Union in 1991, also led to the dissolution of Warsaw Pact, further weakening the military influence of Russia in the region. However, the traditionally rivalry, a legacy of the Cold War, between US and Russia still draws popular public support for the political masters of both nations. India was conventionally closer to USSR during that period, and Pakistan was always supported by the United States.

However, the economic downturn has forced US to look towards India, which is a huge consumer base for its manufacturing sector and India too has drifted towards US owing to congruency in their goal to defeat terrorism in the region. Consequently, Russia-China-Pakistan have got knotted up into a marriage of convenience; Russia to survive the economic sanctions imposed by Europe and US needs a market to sell oil and other products, China to access and satisfy its growing energy demands from Russia and its compulsion to feed Pakistan so that it can continue to be a thorn in the back of its major economic competitor, India and Pakistan feeling orphaned by US is like a polio infected chid that needs extrinsic support of China and Russia to stand. Major Reasons for Growing Rift between US and Russia There are broadly three major reasons for the growing divide between US and Russia during the past two years: Armed Intervention by Russia in Ukraine and Takeover of Crimea On 26 Feb 2014, pro-Russian forces, supported by armed Russian troops gradually took control over the Crimean peninsula and ever since then they control all traffic between Crimea and continental Ukraine. Eastern Ukraine, mainly, Donetsk and Luhansk regions, which is demanding for secession, is also being morally and militarily supported by Russian armed forces. Russia‟s core strategy is to maintain a viable buffer between its border and the limit of influence of the NATO forces to safeguard its territorial integrity. On the contrary, US and its European allies consistent Endeavour to shrink the buffer between Euro zone countries and Russia and posture NATO forces to strategically dominate Russian borders. Hence, countries like, Ukraine and Georgia provide a strategic military vantage point to the US- Euro Zone forces to overlook and contain Russia. Conflict of Interests in the Middle East The rebel forces against President Assad‟s regime in Syria grew in strength over the years and were covertly supplied with sophisticated weaponry from US by Saudi Arabia, the closest US ally in the region and the biggest Sunni country of Middle East that wants to see the ouster of the Shiite regime of Assad. Russia, on the other hand, has had strong traditional ties with President Assad's Syrian government and has helped Syria in the past by supplying weapons and more recently, in carrying out devastating air strikes against the rebels. The primary bone of contention between both the countries is the access to the oil reserves in the region. Tacking terrorism is only incidental. Weakening the Opponent - a Legacy of Cold War Era The political masters, both US and Russia, draw a lot of mileage by demonstrating own strength in the face of the other side or at least making the other side look weak in the global arena. The same is perhaps a legacy of the Cold War era. Russian economy has been crippled because of US-EU sanctions post the Ukraine crisis, falling price of oil, which is Russia‟s major source of income, and the impact of fast depreciating Russian currency, leading to flow of investments out of the country (capital flight). 96

Russia is said to be losing $40 billion a year due to sanctions, around $100 billion on account of falling oil prices, and some $130 billion in capital flight. Further, inflation in the country is expected to be in double digits by the end of 2016. European Union is exploring alternate sources of gas for its domestic requirements to punish Russia on account of its military intervention in Ukraine and hence, Russia has shelved its $50 billion South Stream gas pipeline project, which was to run across the Black Sea to Southern and Central Europe. Conclusion The ethnic violence which is consuming the world today has not even spared the most manipulative Americans. The increasing racial attacks and yesterday‟s shooting down of 12 white policemen in Dallas by a Black, holds testimony to the fact that „heat is on‟ even in US. It may not be a surprise, if it is discerned sometime, that the instigation of Blacks and other forms of racial abuse, the pressure of not allowing gun control in the country and occasional terrorist attacks in US are being sponsored by Russians and other enemies of US that is has accumulated over the years due to its characteristic of meddling with the affairs of others.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

27) Significance of the Supreme Court Judgment of 13 July 2016 Reinstating Congress Led Government in Arunachal Pradesh Introduction The Supreme Court in its landmark judgment on 13 July 2016 restored the Nabam Tuki led Congress government in Arunachal Pradesh. The SC also quashed Governor Jyoti Prasad Rajkhowa's decision issued on 16 December 2015 to advance the state Assembly session by a month in which opposition legislators including the rebels, “removed” Tuki and house speaker Nabam Rebia. It is now common knowledge that the BJP is using every possible ethical and unethical means to destabilize the governments in Congress led states. The impressive win in Assam has bolstered the BJP‟s attempts to go for a Congress-Mukt Bharat in the north-east. Currently, the Congress is in power in Manipur, Meghalaya and Mizoram while BJP allies rule Nagaland and Sikkim. Tripura has a Left Front government. However, the method used by the BJP to dismiss the democratically elected Arunachal Pradesh government and impose Presidential Rule in the State was termed by the bench of the apex court as “illegal and unconstitutional”. Another example from the recent times is that of Uttrakhand, where again on 12 May 2016, the apex court has reinstated the Congress led government of CM Rawat, which was dissolved by the Governor after nine of its MLAs had rebelled. What had led to the Crisis The Legislative Assembly of Arunachal Pradesh comprises of 60 members, who are directly elected from single-seat constituencies. The State Assembly elections were held in 2014 and the Indian National Congress emerged as the single largest party with 47 seats in the 60-seat legislature and Nabam Tuki became the Chief Minister of the State. In December 2015, out of the total of 47 Congress MLAs, 21 rebelled against the chief minister and in an act of total anarchy took over and locked up the Legislative Assembly building in Itanagar. Governor Rajkhowa held a "special session" (unscheduled and advanced by a month) at a community centre to vote against Mr Tuki and removed him from the chair on 16 December 2015. The Speaker, Mr Nabam Rebia's challenged the decision in the in court, pertaining to the governor's right to call an assembly session. Meanwhile, the assembly was suspended and the government was dissolved by President Pranab Mukherjee on 26 January 2016, imposing President‟s Rule.

Later, Congress dissident leader Kalikho Pul was sworn in as the ninth chief minister of Arunachal Pradesh supported by 20 Congress rebels and 11 legislators of the BJP on 19 February 2016. Supreme Court Judgment of 13 July 2016 The five-judge Constitution Bench, in a unanimous and unprecedented verdict, quashed all the decisions of the Governor that had led to imposition of the President‟s Rule in the state, calling his actions as “illegal” and in contravention to the Constitutional provisions. The judgment proclaimed that, “All steps and decisions taken by Arunachal Pradesh legislative assembly pursuant to the Governor‟s decisions are unsustainable and the same are therefore set aside.” Further, the Bench commented that, "the Governor must remain aloof from any disagreement, discord, disharmony, discontent or dissension, within individual political parties." The Bench turned back the clock and held that, status quo ante as prevailing on December 15, 2015, will be restored. Though Chief Minister Nabam Tuki will have to prove his majority on the floor of the house, but it is surely an apt and timely correction done by the Apex Court. Meanwhile, a defiant Kalikho Pul, who plans to move a review petition, said that "the government is run by numbers. The court doesn't run the government, numbers do. My government will remain." Conclusion Article 356 of the Constitution, imposing President‟s Rule in a state, can be invoked only if the President is satisfied that there are grounds for believing that the governance of the state cannot be carried on in accordance with the Constitution. However, in the case of Arunachal Pradesh, imposition of President's rule was contrary to the constitutional framework, as the case was still being heard in the Supreme Court. The emerging trend of invoking Article 356 to dissolve the state assembly‟s (especially, Congress led governments) is highly detrimental to the federal structure of our democracy and the independence to govern by the States. Arunachal Pradesh as we all know is a strategically located on the border of China, which has often staked its claim on it, calling it South Tibet. It is very essential that our national parties and leaders value the security, sanctity and sovereignty of the nation above their political ambitions

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28) THE FAILED COUP - TURKEY

Back Ground Turkey as a nation, was born in 1923.Though the nation had a Muslim majority, ironically the state experienced radical reforms which steered away the nation from a Muslim way of living. Madrasas were banned, along with religious orders, the Persian script was replaced by the Latin alphabets; the display of religious symbols from public places were banned; western style of dresses were promoted by law; Islamic law was replaced by European civil code and to top it all, women were granted suffrage. However, in 1946, when a democratic multi-party system came into power, religion again became a tool to compete for votes-with disastrous consequences for the Republic's civic fabric. Subsequently, in 1948, voluntary religious education was added to the primary school curriculum and seminaries to train clerics were opened- like 'College of Theology' at University of Ankara. In 1950, Adnan Menderes' right- wing Demokrat Partisi came to power and ushered in a tide of state-backed religious rebuilding. Clerics emerged stronger in the ensuing years. The Turkish Army struck back in 1960, imprisoning Menderes and outlawing the Demokrat Partisi. Though the Army in its pursuit of economic modernization brought development to Turkey, the hardships faced by the people gave the Islamists renewed opportunity. In the late 1960s, Mehmed ZahidKotku, a Sheikh of the Naqashbani Sufi order- from which the 'Gulen' cult branched off- began holding widely attended discourses, blaming westernization of Turkey as the key problem area of the nation and evoked the glories of its imperial past. Turkey saw its second military coup in 1971, this time Army became increasingly dependent on the Islam for legitimacy- in part the result of a US embargo that followed the occupation of 100

Turkish Cyprus. Another military coup followed in 1980,and the military junta nationalized Islam, ordering state-run religious services and religious education was made compulsory in public schools.

The Erdogen Rule From 2003- 2009, during Erdogen's early phase as Prime Minister, he presided over what some scholars have called- Market Islamism.-pushing cultural causes, like the head scarf or the religious education, but with in a frame work of economic liberalization. Long standing disputes with Syria over Kurdish issue were solved. Erdogen in the bargain earned the wrath of the religious faction of the Army. Islamic leaders appeared to be patiently waiting for a chance to strike. In 2009 came the Arab Spring- and the moment of destiny Islamists like Gulen had long fantasized of. The new foreign minister Ahmet Davutoglu declared that Turkey sought a 'born-again Ottoman Empire', and would revive its lost glory by which Istanbul would 'reintegrate the Balkan region ,Middle East and Caucasus' through Islamic parties. The plan back fired badly. Egypt's military, panicked by the Islamist excesses of its elected government, cracked down hard. Saudi Arabia, fearful of the growing power of the Muslim Brotherhood, threw its weight against the jihadists. Most important fall out was- the Turkish backed rebellion in Syria degenerated into chaos, Islamic State and al-Nusra swatted Turkish-backed Islamists to take centre stage. Iran backed Syria and taking advantage of the chaos, Turkey's historic adversaries, the Kurds, emerged empowered. Faced with complete failure of these policies ,a slowing economy, Islamist terrorism at home and a growing Kurdish insurgency, Erdogan is now trying to turn the clock back-but to no avail. The Military Coup Hocaefendi Fethullah Gulen, Lord Master of the secretive mystic order Gulen, made his plans to topple the government in the summers of 1998 and to transform Turkey in to an Islamic State. He inducted his followers deep into the power centers of Turkey. The failed military coup led by 8 Army Generals and 8 other Air Force Generals are alleged by the government to have acted on Gulen's orders, claiming 265 lives. However secular faction among the Army foiled the coup attempt strongly supporting Erdogen. Conclusion In recent weeks, Turkish President Recep Tayyip Erdogen has angered many Islamist leaders by his volte-face policies. He restored ties with Israel, apologized to Russia for shooting down a jet operating over Syria and even warmed-up with Egypt- a country bitterly hostile to the Muslim Brotherhood. The radical secularism of Turkey spear-headed by the founding Patriach - Mustafa Kemal Ataturk triggered the Gulen Islamic movement, culminating in this coup to take over the nation and convert it into an Islamic State. Turkey is a nation in turmoil-The World nations are watching the developments of Turkey with apprehension.

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29) The Child Labour (Prohibition and Regulation) Amendment Bill, 2012 Passed in Rajya Sabha Introduction The International Labor Organization (ILO) defines „child labor‟ as “the work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development”. Further, it refers to work that is mentally, physically, socially or morally dangerous and harmful to children, or work whose schedule interferes with their ability to attend regular school, or work that affects in any manner their ability to focus on school or experience a healthy childhood. In India, The Child Labor (Protection and Regulation) Act 1986 prohibits employment of children below 14 and 15 years in certain hazardous employments. Presently, there are 83 such employments, occupations or processes in which the employment of children is banned. However, there are no laws to regulate the working conditions of children in most of the employments where they are not prohibited from working and are working under exploitative conditions. The 1998 national census of India estimated the total number of child labour, aged 4–15, to be at 12.6 million, while the 2011 national census found the total number of child labor, aged 5– 14, had increased to 4.35 million, out of a total child population of 253 million in that age group. The major sectors in which child labor is largely prevalent in India are, Diamond, Firework, Silk, and Carpet, Mining and Domestic labor. The Child Labor (Protection and Regulation) Act 1986 The Child Labor (Prohibition and Regulation) Bill, 1986 having been passed by both the Houses of Parliament received the assent of the President on 23rd December, 1986. Objectives of the Act include: (a) Ban the employment of children, i.e. those who have not completed their fourteenth year, in specified occupations and processes. (b) Lay down a procedure to decide modifications to the Schedule of banned occupations or processes. (c) Regulate the conditions of work of children in employments where they are not, prohibited from working. (d) Lay down enhanced penalties for employment of children in violation of the provisions of this Act, and other Acts which forbid the employment of children. (e) To obtain uniformity in the definition of "child" in the related laws. Other Existing Legislations to Prevent Child Labor

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The Factories Act of 1948: The Act prohibits the employment of children below the age of 14 years in any factory. The law also legislates as to whom, when and how long can pre-adults aged between 15–18 years can be employed in any factory. The Mines Act of 1952: The Act prohibits the employment of children below 18 years of age in a mine. The Juvenile Justice (Care and Protection) of Children Act of 2000: This law made it a crime, punishable with a prison term, for anyone to procure or employ a child in any hazardous employment or in bondage. The Right of Children to Free and Compulsory Education Act of 2009: The law mandates free and compulsory education to all children aged 6 to 14 years. This legislation also mandated that 25 percent of seats in every private school must be allocated for children from disadvantaged groups and physically challenged children. Penalties (1) Whoever employs any child or permits any child to work in contravention of the provisions of Section 3 of the Act shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both. (2) Whoever, having been convicted of an offence under section 3, commits alike offence afterwards, he shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years. (3) Whoever- (a) Fails to give notice as required by section 9; or (b) Fails to maintain a register as required by section 11 or makes any false entry in any such register; or (c) Fails to display a notice containing an abstract of section 3 and this section as required by section 12; or (d) Fails to comply with or contravenes any other provisions of this Act or the rules made there- under, shall be punishable with simple imprisonment which may extend to one month or with fine which may extend to ten thousand rupees or with both. National Child Labor Project (NCLP) In 1987, India formulated a National Policy on Child Labor. This Policy aims to adopt a gradual & sequential approach with a focus on rehabilitation of children working in hazardous occupations. It envisioned strict enforcement of Indian laws on child labor combined with development programs to address the root causes of child labor such as poverty. In 1988, this led to the National Child Labor Project (NCLP) initiative. This legal and development initiative continues, with a current central government funding of Rs. 6 billion, targeted solely to eliminate child labor in India. The Child Labour (Prohibition and Regulation) Amendment Bill, 2012 The Bill seeks to amend the Child Labor (Prohibition and Regulation) Act; 1986.The major amendments proposed are as given below:

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 The existing Act prohibits employment of children below 14 years in certain occupations such as automobile workshops, bidi-making, carpet weaving, handloom and power loom industry, mines and domestic work. In light of the Right of Children to Free and Compulsory Education Act, 2009, the Bill seeks to prohibit employment of children below 14 years in all occupations except where the child helps his family after school hours.  The Bill adds a new category of persons called “adolescent”. An adolescent means a person between 14 and 18 years of age. The Bill prohibits employment of adolescents in hazardous occupations as specified (mines, inflammable substance and hazardous processes).  The Bill recommends that the central government be empowered to add or omit any hazardous occupation from the list included in the Bill.  The Bill enhances the punishment for employing any child in an occupation. It also includes penalty for employing an adolescent in a hazardous occupation.  The penalty for employing a child was recommended to be increased to imprisonment between 6 months and two years (from 3 months-one year) or a fine of Rs 20,000 to Rs 50,000 (from Rs 10,000-20,000) or both.  The penalty for employing an adolescent in hazardous occupation is recommended to be imprisonment between 6 months and two years or a fine of Rs 20,000 to Rs 50,000 or both.  The government may confer powers on a District Magistrate to ensure that the provisions of the law are properly carried out.  The Bill empowers the government to make periodic inspection of places at which employment of children and adolescents are prohibited. Rajya Sabha Passes the Child Labor (Prohibition and Regulation) Amendment Bill, 2012 On 19 July 2016, The Child Labor (Prohibition & Regulation) Amendment Bill, 2012, was approved by the members of Rajya Sabha. Union Labor Minister Bandaru Dattatreya informed that, “The Bill is aligned with the statues of the International Labor Organization (ILO) convention”. Further, Mr Dattatreya also promised to move forward with the National Child Labor Project by spending more funds on it. Conclusion Nobel Laureate Satyarthi‟s NGO Bachpan Bachao Andolan has been relentlessly working and rescuing children working under hazardous condition. In last five years his organization had rescued more than 5,254 children. Despite best efforts from various quarters, child labor remains a major challenge for India. The new legislation offers a positive hope to check this age old menace.

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30) US Presidential Elections-2016 and its Impact on India Introduction President Barack Obama, of the Democratic Party, is ineligible to seek re-election to a third term due to the term restrictions imposed by the Twenty-second Amendment to the United States Constitution and his term will expire at noon on 20 January 2017. Hence, in January 2017, the world‟s most powerful nation will elect a new leader, who is not only the head of the state, but also the commander-in-chief of the largest military on the planet. The election race in most countries takes just a few weeks, but US presidential candidates undergo a long drawn process of negotiating primaries, party conventions and an Electoral College system that takes nearly one year to complete. Finally, at the end of this political marathon, each of the two political parties, i.e. Republican Party and Democratic Party, nominate one person to represent their party to contest the presidential election. American politicians say the way they elect their president is one of the most open and democratic processes in the world. However, to the outsiders it appears to be the most complex and baffling process. So, let us try and understand the election process that has been adopted by the United States of America. Sequence of Events Leading up to Election of the US President Step- I: Elections for Nomination as Presidential Candidate Any „natural born‟ citizen of the US, who is above the age of 35 years and has been a resident of US for 14 years can run for the president‟s post. However, not just anyone can credibly stand for elections. As, in the previous 70 years, every major party presidential nominee has been either a sitting or former US senator, governor, vice- president or a five-star general. However, the current Republican race has seen the rise of outsider candidates such as businessman Donald Trump and retired neurosurgeon Ben Carson who have not held any elective office earlier. On the other hand, Democratic Party has Hillary Clinton (a former first lady, New York senator and secretary of state) and Bernie Sanders (a member of Congress since 1989), who have more traditional presidential resumes. The candidates‟ after declaring their wish to stand for presidential election vie for the support of their party for nomination as a presidential candidate. For this purpose they hold campaigns over several months starting from February, which are called the „Primaries‟ and „Caucuses‟. During the Primaries/ Caucuses the voters in each of the 50 states of US, plus Washington DC and some US territories, select party delegates who have pledged their support for a particular presidential candidate.

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Primary and Caucus are basically two different methods of voting adopted by different states of America. The difference is that in the Primaries, the registered voters cast their votes through a secret ballot, while in Caucuses series of meetings are held in which voters show their support for candidates with an open show of hands. Usually only registered voters, affiliated with that specific party, can take part. Starting from February, the race usually reaches a climax on 01 March or 'Super Tuesday', with no less than 13 states holding primaries or caucuses for one or both parties on the same day. The primary election campaign lasts until about June, by which time the candidate who has amassed the support of maximum number of „delegates‟ from their respective parties wins the nomination for presidency. Step-II: Holding of Party Conventions The „delegates‟, as mentioned above are party members with the power to vote for that candidate at the party conventions which is held in July, where the name of the presidential candidates of each party is formally confirmed. The more state contests a presidential candidate wins, the more delegates will be pledged to support them at the convention. During the current elections, the Republican candidate will need the support of 1,237 delegates to win a majority, while the Democratic contender must secure the support of 2,383 delegates. Before or at the party convention, the nominee picks a running-mate or vice-president to join with him or her on the same ticket, and this choice is rubber-stamped by the convention. The running-mate may be sometimes chosen from amongst the defeated rivals. During the ongoing presidential elections, Republican Party has elected Donald Trump as its nominee; while the Democratic Party has chosen former first lady, Hillary Clinton to be its face in the Presidential elections. Donald Trump chose Mike Pence, ex-Governor of Indiana State, as his running mate on July 15, 2016. While, on July 22, Clinton announced that she had chosen Tim Kaine as her running mate. Kaine has experience both as a governor and a member of Congress. Step-III: Voting by Electoral College The Electoral College comprises of a total of 538 electors from all the states of US. Each state has a certain fixed number of these "electors" based on its population in the most recent census and is generally equal to the number of its Senators (two from each state) and Representatives in the US Congress (like our Parliament), e.g. California, the most populous state, has 55 electoral votes. A few small states and the District of Columbia have only three. The process for selecting Electors varies throughout the United States. Generally, the political parties nominate Electors at their State party conventions or by a vote of the party‟s central committee in each State. Electors are often chosen to recognize their service and dedication to the political party. They may be State-elected officials, party leaders, or persons who have a personal or political affiliation with the Presidential candidate. American presidential elections are always held on the first Tuesday after the first Monday in November. This year, it is on 08th November.

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Voters do not, technically, participate in the direct election of the president. When citizens vote for their preferred candidate, they are actually voting for the electors, who are pledged to one presidential candidate or the other. The Electors‟ names may or may not appear on the ballot below the name of the candidates running for President, depending on the procedure in each State. The presidential candidate who‟s more than 50% supporting or pledged electors win in different states, i.e. 270 out of 538 electors, finally wins the presidential elections. In almost every state (except Nebraska and Maine), the procedure that is followed is that the „winner takes it all‟, i.e. the person who wins the majority electors in New York, for example, will get all the 29 of New York's electoral votes, including those that he/she did not win will be counted in his/her favour. However, because of this system, a candidate can take the White House without winning the popular vote, such as in the 2000 contest between George W Bush and Al Gore. The advantages of the Electoral College system are that it requires the candidate to get a spread of votes from across the country and also gives greater weight to smaller states, which is one of the checks and balances the US constitution values. Step-IV: Voting by Electors The Electoral College then meets in the respective state capitals and votes for President and for Vice-President. Each elector can cast one vote and these votes are called the electoral votes. The electors are already pledged to vote for particular candidates for President and Vice- President. In most elections, all the electors vote in accordance with the pledge that they had initially made. However, it may so happen, especially in the case of closely contested elections that a "faithless" elector could cause real trouble by voting for the candidate that he had not pledged for. The issue would probably have to be then decided by the courts. Step-V: Declaration of Results and Inauguration of New President The results are formally declared to the Senate on 06th January. The new president is inaugurated on 20th January. Differences between Presidential and Parliamentary Form of Governments Presidential Form of Government: 1. The executive is completely separated from the legislature and the president may not even be the members of the legislature, e.g. President Barack Obama belongs to the Democratic Party, while the party in majority in US Congress is the Republican Party. 2. The executive is not accountable to the legislature, i.e. the President of US can take cardinal decisions like declaring war even without the approval of the legislature. Moreover, the legislature cannot remove the executive from power through no-confidence motion. 3. In the Presidential government, the same person is head of the state as well as head of the government. 4. In the Presidential system, the President is most powerful. 5. In the Presidential system, the President appoints persons from outside the legislature as minister. The ministers assisting the President could be eminent personalities from various walks of life, irrespective whether they are elected members of the legislature or not. 107

6. In the Presidential system, executive has a fixed tenure normally, the executive head (President) stays in power for the whole term. 7. Finally, the Presidential government is democratic, because the executive (President) is not accountable to the legislature.

Parliamentary Government: 1. The executive is not separated from the legislature. The members of council of ministers are the members of legislature. 2. The executive is accountable to the legislature. The executive loses power when it loses the confidence of the legislature. 3. In the Parliamentary government, one person is head of state (President or a monarch / Queen as in UK) while another person is head of government (Prime Minister). 4. In the Parliamentary systems, the Prime Minister is more powerful than the President, who is just a nominal head. 5. In the Parliamentary system, a minister has to be a member of the parliament. 6. In the Parliamentary system, the tenure of the executive is not fixed. The Council of Ministers is dismissed if it loses the confidence of the legislature before its tenure is over. 7. The Parliamentary government is more democratic, because the executive (council of ministers) is accountable to the legislature (Parliament). 8. There is less of separation of powers in the Parliamentary government, as the Parliament has more power vis a vis the President. 9. During war and other emergencies, the Parliamentary government is relatively less effective because power is not centralized in the hands of one person and the decision making gets delayed. Impact of US Presidential Elections on India The Democrats are traditionally against global trade and movement of goods, capital and outsourcing of labor to other countries, like India. On this account, the Democrats might not offer the best one for India. Moreover, at present the US Congress is controlled by the Republicans, who are in majority and hence, it makes sense for the Presidency also to shift to them to improve the effectiveness of the government. American government that is purposeful in its decision making will suit India‟s interest better. Republicans are more forthright when it comes to the policies on foreign trade and Republican presidential candidate Jeb Bush might be a good bet for India. However, the downside of Republican Party is that the rest of the Republican front line candidates range from being strange to outright crazy. Most of them have no experience in foreign policy or economics. Hillary Diane Rodham Clinton, who is the most likely presidential candidate from the Democratic Party, is ideologically a Republican for most practical purposes.

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Hillary has had good runs with Indian-Americans in the past and is a very experienced foreign policy hand. She supported India during its standoff with Pakistan and stood beside former Indian foreign minister S.M. Krishna and urged Pakistan to end terrorism from its soil. Her election as the next presidential candidate will also help in advancement of the important India-US nuclear deal which has always been backed by the Democratic Party. Besides, the republicans have always been critical of the H1B visa which they say hampers employment possibilities of Americans by outsourcing jobs to professionals from India and other countries. Certain republicans have also shown apprehensions about the unfair trade practices by India.

Conclusion Finally, whichever Party or candidate wins the presidential election in US, the impact on India may only be issue based and not broad based. In the present scenario of global economic downturn, the economic interests of each country dominate all other forms of affiliations. India is a huge consumer base for US manufacturing sector, including the Defense, hence both Democratic and Republican Parties cannot afford to ignore India.

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31) Implications of the Implementation of the Goods and Services Tax (GST) Regime

Introduction The Goods and Services Tax is a significant step towards indirect tax reforms, that will amalgamate a large number of Central and State taxes into one tax and prevent double taxation to pave the way for common national market. The first country that introduced GST was France in the year 1954. Presently, there are 140 other nations that follow the GST system. GST will reduce the overall tax burden of goods on the consumers from the current 25% to 30% to around 17% to 19%. Thus, it would reduce the cost of products for the end user. Besides, the reduced cost would make our products more competitive in the national and international market. Therefore, the new tax regime is likely to spur economic growth and it is estimated to increase the country‟s GDP by 1.5% to 2%. The Constitution amendment Bill for GST was introduced and passed by Lok Sabha in May 2015 and now, the final hurdle has been cleared, when the same was passed in the Rajya Sabha on 03 August 2016. A constitution amendment requires support of two-third of members present and voting, separately, in both the houses of the Parliament. The amendment will then have to be approved by 50 per cent of all the state assemblies. The Finance Ministry is targeting the date of 01 April 2017 for the final implementation of the Goods and Services Tax in the country.

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Since, only 240 days are left and several legislative steps, as well as negotiations on tax rate, and other loose ends are still required to be tied up, meeting the April 01 deadline will be a tough call for the government. Examining the GST At present, tax is collected through a tax credit mechanism on value-added goods and services at each stage of sale or purchase in the supply chain i.e. tax is paid while procurement of goods and services and subsequently, again value added tax is paid while selling the goods or services to the end user. Thus, the consumer bears this cumulative tax burden as he is the last person in the supply chain. The implementation of GST will lead to the abolition of other taxes such as Octroi, Central Sales Tax, State-level sales tax, entry tax, stamp duty, telecom license fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, etc, thus avoiding multiple layers of taxation that currently exists in India. Salient Features of GST The proposed mechanism which will be implemented entails a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction. CGST and SGST would be levied at rates, which will be mutually agreed upon by the centre and the states, through a body called the Council of GST, comprising of concerned representatives from states and centre. All goods and services, barring a few exceptions, will be brought into the GST base. There will be no distinction between goods and services. GST would be applicable on supply of goods or services as against the present concept of tax on the manufacturer on sale of goods or on provision of services, e.g. a supplier of raw materials, which may be required for the manufacture of certain goods by a company, will have to pay his share of the tax and the company while paying tax on the supply of the finished product to a retailers, while paying his share of the tax, can claim for deduction of tax already paid by his supplier of raw materials. It is in effect a self-collecting tax, since every company will get a deduction on the taxes already paid by its suppliers. Hence, the buyer more or less will force his supplier to pay his part of the tax to claim his (buyer‟s) deductions. A common threshold exemption would apply to both CGST and SGST. Companies with a turnover below it would be exempt from tax. An annual turnover of less than Rs 10 lacs is expected to be exempted. An Integrated GST (IGST) would be levied on inter-State supply of goods or services, which would be collected by Centre and transferred to the State where the goods or services were eventually consumed. Import of goods or services would be treated as inter-State supplies and therefore, would be subject to IGST in addition to the applicable customs duties. The Union finance ministry has agreed to keep a provision in the Bill for compensation to states on revenue losses, if any, from the roll out of GST for the first five years.

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Alcohol, tobacco and petroleum products would be kept out of the ambit of GST in the initial year. However, entry tax (Tax paid while getting product into the state boundary) will be included in GST. Benefits of GST Improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate. It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax. The overall taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. It will build a transparent and corruption-free tax administration, by simplifying procedures of taxations and reducing the tax burden, though increasing the ambit of taxation. Since, both Centre and State GST will be collected at the place of sale of a product, it will be charged on the manufacturing cost only, and hence, the cost of the product will come down. Lower price (approximately 5%-7% for consumer goods) will attract more consumption and thereby help both the manufacturer and the consumer. To safeguard the interests of the States, in terms of revenue collection, Alcohol, tobacco, petroleum products have been kept out of the GST regime. Downside of GST Small companies with turnover less than 10 lacs will not fall in the ambit of GST. So, these companies will continue to pay excise or value added tax. Hence, big companies will get benefit of deductions paid as taxes by their small suppliers. The key beneficiaries will be big companies from the organized sector, as their overall tax liability will reduce. However, the small players, mostly from the unorganized sector will perhaps be affected adversely. In needs to be seen that unorganized sector in India constitutes 30% to 75% of the market size. Since, unorganized sector will get adversely affected and lose its competitiveness, there is a fear of higher attrition rate of workers or layoffs by such small companies to cut cost. Since, small companies to remain profitable will have to boost sales to cross the 10 lacs threshold; there may be a short term increase in prices of products. Once GST kick-starts, taxation on all goods and services will be equitable, i.e. tax for having dinner at a 5 star hotel and ordinary hotel will be the same; another example, tax on a luxury car and a non-luxury car will be similar. This would mean that the rich who buy luxury goods may pay less tax due to reduced taxation and the poor, apparently more than they should. The GST may be fundamentally considered as anti-federal, as the States will be unable to increase or reduce taxation, as hither-to-fore to suit the socio-political specific requirements during certain special and unforeseen circumstances. Reasons for Delay in the Passage of the GST The idea of GST was first mooted in the year 2000 by the NDA government, by setting up an empowered committee, which was given the task of designing the GST model and overseeing the IT back-end preparedness for its implementation.

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Later, the UPA government took it up and the Union Finance Minister, Mr. P Chidambaram, announced the setting up of a Joint Working Group on May 10, 2007, to prepare a road map for introduction of GST in India. The Joint Working Group, after intensive internal discussions as well as interaction with experts and representatives of Chambers of Commerce and Industry, submitted its report to the Empowered Committee on November 19, 2007. On the basis of this discussion and the written observations of the states, certain modifications were made, and a final version of the views of Empowered Committee at that stage was prepared and was sent to the Central government on 30 April 2008. It was initially proposed that the GST would be introduced by 01 April 2010. Since some of the States were opposing the GST, as they feared that it would result in loss of revenue to the States, the introduction of GST kept getting postponed. The introduction of GST mandates a Constitutional Amendment, as it requires assigning concurrent jurisdiction to the Centre and State for levy of GST and hence, this unique mechanism requires a constitutional force. The Constitution amendment Bill for GST was originally introduced in the Lok Sabha in March 2011 by the UPA government and was also examined by the Parliamentary Standing Committee on Finance, which subsequently submitted its report. However, due to certain observations made by the Parliamentary Standing Committee and amendments recommended thereto, besides, the inability of Parliament to function due to various disruptions by the opposition, the Bill could not be passed. The Union Cabinet on 17 December 2014 approved the Constitutional amendment Bill for the roll out of the Goods and Services Tax (GST) - a crucial step before its likely introduction into the Parliament. The Cabinet‟s decision came after the Centre and states reached a consensus on the broad contours of the proposed tax on 15 December 2014. The 122nd Constitutional Amendment Bill for approval of GST was introduced and passed by Lok Sabha in May 2015, where NDA has a majority; however, the Bill could not be passed in Rajya Sabha, where NDA does not have the numbers. The Indian National Congress indulged in a tit for tat tactics by not allowing the Monsoon session of the Parliament to function. There major demands were the resignation of three of the PM's colleagues, including Foreign Minister Sushma Swaraj, involved in Lalit Modi Gate. PM Modi called for a meeting with the Congress Party leaders at his residence on 27 November 2015, to discuss the sticking points with respect to the Goods and Services Tax. The following three sticking points emerged with respect to the GST:  Abolition of 1% levy by manufacturing states such as Gujarat, Maharashtra, Karnataka and Tamil Nadu.  The Congress party wanted that the rate of GST be capped at 18 per cent, so that the common man is not overly burdened.  100 per cent compensation was asked to be given to states for revenue loss for initial five years. Also, concrete measures to ensure appropriate grievance redressed system were demanded, as the Congress found inadequate accountability measures. 113

The Bill remained in a state of suspended animation until the Monsoon Session of the Parliament, when once again it was given a push. The Finance Minister Arun Jaitley met his state counterparts on 26 July 2016 to forge a political consensus on the GST Bill. Broad consensus was built up in the meeting with the state FMs and the Union Cabinet on 27 July 2016 approved key changes to the Constitution Amendment Bill for Goods and Services Tax, based on the observations of the opposition parties to make it more amenable:  The 1% additional levy on supply of goods was withdrawn from the text of the Bill.  The language in the text regarding the compensation to the sates was altered to say that, “100% compensation to states for the initial five years for loss of revenue, if any, arising from transition to GST will be assured”.  Disputes will be decided on the basis of a mechanism devised by the GST Council and not by a dispute resolution panel.  Lastly, a fresh assurance has been introduced into the text, that the GST rate will neither lead to revenue loss to the states nor hurt the consumers. Also, a point regarding the revenue sharing with the states, has been endorsed that the amount of share set for the states shall not form part of the Consolidated Fund of India, but will be directly appropriated to the states. Note: Complete revenue collected through various sources goes into the Consolidated Fund of India and its distribution as per the Union Budget for various welfare/ infrastructure development/ other projects is made out through an Appropriation Bill which is passed by the Lok Sabha. Similarly, Consolidated Fund is also maintained by the states, which also pass their Appropriation Bills for spending the allocated amount after their respective Budgets are passed. The reason for not putting the state‟s share of the GST into the Consolidated Fund of India is to avoid delay in the availability of funds to the states, as the revenue designated to be passed on to the states would have got held up till the passage of the Appropriation Bill by the Union Government. Since, most of the changes were in line with the recommendations of the select committee of the Parliament and had already received the backing of the states; the Bill was cleared in the Rajya Sabha without much discussion. Though the Congress party held on to putting a cap on the upper limit of GST to 18% otherwise they felt the purpose of passing the GST would be self defeating. The Finance Minister Arun Jaitley, however, quelled their apprehension by saying that it may not be possible at this juncture to pinpoint a specific limit for GST without taking various connected parameters into account, but assured that the tax burden on the consumers would positively go down. The next intervening steps for the roll out of the GST by next financial year entail reintroduction of the Constitutional Amendment Bill in Lok Sabha for approval after duly incorporating the changes and finally receiving the consent of at least 50% of the states out of the total 29.

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It needs to be understood that the 122nd Constitutional Amendment Bill, is just an enabling legislation that allows the tabling of the GST Bill with all the specific details of rates, modalities and nitty-gritty‟s of the new tax regime. It is expected that the GST Bill will be tabled in the Winter Session of the Parliament. Here again the opposition parties want the Bill to be introduced as a Finance Bill and not as a Money Bill. Note: Finance Bill needs to be passed by both the houses of parliament after due deliberation, while the Money Bill, is required to be passed only in the Lok Sabha, and the recommendations put forth by the Rajya Sabha during its introduction in Rajya Sabha, may or may not be incorporated in Lok Sabha while passing the Money Bill. However, since the GST Bill would include figures and rates, hence, it would qualify to fall in the category of a Money Bill. Conclusion The new tax regime will be an effective step towards improving revenue generation by increasing the tax base and reducing the tax liability. It appears to be a „win-win‟ situation for the government, businesses and the consumers. Since, government will have higher revenue collections and encourage foreign investors to “Make in India”; it will improve the fiscal deficit state of the country. A calibrated introduction, hi-tech cyber backend support and judicious implementation of this biggest tax reform since independence, will be required to ensure its flawless and smooth functioning.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

32) The 7th South Asian Association for Regional Cooperation's (SAARC) Meeting of Home/Interior Ministers: 03-04 August 2016 Introduction

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The Union Home Minister Rajnath Singh represented India at the 7th South Asian Association for Regional Cooperation's (SAARC) meeting of Home/Interior Ministers held at Islamabad, Pakistan on 03-04 August 2016. Pakistan is also scheduled to hold the 19th SAARC Summit at Islamabad and Murree in November this year, which will be attended by the head of states of the eight SAARC countries. This particular meeting of Home/ Interior Ministers for so called “regional cooperation” unfortunately became a venue for exchange of bitterness and was self defeating in its very scope. Ironically, the purpose of the organization was to project a united regional front against the hegemony of the Western powers and protect the economic, security and strategic interests of the member countries. General Information about SAARC South Asian Association of Regional Cooperation (SAARC) was established on 08 December 1985, with its Headquarters is in Kathmandu, Nepal. It is an eight member conglomeration of nations from the South Asian region, with a view to promote economic, socio-cultural development and collective self-reliance of the member states. Also, to establish credible diplomatic relations with multilateral entities, like EU and UNO (as an observer). The member countries include India, Bhutan, Nepal, Bangladesh, Sri Lanka, Maldives, Pakistan and Afghanistan. A few nations to include, USA, Australia, EU, Iran, China, Mauritius, Japan, South Korea and Myanmar has been accorded the status of observer nations. Historical Perspective The seven inner South Asian countries (India, Pakistan, Bhutan, Nepal, Bangladesh, Sri Lanka, and Maldives) came together during the late 1970s to form a trade bloc to enhance mutual trade in the region. The idea of regional cooperation was initially mooted in 1977 by the President of Bangladesh, Ziaur Rahaman during his visit to India and was further echoed by King Birendra of Nepal. The security situation in South Asia deteriorated after USSR invaded Afghanistan in 1979, and the need for regional cooperation was felt more strongly. Responding to the convention of President Rahaman and King Birendra the officials from the foreign ministries of all seven countries met for the first time in Colombo in April 1981. Finally, the proposal put forth by Bangladesh was endorsed by the other six nations. Though Pakistan, and even India were initially skeptical about its viability. India felt that the newly formed smaller nations, through this union, may unite to oppose India in various bilateral issues as India shares borders with most of them. Pakistan on the other hand felt that India was reorganizing the South Asian countries against Pakistan and creating a regional market for its domestic products, with the aim of assuming economic dominance in the region. In 1983, during the International Conference of foreign ministers held at Delhi, by PM Narasimha Rao, the declaration of SAARC was adopted and the Integrated Action Programme

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was launched in the fields of Agriculture, Rural Development, Telecommunication, Metrology, Health and Population activities. The first SAARC summit was held at Dhaka on 7-8 December 1985. Afghanistan was included as the eighth member in 2007. Information on Important Conventions of SAARC SAARC Charter was signed on 08 December 1985, establishing regional association and Study Groups were formed to tackle problems of terrorism, drug trafficking, and increasing women‟s participation. (Irony is that after more than 30 years we are still fighting for the same issues). In 1987 an agreement was signed to establish a South Asian Food Reserve. 1989 was declared „Year against Drug Abuse‟ and 1990 was declared as „Year of Girl Child‟. A number of Regional Centers have been established as follows:  SAARC Agricultural Centre (SAC), Dhaka, Bangladesh  SAARC Meteorological Research Centre (SMRC), Dhaka, Bangladesh  SAARC Tuberculosis and HIV/AIDS Centre (STAC), Kathmandu, Nepal  SAARC Documentation Centre (SDC), New Delhi, India  SAARC Human Resources Development Centre (SHRDC), Islamabad, Pakistan  SAARC Coastal Zone Management Centre (SCZMC), Maldives  SAARC Information Centre (SIC), Nepal  SAARC Energy Centre (SEC), Pakistan  SAARC Disaster Management Centre (SDMC), India  SAARC Forestry Centre (SFC), Bhutan  SAARC Cultural Centre (SCC), Sri Lanka  SAARC Development Fund at Bhutan The South Asian Free Trade Agreement (SAFTA) was signed on 06 January 2004 during Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force on 01 January 2006, and the Trade Liberalization Programme commenced from 01 July 2006, which includes, Customs Union, Common Market and Economic Union. The SAARC Visa Exemption Scheme was launched in 1992 to promote people to people contact. Currently the list includes 24 categories of entitled persons, like, Dignitaries, Judges of higher courts, Parliamentarians, Senior Officials, Businessmen, Journalists, and Sportsmen etc. Sixth Meeting of the SAARC Ministers of Interior / Home: 19 September 2014 The previous Meeting of SAARC Ministers of Interior/Home took place at Kathmandu on 19 September 2014. Home Minister Rajnath Singh attended the same. During his address, he stressed upon cooperation in countering issues of terrorism, counterfeit currency, smuggling of narcotic substances, cyber crimes, human trafficking and illegal movement of arms. He had also proposed to establish a “SAARC Centre for Good Governance” by inviting administrative officers from all member nations to discuss methods and innovative ideas pertaining to development and good governance. However, there has been no further movement on this proposal. Seventh Meeting of the SAARC Ministers of Interior/Home: 3-4 August 2016 117

The most prominent issue that was discussed during the meeting at Islamabad was regional cooperation on a number of security-related matters, menace of cross-border terrorism and state sponsorship of militancy. Pakistan stood isolated on the issue of terrorism, as both Bangladesh and Afghanistan echoed India‟s concern with respect to the issue of sponsorship of terrorism from Pakistani soil. Pakistan displayed its true colors as its Interior Minister, Chaudhry Nisar Ali Khan during his address at SAARC, contrary to the conventions, raised the bilateral issue of Kashmir at this forum and called the actions of the security forces and the administration to ensure law and order in J&K as an “act of terrorism”. Complete media during the course of the meeting was gagged and no information about the issues raised or discussed during the course of the meeting was made public even to the Pakistani media. Furthermore, with the view to flare up the tension brewing up in J&K, Hafiz Saeed, chief of Pakistani terror group Jamaat-ud-Dawa, a terrorist with a $10 million US bounty on his head, had issued prior warning to the Pakistani government that Rajnath Singh‟s presence in Islamabad will create "unrest" among Kashmiris as well as Pakistanis. Meanwhile, chief of terror group Hizbul Mujahideen – Syed Salahuddin asked Pakistan‟s Prime Minister Nawaz Sharif to immediately recall its ambassador from New Delhi and "suspend trade and diplomatic ties" with India following Hizbul Mujahideen terrorist Burhan Wani‟s killing. Notwithstanding, Mr Rajnath Singh gave a very hard hitting speech during the meeting and said “There are no good terrorists or bad terrorists. Terrorism is terrorism, there should be strongest of action not only against terrorists but also against organizations, individuals and nations who support terror”. He also made a pointed statement regarding Pakistan‟s tacit support to militancy in J&K and said that, terrorists should not be glorified as martyrs ( Pakistan had declared Hizbul terrorist Burhan Wani a martyr) and also brought out that Pakistan had observed a black day against his killing. He further urged other member countries to come down heavily on the perpetrators of terror by saying: “Those who provide support, encouragement, give sanctuary and safe haven and assistance to terrorists and terrorism must be isolated.” The other areas of cooperation amongst the SAARC nations that was discussed/ proposed included:  Mechanism for tackling cyber crimes.  Strengthening the SAARC Anti-Terrorism Mechanism, for which a meeting is scheduled from 22-23 September 2016 in New Delhi.  Home Minister, Rajnath Singh called for the immediate ratification of the SAARC Convention on Mutual Assistance in Criminal Matters.  India offered its full support and cooperation by way of capacity building and training programmes for the implementation of the Regional Convention on Narcotic Drugs and Psychotropic Substances to curb the menace of drug trafficking.

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 The need for safety and security of women and children was also highlighted. Conclusion The 7th Meeting of the SAARC Ministers of Interior/Home was marred by open discontent amongst the member states, especially, Pakistan on one side and India, Bangladesh and Afghanistan on the other side. Pakistan forgot all civility and basic social norms to be remembered by a host, when during a lunch hosted by the Pakistani Interior Minister, Chaudhry Nisar Ali Khan, he himself failed to turn up at the venue. Naturally, finding it an outright insult, Mr. Singh skipped the lunch and had his lunch at his hotel room along with the members of the accompanying Indian delegation. Finally, one may wonder whether it was a good idea to send our Union Home Minster or we could have considered sending someone lower in the hierarchy to attend the meet, like what was done by Bangladesh. Indo-Pak relationship is perhaps seeing its lowest trough. The major reason for the same may be attributed to the fact that Pakistan could not have let go this opportunity when the complete state of J&K is seething with anti-India feelings. Incessant fuel to this fire from Pakistan, especially at this stage, will not allow the situation to normalize in a hurry and that is precisely the stated „India policy‟ of Pakistan: “To Bleed India from a Thousand Cuts”. The question that comes into every Indian‟s mind today is: What is India‟s „Pakistan policy‟?????

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

33) Genesis of the Bodoland Issue and Reasons for Frequent Clashes and Riots in Assam

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Introduction The northern most region of Assam, which lies on the northern bank of Brahmaputra River, adjoining the foothills of Bhutan and Arunachal Pradesh is predominantly inhabited by the Bodo people and serves as a gateway to the complete North Eastern region of India. The people of this region feel that their aspirations have not been met in terms of growth and development and hence, have been demanding for a separate state of Boldland (within the Indian Union) to be created by carving out some area of eight districts of the current State of Assam, namely Kokrajhar, Dhubri, Bongaigaon, Barpeta, Nalbari, Kamrup, Darang and Sonitpur districts. On 05 August 2016, terrorists wearing military uniforms opened fire at a busy market area just outside the town of Kokrajhar, 220 km (137 miles) west of Assam's main city of Guwahati. The National democratic Front of Bodoland(Songbijit), which is one of the largest insurgent group active in the region with more than 300 cadres in its folds is believed to be behind the terror attack. The situation seems to be getting worse in the region, with the intelligence agencies reporting that, six new terror groups were in the offing, mainly consisting of surrendered militants and criminals who had gone back to the jungles. Genesis of the Bodoland Issue Bodos happen to be the earliest inhabitants of the Brahmaputra valley. The complete NE region of India, especially the areas north of Brahmaputra River were highly underdeveloped prior to independence.

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The region is known to have an abundance of natural resources like oil, natural gas and Assam tea. However, due to lack of infrastructure and inapt road connectivity to major cities of Assam, the area lagged behind in terms of education, employment and development. After 1947, certain steps were taken by the government to safeguard the interests of Bodo people, like giving them the status of Scheduled Tribes (ST) and by the creation of tribal belts and blocks (for scheduled-tribes), which was a mechanism to protect farming and grazing lands mainly from rich landlord and illegal immigrants. However, by the early 1960s the Plains Tribal‟s Council of Assam (PTCA), a political party representing Bodos and other plains tribal‟s of Assam realized that tribal belts and blocks were gradually being acquired by rich landlords or new immigrants through illegal means. This problem got further aggravated when the Government of India decided to open the floodgates for refugees seeking asylum in India from East Pakistan (now Bangladesh), before its separation from Pakistan in 1971. Therefore, the original inhabitants of the region got marginalised by the mass influx of many affluent and also, desperate outsiders. At present the demographic orientation of the region comprises of just 28% Bodo, 20% Muslims, 15% Adivasis, and rest are Assamese, Bengali Hindus and non-Bodo tribes. In order to address this issue, in 1967, PTCA demanded a Union Territory status for an area to be carved out of Assam, called Udayachal. The proposed Udayachal map included mainly those areas that were known as tribal belts and blocks. However, the demand for Udayachal never materialized. Demand for Bodoland The large size of Assam state, lack of political representation of Bodo people, rampant corruption that diverted financial packages meant for Bodo people from the Centre government, resulted in All Bodo Students‟ Union (ABSU) and Bodo political parties jointly demanding a separate state, called Bodoland in late 1980s. For similar reasons, Khasis and Garos had earlier carved out Meghalaya from Assam. Officially, the Bodoland Movement for an independent state of Bodoland started on 02 March 1987, under the leadership of ABSU leader Upendrenath Brahma. The ABSU created a political organization called the Bodo Peoples‟ Action Committee (APAC), and heightened its agitation for division of Assam 50:50. Consequently, a Bodo Accord was signed on 20 February 1993, which led to the creation of Bodo Autonomous Council (BAC). However, the accord soon collapsed due to a vertical split between the ABSU and the other political parties, which led to widespread violence and displacement of over 70,000 people. Agitations and large scale riots took place again in 1994, 1996, and May 2014 as the Bodos continued to feel insecure. The Bodos feared that they would be reduced to a minority in their own homeland. Bodo Territorial Council Act-2003 Finally, after a series of rounds of deliberate and meaningful talks, the militant cadres laid down their arms and signed an agreement with the government called the Bodo Accord-2003.

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As per the provisions of this Accord, a Bodo Territorial Council (BTC) was established and a Bodo Territorial Areas Districts (BTAD) was created under the Sixth Schedule of the Constitution of India. The aim of creating BTAD was to safeguard the interests of Bodo people and ensure their appropriate representation in socio-political decision making processes in the region. The BTAD comprises of 35% of the state of Assam and the areas include districts of Kokrajhar, Baska, Chirang and Udalguri. The Bodos Territorial Council is being presently controlled by one of the parties of Bodos,i.e. the Bodoland People's Front (BPF). The council offers considerable local autonomy to more than 3,000 villages that are home to Bodo tribesmen. Reasons for Frequent Clashes and Riots The Bodo Accord seeks to protect the rights of indigenous Bodo people, but at the same time allows Muslim settler (both legal and illegal) and non-Bodo tribes to freely acquire land in the BTAD. Bangladeshi illegal migrants have been obtaining documents, like ration cards illegally to establish their nationality and buying land in the region. Non-Bodos and Muslims feel that Bodos, that comprise only 25 % of the total population, should not be given the authority to rule over and control three-fourth of the population in the BTAD. However, Bodos feel that they are the largest tribal community out of the 34 other tribal communities of Assam and hence, cannot be neglected, exploited and discriminated against. A number of villages with Bodo minority have been included in the BTAD to maintain a contiguous area, that has created conflict and the non-Bodos want these to be removed from the BTAD. Hence, both Bodos and non-Bodos are demanding to review the Bodo Territorial Council Act- 2003. The Bodos feel that their rights are not being protected and they might be reduced to a minority in their own homeland. The non-Bodos feel that the Bodos are being given more benefit than they ought to be getting. There is a faction of Bodo society that wants to separate from the union of India and form a sovereign Bodoland. Their demand is being supported by the militant faction, National Democratic Front of Bodoland (NDFB). As brought out above, NDFB is a separatist group that wants independence and has been responsible for widespread killing of non-Bodos in the region to create fear sychosis in the minds of settlers from outside Assam. This militant group opposes peace talks with the government. Hence, the Bodoland problem has four major dimensions:  Conflict of terests between Bodos and non-Bodos, mainly Muslims and illegal immigrants.  Delineation of the border of the Bodo Territorial Areas Districts, as it includes areas with Bodo minority that the non-Bodos are objecting.  Demand for a separate state of Bodoland.  Demand for independence from the Union of India to form a sovereign Bodoland.

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Assam Violence: 23 December 2014 The violence of 23 December was a result of a militant organisation National Democratic Front of Bodoland (NDFB), striking in three different districts of Kokrajhar, Sonitpur and Chirang and killed 65 unarmed tribal‟s, including 21 women and 18 children. The attacks happened during preparations for Christmas; tribal victims were mostly Christians. In retaliation, the tribal‟s killed three Bodo people in a village near Behali in Sonitpur district. The total death toll reached to 71. Both communities burned houses and damaged properties at different parts of the state. The violence also spread to Udalguri district. Terror Strike: 05 August 2016 Militants opened fire and hurled grenades in the Balajan Tiniali market area, a few kilometres away from Kokrajhar town on 05 August 2016. The National Democratic Front of Bodoland (NDFB) was suspected to have been behind the terror attack. The security forces immediately responded and killed one of the militants. During the combing operations, grenade and other weapons have also been recovered from the site. The unfortunate incident resulted in the killing of one militant, 13 locals and 15 others were injured. The fallout of the Assam violence was visible in the other parts of the country also, as thousands of people from the Northeast crowded the platform at the city railway station to board a special train to Guwahati as rumours about attacks on people of NE spread in Bangalore. Similar rumors in December 2014 had triggered a mass exodus of people from NE back to their home states. This trend seems to be highly worrisome and displays the vivid insecurities in the minds of people living in a country that draws worldwide acclaim by being called a country that respects for all religions, has unity in diversity, and is a responsible democracy. Conclusion The situation in this region of Assam has always been in a state of turmoil. The political parties and Go I, will have to remain proactive and give a patient hearing and demonstrate willingness to address the genuine aspirations of the people of the region. Government may perhaps need to review the provisions of Bodo Territorial Council-2003 to ensure no injustice is done to any community. Also, active measures like the issue of proper identity proofs like the Adhar cards with biometrics need to be ensured to check illegal Bangladeshi immigrants from settling in India. Lastly, adequately deployment of security forces in the sensitive areas is required and the re- delineation of BTAD may also have to be resorted to, for ensuring safety of the minority communities in the region.

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HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINING

34) Manipur Militancy and Crusade of Irom Sharmila against AFSPA Introduction Irom Sharmila broke her fast today after being on a hunger strike for 16 years. In 2000, the death of 10 people in firing by security forces drove Sharmila to launch a hunger strike and demanded the removal of the Armed Forces Special Powers Act or AFSPA that gives the army special emergency powers while operating in the areas declared as „disturbed‟. She had been arrested and kept under detention in a hospital on account of attempted suicide for all these years and force-fed through a plastic tube. The Chief Judicial Magistrate granted her bail after she broke her fast and furnished bond of Rs. 10,000 as surety.

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She has indicated her desire to get into active politics and continue her fight against AFSPA. She also expressed her wish to marry Desmond Coutinho, a Goa-based British citizen, with whom she has been in touch for a while through letters. Understanding the Armed Forces (Special Powers) Act, (AFSPA) Armed Forces Special Powers Act-1958, is an Act which has just six sections and was enacted to bestow certain special powers on the Armed Forces operating in the areas declared as „disturbed‟, under the provisions of Article 355 of the Constitution, among other things, to protect every state against internal disturbance. Many NGOs, human rights organizations and non-state bodies like the UNO find the AFSPA to grossly violate the international laws on human rights and its enforcement is considered to result in arbitrary killings, torture, and cruel, inhuman and degrading treatment of the subjects. However, the commanders of the troops deployed on the ground feel that the Act is highly essential for the proper conduct of operations to counter the menace of terrorism and feel that by providing the necessary flexibility to operate and adequate legal immunity and safeguards, the efficacy of the counter-terror operations is enhanced. Historical Background The history of the Armed Forces Special Powers Ordinance of 1942 goes back to the British era, when, on 15 August 1942, it was promulgated to suppress the Quit India Movement. Later, the United Provinces Disturbed Areas (Special Powers of Armed Forces) Ordinance was invoked by the central government to deal with the internal security situation in the country in 1947 which arose out of Partition of India. Prior to the creation of NE states, when „greater Assam „ existed as an entity, and included the territory of present Nagaland; in 1951, Naga National Council conducted a unilateral „free and fair‟ plebiscite and declared that 99% of the Naga people had opted for „Free and Sovereign Naga Nation‟. They boycotted 1952 general elections and also boycotted government schools and officials. To tackle the civil disturbance in the area, the Assam government imposed the Assam Maintenance of Public Order (Autonomous District) Act in the Naga Hills in 1953 and intensified police action against the rebels. As the situation worsened, Assam Rifles was deployed and in the Naga Hills and Assam Disturbed Areas Act of 1955, was enacted to provide a legal framework for the paramilitary forces and the armed state police to combat insurgency in the region. But the Assam Rifles and the state armed police could not contain the Naga rebellion and the rebel Naga Nationalist Council (NNC) formed a parallel government "The Federal Government of Nagaland" on 22 March 1956. Finally, the Armed Forces (Assam and Manipur) Special Powers Ordinance 1958 was promulgated by the President, Dr Rajendra Prasad on 22 May 1958. It was later replaced by Armed Forces (Assam and Manipur) Special Powers Act, 1958 on 11 September 1958. Territorial Extent of the Act In 1972, the territorial scope of the Act was expanded to the five states of the North-East, - Assam, Manipur, Meghalaya, Nagaland, and Tripura and to the Union Territories Arunachal Pradesh and Mizoram. 125

In addition, the words, "The Armed Forces (Assam and Manipur) Special Powers Act, 1958" were substituted by “Armed Forces (Special Powers) Act, 1958", getting the acronym of AFSPA, 1958. On 15 October 1983, the central government enacted the Armed Forces (Punjab and Chandigarh) Special Powers Act, to enable the central armed forces to operate in the state of Punjab and the union territory of Chandigarh. Once the situation in Punjab stabilized, the Act was withdrawn in 1997, roughly after 14 years of its enforcement. Similarly, the AFSPA was withdrawn from Tripura in Nov 2014. On 05 July 1990, Armed Forces (Jammu and Kashmir) Special Powers Act, was enacted and was applicable to the whole state of J&K. The provisions of the Act are very similar to the ones which is applicable in the NE states. Special Powers under the Provisions of the AFSPA According to the Armed Forces Special Powers Act (AFSPA), in an area that is proclaimed as "disturbed", an officer of the armed forces has powers to:  After giving such due warning, fire upon or use other kinds of force even if it causes death, against the person who is acting against law or order in the disturbed area for the maintenance of public order.  Destroy any arms dump, hide-outs, prepared or fortified position or shelter or training camp from which armed attacks are made by the armed volunteers or armed gangs or absconders wanted for any offence.  To arrest without a warrant anyone who has committed cognizable offences or is reasonably suspected of having done so and may use force if needed for the arrest.  To enter and search any premise in order to make such arrests, or to recover any person wrongfully restrained or any arms, ammunition or explosive substances and seize it.  Stop and search any vehicle or vessel reasonably suspected to be carrying such person or weapons.  Any person arrested and taken into custody under this Act shall be handed over to the officer in charge of the nearest police station with the least possible delay, together with a report of the circumstances occasioning the arrest.  Army officers have legal immunity for their actions. There can be no prosecution, suit or any other legal proceeding against anyone acting under that law. Nor is the government's judgment on why an area is found to be disturbed subject to judicial review.  Protection of persons acting in good faith under this Act from prosecution, suit or other legal proceedings, except with the sanction of the Central Government, in exercise of the powers conferred by this Act. Review of AFSPA Supreme Court in its judgment in 1998 brought in certain restrictions on the exercise of power at various levels while imposing or using the provisions of the AFSPA and ruled that:  Central government to consult the state government before declaring an area as „disturbed‟.

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 AFSPA does not confer arbitrary powers to declare an area as a 'disturbed area, the declaration has to be specific to an area and for a limited duration and there should be a periodic review of the declaration after the expiry of every 6 months.  While exercising the powers conferred upon him by AFSPA, the authorized officer should use minimal force necessary for effective action and strictly follow the 'Dos and Don'ts' issued by the army. On November 19, 2004, the Central government appointed a five member committee headed by Justice B P Jeevan Reddy to review the provisions of the act in the north eastern states. The committee submitted its report in 2005, which included the following recommendations:  AFSPA should be repealed and appropriate provisions should be inserted in the Unlawful Activities (Prevention) Act, 1967.  The Unlawful Activities Act should be modified to clearly specify the powers of the armed forces and paramilitary forces.  Grievance cells should be set up in each district where the armed forces are deployed. The 5th report of the Second Administrative Reforms Commission on public order has also recommended the repeal of the AFSPA. However, these recommendations have not been implemented. Representations against AFSPA As brought out earlier, Irom Sharmila had been on an indefinite fast for the last 16 years, seeking the repeal of the act in Manipur. The government could not agree to this demand as the insurgency situation in the Manipur continues to remain hostile. Also, successive State governments of J&K have been asking the central government to remove AFSPA from those parts of the State which have remained peaceful for the previous few years. The demand has been to remove such areas from the list of 'disturbed areas' so as to selectively repeal AFSPA. When India presented its second periodic report to the United Nations Human Rights Committee in 1991, members of the UNHRC asked numerous questions about the validity of the AFSPA. On 23 March 2009 and again on 31 March 2012, UN has asked India to revoke AFSPA, stating that it had no place in Indian democracy. On 15 Nov 2014, Congress leader, Mr. P Chidambaram created a controversy by tweeting that AFSPA was an "obnoxious law", and said that it has no place in a modern, civilized country.

Implications of Withdrawal of AFSPA Presently, AFSPA is enforced in the North East in the regions of Manipur (excluding the Imphal Municipal Council area), Assam and Nagaland and in the Tirap and Changlang districts of Arunachal Pradesh.

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The recent removal of AFSPA by Tripura Government is expected to set precedence for other States and the demand for the same is likely to be echoed with greater fervor form various corners of the country. However, what needs to be understood in true earnest is that, revocation of AFSPA greatly curtails the freedom of the forces to carry out operations decisively. It amounts to asking our soldiers to combat terrorism with both their hands tied behind their back. A soldier deserves all the legal protection he can get for the result of any action/decision he takes on the spot, acting in the best interests of the situation. The AFSPA does not give unlimited powers to the troops on ground, but, is only an enabling Act that facilitates execution of their duties better. Army has always been quick to admit its follies, as in the case of mistaken identity in Budgam, where two youths had died in army firing in 2014. Also, Army demonstrated zero tolerance towards human rights violation by punishing those who were found guilty in the case of fake encounter in Machil in Jammu and Kashmir. All five accused were given life sentence by an Army Court Martial. The overall security implications of removing the AFSPA need to be correctly assessed, so that it does not result in creating a vacuum that leads to providing a safe haven for militants to operate from. Militancy in Manipur Manipur is one of the seven states of Northeast India, called the “seven sisters”. The State is bound by Nagaland in the north, Mizoram in the south, Assam in the west, and shares a 398 km border to its east and south with Myanmar. The state capital of Manipur is Imphal. Manipur has an approx population of about, 23 lac. Out of which, 61.5% live in the valley and the remaining 38.5% live in the hills. The people of Manipur are predominantly Mongoloid, and speak Tibeto-Burman languages. They can be classified as hill tribes and non-tribal, who live in the valley. The hill tribes can be further broken up into the Naga group of tribes, the Kukis-Chin- Mizo group of tribes, and the intermediary group of tribes. Currently there are 29 recognized tribes. Most of the non-tribal‟s live in the valley; and tribal‟s in the hills. Non-tribal‟s are barred from buying land in the hills. The non-tribal communities are the Meiteis (43%), Meitei- Muslims (8%) and other immigrant communities (10%). Christianity is the major religion in the hills; and Sanamahi and Hinduism (46%) in the valley. The State of Manipur has been in a state of conflict for many years now and the conflict is not merely between the State and the various non-state armed groups, but also between these armed groups that are polarized along ethnic lines. Historical Perspective The people of Manipur want to aggressively protect their independence and the reason for that is that its people have had „histories‟ and „memories,‟ of being an independent entity longer and deeper than those of most other Indian people when India attained independence. Manipur was an “independent kingdom” since 1st century AD.

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Manipur ceased to be an “independent kingdom” in 1891 when, Britain took over the Kingdom in the Battle of Khongjam, a major battle in the conflict, which is even now officially commemorated every year on April 23. The defeat at the hands of Britain came to be accepted as part of British India‟s expansion to secure its eastern frontier in which the independence of Manipur became an inescapable casualty. Thereafter from 1892 onwards Manipur became a princely native state under the political control of the British India. After the British rule ended, Manipur State Constitution Act, 1947 established a government with the Maharaja of Manipur as the Executive Head and an elected legislature. The first Manipur State Assembly was opened on 18 October 1948. In 1949, Manipur was formally merged within the Indian Union through a Merger Agreement signed between the then king, Bodhachandra Singh, and the Government of India. After its merger, Manipur was placed as a part „C‟ state which was administered by the President of India through a Chief Commissioner. In 1956, Manipur became a union territory and finally in 1972, it became a full-fledged state of India with a Legislative Assembly consisting of 60 elected members. Major Issues of Conflict and Prime Contenders Opposition to the Merger with Union of India The revolutionary movement in Manipur was started by Hijam Irabot Singh. He opposed Manipur‟s merger with India. Several non-state armed groups also declared it „illegal and unconstitutional‟ as it was widely believed that king, Bodhachandra Singh signed the Merger Agreement under duress from India. Hijam Irabot Singh proposed a Purbanchal state which was to include Manipur, Tripura, Cachar and Mizo hills. He further advocated that Manipur should be assigned the status of a republic and Kabaw Valley, which is believed to have been given away by Nehru to Burma, should be restored to Manipur. The public of Manipur, particularly the youth, were very unhappy with the way Manipur, a princely state with a Constitution of its own and an elected Assembly was “annexed” to the Indian Union and felt humiliated by the way the state was put as a Part–C state after the merger. Feeling slighted and deeply hurt some groups of Meiteis took up arms to fight for restoration of pre–merger status of Manipur. Insecurity Emerging from Demand for Greater Nagaland or ‘Nagalim’ The Naga armed conflict began in 1950s and had a tremendous impact on Manipur. The NSCN- IM, a prominent Naga armed group, has been pressing for the formation of „Nagalim‟ comprising all Naga-inhabited areas of Arunachal Pradesh, Assam, Manipur and some areas of Myanmar which it believes to be the rightful homeland of the Nagas. Four districts of Manipur (Chandel, Senapati, Tamenglong and Ukhrul) are included in „Nagalim‟ and Manipuris believe that the Nagas are trying to destroy their state. The inclusion of Manipuri districts in Nagalim has led to a serious polarization between the Nagas/ Kukis living in the hills and the Meiteis/ Muslims living in the valley.

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Consequently, the Meiteis in the valley called for violent demonstrations against the administration and the Naga insurgent groups as a repercussion imposed a 52-day-long (June 19 to August 11, 2005) blockade of the Mao-Imphal section of the NH-39. Ethnic Divisions within Manipur Given the nature and magnitude of ethnic diversity of Manipur, the plurality of its population and the shared geographical and cultural spaces it is virtually impossible to come up with an acceptable division of territory. There have been many major conflicts between various groups based on ethnic lines to meet their political aspirations and gain dominance, e.g. conflict between the Nagas and the Kukis, between the Paites and the Kukis; as well as those between the Meiteis and the Meitei-Muslims. Conflict between Hill Tribes and Valley People The basic source of income for the local people is Agriculture and handloom industry. Though the landmass of valley is much smaller as compared to the hilly region, land in the valley is more fertile and productive. The valley people are better educated, more skilled, have better access to jobs and are contributing more and hence, have greater say in the running of the affairs of the State. The hilly tribes are less equipped to earn a comparatively better quality of lifestyle. Hence, they feel like a minority in their own State. Besides, they have greater affinity with the Nagaland (has a sizable Naga population), which have been a constant reason for rivalry amongst them. Agitations against Repealing of Armed Forces Special Powers Act 1958 Manipur was declared a „disturbed area‟ in 1980 and AFSPA was imposed and has been in place ever since. On 11 July 11 2004, the alleged rape and murder by security forces of Thangjam Manorama Devi, suspected to be a separatist, sparked agitations across Manipur, including the nude protest by a dozen Manipuri women. This was when Irom Sharmila Devi went on an indefinite fast demanding the repeal of the Act. Rejection of this demand by the government has continued to be a cause of violent agitations and anger against security forces. Regional tensions eased off in late 2013, with the Indian and state governments' making a concerted effort to raise the living standards of people in these regions. However in late 2014, tensions again rose as the Indian government launched an offensive, which led to a retaliatory attack on civilians by tribal guerrillas. Since 2015, militant have been highly active in Assam, Manipur, Nagaland and Tripura. Foreign Support to Insurgents It has been a known fact that countries like Bangladesh and China have been funding, arming and supporting insurgency in the North Eastern states. Myanmar, shares a huge and a very porous border of 398km with Manipur. Though Myanmar, like Bhutan has supported India on previous occasions also to conduct joint operations (Operation Somtal launched in 2007) to seek and destroy militant camps operating from their country. However, considering the extent of the border, it is almost next to impossible to have a proper vigil all along. 130

Sources of Funding Hurts the Local Population The first and foremost source of funding is the regular levy of „revolutionary taxes‟ on the people based on their economic status. Even the government organizations are accused of paying a fixed percentage of their revenues to the armed groups. Further, the militant groups, also directly or indirectly interfere in the award of government contracts and execution of developmental projects. Besides this, funds are raised through gun-running; drug trafficking, extortion and kidnapping, etc. The harassment caused and the fear psychosis generated in the minds of the local population further ferments anti- establishment feelings. Insurgent Groups Operating in Manipur In 1964 state‟s first separatist group United National Liberation Front (UNLF) was formed. In 1978 another outfit called People's Liberation Army (PLA) came into existence. Another insurgent group that surfaced around the same time was the People's Revolutionary Party of Kangleipak (PREPAK). By mid 1979 the three groups unleashed a fierce spell of urban and semi–urban guerrilla warfare in the Imphal valley. New rebel groups like Kangleipak Communist Party (KCP)and Kanglei Yawol Kanna Lup (KYKL)also appeared in the horizon some years later, KYKL was formed after a split in the UNLF. Many smaller outfits mushroomed in the valley in the last one decade including an outfit of Manipuri Muslims (Meitei Pangals) under the name of People's United Liberation Front (PULF). In the hill areas of Manipur the Kukis formed many rebel groups under the acronyms of KNA, KNF, KLA, etc. In 2008 the Indian army signed a Suspension of Operation (SoO) with eight Kuki groups in an effort to use them against the valley insurgent groups. Presently in Manipur, both in the valley and the hills, there are more than two–dozen rebel outfits. Objectives of quite many of these outfits are divergent and often obscure. Details of Insurgent Attack on Army Convoy on 04 June 2015 Naga insurgent outfit Nationalist Socialist Council of Nagaland-A (NSCN) along with Manipuri outfit Kangleipak Communist Party (KCP) and Kanglei Yawol Kanna Lup (KYKL) claimed responsibility for the attack on an Indian Army convoy in which 18 soldiers were killed and 11 injured in Chandel district of Manipur on 04 June 2015. The attack, the deadliest in the last three decades, took place when the 6 Dogra Infantry Regiment was being de-inducted from the area. The Army convoy was on a road opening patrol, when it was ambushed and was attacked with rocket propelled grenades (RPGs) and improvised explosive devices (IEDs). After the army vehicle was damaged, at least 50 terrorists using automatic rifles fired indiscriminately at the soldiers resulting in the heavy casualty. Some terrorists were also killed in the retaliatory fire by the soldiers. It was assessed by experts that the rocket propelled grenades (RPGs), and weapons used by regular Armies, were probably smuggled through Kunming, China. 131

Army launched surgical combing operations in the adjoining areas of Myanmar and inflicted huge casualties on the militant cadres, who had made proper training camps and hideouts over there. Major Law and Order Problem in September 2015 The State of Manipur was once again on the boil in September 2015, when the State assembly unanimously passed the following three bills to regulate the influx of outsiders into the State:  Protection of Manipur People Bill;  Manipur Land Revenue and Land Reforms (7th amendment) Bill;  Manipur Shops and Establishments (Second Amendment) Bill. The houses of Manipur‟s Health Minister and five other lawmakers were set on fire on 01 September 2015 at Churachandpur, in south Manipur because none of them objected to the passage of these Bills through the House. Reasons for the Agitations There is a special provision for Manipur under Article 371C of the Indian Constitution providing for the Hill Areas Committee. This Committee comprises of 19 members elected to the state legislative assembly from all the tribal areas, which was envisaged to be the guardian of tribal interests. The state governor is required to submit an annual report on the administration of Hill Areas to the President of India, and the central government has the power to give directions to the state government regarding administration of these areas. Hence, Article 371C limits the power of Manipur legislature vis-à-vis the Hill Areas of Manipur. Under the provisions of Article 371C, called the Inner Line Permit System, the non tribal‟s or any other outsiders are barred from buying land in the hills. The non-tribal communities are the Meitei’s (43%), Meitei-Muslims (8%) and other immigrant communities (10%). Difference in Provisions of Article 371 between Manipur and some other NE States Special autonomy status has been granted to the complete states of Nagaland and Mizoram under the provisions of Article 371A and Article 371G of the Constitution, respectively, whereas Article 371C relates only to the Hill Areas of Manipur. Also, while Articles 371A and 371G enhance the autonomy and power of the Nagaland and Mizoram state legislature‟s vis-à-vis the Indian Parliament, Article 371C restricts the power of Manipur legislature only to the Hill Areas of Manipur. The same has not only led to a constitutional recognition of the hill-plain divide in Manipur, but, also signifies an inter-state asymmetrical federal provision. The constitutionally designated Hill Areas are inhabited by the tribal, or Scheduled Tribe, people of the state. Conflict of Interests amongst Various Stake Holders There has been a conflict in the demands put forth by the tribal‟s and the non tribal‟s due to inherent clash of interests. The demands include the following:  The non tribal population is demanding for the implementation of the Inner Line Permit System in complete Manipur, so as to remove the hill-plain divide. As per the protestors, it would also restrict and regulate the influx of outsiders and internal migrants “to save the

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culture, tradition, identity and demographic structure of the indigenous people of the state”. However, the proposal is being opposed by the tribal hill people of Manipur.  Since the Manipur Land Revenue and Land Reforms (7th amendment) Bill will now make the tribal areas accessible to all within the state. The ones to suffer would be the tribal‟s, Kukis and Nagas as they would end up losing land to the more prosperous non tribal‟s, like the Meitei‟s.  The second issue which is contentious is that, as per the amendments passed in the Manipur assembly yesterday; those who have settled in Manipur prior to 1951 can have property rights. The protestors say that many do not have the exact records of when they settled in these areas. They feel that it indirectly mean that they will have to give up their land and leave.  In addition to the Inner Line Permit System, the Meitei‟s are also demanding a Scheduled Tribe status, emphasising their “indigenousness”. The larger aim of the protestors seems to be, to convert Manipur into a tribal state (like Nagaland or Mizoram) by forcing the government to admit the Meitei‟s into Scheduled Tribe category and then place the entire state under a uniform Inner Line Permit regime. Conclusion The state government rather than addressing the issue of how to prevent influx of outsiders into the state to safeguard their interests and concurrently respect the constitutionally-sanctioned distinction between the Meitei‟s and the tribal‟s, created a confusion by laying down a base year of 1951 to identify “indigenous peoples of Manipur” – something which is extremely difficult for the nomadic tribal‟s to establish. Any tampering with the safeguards provided to the hill tribes under the provisions of Article 371C will only cause greater unrests in Manipur. At the macro level, government will have to do a tight rope walk to balance regional and ethnic aspirations and suppressing insurgency without collateral damage.

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35) Reasons for India’s dismal-performance in Olympics

Introduction India is the world‟s second most populous country and has a very diverse population with varied sporting skills.

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This year, India has sent its largest ever delegation for the ongoing Rio Olympics (a total of 117 athletes; 34 larger than their previous record of 83 athletes in 2012). The country, during the yesteryears has won eight Olympic gold medals in field hockey. It is interesting to note that between 1928 and 1968, India won all but two of the field hockey gold medals; the other two went to breakaway Pakistan. However, contrary to every ones expectations, there has been drastic ebb in the results shown by our contingent in the Rio Olympics. As on date India has just one silver medal won by PV Sindhu in badminton and a bronze medal won by women wrestler, Sakshi Malik in its kitty. Let us analyze the reasons due to which India has never been able to do well in international level sporting events, especially, in the field and track events. Background Information India was represented by a single athlete, Norman Pritchard, in the 1900 Olympics. He won two silver medals for India. First national Olympic squad was sent by India in 1920, which participated in Summer Olympic Games. Thereafter, India competed at several Winter Olympic Games till 1964. Till date India has won a total of 28 Olympic medals, including the ones of Sindhu and Sakshi (compare it with 25 individual medals, including 21 Gold, won by Michael Phelp of US; two on a single day during this Olympics). Abhinav Bindra became the first and till date the only Indian to win an individual gold medal in men‟s 10m rifle event at the 2008 Olympic Games, and India's first gold medal since 1980, when the men's field hockey team won the gold. In the 2012 London Olympics, India bagged its best haul, six medals, or one for every 200 million people. In the 2008 Beijing Olympics, India got three medals and was lucky to come home with a single medal in the Olympic Games held prior to that. Reasons for India’s Dismal Performance in Olympics Poverty and Struggle for Basics: India, despite its space programme and burgeoning population of billionaires, is still a very poor nation in terms of per capita income, and sport has never been a priority for the government. Therefore, creation of large scale sports infrastructure at the grass route level (small towns and villages), identification of talent through systematically and scientifically conducted aptitude testing and hiring of professional coaches at multiple sports facilities would need a major financial backup. The government can ill afford that kind of financial burden, especially, when it needs to divert funds towards more basic needs, such as food for all, healthcare, education and infrastructure development. Consequently, a lot of latent talent goes undiscovered or inadequately nurtured to compete at the level of Olympics. Lack of Sports Culture in India: This point is also linked to the previous point, that the increasing population is putting pressure on the existing resources. It is an era of survival of the fittest.

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The first thing that the parents want is a financially secure future for their children. In the process, participation in sports is relegated to the last option. The quantum of academic pressure on the youth is so overwhelming that there is hardly any space for man oeuvre left for them to follow their interests in sports. A popular cricketer once narrated an incident from his life in a TV talk show, that when he went with his parents to see a girl for marriage, the girl‟s father asked him, “Ok I understand that you play cricket, but what is your profession?” Indian Diet and Physique: The food that we Indians consume has the poisonous infusion of synthetic sprays, weedy-cides and pesticides. The polluted underground water table and air that we breathe is unfit for health growth and physical development of a child. Besides, the high calorific value and lack of adequate nutrients in tradition Indian cooking, does not provide a balanced diet to the growing children to build up their physique appropriately. The general health and physique of the westerners is better than Indians and hence, the physical output in the field and track events is incomparable. Lack of Recognition of Sportspersons other than Cricket: Cricket continues to dominate India's sporting landscape; gets all the sponsorship deals, handsome cash rewards and even the IPL players get more fame than an Olympics medalist. The Kabaddi men and women‟s teams were hardly even acknowledged for the medals that they brought for the country. Not many of us know that the Indian men's team clinched the fifth Kabaddi World Cup title in 2014 December, while the women's side bagged the crown for the fourth consecutive time. Unlike the cricketers who get a hero‟s welcome on returning victorious after a tournament, the India's women Kabaddi team, which won the World Cup in 2011, had to return home in auto- rickshaws from the airport. There were no flower garlands, no red carpet, no trumpets, and no crowds, nothing to greet these victorious athletes. In 2011, India won the Asian Champions Trophy by defeating arch-rivals Pakistan 4-2 by shoot out in the summit clash. Hockey India announced a paltry cash reward of just Rs 25,000 for the Asian champions‟ Indian team. In 2013, just before an important hockey event, the entire national hockey team was made to sleep in a stadium‟s dormitory. Indian Ice Hockey team has been representing India at international tournaments for last six years and like many other non-cricketing sports, this team too, always faced acute money crunch. Unsuccessful in getting sponsors for the team, the squad literally was forced to scouting, prospecting and even 'begging' for money via the online media to participate at the Asia division leg of the International Ice Hockey Federation Challenge Cup in Kuwait. Keshavan, India's Winter Olympian, who competes in luge, (a kind of super-fast sledge) was the only Indian to qualify in the previous Games and his ticket to Sochi, the venue of Winter Games was paid not by the Indian government but by crowd funding. Corruption in Sporting Bodies, Political Interference and Biased Selection Process: Corruption plagues all major Indian sports, including cricket, hockey, weightlifting, and athletics. The first major sporting scandal was reported during the 1990s, involving match-fixing by Indian cricketers through a Protean bookie, Mukesh Gupta. 136

The next major scandal was in seen in 2010 of $4 billion in Indian Premier League (IPL), which resulted in its former Commissioner, Lalit Modi, resign and flee to London over charges of gross financial irregularities. The scale and magnitude of corruption during the 2010 Commonwealth Games subjected the government to global shame and scorn. The Indian government ended up spending 18-fold more than the $400 million originally allocated in 2003 for the Games, an amount that supposedly could have funded three Olympic Games. In India the sports federations‟ are under state control and due to an inherent technical reason (not covered under the definition of “state” in Constitution of India), these institutions evade public scrutiny, transparency and accountability. The governing boards of the sports federations are under the control of politicians and bureaucrats who have little or no interest and knowledge of the specific requirements and anticipated problems in that sport. The recent unfortunate cases that point out apathy of politicians, who head the sports federations, and the deep malaise prevalent in these institutions include:  Suspension of Indian Olympic Association by International Olympic Committee on grounds of irregularities in appointments, electoral process and lack of transparency.  Tussle between badminton association members and hockey federation with their international counterparts.  Resistance towards implementation of Lodha Committee Report by BCCI and Supreme Court had to intervene to lay down the following deadlines for implementation of the Lodha Committee Report by BCCI:  September 30: Amendments to BCCI and state constitution, Amendments to IPL Code of Conduct and Anti-Corruption Code, Gujarat-Maharashtra rotation policy, Gap between IPL and national calendar, Transparency of tenders Amendment to agent registration norms, players association formation, membership to Puducherry.  October 15: Handbooks for Disabled Cricket and Young Cricketer, website update, reorganizing of the zones, appointment of Electoral Officers. Mary Kom recently spoke out in a press conference against boxing‟s biased selection process that favours boxers from Haryana, who rule the roost in the boxing federation. The bronze medallist from the London Olympics in 2012 was dropped from the contingent that represented India at the Commonwealth Games in 2014 and Pinky Jangra was given her spot. Similarly, there was a recent controversy regarding the selection of Arjun Tendulkar, Sachin Tendulkar‟s son in the under 16 West Zone squad, supposedly over the 1000-run hero Pranav Dhanawade, who is an auto driver‟s son. The controversy surrounding participation in Rio Olympics between Narsingh Yadav from Uttar Pradesh and Sushil Kumar from Haryana in the 74kg boxing category became mysterious when he alleged that his scandalous dope test was a result of conspiracy by rivals who spiked his food or drinks. Regional bias is often alleged in the selection process. When selection of players to represent a country is on grounds other than talent, one really can‟t expect good showing in the sports.

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Lack of Professionalism: A number of instances of sportspersons testing positive for doping just before an international event, mostly unknowingly, depicts a totally unprofessional approach towards the preparation for such important events. Many players are not aware and even coaches prescribe certain supplements to their wards to enhance their performance not realizing that in the long run it's harmful to the health of the athlete. The Indian contingent at the 2004 Olympics was rocked by doping as two weightlifters, namely, Sanamacha Chanu and Pratima Kumari tested positive for banned substances while another lifter Monika Devi was barred from leaving for 2008 Olympics just a day before she was to board the Beijing flight. National Anti-Doping Agency (NADA) tested wrestler, Narsingh Yadav and shot putter, Inderjeet Singh positive for banned substances just before Rio Olympics. The World Anti-Doping Agency (WADA) appealed against the NADA all-clear to Narsingh at the ad hoc division of the Court of Arbitration for Sports (CAS) at Rio, three days ahead of his scheduled opening bout at the Olympics and on 18th August a four year ban has been imposed on the athlete. This recent development is a serious blemish on the Indian sporting authorities and depicts sheer lack of professionalism. Dipa Karmakar and her coach Bishweshwar Nandi embarked on their dream to make Karmakar a world-class gymnast, without state sponsored funding, using makeshift apparatus from a pile of crash mats and discarded parts of a second-hand scooter and no ultra-professional guidance. She attempted the high-risk Produnova vault, also called the “vault of death” simply because there are presently only five such athletes in the world and this vault is banned in many countries owing to high risk to life. Imagine Dipa putting herself in the harm‟s way by using out-of-date equipment without adequate safety means to prepare for the Olympics. She lost an Olympic medal by just 0.15 of a point in the vault finals. She is already 23 years old and hence may not have another chance to represent India in the next Olympics, once again shows how talent is being wasted out by not picking such star protégé‟s at younger age. Low Level of Commitment by Ex-Players: Once their time is done, most Indian sportspersons take to retirement or enter politics or follow personal pursuits. Pullela Gopichand by the time he won the All England Open Badminton Championships in 2001 was already 27 years old. Rather than retiring, he set up Gopichand Badminton Academy in Hyderabad and he has produced many international badminton players like, P. V. Sindhu, Saina Nehwal, Parupalli Kashyap, Srikanth Kidambi, Arundhati Pantawane, Gurusai Datt and Arun Vishnu. If similar commitment is shown by other players and they are absorbed to become part of the executive committee of various sports federations, the story can be different. Inadequate Sense of National Pride: The national pride of most of the people in position of power does not get hurt very easily. The force behind the „will to win‟ has to be from top downwards. Unless the humiliation of defeat in mega-international sporting events is felt strongly at the highest echelons, sports in India will never get the desired priority. 138

My Suggestions for Improving Medal Tally for Future Events It may be unfair to blame our sportspersons, who always give their best, within the constraints of the availability of requisite support system, especially when compared with the nations that are on the top of the medal tally. In order to circumvent the problem of funding and regionalism, each state could be asked to voluntarily pick up just one sport, that the state government feels the people of that state have an aptitude for. The state, with additional support from the centre could then create multiple and world class facilities and hire the best coaches only for that discipline. Budding players from others states could also be co-opted without any regional bias. Ex-players of repute in that sport could be incorporated to form a part of talent hunt teams that could go to every nook and corner of that state to identify potential and then ensure that the future of the recruits so selected is adequately secured. The progress of their training could be closely monitored by eminent sportspersons or selected personnel from the disciplined organizations, like the armed forces. Besides funding by the state/centre government, major industrial/ corporate houses could be asked to provide sponsorships. The incentives for the players and their mentors should be so attractive that everyone goes all out for success. Lastly, inculcating a deep sense of national pride and developing a „killer instinct‟ in the sportspersons to give their last ounce when the need arises has to be the bedrock of their training, for which I guess an attachment with the army training centers initially will be a good idea.

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36) India’s Support to Baluchistan a Counterweight to Cross Border Terrorism in J&K? Introduction In a significant shift in the India‟s Pakistan Policy, Prime Minister Narendra Modi made a categorical reference to providing at least moral and political support for Baloch separatists. Until now, India was fairly restrained in expressing its support for the ongoing struggle for self determination by the Baloch people. However, the recent statement by our PM has given some credence to the Pakistani narrative on the issue. Baluchistan‟s Chief Minister Sanaullah Zehri, was quick to slam PM Modi's statements, alleging that the Indian government "fully supports the ongoing insurgency in Baluchistan." The freedom movement in Baluchistan dates back to the country's creation, when the Muslim majority part of India left and became Pakistan. Significant parts of Baluchistan are not necessarily controlled by Pakistan's central government; the ethnic Baloch areas have a greater sympathy for nationalists who would like to see either an independent or autonomous Baluchistan. Baluch leaders say Baluchistan‟s integration into Pakistan was done forcefully. They complain of utter neglect of this resource-rich province by the Pakistan government, which is mainly spearheaded by the political elites from Punjab. They say that instead of the people benefitting from those resources, they end up in other parts of Pakistan. India‟s support to the ongoing insurgency in Baluchistan will give it a shot in the arm and perhaps pay back Pakistan in the same coin, which is overtly fanning the ongoing 50 day long civil-military stand-off in the state of J&K. PM Modi‟s statement on Baluchistan during his Independence Day speech came a day after Islamabad dedicated its Independence Day celebrations (on 14 August) to the "freedom of Kashmir". The separatists‟ leaders from Baluchistan welcomed PM Modi‟s statement. However, the police was quick to crackdown and registered cases against separatist Baloch leaders Brahamdagh Bugti, Harbiyar Marri and Banuk Karima Baluch in Pakistan for supporting Prime Minister Narendra Modi's statement. Overview of the Baloch Insurgency Geographic Location: Baluchistan Province is the largest region of Pakistan, comprising 44% of the country's total area. The Province has a porous border with Iran to its West, Afghanistan to its Northwest and the Gulf of Oman forms its Southern border. It is a highly resource rich Province, which also houses Pakistan‟s most strategic Gwadar Port within its territorial boundary. This Port and Gwadar economic zone has been leased out by Pakistan to China for construction, exploitation of its resources and operation of the Port.

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Chinese government has announced to finance Chinese companies as part of its $45.6 billion energy and infrastructure projects to build the China-Pakistan Economic Corridor (CPEC) that will link Chinese Xinjiang Province to the Gwadar Port. Demography: The Province of Baluchistan comprises of highly rugged mountainous and desert terrain. The area is very underdeveloped and sparsely inhabited, with only 5% of the total population of Pakistan residing here. Sunni Islam is the predominant religion being practised by the Baloch population. Historical Perspective: The British invaded the Kalat area of Baluchistan in November 1839, and by 1869 was able to establish British supremacy in the complete Baluchistan region, including Balochi dominated areas of adjoining Iran and Afghanistan. In 1931, the educated Baloch middle class commenced a campaign for an independent Baluchistan, free of the British. Baluchistan Muslim League allied with the Muslim League, headed by Pakistan‟s father of the nation, Muhammad Ali Jinnah in June 1939. Jinnah at that stage promised to declare the 'Kalat State as an independent state on 05 August 1947, enjoying the same status as it originally held in 1838. Baluchistan was divided between four princely states under the British Raj. Three of these, Makran, Las Bela and Kharan joined with Pakistan in 1947 after independence. The Khan of Kalat, Ahmad Yar Khan, declared Kalat‟s independence as this was one of the options given to all of the 535 princely states by British Prime Minister Clement Attlee. Going back on its promise, on 27 March 1948, Pakistan formally annexed Kalat. Yar Khan was forced to sign a treaty of accession, submitting to the federal government. Jinnah and his successors allowed Yar Khan to retain his title until the province's dissolution in 1955. Commencement of Insurgency Movement: Baloch separatist movement gained momentum in the 1960s, following the introduction of a new constitution in 1956, which limited provincial autonomy and enacted the 'One Unit' concept of political organization in Pakistan. As per this policy, government‟s representation for tribal leaders decreased. Militant leader, Sher Muhammad Bijrani Marri formed a group and led militants into guerrilla warfare from 1963 to 1969 by creating their own insurgent bases, spread out over 45,000 miles (72,000 km) of land. Their goal was to force Pakistan to share revenue generated from the Sui gas fields with the tribal leaders. The insurgents bombed railway tracks and ambushed convoys. The Army retaliated by destroying vast areas of the Marri tribe's land. This insurgency ended in 1969, with the Baloch separatists agreeing to a ceasefire. In 1970 Pakistani President Yahya Khan abolished the "One Unit" policy, which formally led to the recognition of Baluchistan as the fourth province of Pakistan. However, the unrest continued into the 1970s, culminating into the government ordering military operations in the region in 1973. The same resulted in further escalation of the situation and a large numbers of Marri and Mengal tribesmen joined into the guerrilla warfare against the central government. The Pakistani military lost 300 to 400 soldiers during the conflict with the Balochi separatists, while between 7,300 and 9,000 Balochi militants and civilians were killed. There were many incidents of militant actions and counter actions by the Pakistan army like: 141

In 2004 an insurgent attack on Gwadar port resulting in the deaths of three Chinese engineers and four wounded, which drew China also into the conflict. In August 2006, Nawab Akbar Khan Bugti, 79 years old Baloch leader, was killed in fighting with the Pakistan Army, in which at least 60 Pakistani soldiers and 7 officers were also killed. Pakistan's government had charged him with responsibility of a series of deadly bomb blasts and a rocket attack on President Pervez Musharraf. In April 2009, Baloch National Movement president Ghulam Mohammed Baloch and two other nationalist leaders (Lala Munir and Sher Muhammad) were seized from their small legal office by gunmen and their bullet ridden bodies were discovered five days later. This incident resulted in widespread agitations by the local people against Pakistan security forces. Reasons for Unabated Unrest Regional Divide: The state of Punjab, territory wise constitutes less than one fourth of Pakistan, but make up for 45% of Pakistan's population, whereas, Baluchistan extends over nearly half of the territory of Pakistan, but constitutes only 5% of its total population. Further, Balochs‟ did not look at Pakistan army‟s intervention into their regional politics very favorably, as they saw the Punjabi dominated military lacking in representation of Baloch interests. Neglect of Baluchistan by Pakistan Government: Since the mid1970s Baluchistan‟s share of Pakistan's GDP has dropped from 4.9 to 3.7%. It has the highest infant and maternal mortality rate, the highest poverty rate, and the lowest literacy rate in Pakistan. There is a huge divide between the haves and the have-nots in Baluchistan. The provincial government ministers and officials, own "pieces of land greater in size than some small towns of the country", and own luxury vehicles, properties, investments and businesses valued at millions of rupees. Unfair Revenue Sharing of Assets of Baluchistan: The Balochs‟ feel that the centre government of Pakistan has been unfair in sharing of the revenue generated by resources intrinsic to Baluchistan, like natural gas and oil reserves, exploitation of a host of minerals, usage of Gwadar Port, etc. Skilled workers are often imported from other region, which has created resentment amongst the local inhabitants, e.g. Karachi has been a national financial hub in Pakistan. However, the local inhabitants (Sindhis) became a minority in the largest city of their province due to multiculturalism and non-Baloch immigration from other regions of Pakistan. Also, marginalization as a result of increased Pashtun migration from Afghanistan during the Afghan War drives the insurgency movement in Baluchistan. Iran being a Shiite majority country has being helping Pakistan militarily in subduing the Sunni dominated Baluchistan, which is also a cause of anguish amongst the Baloch people. Rampant Corruption and Gross Human Rights Violations: There has been a governance deficit in Baluchistan as the elected government in the province did not get significant mandates, because the Baloch parties boycotted the last election and many people were elected with an electoral turnout as low as 10 to15 per cent. So, these political leaders are seen by the majority of Baloch as the puppets of Islamabad, who do not care to safeguard the interests of the Baloch people. 142

The Pakistan military‟s very "harsh response" including the use of air power in the region led to "a spiral of violence", resulting in widespread human rights abuses, mass internal displacement and the deaths of hundreds of civilians and armed personnel. Moderate Balochs have been alienated from the government by the imprisonment of civilians without charges, and routine kidnapping of dissidents.

India’s Support to the Humanitarian Crisis in Balochistan It is for the first time that India has openly highlighted the cause and sufferings of the Baloch people. India has also garnered support of Bangladesh and Afghanistan on the issue, who are also affected by Pakistan‟s state sponsored terrorism on their soil. India and Pakistan had agreed in 1972 while signing the Shimla Agreement that they would keep J&K as a bilateral issue and would refrain from third party mediation. However, Pakistan has always highlighted this bilateral issue in all international forums. So, it is high time now for India to highlight the atrocities and human rights violations being committed by Pakistan in so called Azad Kashmir or POK, as we refer to it, and also in Baluchistan. Besides, Pakistan army, which is presently over stretched to fight on three fronts, i.e. militancy in the AF-Pak area of Waziristan, the Baluchistan insurgency and the Line of Control with India, saves India some effort to keep the notorious Pakistan military and the ISI on its toes. Lastly, Gwadar Port in Baluchistan is strategically and economically as important to Pakistan and China, as the Chabbar Port in Iran is to India, as it phenomenally reduces the distance to Central Asia and Europe. The militancy in Baluchistan will adversely affect both these countries, especially, China which has committed billions in that region, to include: $230 million to construct a new international airport in Gwadar which is to be operational by December 2017. Development of the city of Gwadar by the construction of a 300MW coal power plant, a desalinization plant, and a new 300 bed hospital. Companies from Xinjiang have signed agreements with their Pakistan counterparts in April this year worth $2 billion for infrastructure, solar power and logistics. The expanded port will be located near a 2,282 acre free trade area in Gwadar, which was handed to the China Overseas Port Holding Company in November 2015 as part of a 43-year lease. Businesses located in the zone would be exempt from customs authorities as well as many provincial and federal taxes. It is being envisaged that by 2025, the manufacturing and processing industries will be developed, and further expansion of the zone is intended to be complete by 2030. However, the prevalent hostile environment in Balochistan will severely hamper the proposals. Significance of Gilgit-Baltistan Areas of Jammu and Kashmir The Gilgit-Baltistan area of Jammu and Kashmir occupied by Pakistan covers 85,793 sq km. It was further divided in 1970 into two separate administrative divisions: Mirpur-Muzaffarabad 143

(which Pakistan calls Azad Jammu and Kashmir, or AJK) and the Federally Administered Gilgit-Baltistan. Gilgit-Baltistan was earlier referred to as the “Northern Areas” in Pakistan. Pakistan illegally ceded the Shaksgam Valley, around 5,180 sq km, to China in a 1963 border agreement. In order to accord some legal cover, in 2009, Pakistan passed a Gilgit-Baltistan Empowerment and Self-Governance Order. The order allegedly granted self-rule to the people by creating a legislative assembly and a council, yet did not provide for any constitutional means of linking it to Pakistan. Islamabad believes that this way it is able to maintain its somewhat convoluted stand on Jammu & Kashmir. However, Pakistan has denied the people of the region their political rights, and has been continuously working towards absorbing these territories. The fact that a federal minister of Pakistan is also the „Governor of Gilgit-Baltistan‟ speaks for the restricted freedom given to the region for self governance. The significance of the Gilgit-Baltistan region is that, China has constructed the Karakoram Highway linking Kashghar in Xinjiang with Gilgit and Abbottabad through the Khunjerab Pass. This China‟s Silk Road Initiative is being developed as a link from Xinjiang to Gwadar port in Balochistan through a highway, a possible railroad and oil and gas pipeline. Thus, both Pakistan and China will obstruct, tooth and nail, any move by India or claim, howsoever legitimate to acquire back this region, which rightfully belongs to India. Conclusion The Pakistan Occupied Kashmir (POK) and the Gilgit-Baltistan areas, as remarked by PM Modi during his Independence Day speech, are very much an integral part of India, which has been illegally occupied by Pakistan since 1947. In keeping with the Shimla Agreement of 1972, India had tended to play down, its own legal claim over the Gilgit-Baltistan, especially at the international forums. As a result, the world assumed that the „Kashmir problem‟ only pertained to the Kashmir Valley which was in India‟s possession. Now that Pakistan has completely gone overboard, in contravention to the Shimla Agreement, by expressing its solidarity through moral and material support to the so called cause of J&K, India should also not leave any stone unturned to highlight the sub-human conditions and the human rights violations that the people of POK, Gilgit-Baltistan and Balochistan are suffering from time immemorial.

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37) Salient Features and Global Implications of Logistics Exchange Memorandum of Agreement (LEMOA)

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Introduction The military association between India and USA etched a new milestone by signing the landmark Logistics Exchange Memorandum of Agreement (LEMOA) in Washington on 29 August 2016. The Agreement was signed between Defense Minister Manohar Parrikar and US Defense Secretary Ashton Carter to facilitate opportunities for “practical engagement and exchange”. It is a significant departure from India‟s policy from the Nehruvian era of not to enter into a military agreement with any major power, and to remain non-aligned. Congress party remarked that this was a fundamental shift from the time tested policy of “strategic military neutrality”. The Communist party went a step ahead and said that the government had “compromised Indian sovereignty” and “surrendered strategic autonomy” by inking the pact. However, Mr Manohar Parrikar elucidated that the “agreement does not create any obligation on either party to carry out any joint activity” and “does not provide for the establishment of any military bases or basing arrangements”. Nonetheless, the Agreement paves the way for both the militaries to work closely and use each other‟s bases for repair and replenishment of supplies. The logistics agreement between the two countries was first proposed in 2003, but India did not agree to its signing, until April this year during the visit of US Defense Secretary Ashton Carter to India, when it was agreed to, in principle to ink the pact. The other two agreements, i.e. the Communications and Information Security Memorandum of Agreement (CISMOA) and a Basic Exchange and Cooperation Agreement for Geospatial Information and Services Cooperation (BECA), which were also discussed during the above said visit, have been deferred for now.

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Salient Features of LEMOA The Agreement will allow reciprocal logistic support to each other‟s fleet exclusively during authorized port visits, joint exercises, joint training, and humanitarian assistance and disaster relief operations. Logistics support for any other cooperative effort may also be provided through prior mutual consent of the parties, consistent with their respective laws, regulations and policies. Provision of logistic support, supplies, and services from one party to the other would be in return for either cash payment or the reciprocal provision of logistic support, supplies, and services. The LEMOA does not allow building of bases on each other‟s soil; however, the militaries of both countries can operate closely by using each other‟s bases for logistics support. The US has signed similar Logistic Support Agreements (LSA) with more than 60 other countries and it has a standard text. However, the Indian government insisted on introducing various clauses to safeguard territorial integrity by preventing unrestricted access to US military and also allay its concerns of establishment of military bases by US on Indian soil. The text was appropriately amended and the Agreement‟s name was changed from LSA to LEMOA. Indo-US Economic Cooperation The Indo-US cooperation on the economic front has not seen any significant up thrust in spite of PM Modi‟s continued propagation of open-to-business image of India. US Secretary of State John Kerry arrived in New Delhi on 29 August 2016 to participate in the 2nd Indo-US Strategic and Commercial Dialogue. The issues that were discussed included terrorism emanating from Pakistan and other important bilateral economic matters like visas, trade and commerce. The export of US goods to India has grown only by 22 percent since 2008, and Indian exports to US have not grown in the past two years despite a much healthier economic outlook. The economists attribute India's protectionist approach and a lack of political appetite in the US that has resulted in the non endorsement of Free Trade Agreement between the two countries. Besides, the two sides also have not been able to sign the bilateral investment treaty (BIT), though negotiations are on since 2009. BITs protect the interest of foreign investors and are considered essential to stable investment flows and also to boost growth in services trade. Global Implications of LEMOA The LEMOA is undoubtedly a major stride in the Indo-US military cooperation and a major departure from India‟s foreign policy of strategic neutrality. Though China has downplayed it, but it surely has significant implications on the balance of power in the region. The cold war era saw India moving closer to USSR and to counterbalance their presence and establish their foothold in the region, USA found an ally in Pakistan. The breakup of USSR into its constituent states, ushering in of information technology into India, opening up of India economy through economic reforms starting from 1990 and

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availability of a huge consumer base for American manufactures started to change the equation of Indo-US relationship. Presently, US require the support (administrative bases, movement of supplies and intelligence inputs) from Pakistan in its ongoing fight against terror in Afghanistan, which is now reaching a culmination point. Also, US sees China as a major economic and military power that can openly challenge its might. China has continued to propagate its policy of expansionism by enhancing its territorial and maritime influence. Frequent warnings by the US; to the contrary have fallen on China‟s deaf ears. Further, US and its European allies have imposed crippling economic sanctions on Russia for its intervention in Ukraine. Consequently, the Russian economy is in shambles and at the verge of a collapse. In order to remain afloat, Russia is now looking for trading partners in Asia. Russia has abundant availability of natural gas and China needs energy to fuel its manufacturing sector, which is its mainstay. Taking advantage of Russia‟s current unfavorable state, China is leveraging its position to negotiate long-term contracts for Russian gas at cheap rates. Russia has signed contracts with China to supply 38 and 30 billion cubic metres of natural gas annually from 2018, for a period of 30 years scalable at a later date to 100 billion cubic metres per year from its Siberian gas fields. Russia is also making a serious endeavour to bolster relations with Pakistan. Russian Defence Minister visited Pakistan (first visit since 1969), and signed their first military cooperation agreement on 20 Nov 2014, which included joint naval exercises, military officer exchanges, arms sales, counter-narcotics and counter-terrorism cooperation. Pakistan‟s Chief of Army Staff General Raheel Sharif had visited Russia in June 2015 and Russia has signed a deal with Pakistan at Rawalpindi to supply Mi-35 attack helicopters, „Hind‟ to Pakistan on 20 August 2015. At one time, Russia contributed 75% of military hardware procured by India from abroad, in contrast to USA, which was just 5%. However, since 2007 US has bagged more than $14 billion worth of military contracts and more are in the pipeline. As a result, US have taken away this advantage from Russia and has become India‟s largest supplier of military hardware over the last four years. Therefore, Russia is viewing the Indian drift towards USA as a reason for forging better ties with China and Pakistan. Consequently, Russia-China-Pakistan have got knotted up into a marriage of convenience; Russia to survive the economic sanctions imposed by Europe and US needs a market to sell oil and other products, China to access and satisfy its growing energy demands from Russia and its compulsion to feed Pakistan so that it can continue to be a thorn in the back of its major economic competitor, India and Pakistan feeling orphaned by US is like a polio infected chid that needs extrinsic support of China and Russia to stand. Thus, signing of LEMOA will definitely serve as a deterrent to the collective intimidation tactics being conjured in India‟s neighborhood. 148

Conclusion This exceptional, but significant step taken by the government has not been received too well by some, who feel that US is a very slippery customer, who never thinks beyond its own interests. Once it makes inroads into someplace it is very difficult to get rid of it. Look at Waziristan/ Baluchistan region of Pakistan, where it is using the administrative backup from Pakistan for war in Afghanistan and bombing its territory, causing hundreds of civilian causalities. In one of the Drone attacks, US wiped out a complete post of Pakistani soldiers deployed there. Though, India has taken the necessary safeguards while signing the pact, it has to be doubly sure while asking for support during any such exigency. Finally, the LEMOA will definitely make India feel safer, but it is envisaged that the Agreement is likely to bring strategic troubles to itself and make India vulnerable to geopolitical rivalries in Asia

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38) The Formidable Arsenal Created by the Indian Integrated Guided Missile Development Programme

Introduction

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Integrated Guided Missile Development Programme falls under the ambit of Ministry of Defense with the objective of developing a range of guided missiles that provides India with a stellar military might and also, serve as a deterrent for our not so friendly neighbors, like China and Pakistan. Dr APJ Abdul Kalam, who worked with the ISRO and was closely involved in the development of Satellite Launch Vehicle, SLV-3, was inducted into the IGMD programme in 1980. Because of the success achieved by India in the guided missile development programme under his stewardship, he came to be known as the ‟Missile Man of India‟. The programme kick started in 1980 and ended in 2008, when Defense Research and Development Organization (DRDO), formally announced on 08 January 2008, that the strategic integrated guided missile program had achieved its stated objective of developing the missiles listed in the program and the missiles after having been duly tested, inducted into the armed forces. India‟s prowess with regard to guided missile development came into prominence when Prithvi missile was test fired in 1988 and Agni missile in 1989. Meanwhile, the Missile Technology Control Regime (MTCR), (an informal grouping was established in 1987 to restrict proliferation of missile technology to restrict arms race amongst nations) found the potential of India‟s strides into this field gigantic. Its member countries, Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, decided to restrict access to any technology that would help India in its missile development program. In order to counter the move of MTCR, the IGMDP, made a consortium of DRDOs laboratories, industries and academic institutions to indigenously develop these sub-systems, components and materials. Though, it delayed the progress of the programme, but India made a slow, but sure ascends towards success. The Missile Inventory of India o Prithvi Missile System. It is a surface-to- surface, short range ballistic missile. It was test fired on 25 February 1988 from Sriharikota. It has three variants: o Prithvi-I. Range – 150 km with a 1000kg payload of Nuclear, High Explosive (HE), sub munitions and chemical warhead. Missile inducted into service in 1998. o Prithvi-II. Range – 350 km with a 350 to 750 kg payload of Nuclear, HE, sub munitions and chemical warhead. Missile inducted into service in 1996. o Prithvi-III. Range – 350-600 km with a 500 to 1000 kg payload of Nuclear, HE, sub munitions and chemical warhead. Missile inducted into service in 2004. o The naval operational variant of Prithvi I and Prithvi II class missiles are code named Dhanush (meaning Bow) and are meant for surface targets. Agni Missile System. These are medium (< 5,500 km range) to intercontinental (>5,500 km range) ballistic missiles. The Agni series comprises of the following missile variants: o Agni-I. Range 750-1250 km with 750-1000kg payload of Nuclear, HE, penetration, sub- munitions warhead. Missile inducted into service in 2002. o Agni-II. Range 2000-3500 km with 1000kg payload of Nuclear, HE, penetration, sub- munitions warhead. Missile inducted into service in 1999. 150

o Agni-III. Range 3500-5000 km with 2000- 2500kg payload of Nuclear, HE, penetration, sub-munitions warhead. Missile inducted into service in 2011. o Agni-IV. Range 3000-4000 km with 800-1000kg payload of Nuclear, HE, penetration, sub- munitions warhead. Missile inducted into service in 2014 o Agni-V. Range 5,500-5800 km with 1500kg payload of Nuclear, HE, penetration, sub- munitions warhead. This is an Intercontinental Ballistic Missile (ICBM). Agni-V was tested in 2012 and again in 2013. A canisteristed test fire of this missile was successfully conducted from Wheelers Island at 8.09 an on 31 January 2015. The induction of this missile into the armed forces will put India into the select club of countries with such a military prowess. o Agni-VI. Range 6000-8000 km with 1000kg payload of Nuclear, HE, penetration, sub- munitions warhead. This missile is still under development.  Akash Missile System. The indigenously developed Akash missile is a medium range surface-to-air missile. It has a range of 27 km and an effective ceiling of 15 km. It was successfully test fired from the Integrated Test Range at Balasore on 19 June 2014. The 700 kg all weather Akash missile can carry a warhead of 60kg at speeds up to Mach 2.5. It can operate autonomously and simultaneously engage and neutralize different aerial targets.  Trishul Missile System. This is a short range surface-to-air missile, with a range of 9 km, with a payload of 5.5 kg warhead. Designed to be used against low-level (sea skimming) targets at short range, the system has been developed to defend naval vessels against missiles and also as a short range surface to air missile on land. Though it has been developed and test fired by IGMDP, its development costs was exorbitant and touched almost US$70 million, so the project has been officially shut down on 27 February 2008.  Nag Missile System. This is a third generation fire and forget anti-tank missile. Nag missile, is all weather, top attack missile, with a range of 3km-7 km. Missile uses 8 kg of tandem High Explosive Anti-Tank warhead, capable of defeating modern armours like Explosive Reactive Armor and Composite Armor. The user trail of Nag was completed in 19 March 2005.  BraMos Cruise Missile. In 1998, the Government of India signed an agreement with Russia to design, develop, manufacture and market a Supersonic Cruise Missile System which has been successfully accomplished in 2006.  It is a super-sonic (higher than the speed of sound) cruise missile that can be launched from submarines, ships, aircraft or land. At speeds of Mach 2.5 to 2.8, it is the world's fastest cruise missile with a range of 290 km and is about three and a half times faster than the American subsonic Harpoon cruise missile. The missile was successfully test fired on 09 June 2014 for induction into the Indian Navy.  While the BrahMos is currently surface and aircraft launched weapon, it is being tested for launch from a submarine, and the sub-launched version is likely to be offered to Vietnam for use on Vietnam‟s Kilos, much to the annoyance of China.  Shaurya Missile. A Canister launched hypersonic (highly supersonic i.e. above Mach 5) surface to surface tactical missile developed by DRDO in 2011.

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 It has a range, between 750 to 1900 km, and is capable of carrying a payload of one ton conventional or nuclear warhead. It can fly at a very low altitude and prevent detection by anti-missile weapon systems.  Sagarika Missile/K-15. This is a nuclear capable submarine launched ballistic missile with a range of 700 km to provide retaliatory nuclear strike capability to India. The missile is being tested for integration with INS Arihant.  K4 Missile. India successfully test fired the nuclear-capable ballistic missile launched from an underwater platform, with a range of 2000km in February 2014. With this India completed the nuclear triad available with only a few nations of having the capability of launching surface, air and underground nuclear-capable ballistic missiles.  Surya Missile System. This is India‟s very ambitious plan of developing ICBM with a range of 8000-12000 km. The missile system is still under development.  Nirbhaya Missile. This will be India‟s first all weather, low cost, long range cruise missile. The subsonic Nirbhay is said to be 6 m in length with a 520 mm diameter, weigh 1,000 kg and have a 1,000 km range with a speed of 0.7 mach. This missile was test fired for the first time in March 2013 and is in the final stages of development.  Astra Missile. India successfully test fired its first indigenously developed air -to-air missile, Astra missile, from a Sukhoi-30 Mk1 combat jet on 24 May 2014.The missile has a range of around 40 km, which will be extended to 100 km in the next phase. Air Force will have this missile as its future mainstay missile system and DRDO is aiming to arm the complete fleet of Aircrafts with this missile, including Sukhoi's and Tejas, Light Combat Aircraft, which is still under development.  Prahar Missile. It is a multi-missile launcher system with a range of 150 km that will have the capability to fire six missiles from its multi-launcher system. This missile system is also under development. Difference between Ballistic and Cruise Missiles A Ballistic missile follows a free-fall or ballistic trajectory to deliver one or multiple warheads at the target end. Ballistic missiles are primarily intended for use against ground targets. The missile is only briefly guided during the initial phase and most of its trajectory is unpowered and governed by gravity and air resistance. The long range ICBMs spend most of their flight out of the earth‟s atmosphere (hence, ballistic missiles can achieve longer ranges than the cruise missile of the same size) and re-enters the atmosphere in its terminal phase. The short range ballistic missiles, however, stay within the earth‟s atmosphere. The initial phase is powered by either a liquid or solid fuel rocket and the flight of a ballistic missile includes three phases: (a) Boost phase, where the rocket generates thrust to launch the missile into flight. (b) Midcourse phase, where the missile coasts in an arc under the influence of gravity, and (c) Terminal phase, in which the missile descends towards its target. Prithvi, Dhanush and the Agni are examples of ballistic missile held with India. Pakistan inventory has ballistic missiles such as Hatf, Ghauri and Shaheen.

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In contrast a Cruise missile is an aerodynamically guided missile that remains within the earth‟s atmosphere, flying at approximately a constant speed throughout its flight and is used against terrestrial targets. The cruise missiles are powered by more economical jet engines instead of rocket motors as in the case of ballistic missiles, which requires large amount of fuel, making the launch vehicles of ballistic missiles larger and easier to detect and intercept. The accuracy, and circular error probability of a Cruise missile is better than the Ballistic missile. It is for this reason that the cruise missiles are used to attack high value targets at long ranges, like ships, command and communication centres, bridges and dams. Cruise missiles are designed to deliver large warheads over long distances using ramjet engines with high accuracy. It is capable of travelling at supersonic or subsonic speeds, has inbuilt navigation system and fly at extremely low altitude trajectory to avoid detection. The cruise missiles are overall cheaper, more mobile, accurate and versatile as compared to the ballistic missiles. However, the ballistic missiles have greater terminal speed and become difficult to be intercepted at that stage. BrahMos, Shaurya and Nirbhay are examples of Cruise missiles held with India. Pakistan currently has three cruise missiles, air-launched Ra‟ad, ground-launched Babur and sea- launched Zarb. Differences between: Unmanned Aerial Vehicle (UAV), Drones and Remotely Piloted Vehicle (RPV) UAVs are basically planes that do not have a cockpit, hence no pilot. UAVs rely on a pre- programmed flight plan for remotely sent heading changes. It is the on-board computer of the plane that actually controls it and reacts to changing conditions in order to reach the desired location. UAVs are being extensively used for aerial reconnaissance, mapping, etc. The Indian armed forces has been operating UAVs for more than a decade now, initially the Searcher Mark I, was obtained, followed by the Searcher Mark II which could operate at an altitude ceiling of 15,000 ft and finally the Heron, from Israel which can operate at an altitude ceiling of 30,000 ft. Besides the Nishant UAV developed by the DRDO is also in service. The indigenously developed Rustom-I and Rustom-II, by DRDO will replace/supplement the Heron UAVs in service with the Indian armed forces. The term “drone” was originally applied to pilotless airplanes used in target practice. These are machines/vehicles that are piloted through pre-programmed computer software or a remote pilot. Hence, a Drone can also be called an Unmanned Aerial Vehicles (UAV). Drones are semi-autonomous vehicles that may be incorporated in larger spacecraft to expand its launching capabilities. The subtle difference that has emerged during recent times is that the UAVs are invariably unarmed and used mostly for surveys, mapping, visual and thermal imaging of a region and other less lethal tasks, whereas, Drones are generally armed with lethal weapons and have more of military application like inflicting casualties to militant leaders and destruction of their war waging machinery. Thus, any flying drone has to be a UAV, but not every UAV has to be a drone. 153

During his official visit to USA in the last week of August 2016, the Indian Defence Minister, Manohar Parrikar, sought for 100 unmanned aerial vehicles (UAVs), both armed and surveillance versions, worth USD 2 billion to bolster its arsenal. India‟s primary concern is to keep a hawk's eye on the long porous border with Pakistan and thwart incursions in the Northeast by the Chinese PLA, and also, monitor the presence of Chinese submarines and warships in Indian Ocean. In 2015, the US government had cleared General Atomics' proposal to market the unarmed Predator XP in India, which can remain airborne for 35 hours at a stretch and is equipped with lethal air-to-air and air-to-ground missiles. The Predator XP can take to the skies in any weather condition, day/night and strike pre- designated targets with pin-point accuracy from a height of 26,000 feet. Besides, it can provide effective intelligence, surveillance and reconnaissance (ISR) capability using high-definition radar and electro-optical/infrared (EO/IR) coverage along our borders. The DRDO is also working on using the American RQ-1 Predator template for the Rustom program and convert a robust surveillance drone into a combat drone in the form of Rustom-H. The same is underdevelopment and will have a great deal of mission flexibility. Lastly, the Remotely Piloted Vehicle (RPV) is a type of UAV with similar basic design and structure. However, in case of a RPV, the pilot is not really eliminated but just relocated to a remote and safe location. The RPV still functions like a typical airplane, and the pilot still has a cockpit with all the necessary controls except that the inputs provided by the pilot are now transmitted to a military satellite which then sends it to the RPV. Therefore, it can still be tasked with missions that are typically done by piloted planes, like surgical strikes on high value, high risk targets, without any risk to the pilot. Conclusion India, while it embarked upon its nuclear programme, had advocated and still maintains its policy of „No First Use‟ and justifies the development of its nuclear and guided missiles capability only for „Credible Minimum Deterrence‟. India has come a long way since the 1970‟s and today exhibits a clear strategic vision of it futurist Endeavour in this field. The Guided missile programme has not only become central to India's 'minimum deterrent' policy, but more significantly, it is indicative of an independent, self-reliant, and strategically autonomous Indian state.

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39) Unparallel Feats by ISRO in 2016: Navigation with Indian Constellation (NAVIC), Reusable Launch Vehicle (RLV) and SCRAMJET Technology

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Today, the Indian Space Research Organization (ISRO) is amongst the world's best in space technology. The space programme has been the fore-runner to the coveted Integrated Missile Technology Programme of India and encompasses interdisciplinary areas of space technology, rocket research, testing, launch and tracking. In the succeeding paragraphs we shall discuss the contours of Indian space programme and the distinctive achievements of ISRO. Advent of Space Research Programme India‟s pursuit for space research began immediately after it became a Republic on 26 January 1950, and in the same year set up the Department of Atomic Energy, with Homi Baba as it secretary. When Soviet Union launched „Sputnik‟ into space in 1957, it opened the vistas for space exploration for the rest of the world. Indian National Committee for Space Research (INCOSPAR) was established at Bangalore in 1962 with Viram Sarabhai as its Chairman. In 1969, INCOSPAR was superseded by the Indian Space Research Organisation (ISRO), which is the world‟s largest Government space agency. Its objective is to advance space technology and use its applications for national benefits. Milestones in the Journey of ISRO First Indian Satellite India built its first satellite, „Aryabhatta‟ that was launched into space by Soviet Union on 15 April 1975. During the 1960‟s and 70‟s programme were initiated for the development of indigenous launch vehicles, and finally in 1979, ISRO successfully developed Satellite Launch Vehicle (SLV-3). First Satellite Launched Indigenously In 1980, „Rohini‟, was the first satellite placed into orbit by the Indian SLV-3. India was dependent on Russia for the commercial launch of satellites. Therefore, in order to achieve self sufficiency in this field, the period from 1980 - 1990‟s was dedicated to the development of Polar Satellite Launch Vehicle (PSLV) and Geostationary Satellite Launch Vehicle (GSLV). Polar Satellite Launch Vehicle India developed this capability for launch of Indian Remote Sensing (IRS) satellites into Sun synchronous orbits. PSLV can launch small size satellites into geostationary transfer orbit. PSLV was first launched on 20 September 1993. As of 2015 the PSLV has launched 93 satellites (36 Indian and 57 foreign satellites of 20 different countries) into a variety of orbits. Polar Satellite Launch Vehicle broke the Russian held world record of launching ten satellites at one time in 2008. On 30 June 2014, PSLV successfully launched five satellites (besides its own, Canada, Singapore, Germany and France) into orbit. Polar Satellite Launch Vehicle successfully placed six satellites from Singapore in orbit after launching from Indian Space Research Organization‟s space port in Sriharikota on 16 December 2015. Geostationary Satellite Launch Vehicle (GSLV) 157

GSLV is meant to launch heavy satellites like the INSAT series, with a payload of 500 tons (in comparison Aryabhata which was 40 kgs only) to low earth orbit. GSLV has been built by India with the cryogenic engine purchased from Russia. The transfer of technology for cryogenic engines from Russia was withheld due to the UN Resolution imposing sanctions against India after the Pokaran Nuclear Test conducted by India in May 1998. India pressed into action its own cryogenic engine development programme. On 25 December 2010, ISRO, finding itself very close to achieving a success received a setback as the GSLV launch failed due to technical snags. Again in August 2013 launch had to be aborted because of fuel leakage during the second stage of launch. Finally, on 05 January 2014, GSLV D5 successfully launched GSAT-14 into its intended orbit putting India into the elite ‘Cryo Club’, a select group of space-faring nations. The other countries that possess this capability are USA, Russia, France, Japan, and China. This capability was crucial for India as it has been paying $85-90 million (500 crores) as fee to foreign agencies for launching communication satellites weighing 3.5 tons. Satellites launched by ISRO for national benefit include: INSAT Series. Multi-purpose geostationary satellites commissioned in 1983. It satisfies the need for telecommunication, broadcasting, metrology and search and rescue missions. INSAT is the largest domestic communication system in the Asia Pacific region. IRS Series. Indian Remote Sensing Satellite System is the largest Remote Sensing constellation for civilian use in operation in the entire world. It provides useful data to undertake relevant national development programmes. RISAT Series. Radar Imaging Satellites RISAT-1 and RISAT-2 have been launched to obtain high resolution data. GSAT Series. These are experimental satellites launched from GSLV. GSLV D5 successfully launched GSAT-14 into its intended orbit on 05 January 2014. GSAT-16. A multi-application satellite for telecommunication was successfully launched from on board Arianespace rocket from the space port of Kourou in French Guiana on 07 December 2014. GSAT-16 has 48 transponders, which is the largest ever carried by a communication satellite. The satellite has been built by Indian Space Research Organization (ISRO), and is designed to provide direct-to-home (DTH) television broadcast covering the complete Indian Sub-continent. Kalpna-1. ISRO dedicated its Metrological satellite launched on 12 September 2002, originally called MetSat to Kalpana-1 after her unfortunate demise. IRNSS Series. It is an independent regional satellite system developed by India to provide accurate position information to users in India and up to a distance of 1500 km of its boundary. This autonomous regional satellite navigation system has been indigenously developed by ISRO and will be under the exclusive control of the Indian government. It has been developed to offset reliance on global navigation satellite system like GPS, the availability of which cannot be guaranteed during hostile conditions. The Indian Regional Navigation Satellite System or IRNSS with an operational name of NAVIC stands for Navigation with Indian Constellation. 158

The fully deployed NAVIC system consists of 3 satellites in GEO orbit and 4 satellites in GSO orbit, approximately 36,000 km altitude above earth surface. Besides these seven, two satellites will be on the ground as stand-by. The constellation comprising of these seven satellites are called IRNSS-1A to IRNSS-1G. The last satellite to complete the constellation was successfully launched on 28 April 2016 using PSLV-C33. The navigational system so developed will be a regional one targeted towards South Asia. The constellation will provide navigation, tracking and mapping services. The Standard Positioning Service will be open for civilian use, while, there will be some restricted services with encryptions for authorized users only, like the military. It may be highlighted here that, missile targeting could be an important military application for the constellation. Once the NAVIC is declared operational after checking the systems – space (satellites), ground (ground stations) and the user-end signal receivers, India will formally join a select group of nations owning their own Navigational Satellite system. Record Launch of Satellites A commendable feat of launching 20 satellites from a single rocket was achieved on 22 June 2016. India‟s Polar Satellite Launch Vehicle (PSLV) took flight from the ISRO launch pad at Sriharikota, with India‟s earth observation satellite Cartosat-2, Google-owned Terra Bella‟s SkySat Gen2, and 18 other satellites, mainly from other countries were onboard the PSLV-C34. India had earlier launched 10 satellites in a single mission in April 2008. Just for information, NASA had placed 29 satellites in a single mission in 2013 and 33 satellites were launched by Russia in 2014 in one mission. Lunar Exploration Chandrayan-1 First unmanned mission to moon was launched using modified version of PSLV from SD Space Centre, Srihaikota on 22 October 2008. It comprised a Lunar Orbiter that orbited the moon to survey the lunar surface to produce a complete map of its chemical characteristics and 3-dimensional topography and a Lunar Impactor for the moon impact probe. Chandrayan-1 became the first lunar mission to discover the traces of water on moon. Chandrayan-2 Is being planned to be launched using GSLV-MkII by 2016-17 and it will be India‟s second unmanned Lunar mission to further understand the origin and evolution of moon. Mars Exploration ISRO launched its $74 million first Mars Orbiter Mission called the Mangalyan on 05 November 2013. It carries 15-kilogram suite of five science instruments to study the Martian upper atmosphere, surface features and mineralogy. Indian scientists on 22 September successfully tested the main engine of the country‟s Mars mission spacecraft and completed a course correction that put the probe on track to enter the red planet‟s orbit on September 24. ISRO achieved the unattainable on 24 September 2014, and India became the first country in the entire world to put the Mars Orbitter into its intended orbit at a distance of 423 km from

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Mars in its first attempt and became thefourth country in the world to achieve this commendable feat. Futuristic Technologies Reusable Launch Vehicle (RLV) It may be understood that, 80 per cent cost of the launch vehicles is structural while only 20 per cent is spent on fuels or expendables. RLV can help save the structural costs by 10 times, as their body can be used for future missions too. However, the exact cost saving can only be assessed, when it can be estimated as to how many missions a single RLV can handle or it can be reused for. ISRO has predicted that the much cheaper RLV is likely to replace PSLV in about a decade. However, the GSLV might continue to be operational for a few more years, as it is substantially cheaper than the PSLV. Adding another feather to its cap, The Indian Space Research Organization conducted the test trial of its Reusable Launch Vehicle (RLV-TD) on 23rd May, 2016. It has taken five years for a team of 600 scientists at the Vikram Sarabhai Space Centre in Thiruvananthapuram to build the RLV at a cost of Rs 95 crore. The final cost of development will only get revealed, once the RLV becomes operational in about ten years‟ time. To launch the spacecraft at Sriharikota, a nine-ton rocket engine was designed to vertically lift the winged body to an altitude of 70 km, after which it took off on a free-gliding flight. Its initial velocity was five times the velocity of sound. It landed about 500 km from the launch- site, in the waters of the Bay of Bengal. SCRAMJET Technology Super Sonic Combustion RAM Jet or SCRAMJET, a new rocket engine was test fired by ISRO from Sriharikota, off the coast of Andhra Pradesh, on 28 August 2016. This rocket, also called the Advanced Technology Vehicle (ATV), lift-off a weight of 3,000 kg during its testing. Usually, the rockets carry both fuel and oxidizer for the combustion. However, this new engine takes in oxygen from the atmosphere as its fuel, thus, reducing the overall weight of the rocket and increasing its efficiency. The aim of ISRO is to place this new rocket alongside the Re-usable Launch Vehicle (RLV) to make rocket launches more affordable. Currently it costs around $20,000 to send one kg of matter into space and this new technology could bring down launch costs by as much as ten times. The successful testing of SCRAMJET, has placed India amongst the only two other nations who posses this technology, i.e. America and Australia. Utilization of SCRAMJET for Launch of Weather Satellites The Indian weather satellite, INSAT-3DR will be launched using the SCRAMJET engine on 08 September 2016. The geosynchronous satellite launch vehicle (GSLV-MkII) rocket on which the weather satellite INSAT-3DR will be mounted has been fully assembled. Another weather monitoring and forecasting satellite, ScatSat will be launched with polar satellite launch vehicle (PSLV) by the end of September.

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The Indian satellite, ScatSat will be a co-passenger to an Algerian satellite. Both these satellites will be put into different orbits. The fourth engine of the rocket will be switched off after ejecting ScatSat first, and then, after a gap of around 30 minutes, the engine will be switched on and put the Algerian satellite into its intended orbit. The scramjet engine, which will be used only during the atmospheric phase of the rocket's flight, will help to bring down the launch cost of weather satellites by reducing the amount of oxidizer to be carried along with the fuel. Conclusion Indian Space Research Organization is the finest example of an efficiently run Public sector organization. It has functioned with meager resources and shoe string budgets to contribute exceptionally in the field of space research. The high level of technological expertise available with ISRO and its functional model of planning, designing, management, execution and man-management, can be replicated in other fields that require immediate attention like, efficient transportation, water management, pollution control, power generation and distribution that are vital to country‟s growth. The recent developments like the completion of Navigation with Indian Constellation (NAVIC), testing ofReusable Launch Vehicle (RLV) and the incorporation of SCRAMJET Technology are truly unparallel feats demonstrated by ISRO within the constraints of available resources.

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40) Building Robust Strategic Partnership with Vietnam and other SE Asian Countries – an Imperative for India

Introduction

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Prime Minister Narendra Modi made a stopover visit to Vietnam on his way to Hangzhou, China for the G-20 Summit, on 02-03 September 2016. This is the first visit by PM Modi to Vietnam and the fourth by any Indian PM. India is pushing to secure a broad based relationship with Vietnam as it has strategic interests in the region. During this visit of the PM, the Indo-Vietnam relationship has been upgraded to „Comprehensive Strategic Partnership‟. India‟s interests in Vietnam include exploration of oil and natural gas, training and modernization of Vietnam armed forces by supply of arms and weapon systems, capacity building by release of „line of credit‟ loans to Vietnam (which is a loan given exclusively to be used for deployment of Indian enterprises in Vietnam, that will generate employment and revenue for India), development of North East states of India through investments after connectivity with ASEAN is improved, cultural and economic exchanges and most importantly, containing the Chinese expansionism. Highlights of the Vietnam Visit PM Modi held bilateral talks with his counterpart Nguyen Xuan Phuc, on a host of issues like, counter terrorism and security concerns, investment opportunities in India, especially, NE India, avenues for capacity building of Vietnam, etc. During the course of the delegation level talks, 12 MoUs covering areas like health, cyber security, ship building, defence and space with Vietnam were signed. A new line of credit of $500 million for Vietnam to facilitate deeper defense cooperation was announced by PM Modi. PM Modi also sought facilitation of the ongoing Indian projects and investments in Vietnam like previously granted line of credit worth $5 million to set up a software park, etc. PM Modi paid homage to national heroes and martyrs at their monuments along with laying wreath at the war memorial located across the Ba Dinh Square. Importance of Vietnam to India Strategic Significance PM Modi referred to Vietnam as a prominent pillar in the Act East Policy of India. Please also read my previous blog on „Act East Policy‟ to understand the importance of ASEAN and SE Asian countries to India Vietnam also happens to be the ASEAN Coordinator for India for 2015-18 and both countries are committed to strengthen partnership within the India-ASEAN and Mekong-Ganga Cooperation frameworks. The Mekong-Ganga Cooperation, established in 2000, comprises of six member countries, i.e. India, Thailand, Myanmar, Cambodia, Laos and Vietnam. The emphasized four areas of cooperation, namely, tourism, culture, education, and transportation linkage, lay a strong foundation for future trade and investment cooperation in the region. Forging better ties with the above said countries would also limit Chinese influence and attempted hegemony in the region. Thus, it is a strategic imperative for India to remain relevant in the region which has abundant unexplored natural resources and untapped investment opportunities.

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It needs to be understood that Vietnam and China are engaged in an alliance of convenience. It is surprising to note that China has been Vietnam‟s top trade partner with estimated trade anywhere between $66-96 billion per annum. Vietnam is part of China‟s production value chain for making electronic goods and sub-assemblies. However, of late there are growing anti-Chinese feeling among the Vietnamese public, in part because of history, and in part arising from recent events like China‟s forcible occupation of the Paracel islands in South China Sea. Therefore, it is in India‟s interest to gainfully exploit these sentiments of the people of Vietnam and engage meaningfully with the government to establish a firm base in the region. Exploration of Oil to Meet India’s Energy Needs The overseas arm of India‟s Natural Gas Corp, ONGC Videsh Ltd, has been exploring oil blocks in Vietnam since the 1980s, including some offshore areas contested by China. China has many a times adopted an aggressive stance to inhibit exploration of oil in the South China region over which it claims its sovereignty. Notwithstanding Chinese open resentment, ONGC Videsh Ltd has continued its exploration activities in the disputed areas, and also own 45 per cent in Vietnam's offshore Block 6.1. Furthermore, ONGC Videsh Ltd has sought a third extension of exploration license for Block 128 to maintain India's strategic interest in the South China Sea. Relevance of South China Sea The South China Sea happens to be the busiest waterway of the world, through which 50% of the existing trade to India transits. Thus, it is cardinal for India to prevent China from forcefully establishing its control over a major portion of South China Sea. India signed an agreement with Vietnam in October 2011 to expand and promote oil exploration in the South China Sea. By accepting the Vietnamese invitation to explore oil and gas in blocks 127 and 128, ONGC Videsh Ltd not only expressed New Delhi‟s desire to deepen its friendship with Vietnam, but ignored China‟s warning to stay away. India‟s stand on the South China Sea issue has further helped India strengthen its relationship with Vietnam. Please read my detailed previous blog on the subject to understand its relevance Economic and Commercial Interests India is presently amongst the top ten trading partners of Vietnam. A bilateral trade target has now been set from the current $ 7.83 billion to $15 billion by 2020 with a focus on tourism, garments and textiles, pharmaceuticals and agriculture. Indian investments in Vietnam are currently at about $1.1 billion, which is likely to be enhanced significantly upon the implementation of large infrastructure projects such as Tata Power‟s Long Phu – II 1,320 MW thermal power project with an estimated cost of $2.2 billion. The key items exported to India by Vietnam include, mobile phones and components, machinery, computers & electronic hardware, natural rubber, chemicals and coffee and the major products imported from India are meat and fishery products, corn, steel pharmaceuticals, cotton and machinery. India is also engaged in the textile and power sectors in Vietnam.

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At present, India has 93 projects that are running in Vietnam with total investment of about US$ 1 billion, while, Vietnam has three investment projects in India with total investment of US$ 23.6 million. Futuristically, Indian companies are investing in energy, mineral exploration, agro-processing, sugar manufacturing, agro-chemicals, IT, agricultural processing and ship building. Defense Cooperation In the wake of strained relations with China and the aggression displayed by Chinese military, Vietnam has gone on an overdrive to upgrade its armed forces. Vietnamese Defense Minister General Phung Quang Thanh visited India from 23-26 May 2015. The highlights of the visit were that a five-year joint vision statement for the period 2015-2020 on defense cooperation and an MoU on cooperation between the coast guards of the two countries were signed. Much to the annoyance of China, The Indian Armed Forces have been engaged with the capacity building of the Vietnamese Armed Forces particularly the Navy. The areas of focus have been training, repairs and maintenance support, exchanges between think tanks, study tour and ship visits. India is assisting Vietnam to Upgrade its defense forces in the following other areas:  India offers 50 slots to Vietnamese defense personnel for training under the India Technical and Economic Cooperation (ITEC) programme.  India had offered a $100 million line of credit to Vietnam for the purchase of four offshore patrol vessels that are currently being built in Indian yards.  Cooperation in electronic intelligence in relation to Chinese naval activity in the seas of Vietnam.  India has helped Vietnam train personnel who are operating its Kilo class submarines, and New Delhi has offered to upgrade and maintain Russian-origin equipment with the Vietnamese forces such as tanks, fighter aircraft, helicopter and ships.  Lastly, India is also keen to sell Brahmos missile to Vietnam and is tailor-making one to be fitted on Kilo class submarines of Vietnam. However, considering Chinese unprecedented criticism of sale of weapon systems to Vietnam, Hanoi itself is likely to be cautious on such a deal which could be viewed as destabilizing? Development of North East States of India The NE states of India are highly underdeveloped owing to poor connectivity, lack of investment and employment opportunities and internal strife between numerous local tribes because of lack of awareness and education. India has committed a $1 billion Line of Credit for India-ASEAN physical and digital connectivity. The same will help in the development of the North East states of India in a major way. PM Modi also invited the Vietnamese entrepreneurs during his visit to invest in North East India. Conclusion

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The primary reason, besides the economic reasons to have better ties with Vietnam, is that India wants to build relations with states like Vietnam that can act as pressure points against China. The two nations have major stakes in ensuring sea-lane security, as well as shared concerns about Chinese access to the Indian Ocean and the South China Sea. Vietnam had given China a bloody nose in a brief war that it fought with China in 1979 and India sees Vietnam as a counterweight for China in South East Asia. China has build up strategic partnership with Pakistan to undermine India‟s security concerns, now it is India‟s turn to challenge the dragon on its own turf by forging robust strategic partnerships with Vietnam and the other nations in the periphery of China, leading to a more stable balance of power in the region.

HEMANT RR YADAV @ 97023 41616 SCHOOL OF SSB TRAINIG

41) Paradigm shift of India from Look East to Act East Policy Introduction Prime Minister Narendra Modi embarked upon a 10 day bilateral tour on 12 Nov 2014. He commenced the tour with Myanmar, where the 12th India - Association of Southeast Asian Nations (ASEAN) Summit and 9th East Asia Summits were scheduled at Nay Pyi Taw on 12-14 Nov 2014. PM Modi during this tour is scheduled to meet as many as 40 global leaders, including pro- democracy leader of Myanmar, Aung San Suu Kyi and others from China, Germany, Britain and South Korea and USA. During the next phase of his itinerary he would further travel to Australia for G-20 Summit at Brisbane and also to Fiji islands. As many as 25 bilateral meetings with different leaders, besides attending multilateral summits, would be an explicit expression of India‟s ‘Act East Policy’ and ‘Make in India’ campaign being propagated by the Modi Government.

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The overall aim of this bilateral tour will be to better connectivity, highlight and discuss territorial, including maritime infringement, enhance trade and increase cooperation with the ASEAN and East Asian countries. Why is Myanmar Significant to India? Myanmar shares a 1600 km border with India including a maritime border in the Bay of Bengal. It is the gateway to ASEAN and lies at the intersection of India and China‟s clashing interests for achieving regional dominance. It is also significant from the point of view of economic transformation of our NE states. China was the only country that continued to maintain economic and diplomatic relations with Myanmar‟s Military Junta. The Military Rule in the country lasted from 1988 to 2010. The world community, including India, during this period had severed all ties with Myanmar. After Myanmar progressed towards democratic reforms and in the by elections of April 2012, the NLD led by Aung San Suu Kyi had a landslide victory giving strength to the democratic reforms. As the democratic reforms gathered momentum relationship between India and Myanmar improved. President Thein Sein visited India in October 2011 and Indian PM Manmohan Singh visited Myanmar in May 2012. During this visit 12 agreements were signed in varied fields of cooperation, including security and countering insurgency which is a scourge for both the countries. Myanmar is very rich in natural gas and mineral resources, and after the country has displayed its earnestness towards democracy, most countries, including USA, have commenced forging better diplomatic relations with Myanmar Presently, China is Myanmar‟s largest trading partner. However, it appears that Myanmar wants to restrict its economic dependence on China. It is supporting the cause of ASEAN countries who are voicing their opinion against China‟s unprovoked interference and expansion of its maritime borders into the South China Sea. India is stepping up its momentum to improve economic ties with Myanmar. The trade between the two nations has gone up from 12 million in 80‟s to 2 billion. A number of Indian companies have taken the initiative to commence establishing their base in Myanmar. Some prominent names include, ONGC Videsh, Tata Motors, Century Ply, Essar energy, Ranbaxy, CIPLA, Apollo, etc. Top companies are looking for investment in telecom, energy and Aviation sectors. Seven Indian companies are amongst 59 companies shortlisted by Myanmar for off shore Gas block allocation. India has also provided $500 million as credit to Myanmar for a host of infrastructure development and capacity building projects. Importance of ASEAN in Indian Context The Association of Southeast Asian Nations (ASEAN) was formed on 08 August 1967. It is a political and economic organization consisting of ten countries of South East Asia, and was originally formed by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Later, the membership was further extended to Brunei, Cambodia, Laos, Myanmar and Vietnam.

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ASEAN Summit is held twice a year to discuss and resolve political, economic and regional issues. Meetings with other countries, outside of the bloc are also held during the ASEAN Summit to promote external relations. Bilaterally, ASEAN maintains strategic relations with Australia, Canada, and the People‟s Republic of China, the European Union, India, Japan, the Republic of Korea, New Zealand, the Russian Federation, and the USA. ASEAN as an entity ranks as the sixth largest economy in the world, behind the US, China, India, Japan and Germany. ASEAN members together with the group‟s six major trading partners – Australia, China, India, Japan, New Zealand and South Korea – began the first round of negotiations on 26–28 February 2013 in Bali, Indonesia, on establishment of the Regional Comprehensive Economic Partnership. In 2009 India signed a Free Trade Area Agreement with ASEAN and it gave a huge a fillip to trade in the region. Today, the Indo-ASEAN trade stands at $80 billion. With the institutional framework in place and the Modi government‟s commitment and focus towards enhancing trade, it is expected that the trade with ASEAN will cross $100 billion by the end of next year and the figures will be doubled by 2025. The envisaged highway (under construction) and rail connectivity to energy giants like, Nepal and Myanmar and further to Thailand, will improve people to people contact, thus enhancing the sphere of economic cooperation and interdependence. ASEAN Economic Community (AEC) is likely to be in place by 2015, which will promote regional economic integration. The key characteristic of AEC will be single market and production base and a competitive economic region, which would be fully integrated into the global economy. Hence, ASEAN region will allow free movement of goods, services, investment, skilled labour, and freer flow of capital. The highly underdeveloped NE States of India, which lie at the gateway to a region offering unlimited economic opportunities, will witness an economic transformation. Most of the ASEAN countries and Japan are projecting a tough stance towards China‟s aggressive design of unlawfully encroaching upon land and maritime territories of other countries. It is being increasingly felt that the monopoly and expansionism of China‟s military might can only be checked through a collective stand. In order to limit India‟s regional dominance China has adopted a policy of “String of Pearls” to isolate and intimidate India by expanding its area of influence around Indian territorial extremities. Hence, forming a strategic partnership with the anti-China camp will largely weaken Chinese aggressive posture. This is perhaps the strongest reason for India to relentlessly pursue its Look East policy. East Asia Summit (EAS) East Asia Summit (EAS) is a pan-Asian forum held annually by the leaders of 18 countries (ASEAN plus 08 countries) in the East Asian region, with ASEAN in a leadership position.

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Membership of EAS was initially all 10 members of ASEAN plus China, Japan, South Korea, India, Australia, and New Zealand, but expanded to include the United States and Russia in 2011. A meeting of the EAS usually coincides with the ASEAN Summit. The 9th East Asia Summit was held on 13 Nov 2014. The prominent leaders that attended the Summit included, President of USA, Barak Obama, Chinese Premier, Li Keqiang, Russian Prime Minister, Dmitry Medvedev, South Korean President, Park Geun-hye and Indian Prime Minister, Narendra Modi Broadly, issues pertaining to trade, energy, security and regional community building were discussed. The major issues that were discussed are given below: South China Sea Dispute A territorial dispute in the South China Sea, which is of tremendous strategic importance to everyone, was discussed to find a solution through amicable dialogue. China and ASEAN agreed to actively carry out consultation to reach, on the basis of consensus and at an early date, a Code of Conduct in the South China Sea. Tackling Ebola It was highlighted that Ebola possessed a global threat to peace and security and relief assistance needed to help fight the deadly virus in the hardest-hit West Africa nations, where nearly 5,000 had died. Leaders from Southeast Asian nations looked at means to seek technical assistance from the World Health Organization to help detect and respond to public health threats. Voice Against Islamic State Threat Participants reiterated their support and efforts required for restoring law and order inside Iraq that was struggling with the threat of countering the Islamic State group. They called on Iraq and international partners to ensure the protection of civilians and access to humanitarian assistance for those affected by the conflict. They demanded the immediate, safe and unconditional release of all those who are kept hostage by the group or associated individuals and entities. Regional Comprehensive Economic Partnership ASEAN plus 08 countries agreed to conclude the final negotiations to form the RCEP by end of 2015. This alliance is likely to be created on the model of the European Union for strengthening financial and fiscal cooperation with a special focus on improving Multi-lateralization, which was expected to effectively relieve regional short-term liquidity strains. Once RCEP is created it would forge economic integration amongst member nations by promoting trade and investment facilitation, accelerating interconnectivity, expanding financial cooperation, stepping up poverty reduction cooperation, advancing maritime cooperation as well as intensifying people-to-people exchanges. Conclusion Paradigm shift of India from Look East to Act East Policy is viewed as an affirmative step by the South East Asian countries and displays a definitive eagerness and focus of the Indian Government towards meaningful cooperation in trade and other bilateral issues. An effective and timely pursuance of this initiative will help India to take a lead to reap out of proportion benefits from this region of unlimited opportunities. 169

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42) India’s Major Take-away from the G20 Summit: 04-05 September 2016

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Introduction The eleventh annual meeting of the G20 heads of governments was held at the Chinese city of Hangzhou, Zhejiang province on 04-05 September 2016. China hosted the G20 Summit for the first time and is the second country from Asia after South Korea to host it. The previous G20 Summit was held at Antalya, Turkey on 15-16 November 2015. The major focus during this Summit was implementation of the previous commitments, boosting investments to drive growth, and committing to remove trade barriers to stimulate global economy. The G20 in China saw a few ceremonial niceties done in bad taste, like the US President Barack Obama exited from the rear of Air Force One on folding stairs, in a marked contrast to the reception given by China to other leaders, who descended down a large red-carpeted staircase. The Summit gave India an opportunity to mend fraying ties with China; PM Modi also had bilateral talks with eminent world leaders to discuss issues that concern India‟s interests internationally. General Information about G20 G20 is a forum for international economic cooperation amongst 20 major developed and developing economies of the world. It was founded in 1999, as a forum for finance ministers and central bank governors who met once a year, to discuss international economic issues. The global economic crisis in 2008 evolved the G20 into the premier Leaders‟ Forum for international economic cooperation. Hence, the G20 was formally launched in 2008 in the USA. The G20 includes 19 individual countries, i.e. Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK and the USA and the European Union (EU). Collectively, the G20 economies account for around 85 per cent of the GDP, 80 per cent of world trade and two-thirds of the world population.

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The G20 has no permanent secretariat, and much of the preparation for the summit is completed by G20 leader‟s personal representatives, known as “Sherpa‟s”. Sherpa‟s maintain contact with each other over the course of the year to discuss agenda items for the summit and coordinate the work of the G20. Annual meetings of finance ministers and central bank governors continue to take place, advancing the work of the G20 and contributing to the discussions at leaders‟ summits. Summit hosts are responsible for preparing leaders summits and for organizing the series of preparatory meetings that advance G20 work throughout the year. At each meeting, the host country may also invite non-member guest countries to attend. Highlights of the G-20 Summit – 2016 The heads of states of G20 repeatedly admitted that the common citizens‟ world over feel that the global trade system has failed them. The leaders renewed their pledge to ensure that growth "serves the needs of everyone and benefits all countries and all people" and that it should generate "more quality jobs" address inequalities and eradicate poverty "so that no one is left behind". In their communiqué they promised to "reject protectionism" and "promote global trade". G20 leaders adopted a statement highlighting the need to address:  Tax evasion through a concerted effort by all G20 nations. The Organization for Economic Co-operation and Development has been asked to share the black list of tax heavens that can be targeted to prevent tax evasion.  The heads of states of G20 braced themselves to walk the tight rope balancing, anti- globalization/ protectionism and liberalization/ removing trade barriers to stimulate global trade.  Innovative methods were sought to trigger fiscal stimulus and boost economic growth. They agreed that the same cannot be achieved without combating populist attacks on globalization.  Lastly, they affirmed better support for refugees through a coordinated and comprehensive response to tackle both this crisis, as well as its long term consequences.  Another important development during the G20 meet was that, Barack Obama and Xi Jinping announced the ratification by their countries of the Paris Agreement of the 2015 United Nation Climate Change Conference.  United States and China represent respectively 18 percent and 20 percent of global carbon emissions and constitute the major contributors towards global warming.  Till now, a total of 26 countries have ratified the agreement. India’s Major Take-away from the G20 Summit: 04-05 September 2016 PM Modi met with several world leaders on the sidelines of the G20 Summit and discussed many key issues with him. Some of the major takeaways by India from the G20 Summit-2016 are enumerated below: Isolation of Pakistan for Sponsoring Terrorism: The most hard-hitting statement made by PM Modi was against Pakistan, and he said that "Indeed, one single nation in South Asia is spreading these agents of terror in countries of our region."

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He further added that "We expect the international community to speak and act in unity, and to respond with urgency to fight this menace. Those who sponsor and support terrorism must be isolated and sanctioned not rewarded." Prior to that on September 02, even during the meeting of the BRICS countries, he had exhorted members to intensify joint efforts to combat terrorism. These statements assume greater significance when seen in the light of Pakistan‟s open involvement in fanning the unprecedented and prolonged unrest in J&K after the killing of Hizbul Commander Burhan Wani by security forces. Attempts by PM Modi to Build Bridges with China: The Indo-China relationship has seen a new low in the recent months with issues involving Pakistan, including China's technical hold on UN ban against Pakistan-based Jaish-e-Muhammad chief Masood Azhar and its attempts to block India‟s entry into Nuclear Suppliers Group (NSG). PM Modi had a 35 minute long bilateral with President Xi, which happens to be their eighth meeting. The issues that were discussed included:  India's concerns with China over the China-Pakistan Economic Corridor (CPEC) which runs through Pakistan Occupied Kashmir (PoK) and he put across to President Xi Jinping that the two countries need to be "sensitive" to each other's strategic interests.  Maintenance of peace and tranquility on the border, especially LAC was also mentioned during their parley.  PM Modi, while condemning the recent suicide bomb attack on the Chinese Embassy in Bishkek, capital of Kyrgyzstan, said that it was yet another proof of the continuing scourge of terrorism in the region and obliquely hinted at Pakistan, by saying, that our response to terror must not be motivated by political considerations. PM Modi highlighted during his interaction with President Xi, that India-China partnership is important not only for the two countries but for the entire region and the world. Ahead of the 8th Brics Summit next month, Modi extended a personal invitation to Xi to come to Goa which the Chinese leader said he was very happy to accept. Forceful Words by PM Modi to Eliminate Safe Haven for Economic Offenders: PM Modi said that “fighting corruption, black money and tax evasion were the key to effective financial governance” and added that "G20's efforts should be for zero-tolerance for corruption and black money; zero administration, policy and treaty loopholes; zero barriers and full commitment to action." Implementation of Special Safeguards Mechanism for Developing Countries: PM Modi reiterated in his speech that, efforts must be made to provide a level playing field to the developing countries and import surges from the developed countries must be checked, especially in the Agriculture sector. He highlighted that the Bali and Nairobi Ministerial decisions to facilitate trade must be fully implemented and said that, "Global trading regime must respond to needs and priorities of developing nations." In their meeting at Bali in Indonesia, the WTO members had agreed on the Trade Facilitation Pact and food grain stockpile for food security purposes.

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PM Modi Pitched for Early Implementation of International Monetary Fund (IMF) Quota Reforms: It may be understood that, each member country of the IMF is assigned a quota, broadly based on its relative position in the world economy. Quota subscriptions are the primary sources of the IMF's financial resources. A member‟s quota determines its maximum financial commitment to the IMF and its voting power, and has a bearing on its access to IMF financing. As part of the BRICs (Brazil, Russia, India and China) grouping India and the other members will enjoy greater access to IMF financing. (Please read the above mentioned blog for greater clarity on this issue). PM Modi requested that the ratification of the reforms of 2010 be completed at the earliest, which would better reflect the global fund realities. Issue of Scorpene Submarine Data Leak Discussed with French President Francois Hollande: Secret data pertaining to the operational capabilities of six highly-advanced submarines being built for the Indian Navy in Mumbai in collaboration with French defense company DCNS was leaked overseas. This important issue was also raised by PM Modi with the French President on the sidelines of the G20 Summit in Hangzhou. Issue of India’s NSG Membership Discussed with Turkish President Recep Tayyip Erdogan: Turkey is one of the few countries, besides China, which had stalled India's bid to join the elite grouping at its plenary meeting in June this year, in Seoul. PM Modi took this opportunity to make an Endeavour to gain favors on the issue with his Turkish counterpart. During the bilateral, President Erdogan also raised Turkey‟s concern over the presence of supporters of dissident Muslim cleric Fethullah Gulen in India. Turkey accuses Gulen of masterminding the failed coup attempt in July this year. Multiple Issues were discussed during Bilateral with British PM Theresa May: PM Modi underlined that even after the Brexit, the UK remained as important to India as before and discussed areas of congruence for further enhancement of bilateral defense partnership and trade & investment opportunities. The Prime Minister invited British firms to 'Make in India' as both leaders also looked forward to an early visit by Defense Minister Manohar Parrikar to the UK. Prime Minister also touched upon UK's visa policy and said that the new UK regulations could have a negative impact on Indian working professionals wishing to visit UK for short term business visits. Finally, PM Modi also invited his British counterpart to visit India in her new capacity. PM May accepted the invitation and said that she would like to make a visit to India as early as possible. Conclusion The G-20 countries affirmed their resolute and collective efforts towards enhancing actual and potential growth of economies, support job creation, strengthen resilience, promote development and enhance inclusiveness of policies.

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Moreover, it provided a forum to the leading world powers to unite in their thoughts and actions against the scourge of terrorism, climate change and corrupt financial practices worldwide.

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43)Implications of Banning Chinese Products in India

Introduction China has been very open in supporting Pakistan‟s Low Intensity Conflict Operations (LICO) waged against India, both morally and also, by supplying them military hardware. The recent Uri attack and the subsequent actions taken by India to isolate and expose Pakistan has only found China still backing up Pakistan. At this juncture, when many countries across the globe are unanimous in their consideration to label Pakistan as a terrorist state, China is showing solidarity with Pakistan. China had obstructed the entry of India to Nuclear Suppliers Group (NSG), citing the reason that it has not signed the CTBT and linked Pakistan‟s entry into NSG along with India. Also, China has been a major road block towards India‟s permanent seat in United Nations Security Council. It has recently commenced work to block a tributary of Brahmaputra River (in response to India‟s declaration that it will work towards optimum utilization of water as per the Indus Water Treaty) and is continuing to block India‟s bid for banning JeM chief Masood Azhar. China has often adopted aggressive stance at the LAC, opposes India‟s control over Arunachal Pradesh and has indulged in fanning Maoist movement in India. Besides, it has unequivocally demonstrated assertive expansionism in the Indian Ocean. Considering the above, perhaps it is now time for India to act within its capacity to clip the wings of the dragon. A lot of talk and campaigns have been doing the circles in the social media regarding banning the use of Chinese products. The Health Minister Anil Vij, appealed to people not to use Chinese goods and has said that, “China can buy weapons with whatever money it earns through business with India. These weapons are given to our enemy countries. Hence, we should focus on Make in India”. 176

Similar appeals have been made by BJP president Subhash Barala and Haryana Agriculture Minister O P Dhankar on social media. RSS volunteers are visiting Navratri pandals, with a message that Indians should stop using Chinese products. The Ujjain Municipal Corporation has passed a resolution to ban the sale of Chinese goods during a religious fair in November to protest against China‟s alleged support to Pakistan. Gram Kachahri (village court) in Bihar‟s Aurangabad district has banned the sale and purchase of „Made in China‟ goods, through a provision passed with consensus to punish people found violating the order by imposing a fine. Also, village court of Obra panchayat has decided to ban the products manufactured in China. Besides India, Philippines, Vietnam and even the separatist movements within China have also called for the boycott of Chinese goods. India-China Bilateral Trade China is India‟s one of the largest trading partners‟. The total bilateral trade between India and China stood at $65.16 billion (nearly Rs 43.3 lakh core) during 2015-16 and the trade deficit during the same period was $48.68 billion (nearly Rs 32.4 lakh core). The lopsided trade deficit in China‟s favor basically indicates that India is importing much more than it is exporting to China. The major products imported by India from China include, telecom instruments, computer hardware and peripherals, fertilizers, electronic components/instruments, project goods, organic chemicals and drug intermediates, consumer electronics, electrical machinery and equipments, iron and steel etc. These imports feed the growing demand in India for such goods which China, due to variety of reasons, is able to export to India at competitive prices. India mostly exports products that require less efficient trade infrastructure, e.g. rice, cotton, diamonds, jewellery, yarn, garments, low end engineering products, generic medicines and petrochemicals. Thus, Chinese exports to India rely strongly on manufactured items to meet the demand of fast expanding sectors like telecom and power, while India‟s exports to China are characterized by the supply of raw materials called „primary‟ or intermediate products. In other words, out of India‟s total export earnings, 75 per cent comes from such primary products, which actually accounts for less than 30 per cent of world merchandise trade. Simply put, most of India‟s manufacturing and exports end up chasing a small fraction of the global trade basket. India’s Recent Punitive Actions against Chinese Products The government of India imposed a ban on milk and milk products from China as their quality was unacceptable. Also, some mobile phones, which do not carry International Mobile Station Equipment Identity number or other security features, and some steel products have also been banned from China since April 2016. The Central Board of Excise & Customs has released an advertisement, which did not name any country but appealed to the public to be alert against "illegal foreign origin firecrackers" since they contain sulphur or sulphurate in admixture with any chlorate and are hazardous in nature. The Directorate of Revenue Intelligence (DRI) seized illegal Chinese firecrackers worth Rs 09 core from six cargo containers in New Delhi at the Inland Container Depot in Tughlaqabad on 08 October 2016. The firecrackers were wrongly declared as medical equipment for handicapped/disabled persons and as bicycle parts A similar seizure at the Jawaharlal Nehru Port Trust (JNPT) in Nhava Sheva of illegal Chinese firecrackers worth Rs. 7.2 core was reported in August this year. It is estimated that the value of illegal Chinese firecrackers imported into India every year is about Rs. 1,500 core, using false declarations in import documents. Implications of Banning Chinese Products in India The World Trade Organization (WTO) mandates all member countries to abide by the “Principles of Trade” delineated in its charter. The one which will be applicable here is that a country should not discriminate between its trading partners and it should not discriminate between its own and foreign products, services or nationals. 177

However, in order to restrict the „unfair‟ trade practices, WTO has given certain provisions to the governments to respond, in particular by charging additional import duties calculated to compensate for damage caused by unfair trade by way of dumping goods into the market that are cheaper than those produced domestically. Thus, as brought out by the Commerce Minister Nirmala Sitharaman that, “complete ban of import from any country is not possible now due to WTO rules even if we have problems diplomatically, territorially or militarily”. Secondly, a huge amount of revenue is being generated through customs duty that comes into the state reservesby imposing antidumping duty or countervailing duty on specific goods imported from China. Thus banning import from China will result in a financial loss for the country. Besides other reasons, the failure of the Swadeshi Movement of 1908 to boycott British products can be attributed to the fact that sustenance of the large Indian population only on Indian products, which had got used to the British products, was practically not feasible. China is the world‟s manufacturing hub which has, over the years, invested heavily in research and development and owing to cheap labor is able to produce goods at competitive costs. If India does not import from China, we would either be left with expensive western alternative or sub-standard Indian substitute in most of the cases. India has to first reach a state of self sufficiency and create adequate wherewithal to manufacture indigenously to cater to the express needs of for our vast population before we take a call to out rightly ban Chinese products. In order to substantiate the above point, I would like to illustrate it with the following examples: Consumer Durables: The maximum spending of Indian middle class people is on consumer durables like Electronic appliances, Clothes, Vehicle and many more. However, these people are smart buyers. They want quality products/ services at low price. China, because of its effective mass production capacity is able to fill the gap between demand and supply in India. If we ban Chinese products it will obviously hurt the Indian middle class the most. Pharma Industry: We are over-dependent on China for imports of bulk drugs, as more than 75% of bulk drug imports come from China. Most antibiotics such as Penicillin, Ofloxacin and Levofloxacin (used to treat infections), India is heavily reliant on imports for both the Active Pharmaceutical Ingredients (API) as well as the key intermediates on China. Non availability of these chemicals will only result in India not being able to manufacture and in many cases export those drugs. In February-April this year, India‟s exports contracted 16.7% to $238.4 billion and imports shrank 14.7% to $351.8 billion, leaving a trade deficit of $113.4 billion. The industrial output has shrunk to 0.7% from 2.4% in the previous quarter. Considering the figures given above, which indicate a trying economic time not only for India, but the world over, banning of Chinese products in India may turn out to be counterproductive for our economy. The abrupt announcement of ban on Chinese products will not cause much harm to Chinese manufacturers at this stage. The China-made items are already in the Indian market and if these don't sell, local shopkeepers will incur heavy losses. Conclusion I am myself a serious proponent of banning Chinese products in India for the reasons of its unethical tacit support to Pakistan and for its display of territorial expansionism. However, I will not subscribe to “cutting the nose to spite the face”. Ban of Chinese products to my mind must be imposed progressively, articulately and in a manner that it hurts China more than it hurts India. India still needs to cover a lot of ground towards self sufficiency by way of investing in state-of-art R&D, capacity building and putting a cogent force behind campaigns like „Make in India‟, „Skill India‟, „Digital India‟, „Start-up India‟, etc. 178

In the meanwhile, India must engage its elaborate and robust legal framework and institutional set-up to protect its environment by putting into place adequate safeguards to restrict import of poor quality goods as well as trade defense measures such as anti-dumping and countervailing dut

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44)A New Dawn in Indo-Russia Relationship

Introduction The United States had overtaken Russia in bagging defense deals over the previous four years, with sales worth $15 billion, since 2007. The significant acquisitions on the anvil are/were C-17 Globe master-III, strategic airlifters; P-8I aircrafts, which are, maritime patrol planes; Apache attack helicopters and Chinook heavy-lift helicopters. The closeness of India with USA irked Russia, who has traditionally been the biggest suppliers of arms to India, since the 1960s, with sales worth $50 billion. In fact, even today, India holds at least 60% of its equipment and weapon systems of Russian origin. The mainstay equipment pieces, like the MiGs, Sukhoi fighter aircrafts, the T-90 tanks, Kilo-class submarines, Talwar frigates and INS Vikramaditya held on India‟s inventory are all from Russia. The acquisition of French 36 Rafale, medium multi-role combat aircrafts (MMRCA) at a phenomenal cost of $9billion, has been frowned upon by some experts, who feel that repair and maintenance of the aircrafts will need exclusive and more intensive expertise, if Indian Air Force has such divergent fleet of aircrafts. Notwithstanding, the recent delegation level talks between India and Russia on the sidelines of BRICS Summit at Goa, saw a renewal of Indo-Russia relationship and signing of defense procurement deals worth $10.5 billion (Rs 72,000 core). Significant Indo-Russia Defence Deals Missile Shield India has made a bid for five S-400 Triumf Air Defense Systems to plug the operational gaps in the India‟s air defense. S-400 AD system is capable of destroying hostile aircrafts, stealth fighters, long range ballistic missiles and drones at a ranges between 120-400 km.

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The weapon platform is equipped to fire three types of supersonic and hypersonic missiles to intercept different targets and has a long-range, all weather radar that can track hundreds of targets simultaneously. It is envisaged that three of these air defense shields will be deployed on the western sector against air threat from Pakistan and two on the eastern sector against China. Incidentally, China also had sealed a deal with Russia in 2014 for the delivery of the AD system S-400 by 2017. Guided Missile Stealth Frigates India has inked a deal for four Grigorivich-class frigates from Russia at a cost of $4 billion. Two of these will be built in India. These stealth frigates are 4000 ton, multi-role frigates, with an operating range of 4500 nautical miles and fitted with hi-tech sensors and state of art weapons, including the supersonic BrahMos missile. However, the above deal has been linked to India‟s plan to lease a second nuclear powered Russian submarine at a cost of $1.5 billion. The first nuclear submarine, INS Chakra was leased by India from Russia in 2012. India has already inducted six Russian stealth frigates into the Navy, i.e. three Talwar-class and three Teg-class. The Grigorivich-class frigate will be an upgraded version of the Teg-class. Indian Navy at present has 130 warships, out of which many are old and at the verge of down gradation. In order to be able to appropriately project its maritime power and effectively protect its interests, India Navy plans to induct 212 warships by 2017. A total of 39 warships and six Scorpene submarines are under construction in various Indian shipyards. Light Utility Helicopter A deal for procurement of 200 Kamov-226T helicopters at a cost of $1 billion was signed between India and Russia. It has been decided that first 60 choppers will be procured from Russia and the balance will be produced in India over the next nine years, giving a fillip to the „make in India‟ campaign. The Kamov-226T is a small twin-engine, multirole helicopter, which can perform the tasks of reconnaissance, aerial patrolling and disaster relief operations. It can carry on board, eight combat ready soldiers and has an operational range of 600km. In all, the armed forces needs 484 light helicopters to replace the ageing fleet of Cheetah and Chetak helicopters, which are presently held with India. HAL is also in the process of manufacturing 187 light helicopters. Russia’s Compulsions to Look towards South Asia Russian economy has been crippled because of US-EU sanctions post the Ukraine crisis, falling price of oil, which is Russia‟s major source of income, and the impact of fast depreciating Russian currency, leading to flow of investments out of the country (capital flight). Russia is said to be losing $40 billion a year due to sanctions, around $100 billion on account of falling oil prices, and some $130 billion in capital flight. Further, inflation in the country has for the first time reached a double digit figure. European Union is exploring alternate sources of gas for its domestic requirements to punish Russia on account of its military intervention in Ukraine and hence, Russia has shelved its $50 billion South Stream gas pipeline project, which was to run across the Black Sea to Southern and Central Europe. Furthermore, as a retaliatory step to EU sanctions, Russia has imposed trade restrictions by banning import of meat, fish, dairy, fruit and vegetables from the US, the EU, Canada, Australia and Norway. The above said compulsions are drawing Russia towards fresh markets for its energy and bilateral trading partners in Asia. China is Russia‟s largest single trading partner, with bilateral trade flows of $90 billion and India, in comparison was just $6.17 billion in 2015-16. It is for the above stated reasons that, Russia signed contracts with China to supply 38 and 30 billion cubic metres of natural gas annually from 2018, for a period of 30 years in 2014.

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Also, Russian Defence Minister visited Pakistan (first visit since 1969), and signed their first military cooperation agreement on 20 Nov 2014, which included joint naval exercises, military officer exchanges, arms sales, counter-narcotics and counter-terrorism cooperation. Pakistan‟s Chief of Army Staff General Raheel Sharif had visited Russia in June 2015 and Russia has signed a deal with Pakistan at Rawalpindi to supply Mi-35 attack helicopters, „Hind‟ to Pakistan on 20 August 2015. Keeping the foregoing in mind, it can well be deduced that Russia is now looking for other partners to bridge this supply gap. Reason’s for Renewal of Indo-Russia Ties India has been traditionally dependent on Russia for defense procurement, owing to its cutting edge technology which is rugged, appropriately tempered for Indian conditions and hassle free, well defined procurement procedures. Further, India‟s energy security is also very closely linked with Russia. The Russian consortium, comprising of energy giant Rosneft, commodities trader Trafigura and United Capital Parterres on 15 October announced acquisition of 98% stakes of India‟s Essar Oil for $12.9 billion. This is the largest ever single foreign direct investment in India. Besides, the two leaders during their meeting at Goa also dedicated the Unit-II of Kudankulum Nuclear Power Plant and witnessed foundation laying of its Unit 3 and 4. Similarly, India has been the major factor that has provided the requisite wind to the sails of the Russian defence industry. Hence, Russia cannot afford to ignore India, as much as, India cannot afford to dump Russia for US. The recent drift of Russia towards Pakistan and China has been primarily due to the growing closeness between India and USA. It was Russia‟s way to reprimand India, by participating in the recent military exercises with Pakistan. Conclusion In a conscious attempt to rebuilt bridges, PM Modi during his Joint Statement with Russian President Vladimir Putin recalled a very apt Russian proverb that, “one old friend is better than two new friends”. The temporary freeze that had appeared in the Indo-Russia relationship in the face of changing global geopolitics saw a thaw in the ongoing BRICS Summit. Russia mirrored India‟s concerns over terrorism and supported India‟s actions to fight cross border terrorism. It also supported India‟s bid for Nuclear Suppliers Group (NSG), membership for Wasseanaar Agreement and permanent berth in UNSC. India, while walking this tight rope will have to demonstrate „Chanyaka Niti‟ in diplomatic engagements to appropriately safeguard its national interests.

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45)Major Highlights of BRICS and BIMSTEC Summit Held at Goa: 15-16 October 2016

Introduction BRICS is an acronym for Brazil, Russia, India, China, and South Africa. It is a conglomeration of five leading emerging powers, straddling the continents of Asia, Africa and Latin America. BRICS, the power of „Five‟, constitutes, one fourth of the world‟s landmass, 3.6 billion people, or half of the world‟s population and accounts for 25% of the global GDP amounting to $16 trillion. This socio-economic union was formed as an aftermath of global financial crisis of 2008, the first summit was held in Russia in2009. The aim of establishing BRICS was to form a formidable multilateral grouping that has striking convergence of interests at the global level rather than at regional level, so as to create a new world order which would reflect a tectonic shift by reducing the US and European Union geo-political dominance and economic hegemony. Till now seven BRICS summits have been held, as follows; Russian city of Yekaterinburg in June 2009, Brazil in 2010, Sanya, China in 2011, New Delhi in 2012, Durban, South Africa in 2013,Fortaleza, Brazil in 2014 and Ufa Russia 2015. The Eighth BRICS Summit was held in India at Goa on 15-16 October 2016. The theme of this year‟s summit was ‘Building Responsive, Inclusive and collective solutions’. The first trade fair of the BRICS countries, was also held at Pragati Maidan exhibition ground, New Delhi from 12 to 14 October to commemorate the event. 183

Besides the BRICS Summit, India is also hosting the first-ever BRICS-BIMSTEC Outreach Summit. BIMSTEC stands for: Bay of Bengal Initiative for Multi-Sect oral Technical and Economic Cooperation. The seven-member BIMSTEC bloc has Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. Prime Ministers of Myanmar, Sri Lanka, Thailand, Bhutan and Nepal attended the summit. Background Information The global institutions like, World Bank and IMF are widely considered to be predominantly influenced by the dictates of US and its European cronies and are biased against the interests of emerging economies. The countries constituting this conglomerate are emerging economies and a power to reckon with in the global scenario. Russia and China are permanent members of the UNSC and the balance three, i.e. India, Brazil and South Africa are considered to be serious contenders for reserving a permanent berth in the expanded UN Security Council. During the period of global economic meltdown, these emerging markets have become the favorite destinations for investors and are being considered the driving engines to catapult the world from economic depression. Hence, this alliance forges to weaken the dominance of US dollar, provide an environment conducive for economic collaboration and also to provide a powerful voice to keep in check the „West‟ dictated narrative of the world affairs. Most Distinctive Achievement: Creation of New Development Bank The New Development Bank (NDB) was formally inaugurated during the BRICS Summit, which was held at Fortaleza, Brazil in 2014. The Group signed the mandatory documents to create the US$100 BRICS Development Bank on 15 July 2014. During the latest BRICS Summit at Goa, the NDB President presented a Report on the work of the Bank during the first year of its operations and also brought out the progress regarding operationalising the Africa Regional Centre (ARC) of the NDB. The New Development Bank (NDB) has commenced its operations with release of first set of loans in the renewable energy projects to BRICS countries. Salient Features of the Functioning of NDB Reduce dependency on US dollar and strengthen stand during World Bank and IMF decision making. Promote cooperation amongst various BRICS export credit agencies and also, cooperation with respect to innovations amongst member states. Shanghai was selected as the Headquarters, first President from India (Mr KV Kamath), inaugural Chairman for Board of Directors from Brazil and inaugural Chairman of Board of Governors from Russia. South Africa will be the African Headquarters‟ of the NDB. Bank‟s primary focus will be lending for infrastructure development projects with a limit of $ 34 billion annually. All five member states to contribute $10 billion each to accumulate a capital of $50 billion initially, this would be increased to $100 billion over a period of time. Any member cannot increase its share capital without the consent of balance four members. This issue was raised by India and was accepted by other members. Bank will allow new members to join up, but the total capital value of BRICS member countries cannot fall below 55% of the total share value. A Contingent Reserve Arrangement (CRA) will be maintained to provide protection against global liquidity pressures. It will serve as a precautionary instrument against short term balance of payment pressures. Bank would also provide monetary assistance to other countries suffering from economic volatility. $10 billion will be „paid-in‟ capital ($2 billion from each member), and $40 billion to be paid „upon request‟. Out of the total $100 billion being envisaged as the capital of the Bank, $41 billion will be contributed by China, $18 billion by India, Russia and Brazil and $5 billion by South Africa. Highlights of the BRICS Summit 2016 15 October 2016

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Delegation Level Talks with Russian President Vladimir Putin India and Russia signed a total of 16 agreements mostly in the fields of defence, energy, power, shipbuilding and space. Bilateral Talks between PM Modi and Chinese President Xi Jinping PM Modi during his bilateral with the Chinese President brought out the issues of memberships in NSG and UNSC. However, China remained non-committal over both the issues. In response to India‟s efforts to isolate Pakistan, China stood steadfast with its all-weather ally. China has made its position very clear on the subject, when its Foreign Ministry spokeswoman Hua Chunying said: "Everyone knows that India and Pakistan are victims of terrorism. Pakistan has made huge efforts and great sacrifices in fighting terrorism. I think the international community should respect this. We also oppose the linking of terrorism to any specific country, ethnicity or religion”.

16 October 2016 The BRICS and BIMSTEC interventions were formally held on 16 October, which was followed by the adoption of the Goa Declaration. Salient Features of Goa Declaration The member countries echoed that the key priorities to further strengthen strategic partnership in the spirit of openness, solidarity, equality, mutual understanding, inclusiveness and mutually beneficial cooperation. The BRICS members expressed satisfaction with respect to the operationalisation of the New Development Bank (NDB) and of the Contingent Reserve Arrangement (CRA), which is poised to immensely contribute to the global economy and the strengthening of the international financial architecture. The members expressed satisfaction with NDB‟s issuance of the first set of green bonds in RMB and noted with great appreciation that the operationalisation of BRICS Contingent Reserve Arrangements (CRA) has strengthened the global financial safety net. The Outreach Summit of BRICS Leaders with the Leaders of BIMSTEC member countries (Bay of Bengal Initiative for Multi-Sect oral Technical and Economic Cooperation) comprising of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand was seen as great opportunity to renew friendship with BIMSTEC countries. The Goa Declaration highlighted the possibilities to jointly explore and expand trade and commercial ties. The investment cooperation between BRICS and BIMSTEC countries, would also serve to advance common goals of peace, development, democracy and prosperity. The member nations underlined the importance of collective efforts in solving international problems, and for peaceful settlement of disputes through political and diplomatic means. The members agreed that development and security are closely interlinked, mutually reinforcing and key to attaining sustainable peace and reaffirmed their commitment to contribute to safeguarding a fair and equitable international order. The members expressed their concern over the situation in the Middle East, North Africa and significant increase in terrorist activities in Afghanistan. They affirmed unequivocal support in the efforts for finding ways to the settlement of the crises in accordance with international law. The member countries also expressed their deep concern over the political and security instability that continues to loom in a number of countries that is exacerbated by terrorism and extremism. China’s Position on Pakistan President Xi in his 10 minute speech made oblique reference to Kashmir; he talked about the need to find a “political solution” to “regional hotspots”. He also called for concrete efforts and multi-pronged approach that address both “symptoms and root causes” to global challenges like terrorism. Earlier, PM Modi in his speech had targeted Pakistan (without naming it) and had called it the “mother ship” of terrorism and pointed out that, “In our own region, terrorism poses a grave threat to peace, security and development. 185

Later during his address at the BIMSTEC meeting, PM Modi again highlighted that, “it is imperative for BRICS and BIMSTEC to create a comprehensive response to secure our societies against the perpetrators of terror”. The BRICS Summit saw India, at every stage go all out to isolated, expose and build consensus against Pakistan sponsored terrorism in the region. Though all other countries were fairly supportive, India’s efforts did not cut much ice with China, who continues to defend Pakistan’s actions and also displayed out right indifference towards India’s efforts to establish better neighborly ties. Conclusion In his final call, PM Modi asked all nations to work together to expedite the adoption of the Comprehensive Convention on International Terrorism (CCIT) in the UN General Assembly without any further delay. Towards this, the BRICS leaders reaffirmed their commitment to the FATF (Financial Action Task Force), which is an intergovernmental organization founded in 1989, on the initiative of the G7, to develop policies to combat money laundering, especially for the purpose of financing terrorism. Finally, the BRICS Summit-2016 served well for India’s interests, in terms of enhancing economic ties, arresting the ongoing drift of Russia and building up consensus to internationally isolate Pakistan.

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46)Deadly Terror Attack at Baluchistan Police College, Quetta

Introduction Balochistan province of Pakistan was once again rocked by a major terror attack, when militants belonging to the Al-Alimi faction of the Lashkar-e-Jhangvi group attached Balochistan Police College, located 20 kilometres east of provincial capital Quetta. The total casualties reported in the incident were 59 dead and 111 injured. This was the second major terror attack in the previous two months. In August 2016, suicide bombing by Islamic State group, Jamaat-ul-Ahrar at Quetta hospital had claimed lives of 93 people, including many of the city's lawyer community who had gone there to mourn the fatal shooting of a colleague. Details of the Attack The Police Academy was attacked by three heavily armed assailants, who were equipped with suicide jackets, at around 11.10pm on 24 October 2016. The gunmen targeted the sleeping quarters of the academy, which was home to some 700 recruits. They wore army uniforms, had their faces covered and carried Kalashnikov rifles.

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Initially, they silenced the watch tower sentry and were able to enter the sprawling academy grounds. Most of the deaths were caused when two of the attackers blew themselves up. Finally, in the counter militant operations conducted by Pakistan army and paramilitary forces, two of the militants died after detonating their bomb vests and one was killed by security forces. Motive of the Attack The population of Baluchistan has a majority of Sunni Muslims. Iran being a Shiite majority country has being helping Pakistan militarily in subduing the Sunni dominated Baluchistan, which is also a cause of anguish amongst the Baloch people. Though the specific motive of this attack could not be immediately ascertained, however, Lashkar-e-Jhangvi, whose roots are in Punjab province, has a history of carrying out sectarian attacks in Baluchistan, particularly against the minority Hazara Shias. The other militant groups that operate in Baluchistan include factions of the Pakistani Taliban and Al Qaeda. There has been a major migration of Pashtuns‟ from Afghanistan into Baluchistan during the Afghan War, which also drives the insurgency movement in Baluchistan. Moreover, the Taliban fighters use Baluchistan for rest and recuperation, whenever, pressure on them intensifies from the US led forces in Afghanistan. The control over resource rich Baluchistan province, in which China too has major economic and strategic interests, has multiple dynamics in play.

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47)The issue of East China and South China Seas Introduction The dispute is about staking the claim over eight uninhabited islands and rocks, with a total area of about 7 sq km in the East China Sea by both, China and Japan. The islands, called the Senkaku/Diaoyu, lie north-east of Taiwan, east of the Chinese mainland and south-west of Japan's southern-most tip, Okinawa. The islands are presently controlled by Japan. The issue emerged into prominence when, in April 2012, a right-wing Tokyo Governor Shintaro Ishihara expressed the intent to use public money to buy the islands from their private Japanese owner. Japanese government then reached a deal to buy three of the islands from the owner. This move angered China, triggering public and diplomatic protests. Since then, Chinese government ships have regularly sailed in and out of what Japan says are its territorial waters around the islands. In November 2013, China also announced the creation of a new air-defence identification zone, which would require any aircraft in the zone, which flies past the islands to comply with rules laid down by Beijing. Japan labelled the move as "unilateral escalation”. Significance of these Islands The significance of these islands is that they are close to important shipping lanes, offer rich fishing grounds and lie near potential oil and gas reserves. They are also in a strategically significant position, amid rising competition between the US and China for military primacy in the Asia-Pacific region. Reasons Offered by Japan for its Claim Japan claims that it had surveyed these islands in the 19th Century and on 14 January 1895, it erected a sovereignty marker to incorporate it into Japanese territory, after they were found uninhabited. Historically speaking, after its defeat in the Second World War, Japan had to renounce captured territory. Under the Treaty of San Francisco, in 1951 Japan gave up its claim over a number of territories and islands, including Taiwan. These islands had come under US trusteeship after World War-II, which was again returned to Japan in 1971 under the Okinawa reversion deal.

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Japan says China raised no objections to the San Francisco deal. And it says that it is only since the 1970s, when the issue of oil resources in the area emerged, that Chinese and Taiwanese authorities began pressing their claims. Reasons Offered by China for its Claim China says that the islands have been part of its territory since ancient times, serving as important fishing grounds administered by the province of Taiwan. Taiwan was ceded to Japan in the Treaty of Shimonoseki in 1895, after the Sino-Japanese war. When Taiwan was returned in the Treaty of San Francisco, China says these islands should have also been returned. Beijing says that Taiwan did not raise the issue, when the islands were being returned to Japan by USA under the Okinawa reversion deal, because it was dependent on the US for support. Separately, Taiwan also claims the islands. Role of USA After WW-II, a security alliance was forged between US and Japan, which was formalised in 1960, under which US was given military bases in Japan in return for its promise to defend Japan in the event of an attack. The connotation of the same is that in an event of a conflict between China and Japan, Japan would expect US military back-up. US President Barack Obama has confirmed that the security pact applies to the islands as well, however, he has warned that escalation of the issue would harm all sides. Conclusion The Senkaku/Diaoyu issue highlights the more robust attitude China has been taking to its territorial claims in both the East China Sea and the South China Sea. It poses a serious regional security threat as China's military continues to modernises and intimidate the smaller neighbours. The biggest reason for less possibility of an early solution is that the dispute ignites nationalist passions on sides, putting pressure on politicians to appear tough and ultimately making any possible resolution even harder to find.

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48)Issue of South China Sea Introduction The basic reason for the dispute is claim over territory and sovereignty over ocean areas, of the Paracels and the Spratlys islands located in the South China Sea by a number of countries. Alongside these islands, are dozens of rocky outcrops, atolls, sandbanks and reefs, such as the Scarborough Shoal. Although largely uninhabited, the Parcels and the Spratlys islands may have reserves of natural resources around them. There has been little detailed exploration of the area, so estimates are largely extrapolated from the mineral wealth of neighboring areas. The sea is one of the most busy shipping route and home to fishing grounds that supply the livelihoods of people across the region. Major Reasons for Emerging into Prominence Firstly, South China Sea is that world‟s busiest waterway and anyone controlling or having the access to it can manipulate, apply coercive pressure and earn phenomenal revenue from the movement of international vessels. Secondly, it is laden with natural gas and oil, and ownership of it will provide opportunity for exploration of this huge source of energy, especially to an energy starved country like China. Thirdly, as per the international maritime laws, the extent of the maritime border is 12 nautical miles from the extremity of the land boundary of a country, by claiming islands/ reclaiming land off the coast, it is possible to extend the territorial extremity, and hence extend the access to the maritime exploitation. Countries that Claim these Islands China claims by far the largest portion of territory which stretches hundreds of miles south and east from its most southerly province of Hainan. Beijing says its right to the area goes back centuries to when the Parcel and Spratly island chains were regarded as integral parts of the Chinese nation, and in 1947 it had also issued a map detailing its claims. It showed the two island groups falling entirely within its territory. Those claims are exactly mirrored by Taiwan as well.

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Vietnam refutes the historical account given by China and says that China had never claimed sovereignty over the islands before the 1940s. Further, Vietnam claims that it has actively ruled over both the Parcels and the Spratlys since the 17th Century and has the documents to prove it. The other major claimant in the area is the Philippines, which invokes its geographical proximity to the Spratly Islands as the main basis of its claim for part of this group of islands. Both the Philippines and China lay claim to the Scarborough Shoal (known as Huangyan Island in China), a little more than 100 miles (160km) from the Philippines and 500 miles from China. Malaysia and Brunei also lay claim to territory in the South China Sea by saying that it falls within their Exclusive Economic Zones, as defined by the United Nations Convention on the Law of the Sea. Though, Brunei does not claim any of the disputed islands, but Malaysia claims a small number of islands in the Spratlys. Recent Flashpoints The most serious trouble in recent decades has flared between Vietnam and China, and there have also been stand-offs between the Philippines and China:  In 1974 the Chinese seized the Parcels from Vietnam, killing more than 70 Vietnamese troops.  In 1988 the two sides clashed in the Spratlys, with Vietnam again coming off worse, losing about 60 sailors.  In early 2012, China and the Philippines engaged in a lengthy maritime stand-off, accusing each other of intrusions in the Scarborough Shoal.  In July 2012 China angered Vietnam and the Philippines when it formally created Sansha city, an administrative body with its headquarters in the Paracels which it says oversees Chinese territory in the South China Sea.  In January 2013, Philippines said it was taking China to a UN tribunal under the auspices of the UN Convention on the Laws of the Sea, to challenge its claims.  In 2013 China, asked India‟s ONGC Videsh to stop gas exploration which it was doing on behalf of Vietnam.  In May 2014, the introduction by China of a drilling rig into waters near the Parcel Islands led to multiple collisions between Vietnamese and Chinese ships.  In April 2015, satellite images showed China building an airstrip on reclaimed land in the Spratlys. Conclusion Although China has tended to favor bilateral negotiations behind closed doors, other countries want international mediation. But even if the Philippines are successful in its attempts to pursue China at a UN tribunal, China would not be obliged to abide by the ruling. Recent attempts by ASEAN to discuss new ideas for resolving the dispute appear to have left the bloc severely divided. The US has warned China not to "elbow aside" the countries it is in conflict with over the islands. However, no external pressure has so far worked on China to limit it territorial expansionism.

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