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11th March 2024

India signs $100bn FTA with 4 European nations

Context

India has signed a free trade agreement (FTA) with a group of four European countries that are not members of the European Union.

1: Dimension- Significance of the deal for India

  • Investment opportunity: The deal with the European Free Trade Association (EFTA) will see investments in India of USD 100bn (£77.8bn). The investments do not cover foreign portfolio investment.
  • Major range of investment: Under this deal, India will lift most import tariffs on industrial goods from the four countries in return for investments over 15 years. The investments are expected to be made across a range of industries, including pharmaceuticals, machinery and manufacturing.
  • Better market access: The agreement enhances market access and simplifies customs procedures making it easier for Indian and EFTA businesses to expand their operations in the respective markets.
  • Boost to Make in India: The agreement will give a boost to Make in India and provide opportunities to young & talented workforce. The FTA will provide a window to Indian exporters to access large European and global markets.
  • A show for UK: The announcement comes as the UK and India have been holding negotiations over an FTA for the last two years. In the last two years, India has signed trade deals with Australia and the United Arab Emirates.

2: Dimension- Major Take-aways

  • For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.
  • EFTA is offering2% of its tariff lines which covers 99.6% of India’s exports. The EFTA’s market access offer covers 100% of non-agri products and tariff concession on Processed Agricultural Products (PAP).
  • India is offering7% of its tariff lines which covers 95.3% of EFTA exports of which more than 80% import is Gold. The effective duty on Gold remains untouched. Sensitivity related to PLI in sectors such as pharma, medical devices & processed food etc. have been taken while extending offers. Sectors such as dairy, soya, coal and sensitive agricultural products are kept in exclusion list.

Fact Box: EFTA

  • EFTA is an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States.
  • The EFTA is made up of Norway, Switzerland, Iceland and Liechtenstein.
  • EFTA is one important economic block out of the three (other two - EU &UK) in Europe. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.

India’s Zero Food Children

Context

In a study conducted to assess the number of children aged six-23 months who have not consumed any food over a 24-hour period, India has disturbingly ranked high. With 19.3 per cent of children classified as 'zero-food,' India ranked third globally, following west African countries Guinea (21.8 per cent) and Mali (20.5 per cent).

1: Dimension-Scope of the problem

  • India has by far the highest number of 'zero-food' children at 6.7 million (67,00,000), accounting for almost half of all 'zero-food children' across 92 countries in the survey.
  • The problem of such extreme food deprivation is severe among children in U.P.
  • The states of Uttar Pradesh (28.4%), Bihar (14.2%), Maharashtra (7.1%), Rajasthan (6.5%), and Madhya Pradesh (6%) account for nearly two-thirds of the total zero-food children in India.

2: Dimension-Root cause of the issue

  • Alongside poverty and marginalisation in economic backgrounds, it’s rapid urbanisation and nuclearised families that have contributed to such a large number of ‘zero food children’ in the India’s most populous State.
  • Women from underprivileged economic backgrounds work to sustain their families, resulting in their having insufficient time to complement breastfeeding for children above six months of age
  • Most women are not aware of the government’s schemes (e.g.,- Poshan Abhiyan targeting holistic development and adequate nutrition for children, pregnant women and mothers, and primarily focused on children in the 0-6 years age group)

There is need to introduce solid or semisolid foods to a child's diet -- as breastfeeding alone is not sufficient to provide children with nutrition, which, in turn might hinder their growth and development.

Fact Box: Share of food

  • According to the Food and Agricultural Organization (FAO), the share of other food contributing to calorific requirements should be about 50% for children aged nine to 11 months (that is, 300 out of 700 Kcal/day), while the share of breastmilk should be greater than other food for children aged six-eight months (that is, 400 out of 600 Kcal/day).

Gig workers are suffering: study

Context

A recent study of app-based workers shows they work long hours for low pay, with no social security, creating a loop of issues for them.

1: Dimension- Scope of the problem

  • Overburdened with work: Almost a third of app-based cab drivers work for over 14 hours a day, while more than 83% work more than 10 hours and 60% work over 12 hours.
  • Social disparities: Over 60% of the drivers from Scheduled Castes and Tribes working for over 14 hours a day, while only 16% from the unreserved category work such long hours.
  • Income disparities: There exists income disparities and these income disparities further exacerbate the already existing social inequalities and perpetuate cycles of poverty and distress within these communities.
  • Risks: Due to the demanding work hours, the drivers are physically exhausted, and exposed to an increased risk of road traffic accidents, especially due to the ‘10-minute delivery at the doorstep’ policy of certain e-commerce platforms.
  • Additional stress: The lack of social and job security creates additional stress and leads to potential health issues.

2: Dimension-Rules in developed economies

  • UK Supreme Court: In 2021, in a landmark judgment, the UK Supreme Court classified Uber drivers as ‘workers’ under the UK Employment Rights Act 1996, thus entitling them to various benefits like paid holidays and minimum wages.
  • Dutch High Courtalso handed down a similar ruling, stating that the legal relationship between Uber and the drivers meets all the characteristics of an employment contract, making them entitled to workers’ rights under local labour laws.
  • The Superior Court of Californiastruck down a 2020 ballot measure known as Proposition 22 that excluded gig workers from labour laws by declaring them ‘independent contractors’.
  • Germany’s Temporary Employment Actprovides for equal pay and equal treatment of gig workers.

3: Dimension- Required measures

  • There is need of stronger social security for app-based workers.
  • The government needs to exercise oversight on the fairness of algorithms and mechanisms used by platforms to monitor such workers.

Madiga member in Scheduled Caste panel

Context

The Union government has chosen to constitute the most-recent National Commission for Scheduled Castes (NCSC) by ensuring the presence of at least one member from the Madiga community, one of the most populous Scheduled Caste communities in Telangana and Andhra Pradesh. 

Who are the Madigas?

  • The Madiga community is a Telugu caste, mainly living in the southern states of Telangana, Andhra Pradesh, and Karnataka. However, Madigas also live in Tamil Nadu, Maharashtra and Odisha.
  • The community has historically worked in handicraft, leatherwork, tannery, and agriculture.
  • The Indian government categorises the community within the SC category.
  • There are various sub-castes within Madigas.
  • As per the 2011 census, the Madiga community in the undivided Andhra Pradesh (before the creation of Telangana in 2014) constituted more than 48 per cent of the SC population. 

New Toll Collection System

Context

The government plans to implement a new highway toll collection system based on the global navigation satellite system.

What is the new proposed highway tolling system?

  • The global navigation satellite system uses a large constellation of satellites to provide more accurate location and navigation information to users globally as compared to the GPS alone.
  • The new system’s implementation will involve an On-Board Unit (OBU), or a tracking device, fitted inside a vehicle whose location can be mapped using
  • The co-ordinates of the entire length of the country’s national highways will have to be logged with the help of digital image processing, and software will be used to assign the toll rate on a particular highway, calculate the toll amount for a vehicle as per the distance travelled by it and then deduct it from a wallet linked to the OBU.
  • The system will additionally have gantries, or arches mounted with CCTV cameras, at various points on a highway for enforcement purposes.
  • These will capture an image of the vehicle’s high security registration plate and cross verify if a road user is trying to trick the system by either removing the tracking device or travelling without an OBU onboard.

Fact Box: GPS Aided GEO Augmented Navigation (GAGAN)

  • It is a Satellite Based Augmentation System (SBAS) implemented jointly with Airport Authority of India (AAI).
  • The main objectives of GAGAN are to provide Satellite-based Navigation services with accuracy and integrity required for civil aviation applications and to provide better Air Traffic Management over Indian Airspace.

India’s golden langur

Context

There are an estimated 7,396 golden langurs in India, the latest survey of the primate has revealed. 

About
  • Gee's golden langur (Trachypithecus geei), also known as simply the golden langur, is an Old World monkeyfound in a small region of Western Assam, India and in the neighboring foothills of the Black Mountains of Bhutan. 
  • Adult males have a cream to golden coat with darker flanks while the females and juveniles are lighter. 
  • It has a black face and a long tail up to 50 cm (19.69 in) in length. 
  • It lives in high trees and has a herbivorous diet of ripe and unripe fruits, mature and young leaves, seeds, buds and flowers.
  • The average group size is eight individuals, with a ratio of several females to each adult male. 
  • The entire distribution range of the species covers the Manas Biosphere Reserve and all fragmented forests in the western part of Assam.
  • The previous population estimation in 2008-09, recorded 6,000 golden langurs in India.

TERMS OF THE DAY

  1. Import Tariff: Import tariffs are taxes charged by the customs authority on the importation of goods into a country.
  2. Foreign portfolio investment: Foreign portfolio investment (FPI) is securities and other assets passively held by foreign investors, allowing individuals to invest overseas.
  3. Global navigation satellite system: The global navigation satellite system is a term used to refer to any satellite-based navigation system, including the United States’ Global Positioning System(GPS).
  4. Processed agricultural products (PAPs): PAPs are non-agricultural food and drink items made out of agricultural products.
  5. Social security: Social Security in India includes a variety of statutory insurances and social grant schemes bundled into a formerly complex and fragmented system run by the Indian government at the federal and state level. 
  6. Zero-food children: They are those between 6-23 months who had not consumed any animal milk, formula, solid, or semisolid food in the last 24 hours.

Editorial

The Commonwealth Family

Context:

The Commonwealth Day celebration on March 11 highlights the significance of the Commonwealth family in addressing global challenges, particularly for small island members facing the impacts of climate change.

Celebrating Commonwealth Day:

  • Unity: The Commonwealth family commemorating 75 years since the London Declaration emphasises the unity among its diverse nations, faiths, and communities.
  • Collaboration: The Commonwealth Charter, which outlined core values and shared goals for the first time, promotes collaboration on various issues from the rule of law to environmental protection.
  • Multiple benefits: The Commonwealth membership provides benefits such as reduced trade costs, empowerment of women, and joint efforts in promoting democratic values and providing support during crises like in Guyana.

Addressing Climate Change Challenges:

  • Commonwealth solidarity is of huge importance, particularly for small island members facing disproportionate impacts of climate change, as recognized in the Commonwealth Charter.
  • Calling support: The upcoming Commonwealth Heads of Government Meeting in Samoa and the UN Small Island Developing States conference in Antigua and Barbuda, stressing the need for enhanced support for climate resilience and mitigation efforts.
  • Solution: Despite commitments to climate finance, there persist challenges for small-island states in accessing funding. It needs greater support through the Commonwealth network to address this issue effectively.
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Editorial

Not law, nor duty

Context

In the wake of increasing concerns over the welfare and safety of Indian citizens working with the Russian military amid the Russia-Ukraine conflict, the government's actions and response have come under scrutiny.
Growing Concerns Over Indians in Russia-Ukraine Conflict:

  • Risks: Confirmation by the Ministry of External Affairs (MEA) of the death of a second Indian in the Russia-Ukraine conflict underscores the risks faced by Indians working with the Russian military.
  • Trap of false promises: Recent reports also revealed the plight of numerous Indians trapped in the conflict zone, leading government agencies to crack down on recruiters involved in human trafficking and duping individuals into perilous jobs in Russia.
  • Luring: Despite advisories against falling for false promises of "safe jobs" with the military, Indians continue to be lured into dangerous positions.

Delayed Government Response and Ongoing Challenges:

  • Aftermath: The belated actions of the government offer little solace to the families of the deceased and injured individuals, with repatriation processes still pending.
  • Criticism mounts as the government appears to have only recently acknowledged the dangers of Russian military job offers, despite reports of ongoing recruitment activities for months.
  • Questions arise regarding the government's handling of the situation, including its failure to assertively negotiate with Russian authorities and its simultaneous approval of recruitment drives in other conflict zones like Israel.

Calls for Structured, Transparent, and Humane Approach:

  • A structured, transparent, and humane approach is deemed necessary to safeguard Indian lives and prevent further exposure to danger.
  • Preventing others: While the priority remains the safe return of Indians stranded in conflict zones, efforts must also focus on preventing others from being ensnared in similar situations due to economic hardships.
  • Stronger commitment: The government is urged to demonstrate a stronger commitment to protecting its citizens abroad.
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Editorial

We need limits on election campaign spending

Context:

In light of escalating concerns over government spending on advertisements before elections, particularly in the wake of the "India Shining" campaign controversy during the 2004 Lok Sabha elections, the issue of election expenditure has garnered attention.

Limits on Spending:

  • Misuse of public funds: Governments' expenditure on advertisements has risen significantly in recent years, particularly before elections, leading to concerns about the misuse of public funds.
  • Skewing the level playing field: Despite guidelines set by the Supreme Court in 2015 and 2016 to regulate government advertisements, ruling governments still enjoy an advantage in disseminating information.
  • Questionable process: The breach of election expenditure limits by political candidates and parties, coupled with the lack of transparency in funding sources, raises questions about the integrity of the electoral process and the influence of money power.

Towards Electoral Reforms:

  • Suggestions for electoral reforms include banning government advertisements six months before elections, imposing expenditure ceilings on political parties, and enhancing judicial capacity to expedite election-related cases.
  • Free and fair elections: These reforms aim to create a level playing field and ensure free and fair elections and enhancing accountability and transparency in the electoral process.
  • Support: However, the implementation of these reforms requires bipartisan political support and a concerted effort, which otherwise risk undermining the democratic principles of "We the people."
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