GS Analyst: Daily Current Affairs

Northeast India has been grappling with a severe drug problem, impacting social, economic, and security aspects of the region. The proximity to the Golden Triangle, porous borders, and socio-economic factors contribute to this complex issue.

Drug Trafficking and Consumption Patterns:

• Golden Triangle Connection: Northeast India's proximity to Myanmar, part of the Golden Triangle, makes it vulnerable to drug trafficking routes.
• Types of Drugs: Heroin (54.3%), opioids (47.1%), and methamphetamine (41.2%) are commonly abused in the region, particularly in Manipur.
• Youth Vulnerability: Young people (15-30 age group) are particularly susceptible to drug abuse, with 48.6% of respondents in Manipur using injectable drugs.

Challenges in Combating Drug Menace:

• Porous Borders: The 1,642-km border with Myanmar facilitates easy smuggling of drugs despite increased surveillance efforts.
• Political Instability: Civil war-like conditions in Myanmar create a conducive environment for drug cartels operating in Wa and Shan states.
• Insurgency-Drug Nexus: Some insurgent outfits in the region are allegedly involved in drug trafficking to fund their activities.

Government Responses and Initiatives:

• Hi-tech Surveillance: Deployment of long-range reconnaissance, observation, and battlefield surveillance radars along the Myanmar border.
• 'Drug-free India' Campaign: Destruction of about 40,000kg of narcotic substances across Northeast India in 2022.
• Technological Advancements: Use of drones, artificial intelligence, and satellite mapping to identify and control opium cultivation areas.

Impact and Statistics:

• Prevalence Rates: High opioid use rates in Arunachal Pradesh (22.1%), Mizoram (25.67%), Nagaland (25.22%), and Manipur (14.22%).
• Seizures and Arrests: 330,000 kg of drugs worth Rs 20,000 crore seized between 2014-2022, compared to 152,000 kg worth Rs 768 crore during 2006-2013.
• Health Concerns: Widespread drug addiction has led to increased HIV/AIDS infections in the region.

Way Forward:

• Comprehensive Approach: Need for a multi-pronged strategy addressing both supply and demand aspects of the drug problem.
• International Cooperation: Strengthening collaboration with neighboring countries, especially Myanmar, to tackle cross-border drug trafficking.
• Rehabilitation and Awareness: Expanding rehabilitation facilities and intensifying awareness campaigns, particularly among the youth.

UPSC Mains Question

Q. With reference to the drug problem in India, discuss the measures taken by the Government of India to tackle this menace. Also, discuss the role of NGOs and civil society in addressing this issue.

The recent surge in India's silver imports from the UAE via GIFT City has raised concerns over potential revenue losses and compliance with trade regulations.

Key Highlights of the Issue

• Significant Increase in Imports: India’s imports of gold and silver from the UAE jumped by 210% in 2023-24, reaching $10.7 billion, with total silver imports standing at $5.4 billion.
• Concentration of Imports: In May, 87% of India’s global silver imports came from Dubai at a reduced 8% duty, all cleared through the GIFT City exchange in Gandhinagar.
• Concerns Over Compliance: The Global Trade Research Initiative (GTRI) flagged concerns regarding the adherence to the rules of origin specified in the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

Reason Behind the Situation

• Duty Arbitrage: The lower import duty of 8% through GIFT City, compared to the regular 15%, creates a significant arbitrage opportunity.
• Lack of Regulation: Unlike other ports, GIFT City does not limit imports to RBI/DGFT-nominated agencies, allowing private traders to exploit the system.
• Compliance Issues: Imports through other ports were questioned for not meeting rules of origin requirements, a concern seemingly ignored in GIFT City.

Impact of Such Practices

• Revenue Loss: As the tariff on silver imports reduces to 0% over the next 10 years under CEPA, India could face a revenue loss of ?6,700 crore.
• Market Disruption: The concentration of imports through GIFT City could disrupt traditional import practices and market dynamics.
• Potential Expansion: There is a risk that similar practices might extend to other precious metals like gold, platinum, and diamonds.

Required Measures

• Re-negotiation of CEPA Terms: To nullify the duty arbitrage and ensure fair trade practices.
• Enhanced Compliance Checks: Rigorous verification of value addition claims by Dubai exporters and stricter adherence to rules of origin.
• Restriction of Imports: Limiting silver imports to RBI/DGFT-nominated agencies to minimize the risk of misdeclared imports.
• Thorough Investigation: A detailed probe into the relationships between export and import firms to identify potential conflicts of interest or familial ties.

Mains Practice Question

Q. "Examine the implications of India's growing trade deficit with the UAE in light of the recent Comprehensive Economic Partnership Agreement (CEPA). Suggest measures to ensure a balanced trade relationship while leveraging the benefits of the agreement."

The Supreme Court has ruled that the right to bail of an accused cannot be withheld as a punishment, regardless of the nature of the crime, emphasizing the fundamental right to a speedy trial under Article 21 of the Constitution.

Key Highlights of the Judgment

• Fundamental Right to Bail: The Supreme Court underscored that an accused's right to bail cannot be denied as a form of punishment, regardless of the nature of the crime.
• Article 21 of the Constitution: The court reiterated that Article 21, which guarantees the right to a speedy trial, must be upheld in all circumstances.
• Case Example: The judgment came in response to an appeal by Javed Gulam Nabi Shaikh, who was denied bail by the Bombay High Court under the Unlawful Activities (Prevention) Act, 1967 (UAPA).

Reason Behind the Judgment

• Presumption of Innocence: Denial of bail results in the unjust "prisonisation" of an individual who is presumed innocent until proven guilty.
• State Responsibility: If the state or prosecuting agency cannot ensure a speedy trial, they should not oppose bail based on the seriousness of the crime.
• Prolonged Undertrial Detention: The court noted that Shaikh had been in prison for four years without the trial even reaching the stage of framing charges.

Impact of the Judgment

• Reaffirmation of Legal Principles: The judgment reaffirms the principle that bail is not to be used as a punishment, ensuring the protection of fundamental rights.
• Encouragement for Speedy Trials: It puts pressure on the state and prosecuting agencies to expedite trials and avoid unnecessary delays.
• Human Rights Protection: The ruling highlights the importance of safeguarding the human rights of undertrial prisoners.

Required Measures

• Legal Framework Strengthening: Ensure that the legal framework facilitates timely trials and the fair application of bail provisions.
• Judicial Oversight: Enhance judicial oversight to prevent the misuse of bail denial as a form of punishment.
• Resource Allocation: Allocate adequate resources to the judiciary and investigating agencies to expedite trials and reduce the backlog of cases.

Mains Practice Question

Q: "Bail is a fundamental right of an accused person and should not be withheld as a form of punishment. Discuss in the context of recent Supreme Court judgments and the principles enshrined in the Indian Constitution."

India is considering renting oil storage space in Southeast Asian countries to enhance its strategic petroleum reserves, aiming to bolster energy security and meet international standards.

Key Highlights of the Developments

• Strategic Locations: Indian Strategic Petroleum Reserves Ltd (ISPRL) is considering storage spaces in Singapore, Japan, and South Korea due to their strategic, logistical, and economic viability.
• Commercial Viability: The decision will hinge on commercial viability and accessibility, ensuring that rental charges are reasonable and do not exceed transportation costs.
• Previous Efforts: This is not the first instance of India considering overseas crude storage. In 2020, India and the US signed an MoU to explore storing oil in the US Strategic Petroleum Reserve.

Reason Behind the Initiative

• Energy Security: Increasing strategic reserves is crucial for India’s energy security, providing a buffer during supply disruptions or emergencies.
• Geopolitical Considerations: Locations like the UAE are strategically favorable due to their proximity and stability compared to other oil-rich regions.

Impact of the Initiative

• Enhanced Strategic Reserves: This move will help India meet the International Energy Agency’s (IEA) requirement of maintaining oil stock levels equivalent to at least 90 days of net imports.
• Increased Storage Capacity: ISPRL’s current capacity stands at 5.3 million tonnes, with ongoing projects to add 6.5 million tonnes more. Additional storage abroad would significantly augment this capacity.
• Geopolitical Stability: Storing oil in stable regions like Southeast Asia can mitigate risks associated with volatile areas, ensuring a more reliable energy supply.

Required Measures

• International Agreements: Finalizing agreements with countries like Japan, South Korea, and Singapore to secure storage space.
• Cost-Benefit Analysis: Conducting thorough cost-benefit analyses to ensure the economic viability of renting overseas storage.
• Regulatory Framework: Establishing a robust regulatory framework to manage and oversee international storage agreements and logistics.

Mains Practice Question

Q: "Discuss the significance of strategic petroleum reserves for India’s energy security. How does renting storage space abroad fit into this strategy?"

A Nature study shows that researchers identified a bone as being Denisovan & analysed other mammalian bones found at the site to find that the ancient humans fed on & processed these bones.

About:

• The yak (Bos grunniens) is a large, long-haired bovine native to the Himalayan region and Tibetan Plateau.
• These hardy animals are well-adapted to high altitudes, cold temperatures, and low oxygen environments.
• Habitat: They typically live at elevations between 3,000-5,000 meters (9,800-16,400 feet).
• IUCN Status: Vulnerable

The department for promotion of industry and internal trade proposed relieving new businesses of angel tax.

About:

• It is a 30% tax that is levied on the funding received by Startups from an external investor.
• However, this 30% tax is levied when Startups receive angel funding at a valuation higher than its ‘fair market value’.
• It is counted as income to the company and is taxed.
• Angel tax was introduced in 2012, with the purpose of keeping money laundering in check.

Indian equity has been attracting FPI inflows

About:

• Foreign portfolio investment (FPI) involves holding financial assets from a country outside of the investor's own.
• FPI holdings can include stocks, ADRs, GDRs, bonds, mutual funds, and exchange traded funds.
• Along with foreign direct investment (FDI), FPI is one of the common ways for investors to participate in an overseas economy, especially retail investors.
• Unlike FDI, FPI consists of passive ownership; investors have no control over ventures or direct ownership of property or a stake in a company.

India's demographic dividend presents both opportunities and challenges for economic growth. The country needs to equip its workforce with skills aligned to the global economy's changing demands to capitalize on its youth population.

Workforce Trends and Skill Gaps:

• Declining Labour Mobilization: Labour mobilization rates in India have fallen from over 70% in 1990 to 56% in recent years, according to World Bank data.
• Shrinking High-Skill Workforce: Periodic Labour Force Survey (PLFS) data shows a declining growth rate of highly skilled individuals (skill levels 3 and 4) in 22 of India's 36 states and Union territories between 2017 and 2022.
• Rise in Semi-Skilled Workers: The semi-skilled workforce (skill level 2) has grown significantly, with a national compounded annual growth rate of 59.5% between 2017-18 and 2022-23.

Skill Development Initiatives and Challenges:

• PMKVY Impact: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has contributed to the growth of the semi-skilled workforce through skill training and certification.
• Formal Training Gap: Despite progress, 72.6% of the workforce aged 15 to 59 still lacks formal vocational or technical training as of 2022-23, down from 91.9% in 2017-18.
• Urban-Rural Skill Disparity: There is a noticeable skill intensity disparity between rural and urban areas, with metropolitan districts hosting skill-intensive trade clusters.

Data-Driven Strategy for Skill Development:

• Skill Census Proposal: The concept of a 'skill census', as proposed by the Chandrababu Naidu-led government in Andhra Pradesh, can help assess current skill levels across regions and sectors.
• Targeted Skill Mapping: Mapping the current skill landscape can help policymakers identify specific areas with skill shortages and devise targeted actions.
• State-Specific Programs: State governments can create specialized skill-building programmes to address the demands of their unique workforces and industries.

UPSC Mains Questions:

Q. Analyze the challenges India faces in transforming its demographic dividend into a skilled workforce. Suggest measures to bridge the skill gap and enhance the country's global competitiveness.

The ANRF Bill, passed in 2023, aims to boost research in India's universities and colleges. However, the recently announced Governing Board and Executive Council lack crucial representation, raising concerns about its effectiveness.

Composition and Representation Issues:

• Lack of University Representation: Despite 95% of students attending State universities and colleges, the board and council lack members from Central or State universities.
• Limited Industry Presence: Only one industry representative, an Indian-American businessman, is included, despite plans to raise 70% of funding from non-government sources.
• Inadequate Diversity: The committee has only one woman representative and lacks representation from Indian industry, entrepreneurs, and eminent academics from Central and State universities.

Structural Challenges and Required Reforms:

• R&D Underfunding: India needs to increase its R&D budget to 4% of GDP and overhaul the current funding system.
• Operational Improvements: The ANRF must implement a robust grant management system, standardized peer-review process, and ensure timely disbursal of funds.
• Bureaucratic Hurdles: The foundation needs to be free from stringent government financial rules and allow flexible spending without the Government e-marketplace (GeM) portal constraints.

Recommendations for Effective Implementation:

• Diverse Representation: Include practicing natural and social scientists from universities, more women, and young entrepreneurs in the committee.
• Leadership Criteria: The future CEO should have backgrounds in both industry and academia, capable of fundraising and understanding the global innovation ecosystem.
• Structural Overhaul: The ANRF must function differently from current government science departments to bridge research and teaching in universities effectively.

UPSC Mains Questions:

Q. Discuss the challenges faced by the research ecosystem in India. How can the ANRF address these issues and foster a culture of innovation in universities and colleges?

The Supreme Court of India's landmark judgment in M.K. Ranjitsinh and Others vs Union of India recognizes the right to be "free from the adverse impacts of climate change". This necessitates a comprehensive climate legislation tailored to India's developmental context.

Need for a Climate Framework Law:

• Right to Climate Protection: The Supreme Court's recognition of the right to be free from climate change impacts requires legislative backing for effective implementation.
• Development Reorientation: India needs to redirect its development towards low-carbon and climate-resilient futures, necessitating a systematic approach.
• Social Justice Imperative: The law must address climate vulnerabilities and ensure a just energy transition, grounded in advancing social justice.

Key Features of the Proposed Climate Law:

• Procedural Framework: The law should establish well-defined procedures applicable across government levels to realize the right to protection against climate change effects.
• Institutional Structure: It should create a governance structure for strategizing, prioritizing, and evaluating climate policies.
• Development-Centric Approach: The law must focus on squeezing maximum development from each ton of carbon while avoiding high-carbon lock-ins, given India's low per capita emissions.

Institutional Mechanisms:

• Low-Carbon Development Commission: An independent body of experts to offer practical solutions for low-carbon growth and resilience to national and state governments.
• Climate Cabinet: A high-level strategic body comprising ministers and chief ministers to drive climate strategy across government departments.
• Coordination Mechanism: Reinvigoration of the Executive Committee on Climate Change with clearly specified legal powers and duties.

Federal Considerations:

• Subnational Engagement: The law must meaningfully engage with state and local governments, given their crucial role in areas like electricity, agriculture, and water management.
• Scientific Capacity Building: Establish channels for subnational governments to access national scientific capacity.
• Climate-Aligned Financing: Require centrally-sponsored schemes to align with climate goals and implement climate tagging of expenditure.

UPSC Mains Questions:

Q. Discuss the need for a comprehensive climate framework law in India. How can such legislation balance development imperatives with climate resilience and low-carbon growth?