TABLE OF CONTENTS

Sr. No. Topic Pg No.

1 Can India become a 5 Trillion Dollar Economy by 2024? 2
2 Slowdown in Indian Economy- Reasons and Solutions 9
3 India-A Dangerous Country for Women 19
4 Agricultural Crisis in India - The Root Cause and Consequences 21
5 Sabarimala Issue: Tradition vs. Women’s Democratic Rights 26
6 How Can We Handle and Prevent Online Harassment ? 31
7 Are Streaming Platforms (Netflix etc.) a Threat to Conventional TV ? 33
8 Globalization is Dead and We Need to Invent a New World Order. 35
9 Does India Need a Bullet Train? 38
10 Will Insolvency and Bankruptcy Code Fix the Bank NPA Issue? 41
11 Is Artificial Intelligence “the worst event in the history of civilization”? 47
12 The Impact of Brexit on the Politics and Policies of the European Union 51
13 Umbrella Revolution in Hong Kong 54
14 Demonetization and GST: What India Gained and Lost. 57
15 Citizenship Amendment Act – What is at Stake? 63
16 Abrogation of Article 370 65
17 Bifurcation of Jammu & Kashmir 66
18 Union Budget – 2019-20 67
19 Electric vehicles in India 70
20 Doubling of Farmers’ Income by 2022 – How can India achieve this? 71
21 #MeToo 72
22 5 years of Modi Government 74
23 Blockchain Technology – Pros & Cons 77
24 Impact of Technology on jobs 78
25 Is a relook needed in the caste reservation system? 79
26 Should reservations be based on economic status? 81
Decriminalization of Homosexuality – Road ahead for LGBTQ community of
27 83
India
28 Statue of unity 84
29 Mob lynchings in India 85
30 Data is the new Oil 86

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1. Can India become a 5 trillion Dollar Economy by 2024?

Over last year and half, there has been a lot of buzz around the claim of making India a 5 trillion dollar
economy by 2024. Finance Minister Nirmala Sitharaman also emphasised the goal in her budget speech
presented in July 2019. There was a mention in her budget speech that by 2019, India had become 2.7
trillion dollar economy. Simple back of the envelope calculations reveal that India will have to grow
annually by more than 13% every year for the period 2019-24 in order to reach 5 trillion dollar mark by
2024.

On this background, let us see how fast Indian economy has grown over the years. The following line
chart shows the rate of growth of Indian economy since 1961 (Chart plotted using the World Bank data,
taken with thanks from GDP Growth of India | India GDP Growth 2019)
We can see that Indian economy has never grown substantially more than 10% in any year since 1961.

When the size of the economy is already the third largest in the world in terms of Purchasing Power
Parity, growing at that high rate is even more difficult due to ‘large base effect’. We rely only on numbers,
it seems difficult to achieve the goal at the moment.

This is not to paint a pessimistic picture but to set the expectations right. Moreover, aims are always set
at higher levels, which bring out the best and in the process one achieves the goals that seem unrealistic,
though the ultimate goal is not achieved. As they say- “Aim for the moon and if you miss, you will still
be among the stars”. Therefore, in this write-up, we will discuss the challenges and opportunities for
getting that 5 trillion dollars mark, say by 2025 or 2026, if not by 2024.

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 Historic Perspective
India grew at more than 8% between 2003-04 and 2007-08 till India’s growth march was halted by
the global economic crisis of 2008. This was the fastest continuous 5-years growth period in the
history of independent India. The factors that contributed to this rapid growth were a combination
of domestic as well as international factors. In order to grow at a high rate in the next 5 years, we
will need similar (if not the same) confluence of favourable domestic and external factors.

First let us revisit the domestic and international factors that contributed to India’s growth story
in the period 2003 to 2008.

Domestic factors
1. The latter half of Atal Bihari Vajpayee’s government saw some really good economic
reforms. In 2001, the Vajpayee government launched the ambitious ‘Golden Quad- rangular’
project to connect four metros with continuous good quality highways. The Vajpayee
government gave impetus to Public Private Partnership in highway building, which paved
the way for rapid construction of highways. The Vajpayee government also initiated
‘Pradhan Mantri Gram Sadak Yojana’ for building all weather roads in the rural area.
Manmohan Singh’s government that followed the Vajpayee government continued these
good policy measures. The Golden Quadrilateral project was finally completed in 2012.
Upto late 1990s and early 2000s, the state of highways in the country was really bad.
Importance of good road network for economic progress cannot be overemphasised. These
efforts paved the way for rapid economic growth in that period.
2. The Vajpayee government continued the policy of P.V.Narasimha Rao’s govern- ment
and diluted the government shareholding from several PSUs (this is called the process of
‘disinvestment’). Manmohan Singh’s government continued the policy of disinvestment and
disinvested from the Airport Authority of India. However Man- mohan Singh’s first term was
constrained in disinvestment due to the opposition of Communist parties, on whom the
government was dependent for survival.
3. The Vajpayee government brought much awaited reforms in the power sector through the
Electricity Act of 2003. It was an important milestone for attracting Public Private
Partnership in the power sector.
4. The Vajpayee government undertook very important policy measures in the telecom sector.
Mobile phones were introduced in India in 1996 and calling rates were as high as Rs.16 per
minute in 1996. Significant part of these high rates was due to high government taxes.
Vajpayee government cut the taxes on telecom services and also permitted the entry of
private players in the telecom market. The competition significantly reduced the prices. At
one point of time up-to early 1990s, there was a waiting period of as much as 10 years for
getting a landline phone. However by 2003-04, almost everyone in the country had mobile
phones. It was a great progress by any standards in a relatively short time. Progress in the
telecom industry paved the way for rapid economic progress in the following years.
5. In 2002, India’s fiscal deficit was about 6% of GDP. Due to the efforts of Vajpayee and
Manmohan Singh governments, it was brought below 3% in 2008. The crisis of 2008-09
required the government to hike expenditure, as a result of which there was a steep increase
in the fiscal deficit post 2008-09.

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 (Reference: India Consolidated Fiscal Balance: % of GDP [1998 - 2019] [Data & Charts])

Similarly the efforts of both Vajpayee and Manmohan Singh governments in the time period
2000 to 2006 contained inflation in manageable limits.
Since 1999, there was relative political stability in the country. That enabled the governments to
continue with their policies without any hindrance.
International Factors
In the year 2000-01, the US economy was hit by ‘dot com crash’. The attacks of 9/11 followed
soon. As a result, by March 2002, the US economy plunged into a mild recession.
In response to the recession, the US Fed under Alan Greenspan cut interest rates multiple times.
By 2004, the interest rates in the US were at record low levels at almost 1%.

Whenever the interest rates in the US are low, the US financial institutions invest in other countries
that hold a promise of better returns. Due to good policy initiatives by the government, India
held the promise of better returns. Therefore, the foreign institutions pumped in dollars in record
quantity in India in that period. The data collected from the ‘Handbook of Statistics on Indian
Economy’ published by RBI reveals that the foreign exchange reserves of India rose from about $
48 billion in late December 2001 to $101 billion in late December 2003 to $273 billion in late
December 2007. (Reference: Statistical Supplement)

To summarize, there was a favourable confluence of the domestic and international factors that
contributed to the growth of Indian economy from 2003 to 2008.

Current situation
In this background, it is important to understand how the domestic and international scenario is
unfolding. These developments will determine how fast Indian economy can grow.

A. Domestic factors
1. Health of Banking industry
Banking industry is critical for any economy. Banks perform the important task of lending to
corporates that play an important role in the economy. Rapid growth of Indian economy prior to
2008 and the developments from 2008 to 2014 sowed the seeds of what later emerged as the
crisis for the banking.

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 The problem of stalled projects
Assuming that the growth would continue for the foreseeable future, various corporations went
for new projects and/or expansion of their capacity. Banks also lent to these companies
aggressively with the assumption that the repayment would not be a problem because economic
progress would help these companies generate enough funds for repayment.

The second term of Manmohan Singh’s UPA government was marred by policy paralysis to a great
extent. Electricity Act of 2003 permitted private companies to install thermal power plants. However,
the coal required for these plants was to be procured from Coal India Ltd. The procedure was to allot
‘coal linkage’ to the private companies, which were decided in the meeting of a cabinet committee.
From 2010 to 2012, the cabinet committee did not meet regularly, which delayed the allotment of
coal linkages. After the allegations of corruption in coal linkages were made in 2012 (so called Coal
Scam), there was even more hesitancy on the part of the government in granting coal linkages.
Important government clearances such as environmental clearances took time. Similar were the
woes of many highway projects, which were held up for want of land acquisition.
The problem was that banks had already lent for these projects and construction was also underway
with repayments expected to start, usually 3 years after releasing the amount by the bank. If a power
plant could not start operations due to unavailability of coal, where would the plant generate the
amount required for repayment? This resulted in piling up of NPAs in banks.

On http://164.100.117.97/WriteReadData/userfiles/89.pdf, you can get an idea about the

quantum of the projects that were stalled for one reason of the other. The total expected
investment of all the stalled projects ran into Lakhs of Crore rupees.

Allegations of corruption in banking

There have been serious allegations that various corporates got loans from PSU Banks through
their political connection without any regard to credit-worthiness. This reason also contributed
to the problem of NPAs.

Disclosure of NPAs
For a number of years, banks had misused the loopholes in RBI regulations on disclosing the NPAs.
However, in 2016, the RBI under the then governor Raghuram Rajan made the disclosure norms
more stringent which banks could not easily bypass. As a result from 2016 onwards, banks were
forced to disclose the real NPA numbers.

As we can see on Bank NPAs: June 2019, the total NPA in top 36 banks in the country increased
from 6.71 Lakh Crore rupees in March 2017 to 9.66 Lakh Crore rupees in March 2018. In reality,
NPAs were already there but they were correctly reported.

Consequences of bad health of the banks

1. Banks become less willing to lend to new borrowers. RBI can temporarily prevent mechanism
called ‘Prompt Corrective Action’ (PCR) in case NPAs pile up significantly. In the following graph,
we can clearly see the effect of slow-down in credit growth in 2017-18.

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 (Source: https://www.ceicdata.com/datapage/charts/ipc_india_domestic-credit-growth/?ty
pe=line&period=max&lang=en)
Lending is an important and essential activity for ensuring economic growth. Any reluctance by banks
can put a spanner in the growth engine.
2. Banks occupy a very important role in the economy and lie at the core of the economy. Any
large scale failure of banks would lead to significant disruptions in the economy. At present, about
70% banking in India is controlled by PSU banks. Therefore, in case of any trouble in PSU banks, it
becomes imperative for the government to infuse more funds and avert crisis in the PSU banks. Over
last 11 years, the government had to infuse about 3.15 Lakh Crore rupees in PSU banks (reference:
https://www. bloombergquint.com/economy-finance/psu-bank-recapitalisation-government-
infused- rs-315-lakh-crore-in-public-sector-banks-in-last-10-years). Chunk of this was infused in last
2 years. For example, in October 2017, the government infused 2.11 Lakh Crore in PSU banks
(Reference: https://economictimes.indiatimes.com/industry/banking/ finance/modi-govt-
announces-mega-rs-2-lakh-11-thousand-crore-bank-recapitalisation- and-rs-7-lakh-crore-road-
plan/articleshow/61202075.cms?from=mdr) and announced infusion of additional 70,000 Crores in
the budget of 2019-2020.
These funds could have been better utilized by the government for building meaningful
infrastructure in the country or for any other productive usage. In a way, this was a waste of
taxpayers’ money.

2. Bankruptcy Code
We have to live with the fact that the chunk of the amount stuck in NPA will be lost and will not
come back. The best course of action is to salvage whatever possible from the borrower and remove
that loan from the balance sheet of the bank. This process is called ‘cleaning of balance sheet’ of the
bank.

The problem was that all these years the laws of the country were not stringent enough to force
bankruptcy on the defaulter companies and recover the amount owed. In 2016, Government of India
implemented Bankruptcy Code to address this important lacuna.

More than 10,000 cases have been referred under Bankruptcy Code. Initially the cases of large
borrowers were focussed on. So far resolution of 94 large cases with total outstanding of 1.7 Lakh
Crore rupees has been completed, out of which about 70,000 Crore rupees have been realised.
(Reference:
https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/ibc-resolves-cases-of- 94-
companies-with-liabilities-of-rs-1-7-lakh-crore/articleshow/69877266.cms?from=mdr)

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 3. Goods and Services Tax
GST is the single biggest tax reform undertaken in the post-independent India. All the indirect taxes
such as Service Tax, Excise Duty etc have been combined into one GST. Old system of having multiple
taxes was time-consuming and led to significant loss of efficiency. This is a very important step by
the government. However, there have been concerns about the implementation of the scheme.
During last 2.5 years, the implementation of filing the tax returns under GST have been progressively
simplified.

One important fallout of GST is that it has become very difficult to evade taxes under GST. As a result,
several transactions that were not included in the measure of economic activity will be progressively
reported.

All in all, GST is a significant step in the economic reforms in the country. It has a potential to boost
the growth in the coming years.

4. Other government policies

Government’s performance on other policies has been a mixed bag. First of all, the aim of
streamlining infrastructure in cities by building metros is definitely a big plus point. Government is
also focusing big time on widening the highway infrastructure in many places in the country. Some
important road infrastructure work that was pending for years such as Bogibil bridge in the North-
East that significantly reduces travel time between Assam and Arunachal Pradesh and Kollam bypass
road have been completed. These steps have the potential of ensuring long time growth.

However, on the other hand, certain steps taken by the government are inexplicable. No matter all
the tall claims made, demonetization exercise does not seem to have yielded the results. Moreover
during demonetization period, rules underwent multiple changes. Initially, going for cashless (or less
cash) economy found no mention in Prime Minister’s address to the nation on 8th November 2016.
However, later the cashless economy was hailed as one grand aim of the exercise. All this seems
inexplicable.
Government’s handling of the telecom sector is also inexplicable. When Jio was launched in 2016
and initially everything was offered for free and later at very cheap prices, there is a reason to
suspect that the step was intended at capturing the market share through predatory prices. The
government, Telecom Regulatory Authority of India and the Competition Commission should have
stepped in to avert that, which did not happen. As a result, all other players in the telecom industry
have had to face the brunt.
Government’s approach seems more on the long term. The budget of 2019-2020 contained a
number of provisions to boost Electric vehicles. However, the concerns of the automobile industry
that is currently facing slowdown have not been addressed. On the other hand, import duty on
certain spare parts used in automobiles has been hiked. Electric vehicles may be the future.
However, giving all the emphasis on electric vehicles, while neglecting the short-term concerns of
the automobile industry seems baffling.

B. International Factors
International situation is not as stable as it was in the 2003-2008 period. The US under Donald Trump
has become more protective. The US has imposed tariffs on imports from China. As a result, China
also retaliated, leading to a trade war between the US and China. There has been a lot of talk of
agreement being reached between the US and China, which has not yet culminated. There are
protectionist tendencies in other parts of the world, as can be seen from the Brexit referendum. This
new wave of protectionism can harm the flow of capital into India.

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 The situation in the Middle East, especially Syria continues to be volatile. Russia is solidly backing
Assad and helped him survive despite all odds. Further, Russia under Vladimir Putin is very aggressive
and is not willing to give in to the pressure of the West.
In the neighbourhood of India also things are not very rosy. China is trying to encircle India through
efforts such as OBOR. Any repeat of an incident such as Pulwama attack can potentially lead to
escalation between India and Pakistan, which can derail India’s growth engine.

Verdict
Considering the combination of domestic and international factors as well as government policies,
reaching the 5 trillion dollar mark by 2024 seems difficult. However, the government is taking some
right initiatives, which will help us to reach the mark, if not by 2024, may be by 2026 or 2027. In
order for that to materialize, the international situation should not deteriorate in terms of war or
conflicts. Moreover, the government should desist from taking inexplicable decisions.

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 2. Slowdown in Indian Economy- Reasons and Solutions

Meaning of Economic Growth:

The term economic growth is associated with economic progress and advancement. Economic
growth can be defined as an increase in the capacity of an economy to produce goods and
services within a specific period of time. An important characteristic of economic growth is that
it is never uniform or same in all sectors of an economy For example, in a particular year,
the telecommunication sector of a country has marked a significant contribution in economic
growth whereas the mining sector has not performed well as far as the economic growth
of the country- is concerned.

Type of Economic Growth:

1. Boom and Bust Business Cycles: If economic growth is high-speed and inflationary, then the
level of growth will become unsustainable. This could lead to a recession like the Great
Recession in 2008. However, this type of growth is typical of a business cycle.
2. Export-led: The Japanese and Chinese economy have experienced export-led growth thanks
to a high current account surplus. This is because they have significantly more exports than
imports.
3. Consumer-led: The US economy is dependent on consumer spending to stimulate economic
growth. As a result, they also have a higher current account deficit.
4. Commodity-led: These economies are dependent on their natural resources like oil or iron
ore. For example, Saudi Arabia has had a very prosperous economy thanks to its oil exports.
However, this can cause a problem when commodity prices fall, and there aren’t other
industries to balance things out.

In economics, economic growth refers to a long-term expansion in the productive potential of the
economy to satisfy the wants of individuals in the society. Sustained economic growth of a
country’ has a positive impact on the national income and level of employment, which further
results in higher living standards.
Apart from this, it plays a vital role in stimulating government finances by enhancing tax revenues.
This enables the government to earn extra income for the further development of an economy.
The economic growth of a country can be measured by comparing the level of Gross National
Product (GNP) of a year with the GNP of the previous year. In real sense, economic growth is
related to increase in per capita national output or net national product of a country that remain
constant or sustained for many years.
Economic growth can be achieved when the rate of increase in total output is greater than the
rate of increase in population of a country. For example, in 2005-2006, the rate of increase in
India’s GNP was 9.1%, while its population growth rate was 1.7%.
In such a case, per capita increase in GNP would be 7.4% (=9.1-1.7). On the other hand, if the rate
of increase in GNP and population is same then the actual growth of GNP would be zero, which
implies that there is a decrease in per capita income.
As a result, there would be no economic growth. Therefore, in such a case, standard of living of
people would not improve even when there is an increase in the total output of a country.
However, such a growth is better than the stagnation of an economy.
The economic growth of a country is possible if strengths and weaknesses of the economy are
properly analysed. Economic analysis provides an insight into the essentials of an economy. It is
a systematic process for determining the optimum use of scarce resources and selecting the best
alternative to achieve the economic goal. Moreover, economic analysis helps in assessing the
causes of different economic problems, such as inflation, depression, and economic instability. It
is performed by taking into consideration various economic variables, such as demand, supply,
prices, production cost, wages, labor, and capital.

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 The economic growth of a country may get hampered due to a number of factors, such as trade
deficit and alterations in expenditures by governmental bodies. Generally, the economic growth
of a country is adversely affected when there is a sharp rise in the prices of goods and services.

Following are some of the important factors that affect the economic growth of a
country:

(a) Human Resource/ Human Capital:

Refers to one of the most important determinants of economic growth of a country. The quality
and quantity of available human resource can directly affect the growth of an economy.
The quality of human resource is dependent on its skills, creative abilities, training, and education.
If the human resource of a country is well skilled and trained then the output would also be of high
quality.
On the other hand, a shortage of skilled labor hampers the growth of an economy, whereas surplus
of labor is of lesser significance to economic growth. Therefore, the human resources of a country
should be adequate in number with required skills and abilities, so that economic growth can be
achieved

(b) Natural Resources:

Affect the economic growth of a country to a large extent. Natural resources involve resources
that are produced by nature either on the land or beneath the land. The resources on land include
plants, water resources and landscape.
The resources beneath the land or underground resources include oil, natural gas, metals, non-
metals, and minerals. The natural resources of a country depend on the climatic and environmental
conditions. Countries having plenty of natural resources enjoy good growth than countries with
small amount of natural resources.
The efficient utilization or exploitation of natural resources depends on the skills and abilities of
human resource, technology used and availability of funds. A country having skilled and educated
workforce with rich natural resources takes the economy on the growth path.
The best examples of such economies are developed countries, such as United States, United
Kingdom, Germany, and France. However, there are countries that have few natural resources, but
high per capita income, such as Saudi Arabia, therefore, their economic growth is very high.
Similarly, Japan has a small geographical area and few natural resources, but achieves high growth
rate due to its efficient human resource and advanced technology.

(c) Capital Formation/ Infrastructure:

Involves land, building, machinery, power, transportation, and medium of communication.
Producing and acquiring all these manmade products is termed as capital formation. Capital
formation increases the availability of capital per worker, which further increases capital/ labor
ratio. Consequently, the productivity of labor increases, which ultimately results in the increase in
output and growth of the economy.

(d) Technological Development:

Refers to one of the important factors that affect the growth of an economy. Technology involves
application of scientific methods and production techniques. In other words, technology can be
defined as nature and type of technical instruments used by a certain amount of labor.
Technological development helps in increasing productivity with the limited amount of resources.
Countries that have worked in the field of technological development grow rapidly as compared to
countries that have less focus on technological development. The selection of right technology also
plays a role for the growth of an economy. On the contrary, an inappropriate technology- results in
high cost of production.

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 (e) Social and Political Factors:
Play a crucial role in economic growth of a country. Social factors involve customs, traditions, values
and beliefs, which contribute to the growth of an economy to a considerable extent. For example, a
society with conventional beliefs and superstitions resists the adoption of modern ways of living. In
such a case, achieving becomes difficult. Apart from this, political factors, such as participation of
government in formulating and implementing various policies, have a major part in economic
growth.

Factors limiting Economic Growth:

1. Poor health and low levels of education
People who don’t have access to healthcare or education have lower levels of productivity. This lack
of access means the labor force is not as productive as it could be. Therefore, the economy does not
reach the productivity it could otherwise.
2. Lack of necessary infrastructure
Developing nations often suffer from inadequate infrastructures such as roads, schools, and
hospitals. This lack of infrastructure makes transportation more expensive and slows the overall
efficiency of the country.
3. Flight of Capital
If the country is not delivering the returns expected from investors, then investors will pull out their
money. Money often flows out of the country to seek higher rates of returns.
4. Political Instability
Similarly, political instability in the government scares investors and hinders investment. For
example, historically, Zimbabwe had been plagued with political uncertainty and laws favoring
indigenous ownership. This instability has scared off many investors who prefer smaller but surer
returns elsewhere.
5. Institutional Framework
Often local laws don’t adequately protect rights. Lack of an institutional framework can severely
impact progress and investment.
6. The World Trade Organization
Many economists claim that the World Trade Organization (WTO) and other trading systems are
biased against developing nations. Many developed nations adopt protectionist strategies which
don’t help liberalize trade.

Current Scenario of Indian Economy

The crisis brewing within the Indian economy has gained unanimous acceptance by now. Even the
latest annual report of the RBI for the fiscal year 2018-19 (or FY19) confirmed that the Indian
economy has indeed hit a rough patch. The GDP growth rate of the economy has slipped to 5 per
cent in the first quarter of FY20, the lowest in over six years. This is an indication of tougher times
ahead. Be it the recent collapse of the automobile sector or the rising number of non-performing
assets (NPAs), sluggish consumer demand or failing manufacturing sector; all have a hand in this
deceleration of growth rate.
The spurt in instances of job losses from automobile manufacturers to biscuit makers has led to the
general acceptance of the downturn. This is the third instance of an economic slowdown for India in
the past decade after the ones that began in June 2008 and March 2011. The technical term for the
same is growth recession. A recession is defined in economics as three consecutive quarters of
contraction in GDP. But since India is a large developing economy, contraction is a rarity. The last
instance of negative growth for India was in 1979. A growth recession is more commonplace where
the economy continues to grow but at a slower pace than usual for a sustained period, what India
has been facing nowadays.

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 Reasons behind India’s economy slowdown:

1. Collapse in Private Consumption and Investment Freeze Leading to Double Whammy:

The growth of the Indian economy had been predominated by consumption inclusive of both Private
Final Consumption Expenditure (PFCE) as well as the Government Final Consumption Expenditure
(GFCE), given that it forms around three-fifths of the Indian economy. And any slowdown here is
bound to affect the overall economy. Except for perhaps retail loans given by banks, there is a
contraction in all other parameters which measure consumption in different ways. Over the last five
years, the total consumption expenditure by Indian households had accelerated with an average
growth rate of 7.8 per cent compared to an average of 6.1 per cent in 2011-14. But the recent sharp
fall in PFCE in the June quarter to 3.1 per cent compared to 7.2 per cent in the March quarter has
significantly contributed to the recent slowdown.
That being said, any fall in consumption expenditure, as and when it would happen, would escalate
the crisis even more. If consumption spending falls, then output and employment levels also fall
since consumption expenditure directly impacts the other two. As a consequence, the economy
would stagnate, and prices deflate. Lower prices, if unable to recover the costs, would halt the
operations of any firm and would initiate the layoff process. This, in turn, reduces earnings further.
Hence this vicious cycle keeps on repeating itself until the economy slips into a deeper state of shock.
In addition, another major component of India's GDP is investment, induced by both - private and
government sectors. It has been a key driver of growth since the liberalisation of 1991. Though gross
fixed capital formation (GFCF), the main constituent of investment in the economy, increased, yet
its contribution to growth fell by 6.2 percentage points in 2014-19 than in 2011-14. The slackening
of investment lowers the level of infrastructure development, causes hesitation in creating small
businesses, stop entrepreneurs from investing in research and development, and thus stagnates
technological development. Capital Investments are long-term gains that generate profitability for
many years by improving operational efficiency and boosting innovation. It goes without saying that
for holistic growth of the economy and to gain competitive edge over others, the economy must
innovate.

Performances of different sectors:

Domestic car sales: During April to June 2019, car sales fell by 23.3% in comparison to the same
period in 2018. This is the biggest contraction in quarterly sales since 2004 (that’s how far back the
quarterly data in the Centre for Monitoring Indian Economy database goes). A slowdown in car sales
negatively impacts everyone from tyre manufacturers to steel manufacturers to steering
manufacturers etc., when it comes to the backward linkages that car manufacturers have. As far as
forward linkages are concerned, many auto dealerships are shutting down or shrinking. At the same
time, the vehicle loans growth has slowed down to 5.1%, the slowest it has been in five years.

Two-wheeler sales: These have not been as badly hit as car sales. Between April and June 2019, two-
wheeler sales contracted by 11.7%. This is the biggest fall since October to December 2008, when
two-wheeler sales had contracted by 14.8%, in the aftermath of the start of the financial crisis. In
fact, even mopeds are not selling, with their sales down 19.9% between April and June 2019 (In 2018-
2019, a total of 880,000 mopeds were sold, suggesting there is still good demand for them).

Tractor sales: A good indicator of rural demand, tractor sales during April to June 2019, fell by 14.1%,
the highest fall in nearly four years.

Domestic commercial vehicle sales: This is seen as an economic indicator of industrial activity. Faster
sales indicate a robust activity on the infrastructure and industrial front. Commercial vehicles are
used to move around finished as well as semi-finished goods. Sales of these vehicles during April to

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 June 2019 fell by 9.5%, the highest contraction in five years, telling us that all is not well on the
investment front. Between April to June 2018, sales had gone up by 51.6%.

Housing sales: As per Liases Foras, a real estate research company, India’s top 30 cities had 1.28
million unsold housing units as of March 2019, a jump of 7% from March 2018, when the number
was at 1.2 million. This means that builders are building new houses at a faster pace than people are
buying them. The real estate sector has forward and backward linkages with 250 ancillary industries.
So, when the real estate sector does well, many other sectors, right from steel and cement to
furnishings, paints, etc., do well too. This is something which isn’t happening currently. The fact that
real estate prices haven’t gone up in years makes people feel less wealthy and as a result spend less.

Bank retail loans: This data point goes against the trend. During April to June 2019, the retail loans
of banks grew by 16.6% in comparison to the same period last year. During the same period last
year, they had grown by 17.9%. There has been a marginal fall in growth. Housing loans form more
than half of the retail loans—they grew by 18.9% during the quarter against 15.8% last year.
How does one explain the fact that housing loans are growing and so is the number of unsold homes?
A possible explanation for the fact is that people are now buying homes from investors who had
bought many homes between 2003 and 2012, instead of buying directly from a builder. To that
extent these are not new homes and hence, cannot create the kind of economic activity that the
building of a new home can.
Other than home loans, credit card outstanding grew by 27.6% between April and June 2019, against
31.3% in April to June 2018. Again, a marginal fall at best. This also explains, why every time you tell
someone there is a slowdown, they reply, but the malls and restaurants are packed. Credit cards are
used by a certain section of the population and at least, when it comes to them, they haven’t slowed
down on spending on small ticket items.

FMCG companies: The volume growth or the number packs sold, of fast-moving consumer goods
(FMCG) companies has slowed down over the last one year. If we look at Hindustan Unilever Ltd, the
volume growth between April and June 2019 was at 5%. It was 12% during the same period last year.
There are other examples as well. Dabur India posted a volume growth of 6% during April and June
2019, against 21% last year. Britannia was down to 6% against 13% last year. Indeed, this is worrying,
given that people seem to be going slow on making everyday purchases.

Non-oil non-gold non-silver imports: This is a good indicator of consumer demand as it indicates
when people buy more imported goods. During April to June 2019, these imports fell by 5.3%, the
biggest contraction in three years. They had risen by 6.3% during the same period last year.
Investment insight: Fresh investments are very important for the GDP of any economy to keep
growing, for the simple reason that they create new jobs, which in turn leads to higher incomes and
higher spending, creating economic growth. Unfortunately, things are not looking good on the
investment front. Consider:

Bank lending to industry: This crucial indicator had remained almost flat for a couple of years, and
it has improved in the recent past. For April to June 2019, it went up by 6.5% against 0.9% between
April to June 2018. This was largely on account of lending to large industries, which grew by 7.6%,
against 0.8% last year. When it comes to lending to micro and small industries, the growth was
almost flat at 0.6% against 0.7% last year. While lending to big industry is important, it is the micro
and small industries which tend to create the bulk of any jobs in any economy, as they grow bigger.

Revenue-earning rail freight: The bulk of the freight operations of Indian Railways is concentrated
around moving certain commodities like coal, pig iron, cement, petroleum, fertilizers, iron ore etc. If
the Railways is moving more of these commodities around the length and breadth of this country,

13
 it’s a good indicator of investment and industrial activity picking up. How do things look on this front?
This indicator grew by 2.7% between April and June 2019, the slowest in nearly two and a half years.
It had grown by 6.4% between April and June 2018.

Final consumption of finished steel: Creation of any new physical infrastructure requires steel.
Hence, a faster increase in steel consumption than in the past shows increased investment activity
than in the past. The consumption of finished steel grew by 6.6% between April and June 2019, in
comparison to the same period during the last year, when it had grown by 8.8%. This was the slowest
in two years.
New investment projects announced: The value of new projects announced during April to June 2019
fell by 79.5% year on year. This is the highest fall since September 2004. In absolute terms, the value
of new investment projects announced during April to June 2019 stood at ₹71,337 crore, the lowest
since September 2004. This is a great indicator of the fact that businesses really do not have faith in
the economic future of India, irrespective of what they say in the public domain.
Investment projects completed: The investment projects completed fell by 48% in comparison to the
last year. This is the highest fall since September 2004. In absolute terms, the value of the projects
completed during the quarter stood at ₹69,494 crore, the lowest in nearly five years.

Expenditure and net exports: Government expenditure tends to form around 10-11% of the Indian
economy (in current terms, without adjusting for inflation). In the last two fiscal years, the growth
in government expenditure was at 19.1% and 13.2%, the highest since the financial crisis years of
2008-09 and 2009-10 and was instrumental in driving economic growth to some extent. How do
things look in 2019-20? To drive economic growth, the government needs to spend more and for
that the tax growth is important. During April to June 2019, the gross tax revenue of the central
government went up by just 1.4% to 4 lakh crore. During the same period last year, the gross tax
revenue had jumped by 22.1%. What this tells us very clearly is that the government is clearly feeling
the heat of the economic slowdown. In this scenario, whether it will have the ability to increase its
spending like it did over the last two years, is a question well worth asking.

Finally, net exports: This figure for April to June 2019 stood at -$46 billion. This was almost similar
to the net exports for April to June 2018 at -$46.6 billion. This is primarily because both exports and
imports during the period were at almost similar levels as last year. Given this, there hasn’t been any
increased economic activity on the exports front either.

2. The Effect of Demonetization:

Indeed, Demonetization can be said to have contributed too much of the slowdown as the Double
Whammy of demand collapsing, and supply bottlenecks mean that there is a broad slowdown across
the entire value chain of the demand and supply dynamics.
Thus, what we have is a situation wherein cash has dried up leading to a slowdown in the economy,
consumers suddenly prefer to hoard cash or keep it in the bank instead of spending on consumer
goods.
Moreover, demand has also collapsed in the rural areas as the entire rural economy runs on cash
and Demonetization led to the loss of jobs as well as incomes thereby squeezing the rural consumer
who now prefers to wait and watch as well as postpone consumption except that of essential goods
and services.
Next, Demonetization has also led to small and medium businesses or the so-called SMEs to withhold
investment since they too operate on a cash basis and the cash crunch has left them high and dry.
One must also take note of the fact that it is not only private consumption and small enterprises
causing the slowdown.
Indeed, the Big Corporates are as much to blame since they are drowning in debt that they
accumulated during the Boom Years of the first decade of the 21st century.

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 It is also a fact that this has contributed to a freeze on investment by industrial houses and corporates
who are now paying down the debt or postponing debt repayments to ensure that their present cash
flow is sufficient to remain in business.

3. Too Much Debt:

Added to this is the fact that most Public Sector Banks are saddled with high NPAs or Non-Performing
Assets that have resulted in them tightening lending and instead,
seeking deposits and otherwise repairing their balance sheets by making provisions for Bad Loans.
Indeed, absent recapitalization of such banks by the government, one might very well see a vicious
cycle wherein bad debts and demand collapse lead to no lending and no fresh investment in addition
to any consumption.
The cycle has to be broken somewhere, and this is where the Government and the RBI or the Reserve
Bank of India have to take concerted action.

4. Rollout of GST:
Fourth, the fact that the rollout of the GST or the Goods and Services Tax on a nationwide basis has
led to the slowdown cannot be denied.
Indeed, GST has hampered the small businesses more than Demonetization by forcing them to
withhold inventory until they migrate to the GSTN or the GST Network and become compliant with
the numerous rules and regulations that are part of this tax.
It can be said that the implementation of GST is also flawed thereby exacerbating some of the factors
that have contributed to the slowdown.

5. Global Slowdown:
It is not these factors alone, and the most important factor is that there is also a global economic
slowdown that is happening and given the fact that India is a net commodity exporter, there has
been a slump in the volumes of exports.
Apart from that, the global slowdown has also been accompanied by a retreat of globalization which
has resulted in FDI or Foreign Direct Investment being only in the areas of speculative finance and
distressed assets purchases rather than into in- vestments that help the Real Economy.
Thus, it can be said that ongoing global headwinds also have contributed to the slowdown in the
Indian Economy.

6. Retreat of Globalization:
Hence, what the slowdown means for professionals and fresh graduates is that they would be finding
it harder to land jobs as well as see their salaries rise year on year basis. In addition, the policies of
the Trump Administration have contributed to a decline in the number of students and professionals
going to the United States and added to this, Brexit uncertainties have compounded the situation.
It looks as though that the combined effect of all these factors means that the Indian Economy is
likely to remain in the doldrums for some time to come.

7. Ride out the Storm:

Lastly, the slowdown is also part of a longer-term structural shift wherein the Economy is shifting
gears from the high investment era to a low investment era as well as a transition from being cash-
driven economy to a digitally enabled economy.
Indeed, this can be seen most in the Real Estate Sector that has come to a grind in recent months
and hence, has also contributed to the slowdown. All in all, all the factors have caused a Perfect
Storm for the Indian Economy, and there has to be a time lag before one can reasonably and
realistically expect a turnaround.
To conclude, the best option now for all stakeholders would be to Ride out the Storm.

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 Almost all these economic indicators suggest that we are well into an economic slowdown, and it
can possibly get worse from here. The irony is that this slowdown seems to be obvious to everyone
except the government. The question this leaves us with is, how do you solve a problem without
acknowledging it first?

Solutions for the current slowdown:

Rising oil prices could hold up fund-based measures:
Policymakers should approach the various crises from a different angle.
The economy has not faced in a decade — from around the 2008 global financial crisis and its
aftermath — the kind of headwinds it is confronting now. The first symptom was visible over five
years ago, when exports began to stagnate at, a time when the global economy was pulling its
weight.
More recently has come the GDP growth slowdown, just when the country’s leaders were n a gung-
ho about India becoming a $5-trillion economy. The fact that officialdom had no foreboding of a
slowdown has now been admitted by the central bank governor. So, efforts will first have to be made
to find what went wrong before devising measures to set things right.
This exercise will be further complicated by the fact that the GDP figures themselves may be
inaccurate. You need one set of policies to boost the growth rate from 5 per cent and a different set
of policies and emphasis to address a near-crisis situation of 2-3 per cent growth.
On top of the twin slowdowns, the serious prospects of a sharp rise in global energy prices emerged
after the attack on Saudi Arabia’s oil facilities. If things do not return to normal soon, domestic
energy prices will go up significantly (they have just been upped already by 14-15 paise per litre).

Ease of doing business:

So, what kind of a policy regime will be needed to address these headwinds? The best thing
policymakers can do, and it is not a fund-based measure, is to look all around to improve the ease of
doing business, keeping in mind the way progress on this front was celebrated not so long ago.
A small beginning has been made by the Finance Minister assuring urgent efforts to reduce the
turnaround time at Indian ports and airports, so that they conform to international best practices.
Otherwise, Indian exporters cannot be efficient participants in global value chains. From looking
outwards, if we turn around a full 180 degrees, we will find that the Indian farmer can hugely benefit
if instead of having to rely on government-supported prices for his produce, he is able to sell it to
whomever he chooses and thus get a better price from the market itself. The Centre and States have
to put their heads together to remove all impediments in the way of the country becoming an
integrated market for agricultural produce, which may then be traded across the border easily. This
solution may even save the government some price support spending.
When the corporate sector sees a business opportunity for itself by, for example, looking at the
currently prevailing farm-to-fork mark-up for food, it will be ready to invest in the supply chain by
laying out the infrastructure (cold chain, godowns, etc) and owning it. Again, there is little need for
government spending and it can be a life changer for the farmer with a stagnating income.
Better incomes for farmers will boost demand for consumer goods and remove the cloud currently
hanging over FMCG companies, which are seeing a fall in demand for even the cheapest biscuits.
Just a small rise in demand from the 50 percent of Indians living off agriculture (better price
realisation by farmers will lead to better farm wages) will do much to address the slack in consumer
demand.

Policy tweaks:
In boosting consumer demand, the government should go all out to make the rural employment
guarantee scheme better. To take one example, cashew-nut processing farms are currently facing
challenges from two quarters — price competition from imported nuts mechanically processed and
higher wages to be on par with the employment guarantee scheme. If the scheme works better, it

16
 will produce enormous welfare gains (improve the quality of spending) at only marginally higher
government expenditure, in relation to total expenditure.
Another small-ticket item which can have a large impact on the emerging water famine in India is
promoting small irrigation works like excavation of local ponds and construction of small bandhs,
which will harvest rain water and recharge groundwater. Enhanced micro watershed management
will boost the rain-fed farm sector, home to the poorest who depend on the yearly monsoon without
any backup for a drought year.
If we again turn our heads and look at the financial sector comprising banks and non- banking finance
companies (NBFCs), addressing their liquidity needs and helping individual NBFCs avoid default will
boost business across sectors which were hurt by credit drying up post the IL&FS collapse.
Recapitalisation of banks need not fully impact the fiscal arithmetic, and more liquidity to NBFCs can
come from an easier market and some easing of rules by the monetary authorities.
The entire discussion has been focussed on ensuring that the fiscal burden does not become
onerous. Until the oil disruption, some loosening of fiscal purse strings could have been easily
considered as inflation had been low. But if oil global prices keep ruling high leading domestic prices
to be raised significantly, then there will be impact on inflation, and the space for fiscal action will
be reduced.
Growth has momentum and slowdown has inertia. The Indian GDP growth has fallen to 5 per cent
in the April-June quarter, from 8 per cent. This slowdown can only be reversed if both short-term
and long-term reforms are undertaken.
The fall in GDP growth is sudden and dramatic. Till now, while only businesses were talking about
the slowdown, it is now a reality for the country. People worry about how bad things are and is this
bottom or the beginning of a slowdown.
There is concern about the speed and nature of the government and industry's response, and will
these actions turnaround things immediately, or not.
These concerns and perceptions need answers as they affect consumer confidence and
consumption. Acknowledging the problem is not a sign of weakness or acceptance of any blame. It's
a fact that leadership in the corporate sector has failed to recognize the major transition taking place
in their sector that has affected consumer demand.
Take the auto sector, for example. It did not prepare for shifts in consumer behaviour and market
needs. They contribute almost 6 percent to the GDP and offer employment to 37 million people and
are clamouring for stimulus on behalf of their employees.
The stimulus has to be for both employees and corporates. The sector is asking stimulus to protect
jobs, but it does not mean it will happen as they move to electric vehicles (EV).
EVs have a fraction of moving parts as compared to an internal combustion engine. The engine and
drive line are two crucial components of the internal combustion engine that contribute 50 per cent
of the auto component industries' revenues. The move to EV will disrupt the supply chain of
components at one end and maintenance and repair on the other. This needs specific incentives to
upskill employees to maintain, repair or make electric vehicles.
Upskilling of mid-level workers is the core component of all sectoral stimulus packages. The
disruption in industries is not cyclical or because of economic slowdown. There is a structural shift
in many industries because of technology or shift in consumer preferences. Automation is affecting
jobs in both manufacturing and services, which displacement is also affecting the consumption cycle.
The stimulus for auto companies has to promote investment. India needs an investment of $40
billion in batteries for EVs. Auto companies can get incentives for making this investment. They can
be incentives to shift existing production lines to electric cars.
These are, however, palliative measures and will not turnaround the economy. The bigger issue is
revival of consumption demand.
The government has had discussions with several sections of business and economists over the last
few weeks. It has plucked out all the prickly issues which created a negative perception and eroded

17
 trust. But if a tyre is losing air pressure removing nails from the road ahead will not stop the air from
leaking.
Action has to inspire confidence among consumers to spend and for industry to invest. Removing
taxation on foreign portfolio investor and other prickly issues is a hygiene factor. It shows the
government is correcting mis-steps faster. Addressing it within a week, which the Finance Minister
Nirmala Sitharaman did shows the speed of response.
This is important as it will bring back the confidence in the industry, investors and market. But the
confidence to spend or even pay EMIs has to be restored.
It is equally important to set the right expectations for a return to normalcy or a turnaround in the
growth. The massive mandate this government received shows the expectation of the common man.
Not setting the expectation right or distorting the timelines will not serve to inspire consumer
confidence. People are pragmatic and patient if they understand the time it will take to come out of
the current situation. They know there are no shortcuts out of slowdowns.
The current initiatives are either short-term measures or long-term reforms. The consolidation of
Public Sector Banks (PSBs) announced on August 30, falls into the latter category. It will not
turnaround the banking sector, ease the credit flow or even improve the transmission of interest
cuts -- the three most important problems contributing to the slowdown. The consolidation will take
time.
The consolidation of the PSBs is a structural reform much needed, long overdue and may reduce the
recapitalisation requirements. The governance reforms will improve the process of supervision,
hiring and compensation. It will not change the credit evaluation, disbursement and monitoring of
loans, which is the core problem in PSBs.
The culture of poor evaluation of borrowers and lack of risk mitigation has contributed to the non-
performing asset (NPA) mess in the PSBs. This culture cannot vanish overnight as it's entrenched in
processes and behaviour.
Banking leadership can use the disruption to overhaul the culture and build a new system and
processes. If they get sucked into the merger and take their eyes off credit growth, customer
retention, their merged entity will be weaker than the sum of the parts.
Both merger and governance reforms were important but are obviously not sufficient from the
slowdown point of view.
To kick-start the consumption cycle money has to go into the common man's pocket. This can
happen by reducing income tax for the lowest slab, as recommended by the Direct Tax Code report.
It can be done by making GST filing quarterly for MSMEs with less than Rs 10 crore turnover to ensure
they survive the slowdown. The GST Council can look at reducing rate slabs and reduce the overall
burden on corporates.

Immediate steps:
1. Give auto sector incentives to invest and shift to electric vehicles.
2. Incentives to auto sector employees to upskill on electric vehicles.
3. Change GST collection to quarterly for companies below Rs 1 crore.
4. Reduce the GST slab rates.
5. Adopt the Direct Tax Code, cut income tax for the bottom slab.
6. Improve credit flow to both consumer and industry.
7. Reduce real interest rates by 135 basis points as cost of capital has to come down.
8. Change the credit culture in public sector banks.
9. Stimulus should drive investment, upskilling for displaced employees.
10. Factor market reforms, including bringing the cost of land down.

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 3. India-A Dangerous Country For Women
A macabre rape-murder dents Hyderabad’s image as a safe city, once again highlighting the
continuing national epidemic of sexual assault and the chronic failure of our criminal justice system!
In the later weeks after this case, we observed a familiar pattern unfold- public anger, media frenzy
and promises of stricter laws by legislators. There was a strong sense of déjà vu in the air,
accompanied with a sinking feeling that the needle hadn’t moved forward in all these years.
Supposedly, women were more likely to report abuse and sexual attacks after the 2012 Delhi gang-
rape, but unfortunately, there has been little or no impact on arrests and conviction rates, according
to a study published in February 2019.
The national outrage over the Hyderabad incident echoes the public response after the Nirbhaya
episode of 2012, suggesting widespread concern about such crimes against women, particularly in
the cities. The National Crime Records Bureau (NCRB), which released its 2017 data this October,
says a total of 3,59,849 cases of crimes against women were reported, a 6 per cent rise over the
previous year. Of these, assault on women with 'intent to outrage her modesty' comprised 21.7
percent and rape comprised 7 percent. The criminal justice delivery system is still not equipped to
cope with this. The NCRB data indicates that in 86 per cent rape cases, the police file charge-sheets
but trial courts are able to dispose of only 13 percent of the pending cases, with the conviction rate
as low as 32 per cent. In child rape cases, the conviction rate is 34.2 per cent and pendency 82.1 per
cent. Over two years to 2015, the annual average reporting of rape cases in Delhi was 23% higher
compared to the annual average over a decade to 2011. The average annual reporting of molestation
and sexual harassment during 2013-2015 was 40% higher compared to the annual average reporting
before the Nirbhaya case.

Recently, a survey conducted by the Thomson Reuters Foundation, has ranked India as the world's
most dangerous country for women, ahead of Afghanistan, Syria and Saudi Arabia. According to the
report, India is the most dangerous country for women in terms of human trafficking, including sex
slavery and domestic servitude and for customary practices such as forced marriage, stoning and
female infanticide. Debate over the state of women in India has intensified after the survey results
were presented by Thomson Reuters Foundation. The methodology used was a survey of 548
respondents on six different indices -healthcare, discrimination, culture traditions, sexual and non-
sexual violence, and human trafficking. However, the question arises that was it right for the
Foundation to rank the nations just on the basis of perceptions of experts without even disclosing
their names and without using any government data?
While the government has criticized the survey’s ranking, many have questioned how countries like
Saudi Arabia and Afghanistan, which grant far fewer rights to women, managed to perform better.
The country's National Commission for Women rejected it outright, saying that countries where
women could not speak out, had done better. They have also pointed out that rape, harassment and
other forms of violence against women have risen in India because more cases are being reported,
driven by public outrage. Additionally, an interesting data says that Thomson Reuters Foundation
declares female genital mutilation (FGM) as one the parameters in cultural traditions where India
has been ranked the worst. But, according to a report of WHO, India is not even mentioned in the
list of 29 countries where female genital mutilation is prevalent. This data itself reflects the validity
of the new survey.
However, many women welcomed this survey as well. Roop Rekha Verma, a college professor and
social activist said, “A better methodology, rooted in intensive data and empirical work, could have
been used of course, but if more than 500 gender specialists view it like this, it has to be taken
seriously. These aren't perceptions from people on the streets
- these are well-informed experts”. Though the government has been quick to question the Reuters
survey, but India has no reason to gloat - a look at the official crime statistics shows a woman is
raped every 13 minutes; six women are gang-raped every day; a bride is murdered for dowry every

19
 69 minutes; and 19 women are attacked with acid every month. Adding to that, there are
thousands of reported cases of sexual harassment, stalking, voyeurism and domestic violence.
Actually, this ranking does matter - because it shows that India has lost the battle of perceptions.
And sometimes, perceptions do matter. So, instead of being a scapegoat, India should do some soul-
searching to see how things can be improved from the grass root level for the women. India has to
convince the world that it's not a hostile territory for the female gender and gets off from lists like
these.
Apart from all these surveys and rankings, there is one question that is dwelling in people’s mind- Is
India safe for women? The most shocking thing is that most of the Indian women who came across
the news that India has been ranked the most dangerous country for women by a Thomson Reuters
survey, was not filled with shock. The reality is women in India grow up, very aware of their position
– inside the home and outside it. Even if a few of them are lucky enough to be given some freedom,
they are immediately told that they are privileged – something not many Indian women or girls are
given. Every day, horrendous news of rapes, assaults and violence against women make them
furious, anguished and enraged. It makes them question humanity, the law, government, security
forces, and the whole existence of mankind. Why do the 49% of the country’s population, who are
identified as women, have to fight for a basic right like the right to safety? The successful veterinarian
from Hyderabad, who was mercilessly gang-raped and murdered, or the minor girl in Unnao, Uttar
Pradesh did not deserve such a horrific fate. However, these are the cases, which have been reported
and covered by the media. We cannot even imagine the life stories of endless such girls whose
tragedies remain untold.
But, it’s unbelievable how the government have turned a blind eye towards the pain and suffering
of the women of the country. Forget taking action, some still remain mum about the ongoing
situation of the country, believing that the outcry would eventually fade with time. Anything and
everything that is critical about the country is being dealt with this exact attitude—denial and name
calling. And if there is something more outrageous than the above denial about data, it is about
‘personal experiences’. So, since no one has tried to molest a particular person, India should be
declared as the safest nation in the world. Ironically, it is like I just had food, so world hunger is cured.
While every party is keen to include women in their agendas, they are not going beneath the surface.
There are so many unresolved issues within the sphere of gender in India. For any government,
women’s rights have always been a game; after all, women constitute an important vote- bank. The
problems of women exist not only in the rural areas of the country but also in the urban setup. Infact,
the urban setup is a monster of a different sort. For every Kathua and Unnao case, there’s a Nirbhaya
to go with it.
While we do see efforts being made to make society a safer place for women, we don’t see any
results. The reason is that this toxic culture is so deep-rooted that mere encounters or death
sentences cannot eradicate the violence against women. We have grown up hearing tales of women
as powerful goddesses. But, what we are witnessing is a totally different tale. Our personal
experiences have built in us a fear of the Indian society. It’s so brutal that women often become
oppressors of other women. The current situation in India portrays that the number of crimes and
the extent of cruelty against women is on a constant rise. Let’s not forget that if the valor, courage,
and esteem of women like Sushma Swaraj, Swara Bhaskar, Rana Aayub, Sonia Gandhi etc. can be
reduced to grime, what safety can the average Indian women expect? So, irrespective of the
rankings, right now, women’s safety in India and also across the world is like a cure for Cancer—
WHICH DOESN’T EXIST!
As it wasn’t until every radio channel, advertisement, banner and speech talked about the Swachh
Bharat Abhiyan that we gained consciousness of the importance of keeping our country clean. What
if that same voice declares a national emergency and tells the people to clean their minds now? Isn’t
it time that after Swachh Bharat, the nation should go on its revolutionary path towards a Surakshit
Bharat (Safe India)? So, instead of relying on the government, let the change begin from within us!!

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4. Agricultural Crisis in India - The Root Cause and Consequences
A study by a premier social sciences research institute reinforces what policymakers and media have
been talking about the past few years - that India is going through a deep agrarian crisis. The Centre
for Study of Developing Societies (CSDS), based in Delhi, found that given an option majority of
farmers in the country would prefer to take up some other work. Poor income, bleak future and stress
are the main reasons why they want to give up farming. Around 18 per cent of respondents surveyed
said it was because of family pressure that they are continuing with farming. Why they want to give
up farming. The survey of 5,000 farm households across 18 states says that 76 per cent farmers would
prefer to do some work other than farming. Sixty-one per cent of these farmers would prefer to be
employed in cities because of better education, health and employment avenues there. A high
percentage of farmers complained of repeated losses; 70 percent of respondents said their crops were
destroyed because of unseasonal rains, drought, floods and pest attack. Is agriculture no longer a
viable occupation? Let us look at some facts:
• Extreme distress in Rural India in the farm sector has resulted in an average 10,000 to 12,000
farmer suicides every year. In the recent months, the rural distress has also led to widespread protests
in certain states. Farmers across India also mobilized in New Delhi to protest against the policies (or
the lack of) of the government.
• A large number of farmers are living below the poverty line and incidents of suicides are
frequent.
• In May 2017, the Centre informed the Supreme Court that despite a multi-pronged approach
to improve income and social security of farmers, over 12,000 suicides have been reported in
agricultural sector since 2013.
• 20 lakh hectares of cultivable land is understood to have been acquired for non- agricultural
purposes. Further, 42% of farmers are ready to quit agriculture as occupation, even as almost 70 crore
of our population is dependent on agriculture. Agriculture sector absorbs too many people. It is
oversaturated with workers and farmers who are depending on ever smaller returns from it.

What is Agrarian Crisis?

Starting in the 1990s, agriculture in India particularly in rural India has declined at a devastating rate.
This has had a calamitous impact on the livelihoods associated with agriculture. A symptom of this
agrarian distress, unprecedented in post-Independent India, is a high rate of suicides amongst farmers.
The crisis is characterized by low institutionalized credit to small farmers. Between 1995 and 2014 -:
296,438 farmers have committed suicide in India. On Starting in the 1990s, agriculture in India -
particularly in rural India - has declined at a devastating rate. This has had a calamitous impact on the
livelihoods associated with agriculture. According to P. Sainath, a leading Indian journalist who reports
on the rural India and its unprecedented economic crisis, for the first time as per 2011 Census of India
urban India added more to its population than rural India. This implies that millions of people earlier
engaged in agriculture are roaming around the India in "footloose migration" search for daily wages.
This points to the destruction of livelihoods in the predominantly agrarian rural India. Another
evidence for a major agrarian crisis in India is the very high rate in which people are leaving
occupations associated with farming.

Why has the situation become so bad?

1. Poor Growth and falling farm incomes - The verge annual growth rate of agriculture has
remained very low at 1.5% or even below that. This is abysmally low as compared to the growth rate
of GDP. So, farm incomes have grown slower than the rate of inflation. This has resulted in an overall
fall in standard of living for small as well as marginal farmers and they have been pushed below the
poverty line.
2. Climate change impacting the monsoon - In the new millennium, Indian economy has been
experiencing tremendous fluctuations in monsoon. The frequency of drought years and excess rainfall

21
years has increased. For example, 2002 was the year of drought. 2003 had normal rainfall. 2005 and
2006 were years of excess rainfall. 2009 was characterized by drought followed by 2010, which had
excess rainfall. 2014 and 2015 were the years of drought and 2016 and 2017 were the years of excess
rainfall. Also, there are seasonal variations. Areas such as Assam and coastal areas receive excess
rainfall whereas the plains receive less rainfall.
3. Flawed targets - The governments have insisted on 4% s the growth target for agriculture
sector to ensure food security, inclusive growth and also to reduce the income inequality that exists
between rural and urban areas. However, with the growth in Indi's population and rapid urbanization,
this target is highly unrealistic and underestimated.
4. No policy innovation - Governments after governments have been carrying out old policies to
revive agriculture without taking into consideration the challenges posed by changing environmental,
strategic and technological considerations. Rather than ensuring the steady growth in farm income,
governments have been resorting to populist measures such as loan waivers.
5. Farm Size - Over the years, the per capita agricultural land holding is on a decline in India. In
2010-11, the farm size per capita was 1.6 hectares as compared to 2.26 hectares in 1970-71. Number
of farm holdings has gone up but average size has drastically reduced. This has resulted in decline in
per farm output as like any other industry, agriculture also gets benefitted by scale. In case of small
farmers, their output is reduced but number of dependents on farm has gone up, resulting in
reduction in marketable surplus (output that can be sold in the market) and they have become
subsistence agriculturists (producing sufficient only for their own survival).
6. Lack of institutionalized credit - One of the major reasons of nationalization of banks in 1969
was the reluctance of banks to set up branches in rural areas. After that, rural branches have gone up
but still the credit availability is not as it should be. Also, banks are reluctant to extend credit to farmers
because of the low probability of loan repayment. Due to political influences and credit norms by the
RBI, agricultural credit creation gets hampered. Due to all these factors, farmers have to borrow from
moneylenders and other non-institutional players who take advantage of their predicament and
charge usurious rates of interest, resulting in farmers getting into debt traps.
7. Rapid and mindless urbanization - India, owing to the growth since liberalization of economy
since 1991, is one of the fast urbanizing countries in the World. However, this urbanization process is
often unplanned and mindless, resulting in indiscriminate setting up of industrial clusters, factories,
workshops and so on. This has resulted in water resources such as rivers and ponds getting polluted
and thereby affecting water availability for agriculture. It has also resulted in rapid transformation of
land for agricultural to non-agricultural.
8. Middlemen - Supply chain of agriculture in India has given a lot of power in the hands of the
middlemen such as arhatiys, brokers and agents. The ends of the supply chain - producers i.e. farmers
and consumers - both get exploited by the middlemen. They purchase the output of farmers at lower
price and sell it to consumers after adding a hefty margin. So, neither the farmers get compensated
for their efforts, nor the consumers can buy food at a reasonable price.

Where is the problem?

Major States in India are suffering from agrarian crisis:
1. Maharashtra - The state of Maharashtra is also one of the most industrialized and urbanized
states of India and as such, the speed of transformation of land from agricultural to non-agricultural
is also very fast. Vidarbha and Marathwada regions of Maharashtra have seen rise in farmer suicides
over the years.
2. Andhra Pradesh and Telangana -The chief reasons for agrarian crisis here are lack of access to
institutional credit, and high input costs and rapid urbanization. Telangana, which was a region in the
state at that time suffered from it the most, owing to its proximity to Hyderabad, the IT hub. It was
further fuelled by unscrupulous methods used by microfinance organizations which had extended
credit to farmers.

22
3. Uttar Pradesh - The consecutive droughts of 2015 and 2016 created unprecedented problems
for farmers in Uttar Pradesh. Over the period of times, a lot of farmers have switched from traditional
crops like wheat, rice, millets and pulses to cash crops such as sugarcane. These farmers were the
worst affected by the droughts. Besides, indiscriminate urbanization has resulted in widespread
contamination of water re- sources, including large rivers such as Ganga and Yamuna.
4. Punjab and Haryana - Punjab was at the forefront of the famous Green Revolution in 1960s.
However, over the period of time, due to excess use of pesticides, fertilizers, high-yield seeds and
ground water, agricultural productivity in Punjab is on a steady decline.

Farm loan waivers - Do they solve the problem?

In November 2017, thousands of farmers gathered at the Ramlila Maidan in New Delhi. Banners and
flags of different organisations were waved, but what brought them together was a common demand
- a one-time complete waiver of farmer loans and fair prices for their produce. Under a common
umbrella of All India Kisan Sangharsh Coordination Committee (AIKSCC) around 184 farmer groups
from across states such as Tamil Nadu, Maharashtra, Madhya Pradesh, Uttar Pradesh, Punjab, and
Telangana participated in the protest walk. Yogendra Yadav, the national president of Swaraj India
political party and a member of the Swaraj Abhiyan, spearheaded the march from the Ramlila Maidan
till Parliament Street for the 'Kisan Mukti Sansad'. Waivers from farm loans have become a politically
contentious issue. For gaining political mileage, practically every political party promises these waivers
in its manifesto.
There are 2 very important questions that should be asked regarding farm loan waivers –
1. Are they really going to be helpful to farmers and
2. How long are the governments going to give them?
Since agriculture is a state topic and therefore decisions regarding agriculture are to be taken by the
states. Union Finance Minister has categorically stated that if the states are willing to give farm loan
waivers to the farmers, then the resources have to be generated by the states themselves and they
cannot expect the central government to provide them with resources. However, experts across India
as well as the World have cautioned the state governments that farm loan waivers cannot be a
permanent solution and therefore, should be used sparingly. They are definitely going to put strains
on the finances of the states as the states will have to repay the loans to lending institutions.

Problems associated with Farm Loan Waivers:

1. These waivers are typically helpful to only those farmers who have borrowed from lending
institutions like banks. However, a large class of farmers remain beyond the measures as they have
not borrowed from these banks, and majority of these farmers are small and marginal farmers, who
are the most vulnerable to the crisis and need waivers the most. In other words, those who need the
waivers re the ones deprived of them.
2. Using farm loan waivers is similar to using bandages when the patient is suffering from a
terminal disease. The major problem afflicting Indian agriculture is that it's extremely crowded. More
than 50% of the population is directly dependent on it for its livelihood whereas its contribution to
the country's GDP is barely 15%. This situation is not sustainable and farm loan waivers do not address
this malaise at all.
3. Farm loan waivers put considerable strains on the states' resources. Due to them, fiscal deficit
rises and the states cannot undertake capital expenditure as there is a resource crunch.
4. Repeated waivers create an incentive for default and encourage reckless behavior from the
borrowers.
5. Waivers affect the flow of credit to agricultural sector in the long run as lending institutions
will be naturally apprehensive to extend credit. It also affects innovations and research and
development in this sector.

23
Swaminathan Committee recommendations –
The government of India constituted the National Commission on Farmers (NCF) on November 18,
2004. The NCF was chaired by Professor M.S. Swaminathan. It submitted five reports to the
government. The first was submitted in December 2004 and the fifth and final report was submitted
on October 4, 2006. NCF's Swaminathan Commission Report aimed at working out a system for food
and nutrition security, sustainability in the farming system, enhancing quality and cost
competitiveness of farm commodities and also to recommend measures for credit and other
marketing related steps. Dr. Swaminathan had requested the government to implement the
recommendations given in the report so that it could provide minimum support price for grains,
safeguard the interest of small farmers and addressing the issue of increasing risk overtaking
agriculture as a profession.

What were the Commission's observations?

The Commission observed that farmers needed to have an assured access to and control over rightful
basic resources-land, water, bio resources, credit and insurance, technology and knowledge
management, and markets. It observed that agriculture must be implemented in the concurrent list
from the state list.

What are the Commission's key recommendations?

One of the key reforms was, of course, land reforms. It was aimed to address the issue of access to
and for both crops and livestock. The commission said that the inequality in landholdings in shown
starkly in land ownership. It said that in 1991-92, the share of the bottom 50 per cent of the rural
households in the country's total land ownership was only three percent. The top 10 percent owned
as much as 54 per cent.
1. Land Reforms: Distribution of ceiling-surplus and waste lands; prevention of diversion of
prime agricultural land and forest to corporate sector for non-agricultural use; to ensure grazing rights
are provided and seasonal access is allowed in forests to tribals and pastoralists. It recommended
access to common property resources. One main case was establishing a National Land Use Advisory
Service. The purpose of this service would be to connect land usage decisions with ecological
meteorological and marketing factors.
2. Irrigation Reforms: It recommended framing a set of reforms to provide farmers with
"sustained and equitable" access to water for irrigation. Ensuring boost in water supply by rainwater
harvesting, water level recharging by mandatory aquifers; Million Wells Recharge programme to be
initiated targeted at private wells. To target increase in investment in irrigation sector under 11th five
year plan.
3. Productivity Growth: NCF said that with the objective of achieving higher productivity growth,
it recommended "Substantial increase in public investment in agriculture- related infrastructure
particularly in irrigation, drainage, land development, water conservation, research development and
road connectivity etc." It also recommended a national network of advanced soil testing labs with an
aim to test areas for apt micronutrient levels.
4. Credit and Insurance: Expand outreach of formal credit system; reduce crop loan interest
rates to 4%; provide moratorium on debt recovery; agricultural risk fund; kisan credit cards for women
farmers; integrated credit-cum-crop-livestock human health insurance package; crop insurance across
country for all crops with reduced premiums; sustainable livelihoods for the poor, investment in
human development; institutional development services etc.
5. Food Security: The commission recommended Implementation of a universal public
distribution system; reorganising delivery of nutrition support programmes on a life-cycle basis with
panchayat participation and that of local bodies; elimination of micronutrient deficiency induced
hunger and food cum fortification; community food and water banks to be operated by women self-
help groups; help small and marginal farmers; formulate national food guarantee act with features as
food for work and employment guarantee programmes.

24
6. Prevention of Farmer Suicides: Providing affordable health insurance at primary healthcare
centers in villages; national rural health mission to be extended to suicide hotspots on priority basis;
state level farmers' commissions with representatives of farmers, restructuring of microfinance
policies that may serve as a sort of livelihood finance; covering all crops by crop insurance; village to
be the assessor and not the block, social security net that gives old age support with health insurance
and aquifer recharge and rain water conservation; plans for decentralized water usage etc.

Conclusion: The tens of thousands of farmers who protested in Delhi said that the Swaminathan
Committee had recommended some measures that the central government needs to take to avert
the agrarian crisis in India. However, after many years since the recommendations were tabled,
nothing has been done. It thus raises a question: If the government’s attitude towards farming is not
serious can it (farming) be a viable occupation for the people of the country?

25
5. Sabarimala Issue: Tradition vs. Women’s Democratic Rights
By allowing women of all ages to enter the Sabarimala Temple, the Supreme Court has set a positive
precedent regarding questions of religious equality. It is a significant milestone in,
• Unconditional respect for the equality of women and men
• Respect for the Constitution and the institutions the constitution has created
• Respect for the rights of religious adherents to follow their beliefs and practices, so long as
they do no harm to others; and the rule of law.

What is unusual about Sabarimala is that it offers the first example of these invaluable and seemingly
unchallengeable principles clashing with each other. Constitutionalists and liberals and democrats can
easily uphold the above principles.

The problem is that the some of these admirable values are diametrically opposed to each other on
Sabarimala.

The Temple:
Sabarimala is a prominent Hindu temple in Kerala. The temple is dedicated to Ayyappa or the God of
growth. The temple attracts pilgrims from Kerala, Tamil Nadu, Karnataka and Andhra Pradesh and
from various parts of the country and the world. The temple is open for worship only in the first five
days of each Malayalam month; during specials occasions during November-December, then on
January 14 and again on April 14. It is an ancient temple mostly unreachable till it was rediscovered in
12th century. The pilgrims of Sabarimala have to reach the temple through difficult treks in the forest
as the vehicles cannot reach there. The pilgrims have to observe celibacy for 41 days before going to
Sabarimala. They are also required to strictly follow a lacto-vegetarian diet, refrain from alcohol, not
use any profanity and allow the hair and nails to grow without cutting. They are expected to bath twice
in a day and visit the local temples regularly. They wear black or blue clothes, do not shave until the
completion of the pilgrimage, and smear sandal paste on their forehead.

Controversy over women entry:

The ban on women entering the temple premises is being practised for centuries, as devotees consider
Lord Ayappa, the presiding deity of the temple, to be celibate.

History: 1991 Photograph

A plea was filed in Kerala High Court in 1991 after a photograph showing a rice-feeding ceremony at
the Sabarimala temple was published in a newspaper. The photograph was from the first rice-feeding
ceremony of the grand-daughter of an ex- commissioner of the temple board. The photo showed
women relatives present at the function in the temple. In 1991, the Kerala High Court restricted entry
of women above the age of 10 and below the age of 50 from Sabarimala temple as they were of the
menstruating age.
27 years later on September 28, 2018, the Supreme Court lifted the ban, saying that discrimination
against women on any grounds, even religious is unconstitutional, which kick started the current
controversy.
The protests took a political turn after BJP ally Shiv Sena warned of "mass suicides" if women set foot
inside the Sabarimala temple. The protests intensified as the date of opening neared. On October 17,
when the doors to Sabarimala opened, the protesters camped at the base of the trek and at the last
stretch of the trek (at Pamba) to stop women from entering the temple.

26
In favour of Women’s Rights:

4:1 Verdict – SC ruled that not allowing women was in violation of the Constitution. (Justice
InduMalhotra dissented)

• Patriarchy of religion cannot be permitted to triumph over faith

• Dualistic approach against women degrades the status of women.
• The right guaranteed under article 25 has nothing to do with gender or physiological factors.
• Devotees of Ayyappa do not constitute a separate religious denomination.

Articles 25 to 28 of Indian Constitution guarantee the right to freedom of religion to all citizens within
the territorial boundaries of the country.
1. Freedom of conscience and free profession of religion (Article 25)
2. Freedom to manage religious affairs. (Article 26)
3. Freedom from payment of taxes for promotion of any particular religion. (Article 27)
4. Freedom to attend religious instructions. (Article 28)

• Rules disallowing women in Sabarimala are unconstitutional and violative of Article 21

(Article 21 of the Indian Constitution guarantees life and personal liberty. No per- son shall be
deprived of his life or personal liberty except according to procedures established by law.)
• The fact that women have physiological feature to menstruate has nothing to do with her
right to pray.
• To treat women as children of lesser god is to blink at the constitution.

For centuries, women were not allowed to enter the Sabarimala shrine based on the biological ground
of menstruation. The Rule of the Kerala Hindu Places of Public Worship states that “Women at such
time during which they are not by custom and usage allowed to enter a place of worship” was the
basis of the practice of excluding women of the age group of 10 through to 50 years to enter the
temple. The KHC had further held that only the chief priest was empowered to decide on traditions.
There is a practice of exclusion of menstruating women from social and religious functions. At times,
it takes the form of untouchability. In rural Nepal, religious Hindus believe that menstruating women
are unclean and should be banished from the family home – many women have died. This is despite
the Nepalese government passing a law and making it illegal. Such notions of purity and pollution,
which stigmatise women in what is essentially a biological process, are anathema to human rights.
Such a practice has certainly no place in our constitutional order. When we, the people of India, gave
ourselves the Constitution of India, we sought to break the onerous shackles of inequities, injustice,
and social hierarchies and entrenched structures that perpetuate discrimination and prejudice. It is
indeed shocking that we had to wait 70 years after independence to provide equity to half the
population of the country.

In favor of tradition:
• Issues of deep religious sentiment should not be interfered in by the court.
• Notion of rationality should not be seen in matters of religion.
• Worshippers of Sabarimala have attributes of religious denomination.

Judges should not impose their personal views, morality or rationality with respect to the form of
worship of a deity. A pluralistic society and secular polity would reflect that the followers of various
sects have the freedom to practise their faith in accordance with the tenets of their religion. It is
irrelevant whether the practice is rational or logical. Notions of rationality cannot be invoked in
matters of religion by courts. Ayyappa is in the form of a Naishtik Brahmachari. The belief in a deity,
and the form in which he has manifested himself is a fundamental right protected by Article 25(1) of

27
the Constitution. The prohibition in vogue for time immemorial qualified to be an “essential practice”.
A religion can lay down a code of ethics, and also prescribe rituals, observances, ceremonies and
modes of worship. Imposing the court’s morality on a religion would negate the freedom to practise
one’s religion according to one’s faith and beliefs. It would amount to rationalising religion, faith and
beliefs, which is outside the ken of courts. India is a country comprising diverse religions, creeds, sects
each of which have their faiths, beliefs and distinctive practices. Constitutional morality in a secular
polity would comprehend the freedom of every individual, group, sect, or denomination to practise
their religion in accordance with their beliefs and practices.

Equality is not the problem in Sabarimala. Instead, it is an issue concerning the holiness and the rituals
of the temple. In Kanyakumari, there is a temple where men are not allowed to enter. Nobody has
gone to court saying that they want to enter the temple. There are other Ayyappa temples for women,
for those who want to pray to him. Eeveryone should respect the speciality of Sabarimala. Democracy,
one must respect religious beliefs, the Constitution, the law and so on. Balancing all of this is what
democracy is all about. Sabarimala has now become a police camp. How can anyone pray peacefully
there.

The notifications issued by the Travancore Devaswom Board in 1955 and 1956, which refer to the
devotees as “Ayyappans”. The worshippers of Lord Ayyappa together constitute a religious
denomination, or sect thereof, as the case maybe, follow a common faith, and have common beliefs
and practices. They are designated by a distinctive name wherein all male devotees are called
“Ayyappans”; all female devotees below the age of 10 and above the age of 50 are called
“Malikapurams”. A pilgrim on his maiden trip is called a “KanniAyyappan”. The devotees are referred
to as “Ayyappa Swamis”. A devotee has to observe the “vratham” and follow a code of conduct, before
embarking upon the “PathinettuPadikal” to enter the temple. Thus, Ayyappa devotees are a separate
religious denomination and their rights need to be protected and not interfered with.

Popular sentiment and political conflict

The state government’s decision to implement the Supreme Court verdict has given opportunist
politicians the chance to fish in troubled waters.
The BJP seeks to reassert anew its role as the self-appointed custodian of Hindu sensitivities, creating
outrage and violence by leading an agitation to prevent women from accessing the temple. Congress
is playing the soft hindutva. Meanwhile, the ruling party CPI-M blows hot and cold, saying one day
that it will implement the Court order by escorting women to the shrine, then ordering its police not
to do so and indeed to escort them back if they attempt it. They have converted a sacred spot into an
unseemly stage of political theatre. The reactions in Kerala have demonstrated that abstract notions
of constitutional principle also have to pass the test of societal acceptance — all the more so when
they are applied to matters of faith. Judges are, of course, rational beings applying legal principles and
precedents. Worshippers have no such constraints. The overwhelming majority of Kerala Hindus,
including a significant majority of women, have now demonstrated that their faith is offended by the
Supreme Court verdict. Informal surveys suggest that opposition to the court judgment among Kerala
Hindus is above 75 percent and perhaps as high as 90 percent. The intensity of emotions on display
have surprised many liberals, not least because so many women seem outraged that other women
might be allowed to go into the Sabarimala temple and disturb its sanctity.
It is all very well to say that religions must adhere to the normal rules of liberal democracy, but the
truth is they don’t. Gender equality is a vital principle in civic society and in political democracy, but it
is by no means universally observed in the religious world.

Muslim mosques don’t allow men and women to pray together in the same space. The Catholic Church
does not permit female priests. Some Shinto monasteries are off-limits to women altogether. There
are Hindu temples which do not allow men to enter during specified periods, and the Kumari Amman

28
temple situated in Kanyakumari does not permit them at all. The law does not interfere in such
matters.
In implementing the Supreme Court verdict, politicians should have sought to reconcile the principles
upheld by the Court with the believers’ sense of the sanctity of their faith. There is a need for mutual
engagement between the liberals and the traditionalists on what their convictions and doctrines mean
in a changing world.

Conclusion:
With its Sabarimala verdict, the SC underlines the Constitution’s transformative power. The
Constitution protects religious freedom. The legal challenge to the exclusion of women in the 10-50
age group from the Sabarimala temple in Kerala represented a conflict between the group rights of
the temple authorities in enforcing the presiding deity’s strict celibate status and the individual rights
of women to offer worship there. The decision reaffirms the Constitution’s transformative character
and derives strength from the centrality it accords to fundamental rights. Liberals are thus torn
between their basic respect for gender equality and their democratic duty to respect the beliefs and
wishes of the people. In religious matters, beliefs must prevail; in a pluralistic democracy, legal
principles and cultural autonomy must both be respected.

40 Odd review petitions have been filed against the September 2018 ruling in which Justice Malhotra
famously used the diversity logic to dissent against the majority verdict on the ground that courts
should not sit in judgement over religious practices unless these are as abhorrent as sati. In February
2019, the court reserved its judgment on pleas seeking a review of its September 2018 verdict. In
November 2019, The Supreme Court referred review pleas to a larger seven-member bench.

The larger bench is also expected to hear issues relating to other communities’ right to practise,
profess and follow their own religious fundamental rights, guaranteed under Articles 25 and 26 of the
Constitution. “The debate about the constitutional validity of practices entailing restriction of entry of
women generally in the place of worship is not limited to this case, but also arises in respect of entry
of Muslim women in a Durgah/Mosque as also in relation to Parsi women married to a non-Parsi into
the holy fire place of an Agyari,” the judgment said. “There is yet another seminal issue pending for
consideration in this court regarding the powers of the constitutional courts to tread on (the) question
as to whether a particular practice is essential to religion or is an integral (part) of the religion, in
respect of female genital mutilation in DawoodiBohra community.”

The judgment suggested that a decision by a larger bench would “instill public confidence” and “put
at rest recurring issues touching upon the rights flowing from Articles 25 and 26”.

On December 13, 2019, the Supreme Court declined to pass any order on pleas by two women activists
seeking a direction to the Kerala government to ensure safe entry of women in the Sabarimala temple
under police protection. The top court said the issue was "very emotive" and it did not want the
situation to become "explosive". A bench, headed by Chief Justice S A Bobde, said the "balance of
convenience" required that no orders are passed in the mater today as the issue had already been
referred to a 7-judge bench.

The apex court said it would endeavour to constitute the larger bench at the earliest to hear the
matter.

Further Reading:
https://thewire.in/law/watch-sabarimala-verdict-what-the-judges-said
https://thewire.in/women/sabarimala-women-entry-supreme-court-judgement-kerala

29
https://www.hindustantimes.com/india-news/ban-on-entry-of-women-facts-controversies- about-
kerala-s-sabarimala-temple/story-K4Xi6GKMacPDmQO2jAmjNO.html
https://timesofindia.indiatimes.com/india/what-is-sabarimala-case/articleshow/66054724.cms
https://www.firstpost.com/india/why-women-are-barred-from-sabarimala-its-not-because- they-
are-unclean-2583694.html
https://www.thehindu.com/opinion/editorial/keep-the-peace/article25265690.ece
https://www.hindustantimes.com/india-news/why-the-sabarimala-verdict-allowing-women- s-entry-
is-not-against-mass-opinion/story-TbhvfuhI8myB0SW3qoAxeM.html
https://www.financialexpress.com/india-news/the-constitutional-and-legal-bases-of-the-
sabarimala-verdict-october-17-2018/1352605/
https://www.telegraphindia.com/india/sabarimala-to-bigger-bench/cid/1719399

30
6. How Can We Handle and Prevent Online Harassment
The Internet is not short of people who instead of winning arguments based on reason, resort to
abuse, threats, insults and bullying, to prove their point. You must have come across such people
everywhere, especially while browsing through social media. Trolls are individuals who post abusive
and controversial remarks or comments on social media platforms to bother other people, with the
sole malicious intention to hurt the sentiments and feelings of others and provoke an angry reaction.
Their messages are such that they can shift everyone’s attention from the subject matter.
Trolling is the new generation cybercrime and trolls are the new generation of criminals on the
internet who derive sadistic pleasure in spreading abuse and hate. One should not ignore the trolls,
but should fight against them.
Is trolling punishable? We do not have a specific law that directly addresses this growing concern, but
we do have a few sections in different laws such as Indian Penal Code (IPC) and Information
Technology (Amendment) Act (IT Act) which make trolling a criminal act. These are some of the specific
actions that one can take in different situations:
• Violation of Privacy – If any person takes your photograph, makes your videos, records and
publishes your private pictures or sends them electronically to anyone without your consent, then you
can take legal action against them. Any violation of privacy is punishable by a prison term of three
years.
• Publishing Sexually Offensive Material on the Internet – Nowadays, we can see large amounts
of improper and offensive content on the Internet which, no doubt, attracts a lot of attention. If any
person publishes any offensive sexual content on the internet, he or she can be jailed for up to seven
years.
• Sexual Harassment – If any person tries to make physical contact or sexual advances with you,
or demand for sexual favours from you, or shows pornography, or makes sexual comments about you,
then you can take legal action against them by filing a complaint. Posting sexually offensive comments
against other people on social media and other platforms also makes a person liable for sexual
harassment.
• Defamation – If any person who intentionally uses any words, signs or visible representations,
or publishes anything only to harm your reputation, they can be punished for defamation. Acts such
as defaming a woman online, commenting on social media platforms, posting obscene remarks or
images or videos are all covered under the offence of defamation.
• Criminal intimidation by anonymous communication – If a person conceals his/her identity to
threaten another, they can be jailed for up to two years. This is very helpful and effective in dealing
with online trolls.
• Insulting the Modesty of a Woman – If you are a woman and any person insults or outrages
your modesty, uses any word, makes any sound or gesture, or displays any object which can violate
your privacy, then you can sue him. Posting sexually offensive comments or pictures or videos on
social media or other platforms are also covered under the offence of trolling.
• Voyeurism – If you are a woman and any person watches or captures an image of you when
you are engaged in a private act, under circumstances where you would not expect anyone to watch
you and if such person publishes those images, then you can take legal action against them.
• Stalking – If you are a woman, and bothered by a man who follows you and contacts or
attempts to contact you to make personal relations despite your lack of interest; or keeps an eye
on your activities on the internet or any other form of electronic communication, then you can take
action against them by filing a case under the IPC with the help of a lawyer.
• Monitoring social media exchanges so that they stay within defined limits: Trolling has real
and dangerous consequences for those who do face it. They live with the fear of actually having to
face the violence suggested online. They feel incapable of expressing themselves freely. Hence, the
government should have laws in place that are specific about what kinds of trolling can face legal
action. The threat of legal action will stop or at least instil fear as a deterrent.

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• Trolls are often people who cannot tolerate dissent from their own opinions. Their abuse and
threats to those they troll should be taken seriously as they may act on their threats. Even their verbal
abuse causes fear in someone expressing an honest opinion.
• Non-abusive and politely expressed disagreements are not something most people are
capable of - they will have to be coerced to learn it by strict and punitive laws that restrain their loosely
directed anger.
• Trolling took on international proportion religious s with the story of how Russian operatives
secretly manipulated Facebook, Twitter, Google, and other social-media platforms during the 2016 US
election. Recently executives from Twitter; Alphabet, Inc., which runs Google, and Facebook- were
grilled about alarming new reports-including a series of revelations from inside Russia itself-about
Moscow's covert purchase of political ads, use of countless Internet bots and trolls, and creation of
fake American users, all as part of an effort to instigate racial and conflict and spread conspiracy
theories during election campaign and beyond. It compelled the biggest social-media platforms to
archive and maintain a public file of all political ads for buyers who spend more than $500 and require
them to "make all reasonable efforts to ensure that foreign individuals and entities are not purchasing
political advertisements in order to influence the American electorate.
• "It's only going to expand. We have to muster a self-defence, just as we would from a military
or a cyberattack." – Senator Richard Blumenthal.
It seems clear now that, at the very least, one consequence of Russiagate will be a whole new set of
rules and regulations for the corporate giants of the online world, who until now have coasted along
in a mostly regulation-free Wild, Wild West.
• Union Minister for Women & Child Development, Maneka Gandhi has decided to take action
against troll-abuse on social media, particularly against women. She has requested the Union Home
Ministry as well as the I&B ministry to take possible steps to control the abusive trolling community.
She has also asked social networking platforms like Twitter, Facebook and other social media
platforms for their assistance in tackling this troll menace. Maneka Gandhi became proactive following
complaints by troll victims.
In any society freedom is never absolute. Freedom always comes with a rider. You have freedom to
speak/express. But, at the same time, you must take care of the fact that your exercising of the right
to freedom must not abuse anybody, must not hurt anybody's sentiments, must not be provocative
and finally it must not be indecent. The SC rightly scrapped the law relating to 66A as it was difficult
to implement. But then, the Supreme Court never said that acts shouldn't be there to control such
violations. The SC, on numerous occasions has said that the right to freedom is not absolute. We
should consider the introduction of a "report abuse" tab on social networking sites like many
newspaper websites provide. If the abuse tab is hit beyond the threshold number (set as per
assessment), the account could be blocked by the social media administrator and an inquiry by the
police initiated. One may not be booked at that moment, but an inquiry can name and shame the
trolling person and that would be enough for many to control their language on social media. For
repeat offenders, a 24-hour detention in a police station would be sufficient because all such trollers
probably do not understand what spending a night at a police station means.

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7. Are Streaming Platforms (Netflix etc) a Threat to Conventional
TV ?
In the 1980s, TV was the center piece of almost every living room around the world. In India, owning
a TV also had the tag of affluence attached to it, and there were ad campaigns, such as the Onida ad
with a tagline that said, “Neighbour’s envy, Owner’s pride”. The square box back then was the biggest
source of entertainment and information. With the launch of Star TV and ZeeTV in India in the 1990s
India witnessed a sharp rise in demand for cable TV. However, in the 90s and in 2000s no one could
imagine that there would be a time not too far off in the future when cable TV could become
redundant and would be on the verge of being replaced by something even better. And that iswhat
happened with the advent of Netflix, Hotstar and Amazon Prime. In India, we are seeing a major boom
in the number of streaming subscribers, and among these include three big and popular players—
Netflix, Hotstar and Amazon Prime. Video streaming services have made us realise that we don’t need
a dish or a cable connection to enjoy great TV content. They deliver content on multiple platforms. So
we can enjoy watching our TV shows whenever we want and wherever we want. Primarily the reason
for a surge in streaming services was connected with the sharp fall in mobile data price in India with
Reliance Jio spearheading this price war in 2016 as it began to offer bulk of data at no charge to
customers for a certain period of time.

Popularity of Streaming Services

The streaming services allow the consumer to watch a full season of their favourite show and that has
given rise to binge watching or marathon watching. Releasing all the shows at once grants freedom to
viewers to watch their favourite series as per their convenience. Consumers are free to press pause
and take a break from their show whenever they want. They can also refer to previous plot-points if
they’re lost. Another very important point is that the streaming services is subscription-based, thus it
removes the annoyance of ad- breaks and does not ruin the viewing experience by preventing any
form of disturbances and manipulative ad-breaks to break the narrative.
To understand the popularity of these three streaming services we need to dig deeper into the facts
and services that they are providing. Hotstar owns the streaming rights to the vast majority of cricket
tournaments played in India and by the Indian cricket team in different parts of the world, and this is
a great lead for Hotstar considering the popularity of cricket amongst Indians. Apart from this, Hotstar
also distributes popular TV shows like Game of Thrones and How I Met Your Mother. It has a regional
movie collection of around 600 Hindi, 200 Bengali, 400 Telugu, 850 Malayalam, 100 Tamil, and 400
Kannada movies. Now coming to Netflix and Amazon, both have a wide range of series to offer and
have interesting exclusive series to offer such as The Man in the High Castle is Amazon exclusive and
popular shows such as Stranger Things and Orange is the New Black are exclusives to Netflix. Apart
from that Netflix has partnered with some Indian production houses to get popular titles and has
started looking at original regional content. Sacred Games, Netflix’s breakout series in India is one
such example. Coming to Amazon Prime, they are rolling out not just Hindi movies and few Hindi TV
shows, but also catering to Tamil, Telugu, Marathi and Bengali audience. At the moment the movie
titles are limited across the dialects but Amazon plans to invest heavily on its service for the Indian
market, thus one can expect a lot more premium content from Amazon in the recent future.

Price Points
Let’s talk about the price points, although both Amazon Prime and Netflix has hit shows like The Man
in the High Castle and Goliath on Amazon, and House of Cards and Sacred Games on Netflix, if you
compare the pricing of the two services, Prime scores a point here because it is cheaper than Netflix.
At present the annual Prime subscription in India costs Rs 999 and Rs 129 per month. Now, Netflix has
finally launched the cheapest subscription plan in India at Rs 199 for a month. The catch for the low-
price is that the streaming is limited to mobile and tablet only. And, this new plan allows the users to
stream only on one screen. Netflix also offers a basic plan at Rs 499; standard plan at 649 and the

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premium plan at 799. The yearly cost of Netflix is higher than that of Prime. In India for many
consumers, Amazon Prime comes free for a year because of bundled offer they get with their post-
paid mobile plan. But Netflix has its pluses as it has more quality international contents and more
originals; it is a more user friendly app and has a separate button on the set top box. But if you are a
huge sports fan then nothing is better than Hotstar. The Hotstar premium membership grants you
access to all their premium titles which are currently available on the platform. In addition to premium
titles, you also get access to all Live Sports, including Cricket, Premier League and so on. You can get
all this for a yearly plan of Rs 999 or a monthly plan for Rs 299.

End of the road for TV?

With video streaming services consumers all over the world have realised that they don’t need a dish
or cable connection to enjoy good quality entertainment. Netflix, Amazon and other streaming
services have changed the way a person watches TV. With the success of these streaming services, we
can easily deduce that the consumer is ready to experience something different and is a clear
indication that these services can put the cable companies out of business. The successful and award
winning television shows and movies created and produced by the streaming companies are most
watched on the planet. The cable companies are trying hard to create the same magic as the streaming
companies but are not successful yet. Streaming companies are transforming the entertainment
industry and there is no doubt that both Netflix and Amazon Prime Video will lead the way to the next
development in entertainment. The subscribers of the Netflix and Amazon Prime Video enjoy shows
and movies that would never make it to the standard cable networks or the traditional commercial
broadcast networks. While large broadcast companies are restricted to conventional plotlines and
characters for most of their shows, Netflix and Amazon Prime Video create content based on different
themes and plotlines to cater to the large masses, so now there is something for everyone.

The TV business is basically based on two factors: advertising and subscription. Premium channels,
such as, HBO is able to thrive on subscription models alone. However, most of the other channels work
on a hybrid model, so they sell advertising and receive fees from cable providers in return for allowing
them to carry programming. Till the recent past, cable companies held a lot of leverage because, unlike
broadcasters, they had a direct financial relationship with the consumer. With streaming television,
this business model needs a major overhaul. Viewers are increasingly moving away from cable and
satellite TV. So, what is the future of Broadcast TV and Cable? It still reaches vast numbers of
consumers but the question is how will the advertisers that are paying for the cost of producing
content reach the young and the affluent viewers? Advertisers are therefore trying to find ways of
reaching consumers digitally. Cable box is now something of a redundant item from the past as smart
TVs, tablets, mobile phones and a host of other streaming devices can act as your source of
entertainment. The consumer has indeed become King with the streaming services. Although the
future of entertainment looks extremely exciting, it looks like the future of cable business is not so
bright. So, in a nutshell yes, TV as we know it might be a thing of the past.

To conclude, it won’t be surprising if all televisions become smart TVs within the next ten years. We
might expect these devices to transform into another medium to stream videos, music and so on, and
thus becoming an integral part of virtual reality and future programming.

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 8. Globalization is Dead and We Need to Invent a New World Order
Globalization is defined as the increasing interaction of people, states, or countries. This interaction is
often enabled through the growth of the international flow of money, ideas, and culture. Globalization
is primarily a process of integration that has social and cultural aspects. On the other hand,
Isolationism is defined as a policy or doctrine of trying to isolate one’s country from the affairs of other
nations. This is achieved by not entering multilateral alliances, foreign economic commitments or
international agreements, and generally attempting to make one’s economy self-reliant. At various
points in history, countries such as Bhutan, Japan and China have adopted a stance that would be
called as isolationist. For the past many years, North Korea, with its policy of Juche, has tried to achieve
sustainability through agricultural independence and a lack of dependency on other countries.
However, recent global events as Donald Trump’s policies, the UK’s exit from the EU, and the increased
strength of the European Right in countries like France, the Netherlands and Germany has given thrust
to the idea that Globalization has had its day. In the light of these developments, is it fair to assume
that globalization is on the way out? If there appears to be a widespread discontentment with
globalization, is isolationism the answer to that?

No, Isolationism is Not the Answer:

• Countries have always traded with one another, because natural resources are not equally
distributed round the world. As Adam Smith has pointed out in his book “The Wealth Of Nations”,
“Would it be a reasonable law, to prohibit the importation of all foreign wines, merely to encourage
the making of claret and burgundy in Scotland?” Historically, absolute advantage – a country importing
what it cannot produce itself, or can only produce at inordinate cost – has always been the main
motive for trade.
• Opening up to international trade has helped many countries grow far more quickly than they
would otherwise have done. International trade helps economic development when a country’s
exports drive its economic growth. Export-led growth has been the centrepiece of the industrial policy
that has enriched parts of Asia and Africa.
• The world is undergoing profound changes brought about by globalization. The rapid
advancement of science and technology, continued expansion of international trade and investment,
and economic restructuring have brought new opportunities to the development of all countries and
regions. However, these changes likewise bring in some amount of uncertainty. Rejecting
globalization, rather than resolving those un- certainties, would be akin to burning one’s agricultural
field to resolve the problems of weed growth or unwanted grazing animals!
• Before India embarked on a policy of economic reform and globalization, there was a massive
socioeconomic problem. Globalization’s dramatic success in India consisted of lifting hundreds of
thousands of people out of poverty. However, with it and automation, many workers were no longer
required. This made some of proponents of Isolationism to argue that Globalization was nothing but
a type of colonization. However, it is now widely believed that it is was the inability of developing
countries like India to skill and protect their workers - and not Globalization - that caused this distress.
• Globalization’s benefits have brought many countries food security, fiscal stability and energy
independence. However, this has also brought about immense social changes such as immigration.
Add to that the global financial slowdown, and many people across countries believe that globalization
is detrimental to their own and the country’s economic well-being. There is a belief that Isolationism
will help in curbing any social ills. However, proponents of isolationism do not state how withdrawing
from the global arena will solve these problems. At best, an isolationist stance is a chimera that has
not delivered any solutions as yet.
• Also, governments are motivated to limit and alter market outcomes for political or social
ends. While governments can limit the rise in prices of some products, they cannot control how much
people want to buy or how much firms are willing to sell. The laws of demand and supply still hold.

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• Furthermore, Isolationism may temporarily create jobs for domestic workers. The protection
of tariffs, quotas or subsidies allows domestic companies to hire locally, but again, if a company in a
protectionist state wants to expand, they won’t be able to. In the long term, trade protectionism
weakens the industry. Without competition, companies within the industry have no need to innovate.
Eventually, the domestic product will decline in quality. It will be lower quality and more expensive
than what foreign competitors produce.
• One example that is often propagated is that China has gained from an Isolationist policy. It is
said that modern day China originated from one of the oldest civilizations in mankind and has kept its
power and solitude by isolating themselves. However, it is often forgotten that the huge growth in
economy was prompted by restructurings initiated in the 90s by Zhu Rongji, fifth Premier of China,
who advocated market reforms, open economy and increased intermingling with the global
community. This lead to double-digit growth of the Chinese economy and its increased assertiveness
in international affairs. Thus, advocates of Isolationism often ignore the benefits of Globalization and
clamor for chopping off the branch that bore the fruits of financial stability in the first place.

Yes, Isolationism is the Answer:

• The backlash against globalization draws its force not only from the perceived dam- age done
to developing countries by global market forces but also from the inequities in the global trading
system. Many developing countries, including Venezuela, Zimbabwe and Greece, have been assisted
by multilateral organizations to help them adjust to crises and imbalances. Unfortunately, this has had
a cascading effect which led to more hunger, discontent and riots in many countries. Even when
results were not so dire and there was some growth for a while - such as in the cases of Haiti, African
countries, Sri Lanka and Pakistan, all of whom benefited with Chinese and American help - often the
benefits went disproportionately to the elite, with those at the bottom sometimes facing even greater
poverty.
• In his book ‘Globalization and its Discontents’, noted author Joseph E Stiglitz observes that,
“riots and protests against the policies of and actions by institutions of globalization are hardly new.
For decades, people in the developing world have rioted when the austerity programs imposed on
their countries proved to be too harsh, but their protests were largely unheard in the West. What is
new is the wave of protests in the developed countries”. From this, it is clear that even people in
developed countries - the very same which were the torch-bearers of globalization - are agitating
against globalization and pinning for an isolationist stance. In that case, what moral authority do the
developed countries have to carry on with globalization with a zealous approach? “ Let us view the
example of the erstwhile Soviet Union. Global- ization and the introduction of a market economy have
not produced the promised results in Russia and most of the other economies that were making the
transition from communism to the market. These countries were told that the new economic system
would bring them unprecedented prosperity. Instead, it brought unprecedented poverty. For most of
the people, the market economy proved even worse than their Communist leaders. Today, many of
these countries are wary on getting entangled in multilateral treaties and like to pursue a balanced
approach that does not encroach on their financial sovereignty.
• Offshoring is a deliberate policy of multinational corporations to weaken domestic labor and
boost profits. The ability of companies to allocate jobs globally changes the nature of the discussion
about the “gains from trade.” In fact, there are no longer guaranteed “gains,” even in the long run, to
those countries that export technology and jobs. If countries like China combine Western technology
with lower labor costs, trade with them will depress Western wages. Citizens of the West will have
cheaper goods, but being able to purchase groceries 20% cheaper does not necessarily make up for
wage losses.
• Between 1991 and 2013, China’s share of global manufacturing exports increased from 2.3%
to 18.8%. Some categories of US manufacturing production were wiped out. The United States might
gain “eventually.” But the gains might take “decades” to be realized, and would not be equally shared.

36
• Between 1991 and 2013, China’s share of global manufacturing exports increased from 2.3%
to 18.8%. Some categories of US manufacturing production were wiped out. The United States might
gain “eventually.” But the gains might take “decades” to be realized, and would not be equally shared.
• The election of Donald Trump and his effort to withdraw the United States from the world
stage is another example of the decline of a global order. Since getting elected, Trump and his
secretaries of state have systematically decoupled American leadership abroad from global problems
in the quest of achieving an ‘America First’ vision. The United States has been credited with laying the
foundations of globalization, but it is now attempting to dismantle essential elements of that
infrastructure, particularly in trade and defense!

Thus, globalization and isolationism hold many different characteristics. Although both of them are
very different, both have greatly affected many aspects of society such as trade, employment rate,
and diversification within the economy. In conclusion, globalization may not be what it once stood for
but each nation and its people must evaluate its pros and cons to arrive at the right mix of policies
that is suitable for their growth and development.

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9. Does India Need a Bullet Train?
In India, the history of High Speed Rail (HSR) started with an announcement made in the Rail Budget
of 2000-2001 about high speed railways, which resulted in a general feasibility study done by Rail India
Technical and Economic Service (RITES). The signing of a pact for the Mumbai-Ahmedabad High-speed
rail corridor - a massive project involving a cost of 98000 crore rupees - created news in the
mainstream media. Both India and Japan have invested time, energy and diplomatic resources in this
showpiece project for which the Japanese are committed to advancing a loan of 8 billion dollars. India
has inched closer to getting a bullet train after Prime Minister Narendra Modi and Shinzo Abe laid the
foundation for the high-speed train network. It will cost Rs. 1.1 lakh crore to see this ambitious project
through. Indian Railways, with help from Japan government, is now set to begin work to set up a 500-
km route for high-speed trains between Ahmedabad and Mumbai. Railways Minister Piyush Goyal had
indicated that the bullet train project will be completed by August 15, 2022, one year before the
official deadline of December 2023. Japan has offered to lend India a soft loan of Rs. 88,000 crore at
an interest of 0.1 per cent. The loan will have to be paid in the course of 50 years, with a moratorium
of 15 years. Although, the bullet train project brings with it several promising prospects, there also
exist hurdles which might hinder them.
The BJP was in power in both Maharashtra and Gujarat states when work began on project in 2017.
Maharashtra is giving a major chunk of money for the project, when most of the track is in Gujarat.
The train will run from Mumbai to Ahmedabad, the main city in Gujarat state, a distance of 508
kilometres (315 miles). But it has run into obstacles acquiring land amid opposition from fruit farmers.
Moreover, the new state government of Maharashtra does not appear to be in favour of the project.
Any delay of the project is likely to undermine investor confidence, at a time when growth has slowed
to its weakest pace in years.
Critics say India does not need the high-speed train and investment should go instead to improve the
existing network. "We are not against development or infrastructure projects, but at the same time
farmers' interests can't be ignored. We will rethink about projects that farmers are opposing," said a
senior leader of Nationalist Congress Party, which is a part of the coalition government. The authorities
have acquired 548 hectares land out of the total requirement 1,380 hectares and the project was
targeted to be operational by 2023
, the government told parliament in July. Protests against land acquisitions are common in India,
where tens of millions of farmers till small holdings.

Points in favour of bullet trains:

• High-speed connectivity - The bullet train running between Ahmedabad and Mumbai will
cover the distance of 508 km within two to three hours. The project is supposed to connect bustling
economic corridors in the states of Gujarat and Maharashtra. This will facilitate economic growth.
• Convenience and Comfort – The Shinkansen high-speed trains (colloquially called as bullet
trains for their appearance and speed) would provide comfortable journey within just a few hours.
The conventional Indian Railways lag considerably on the comfort level of train journeys and the
introduction of bullet trains would be a great development in this factor. The train will have
wheelchair-friendly toilets, feeding rooms for new-borns, and other features for comfort and safety.
Also, the bullet train has several advantages over air transport, including scheduling frequency and
flexibility, punctual operation, comfortable seats, and convenient city-centre terminals.
• Safety - Safety has been one of the major concerns of Indian Railways. The record of bullet
trains in the field of safety has been impeccable. The Shinkansen trains of Japan, started in 1964, have
reported zero fatalities till date.
• Employment - The bullet train project will create employment. The project is expected to
create 4,000 direct job opportunities, along with 20,000 indirect jobs. 20,000 construction workers
will also be employed during the set up period.

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• Urban expansion - New bullet train stations set to come up along the route will attract urban
growth and lessen the burden of settlement and migration in major cities.
• Open new avenues - When completed, the Ahmedabad-Mumbai bullet train project will
present as a favourable destination for high-speed train technologies.
• The purpose of creating an HSR Corridor is not to simply showcase speedy travel. The main
takeaway is stringing in 10 other cities and ushering in development along the way.
• Once operational in 2023, the high-speed service will cut travel time between the cities to two
hours from the current eight hours. The other advantages include safety, comfort and reduction in
commuting time, addressing issues of regional imbalance and reducing pressure on growing urban
areas.
• Proponents of high speed rail argue that the lines will reduce traffic burdens, provide an
environmental benefit, and create jobs. If people come to favour the high speed rail lines over transit
by car, especially over longer distances, there will be a positive effect for the environment, as far less
pollution will be created overall. In addition, this will reduce traffic congestion, leaving far less people
on the roads.
• The act of the creation of the rail line will in itself provide a benefit - many workers will be
needed to work on the project, providing economic stimulus. In addition, if the high speed rail does
indeed make travel easier and cheaper, many who would have previously been unable to may be able
to get jobs further away from their homes. Supporters of high speed rail say that the benefit to the
community, the environment, and the economy far outweighs any costs.

Points against bullet trains:

• Land acquisition - Acquiring new land pieces for laying down the tracks for bullet trains and
constructing new stations might face legal hindrances, delaying the process.
• Stoppages - With limited stoppages (only two in Vadodra and Surat), the Ahmedabad- Mumbai
bullet train will complete its journey in 2 hours, where increasing the stoppages will increase the
journey time up to three hours.
• Profitability - The origin stations - Ahmedabad and Mumbai - have airports and passengers
from these cities could consider taking a flight instead of boarding the bullet train.
• A total of 80 per cent of the funds for the project will come from Japan, and will have to be
returned after a period of 15 years. The profits this project make will decide how easy or difficult it
will be for India to pay this loan back.
• India is seeking loans to build the HSR but is ambivalent in the approach to acquiring
technology and indigenous manufacture of high-end components in the traction chain. Essentially,
India's Ministry of Railways projects the image of a buyer of rolling stock rather than that of a
technology seeker.
• The infrastructure projects required for HSR are meant for the elite and not the middle- class
passengers.
• The cost of laying a bullet-train corridor is estimated to cost up to Rs 100 crore a kilometre.
After summing up the costs of signals, rolling stock, etc, the cost can rise up to Rs 115 crore a km. thus,
one of the major disadvantages includes high capital cost, operation and maintenance cost, and need
to change alignment. Another important dissuading factor is that planning and implementation could
take a long time, while change of government could upset the project.
• The high speed rail program will just eat the budget and reap no real rewards. Critics argue
that very few people will take the trains, opting instead for the freedom offered by personal
automobiles and/or airlines. Some also claim the prices for high speed rail tickets might be too
expensive for many people to take the trains regularly.
• This lack of riders will render the supposed benefits of the high speed rail network moot. Given
the amount of government funding that is being used on the project and the doubter's lack of belief
in its success, they argue that the funding should be instead used for improving the current
transportation infrastructure.

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• Proposed systems and technologies like Maglev & Hyperloop might make investing a
humongous capital on bullet train seem obsolete.
• Noise pollution - Noise pollution concerns make it difficult to increase the speed of these
trains. In Mumbai & Ahmedabad, the population density is high leading to limits on noise levels in
residential areas. Thus, it would be necessary to reduce operational noise, particularly the tunnel
boom phenomenon caused when trains transit tunnels at high speed.

Conclusion:
The future of high speed rail is rapidly approaching, with many lines planned and some already
constructed, but whether this future will be a good one is in question. There's no way of telling at this
juncture whether the project is a boon to the country or an albatross that will weigh the country down.

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10. Will Insolvency and Bankruptcy Code Fix the Bank NPA Issue?
What is the IBC?
The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to
consolidate the existing framework by creating a single law for insolvency and bankruptcy. Certain
provisions of the Act have come into force from 5th August and 19th August 2016. The bankruptcy
code is intended to be a one stop solution for resolving insolvencies which previously was a long
process and did not offer an economically viable arrangement. A strong insolvency framework where
the cost and the time incurred is minimised in attaining liquidation has been long overdue in India.
The code is intended to be able to protect the interests of small investors and make the process of
doing business less cumbersome.

Why the need for the IBC?

India did not have a single bankruptcy code. What we had were age-old laws that were in conflict with
each other. Lack of an insolvency and bankruptcy code had proved costly for the creditors (mainly
banks) in many cases like the recent Kingfisher Airlines and the Nirav Modi case. The Insolvency and
Bankruptcy Code seeks to create a unified framework to resolve insolvency and bankruptcy in India.
1. Such a unified code was essential because the issue of insolvency was being handled under
at least 13 different laws. This code was designed to replace the Presidency Towns Insolvency Act,
1909 and Provincial Insolvency Act, 1920. In addition, it sought to amend 11 laws, including the
Companies Act, 2013, Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and Sick
Industrial Companies (Special Provisions) Repeal Act, 2003, among others.
2. Earlier, if a company defaulted, there were at least four different legal routes available to the
debtors and creditors. This could lead to multiple negotiations, multiple penalties etc. for the debtor,
compounding his plight.
3. Such parallel proceedings had also given rise to numerous instances of conflict between the
laws. Four different agencies, the high courts, the Company Law Board, the Board for Industrial and
Financial Reconstruction (BIFR), and the Debt Recovery Tribunals (DRTs) had overlapping jurisdiction,
which gave rise to the potential of systemic delays and complexities in the process. This new bill has
tried to addresses these issues, by bringing in a new uniform Code.
4. Prior to the implementation of the IBC, insolvency proceedings used to take years. This delay
would acutely devalue the assets involved, thus making the insolvency negotiations redundant.
5. The previous disposition involved the institution of official liquidator, which was prone to red-
tapeism, chronic corruption, and nepotism. The IBC seeks to keep the role of the adjudicator to the
minimum.
6. Prior to the implementation of the IBC, only an average 25% of the asset value was recovered
by the creditors even after the liquidation process.
7. All these compounded to the pitiable position our Public Sector Banks find themselves in.
Rising NPAs and mounting Stressed Assets have also eroded their profits. The easing of liquidation
process can help the banks recover a lot of bad debts.
8. India still fares quite poorly in the Ease of Doing Business index of World Bank. Easiness of Exit
is an important parameter in this index. The previous morass of laws did not help in easing the exit of
trouble-prone entities.
9. According to World Bank data, it takes more than four years to wind up an ailing company in
India, almost twice as long as it does in China.
10. Just like the US Bankruptcy Code that provides for fairly quick liquidation or reorganisation of
business, India too needed a new code that would prevent the economy from tumbling southwards

Key Players & Processes of the IBC

The Insolvency and Bankruptcy Board of India(IBBI): The Code establishes the Insolvency and
Bankruptcy Board of India, to oversee the insolvency proceedings in the country and regulate the

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entities registered under it. The Board will have 10 members, including representatives from the
Ministries of Finance and Law, and the Reserve Bank of India. The IBBI was established on 1st October,
2016 under the Insolvency and Bankruptcy Code, 2016 (Code).
Bankruptcy and Insolvency Adjudicator: The Code proposes separate tribunals to oversee the process
of insolvency resolution, for individuals and companies: (i) the National Company Law Tribunal (NCLT)
for Companies and Limited Liability Partnership firms; (ii) the Debt Recovery Tribunal (DRT) for
individuals and partnerships and (iii) National Company Law Appellate Tribunal (NCLAT) which acts as
the Appellate Authority Insolvency Professionals: Insolvency professionals are licensed professionals,
who are registered with the Insolvency and Bankruptcy Board of India and are enrolled with an
insolvency professional agency. This professional is appointed as an insolvency resolution professional
to manage the resolution process and as a liquidator to conduct liquidation of a corporate debtor. He
or she is appointed by the Adjudicating Authority and is given the power by the Adjudicating Authority
to effectively run and manage the entity as a going concern, and assets of the entity at all times during
the process of resolution. Being a new legislation, the Code is evolving with every passing day and so
are the rights and duties of the insolvency professionals as interim resolution professionals ("IRP") or
resolution professionals ("RP") as the case may be. The Code provides that the Adjudicating Authority
shall appoint an IRP within fourteen days from the insolvency commencement date

Corporate Insolvency Resolution Process (CIRP): The Code outlines separate insolvency resolution
processes for individuals, companies and partnership firms. The process may be initiated by either the
debtor or the creditors. Recently the maximum time limit, for completion of the insolvency resolution
process, has been amended. Prior to the Amendment, the Code required that the CIRP should be
concluded within a maximum period of 180 days (with a maximum one-time extension of 90 days)
from the insolvency commencement date (the Code denotes this to be the date of appointment of
interim resolution professional). However, many CIRPs were exceeding this overall 270-day limit on
account of legal proceedings initiated either against the corporate debtor, the CoC or the Amendment
provides that the CIRP must mandatorily be completed within an overall timeline of 330 days from
the insolvency commencement date (including all or any extensions granted as well as any litigations
and related legal proceedings). Additionally, for an ongoing CIRP, in case the 330-day overall timeline
has already been breached at the time the Amendment comes into force, the Amendment provides
for an additional relaxation of 90 days as a transitionary measure. The minimum default amount to
initiate the CIRP is Rs 1 lakh.

Committee of Creditors: “Committee of Creditors” is a committee consisting of the financial creditors

of the Corporate Debtor. This Committee eventually forms the decision making body of the various
routine tasks involved in Corporate Insolvency Resolution Process (CIRP), responsible for giving
approval to the IRP to carry out actions that might affect the CIRP.

Corporate Debtor: An individual or corporate (proprietary, partnership or limited firm) that has
borrowed money is referred to as a Corporate Debtor under the IBC. For the purpose of IBC, a
corporate debtor is an entity (individual or corporate) that defaults on the debt repayment in whole
or any part of the instalment of the amount of the debt that has become due.

42
The Process to be followed in IBC

Progress of Cases under IBC

Since the coming into force of the provisions of CIRP with effect from 1 December 2016, 2542 CIRPs
have commenced by 30th September 2019. Of these, 186 have been closed on appeal or review or
settled; 116 have been withdrawn; 587 have ended in orders for liquidation and 156 have ended in
approval of resolution plans. Resolution of twelve large accounts was initiated by the banks as directed
by the RBI. Together they had an outstanding claim of Rs. 3.45 lakh crores as against a liquidation
value of Rs. 73,220.23 crores. Out of the 12 large accounts ,the seven cases resolved include Bhushan
Steel, Essar Steel and Bhushan Power and Steel. Together these seven cases accounted for Rs 2.14
lakh crore of outstanding claims. The resolution of these cases helped in the creditors recovering a
total of Rs 1.02 lakh crore, or a recovery rate of 48 percent, slightly better than the average recovery
rate of close to 42 per cent across 156 cases resolved till 30 September 2019 (as on November 15th ,
the amount recovered from the Essar Steel account increased from 30030 crores to around 42000
crores making the total amount recovered about 1.14 lakh crores out of 2.14 lakh crores from these 7
cases making the total percentage recovery around 53% for these 7 cases) .However, the recovery of
these loans ranges between a low of 17 per cent for Alok Industries and 85 per cent for Essar Steel.

43
Is IBC the solution to India's NPA problem?
Arguments against- Resolution under IBC has not been significant so far
The numbers put out by the Insolvency and Bankruptcy Board of India (IBBI) as indicated above paint
a not-so-rosy picture on the progress of cases under IBC. Since the IBC is still evolving and testing
waters, there have been challenges at various stages — right from admission of the case, expression
of interest from parties, to submission of plans and final approval by the NCLT. It has certainly
delivered, but it could have delivered much more. A similar set of issues, have been experienced in
the past as we do right now, when the Debt Recovery Tribunals were set up: lack of infrastructure,
lack of presiding officers, lack of sensitization of other stakeholders, undue delays in litigations etc.
Some of the issues faced in the implementation of the IBC are:

Significant delays in the resolution process

IBC has been widely acknowledged as a beacon of hope for creditors who have, for years, been waiting
for justice. However, in most of the cases the previous threshold of 270 days has been breached
because of procedural inefficiencies, lack of infrastructure and other frivolous matters. When the first
attempt was made to dilute the previous 180/270 day timeline (currently timeline has been extended
to a strict deadline of 330 days), it should have been nipped in the bud. The slow pace of resolution
under the IBC, even three years after its implementation, is a growing cause for concern. After all it
was the inefficacy of the Debt Recovery Tribunals (DRTs) that had prevented lenders from expediting
recoveries under the earlier regimes. One of the crucial aspects of the IBC was time-bound resolution
Not only does this jeopardise the basic premise of resolution within a stipulated time period but also
results in notional loss of interest income for lenders with every day of delay. While there is no denying
that steady modifications in the Code have been made, undue delays in litigations is impacting the
efficacy of the IBC process.

Lack of Infrastructure & Resources

As per Bankruptcy experts, an expansion of infrastructure is a must to keep the process running
smoothly. One of the concerns for the IBC law is that there are too many cases and lack of sufficient
number of resources in terms of IRPs, benches, judicial members, technical members at NCLT.
Expanding judicial capacity in the NCLT and NCLAT is critical for the success of the IBC. There are over
2,787 registered insolvency resolution professionals (IRPs) as on 30th September 2019 .However ,it is
not known as to how many of these individuals are equipped to manage affairs of the business, cash
flows, labour disputes etc.. Some of the IRPs work for the large audit and accountancy firms, while
others are at smaller firms or work as independent professionals. They are certified by the Insolvency
and Bankruptcy Board of India. However, there is a wide variation in quality and experience, and legal
experts demand more consistency.

Lack of Sensitization & Education

Implementation of IBC has continued with the same old mindset, that ‘things will get taken care of
with a new law’. Laws don’t solve problems, it is how those laws get implemented – which includes
education and sensitization – that has been lacking. One critical mistake in the implementation of the
IBC was of choosing the National Company Law Tribunal (NCLT) as the forum. The NCLT was anyway
burdened with other matters, and then IBC just added to it. Dedicated benches should have been set
up for the same. Also, it is not known how many people in the NCLT actually have an understanding
in economics or finance? The IBC is a law which is hugely driven by finance and economics, so you
can’t do justice to the implementation of this law if people who are responsible for its implementation
don’t have a connect with finance and economics

Lack of momentum from the investor community

The M&A activity in the stressed assets space has not been complemented by the much spoken
enthusiasm of investors and a conducive investment landscape. Many investors are waiting on the

44
side-lines to gauge the outcome of the settlement of big cases and evolution of IBC before investing.
There are concerns on too little time being allowed to bidders to do their due diligence. Absence of
virtual data rooms, is keeping foreign funds away from the process as is the relatively small window
to conduct due diligence on the numbers .Furthermore, modifications to IBC have not put to rest
certain looming issues, which are of concern to investors relating to operations of plants in India
following transfer of assets under the IBC, period of commitment towards the units and expected
timelines to close the allocation process. Certain sector-specific concerns with companies under the
IBC may require intervention from the Government.

Arguments for: IBC –Definitely a Game Changer

As per data available till 30thSeptember 2019, realisation by FCs under resolution plans in comparison
to liquidation value is 184%, while the realisation by them in comparison to their claims is 42%
(compared with 26.5% through earlier mechanisms). Further, the average resolution timeline for
cases resolved through IBC which is in the range of 325 -350 days, is also much better compared with
4.3 years earlier.

IBC has also resulted in a slower accretion of new non-performing assets (NPAs) in the Indian banking
system. CRISIL estimates the banking sector’s gross NPA (aggregate) has declined to 10% in end-
March 2019 from 11.5% the year before on the same date.

In the period of time that the insolvency code has been in force, both the NCLT and the NCLAT have
attempted to adapt to new legal concepts and strict procedural timelines. This must continue, of
course, as an efficient judicial process is also critical in protecting the going concern value of distressed
companies.

Some of the steps taken by the government in the implementation of the IBC are:

Development of Infrastructure to support the implementation of IBC

In less than a year of its enactment, new networks of the National Company Law Tribunal (NCLT), the
new regulator ‘Insolvency and Bankruptcy Board of India’ (IBBI), new stream of professionals
‘Insolvency Professionals’ (IPs), new stream of Information ‘Information Utilities’ (IUs) and Insolvency
Professional Agencies (IPAs) were established to control and monitor the IPs’ registrations and
proceedings. The IBBI charted the course of its implementation under the guidance of the Ministry of
Corporate Affairs (MCA), Government of India.

Fine tuning the IBC

Constant improvements and updates to IBC have followed in response to the feedback received and
practical experience of processes under execution. To its credit, the Government has been willing to
hear out suggestions.
The introduction of the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 ("Bill"), by
the Government, is one such step that will help overcome 'critical gaps in the corporate insolvency
framework'. With these recent changes ,the government has rightly enhanced the focus on ensuring
sustenance and recovery of businesses from bankruptcy, which is essential to sustain the economy
and drive growth as it would definitely widen options in terms of interested bidders and encourage
more resolution applicants to come forward to bid for stressed assets, without the Damocles sword
of attachment of assets/ criminal proceedings swinging over their heads

Some of the salient features of the recent changes are as follows:

1. Greater emphasis on the need for time-bound disposal at application stage.

45
A strict deadline has been set for completion of CIRP within an overall limit of 330 days, including
litigation and other judicial processes. Cases will have to be admitted speedily and concluded in 330
days.
2. Minimum threshold for initiating the resolution process: Under the Code, a financial creditor
(either by itself or jointly with other financial creditors) may file an application before the National
Company Law Tribunal (NCLT) for initiating the insolvency resolution process. In 2018, home-buyers
were categorised as financial creditors for the purpose of IBC. Since then, developers have claimed
that this provision has hampered successful completion of various projects as construction was getting
stalled due to filing of insolvency applications by home buyers. As per the Insolvency and Bankruptcy
Board of India (IBBI) data, since the 2018 amendments till September 2019, 1,821 cases were filed
under the IBC by home buyers and in almost all cases, by a single home buyer. The Bill amends this to
provide minimum thresholds for certain class of financial creditors to initiate the insolvency resolution
process. For example, in case of real estate projects, if an allottee (person to whom a plot, apartment,
or building has been allotted or sold) wants to initiate resolution, the application should be filed jointly
by at least 100 allottees of the same real estate project, or 10% of the total allottees under that
project, whichever is less.
3. Liability for prior offences: The Bill provides that corporate debtors will have immunity against
offences committed by them prior to the commencement of the resolution process. In addition, the
Bill provides immunity from any action against the property (such as attachment, seizure, or
confiscation) of the corporate debtor in relation to such offences. Such immunity will be granted if the
resolution plan approved by the NCLT results in the change of promoters, or management of the
corporate debtor. The rationale behind the amendment is that the successful bidder should not have
the risk of a corporate debtor being made an accused by any enforcement agency. The amendments
would remove bottlenecks, streamline the corporate insolvency resolution process and boost
investment in financially-distressed sectors.
4. Extending the scope of Moratorium: To help keep the corporate debtor a ‘going concern’, the
Bill extends the scope of moratorium to prohibit suspension or termination of arrangements that
involve conferment of rights by any government authority on the ‘grounds of insolvency’, or any
arrangements relating to supply of goods and services that the resolution professional considers
critical to protect the value of the corporate debtor, so long as there is no default in the payment of
current dues arising out of use of such benefits during the moratorium period

Conclusion: IBC – A Step in the right direction

The Code has started an interesting journey and is a step in right direction. Earlier, bankers had little
ability to threaten promoters. Debarring wilful defaulters from the IBC process has also led to a sea-
change in the credit behaviour of borrowers. The IBC has shifted the balance of power to the creditor
from the borrower. It has instilled a significantly better sense of credit discipline. Today, there is a
sense of urgency and seriousness among defaulting borrowers because losing their asset is very much
a possibility if the resolution process fails.

It further appears that the intention of the legislature has been to not burden a stressed

company with tax levies, while it is undergoing reorganisation for survival.

There are various issues/questions being faced by corporates/ investors who embark on acquisition
of these assets. These could go a long way in providing certainty to the acquirer and support the overall
intention of timely, faster and efficient resolution of NPAs in India It also true that there will still be
some promoters that try to game the system, and hence steady streamlining of the process is
imperative (which if not done can otherwise lead to delay in the resolution process).
Even so, the following steps can be taken to avoid excessive delays.

46
1. It is hence essential that the new resolution period of 330 days is strictly adhered to. Courts
must avoid intervening routinely, unless key points of law need clarification. There are a few big-ticket
accounts for which resolution has not been finalised for over 400 days.
2. Lack of sufficient and qualified resources in terms of IPs, benches, judicial members, technical
members at NCLT — needs to be addressed. Currently, there are thousands of cases admitted by the
NCLT under IBC and over 2,000 registered insolvency professionals (IPs). But how many of these
individuals are equipped to manage affairs of the business, cash flows, labour disputes etc, is critical.
All in all, avoiding undue delays in the process, and limiting judicial overreach is imperative, if IBC is to
serve its intended purpose.

47
11. Is Artificial Intelligence “the worst event in the history of
civilization”?
Physicist Stephen Hawking said the emergence of artificial intelligence could be the “worst event in the
history of our civilization.”
“The emergence of artificial intelligence (AI) could be the worst event in the history of our civilization
unless society finds a way to control its development”: late Stephen Hawking. Hawking in 2017 talked
about the potential of AI to help undo damage done to the natural world, or eradicate poverty and
disease, with every aspect of society being “transformed. ”But he admitted the future was uncertain.
“Success in creating effective AI could be the biggest event in the history of our civilization. Or the
worst. We just don’t know. So we cannot know if we will be infinitely helped by AI, or ignored by it
and side-lined, or conceivably destroyed by it,” Hawking had said during the speech.
“Unless we learn how to prepare for, and avoid, the potential risks, AI could be the worst event in the
history of our civilization. It brings dangers, like powerful autonomous weapons, or new ways for the
few to oppress the many. It could bring great disruption to our economy”.

How it helps:
“Wouldn’t it be nice if you can just tell your phone - ‘Uber ride Crowne Plaza San Francisco’ - and then
the Uber app just gives you the car?” - said Dekang Lin, Naturali’s co-founder and chief technology
officer.
This is possible through bots which either classifies or predicts what’s going to happen. It has been
popularly termed as Artificial Intelligence.
There has been a significant development in the technology sector, which is a consequence of the
substantial improvement in the lifestyle of humans. The concept of artificial intelligence, termed
earlier as fiction, has now become a reality in our lives.
Artificial intelligence is a broad branch of computer science which are designed and programmed in
such a manner that they can think and act like a human. The goal of artificial intelligence is to create
systems that can function intelligently and independently. It has reduced human effort in many ways,
and its role can be observed significantly in our daily life.
In our day-to-day life, we come across different sets of data in different types of organisations. For
example, if you have lots of data for sales versus advertising spend, you can plot the data to see some
pattern.
If the machine can learn this pattern, then it can make predictions based on what it has learnt.
Machines can learn in many more dimensions – like hundreds or even thousands.

That is why machines can look of high dimensional data and can determine the patterns. Once it learns
these patterns it can make predictions, that human cannot even come close to. You can use all these
machine learning techniques to do one of two things – classification or prediction.
Machine learning accompanied with neural networksmimics the actual processes of the real neurons,
which allows machines to process complex data and provide accurate information through artificial
intelligence.
Understanding the scope of artificial intelligence, you can observe that artificial intelligence has
penetrated into our daily life. Nowadays in many organisations, humans are using this technology to
speed up the process of completing the work with a greater level of accuracy. The technique of
artificial intelligence has brought out the idea of error-free world, with reduced human effort and
faster results.

Following are some of the domains where artificial intelligence is having the greatest of impacts:
• Automated Transport System
Technological advancement termed artificial intelligence has helped the transport system to
automate the running of vehicles, popularly known as ‘self-driving cars’. The technology enables the

48
car to navigate cross-roads and avoid colliding with other vehicles. It has significantly helped in
reducing the number of accidents. In most cases, accidents are attributed to several factors which
include the influence of alcohol and drugs, over-speeding, and ignorance of road signs, which can be
reduced through self-driving cars. According to the Atlantic, researchers estimate that self-driving cars
could save 29,447 lives a year (taking number of fatalities in 2013 as the baseline).
For further reading on automated transport system, follow the following links:
• https://interestingengineering.com/the-25-ways-ai-can-revolutionize-transportation- from-
driverless-trains-to-smart-tracks
• https://www.lanner-america.com/blog/examples-artificial-intelligence-applications-
transportation/

• Bank and Financial System

Banks are using artificial intelligence in the field of financial operations, investment in stocks, manage
and organise statistical data, and finally help customers with quick solutions.
AI will help in detection of fraud, risk management, digitization and wealth management. Follow the
links for further reading and expanding knowledge of how AI is helping the banking industry (and the
leading AI companies):
• https://www.analyticsvidhya.com/blog/2017/04/5-ai-applications-in-banking-to- look-out-
for-in-next-5-years/
• https://www.livemint.com/AI/v0Nd6Xkv0nINDG4wQ2JOvK/Artificial-Intelli- gence-in-Indian-
banking-Challenges-and-op.html
• https://www.proschoolonline.com/blog/artificial-intelligence-changing-banking- sector/
• Medical Science or Healthcare
Artificial intelligence has changed the face of medical science by providing solutions to the diagnosis
of complex neurological disorders. From being a virtual healthcare assistant to schedule appointment
in hospitals, artificial intelligence has made sure that there is twenty-four or seven assistance to both
the doctors and patients.
For further reading, follow the links:
• https://novatiosolutions.com/10-common-applications-artificial-intelligence- healthcare/
• https://www.cabotsolutions.com/how-artificial-intelligence-is-changing-the- healthcare-
industry

• Product Industries and Organisations

The manufacturing companies are using artificial intelligence in the development of machines that
perform human activities. It has been in the production units, to have a consistent rate of production
with maximum efficiency and effectiveness. Artificial intelligence has brought about increased
production, since they can work consistently
without tiring and also due to the different roles they can be employed in. Additionally, it has also
been used to keep employees’ records, extract data which helps in decision making, and thus has
become part of the management system of the industries.
Hence, artificial intelligence has not only helped in enabling the processes of production industries to
complete their tasks in good time, but also has helped in enhancing business development.
Follow the links for further reading:
• https://www.themanufacturer.com/articles/power-artificial-intelligence-manufac- turing/
• https://cis-india.org/internet-governance/files/AIManufacturingandServices_Re-
port_02.pdf
• Professionals in hazardous environment
Artificial intelligence has developed an ecosystem where it has taken over some of the dangerous jobs
currently in the world such as defusing of bombs. In coming years, it will also provide benefit to the
labourers or professionals working under intense heat and noise. Thus, implementation of artificial
intelligence has helped considerably to provide protection and offer safety measures to humans.

49
Thus, we see that artificial intelligence impacts our day-to-day life ranging from healthcare system to
banks, from transport system to applications in jobs. It also has a wide area of applications in gaming,
air-transport systems, and computerised methods.
Application of Global positioning system (GPS) during travel; prediction of what we are going to type
and correcting it when wrongly-typed; identify and tag a person on social media; execution of tasks
through digital assistants like Cortana, Siri, Alexa; all form essential components of application of
artificial intelligence.
The development and invention of artificial intelligence have made a considerable impact on the
humans. Consequently, the advent of the next era of artificial intelligence also plays a partin war
prediction and hence eradication, proper means of fighting diseases and thus developing appropriate
preventive measures against it. It is predicted to help in fighting against poverty, which would be one
of the significant roles of artificial intelligence to be played in the coming days.
In conclusion, artificial intelligence has substantially improved and impacted people’s lives in different
ways, and the world is not the same as before. It has played an essential role in time-saving and done
wonders in the automation process. Evidently, artificial intelligence has dramatically influenced and
contributed to the people’s lives and industries. Saying that it may be the worst event in the history
of our civilization may not hold true at present!

50
12. The impact of Brexit on the Politics and Policies of the European
Union
Decoding Brexit
Brexit: (an abbreviation for the term “British exit”), explained simply as Great Britain leaving the
European Union (EU) as it was earlier part of the EU.

What is the European Union (EU)

The European Union is a club of 28 European Countries. Each of these countries pays to be a member
and in return, they get access to special ways of working together. This includes being part of a “single
market”, which means that countries can trade with one another and people can move around freely
– as if we were all living together in one big country.
The EU has its own parliament, laws and currency (the euro – although the UK doesn’t use this and
retained its currency). The EU was set up after World War 2 with the idea that if countries work
together, they are unlikely to go to war again.
Note: Britain had always maintained some distance from the EU. It joined the European Economic
Community (EEC) in 1973 and hence the EU in the 1990s. But Britain never fully accepted the
legitimacy of European control over British institutions in a way that other EU members did. It refused
to join the Schengen Area, which eliminates internal border controls and opted out of the common
currency Euro.

The referendum
A referendum was held in the UK on June 23rd 2016. Contrary to what the economists were predicting
(and hoping), the United Kingdom (UK) voted to leave the European Union (EU) by 52% to 48%. ‘Leave’
won the majority of votes in England and Wales, while every council in Scotland voted to remain in
the EU

Possible reasons for Britons deciding to leave EU:

● Financial: Each member nation of the EU pays an amount to the EU annually to continue their
membership. As regards the UK, the amount is around $12 billion dollars (£9 billion). This big annual
commitment was one possible reason for a ‘leave’ vote where the money can be spent for domestic
purposes
● Immigration: One of the many principles laid out while forming the EU was that of being free
members where people can freely move and live in another EU nation without the hurdles of getting
a visa. It is believed that almost 1 million people have moved to the UK due to the free labour laws.
Britain also gives child benefits and it is believed that many of these migrants are transferring that
money to their children who aren’t living in the UK.
● Control & Autonomy: the European Parliament decides on many rules and standards that EU
countries have to follow and critics felt that UK was losing control of our own affairs and laws.
In essence, it was about autonomy, monetary benefits, & immigration that got 52% of the Britons
voting to leave the EU.

Immediate impact in 2016:

The referendum results did not mean Britain’s exit by default. This marked the beginning of the end
of Britain’s membership of the EU. In the coming months, British and European leaders negotiated the
terms of Britain's departure. The EU got itself one more crisis to deal with. As if the Greek crisis, the
mass migration and the slow economic growth were not enough.

2017 was in the news for the two kinds of Brexits: a ‘hard Brexit’ or a ‘soft Brexit’.
Two options were floated since the Brexit referendum - a ‘hard Brexit’ or a ‘soft Brexit’.

51
The two different terms essentially refer to the kind of relationship and level of participation the
country will have with the EU’s Single Market – the free movement of people, goods and services –
and the Customs Union – the bloc’s trade and tax agreement.

A soft Brexitis generally more favoured by Remain supporters – second to no Brexit, of course – and a
hard Brexit is typically more likely to be supported by those who voted Leave.

Key elements of a soft Brexit:

It would keep the UK closely aligned with the EU. The UK could gain special access to the single market
but might have to, in return, compromise on immigration agreements. It aims to minimise the impact
on trade and businesses by essentially staying in the customs union. The result would be that the UK
would still be bound by some of the rules of the bloc, but it would have less of a say in how the rules
are made. And it would be harder for the UK to sign its own new trade deals.

Key elements of a hard Brexit:

It essentially means taking the UK completely out of the EU – including both the single market and the
customs union, so it is free from its regulations and tariffs. It would give the UK more control over
its borders and immigration. It would mean leaving both the single market and the customs union and
accepting the (possibly) short-term disruption that would cause in order to have the freedom to
operate independently. It could cause more economic damage to both the UK and the EU but
supporters think this would be worth it for the country to be able to then draw up its independent
trade agreements.

Ground Already Covered till 2018: The vote was just the start. The discussions have been mainly over
the "divorce" deal, which sets out exactly how the UK leaves - not what will happen afterwards.
This deal is known as the withdrawal agreement which covers some of these key points:
● How much money the UK will have to pay the EU in order to break the partnership
● What will happen to UK citizens living elsewhere in the EU, and equally, what will happen to
EU citizens living in the UK
● How to avoid the return of a physical border between Northern Ireland and the Republic of
Ireland when it becomes the frontier between the UK and the EU
● A length of time, called the transition period, has been agreed to allow the UK and EU to make
a trade deal and to give businesses the time to adjust

What happens next afterBoris Johnson's re-election in 2019?

Boris Johnson's got re-elected on the slogan of "get Brexit done".
His victory in the 2019 general election means we the UK is likely to be officially out of the EU at the
end of January 2020.
Boris Johnson plans to ratify his withdrawal agreement through Parliament to make sure that the UK
leaves the EU by January 31, 2020.
MPs will be carrying out detailed scrutiny of the Withdrawal Agreement Bill - the legal mechanism for
translating the Prime Minister's Brexit deal into law. They need to go through a committee stage, 'third
reading' and the House of Lords before it receives Royal Assent before January 31, 2020.

Is 1 February 2020 the end?

That is because the deal contains a hard deadline of just 11 months, 31 December 2020, to secure a
Free Trade Agreement with the EU.
Most experts including EU chief Michel Barnier say that is simply not possible.
If that deadline is not extended, UK could be facing a no-deal Brexit on 1 January 2021 when the
'transition period' ends.

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What is a no-deal Brexit?
In a no-deal scenario, the UK would immediately leave the European Union (EU) with no agreement
about the "divorce" process.
Overnight, the UK would leave the single market and customs union - arrangements designed to help
trade between EU members by eliminating checks and tariffs (taxes on imports).

‘No deal’ also means immediately leaving EU institutions such as the European Court of Justice and
Europol, its law enforcement body. Membership of dozens of EU bodies that govern rules on
everything from medicines to trade marks would end. And the UK would no longer contribute to the
EU budget - currently about £9bn a year.

In conclusion, Boris Johnson's majority may have bought him some time, but the potential nightmare
of a no-deal Brexit still looms.

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13. Umbrella Revolution in Hong Kong
“I tried to purchase umbrellas and I just can’t” on those platforms, said Kelvin Yeung, a 22-year- old
university student who has participated in about half of the marches this summer. “I cannot put it into
my basket if the destination is Hong Kong.”

The story:
Hong Kong, one of the world’s most important financial hubs, has exploded into protest. The so-called
“umbrella revolution” has turned the city’s gleaming central business district into a virtual conflict
zone, replete with shouting mobs, police in riot gear, and clouds of tear gas. Tens of thousands of
Hong Kong residents – young and old, rich and poor
– have peacefully occupied major thoroughfares across the city, shuttering businesses and bringing
traffic to a halt. They claim that Beijing reneged on an agreement to grant them open elections by
2017, and demand “true universal suffrage”. Neither side seems prepared to back off, and nobody
knows how the standoff will end.

“Free Hong Kong! Democracy Now!” they chanted.

History:
Demonstrators brought Hong Kong to a virtual standstill in 2014 when they demanded the right for
the territory to pick its own leaders.
For many years, Hong Kong was run by the UK as a part of the former British Empire. That was until
1997, when control of the city was handed over to China.
But a special agreement with China - called “one country, two systems” - was created to make sure
that Hong Kong had some independence from China.
The protests started in reaction to a decision made by China that it would allow elections in Hong Kong
in 2017, but only from a list of candidates pre-approved by the Chinese government.
Tens of thousands of people, of whom many were students, camped in the streets and demanded the
right to fully free leadership elections.
It was called “the Umbrella Movement” because protesters used umbrellas to protect themselves
from the tear gas used by police.

“The umbrella has been a symbol since the 2014 Umbrella Movement, and we use it to protect
ourselves. But it gives us power. We stand at the back, but we can donate it to the front. We pass the
power to them.” - Elsa Chan, 30, retail marketing

How this happened

Hong Kong, a former British colony of 7 million people, has been governed under a “one country, two
systems” framework since it was handed back to Chinese control in 1997. The principle is simple in
theory — Beijing is responsible for the city’s defence and foreign affairs; Hong Kong enjoys limited
self-governance and civil liberties, including an independent judiciary and unrestricted press.
Its top political post – that of chief executive – is chosen by a “nominating committee” of 1,200 people,
most of them from pro-Beijing elites. Yet when Beijing regained control over the city, it promised that
the region would be able to elect its top leader by universal suffrage by 2017. The group guiding the
current protests threatened to paralyse the city’s central business district if Beijing broke its word.

Nobody knew when, or if, the protest would occur, but in August Beijing passed a reform framework
to stipulate universal suffrage on its own terms – only two or three committee- vetted candidates who
“love the country” would be allowed to run. Activists considered this the last straw. Students began a
class boycott and, galvanised by a city-wide surge in support, staged a large-scale protest outside of
the city government headquarters.

54
Current Protests
In June 2019 new protests were sparked in Hong Kong against a law that could have seen its citizens
tried, or taken to court, for political crimes in China.
Although the law was scrapped the protests continued over issues like democracy and human rights
in Hong Kong.
Benny Tai, a leading activist who was put in prison for his role in the Umbrella movement, says the
campaign switched young people on to protest.
Though the original Umbrella protests died down the action inspired many people in Hong Kong to
take to the streets to protest in ways we have seen once again in recent months.

Call for Democracy

Three months of million-strong peaceful marches and violent clashes with police finally forced the
government to withdraw the legislation recently.
Yet, the fight rages on for an independent inquiry into alleged police brutality in suppressing the
protests, a blanket amnesty for all those charged with offences stemming from participating in
demonstrations, and a retraction of a police claim that protesters are guilty of rioting - a charge that
carries a heavy prison sentence.
Most important of all, the protesters are pressing for a full democracy, as they did during the Umbrella
Movement.
While that movement’s lifeblood was predominantly university students, who stood their ground,
literally, in thousands of tents for months, the current campaign has been more agile and diffuse.
Instead of choking downtown, it has spread to many neighbourhoods all over the city.

“The Umbrella Movement has taught them many lessons, including the importance of solidarity and
how to keep the society vibrant by allowing a wide spectrum of people to participate,” Dixon Ming
Sing, an associate professor at the University of Science and Technology, who investigates comparative
political culture, told Al Jazeera.

Frequent skirmishes between the police and the protesters have also exposed the failings of Hong
Kong’s leaders, who remain in power solely on Beijing’s blessing rather than the people’s consent.
Moreover, widespread outrage against police brutality and sympathy for the mostly peaceful
protesters has helped sustain - and even broaden - public support for the current fight. Michelle Tsang,
52, wiped off tears as she talked about how young protesters are being smeared by the authorities as
rioters.

“I didn’t know any better back then,” said Tsang. “But this fight is worth fighting.”

The future of ‘One Country, Two Systems’

The Chinese president, Xi Jinping, urged Taiwan to “reunite” with mainland China under a Hong Kong-
style “one country, two systems” framework. His words left many analysts scratching their heads. Why
invoke the system’s virtues when it’s supposed beneficiaries are in the middle of an unprecedented
revolt? Taiwan’s democratic leadership rejected Xi’s comments, saying that “our government has no
way of accepting them”.
This week’s protests may be the most chaotic scenes Hong Kong has experienced since a violent, anti-
British riot racked the city in 1967 – and many residents are taking it as evidence that the “one country,
two systems” framework is fundamentally flawed, a recipe for political gridlock and social unrest.
Regardless of the protest’s outcome, Beijing has almost certainly already lost one of its most valuable
assets in the southern city: the trust of its residents.

“The umbrella is very useful in those protests, protecting the people behind you, and absolutely, it’s a
symbol.” —K, 24

55
Reference Links:
https://www.theguardian.com/world/2014/sep/30/-sp-hong-kong-umbrella-revolution-pro-
democracy-protests
https://www.aljazeera.com/news/2019/12/modi-summons-ministers-india-protests-death- toll-
increases-191221063611978.html
https://www.bloomberg.com/graphics/2019-hong-kong-protesters-umbrellas/
https://www.bbc.co.uk/newsround/49862757 https://www.diggitmagazine.com/papers/social-
movements-digital-age https://en.wikipedia.org/wiki/2019_Hong_Kong_protests

56
14. Demonetisation and GST: What India Gained and Lost
The Goods and Services Tax or GST came into effect on the 1st of July 2017. The aim of introducing
the tax was to replace all the existing indirect taxes with a single comprehensive tax. Through GST, all
indirect taxes such as central excise tax, service tax, VAT and entertainment tax were consolidated.
This major step has helped the citizens of India to file their taxes easily without the hassles they faced
earlier.
What is GST? - Goods and Services Tax is levied on the manufacturing and sales of goods and services
across the country. The tax is charged at every stage of the manufacturing process. GST is applicable
for both the customer and the manufacturer. It is a destination- based tax. This means that GST is to
be collected at the point of consumption. So, if a product is manufactured in Bihar and is sold in
Bhopal, the tax will be levied in Bhopal. Moreover, at every stage of the manufacturing process where
value is added to the product, GST is collected.
The types of GST are as follows:
CGST (Central Goods and Services Tax): The tax is collected by the central government on the
intrastate sale of goods and services. SGST (State Goods and Services Tax): The state government
collects this tax based on the intrastate supply of services and products. IGST (Integrated Goods and
Services Tax): The tax is charged on the supply of products and services between two states. The
taxes are shared between the central and state governments.
Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever
there is a change of national currency: the current form or forms of money is pulled from circulation
and retired, often to be replaced with new notes or coins.
On 8th November 2016, the Government of India announced the demonetisation of all ₹500 and
₹1000 banknotes of the Mahatma Gandhi Series. These notes accounted for 86 per cent of the total
value of the currency with the public. It also announced the issuance of new
₹500 and ₹2000 banknotes in exchange for the demonetised banknotes. The objectives behind
demonetization are:
– to destroy fake currency and fight tax evasion
– to do away with black money and thus reduce corruption
– to reduce the excess cash circulation outside the formal economic system
– to reduce Inflation and to promote a cashless economy

Three years after the country was wiped out of old currency, the effects of Narendra Modi’s
demonetization can still be felt in the economy. Some of the pros and cons of both demonetisation
and GST are as follows:

Effects of Demonetisation and GST

• Effects of demonetisation:
1. Demonetization and Personal Finance: Piggybanks have been transformed to savings accounts
as people turn towards increasing bank balances instead of stashing emergency cash in different
corners of the house. People finally began to trust the digital payment systems; because that was the
only option they were left with. Demonetization proved that Indians can strive and adapt to any
changes and made people financially aware about the different spending options. The government’s
efforts to revamp the currency system provided people with a boost to use the cash that was lying
around and invest it in a more productive way. The more native and conservative people also opened
up towards the era of plastic cash and made several Indians tech friendly.
2. Demonetization and Black Money: One of the most important points that pushed people to
support demonetization was its associating with bringing an end to the black money problem in India.
However, almost 99% of the money was deposited back to RBI. The statistics revealed that either the
hoarders found a way to legitimize their black money or did not hold them in the form of cash. But
this was known by many before the RBI reports as well. Black money hoarders do not hold the money

57
in cash according to several finance experts and when this point was highlighted time and again, other
important effects of demonetization were publicized by the government, like the role of
demonetization on curbing terrorism.
3. Demonetization and Terror Funding: The second reason to support demonetization was its
role in curbing terrorism by increasing the obstacles in terror funding. Terrorist organization were
known to use fake Indian currency notes for funding their projects and the government believed that
this could be contained with the help of demonetization. The Income Tax department seized Rs.
474.37 crore in new and old currency from November 9, 2016 to January 4, 2017 (the demonetization
period). However, there are no reports if the money seized had any association with terror funding.
In spite of these numbers, there is no doubting that the cash reserves of several terror groups were
severely hit in the early days of demonetization.
4. Digitisation: The government pushed for a less-cash society by increasing infrastructure to
allow digital payments. In most of the tier-II and tier-III towns, digital payments had doubled since
demonetisation. From global tech giants such as Google, WhatsApp, to few of the country's biggest
mobile wallets, including Paytm, MobiKwik all adopted the digital payments system around the time
demonetisation took place. Till December 2018, UPI managed transactions of more than Rs 1.02
trillion. National electronic funds transfer (NEFT) transactions saw an upsurge from Rs 9.88 trillion.
Mobile banking payments also saw a spike since September 2015. All the digital transactions
collectively registered an increase of 440 per cent since demonetisation.
5. Demonetization and Tax Payments: Pushing Indians to deposit and account the cash lying in
their house also meant a rise in the tax payments for the country. According to government reports
the income tax payers saw a record increase in the post demonetization era. 9.1 million New taxpayers
were added to the slab which was an 80% rise over the typical yearly rise. This increase in the number
of tax paying citizens in the country has been credited to demonetization. This increase was also
resonated in IT returns filing and advance tax payment.
6. Demonetization and GDP: The ban on old notes is being cited as one of the key contributors
to the economic slowdown. With the gross domestic product (GDP) for the April-June quarter slipping
to 5.7%, the reality of the economic slowdown could not be ignored. The World Bank has reduced the
India GDP growth forecast to 7% for 2017-18 owing to demonetization and GST (Goods and Service
tax). The slowdown is being cited as a delayed consequence of demonetization by the World Bank and
while there are various other reasons at play, the steep decline has been credited to be an effect of
demonetization.
7. Demonetization and MSMEs: Demonetization had a lasting effect on Indians MSMEs
(Medium, Small and Micro Enterprises). Various medium and small enterprises turned towards
digitalization, however, the micro industries were affected by the worst of its wrath. The micro
industry owners were not a part of the black economy and they were clearly unprepared for the
effects of demonetization. Many micro industry workers returned back to villages and the growth rate
of these companies went as low as 1%. The MSME sector has been recovering from the drastic changes
and its impact on the revenue, but demonetization forced the MSME sector to be friendlier and more
accommodating towards the digital arenas and made them more accommodating towards change.

While these are some of the effects of demonetization on the national and economic front,
demonetization gave individuals several lessons that have changed the way we look at managing
finances. Demonetization made sure that we monetize our earnings to get the best returns possible
whether it is by turning to monthly investment schemes to save better or by turning our safe cash pile
into an easy withdrawal FD (fixed deposit). The government’s revenue will see an increase because of
demonetization and its initial effects are already prevalent in the income tax filings post note ban.
Demonetization has played a crucial role in bringing digitalization and financial planning into the
forefront for many. India has withstood the immediate chaotic impacts of demonetization and it is
evident that the returns of the hardships will begin to show in the coming months.

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• Effect of GST on the Indian economy: The implementation of GST has significantly affected the
Indian economy in the following ways:
1. Simplification of the tax structure: GST has simplified the taxation system of the country. As
GST is a single tax, calculating taxes at the multiple stages of the supply chain has become easier.
Through this, both customers and manufacturers get a clear idea of the amount of tax they are
charged and its basis. Further, hassles of handling tax officials and authorities can also be avoided.

2. Fostering production: As per the Indian retail industry, the total tax component is around 30%
of the product cost. Due to the impact of GST, the taxes have gone down. So, the end consumer has
to pay lesser taxes. The reduced burden of taxes has enhanced the production and growth of the retail
and other industries.
3. SME support: Small and medium enterprises can now register under the Composition Scheme
introduced by GST. Through this scheme, they pay taxes according to their annual turnover. Therefore,
businesses having an annual turnover of Rs. 1.5 crores only have to pay 1% GST. Moreover, other
enterprises having a turnover of Rs. 50 lakh are required to pay 6% as GST.
4. Enhanced pan India operations: Companies can now avoid taxation roadblocks, such as toll
plazas and check posts. Earlier, these created problems, including damage to unpreserved products
while transporting them. So, manufacturers had to keep buffer stock to make up for the damages.
These overhead costs of storing and warehousing hampered their profit. A single taxation system has
reduced these problems. They can now transport their goods easily across India. This has resulted in
the improvement of their pan India operations.
5. Increase in exports: GST has reduced the customs duty on exporting goods. The cost of
production in the local markets has also decreased due to GST. All these factors have increased the
rate of exports in the country. Companies have become more competitive when it comes to expanding
their businesses globally.
The introduction of GST has helped merge the taxes of the state and central governments. This has
helped remove the cascading effect of multiple taxes. Therefore, the burden of taxes has reduced for
companies and customers. Not just this, taxpayers have increased in number and hence, the tax
revenues have also increased significantly. The overall taxation system is now easier to administer.
Moreover, small- and medium-sized enterprises are able to enhance their businesses. It is expected
that GST will help more Indian organisations to establish themselves in the international markets.

Demonetisation and GST impacted the Indian Economy adversely.

Demonetization has been one of the most criticized moves by PM Modi and everyone from former
Prime Minister Manmohan Singh to former RBI Governor Raghuram Rajan has condemned this move
and its effects on the Indian economy. From slowing down the economic growth in various sectors to
giving people nightmares of the long queues and the inability to spend liquid cash freely, the
hullabaloo created by demonetization is remembered by one and all. Demonetization was initiated
with a wide array of motives like stripping the Indian economy of its black money, push people to pay
taxes for the unaccounted pile of cash, curb terrorism, promote the digital India movement and make
India a cashless economy.

In the months that followed, even as reports suggested that the government had not come any close
to achieving its stated objectives, the government was seen patting itself on the back for the country’s
move towards becoming a ‘cashless’ economy, or, as the PM said, a ‘less-cash’ economy. Many called
this an act of ‘moving goal posts’ and rushed to label demonetisation as an economic nightmare. Three
years later, we have enough data to analyse and gauge the impact of the note-ban exercise on various
important sectors of the economy.
1. Jobs: According to Labour Bureau's Sixth Annual Employment-Unemployment Survey, the
unemployment rate rose to a four-year high in 2016-17, when the government demonetised old
currency notes. In 2017-18, the country's unemployment rate stood at a 45-year-high of 6.1 per cent,

59
according to the National Sample Survey Office's (NSSO's) periodic labour force survey (PLFS).
Moreover, demonetisation caused a 2-3-percentage-point reduction in jobs and national economic
activity in November and December 2016, according to a research. Between 2016 and 2018, five
million people lost their jobs and the labour force participation started declining suddenly between
September and December 2016 for both urban and rural men. The rate of decline slowed down by the
second half of 2017, but the general trend had continued and there had been no recovery.
2. Income taxpayers: As many as 8.80 million taxpayers did not file tax returns in the financial
year 2016-17 - the year Modi government demonetised high-value currency notes. Records accessed
by The Indian Express reveal a massive spike in the number of “stop filers” in the same year, reversing
a four-year trend. In 2016-17, the number of stop filers jumped 10-fold to 8.80 million from 856,000
in 2015-16, the highest increase since 2000-2001. During 2017-18, there was some positive impact of
demonetisation on the widening of the tax base. The Income Tax department said it added 1.07 crore
new taxpayers while the number of dropped filers' came down to 25.22 lakh. The Central Board of
Direct Taxes (CBDT) said 6.87 crore Income Tax Returns (ITRs) were filed during FY 2017-18 as
compared to 5.48 crore ITRs filed during FY 2016-17, translating into a growth of 25 per cent. Also,
during FY 2017-18, the number of new ITR filers increased to 1.07 crore as compared to 86.16 lakh
new ITR filers added during FY 2016-17.
3. Real Estate: The total number of developers in the top nine Indian cities shrunk by over 50 per
cent by 2017-18. While Gurugram witnessed a decline of 76.8 percent in the number of developers
from 82 in 2011-12 to 19 in 2017-18, Noida registered a plunge of 73.2 percent – from 41 to 11.
Financial distress of small developers, lack of execution capability and over-supply of inventory played
a key role in the down- turn. According to analysts, a large number of fly-by-night developers were
forced to leave the market after demonetisation. All major cities with significant potential for real
estate development – Mumbai, Pune, Thane, Kolkata, Bengaluru and Hyderabad
– saw a decline in the number of developers.
4. Farm income and wages: Both farmers’ incomes from crop cultivation as well as wages of farm
labourers contracted in 2016-17 despite the above-normal monsoon season. On the positive side in
agriculture as a whole, output from fishing and livestock grew the fastest in 2016-17. The growth was
nearly 10 per cent over the previous year. In a period of low supply of cash, input suppliers demanded
higher prices. Demonetisation was carried out briefly after the harvest of the kharif season entered
the markets, and when the entire rabi output was yet on the fields. On the other hand, agriculture
had grown (gross value added) the fastest since 2012 in the demonetisation year due to a bumper
crop.
5. Factory investment: In the year when the demonetisation was implemented, investment in
the country’s factories contracted 10.3 per cent over 2016-17, showing their worst performance since
2002-03. In the year immediately after the note ban exercise, even as factories in the organised sector
witnessed job growth and wage rise consistent with previous years, their ability to channel funds in
productive capital was severely dented in 2017-18.
6. Spending on milk and milk products: In 2017-18, the amount spent on milk and milk products
(M&MP) dropped 10 per cent. Households, hotels, and halwai shops spent Rs 6 trillion on M&MP in
2016-17, consumption expenditure reduced to Rs 5.4 trillion in 2017-18, the data released by the
National Statistical Office (NSO) showed.
7. Digitisation: Pushing India towards becoming a cashless economy was another reason that
demonetization was publicized for. People turned towards digital transactions for everything from
buying groceries from a road side vendor to paying utility bills during the time of demonetization.
However, as the flow of cash into the economy began to increase, the use of these apps and digital
wallets saw a slide once again.
8. Has growth been impacted by de-monetisation? Yes. By any measure, the PM's decision was
incomprehensible and, in view of its adverse effects revealed subsequently by the Economic Survey
2016-17, the annual report of the Reserve Bank and other reliable sources, demonetisation turned
out to be a monumental failure. The PM had three objectives in mind: flushing out fake currency,

60
attacking terrorism and, most importantly, flooding out black money. None of these was fulfilled. For
instance, as the RBI revealed, fake currency worth only Rs 41 crore was found out. This was
contradictory to the estimates of about Rs 4-5 lakh crore given by Mukul Rohatgi, the then Attorney
General, in the Supreme Court on November 23, 2016.Terrorist activities are far from controlled, let
alone eliminated.
9. Demonetisation did not hit illicit wealth held as real estate, shares, gold, silver and foreign
currency. In addition to this, there have been allegations that the information had been leaked to BJP
units and ‘friends of BJP’ prior to its public announcement.
10. The hardships caused by a shortage of new legal tender, and the rush to deposit old 500 and
1,000 rupee (Rs 15.28 lakh crore) notes in bank accounts before the Dec. 31 deadline, took a heavy
toll. More than 100 people died in bank and ATM queues, although it's impossible to confirm if the
deaths from heart failure or exhaustion were directly a result of demonetization. This chaos continued
for six to seven months. But soon the people were to be disillusioned.
11. When 86 per cent of the total value of cash was withdrawn from circulation, the economy was
bound to suffer. Of the three main functions of money, the "transaction" function (others being
"precautionary" and "speculative") keeps the economy moving and growing, mainly through the
exchange of goods and services. The government issued Rs 2,000 currency notes. As per RBI data, on
March 17, of the total 10,029.3 crore currency notes, Rs 2,000 currency notes constituted only 3.3
per cent but they accounted for 52.2 per cent of the total value. These high denomination notes lacked
transaction value, which paralysed the mainly cash-dependent informal economy. De- monetisation
brought economic transaction and exchange to a standstill. This affected growth.
12. The RBI spent close to Rs 13,000 crore over the next two years to remonetise Indian money
market in post-demonetisation phase. New notes of Rs 500 and Rs 2,000 were introduced. The designs
were markedly different from the recalled ones. This escalated the cost of printing as it had several
new features.
13. About 80% of the informal economy - mainly comprising micro, small and a large part of
medium enterprises, small and medium traders, and through that, low-paid, contract workers - was
badly hit. This significantly affected employment. During January-April 2017, about 15 lakh jobs were
lost mainly due to demonetisation. The latest Economic Survey shows that in North India demand for
MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act, 2005) increased by 30%. The
government's promise of creating two crore jobs annually has withered away.
14. There is a clear impact on the services sector from the latest numbers. The services sector
grew by 6.8%, the slowest rate in 11 quarters. In terms of specific sub-segments within services,
'Finance, insurance, real estate and professional services' grew by a particularly low rate of 3.1%, the
lowest growth rate seen in this sub-segment since the start of the new series growth rates in 2012-
13.
15. Is de-monetisation the only factor playing on growth? It is the counterbalancing factors that
have kept the growth relatively buoyed. These are: (i) A strong agriculture season and (ii) Festive
season demand. Further, the growth in the government spending has also been quite substantial, in
fact, the highest ever at 19.9% in the new series, which explains the support to overall growth. So,
demonetisation would have had a worse impact were it not for these factors.
16. In March 2017, the RBI revealed that currency notes worth Rs 15.28 lakh crore or 99% of the
total 15.44 lakh crore was deposited in banks. Thus, the objective of attacking black money fell on its
face. In fact, as experts argue, black money constitutes about 25% of India's national income (GDP). If
this ratio is applied to the cash deposited in the banks (Rs 15.28 lakh crore), then, it turns out to be
about Rs 3.82 lakh crore. Thus, far from attacking black money, one may argue that demonetisation
allowed the culprits to convert Rs 3.82 lakh crore into "white" money.

61
The GST has been more positively viewed and the few negatives associated with it include:
1. Proposed GST Rate Is higher than VAT: The rate of GST is proposed to be larger than the
current VAT rate in India. Although VAT implies decreasing the prices in the long run, it will be of no
help in cutting down prices of commodities.
2. Dual Control: A business will be indirectly controlled by both the Centre and the State in all
tax-related cases. The State will lose autonomy to replace the tax rate which will be regulated by the
GST Council.
3. Certain Sectors Will Face a Negative Impact: Sectors that are currently enjoying no excise duty
or have enjoyed a lot of tax benefits will have to bear the brunt of a higher tax. These include Textile,
Media, Pharma, Dairy Products, IT/ITeS, and Telecom. The same goes for products. It is supposed that
the prices of the following commodities will increase – jewellery, mobile phones and credit cards.
4. Loss Incurred by the Manufacturing States: Since GST is commonly related to the
manufacturing segment, most manufacturing states may incur losses.

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15. Citizenship Amendment Act – What is at Stake?
Various parts of India have recently broken out in protest, ironically some for and some against the
CAA. There have been reports of violent clashes: protestors against the police; and social media is full
of debates concerning this act which has become the talk of the town. So what is this CAA and why is
it being opposed by a section and supported by a section of society at the same time??
The Citizenship amendment bill was firstly introduced in the LokSabha on 19th July 2016 as the
Citizenship Bill, 2016. On 12 August 2016, It was referred to the Joint Parliamentary Committee which
submitted its report on 7 January 2019. It was passed in the LokSabha on 8th January 2019 but it
lapsed with the dissolution of the 16th LokSabha. The bill was re-introduced in the Parliament as
Citizenship (Amendment) Bill, 2019. On 9 December 2019, Amit shah introduced the Bill in the
LokSabha and it was passed on 10th December 2019. At least 125 lawmakers voted in favour of the
bill and 99 against it. After a long hardship, the bill finally got the assent of President Ram Nath Kovind
on December 12, 2019 and it became the Citizenship Amendment Act 2019.
The CAA 2019 amends the Citizenship Act of 1995, which grants Indian Citizenship to persecuted
minorities such as Hindus, Sikhs, Parsis, Jains, Buddhists and Christian fleeing from Pakistan,
Bangladesh and Afghanistan. According to the previous act, any person who doesn’t have proper
documents would be termed as an illegal immigrant. But according to the new act, people of the
following religions from three countries will not be treated as an illegal immigrant: Hindus, Sikhs,
Buddhists, Jains, Parsis and Christians from Afghanistan, Bangladesh and Pakistan. The previous act
had provisions for people living in India to receive citizenship through naturalization. According to the
previous act a person must have lived in the country for 11 years preceding the application submission
of citizenship. This bill reduces that to 6 years. This act also states that registration of OCI (Overseas
Citizen of India) cardholders will be canceled if they violate any law.
The point to note is that Muslims are conspicuously not listed in this act till date, which has, in part
been a major reason for widespread protests against this act. People feel that the BJP is trying to push
its Hindutva agenda by isolating the Muslims and by trying to favour only refugees from other
religions, whereas the BJP has strongly defended its intentions by stating that Afghanistan, Bangladesh
and Pakistan are already Muslim majority countries and that the scope of persecution of Muslims itself
in these countries is negligible. This is one open weakness of the act that the government has not
successfully managed to defend as its logic is not consistent – the bill does not protect all religious
minorities, nor does it apply to all neighbours. The Ahmedia Muslim section and even Shias face
discrimination in Pakistan. Rohingya Muslims and Hindus face persecution in neighbouring Burma, and
Hindu and Christian Tamils in neighbouring SriLanka but all have been ignored against any benefits by
this bill. But also in its defense it can be noted that there has been a considerable reduction in the non
Muslim population of the aforementioned Islamic majority countries and that the bill is mainly aimed
at aiding those who are persecuted the most there.
The Northeast has been protesting for a slightly different reason as illegal immigration has been a
major issue here right from the beginning and the region has witnessed many agitations against illegal
immigrants for decades now. But, the biggest concern of people in Northeast is that the bill
undermines the effect of the Assam Accord signed in 1985 according to which, any person who can’t
prove their ancestor’s presence in India before March 24 1971 will be deemed as an illegal immigrant.
The Assam Accord didn’t discriminate on the basis of religion and it ended the 6-year long agitation
against illegal immigration in the state of Assam. However, the Citizenship Amendment Bill has tried
to change the definition of illegal immigrants and excluded religious minorities from the illegal
immigrant list and hence the majority of the northeast fears that its region will become a dumping
ground for foreign immigrants and threatens its language and culture. This fear is justified to an extent
but it is unfair on the part of the Northeasteners to refuse to accept immigrants solely on the basis of
such logic as many of them too have immigrated to all parts of India in search of better education and
job prospects.

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On the whole this cannot be seen just as a fulfilment of a poll agenda by the BJP, as the persecution
of minorities in India’s neighbouring countries is an often-ignored facet of reality which has to be
addressed immediately. But given the various logical gaps and loopholes the act contains in its current
form, it is up to the ruling party to either offer a plausible explanation for the formulation of the act
the way it is, or bring changes to inclusively benefit the aggrieved as a whole without a strong
undertone of discrimination, purportedly going against the values of India.

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16. Abrogation of Article 370
Theme: On 7th August 2019, President Ram Nath Kovind declared abrogation of Article 370 of the
Indian constitution after the resolution to revoke the article was passed by both the houses of the
parliament (Rajya Sabha & Lok Sabha).
What is article 370?
Article 370 is a temporary provision of the Indian constitution which grants special status to the state
of Jammu & Kashmir, under part XXI of the Constitution of India which deals with ‘Temporary,
Transitional and Special Provisions’. Article 370 is the only constitutional link between India and
Jammu & Kashmir.
Some major provisions of Article 370:
-According to this article, except for foreign affairs, defence, finance and communication, Indian
Parliament needs the approval of State Legislature for applying all other laws.
-The Union government cannot declare emergency in Jammu & Kashmir unless there is a case of war
or external aggression. In case of any internal disturbance or imminent danger, an emergency can be
applied only by the request of state government or by its approval.
-Citizens of J & K follow their own constitution and Indians of other states cannot buy property in J&K.
-In India, the residuary powers are vested with the Union Government but in case of Jammu &
Kashmir, the residuary powers are vested with the state government.
Benefits of removing Article 370:
-As per Article 370, people of other regions cannot buy land or settle in Jammu & Kashmir. This is
acting against the development of the region. By abolishing article 370, teachers, doctors and other
professionals can settle there bringing better facilities. And also industries can be set up in the region
and hence Jammu & Kashmir can be economically developed.
-By abolishing this article, the government can act tough against the terrorism present in the region.
-Many laws such as The prohibition of Child Marriage Act, women’s reservation were not applicable
to Jammu & Kashmir, because of the provisions of Article 370. Now, all laws of India will be applicable
to J&K also.
Disadvantages of removing Article 370:
-Citizens of Jammu & Kashmir are facing so much struggle because of many reasons such as the fight
between India and Pakistan, the constant presence of troops, unemployment crisis etc. So if the
special status is also removed, they may feel like their voice is suppressed.
-People of J&K have a feeling that settlers from other regions will change the demography of the
region. So, due to the abolition of article 370, they may protest against the central government.
Timeline:
-With 1954 Presidential Orders almost the entire constitution was extended to Jammu & Kashmir
including most of the Constitutional Amendments.
-Nehru said in Lok Sabha in 1963 that Article 370 has eroded.
-94 of 97 entries in the Union List are applicable to J&K; 26 out of 47 entries of the Concurrent List
have been extended. 260 of 395 Articles have been extended to the state, besides 7 of 12 Schedules.
-There is a provision in Article 370 that it can only be revoked by the consultation of the constituent
assembly of Jammu & Kashmir, but the constituent assembly dissolved itself in 1957. And since then
it has been a major issue in revoking Article 370.
Conclusion:
Repealing Article 370 to develop the region is a good and bold step by the government. This step will
help in integrating the Jammu & Kashmir region with the rest of India. But the way it was done is
against the democratic principles because the public or the state leaders are not consulted before
passing this bill. To prevent the negative consequences, the government should take effective steps
for the development of the region on a war footing. There is a need to improve employment
opportunities as promised. It is the responsibility of the government to make the people of Jammu &
Kashmir feel safe and secured.

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17. Bifurcation of Jammu & Kashmir
Context:
On 5th August 2019, the Indian government passed Jammu & Kashmir Reorganisation bill (2019),
which divided Jammu & Kashmir state into 2 union territories – Jammu & Kashmir (union territory
with state legislature), Ladakh (union territory without state legislature).

Benefits:
-Bifurcation can result in better governance, more efficient administration. It can also help in tackling
terrorism.
-Taking unilateral decisions is sometimes important because dialogue and all the other ways did not
work till now.
-When Jammu & Kashmir was one state, Ladakh felt alienated. Its ecological and cultural uniqueness
was not given enough importance and was often neglected because the culture of Ladakh and J&K are
very different. Thereby people of Ladakh are demanding the bifurcation from a long time. Ladakh’s
local leaders feel that their region was politically neglected by the administration at J&K. So,
bifurcating is a good decision. Moreover, tourism and film shootings faced obstacles due to the
militancy in J&K. Now as Ladakh is a separate UT, it can boost its economy.
-The Indian government announced that J&K will be turned into a state once the situation becomes
normal. So, we can consider the UT status of J&K as temporary.

Negative Side:
-Bifurcation of Jammu & Kashmir was done without consulting the people and local leaders of the
state. Moreover, there was a blackout of communication channels and media, so they had no
possibility of expressing their views. This sends a wrong message to the people and is against the
democratic principles of India. It is also against the federal principles, which guarantees rights to
states. Moreover, on the same day, Article 370 was revoked, so this may make local people feel like
they have no say in the decisions that impact them.
-This may set as a bad example for the succeeding governments. Downgrading the status of a state to
union territory can be taken as a precedent. For example, If the state government is ruled by a
different party from the center, and if center want to take control of the state, this incident can be
shown as example to do so.
-This step may be used by separatists to influence youngsters in acting against Indian government.
-Further division of Ladakh into 2 districts – Leh and Kargil on religious basis is facing criticism from
the local people. This move could have been avoided to preserve unity.

Challenges:
-Ladakh has already faced neglect from J&K. Now, it came directly under the center rule because it is
now a union territory. The main task before the central government is to bring the development in
Ladakh in the way the local people want. The ecologically sensitive areas should be prioritised before
taking up infrastructure projects. If their views are not taken into consideration, there will be no use
of making it as a UT.
-The big challenge before the Indian government is to bring a change in the perception of J&K people.
Elections should be conducted in J&K as soon as possible to make people of J&K feel that their state
is in their own hands and they have a say in the decisions that impact them.

Conclusion:
Dividing the Jammu & Kashmir state into 2 Union territories helps in better governance. Taking steps
to develop both the regions as soon as possible is the need of the hour.

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18. Union Budget – 2019-20
Theme:
On 5th July 2019, Finance Minister Nirmala Sitharaman presented union budget 2019.
Analysis:
-Education:
-This budget proposed a program named ‘Study in India‘. Through this program, the Indian
government makes an effort to bring in foreign students to pursue higher education in India. This is a
good step and has the potential to make India as a higher education hub. It can also speed up the
reforms in the education system.
-Rs. 400 crores were allotted to make top Indian institutes as world-class institutes.
-The present government has promised in this budget that it will bring the new ‘National Education
policy’, which is still in the draft stage.
-This budget proposed to set-up ‘National Research Foundation‘ to fund and promote research.
-Experts always recommended spending 6% of GDP on education. Even though the money allotted for
education has increased in this budget, the share of education in total budget is just 3.4%. At present
India needs reforms in education, so the funds allocation is disappointing.

Employment opportunities:
-This budget reduced the corporate tax of companies with a turnover of up to Rs.400 crores per annum
to 25%. Earlier only companies with turnover of up to Rs. 250 crores per annum have 25% corporate
tax. For other companies, it was 35%. With the fresh move, 99.3% of companies will pay only 25%
corporate tax. This is an encouragement to the MSME (Micro, Small & Medium Enterprises) sector.
And this step has the potential to create new employment opportunities in this sector.
-In this budget, the government announced easing of Angel tax regulations, which is a boon for
startups. Encouragement to startups will result in more employment opportunities.
-It was also announced that India will be transformed as the manufacturing hub of Electric Vehicles.
This too has the potential to create so many jobs.
-It was also mentioned that 100 new clusters will be set up in this financial year under SFRUTI (Scheme
of Fund for Regeneration of Traditional Industries) which will enable 50,000 artisans to join the
economic value chain.
-As a part of ‘Housing for All’ program, the government announced additional tax deduction of 1.5
lakh on purchase of homes below Rs.45 lakh that are bought till March 2020. This is a boon to the real
estate sector and has the potential to create lots of jobs in this sector.
-There was no mention of the unemployment crisis in the budget. Even though there are significant
steps to create new jobs, there are no bold steps to solve the unemployment crisis in India.

Agriculture:
-For the first time, the importance of promoting organic farming is recognized. This budget announced
that the government will promote ‘Zero Budget Natural Farming‘. This is a very progressive step and
will promote self-sustainable agriculture. This can result at the end of reliance on loans in agriculture.
But the government has not announced any funds for this, and without the government’s support, it
will be difficult for farmers to switch to this kind of farming. Moreover, on one side the government
has announced zero budget farming, and on the other side, fertilizer subsidy allocation has jumped
from Rs. 70,090 crore to Rs. 79,996 crore. This is contradictory and will make it more difficult for
farmers to switch to natural farming.
-Agricultural growth is declining over the past few years. And the government did not take any
significant steps to keep its promise of doubling the farmers’ income by 2022. Mere support schemes
like ‘Kisan Samman Nidhi Yojana’ cannot help farmers in the long run.
-It was also announced that new farmer producer organizations will be set up.

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-This budget promised to set up 80 Livelihood business incubators and 20 technology business
incubators under ASPIRE (A Scheme for Promotion of Innovation, Rural Industries and
Entrepreneurship) to develop agro-rural industries. This will greatly help startups that are based on
agriculture. And thereby will help in lifting agriculture out of the crisis.

MSME sector:
-It was proposed that the new e-commerce platform will be launched to sell products of Micro, Small
and Medium enterprises. This is very helpful for MSME sector.
-It was also announced that there will be 2% interest subvention for GST registered MSMEs. This will
encourage informal organizations to register and hence will help in formalization of the informal
economy.

Startups:
-Angel tax norms are eased, which is a boon for startups.
-A new TV program in Doordarshan was announced to promote startups and to help them in reaching
to investors.
-Global investors meet will be conducted in India, which will be super helpful for startups of India.

Environment:
-GST is reduced from 12% to 5% for Electric Vehicles (EV). And it was also announced that there will
1.5 lakhs worth tax exemption for interest paid on the purchase of e-vehicles. This is a very progressive
step and will help in faster adoption of electric vehicles. If the production of renewable energy is
increased to a great extent, electric vehicles will help in fighting against climate change.
-Along with this, the prices of petrol and diesel are increased, so more and more people may adopt
electric vehicles.

Women Empowerment: Every woman in SHG (Self Help Group) is eligible for an overdraft of Rs.5000
and one woman in every Self Help Group is eligible for loan up to 1 lakh rupees under Mudra Yojana.
This will help in encouraging women to take part in economic development and also helps women in
achieving financial independence.
-A new committee will be set up to suggest ways to encourage women to take part in economic
development. This is a good step and helps in achieving gender equality.

National Security:
Defence budget hasn’t changed. It is same as the interim budget – 3.19 lakh crore rupees. This is
disappointing because recently India has witnessed terror attacks, and terrorism is a growing threat.
So national security should have given more importance.

Impact on common people:

-Duties and cess on petrol and diesel were increased, so the effective price of petrol is increased by
Rs. 2 per litre. This affects common people.
-Moreover, the rise in fuel prices will result in higher transport costs and hence the prices of essential
commodities will go up. But on the other hand, the importance of connectivity is emphasized in this
budget and also steps were taken to develop infrastructure, so the transport costs may come down.
And as a result, this may cancel out the impact of the rise in fuel prices.
-As a part of ‘Housing for All‘ program, the government announced an additional tax deduction of 1.5
lakh on purchase of homes below Rs.45 lakh that are bought till March 2020. This will be very helpful
for middle-class people.
-‘One Nation – One Grid‘ will make power affordable.
-‘Har Ghar Jal’ was promised to make piped water supply accessible to all rural households by 2024
under the ‘Jal Jeevan Mission’ scheme.

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-The health sector is neglected, which will impact common people negatively.

Conclusion:-
Union budget 2019-20 did not take effective steps to tackle agricultural crisis and unemployment
issue, which are the major concerns in the present times. But it is very practical and did not announce
any short term beneficial schemes. It was made with a long-term vision and is focused on common
people.

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19. Electric vehicles in India
Theme:
-In the 5th meeting of NITI Aayog Governing council which took place in June 2019, NITI Aayog had
proposed that only electric vehicles will be sold in India from the year 2030.

The need for the transition to electric vehicles:

-Vehicular pollution is one of the major causes of air pollution. By switching to Electric vehicles, we
can solve this issue. As per the report by the government, with this move, carbon emissions will be
reduced by 37% by the year 2030. This will also help in our fight against climate change. As India is
committed to bringing down its share of global emission by 2030 as per the Paris climate agreement,
replacing diesel and petrol vehicles with electric vehicles will help us in achieving this goal.
-As the number of people who are buying vehicles is rising, the air quality will worsen further. So,
there is a need to address this challenge.
-As of 2019, India is importing crude oil for 82% of its oil requirement. By using electric vehicles, we
can reduce the dependence on other countries for oil imports.

Steps taken by the Indian government:

-To encourage consumers to buy electric vehicles, the Indian government removed the registration
fee for EVs from June 2019. It is also assigning green number plates for electric vehicles for using eco-
friendly option.
-Indian government plans to set up a number of charging stations in the near future. NITI Aayog has
also suggested starting E-highway project, which contains an overhead electricity network to
continuously supply electricity to the electric truck.

Challenges:
-Motivating common people to buy an electric vehicle is a challenge. At present, the cost of electric
vehicles is much higher than engine-powered vehicles. Making them affordable is a big task for the
government and automobile industries.
-Building infrastructure for charging stations is also another challenge for the Indian government.
-Even though the imports of crude oil will be reduced, we will have to depend on Li-ion imports for
batteries of EVs.
-The people who bought electric vehicles have issues with the speed and charging time, the efficiency
of batteries and driving range. To promote the sales of EVs, these things need to be addressed.
-Training people in using EVs is also another challenge.

Conclusion:
It’s a good thing to switch to EVs, as its an environment-friendly option, but the government should
ensure that the transition will be smooth.

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20. Doubling of Farmers’ Income by 2022 – How can India achieve
this?
Theme:
In Union budget 2017-18, the target was set to double the farmers’ income by 2022.

Why do we need to double farmers income?

-India is still an agriculture economy. Agriculture employs 50% of the Indian workforce but contributes
only 17-18% to the country’s GDP. Improvement in this sector would mean improvement in GDP.
-Due to low incomes, Indian farmers are in distress. India has witnessed 5 farmers protests (large scale)
in the last 2 years, with 4 of them in the year 2018 alone and suicide rates have also increased, every
30 minutes, an Indian farmer commits suicide.
-Indebtedness among farmers is at an all-time high.
-All the above problems are due to the fact that farmers haven constantly underpaid in India. For the
past 45 years, the Centre’s minimum support price (MSP) of wheat has risen 19 times during this
period, salaries in government jobs have increased 120-150 times. The 7th Pay Commission gives
employees 108 kinds of allowances; MSP calculations include none.

What should be done?

-The key motive should be to make the agricultural sector self-sufficient and wean it off government
crutches.
-Implementation of Swaminathan commission: National Commission on Farmers under the
chairmanship of Prof. M.S.Swaminathan submitted a report on farmers’ distress and their solutions in
October 2006. Government has failed to act on its recommendations.
-Improved cold storage facilities: Storage facilities are mostly absent or inadequate for farmers in
India, as a result, they have to sell their produce to avoid them from rotting or attack from insects and
pests. Due to this hurry, they end up selling their produce to middlemen at a price which was even
less than their investment.
-Instead of providing the farmers with loan waivers, the government should provide them cash, so
that it can be readily used, and if all goes well the farmer will be able to pay back the loan.
-Educating farmers: Farmers should be made aware of the modern agricultural practices, they should
be taught which crop will be suitable for them to grow according to the climate of their area, using
the internet and other digital apps etc. for weather prediction and factoring other variables too.
-FPOs: They are one of the best ways to improve the income of farmers. According to the Department
of Agriculture and Cooperation, the FPO has emerged as the “most appropriate institutional form
around which to mobilise farmers and build their capacity to collectively leverage their production and
marketing strength.”
-Technology-enabled solutions: Recently, technology has also reached out to our distressed farmers.
A host of apps have come into existence to free the farmers from their perils. Apps like Mandi
Tradeshave brought entrepreneurs’ attention towards the agriculture sector.
-Roping in the Corporates: Agriculture has long been a field left untouched by the private sector.
Perhaps, a model can be worked out where private sector entities can provide irrigation facilities at
subsidised rates to farmers, taking charge of particular regions.
-Proper implementation of government insurance schemes.
-Setting up organised market: In the absence of organised market and other facilities, the farmers
have to depend upon middlemen to dispose off their produce ASAP after their harvest as they have
to pay their debts, rents and meet other commitments. Most of the small farmers are forced to sell
their produce to the local moneylenders in the village itself at whatever price is offered to them. The
government needs to come up with an organized market structure for the farmers to improve their
conditions.

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21. #MeToo
What is #MeToo:
-‘Me too’ phrase was first used in 2006 by Tarana Burke, a social activist to raise awareness on sexual
assault. She chose this phrase because she regrets not saying ‘me too’, when a 13-year old told her
about the sexual abuse she faced.
-In 2017, #MeToo hashtag became famous when Alyssa Milano encouraged women to share their
sexual assalut ordeal, so that everyone will know the pervasiveness of sexual abuse in society.
-In 2018, #MeToo became trending after a Bollywood actress Tanushree Dutta alleged that Nana
Patekar sexually harassed her in 2009. And she stated that she had to quit her career due to this
incident.
-Tanushree Dutta inspired many and several women came out and named several sexual abusers
among celebrities. This movement strengthened when MJ Akbar was forced to resigned for the post
of Minister of State for External Affairs, when 16 women alleged that he has sexually harassed them.

Changes brought by #MeToo revolution:

-In many cultures, women are discouraged from speaking up against sexual harassment. In India, the
situation is even worse. The victim will be labelled as a sexual harassment victim throughout her life.
She has to face victim shaming too. #MeToo movement improved this situation. Now, women are
encouraged to speak up.
-Many women who are facing sexual abuse now know that they are not the only victims. Often victims
are manipulated to such an extent that it is their fault to go through sexual abuse. And they are made
to believe that it is better to be silent than to speak up and being labelled. Hearing these personal
stories gives them strength to come out and to complain against the sexual abuser. Many people now
know that being a victim of sexual abuse is not something to be ashamed of.
-Those who have power now think twice to use their power in a wrong way.
-Though very few, men are also sharing their sexual abuse experiences. ‘Adhyayan Suman vs Kangana
Ranaut‘ case is an example of this. It is very important to spread awareness in society that men can
also be victims of abuse.
-Many victims were silenced before as their abusers have power. Now, they are listened and
understood. This is a bug step towards their healing considering the intense mental trauma sexual
assault survivors go through. This can be evident in ‘Vinta Nanda vs AlokNath’ case. She wasn’t
believed when she told her story 19 years back.
-In many cases, though victims followed legal procedure and filed a complaint, these incidents were
not revealed to public and hence abusers continued living their life normally despite committing the
crime. Whereas victims were further harassed to withdraw the complaint. Now with the power of
social media, almost everyone is not willing to work with proven sexual offenders.
-‘National Commission for Women’ (NCW) dedicated a separate email id – [email protected].
Sexual abuse victims can send a formal written complaints to this email id.

Negative side:
-Using #MeToo movement, some people are making false allegations and maligning the reputation of
innocent people to take revenge or for other selfish motives. There are limitations to freedom of
speech. People cannot just make baseless allegations on anyone. Some were not even proceeding
legally, they are just telling in social media and are staying silent. People who accuse someone have
onus on them to take part in trial if the opposite person do not accept their side of the story. Without
it, every man is at threat of being framed as a sexual abuser.
-Some people are anonymously sharing their stories and naming the offenders. This may turn into a
dangerous phenomenon anyone can malign someone else’s reputation without even revealing their
identity.

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-Recently POSCO (Protection of Children from Sexual Offences) act included boys too. But In India,
there are no laws for male sexual abuse victims if they are adults. This is very discriminatory towards
one gender.
-These cases will undergo trail in courts for years. The overburdened Indian courts may not be able to
do justice to the victims legally. On top of that, there may not be any proofs in these type of crimes.
-As of now, only celebrities are utilising the MeToo movement. Common people are still silent and are
scared of victim shaming.
-Still some people are blaming the victim, and questioning their choices of work, clothes etc. Some are
assassinating the character of victim.
-After Nirbhaya incident, nothing has changed. #MeToo may also become like that.
-Several movie personalities are following double standards. On one side they are supporting Me Too
movement, and on another side they do item songs which depict women as an object of sexual desire.

What needs to be done:

-Proven sexual offenders should be punished as soon as possible to send a positive message in society.
-Several Me Too stories are about child sexual abuse. Many didn’t even realize what was happening
at the time of incident as they were minors then. So many children across the world are facing sexual
abuse. This was once again reminded the importance of giving awareness to children on sexual
assaults. Parents should teach their children to openly communicate with them.
-The underlying cause of violence on women is that men and women are taught from a very young
age that the men are the stronger one and should be so. This puts immense pressure on young boys
to be dominant and follows the wrong theory of masculinity. Many young boys think women are of
less value. In many families of India, male member will be the head of the family. This also teaches
them that they have this entitlement. It is very important teach the issue of gender equality to young
children.
-There should be punishment for those who make false allegations. But it will be very difficult because
proving it as a false allegation is also tough.

Conclusion :
#MeToo movement brought a positive change in society. It is very tough for women to speak about
the sexual abuse they gone through. Most of the victims suffer the mental trauma throughout their
lives. This encourages the offenders to commit crimes repeatedly. Me Too has changed this situation
for the better. It encouraged victims to speak up and to heal in the process. It also made sexual
offenders regret their actions, because now victims are speaking up. Though some people are misusing
the movement, this can be solved with a proper legal procedure.

The main success of Me Too movement is that it taught many people that it’s not their fault to be a
sexual abuse victim. This movement started shaming offenders instead of victims. Many people now
do not want to be associated with the proven sexual offenders. It is a big step towards reducing
violence against women. Behavioural change is needed to further reduce these kind of crimes.

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22. 5 years of Modi Government
Theme :
In the months of April & May 2019, General elections are going to be conducted. And hence everyone
is discussing about the 5 years of Modi government.

Things that deserve applause:

-Modi government is very active unlike the previous governments which were lethargic. This
government took steps to improve the interaction between government and public. It is active in
social media as well. As a result of these steps, grievance redressal and the transparency of the
government have improved.
-‘Swachh Bharat’, which was launched in 2014 highlighted the need for cleanliness. Under this mission,
government constructed 10 crore toilets as of 2018 and 5 lakh villages are declared as open defecation
free. Now, many people are taking steps to keep their surroundings clean.
-Modi government has brought the biggest tax reform since independence – Goods & Services Tax
(GST) in July 2017. Though the GST revenue is below the estimated revenue, it is increasing. In the
year 2018-19, the average gross collection has been Rs 97,555 crore as compared to Rs 89,885 crore
in the previous year.
-Despite implementing biggest change of tax reform (GST), inflation was kept under control, which is
not an easy task.
-Modi government has brought ‘Insolvency & Bankruptcy Code (IBC)‘ in 2016 to recover Non-
Performing Assets (NPAs). This is highly successful as it helped in recovering 3 lakh crore rupees of
NPAs.
-As a part of “Make in India” initiative which was launched in 2014, government took steps to improve
the ease of doing business in India. It reduced a lot of paper work and removed bottlenecks in starting
and maintaining businesses in India. As a consequence of this, India is ranked 77th out of 190
economies in the ‘Ease of doing business index’ – 2018. In 2014, when Modi government assumed
power, India’s rank in the ease of doing business was 134. And among South Asian countries, India
ranks 1st in the ease of doing business in 2018. In 2014, India’s rank was 6. As a result of improving
ease of doing business, many are interested in investing and doing business in India.
-‘Startup India – Standup India’ can be termed as successful because now India is the third largest
startup base in the world only behind US & UK. Modi government encouraged startups by tax
exemptions, less paperwork etc.
-Under ‘Pradhan Mantri Mudra Yojana’, 12.9 crore rupees were issued as loans to people who wanted
to start small or micro enterprises. Banks do not ask collateral to issue to loans under this scheme and
hence it helped many.
-A lot of youngsters are being trained under ‘Skill India’ program which was launched in 2015, which
aims to train over 40 crore people in India in different skills by 2022. This program is implemented
under various initiatives such as ‘National Skill Development Mission’, ‘National Policy for Skill
Development and Entrepreneurship, 2015’, ‘Pradhan Mantri Kaushal Vikas Yojana’.
-‘Digital India’, which was launched in 2015 helped in connecting 1.16 lakh village panchayats to e-
government services with optical fibre. And around 40,000 village panchayats have also been provided
with WiFi hotspots. In 2014, only 59 village panchayat have access to e-government services. Under
‘Digital India’ campaign, government is taking steps to increase the digital literacy rate in India.
-Investment in infrastructure has gone up to almost 3 fold in the past 4 years. Road & Rail connectivity
has improved under Modi government.
-Modi government announced in 2018 that it achieved 100% village electrification through ‘Deendayal
Upadhyaya Gram Jyoti Yojana’ which was launched in 2015. Though many people in villages still have
no electricity, power cables reached every village now. It is now easier because government did a good
job in providing access to electricity to every village.

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-In 2018-19 budget, government has promised to double the farmers’ income by 2022. As a part of
that in the interim budget 2019, government introduced income support program for farmers under
which farmers who own less than 2 hectares of land will get Rs. 6000 per annum. This is very helpful
for farmers because farmers who own small plots of land do not get much profit in general.
-Modi government gave relief to middle class people by giving full tax rebate to those who are earning
upto Rs. 5 lakh per annum.
-In the interim budget 2019’s speech, Finance Minister Piyush Goyal said that around 10 lakh people
have benefitted from ‘Ayushman Bharat’ scheme as of 2018. Ayushman Bharat Yojana which was
launched in 2018 provided 5 lakh insurance cover to poor families.
-For the first time, people of informal sector are provided beneficial programs such as ‘Atal Pension
Yojana’ (APY), ‘Pradhan Mantri Shram-Yogi Maandhan’ ( PMSYM).
-‘Pradhan Mantri Jan dhan Yojana’ encouraged many people to utilize banking services. This is helping
in achieving financial inclusion.
-Modi government took steps to end the discrimination of girl children by launching ‘Beti Bachao –
Beti Padavo’ & Sukanya Samrudhi schemes. Though the ‘Beti bachao – Beti Padavo’ program is not
fully successful, at least it worked towards ending the discrimination of child children.
-Under Modi government, India has improved it’s relations with other countries. Better relations with
other countries have a lot of benefits including trade benefits and hence a plus for economy.
-NITI Ayog has replaced Planning Commission in 2015. This is very helpful for the country because it
opted for bottom up approach instead of Planning Commission’s top down approach. NITI Ayog made
states as members and hence upheld the democracy.
-The One Rank One Pension (OROP) scheme which was pending for decades was passed by Modi
government.
-India’s rank in Travel and Tourism Competitive Index (TTCI) of World Economic Forum is jumped to
40th position globally as of 2017. In 2014, India’s rank was 68.
-Modi government reduced subsidies and thereby reduced the government’s expenditure. It also
encouraged people to give up subsidies voluntereely.
-Under Modi government, fiscal deficit is decreased from 4.4% in 2013-14 to 3.4% in 2018-19.

Valid points of opposition

-Intolerance has increased in the past 5 years. Questioning religious extremism is being termed as anti-
nationalistic. People who are in power are imposing their own ideologies on what is nationalism. Now
theatres have to play national anthem, and people are forced to stand up while it is played.
-Hate speeches on minorities are now a common thing because of the lenient behaviour of
government towards those who are opting for religious extremism. Several innocents were killed in
the name of cows. We witnessed a dangerous phenomenon of mob lynching. Several incidents caused
insecurity in Dalits & Muslims.
-Demonetization was implemented to retrieve back money. But the implementation was not proper
and it caused suffering for common people. And it couldn’t even retrieve the black money, as 99% of
the old notes were returned to banks as per RBI report. Demonetization affected people as well as
businesses. As a result, GDP growth decreased and hence affected Indian economy.
-Even though the crimes on women are increasing day by day, no proper action plan has been setup
to ensure the safety of women.
-Modi government couldn’t reform agricultural sector, instead it opted for band-aid solutions.
-Government couldn’t keep the promise of increasing employment opportunities.
-Education system has not improved to bridge the gap between the present education system and the
industrial standards.
-Modi government has failed to reduce poverty.
-Though ‘Jan Dhan Yojana’ was started with a noble initiative of opening bank account for everyone
in India, this scheme was neglected by government roughly after a year. Now there are many people

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who are forced to travel to nearby areas to withdraw money that was transferred to their accounts
under Direct Benefit Transfer (DBT). And about 1/5th of the Jan dhan accounts are dormant.
-‘Citizenship amendment bill‘ is widely criticised especially in north eastern states. The bill is now
lapsed in Rajya Sabha.
-Indian startup Eco system was badly hit by Angel tax.
-Though IBC is effectively tackling the NPA’s issue, gross NPAs of the public sector banks, which stood
at 4.3% at the end of 2014, is now at 14.5% by March 31, 2018. Banking fraud is also increased during
the last five years. As a result of these things, Banking sector is in crisis.
-Modi government is criticised for trying to overpower Reserve Bank of India (RBI). RBI vs Government
conflict made a negative impression on Modi government.

Conclusion
In these 5 years, Modi government has been doing well on the economic front. However, it is also
facing so much criticism on it’s lenient attitude towards the majoritarian politics. The coming general
elections will tell about whether the common people are happy with the Modi government or not

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23. Blockchain Technology – Pros & Cons
What is Blockchain Technology:
-Blockchain consists of transactions (blocks) linked as a chain. Every transaction has a timestamp and
the next transaction is linked to it, so we can easily know where that money came from and where it
went. Blockchain is a digital ledger that is available to everyone.
-These transactions will be verified by miners. All transactions will be saved in the computers of all
miners. Anyone can become a miner.
-‘Satoshi Nakamoto‘ (Nobody knows who this person/group is) invented Blockchain Technology.
He/she/the group used this technology in the first Cryptocurrency, Bitcoin.

Pros of Blockchain Technology:

-Blockchain technology, if used in money transaction services allows peer to peer transactions directly
without the intervention of banks and government. For example, if I want to send money to someone
in UK, my bank should approve the transaction and after that the receiver’s bank should also approve
it. With Blockchain technology, this can be eliminated.
-By this, there is no need to pay extra charges for the banks.
-Processing of the transaction will be faster, because of no third party intervention.
-There will be less frauds and money laundering incidents, because there will be a ledger of transaction
available to everyone. This creates transparency.
-If data has to be modified, certain number of miners should accept it. And hence, there will very less
chances of data manipulation and hence results in high security.
-Services using Blockchain technology will be too tough to be hacked.
-Blockchain technology is not just limited to financial sector. This can be used in many sectors such as
insurance, health sectors etc.
-For example, in health sector, the health history of people, the medicines they take, treatments they
have undergone can be stored using blockchain technology in a chronological order and can be shared
with the doctor to provide a better health services to patients.
-As data is stored in many computers, data loss is nearly impossible.
-Land records can be stored using blockchain technology to eliminated the data manipulation and
other frauds.

Cons of Blockchain Technology:

-We do not yet know the security vulnerabilities of Blockchain technology. We cannot say that it is
hack-proof.
-As block chain technology decentralises all transacations, there will be no regulator like central bank.
Sometimes, it is very important to have a regulator.
-Blockchain technology is very costly. Verifying transactions (mining) involves encryption and
decryption, which requires huge amounts of electricity.
-Though less, there will still be some charge for using financial services that run on blockchain
technology. For example – Bitcoin transactions also charges some amount.
-In the concept of bitcoin, miners will get bitcoins for veryfying the transactions. But when we use
blockchain technology in other sectors, why public will mine it without any profit?

Conclusion:
Blockchain technology has a lot of potential to solve the present issues especially in the financial
sector. Banking sector is making plans to use blockchain techology in its services. In India, NITI Ayog
recommended using this technology for land and health records of all states in India. Andhra Pradesh
government already started using it for the land records of its capital city – Amaravathi.
It will be beneficial if we use blockchain technology in such services where this technology offers more
benefits and less drawbacks than traditional technologies.

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24. Impact of Technology on jobs
Context:
Technology has made a number of traditional jobs redundant. For example, ATMs replaced some bank
jobs. The new wave of technologies like automation and artificial intelligence is a threat to many jobs.
There is an impact of technology on employment opportunities in almost every sector. So, this GD
topic – ‘Impact of technology on Jobs’ is one of the most famous GD Topics.

The positive impact of Technology on jobs:

-Technological innovations result in the improved lifestyles, and hence consumerism increases and
thereby results in more employment opportunities. For example, the industrial revolution created
more jobs than it eliminated. If we take the example of 3D printing technology, building houses by 3D
printing is a great technological innovation. Eventually, it will result in some job losses in the
construction industry at least in the starting. But this innovation will result in creating more affordable
homes and hence more and more people may want to buy a house. And so, with more consumers,
more houses will be built and hence will create so many jobs but of a different kind.
-Technology increases productivity and hence reduces the burden on workers and eliminates the
burden of doing repetitive tasks. For this, workers need to learn some skills to stay employed. It’s just
that the workers should be given training for the newly created jobs. If the government takes care of
the reskilling of low-skilled workers, we can take advantage of the impact of technology on jobs.
-Due to technology, demand for technically skilled youth is increasing and hence more jobs available
for educated youth. This can solve the problem of educated unemployment to some extent.
-Technology helps in the growth of the economy. Companies that use technology will save so much
money by replacing human labour with technological innovations. And thereby they expand their
services. And as a result, they create more jobs. More employees will be added to the economy, and
more revenue by taxes will come to government. So, there will be economic growth. This economic
growth can be utilised by the government to create more employment opportunities with better pay.
-Technologies have the potential to create large scale jobs in rural areas and hence addresses the rural
unemployment issue. Till now, jobs with better pay are concentrated in urban areas.

Negative impact of Technology on jobs:

-The immediate result of new technologies will be job losses because some jobs will become
redundant. Machines and automation are replacing low-skilled workers. If any company do not
replace human labour by technology, it is susceptible to losses due to heavy competition from other
companies which use technology. So, it is inevitable for companies to catch up with the technologies.
In this process, low-skilled workers will be the first section to be removed from the jobs. As a
consequence of that, income inequalities are further widening.
-Not just the low-skilled, and semi-skilled jobs, even high skilled job are at threat due to the new wave
of technologies like Artificial intelligence. This can reduce the employment opportunities available for
technically skilled persons.
-At present gap in the career is worse than ever with changing and constantly improving technologies.
This may force some women to stay at home after taking maternity leaves.
-Technical advancement is forcing people to continuously update their knowledge to sustain in the
job market. This can be too overwhelming for some to balance work and personal life.

Conclusion:
Technology changes the nature of jobs. Even though some jobs will become redundant, technological
advancement has the potential to create many more employment opportunities than it eliminated.
Continuous learning and updating the skills is the need of the hour.

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25. Is a relook needed in the caste reservation system?
In Favor of the present reservation system:
Many people from backward castes came out of poverty and have a dignified life, with the help of
caste reservation system.
It compensates the social discrimination, backward castes go through. Social discrimination,
untouchability exist even today in some parts of India.

Loopholes:
-There is no creamy layer concept for SCs and STs.
-There are many poor people in backward castes, who are not utilizing reservation. And there are
many people, who are using reservation at many levels and using the reservation benefits for their
children too.
-Percentages of reservations are based on 1930 caste census because there is no new caste census.
-Discriminatory towards upper castes.
-Not all upper castes are as powerful and wealthy as before.
-New communities are being added to the reserved categories. And there are demands from many
more communities to include them in the reservation quota. This dilutes the very purpose of
reservations – bringing the disadvantaged to the mainstream.
-Deepening caste identities.
-Caste reservation system is in conflict with one of the aims of our constitution – caste-less society.
-Showed path to vote bank politics.

What is needed:
-If good education and abundant job opportunities are available to all, there won’t be any necessity
for reservations.
-Violent protests need to be curbed.
-Eligibility criteria should be reviewed.
-Creamy layer for SCs and STs.

Background:
-Caste reservation is a quota-based affirmative action of India to uplift the depressed castes and to
provide the level playing field.
-Caste discrimination exists in India from a really long time. In the past, certain castes and communities
weren’t allowed to do dignified jobs. They were deprived of basic rights and education.
-1902 – First official government order by Chatrapati Shahu Maharaj to reserve 50% seats to non-
brahmin and backward classes.
-1930 – First caste census took place. It was criticized for strengthening the caste identities. Till now,
this is the last caste census. However, the present census includes the Scheduled castes and Scheduled
Tribes.
-1932 – British introduced ‘Communal Award’, which means separate electorates for Dalit, Muslims,
Sikhs, Indian Christians, Anglo-Indians, Europeans. Dalit representative will be voted by only Dalits,
Muslim representative by Muslim voters etc.
-1932 – Separate electorates for Dalits was severely criticized by Gandhi as he feared the
disintegration of Hindu religion. This lead to ‘Poona Pact’ agreement in between Dr.B.R.Ambedkar and
Gandhi, which created a single electorate for Hindus with reserved seats for Dalits in it.
-1982 – 15% reservation for SCs & 7.5% reservation for STs were implemented in Govt Jobs and Govt
aided educational institutions for a period of 5 years, after which review was sought.
-1991 – Reservation for Economically backward people of Forward castes was implemented.
-1993 – Reservation for OBCs in Govt jobs was implemented based on Mandal Commission report.

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-1993 – Creamy layer concept was introduced for OBCs on income basis. It means that OBCs, whose
family income is more than 1 lakh rupees at that time came under creamy layer and were excluded
from reservations.
-2008 – Reservation for OBCs in Higher educational institutions was implemented based on Mandal
Commission report.
-2008 – Supreme Court ordered to cap the total reservation to 50%
-Though the reservation in Jobs and Educational institutions was initially for five years, it wasn’t
reviewed and continued till today.
-There are many protests for and against caste reservation system. Currently, there are major protests
from Jats of Haryana, Patidars of Gujarat, Kapus of Andhra Pradesh. These communities are seeking
reservation.

What other countries are doing:

-United States – Special consideration to racial minorities, native Americans, and women.
-Canada – ‘Employment Equity Act’ requires employers to increase the representation of four
designated groups.

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26. Should reservations be based on economic status?
Theme:
At present, In India there are reservations on caste basis. There is a particular percentage of seats
reserved for Scheduled Tribes (ST), Scheduled Castes (SC) & Other Backward Classes (OBC) in
Education and Employment. For Other Castes (OC), there is no reservation at all (Except in Maharastra,
where Marathas got reservation recently). Many people find it discriminatory towards OCs and are
demanding that reservation should be based on economic status rather than on caste.

In Favor:
-When the concept of caste reservations was brought in India, Dr. B R Ambedkar, the chief architect
of Indian constitution added a rule that these reservations should exist only for 15 years, and can be
renewed for another few years if the need is still there. But no government took the risk of ending
reservations altogether with the fear of losing their vote banks. It’s been 67 years since the
constitution came into force. So, it’s time for a relook into the caste reservation system.
-If we analyse the statistics of below poverty line people, we can observe that there are poor people
in all communities including communities that fall under OCs. Caste based reservations are
discriminatory towards poor of OCs. For example, if 2 poor people with same score in the exam, one
belongs to OBC and another belongs to OC applies to the last seat available in a college that allows
reservations, person that belongs to OBC will get the admission, and the one that belongs to OC won’t.
If a student who belongs to SC applies to the same seat, he will be chosen. Why should people be
discriminated based on birth? If the reservation system is based on economic status, both students
would have equal chances to grab that seat.
-Only a few families are utilising reservations for many generations. There is no rule that if a person
got job due to reservation, his/her child should not utilise reservation. Due to this, people who are
already enjoying the benefits of reservation, using reservation again and again though they do not
need it at all. And some other people are still not able to utilize reservation due to the wealthy in their
communities. For example, if there are 10 seats reserved for STs in a college, children of poor, illiterate
people have to compete with children of wealthy families in the same community. Those who already
utilized reservations can afford to train their children in quality institutes and hence they can easily
get the admission. Reservation on economic basis can solve this problem.
-Indian constitution advocates equality, but is not upholding the principle in reservations, especially
when considering the fact that rich and poor exists in all communities.
-Caste divisions are hatred among communities is increasing due to reservations. Many communities
in several states of India are fighting to give them reservations. And the consequence is people are
increasingly associating with their caste. The interesting fact is that before the first caste census by
British government (1881) in India, many people do not even know what their caste is. From then, the
idea of caste is deeply ingrained in the Indian society. Now the reservations are making the situation
even worse.

Against:
-Many people term reservations as a consolation for facing discrimination some decades ago. But it’s
not. Communities that belongs to SC & ST faced discrimination and abuse for many decades. They
were denied of quality education and healthcare. Most of them were poor at the time of
independence. At that time, not all schools were willing to teach these communities and not all
employees were willing to hire them for jobs. And as a result poverty in the communities would have
continued for many more generations. But reservations provided positive discrimination for them and
uplifted many people. Now, there are rich and middle class in these communities and that is because
of reservations. Even now, if we observe the statistics of below poverty line people, a high percentage
of them belong to SC & ST. And high percentage of rich and middle classes belong to OBC & OC. Still
people of some communities are facing abuse in the name of caste. One case study revealed that

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people of some communities find it difficult to get a home for rent, and a temporary job if they
revealed their caste names. These things justify caste based reservation, because people belonging to
Other Castes do not have to go through all this to move to a new city, to get education and to get a
job.
-For poor people of OC, there are poverty alleviation schemes and special quotas such as ‘Economically
Backward Classes’ (EBC) quota etc.
-Removing caste based reservation and replacing it with reservations based on economic status will
face so much opposition and the legal fight may take decades. Instead if we slowly eliminate the
system of caste, there will be a scope for the reservations based on economic status. If you too want
to eliminate caste system, please sign this petition – Create ‘Humanity’ caste & allow everyone to
migrate to it.
-If there are reservations on economic basis, people who work hard for a financially stable life will feel
discouraged. There will be no incentive for working hard. Some people may not work hard and just
live on government benefits.
-In India, it’s easy to hide some income resources and to get a false income certificate. Though the
situations are changing for the better, it is not that difficult.

Conclusion:
No one deserves to take the pain for greater good (reservations). It’s time to make changes in caste
based reservation system. Reservations based on the economic status is not the right solution either.
Instead of adding new communities to the reservation quotas, continuously removing people that do
not need reservation benefits will ensure that the reservation benefits will reach only for deserving
ones. Efforts from people like voluntarily giving up reservation also helps a lot. This process can slowly
eliminate the concept of reservation.

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27. Decriminalization of Homosexuality – Road ahead for LGBTQ
community of India
Theme:-
On 6th September, 2018, Supreme court gave judgement on section 377, which decriminalized
homosexuality in India.

Things to cheer for:

-India joined 25 other nations in decriminalizing homosexuality. And hence India is a step closer to
becoming equal and inclusive society.
-As per surveys, acceptance of same-sex relationships is increased in India.

Present challenges for LGBTQ community in India :

-Though homosexuality is decriminalized, same-sex marriages are not yet legal in India. As long as the
same-sex marriages get legal status, LGBTQ (Lesbian, Gay, Bisexual, Transgender & Queer) community
will face legal issues in adopting children and passing properties to their adopted children as
inheritance etc. And most importantly, legal status for the same-sex marriages will bring the feeling
that all couples are equal.
-Though more and more people are understanding and accepting people who have different sexual
orientation from majority, still they often face social stigma and abuse.
-Religious extremist groups are against to the same-sex marriages, and often causes trouble for the
LGBTQ community. Many of these religious extremists are not aware of the fact that homophobia (
prejudice against homosexual people ) came to India with Britishers and wasn’t there in India before.
Section 377, which criminalizes homosexuality was introduced in India under British rule.

Conclusion:-
It’s a victory for everyone that India has finally decriminalized homosexuality. But we have a long way
to go in achieving equal rights and complete acceptance for the LGBTQ community in India.

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28. Statue of unity
Theme
‘Statue of unity‘ is statue of the great freedom fighter, Sardar Vallabhbhai Patel. It was launched on
31st October 2018 & it is the present World’s tallest statue with a height of 182 meters. It was praised
and also faced so much criticism.

In Favor:
-It’s because of Sardar Vallabhbhai Patel, many small kingdoms joined India at the time of
independence leading to the formation of the present India. So, a statue to honour him is a good idea.
The statue ensures he will be remembered by the future generations also.
-There will be a return of investment because it is developed as a tourist spot. It will be a plus to
tourism industry of India, and hence will be a plus for the economy too.
-Many people are criticising the move because of its cost. But the fact is that the total expenditure
was not given by Indian government. Only Rs. 200 crores was spent by Indian government and the
rest of the amount was given by corporate sector under Public Private Partnership (PPP).
-Iron used for this statue is collected from farmers of approx 5 lakh villages. This promotes unity of
India.
-Statue of unity created employment opportunities. And as it is expected that the number of tourists
will increase, it has the potential to generate more employment opportunities in the future.
-All the huge statues of the world have a wide base, but for statue of unity, there is a gap between
two feet of the statue and that resulted in a narrow base. It’s not an easy task to build such a huge
statue on such a narrow base. So, statue of unity is a great example of India’s engineering skills.

Against:
-India is still a developing country and has a lot of problems that need immediate attention such as
poverty, agricultural crisis etc. It’s all about priorities. Instead of spending the amount for the problems
India is facing, building a statue worth Rs. 2500 crores seems to be a foolish decision.
-Environmentalists are opposing the statue of unity since the beginning because this project is a threat
to the ecologically sensitive area.
-It’s very important the Sardar Patel need to be honored and remembered. But the way to do it
matters a lot.
-Sardar Patel was cremated as an ordinary person according to his wish. He is a simple person and
wouldn’t appreciate the move if he is alive today.
-There are many more freedom fighters who did not get enough recognition. Indian government
should have spent this money on making statues for all the main freedom fighters with that amount.
-If hospitals and schools in his name were built to honor him, the investment would have helped in
the development of India, and future generations will know the legacy of Sardar Patel ji for sure. Both
the goals would have been achieved.
-There is no guarantee that it will become one of the best tourist places.

Conclusion:
It’s all about priorities. At present India needs to invest in human development, poverty alleviation,
improvement of agriculture before spending that much amount in honouring our leaders. Developed
countries followed this principle. But it was already built. So, it’s better to put an effort to make it as
one of the best tourist spots in the world to at least get return of investment.

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29. Mob lynchings in India
Theme :
• On 23rd July 2018, Indian government appointed two high-level committees to suggest legal
framework to deal with the mob lynching incidents.
• Starting from 2015 mob lynching incident, these kind of crimes are happening frequently. Many
innocents including a police officer and a mentally challenged woman were killed in these incidents.
What is Mob lynching :
• The incident of a mob (group of people) attacking a person or few persons is called as mob lynching.
Causes of increasing mob lynching incidents:
• Main reason is the lack of fear about the consequences. Everyone in the group who commit the
crime thinks that they can get away with the crime. Ineffective investigation by police officials and the
ineffective justice system are the reason for this lack of fear.
• Indirect support from government is another reason. Most of the mob lynching incidents are
because of cow vigilantism. Several ministers publicly supported mob that killed a person over the
suspicion of eating beef. And government is not taking strict action against these incidents though the
crimes are happening frequently from the past three years.
• Hate speeches of ministers on minorities is also fueling mob lynchings.
• Lack of trust in the police system is influencing people to take law into their own hands. For example,
many innocents were killed in recent mob lynching incidents over the fear of child kidnapping. This
was because of a fake news of child lifters that became viral. When this news became viral, people
were panicked. As they do not trust police from saving their children, they wanted to took law into
their own hands. But that doesn’t justify attacking people on a mere suspicion.
• Mob lynching incidents signals declining moral values in society.
• In 2015 mob lynching incident, a rape accused was brutally killed by a mob. It was reported later
that the victim was falsely implicated in the rape case. If we analyse the incident this indicates the lack
of trust in our judiciary. A lot of cases are pending in courts for years and getting justice in Indian
courts is not at all easy. This is negatively influencing people to kill the accused for instant justice.
• Though not a direct cause, movies have a small stake in this issue. In most of the movies, lead role
takes the law into his/her hands and kills the criminals. Approaching courts and getting justice is rarely
shown in movies. This indirectly influences people to not care about law.

Steps taken by Indian government:

• In July 2018, Indian government appointed two committees to draft law on Mob lynchings.

Steps taken by public :

• In 2017, several people protested against mob lynchings and started “Not in my name” movement.
This protest is a message to criminals of mob lynching incidents to not do the crime in my name. This
is because accused persons in these crimes are justifying their actions by saying that they did it on
behalf of Hindu people.
• “I support MASUKA (Manav Suraksha Kanoon)” is another movement that was started in 2017 to
pressurize government to bring law on mob lynchings and suggested some measures such as life
imprisonment for these criminals, making it a non-bailable offence etc.

Conclusion :
Whatever the reason is, attacking a helpless person and killing him/her is inhumane. The chilling truth
that these kind of people are living in our society is very scary. The people who are a part of this kind
of mobs deserves no mercy and should be imprisoned for a lifetime. Immediate and strict punishments
can only deter mob lynching incidents. The law which will come into force should be effectively
implemented, otherwise it will become like Nirbhaya act and may fail in deterring the crimes.

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30. Data is the new Oil
-The countries who have oil turned into rich countries by selling it (Ex- Saudi Arabia, Kuwait etc). Now,
those who control data became the most profitable companies (Ex- Google, Amazon etc).
-Data is being increasingly used by companies to improve their services. For example, a clothes brand
tries to gather data on customer preferences. At present, Data analytics is the fastest growing field.
-Political parties are no exception to this. They gather data on what are the main grievances in the
particular area, the number of people in the particular age groups etc., so that they can make election
promises depending on this data.
-Advertising companies use data such as location, interests etc. to show targeted ads.
-No one can live away from digital world. Because, even if we are not using internet, our data may be
in online because now govt records, land records, identity cards, certificates etc. are all available
online.
-Digital footprints are hard to erase due to the fast growing cloud services.
-With the growing data-based economy, our privacy is at risk. Cyber crimes are increasing. Cyber
security is also one of the fastest growing industries.
-Now, more and more people are realizing the importance of consent for using personal data. Europe’s
GDPR (General Data Protection Regulation) laws are guidelines for other countries too.
-Now, there are fights on localization of data. Data localization means storing and processing the data
of citizens inside their country rather than in other countries. This ensures security of the data. But it
also violates trade laws.
-We cannot really compare oil with data because, oil is non-renewable and a limited resource. But
data is being generated at a rapid pace and will continue to play a significant role in the world’s
economy.

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