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  • 19 Dec 2024
  • 62 min read
Governance

Jharkhand HC Stays on Private Sector Job Quota Law

For Prelims: Article 14 , Article 19, Article 16, Article 371D, Article 15, Supreme Court of India

For Mains: Domicile Reservation in India, Socio-economic and Legal Implications of Reservation Policies, Unemployment 

Source: TH

Why in News?

The Jharkhand High Court has stayed the implementation of the Jharkhand State Employment of Local Candidates in Private Sector Company Act, 2021, which mandated a 75% reservation for local candidates in private-sector jobs with salaries up to Rs 40,000. 

  • This law, introduced to boost employment for locals but faced criticism for violating constitutional principles. 

What is the Jharkhand HC Ruling on Private Sector Job Quota Law?

  • Petition by Small-Scale Industries: The Jharkhand Small Scale Industries Association (JSSIA) filed a petition challenging the 75% local quota law, arguing that it violates the principle of equality, and the freedom to conduct business. 
  • Jharkhand HC Ruling:  The Jharkhand HC stayed the Jharkhand State Employment of Local Candidates in Private Sector Company Act, 2021 implementation.

Similar Domicile Based Reservation Laws in Other States

  • Andhra Pradesh: Passed the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019 (reserves 75% of jobs in private industries for local residents).
    • The Andhra Pradesh High Court noted the law “may be unconstitutional” but has yet to deliver a final judgment.
  • Karnataka: Approved the Karnataka State Employment of Local Candidates in Industries, Factories and Other Establishments Bill, 2024, which proposes 50% reservation for locals in management roles and 75% in non-management positions across various sectors. 
    • The bill has sparked uproar, with concerns raised about its impact on labor mobility and business operations.

Why Do States Introduce Domicile Based Reservations in Private Employment?

  • High Unemployment Among Locals: In many states, locals face significant job shortages, especially for low and semi-skilled positions. 
    • Local quota laws are seen as a way to ensure residents have better access to employment opportunities.
  • Migrant Workers Taking Jobs: There is a growing perception that migrant workers from other states are taking away jobs meant for locals. 
    • This often fuels resentment, especially in more industrialized and economically advanced regions.
  • State Employment Prioritisation: The private sector, as a major job creator, can support social justice by prioritizing locals for jobs, especially since it benefits from government incentives like tax concessions and cheaper loans, justifying affirmative policies.
  • Political Pressure and Vote Banks: State governments face pressure from local populations to prioritise their interests. Introducing reservation laws can be a way to appease voter sentiment and secure political support.
  • Skill Mismatch and Education Levels: Locals may lack the skills for high-paying jobs, limiting their opportunities. 
    • Quotas for lower-paying roles are introduced to address this skill mismatch and provide more employment for less-educated populations.
  • Retention of Talent: By ensuring that local residents have access to jobs, states can retain talent within the region. This is particularly important in areas experiencing brain drain, where skilled workers leave for better opportunities elsewhere.

What is Domicile Reservation?

  • Domicile Reservation: This system reserves benefits based on where a person resides. States may allocate certain seats for residents, prioritizing locals in areas like education and public jobs.
    • "Place of birth" and "domicile" are distinct concepts, with domicile referring to a person's residence rather than their birthplace.
  • Constitutional Provisions: Article 16(3), allows residence-based criteria for government appointments within a state or union territory, as determined by Parliament.
    • Article 371D creates local cadres in Andhra Pradesh and Telangana, ensuring local representation and opportunities in government jobs.
    • Article 15 only prohibits discrimination based on birthplace, not residence.
  • Landmark Judgments:
    • DP Joshi vs Madhya Bharat, 1955: Supreme Court (SC) of India upheld the validity of domicile-based reservations, stating that it is a legitimate state interest to benefit its own residents. 
    • Dr. Pradeep Jain v. Union of India, 1984: The SC again upheld domicile-based reservation, emphasizing that it falls within the scope of reasonable classification under Article 14, as long as it does not violate the principles of equality or hamper the rights of others.
  • Problems with Domicile Reservation: Domicile-based quotas can compromise merit-based selection, potentially leading to underperformance in critical sectors.
    • Emphasis on regional identity may foster division and exacerbate local tensions, undermining national integration.
    • Migrants who may have contributed significantly to the economy and society may be unfairly denied opportunities.
    • The criteria for domicile may be manipulated, leading to exploitation and favoritism in the allocation of reserved seats or positions.
    • Continuous reliance on reservations may weaken efforts to improve the quality of education and skill development, which are more sustainable solutions for empowerment.
    • Domicile reservations may fail to address intra-regional disparities, where wealthier or more educated local residents benefit over poorer, marginalized groups within the same region.

Way Forward

  • Balance of Employment: Establish a fair mechanism where both local and non-local candidates can compete for jobs, promoting merit-based hiring while addressing regional unemployment issues.
    • Policies should focus on workforce integration, ensuring equal access to economic opportunities for all citizens, regardless of state boundaries.
  • Focus on Skill Development: Invest in education and skill development programs for locals to make them more competitive in the job market, reducing the need for restrictive quotas.
  • Incentivise Local Businesses: Encourage private-sector companies to prioritize local hiring through incentives like tax breaks or subsidies, rather than imposing rigid reservation quotas, fostering an environment where employers choose based on merit and local talent.
  • Ensuring Labor Rights: States should enforce basic labor rights for all workers, including migrants, to ensure fair wages and social protections, creating a level playing field for both local and migrant workers.

Drishti Mains Question:

Q. Analyze the impact of domicile-based reservation laws in India. Do these laws address regional unemployment, or do they create new challenges?"

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims

Q. Disguised unemployment generally means (2013)

(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low

Ans: (c)

Mains

Q. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (2023)

Governance

One Nation One Election 'The Constitution 129th Amendment Bill 2024’

For Prelims: Key Features of the Constitution 129th Amendment Bill 2024l, Constitution Amendment Bills, Lok Sabha, President, Jammu and Kashmir Reorganisation Act 2019 

For Mains:  Key Features of the Bill, Implications of Simultaneous Elections in India 

Source: PIB 

Why in News?

Recently, the government initiated steps towards implementing "One Nation, One Election" by introducing two Constitution Amendment Bills namely One Nation One Election–'The Constitution 129th Amendment Bill 2024' and the 'The Union Territories Laws Amendment Bill 2024  in Lok Sabha. 

  • Simultaneous elections in India, where both Lok Sabha and state assembly elections were held together, took place from 1951 to 1967. 

What are the Key Features of the Bills? 

  • One Nation, One Election ‘The Constitution 129th Amendment Bill 2024': The bill proposes adding Article 82A(1-6) to the Constitution to align the terms of the Lok Sabha and State Assemblies, as recommended by the committee headed by former President Ram Nath Kovind.  
    • Article 82 (1-6): 
      • 82A (1) provides for the timeline for the President to bring into force the proposed changes on the date of the first sitting of the Lok Sabha after a general election, designating this as the "appointed date." 
      • 82(2) states that the terms of all state Assemblies elected after the appointed date and before the Lok Sabha's full term ends will conclude with the Lok Sabha's term. 
      • Article 82A(3) states that the Election Commission of India (ECI) shall conduct general elections to the House of the People and all Legislative Assemblies simultaneously. 
      • Article 82 A(4) defines simultaneous elections as “general elections held for constituting the House of the People and all the Legislative Assemblies together”. 
      • Article 82A(5) gives the ECI the option of not holding any particular Assembly election along with the election to Lok Sabha.  
        • The ECI can advise the President to issue an order allowing elections for a Legislative Assembly to be held at a later date. 
      • Article 82A(6) states that if an Assembly election is deferred, the full term of that Assembly will also end with the full term of the Lok Sabha elected in the general election. 
    • Amendment to Article 83 and 172: 
      • The bill states that if the Lok Sabha is dissolved before the end of its full term, the next Lok Sabha will only be for the unexpired term — “the period between its date of dissolution and five years from the date of the first meeting”. 
        • This means that Bills pending in the House will expire, as it happens even when the House has functioned for a full term. 
      • For state assemblies, amendments proposed for Article 172, which governs the duration of state legislatures.  
        • If a state assembly is dissolved before its term ends, elections would be held for the remaining term of the previous assembly. 
    • Amendment to Article 372: 
      • The Bill proposes amending Article 372 to include "conduct of simultaneous elections" after "delimitation of constituencies," expanding Parliament's power over state legislature elections. 
        • The bill excluded the election of Local bodies and Municipalities. 
  • The Union Territories Laws Amendment Bill 2024: 

What are the Constitutional Provisions Related to Elections in India? 

  • Part XV (Article 324-329): It deals with elections and establishes a commission for these matters. 
  • Article 324: Empowers the ECI to supervise, direct, and control the entire process of elections to the Parliament and State Legislatures. 
  • Article 325: Provides for the establishment of a single electoral roll for all elections to the Lok Sabha and State Assemblies. 
  • Article 326: Specifies that elections to the Lok Sabha and State Assemblies shall be based on adult suffrage. 
  • Articles 82 and 170: Mandate the delimitation of constituencies after each census to ensure fair representation. 
  • Article 172: States that every Legislative Assembly shall have a term of five years unless dissolved earlier. 

High-Level Committee Report on Simultaneous Elections 

  • Formation and Purpose of the Committee: 
    • The High-Level Committee, chaired by former President Ram Nath Kovind, was formed by the central government in September 2023. 
    • The committee was tasked with examining the feasibility of conducting simultaneous elections for the Lok Sabha, state assemblies, and local bodies. 
  • Rationale for Simultaneous Elections: 
    • The committee noted that frequent elections create uncertainty, while simultaneous elections would ensure stable governance and reduce disruptions. 
      • Additionally, holding elections simultaneously is expected to lower costs and increase voter participation. 
  • Electoral Roll Management: 
    • To streamline the electoral process, the committee suggested adopting a single electoral roll prepared by the Election Commission of India (ECI) in consultation with State Election Commissions (SECs). 
      • This would minimize duplication and improve efficiency across multiple agencies involved in election management. 
  • Logistical Considerations: 
    • The committee emphasized that both the ECI and SECs must undertake detailed planning and estimation for logistical arrangements to ensure smooth execution during simultaneous elections. 

What are the Challenges Associated with Implementing Simultaneous Elections? 

  • Infrastructure Development: Ensuring that the technological infrastructure is robust enough to handle the complexities of simultaneous elections is critical. 
  • Legal Challenges: Any amendments and the process of implementing simultaneous elections may face legal challenges and require judicial scrutiny to ensure compliance with constitutional provisions. 
  • Regional Disparities: Some political parties express concerns that simultaneous elections may marginalise regional voices and issues during national campaigns. 
    • Ensuring that local issues are not overshadowed by national narratives is crucial for maintaining diverse representation. 
  • Administrative Challenges: Organizing simultaneous elections across states poses significant logistical challenges, including managing electoral rolls and ensuring security. 
    • A comprehensive voter education campaign will be necessary to inform citizens about the new electoral process and its implications. 

What Strategies can be Employed to Facilitate the Transition to Simultaneous Elections? 

  • Legal Clarity: Establish clear instructions for conducting simultaneous elections, detailing the schedules and procedures for voter registration. 
    • Ensure that necessary constitutional amendments are made to facilitate the synchronization of elections across all levels of government. 
  • Strengthening Electoral Infrastructure: Develop a unified electoral roll system that serves all three tiers of government—Lok Sabha, State Assemblies, and local bodies—to reduce duplication and errors, as recommended by the Kovind Committee. 
    • Utilize technology for efficient management of electoral processes, including voter verification and results tabulation. 
    • Election Commission's Recommendations (2016) suggested changes to enhance the efficiency of the electoral process, including the use of technology for voter registration and electronic voting machines. 
  • Public Awareness Campaigns: Initiate nationwide campaigns to inform voters about the advantages of simultaneous elections and its impact on their voting experience. 
    • Engage NGOs and community organizations to disseminate information and gather public feedback on the proposed changes. 
  • Capacity Building: Conduct training sessions for election officials on new technologies and processes associated with simultaneous elections to ensure smooth implementation.

Drishti Mains Question

Critically analyze the implications of implementing 'One Nation, One Election' in India. Also mention the challenges related to regional representation and administrative efficiency.

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims 

Q. Consider the following statements: (2017)

  1. The Election Commission of India is a five-member body. 
  2. The Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections. 
  3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties. 

Which of the statements given above is/are correct?

(a) 1 and 2 only 

(b) 2 only 

(c) 2 and 3 only 

(d) 3 only 

Ans: (d)

Mains

Q. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (2022)

Indian Economy

India Surpasses USD 1 Trillion in FDI

For Prelims: Foreign Direct Investment, World Competitive Index, Global Innovation Index, Angel tax, Make in India initiative, Production Linked Incentive Scheme, Department for Promotion of Industry and Internal Trade 

For Mains: India’s Foreign Direct Investment (FDI),  FDI’s role in the development 

Source: PIB 

Why in News?  

India has surpassed USD 1 trillion in Foreign Direct Investment (FDI) inflows since 2000, highlighting its growing appeal as a global investment hub.  

  • This milestone is further supported by a 26% rise in FDI to USD 42.1 billion in the first half of the  current financial year 2024-25, reflecting the impact of strategic initiatives, policy reforms, and enhanced global competitiveness. 

Growth_of_FDI_India

What Factors are Driving India’s FDI Growth? 

  • Competitiveness and Innovation: India's World Competitive Index 2024 ranking improved to 40th from 43rd in 2021.  
    • In the Global Innovation Index 2023, India secured 40th place out of 132 economies, a significant rise from 81st in 2015. 
    • Progress in innovation and competitiveness has positioned India as a global hub for innovation-driven investment. 
  • Global Investment Standing: India ranked 3rd globally for greenfield projects with 1,008 announcements (World Investment Report 2023).  
    • International project finance deals in India also increased by 64% making it the recipient of the second-largest number of international finance deals. 
    • These figures highlight India's growing global investment prominence. 
  • Improved Business Environment: India improved its business environment significantly, rising from 142nd in 2014 to 63rd in the 2020 World Bank Doing Business Report.  
    • This reflects efforts to simplify regulations, and reduced bureaucratic hurdles have boosted investor confidence. 
  • Policy Reforms: The 2024 amendment to the Income Tax Act, 1961 abolished angel tax and reduced the income tax rate for foreign companies to simplify compliance for startups and investors. 
  • Initiatives to Boost FDI:  
    • Bilateral Investment Treaty (BIT) with UAE: The signing of a BIT with the UAE aims to increase investor confidence and stimulate investments aligned with the 'Atmanirbhar Bharat' vision. 
    • Production Linked Incentive (PLI) Scheme: The PLI scheme supports manufacturing sectors, driving FDI in the white goods sector. 
    • Make in India Initiative: Between 2014-2022, the Make in India initiative boosted FDI in the manufacturing sector by 57%. 
    • Foreign Investment Facilitation Portal (FIFP): The FIFP streamlines the FDI approval process by offering a single interface for investors, speeding up approvals and facilitating smoother foreign investment inflows. 
    • PM Gati Shakti: Measures like PM Gati Shakti aim to further boost FDI by improving infrastructure, and  connectivity. 
    • Key Sectors with FDI Liberalization: India has made significant strides in liberalizing FDI across multiple sectors to attract global investments.  

What is Foreign Direct Investment? 

  • About: FDI refers to an investment where a company or individual from one country makes an investment in a business or establishes a controlling interest in a business in another country.  
    • This involves more than just capital, it also brings in expertise, technology, and skills, which can contribute to the economic development of the host country. 
  • Types of FDI: 
    • Greenfield Investment: Creating new business operations from the ground up, offering high control and customization. 
    • Brownfield Investment: Expanding through mergers, acquisitions, or joint ventures by utilizing existing facilities. 
      • The control may not be as high as in Greenfield investments, as the organisation is leveraging existing structures, but still allows significant influence over the operation. 
  • FDI in India: 
    • Governance: FDI in India is governed by the Foreign Exchange Management Act (FEMA), 1999, and is administered by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry.  
    • FDI Entry Routes: FDI under sectors is permitted either through the Automatic route or Government route. 
      • Under the Automatic Route, the non-resident or Indian company does not require any approval from the Government of India. 
      • Whereas, under the Government route, approval from the Government of India is required prior to investment.  
        • Proposals for foreign investment under the Government route are considered by the respective Administrative Ministry/Department. 
    • Sectors Under the Automatic Route: Agriculture & Animal Husbandry, Air-Transport Services, Auto-components, Automobiles, Biotechnology (Greenfield), E-commerce Activities, Renewable Energy, and various other sectors 
    • Sectors Under the Government Route: Banking & Public Sector, Broadcasting Content Services, Food Products Retail Trading, Satellite Establishment and Operations. 
    • FDI Prohibition in India: FDI is strictly prohibited in sectors like atomic energy generation, gambling and betting, lotteries, chit funds, real estate, and the tobacco industry. 
    • India’s Top FDI Sources: India received the highest FDI from Singapore in 2023-24, followed by Mauritius, United States, Netherlands and Japan.

Note: In order to curb opportunistic takeovers/acquisitions of Indian companies due to the Covid-19 pandemic, Government amended the FDI policy 2017 vide Press Note 3 (2020).  

  • It required entities from countries sharing a land border with India, or whose beneficial owner is from such countries, can only invest in India through the Government route.  
  • For the purpose of Press Note 3, India recognises Pakistan, Afghanistan, Nepal, Bhutan, China (including Hong Kong), Bangladesh and Myanmar as countries sharing land border with India (Bordering Countries).  

FDI_and_FPI

What is the Significance of FDI? 

  • Employment and Economic Growth: FDI stimulates job creation, reduces unemployment, and enhances income levels, contributing to overall economic growth.  
    • FDI infuses capital, increasing tax revenue, and improving infrastructure.  
    • For instance, the entry of global companies like Amazon and Walmart (through Flipkart) has created numerous jobs in the retail and logistics sectors. 
  • Human Resource Development: Exposure to global skills and technologies improves workforce quality, benefiting the wider economy.  
    • For example, the establishment companies like IBM and Microsoft in India have enhanced the skill set of the local workforce. 
  • Development of Backward Areas: FDI helps transform underdeveloped regions into industrial hubs, driving regional economic progress.  
    • The automobile hub in TamilNadu, with investments from companies like Hyundai and Ford, has significantly boosted the local economy. 
  • Increase in Exports: FDI may lead to the establishment of export-oriented units, enhancing a country's export potential. 
    • For example, India's IT sector, which receives significant FDI from companies like Accenture, has become a major industry, exporting software services to clients worldwide. 
  • Exchange Rate Stability: Continuous FDI inflows provide foreign exchange, supporting currency stability.  
    • The steady inflow of FDI in key sectors like telecommunications and pharmaceuticals helps maintain a stable exchange rate. 
  • Creation of a Competitive Market: FDI fosters competition, drives innovation, and offers consumers a broader range of products at competitive prices.  
    • The entry of global brands like IKEA has increased competition in the retail sector, benefiting consumers. 

What are the Concerns Regarding the  FDI? 

  • National Security: FDI in strategic sectors, such as defence or telecommunications, can pose national security risks.  
    • For example, concerns have been raised about Chinese investments in critical infrastructure in various countries. 
  • Economic Dependence: Heavy reliance on FDI can make a country vulnerable to economic fluctuations in the investing country.  
    • This can lead to instability if the foreign investor decides to withdraw or reduce their investment. 
    • This is a concern in sectors like banking, where foreign entities might prioritize their interests over national ones. 
  • Profit Repatriation: Foreign companies often repatriate profits back to their home countries, which can limit the economic benefits for the host country. This can result in a net outflow of capital. 
  • Impact on Local Businesses: Large foreign companies can outcompete local businesses, leading to closures and job losses.  
    • This is particularly concerning in developing economies where local businesses may not have the resources to compete. 
  • Environmental Concerns: Foreign investments, especially in extractive industries, can lead to environmental degradation.  
    • There have been instances where foreign companies like PepsiCo have been accused of not adhering to local environmental regulations. 
  • Labor Exploitation: There are concerns that foreign companies might exploit local labor by paying lower wages or not adhering to labor laws.  This can lead to poor working conditions and social unrest. 

Way Forward 

  • Enhance Ease of Doing Business: Continue simplifying FDI regulations, reducing bureaucratic hurdles, and streamlining approval processes to attract more foreign investors. 
  • Sustainability Focus: Encouraging FDI in green and sustainable technologies to align with global environmental goals. 
    • Ensuring stable and transparent policies will build investor confidence and encourage sustained FDI inflows. 
  • Skilling and Employment: Ensure that the FDI contributes to local employment and skill development, particularly in manufacturing and technology sectors. 
  • Investment in R&D and Innovation: Promote FDI in research and development to foster innovation and enhance India’s global competitiveness. 
  • Infrastructure Development: Investing in infrastructure, including digital and physical assets, can enhance India's attractiveness as an investment destination. 
  • Sector-Specific Reforms: Implement targeted reforms in high-potential sectors like defence, space, and renewable energy to encourage innovation and investment. 

Conclusion

India’s FDI inflows, surpassing USD 1 trillion since 2000, reflect its growing global competitiveness and successful reforms. Initiatives like "Make in India" and sectoral liberalization position India for continued sustainable growth and development on the global stage. 

Drishti Mains Question: 

Analyze the role of Foreign Direct Investment (FDI) in India’s competitiveness and innovation ecosystem. How do improvements in global competitiveness affect FDI?

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (2020)

(a) It is the investment through capital instruments essentially in a listed company. 

(b) It is a largely non-debt creating capital flow. 

(c) It is the investment which involves debt-servicing. 

(d) It is the investment made by foreign institutional investors in Government securities. 

Ans: (b) 

Q. Consider the following: (2021)

  1. Foreign currency convertible bonds 
  2. Foreign institutional investment with certain conditions 
  3. Global depository receipts 
  4. Non-resident external deposits 

Which of the above can be included in Foreign Direct Investments? 

(a) 1, 2 and 3 
(b) 3 only  
(c) 2 and 4 
(d) 1 and 4 

Ans: (a)

Mains

Q. Justify the need for FDI for the development of the Indian economy. Why is there a gap between MOUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India. (2016)

International Relations

Eastern Maritime Corridor

For Prelims: Blue Economy, India-Middle East-Europe Economic Corridor, Chennai-Vladivostok Maritime Corridor, Northern Sea Route, International North-South Transport Corridor, Belt and Road Initiative (BRI) 

For Mains: Significance of Eastern Maritime Corridor, Significance of maritime trade and economic development, India-Russia Relations 

Source: IE 

Why in News? 

The recent launch of the Eastern Maritime Corridor between Chennai and Vladivostok (Russia) has enhanced India-Russia trade by reducing shipping time and costs.  

  • This new route is crucial for increasing trade in sectors like crude oil, coal, fertilizers, and metals, with India becoming the largest importer of Russian oil.  
  • The corridor is expected to significantly reshape bilateral trade dynamics, promoting economic and strategic cooperation between the two nations. 

What is the Eastern Maritime Corridor (EMC)? 

  • About: 
  • Significance:  
    • Reduced Logistics Costs:  
      • EMC has reduced the shipping distance from 8,675 nautical miles (via the traditional St Petersburg-Mumbai route through Europe) to 5,600 nautical miles, cutting transit time from over 40 days to just 24 days.  
      • This is significant for India as it has surpassed China to become the largest buyer of Russian oil in July 2024. 
      • India imports over 85% of its crude oil demand.  
    • Diversification of Trade:  
      • The corridor facilitates not only crude oil shipments but also coal, LNG, fertilizers, and other commodities, broadening the trade relationship. 
    • Boost to India’s Maritime Sector:  
      • The corridor supports India’s maritime sector, which handles around 95% (by volume) and 70% (by value) of the country’s trade, contributing to its growth and efficiency. 
      • This new route aligns with India’s Maritime Vision 2030, which includes over 150 initiatives aimed at transforming the maritime sector. 
    • Strategic Importance:  
      • Vladivostok is the largest Russian port on the Pacific Ocean, and the corridor passes through the South China Sea and strengthens India’s strategic presence addressing China's dominance in the region. 
      • The Chennai-Vladivostok corridor is aligned with other initiatives, such as the Northern Sea Route and the International North-South Transport Corridor (INSTC). 
    • Advancing India’s Act Far East Policy:  
      • The EMC boosts India’s access to Russian resources and strengthens its position in the Pacific trade network.  
      • By enhancing regional connectivity, it promotes trade with East Asia, ASEAN, and Russia, facilitates multimodal transport, and supports infrastructure development.  
        • This also opens avenues for trade agreements, cultural exchanges, and tourism, positioning India as a key player in the region. 

What are Other Maritime Corridors Significant for India? 

  • International North-South Transport Corridor (INSTC):  
    • INSTC is a 7,200 km multimodal transit route linking the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and further to northern Europe via St. Petersburg, Russia.  
      • It was launched in 2000 through a trilateral agreement between India, Iran, and Russia, it has expanded to include 13 member countries.  
    • It connects ship, rail, and road routes between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.  
      • The corridor has 3 routes: the Central Corridor (India to Russia via Iran), the Western Corridor (Azerbaijan-Iran-India), and the Eastern Corridor (Russia to India through Central Asia). 
    • In June 2024 Russia sent two trains carrying coal to India through the INSTC for the first time. 

 

  • India-Middle East-Europe Economic Corridor (IMEC) Project: 
    • The IMEC Project was announced at the G20 Summit (2023), the IMEC aims to connect India, the Middle East, and Europe through a network of railways, roads, and ship-to-rail links.  
    • It includes two corridors: the East Corridor linking India to the Arabian Gulf, and the Northern Corridor connecting the Gulf to Europe.  
    • The project will also feature an electricity cable, a hydrogen pipeline, and a high-speed data cable, fostering regional integration across Asia, Europe, and the Middle East.

IMEC

  • Northern Sea Route (NSR): 
    • The NSR is a 5,600 km Arctic shipping route connecting the Barents and Kara Seas to the Bering Strait.  
    • It offers up to 50% shorter transit times than traditional routes like the Suez Canal and gained attention after the 2021 Suez Canal blockage. 
      • It has also become an area of focus, with both nations working on projects related to Arctic shipping and polar navigation, providing a strategic shipping route between Western Eurasia and the Asia-Pacific. 
    • India is interested in the NSR due to growing imports of Russian crude oil and coal. The NSR is also key for balancing Russia-China influence in the region. 

NSR

What are the Key Aspects of India-Russia Relations? 

  • Strategic Partnership: India and Russia formalized their strategic partnership in 2000, upgraded to a Special and Privileged Strategic Partnership in 2010.  
    • The goal is to achieve USD 50 billion in investment and USD 30 billion in trade by 2025, with a target of USD 100 billion by 2030. 
  • Bilateral Trade and Investment: India-Russia trade reached USD 65.7 billion in FY 2023-24. The Key Import and Export From Russia (FY 2024): 
    • By Value: 
      • Imports: Crude oil, project goods, coal, coke, vegetable oils, and fertilizers. 
      • Exports:  processed minerals, iron and steel, tea, marine products, and coffee.  
    • By Quantity: 
      • Imports: Petroleum crude, coal, fertilizers, vegetable oil, and iron and steel,  
      • Exports: Processed minerals, iron and steel, tea, granite, and processed fruits and juices. 
    • Bilateral investments surpassed USD 30 billion in 2018, with a revised target of USD 50 billion by 2025. 
    • Indo-Russian JV for Vande Bharat Sleeper: The Indo-Russian JV Kinet has taken over the Marathwada Rail Coach Factory in Latur to manufacture 1,920 Vande Bharat Sleeper coaches.  
  • Energy Cooperation: Russia plays a key role in India’s energy security, with both countries cooperating extensively in the oil and gas sectors.  
    • Russia’s state-owned energy firms have made significant investments in India’s energy infrastructure, while Indian companies are involved in oil exploration projects in Russia. 
  • Defense and Security Cooperation: India and Russia share long-standing defense cooperation, guided by the IRIGC-M&MTC mechanism, with regular bilateral and multilateral military exercises like INDRA and Vostok 2022.  
  • Science and Technology: It spans areas like space (Gaganyaan), nanotechnology, and quantum computing.  
    • Both jointly developed the Kudankulam Nuclear Power Plant. Their partnership is guided by the 2021 roadmap for innovation, aiming to commercialize technologies and support joint projects.  
  • Geopolitical and Regional Cooperation: 
    • The India-Russia relationship is underpinned by shared interests in global and regional security, including cooperation in multilateral forums like the United Nations and BRICS. 
    • Russia’s increasing focus on the Asia-Pacific region aligns with India’s strategic priorities, particularly in the context of balancing China’s maritime influence. 
  • Economic Diplomacy and Taxation Agreements: 

Drishti Mains Question:

Discuss the current state of India-Russia relations, highlighting key areas of collaboration and challenges. How can India strengthen this strategic partnership? 

UPSC Civil Services Examination, Previous Year’s Question (PYQs) 

Prelims

Q. Consider the following in respect of Indian Ocean Naval Symposium (IONS): (2017) 

  1. Inaugural IONS was held in India in 2015 under the chairmanship of the Indian Navy.
  2. IONS is a voluntary initiative that seeks to increase maritime co-operation among navies of the littoral states of the Indian Ocean Region.

Which of the above statements is/are correct? 

(a) 1 only 

(b) 2 only 

(c) Both 1 and 2 

(d) Neither 1 nor 2 

Ans: (b)

Q. With reference to ‘Indian Ocean Rim Association for Regional Cooperation (IOR-ARC)’, consider the following statements: (2015) 

  1. It was established very recently in response to incidents of piracy and accidents of oil spills.
  2. It is an alliance meant for maritime security only.

Which of the statements given above is/ are correct? 

(a) 1 only 

(b) 2 only 

(c) Both 1 and 2 

(d) Neither 1 nor 2 

Ans: (d) 

Q. Southeast Asia has captivated the attention of the global community over space and time as a geostrategically significant region. Which among the following is the most convincing explanation for this global perspective? (2011) 

(a) It was the hot theatre during the Second World War 

(b) Its location between the Asian powers of China and India 

(c) It was the arena of superpower confrontation during the Cold War period 

(d) Its location between the Pacific and Indian oceans and its preeminent maritime character 

Ans: (d)

Mains

Q. Project ‘Mausam’ is considered a unique foreign policy initiative of the Indian government to improve relationships with its neighbours. Does the project have a strategic dimension? Discuss.(2015) 

Q. With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for safeguarding maritime security to ensure freedom of navigation and overflight throughout the region. In this context, discuss the bilateral issues between India and China. (2014)

Important Facts For Prelims

Reimposition of Protected Area Regime

Source: TH 

Why in News?

The Union Home Ministry has reimposed the Protected Area Regime (PAR) in Manipur, Mizoram, and Nagaland due to rising security concerns over foreign influx from neighboring countries.

  • The decision highlights the government's renewed focus on monitoring foreign movements and addressing security issues in these sensitive regions. 

What is the Protected Area Regime? 

  • About: The PAR is a set of regulations established under the Foreigners (Protected Areas) Order, 1958, which is aimed at regulating foreign visitors to areas that are considered strategically important or vulnerable to external threats, particularly in the northeastern states and other border regions of India. 
  • Key Features of the PAR:  
    • Restricted Access: Foreigners are not allowed to visit areas under the PAR without prior government approval.  
      • To enter these areas, they must apply for and obtain a Protected Area Permit (PAP), which allows authorities to monitor the movement of foreign nationals in sensitive regions. 
      • The areas covered by the PAR are deemed sensitive due to their proximity to international borders or because of ethnic tensions, insurgency, or political instability.  
    • Relaxations and Reimposition: In the past, there have been temporary relaxations to encourage tourism in some regions, like in Manipur, Mizoram, and Nagaland, where the PAR was relaxed in 2010 for promoting tourism.  
      • However, such relaxations were reversed when security concerns arose, as seen with the recent reimposition of the PAR in these states. 

Foreigners (Protected Areas) Order, 1958 

  • The Foreigners (Protected Areas) Order, 1958, issued under the Foreigners Act, 1946, is a key regulatory framework designed to control the movement of foreigners in sensitive regions of India.  
  • It defines the ‘Inner Line’, a boundary from Jammu and Kashmir to Mizoram, beyond which foreign travelers are required to obtain a special permit.  
    • The regions located between the Inner Line and the International Border of a state are known as Protected Areas.  
      • Foreigners can enter these areas only with a PAP. Examples of Protected Areas include the whole of Arunachal Pradesh, Manipur, Mizoram, Nagaland, and Sikkim (which is partly in Protected Areas and partly in Restricted Areas).  
        • Additionally, parts of Himachal Pradesh, Jammu & Kashmir, Rajasthan, and Uttarakhand are designated as Protected Areas. 
    • The areas that lie between the Inner Line and the territories occupied by indigenous tribes are known as Restricted Areas. Entry into these regions is prohibited without prior permission (Restricted Area Permit ). 
      • Examples of Restricted Areas include the entire Andaman and Nicobar Islands Union Territory and a part of the state of Sikkim.
Important Facts For Prelims

National Wildlife Health Policy

Source: PIB 

Why in News? 

Recently, the Indian government proposed a National Wildlife Health Policy aimed at addressing health threats faced by wildlife.  

What is the Proposed National Wildlife Health Policy? 

  • About: 
  • Aim:  
    • The policy will complement India's National Wildlife Action Plan (2017-31) and the One Health policy, which aims to optimize the health of people, animals, and the environment by recognizing their interdependence. 
    • The National Wildlife Action Plan (2017-31) outlines 103 conservation actions and 250 projects.  
      • These include creating a standard protocol for disease surveillance in tiger reserves, protected areas, and forests, as well as establishing a legally binding protocol for mercy killing and euthanasia of wild animals. 
    • The policy will also cover areas such as managing wildlife pathogen risk, disease outbreak preparedness and response, and biosecurity. 
    • The policy aimed to promote R&D initiatives focused on wildlife diseases and health management strategies. 
      • Enhance the skills and knowledge of stakeholders involved in wildlife conservation and management. 
  • Current Wildlife Health Challenges: 
    • Indian wildlife is facing various health issues, including infectious diseases (Canine Distemper Virus), habitat loss, climate change impacts, and illegal activities. 
      • The policy is required as India is home to over 91,000 species of wildlife, with more than 1,000 protected areas, including national parks, wildlife sanctuaries, and biosphere reserves. 

Central Zoo Authority 

  • The Central Zoo Authority (CZA) is a statutory body under the Ministry of Environment, Forest and Climate Change, established in 1992 under the Wildlife (Protection) Act, 1972. 
  • It is chaired by the Environment Minister and has 10 members and a member-secretary. 
  • Its objective is to complement and strengthen the national effort in conservation of rich biodiversity.

Wildlife_Conservation_Initiatives

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Q. If a particular plant species is placed under Schedule VI of the Wildlife Protection Act, 1972, what is the implication? (2020)

(a) A licence is required to cultivate that plant.  

(b) Such a plant cannot be cultivated under any circumstances.  

(c) It is a Genetically Modified crop plant.  

(d) Such a plant is invasive and harmful to the ecosystem.  

Ans: (a)

Q. Which of the following can be threats to the biodiversity of a geographical area? (2012)

  1. Global warming  
  2. Fragmentation of habitat  
  3. Invasion of alien species  
  4. Promotion of vegetarianism  

Select the correct answer using the codes given below:

(a) 1, 2 and 3 only

(b) 2 and 3 only

(c) 1 and 4 only

(d) 1, 2, 3 and 4 

Ans: (a)

Place In News

Pollution in Hindon River

Source: DTE 

The Hindon River, a rain-fed Yamuna tributary, has turned into a drain of untreated waste, symbolising environmental degradation and endangering communities along its industrial belt in Western Uttar Pradesh. 

  • The Hindon River originates from the lower Shivalik ranges in the Saharanpur District of Uttar Pradesh and flows through the industrial belt of Western Uttar Pradesh, covering 400 km before joining the Yamuna in Noida. 
  • The river’s major tributaries include: Kali (West) River and Krishni River. 
  • Historically, the Hindon River supported agriculture and fisheries in Western Uttar Pradesh. However industrialization and urbanization have destroyed its ecological balance. 
  • In 2015, the Central Pollution Control Board (CPCB) declared the Hindon River a "dead river," citing extreme pollution levels and its unfitness for bathing in several sections. 
    • A dead river is a water body that has lost its ability to support aquatic life and ecosystem functions due to extreme pollution or environmental degradation. 

Hindon_River

Read More: Yamuna River

Rapid Fire

Kailash Manasarovar Yatra

Source: TH 

India and China held 23rd Meeting of the Special Representatives (SRs), reaffirming the disengagement agreement at the Line of Actual Control (LAC). 

  • The talks discussed resuming the Kailash Manasarovar Yatra (KMY), a sacred pilgrimage to Mount Kailash and Mansarovar Lake in Tibet, which has been suspended since 2020 due to the Covid-19 and the non-renewal of arrangements by China. 
  • India organizes the KMY annually between June and September through the Lipulekh Pass (since 1981) in Uttarakhand and the Nathu La Pass (since 2015) in Sikkim.  
  • The KMY is revered by Hindus, Jains, Buddhists, and Bon followers. Hindus believe Lord Shiva resides at the peak, while Jains regard it as Mount Ashtapada, where Rishabhadeva achieved liberation. 
    • The Mansarovar Lake, near Mount Kailash is revered for its spiritual power. 
    • The pilgrimage is managed by Kumaon Mandal Vikas Nigam, in collaboration with India's Ministry of External Affairs and the Government of China. 
  • Mount Kailash (elevation 6,638 meters), is a diamond-shaped peak made of black rock and the source of major rivers in Asia, including the Brahmaputra, Sutlej, Indus, and Karnali. 

Kailash_Manasarovar_Yatra

Read more: New Road to Kailash Mansarovar 

Rapid Fire

Kisan Kavach

Source: PIB 

Recently, the Ministry of Science & Technology unveiled Kisan Kavach, India's first anti-pesticide bodysuit, that prevents chemicals from leaching into the skin.  

  • Kisan Kavach: Kisan Kavach is designed to protect farmers from the harmful effects of pesticide exposure, including respiratory disorders, vision loss, and even death. 
    • It is made of ‘oxime fabric’ that can chemically breakdown any of the common pesticides that get sprayed onto cloth or body during spraying operations. 
    • The manufacturing process involves nucleophilic-mediated hydrolysis on cotton fabric to deactivate pesticides.  
    • It is developed by BRIC-inStem, Bangalore, in collaboration with Sepio Health Pvt. Ltd. 
  • Pesticide Use: According to the Food and Agricultural Organisation (FAO), India used over 61,000 tonnes of pesticide in 2020.  
    • India produces about four times more pesticide than it uses. 
  • Pesticide Poisoning: Globally, 385 million cases of acute pesticide poisoning occur annually, causing 11,000 deaths, with highest impact in South Asia. 

Read More: Pesticide Poisoning 

Rapid Fire

Wroughton’s Free-Tailed Bat

Source: IE 

Recently, a rare bat species called Wroughton’s free-tailed bat (Otomops wroughtoni) has been spotted in Delhi’s Yamuna Biodiversity Park. 

Wroughton’s Free-Tailed Bat: 

  • It is a highly rare species of molossus bat family. 
  • Conservation Status: 
  • Geographical Distribution: It is primarily found in the Western Ghats with a single known breeding colony. 
  • Physical Characteristics: It has large size with prominent, large ears extending beyond the muzzle, bicoloured velvet fur and is known for its powerful flying capabilities. 
  • Ecological Role: It plays a critical role in insect population regulation and is known to assist in pollination. 
  • Habitat: It roosts in caves or dark, damp, and slightly warm places, usually in moderate-sized colonies. 
  • Significance: 
    • Delhi is home to about 14 bat species, including 4 considered locally extinct: the Indian false vampire, black-bearded tomb bat, Egyptian free-tailed bat, and Indian pipistrelle. 
    • Aravalli Biodiversity Park (Gurugram) is the only known roosting site (rest place) for the Blyth’s horseshoe bat in Delhi NCR. 

 

Read More: Indian Flying Fox Bat: Pteropus giganteus 

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