Civil Services Mentor November December 2015

Page No.
Index
Sustainable Development Goals

Page No.
4
Smart Cities
NOV. - DEC. 2015
Page No.
Designed by:
Chandan Kumar Raja
6
Agricultural Problems and Action Taken
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CURRENT AFFAIRS
National Issues
International Issues
India & the World
Economy
Science and Technology
Sports
Selected Articles from

Various Newspapers & Journals
Page No.
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Indian Satellite System
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Amendments to the Arbitration and

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SUSTAINABLE DEVELOPMENT GOALS

Socio economic caste census
revealed that out of 24.39 crore
households in India, 17.91 crore live
in villages. Agriculture is backbone
of rural India and in that way majority
of Indias population depend upon
the agriculture. Socio economic
caste census alsoputs a disturbing
picture of 10.69 crore deprived
households. Agriculture can also help
in bringing these deprived
households out of deprivation.
According to World bank, agriculture
raises income of poor households 2.5
times as much as growth in other
sectors does. Over the years Indian
agriculture sector has faced various
challenges like stagnent productivity,
declining profitability, insecurity,
drought etc.
There are various reasons for the
problems which agriculture sector is
facing. Real price of agriculture
commodities are not increasing in
tune with the increasing cost of the
inputsinagriculturelikefertilizers,
labour etc. Indian farmers also face
the problem of poor quality seeds.
This leads to poor productivity
compared to other countries. Indian
2
farm productivity for most

commodities is 40-50 percent of the
international average. Yield needs to
be increased in order to provide food
security to large population of India
in the future. Other challenges
include lack of mechanisation, soil
erosion, degrradation in soil, poor
harvest losses and inefficient
agriculture marketing system. The job
potential or employment
opportunities and the earnings in the
agriculture sector are not high.
However, as per 2011 Census, nearly
54.6 per cent of the total workers are
stillengagedinagriculturalactivities,
mainly in subsistence farming. This is
partly due to the manufacturing and
industrial sector not generating
adequate employment opportunities
to absorb the labour force from the
agriculture sector and partly due to
the lower level of education and skills
of the labour force in the agriculture
sectorwhichfinditdifficulttomigrate
to other sectors.
Over the last year government
has taken various steps to solve the
problem of agriculture sector.
Important among them include:
Paramparagat Krishi Vikas

Yojana (PKVY);
Soil Health Card Scheme;
Pradhan Mantri Krishi Sinchayi
Yojana (PMKSY) ;
National Agricultural Market ;
National Mission for
Sustainable Agriculture
(NMSA);
National Crop Insurance
Programme (NCIP).
Along with the regular problems
associated with agriculture last two
years have seen drought across India
due to the effects of el-nino. In order
to solve the problem of drought this
year government has taken various
steps. Important among them are
given below:
Allocation of additional days of
work under MGNREGA to
households in drought
affected areas: The
Government has decided to
provide an additional 50 days
of unskilled manual work in the
financial year over and above
the 100 days assured to job
card holders in such rural areas
where drought or natural
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calamities has been notified.
This will enable States to
provide additional wage
employment to rural poor in
drought affected areas.
Diesel Subsidy Scheme for
farmersinaffectedareas:Ithas
been decided to provide
diesel subsidy to the farmers
to enable them to provide life
saving irrigation through diesel
pump sets in the drought and
deficitrainfallareastoprotect
the standing crops (allocation
of Rs.100 cr). The farmers in
the affected regions will be
covered during the current
SouthWest monsoon period till
30th September, 2015.
Enhancement of ceiling on
Seed subsidy. In order to
compensate the farmers in the
drought affected districts for
the additional expenditure
incurred in the sowing and /or
purchasing appropriate
varieties of drought resistant
seeds it has been decided to
raise the extant ceiling on seed
subsidy by 50% over existing
levels for distribution in
drought notified districts. The
enhancement is valid till
31.12.2015.
Interventions for saving
perennial horticulture crops:
Appropriate input support
measures will be provided to
rejuvenate water stressed
horticulture crops, with an
additional allocation of Rs.150
crore. The scheme is to be
implemented in all drought
affecteddistricts/blocksinthe
country which are covered
under Mission for Integrated
Development of Horticulture
(MIDH), being implemented
by Dept. of Agriculture,
Cooperation& Farmers
Welfare.
Flexible allocation under RKVY
and other centrally sponsored

schemes: States have been
advised to keep aside about 5
to 10% of fund allocated under
Rashtriya Krishi Vikas Yojana
(RKVY) for undertaking
appropriate interventions, if
the situation so warrants, to
minimize the advance impact
of an aberrant monsoon on the
agriculture sector.
Advisories to the states: State
Governments have already
been advised to initiate
advance remedial action e.g.
constructing water harvesting
structures under MGNREGA
and other such schemes,
promoting agronomic
practices for moisture
conservation, promoting
cultivation of less water
consuming crops and
restoring irrigation
infrastructure by desilting
canals, energizing tubewells,
replacing/repairing faulty
pumps.
Availability of seeds and other
inputs for kharif, 2015 :
Availability of seeds and other
inputs is being monitored /
reviewed on a continuous basis
in the weekly Crop Weather
Watch Group (CWWG)
Meetings being held in the
Department of Agriculture.
Weekly video conference with
States is also being held to get
firsthand information about
States preparedness and to
advise States appropriately

whenever needed.
Crisis management plan for
drought for the year 2015: A
Crisis Management Plan (CMP)
for Drought has been in place
and is available at the website
of Dept. of Agriculture &
Cooperation, Min. of
Agriculture. The plan has also
been updated recently in
consultation with Stakeholder
Ministries/Departments.
SDRF/NDRF funds First
Instalment of SDRF released :
The State Government is
primarily responsible for
providing necessary relief in
the wake of natural calamities.
Government of India
supplements the efforts of
state Governments with
financial assistance. For
undertaking relief measures,
funds are available with the
State Governments in the form
of State Disaster Response
Fund (SDRF). Additional
financial assistance, over and
above SDRF, is considered
from National Disaster
Response Fund (NDRF) for
natural calamities of severe
nature and is approved on the
basis of Memorandum
received from State
Government in accordance
with established procedure,
keeping in view items and
norms in vogue for assistance.

Smart Cities
SMART CITIES
There is no universally
accepted definition of a smart city.
Its meaning changes with places and
people. The conceptualisation of
Smart City varies from city to city and
country to country, depending on the
level of development, willingness to
change and reform, resources and
aspirations of the city residents.
Government has recently came up
with smart city mission. Mission
attempts to make cities a better place
to live with better infrastructure and
clean habitable conditions. The
mission will cover 100 cities with in
the period of 2015-2020. The mission
may be continued after the said
period after the evaluation done by
Ministry of Urban development. The
focus is on sustainable and inclusive
development and the idea is to look
at compact areas, create a replicable
model which will act like a light house
tootheraspiringcities.
The core infrastructure
elements in a smart city would
include:
.i adequate water supply,
i. assured electricity supply,
ii. sanitation, including solid
4
waste management,
iv. efficient urban mobility and
public transport,
v
. affordable housing, especially
for the poor,
vi. robust IT connectivity and
digitalization,
vii. good governance, especially
e-Governance and citizen
participation,
viii. sustainable environment,
ix. safety and security of citizens,
particularly women, children
and the elderly,and
x. health and education.
The total number of 100 smart
cities have been distributed among
the States and UTs on the basis of an
equitable criteria. Deciding criteria
gives 50 percent weigthage to urban
population of the state and rest 50
percent is given to the number of
statutory towns in the state. Each
state/UT will have atleast one smart
city. Uttar pradesh will have highest
number of smart cities numbered
thirteen, U.P. is followed by Tamil
nadu with 12 and Maharastra caps the
top three with 10. Same distribution
formula has also been used for
allocation of funds under Atal Mission

for Rejuvenation and Urban
Transformation - AMRUT. The
distribution of smart cities will be
reviewed after two years of the
implementation of the Mission. Based
on an assessment of the performance
of States/ULBs in the Challenge, some
re-allocation of the remaining
potential smart cities among States
may be required to be done by
MoUD.
There are some typical features
of comprehensive development in
Smart Cities which are described
below.
.i Promoting mixed land use in
area based developments
planning for unplanned areas
containing a range of
compatible activities and land
uses close to one another in
order to make land use more
efficient;
i
. Housing and inclusiveness expand housing opportunities
forall;
iii. Creating walkable localities
reduce congestion, air
pollution and resource

Smart Cities
iv.
v
.
vi.
vii.
viii.
depletion, boost local

economy, promote
interactions and ensure
security;
Preserving and developing
open spaces - parks,
playgrounds, and recreational
spaces in order to enhance the
quality of life of citizens,
reduce the urban heat effects
in Areas and generally promote
eco-balance;
Promoting a variety of transport
options - Transit Oriented
Development (TOD), public
transport and last mile paratransport connectivity;
Making governance citizenfriendly and cost effective increasingly rely on online
services to bring about
accountability and
transparency, especially using
mobiles to reduce cost of
services and providing
services without having to go
to municipal offices;
Giving an identity to the city based on its main economic
activity, such as local cuisine,
health, education, arts and
craft, culture, sports goods,
furniture,hosiery,textile,dairy,
etc;
Applying Smart Solutions to
infrastructure and services in
area-based development in
order to make them better. For
example, making Areas less
vulnerable to disasters, using
fewer resources, and
providing cheaper services.
Each aspiring city competes for
selection as a smart city in what is
called a City Challenge. There are
two stages in the selection process.
The State/UT begins with shortlisting
the potential smart cities on the basis
of conditions precedent and scoring
criteria and in accordance with the
total number allocated to it. The first
stage of the competition will be intrastate, in which cities in the State will
compete on the conditions
precedent and the scoring criteria
laid out. These conditions precedent
have to be met by the potential cities
to succeed in the first round of
competition and the highest scoring
potential smart cities will be
shortlisted and recommended to
participate in Stage 2 of the
Challenge. In the second stage of the
competition, each of the potential
100 smart cities prepare their
proposalsforparticipationintheCity
Challenge. This is a crucial stage as
each citys Smart City Proposal (SCP)
is expected to contain the model
chosen, whether retrofitting or
redevelopment or greenfield
development or a mix thereof, and

additionally include a Pan-City
dimension with Smart Solutions. An
evaluation criteria for the SCPs has
been worked out by MoUD based on
professional advice and this should
act as guidance to the cities for
preparing their proposal.
The Smart City Mission will be
operated as a Centrally Sponsored
Scheme (CSS) and the Central
Government proposes to give
financial support to the Mission to the
extent of Rs. 48,000 crores over five
years i.e. on an average Rs. 100 crore
per city per year. An equal amount,
on a matching basis, will have to be
contributed by the State/ULB;
therefore, nearly Rupees one lakh
crore of Government/ULB funds will
be available for Smart Cities
development.
Cities accommodate nearly 31%
of Indias current population and
contribute 63% of GDP (Census
2011). Urban areas are expected to
house 40% of Indias population and
contribute 75% of Indias GDP by
2030.StillcitiesinIndialacksocial,
economic and physical infrastructure.
Smart city mission will help in solving
this problem. This will improve trhe
quality of life of people living in the
cities and cities will be less
overburdened.
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Smart Cities
AGRICULTURAL PROBLEMS AND ACTION TAKEN

India is one of the youngest
nations in the world with more than
62% of its population in the working
age group (15-59 years), and more
than 54% of its total population below
25 years of age. Skill building is
absolutely necessary for such
population to the increase in
productivity of any nation, skill
development also helps in improving
the quality of products. Skill
development will also lead to
increase in growth rate of economy.
At the individual level skill
development helps in economic as
well as social empowerment of the
citizens. Focus on skill development
in India is necessary from the very
reason that it has greater proportion
of working population vis--vis China,
Western Europe, and North America.
Based on data from the 68th Round
of NSSO, it is estimated that only 4.69
percent of Indias total workforce has
undergone formal skill training,
compared with 52 percent in the
USA, 68 percent in the UK, 75
percent in Germany, 80 percent in
Japan and 96 percent in South
Korea. This demographic profile
6
provides unique opportunity to India

for 20 to 25 years to reap the benefits
which arre called as demographic
dividend. The demographic
dividend is essentially due to two
factors
(a) declining birth rates and
(b) improvement in life
expectancy.
The declining birth rate
changes the age distribution and
makes for a smaller proportion of
population in the dependent ages
and for relatively larger share in the
productive labor force. The result is
low dependency ratio which can
provide comparative cost advantage
and competitiveness to the
economy. The demographic
dividend accounts for India having
worlds youngest work force with a
median age way below that of China
and OECD Countries.
Demographic dividend can
only be made if the economy or state
has place to ansorb them. As per
estimates global economy is
expected to see a shortage of
manpower to the extent of around
56 million by 2020, this will nicely
compliment the skill development

initiatives of India. Thus, the
demographic dividend in India
needs to be exploited not only to
expand the production possibility
frontier but also to meet the skilled
manpower requirements of in India
and abroad. Skill development is also
necessary to bring the connection
between the education institutes and
the working atmoshphere. In order
to develop the skills of the people
governments have taken various
initiativeslikeopeningITIs,Creating
a seperate ministry for skill
development etc. Recently
government has launched a skill
development mission to make the
initiatives time bound.
Various plans have taken
initiatives to To reap the benefits of
demographic dividend, the
Eleventh Five Year Plan had favored
the creation of a comprehensive
National Skill Development Mission.
Government has taken following steps
as a result of the eleventh five year
plan recommendation. A
Coordinated Action on Skill
Development with three-tier

Agricultural Problems and Action Taken

institutionalstructureconsistingof
(i) PMs National Council
(ii) National Skill Development
Coordination Board (NSDCB),
(iii) National Skill Development
Corporation (NSDC) was
created in early 2008.
Whereas, Prime Ministers
National Council on Skill
Development has spelt out
policy advice, and direction in
the form of Core Principles
and has given a Vision to create
500 million skilled people by
2022 through skill systems.
Similarly twelth five year plan
recommended the following:
Involvement of industries in the
skill development of people;
Improve the management of
vocational institutes as well as
traininginstitutes;
Amendment of the labor laws
to make it easier to hire the
apprentices;
Vocational training institutes
should be given greater
freedom in terms of resource

generation.
Despite all these efforts along
with other efforts like the creation of
the National Skill Development Fund
(NSDF) in 2009, the launch of the
NSDC in the same year, and creation
of the NSDA in 2013, progress to date
has been sporadic. India continues
to face a skilling challenge of vast
proportions. Based on the Census
2011 and NSSO (68th Round) data,
it is estimated that 104 million fresh
entrants to the workforce will require
skill training by 2022, and 298 million
of the existing workforce will require
additional skill training over the same
time period.
Recently government has
launched an ambitious program
named as Skill development
mission. The National Skill
Development Mission will provide a
strong institutional framework at the
Centre and States for implementation
ofskillingactivitiesinthecountry.The
Mission will have a three-tiered, high

powered decision making structure.
At its apex, the Missions Governing
Council, chaired by the Prime
Minister, will provide overall
guidance and policy direction. The
Steering Committee, chaired by
Minister in Charge of Skill
Development, will review the
Missions activities in line with the
direction set by the Governing
Council. Government has also
recently transferred the Training and
Apprenticeship verticals, comprising
of the entire network of Industrial
Training Institutes (ITIs) and
Apprenticeship Training schemes,
from the Ministry of Labour and
Employment to Ministry of Skill
Development and Entrepreneurship
(MSDE). All these recent initiatives
will help in bringing down the gap
between the requirement of skilling
and the present level of skilling in
India.

National Issues
NATIONAL ISSUES
In the Eyes of World Bank
Gujarat is the best state for ease
of business
Gujarat, the state Prime Minister

Narendra Modi ran for more than
a decade, is Indias best place
for conducting business, the
World Bank said on Monday, in
a report that ranks the countrys
states in an effort to encourage
them to cut red tape.
The report, prepared with
support from KPMG on the
request of the Modi
government, gains importance
by coming before the World
Banks annual Doing Business
report, which ranks nations and
is expected to be released next
month.
Since taking charge in May
2014, Modi has set an ambitious
target of improving by 2017
Indias national ranking from a
woeful 142 of 189, below
Pakistan and Iran, to the top 50.
Last year, India slipped two
spots in the report, and was
ranked lower than Brazil, Russia,
China and South Africa - mainly
because of delays in approvals
for starting a business, tax
payments, getting bank loans
and property registration.
Mondays report suggested that
8
such steps as offering singlewindow clearances for

administrative approvals, if
followed by all states, could
improve Indias global ranking.
It said that states including
the top five, Gujarat, Andhra
Pradesh,
Jharkhand,
Chhattisgarh and Madhya
Pradesh had implemented
reforms in online tax payments,
construction,
permits,
electricity connections and
environmental clearances in a
specified time.
Smart Cities rank low in
swachh bharat ranking
Many cities selected for new

urban initiatives under the
Centres flagship programmes
are found to be wanting on the
sanitation front and are low on
swachh bharat ranking causing
concern for the government.
With the states on course of
preparation of city level plans
under the flagship new urban
initiatives of Smart City Mission,
Atal Mission for Rejuvenation
and Urban Transformation
(AMRUT) and Heritage City
Development
and
Augmentation
Yojana
(HRIDAY), the common

underlying concern is ensuring
sanitation under all these
schemes.
Concern over cleanliness in
urban areas is highlighted by
the fact that only 3 of the 98
cities selected so far under
Smart City Mission figure among
the top 10 clean cities and most
of the 12 HRIDAY cities ranked
very low in Swachh Bharat
Rankings, according to the data
prepared by the Urban
Development Ministry for 476
Class-1 cities of the country.
UD Ministry is currently
conducting workshops for states
and urban local bodies for their
understanding of various
aspects of preparation of city
level smart city plans.
Of the 98 cities identified, 88
of them were given swachh
bharat rankings. Of these, only
3 cities Kochi, Tiruchirapally and
Navi Mumbai are among the top
10 clean cities in the country.
While 29 of these 98 figured
among the top 100 cities, in a
matter of concern, 38 smart city
nominees were ranked beyond
200, including 20 between
swachh bharat rankings of 301476.
Of the 12 HRIDAY Cities, 8 were
given swachh bharat rankings.
Of these, only Warangal
(Andhra Pradesh) got a good
swachh bharat rank of 33 while
the remaining 7 were ranked
between 290 (Kanchipuram)
and 430 (Amritsar). Swachh
Bharat Ranking of other HRIDAY

National Issues
cities, which are of cultural and

tourism importance are Mathura
(299), Gaya (334), Puri (398)
and Varanasi (418).
Accordingly, sanitation has
been made an integral
component of all new schemes
like Smart City Mission, AMRUT
and HRIDAY besides launching
Swachh Bharat Mission.
He said under AMRUT, focus is
on ensuring clean water supply
and sewerage connection to all
urban households besides
storm water drains while under
Smart City Mission the emphasis
is on decentralized water and
solid waste management and
application of smart solutions.
Under Swachh Bharat Mission,
the principal objective is to
eliminate open defecation and
100 per cent door-to-door
collection, transportation and
scientific disposal of municipal
solid waste. Convergence of
these
schemes
in
implementation should help in
achieving intended results
including sanitation.
He also said that the purpose of
setting up a meeting of about
100
Swachh
Bharat
Ambassadors with President
Pranab Mukherjee on Thursday
was to further galvanise
awareness generation activities
about cleanliness.
Contrary to the popular adage
that small is beautiful, it turned
out that small cities are not
necessarily the clean cities. Of
the 482 towns and cities with a
population of above one lakh
each identified as AMRUT cities,
245 have a population between
one and two lakh each.
Of these, only 3 cities Hassan
(Karnataka), Gangtok (Sikkim)
and Halisahar (West Bengal)
figured among the top 10 clean

cities and 40 among the top 100
clean cities.
106 of these 245 cities were
ranked low between 300 and
476.
Central Government has
provisioned central assistance
of Rs 48,000 cr for Smart City
Mission, Rs 50,000 cr for AMRUT
for the next five years and Rs
500 cr for HRIDAY during 201517.
Under Smart City Mission, Rs
100 cr central assistance will be
provided to each of the 100
selected cities per year with
states and urban local bodies
providing matching funds.
Sanitation projects including
solid waste management have
to be taken up with resources
from other sources including
borrowings and PPP.
Under AMRUT, Centre will
provide 50 per cent of the
project cost for universal
coverage of water connections
and sewerage networks for
cities with population of up to
10 lakhs with states requiring to
meet at least 20 per cent of
project cost and mobilizing the
rest from the resources of urban
local bodies and other sources.
Central assistance will be 30 per
cent for cities with population
of more than 10 lakhs each.
Swachh Bharat Mission has
been launched in urban areas
last year at an estimated cost of
Rs 66,009 cr out of which
central share is Rs 14,623 cr.
Under this Mission, Centre will
provide an assistance of Rs 4,000
each for construction of
household toilets, 4 per cent of
cost as Viability Gap Funding for
construction of community
toilets and 20 per cent of cost
as Viability Gap Funding for

solid waste management
projects.
Physical targets under Swachh
Bharat Mission in urban areas
include-construction of 1.04
crore individual household
toilets, over 5 lakh community
and public toilets and assisting
30 crore urban people with
solid waste management
services. 100 per cent door-todoor collection of solid waste,
its transportation and scientific
disposal in 83,000 urban wards
by 2019 are envisaged under
the Mission.
Rail ministry to appoint
consultant for HR audit
The rail ministry is set to appoint

an outside and independent
Human Resource (HR)
consultant who will conduct
Indian railways HR audit to
identify gaps in HR-related
policies and the lacunae faced
in their implementation.
The consultant will take up
auditing jobs of various HR
functions
including
recruitment, selection and
promotion for non-gazetted
employees and interact with
the committee on HR issues
headed by the executive
director-training.
The railway board is looking for
dynamic, experienced and
result-oriented professionals
for engagement on contract

National Issues
basis for an initial period of one
year, which is extendable
based on performance and
quality output. Post interviews
for selection of candidates,
who are required to be below
45 years, the consultant will be
posted at the railway board on
a monthly remuneration of Rs
50,000.
The railway boards decision is
in line with the budget
promises made by rail minister

Suresh Prabhakar Prabhu in
February. Asserting that the 1.3
million strong workforce of
Indian railways is its strength,
Prabhu had said in his budget
speech in February, To
prepare them (employees) for
the future and for enhancing
organisational performance,
systematic HR audit will be
undertaken.
World Hindi conference in Bhopal
The 10th World Hindi

Conference in Bhopal saw a
conflict of sorts, perhaps
inadvertently, between Prime
Minister Narendra Modi and
Union external affairs minister
Sushma Swaraj, as suggested by
their speeches during the
inauguration of the conference
by the PM.
Even as Sushma Swaraj
expressed her concern over
Englishs growing effect on
Hindi, the PMs speech was
liberally peppered with English
words.
During the inauguration session,
external affairs minister Sushma
Swaraj, her deputy VK Singh
and chief minister Shivraj Singh
10
Chouhan made efforts to use

pure Hindi words in their
speeches even if they found
some words difficult to
pronounce.
Sushma Swaraj said, I am
pained to say that today, not
only do we have to think of
promotion (Sanvardhan) of
Hindi but also its protection
(Sanrakshan). The way Englishs
growing effect is reflected in
Hindi, the language is losing its
identity (Asmita).
Sushma Swaraj who consciously
chose to stick to Hindi words,
accidentally used English word
report once after mentioning
rapat (the Hindi word for
report) at least twice. However,
she corrected herself and stuck

to Hindi.
However, when the Prime
Minister Narendra Modi rose to
speak, he used English words
several times in his speech. The
English words that his speech
featured included agencies,
Gandhian, stethoscope,
thermometer, drainage,
electrifying effect secretariat,
dictionary, Russia, Russian,
requirement technology,
acknowledge, aspiration,
values, digital world,
message, convey, software,
expert, app, market,
modern,
exclusive,
inclusive, mobile phone,
contact list etc.
The PMs frequent use of English
words appeared to be in sync
with the message he imparted
through his speech on Hindi
language, in which he stressed
the need for organising
workshops in Hindi and other
Indian languages and including
words from them in Hindi.
Modi, however, didnt talk of
assimilating foreign languages in
Hindi, but his speech sent out a
message that Hindi needed to
be made flexible.
Moodys raises a valid question
Global rating agency Moodys

has raised a few questions on
the Reserve Bank of India (RBI)
decision to award the domestic
systemically important banks
(D-SIBs) status to only two
banking entities.

National Issues
The agency has said the central
banks approach on D-SIBs or
too-big-to fail entities is less
stringent
than
other
jurisdictions, hence credit
negative.
Last week, the RBI named the
countrys largest lender, State
Bank of India (RBI) and ICICI
Bank as D-SIBs.
This surprised some banking
industry observers since the
central bank, in its July 2014
framework for D-SIBs, had said
it expects that about 4-6 banks
may be designated as D-SIBs
under various buckets.
This was, however, based on the
31 March 2013 numbers.
Moreover, SBI and ICICI Bank
were sure picks as they are the
biggest banks in the industry.
In simple terms, D-SIBs are
those interconnected entities,
whose failure can impact the
whole of the financial system
and create instability.
The criterion to decide the
primary sample of D-SIBs was
done by selecting banks with
asset size beyond 2 percent of
GDP.
Going by this methodology, at
least 13 banks fall under this
category.
These include Bank of Baroda,
Bank of India, PNB and HDFC.
To be sure, the 2 percent cutoff is used to select the primary
sample.
The RBI would further scrutinise
this list of banks based on
interconnectedness, lack of
readily available substitutes or
financial
institution
infrastructure and complexity.
The RBI can exercise its
discretion on the final list and
hence the central bank can
justify the selection of only two
banks from about 27 public

sector banks, 19 private sector
banks and 43 foreign banks.
But, according to Moodys, the
Indian central bank has taken a
less stringent approach in
categorising the D-SIB
category.
do not invest in infrastructure to

make optimum use of available
airwaves and improve quality of
services, sources said.
Government to modernize
Nehru Museum
The National Implementation

Committee constituted by the
government has recommended
plans for modernization of the
Nehru Museum in New Delhi as
part of the 125th Birth
Anniversary of Indias first prime
minister Jawaharlal Nehru.
The recommendations were
made with a view to spread the
Nehrus ideas and awareness
about freedom struggle and
history of modern India.
There will be a special focus
on the governance of India
under Jawaharlal Nehru as the
first Prime Minister of India
which has been largely left out
in the present exhibition, a
statement from Nehru Museum
said.
The modernization plan
includes the Teen Murti Bhavan,
home of Nehru as the prime
minister.
Govt find new way to resolve
call drops
The Department of Telecom
may go slow for auction of
spectrum next year if operators
According to official sources,

the DoT is of the view that
despite auctioning the largest
amount of spectrum earlier this
year, operators are not investing
in infrastructure, as required,
which is leading to call drop
problem.
The DoT had planned to
conduct the auction early next
year but is now reconsidering
on the timeframe.
The DoT has already written to
sectoral regulator TRAI for
seeking reserve price of various
bands including 700, 800, 900,
1800, 2100 and 2300 MHz that
can be used for 2G, 3G and 4G
services.
The government expects a
revenue Rs 42,865.62 crore from
communication services in
2015-16, which include
proceeds from spectrum
auction and other charges
levied by the DoT.
An audit by DoT recently found
out lack of investment in
infrastructure along with
operators putting more
equipment for 4G services than
for 2G or GSM as the main
reasons for call drops.
HC allows permanent
commission for women in Navy
In a major relief for women naval
officers, Delhi High Court on
11

National Issues
Friday allowed a bunch of pleas
seeking permanent commission
for them in the force, saying
sexist bias and service bias
would not be allowed to block
progress of women.
The court, while granting their

plea, said the women are here
to stay and since they work
shoulder to shoulder with their
male counterparts, it would
frown upon any endeavour to
restrain the progress of women.
While the Army and Air Force
allow permanent commission
for women, the Navy has limited
women officers only to short
service commission of 14 years.
A bench of justices Kailash
Gambhir and Najmi Waziri also
allowed the women naval
officers
plea
seeking
retirement benefits like pension.
Women naval officers were not
eligible for pension as it
required 20 years of service.
The order came on the plea of
several naval women officers,
both retired and serving, from
the logistics, education and air
traffic control departments of
the Navy.
The women naval officers in
their pleas in the high court had
sought similar rights as their
counterparts in the other two
wings of the armed forces.
They had also alleged gender
discrimination, saying while
women officers were only
entitled to short service
commission, men were entitled
12
to both short service as well as

permanent commissions.
calculate the base rate for

lending.
India has added 52 million

Internet users in first six
months
India has added 52 million

Internet users in first six months
of the year, taking the total user
base to 352 million as on June
30, 2015, industry body IAMAI
today said.
Interestingly, 213 million (over
60%) users accessed the
worldwide web through
mobile devices.
The number of Internet users
has grown over 26% from 278
million in October 2014. The
number of mobile Internet
users has also grown about 40%
from 159 million users in
October last year.
The Internet in India took more
than a decade to move from 10
million to 100 million and 3 years
from 100 to 200 million.
However, it took only a year to
move from 200 to 300 million
users. Clearly, Internet is
mainstream in India today, it
said.
RBI suggested banks to

consider marginal cost of funds
to calculate individual lending
rates.
RBI said that it would
implement these proposals with
effect from April 1, 2016. Banks
were asked submit a road map
clearly indicating the time frame
for adopting these guidelines
two months prior to the final
implementation.
The components of Base Rate
will include cost of funds,
negative carry on CRR/SLR, unallocable overhead costs and
average return on networth.
At present, banks follow
different methodologies for
computing their Base Rate.
While some use the average cost
of funds method, some have
adopted the marginal cost of
funds while others use the
blended cost of funds
(liabilities) method.
Rajiv Mehrishi new Home
secretary
RBI proposes formula to

calculate Base Rate
To bring in uniformity among
banks for calculation of base
rate and for effective
transmission of policy rates, the
Reserve Bank of India (RBI) on
Tuesday proposed a formula to
Union home secretary LC Goyal

was unceremoniously shunted

National Issues
out of the powerful ministry on

Monday to be replaced with
finance secretary Rajiv Mehrishi
hours before the latter was to
superannuate on turning 60,
marking a stunning twist in the
careers of the two senior
bureaucrats.
On a day of contrasting fortunes
for the two IAS officers, Goyal,
perceived by many to be
difficult and out of sync with
the style of the government,
was made to make way in
disregard of his defence.
He reacted to the setback by
taking voluntary retirement but
was compensated with the
position of chairman of Indian
Trade Promotion Organization
a not-so-glamorous body that
is best known for organizing
trade fairs.
Mehrishi was succeeded by R
Wattal as finance secretary,
completing the process of
putting in place a new team in
the finance ministry just before
the preparation for the next
Budget kicks off.
Goyal was appointed home
secretary in February after his
predecessor Anil Goswami
allegedly approached the CBI
for a scam accused, and given
that the home secretary has a
tenure of two years, would have
remained in the saddle until
February 2017.
Besides Goswami and Goyal,
former foreign secretary Sujatha
Singh was another officer
holding a position with a
supposedly two year-tenure
who did not get to complete
her term under the Modi
government.
He is perhaps the first IAS
officer, at least in recent times,
to have served as both finance
and home secretary.
Apex court issued notice to the

Centre and Rajasthan government on Santhara
The Supreme Court stayed the

Rajasthan high court order
declaring the practice of
Santhara or Sullekhana within
the Jain community as illegal.
The SC agreed to examine the
validity of the Rajasthan HC
order declaring Santhara as
criminal and suicidal act.
The apex court issued notice to
the Centre and Rajasthan
government.
Santhara means a fast unto
death.
A person after taking a vow of
Santhara stops eating and even
drinking water and awaits
death.
The Rajasthan HC on August 10
had called the practice
punishable under section 309
of the IPC as an attempt to
commit suicide.
The HC also ordered support to
Santhara by any person
punishable as abetment under
section 306 of the IPC.
The centuries-old practice has
been in the news since 2006
when 93-year-old Keila Devi
Hirawat from Jaipur performed
Santhara, triggering a debate in
the world media whether such

a practice is out of place in the
modern era.
Jain saints argue that Santhara is
a voluntary act carried out
rationally and cannot be
considered suicide.
They say it is something one
does with full knowledge and
intent, unlike suicide which is
typically an emotional and
impulsive act.
15% of Indias power by 2030 to
be green, says NITI Aayog
The National Institution for
Transforming India (NITI)
Aayog has told the environment
ministry that renewable sources
can make up at least 15% of
Indias energy mix by 2030 if
present policies are given a
push.
This analysis was done as part
of the governments strategy to
enumerate Indias climate
action plan to be submitted to
United Nations.
The action plan, called
Intended
Nationally
Determined Contributions
(INDCs), is awaiting Cabinet
13

National Issues
approval and is expected to be

made in the first week of
September.
Environment minister Prakash
Javadekar had said that Indias
submission to the UN will be the
most exhaustive, covering all
crucial climate change areas
mitigation, adaption, finance,
technology.
As energy is the most important
component of the INDCs, the
NITI Aayog has conducted a
detailed analysis of the futuristic
energy needs depending on
different scenarios.
The analysis shows it would be
a big leap for India as renewable
energy currently contributes to
less than 6% of the countrys
energy mix.
Prime Minister Narendra Modi
has announced setting up a
green power capacity of 175
gigawatts (GW) by 2022 to
ensure every household gets
adequate power.
Indias power demand by 2030
is expected to be about 10 lakh
MW.
According to the panel, the
biggest contributors to
enhanced green power will be
solar and wind energy,
contributing about 70% to total
power
generation
by
renewable, followed by nuclear
energy.
India plans to generate 20,000
MW of power from nuclear
energy by 2030, when
renewable is expected to
contribute 2,00,000 MW of
energy.
Congress fumes,notification on
land law
The main Opposition Congress
on Saturday fumed at Prime
Minister Modis government,
14
saying that notification was

against written advice tendered
by the governments own law
ministry and a slap on the face
of Parliament.
Despite law ministry opposition,

the Central government has
gone ahead and issued an
executive order extending
benefits of the Right to Fair
Compensation
and
Transparency
in
Land
Acquisition, Rehabilitation and
Resettlement Act, 2013
(RFCTLARR Act) to 13 acts so
far not eligible for high
compensation
and
rehabilitation under this law.
In a note submitted to the
Cabinet, the law ministry had
said since the desired
notification under Section 105
of the 2013 Act was not issued
and the one year period has
lapsed, therefore doing so at
this belated stage may not be
legally tenable.
The
ministry
had
recommended that to extend
benefits to other 13 Acts that
include Land Acquisition
(Mines) Act, 1885, the Metro
Railways (Construction of
Works) Act, 1978, and the
National Highways Act, 1956,
Atomic Energy Act etc, they
need to be amended through a
legislation when both Houses of
Parliament are in session or
through an Ordinance.
The main Opposition Congress
on Saturday fumed at Prime
Minister Modis government,

saying that notification was
against written advice tendered
by the governments own law
ministry and a slap on the face
of Parliament.
Party spokesman Jairam Ramesh
said while the substance in the
notification was not in dispute,
it should have come by
December 2014.
After sleeping for over seven
months, the government
suddenly woke up in the wake
of elections in Bihar.
A to Z about Smart City
The Centre on Thursday

declared the names of 98 cities
selected for the Smart City
Project. This is a flagship
project which was announced
by Prime MinisterNarendra Modi
after his government was sworn
into power last year.
PM Modis Union Cabinet
announced the approval of Rs
48,000 crore that will be
allocated to the Smart cities
Project.
The Union Development
Ministry said that they will
provide Rs 100 crore per city
per year over the next five years.
While Uttar Pradesh has
maximum of 13 cities, followed
by 12 by Tamil Nadu and 10 by
Maharashtra to be developed as
Smart Cities, Madhya Pradesh
has seven cities in the project.
Karnataka and Gujarat have six

National Issues
cities each while Bihar and
Andhra Pradesh has three each
and rest of the states have two
and one cities respectively in
the project.
All Union Territories, including
Delhi have found place in the
list.
Here are some pointers about
what is a Smart City:
What is a Smart City?
Smart City is nothing but a vision
of a city that will be equipped
with basic infrastructure.
The urban planners ideally aim
at developing the entire urban
eco-system which will comprise
of institutional, physical, social
and economic infrastructure.
Objective of a Smart City
The main objective of a smart
city is to promote the already
existing cities and to provide
the citizens core infrastructure
and a decent quality of life with
clean
and
sustainable
environment.
What are the core elements of
a Smart City?
The smart city project will
provide the citizens with these
core elements which will in turn
benefit the society:
1. It will provide the citizens
with adequate water.
2. Electricity supply will be assured to the citizens.
3. Proper Solid waste management and sanitation will be
provided.
4. Public transport will be provided to the citizens which
will help in efficient urban
mobility.
5. This project will also provide
affordable housing for the citizens especially for the poor.
6. Information Technology connectivity and digitization will
be given a push.
7. This project will also ensure

that the citizens enjoy good
governance especially eGovernance.
8. Sustainable environment is
also an essential part of the
smart city project.
9. Safety and security of citizens
especially women, children
and the elderly will be given
priority.
10. Health and educational aspects will also be kept in
mind.
Purpose of a Smart City
According to the Smart City
Mission, this project will drive
economic growth and improve
the quality of life of people and
enable development of local
areas.
It will help harness technology
which will lead to smart
outcomes. The government
aims to redevelop slums and
convert them into better
planned ones which will in turn
improve the livelihood of the
entire city.
To accommodate expanding
population of the country, new
areas will also be developed
around the already existing
cities.
A smart city will be the one
which will be able to use
technology, information and
data to improve infrastructure
and services.
It will also focus on employment
and that the poor and the
disadvantaged have some
source of income.
NITI Aayog Unveils Second
Version of Energy Tool
NITI Aayog has launched the
second version of the India
Energy Security Scenarios 2047
calculator (IESS 2047), an open
source Web-based tool which
can be used to explore

different energy scenarios.
According to the statement, the

tool aims to scan a range of
potential future energy
scenarios for India for diverse
energy demand and supply
sectors leading up to 2047.
The energy supply sectors in
focus are solar, wind, bio fuels,
oil and gas, coal and nuclear
power and the demand sectors
include transport, industry,
agriculture, cooking and lighting
appliances.
The model allows users to
interactively make energy
choices and explore a range of
outcomes for the country
from carbon dioxide emissions
and import dependence to land
use.
The tool was unveiled by NITI
Aayog Vice-Chairman Arvind
Panagariya in the presence of a
select gathering at a function at
the Federation House in New
Delhi yesterday.
It will support the governments
vision of achieving power for all
and 175 GW of renewables by
2022, rural electrification and
reducing import dependency.
The purpose of IESS is to
engage various stakeholders in
energy planning and facilitate
informed debate at different
levels.
Girish Sahni taken over as New
CSIR Chief
Girish Sahni, a former director
15

National Issues
of CSIR-Institute of Microbial
Technology in Chandigarh, has
taken over as the new director
general of the Council of
Scientific and Industrial
Research.
He will also be the secretary of
Department of Scientific and
Industrial Research (DSIR), the
science and technology
ministry said on Wednesday.
Sahni has a PhD from the Indian
Institute of Science (IISc) in
Bengaluru
and
has
specialisation in Protein
Engineering, Molecular Biology,
and Biotechnology.
He assumed charge of the CSIR
and the DSIR on August 24.
Born on March 2, 1956, Sahni
joined CSIR-IMTECH in 1991
and became its director in
2005.
PM inaugurated the Call To
Action Summit 2015
Prime Minister Narendra Modi

on Thursday inaugurated the
Call To Action Summit 2015, a
global meet aimed at ending
preventable child and maternal
deaths.
The two-day summit will see
officials from 24 countries
deciding on strategies and
sharing practices, said Rakesh
Kumar, joint secretary in the
Health and Family Welfare
Ministry.
First hosted in the US in 2012,
the global meet aims to end
preventable child deaths by
16
2035. The event is co-hosted by

Unicef, WHO, Tata Trusts and
Bill and Melinda Gates
Foundation.
Niti Aayog CMs panel to stress
on skill development
credit and market linkages be

provided for entrepreneurial
development which can act as
force multiplier for employment
generation.
The panel focused on need for
overcoming the shortage of
trainers by involving industry
and national-level institutions
such as IIT, IIM and universities
Bengal surpass
India in Muslim growth rate
Niti Aayogs sub-group of chief

ministers may suggest that 50%
of
corporate
social
responsibility (CSR) funds be
used for the purpose of skill
development. It may also talk of
a long-term policy from states
and the Centre for 5-10 years
for skill development.
The CMs panel, headed by
Punjab CM Parkash Singh Badal,
will submit its final report within
15 days.
After the meeting of the panel,
Chhattisgarh CM Raman Singh
said there should be block,
district and state level
committees
for
skill
development. Assam CM Tarun
Gogoi highlighted the need for
creating infrastructure for the
task and attracting investment,
especially in the north-east.
The deliberations focused on
empowering and strengthening
state skill development missions
toaddress the challenge at the
state level in a decentralized
manner.
An official said that emphasis
was laid on increasing
participation by women and
other socio economic groups.
At the meeting, it was
suggested that appropriate
In three districts of Bengal,

Murshidabad, Malda and North
Dinajpur, the Muslim population
has surpassed the Hindu
population, the Census 2011
data on Population by Religious
Communities released on
Tuesday, reveals.
In Bengals 9.12 crore
population, Hindus still
comprise 6.4 crore people or
70.53 per cent of the
population. Muslims comprise
2.4 crore population or 27.01
per cent.
Compared to the 2001 Census
data, this is slightly higher. For a
decade earlier, the Hindu
population in Bengal was 5.8
crore and Muslim population
was 2 crore. Bengals
population then, too was far
lesser, at 8.01 crore.
The only thing constant then
and now is the asymmetrical
spread of Bengals population
by religion.
Jain practice Santhara isnt
suicide
Ibrahim Zauq, poet laureate of
the Mughal court under
Bahadur Shah Zafar, wrote a
poignant couplet about our
inability to control the two most
important events of life: birth
and death.

National Issues
Layi hayat aaye, qaza le chali
chale; na apni khushi aaye, na
apni khushi chale, (Life brought
me, death took me away. I
neither came of my free will, nor
leave with my consent), he
observed.
For ages, humans have
pondered over their inability to
choose the date, circumstances
and their place of birth and
realised the utter futility of the
quest.
But the idea of choosing the
circumstances of death, of
leaving the material world at
ones own khushi (free will or
volition) has lingered.
The thought of a beautiful
death, the pursuit of a planned
and painless end has crossed
many minds, sometimes even as
the final goal of life.
The concept of Ichcha Mrityu
(the power to decide when and
how to die) has been a constant
theme of our culture.
In our mythology, it has been
described as a rare gift,
reserved only for the greatest of
souls and those who earned it
as the ultimate reward for their
righteous karma and dharma.
In Jainism, the concept of
choosing the manner and time
of ones death is a centuries-old
ritual.
The devout Jains believe that
Mahavira, the 24th Tirthankar,
allowed Santhara, or Sallekhana,
as the ultimate test of spirituality,
will power, whose ultimate goal
is purifying body and mind and
facing death voluntarily.
It is difficult to argue that
Santhara is different from
suicide or euthanasia. In the
end, the objective of all these
concepts is death, the
destruction of life and mortal
body. But, the Jains believe the

difference is in the motivation
for both the acts.
Railways launches new app for
women safety
Railway Minister Suresh Prabhu

today inaugurated a mobilebased application system
introduced by Eastern Railway,
R-Mitra, to ensure womens
safety and said that it is an
extremely useful app that
could be used by regional
railways nation-wide.
Around 2.7 crore to 3 crore
people travel in the Indian
Railways system on a day-to-day
basis. Different types of crimes
are committed by anti-social
elements, Prabhu said at the
Eastern Railway headquarter
here.
Nature
Conservation
Foundation,
Mysore
andNational Centre for
Biological Sciences, conducted
a survey in which they observed
all the bat species found in the
Western Ghats to evaluate the
impact of deforestation for
agriculture.
After analysing the reports,
researchers found that all type
of plantation doesnt affect the
population of bats. It was found
that some bat species can
survive with coffee plantation
while all other types of
plantation seem to adversely
affect the population.
The survey revealed that nearly
all the bat species found in
Western Ghat are near to
extinction and only proper
steps from wildlife management
team can save the species.
Indias Western Ghats comes
among most biodiverse regions
across the world. While being
most biodiverse, it is also most
densely populated biodiversity
around the globe.
Reliance,Vodafone & 8 others
get nod for payments banks
Deforestation threats in
Western Ghats
Due to growing human
intervention in Western Ghast,
Bats living there are facing tough
times, says a new study.
According to researchers,
human intervention has resulted
in deforestation, reducing the
living habitat for bats.
Study authors blame growing
human population in the area
and their dependency on
agriculture for such negative
change.
A team of researchers from the
University of Leed in Britain
The Reserve Bank of India (RBI)

gave approval in principle for
11 entities on Wednesday to set
up payments banks.
They are India Post, Reliance
Industries Ltd., Aditya Birla
Nuvo, Tech Mahindra, Sun
Pharma, National Securities
17

National Issues
Depository Ltd., Airtel M
Commerce Services Ltd.,
Vodafone m-pesa Ltd.,
Cholamandalam Distribution
Services Ltd., Fino PayTech Ltd.
and Paytm.
Payments banks will take
deposits and remittances, but
will not advance loans. In its
previous bi-monthly monetary
policy, the RBI said the names
of the entities would be
announced in August. An
external advisory committee,
which submitted its report on
July 6, selected them.
However, as this is the first time,
the central bank said, It would
be difficult at this stage to
forecast the most successful
likely model in the emerging
business of payments.
CMs panel for Swachh cess on

telecom, fuel
The chief ministers panel on

Swachh Bharat has suggested a
cess on petrol and diesel as well
as telephony services to raise
funds for Prime Minister
Narendra Modis pet scheme.
In a radical move, the panel has
also recommended that
anybody contesting an election
for local bodies must have an
individual household toilet.
A levy on accumulated waste
produced by mineral waste
generation plants like coal,
aluminum and iron ore and
issuance of Swachh Bharat
bonds by central and state
18
governments to raise resources

are among the other
suggestions.
The budget had allowed the
government to levy a Swachh
Bharat cess at a rate of 2% or
less on all or certain services, if
need be.
According to estimates, the
government can raise around Rs
15,000 crore if it imposes a 1%
levy.
A state-level Swachh Bharat
Kosh may be set up on the lines
of the Swachh Bharat Kosh set
up at the central level and
certain part of the CSR
contributions by PSUs/
companies may be spent in
states where they are located,
the panel said.
Pitching for Swachh Bharat
grading for all gram panchayats,
municipalities, blocks, districts
and states each year to promote
competition, the panel said the
incentive
amount
for
construction of one unit of
individual household latrine
should be raised to Rs 15,000.
Both the Centre and states
should
work
towards
eradication
of
manual
scavenging through strict
enforcement of law, it said,
underlining also the need for
integration of rag-pickers into
waste management system so
that their livelihoods are not
adversely affected.
anniversary on October 15, an

official statement said.
The event will take place at the

Research Centre Imarat (RCI) in
Hyderabad on Thursday,
marking the 84th birth
anniversary of Dr Kalam, who
was popularly known as the
countrys Missile Man.
Dr Kalam had joined the
complex, which is under the
Defence Research and
Development Organisation, in
1982 and was part of it for nearly
two decades.
It comprises the Advanced
Systems Laboratory (ASL),
Defence Research and
Development Laboratory
(DRDL) and Research Centre
Imarat (RCI) which is
considered to be the brain child
of Dr Kalam.
As founder director, Dr Kalam
conceived and steered RCI as a
generator of critical missile
technologies.
Centre approves Rs 500-crore
project for war memorial,
museum
Missile Complex in Hyderabad

to be Named After Dr APJ Abdul
Kalam
Defence Minister Manohar
Parrikar will rename the
countrys key missile complex
in Hyderabad after noted
scientist and former president
Dr APJ Abdul Kalam on his birth
Acceding to a long-pending

National Issues
demand of the armed forces,

the government on Wednesday
approved a Rs 500- crore
project for building a National
War Memorial and a National
WarMuseum near India Gate in
memory of over 22,500 soldiers
who laid down their lives postIndependence.
The total time for completion of
the entire project at Princess
Park in New Delhi is estimated
to be five years.
Post-Independence, more than
22,500 soldiers have made the
supreme sacrifice in national
interests and in defence of the
sovereignty and integrity of the
country.
With the present decision of the
Cabinet, a long-pending
demand of the armed forces has
been redressed, an official
statement released after the
Cabinet meeting, chaired by
Prime Minister Narendra Modi,
said.
It has been decided that the
project will be monitored by an
empowered
Steering
Committee chaired by Defence
Secretary and assisted by a
dedicated
project
management team, to ensure
that the proposed project is
completed within scheduled
timeframe.
Post commissioning, a
management body will be
formed for maintenance of the
National War Memorial and the
museum.
CSE Press Invite: Countdown to

Paris Climate Change
Conference
A first-ever comprehensive
scientific analysis of the US
climate action plan
The threat of climate change is
real and we can already see the

impacts of extreme weather
events in the sub-continent and
beyond.
There is no question that all

countries must take on decisive
steps to reduce their
greenhouse gas emissions, in the
interests of all.
Many countries, including India,
have now submitted their
Intended
Nationally
Determined Contribution
(INDC) to the climate
secretariat.
The US plan of action on climate
was welcomed by all, given that
it signals change in its stance on
climate change. What the world
needs is real change, not words.
The question is, how robust is
the US climate action plan? Will
it bring real reduction in
emissions and if so, how much?
Is it ambitious? Equitable?
Sufficient? These are critical
questions as real and
measurable change in the US
will provide confidence to the
rest to act.
It is for this reason, we at the
Centre for Science and
Environment (CSE) decided to
do a detailed and factual
assessment of the US climate
action plan.
Our findings are explosive and
worrying. Our challenge is that
US climate change action is
nothing but business as usual.
We invite you to a press
conference to share this new
analysis. A study that has longterm and significant implications
for the way we prepare
ourselves to meet the climate

change challenge.
India unveils
ambitious climate action plan
Invoking Mahatma Gandhis

thoughts on environment
sustainability, the Union
government on Friday unveiled
its climate action plan for 20212030 setting new targets to
reduce green house gas
emissions and laying out a
roadmap to tackle climate
change.
The climate action plan called
Intended
Nationally
Determined Contributions
(INDC) in climate change
parlance revolves around
three focal points of increasing
share of renewable energy,
increasing green cover to
absorb carbon emissions and
reducing emissions intensity of
gross domestic product.
Without stating targets for
absolute emission cuts like
Brazil, India said it aims to
reduce emissions intensity or
emissions per unit of gross
domestic product by 33-35%
by 2030, from 2005 levels.
Ahead of the 2009 Copenhagen
climate summit, India had
committed to reduce its
emissions intensity by 20-25%,
and the environment ministry
said it has already achieved a
12% reduction. This essentially
means the new target to reduce
emissions intensity by 35% is
doable.
19
http://iasexamportal.com/civilservices/test-series/online-ias-pre

INTERNATIONAL ISSUES
UN to allow Palestine flag to fly
at United Nations headquarters.
but the Vatican said it would

not co-sponsor the resolution
and requested that its name be
removed from the text.
Key reasons why opponents
hate the Iran nuclear deal
The United Nations General

Assembly
has
voted
overwhelmingly to allow
Palestine flag to fly at United
Nations headquarters.
Of the 193 UN members, 119
voted in favour.
The flag will be hoisted at the
UN headquarters on Sept 30
when Palestinian President
Mahmud Abbas will come to
address the general assembly.
The United States and Israel
were among eight countries that
voted against the resolution,
which says the flags of nonmember observer states like
Palestine shall be raised at
(UN) headquarters (in New
York) and United Nations
offices.
Most of the 28-nation European
Union was among the 45 nations
that abstained from voting.
However, France and more than
half a dozen others voted in
favour of the Palestinian
resolution after the EU split on
the issue.
The Palestinians initially
presented their initiative as a
joint effort with the Holy See,
20
Even though opponents of the

Iran nuclear deal cant win in
Congress, they arent going to
go quietly.
Conservative Republicans are
vowing to take President Barack
Obama to court, claiming he has
broken the law by not providing
Congress with all relevant
documents pertinent to the
deal.
Republicans in the House claim
that the Obama administration
has not provided Congress with
the text of two so-called side
agreements
that
the
International Atomic Energy
Agency negotiated with Tehran.
The law that gave Congress a
chance to review the
agreement for 60 days required
the president to give lawmakers
all relevant documents.
The conservative Republicans
claim the 60-day clock never
started and that they cant cast
votes on the deal because they
are still waiting for all the

documents.
The administration says it
doesnt have the separate
agreements, and the nuclear
inspection agency says
confidentiality agreements
prevent it from releasing them.
Opponents are outraged that
Iran, a country that the State
Department has labeled a state
sponsor of terrorism, will be
getting at least $100 billion in
relief from economic sanctions
that have choked Irans
economy for years.
They worry that Iran will use the
money to ramp up its weapons
programs and expand military
assistance to forces in Syria,
Yemen,
Lebanon
and
elsewhere that oppose the U.S.
and its allies
Taiwan might Elect Its First
Woman as President
The people of Taiwan appear

poised to elect their first female
president. Two of the three
leading candidates in the
January election, including the
nominees of both major parties,
are women.
Women have led other Asian

nations, but they have largely
followed in the footsteps of
male relatives. Not in this case.
Rather, analysts say, the race
reflects the fact that Taiwan
does a better job of putting
women into political office than
just about anywhere else in the
world.
The front-runner in the current
campaign is Tsai Ing-wen, 59,
of the opposition Democratic
Progressive Party. She lost her
first bid for the presidency in
2012, but has maintained a
strong lead in polls this time. Her
chief contender, from the longpowerful Kuomintang, or
Nationalist Party, is Hung Hsiuchu, 67, the vice president of
Taiwans legislature.
The contest contrasts sharply
with the situation scarcely more
than 100 miles away in mainland
China, which considers the selfruled Taiwan part of its territory.
The mainland has had a dearth
of female leaders despite a
Communist Party ideology that
emphasizes the importance of
women to society. Only two of
the countrys 25 Politburo
members are women, and none
has reached the top echelon of
political power, the Politburo
Standing Committee.
On Tibet anniversary, China
amplifies Marxist pitch
Autonomous Republic (TAR) by

sending a powerful visual
message of unity, along with an
advocacy of fusing religious and
socialist values.
In the backdrop of the imposing
Potala palace once home of
the Dalai Lama thousands
gathered on Tuesday morning
to listen to Yu Zhengsheng, a
top Chinese official who had
flown in from Beijing.
A spectacular parade that
followed, including soldiers in
full uniformed regalia, goosestepping marchers and flagwaving
schoolchildren,
reinforced the message of
Tibets role, as a frontier state,
in safeguarding Chinas security.
Among them was the rejection
of the 14th Dalai Lamas role in
shaping modern Tibet.
President Xi had pointed out
that stability in Tibet would
resonate in a much larger
territorial swathe, as ethnic
Tibetans and other ethnic
minorities were residing in
strength in neighbouring
provinces, such as Sichuan and
Yunnan.
Though China has been
focusing on a cultural
renaissance based on the revival
of Buddhism, Confucianism and
Taoism, President Xi had made
it plain that Marxist values
should be promoted in shaping
peoples views on ethnicity,
religion and culture.
Queen Elizabeth II becomes

longest-reigning UK monarch
China on Tuesday celebrated

the 50th anniversary of the
formation of the Tibet
Queen Elizabeth II becomes

Britains longest-reigning
monarch later when she passes
the record set by her greatgreat-grandmother Queen
Victoria.
The Queen will have reigned

for 63 years and seven months calculated at 23,226 days, 16
hours and approximately 30
minutes at about 17:30 BST.
The exact moment the Queen
reaches the milestone is not
known because her father,
George VI, passed away in the
early hours of 6 February 1952.
North-South Korea agree to
family reunions
North and South Korea have
agreed to host family reunions
for families separated by the
Korean War, according to media
reports.
The reunions for 100 separated
families will be held Oct. 20-26
at Mount Kumgang, a resort on
the Norths east coast., South
Koreas Yonhap news agency
reported Tuesday.
They will be the first reunions
since February 2014 and only
the second in the past five years.
The BBC reported that the talks
were being held by Red Cross
officials from both sides.
The two countries remain
technically at war as the Korean
War only ended in an armistice.
The discussions come after
tense weeks on the Korean
peninsula, which included
exchanges of fire at the border
and the evacuation of
thousands of South Koreans
from the border region.
Tensions began when a border
landmine injured two South
Korean soldiers. South Korea
responded by broadcasting
propaganda messages into the
North.
The two sides reached an
agreement to defuse the
situation after marathon talks,
the BBC reported.
21

Shinzo Abe Re-elected as
Leader of Ruling Party
Japans governing Liberal

Democratic Party re-elected
Prime Minister Shinzo Abe as its
president on Tuesday after his
potential rival, Seiko Noda,
failed to achieve enough
support from lawmakers to
contest the post. Mr. Abe will
remain party leader for a second
three-year term.
Mr. Abe also pledged to push
forward with his plan to permit
Japans military to be
dispatched to conflicts abroad,
which has been banned for 70
years under the pacifist
Constitution.
Legislation allowing that change
is expected to be enacted next
week, despite rare large-scale
protests across the country.
Denmark: launches antimigrant ad campaign
The Danish immigration ministry
has placed adverts in leading
Lebanese newspapers to
discourage refugeesfrom
heading to Denmark.
They warn that benefits have
been cut by up to 50% for
asylum seekers. 20,000 refugees
are expected in Denmark this
year, compared to 14,000 in
2014.
Lebanon, with a population of
four million, is sheltering 1.1
million people.
22
UPDATE 1-China monthly

copper imports flat in August
Chinas copper imports were
flat in August from the previous
month
despite
weak
international prices, hit by
slowing growth in the worlds
No.2 economy.
Imports of anode, refined
copper, copper alloys and semifinished copper products stood
at 350,000 tonnes in August,
little changed from July and
June, data from the General
Administration of Customs
showed on Tuesday.
The inflows rose 2.9 percent
from a year ago. In the first 8
months of this year, arrivals
stood at 2.94 million tonnes,
down 8.1 percent from the
same period last year, after many
importers cut term shipments
for 2015 on worries over the
slowing domestic economy.
He said the demand for fresh
arrivals would rise as the supply
of bonded copper stocks was
drying out, which could push
up imports in September.
Copper touched a six-year low
of $4,855 a tonne last month.
refugees, said a joint statement

by the ruling coalition issued on
Monday.
German Chancellor Angela
Merkel said on Sunday that
there was no need to hike taxes
to cope with the migrants
influx.
Leaders from Chancellor Angela
Merkels governing coalition
also agreed at a marathon highlevel meeting on other
measures such as speeding up
asylum procedures and
facilitating the construction of
asylum shelters.
The government is also planning
to free up an additional 3
billion to fund its own expenses,
such as paying benefits for
asylum seekers, the joint
statement said.
Germany expects a record
influx of 800,000 migrants and
refugees this year, by far the
most in the European Union. In
August alone, more than
100,000 asylum seekers were
registered in Europes largest
economy.
China commemorating Japans

World War II defeat
Germany allots refugee funds,

speeds up asylum procedures
The German government

earmarked additional 3 billion
($3.35 billion) for federal states
and municipalities to help cope
with this years record influx of
Tanks, missiles and troops in

lock-step filed past Beijings
iconic Tiananmen Square in a
massive parade Thursday
commemorating Japans World
War II defeat 70 years ago and
underlining President Xi
Jinpings determination to make

China the pre-eminent Asian

power.
To underline Chinas position
that its rise is peaceful and
poses no threat to neighbors, Xi
pledged to cut 300,000 troops
from the 2.3 million strong
Peoples Liberation Army, the
worlds largest standing military.
Helicopters zoomed overhead
in an array forming the number
Xi kicked off the proceedings
with a speech at the iconic
Tiananmen Gate in the heart of
Beijing, flanked by Chinese
leaders and foreign dignitaries,
including Russian leader
Vladimir Putin, South Korean
President Park Geun-hye and
U.N. Secretary General Ban Kimoon.
The spectacle involved more
than 12,000 troops, 500 pieces
of military hardware and 200
aircraft of various types,
representing what military
officials say is the Chinese
militarys most cutting-edge
technology.
The parade is part of
commemorations packaged to
bolster the ruling Communist
Partys self-declared role as the
driving force behind Japans
defeat 70 years ago and savior
of the nation, though historians
say the rival Nationalists did
most of the fighting. The events
also minimize the role of the
U.S., Britain and others.
Guatemalas internal crisis

An arrest warrant has been
issued for Guatemalan President
Otto Prez Molina, the Attorney
Generals
Office
said
Wednesday.
The development came a day
after the nations congress
voted to strip Prez Molina of
his immunity. The move paved

the way for his possible
prosecution as part of a
corruption investigation that has
shaken his government and
sparked protests calling for his
resignation.
Omar al-Bashirs visit to the UN

presents the US with a
diplomatic challenge
Sudanese President Omar alBashirs planned visit to the

United Nations in New York this
month presents US President
Barack Obamas government
with a potentially embarrassing
diplomatic challenge.
At the end of June, Fatou
Bensoda, the chief prosecutor
of the International Criminal
Court (ICC), called on the UN
Security Council to ensure
compliance with the arrest
warrant issued against al-Bashir
in 2009.
The court wants to try him for
war crimes and crimes against
humanity.
The
chief
prosecutors request came after
it was announced that al-Bashir
was planning to travel to New
York to address a summit on
sustainable development at the
UN General Assembly.
Two weeks before the chief
prosecutors call for action, alBashir escaped arrest in South
Africa.
He left with the help of the
South African government. It

ignored a court order
preventing him from leaving
after he attended the African
Union (AU) summit in
Johannesburg.
Reputational risk If al-Bashir
makes the trip to New York,
international attention will focus
on how Obamas government
responds.
The US government is not a
signatory to the ICC statute, but
as the host country it has the
legal authority to arrest al-Bashir
if he enters US territory.
He may then be surrendered to
the ICC on the basis of the 2009
arrest warrant. Since the US was
party to the UNs initial referral
of the al-Bashir case to the ICC,
the Obama government can
hardly turn a blind eye to the
latest developments.
The planned trip involves
considerable risk to the USs
reputation, particularly because
al-Bashir has evaded justice for
six years.
The question is: how does the
US manage the question of alBashirs immunity as a head of
state attending a UN summit in
New York?
In the case of the AU summit,
the South African government
claimed that as a guest of the
continental body, al-Bashir
enjoyed immunity against arrest.
The government relied on the
AU Convention on Privileges
and Immunities.
This grants immunity from arrest
to representatives of AU
member states attending AU
conferences. Such immunity
also applies during the
representatives travel to and
from the place of the meeting.
23

Chinas AIIB to offer loans with
fewer strings attached
Chinas new international

development bank will offer
loans with fewer strings
attached than the World Bank,
sources said, as Beijing seeks to
change the unwritten rules of
global development finance.
The Asian Infrastructure
Investment Bank (AIIB) will
require projects to be legally
transparent and protect social
and environmental interests, but
will not ask borrowers to
privatise or deregulate
businesses for loans, four
sources with knowledge of the
matter said.
By not insisting on some free
market economic policies
recommended by the World
Bank, the AIIB is likely to avoid
criticism levelled against its
rivals, who some say impose
unreasonable demands on
borrowers.
It could also help Beijing stamp
its mark on a bank regarded by
some in the government as a
political as much as an
economic project, and reflects
scepticism in China about the
virtues of free market policies
advocated in the West.
A reduced focus on the free
market could give the AIIB
greater freedom to run projects,
said a banker at a development
bank who declined to be
named.
24
For example, development

banks that finance a water
treatment plant may require the
price of treated water to be
raised to recoup costs, even if
local conditions are not
conducive to higher prices.
The AIIB, on the other hand,
could avoid hiking prices and
rely instead on other sources of
financing, such as government
subsidies, to defray costs, he
said.
The bank, to which some 50
countries have signed up to join,
also aims to have a simpler
internal review and risk
assessment system for projects
compared with its peers to hold
down costs and cut red tape,
sources said.
Google redesigns logo to suit
mobile devices
Google on Tuesday refreshed its

logo to better suit mobile
devices that are supplanting
desktop computers when it
comes to modern Internet
lifestyles.
Googles logo keeps its fourcolour scheme but shifts to a soft
sans-serif font.
The company is also replacing
the well-known blue lower case
g icon with an upper-case G
combining blue, green, red and
yellow.
The 17-year-old Internet
company is keen to follow users
of its online products onto new
generations of Internet-linked
devices such as smartphones,

tablets and watches.
The unveiling of the new logo
came just weeks after a surprise
reorganization of Google under
a newly formed parent
company called Alphabet.
The plan calls for Alphabet to
be the corporate parent, with
an operating unit for Google and
its related search operations,
and a handful of other
operating firms created for
projects in health, Internet
delivery, investment and
research.
While Google is known as the
dominant player in Internet
search, it has launched a variety
of projects in recent years that
are marginally related at best to
its core operation.
Swiss, EU banks ask Indians to
use compliance windowon
undeclared foreign assets
Several banks in Switzerland

and Europe have reportedly
asked their Indian clients to
utilise the compliance window
provided by the Indian tax
authorities to disclose all of their
undeclared foreign assets till
next month.
Indian clients have reportedly
also been asked to give fresh
undertakings to state that they
are in compliance with all the
laws in their home country.
The Swiss banks, thought to be
safe havens for parking
unaccounted funds, have also

started asking for auditor
certificates from high net worth
individuals and corporate
clients to vouch for the clean
status of their money.
India has aggressively been
making efforts to bring back
illicit money parked by its
citizens overseas.
The Government of Switzerland
has reportedly agreed to cooperate with the Indian
authorities on this issue
Nations, African Union, China,

Britain, Norway and the United
States, came into effect last
evening at 2100 GMT (midnight
in South Sudans capital Juba).
Earlier yesterday, South Sudans
army and rebels accused each
other of sparking fresh fighting

in the past 24 hours in the northeast.
Aguer said the rebels used
mortars and machineguns and
that one government soldier was
wounded.
Demand mounts on Malaysian PM over resignation
EU ministers to meet to find

solution to migration crisis
European Union interior and
justice ministers are due to meet
in two weeks to find a solution
to the escalating migration crisis.
According to the Guardian, the
ministers will meet in Brussels
to find measures to cope with
the migration crisis.
A statement from the home
affairs ministers of Germany,
France and Britain said they had
asked the Luxembourg
presidency to arrange a meeting
of justice and interior ministers
within the next two months.
The
three
countries
emphasised the necessity to
find an immediate solution to
the increasing migration
problem.
South Sudan ceasefire takes
effect after eleventh-hour
clashes
A ceasefire aimed at ending a
brutal civil war in South Sudan
has come into effect, hours after
fresh clashes between
government forces and rebels,
which sparked concern for a
hard-won peace deal.
The truce brokered by the
regional eight-nation IGAD
bloc, along with the United
Thousands gathered for a

second day of protests on
Sunday to demand the
resignation of Prime Minister
Najib Razak over a multi-milliondollar financial scandal, their
spirits lifted by unexpected
support from Malaysias longestserving leader.
Hundreds slept out overnight in
central Kuala Lumpur after the
first day of a rally that has
brought into the streets a
political crisis triggered by
reports of a mysterious transfer
worth more than $600 million
into an account under Najibs
name.
Najib, who denies wrongdoing,
has weathered the storm and
analysts say the two-day rally is
unlikely to inspire broad public
support for him to quit because
it lacks a strong leader.
Security remained tight and
anti-riot trucks stood ready. The

first day passed without reports
of violence and the rally
resumed in a festive mood on
Sunday with group exercises, a
mass at the city cathedral and
interfaith prayers.
City authorities rejected an
application by pro-democracy
organization Bersih for a protest
permit, raising fears of a repeat
of a 2012 rally when police used
water cannon and teargas to
disperse protesters.
The government blocked
access to Bersihs website and
banned the wearing of its
signature yellow T-shirts,
although the crowd of
protesters was a sea of yellow.
The protesters, whose numbers
swelled into the tens of
thousands on Saturday, were
thrilled when former leader
Mahathir Mohamad made a
surprise appearance.
25

Greeces New Prime Minister
Names Caretaker Cabinet
Greeces new prime minister, a

top judge who is the countrys
first female premier, named the
members of her caretaker
government Friday as the
country heads to early elections
next month, the third time
Greeks will go to the polls this
year.
The appointments come a day
after Supreme Court head
Vassiliki Thanou was sworn into
office.
The 65-year-old was appointed
after outgoing prime minister
Alexis Tsipras resigned last
week, barely seven months into
his four-year mandate, following
a rebellion by members of his
radical-left Syriza party who
objected to his agreement with
the conditions of Greeces third
international bailout.
The finance ministry post went
to Giorgos Houliarakis, an
academic who had been on
Greeces negotiating team
during talks with creditors.
Popular Greek pop singer
Alkistis Protopsalti was named
tourism minister. The new
cabinet was to be sworn in later
Friday.
Elections are widely expected
to be set for Sept. 20. Tsipras
has said he needs a stronger
mandate to implement the
tough austerity measures
accompanying the three-year,
26
86 billion euro bailout, but an

opinion poll published in the
left-leaning Efimerida ton
Syntakton newspaper Friday
found small support for his
move.
Sixty-four percent said Tsipras
decision to call the snap poll
was wrong, compared to 24
percent who considered it
correct. The remainder took no
position or did not reply.
opportunities, and a stronger

society that reflects all of our
values.
RBI likely to cut interest rates
in September policy meet
Facebook cross billion users

accessing the site on a single
day
The biggest social networking
platform Facebook has just
gotten even bigger. Company
CEO Mark Zuckerberg
announced that Facebook had
one billion people logged on to
the site on a single day, marking
the first time in company history
to reach this milestone.
According to a Facebook post
by the CEO, On Monday, 1 in 7
people on Earth used
Facebook to connect with their
friends and family. He stated
that the company uses average
numbers but this instance was
different! This was the first time
we reached this milestone, and
its just the beginning of
connecting the whole world,
he added.
Facebook has also released a
special video to commemorate
the milestone.
The CEO went to say how
proud he was of their
community and the progress
which has been made. He
states, A more open and
connected world is a better
world.
It brings stronger relationships
with those you love, a stronger
economy
with
more
There is a better than even

chance that the Reserve Bank
of India (RBI) will cut interest
rates at its policy meeting on
September 29 thanks to
inflation striking a record low,
according to a Reuters poll,
marking a shift in expectations
from earlier.
The median from survey of 21
economists showed a 60%
chance that the central bank
would cut its policy repo rate
from 7.25% at the next meeting,
whereas a previous poll in July
had shown a move was more
likely in the final three months
of the year.
Since then, India has released
consumer price data for July
that showed retail inflation at a
record low of 3.78%, giving the
RBI more room to ease policy.
Keen to inject more momentum
in the economy and encourage
investment, the government
and business community have
urged the central bank to lower
interest rates, though RBI
Governor Raghuram Rajan has
stressed that he wants to see
low inflation on a sustained
basis.

China surprise by global
reaction to its currency
devaluation
China rate cuts fail to calm

nerves,Asian stocks slip as
Japans Nikkei was the lone

bright spot, rising 1.3%, while
Australia fell 0.4%.
SAARC moots participatory
management of forest resources
China has been so surprised by

the global reaction to its
currency devaluation that it is
likely to keep the yuan on a tight
leash in the near-term to head
off a currency war that could
spark a broader financial crisis,
policy insiders say.
Internal calls for the yuan to
weaken by up to 10 percent
since the Aug. 11 devaluation
have faded as top leaders worry
that market fears of such a move
could fuel further capital
outflows, signs of which have
intensified in July and August.
Government economists and
policy advisers say the Peoples
Bank of China (PBOC) will now
try to stop the yuan weakening
much past 6.5 per dollar, which
is 4.5 percent below its predevaluation levels. On Thursday
morning, the yuan traded as low
as 6.4162 per dollar.
That was seen as a signal that
capital
outflows
had
accelerated
since
the
devaluation as market investors
feared China would drive the
yuan lower.
An influential economist at a top
government think-tank said
policymakers may have
underestimated the global
impact from the yuan
devaluation, which happened
when jitters about Chinas
slowdown had intensified due
to a stock market plunge.
Though Chinas central bank cut

interest rates and lowered the
amount of reserves banks must
hold, investors feared that the
measures would not be enough
stabilise its cooling economy or
halt a collapse in its stock
markets. As a result, the Asian
stocks fell on Wednesday.
Chinas key share indices
attempted to move higher
several times in early trade only
to be slapped back by waves
of selling, reflecting investors
views that much more support
was needed from the
government and the central
bank.
Following a near 20% plunge in
stock prices in three days, the
Peoples Bank of China cut
interest rates and lowered the
amount of reserves banks late
on Tuesday in a muchanticipated move that some
economists said was long
overdue.
While the double-barrelled
policy moves were initially
cheered by markets around the
world, the impact didnt last
long as investors quickly
resumed their focus on the
deteriorating outlook for China
and the global economy.
MSCIs broadest index of AsiaPacific shares outside Japan fell
0.2% in early trade and was just
shy of a three-year low hit in the
previous session.
Faced with depletion of forest

resources due to over
exploitation and destructive
harvesting, eight membercountries of SAARC (South
Asian Association for Regional
Cooperation) have decided to
join hands to promote
community-based sustainable
management of Non-wood
Forest Produce (NWFP).
A three-day meeting of the
SAARC Expert Group on
Community-based Sustainable
Management of NWFP and
Income Generation for
Communities held at the Kerala
Forest Research Institute
(KFRI), Peechi, last week
mooted the establishment of
legal, fiscal and market
mechanisms to ensure
sustainability of NWFP
harvesting with community
participation.
Delegates from the eight
member-nations, namely
Afghanistan, Bangladesh,
Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka, resolved
to set up a comprehensive
policy framework to legalise the
collection, processing and
certification of the products
and to facilitate value addition.
The meeting also came to a
general
consensus
on
establishing a real-time market
intelligence and monitoring
system for high value forest
produce.
The meeting was organised by
KFRI in association with the
SAARC Forestry Centre (SFC),
27

Thimphu, Bhutan. In a special
address, SFC Director Sangay
stressed the need to identify the
potential of NWFPs in
supporting livelihoods.
He called on SAARC nations to
utilise the opportunities offered
by the synergy between
conservation and livelihood.
Google,s net neutrality interest
in India
Internet giant Google could be

on the side of forces working
towards thwarting net neutrality
in India. The company has
allegedly been trying to prevent
the Internet and Mobile
Association of India, a body that
represents internet firms in
India, from opposing Zero
Rating, the practice of letting
users
access
select
applications/websites free of
data charges by striking deals
with telecom operators.
According to a report by
MediaNama, a news and analysis
website that focuses on digital
and telecom sectors in India,
Vineeta Dixit, a member of
Googles public policy and
government relations team,
pushed for removal of any
mention of Zero Rating from
the IAMAIs submission to the
Department of Telecom, in
response to its report. The
website mentions that it has
access to copies of the emails.
As per the report, Dixits email
to the IAMAI government
28
relations committee asked for

the removal of any reference to
Zero Rating arguing that there
was no consensus among
internet companies on the issue.
The email is dated 14 August
2015.
In its report, the DoT had
opposed Zero Rating plans from
content providers like
Facebook and had said that
content and application
providers cannot be permitted
to act as gatekeepers and use
network operations to extract
value in violation of core
principles of Net Neutrality,
even if it is for an ostensible
public purpose.
It had said that partnerships
between telecom operators
and content providers that
enable gatekeeping should be
actively discouraged, opposing
Facebooks Internet.org.
Intel releases Stephen
Hawkings speech software for
free
Stephen Hawkings speech

system has been released by
Intel to the public for free as an
open source code.
The company is hoping that
developers will use it and
expand its application to a
wider range of disabilities.
The Assistive Context-Aware
Toolkit (ACAT) facilitates the
use of computers by
differently-abled users with
very little movement and was

developed to help Prof.
Hawking, who has amyotrophic
lateral sclerosis (ALS)
communicate by translating his
facial movements into text.
Greece gets part of new bailout
Greece received the first 13
billion euro ($14.5 billion)
payment of its new bailout
onThursday, with 12 billion
euros earmarked for repaying
debts and the remainder for
settling arrears to public sector
suppliers.
Athens was using the funds to
repay a 3.2 billion euro ($3.5
billion) debt installment due on
Thursday to the European
Central Bank, an amount it
could not have afforded to
repay without the bailout from
18 other European nations that
share the euro currency with
Greece.
European bailout fund
supervisors approved the
release Wednesday evening.
Without the rescue loans
Greeces third bailout in little
more than five years, the country
would have defaulted on its
debts and faced being forced
out of the Eurozone.
The new three-year bailout is
worth 86 billion euros ($95.6
billion), and the disbursement
of funds is dependent on the
Greek
government
implementing a series of
reforms, including steep tax
hikes and spending cuts.
Tsipras has been contemplating
his options after a parliament
vote to approve the bailout
conditions led to dozens of his
own party lawmakers voting
against him. Among the options
being discussed are for him to

call a vote of confidence in his
government or to call an early
election, potentially in
September.
The government has said its
main priority was to secure the
bailout funding and the
repayment of the ECB loan on
Thursday, after which it would
announce any further action.
Germany expecting 800,000
refugee
Europe, then make their way

across the continent to
countries where they hope to
make a life for themselves.
Germany has a long tradition of
welcoming refugees, in part a
response to its Nazi past when
500,000 Jews and opponents
of Adolf Hitlers Third Reich
fled. Many found shelter in 80
countries, including former
West German chancellor Willy
Brandt.
After World War Two, Germany

took in some 13 million
displaced persons and refugees
fleeing west from Eastern
Europe when the region came
under Soviet domination.
United Germanys previous
biggest annual intake was
438,191, in 1992, when it
received large numbers of
refugees fleeing conflicts
resulting from the break-up of
the former Yugoslavia.
Greece says migrant crisis wont be solved with fences
Migrant numbers across the EU

have shot up in recent months.
Many undertake dangerous sea
voyages to reach southern
Europe, then make their way
across the continent to
countries where they hope to
make a life for themselves.
The number of asylum-seekers
and refugees to Germany will
quadruple to a record 800,000
this year compared with last,
more than twice as many as the
300,000 new arrivals forecast in
January, the government said on
Wednesday.
Germany, which has become a
magnet for refugees fleeing war,
violence and poverty in Asia,
Africa and the Middle East, has
criticised European Union
partners for not doing more as
218,221 people arrived seeking
asylum in the first six months
alone.
Migrant numbers across the EU
have shot up in recent months.
Many undertake dangerous sea
voyages to reach southern
Greece appealed to its

European Union partners on
Tuesday to come up with a
comprehensive strategy to deal
with a growing migrant crisis as
new data showed 21,000
refugees landed on Greek
shores last week alone.
That number is almost half
Greeces overall refugee intake
in 2014 and brings total arrivals
this year to 160,000, even as it
struggles with a debt crisis that
has forced it to accept a third
international bailout.
The influx of refugees, mainly
from Syria, has strained an
already ill-prepared reception
system in Greece that relies
heavily on volunteers, forcing

thousands to camp out in filthy
conditions and triggering
sporadic clashes and brawls.
A spokesman for the United
Nations refugee agency UNHCR
in Geneva said Greece needed
to show much more
leadership in dealing with the
crisis.
Earlier this month construction
began on a 175 km (110 mile)
razor wire border fence in
Hungary to deter migrants,
while Britain and France have
tightened security on the
French side of the 30-km (19mile) tunnel linking the
countries.
29

Greece, which is in the throes
of its worst economic crisis in
generations, criticised other
European countries for being
more of a hindrance than a help
as bottlenecks were reported
not only in getting into the
country, but getting out on its
northern land borders.
UNHCR officials said only three
Greek islands had organised
reception facilities for refugees
but that they were inadequate.
Beijing slams to Philippines,
Japan on S.China Sea
China has mounted an energetic

riposte to a spate of accusations
about its naval activism in the
South China Sea, pointing out
that it was defending its
legitimate rights in these waters,
anchored in history and
international law.
Faced with a barrage of
allegations, mainly by the
Philippines and Japan, that
Beijings behaviour in the South
China Sea could threaten
freedom of navigation,
Chinese Foreign Minister Wang
Yi countered the core
arguments at a recent meeting
of the ASEAN Regional Forum
(ARF).
The Chinese foreign minister
asserted that the accusation that
Beijings activities in the South
China Sea were posing a threat
to freedom of navigation was
absurd.
30
Mahinda Rajapaksa lost battle

in election
Former president Mahinda

Rajapaksa on Tuesday morning
conceded defeat in a bitterly
fought Sri Lankan general
election that could now put a
question mark on his political
future.
The Rajapaksa-led alliance lost
to the United National Party
(UNP), led by incumbent Prime
Minister Ranil Wickremesinghe.
Rajapaksas second electoral
defeat in about seven months
the first shock defeat was in
January in the presidential
election will be a big setback
to his political future. Officially,
the results are yet to be
declared but according to the
former president the available
results were enough for him to
accept the electoral defeat.
German Refugee Policy Row
A fall in support and a

government row over the
refugee crisis raised the heat on
German Chancellor Angela
Merkel today, forcing allies to
defend the integrity of her
coalition.
Germany, a favoured destination

for migrants, expects 800,000
to a million new arrivals this year.
Many Germans feel the country
cannot cope with the record
influx.
As tempers frayed, Merkels
conservatives met fierce
resistance from their Social
Democrat (SPD) coalition
partners over plans for transit
zones at border crossings to
process refugees asylum
requests.
They have had to deny such
centres would resemble
concentration camps.
Asked whether the transit zone
row heralded the end of the
ruling coalition, Bavarian Interior
Minister Joachim Herrmann told
Deutschlandfunk radio: No! We
shouldnt talk about the failure
of the coalition every time
(there is an argument).
A Forsa poll showed support for
Merkels conservatives had
dropped one percent to 38
percent, its lowest level since
June 2014.
Merkel is trying to steer a course
between pressure from her
conservatives - especially the
Bavarian Christian Social Union
(CSU), sister party of her
Christian Democrats (CDU) - to
take a harder line on refugees
and SPD opposition to the
transit zones.
Bavaria is the first point of entry
for many migrants and the state
has threatened to take the
government to court unless it
tries to limit the flow of asylumseekers.
Iran parliament approves
nuclear deal bill in victory for
Rouhani
Irans conservative-dominated

parliament passed a bill on
Tuesday approving its nuclear
deal with world powers,
signaling victory for the
government over hardline
opponents who worry the
accord opens a door to wider
rapprochement with the West.
Many conservative lawmakers

opposed
the
Joint
Comprehensive Plan of Action
(JCPOA) that President Hassan
Rouhanis government agreed
with the six powers on July 14,
and the vote which followed
a bad-tempered, rowdy debate
on Sunday lifts a significant
hurdle to putting the deal into
effect.
With strong parliamentary
backing, the bill is likely to be
ratified by a clerical body called
the Guardian Council.
The exact stance of Supreme
Leader Ayatollah Ali Khamenei,
who has the last word on all
matters of state, is not known.
To date, he has neither
approved nor rejected the
agreement,
but
has
commended the work of
Rouhanis negotiating team.
Provided Khamenei does not
openly oppose it, many expect
Iran will begin shutting down
parts of its nuclear program in
coming weeks.
When completed, that process
will result in most international
sanctions, imposed on Iran since
2006 over concerns it was
covertly seeking atomic bombs,
being lifted.
The bill also calls on Irans
government to impose strict
curbs on U.N. nuclear
inspectors access to military
sites, leaving the possibility that
disagreements could still arise.
The bill was adopted with 161
votes in favor, 59 against and 13
abstentions, the state news
agency IRNA said. It had passed
a preliminary vote on Sunday by
a smaller margin, after a chaotic
debate in the 290-seat
chamber.
The bill will now be submitted
to the Guardian Council, a
clerical vetting body, that will
either suggest amendments to
the text or pass it into law.
She added that Khamenei was
now likely to support Rouhanis
government in carrying out the
deal, while also highlighting
parliaments insistence on
limiting access to military sites
for International Atomic Energy
Agency inspectors.
The bill stipulates that
inspectors from the IAEA, the
U.N. nuclear watchdog, cannot
visit such sites without approval
from a top Iranian security organ.
China overtakes US, now has
worlds largest middle class
Chinas middle class has
overtaken the United States to
become the worlds largest,
Credit Suisse said Tuesday in its
latest report on global wealth.
Asia will be the scene for the

greatest expansion of the
worlds middle class, it
predicted.
The Swiss bank said with 109
million adults this year, the
Chinese middle class for the first
time outnumbered that in the
United States at 92 million.
While the number of middle
class worldwide grew last year
at a slower pace than the
wealthy, it will continue to
expand in emerging economies
overall, with a lions share of that
growth to occur in Asia, Credit
Suisse chief executive Tidjane
Thiam said in a statement
accompanying the banks
annual Global Wealth Report.
The report said size and wealth
of the middle class was a key
factor
in
economic
development, and the middle
class was often at the heart of
political movements and new
consumption trends.
The report used a floor for the
middle class as having wealth
double the annual medium
income for their country.
31
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India & The World
INDIA & THE WORLD

Indias bid for permanent
Security Council seat gets a
boost as UN adopts negotiations
on reforms
The UN General Assembly on

Monday adopted a negotiating
text by consensus for the longpending Security Council
reforms, setting the stage for
talks on the issue at its 70th
session beginning Tuesday,
boosting Indias bid for a
permanent seat in the
revamped world body.
India termed as historic and
path-breaking the adoption of
the document, saying the
decision puts the InterGovernmental Process formally
on an irreversible text-based
negotiations path and changes
the dynamics of the
negotiations on achieving UNSC
reforms.
UN General Assembly President
Sam Kutesa convened a plenary
meeting to take action on the
draft decision on the Question
of equitable representation on
and increase in the membership
of the Security Council and
related matters.
During the meeting, he also
circulated letters containing the
positions of key countries,
32
including Russia, the US and

China which refused to
contribute to the negotiating
text.ers
There was no voting on the
decision to continue text-based
UNSC reforms in the 70th
session of the General Assembly
and it was adopted by
consensus.
The draft decision contains a
negotiating text which has
positions of UN member states
on Security Council reforms and
how the powerful 15-nation
body should be expanded in
its permanent and nonpermanent categories.
The adoption is a significant
step towards beginning talks on
the long-stalled reforms process
in the 70th session of the
Assembly on the basis of a
negotiating text, a first in the last
seven years of InterGovernmental Negotiations that
have been conducted so far
without the basis of any text.
Indias Ambassador to the UN
Asoke Mukerji said the most
important aspect of Mondays
decision is the text circulated
by Kutesa in July which we
have agreed will be the guiding
basis for our deliberations in the
70th General Assembly session.
Indian-origin Ashok Sridharan

becomes Mayor of Germanys
Bonn city
Ashok Sridharan, a mayoral
candidate of Chancellor Angela
Merkel-led Christian Democratic
Union
(CDU),
has
comprehensively won the

election in Bonn, becoming the
first person of Indian-origin to
occupy the mayors office in a
major German city.
49-year-old Sridharan secured

the absolute majority by polling
50.06 per cent of the votes in
Sundays election in the former
German capital, according to
provisional results.
His victory marks the end of
more than 21 years rule of the
city by the Social Democratic
Party (SPD).
Mr. Sridharan, who is the son of
a migrant from India and a
German mother, will take over
the reigns of the city
administration from the
outgoing SPD mayor Juergen
Nymptsch on October 21.
Until now, he served as the
treasurer and assistant mayor in
the municipal administration of
neighbouring
town
Koenigswinter.
India prepared to deal with any
eventualities if US Fed raises
rates: Govt
With expectations growing that
US Fed may raise interest rates

India & The World

later this week, Indias
economic affairs secretary
Shaktikanta Das on Monday said
the country is well prepared to
deal with any eventuality.
Pointing to the countrys sound

macro economic indicators
such as low inflation as well as
current account deficit,
Shaktikanta said Indias
economy might grow 7.5-8% in
the current fiscal year while the
world economy was going
through uncertainties.
Continued worries on a slowing
Chinese economy and possible
interest rate hike by Fed has
created bouts of volatility in
emerging market economies
and their currencies. The US
Fed is scheduled to review its
monetary policy on September
17.
India fears tightening of interest
rates by US Fed could lead to
outflow of capital from the
country, further pulling down
the value of rupee against the
US Dollar. While depreciation of
rupee could offer little help to
exports as demand is low in
major global markets, it might
inflate imports and hurt
companies with foreign
currency loans that they have
not hedged as yet.
India vote in favour of Palestine
India was among 119 nations
that voted in support of a UN
general assembly resolution
granting the right to non-
member observer states of

Palestine and the Vatican to
raise their flags at the world
bodys headquarters along side
the flags of UN member nations.
The resolution Raising the flags

of non-member observer States
at the United Nations was
adopted on Thursday by a vote
of 119 in favour to 8 against,
with 45 delegations abstaining.
Voting against the resolution
were Australia, Canada, Israel,
Marshall Islands, Federated
States of Micronesia, Palau,
Tuvalu and the United States.
By the terms of that text, the
general assembly decided that
the flags of non-member
observer states maintaining
permanent observer missions at
headquarters shall be raised at
headquarters and United
Nations offices following the
flags of the members states of
the organisation.
The assembly took the decision
noting the participation of nonmember observer States that
maintain permanent observer
missions at headquarters, of
which there are currently two the Holy See and Palestine, in
its sessions and work.
The text of the resolution also
requested secretary-general
Ban Ki-moon to take the
measures necessary for the
implementation of the decision
during the assemblys 70th
session, which begins on
September 15, and within 20

days of the adoption of the
resolution.
India cant compete with China
on INDCs
As the world eagerly awaits

Indias climate action, there is
absolute clarity that the
countrys intended nationally
determined contributions
(INDCs) will not be similar to
that of China.
The
inter-governmental
consultations on framing up the
INDCs have shown that India is
nowhere close to China on
energy generation and
consumption drivers for
deciding a nations climate
action.
Chinas installed energy
capacity is five times that of
India; every household in China
has access to electricity unlike
56% households in India and
just a quarter of households in
China use biomass for cooking
as compared to 85% of rural
homes in India.
When it comes to emissions,
more than one-fourth of global
emissions were by China as
compared to just 6% for India
in 2014. Indias per capita
emissions are one-third of
Chinas.
These are some facts that
energy ministries power, coal
and new and renewable energy
(RE) have conveyed to the
environment ministry during
33

India & The World
34
consultation for firming up

Indias INDCs. They have also
highlighted why coal-based
thermal power plants were
necessary for India to continue
high economic growth
trajectory in the next 15 years
or so.
Documents accessed by
Hindustan Times show these
ministries have strongly voiced
their opposition towards any
attempt to match China on
INDCs as it could have
implications on the countrys
economic growth.
Former Planning Commission
member Kirit Parikh too has
strongly advocated against
pushing renewable beyond a
certain threshold to match
Chinas ambitious RE goal.
China has committed to
generate 20% of its energy
needs from renewable sources
by 2030, reduce carbon
dioxide emissions per unit of
GDP by 60-65 per cent by 2030
from 2005 levels and limit
power generation from thermal
power plants.
Something similar could be
disastrous for India, which is
expected to submit its INDCs
in September to the United
Nations Framework Convention
on Climate Change (UNFCCC)
after getting Cabinets nod.
Chinas installed energy
capacity is five times that of
India, every household in China
has access to electricity unlike
56% households in India and
just a quarter of households in
China use biomass for cooking
as compared to 85% of rural
homes in India.
When it comes to emissions,
more than one-fourth of global
emissions were by China as
compared to just 6% for India

in 2014. Indias per capita
emissions are one-third of
Chinas.
Sarvepalli Radhakrishnan: The
man behind the Teachers Day
in India
Every year on September 5, we

celebrate
Sarvepalli
Radhakrishnans birthday as
Teachers day. Sarvepalli
Radhakrishnan was Indias first
Vice President and second
President, who was one of the
most learned scholars and
statesman.
Radhakrishnan taught in the
University of Calcutta, the
University of Oxford and the
University of Mysore. He is
credited for creating and
shaping the contemporary
Hindu identity and for
connecting India to the West
with his philosophies.
Some interesting facts about
Sarvepalli Radhakrishnan that
you must know:
Sarvepalli Radhakrishnan was
born on September 5, 1888 in a
village near Thiruttani in Tamil
Nadu
When Sarvepalli Radhakrishnan
became the President of India,
many of his students and friends
wanted to celebrate his
birthday at a national level.

Instead Radhakrishnan asked
them to celebrate Teachers
Day.
Sarvepalli Radhakrishnan was a
proud Hindu. He wanted the
World to know about the Indian
philosophy and therefore, he
did a critical study on the Indian
philosophy, especially that of
Vedantas
Sarvepalli Radhakrishnan was
married to a distant cousin, at
the age of 16. He was married
for 51 years, until his wife,
Sivakamu died in 1956
In 1931 during the birthday
honours, King George V
knighted
Sarvepalli
Radhakrishnan. After the
Independence of India,
Radhakrishnan stopped using
the title of Sir and instead
preferred the title of Doctor
In 1939, Radhakrishnan served
as the Vice Chancellor of
Banarus Hindu University
After independence, Sarvepalli
Radhekrishnan represented
India at United Nations
Educational, Social and Cultural
Organization (UNESCO) and
later, he also served as the
Ambassador of India to the
Soviet Union
Former Indian cricketer, VVS
Laxman was the great
grandnephew of Sarvepalli
Radhakrishnan
Sarvepalli Radhakrishnan died at
the age of 86 on April 17, 1975.
Australia, India step up defence

ties
AUSTRALIA and India are
stepping up defence ties,
holding a joint naval exercise
every two years and launching
new partnerships in defence
science, peacekeeping and
countering terrorist bombs.

India & The World
IN a joint communique, Defence

Minister Kevin Andrews and his
Indian counterpart Manohar
Parrikar said they wanted to
broaden and deepen the
defence relationship.
Given common interest in the
Indian Ocean and its
importance to regional and
global trade, maritime security
would remain a central
component of the bilateral
defence relationship, the
ministers said following Mr
Andrews visit to India this
week.
Communication Technology
(ICT) is seen as a catalyst for
development and is high on the
agenda of many African
governments, Shivendra Singh,
VP - Global Trade Development,
National Association of
Software and Services
Companies (Nasscom) told The
Hindu .
According to Nasscom, the
partnership will help Indian
companies de-risk from over
dependence on the English
speaking markets and it will
enable African countries to
leverage the maturity of Indian
companies, at the same time

given them access to large pool
of specialist manpower at the
mid management level.
Nasscom, in association with
Telecom Equipment & Services
Export Promotion Council and
the Government of India is also
organising a two-day IndoAfrica ICT expo in Nairobi,
Kenya on September 28-29.
The event, in which over a 100
companies will be participating,
will focus on how African
countries can use Indian ITs
domain knowledge to build an
inclusive IT ecosystem.
India accepts invitation to victory parade in Beijing
Africa presents $35 bn

opportunity for Indian IT
companies: Nasscom
The IT companies in India are

eyeing $35 billion opportunities
in the burgeoning African
market to expand business as
they
aim
to
reduce
dependence on the U.S. and
the U.K. markets, which
presently accounts for about 80
per cent of their revenues.
Africa presents a huge
opportunity for us. There are 50
plus countries with a population
of over one billion people.
Information
and
Ending weeks of speculation,

India has accepted Chinas
invitation to a military parade in
Beijing on September 3 to
celebrate the end of World War
II.
Union Minister of State for
External Affairs V.K. Singh will
represent India, sources here
and Beijing said on Wednesday.
China has invited the U.S., the
U.K., Germany, Russia, even
Japan and other nations to the
parade to commemorate the
70th anniversary celebrations of
what it calls the victory of the

anti-fascist forces.
New Delhi was cautious in
accepting the invitation,
weighing in the consequences
on its bilateral ties with Japan.
Chinese Ambassador to India Le
Yucheng recalled on Tuesday
the support Beijing received
during the war from leaders like
Mahatama Gandhi and
Rabindranath Tagore.
Ties with Japan
Relations between India and
35

India & The World

Japan have been strengthened
over time, even after the war
when the International Military
Tribunal [for the Far Easts trials
of Japanese war crimes
committed during the WW-II]
was set up.
India submitted a judgment
which said the defendants were
not guilty. India also did not sign
the 1952 peace treaty, opting
to sign a separate peace treaty
with Japan; so Tokyo and New
Delhi have an independent
relationship,
Russia back Indias bid for a
permanent seat in UNSC
clarified its position on support

for India nor is it expected to
support the adoption of the
UNSC expansion process if it
comes to a vote by September
15, when the current UNGA
session ends.
New Delhi, which will be
competing for a permanent seat
with Germany, Japan and Brazil,
already has the support of
France and the U.K., and has
long held that as one of the
biggest democracies and a
growing economy it is poised
to take its place in the UNSC
complete with the veto.
Nepals big 3 parties unite
against India
Russian Foreign Minister Sergey

Lavrovs interview comes on the
heels of the U.S. Ambassador to
India, Richard Verma, asserting
that there has been no change
in his countrys position on the
expansion of the UNSC and on
Indias bid for candidature for a
permanent seat.
However, despite the assertions
of public support for Indias
candidature, neither the U.S.
nor Russia has explained why
their letters to U.N. General
Assembly president Sam Kutesa
did not include their support.
These countries have also made
it clear they wouldnt support
veto power for India or any other
country.
China, a roadblock
China too remains a big
roadblock as it has neither
36
Indias belated bid for a role in

Nepals constitution-making
process has united the
landlocked nations top
mainstream parties as never
before.
Shedding their inherent
differences, Nepali Congress
(NC), considered closest to
New Delhi, Communist Party of
Nepal-Unified Marxist Leninist
(CPN-UML) and Unified
Communist Party of NepalMaoist (UCPN-M) have stood
rock solid in their resistance to
Indias efforts to customize their
countrys new constitution to its
requirements.
These three parties have an
overwhelming majority in the
601-member constituent
assembly. New Delhi is
sympathetic to the demands of

Madhesis (Maithili, Bhojpuri,
Avadhi, Hindi and Urduspeaking people) for more
representation and autonomy.
Prior to this, NC, founded in
Kolkata in 1946, had never been
in conflict with India. It had
rather been party to almost all
treaties and agreements with
New Delhi that Communists
found loaded in favour of India.
On the contrary, CPN-UML and
UCPN-M take to the streets
against India at the drop of a hat.
Two former prime ministers,
Sher Bahadur Deuba (NC) and
Madhav Kumar Nepal (CPNUML), have asked for an end to
what they call Indias
undeclared blockade. Khadga
Prasad Oli (UML), who is tipped
to become Nepals next PM, too
has strongly objected to the
closure of supply points to
Nepal.
India biggest loser in divided
Nepal
Many years ago, while talking to
this correspondent, former
Pakistan Prime Minister Benazir
Bhutto had wondered, Is Nepal
going the Afghanistan way? At
that time, the former Hindu
kingdom was grappling with a
peoples war waged by
Maoists that cost more than
16,000 lives.
Bhuttos observation looks
prophetic now in light of the
ongoing turmoil over Nepals
new constitution, which swears
by the principles of federalism,
secularism, parliamentary
democracy and republicanism.
Nepal, which for almost nine
years ran without a permanent
constitution after it abolished
monarchy, stands as bitterly

India & The World
divided as Afghanistan on
ethnic lines.
Ethnic groups fighting for more
autonomy are busy expanding
their areas of influence. The
most vociferous of them are
Madhesis (Maithili, Bhojpuri,
Avadhi, Hindi and Urduspeaking people) and Tharus,
who live in the terai bordering
Bihar and UP.
In the hills, Limbus, Khambus,
Magars, Gurungs, and Tamangs
(Nepalis of mongoloid stock)
are equally restive. These
groups, along with Khasas (hill
Nepalis of Aryan origin), have
been serving the Nepali, Indian
and British armies for
generations.
In addition, sections of Nepalis,
mostly Bahuns-Khasas, and
some madhesi groups have
been clamouring for a Hindu
state.
But the Nepalis of mongoloid
origin, who follow Buddhism or
animism, oppose this demand.
U.S., India sign $3-bn defence

deal
A few hours before Prime
Minister Narendra Modi and
President Barack Obama met in
New York, the two sides signed
final agreements for the
purchase of two of the most
advanced
American
helicopters in a deal worth
about $3 billion.
Ministry
of
Defence
spokesperson Sitanshu Kar
announced on his official
Twitter handle: Contract for
purchase of 15 Chinook and 22
Apache helicopters signed.
Just an hour after the official
announcement, Mr. Modi and
Mr. Obama met in New York
with a warm hug.
According to officials, the deal

value is worth about $3 billion
(Rs 19,800 crore) and would be
completed in four years. The
agreements were signed in the
headquarters of the Ministry of
Defence in South Block.
For the Chinook helicopters, the
agreement was signed
between representatives of
MoD and Boeing. For Apache,
there were two separate
contracts one between MoD
and Boeing representatives and
the other between the
governments to cover parts of
the deal under the Foreign
Military Sales programme.
The contracts mark yet another
significant step in rapidly
expanding military ties
between the two sides that
would be discomforting to
China, while drawing the
contours of a broader coalition
emerging in the region. Unlike
the previous UPA government,
which was reluctant to be seen
to be doing U.S. bidding in the
region, the Modi government
has been receptive to U.S. deals
and joint exercises. In a first, the
latest Malabar exercise
between the U.S. and India has
been expanded to include
Japan.
The latest deal would ensure
that the U.S. remains the one of
Indias biggest military suppliers
for some years to come. The U.S.
has signed over $10 billion
worth of defence deals with
India in the past decade or so.
This inclu-des P-8I maritime
surveillance planes, C-130J
Super Hercules and C-17
Globemaster-III transport
aircraft.
Africa-India summit venue far
from ready
Despite prominently displaying

Prime Minister Narendra Modis
slogans on cleanliness, the
Indira Gandhi Sports Complex
here is not yet clean enough to
host the Africa-India summit
beginning on October 26.
Though diplomats refused to
acknowledge the messy
condition of the venue, indeed
an alarming situation prevails in
K.D. Jadhav Wrestling Stadium
of the sports complex where
workers are battling gigantic
puddles of water, broken ceiling
patches, water pipes, bird
nests, and animal excreta
deposited over a period of
time.
A few labourers who have
recently begun to renovate the
stadium are mostly limited to the
ground floor leaving the upper
floors to be cleaned during the
brief period ahead. Apart from
stray dog menace, workers say
frequent sighting of snakes is
another matter which requires
them to remain alert. However,
this aspect seems to be taken
care of by a good number of
mongooses that are seen
darting across the arena on a
good day.
37
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Economy
ECONOMY
Current Account Deficit to
Remain Comfortable in FY16:
India Ratings
On oil, it said crude oil prices

are likely to remain soft for
remaining part of 2015-16 due
to the sluggish global recovery
and demand-supply situation in
the crude oil market.
Drugmaker Abbott Healthcare
tangles with Indian regulators
over cough syrup complaint
Indias current account deficit

is expected to remain
comfortable in the current
fiscal year even as it rose
sequentially to $6.2 billion in the
first quarter, says a report.
Current account deficit for the
first quarter of FY16 stood at
$6.2 billion (1.2 per cent of
GDP), sequentially higher than
$1.5 billion in the previous
quarter, the report by India
Ratings & Research said on
Monday.
The current account deficit,
however, was lower than $7.9
billion the first quarter of FY15.
Current account deficit reflects
a high outgo of forex and
subsequently weakens the
domestic currency.
Invisible receipts were mainly
instrumental in improvement of
current account deficit in the
first quarter of current fiscal year,
it said.
India Ratings said merchandise
exports contracted for the third
consecutive quarter and a
worrying trend is that the
magnitude of the contraction
has been increasing with each
quarter.
38
operating there and the

potential risk to consumers.
Abbott Healthcare is a unit of
U.S.-based Abbott Laboratories.
Abbott Laboratories also has a
listed subsidiary in India, Abbott
India Ltd.
Three months ago, Nestle was
forced to withdraw its Maggi
instant noodles from Indian
shelves because the food safety
authority banned the snack
after its tests showed excess
lead.
Government developing
framework for repowering
wind farms: Piyush Goyal
Drugmaker Abbott Healthcare

is challenging a states
accusation that a sample of the
companys
cough
syrupcontained excessive
levels of codeine, the second
multinational to question Indias
regulatory testing regime in
recent months.
Whether the sample of Abbotts
popular Phensedyl was a
genuine product or a fake has
not been established, but the
suspect batch of 80,000 bottles
has not been recalled.
The state laboratory in West
Bengal first raised the alarm last
November.
The previously unreported case
underlines the weakness of
Indias unwieldy and poorly
resourced drug and food
regulatory system, the
uncertainty it creates for foreign
and domestic companies
With a view to ensure better

capacity utilisation of wind
energy projects, the Union
Power Ministry is developing a
framework for repowering wind
farms from 200-300 watt units
to 2-5 MW that are available in
the market, Minister for Power,
Coal, and New and Renewable
Energy, Piyush Goyal said at an
Assocham event held in New
Delhi on Friday night.
Discom resolution
Talking about the discom

Economy
resolution, Mr. Goyal said, We
are not only ceased of it but we
are working relentlessly on a
daily basis to fine tune and
refine our proposals on that
without giving any subsidy again
or any grant/additional money
(to the States).
The Minister also said that
government plans to bring
down the cost of each LED bulb
to Rs.44 from a level of Rs.74
through competitive bidding.
Hydel power sector
Talking about the slow progress
of hydel power sector, Mr. Goyal
said at the event that he had
been able to get the Rs.9,000
crore worth Teesta power
project back on line and with
work expected to start soon it
is likely to come on stream in a
years time.
He also asked the industry
associations to work in the
national interest and not to
become postman for scamsters
or those following bad business
practices.
Renewable energy sector
Talking about the poor progress
of renewable energy sector in
India, Mr. Goyal said,
Effectively, what I inherited
was a situation where the
industry had almost given up
hope, you had anti-dumping
looming large on solar industry,
wind industry was crumbling in
the back of withdrawal of
certain fiscal benefits, bagasse
based plants were almost dead
or sick, small hydel was already
over.
Over 50 Indian companies take
part in India Expo exhibition in
Sri Lanka
Over 50 Indian companies are
participating in India Expo
tradeexhibition in Colombo.
The India Expo 2015, a multi
product and services exhibition
was inaugurated by Sri Lankas
Commerce Minister Rishad
Bathiudeen on Friday.
The India Expo has been
organised by the Federation of
Indian Export Organisations
(FIEO) in association with
Indian Ministry of Commerce
and Industry and the High
Commission of India in
Colombo.
The companies that are
participating represent various
sectors, including construction
products, apparel and
garments, cosmetics, agro
products, pharmaceuticals,
power
and
electrical
technology.
Audit Bureau of Circulation
elects office-bearers
Shashidhar Sinha CEO, IPG

Mediabrands, was unanimously
elected as Chairman of the
Audit Bureau of Circulation
(ABC) for 2015-16, according
to an ABC press release.
He was elected at the bureaus
67th Annual General Meeting.
I Venkat of Eenadu was
unanimously elected as Deputy
Chairman.
The members on the ABC
Council for 2015-2016 are:
Advertising
Agencies
Representatives Madhukar
Kamath
of
Mudra
Communications (as Honorary

Treasurer), Srinivasan K Swamy
of RK Swamy BBDO, and CVL
Srinivas of Group M Media India
Pvt
Ltd;
Publishers
Representatives Amit
Mathew of Malayala Manorama,
Shailesh Gupta of Jagran
Prakashan, Hormusji N Cama of
Bombay Samachar, Devendra V
Darda of Lokmat Media, Sanjeev
Vohra of Bennett, Coleman & Co
Ltd, Benoy Roychowdhury of
HT Media, and Chandan
Majumdar of ABP Pvt Ltd;
Advertisers Representatives
Hemant Malik of ITC (Honorary
Secretary),
Debabrata
Mukherjee of Coca-Cola India,
and Sandip Tarkas of Future
Retail.
Hormuzd Masani has taken over
as Secretary General.
The ABC, which plays a key role
in print measurement, will soon
start measuring digital
audiences, according to the
press release. In his new
capacity as Chairman of the
organisation, Sinha will
implement
the
digital
measurement project. The new
services will available to all
digital properties which want to
utilise them.
SEBI asks Raju family to pay
more than Rs 1,800 crore
The Securities and Exchange

Board of India (SEBI) on
Thursday asked ten entities
connected to the Satyam scam
39

Economy
40
case including the ex-chairman

of the erstwhile Satyam
Computer Services Ltd., B.
Ramalinga Raju and other family
members to disgorge over
Rs.1,800 crore, which are illgotten gains made by them.
The SEBI order said that
pursuant to the SEBI order on
July 15, 2014, B. Ramalinga Raju
and B. Rama Raju have to jointly
and severally disgorge
R s . 5 6 , 1 6 , 8 5 , 1 9 5
(Rs.26,62,50,000
and
Rs.29,54,35,195) which they
had earned by sale/transfer of
shares held by them in Satyam
Computers. Further SEBI asked
SRSR Holdings Pvt. Ltd.
(controlled by Raju brothers) to
disgorge the wrongful gain of
Rs.1,258.88 crore jointly and
severally with B. Ramalinga Raju
and B. Rama Raju.
The other family members
include, Chintalapati Srinivasa
Raju, Anjiraju Chintalapati (since
deceased).
Ms.
B.
Appalanarasamma, Ms. B. Jhansi
Rani, B. Rama Raju Jr., B.
Suryanarayana Raju, B. Teja Raju
and IL&FS Engineering and
Construction Company Ltd.
(formerly known as Maytas Infra
Ltd.) were also asked to
disgorge the amounts.
SEBI ordered that these
amounts would be paid, along
with simple interest at 12 per
cent per annum from January 7,
2009, till the date of payment,
within 45 days from the date of
this order, that is, September 10,
2015.
Earlier, SEBI passed an order on
July 15, 2014, wherein it had
barred B. Ramalinga Raju, B.
Rama Raju (then Managing
Director of Satyam), Vadlamani
Srinivas
(ex-CFO),
G.
Ramakrishna (ex-VP) and V.S.

Prabhakara Gupta (Ex-Head of
Internal Audit) from the markets
for 14 years and also asked them
to return Rs.1,849 crore worth
of unlawful gains with interest.
Gold Monetization scheme,Get
Cabinet approval
The government on Wednesday

announced the launch of
sovereign gold bonds and a
separate gold monetization
scheme in a bid to lure away
Indians from buying physical
gold.
Both the gold schemes
announced today were part of
the annual Budget proposal.
Here are 10 things to know
about the two gold schemes:
1) The sovereign gold bond
will enable investors to
buy gold certificates from
the government, which
can later be encashed for
money or physical gold.
2) Gold Bonds will be issued
with a rate of interest to
be decided by the
government. Interest will
be calculated on the
value of gold deposited
at the time of investment.
3) Gold bonds will be issued
in denominations of 5, 10,
50, 100 grams of gold.
The cap per person per
year has been set at 500
grams, the government
said.
4) Duration of such gold

bonds will be for
minimum of 5 to 7 years
to protect investors from
medium term volatility in
gold
prices,
the
government said.
5) Gold bonds are expected
to reduce the demand for
physical gold bars by
shifting a part of
estimated 300 tons per
annum for investment
into gold bonds.
6) The gold monetization
scheme
involves
mobilization of tonnes of
the yellow metal stored in
households and temples.
Ornaments will not be
accepted under gold
monetization scheme,
Finance Minister Arun
Jaitley said.
scheme that will enable
depositors to earn interest
on their on their gold
accounts.
scheme will cut down on
imports, thus reducing
foreign
exchange
outflows. According to
estimates, India paid
$34.32 billion to import
around 930 tonnes of gold
in the year ending March
2015.
9) Gold
monetization
scheme, in long term, will
reduce countrys reliance
on the import of gold &
put it to productive use,
the government said.
10) Though stocks of gold in
India are estimated to be
over 20,000 tonnes, most
of this gold is neither

Economy
traded, nor monetized.
Gold collected through
the scheme will be made
available to jewelers for
manufacturing of new
jewellery and other items.
Import of ammonium nitrate in
loose form banned
In a major relief to domestic

manufacturers and security
agencies, the Ministry of Home
Affairs is learnt to have asked the
Department of Industrial Policy
& Promotion (DIPP) not to allow
bulk import of ammonium
nitrate (AN) in loose form
because it poses a threat to the
national security.
As per the directive, the
chemical has to be imported in
bagged form only, irrespective
of the quantity in each bag, and
the consignment has to be
packed at the point of origin.
With this, the August notification
of the Ministry of Shipping that
allowed a south Indian port to
facilitate bulk import in any form
has become null and void.
The green signal for bulk import
in any form was interpreted as
import in a loose form. A
possible indiscriminate import
raised security concerns as
ammonium nitrate is an
extremely dangerous explosive
substance.
What had prompted the
Shipping Ministry to grant the
relaxation is not known.
Domestic manufacturers such as

Rashtriya Chemicals & Fertilizers
Ltd., Gujarat State Fertilizers &
Chemicals Ltd. and Deepak
Fertilisers & Petrochemicals
Corporation Ltd., which
together have an installed
capacity of 770,000 MT of
ammonium nitrate, had raised
objections as cheaper imports
would have severely affected
their business.
Besides, they had invested in
bar-coding of ammonium nitrate
bags, IT infrastructure and
tracking devices to comply with
the guidelines for ensuring that
even a small quantity does not
fall into the wrong hands.
The chemical is so dangerous
that the Home Ministry, in its
latest order, has made it
mandatory for vehicles
transporting it to have two
armed guards with the GPS
system.
India consumes 700,000 MT of
ammonium nitrate, a raw
material for making civil
explosives for mining and
infrastructure.
Since imports are 15-20 per
cent cheaper, explosive
manufacturers who supply to
mining and infrastructure
companies have been lobbying
for bulk import, especially in
loose form.
holding 89 million tonne of oil

and gas resources, worth Rs
70,000 crore at current rates,
will be given to explorers
offering the maximum revenue
from hydrocarbon produced to
the government.
Bidders will be asked to quote
the revenue they will share with
the government at low and high
end of price and production
band to capture windfall of
steep rise in prices as well as
quantum jump in production.
The government will allow
companies to sell oil as well as
natural gas produced from
these fields at market price and
with no restriction on who they
sell the produce to.
While oil is priced at global
benchmark currently, a
complex international hub
based formula determines gas
price, which is roughly half of
the rate at which India imports
gas.
This model was criticised by
CAG which said it encouraged
companies to keep raising cost
so as to postpone higher share
of profits to the government.
Government decided to waive

MAT to be waived for FIIs
Centre,s u-turn now auction 69

state-owned oil, gas fields
The 69 small and marginal fields
Union Finance Minister Arun

Jaitley announced on Tuesday
that the Narendra Modi
government had decided to
waive the controversial
minimum alternate tax (MAT) on
capital gains made by Foreign
41

Economy
Institutional Investors (FIIs)
prior to April 1, 2015.
The decision, to be carried out
through an amendment to the
Income Tax Act, is likely to
come as a big relief to FIIs that
pulled out more than Rs. 17,555
crore ($2.65 billion) from India
in August.
The Justice A.P. Shah
Committee has said that there is
no legal basis for levying 20 per
cent MAT on past capital gains
it is not leviable, Mr. Jaitley
told reporters..
Through the amendment, the
government proposes to clarify
that MAT provisions will not be
applicable to FIIs/FPIs not
having a place of business/
permanent establishment in
India for the period prior to
1.4.2015, said a release issued
later.
Bombardier bullish on Indian
market
Canada-based Bombardier
Inc.s rail unit is bullish about the
opportunities in India, buoyed
by thrust given to the sector in
the Railway budget and Prime
Minister Narendra Modis pet
projects such as high speed
trains and smart cities.
Railway Minister Suresh Prabhu
had announced an investment
outlay of Rs.8.5 lakh crore ($125
billion) to transform the Indian
Railways in the next five years
in the Railway budget.
Bombardier Transportation is
42
also evaluating to offer solutions

such as light metro/monorails/
light rail vehicles for smart cities,
he added.
The firm is already pursuing
various metro projects such as
Bengaluru Metro Phase-II,
Nagpur Metro, Ahmedabad
Metro and Mumbai Metro
Phase-III along with metro
projects for signalling systems
only in Noida Metro and Greater
Noida Metro.
Paradox of a dwindling world

economy and a growing India
There are three major crisis
faced by the Indian financial
markets since the opening up
of the Indian Economy in 1992
The South-east asian
currency crisis in 1997; global
financial crisis in 2007 with the
fall of investment bank, Lehman
Brothers: and the slump in the
Chinese economy witnessed
this week.
While the intensity of the fall
in financial markets was less in
1997 as the country was not
exposed much to the global
economy at that point of time,
the impact was heavier in 2015.
We were able to protect our
markets because of our strong
macro
economic
fundamentals, says N. S.
Venkatesh, Executive Director
and Chief Executive Officer of
IDBI Bank.
The fears of China economy
slump have made the market
very nervous. But I believe this
(fear) has been overdone, says
Mr. Venkatesh.
For Indian markets, as inflation
has been climbing down,
monsoon near normal and
currency being one of the
better currencies compared to
Malaysian Ringgit, Indonesian

Rupiah and South African Rand,
the economy could withstand
any financial onslaught.
The markets would stabilise at
current levels and will see an
upward trajectory reflecting the
growth potential for the
country.
The fall in commodity prices,
particularly the crude oil will
help us reducing the subsidy
burden for the government and
will in turn help better fiscal
management and reduction in
inflation expectations.
In 1997, other economies,
especially, the emerging market
economies (EMEs) were overheated with the foreign funds
entering their real estate and
stock markets. However, Indias
premature stage of openness
(of economy) helped the
country from a wild attack of
withdrawal of foreign funds as
witnessed in other countries.
When global financial crisis
erupted in 2007, the countrys
economy was well protected
by the Reserve Bank of India
(RBI) with Dr. Y.V. Reddy at the
helm.
The proactive regulatory
regime perceived by higher
capital as well as higher risk
weight age for real estate loans,
the central bank was able to
kept the asset bubbles at bay.
This legacy had been continued
by Dr. D. Subbarao also.
The RBI, as a regulator, has
always been ensuring that shortterm hot money flows are
discouraged which has helped
the country to withstand all
financial turbulences from
1997. Even when look at the
preference of the country, we
attract long term flows from real

Economy
money investors such as
pension funds, insurance funds
and sovereign wealth funds,
says Mr. Venkatesh. This would
enable the economy to
withstand any financial turmoil,
together with the built up of
adequate foreign reserves.
Chinese crisis
Devaluation of Yuan by
Peoples Bank of China (PBoC)
on August 11 and 12 led to
major volatility in global markets
and competitive devaluation in
currencies by a few emerging
markets
Even though on REER (Real
Effective Exchange Rates)
basis, Yuan doesnt seem to be
undervalued but the timing of
devaluation (slowing growth in
China and plunging stock
market) exacerbated the
market reaction as market
participants took this as a signal
that Chinese authority are going
to use currency devaluation as
a tool to spur growth, says
Vinod Garg, Director, QuantArt,
a foreign exchange advisory
firm.
for
re-appointment.The
Government has begun the
search for a new Chairman of the
capital market regulator SEBI to
succeed the current head UK
Sinha, whose term ends on
February 17, 2016.
The Finance Ministry said in a
notification that the new SEBI
Chairman would be appointed
for a five-year term or up to the
age of 65 years, whichever is
earlier. Besides, he would be
eligible for re-appointment.
The Chairman would have an
option to receive pay as
admissible to a Secretary to the
Government of India, or a
consolidated salary of Rs. 4.5
lakh per month.
The salary remains unchanged
from what is being paid
currently.
Before joining SEBI as its
Chairman, UK Sinha was the
head of the UTI Mutual Fund.
Prior to that, he had served in
the Finance Ministry among
other positions as an IAS officer.
LIC buys 86% of Indian Oil

shares on offer
Govt started search for new

SEBI Chairman
The Finance Ministry said in a

notification that the new SEBI
Chairman would be appointed
for a five-year term or up to the
age of 65 years, whichever is
earlier.
Besides, he would be eligible
State-owned Life Insurance

Corporation of India, bought 86
percent of shares on offer, in
state-run Indian Oil Corp this
week, salvaging a $1.4 billion
government sale, as the Indian
market took its biggest tumble
in more than six years.
LIC, Indias biggest investor, has
in the past dug into its pockets

to prop up government sales,
buying up state banks and
government mining firms. It
heavily supported the sale of
Coal India shares in January and
the sale of shares in Steel
Authority of India (SAIL) last
year.
The
investments
have
sometimes proved fruitful for
LIC, with stock in the State Bank
of India, which was invested in
January 2014, up more than 60
percent.
LG launched the worlds first 4K
OLED TV in India
The 55-inch variant is priced at

Rs 3,84,900 while the 65-inch
model at Rs 5,79,900.
The new LG OLED 4K TV
features a transparent stand and
the back cover is free of
fasteners and holes. In addition,
the TV also features 3D and
Harmin
Kardon
sound
technology. 3D glasses are
bundled with the TV.
The companys curved TVs are
based on LGs proprietary
WRGB technology that boasts
33 million colour sub-pixels
(about 27 million more than a
conventional full-HD tv) to offer
better colours and contrast ratio
along with deeper blacks. The
display offers a 5.9mm thickness
as well.
The TV also has a maximum
response time of 0.001ms (1000
times more than conventional
43

Economy
LCD TVs) for blur free viewing,
claims the company and the TV
is also powered by webOS
smart TV platform and LGs
magic motion remote that also
supports voice recognition. In
terms of connectivity, it
supports Wi-Fi, Miracast, MHL
and Intel WiDi.
Govt panel sees no basis for
MAT demand on FIIs
foreign portfolio investors,

Finance Minister Arun Jaitley
had in his Budget for 2015-16
exempted FIIs from the levy
from April 1.
Foreign investors have invested
about $20 billion in Indian
stocks in the past year and $28
billion in bonds.
In its 66-page report, the Shah
panel recommended relief for
FIIs from paying Minimum
Alternate Tax (MAT).
Centre accepted Bankers
demand
In a big relief to FIIs, a

government-appointed
committee has recommended
that there was no case for
imposing the controversial
minimum alternate tax (MAT)
on FIIs retrospectively, a
suggestion that the government
is said to be favourably
considering.
The A P Shah Committee,
which was appointed by the
government to go into question
of levy of MAT on capital gains
made by foreign institutional
investors (FIIs), submitted its
report to Finance Minister Arun
Jaitley on July 24.
The panel, a top source said,
has recommended that there
was no basis for levy of MAT on
FIIs for period prior to April 1,
2015.
The Committee saw no legal
basis for levy of 20% MAT on
past capital gains, he said
adding that the government is
favourably considering the
recommendation.
While the issue had riled
44
Bringing cheer to lakhs of bank

employees, the government has
accepted the long-pending
demand of workers to declare
second and fourth Saturdays
holidays, with effect from
September 1.
At present, all PSU and private
sector banks work half-day on
Saturdays. This s a welcome
move. This will be a big relief to
employees and I hope that this
will improve the productivity,
AIBEA general secretary C H
Venkatachalam said.
In case of a month having five
Saturdays, banks will be closed
only on second and fourth
Saturdays.
SBI denied fresh loans to NPA
accounts
Countrys largest lender State
Bank of India on Thursday
expressed concerns about
giving fresh loans to accounts
which have become non
performing assets(NPA) and
said the banks do not have any
incentive by doing so.
Listing reasons, Bhattacharya
said, One, you will be actually
bloating up your NPA numbers
further by giving it more money.

Second, if you look at the PSBs
and the kind of questioning they
have to go through If it is
NPA, why did you give it more
money? What is the reason you
have given money?
While speaking on bad loans at
the same event, RBI Governor
Raghuram Rajan said that NPAs
are largely an accounting issue.
E-Commerce Generates $1.2
Million Revenue Every 30
Seconds: Study
The global e-commerce

industry generates over $1.2
million (around Rs 8 crore) every
30 seconds, with a major chunk
of the sectors revenue being
cornered through social media,
says a joint study by AssochamDeloitte.
Facebook, Pinterest and
Twitter contribute $5,483 (Rs
3.57 lakh) $4,504 (Rs 2.94 lakh)
and $4,308 (Rs 2.81 lakh)
respectively every half-a-minute
to the figure.
The study report added that
the maturity of social media and
its reach across masses and
classes makes it a suitable
platform for online sales.
Social media pages provide
information regarding new
products in the market, user
reviews and ratings of the
product, recommendations and
IT products, it said.

Economy
Ashwani Lohani To Be New Air
India Chief
Engineer-turned-bureaucrat
Ashwani Lohani has been
appointed as the chairman and
managing director of national
carrier Air India. Mr Lohani will
have a fixed tenure of three
years as Air India boss.
Mr Lohani replaces Rohit
Nandan, whose extended
tenure ends on Friday.
A 1980 batch Indian Railway
Service of Mechanical
Engineers (IRSME) officer, Mr
Lohani is currently posted as
managing director of Madhya
Pradesh Tourism Development
Corporation.
Air India, which controls close
to a fifth of Indias domestic air
travel market, has been losing
money for years and has long
been criticized for its high costs.
Last month, the finance ministry
said it will provide an additional
funding of Rs. 800 crore for the
ailing airline. Air India was
allocated Rs. 2,500 crore in this
years Budget.
Investors like Alibaba, Snapdeal
is ready to take on biggies
If you are in e-commerce, you

just cannot ignore the power of
Indian market. Thats the
message investors are getting
from the latest round of
investment Snapdeal has
obtained.
Snapdeal has raised $500
million from Chinese e-retail
giant Alibaba, Taiwanese
iPhone maker Foxconn and
Japanese major SoftBank.
Existing investors Temasek,
BlackRock, Myriad and Premji
Invest also participated in the
funding round, Snapdeal said,
without giving further details.
In October 2014, the company
had raised $627 million from
SoftBank, which is learnt to be
holding a significant stake in the
online marketplace now.
In the latest round, media
reports say Alibaba and
SoftBank are likely to have
invested $100-125 million each.
India most attractive investment
destination globally, says EY
report
India is considered the most

attractive
market
by
international
investors,
according to a report released
by tax consultancy giant EY on
Wednesday.
The report ranks India as the
premier choice for investors
worldwide, with 32 per cent of
respondents ranking it the most
attractive market.
While it shows Indias approval

ratings as an investment
destination to be more than
double that of China and six
times that of Brazil, it also points
out 60 per cent of respondents
placed it among their top three
choices for investing.
The second edition of the
annual survey by EY explores
the investment plans of around
500 global investors, half of
whom already had business in
the country.
A third each were from North
America and West Europe,
respectively.
Indias outlook among investors
has risen, with 37 per cent
convinced it would be among
the top three economies by
2020, against 29 per cent last
year.
Existing investor experience
has helped, with 70 per cent of
businesses, which already
operate in India supporting that
idea.
India most attractive investment
destination globally, says EY
report
India is considered the most
attractive
market
by
international
investors,
according to a report released
by tax consultancy giant EY on
Wednesday.
The report ranks India as the
premier choice for investors
worldwide, with 32 per cent of
respondents ranking it the most
attractive market.
While it shows Indias approval
ratings as an investment
destination to be more than
double that of China and six
times that of Brazil, it also points
out 60 per cent of respondents
placed it among their top three
45

Economy
choices for investing.
The second edition of the
annual survey by EY explores
the investment plans of around
500 global investors, half of
whom already had business in
the country.
A third each were from North
America and West Europe,
respectively.
Indias outlook among investors
has risen, with 37 per cent
convinced it would be among
the top three economies by
2020, against 29 per cent last
year.
Existing investor experience
has helped, with 70 per cent of
businesses, which already
operate in India supporting that
idea.
Kingfisher diverted bank loans
to tax havens
Kingfisher Airlines had allegedly
diverted a substantial chunk of
Rs 4,000 crore in loans secured
from public sector banks to tax
havens which has now come
under the scanner of the CBI
that has expanded its probe in
the matter.Reuters
The material recovered during
searches on Saturday indicated
that the airlines, which stopped
flights in October 2012, has
allegedly diverted part of loans
taken from 11 nationalised
banks, with total exposure of Rs
4,000 crore, to tax haven
countries for different purposes
not specified in loan
applications, sources claimed.
They claimed that the agency
will be expanding the ambit of
the probe from Rs 900 crore
loan from IDBI Bank to loans
received from 10 other public
sector banks as well which have
total additional exposure of Rs
46
3,100 crore to the company.

They said the allegations of
diverting the loan amount from
specified purposes to tax
havens for different reasons will
also be probed by the agency.
The consortium of 17 banks had
an outstanding of over Rs 7,000
crore on loans to Kingfisher with
State Bank of India having the
highest exposure of Rs 1,600
crore.
The 10 public sector banks
whose loans have come under
the scrutiny of CBI, besides
IDBI, are UCO bank, Punjab
National Bank, State Bank of
India, Vijaya Bank, Bank of
Baroda, Corporation Bank, Bank
of India, United Bank of India,
State Bank of Mysore and Indian
Overseas Bank.
The banks will have to explain
reasons for extending the loan
to the airlines, ignoring its own
internal report which has
warned against such a move.
The sources remained tight
lipped about the countries
where such transfers were made
as they feel it might compromise
the information that they might
be seeking through Letters
Rogatory, judicial requests, from
these countries.
RBI move on loan-to-value ratio
The RBIs move to lower loanto-value ratios and risk weights

for individual housing loans can
help bring down interest rates
on home loans by another 2530 basis points over the next

few months, says a report.
We expect interest rate on
home loans to come down by
another 25-30 bps over the next
few months, triggered by RBIs
move to lower risk weights on
select home loans (up to Rs 75
lakh) where borrowers are
willing to put in more money and
thus lower the loan-to-value
(LTV) ratio, the report by rating
agency Crisil said.AFP
On Thursday, the banking
regulator said in the case of
individual housing loans falling
under the category of up to Rs
30 lakh, the LTV ratio would be
up to 90 percent. Earlier, the
facility was available only in
cases where the cost was up to
Rs 20 lakh.
For properties above Rs 30 lakh
and up to Rs 75 lakh, the LTV
will be up to 80 percent and
those above Rs 75 lakh, it will
be 75 percent.
A slew of banks, including State
Bank of India, PNB, IDBI Bank
and Bank of Baroda, Bank of
India, Axis Bank, ICICI Bank,
have lowered their base rates
after RBI on September 29
reduced its repo rate by a hefty
50 bps to 6.75 percent.
The RBI has lowered risk
weights on housing loans of up
to Rs 75 lakh from 50 percent to
35 percent in cases where the
borrower puts in at least 20
percent of the value of the
home as own equity for loans up
to Rs 30 lakh; and, 25 percent
of the value of the home as own
equity for loans between Rs 30
lakh and Rs 75 lakh.
The report said, theoretically,
lower risk weights should
significantly boost the return on
equity (RoE) of the mortgage
portfolio of banks.
What you will Get (?)
General Studies (Paper I, II, III & IV) Online 100 % Reading Material of the
Syllabus (Which can be saved easily)
Slides (For Giving Summary of Each Topics)
Categorized Unit and Sub-Unit Wise Question Papers of General Studies
Current General Studies Magazine (Indispensable Magazine for General Studies)
Daily Answer Writing Challenge for IAS Mains Contemporary Issues
It is full of tips on areas of emphasis, caution while reading and writing , how to
write the answer (?) .
Model Test Question Paper for General Studies - I, II, III and IV for Mains Exam
2015
Online and Telephonic interaction with the course director, and continuous
evaluation through a regular online writing session in every chapter and topic.
http://iasexamportal.com/civilservices/courses/ias-mains-gs-combo
Science & Technology
SCIENCE & TECHNOLOGY

Cell-free protein manufacturing platform a game changer
The human body has a novel

way of turning its proteins on
and off to alter their function
and activity in cells called
phosphorylation the
reversible attachment of
phosphate groups to proteins.
Using a special strain of E coli
bacteria, the researchers built a
cell-free protein synthesis
platform technology that can
manufacture large quantities of
these human phosphoproteins
for scientific study.
This will enable scientists to
learn more about the function
and
structure
of
phosphoproteins and identify
which ones are involved in
disease.
Such knowledge could pave
the way for new drugs for a
myriad of diseases, including
cancer.
Trouble in the phosphorylation
process can be a hallmark of
disease, such as cancer,

inflammation and Alzheimers
disease.
The human proteome (the
entire set of expressed
proteins) is estimated to be
phosphorylated at more than
100,000 unique sites, making
study of phosphorylated
proteins and their role in
disease a daunting task.
Along with Yale University
researchers, Jewett combined
state-of-the-art
genome
engineering
tools
and
engineered biological parts
into a plug-and-play protein
expression platform that is cellfree.
Cell-free systems activate
complex biological systems
without using living intact cells.
Nasas engine for nextgeneration rocket test-fired
Nasa has performed a nearly 9-
minute-long test of the engine

at the heart of the US space
agencys next-generation
megarocket that will take
astronauts to asteroids, Mars and
other deep-space missions.
The agency successfully tested

an RS-25 engine at Stennis
Space Center in Mississippi.
Four RS-25s will power the core
stage of the Space Launch
System (SLS) megarocket that
will launch astronauts in the
Orion spacecraft on missions to
deep space and eventually on
the journey to Mars.
The RS-25 blazed on the test
stand for 535 seconds - the
same amount of time the core
engines will fire during an actual
SLS launch.
The seven-test series is
designed to put the upgraded
former space shuttle main
engines through the rigorous
temperature and pressure
conditions they will experience
during a launch,
SLS and Orion are scheduled to
blast off together for the first
time in 2018, on a flight known
as Exploration Mission 1 (EM1). The seven-day EM-1 will
send an unmanned Orion on a
journey around the Moon, to test
out many of the capsules key
systems.
47
Science & Technology

90 percent of the viruses in the
soft palate had the reverted
form of the virus.
Flu viruses come in many strains,
and some are better equipped
than others to spread from
person to person.
Scientists from MIT and the
National Institute of Allergy and
Infectious Diseases (NIAID)
have now discovered that the
soft palate the soft tissue at
the back of the roof of the
mouth plays a key role in
viruses ability to travel through
the air from one person to
another.
The findings should help
scientists better understand
how the flu virus evolves
airborne transmissibility and
assist them in monitoring the
emergence of strains with
potential to cause global
outbreaks.
Researchers
made
the
surprising finding while
examining the H1N1 flu strain,
which caused a 2009 pandemic
that killed more than 250,000
people.
Ram Sasi sekharan, one of the
studys senior authors, has
previously shown that airborne
transmissibility depends on
whether a virus hem agglutinin
(HA) protein can bind to a
specific type of receptor on the
surface of human respiratory
cells.
Some flu viruses bind better to
alpha 2-6 glycan receptors,
which are found primarily in
humans and other mammals,
while other viruses are better
adapted to alpha 2-3 glycan
receptors, found predominantly
in birds.
The 2009 strain was very good
48
at binding to human alpha 2-6

receptors. In the new study, the
researchers made four
mutations in the HA molecule
of this virus, which made it
better suited to bind alpha 2-3
receptors instead of alpha 2-6.
They then used it to infect
ferrets, which are often used to
model human influenza
infection.
ISRO set to launch first space
observatory satellite ASTROSAT
Indian Space Research

Organisation (ISRO) is all set to
launch Indias first fully
dedicated
astronomical
satellite ASTROSAT. The
satellite will be launched from
the Satish Dhawan Space
Centre at Sriharikota at 10 am
on September 28, revealed
ISRO chief A S Kiran. It is a 1.5
ton satellite that will blast off
into space by a PSLV C-30
rocket.
Indias first space observatory
Astrosat will be accompanied
by six foreign co-satellites
including one micro satellite
each from Canada and
Indonesia and four nano
satellites from the US.
According to an ISRO official,
The mission envisages an earth
orbiting scientific satellite with
payloads
capable
of
simultaneously observing the
universe in the visible, ultraviolet
and X-ray regions of the
electromagnetic spectrum.
The satellite has the capability
to
observe
multiple
wavelengths
including
ultraviolet and X-rays which will
help scientists in studying
distant star, white dwarfs and
pulsars. In addition, it will also
study the super massive black
hole situated at the centre of our

galaxy Milky Way. According to
ISRO, equipments of satellite
are designed to train itself while
observing the black hole.
While explaining about the
ASTROSAT, ISRO chief said
that the satellite will be
launched into a 650 km orbit
and is equipped with one UV
telescope, a charge particle
monitor and will carry four X-ray
payloads. Canadian Space
Agency and University of
Leicester, UK have helped in
designing two of the payloads.
Payload of the satellite was
developed by ISRO along with
four other Indian institutions
Tata Institute of Fundamental
Research, Indian Institute of
Astrophysics, Inter-University
Centre for Astronomy and
Astrophysics and Raman
Research Institute.
NASA building space shotgun to
blast asteroids
NASA is developing the worlds
first space shotgun that can blast
asteroids into small pieces for
collection as samples when a
robotic spacecraft reaches near
one such space rock in the near
future.
Along with a Brooklyn-based
company Honeybee Robotics,
the US space agency is working
on a shotgun as part of its
Asteroid Redirect Mission
(ARM) that will test the
strength of an asteroid to
determine if it is sturdy enough
for sampling, New York Post
reported on Sunday.
The ARM aims to chop off a
massive chunk of an asteroid
and shift it into the Moons orbit.
Then, a manned spacecraft will
collect samples and send these
back to the Earth for further
examination.
Sports
SPORTS
Novak Djokovic win
U.S open title
second US Open title, third

major championship of the year
and 10th Grand Slam trophy in
all..
Freestyle category, giving the

country a reason to cheer at the
World Wrestling Championship
here.
Sania and Martina duo win

U.S.open
Thrilled to win a point in the US

Open final, and bent on proving
a point, Novak Djokovic leaped
and roared and threw an
uppercut, then glared at some
of the thousands of spectators
pulling for Roger Federer.
After winning another point in
that game, Djokovic nodded as
he smiled toward the stands.
And moments later, Djokovic
shook his right arm, bloodied by
an early fall, and screamed, Yes!
Yes! to celebrate a missed
forehand by Federer.
Djokovic appeared to be all
alone out there in Arthur Ashe
Stadium, trying to solve Federer
while also dealing with a crowd
loudly supporting the 17-time
major champion proclaimed
arguably the greatest player in
the history of the sport by the
stadium announcer during
prematch introductions.
In the end, Djokovic handled
everything in a thrill-a-minute
final on a frenetic night.
Frustrating Federer with his
relentless defense and
unparalleled
returning,
Djokovic took control late and
held on for a 6-4, 5-7, 6-4, 6-4
victory Sunday to earn his
Sania Mirza and Martina Hingis

came together in March this year
and have been on a roll ever
since - notching doubles titles
for fun. At US Open, the top
seeded pair did not lose a single
set in a marauding performance
from start to finish to earn their
second consecutive Grand
Slam title.
The Indo-Swiss duo have been
in red-hot form and on Sunday,
stream-rolled past the fourth
seeded pair of Casey Dellacqua
and Yaroslava Shvedova. It took
the top seeds only 70 minutes
to wrap up the final 6-3 6-3
against the fourth seed KazakhAustralian combination at
Flushing Meadows.
Mirza and Hingis were in
understandably upbeat mood
speaking after the match.
Narsingh Pancham Yadav
secured an Olympic quota
Narsingh Pancham Yadav
secured an Olympic quota place
for India after bagging a bronze
medal in the Mens 74kg
With his third-place finish,

Narsingh became the lone
Indian to win a medal at the
prestigious tournament as well
as book a berth for the 2016 Rio
Games. Top six in each category
qualifies for the Olympics. This
is the first time that an Indian
wrestler has earned an Olympic
berth with a medal at the World
Championship.
Double Olympic medallist
Sushil Kumars absence from the
mat for over an year now has
made Narsingh a regular in the
74kg division.
It will now be interesting to see
who between the veteran
Sushil or 26-year-old Narsingh
ultimately board the flight to Rio
next year to represent India in
this category. As per rules, an
Olympic berth is for the country
concerned and not the wrestler
who might have clinched it.
Other than Narsingh, India had
a dismal show overall in the
championship,
which
concluded today, as no one
else could make it to the
podium.
49
Sports
Shastri retained as team
director till 2016
Ravi Shastri was on Sunday

retained as the team director of
the Indian cricket team till the
2016 T20 World Cup at home,
based on the recommendations
of the BCCI advisory committee.
Shastri, who was appointed
team director in August 2014,
has been given another sevenmonth extension till the
completion of the World T20 in
April. The sixth edition of the
tournament is scheduled to be
held in India from March 11 to
April 3.
The former Indian all-rounder
took over the job after the
England Test loss last year. The
cricketer-turned-commentator
then saw the team win the ODI
series in England.
His two biggest achievements
as team director are Indias
semi-final finish in the 50-over
World Cup in Australia and New
Zealand along with Virat Kohlis
Test side winning an away Test
series against Sri Lanka after 22
years.
Acknowledging
the
performance of the Indian
cricket team and the efforts of
the coaching staff in recent
times, the advisory committee
comprising Sachin Tendulkar,
Sourav Ganguly and VVS
Laxman
endorsed
the
extension of their tenure.
50
Along with Shastri, the

committee also approved the
extension of the assistant
coaches till the T20 showpiece
event next year. Sanjay Bangar
stays on as the assistant coach
(batting), Bharat Arun remains
as bowling consultant and R
Sridhar as the fielding coach.
Flavia Pennetta wonUS Open

2015,women single title
With her final shot in the 49th

grand slam of her career, a
beautifully struck off-forehand
that scooted past the flailing
racquet of a lifelong friend who
had reached so far to bring
down a giant of tennis just a day
earlier, Flavia Pennetta made
history..
In front of a capacity crowd who
had expected to see history of
another kind that derailed
when Vinci halted Serena
Williams tilt at the calendar
Grand Slam in an astonishing
semi-final Pennetta promptly
announced her retirement.
One month ago I take the big
decision in my life. This is the
way I would like to say goodbye
to tennis, she told a capacity
crowd.
It floored those who had paid
big dollars to attend a final that,
for the first time ever, sold out
quicker than the mens decider,
undoubtedly due to the Serena
slam factor.
Billie Jean King, who was
standing in the crowd, was seen
to bellow No way when the

announcement was made.
Fellow professionals took to
social media to express their
delight and dismay at the same
time, for Pennetta is clearly a
popular figure on tour.
What the Italian Prime Minister
Matteo Renzi made of it is
unclear, but he was clearly
delighted to witness the historic
moment from Arthur Ashe
Stadium.
Pennettas boyfriend, Fabio
Fognini, who had earlier
knocked Rafael Nadal out of the
tournament, was another forced
to make a quick dash back to
New York after moving on to his
next event.
Retirement at the top is not
completely unprecedented.
Pete Sampras never played
again after winning the 2002 US
Open, although he did not
announce his intentions for
another year. Frenchwoman
Marion Bartoli retired a month
after winning Wimbledon in
2013.
Pennetta said she made the
decision a month ago and had
no great expectations heading
into the Open, despite boasting
a solid record in New York.
The 26th seed toppled some
quality rivals along the way. Sam
Stosur was her fourth-round
opponent,
two-time
Wimbledon champion Petra
Kvitova a quarter-final rival and
the world No 2 Simona Halep
among the women she thrashed
to reach the final.
Senate vote in favour of Iran

deal
Senate Democrats on Thursday
handed U.S. President Barack
Obama a major political victory
Sports
for his administrations nuclear
deal with Iran, as they voted 5842 to block a Republican
resolution rejecting agreement.
A sense of relief combined with
exhilaration appeared to grip
the White House after the vote
and Mr. Obama described the
vote as a historic step forward
that thwarted an attempt to
scupper the six-nation accord
aimed at limiting Irans nuclear
development activities in
exchange for a gradual
reduction in economic
sanctions against Tehran.
Under legislation passed by the
U.S. Congress in May this year,
the deal will automatically take
effect unless both the House
and Senate vote for a resolution
of disapproval by September
17.
Welcoming his Democratic
colleagues action on Capitol
Hill, the President noted:
Going forward, we will turn to
the
critical
work
of
implementing and verifying this
deal so that Iran cannot pursue
a nuclear weapon, while
pursuing a foreign policy that
leaves our country - and the
world - a safer place.
Paes wins U.S.Open mixed
double title
All praise for partner Martina
Hingis after clinching the U.S.
Open mixed doubles title,
veteran Indian tennis star
Leander Paes said he neither has
the technique nor the calibre to
match the Swiss legend but he
tries to make up for it with his
perseverance.
Paes combined with Hingis to
win a record ninth Mixed
Doubles Grand Slam title after
beating the American combo of
Sam Querrey and Bethanie

Mattek-Sands 6-4 3-6 10-7 in
the US Open final.
Soon after he won his historic
U.S. Open title, Paes said more
than the technique it is his neversay-die spirit that has got him
success.
He has now won nine mixed
doubles major titles and trails
only former partner Martina
Navratilova (10).
Kohli new boss of federer To
co-own IPTL team UAE Royals
Joining the IPTL bandwagon,

India Test captain Virat Kohli has
become co-owner of the UAE
Royals, which will be led by
Swiss great Roger Federer.
Federer had played for
Micromax Indian Aces in the
inaugural season and this
season he will be joined by
Goran Ivanisevic, 2001
Wimbledon Champion Ana
Ivanovic, Daniel Nestor, Kristina
Mladenovic and Tomas
Berdych.
The UAE leg of the league will
be held from December 14-16
at the Dubai Duty Free Tennis
Stadium.
The league has expanded to
five teams for its second edition
with the Japan Warriors joining
last seasons champions, the
Indian Aces, alongside the UAE
Royals, the Philippine Mavericks
and the Singapore Slammers.
The league will begin in Japan
from December 2 and
culminate in Singapore on
December 20.
Sania, Paes
Partner Hingis to Finals
Sania Mirza and Martina Hingis

provided the storm-effect with
some thunderous play from the
back of the court after lateafternoon showers disrupted
the days schedule at the US
Open.
The top seeds made their
second successive Grand Slam
final, having won Wimbledon in
July, in stirring fashion. Hingis,
35, returned on court an hour
later, partnering another Indian
Leander Paes to make the mixed
doubles final, their second in
succession after their triumph at
the All England Club.
Sania and Hingis beat the tough
pairing of Italys Flavia Pen netta
and Sara Errani 6-4, 6-1 in 77
minutes. They await the winners
of the second semifinal
between Casey DellacquaYaroslav Shvedova and Coco
Vandeweghe-Ana-Lena
Groenefeld.
US plans to accept 10,000 Syrian
refugees next year
That number is significantly
higher than the 1,500 Syrians
that have been permitted to resettle in the US since the start
of the conflict.
The 10,000 figure is still much
lower than the 340,000 asylum
seekers who arrived in Europe
this year.
51
Sports
Since the beginning of the
conflict the US has given $4bn
($2.6bn) in aid.
The increase in accepting
refugees displays a significant
scaling up of US commitment
to accept people from conflict
zones and help provide for their
needs, White House Press
Secretary Josh Earnest said.
US Congress would have to to
make a significant financial
commitment in order to allow
for additional 10,000 refugees
to the US, Mr Earnest said.
The United Nations High
Commissioner for Refugees
(UNHCR) has registered four
million Syrians as refugees, and
it has asked governments
around the world to resettle
130,000 Syrian refugees by the
end of 2016.
India beat Malaysia 9-1 to enter
semi-final of Junior Asia Cup
who scored the first goal for

India in the eighth minute.
Novak Djokovic reaches US
Open semis for 9th straight year
Novak Djokovics U.S. Open
quarterfinal was suddenly tied
at a set apiece, and he tore off
his shirt as he headed to the
sideline. He sat, halfheartedly
tried to smash his racket, then
began screaming.
Hardly the first time, nor likely
to be the last, that Djokovic has
let out a little emotion during a
match. Whatever gets you
through the day, right?
Gathering himself after getting
pushed around a bit by an
opponent
with
an
unconventional style, Djokovic
wound up reaching the
semifinals at Flushing Meadows
for the ninth consecutive year
with a 6-1, 3-6, 6-3, 7-6 (2)
victory over 18th-seeded
Feliciano Lopez that finished a
little after 1 a.m. Wednesday.
Australia wicketkeeper Brad
Haddin retires from Test cricket
Skipper Rani Rampal led from

the front and slammed a hattrick as Indian eves thrashed
Malaysia 9-1 in their last league
game of the seventh womens
Junior Asia Cup on Thursday.
By virtue of this win, India has
qualified for the semi-final of the
tournament.
The Indian eves started on an
attacking note and penetrated
the Malaysian circle in the early
minutes of the game.
Preeti Dubey rushed into the
Malaysian circle and played a
cross ball towards Rani Rampal,
52
Wicketkeeper Brad Haddin

announced his retirement from
Test and domestic first-class
cricket on Wednesday, joining
the exodus of veteran players
from the Australian side after its
Ashes loss.
The 37-year-old Haddin, who
didnt make his test debut until
he was 30, played 66 tests,
scoring 3,266 runs at an average
of 32.98.
Anirban Lahiri becomes first

Indian to qualify for Presidents
Cup team
Anirban Lahiri added another
feather to his cap by becoming
the first Indian to qualify for the
prestigious Presidents Cup.
Lahiri, World No.40, came
through as one of the automatic
qualifications
for
the
International Team, which will
take on United States in the
biennial Presidents Cup in
Korea.
In the International Team
standings, the deadline for
which ended on Monday, Lahiri
finished seventh to make the
team.
Also becoming the first from his
country to make the team was
Thailands Thongchai Jaidee,
who was ninth
At one stage, Lahiri had fell out
of the Top-10, but his fifth place
finish
at
the
PGA
Championships hauled him
back into the zone.
Haryana government grants
Vijender permission to turn
professional
Vijender Singhs bout with the

Haryana government over
chasing his professional boxing
dreams is over.
The Beijing Olympics bronze
medallist can go ahead with his
plans with the Haryana
government finally approving
his leave application to train in
Sports
England to compete in the

professional circuit.
Vijender,
a
Deputy
Superintendent in Haryana
Police, had in July sought a
years extraordinary leave (from
August 2015) to train and
compete.
The government didnt give its
approval, which whipped up a
controversy. However, it gave its
approval a couple of days ago.
Around 15 athletes from
Haryana Police figure in various
professional leagues, including
the pro-kabaddi league.
Vijender has started training in
London and the first bout is
expected to take place in a
month.
I-League and ISL merger

possible after two-three
seasons, says AIFF chief Praful
Patel
The All India Football
Federation (AIFF) finds itself in
a tug-of-war for attention
between Indian Super League
clubs and I-League clubs: both
tournaments spawned by the
same organisation but one
which finds itself backed by big
corporates, bollywood stars and
Star Sports; and the other
besieged by failing clubs, lack
of marketing and almost
negligible viewership.
Legacy and history are the only
two things going for the ILeague.
However, after a meeting with
ISL organisers IMG-Reliance
and
I-League
club
representatives, AIFF president
Praful Patel gave assurances that
Indias
FIFA-recognised
principal league is not going
anywhere, at least for now.
A merger with the ISL has still
been discussed and is very

much in the pipelines, but it will
take time.
That is no reason to stop the
governing body of football to
not listen to the grievances of ILeague clubs.
Patel gave the example of ILeague club Mumbai FC which
had to play their home games
outside of Mumbai because
Cooperage was not ready to
host matches which made it
extremely hard for the club to
garner a following.
The Member of Parliament has
also agreed that India play their
World Cup qualifier against
Guam in Mumbai at the Andheri
Sports Complex, subject to
organisers upgrading the turf,
seating and other FIFA
requirements.
innings score of 312.

For this performance, Pujara has
been rewarded with a jump of
four places, which puts him in
20th position.
Pujara is now the second India
batsman to feature in the top 20,
but following Virat Kohlis drop
to 11th (down by one place),
the fifth-ranked side has no
batsman inside the top 10.
Rohit Sharma has moved up two
places to 48th, Ravichandran
Ashwin has gained five places
and is now in 50th spot, while
Amit Mishra, who scored 59 in
the first innings and featured in
a 104 runs eighth wicket
partnership with Pujara, has
vaulted 56 places to 91st.
India-South Africa series to be
known as Gandhi-Mandela
series
Pujara, Sharma break into top

20 of ICC Test rankings
Pacer Ishant Sharma broke into
the bowlers top-20, while
Cheteshwar Pujara entered the
top-20 of batsmens list as
Indian cricketers gained
significantly in the latest ICC
Test rankings following their first
series triumph in Sri Lanka in 22
years.
Cheteshwar Pujara has broken
into the top 20 of the ICC Player
Rankings for Test Batsmen for
the first time in his career
following the conclusion of the
Colombo Test, which India won
by 117 runs to clinch the series
2-1, the ICC said in a
statement.a
The 27-year-old batsman
carried his bat in the first innings
and returned unbeaten on 145
not out, his seventh career
century, which was the
cornerstone of Indias first
Australia & England might have

the Ashes but India and South
Africa have evoked the memory
of two iconic historical figures
to name future cricket series
between the two countries.
Starting in November, the Test
series between the countries
will be known as The Mahatma
Gandhi-Nelson Mandela Series,
an announcement said on
Monday. For the people of
both our countries there is no
greater duty than to uphold the
ideals of both Mahatma Gandhi
and Nelson Mandela, Cricket
South Africa Chief Executive
Haroon Lorgat said in a
53
Sports
statement. As cricket loving
people we must fight hard to
win on the field of play but
never forget to do battle in the
spirit of these two great men.
South Africa tour India for four
Tests in November and
December, preceded by a
series of limited over matches
in October. The two countries
have played 11 Test series since
1992 with South Africa winning
six and drawing three. Only the
first series comprised four Tests.
A dispute between the two rival
boards saw the last series in

South Africa reduced to just
two Tests in 2013. Gandhi, who
pursued non-violent protest to
win Indian independence, lived
in South Africa for almost two
decades, working as a lawyer
and leading several civil rights
protests. Mandela, who died
almost two years ago, spent 27
years behind bars for his fight
against apartheid and then
became South Africas first
black president in 1994.
Olympics were in contention

for the European continental
title.
This freed the quota place
reserved for the winner in
Europe.
The Indian women thus
clinched their ticket to Rio
through their fifth-place finish
at the Hockey World League
Semifinal in Antwerp, and the
next highest-ranked team not to
have booked a berth to Brazil.
Sania receives Rajiv Gandhi
Khel Ratna Award
Womens hockey team

Confirmed its berth to next years Olympic Games
A 36-year-long wait ended on

Saturday as the Indian womens
hockey team confirmed its
berth to next years Olympic
Games in Rio de Janeiro.
The news could not have come
on a better day the National
Sports Day and birthday of
hockeys original wizard, Dhyan
Chand.
India last played in the Olympics
at Moscow in 1980 when
womens hockey made its
debut.
India womens hockey team
was assured of a place in the
2016 Olympics Games after
fellow contenders Spain lost to
54
England.
The team clinched the berth to
Rio thanks to England, who
defeated Spain 2-1 in the
semifinals of the EuroHockey
Championships in London on
Friday night.
Spain were the only team in the
EuroHockey Championships
semifinals not to have qualified
for the Olympics and needed
to win the title to claim the
berth.
Englands victory over Spain,
coming after the Netherlands 10 win against Germany in the first
semifinal, meant two teams that
had already qualified for the
In the backdrop of two legal

cases, 16 sportspersons and
five coaches were among those
who were honoured at the
National Sports and Adventure
Awards ceremony in the Durbar
Hall of the Rashtrapati Bhawan
here on Saturday.
Tennis ace Sania Mirza was
conferred the Rajiv Gandhi Khel
Ratna Award even as the
Karnataka High Court sought
clarifications from the Union
Sports Ministry following a
petition from Paralympian H.N.
Girisha challenging the
Ministrys decision.
Sania, a multiple Grand Slam
champion, is the second tennis
player to get the honour and the
first to receive the award from
President Pranab Mukherjee.
Predictably, Sania, who flew in
ahead of the US Open, was the
most sought-after sportsperson
of the evening.
Sports
The event lost some sheen as
five out of 17 selected for the
Arjuna Award could not be
present due to international
assignments and other
compulsions.
Indians women hockey team
make it to Rio
The Indian womens hockey
team has become the 10th side
to qualify for next years Rio
Olympics. India had last played
in the Olympics in 1980, the year
in which womens hockey
made its debut in the mega
event, and finished fourth after
losing to the Soviet Union in the
bronze medal match.
According to a statement
issued by the International
Hockey Federation (FIH) on
Saturday, India qualified after
England defeated Spain in the
semifinals of the Euro Hockey
Championships in London,
which ensured that the only
teams who can now win the
event have already qualified for
Rio through the Hockey World
League Semifinals the
Netherlands and England (as
Great Britain).
This is the first time when the
Indian women made it to the
Olympics
through
the
qualification system.
goodwill ambassador for the UN

childrens agency, UNICEF.
The world No. 1 mens player
has worked on childrens issues
for UNICEF in his native Serbia
since 2011. UNICEF has now
appointed him a global
goodwill ambassador.
UNICEF Deputy Executive
Director Yoka Brandt said
Wednesday Djokovics new job
recognized his work in Serbia
to improve the lives, particularly
of marginalized children, and to
promote early childhood
education.
Djokovic grew up in Serbia
during the Balkan wars and
became a top tennis player
there. He has gone on to win
nine tennis majors and is
considered one of the sports
all-time greatest players. He is a
favorite to win New Yorks U.S.
Open, which begins next
week.
Djokovic said he is honored to
be a UNICEF goodwill
ambassador and to continue to
help defend and uphold
childrens rights.
India to host international
weightlifting event for first time
For the first time in the history
of weightlifting, an individual
international tournament will be
organised in India when it hosts
the Commonwealth Youth,
Junior and Senior Weightlifting
Championships in Pune from
October 11-15.
India will field 40 weightlifters
11 youth (boys & girls), 16
junior (men & women) and 13
senior (men & women) in the
C o m m o n w e a l t h
Championships.
Meanwhile, five weightlifters
will take part in the 26th Women
& 45th Men Senior Asian
Weightlifting Championships to
be held in Phuket, Thailand from
September 3 to 12.
HC notice to Sania Mirza, government over Khel Ratna award
Novak Djokovic in a new role

as global goodwill ambassador
Top-ranked tennis star Novak

Djokovic has a new title
The Karnataka high court on

Wednesday ordered notices to
tennis star Sania Mirza, Union
sports ministry and two sports
committees in response to a
petition filed by Paralympics

champion HN Girisha.
Girisha has challenged the
decision to recommend Sanias
name for this years Rajiv Khel
55
Sports
Ratna award, to be presented

by the President on August 29.
Girisha, from Hassan district, had
won a silver for India in the
2012 London Olympics
Paralympics.
He also won bronze in the 2014
Asian Para Games. He has won
Padma Shri, Arjuna and
Ekalavya. As per the marks
criteria, Girisha said he has to his
account 90 marks (70 marks for
silver medal in London
Olympics, Paralympics 2012
and 20 marks for bronze medal
in Asian Games 2014) during
the computation period January 1, 2011 to December
31, 2014.
In his petition, Girisha claimed
he was a more meritorious
candidate among the nominees
and alleged discrimination
since the right person has been
denied the award.
The respondents (selection
committee and sports ministry)
have severely erred in their
assessment in arriving at the
qualification
and
recommendation of Sania
Mirzas name for the award of
Khel Ratna. There has not been
proper
and
unbiased
assessment in the matter,
Girisha claimed in his petition.
Police from Haryana has not only

won the respect of teammates
with his cool approach, it has
also won the hearts of fans
across the country. He is as
cool as ice, says Surinder Nada,
who had accidently made it to
the team despite not be ing the
first
This season U Mumba have been
brilliant. With 12 wins in 14
matches, the franchise has been
a revelation and coach E
Bhaskaran is not shy to deflect
the credit onto Anup. As a
coach I cant do much when the
game is on.
This year the time-outs too have
been reduced to a minute-anda-half each which does not
leave too much time for me to
strategise.
Here, Anup and his cool
attitude come in handy. He
becomes a coach among his
teammates and guides them
exactly the way I would have in
each situation. He has an
amazing ability to grasp
whatever I tell him, says
Bhaskaran, who also happens to
be the coach of the national
team.
First Indian to Play a Golf
Major,Anirban Lahiri
Kabaddi League: Anup, the

force behind U Mumba
If U Mumba, the runners up of
the in augural season of the Star
Sports Pro Kabaddi League last
year, have emerged as the hot
favourite to claim the crown in
Season 2, it has a lot to do with
their skipper Anup Kumar.
The vice-captain of the national
team, is the catalyst behind the
teams supreme form.
The Deputy Commissioner of
56
Anirban Lahiri created history

for Indian golf on Sunday,
finishing tied 5th at the PGA
Championship. The Bangalore
golfers 5th place finish is the
best performance by an Indian
golfer at a Major, eclipsing Jeev

Milkha Singhs Tied 9th finish at
the PGA Championship in
2008.
Anirban in fact played all four
Majors this year and his stint at
the PGA capped a dream year
that saw him win 2 European
Tour events. We spoke to Gaurav
Ghei, a three-time winner on the
Asian Tour and the 1st Indian to
participate in a Major in 1997
about the magnitude of
Anirbans achievement and
what this means for Indian golf
Sebastian Coe elected new
president of IAAF
Sebastian Coe was elected
president of the International
Association of Athletics
Federations (IAAF) on
Wednesday after beating
Ukraines Sergey Bubka by 115
votes to 92 in a ballot of the
governing bodys 50th
Congress.
The Briton takes over as head of
a sport battling a public
relations crisis with the IAAF
accused of failing in its duty to
address
doping
amid
allegations that blood doping
was rife in athletics.
The former Olympic 1,500
metres champion will replace
Senegalese Lamine Diack, who
has run the body for the last 16
years, at the end of the Aug. 2230 world championships in
Beijing.
Coe has aggressively defended
the IAAFs record on doping
over the last three weeks, saying
the organisation had led the
way on out-of-competition
testing and laboratories, and
introduced blood passports in
2009 to help weed out the
cheats.
Sports
Coe also reiterated his promise
to hand each of the 214
federations a development
grant of $200,000 in each
Olympic cycle of four years, and
to engage with governments to
help utilise their funding to help
athletes. The financial acumen
he gained in heading up the
organising committee for the
London Olympics would stand
him in good stead as he seeks
to bring new sponsorship to the
sport, he added.
Aditi Chauhan, 1st Indian woman footballer to play in UK
Chhattisgarh will host mens

Hockey World League Final
Chhattisgarh will host the mens

Hockey World League Final
from November 27 to
December 6 in its capital city of
Raipur, the International Hockey
Federation (FIH) announced
today.
The event will be held in the
Raipur International Hockey
Stadium, which was opened as
a dedicated hockey facility in
August last year.
The event will feature eight
national hockey teams who
qualified through the Hockey
World League Semi-Finals in
Buenos Aires and Antwerp.
They include Australia, ranked
number one in the FIH World
Rankings, Netherlands (2),
Germany (3), Belgium (4), Great
Britain (5), Argentina (6), hosts
India (8) and Canada (13).
This will be the first international
hockey event to be staged not
only in the newly-built Raipur
International Hockey Stadium,
but also in the city.
When Indian team goalkeeper

Aditi Chauhan started her first
game for West Ham Ladies in an
FA Womens Premier League
game on Sunday, it may not have
seemed like a big deal. The
match ended in a 0-5 loss to
Coventry United.
But Chauhans appearance was
special: she became the first
player from the national
womens team to play
competitively in England. No
small feat for a girl from a country
where the idea of sport revolves
around cricket and little else.
The 22-year-old from Delhi was
signed pre-season by the thirdtier London club for one year
from Loughborough University
in Leicestershire, where she
recently completed an MSc in
sports management.
There is a steep jump in the

number of Indians competing
at the highest level of the sport
in the last few years, with
currently three men and two
women in the top 15 of the
respective world rankings.
India had players like Prakash
Padukone
and
Pullela
Gopichand, current national
chief coach, in the past but they
were exceptions at best.
Padukone won Indias first
World Championships medal, a
bronze, way back in 1983 after
winning the prestigious All
England Championships in
1980, whereas Gopichand won
the All England title in 2001.
People wait with open swords,
says Dhoni
Super Saina
Leads Indias rise in badminton
For a country which produces
world-class athletes miserly,
something revolutionary is
happening in the world of
badminton with world No.2
Saina Nehwal leading the Indian
charge.
MS Dhoni praised his bowlers,

especially the spinners, for
performing well under pressure
57
Sports
to provide India with a win at

the Holkar stadium.
The Indian skipper singled out
Axar Patel and Harbhajan Singh,
who were playing their first
match in the series. I am happy
with the way they bowled and
got India early breakthroughs at
crucial times, he said.
But he also had a word or two
for the critics who had written
him off. It is not an easy game
that we play, a lot of people wait
with open swords and want you
to make mistakes and have fun
with it, he said after the win.
It was a good game for us.
There were a few soft dismissals
and we didnt score something
which was par on this wicket.
We didnt start well with our
bowling but our spinners did
well and gave us the
breakthrough and later the
pacers also came into action
and gave us those wickets.
tally. Oman had won the first leg

encounter in Bengaluru 2-1.
India thus stay at the bottom of
the heap having conceded as
many as 12 goals in their five
games, managing to score only
thrice.qualifying football match
against Oman. AFP
At the Sultan Qaboos sports
Complex, the Indian team
barely managed to hold fort
during the first 45 minutes as it
ended with Oman failing to
break the deadlock.
However, the repeated raids
and the relentless pressure on
the defence meant that scoring
the first goal was only a matter
of time.
Stephen Constantines boys
were defending with eight to
nine men in their defensive third
at one point of time.
India loss to SA in 1st ODI
India thrashed 3-0 by

Oman,World Cup Qualifier
Indian football teams abject

humilation continued as they
slumped to their fifth
consecutive defeat in the 2018
FIFA World Cup qualifying
round, losing 0-3 to Oman in an
away game on Tuesday.
For the hosts, Ahmed Kano
Mubarak scored in the 55th
minute while Abdul Aziz Al
Muqbali scored in the 67th and
85th minute to round off the
58
It has been the talking point for

a while, whether Mahendra
Singh Dhoni still carries his
hitting ability. On Saturday, the
skipper again ended up
spooning a return catch after
India entered the last over of the
match needing 11 to win. His
dismissal left India needing
seven runs from three deliveries

and they lost by five runs.
The Dhoni of old would have
smashed young paceman
Kagiso Rabadas short delivery
over midwicket for six.
This time, he got it too high on
his bat. It could be wrong shot
selection, but the situation left
him with no other option as
Dhoni, like on earlier occasions,
had dragged the match to the
last over.
Much as he would have wanted
to avoid such a situation again
by coming ahead of Suresh
Raina, in the end he had
adopted a gambit that has
failed on the last few occasions.
For his lack of big hits, Dhoni
ran phenomenally well to put
pressure on the South Africa
fielders. But he also needed his
hands to pull off big shots. His
legs could do only so much.
When he was in form, it was up
to Dhoni how far he wanted to
drag the match as he had
tremendous ability to pull off
victories.
It was he who began the trend
of finishing very late, which led
everyone to believe its possible
every single time.
But the time has come to revisit
that gambit. Once, even his
teammate Gautam Gambhir had
questioned that method in
Australia. If you have wickets in
hand and some overs are left,
why drag it instead of going for
the kill.
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Selected Articles from Various Newspapers & Journals
SELECTED ARTICLES FROM VARIOUS NEWSPAPERS & JOURNALS
A last chance for Syria

In early August, the Foreign
Ministers of Iran (Mohammad Javad
Zarif) and Syria (Walid Muallem) and
Russias Deputy Foreign Minister
(Mikhail Bogdanov) met in Tehran to
discuss the Syrian war. The Iranians,
now emboldened by the nuclear
deal, presented a plan for a solution
to the fratricidal Syrian war. Irans plan
has four steps: 1. Forge an immediate
cease-fire; 2. Create a national unity
government; 3. Rewrite Syrias
Constitution with a more expansive
inclusion of minorities; 4. Hold
national elections under international
supervision. These points are not
new. The call for a ceasefire has been
on the agenda since 2011, and the
other steps have been discussed in
the United Nations and in various
regional gatherings over the past four
years. What is novel is that the
proposal comes from Iran, with
Russian and Syrian backing. The idea
of a national unity government implies
that President Bashar al-Assad would
not have to withdraw from politics.
But it does suggest that Damascus has
softened in its view that President
Assad must be allowed to serve out
his new term in office.
Western capitals should look at
this proposal as an olive branch. This
proposal does not roll out a complete
path toward peace, but it does open
the door to negotiations. Other
Western approaches toward Syria
have failed. The most recent attempt
to create a moderate rebel force to
take on both the Islamic State (IS)
and the Assad government
collapsed. The al-Qaeda affiliated
Jabhat al-Nusra easily trounced
Western-trained Division 30, seizing
its arms and killing many of its fighters.
That Western intelligence believed

that Division 30 and its predecessors
could hold their own on the
dangerous battlefields of Syria, shows
how out-of-touch they have become.
The U.S. has now decided not to
spend the $500 million it had
allocated for the creation of a new
rebel army. Western diplomatic
attempts to isolate Damascus have
also not borne fruit. Confounded by
the resilience of IS, even Saudi Arabia
has opened discussion with the
Assad government Syrian
intelligence chief Ali Mamlouk visited
the kingdom in early August to
discuss, among other things, the new
proposals for a ceasefire. Saudi
intelligence cables released by
Wikileaks show the kingdom
obsessed with Iranian power. But the
fear of IS remains greater than their
paranoia over Iran. This has come as a
surprise to the West, which assumed
that Saudi Arabia would be the least
liable to alter its Syria strategy.
The IS remains in control of its
swathe of territory across northern
Iraq and Syria. Neither the Western
air strikes nor the Iraqi military
advances have been able to break
through and clear IS from its major
urban centres. Along the spinal cord
of western Syria, the main advances
are being made by al-Qaeda backed
insurgents, such as Jabhat al-Nusra,
Ahrar al-Sham and Jund al-Aqsa.
Western strategy to contain and
defeat the growth of IS and al-Qaeda
in Syria has utterly failed. Matters are
so poor that Washingtons military and
intelligence community has now
taken to debate which is more of a
threat IS or al-Qaeda.
Meanwhile, the Syrian
governments forces suffer a severe
crisis of manpower. Recruits are not

easy to find. Reliance upon Lebanese
and Iraqi militias as well as Iranian
specialists is not enough. Assad
admitted that his forces are
exhausted. But so are the troops of
the rebels. The IS cannot any longer
easily recruit from the reservoir of the
international jihadis . Access to Syria
is harder than it was. The war is at a
standstill though it does not seem like
that for the fighters who are at the
edge of their territories. For them the
sound of gunfire is now normal, and
yet terrifying. If a deal is on the
horizon, will these fighters who
have given so much for so little be
able to understand the deals being
made beyond the range of their rifles?
On August 3, Irans Foreign
Minister Javad Zarif, confident after
the successful nuclear talks,
published an opinion piece in
leading Arabic language newspapers
(Egypts al-Shorouk , Kuwaits al-Rai,
Lebanons As-Safir and Qatars alSharq ). He called for a regional
discussion to solve regional problems.
Wars in Syria and Yemen, alongside
the spread of extremist groups such
as IS, poses a significant problem to
the region. Mr Zarif went to Damascus
to discuss the overture directly with
President Bashar al-Assad. His visit
came just as Turkey and Iran helped
broker two crucial forty-eight hour
ceasefires in Zabadani and in two
towns in Idlib district. Such events
indicate a willingness by the regional
actors that needs to be supported.
Every once in a while, the various
parties to the war in Syria and their
sponsors seem amenable to regional
talks. The formation of the Syria
Contact Group (Egypt, Iran, Saudi
Arabia and Turkey) in 2012 was one
59


such moment. This is another. The
West and its Gulf Arab allies should
take the dmarche from Iran
seriously. It might be the last chance
for Syria.
Remembering
Hiroshima and Nagasaki
When Japan started its Official
Development Assistance (ODA) in
1950s, India became the first
recipient of its Yen Loan Assistance.
In the subsequent decades, the
Japanese ODA expanded to include
a wide range of areas and projects,
such as the Delhi Metro and the Indian
Institute of Technology in
Hyderabad (IIT-H). Two Japanese
doctors, Dr. Matsuki Miyazaki and
Prof. Mitsugu Nishiura, led the
research and treatment of leprosy in
India at the India Centre of Japan
Leprosy Mission for Asia (JALMA) in
the 1960s and 70s. The institution
was built in Agra in 1963 with
donations from Japanese citizens
and was handed over to the Indian
government in 1970s. The graves of
the two doctors are located on its
premises.
We have also helped each other
in times of need. In 1991, Japan
extended the balance of payment
support to India. When the Great
Earthquake hit Japan in 2011, India
extended a helping hand to Japan
by providing donations and relief
goods and by sending a National
Disaster Response Force (NDRF)
team to disaster-stricken areas in
Japan. As these positive episodes
with India show, Japan has devoted
itself to development and prosperity
as well as stability in the region and
the rest of the world in a consistent
manner since the end of the war. In
his August 14 statement on the 70th
anniversary of the end of World War
II, Prime Minister Shinzo Abe stated
that Japan has the great responsibility
to take the lessons of history deeply
60
into our hearts, and to make all

possible efforts for the peace and
prosperity of Asia and the world. He
also expressed Japans heartfelt
gratitude to all the nations, including
India, and all the people who made
every effort for reconciliation after the
war.
In the decades-old friendly
relationship between Japan and
India, marked progress and
expansion have been made in recent
years. We are now the second and
the third largest economies in Asia.
We share fundamental values such as
democracy, rule of law and respect
for human rights. We are located in
crucial positions in the Indo-Pacific
region, which is of growing strategic
importance. Our relationship has now
been elevated to the Special
Strategic and Global Partnership. As
Prime Minister Abe called it, our
relationship is blessed with the
largest potential for further
development. The ever growing
relationship between Japan and India
is beautifully symbolised by the
magnificent Bodhi tree on the
premises of our Embassy in New
Delhi, planted in 1960 by Their
Imperial Highnesses, the Crown
Prince and Crown Princess of Japan,
now Their Majesties the Emperor and
Empress. The two countries
relationship remains firmly rooted in
a long history of cultural ties, mutual
respect and goodwill and we need
to work together to let it further
flourish and branch out to
incorporate new domains of
partnership.
Going beyond
inflation targeting
In a commendable infusion of
transparency into policy making, the
Government of India has uploaded
on the net a draft of the proposed
Indian Financial Code (IFC). Within
days of its being made available, it
had received critical attention in the

media. However, though the Code
will apply to a wide range of matters
financial, much of the response has
concerned the monetary policy
function. Within this, the focus has
been on the relative power of the
Reserve Bank of India (RBI) and the
government in setting the policy
interest rate. The draft, in effect,
proposes that the government should
have the greater say as, numerically,
the governments nominees are set
to dominate the Monetary Policy
Committee envisaged in it. This issue
is easily resolved in principle. There
can be no question that if the RBI is
to be held accountable for monetary
policy it should have full power to
set the interest rate. An impression
has been given that the proposal is
itself only a manifestation of the
governments attempt to cut the RBI
leadership down to size. Naturally, this
gives rise to some excitement among
the public, but there is a much more
fundamental issue at stake in the draft
IFC, and this has received less than
its due attention. It concerns the goal
of monetary policy, and it is worrying
that on this there is actually no
disagreement between the
government and the RBI! The draft
IFC proposes that the goal of
monetary policy shall be inflation
targeting. Inflation targeting implies
that the Central bank will give priority
to the rise in prices. This had been
the substantive recommendation of
The Expert Committee to Revise and
Strengthen the Monetary Policy
Framework, constituted by the RBI
in 2013.
Going by recent history, there
is reason for some scepticism about
the RBIs ability to control the inflation
rate. From 2008 onwards, inflation had
shifted gear upwards for five years. It
would be difficult to square this with
the suggestion that it reflects the


Banks efforts to maintain growth, for
growth has actually been lower in this
period. While we have a complete
explanation of the phenomenon of
rising inflation and slowing growth,
and it rests on the role of agricultural
output fluctuations, it need not
detain us here. The point of
recounting this history is to suggest
that it is far from clear that the RBI
can fine-tune the inflation rate as is
conveyed in the Draft IFC which
states that the objective of monetary
policy in India should be price
stability, in the context to be
understood as a stable inflation rate.
However, let us set aside our
scepticism and assume that a Central
bank can control the inflation rate.
Would inflation targeting be desirable
now? We can best answer this by
looking at recent experience in the
United States. For a decade from the
mid-1990s, the inflation rate there had
been low and steady, eliciting the
epithet the Great Moderation. But
this phase had masked the brewing
of a financial crisis in the form of an
asset bubble, responsibility for which
American commentators trace to the
Federal Reserve that had, in view of
the low inflation, maintained
unusually low interest rates. A
feeding frenzy had followed with
credit fuelling house price increases.
It is in the nature of inflation targetting
that sectoral-price increases are
ignored. When the bubble finally
burst and house prices collapsed, the
banks that had financed their
purchase found themselves holding
worthless assets. A spectacular
intervention by the Federal Reserve,
termed unconventional monetary
policy, saved the day for the U.S.
economy. This episode demonstrates
two things. That financial crises are
possible even with low inflation and
that the Central bank can make a
difference with respect to output.
Though a U.S.-style crisis is unlikely

in India given so large a presence of
the public sector, it does point to the
need for the Central bank to be
concerned with financial stability.
The policy response in the U.S.
following the financial crisis was also
mediated by the political
consideration that an output collapse
should be averted at all cost.
Collective memory has a role to play
in the political choices nations make.
Thus the Americans are perhaps
haunted by the experience of the
Great
Depression
when
unemployment exceeded 25 per
cent.
This
makes
them
unemployment averse. On the other
hand, the Germans appear to be
inflation averse, and you can hardly
blame them for it. Inflation in the
Weimar Republic had, at its peak in
1923, reached a vertiginous 32,000
per cent per month. There is a lesson
in this for us, that Indias institutional
architecture should reflect its own
peculiarities and goals rather than be
guided by pure theoretical
constructs allegedly based on
universal truth. When the idea of
inflation targeting had gained
prominence in academia, the Federal
Reserve had been lectured for not
focussing on inflation. However, it is
interesting to note that the U.S. has
done far better than Europe in terms
of employment post-crisis. Moreover,
its record as far as inflationary
expectations, and thus inflation, is
concerned is no worse than that of
countries with central banks that
pursue inflation targeting. This is not
surprising, for, as stated on its
website, the Federal Reserve is firmly
committed to fulfilling its statutory
mandate from the Congress of
promoting maximum employment,
stable prices and moderate long-term
interest rates. By contrast, the Draft
IFC declares that The objective of
monetary policy is to achieve price

stability while striking a balance with
the objective of the Central
Government to achieve growth. The
point is that if the RBI is to pursue an
inflation target set by the government
it must accept the growth that is got.
So, what should the RBI be
doing? Well, it should focus on output
at least as much as it does on inflation,
but this sits uncomfortably with the
mandate of inflation targeting that is
proposed in the draft IFC. Then it
should continue its historic role of
supervising the financial system, in
which task it has done the Indian
citizen proud by discharging itself
without fear or favour. But there is a
task on which it may have slipped a
bit of late. Amid the highfalutin talk
of anchoring expectations,
forward guidance and the natural
level of output, it seems to have been
forgotten that the RBI has the
monopoly on the note issue, one
granted with a view to facilitating
economic exchange. Today, extreme
hardship is caused by a shortage of
small denomination currency notes in
the bazaar. This raises transaction
costs as agents struggle to make
payment. And when the notes of the
desired denomination are finally to
be had they are so worn and soiled
that it takes the joy out of truck and
barter. Money may be a store of value,
but it is also a medium of exchange.
Surely the thought of sparkling rupee
notes should be enough to bring
together a proudly independent RBI
and a government sworn to swachtha
.
Admirable
show of restraint
In August 2013, exactly two
years ago, 40 experts, comprising the
most senior former diplomats, police
officials and retired military officers,
wrote a letter to the then Prime
Minister Manmohan Singh on
61


Pakistan. The policy of appeasement
has failed, they said at a press
conference. A new bipartisan policy
is needed that will impose costs on
Pakistan for terrorism, they added.
Their letter urged the Prime Minister
to cancel the planned talks with
Pakistan Prime Minister Nawaz Sharif
on the sidelines of the U.N. General
Assembly in September 2013, and to
call off dialogue with Pakistan
altogether. So, it is ironic that one of
the chief signatories to the letter is
now the man who will lead the next
round of talks with Pakistan, National
Security Advisor (NSA) Ajit Doval. In
his memoir Kashmir: The Vajpayee
Years , former advisor to the Prime
Minister on J&K, A.S. Dulat, recounts
how in October 2003, Mr. Vajpayee
announced that the Centre would
talk to the Hurriyat leadership. As the
former Intelligence Bureau Chief
once posted in Pakistan and later
head of Vivekananda Foundation, the
right-wing think-tank, Mr. Dovals
tough views are well known. That
both Mr. Modi and Mr. Doval have
moved from no talks until terror
stops to talk about terror is proof
of the inevitability of engagement in
any Indian governments Pakistan
policy.
In his new role, Mr. Doval has
been protecting the talks from
multiple challenges. When Pakistan
began mortar shelling just days after
the Ufa summit, it was the NSA who
picked up the phone and called
Pakistan High Commissioner Abdul
Basit three times to try and lower
tensions. After the Gurdaspur attack,
it was the NSA and the PMO that
ensured that the narrative pointed to
terrorists from Pakistan as opposed
to terrorists sent by Pakistan. Again,
after Udhampur, the government sent
the same message, with a senior
official telling the media: The
Pakistani governments endorsement
62
is not visible in the Gurdaspur attack.

With every provocation that has
followed, from the deadly shelling at
the LoC that killed several civilians last
week to even the Pakistani High
Commissioners surprisingly sharp
speech
on
Kashmir
on
Independence Day the
government has responded with
restraint.
There is no question, however,
that regardless of all that is on the
agenda, it is the LoC that needs
attention immediately. Casualties on
both sides of the LoC have been rising
at an alarming rate, and the ceasefire
is practically deceased. A study by
the U.S.-based Stimson Center finds
that that the Kashmir divide has
become far more volatile since late
2012. According to the study, the
rate of ceasefire violations has more
than doubled in 2014-15 over
preceding years. The two NSAs
would do well to hasten the Ufa
agreement on holding a meet of the
Director Generals of Military
Operations, and perhaps include the
MEA and even intelligence officials.
On the main issue of terror, there is
no question that Mr. Doval will have a
stockpile of evidence for Mr. Aziz.
However, India must focus on the
ongoing 26/11 trial in Pakistan, for two
reasons. First, because the trial is
under way and represents the hope,
however slim, that some of the
perpetrators may be brought to
justice. Second because it represents
a unique case where Pakistani
investigators have independently
confirmed all that India has said about
terror groups inside that country.
None of these issues can be
discussed, however, unless there is a
steady channel for talks between
Indian and Pakistani interlocutors. A
key takeaway from the NSA-level
meeting could be an agreement to
set up such a channel, whether a
back-channel of the kind Prime

Ministers Vajpayee and Manmohan
Singh set up with Mr. Musharraf, or
regular meetings of the NSAs,
Foreign and Home Secretaries. Prime
Ministerial meetings like the one at
Ufa, while helpful for the
atmospherics, cannot substitute for
legwork and hard negotiations. Nor
can they substitute for Indias own
national security considerations, as
those opposed to talks often warn.
The government must continue to
carry out its responsibilities, whether
at the border or anti-terror operations.
Only then can India and Pakistan start
work on the last part of the Ufa agenda
to construct a basket of
agreements and announcements that
would make Mr. Modis 2016 visit
worthwhile. Many of these, such as a
new visa regime, Most-Favoured
Nation (MFN)-status from Pakistan,
and the Sir Creek settlement, have
already been negotiated and require
only political will to be implemented.
Cynics of Track-1 diplomatic
efforts between the two countries
could take heart from the resilience
of the Track-2 process. The
Chaophraya Dialogue that met this
month for the 16th Round (of which
this writer was a part), for example,
continues to draw in diplomats,
generals, and other officials who till
recently were inside Indian and
Pakistani establishments. These are
men and women with decades of
public experience and meet
regularly to discuss the issues
confronting India-Pakistan relations.
Despite differences, they continue to
meet and build a conversation that is
eventually conveyed back to their
respective
governments.
Interestingly, they now include some
of those who wrote that letter in
August 2013. Ahead of the NSA-level
talks, one of them described the
predicament well. There is so much


ice in India-Pakistan relations, every
high-level meeting is seen as an icebreaker, he said. Its time to start
chipping away at the ice and shaping
building blocks for a lasting solution
instead.
Much-needed reform
The move by the United States
to oppose any large-scale reforms in
the United Nations Security Council
does not match the promise President
Barack Obama made to India, that it
would back New Delhis candidacy
for a permanent seat at the global
decision-making body. Though U.S.
Ambassador to India Richard Verma
later said his country remained
committed to its promise,
Washingtons policy towards UNSC
reforms still lacks clarity. If the U.S. is
keen on reforming the Council, why
did it, in the first place, team up with
Russia and China to oppose
negotiations on reforms? And the
assertion by these countries that the
prerogatives, including the veto
power, of the existing permanent
members should remain intact even
if there are reforms, is tantamount to
pre-empting any major reform. The
UNSC, created in the post-War
context, doesnt actually reflect the
changes that have occurred in the
international system after the end of
the Cold War. In a quarter century,
the global economic architecture has
undergone massive changes. The
developing nations, including India,
now play a bigger role in international
affairs. But within the UN, the five
permanent veto-wielding members
still effectively take all the crucial
decisions. The Indian position is that
this democracy deficit in the UN
prevents effective multilateralism in
the global arena. The way the UNSC
handled or failed to handle
some of the recent crises would
underscore the soundness of the
Indian position. Take the examples
of Libya and Syria. While the western

nations are accused of distorting the
UNSC mandate in Libya, the Security
Council failed to reach a consensus
on how the Syrian crisis may be
resolved. This clearly points to a
worsening institutional crisis within
the UNSC.
Meaningful reform of the Council
to make it more representative and
democratic would strengthen the UN
to address the challenges of a
changing world more effectively.
Indias demand for a permanent seat
has to be looked into, duly
considering the merits of the case. It
is the worlds largest democracy and
Asias third largest economy. The
Indian Army is the largest contributor
to the UN peacekeeping mission
since the inception of the mission.
More important, Indias foreign policy
has historically been aligned with
world peace, and not with conflicts.
As a permanent member of the UNSC
it will be able to play a larger role
concerning pressing international
issues. But the latest development
shows the path will not be smooth.
New Delhi should continue its efforts
to build a democratically evolved
global consensus on restructuring the
Security Council, at the same time
pursuing bilateral diplomacy with the
big powers. The permanent
members ought to realise that there
are much more serious issues at stake
globally than their own so-called
prerogatives, and they should be
flexible in addressing those issues.
The sprouting of
the Look West policy
The foundation for Mr. Modis
successful outreach to West Asia was
in fact laid by his predecessor when
India invited the King of Saudi Arabia
to be the chief guest at the Republic
Day Parade, in 2006. This was
followed by Prime Minister
Manmohan Singhs visit to Riyadh and
the
India-Saudi
defence
cooperation agreement signed in
2014. Growing India-Saudi
cooperation in the field of terrorism
may have also contributed to Indias
relatively mild response to Saudi
aggression in Yemen, but it did set
the stage for wider engagement at a
strategic level with the other states
of the Gulf Cooperation Council
(GCC). Mr. Modis visit to the UAE was
preceded by significant visits to other
GCC states by External Affairs Minister
Sushma Swaraj. That Ms. Swaraj made
Bahrain her first stop in the region,
last September, was welcomed by
Bahrains India-friendly leadership
and showed growing sophistication
in Indian thinking about the region.
With a minority Sunni leadership and
a majority Shia population, Bahrain has
tried hard not to get drawn into the
wider sectarian conflicts in West Asia.
Moreover, with half of the island
kingdoms working population hailing
from India, mostly Kerala, and given
the very cordial people-to-people
relations between Bahrainis and
Indians, the visit showed that India
had a special relationship to the
region that few other major powers
can ever lay claim to. Finally, over the
last year, the Modi government has
put forward a nuanced view of the
region openly declaring friendship
with Israel, seeking better relations
with Iran and, at the same time,
cementing a thriving relationship with
the GCC states.
While all this fits into a pattern,
one should not underestimate the
transformational significance of the
UAE visit and the Dubai declaration.
The Joint Statement between the
United Arab Emirates and India is an
important articulation of a significant
shift in the Arab worlds view of India.
The statement is truly comprehensive
and wide-ranging. It talks of historic
ties of commerce, culture and
63


kinship, drawing attention to the
unique history of Arab interaction
with Indian communities of the west
coast, from Gujarat to Kerala. The joint
statement, outlining closer
government-to-government (G2G)
relations, draws attention to the
vibrant business-to-business (B2B)
and people-to-people (P2P)
relationships and commits the UAE
to a sharp increase in its investment
in India. What is striking to an observer
of India-West Asia relations is the
assertion of not just a shared past
but of shared challenges in the
present and a shared future. It then
proceeds to state: A shared
endeavour to address these
challenges, based on common ideals
and convergent interests, is vital for
the future of the two countries and
their region. The statement
expresses the hope that: Proximity,
history, cultural affinity, strong links
between people, natural synergies,
shared aspirations and common
challenges create boundless
potential for a natural strategic
partnership between India and
UAE.
It is in the nature of things that
any visit of an Indian Prime Minister
to a Muslim nation has a domestic
resonance. Every Prime Minister has
been aware of this. Often, even the
timing of visits to Muslim nations is
defined by the domestic political
calendar. So it would be part of a
pattern if Mr. Modi had, among other
things, the elections in Bihar and even
Kerala on mind when he visited the
Sheikh Zayed Grand Mosque in Abu
Dhabi and spoke eloquently of the
Arab worlds rich cultural traditions
and friendship towards India. His
address in Dubai was aimed at not
just an Indian audience but a wider
Southern Asian audience and, of
course, the global audience of
diplomats and strategic policy
64
analysts. The Prime Minister made it

clear that he did have the audience
in Pakistan in mind when he spoke
about working together with the UAE
in fighting terrorism. Mr. Modi and his
political managers should be satisfied
that the Prime Ministers visits to the
capitals of neighbouring Muslim
nations Bangladesh and the UAE
and to the Central Asian republics
went well. That all of this may have
been planned with the domestic
political audience in mind is to be
expected, given the history of Indias
relations with the Islamic world. It
remains to be seen how much and
how lasting an impact all of this would
have on domestic politics.
What is significant about the
new strategic partnership outlined by
the UAE and India is the fact that it is
defined not just by Indias Look
West policy, based on its energy and
financial needs, but that it is equally
defined by the GCCs Look East
policy, soliciting greater Indian
engagement with West Asia. Several
factors have contributed to this
fundamental shift in West Asian
strategic thinking. First, the structural
change in the global energy market
with West Asian oil and gas
increasingly heading to South and
East Asian markets rather than to the
Trans-Atlantic markets. Second,
partly as a consequence of this
change in flows and partly owing to
the fiscal stress faced by the transAtlantic economies, West Asia is
looking to India and other Asian
powers to step in and offer security
guarantees to the region. Many GCC
states have welcomed defence
cooperation agreements with India.
Third, in the wake of the Arab Spring
and the mess in Egypt and Iraq, the
Gulf states find India and China to be
more reliable interlocutors than many
western states. Fourth, under
pressure from radical and extremist
political forces within West Asia,

most states in the region have come
to value the Indian principle of
seeking and securing regional
stability as an over-riding principle of
regional security.
In the specific case of IndiaUAE relations, it appears the Emirati
have come to appreciate Indias view
that state-sponsored or supported
cross-border terrorism poses a grave
threat to regional security and so must
be curtailed and stopped. Mr. Modis
bold public statements on terrorism
could not have been made in Dubai
if they did not have the implicit
endorsement of his hosts. In short, it
would seem, the India-UAE strategic
engagement is the product of a mutual
look-at-each-other policy. If Chinas
rise offered the backdrop for SouthEast Asias look at India policy, the
Wests failures and weaknesses, and
a weakening of the strategic trust
between the West and West Asia may
have contributed to the GCCs look
at India policy.
Stepping away from religious
extremism and accepting pluralism
and multi-culturalism as the defining
principles of a modern state is the only
way forward for each of the countries
of Asia from West to East. Indias
appeal to Asia as a whole is built on
these foundational principles of its
Constitution.
Yuan makes its
first market move
China sprang a surprise on
world markets last week. The Chinese
currency renminbi (less formally
known as yuan) lost its value against
the U.S. dollar by nearly 3 per cent
between August 11 and 13. This was
its sharpest weekly fall in over two
decades. With the devaluation,
Chinas manufactured products are
going to get cheaper. In other words,
with one U.S. dollar whose value
relative to renminbi increased from


6.2 to 6.4 following devaluation
you can now purchase more Chinese
goods than before. The devaluation
announcement came within days of
Chinas export figures for July
recording a negative growth, owing
mainly to the slow pickup in demand
from developed-country markets.
Naturally enough, one interpretation
was that the devaluation was an
attempt by the Chinese authorities to
boost export demand for its
manufactured goods. Some
commentators argued that the
Chinese action might trigger a new
global currency war where other
countries too devalue their
currencies to compete with China
as had happened during the Great
Depression of the 1930s.
The Peoples Bank of China
(PBOC), Chinas central bank, soon
stepped in to clarify. It said that the
devaluation marked the transition to
a flexible, more market-based system
of determining Chinas exchange
rates. In contrast, the system that
existed until now was one in which
the value of the Chinese currency
(especially in relation to the U.S.
dollar) had largely been fixed by the
government. If PBOCs claims are
true, it is likely to be a component of
a larger, national strategy to
internationalise the renminbi. China
wants to see the renminbi emerge as
a currency for international trade and
finance, like the dollar. It also plans
to build Shanghai into a global
financial centre, rivalling New York.
As a preliminary step, China is trying
to get the renminbi included in the
basket of currencies in International
Monetary Fund (IMF)s Special
Drawing Rights (SDRs).
It is to be noted that China has
had strict controls on foreign capital
movements across its borders, at least
until recently. Such controls have
been effective in filtering out volatile,
short-term capital flows, which are

often harmful to the economy, while
at the same time encouraging Foreign
Direct Investment (FDI). In contrast,
India has, over the years, liberalised
its capital account substantially,
attracting relatively large volumes of
short-term capital flows. Chinas
remarkably fast export-led economic
growth during the 2000s occurred in
an enabling environment provided
by a stable exchange rate and tight
capital controls. In fact, the stability
in Chinas currency rate has been a
factor that helped other East Asian
economies to achieve steady and fast
growth.
Chinas strategy to break free of
its mutually dependent relationship
with the U.S. has multiple prongs.
One, China aims to derive its future
growth more from domestic markets
and services rather than from exports
of cheap manufactured goods. Two,
Beijing is trying to strategically deploy
its large foreign exchange assets into
initiatives such as Asian Infrastructure
Investment Bank (AIIB) and the
ambitious One Belt One Road
project. It would also like to replace
the dollar-zone in East Asia with a
viable renminbi zone. By opening
the doors to global finance as part of
its plan to internationalise its
currency, China, however, may be
forsaking the very stability that has
been the hallmark of its economic
ascent. The boom in its stock markets
and the subsequent crash last month
is clearly a sign of things to come.
Many Chinese firms are highly
indebted. According to one
estimate, Chinas debt to GDP (Gross
Domestic Product) ratio is as high as
282 per cent. China has also
witnessed substantially large
outflows of foreign capital this year.
Chinas economic and
investment growth has slowed down
in recent months. The country has
poured billions of dollars into

investments in infrastructure and
other basic industries, especially after
the 2008 global economic downturn.
But this has not been matched by
rising demand for these industries,
either domestic or foreign, leading to
the creation of excess capacities. For
instance, the rising numbers of unsold
flats have resulted in a slowdown in
construction activities and a
reduction in the demand for its steel
and cement industries. Wholesale
prices in the country have been on a
downward spiral. The slowdown in
China is threatening economic
prospects in many other parts of the
world too, particularly in countries
that are suppliers of commodities to
China.
India, meanwhile, has a large
trade deficit with China, accounting
for as much as a quarter of Indias
overall trade deficit. With the
devaluation of the yuan, imports from
China are going to climb up,
worsening Indias deficit. The
competitive disadvantages of Indian
manufacturing sector vis--vis the
Chinese one arise mainly from Indias
poor infrastructure, which translates
into higher costs for Indian firms in
areas like power and transport. These
disadvantages can be overcome only
with massive investments, especially
public investment, of the kind that
China has made for over two
decades. The continuing stagnation
in demand for Chinese goods,
especially from developed countries,
underlines the importance of
domestic markets for economic
growth in India as well. Therefore, like
China, India too needs policies that
enable better employment creation,
greater redistribution of incomes, and
rejuvenation in domestic demand.
Thailands turbulence
Thailand is no stranger to
political violence. The country,
65


which has seen two military coups in
less than 10 years, has been riven by
street battles between protesters and
security personnel in the past few
years. Besides, in the so-called Deep
South, the country is fighting armed
Muslim separatists since 2004; this has
claimed some 6,500 lives. Still,
Mondays blast outside a Hindu
temple on a busy Bangkok street,
which killed over 20 people, was
unprecedented in terms of scale. This
was the most devastating explosion
ever in Bangkok. The location and the
timing showed that the perpetrators
wanted to wreak maximum damage.
The Erawan shrine is a popular tourist
destination, especially among
Buddhists from Thailand and other
East Asian nations, and the bomb
went off during the evening rush hour.
It is still not clear who did it. The
investigators say a network is
behind it, but stop short of pointing
fingers at any particular group. Given
Thailands recent turbulence, it could
be anyone from the Muslim
separatists to the political opponents
of the military junta.
But whoever did it, the attack
was aimed at weakening the
countrys already fractured polity and
stultified economy. Ever since the
army took power in 2014 after
toppling the civilian caretaker
government, Thailand has suffered
several violent incidents, including a
grenade attack on a court house in
Bangkok. The militarys claim that it
captured power to bring stability to
the country was far from the truth as
the coup itself had sharpened the
political divisions. The army is also
accused of deliberately targeting
supporters of the self-exiled former
Prime Minister, Thaksin Shinawatra.
The Thai army is notorious for its
highhandedness. Five years ago, an
army crackdown on a public protest
in Bangkok, close to the same Erawan
66
shrine, left at least 80 people dead.

Such use of violence has triggered
violent responses from factions
opposed to the army, while repeated
coups and coup attempts have
weakened the countrys democracy
and governance structures. The
tourism-dependent economy has
also suffered from the recent political
instability and protests. The latest
blast will weaken the tourism industry
further. The Thai authorities should
realise that the country will be able
to address the multiple challenges it
faces only by sorting out the internal
fissures first. And the best way to do
it is to return a legitimate government
to power. The generals have pledged
to bring back democracy, but no one
knows when elections would be held
and whether they would be free and
fair. There are also worries that the
blast would be used as an excuse by
the military to extend its hold over
power and continue suppressing
democracy. Such a move would only
accelerate Thailands downhill slide.
Plan for Paris: looking
beyond emission cuts
In the lead up to the Paris
Climate Summit Conference of
Parties (CoP) 21 an important
buzzword in international climate
circles is INDC (Intended Nationally
Determined Contributions) that each
country needs to commit itself to as
its climate policy. Much of this is
tacitly expected to mean a reduction
in greenhouse gas emissions rather
than adaptation, which would be
about transforming or changing
systems and institutions to enable us
live in a warmer world. While we
eventually have to reduce emissions
to zero in order not to completely
destroy the earths ecosystems, we
also need to learn how to live on a
planet that is on average at least about
2-3 degrees Celsius warmer than in
pre-industrial times.
Countries in the tropics are

expected to experience some of the
most harmful effects of climate
change with a sea level rise, more
intense storms, variable precipitation,
droughts, and floods. Developing
countries, especially those with
sizable populations, like India,
Indonesia, Brazil and Nigeria, face a
dual challenge they need to
provide energy services and, at the
same time, raise raisin the standard of
living of the poor people while
adapting to global warming. Given
the large population living in poverty,
they have more people vulnerable to
these effects. Adapting to climate
change will mean that policymakers
use sensible approaches to
protecting land, soil, freshwater
systems, coastal regions, and
livelihoods. We suggest that all
developing countries (what the
international community terms nonAnnexure-1) should concentrate on
sustainable development targets,
rather than on INDCs. This means that
they would have to, for example,
focus on reducing air pollution,
promote cleaner cooking fuels, plan
cities to be more inclusive, allocate
greater space for non-motorised
transportation, and modify their
agricultural practices, so that their
goals of overall productivity,
biodiversity, crop yields, health of
farm workers and water use are
balanced.
We argue that such a choice by
poor countries one that lets them
develop a pathway away from their
current growth-oriented trajectories
toward a sustainable development
course would by itself reduce
greenhouse gases. More importantly,
it would also improve the quality of
life of millions of people who may be
left behind if governments only
applied policies to lower emissions.
The Center for Study of Science


Technology and Policy (CSTEP) has
found this to be true in the case of
India in a study expected to be
released by the end of the month.
With regard to rich countries,
however, the world should insist on
far more ambitious contributions.
They need to reduce their
greenhouse gas emissions by at least
50 per cent by 2030 over the 2010
levels, as agreed by most observers.
This is quite close to targets set by
the European Council for the EU, but
well beyond the U.S. intention of a
26-28 per cent reduction.
In contrast, Ethiopia, where the
World Bank estimates that threequarters of people have no electricity
connections, has promised in its
INDC to reduce its greenhouse gases
to a few per cent points below its
2010 levels by 2030. Most of its efforts
are to involve planting more forests
and having better soil management
practices. While some of these
changes will no doubt be good for
its farmers, forest dwellers, land and
soil, we must consider that some of
the most cost-effective approaches
to reduce greenhouse emissions
could be harmful to water, soil, land
and livelihoods. The question then
becomes
whether
the
implementation of a legally-binding
greenhouse gas target is the best way
for Ethiopia to meet its enormous
challenges related to energy access,
poverty and sustainability.
Finally, with regard to the level
of ambition of these arrangements the
strategy we describe could be
consistent with a global carbon
budget that is adequate for limiting
temperature rise to within safe limits.
Beyond 2030, once rich countries
have developed the technologies
and institutions to reduce their own
emissions sharply and developing
nations have met sustainable
development goals, the entire
international community could

concentrate more fully on mitigation
and adaptation to climate change.
From farmer to businessman
In the ongoing debates on the
new land acquisition bill, the
potential of agribusiness to address
agrarian distress has not been
explored. There are several domestic
agriculture companies, both listed
and private, that are doing extremely
well amidst an increasing number of
farmers suicides. The classic case is
of suicides by cotton farmers. Of late,
share prices of textile companies are
performing extremely well and
attracting huge private investment,
but cotton farmers continue to be in
distress. Even in staples such as
pulses, rice and wheat, food
companies do well but the farmers
are in trouble. It is significant that all
these foods are processed, but not
by the farmer. The money is clearly in
the market, and not merely in
production.
Recognising this, several farmerowned producer companies and
new types of self-reliant
cooperatives, broadly called Farmer
Producer Organisations (FPOs), have
recently been set up. They aggregate,
sometimes process, and then market
agricultural produce. The best
example of such an FPO is Amul Dairy.
Along with other National Dairy
Development Board (NDDB)promoted dairy cooperatives, they
have brought millions out of poverty.
A look at the listed successful
companies in food processing, if we
exclude multi-national companies
that focus entirely on semi-ready or
ready-to-eat foods, shows the
following: for listed rice and pulse
mills, whole wheat, plain flour and
semolina producers, and edible oil
companies, net profit margins are low
at less than 5 per cent but interest
costs are often twice the profits.
Debt-equity ratios are hovering at

around 200 per cent. Taxes are over
50 per cent of net profits. Most
important, such companies, unless
backed by deep pockets, take years
to establish, based initially on
promoter capital, and later, capital
from the share market. Rice mills and
processing units listed on the stock
exchanges usually take 10 years or
more to become successful with high
market valuations, profits and
dividends. Thus, we largely see
private unlisted companies in this
sector, outside the purview of public
accountability.
What does this mean for farmers
and the several hundred FPOs that
have already been set up? First, the
low margins do not really matter. If
we take the profits not on the total
value-added sales, but on the value
of raw produce, the margins are much
higher. For the farmer this is a
significant increase in income, and is
sometimes the difference between
poverty and prosperity.
However, there are several
barriers that have to be overcome.
First and foremost is the capital
constraint. FPOs are initially not able
to raise share capital from their
member-farmers. They also cannot go
to the share market to raise capital
unlike the privately-owned food
processing companies. We protect
the FPOs from hostile takeover by not
allowing shares to be traded.
However, this effectively blocks them
from raising capital from the share
market, which even wealthy private
promoters need. So FPOs in India are
all taking the only route available
aggregating raw produce and selling
it to the private sector, which then
takes away the lions share of the
profits.
The next barrier is working
capital. FPOs have to buy in cash as
their member-farmers need the
67


money desperately at harvest time to
repay crop loans and run their
households. They initially cannot
demand cash from the buyers who
often take a few months to pay. So
FPOs need higher working capital
than the private sector. This is where
dairy cooperatives score since milk is
produced and consumed daily and
farmers can sometimes wait for a few
days to get paid. Given current
banking norms, non-dairy FPOs are
simply unable to raise loans, as they
lack an equity base and cannot
provide collateral. The third barrier is
managerial capability. It is
unreasonable to expect farmers to run
the everyday business operations in
an FPO, just as it is unreasonable to
expect shareholders to run a listed
company. As in the private sector,
FPOs can hire well-paid professionals
if they reach a certain scale as Amul
and several other, large, successful
cooperative dairies have done.
Bridge financing is required. An
interesting idea followed in other
countries allows cooperativecorporation joint ventures and
different classes of share capital.
Allowing trading in closed circles,
clear exit clauses and allowing buy
back by FPOs of outside investor
shares, may help raise initial capital.
Unfortunately, joint ventures
permitted in the Indian Producer
Company Act allow very little outside
share capital. Hence, innovative ways
of providing working capital to FPOs
are urgently needed. The highly
successful collateral-free, self help
group-bank linkage programme
needs to be adapted for FPOs, based
on a case-by-case business analysis
and cash flows, rather than on
collateral.
The RBI is willing to categorise
lending to FPOs as a priority sector,
but banks are not willing to come
forward without collateral. An
68
alternative is a special fund outside

the banking system. Finally, the huge
interest burden on FPOs needs to be
reduced. Unlike in microfinance, if
interest costs are halved, profits are
doubled in agribusiness. Finally, there
are taxes and regulations. While farm
gate sales are tax-exempt for the
farmer, FPOs with processing units
have to pay VAT on the entire sales
proceeds, effectively on the
purchase of raw material as well.
Hopefully, the proposed GST Bill will
iron out this anomaly.
In spite of such odds, we still
see the odd successful FPO running
well for decades. The real question is
not why there are so few; it is how
even these few succeeded. The
combined turnover of cooperatives
in the U.S. is over $500 billion, and
for Europes top 10 cooperatives, it
is $110 billion. Our largest and only
one has a turnover of $3 billion. Those
countries have less than 10 per cent
of their population engaged in
farming while we have over 50 per
cent. Surely we can do better.
The Iran momentum
Indias decision to remove Iran
from the list of countries in the
restricted visa category is another
indication of New Delhis resolve to
reinvigorate its engagement with the
Gulf country. The move will primarily
liberalise the visa approval process
for Iranian citizens, paving the way
for enhanced people-to-people
cooperation. But more important, it
is part of a series of steps India has
taken to deepen partnership with Iran
since an interim agreement was
reached between Tehran and six
world powers (P5+1) in November
2013 over its nuclear programme. Iran
used to be Indias second largest
supplier of oil. But India, under
pressure from western nations, voted
against Iran at the International
Atomic Energy Agency over its
nuclear
programme
and
subsequently cut energy imports.
The interim agreement offered India
a window of opportunity to revisit its
Tehran policy. In February, National
Security Adviser Ajit Doval went to
Tehran to discuss bilateral
cooperation. In April, the Iranian
Ambassador to New Delhi,
Gholamreza Ansari, said Prime
Minister Narendra Modi had
accepted an invitation to visit Tehran.
This new direction in Indias
approach to Iran got better clarity
when the final nuclear agreement was
reached between Tehran and P5+1
in July: it will remove not just
sanctions against Iran but also the tag
of untouchability given to it by the
West.
Ties with Iran are vital for Indias
economic and strategic interests.
India has to seize the momentum
provided by the nuclear deal to step
up energy trade with Iran. Imports
from Iran are relatively cheap because
of the geographical proximity and the
extended credit period it offers. Iran
has one of the largest gas reserves,
and these are expected to be
opened up soon for global
investments. Oil and Natural Gas
Corporation already has interests in
the Farzad-B gas field, and Iranian
gas will help Indias fuel-starved
power stations. More important, New
Delhi and Iran share an interest in
stabilising Afghanistan. Both realise
that a return of the Taliban to Kabul
would affect their key interests. Iran
and India have signed an agreement
to develop the Chabahar port. The
Iranian port, which lies outside the
Gulf region and is easily accessed
from Indias western coast, will give
New Delhi an alternative sea-land
access route into Afghanistan,
bypassing Pakistan and providing a
gateway to the resource-rich Central
Asian region. But, for the success of


these projects India needs to have a
consistent policy towards Iran that is
defined by mutual interest and not
by global pressures. The period of
tepid engagement with Iran has
delayed the Chabahar port project
and affected Indias energy security.
Now New Delhi has to make up for
lost time by accelerating bilateral
diplomacy.
All is not smooth
on the Silk Road
A new deepwater port that is
planned in Myanmar could provide a
big boost to the China-backed
Maritime Silk Road (MSR) initiative.
Yet, the problems being encountered
in setting up the port at Kyaukphyu
also show that overcoming soft
impediments posed by a downturn
in China-Myanmar diplomatic ties,
issues of human displacement, and
environmental protection are equally
important to reap the full benefits of
this mega project. The Hindu has
learnt that ambitious plans are afoot
to develop the Kyaukphyu, which,
once set up, will become Myanmars
sole deepwater port. The port, at
Ramree Island in the Bay of Bengal,
will become operational when the
first deep sea berth is set up in 2020.
Five other berths will be added in
the following decade.
The second phase of the
project will commence in 2030 and
four additional berths will be added
in the remaining six years. The
Yangon port will become saturated
by 2020 and therefore establishment
of the Kyaukphyu port has become
urgent, said Kyaw Hlaing, president
and research director of Myanmar
Survey Research, in a conversation
with The Hindu . Mr. Hlaing pointed
out that once the port clocks a
handling capacity of 7 million twentyfoot equivalent (TEU) containers, it
will play very significant role in
Maritime Silk Road and it will be a
game changer for the region,

especially for Southwest Provinces of
China. Inspired by the successes of
Shanghai and Guangzhou, the
Chinese have emerged as the
architects of MSR, which will cover
coastal zones that spread from parts
of the Pacific and Indian Ocean rims
to stretches along the Mediterranean
coast. The project has the potential
to generate millions of jobs through
development of ports, marine
industry, industrial parks, smart cities,
as well as tourism and entertainment
centres along a vast Eurasian maritime
space.
The location of the Kyaukphyu
port in the Bay of Bengal is of immense
strategic significance, as it can
service trade not just with Chinas
Yunnan province in itself a gateway
to Vietnam and Laos besides Myanmar
but also parts of India. In fact, the
natural harbour of Kyaukphyu at one
time aided the rice trade between
Kolkata and Myanmar. The port will
indeed help China avoid the Malacca
trap by channelling trade through
networks that would bypass the U.S.
dominated Malacca straits the
narrow passage between Malaysia
and Sumatra that links the Indian and
the Pacific Oceans. For China,
avoiding the Malacca straits has
become particularly urgent, as the
U.S. has strengthened its military
presence in the Pacific under its Asia
Pivot doctrine.
As Myanmar opens out to the
rest of the world, including the West,
the once-thriving ties between
Myanmar and China seem to have
taken a hit, obstructing big
infrastructure projects. It is now
obvious that the Myanmar
government has, for the moment,
scuttled a proposed rail project that
would have linked Kyaukphyu port
with border town of Muse, prior to its
eventual extension to Kunming. The
MoU for the rail project that was
signed in 2011 expired last year. But

with the development of the port and
the SEZ, connectivity would be
required. So, in the future, we may
also consider the construction of the
rail, observes Mr. Hlaing.
The Myanmar governments
earlier decision in 2011 to suspend
work on the 6,000 megawatt Chinafunded Myitsone hydropower dam
had already signalled the growing
dissonance in Sino-Myanmar ties.
Nevertheless, some green shoots
have emerged, suggesting that
diplomatic relationship between the
two countries maybe on the mend.
Last month Myanmar authorities, in a
goodwill gesture, unexpectedly
released 155 Chinese nationals who
had been earlier detained for illegal
logging. Party-to party-relations
between the Communist Party of
China (CPC) and Myanmars
influential National League for
Democracy (NLD) party have been
activated. They were in fact on the
top of the agenda, when the NLD
leader and Nobel icon Aung San Suu
Kyi visited Beijing in June.
Nevertheless, the Kyaukphyu project
may have to overcome environmental
and human displacement concerns.
Complaints abound about low
compensation paid for land acquired
for the SEZ. There are also fears that
without vocational training, outsiders
would benefit more from the jobs that
the project would create. These
criticisms once again underscore the
point that the compelling economic
logic of MSR-linked projects,
including Kyaukphyu, can prevail
only when an integrated approach,
respectful of local conditions and
premised on a lawful grassroots-level
dialogue, is pursued.
Banks for the unbanked
For the first time in Indias
banking sector, the Reserve Bank of
India is giving out differentiated
69


banking licences. The in-principle goahead given on Wednesday to 11
payments banks is, by the RBIs own
admission, an experiment the latest
in a long series of attempts to take
banks to the unbanked. The push
towards financial inclusion started
with the nationalisation of 14
commercial banks in July 1969
through the Banking Companies
(Acquisition and Transfer of
Undertakings) Ordinance, 1969.
Then a second round came in 1980,
involving six more commercial banks.
With a view to economically
mainstreaming rural areas, the Indira
Gandhi government established
regional rural banks by means of an
ordinance in 1975. But even 45 years
later, all these attempts have had little
success in expanding banking
coverage to the desired extent and
scale: only 7 per cent of Indias
villages have a branch of a rural or
commercial bank. The policymakers
seem now to have finally understood
that banking inclusion cannot be just
one among many businesses of a
bank: it has to be the core business.
The licensing condition that puts a
Rs. 1-lakh cap on deposits that
payments banks can receive from
customers defines the market they
will target primarily the unbanked
population. The RBI expects
payments banks to target migrant
labourers and the self-employed,
besides low-income households,
offering low-cost savings accounts
and remittance services so that those
who now transact only in cash can
take their first step into the formal
banking system.
Going by the international
experience, this innovation of
basically transforming a citizens
mobile phone into a stripped-down
bank branch has a greater chance of
success. The initiative takes
Vodafones M-Pesa closer to the
70
version that is working successfully

in Kenya, where payments on this
product constituted about 30 per
cent of the countrys GDP in 2014.
Similar products in India so far were
essentially mobile applications
dependent on tie-ups with banks to
make cash withdrawals and interest
payments. The licence frees these
companies to provide such services
on their own. The greater operational
flexibility will enable them to draw in
more customers. Their operations
could now become more costeffective as the licence-holders will
be banks in their own right, albeit
without the provision to extend loans
to individuals. If they indeed succeed
in becoming the target markets
chosen mode of financial
transactions, this technological
solution could also turn out to be a
major step in achieving a truly
cashless economy. So, while this is a
bold move, and underscores that the
RBI is anything but conservative, it is
ironical too that the cycle of
experiments that started with the
1969 round of nationalisation has now
come full circle. The responsibility of
financial inclusion is now almost
entirely entrusted to the private
sector.
The flawed reasoning
in the Santhara ban
The Rajasthan High Court, in a
judgment on the August 10, 2015,
declared the Jain practice of
Santhara, which involves a voluntary
fast-unto-death, an offence
punishable under the Indian Penal
Code (IPC). This decision in Nikhil
Soni v. Union of India, is likely to have
far-reaching consequences, not only
amongst the Jain community in
Rajasthan but also across the country.
Unfortunately, it conflates several
important issues of constitutional law,
and symbolises the confusion over
the fundamental guarantee of
religious freedom in our constitutional

jurisprudence.
The courts judgment is
superficially reasoned, misconstrues
findings of the Supreme Court, and,
most significantly, ignores vital
considerations that go to the root of a
persons
right
to
ethical
independence. It is undeniable that
Indian secularism a form quite
distinct from western conceptions of
the term envisages the intervention
of the state in matters of religion,
where general social welfare or
substantial civil liberties are at stake.
But, what our Constitution, properly
interpreted, does not permit is the
bestowal of any specific discretion
on the courts to tell us which of our
beliefs and practices are essential to
the following of a religion.
Santhara, which is increasingly
widely practised by Jains in India, is
a voluntary tradition of fasting till
death, that Jains believe will help
them attain ultimate salvation. The
practice is premised on a
foundational idea that the act of
fasting, as an exercise of bodily
autonomy, allows a believer to attain
a state of utter transcendence.
However, the court has now found
that such matters of integrity, of
choosing how one wants to lead life,
do not enjoy any constitutional
protection, and that voluntary fasting
is nothing but a performance in selfdestruction. By any reasonable
construction, fasting ought to be
considered indistinguishable from an
act specifically aimed at ending ones
own life.
Effectively, the judgment in
Nikhil Soni is predicated on two
primary grounds. First, that the
guarantee of a right to life does not
include within its ambit a promise of
a right to die, and therefore, that the
practice of Santhara is not protected
by Article 21 . Second, that Santhara,
as a religious practice, is not an


essential part of Jainism, and is hence
not protected by Article 25 , which
guarantees a persons right to religious
freedom and conscience. While on
the first ground, the courts reasoning
is difficult to accept, on the second
ground, the courts finding is
premised on a wrongly considered
doctrine, carved by the Supreme
Court in its earliest rulings on the right
to freedom of religion.
The Jaina practitioners contend
that Santhara is not an exercise in
trying to achieve an unnatural death,
but is rather a practice intrinsic to a
persons ethical choice to live with
dignity until death. These arguments
were brushed aside by the Rajasthan
High Court. It simply found, based on
an incorrect reading of Gian Kaur ,
that there is no dignity whatsoever in
the act of fasting, and that therefore,
there exists no freedom to practise
Santhara as an extension of ones right
to life under Article 21. But, perhaps,
even more damagingly, the court in
Nikhil Soni also rejected arguments
that sought to locate such liberty in
Article 25. Here, though, the folly in
its reasoning wasnt as much a
product of its own making, as it was a
consequence of a vague doctrine
established by the Supreme Court.
Plainly read, Article 25
guarantees to all persons an equal
entitlement to freedom of
conscience and the right to profess,
practise and propagate religion. The
right is subject only to public order,
morality, and health, and other
recognised fundamental rights.
However, as the debates in the
Constituent Assembly demonstrate,
these community exceptions were
included purely to ensure that the
guarantee of religious freedom did
not come in the way of the states
ability to correct age-old social
inequities. It wasnt the Assemblys
intention to allow organs of state any
substantial latitude in determining
which religious practices deserved

constitutional protection. The courts
constriction of this freedom has been
achieved by invoking a rather curious
principle: that Article 25 protects
only those exercises that are
considered essential religious
practices. Through the 1960s, this
doctrine, which was first envisaged
in the Shirur Mutt case, decided in
1954, ingrained itself as an integral
part of Indias constitutional theory.
The court, on a case-by-case basis,
often examined individual religious
canons to determine what
constituted an essential religious
practice. Significantly, the court
began to examine whether a
particular exercise was indispensable
to the proper practice of a religion.
It is this authority, which the
High Court in Nikhil Soni , has invoked
to rule that the criminalisation of
Santhara would not breach a Jains
right to religious freedom. We do not
find that in any of the scriptures,
preachings, articles or the practices
followed by the Jain ascetics, the
Santharahas been treated as an
essential religious practice, nor is
necessarily required for the pursuit
of immortality or moksha , the
judgment states. This analysis, as is
evident, does not consider whether
a person indulging in Santhara
performs the act out of an intrinsic
belief that the practice flows from his
religion, but rather adopts an almostavowedly paternalistic outlook. It tells
followers of Jainism that under a
purportedly proper interpretation of
their religious texts, Santhara is simply
not an essential practice. As a result,
the question of whether a Jains right
to religious freedom is violated by
prohibiting Santhara is examined in a
wholly unsatisfactory manner.
No alternative to talks
The failure of India and Pakistan
to hold the planned meeting
between their National Security

Advisers, as was agreed in Ufa six
weeks ago, is unfortunate, indeed
disquieting. It should give pause to
both Islamabad and New Delhi on
what kind of relations they could
possibly expect to have in the
foreseeable future. Arguments to the
effect that there were earlier periods
when they had agreed to disagree
are at best disingenuous. At Ufa there
was a limpid agreement on the
agenda for the New Delhi meeting:
that the NSAs would discuss all
issues connected to terrorism. Ufa
had also yielded a discernible road
map to bring about a modicum of
peace and tranquillity along the
border and the Line of Control (LoC),
which has been witnessing rounds of
wanton firing and unacceptable
casualties. External Affairs Minister
Sushma Swaraj put the number of
ceasefire violations since Ufa at 91.
Barely a week after Ufa raised modest
hopes of an upturn in relations, there
was firing in the Akhnoor sector.
Foreign Secretary S. Jaishankar spoke
of four attempts made by the
Director-General of the Border
Security Force to make telephonic
contact with Sector Commander
Sialkot as per laid-down procedures,
which met with no response. He
mentioned how this was
unacceptable. Now, with the
prospects of even a limited
engagement having receded, the
question that arises is: how will the
two nuclear-capable neighbours
deal with each other?
There is no doubt that through
its grandstanding on Kashmir and
Hurriyat, Islamabad reneged on the
understanding reached in Ufa. It is
equally obvious that New Delhi has
recalibrated its Pakistan policy,
willing perhaps to take a calculated
risk that the world would be better
disposed to its preferences in the
71


matter of dealing with Pakistan, almost
14 years after 9/11. Yet, the new
situation may have willy-nilly
rendered India vulnerable to facing
gratuitous advice, possibly worse. To
assume that those who formulate
Indias Pakistan policy believed
Islamabad would respect the
sudden red line drawn on the
Hurriyat, would stretch credulity. The
Hurriyat certainly does not have a
place in bilateral processes. It is at
best a Pakistani side-show with some
nuisance value and without much
consequence. India had indeed
learnt to tolerate that. Now, New
Delhis actions may have the
unintended effect of making the outfit
larger-than-life which is an
avoidable prospect. Pakistan has also
not covered itself with glory by
overloading the agenda with issues
that the two NSAs meeting for an hour
or two wouldnt have been able to
come to grips with. It is best at this
point to open a discreet back channel
that ensures better bilateral
deliverables than has been the case
over the last year and a half. There is
simply no alternative to talks.
The new Great Game in Asia
Two strategic agreements
currently being negotiated by the
worlds trading giants will likely
determine the global balance of
economic power for years to come:
the Trans-Pacific Partnership (TPP)
and the Regional Comprehensive
Economic Partnership (RCEP). The
TPP and RCEP are not radically
different instruments they are both
free trade agreements (FTAs)
designed to lower tariff and non-tariff
barriers to trade between countries
that conduct the bulk of global
commerce. The TPP negotiations are
led by the U.S. and involve 11 other
nations that share a Pacific Ocean
coastline. Seven of those countries
Australia, Brunei, Japan, Malaysia,
72
New Zealand, Singapore, and

Vietnam are also party to RCEP
negotiations. RCEP comprises the
ASEAN nations and six others: India,
China, Japan, Korea, Australia and
New Zealand. In addition to trade in
goods and services, both agreements
cover the critical area of intellectual
property rights. RCEP is the more
modest of the two, seeking to
implement and build on World Trade
Organization (WTO) commitments
incrementally.
TPP seeks to frame a new
agenda for global trade, requiring
countries to commit beyond their
existing multilateral obligations under
the WTO. TPP negotiations broke
down earlier this month, after
countries were unable to find
common ground over IPR protections
the U.S. sought to introduce,
especially in cyberspace. In contrast,
RCEP negotiations have seen
progress, albeit haltingly. The Press
Trust of India reported last week that
ministerial delegations from RCEP
member countries will meet in
Malaysia in August to finalise
modalities. RCEP is an important
agreement for India, as it involves
many, if not all, of the countrys major
trading partners.
RCEP is not a China-led process,
but involves Beijing as a key player.
China is acutely conscious of RCEPs
political significance earlier this
year, Commerce Minister Gao
Hucheng suggested China will
continue to unswervingly push
forward and quicken the pace of
Chinas free-trade agreement
strategy. If such a comprehensive
regional agreement were to be inked
ahead of the TPP regime, it would be
a shot in the arm for China. The RCEP
story would underline three crucial
conclusions: first, that China is willing
to engage actors within a pluri-lateral
setting, and set aside competing
political interests, especially around
South China Sea concerns, for overall

economic gain. Second, that Beijing
leadership is capable of absorbing
multilateral instruments into domestic
law to secure regional interests even
if it goes against established
economic policies, especially on
IPRs; third, and most important, China
is comfortable with conceiving and
implementing international norms
while it emerges as a hegemon in the
Asia-Pacific. These conclusions, if
affirmed, would signal a decisive shift
in the regional locus of power from
the U.S. to China.
The RCEP is different, but no
smooth ride either. Keen to protect
their digital economies, Japan and
South Korea have sought strong IPR
protection measures. India,
meanwhile, has dug its heels in,
suggesting it would not budge from
the bare minimum that is required for
TRIPS compliance. This is a
commendable position to take but
does not serve any strategic purpose.
Indian government is yet to articulate
a strategic vision for the Asia-Pacific
region that combines economic and
political interests. On the foreign
policy front, it has moved closer to
the U.S., but wants to remain
invested in RCEP. At the same time, it
does not want to be seen as being
too close to China, whose IPR and
cyber policies leave a lot to be
desired. If this reflected a multialignment policy, Indias negotiating
line in RCEP would have been
calibrated to respond to specific
concerns from across the table, but
the draft text does not seriously
evaluate whether domestic IPR
policy can accommodate RCEP
provisions.
IPR protection in cyberspace,
as highlighted through the
infographic, is one of the most
important themes and a major
source of disagreement in both
TPP and RCEP. TPP provisions would


require a major restructuring of
Indias IP enforcement framework,
and may not be immediately feasible.
But Japans prescriptions suggest that
it is possible for India to find a middle
ground in RCEP. Many of Japans
concerns relate to legal standards
how Internet applications should be
classified, the nature of procedural
guidelines on intermediary liability,
the scope of technology protection
measures, and the range of penalties
imposed.
These concerns are already
accounted for in Indian law. With
some creative diplomacy, New Delhi
could propose treaty language that
resonates strongly with the Indian
position. Enforcement of IPR claims
is anyway conducted bilaterally,
which allows the Indian government
to interpret RCEP provisions on a
case-to-case basis. Even if India were
to successfully navigate its way
through RCEP, larger questions
remain. By hitching its wagon to
RCEP, is India tipping its hat to Chinas
primacy in the region? Why is India
not part of TPP negotiations, even if
as an observer? Joining the TPP club
may be political anathema, but Indias
policymakers would do well to learn
from Chile, a TPP negotiator, which
has successfully resisted several U.S.
changes to the draft treaty text.
Chiles IPR laws in particular are in
sharp contrast with the U.S. position,
but that has not deterred its
leadership from actively pursuing
negotiations. After all, if youre not on
the table, then youre on the menu.
Shadowboxing to what avail?
As ministers and diplomats
negotiated their way out of the talks
between the National Security
Advisors (NSA) of India and Pakistan
this week, they resembled nothing
less than the family of a terminally ill
and unpopular patient on life
support, trying to decide just which

one of them would pull the plug on
the process started by the Prime
Ministers of India and Pakistan,
Narendra Modi and Nawaz Sharif, at
Ufa in Russia in July. As a result, when
the end came, there was little to
cheer about and no winners
declared: not the Prime Ministers,
who despite showing sagacity in
making no public statements about
it, had little to show for their efforts in
Ufa. Not the diplomats and security
officials, who had burnt the midnight
oil preparing lengthy drafts on just
what would be said, and what could
be taken forward during the meeting
between the NSAs of India and
Pakistan, Ajit Doval and Sartaj Aziz.
And not the Generals, who may have
hoped for a lull in the constant
thunder at the Line of Control (LoC)
that has ensured that jawans are
working double shifts, while people
living there who after a decade of
rebuilding homes, schools and raising
crops, are having to flee their homes
again.
This was the line the government
should have then caught onto, but in
a manner akin to the cliched
snatching of defeat, or a tie from the
jaws of victory, External Affairs
Minister Sushma Swaraj sought to up
the stakes. At her press conference
hours later, she said it wasnt enough
that the Pakistan NSA was coming to
Delhi despite it being made clear he
wouldnt get to meet the Hurriyat. He
would now have to give India an
assurance that he wouldnt meet
them, and that he wouldnt discuss
Kashmir when he met Mr. Doval all
with a crudely worded midnight
deadline. The first part was puzzling
indeed. In the first place, once the
government had demonstrated that
it could and would detain the leaders
on their arrival in Delhi, why would
she need the assurance from Mr. Aziz
that he wouldnt meet them? Was Ms.
Swaraj worried that the Pakistani NSA

would drive over to the Intelligence
Bureau safehouse they were held at
in Delhi to catch a glimpse of them?
Or that they would slip into Pakistan
High Commissioner Abdul Basits
residence, where the reception for
Mr. Aziz was to be held without the
knowledge of the police? If instead
she had accepted the gauntlet
thrown by Mr. Aziz, and allowed him
to come while ensuring that he didnt
meet with the Kashmiri leaders, the
government would have had a more
powerful precedent to enforce its
red line. As a result, India missed a
vital opportunity. Finally, Ms. Swarajs
sentence that she was imposing no
conditions on the talks, but that the
talks would only happen under the
condition that Mr. Aziz gave her
assurances, must have sounded
hollow even to her own ears.
Pakistan, too displayed its
ability for flawed logic and folly. The
agenda of any meeting between
leaders is a matter for those two
countries to negotiate prior to a
meeting. To begin with, if Kashmir
occupies quite so much mindspace
and heartspace for Pakistan, why
didnt it share some wordspace in the
Ufa agreement? Second, if it was so
easily understood that the NSAs
would discuss all outstanding issues,
and Jammu and Kashmir in particular,
why didnt Pakistan Foreign Secretary
Aizaz Chaudhry insist with his Indian
counterpart Mr. Jaishankar on clearer
wording in the Ufa agreement?
Finally, if no dialogue is possible
without Kashmir on the agenda, why
did Mr. Aziz feel the need to repeat
it early and often, in every press
conference, statement and interview
he gave? Why not just arrive in Delhi
and discuss his concerns with Mr.
Doval? After all, the only terror India
wants to discuss is that of groups in
Pakistan that either originate or
operate from Pakistan occupied
73


Kashmir, so it is very likely that Kashmir
would have been brought up. The
LoC ceasfire violations, that most
certainly would be discussed, also
affect Kashmir the most. Mr. Aziz
would do well to remember that
when it comes to terror, it is Pakistan,
and not India, that wants to discuss
non-Kashmiri groups like the Tehrike Taliban Pakistan, Baloch nationalist
groups and political groups like the
Muttahida Qaumi Movement.
We now stand at a point where
the talks are off, and it is by no means
clear that the meeting between Mr.
Modi and Mr. Sharif on the sidelines
of the United Nations General
Assembly that had been discussed
at Ufa according to officials, will
fructify. As a result, the government
has some breathing space to resolve
some issues internally without the
pressure of another high-level summit
to worry about. To begin with, the
LoC ceasefire must be revived. The
last few months, and particularly the
last few weeks, with over 160
violations on both sides combined,
are of immediate concern. Indian
troops and villagers living along the
LoC should not have to pay the price
for political tensions between the two
countries. Despite using what
government
officials
call
indiscriminate and unpredictable
return firepower including heavy
mortar, there is no evidence that the
Pakistani troops have flagged or that
their fire on the LoC has waned. If
this situation is not to be escalated, it
is necessary to go ahead with the
planned meetings in two weeks
between border force chiefs (the
Directors General of Military
Operations as well as the Directors
General of the Border Security Force
and and Pakistan Rangers) to discuss
a series of measures to put into place
each time deadly fire is exchanged.
Next, it is necessary to restore
the balance between security and
74
diplomacy: the announcement and

structure of the NSA talks seemed to
indicate that Indias foreign policy
establishment has taken a back seat
on several important issues. In the past
few months, first on China, then on
Pakistan, and then more recently with
the United Arab Emirates, it is Mr.
Doval rather than Ms. Swaraj or Mr.
Jaishankar who is being tasked with
taking bilateral dialogues forward.
While security issues remain
paramount for the country, external
relations are best coated with some
amount of diplomacy. In the case of
the Hurriyat for example, the Ministry
of External Affairs (MEA) seemed to
have been kept out of the central
thinking, which would explain why
when the reception for Mr. Aziz was
first announced by the Pakistan High
Commission, the MEA reaction was
that this was seen as a provocative
move aimed at calling off talks, and
the government wouldnt give in to
Pakistans objective. However, just
three days later, the government
decided to fulfil that very objective,
and make the Hurriyat meeting an
issue over which talks would be
called off.
Finally, Mr. Modi must look for
an interlocutor. Many in this
government, including himself, have
expressed their admiration for Israel,
especially the countrys tough zerotolerance position with its
neighbours. Yet, few understand the
worth of Israels foremost diplomat,
Abba Eban, in achieving its success
through diplomacy at the United
Nations and with Israels Arab
neighbours for whom he was the chief
interlocutor, serving his country as
Ambassador to the UN and the United
States until 1959 and then as a
minister, a member of the Knesset
(Israels Parliament) until 1988.
Obviously, there are no parallels here
to the history and context of the
Israel-Arab conflict, but it is important
that the Modi government gives voice

to its own possible Eban. If Mr. Modi
is indeed intent on building a harder,
tougher, less flexible image for India
than the world has seen before, he
will need an interlocutor who shares
his commitment, but understands
how to talk to Pakistan. This
interlocutor must be able to convince
the world of Indias position, but at
the same time follow Ebans most
famous quote, A statesman who
keeps his ear permanently glued to
the ground will have neither elegance
of posture nor flexibility of
movement. At present, given the
performance of his officials in the past
week, he has none.
Missing the
bigger picture on OROP
The Indian armed forces are
fighting their toughest battle ever. For
an Army that has fought on every
terrain and in every operation
imaginable, this battle is
confounding. Because this time, they
dont know which side the enemy is
on.
As the national discussion about
the plight of ex-servicemen reaches
a crescendo, the toughest battle is
being fought not at Jantar Mantar
between the khaki and the olive
green, nor is it being fought between
South and North Block that house the
mandarins of the Defence and
Finance ministries respectively. The
battle is definitely not about the
blame game between political
parties, none of whom solved the
problem when they could. Neither is
it being fought on primetime
channels where screaming experts
misconstrue volume for value. The
toughest battle is being fought by the
young leaders of our armed forces
the Lieutenants, Captains, and Majors.
It is they who have to lead troops into
battle with no material incentives to
assist them. Consider their situation.


It is well-known that the Indian armed
forces are facing a grave shortage
when it comes to junior leaders. Many
active combat units are facing an
acute shortage of officers. Young
officers, barely out of their teens, are
handling bigger responsibilities than
ever before and stepping up to
discharge additional duties.
All stakeholders in this game, by
definition, are on the same side. So,
whether it is the treacherous
politicians; the Machiavellian
bureaucrats; the arrogant
policemen; the indifferent bean
counters or the unreasonable exservicemen they are all citizens of
this country who will pay a heavy
price if the fibre of our apolitical
armed forces unravels. And it is
unravelling. Social media is rife with
serious dissent among ex-servicemen
and, more alarmingly, serving soldiers
and officers. Conversations bordering
on sedition are creeping into
discussion threads. Junior officers are
openly questioning the spine and
integrity of their seniors. Soldiers from
serving units are contributing monies
to fund the One Rank One Pension
(OROP) agitation, albeit in their
personal capacities.
It is critical to step back and look
at the big picture. The fact that the
OROP issue had been relegated to
files for far too long is obvious from
the critical mass of the problem and
the indignation of the aggrieved. The
fact that a former Chief chose to
withdraw as an interlocutor
underscores the divide and
truculence of both sides. But it
behoves the leaders of our
Government, bureaucracy and most
importantly the Defence Forces,
both serving and retired, to realise
that this impasse cannot be resolved
in a combative manner. This is
because, on one side you have the
Indian armed forces, who have never
learnt to take defeat regardless of the

casualties suffered, and we should be
thankful for that. Any result short of a
victory will demoralise one of the
finest armies of the world.
The resolution to OROP doesnt
have to consist of a single silver bullet.
Solutions can be a combination of the
private sector stepping in with postretirement options; the clustering of
ex-servicemen into categories and
re-skilling and funding them for
entrepreneurship; and a slew of other
measures to ensure the dignity and
livelihood of our ex-servicemen. We
can achieve this outcome provided
we comprehend that this is not just a
dispute between ex-servicemen and
the government. It is a national
security issue where every citizen
needs to pitch in. Because, if war is
too serious a business to be left to
generals, nation-building is too
serious a process to be left to the
politicians and bureaucrats.
The fractious
demand for ILP in Manipur
Manipur has witnessed a series
of protests starting in July this year,
following demands for the
implementation of the Inner Line
Permit (ILP) system in the State. The
protesters have demanded that the
government introduce the ILP bill in
the State Assembly. The agitation
gained momentum after an 11th
grade student from Ananda Singh
Higher Secondary Academy,
demanding the implementation of
the ILP system, was killed when
police used teargas to disperse
protesters. If the bill is passed and
enacted into law, it will require
outsiders to obtain a special pass or
permit to enter the State. The system
is in force in the neighbouring States
of Nagaland and Mizoram and also in
Arunachal Pradesh.
Initially, the British colonial
government had introduced the
system to protect its commercial

interests, particularly in oil and tea. It
was continued to protect the tribal
peoples and their cultures. The ILP,
which remained in force until 1950,
was revoked by the then
Commissioner of Assam, whose
jurisdiction also covered Manipur.
Since Manipur, which attained
Statehood in 1972, is not officially a
tribal State, there are constitutional
challenges to implementing the ILP
system. Though the majority Meitei
community would have liked to make
the demand an inclusive one, the
issue has become divisive and in
some instances has even taken a
communal tone. Among the three
major communities of Manipur
Meitei, Kuki, Naga the ILP system
has been demanded only by the
Meiteis. As a result, following
opposition from the local community,
a planned rally in support of the ILP
was cancelled in Churachandpur, a
predominantly Kuki town.
The Kuki population is wary of
the motives of the ILP campaign. The
apprehension has recently been
heightened by the fact that some
within the Meitei community have
called the Kukis foreigners. Though
the Kukis are an indigenous group in
Manipur, there are some who fear that
the Meiteis could use the ILP to
advance their stand of Kukis being
foreigners. This seems to be an
important reason why many within
the Kuki community do not support
the ILP or the Meiteis demand for
tribal status.
On August 3, the Government
of India and the National Socialist
Council of Nagalim (Isak-Muivah)
(NSCN-IM) signed a peace accord
in the presence of Prime Minister
Narendra Modi. Though the details
of this agreement are yet to be
disclosed, there is serious concern
that Naga-dominated areas within
75


Manipur will be integrated with
Nagaland. Given how Telangana was
created in 2014, there is a possibility
that the Indian government may
consider redrawing State boundaries,
if it sees potential benefits
outweighing the status quo. There is
also a lingering question of whether
the armed Kuki and Naga groups
would reach an agreement on land
disputes in the hill areas. Or, will the
Indian government hold a political
dialogue and sign peace accord with
the Kuki groups?
One possible amicable solution
for the government is to implement
the Sixth Schedule in the hill areas.
Under such a political arrangement,
the Kukis and Nagas would enjoy
autonomy in their respective areas but
remain within the State of Manipur.
The politics of backwardness
If political mobilisation could
win for it the fruits of reservation in
employment and education, the
massive shows of strength over these
last few days in Gujarat should have
yielded results for the Patel
community by now. Their agitation to
get the community included in the
Other Backward Classes list has
brought the State almost to an
administrative halt. Not only Chief
Minister Anandiben Patel, but also
Prime Minister Narendra Modi and
leaders of parties in other States have
been given a rude awakening to the
intensity of the demands of the
agitators. However, even if the Gujarat
government wanted to, it cannot
extend reservation benefits to the
Patel community merely on the basis
of an executive order. Inclusion of
more communities in the reservation
list is already a highly controversial
issue and fraught with procedural and
legal obstacles. Not only would
communities that are already
enjoying reservation benefits oppose
any move that would shrink their pie,
76
but other communities currently

excluded from the OBC list would
demand to be treated on a par with
the Patels. More importantly, any
decision to extend reservation
benefits to new claimants might not
pass judicial scrutiny. Recently, the
decision to include Jats in the OBC
list was overturned by the Supreme
Court, which ruled that the
perception of a self-proclaimed
socially backward class of citizens
cannot be a constitutionally
permissible
yardstick
for
determination of backwardness.
Indeed, the court specifically warned
against a caste-centric definition of
backwardness, and called for new
practices, methods and yardsticks to
be evolved to identify socially
disadvantaged groups for extending
the benefits of reservation. Like the
Jats, the Patels will not find it easy to
meet the specified criteria for social
and educational backwardness.
For the Bharatiya Janata Party,
which is in power both at the Centre
and in the State, the Patel agitation is
a fresh political headache. The party,
which counts the Patels among its
key constituencies, will need to be
seen as having backed the agitation
to the full in order to arrest any erosion
in its traditional vote-bank. For Prime
Minister Modi especially, to envision
the loss of the BJPs political hold in
Gujarat would be particularly
distressing. There is simply no way to
appease the Patels without alienating
some of the other backward class
communities in the State. Moreover,
the BJP finds itself dealing with a
new, youthful leadership of the
community focussed on jobs and
livelihood concerns, and not political
power. In a situation where it can
neither support nor antagonise the
agitators, the BJP and its governments
in the State and at the Centre must
resist the temptation to grant the
demand of the Patels in principle and
deny it in practice. It would be

cynical to merely wait for the
movement to somehow lose steam
with time, and not confront the issues
that are at stake.
India should
assume a more assertive role
The worlds most important
climate talks are coming up at the end
of this year in Paris. The French
presidency is leading an
unprecedented climate diplomacy
drive working tirelessly to bring
countries together beforehand in the
hopes of making progress towards a
global deal. The latest such
consultations took place last month
as informal ministerial consultations
that brought together 40 delegations
and 30 Ministers. To limit the global
rise in temperature to two degrees
Celsius, considered the benchmark
for dangerous climate change,
countries have agreed to submit their
intended nationally determined
contributions or INDCs. INDCs are
bottom-up commitments from
nations defining the extent of their
emissions reduction contribution
towards this global goal. Nations were
requested to submit their INDCs by
the end of March 2015, but not later
than October 2015. Initial
calculations suggest that total
submissions account for only 56 per
cent of global emissions.
The
most
significant
development in the discussions is the
concept of a peaking year. A
peaking date is a time in the future
until when emissions are expected
to grow, and is likely a function of
anticipated growth plans and energy
use. China, the worlds largest emitter,
says its emissions will peak in 2030.
The European Union (EU) is
committed to its previously
announced target of 20 per cent cuts
off 1990 levels by 2020. Ethiopia, one
of the worlds poorest nations is set


to reduce its total emissions starting
2030. The announcement of a
peaking date has been extensively
applauded as countries more
specifically, Chinas willingness to
act as a major player in climate change
mitigation.
India is the fourth largest emitter
and despite our $2 trillion GDP, over
30 per cent of the population does
not have access to electricity. Some
21 per cent lives below the poverty
line. This means India needs a lot of
headroom emissions to grow
before it we can think of slowing
down. But, we are also seen as a major
economic player. We should act the
part. Especially since there is so much
happening at home. Consider just
these initiatives: Indias total green
energy commitment is 175GW over
five times the current amount. The
Indian Railways has announced
several energy conservation
measures. Urban metro transport is
being contemplated as part of the
smart cities project. Cars are moving
to Bharat-VI emissions norms. The
point is, it all adds up. All of this could
be bundled into an INDC and
become the first step in climate
diplomacy. But, to what end? We
should keep our eyes on the ball. A
two degree goal means that global
emissions must peak by 2020. INDCs
should therefore be developed with
this target in view.
Peaking years are a function
of economic growth, energy use and
population increases.The concept of
a peaking year is an important step
in climate negotiations, not because
it sets a particular date per se, but
because it begins a conceptual shift
away from the current outdated
classification of nations under
Annex-I (so called developed
economies) and Non-Annex-I (so
called developing countries).
According the U.N.s classification,
China the worlds largest emitter is in
the same non-Annex I bucket as

Congo, possibly the worlds poorest
country. If the current discussion is
on climate finance then a new
benchmark must be set for
determining reduction rigour.
GDP per capita would perhaps
the most logical way of determining
a new benchmark. For a diverse
country like India, its leadership
quotient could be a sum of all actions
currently being undertaken to meet
its infrastructure needs; and its
additional quotient could seek
financing for meeting the incremental
costs of greening more basic energy
needs to cater to say, the segment of
India without basic energy access.
Either way, it is time that India
assumed a constructive role in the
international arena. It is time it began
to move away from traditional
alliances such as like minded
developing countries and crafted
new links that are more in sync with
the countrys growth plans.
Formulating a credible INDC is the
first and most basic step. Working
towards developing a meaningful
peaking year is the next. We have
no dearth of skills and institutional
capacities to do this, and it should
be our imperative as a strong,
emerging economy to do so.
Sign accords but talk peace
In the weeks following the
signing of the August 3 Naga
Framework Agreement, the
discourse has focused on the belief
that the process has now reached the
stage of a dialogue from the earlier
stage of negotiations. This is reflected
in the statements of both R.N. Ravi,
the governments peace interlocutor,
and National Socialist Council of
Nagalim (Isak-Muivah) [NSCN(I-M)]
general secretary Thuingaleng
Muivah. The Naga internal
consultative process has tried to be
inclusive of civil society bodies,
academia, student bodies, social

organisations and armed groups since
the 1950s. The three Naga Peoples
Conventions (NPCs) from 1957 to
1959 resulted in the formation of the
State of Nagaland, established in
1963. The latest agreement was
signed with NSCN (I-M), and other
Naga armed groups such as NSCN
(Khole-Kitovi)
and
NSCN
(Reformation) have either resisted or
welcomed the agreement. NSCN
(Reformation) led by Wangtin Naga
and P. Tikhak have applauded the
peace initiative but have highlighted
the importance of an inclusive base.
Members of the Naga Hoho and
others have volunteered to meet
NSCN (Khaplang) in Myanmar to
bring them into the consultative
process.
This consultative aspect leads
me to delve deeper into the
changing language, from one of
negotiation to one that stresses
dialogue. While negotiation aims at
finding a concrete agreement,
dialogue aims at a changed
relationship. Naga peace negotiations
have been stalled for decades due
to the rigid postures of the main
parties like the governments
position that Indias territorial integrity
and sovereignty are non-negotiable
and the NSCN (I-M)s insistence that
any resolution has to be outside the
framework of the Indian Constitution
and must include integration of all
Naga inhabited areas. Dialogue aims
to bridge the gap between the
notions of self and the other and
the constructed realities based on
that distinction. The participants in
the dialogue must have an
understanding of the historical
context leading to the conflict, and
be sensitive to the changing political
and social context. Cultural
knowledge and understanding of the
way of the land is critical. Any
77


dialogue must have a long-term vision
for the future propelled by the
recognition
that
changed
relationships hold the key to conflict
resolution.
The primary participants in the
Naga dialogue processes, besides the
government, are listed in the table
alongside. Besides this, ordinary
citizens
like
businessmen,
intellectuals, and church leaders must
be involved. The Naga dialogues vary
in participation from a minimum of 20
to a maximum of 10,000 people and
the process ranges from two days to
a month. The dialogues have been
mostly facilitated by the Naga Hoho,
the Forum for Naga Reconciliation
(FNR) and the Joint Forum for
Gaonburahs and Doibashis
(JFGBDB). These civil society actors
see the conflict as a response to the
inadequate fulfilment of basic human
needs in Naga society. Though they
rarely believe that the NSCN (I-M)s
or NSCN (K)s movements for an
independent homeland will
succeed, they support the violent
struggle as a fight for justice and
safeguarding ethnic life-worlds. Such
consultative meetings have been
routinely held over the years to
address issues pertaining to the Naga
conflict. The test for the current
consultative process is to absorb the
principles of dialogue identified
above, especially pertaining to
inclusiveness, joint ownership,
transparency, and a vision for the
future. Resistance from the KholeKitovi, and Khaplang factions to the
August 3 agreement has to be
addressed within the framework of
dialogue.
Secure haven for a terrorist
In an ideal world where the rule
of law mattered and geopolitics did
not dominate the conduct of
international relations, Pakistan would
have cooperated in the capture and
78
extradition of Dawood Ibrahim and

the criminal and mass murderer
would have faced justice in the
country of his origin. Instead, in this
real world Pakistan persists with its
long-pursued policy of plausible
deniability, refusing to acknowledge
the presence of the underworld
kingpin, let alone responding to
accusations that he has been
sheltered by the agencies of the
state. While he has been absconding
from Indian justice after being
identified as a key conspirator in the
1993 Mumbai blasts that killed
hundreds of people, it has been
widely reported that he lives a
secured life of comfort in Karachi,
among other places. How Ibrahim
can live such a life without protection
accorded by Pakistans security
establishment is not an unfathomable
mystery. He was after all playing a
leading role in Pakistans strategy of
trying to bleed India by a thousand
cuts, that it has seemingly followed
fervidly in the 1990s.
Much water has flowed down
the Indus since then; today Pakistan
suffers festering wounds inflicted by
its own strategy of terror. There is
some degree of realisation among its
civilian establishment that the nexus
between the security establishment
and the jihadi complex has hurt its
fledgling democratic institutions. This
led to an assertion of civilian
supremacy in the latter half of the
decade of the 2000s, and a degree
of acceptance by the security
establishment of the need to do away
with military preponderance. But
there has been little reorientation in
Pakistans overall foreign policy
towards India, beyond tokenism and
a grudging acceptance of a changed
world at large that has little tolerance
for terrorists and their sponsors.
Despite an Interpol Red Corner notice
out for him, and notwithstanding the
UN Security Council Resolution 1267

that obligates UN members to help
apprehend individuals included in a
UN sanctions list against the al-Qaeda
where Ibrahims name figures, there
has hardly been any action taken by
Pakistans state establishment. Indian
governments over the years have
patiently built a case for his
extradition through dossiers
submitted to Pakistan. But these have
been of no avail, and unsurprisingly
so. After all, the most wanted terrorist
of the last decade, Osama Bin Laden,
was ensconced in a compound in
Abbottabad not far from the Pakistan
Military Academy campus. Plausible
deniability did not work with the
U.S., as President Barack Obama
ordered an operation to take out Bin
Laden, showing little regard for
Pakistans sovereignty. It is to be
hoped that the Pakistan government
will revisit the lessons learnt and
cooperate on the issue of Ibrahims
extradition. Among other things, such
a step will aid in mending the fraught
relations between India and Pakistan.
Rethinking reservations
and development
In Gujarat, the Patels or Patidars,
who constitute about 15 per cent of
the States population, are an
economically and politically
dominant upper caste. As successful
farmers, as small and big industrialists,
as traders as well as non-resident
Gujaratis, spread practically all over
the world, they should be the last to
demand reservation. The Patel
agitation at present, however, seems
to be demanding precisely this. Or, if
read carefully, the protesters are
demanding the removal of castebased reservation and its
replacement with income-based
reservation. The Patel rallies for
reservation have been widespread
across the State and significantly large
in many towns and cities. Though it


appears to be an urban movement,
rural areas are not totally excluded.
The rallies have also spurred other
caste rallies and resulted in intercaste conflicts and tensions. Though
there seem to be many weaknesses
in the leadership of the agitation and
lack of clarity in its objectives, the
agitation needs to be taken seriously
because it is a warning of the shape
of things to come not only in
Gujarat but also other parts of the
country.
The agitation has emerged out
of the frustrations of the youth on two
major counts. First, the existing
reservation policy that has failed to
assimilate lowest castes/tribes within
the mainstream economy and
society, has created a sense of
dissatisfaction and injustice among
those who are denied the benefits of
reservation. And second, the muchdiscussed Gujarat model of
development has failed miserably in
creating adequate employment
opportunities for the growing labour
force in the State. This lacuna has
particularly affected the educated
youth who are unable to find suitable
work in spite of the rapid growth of
the economy. The reservation policy
which was initiated as a temporary
provision (for 10 years) for Scheduled
Castes(SC) and Scheduled Tribes
(ST) in our Constitution in 1950, has
expanded its coverage and contents
multifold over the past six to seven
decades. It has now become an
almost a permanent feature of the
national policies. The reservation
policy however, has been used in the
State (as elsewhere) mainly in vote
bank politics played around the
castes and has failed in including the
people at the bottom in the
mainstream economy and society.
Clearly, the time has come to
rethink our reservation policies, that
have ended up giving preference to
more or less the same class of SC/ST/
OBC in school/college admission, in

jobs and in promotions as well as
subsidies
in
innumerable
programmes and schemes, leaving
out the poorer sections among them
at the bottom. Our recent study in
Gujarat has shown that the SC, OBC
and ST households at the bottom are
still left out of the benefits of the rapid
growth of the State. The radical
rethinking on reservation should aim
at (i) excluding the entire creamy
layer from reservation; (ii) developing
the capabilities of the deprived and
excluded beyond offering them
admission to higher education or jobs
on a platter. The underlying principle
should be that all the poorest at the
bottom get support and all the
poorest excluded socially and
economically get a preference.
Secondly, the failure of
development model in Gujarat (and
for that matter India as a whole) to
create massive, productive
employment for the youth is another
reason for frustration of the youth. The
labour market in Gujarat has behaved
in a peculiar manner in the recent
decades. On the one hand, largescale in-migration of unskilled and
low-skilled workers is observed in a
wide range of sectors such as
agriculture, construction, brick kilns,
power looms, small engineering,
garments etc. At the other end, the
posts of highly-skilled professionals
in the fast-growing, technology sector
have also been largely filled by
professionals and high-skilled workers
from outside the State. A significant
number of the educated youth in the
State does not find suitable
employment in the State because i.
the growth of the modern sector has
been highly capital intensive, where
jobs generated are relatively few and
local youth frequently do not qualify
and ii. other employment
opportunities for the educated youth
are fewer and not remunerative. As
per the official data, the number of

educated unemployed i.e. the
number of educated job seekers
above the Senior Secondary
Certificate (SSC) level has increased
from 6.7 lakhs in 1995 to about seven
lakhs in 2014 while the number of
graduate job seekers has increased
from 12,184 to 40,781 in the same
period an increase of 3.6 times.
Clearly the educated youth is left high
and dry, and excluded from the
benefits of the rapid growth of the
State. The reservation policy in
government jobs has added to this
frustration.
The danger of the demographic
dividend turning into a demographic
disaster is looming over the State. And
similarly across the country, unless
adequate jobs are created for the
large labour force , the frustration of
the youth is not likely to be
contained. In short, the Gujarat
protests should be treated as a
warning against the reservation policy
and the States growth model. It is
also a warning to other States. The
best that the Gujarat government can
do immediately is to hold meaningful
discussions with the Patels to
understand their concerns. For the
medium and long term however, the
State has no choice but to redesign
its development model to create
large scale productive employment
for the youth with what the
International Labour Organisation
(ILO) calls decent work conditions
and to radically revise the reservation
policy.
Charting a
new Asian history
All history is geographically
located and influenced. Similarly, all
geography is shaped, defined and
redefined by history. This is evident
not only from world history but also
from the history of Asia the glory
of old Asia, its decline in colonial
79


times, and its more recent rise again.
The dialectic between history and
geography manifests itself through
the interplay of three factors
geopolitical, geo-economic and geocultural/civilisational. In the case of
Asia, for nearly three centuries, the
geopolitical and geo-economic
realities were negatively impacted by
Europe and the West in general.
However, that is largely a thing of the
past. Asia has begun to write its own
destiny now. The 20th century was
marked by Asias liberation from
colonial rule and imperialist
subjugation. The history of the 21st
century will chiefly be the story of
Asias rise, a process that is already
underway in some parts of the
continent.
The
other
underdeveloped parts of Asia,
especially in South Asia and SouthEast Asia, are craving to become a
part of this story.
Until now, the political
boundaries carved out on the
geography of South Asia and SouthEast Asia had become barriers for the
countries in this vast region to
overcome
socio-economic
underdevelopment caused by
history. Now, thanks to advances in
trade, transport and technology, the
geography of this region can be made
an ally to create a new history of
shared prosperity, progress and
peace, in addition to a revitalisation
of age-old, cultural-spiritualcivilisational ties. This is what has been
envisaged, on a broader expanse of
Asia-Europe-Africa connectivity, by
the super-ambitious Silk Road
Economic Belt and the 21st Century
Maritime Silk Road plans that have
been unveiled by Chinas President
Xi Jinping. India also has been
evolving its own regional cooperation
initiatives such as Mausam and the
Spice Route in the Indian Ocean
region and beyond, although these
80
are nowhere as comprehensively

projected, nor backed with requisite
investments yet, as China is doing in
the case of its One Belt One Road
vision.
Be it Chinas strategy or Indias,
neither can fully or smoothly become
a reality in South Asia without a strong
partnership between the worlds two
most populous and civilisationally rich
nations.The key to the success of this
strategy is the early implementation
of the Bangladesh-China-IndiaMyanmar (BCIM) corridor, which
envisages a network of modern road,
railway, port and communication and
trade connectivities in a region
stretching from Kolkata to Kunming
in southern China. Even though BCIM
is one of the richest regions in the
world in terms of natural and
human resources and home to nearly
500 million people it is also one of
the least integrated areas,
economically as well as socially.
Before history changed its map
in the last century, the people of this
region not only shared a geography
without rigid borders, but also close
racial, linguistic, cultural and spiritual
interconnections. Sadly, while the
neighbouring Association of South
East Asian Nations community has
become a zone of prosperity, the
BCIM region (barring southern China)
is mostly underdeveloped, Indias
seven north-eastern States providing
a stark example.
India will benefit from BCIM,
which was conceptualised 16 years
ago, in many self-evident ways. For
instance, Agartala is 1,650 kilometres
from Kolkata when one travels
through the Chickens Neck, the
narrow strip of land north of West
Bengal, which is only 23 km wide. In
contrast, the distance gets reduced
to just 350 km if the journey passes
through Bangladesh. Similarly, Indias
north-eastern States have no access
to the sea, even though Tripuras

southernmost border town, Sabroom,
is only 72 km from Chittagong, an
international port in Bangladesh. At
least one major reason behind
Kolkatas economic decline after
Indias independence is its unnatural
isolation from its natural eastern
neighbourhood. Apart from denting
the development of West Bengal and
Indias north-east, this has hurt
Bangladesh too. Landlocked from
three sides, and with only sea access
to the rest of the world, this potential
economic powerhouse (its
population of 160 million is greater
than that of Germany and France
combined) is facing severe
constraints in its overall development.
BCIM also benefits India and
Bangladesh in other ways. With natural
gas reserves of about 200 trillion
cubic feet, the largest in the AsiaPacific, Bangladesh could become
one of the major energy exporting
countries. Yet, today it imports 500
MW of electricity from India and is
planning to import an equal amount
from Myanmar. Tourism too will get a
boost. Bangladesh attracts less than
one million foreign tourists in a year.
For Indias north-eastern States, the
figure is less than 2,00,000. Contrast
this to the fact that Vietnam attracts 8
million, Cambodia 5 million, and
Thailand 26 million foreign tourists
annually.
During Mr. Xis visit to Islamabad
in April 2015, China pledged to invest
$46 billion on CPEC roughly onefifth of Pakistans annual GDP. CPECs
main infrastructural corridor, running
over 3,000 km, will connect Kashgar
in Chinas Xinjiang province to the
Gwadar port in Pakistans Balochistan
province. India should welcome this
initiative. CPEC will no doubt boost
Pakistans progress and prosperity. It
will also help Pakistan tackle many
social and other internal problems,


including the menace of religious
extremism and terrorism. It is in Indias
vital interest to see a stable,
prosperous, progressive, united and
democratic Pakistan, which is at
peace with itself and also at peace
with all its neighbours.
However, CPEC in its present
form, unlike BCIM, does not
comprehensively capture the
benefits of regional cooperation. It
needs to be extended into
landlocked Afghanistan, which is in
urgent
need
of
national
reconstruction after several decades
of war. It should also be extended
into India through Kashmir and
Punjab, the two provinces which are
today divided between India and
Pakistan. Its linkage with the Indian
side of Kashmir is especially
important. At present, many in India
have objected to CPEC passing
through a part of Pakistan Occupied
Kashmir (PoK), on the ground that it
is disputed territory. We should know
that India is in no position to stop
CPEC. A better strategy would be to
turn this reality into an advantage by
proposing the construction of a subcorridor bringing CPEC into the
Indian side of Kashmir and beyond.
This will help make the disputed
India-Pakistan border in Kashmir
largely irrelevant, a solution that India
under Prime Minister Manmohan
Singh had been actively pursuing
with Pakistan.
Interconnecting CPEC, with its
extensions into Afghanistan and
India, and BCIM is not really a novel
idea. It is simply a 21st century version
of the 16th century road, built by
Shershah Suri, the Afghan emperor,
connecting what later became the
capitals of four countries
Bangladesh, India, Pakistan and
Afghanistan. As a new component of
this
regional
cooperation
architecture, the Iran-Pakistan gas
pipeline, which is already a part of

CPEC, should be extended into
India. New Delhi has until now
remained cool to this flagship
proposal by Tehran, partly due to
perceived security issues and partly
on account of American pressure.
However, with the likely thaw in
relations between Iran and the United
States after the Iran nuclear deal, and
with China playing the drivers role in
CPEC (and hence in a position to
exert pressure on Islamabad), the
Iran-Pakistan-India gas pipeline can
indeed become a reality. Thus, the
CPEC-BCIM interconnection has the
potential to immensely bolster Indias
energy security both on the western
and eastern flanks.
Indian critics of BCIM and CPEC
state that China cannot be trusted,
and cite the divergent positions of
the two countries on Arunachal
Pradesh and PoK. I firmly believe that
Indias concerns can be better
addressed by constructively
engaging, rather than by trying to
confront, China. Mutually beneficial
regional cooperation builds trust, and
trust in turn helps nations resolve their
disputes amicably. Moreover, when
two big nations such as India and
China cooperate in a regional
cooperation framework, it generates
confidence among other countries in
the neighbourhood. They become
crucial stakeholders in making India
and China stable and irreversible. It
may also be noted here that Chinas
stakes in cooperating with India have
become higher because of its slowing
economy.
Recent months have produced
three encouraging signs of an IndiaChina convergence on the issue of
regional cooperation. In the joint
statement issued after Mr. Modis visit
to China in May this year, the two
sides welcomed the progress made
in promoting cooperation under the
framework of the BCIM. Second,

Beijing has expressed its willingness
to work with India to explore the
synergy between its own 21st
Century Maritime Silk Road plans and
Indias Mausam project with a view
to addressing New Delhis strategic
concerns and gaining common
benefits. Third, India has become an
important founding member of the
Beijing-promoted
Asian
Infrastructure Investment Bank,
which can fund BCIM, CPEC and
other projects. Hence, the emerging
regional cooperation agenda in South
Asia, if pursued with sagacity and
sincerity, promises to become a winwin game promoting development
and security for all.
A new edifice
for reservations
The massive mobilisation of
Patels in Gujarat in their agitation for
their inclusion in the caste-based
reservations scheme as Other
Backward Classes (OBC) raises vital
questions on affirmative action. For
decades, political parties, the media
and society at large have avoided
serious debate on the promotion of
equal opportunity in an iniquitous,
caste-ridden society practising
discrimination by birth for centuries.
All societies face serious challenges
on account of discrimination and
institutionalised inequality. The
United States has its AfricanAmericans and American Indian,
Europe has its Gypsies, Australia has
its Aborigines, and China has its nonHan minorities. But nowhere in the
world are inequality by birth and
moral neutrality to such discrimination
so institutionalised as in Indian
society. Centuries of artificial division
of society into hundreds of castes, the
denial of education for all but a few
upper castes, an unbreakable
linkage between caste and
occupation, institutionalised
81


untouchability and absurd notions of
impurity, the long-entrenched
tradition of endogamous marriages
within a sub-caste, and serious
prejudice against mixed marriages
are all that have made the Indian caste
system the most heinous, oppressive
and intractable form of discrimination
and inequality by birth.
Even a cursory understanding
of our society exposes the link
between caste and poverty, and the
denial of opportunity based entirely
on circumstances of birth. The future
of a vast majority of children born in
our society can be reasonably
predicted at the time of birth merely
by assessing the familys economic
status, parental education and caste.
The childs innate ability, ambition
and hard work, in most cases, are
irrelevant to her future. Not only is this
an unjust, oppressive monstrosity in
this day and age, but also a large
majority of the nations gene pool is
also wasted by this denial of
opportunity, and the nations state of
poverty and backwardness are
perpetuated.
Given
these
circumstances, caste will have to be
an important factor in determining
eligibility for affirmative action
policies. However, the unimaginative
way in which reservations have been
implemented has led to several,
undesirable consequences.
Most of the benefits of
reservations have gone only to a few,
better educated, well-off elites
among the communities eligible for
reservations. When you see the
background of youngsters recruited
to the civil services, or those admitted
to medical schools, the Indian
Institutes of Technology, the Indian
Institutes of Management, national
law schools or other courses that give
real opportunities of vertical mobility,
we see a pattern emerging. Though
reservation is applicable to the poor
and the rich, or the illiterate and the
82
educated in caste groups equally, in

reality, most benefits accrue to the
children of those who already have
the advantages of education, career
and wealth. In most selections to/in
premier institutions in higher
education or recruitment to high-end
jobs, it is the children of Indian
Administrative Service, Indian Police
Service officers and other senior
officials, the progeny of Members of
Legislative Assemblies (MLA),
Members of Parliament (MP) and the
other political elite, and the offspring
of successful professionals and
businessmen who dominate the
scene in communities eligible for
reservations.
There are also several poor and
semi-literate families among castes
not categorised as SCs or OBCs.
When a child in such a family is
overtaken by an obviously wealthy
child enjoying caste reservation, the
resentment created has a snowballing
effect. This caste polarisation is
accentuated by the political
mobilisation of caste groups for
voting. Given this complex process,
short-sighted politicians and castebased leaders can easily provoke
primordial loyalties and arouse
animosities based on caste. We have
seen many instances of caste
mobilisation for and against
reservations. In recent years, the JatGujjar-Meena agitations in Rajasthan
are too well known to bear repetition.
Now, the agitation of Patels, the
largely
successful
and
entrepreneurial community in
Gujarat, one of Indias most vibrant
States, only illustrates the need for
rationalising reservations.
First, while caste will continue
to be the mainstay of reservation
policies, the benefits should flow to
the vast majority of underprivileged
children from deprived castes; not to
a few privileged children with a caste
tag. Families of public officials of a
certain rank IAS, IPS, other Central

and State civil services, present or
former MLAs, MPs, other senior
politicians certain high income
professionals like physicians,
chartered accountants, managers
above a certain rank in the private
sector, and businessmen and others
above a certain income should be
dis-reserved. In other words, once
they have received a significant
advantage of reservations, they
should be able to ensure
opportunities for their children and
vacate the space for the truly
disadvantaged children in their own
caste groups. The argument that
financial or professional success does
not end discrimination, and therefore
they should forever enjoy reservations
is fallacious and self-serving. The logic
of reservations is that educational and
employment opportunities will
reduce discrimination in a modern
economy. The state has only the
power to give these opportunities. If
education, job and income do not
mitigate discrimination, then the
rationale for reservation collapses. If
reservations do help in upward
mobility, then what more can we
expect in life other than an IAS, IPS
officer, MLA, MP or a cardiac
surgeon? It is easy to identify families
which have substantially benefited
from reservation by virtue of position,
rank, profession, education,
childrens school and income. Once
these families are dis-reserved, the
truly poor and disadvantaged
sections
among
reserved
communities will get a helping hand
in both higher education and jobs.
Second, we have to address the
anger and aspirations of poor families
among unreserved communities.
Jats, Patels and other obviously
successful communities who are poor
are easily angered by what they see
as an unjust system. With the Supreme
Court ruling of 50 per cent ceiling on


reservation quotas, no further
reservation is possible. But intelligent,
creative, fair and practical ways of
giving the poorer children among OCs
a helping hand are possible and
necessary. For instance, parental
education and the school the child
attended are two sure indicators of
poverty and the backwardness of a
family. If parents have not had
education beyond school, and if the
child goes to a government school or
a low-end, ramshackle private school,
it is a sure sign of a lack of adequate
opportunity. Such a child, however
bright, cannot compete with the
privileged son of a high official or
wealthy doctor going to an
expensive private school. And yet,
our so-called merit system treats a
90 per cent score of the privileged
child as better than the 80 per cent
score of a poor girl in a rural school. If
reasonable weightage is given in
marks to such underprivileged
children in the category of OC an
addition of marks decided by a group
of experts it will give added
opportunity to poor OCs without
raising reservation quotas. At the same
time, true merit is not compromised
and there is always an aspirational
level they have to meet. Third, no
child with ability and desire should
ever be denied opportunities for
higher education on account of
poverty or birth. Scholarships, free
tuition, soft loans and other
mechanisms must be strengthened,
so that a bright child can reach for
the stars irrespective of his or her
familys social or economic status.
Once these three steps are in
place, most of the distortions in the
reservation policy will vanish. There
will be far greater harmony and little
incentive to polarise society or
provoke primordial loyalties. Most of
all, the really disadvantaged will have
a genuine opportunity to rise to their
potential. Unfulfilled potential is the

greatest sin in our society. Once we
eliminate much of this scourge, we
can reduce reservations by one or
two per cent each year. Within a
generation, discrimination by birth
will be a thing of the past, and
reservations will not be necessary.
Simultaneously, the state can
encourage market mechanisms for
equal opportunity in the private
sector.
Europes refugee crisis
Ipity the poor immigrant, who
wishes hed stayed at home, sang the
American folk-singer Bob Dylan. That
verse today finds extra resonance in
the scarring images of forced human
displacement across treacherous sea
and land routes into the promised
land of Europe. Thousands leave
every day from the war-ravaged and
economically broken countries of
northern Africa, Syria and West Asia.
The harrowing images of mass death
captured by the media the most
recent, the 800 people feared
drowned when the boat they
travelled in capsized in the Libyan
waters south of the Italian island of
Lampedusa in April, or the 71 fleeing
Syrians found dead in a truck in
Austria last week point to the
magnitude of the human catastrophe
that is unfolding across this part of
the world. The statistics on recent
migration are staggering. According
to the UNHCR, the United Nations
refugee agency, 59.5 million people
were forcibly displaced in 2014, a
figure that rose sharply in 2015. A
record number of 1,07,500 migrants
reached the borders of the European
Union last month. The Migrants Files,
a collaborative project of journalists,
claims the number of refugees who
died or went missing while making
the crossing is 3,016 this year alone.
Between 2000 and today the number
is 30,817.
A practical response to the

refugee crisis has not, regrettably,
been forthcoming from the
governments of those countries most
affected by the recent influx, namely
those of the European Union and
Britain. They have tried to turn the
focus on criminal trafficking rings that
conduct risky refugee escape
operations, even as they tighten their
own borders. By contrast, there is the
laudable spirit shown by
organisations, groups that have
conducted perilous rescue
operations on the high seas, and
provided refugees shelter and timely
support despite their constrained
capabilities and remit. The political
and economic destabilisation of
countries from where the refugee
flow is the greatest those in West
Asia, Libya and Syria are due in
large part to western military
intervention carried out on the
strength of promises to bring
democracy to peoples portrayed as
the victims of totalitarian rule. Not only
has that promise been belied, the
doors have been closed on people
who now desperately seek to escape
the anarchy and civil breakdown of
those countries, which were once
relatively stable. A scheme of
mandatory quotas to take in refugees,
proposed by the European
Commission, has met with stiff
opposition from several memberstates. Germany has given asylum to
over 200,000 refugees last year, and
Britain to just 32,000. The EU and
Britain must adopt a more humane
and responsible asylum and
immigration policy on the refugee
crisis or be consumed by it.
Chasing black
money with UN help
The promise made by the
Bharatiya Janata Party-led National
Democratic Alliance in the run-up to
the general election in 2014, that if it
83


won it would bring back all Indian
black money. After the party and the
coalition won, the move to create a
special investigative team of former
judges and current regulators to find
the concealed assets, estimated to be
as much as $2 trillion, and the
revelation of some names of Indian
offenders have not led to much.
Neither the details of the efforts made
nor the responses of the countries
concerned are in the public domain.
The names, which have been
revealed in bits and pieces, are
mostly of relatively unknown people,
who in turn have denied that their
money is black. All this reminds me
of the tough negotiations on the
subject in Vienna, Austria, in 2003 as
a vital part of the United Nations
Convention Against Corruption
(UNCAC), and which were very
revealing.
The outcome was not very
satisfactory from the point of view of
the countries, mostly the developing
ones, which had sought a framework
to locate and return these assets to
their legitimate owners. But there
exists a body of provisions in the
convention, extracted through hard
negotiations, which can be applied
to recover black money. If
implemented in good faith, the
convention should be of immense
value to countries where corrupt high
officials have plundered natural
wealth, and where new governments
badly need these resources to
reconstruct and rehabilitate their
societies. The then Secretary General
of the UN, Kofi A. Annan, expressed
the hope that it makes a major
breakthrough by requiring Member
States to return assets obtained
through corruption to the country
from which they were stolen.
The rich countries hit upon the
idea of UNCAC to castigate the
developing countries for misusing aid
84
money through corrupt practices.

[UNCAC complements another
instrument, the United Nations
Convention against Transnational
Organized Crime, and introduces a
comprehensive set of standards,
measures and rules that all countries
can apply in order to strengthen their
legal and regulatory regimes to fight
corruption.] They wanted to
introduce conditionalities of good
governance to block aid to certain
countries and to limit aid to others. In
a strong reaction, the issue of black
money being held by certain
developed countries was brought in
to show that the keepers of black
money were as guilty as those who
had deposited it abroad.
As the chairman of the working
group, I was confronted with the
issue of reconciling the legitimate
interests of the countries (which
demanded the return of their assets
illegally amassed abroad by their
citizens) with the legal and
procedural safeguards of the
countries that had a vested interest
in retaining the assets in their banks.
While the first group of countries
clearly argued that the assets should
be returned as soon as their
ownership was established, the
second group of countries had
concerns about protecting the rights
of the depositors and the assurances
of secrecy given.
The first breakthrough came
when the group established asset
recovery as a fundamental principle
of the convention. Then it was only a
matter of laying a framework, in both
civil and criminal law, for tracing,
freezing, forfeiting and returning
funds obtained through corrupt
activities. The provisions finally
accepted were for supporting the
efforts of the countries to recover the
assets and for sending out a message
to corrupt officials that they would
not have a safe haven where they

could stash away the fruits of their
corrupt practices.
An important sticking point was
the insistence of the assets holding
countries that it was not enough for
the countries making claims to
establish that the assets belonged to
them. They had to establish also that
the assets were illegally obtained
before they were transferred to a
foreign country. These countries said
that it would be difficult to obtain
ironclad evidence to prove this
because of the very nature of the
accretion of assets by people in
power.
Some of the relevant provisions
of the convention are crucial to the
question of recovery of assets. It
provides that each state party shall
take such measures as may be
necessary to permit its competent
authorities to give effect to an order
of confiscation issued by a court of
another state party. It also provides
for the provisional freezing or seizing
of property where there are sufficient
grounds for taking such actions in
advance of a formal request being
received. The countries that hold
assets have been given special
responsibilities such as enhanced
scrutiny of accounts deposited by
those entrusted with prominent
public functions to detect suspicious
transactions. They are also required
to share information with the
competent authorities of another
state, when necessary, to investigate,
claim and recover proceeds of
offences.
The UN, through its Office on
Drugs and Crime, which leads the
fight against illicit drugs and
international crime, has been given
the responsibility to implement the
convention, particularly its assets
recovery provisions. But how
effective UN assistance is in legal


battles in which the holding countries
have a vested interest is uncertain.
The negotiations showed that they
would not part with these assets
easily and that they would fight tooth
and nail legally before any assets
were returned.
In the case of India, difficulties
may have arisen not in establishing
that the sums amassed abroad belong
to India, but in proving that the assets
were illegally obtained. Our
authorities may do well to use the
records of the debate in Vienna to
prove the strength of the argument
by many countries that proof of
illegality of acquisition should not be
insisted upon. Strictly speaking, this
had no relevance to the issue of the
return of assets as long as it was
evident that they belonged to the
countries claiming them. This
condition was accepted only
because of the insistence that
banking regulations in many countries
would not permit the return of assets
without this. The actual recovery since
the adoption of the convention has
fallen far short of expectations. Only
$276.3 million of assets were
recovered in 2006-2009 and $147.2
million in 2010-2012 as against the
estimated $20 billion to $40 billion
stolen every year. In view of this, the
parties to the convention have set up
a working group to assist in the
implementation of the assets recovery
provisions of the convention.
But the unspoken truth is that
the countries making the requests are
not inclined to expose the depositors
by revealing the modalities of corrupt
practices and the countries that have
been requested have a vested
interest in not returning the assets to
their rightful owners. A disconnect
persists
between
national
commitments and the actual
behaviour of countries at the
international level.
1965: resilience in war,

deftness in diplomacy
The India-Pakistan war of 1965
was one which altered the fates of
both the countries and began the
new Great Game in Asia. One of its
biggest outcomes was the sealing of
the China-Pakistan entente and New
Delhis realisation of a two-front
strategic threat, with a heightened risk
of collusion between its two
neighbours. The war of 1965 was a
test for the political leadership of
Prime Minister Lal Bahadur Shastri,
who was still finding his feet post his
predecessor Jawaharlal Nehrus
death. He was under intense scrutiny
from the international community as
India was still recovering from the
scars of 1962, while also battling an
acute food crisis. The National
Conference leader Sheikh Abdullahs
mission to find a solution to the
Kashmir crisis was aborted after
Nehrus death and historians believe
Pakistan felt emboldened to strike for
the cause of Kashmir, sensing India
was at its most vulnerable.
The blueprint was in the form
of a four-phase plan: a probing
encounter to check the Indian
response in the Rann of Kutch; an
engineered uprising in Kashmir via
infiltrators (Operation Gibraltar);
followed by a sophisticated Patton
tank assault in Punjab aimed at cutting
of Jammu and Kashmir; and finally,
the, capture of Amritsar and many
parts of the Indian territory, to be
exchanged for Kashmir. General
Mohammed Musa, the then Pakistani
Army Chief, has recorded in his book
My Version , the Kashmir Cell, a highly
secretive group put together by the
Pakistani Army in early 1964, directly
reporting to the President, had by
now concluded that it was time for
Pakistan to take some overt action for
reviving the Kashmir issue and
defreezing, what from Pakistans
point of view was a dishearteningly

quiet and stable situation in Kashmir.
While surprised at first, India
fought back. In this war, fought
between August and September
1965, India captured 1,920 sq. km of
Pakistani territory while Pakistan
captured 550 sq. km of Indian
territory, as per the government
records. Officially declared
inconclusive, the war results
ultimately did favour India. Fifty years
on, there is still a lot left to be
understood on the intense diplomatic
manoeuvring that New Delhi
undertook to emerge on the right side
of history. Most prominent among this
is how India managed Chinese
moves, aimed at pushing Pakistans
case both during the war and
negotiations in the United Nations
Security Council (UNSC), patterns
which ironically are followed till date.
Pakistans
strengthened
relationship with China had caught
the attention of the world powers at
the height of the Cold War. After
concluding a border agreement with
China in March 1963, through which
it handed over disputed territories in
Jammu and Kashmir to China,
Islamabad had openly began to court
Beijing. Gauhars memoirs of Ayub
recount a series of hectic diplomatic
consultations between Pakistan and
China in the lead up to 1965. First,
Chinese Premier Zhou Enlai had made
a state visit to Pakistan in February
1964. He then laid out the red carpet
for Ayub in March 1965. Zhou Enlai
later returned to Pakistan in June 1965
and there was speculation, writes
Gauhar, that it was the Chinese tactics
of guerrilla warfare that were
deployed by Pakistan in the attack
on Kashmir.
The Chinese were only too
happy to come to Pakistans rescue if
one looks at the details that emerge
from the records of Gauhar as also
85


from the war diaries of the then Indian
Defence Minister Y.B. Chavan ( 1965
War: The Inside Story , by R.D.
Pradhan). They outline that Chinese
Foreign Minister, Marshal Chen Yi, had
already met with Foreign Minister
Zulfikar Ali Bhutto in Karachi on
September 4, 1965 and assured
Pakistan support against Indias
armed provocation in Kashmir.
According to Chavans war diaries,
China had previously, on August 27,
accused the Indian Army of
committing acts of aggression on the
border of Sikkim and Tibet in July and
August, accusations that were
rejected by India. By September 8, it
renewed these accusations claiming,
India must bear responsibility of all
consequences arriving therefrom,
which India again rejected and called
for a neutral and independent
observer to visit the China border and
look at these complaints.
C.P. Srivastava, author of the
biography Lal Bahadur Shastri: A Life
of Truth in Politics , notes that by now
Prime Minister Shastri had calculated
that China was unlikely to launch an
attack like 1962 because they had no
immediate objective of their own to
achieve and would not risk a war
with the U.S. or draw USSR into the
South Asia. India had already sought
the offices of the U.S. and USSR to
help tackle an impending attack from
China. So, Srivastava argues that, with
these calculations in mind Shastri
reiterated Indias offer of joint
inspection to assuage Chinese
complaints.
While the Chinese ultimatum
was set to expire at midnight on
September 19, Chavans notes
indicate that the Chinese had already
begun moving their troops towards
the Sikkim border on September 18.
In a new move, they extended their
deadline of dismantling of military
structures by 72 hours, knowing that
86
a UNSC resolution demanding a

ceasefire would be tabled by
September 20 and that continuing
the pressure on India would bolster
Pakistans case, says Chavan.
It was later revealed that China
was pushing Ayub Khan to continue
the Indo-Pak. war. Gauhar says Ayub,
who flew to Beijing for a secret
meeting on September 19-20, was
assured by Zhou Enlai of continued
support for as long as necessary.
However, it had become clear to
Ayub and Bhutto that if Pakistan
wanted full Chinese support it had to
be prepared for a long war and the
loss of important cities like Lahore,
which they were not prepared for. It
was this realisation that led to Pakistan
accepting the ceasefire proposed by
the UNSC on September 22 1965
ending hostilities and making way for
the Tashkent Agreement.
In retrospect, 1965 was a
watershed
event
for
the
subcontinent. For India, it banished
the ghosts of 1962, and proved to be
a litmus test for its capabilities both
on the battlefront and the diplomatic
chessboard. The war also established
that the China-Pakistan entente was
now a reality India will have to live
with and battle, both militarily and
politically, for years to come.
Sport, politics and business
Keeping politics and sport
separate is easier said than done. In
the Indian sub-continent especially,
sport is heavily coloured by
nationalism: for large sections of a
games fans, every win on the field is
an occasion for display of national
pride, and every loss a cause for
national despair. Cricket matches
between India and Pakistan have
more to do with jingoism and less to
do with sport as suspense-filled
drama and spectacle. Some of the
flag-waving and chest-thumping
patriotic fervour on show is inevitable

as long as sport at the highest level is
played in national colours. As George
Orwell wrote, even a leisurely game
like cricket, demanding grace rather
than strength, can cause much ill-will
between the competing nations. In
such a context, the calling off of a
cricket series between India and
Pakistan is best seen as a
disappointment for genuine cricket
fans and not as a setback to bilateral
relations. But between two nations
which otherwise find it difficult to
engage with each other in normal,
structured dialogue, regular sporting
relations not just a rare, one-off
cricket series can do a lot of good.
Sport would then stop being a war
by non-violent means.
However, there are factors other
than the politics surrounding IndiaPakistan relations at play in a cricket
series involving the two countries.
There has not been a full bilateral
series since the terror attacks in
Mumbai in 2008 although Pakistan
did visit India for a short, limited-over
series between December 2012 and
January 2013. But the decision to
revive cricket ties had little to do with
fostering better relations or satisfying
fans by promoting a marquee rivalry.
Pakistan last year agreed to the
International Cricket Councils
revamp, which increased the powers
of the Indian, English and Australian
boards, on the condition that it would
be part of bilateral series with all the
full members. Key to its change in
stance was the promise of financially
lucrative cricket with India: the then
Pakistan Cricket Board (PCB)
chairman Najam Sethi had said, Its
very important to play India because
it generates a major chunk of money.
But the memorandum of
understanding that the two boards
had reportedly signed to play six
bilateral series between 2015 and


2023 faced hurdles much before
those created by the recent
diplomatic tension. The host
broadcaster for the proposed series
in December 2015 was TEN Sports,
which has a deal with the PCB for
home series. However, reports of the
network having ties with the Essel
Group, which not only has an
adversarial relationship with the BCCI
but has also threatened to form a
breakaway international league,
created issues. Ultimately, what
would weigh with the BCCI and the
PCB is not the interest of jingoists or
fans, but the power play within the
ICC, and the irresistible draw of
commercial sponsorship.
Welcome step on oilfields
The government has taken a
refreshing and progressive approach
with respect to the unutilised natural
resources locked away in the 69 small
and marginal oilfields lying with the
state-owned exploration agencies.
The Union Cabinet has not only
approved the auction of these
oilfields to private, and even foreign,
companies, but also initiated a new
approach in the licensing and
proceeds-sharing mechanisms. The
first step was to move from a profitsharing mechanism to a revenuesharing one. This may appear to be a
technical difference, but the effect
on the ground is likely to be huge.
The profit-sharing approach meant
the government had to pore over the
cost details of those undertaking the
exploration, often leading to
extended delays and disputes. The
revenue-sharing approach is simpler,
and is likely to earn the government
more money. Under the new plan,
companies will be allowed to sell
crude oil or natural gas at market
prices, without any interference from
the government. The revenue and
royalty-sharing mechanism will be
pegged at this market rate. If
companies are forced to sell at

below-market prices, then the
government will still get a royalty share
pegged at the market rate. If,
however, the company manages to
sell at higher-than-market prices, then
the sharing mechanism will be
pegged to this higher price. Thats a
win-win for the government: less
oversight and an assured minimum
income.
The other welcome step has to
do with the licensing method. At
present, companies need a separate
licence to exploit each of the
different hydrocarbon resources in a
given field. Under the new scheme,
they will receive a unified licence for
all hydrocarbons, including
conventional ones such as oil and gas,
and non-conventional ones such as
shale oil and shale gas. This goes a
long way in the governments move
towards enhancing the ease of doing
business. Apart from that, the simple
act of auctioning oilfields is a step
towards weaning India away from oil
imports. The Oil Ministry says there
are hydrocarbon resources worth
Rs.70,000 crore lying unutilised in
these fields. At the current crude
price of $45 a barrel, the production
of hydrocarbons from these new
fields will be worth around Rs.3,500
crore a year. This may seem like a drop
in the bucket compared to Indias
total hydrocarbon imports of Rs.7.6
lakh crore in 2014-15, but every little
drop counts. So far, these progressive
steps are limited to the 69 oilfields
on the block, but hopefully they will
be extended to all the oilfields in the
country. With growth in oil
production slowing and natural gas
production contracting, there is a
sore need for steps like these to boost
domestic production.
Friendly signal
The Union governments
decision to waive, through an
amendment to the Income Tax Act,

minimum alternate tax (MAT) liability
on capital gains made by foreign
portfolio investors (FPIs) and Foreign
Institutional Investors (FIIs) is a
welcome move, especially from their
point of view. It is in line with the spirit
of the promise in the BJPs manifesto
for the 2014 general elections to put
an end to tax terrorism. The
announcement and the subsequent
instructions issued to the tax
department to keep in abeyance, till
the appropriate amendment is
carried out, pending proceedings
and to not pursue the recovery of
outstanding demands in such cases
is a big relief to FIIs. In these times of
heightened uncertainty in the global
financial markets, when risk appetite
of investors is especially low, the
governments decisions would serve
to restore some of the lost faith of
investors in India as an investment
destination that doesnt resort to
retrospective taxation. But to
further demonstrate its resolve, the
government must also move to rein in
the tax department, which had
served notices on 68 FIIs for MAT
dues adding up to about Rs.600 crore
on the basis of a direction from the
Authority for Advance Rulings in
2012 to a Mauritius-based investor
Castleton. In 2010, this investor had
approached the Authority seeking a
confirmation that it was not required
to pay MAT on a transaction it was
planning to execute. The department
has been in too many disputes with
global companies such as Vodafone
and Cairn, some of which have even
dragged India into international
arbitration. It has been said that
Indias image as an investment
destination has suffered as a result.
The same way as the
government has taken a position on
and dispelled the uncertainty around
MAT, it must quickly make up its mind
and come out with an announcement
87


on another outstanding issue,
concerning participatory notes (PNotes). Indias indecision on this
matter is affecting FIIs. The Supreme
Court-appointed
Special
Investigation Team has asked
regulators to put in place regulations
to identify individuals holding PNotes and take other steps to curb
black money and tax evasion through
the stock market route. P-Notes are
offshore derivative instruments that a
large number of FIIs use to park funds
in the equity market without
disclosing their identity to Indian
regulators. The tax authorities suspect
that a huge chunk of these
investments could in fact be Indian
money masquerading as foreign
funds. The government had said it
wont immediately act on the
recommendation after the stock
markets reacted sharply to news on
it. But sooner or later it will have to
decide what has to be done, given
that action against black money too
was a big election-time promise of
the BJP. The MAT experience shows
that sooner is better than later.
Seventh Pay
Commission is no ogre
The report of the Seventh Pay
Commission (SPC) is set to be
released soon. The new pay scales
will be applicable to Central
government employees with effect
from January 2016. Many
commentators ask whether we need
periodic Pay Commissions that hand
out wage increases across the board.
They agonise over the havoc that will
be wrought on government finances.
They want the workforce to be
downsized. They would like pay
increases to be linked to productivity.
These propositions deserve careful
scrutiny. The reality is more nuanced.
Critics say we dont need a Pay
Commission every ten years because
salaries in government are indexed
88
to inflation. At the lower levels, pay

in the government is higher than in
the private sector. These criticisms
overlook the fact that, at the top-level
or what is called the A Grade, the
government competes for the same
pool of manpower as the private
sector. So do public sector
companies and public institutions
banks, public sector enterprises,
Indian Institutes of Technology (IITs),
Indian Institutes of Management
(IIMs) and regulatory bodies
where pay levels are derived from
pay in government. The annual
increment in the Central government
is 3 per cent. Adding dearness
allowance increases of around 5 per
cent, we get an annual revision of 8
per cent. This is not good enough,
because pay at the top in the private
sector has increased exponentially in
the post-liberalisation period.
A correct comparison should, of
course, be done on the basis of cost
to the organisation. We need to add
the market value of perquisites to
salaries and compare them with
packages in the private sector. We
cannot and should not aim for parity
with the private sector. We may settle
for a certain fraction of pay but that
fraction must be applied periodically
if the public sector is not to lose out
in the competition for talent. True,
pay scales at the lower levels of
government are higher than those in
the private sector. But that is
unavoidable given the norm that the
ratio of the minimum to maximum pay
in government must be within an
acceptable band. (The Sixth Pay
Commission had set the ratio at 1:12).
Higher pay at lower levels of
government
also
reflects
shortcomings in the private sector,
such as hiring of contract labour and
the lack of unionisation. They are not
necessarily part of the problem with
government.
Perhaps the strongest criticism

of Pay Commission awards is that they
play havoc with government finances.
At the aggregate level, these
concerns
are
somewhat
exaggerated. Pay Commission
awards typically tend to disrupt
government finances for a couple of
years. Thereafter, their impact is
digested by the economy. Thus, pay,
allowances and pension in Central
government climbed from 1.9 per
cent of GDP in 2001-02 to 2.3 per
cent in 2009-10, following the award
of the Sixth Pay Commission. By 201213, however, they had declined to
1.8 per cent of GDP.
The medium-term expenditure
framework recently presented to
Parliament looks at an increase in pay
of 16 per cent for 2016-17
consequent to the Seventh Pay
Commission award. That would
amount to an increase of 0.8 per cent
of GDP. This is a one-off impact. A
more correct way to represent it
would be to amortise it over, say, five
years. Then, the annual impact on
wages would be 0.16 per cent of
GDP. The medium-term fiscal policy
statement presented along with the
last budget indicates that pensions
in 2016-17 would remain at the same
level as in 2015-16, namely, 0.7 per
cent of GDP. Thus, the cumulative
impact of any award is hardly
something that should give us
insomnia.
The Fourteenth Finance
Commission (FFC) estimated that the
share of pay and allowances in
revenue expenditure of the States
varied from 29 per cent to 79 per
cent in 2012-13. The corresponding
share at the Centre was only 13 per
cent. The problem arises because
since the time of the Fifth Pay
Commission, there has been a trend
towards convergence in pay scales.
The FFC, therefore, recommended


that the Centre should consult the
States in drawing up a policy on
government wages.
It is often argued that periodic
pay revisions would be alright if only
the government could bring itself to
downsize its workforce by at least
10 to 15 per cent. From 2013 to 2016,
the Central government workforce
(excluding defence forces) is
estimated to grow from 33.1 lakh to
35.5 lakh. Of the increase of 2.4 lakh,
the police alone would account for
an increase of 1.2 lakh or 50 per cent.
What is required is not so much
downsizing as right-sizing we need
more doctors, engineers and
teachers. Downsizing of a sort has
happened. The Sixth Pay
Commission estimated that the share
of pay, allowances and pension of the
Central government in revenue
receipts came down from 38 per cent
in 1998-99 to an average of 24 per
cent in 2005-07. Based on the
budget figures for 2015-16, this share
appears to have declined further to
21 per cent.
A better idea would be to
conduct periodic management
audits of government departments
on parameters such as cost
effectiveness, timeliness and
customer satisfaction. Improving
service delivery in government is the
key issue. Periodic pay revision and
higher pay at lower levels of
government relative to the private
sector could help this cause provided
these are accompanied by other
initiatives. The macroeconomic
impact is nowhere as severe as it is
made out to be.
Emissions that will sting
future generations
Since the Industrial Revolution,
in the late 18th century, fossil fuels
such as coal and oil have been
extracted from the Earth and burned
in engines to feed economic growth;
a process that has led to the emission

of greenhouse gases (GHGs). Over
the past 150 years, the atmospheric
concentration of carbon dioxide, a
very long lasting GHG, has risen by
more than a third, along with an
increase of other GHGs such as
methane, nitrous oxide and
chlorofluorocarbons. The first half of
this increase took place over two
centuries, from the start of the
Industrial Revolution to around 1973,
but the second half of the increase
occurred much more rapidly, in less
than four decades. Human activity has
already made the world warmer by
0.8 degrees Celsius than preindustrial times. Three main features
of this phenomenon are significant for
making ethical arguments about
climate change.
Most GHG emissions come from
countries that have become wealthy
as a result of industrial development.
Roughly two-thirds of the emissions
are from the United States, Europe,
and Japan, which have about a
seventh of the worlds population and
half its wealth. There is a correlation
between emissions and wealth, so
that countries that are wealthier
generally have higher emissions. The
average American has per capita
emissions of about 18 metric tonnes
each year compared to the average
Bangladeshi, who emits about half a
tonne of carbon dioxide each year.
Each countrys consumption pattern
points towards its emissions and in
general the poor tend to consume
much less than the wealthy. But there
are also wealthy nations, such as
Denmark, with per capita emissions
of 7.2 tonnes per year, where a
combination of national policy,
natural resources and lifestyle choices
have resulted in relatively low levels
of consumption.
There is also a distinction that
must be made between survival and
luxury emissions: the difference

between emissions from profligate
lifestyles and those associated with
energy uses for subsistence living. For
example, the emissions arising from
living in large, inefficient houses and
flying for frivolous reasons are quite
distinct from those associated with
burning wood for cooking. As
explained in the 2010 World
Development Report, carbon
emissions associated with providing
electricity to 1.6 billion people
currently without access would be
equivalent to switching fuel economy
standards for the 40 million sports
utility vehicles or SUVs in the U.S. to
those of cars in the European Union.
A second feature, which one
may term delayed effects , is that the
climate system itself is a slow-moving
animal, which means that it will take
several decades, if not a century or
longer, for impacts from GHGs in the
atmosphere to manifest themselves
fully: warmer oceans, melting ice, and
altered weather systems, which will
in turn generate other ecological
effects. Indeed, no matter what we
do now, it seems likely that the Earth
will warm by at least another degree
Celsius by the end of the century.
Delayed effects have two kinds of
implications. One is that people living
today are only now beginning to
experience the harmful effects of
GHGs emitted by people generations
past, but they have also reaped the
cumulative economic benefits of
growth and development. The
second implication is that since
greenhouse gases continue to
accumulate, actions taken today will
have consequences for future
generations. Delayed effects thus
points to an intergenerational
asymmetry between the emissions
and impacts, which raises a range of
complex ethical concerns.
A third feature, asymmetrical
89


impacts , relates to the fact that by
most accounts the poor, particularly
those living in developing countries,
will experience far worse
consequences from climate change
than the wealthy, especially those
living in rich countries. There is
growing evidence that the worst
effects of climate change will fall
disproportionately on those living in
sub-Saharan Africa, small islands in
the Pacific and Indian Oceans, and
deltaic regions of South and
Southeast Asia, Egypt and China. This
is due to geographic and economic
reasons. Many developing countries
are on small islands or encompass
low-lying coastal areas and other
regions that happen to be especially
vulnerable to natural disasters, which
will be exacerbated by climate
change. But perhaps more important,
they typically do not have the
resources to adapt to climate change
by such protective measures as
seawalls and embankments or by
extensive insurance arrangements.
Indeed, the most vulnerable people
will be those who lead subsistence
livelihoods in highly risk-prone areas.
Given these ethical considerations,
what is fundamentally at issue in Paris
at the Conference of Parties (COP21) will be discussed in future
columns.
OROP and after
Defence Minister Manohar
Parrikars announcement that the
government has decided to
implement the One Rank One
Pension scheme came as a huge relief
to the veterans of the armed forces
and also to those now in the services.
There remain some wrinkles that need
to be ironed out and gaps in clarity
that have to be filled. Most of the
doubts are bound to be put to rest
when the formal government order is
issued. Credit must be given to the
government for bringing a sense of
90
closure to an issue that has been

hanging fire for over 40 years. That
the Prime Ministers Office finally had
to step in after nearly three months of
wrenching agitations by the veterans
is a telling commentary on the
complicated nature of the issue and
the hardened, almost intransigent,
positions that had to be addressed.
Yet it must be said that the
government could have handled this
better. The same could be said about
the timing of the announcement too.
By dragging the issue to a point nearly
coinciding with the run-up to the
Bihar Assembly elections, Prime
Minister Narendra Modi risked
pushing it squarely into the political
arena, but he acted deftly. In the time
it took for the government to take a
decision, the Congress, the Aam
Aadmi Party and sections of the Left
were raring to move into the breach
by beating a path to Jantar Mantar
where the veterans were on a hunger
strike in a determined attempt to
goad the government into action. The
veterans should not be allowed to
become tools in the hands of
politicians. Indeed, by fielding a
former Defence Minister to mount a
nit-picking attack after the
announcement was made, the
Congress showed a certain inability
to grasp the reality. The fact is that
the Congress did not come through
when it could have; instead it cited
administrative, technical and funding
difficulties.
Now that most of the
expectations on OROP have been
met, a spirit of give-and-take should
inform the rest of the engagement.
Maximalist positions should be
shunned. A pension review every
year is desirable, but it should be
asked if it would really be practical.
The announcement of a singlemember judicial committee to
examine the interests of retirees may
not be the ideal way forward. Given

the complexities involved, the
government should rather consider
an appropriate advisory committee to
expedite the process. It would be a
pity if the opportunity is not utilised
to close the perceived gap between
the bureaucracy and the armed
services in terms of the compensation
package. The government must
meanwhile remain determined to
discourage
any
unrealistic
expectations and demands that may
now come up from other sectors
following the OROP announcement.
The Syrian catastrophe
The shocking image of the
lifeless body of Aylan Kurdi, the
three-year-old boy who drowned
while fleeing Syrias Kobani, was a
tragic reminder of the humanitarian
crisis in the West Asian country. Aylan
and his family had been making a
perilous journey through the
Mediterranean Sea to reach the Greek
island of Kos. They were not alone.
Thousands flee Syria every day as it
grapples with one of the greatest
humanitarian tragedies in recent
history. More than two lakh people
have already been killed in the fouryear-long civil war, according to the
United Nations. Around four million
people have been made refugees.
Millions of other Syrians are trapped
in the war in which nobody appears
to be winning, forcing more people
to flee the country. Aylan Kurdi was a
victim of this situation. After the
image of the boy lying face-down on
a Turkish beach surfaced, several
European governments, including
that of the United Kingdom, have
agreed to take in more Syrian
refugees. While such moves should
be welcomed on humanitarian
grounds, it cant be forgotten that the
policies of the very same European
governments towards Syria helped
cause the chaos in that country.


Ever since the Syrian civil war
broke out in 2011, there were no
meaningful international efforts to find
a political solution to the crisis.
Instead, regional powers turned Syria
into a geopolitical battlefield. Rich
Arab countries such as Saudi Arabia
and Qatar supported different rebel
groups against the regime because
they wanted President Bashar alAssad, an ally of Iran, to be toppled.
Turkey, driven by its regional
ambitions, also threw its weight
behind the rebels and kept open its
long border, through which fighters
could cross into Syria to join the war.
Western powers such as the U.S. and
Britain joined the regime change
chorus and offered support to the
rebels. This drive failed to oust Mr.
Assad, but has destabilised Syria,
leading to the rise of terror groups
such as Islamic State. Its already too
late now to find a political solution.
IS controls almost half the country
and it is trying to advance into areas
controlled by the regime. If that
happens, the humanitarian situation
in Syria will worsen, triggering a
further refugee exodus. To stop that
from
happening,
regional
heavyweights such as Turkey and
Saudi Arabia and their backers in the
West should reverse their policy
towards Syria. They should rein in the
rebels they bankroll and directly
engage with the Assad regime to
push for talks. Mr. Assad has to be
blamed for the excessive use of force
against his people. But he still
controls the most populous areas of
Syria and rules from Damascus, the
seat of power. Mr. Assad clearly has
to be an integral part of any future
plan for Syria.
India will emerge
as the investors choice
Since the beginning of 2015,
the global economy has been fraught
with tantrum episodes. These include
events like the shift towards

anticipated monetary policy
normalisation by the U.S. Federal
Reserve in March; the Greek debt
drama in June; further slide in global
commodity prices from July onwards;
and last but not the least, signs of
financial stress in emerging markets
triggered by the unexpected
currency devaluation by China in
August. To put things into
perspective, except for the
idiosyncratic Greek debt drama, the
other global crosscurrents are a
manifestation of tectonic shifts in the
world order. The realisation that
emerging markets are now slowing
down after enjoying unbridled
growth for more than a decade, along
with the expectations of a move by
U.S. central bank towards the first
interest rate hike in nearly a decade,
has spooked global investors.
India has not remained
unscathed as investor sentiments
here are generally susceptible to a
kneejerk reaction. Over the last one
month, the benchmark Nifty Index
has gone down by 8 per cent while
the rupee has become weaker
weaker by 3.1 per cent. However, I
am firmly of the opinion that, once
the dust surrounding negative global
sentiments settles down, investors will
start cherry-picking, with India
emerging as a default choice for
almost every global investor. The
Indian economy has made
phenomenal macro strides in the last
two years. Economic growth has
accelerated by 2.2 per cent even as
inflation has declined by 4 per cent.
The current account and fiscal
deficits have corrected by 3.3 per
cent and 0.5 per cent of GDP
respectively. The economy is better
protected than it was in 2013, with
the Reserve Bank of India (RBI)
augmenting its reserves by over $80
billion since mid-2013.
The favourable macro outlook

is not by accident. Policymakers over
the last two years have shown the
gumption to take tough decisions.
Curtailment in food inflation through
structural and tactical steps like
restrained adjustment to Minimum
Support Prices (MSPs), timely use of
buffer stocks, and efficient alignment
of food related Export Import (EXIM)
policy has proved to be a resounding
success. It is surprising that not many
commentators highlight this
important macro feat. With private
sector still being risk averse, the
government is deploying capital
expenditure for jumpstarting
investment and growth revival
despite the fiscal objective of
consolidation. Ministries like
Renewable Energy, Roads, Railways
and Micro, Small and Medium
Enterprises (MSME) seem to be on a
hyper-drive with strong capital
expenditure disbursals.
The direction of reform process
has been laid out with every quarter
adding towards incremental
progress. The success in clearing the
policy mess in Indias natural
resources (mines, spectrum, etc.) has
infused transparency and reliability
in government processes. Despite
labour being a State subject, the
government is laying the framework
for composite labour reforms. While
the Good and Services Tax (GST)
could not see the light of the day
during the recently concluded
Monsoon Session of the Parliament,
the framework seems to be in place
and I am confident that the bill will
get legislative approval sooner than
later. These steps have restored
confidence while giving an immense
boost to policy credibility.
In the words of RBI Governor
Raghuram Rajan, there is much to be
optimistic about, including the
massive investments that are starting
91


in infrastructure and the radical
changes in the financial sector. The
Indian economy is full of possibilities,
even as much of the world is mired in
pessimism. A country that is moving
structural levers of job creation, skill
development, and technological
innovation is bound to uplift
productivity in the longer run. To me,
India is a story that has started to play
out. So come countrymen, Invest in
India.
Cleaning coal
instead of wishing it away
The World Bank recently
announced that short of exceptional
circumstances, they would no longer
fund coal in developing regions. The
U.S. and other nations are also
contemplating, if not making, similar
choices, driven in part by concerns
about climate change. This view may
be impractical, if not myopic, given
that at least for India, coal isnt going
away anytime soon. Even with a very
high Renewable Energy (RE) future,
there will be an inevitable growth of
energy from base-load power
sources, which will likely be coal.
Coal is polluting, and studies by the
Centre for Science and Environment
(CSE), which recently came out with
a benchmarking exercise, point out
that many plants dont do very well in
terms of local air pollution. CSEs
head, Sunita Narain, mentioned that
as an environmentalist, she would
love to see coal power disappear, but
it is not likely to do so, and perhaps in
the short run there isnt an easy
alternative.
Commenting on such funding
restrictions, Coal India Limited
which received a World Bank loan to
help reorganise and improve
operations, and repaid the loan early
has said thank you, but we dont
need funding any more. But,
utilisation of coal continues under a
business-as-usual approach, which is
92
likely to be non-optimal and

inefficient. Use of less efficient and
even dirtier plants is not unique to
India. While India has strived for
better performance and larger and
more modern plants, Chinas initial
growth of coal power was based on
regional plants of a small size (often
under 50 MW), and it is only now that
these plants are being phased out
more over local air pollution concerns
than carbon per se. Of course, India
is in a different league than China
when it comes to carbon emissions
from coal power plants; data from
2012 indicate that coal usage led to
more than five times greater emissions
from China than India.
Better coal utilisation is at
multiple levels. If one is concerned
about carbon, then simple efficiency
improvements are key, like using less
coal for more output. This means
moving India away from its present
sub-critical coal power plants to
super-critical and ultra-super-critical
ones. This could reduce coal usage
by perhaps more than 15 per cent in
new plants. This by itself will help
reduce other pollutants. Reducing
local environmental impacts is an area
where power plants should be
helped, especially in relation to water
use and particulate emissions, not to
mention treatment of waste ash.
Global assistance for this would go a
long way in improving the quality of
life of Indians, and leave them better
off and willing to engage on broader
carbon reductions.
So called clean coal is under
development worldwide. But carbon
capture and sequestration is some
years away from commercialisation,
let
alone
competitive
commercialisation. Thus, cleaner
coal in the form of more efficient
coal plants requires innovation to
work well with Indian (high-ash) coal.
Such efforts need support, ranging
from technology, to policy support

and financing. Another need unique
to India is for innovative coal plants
that can better harmonise with varying
grid conditions. With limits to
hydropower growth, and little gas (let
alone cheap shale gas), Indias coal
plants will have to perform some level
of grid balancing even in a highrenewable world, at least until the
grid transforms through measures like
deployment of ancillary services
markets, storage technologies and
smart grids.
At a recent talk, Ms Narain
jokingly mentioned that the best way
to get enforcement of existing
standards would be have plants built
in urban areas, maybe next to the
Prime Ministers home. However, the
global push to end coal appears to
be a manifestation of BANANA (Build
Absolutely Nothing Anywhere Near
Anything), which is sometimes aimed
at limiting dangerous forms of growth
but often ends up being against all
new growth. Advocates of BANANA
conveniently ignore history, and the
history of aggregate consumption
indicates Indias fair share of carbon
emissions (if there is such a thing) to
be decades away. Of course, the aim
isnt for India to reach emission levels
close to those of China and the U.S
but not to limit emissions at the cost
of limiting human development. While
carbon is a global pollutant, views on
BANANA cannot override a nations
choices regarding NIMBY. With or
without state-of-the-art technology
for lower emissions and higher
efficiency, new plants are going to
be built in India. Without global
support and a push for
improvements, the only result would
be suboptimal and more polluting
plants.
They are
refugees not migrants
Europe is witnessing probably


the greatest movement of people
since the Second World War. Over
the last several months, hundreds of
thousands of men, women and
children from Syria, Afghanistan, Iraq,
Eritrea and Sub-Saharan Africa have
been risking their lives each day in a
bid to reach Europe. Thousands have
perished in the attempt. The
harrowing image of the body of threeyear-old Aylan Kurdi washed ashore
on the Turkish coastline has become
the defining image of the
humanitarian crisis that is presently
unfolding. The crisis is only expected
to worsen, with the United Nations
forecasting that over 3,000 people a
day will try to reach Western Europe
alone in the next few months. The
number of fatalities is also expected
to rise. The increasing public
attention being given to the situation
in Europe has thrown into sharp focus
the policies of several prominent
European governments towards such
displaced persons.
As the crisis in the
Mediterranean has unfolded, a
number of European politicians and
media houses have chosen to
consistently refer it as a migrant crisis.
The majority of the men, women and
children trying to reach European
shores have been portrayed as
economic migrants in search of a
better life. In a bid to incite
nationalistic tendencies, the
displaced persons have been
compared to marauders posing a
threat to the standard of living and
social structure of a privileged
European society. The choice in
terminology and the rhetoric that
follows suit is not wholly without
consequence, both legal and
otherwise.
In law, the distinction between
a refugee and a migrant is of great
significance. First and foremost,
refugees enjoy a distinct and unique
standard of protection under

international law. A refugee has been
defined under the 1951 Refugee
Convention of the UNHCR and its
1967 Protocol as any person who,
owing to a well founded fear of
being persecuted for reasons of race,
nationality, membership of a
particular social group or political
opinion, is outside of the country of
his nationality and is unable, or is
owing to such fear, is unwilling to avail
himself the protection of that
country. With the evolution of
international refugee law, this
definition of convention refugees has
been expanded to cover persons
who have fled their countries due to
armed conflicts, internal turmoil and
situations involving gross and
systematic violation of human rights.
Such persons are typically referred
to as humanitarian refugees. Refugees
enjoy certain special protections
under law, such as safety from
deportation to the country where
they face persecution; protection of
basic human rights without racial or
religious discrimination, or of national
origin; access to fair and efficient
asylum procedures; provision of
administrative assistance, and so on.
On the other hand, migrants (persons
who choose to leave their home state,
principally in search of a better life,
as opposed to escaping some form
of persecution, internal strife or armed
conflict) do not enjoy any protection
and/or privileges under international
law. Countries are therefore at liberty
to deal with migrants under their own
immigration laws and processes.
Outside of the law, the choice
of terminology is of critical
importance in shaping the
perception, attitudes and behaviour
of the public at large and can impact
the lives and safety of displaced
persons. Being a migrant implies a
choice, exercised voluntarily, to seek
a better life from that offered in the

home country, and not an involuntary
act, brought on by the instinct of selfpreservation from the threat of
persecution, internal strife or armed
conflict in the home country. The
latter is perceived, rightly or wrongly,
to be a legitimate reason for
movement across borders one in
which the world community has a
shared collective interest. Therefore,
the conflation of refugees with
migrants can seriously undermine and
prejudice the public support
available to such displaced persons,
one that is critical to the protection
of such displaced persons.
Utilising MSMEs
as engines for growth
Recent growth data for India
reveals that there has been a
significant slowdown in the industrial
growth
rate,
especially
manufacturing, in the first quarter,
April-June, 2015. According to the
recently released Annual Report (AR)
of the Reserve Bank of India (RBI),
gross capital formation has been
declining over the years, especially
households. The performance of the
agriculture sector has also been
slower than the previous year
because of uncertain rains in the last
few months. In context of continuing
uncertainty in the agriculture sector
because of substantial dependence
on rain-fed irrigation, an alternative
power pack, unutilised, is micro, small
and medium enterprises (MSMEs).
The MSME sector in India
employs nearly 11 crore people
through the operation of 5 crore
enterprises
producing
a
heterogeneous basket of about
7,000 different products. As MSMEs
are generally labour-intensive, they
have the capability to create more
jobs to cater to a young demographic
country like India. Further, in view of
93


the continuing implications of climate
change, it is necessary that the MSME
sector is prepared to absorb millions
who may be rendered unemployed
in the agriculture sector. The
government and the RBI have been
initiating a series of measures to
encourage MSMEs, but these are
generally supply-side efforts. The
need is to generate demand-side
requirement from the general public
to set up MSMEs.
In the case of existing as well as
potential MSMEs, entrepreneurs
mainly face the problem of finance.
The government and nongovernmental organisations seek to
finance and allocate resources for
MSMEs, but these resources often do
not reach the targeted audience. The
successful launch of the Jan Dhan
Yojana (JDY) could be used to direct
financial resources to targeted
MSMEs. Still, access to bank finance
may be difficult for some MSMEs, and
therefore there is a need to consider
various alternative sources of finance.
In the case of Japan, the government
has imposed a cap on interest rates
on loans that a money lender extends
to MSMEs. As money lenders
continue to play an important role in
India, it is worth considering whether
money lenders could be brought
under regulation now, given
technological progress, as achieved
in the case of Japan, and an interest
cap be imposed for lending to
MSMEs.
In India, commercial banks are
mandated to lend to MSMEs. In such
cases there is also a need to ensure
that the public sector does not crowd
out the private sector. Further,
MSMEs generally suffer from poor
conduct by major banks. In some
cases, mis-selling of financial
products is a general complaint of
entrepreneurs. This can take the
shape of higher fee or interest rate,
94
failure to explain exit costs, and

sometimes threatening them with
refusal to extend regular credit.
Illustratively, weighted average
lending rate of commercial banks, as
reported in the RBIs latest AR, is the
highest for MSMEs when compared
with loans extended to agriculture,
large industry and infrastructure. Not
all banks can do MSME financing as
this is a specialised area and requires
specialised skills to assess the
institutions that can benefit from bank
finance and yield higher production.
Therefore, skill development of
bankers is also necessary for assessing
MSMEs that can be bank-financed.
These skills would include
standardising simple format for
accounting purposes for MSMEs,
competent development of human
resources, cultivating business ethics
and standards, and also imparting
training to MSMEs which are being
served by the bankers. The initiatives
by the RBI in this regard need to be
strengthened in instituting similar
training programmes in different
commercial banks.
In addition to financing, there
is a need for focussed coordination
of activities of different government
authorities to encourage MSMEs. This
coordinating agency could serve in
building a database and repository
information on a shareable basis,
measuring levels of productivity for
different product groups, and
identifying products in need of
research and development. In
economic literature, no country has
catapulted from a developing country
to an advanced economy without
industry contributing significantly in
output. So far, the growth story in
India has been different, with the
services sector overtaking industry in
a short span of time. The government
could also consider an appropriate
guarantee system to be offered to the
MSMEs availing loans under various

government schemes. To inspire
confidence, the government needs
to strengthen the legal structure and
establish a credible redressal
mechanism. To prepare a vision
document and an achievable
roadmap that can place the Indian
MSMEs to compete with those in
China, Japan and Germany, there
would be a need to engage
researchers, industry groups and
stakeholders. Therefore, there is much
to be accomplished before the
MSME sector can take off. India needs
to make a start now.
The roots of
Europes refugee crisis
Released in 2013, Elysium, a
movie directed by Neill Blomkamp,
was appreciated worldwide for
highlighting socio-political and class
dimensions related to migration. In
this science fiction, the rich discard
the poor on earth in 2154, and settle
down in an advanced and
sophisticated space station called
Elysium. Earth is depicted as having
several problems: it has no healthcare
facilities and suffers from a high crime
rate. As a result of this, its residents
dream of entering Elysium one way
or the other. For them, going to
Elysium is a way to end all their
miseries. But it isnt such a simple task
the ruling class of Elysium is averse
to the idea of sharing their prosperous
space with the poor beings from
earth.
The situation in and around the
borders of Europe remind us of this
film. The international community, for
reasons beyond comprehension,
opted to remain discreet about the
European refugee crisis, but in reality
this is one of the biggest human
tragedies in the making in this
decade. Statistics point in this
direction. According to the


International Organization for
Migration (IOM), more than 3,50,000
migrants and refugees have tried to
cross the Mediterranean sea into
Europe. Almost 2,600 refugees have
died in the Mediterranean Sea from
January to August 2015 alone. Most
of them are from West Asia,
particularly from the war-ravaged
countries of Syria, Iraq and Libya;
many are also from the disturbed areas
of Africa. According to the the IOM
statistics, a substantial number of
refugees are also from Afghanistan
and Pakistan, moving for reasons
similar to their West Asian
counterparts Afghanistan is
caught in an unending civil conflict
and Pakistans socio-economic
condition
is
continuously
deteriorating. This is what makes
people flee their own countries to
other parts of the world, in search of
peace, employment and stability.
Europe is the most preferred
destination for the people from these
fragile regions as it is economically
prosperous, socially secure and has
better immigration laws. In other
words, Europe is like Elysium. But this
does not mean that this mass
migration is only to explore the
greener pastures of Europe; it is also
due to adverse circumstances in the
home country that are not within the
control of the common people.
Endless conflict has ruined the social,
political and economical structures
of some countries in West Asia,
making it impossible for people to
have a secure livelihood. On the other
hand, faced with a situation of a heavy
influx of refugees, Europe is
unwilling to welcome people into its
territory. European countries are
increasing security patrolling around
the Mediterranean Sea and in border
areas, in order to check the infiltration

of refugees. Due to this increased
surveillance, refugees are being
pushed back, but sadly most of them
cannot return to their unsafe and wartorn countries. This situation of being
neither here nor there is leading to a
big humanitarian crisis, demanding
immediate international attention.
To find a solution, we also have
to critically examine the role of the
Euro-Atlantic powers because they
have been the main drivers of this
present crisis. West Asia in the past
was not like this; despite illusive
democracy, there was political
stability and economic activities
flowed quite smoothly. But due to
having an abundance of energy
resources, West Asia was and is geoeconomically extremely relevant for
the U.S. and its allies, most of them
being the European powers. It is
because of this that Euro-Atlantic
powers used coercive tools for
prompting their narrow politicaleconomic agendas in this region after
the end of the Cold War. As a result,
Iraq is in ruins, even though it does
not possess any weapons of mass
destruction. Libya was bombed by
NATO in 2011 after getting sanctions
through the United Nations Security
Council Resolution, 1973, and is
currently a battleground for different
ethnic groups fighting to capture
political power. There is enough
evidence to prove that on the pretext
of supporting pro-democratic forces
in Syria, western powers ended up
helping the radical groups, providing
necessary fodder for the birth of the
deadly Islamic State. Afghanistan,
also one of the known battlefields of
the Cold War, was deserted by the
West after the disintegration of the
Soviet Union. But it was revisited post-
9/11 by the Euro-Atlantic powers to

destroy Al-Qaedas terror network.
Yet, even after the death of Osama
bin Laden, political instability
continues in Afghanistan, with the
prospect of civil conflict ceasing in
the near future seeming quite bleak.
Even if we ignore larger political
economic questions of international
relations, it will not be inappropriate
to blame western powers for the
present crisis. Their irresponsible acts
for achieving narrow political
objectives have destabilised West
Asia, and now European countries
cannot turn their backs to the
problems of the refugees. The sheer
number of people escaping from
disturbed regions to Europe is
massive, and pushing them back to
their homeland will only aggravate the
situation.
These refugees will be
vulnerable to attacks by warring
groups and we cannot strike out the
possibility of them even joining these
groups for survival. The European
Union has unveiled a refugee quota
plan to address the crisis, but is
already facing opposition from
eastern members, with, for instance,
the Czech Republics Prime Minister
Bohuslav Sobotka stating that his
country will not be compelled in any
manner to accept a quota and that
such a system wont work. Thus, far
more coordination between the EU
and the international community is
essential to resolve the crisis.
In this regard, it is also crucial
for the EU to involve the U.S. Similarly,
the stable countries of West Asia
should be contacted to provide some
respite to these refugees. Any
negligence now will prove costly not
only for Europe but for many other
countries of the world.
95
General Studies (Paper - 1) & CSAT (Paper - 2) Comprehensive Manual:

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INDIAN SATELLITE SYSTEM

Indian satellite missions have a
long history from 1975. In 1975
Aryabhatta, first Indian satellite was
launched by soviet union. This
satellite was built by ISRO and named
after the fifth century astronomer and
mathematician from India. SLV-3 was
Indias first experimental satellite
launch vehicle. SLV-3 was
successfully launched on July 18,
1980 from Sriharikota Range (SHAR),
when Rohini satellite, RS-1, was
placed in orbit, thereby making India
the sixth member of an exclusive
club of space-faring nations. The
successful culmination of the SLV-3
project showed the way to advanced
launch vehicle projects such as the
Augmented Satellite Launch Vehicle
(ASLV), Polar Satellite Launch
Vehicle
(PSLV)
and
the
Geosynchronous satellite Launch
Vehicle (GSLV).
The PSLV is one of worlds most
reliable launch vehicles. It has been
in service for over twenty years and
has launched various satellites for
historic missions like Chandrayaan-1,
Mars Orbiter Mission, Space Capsule
Recovery Experiment, Indian
Regional Navigation Satellite System
96
(IRNSS) etc. PSLV remains a favourite

among various organisations as a
launch service provider and has
launched over 40 satellites for 19
countries. In 2008 it created a record
for most number of satellites placed
in orbit in one launch by launching
10 satellites into various Low Earth
Orbits. The Geosynchronous Satellite
Launch Vehicle was primarily
developed to launch INSAT class of
satellites into Geosynchronous
Transfer Orbits. GSLV is being used
for launching GSAT series of
satellites. GSLV is a three stage
launcher that uses one solid rocket
motor stage, one Earth storable liquid
stage and one cryogenic stage. The
most recent flight of GSLV, the GSLVD5, placed GSAT-14 into its planned
orbit and marked the first successful
flight of the indigenous cryogenic
stage. Earlier, GSLV had launched
various communication satellites
among which EDUSAT is notable,
being Indias first satellite built
exclusively to serve the educational
sector through satellite based
distance education.
Important Indian satellites are
mentioned below:
GSAT 16
Gsat 16 which
is a
communication satellite was
launched on 6 December 2014 from
the Guiana Space Centre, French
Guiana, by an Ariane 5 rocket. It is an
advanced communication satellite
weighing 3150kgs. It replaced the
INSAT-3E. The satellite is equipped
with 12 ku, 24 C and 12 Extended C
band transponders.The satellite also
has the highest Indian ku-beacon
transmitter. With a life span of 12 years
it will form part of GSAT series of
Indian communication satellites. It
will support civil aviation, boost
public and private TV and radio
services, large-scale internet and
telephone operations.
PSLV C-25
MOM was launched aboard
PSLV C-25, which was an XL variant
of the PSLV, one of worlds most
reliable launch vehicles. The XL
variant was earlier used to launch
Chandrayaan (2008), GSAT-12
(2011) and RISAT-1 (2012). Marking
Indias first venture into the
interplanetary space, MOM will
explore and observe Mars surface

Indian Satellite System-features, morphology, mineralogy

and the Martian atmosphere. Further,
a specific search for methane in the
Martian atmosphere will provide
information about the possibility or
the past existence of life on the
planet. The enormous distances
involved in interplanetary missions
present a demanding challenge;
developing and mastering the
technologies essential for these
missions will open endless
possibilities for space exploration.
KALPANA 1
Originally known as MetSat-1,
the satellite was the first launched by
the PSLV into the Geostationary orbit.
On 2003 it was renamed to Kalpana1 in memory of Kalpana Chawlaa
NASA astronaut who perished in the
Space Shuttle Columbia disaster.
SAARC satellite
In a step to take the friendship
of the SAARC countries to the next
level prime minister Narendra Modi
announced the building of SAARC
satellite. It is to be dedicated as a gift

to the neighboring countries. This
satellite will help to have a real time
scientific data. The main objective
being it enables a full range of
services to all our neighbors in the
areas of telecommunications and
broadcasting applications like
television, DTH, tele-education and
disaster management. It is likely to
be launched by ISRO in December
2016.
GSLV MARK III
India as of now to launch heavy
satellites depends on the other
countries. With the successful launch
of GSLV MARK III India is going to
becoming self reliant which would
save a massive amount of foreign
currency paid for other countries for
launches and earn foreign currency
by launching other countries
satellites.
It is indias biggest ever rocket
launched. It includes an unmanned
capsule which could one day send
astronauts into space, the latest

accomplishment of its ramped-up
space program. It is developed by
ISRO. It makes India self reliant in
launching heavier communication
satellite of INSAT 4 class which
weigh 4500-5000kg. It has three
stages. The first stage uses S200 solid
motors. The second stage is restartable liquid stage. The third stage
is cryogenic upper stage C25.
Indian satellites perform various
important functions like Earth
observation, which include
Agriculture and soil mapping, Mineral
and Bio rersouce mapping, Disaster
management support etc. They also
greatly help in communication
system. Satellite are helpful in climate
and environmental studies. It can be
seen that satellite systems are of great
importance to any country. Indian
satellite system is considered
amongst the best in the world, only
recently India has launched the
satellites of France and U.K.
97

AMENDMENTS TO THE ARBITRATION AND CONCILIATION BILL, 2015

The amendments to this Bill are
based on the Law Commissions
recommendations and suggestions
received from stakeholders. Law
Commission of India (LCI) in its 246th
Report had recommended various
amendments in Arbitration and
Conciliation Act, 1996 in order to
pave way for India to become a hub
of International Commercial
Arbitration.
Law commision observed in its
246th report that the Act the enacted
withanaim to consolidate and amend
the law relating to domestic
arbitration and international
commercial arbitration. Statement of
objects andreasons in the Arbitration
and conciliation bill, 1995 are as
follows.
Comprehensively coverr
inrternational commercial
arbitration and domestic
arbitration;
Minimise the supervisory role of
courts in the arbitral process;
ensure that final arbitral award
is enforced in the same manner
as the decree of court.
Aggrevied party from the
arbitration decision has the power to
98
go to court under the section 34 of

the act. Law commission believes that
the power given under this section
to the courts should not be
excessively used otherwise it
undermines the whole process of
arbitration. Award from arbitration
should be set aside only in the
following cases.
if it is against the fundamental
policy of India;
against the justice and morality;
if the award is illegal, illegality
should not be mere a technical
illegality;
In light of this government has
come up with the changes to the
Arbitration and conciliation act. The
salient features of the amendments
are as under:
(i) In order to ensure neutrality of
arbitrators, it is proposed to
amend Section 12 to the effect
that when a person is
approached in connection with
possible appointment of
arbitrator, he shall disclose in
writing about existence of any
relationship or interest of any
kind, which is likely to give rise
to justifiable doubts. Further, if
a person is having specified

relationship, he shall be
ineligible to be appointed as
an arbitrator.
(ii) Insertion of a new provision
that the Arbitral Tribunal shall
make its award within a period
of 12 months. Parties may
extend such period up to six
months. Thereafter, it can only
be extended by the Court, on
sufficient cause. The Court
while extending the period
may also order reduction of
fees of arbitrator(s) not
exceeding five percent for
each month of delay, if the
court finds that the
proceedings have been
delayed
for
reasons
attributable to the arbitral
tribunal. If the award is made
within a period of six months,
arbitrator may get additional
fees if the parties may agree.
(iii) It is proposed to insert a
provision for fast track
procedure for conducting
arbitration. Parties to the
dispute may agree that their
dispute be resolved through

Amendments to the Arbitration and Conciliation Bill, 2015

fast track procedure. Award in
such cases shall be given in six
months period.
(iv) Amendment of Section 34
relating to grounds for
challenge of an arbitral award,
to restrict the term Public
Policy of India (as a ground for
challenging the award) by
explaining that only where
making of award was induced
or affected by fraud or
corruption, or it is in
contravention with the
fundamental policy of Indian
Law or is in conflict with the
most basic notions of morality
or justice, the award shall be
treated as against the Public
Policy of India.
(v) A new provision to provide that
application to challenge the
award is to be disposed of by
the Court within one year.
(vi) Amendment to Section 36 to
the effect that mere filing of an
application for challenging the
award would not automatically
stay execution of the award.

Award can only be stayed
where the Court passed any
specific order on an
application filed by the party.
(vii) A new subsection in Section
11 to be added to the effect
that an application for
appointment of an Arbitrator
shall be disposed of by the
High Court or Supreme Court
as expeditiously as possible
and an endeavour should be
made to dispose of the matter
within 60 days.
(viii) A new Section 31A is to be
added
for
providing
comprehensive provisions for
costs regime. It is applicable
both to arbitrators as well as
related litigation in Court. It will
avoid frivolous and meritless
litigation/arbitration.
(ix) Section 17 is to be amended
for empowering the Arbitral
tribunal to grant all kinds of
interim measures which the
Court is empowered to grant,

under Section 9 and such order
shall be enforceable in the
same manner as if it is an order
of Court.
The Government of India has
under its consideration proposals for
making Arbitration a preferred mode
for settlement of commercial disputes
by making it more userfriendly and
cost effective. This will lead to
expeditious disposal of cases. The
Govt. of India is committed to improve
its legal framework relating to
Arbitration. These changes will
introduce fairness, speed and
economy in the resolution of disputes
arbitration. It will also bring arbitration
practice in India in conformity with
the arbitration practices in
international community. It will also
reduce the unecessary judicial
interference in the arbitration
proceedings. Shortcomings of the
present procress has led to Indian
parties starting arbitration
proceedings abroad.
99
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Mock Paper For GS Paper-II Preliminary Examination 2016
MOCK PAPER
For GS Paper-II
Preliminary Examination 2016
Passage : Instruction for questionread the following passage and

answer the questions that follow.
Your answers to the questions should
be based on the passage only.
Reserve Bank of India deputy
governor K.C. Chakrabarty
maintained the while high interest
rate was not solely responsible for
the economic slowdown. High
inflation was definitely one of the
reasons for the sluggish growth,
interacting with journalistic on the
growth, inflation issues at an assoc
ham event, Dr. Chakrabarty said,
slowdown in the growth is for a
variety of reasons what we are trying
to say is the interest rate is not the
only reason for the slowdown in
growth. But inflation is definitely a
reason for slowing down the growth
Dr. chakrabarty also went on to
admit that in a way, monetary policy
was also responsible for the tepid
growth in that it was unable to
contain inflation .yes to the extent
monetary policy is not responsible.
We cannot say something wrong
happening in the economy, we are
not responsible, collectively we are
all responsible. In his address at the
100
event, exhorted banks to provide

credit to the productive sectors of the
economy and not shy away from
given loans to them in view of their
own rising NPAs (non performing
assets).
Because of NPA fear banks need
not stop lending but banks must
improve their credit management
capability for which there is enough
scope when NPAs are high, your risk
management system has to be
improved. Dr. Chakrabarty said while
pointing out that banks need to pay
more attention to the credit need of
agriculture and SMEs. Dwelling
furth er on the NPA issue, Dr
Chakrabarty sought to blame the
corporate for most of the rising bad
loans and for which the honest
borrows have to pay more NPA is
creation of the corporate sector, a
major part of NPA. You borrow from
banks. You dont. pay them in time
they because NPA in the books of the
books, so why you are not able to pay
back. Because your cost is more and
income is less.
1. Which one of the following
statements conveys the
inference of the passage?
(a) High inflations is

definitely one of the
reasons for sluggish
growth
(b) Monetary policy is also a
reason for the tepid
growth
(c) Corporates are mainly to
blame for NPA issue
(d) Monetary policy is not
effective enough to check
inflation
2. Consider the following
statements with reference to
the passage.
1. Honest borrowers will
have to pay less in the
corporates were able to
bring down the risk
perception of the banks
2. There is a complete policy
paralysis on growth of
inflation issue for which
collectively we are all
responsible
Which of the statements
above is/ are correct?
(a) Only1
(b) Only 2
(c) Both are correct
(d) Both incorrect


3. According to the passage, the
economic growth can be
effected by focusing on
(a) check on high interest
rate
(b) effective monetary policy
(c) lowering of inflation rate
(d) improvement in risk
management
4. According to the passage
what could be the obstacles to
the high economic growth?
1. The NPA fear of th e
Banks created by the
corporate
2. High interest rates
3. High inflation
4. Ineffective monetary
policy
Select the correct code give
below
(a) Only 1 and 2
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) All
5. According to the passage
banks need to pay more
attention on
(a) their credit management
capability
(b) their credit appraisal
system
(c) their risk management
system
(d) credit
needs
of
agriculture SMECs (
small and medium
enterprises) and retail
Passage : Instruction for questionread the following passage and
Your answers to the questions
should be based on the passage only.
A calamity can strike any county,
even one of the most developed ones.
Its true that an advanced level of
preparedness mitigates the
consequences of the calamity .

But then you never know how
deadly the calamity will be neither
do use know why a particular place
becomes the venue of disaster and it
is no use questiong Gods way, as has
long been established since the days
of job.
But these are things which man
can be cautious against. For a number
of tragedies are visited upon us for
our doing. In our quest for
development we forgot that things
can go out of hand. In fact the powers
of development blinds us to our
limitations priding ourselves on
vanquishing nature, we build
casteless it is only the fury of nature
that remains us from time to time that
these are but castles of sand. Nuclear
power is one such meme. No matter
how much are we taught it as a
peaceful means is repeatedly
compress upon us that it had its
genesis in bringing upon the world
one of its Servest catastrophes the
ghost of Hiroshima refuses to be
burried and however Fukushima. If
it can happen in developed county
like Japan. One should think twice
or thrice may be four times before
embracing this technology. The
safeguards are critical and should be
developed. Before the project start in
full swing. Whether it was three mile
island , Chernobyl or Fukushima,
there is a lot that developing countries
need to learn before signing nuclear
deal left right and centre.
Alternatively, it is not bad an
idea to question what development
means. Is it so complete thing as
growth of per capita power
consumption? Or is there another
dimension that we fails to employ
because of our tunnel vision. Its time
we concentrated our energy on
spiritual guest too. Its good to learn

physic but here is nothing bad about
learning metaphysics.
6. Man should be cautious
against
(a) the fury of nature
(b) any calamity
(c) his own deeds
(d) nuclear disaster
7. Why
nuclear
power
considered
a
benign
technology these days
(a) because it does not pose
any risk for man or
nature
(b) because it may prove
malignant in the event of
an natural calamity
(c) because it is cheaper that
any other form of power
(d) because it may cause or
Hiroshima
or
a
Fukushima in developing
countries
8. It is good to learn physics but
there is nothing bad about
lea rning
metaphysics
complies there
(a) Man should ponder on
blind
quest
of
development at the cost of
nature
(b) Man should stop
vanquishing nature
(c) Nature is superior to man
(d) Man is superior to nature
9. Developing in countries
should think twice before
signing nuclear deals as
1. It can cause Severest of
catastrophes of the world
2. May bring the world on
the bring of these world
was
3. Three mile island
Chernobyl or Fukushima
were all man made and
101


were not natures fury
4. It is not necessar y for
development
Select the correct answer form
the following
Codes
(a) Only 1 and 3
(b) Only 1, 2, and 3
(c) Only 1, 3 and 4
(d) 1, 2, 3, 4
10. What key message does the
passage delivers
(a) Even
the
most
development countries of
the world cant contain a
natural calamity
(b) Man should not play with
nature in the blind race
for development
(c) An advanced level of
preparedness can only
mitigate a calamity but
can not stop it from
occurring
(d) Man should learn to coexist with nature.
Direction: Instruction for questionread the following passage and
Your answers to the questions should
be based on the passage only.
Passage 1
Some modern anthropologists hold
that biological evolution has shaped
not only morphology but also
human behaviour. The role those
anthropologists ascribe to evolution
is not of dictating the details of
human behaviour but one of
imposing constraint ways of feeling,
thinking and acting that come
naturally in archetypal situations in
any culture. Our frailties, emotion
and motives such as rage, fear, greed,
gluttony, joy. lust, love may be a very
mixed assortment, but they share at
102
least one immediate quality: we are

as we feel, in the grip of them and
this way they give us our sense of
constraints.
Un happil y, some of these
frailties shape our need for ever
increasing security among them
which are presently maladaptive. Yet
beneath the overlay of cultural
detai ls, they, too, are said to be
biological in direction, and therefore
as natural to us as our appendices are.
We would need to comprehend
thoroughly their adaptive origins in
order to understand how badly they
snide us now. And we might then
begin to resist their pressures.
11. The primary purpose of the
passage is to present1. a position
on
the
foundation of human
behaviour and on what
those foundations imply,
2. a theory outlining the
parallel development of
human morphology and
of human behaviour o
3. a practical method for
resisting the pressure of
biologically determined
drives.
Codes
(a) 1 only
(b) 2 only
(c) 3 only
(d) 1 and 2
12. The author implies that
control over the frailties that
constrain our behaviour is
thought to presupposeI. that those frailties are
recognized as currently
beneficial and adaptive
II. a full understanding of
why those frailties
evolved and of how they
function now.
Codes
(a) I only
(b) II only
(c) Both I and II
(d) None of these
13. It can be inferred that in his
discussion of maladaptive
frailties the author assumes
that-I. evolution does not favour
the emergence of
adaptive characteristics
over the emergence of
maladaptive ones.
II. changes in the total
human environment can
outpace evolutionary
change.
Codes
(a) I only
(b) II only
(c) Both I and II
(d) None of these
Passage 2
Social justice evades definition, Still
in simple and commonly perceived
form social justice may be described
as principle which consists in the
claims of all men to advantages and
an equal share in all advantages
which are commonly regarded as
desirable and which are in fact
conducive to human well being.
That is reason why social justice
encompasses all the principles of
justice e.g. justice of transactions or
rectificatory justice by way of
restitution and compensation;
justice of conformity to rules or like
shall be treated alike; justice
according to deserting one or
distributive justice; justice according
to need; justice according to choice.
Social justice modified and fixes
priority among the various principles
of justice. A jurist very succinctly
summaries the practical shape of


contents of social Justice.(1) the
principle of social . Justice requires
that all men and women should have
a to an equal share in all those
advantages which commonly desired
and conducive to human well being;
(2) this principle is not identical with
the demand for equal treatment for
all men and women, it rather
requires preferential treatment of the
privileged under who lack
advantages possessed by others; (3)
the principle allocation according to
need is a subordinate aspect of social
justice; (4) the principle of
conformity to rules is also
subordinate aspect of social justice.
This principle is designed to secure
all men and women two advantages;
(i) that their reasonable expectations
will be fulfilled and (ii) their dignity
is respected; (5) discrimination is
justified only. (i) to give effect to the
principle stated in the two above; (ii)
to benefit the exploited (iii) on the
basis of conduct and choice and so
far as justice of transactions and
special relations require it, (6) it is
arguable that, the equal claim
principle is the principle likely in the
long run to lead to social stability.
Now we will discuss about how
we are making a transition from
equalitarian justice to equalisationaI
justice. Article 46 provides that the
state. shall promote with special care
the educational and economic
interests of the weaker sections of the
people, and, in particular of the
scheduled castes and the scheduled
tries, and shall protect them from
social injustices and all forms of
exploitation. It embodies the concept
of distr ibutive jus tice which
connotes, inter alia, the removal of
economic inequalities and rectifying
the injustice resulting from dealing
or transactions between unequals in
society.
With a view to ensure social
justice to its citizens the Constitution
enshrines many provisions like
Articles 15 (4), 16 (4), 19(l) (d)-(e),
275, 330 and 335. Protective
discrimination policy gives concrete
shape to the idea of social justice and
with a view to ensure its meaningful
purpose the Supreme Court has kept
the creamy layer out of socially and
educationally backward classes.
statementsl. Principle of social justice
supposes that all men and
women should be equal
stakeholders in all the
benefits that accrue to the
society.
2. Protective discrimination
translates the idea of
social justice into reality.
Choose the correct option
using codes
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1, nor 2
15. Which of the following
statements is/ are correct in
the light of the passage
(a) Distributive justice
presupposes removal of
economic inequalities.
(b) Equal claim is the only
claim which in the long
sun leads to social
stability.
(c) Both (a) and (b)
(d) Neither (a), nor (b)
statement1. It is easy to define social
justice.
2. The role of the state in
minimizing economic
inequalities is of great
importance.
3. Some
kind
of
discrimination which
favour the poor is
justified.
4. Social
justice
encompasses all forms of
justice.
5. Act 46 speaks about how
to redeem social justice.
Choose the statements which
are not inconsistent in the
light of the passage?
(a) 2, 3 and 4
(b) l, 2 and 5
(c) 3, 4 and 5
(d) 1, 2, 3, 4 and 5
17. Which of the following are
the subordinate aspects of
social justice ?
1 . The
principle
of
allocation
2. The
principle
of
uniformity
3. Preferential treatment of
the underprivileged
Code
(a) only 2
(b) only 1
(c) 1 and 2
(d) only 3
18. Why is social justice more
important than other forms of
justice ?
(a) It prepares grounds for
other justice to take place
(b) It does not show any bias.
(c) It is harbinger to other
forms of justice.
(d) It has the capacity to
modify and fix priorities
among the various
principles of justice.
103


Passage 3
Among the fundamental qualities a
citizen of democracy must have is a
deep concern for the good life of his
fellows. He must have a sense of
social responsibility and the will to
sink his own immediate interests and
the interests of his class in the
common good; to do his full share in
working for the community.
But, these qualities alone might
lead one to be a well-meaning
dictator or an unthinking follower.
The citizen of democracy must also
be a man of independent judgement,
he must respect the individualities of
others and therefore be tolerant of
opinion in conflict with his own; he
must prefer methods of discussion
and persuasion to methods of force.
The citizen of democracy also
needs certain intellectual qualities.
It is not enough to love truth, one
must learn how to find it. It is easy to
teach student to reason correctly in
the physical sciences. It is mor e
difficult to reason correctly in the
social science where their own
prejudices and passions are involved.
They must be taught habit of clear
thinking in order that they may
acquire the power of recognizing
their own prejudices and of discussing political and economic
questions with the same calm, with
the same desire to understand other
persons position, with the same
precision and absence of over
statesman that they would bring to
the discussion of a problem in
mathematics.
19. Which of the following can
be inferred from the above
passage?
(a) Altruism is the essence of
democracy
(b) Reasoned and balanced
104
approach towards a
problem are the pillars of
democracy
(c) A
dispassionate
assimilation of ideas and
meaningful involvement
in
the
common
well-being
are
fundamental qualities of
a citizen
(d) All the above
20. Which contrast has been
presented in the passage?
(a) differential view for self
and others
(b) inability to free oneself
form prejudices
(c) coexistence of reason
with preoccupation
(d) none of these
21. Which quality has been highly
talked of by the author?
(a) independent judgement
(b) reasoning ability
(c) predilection
(d) assimilative ability
22. Which of the following is
unstated in the light of the
above passage?
(a) identifying on es own
prejudices
(b) tolerance of opinions
(c) a feeling of compassion
(d) absence of overstatement
Passage 4
Widows, deserted, separated ,
abandoned, walked and, thrown out,
older and younger unmarried single
women remain unrecognised by
both the society and government.
The most forgotten women of the
countr y, there is very little
information available on their
numbers and even less information
on how they survive. According to
the 2002 census, there are 39.8
million single women in the

country. The National Forum for
single womens rights is a collective
of more than 50,000 women across
different states that organises,
struggles and lobbies with
governments for their rights. These
are widows, separated, divorced,
unmarried mothers, women whose
husbands rare missing and those
single women living with HIS/
AIDS. In short, A woman who is
not living with a man in a maritallike relationship.
The women came together as a
collective to reiterate not only their
demand to constitutional rights, but
also to fight against the feudal and
patriarchal society that denies them
a dignified existence. The
organisation includes woman like
Sharifa from Ahmedabad, who fights
with maulanas for abolishment of
iddat
(customary
home
confinement) for divorced Muslim
women and government officials in
Gandhinagar who refuse to release
grains sanctioned for widows. The
organization also includes woman
like Saraswati from Jharkhand, who
has first hand witnessed the Adivasis
daayan pratha, where widows are
branded as witches and ostracised by
the community. And this is to curb
her from claiming her property rights
after her husbandss death.
statements conveys the key
message of the passage?
(a) The most unforgotten
women of the country are
the ones who remain
unrecognised by both the
society and government.
(b) Pathetic condition of
single women in the
country.


(c) Insensitivity of society
and government towards
single women.
(d) A significant portion of
the female population
that finds no mention in
government agendas are
single women.
24. According to the passage, a
woman who is not living
with a man in a marital like
relationship can be(a) Unma rr ied
woman
whose husbands are
missing.
(b) Sex-workers living with
HIV/AIDS
(c) Single mothers
(d) Adivasi
unmarried
woman
25. With reference to the passage
which of the following
statements is/are true1. Feudal and patriarchal
societies have denied a
dignified existence to
women.
2. The National Forum for
sing le womens rights
struggles and lobbies
with the government for
their constitutional rights
and protection against
the feudal and patriarchal
society that denies them a
dignified existence.
Select the correct answer from
the following code(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
26. Customary laws like iddat
and daayan pratha are not
allowing(a) Emancipation of a
woman not living with a
man in a marital-like
relationship from the
clutches of the dogmatic
society which denies then
equality.
(b) Widowed
mus lim
women to access grains
sanctioned for them in
Gujarat.
(c) Adivasi women in
Jharkhand to enjoy their
constitutional right to
property.
(d) Contribution
of
unmarried
single
women in nationbuilding.
Passage 5
After interest rates, the licensing of
new commercial banks has become
the latest issue on which the Central
government and the Reserve Bank
of India cant seem to see eye to eye.
According to reports, Finance
Minister P. Chidambaram has asked
the RBI to expedite the process of
issuing new commercial bank
licences by first finalising existing
draft guidelines, as a prelude to
receiving new applications. The
RBI, on its part, does not want to
move forward unless it is legally
empowered to regulate the new
entities more comprehensively than
is possible now. That would include
powers to supersede the boards of
directors of recalcitrant banks if the
need arises. Existing regulations, in
the RBIs view, are not sufficient to
check possible violations by banks
promoted by those for whom
banking may not be the core or even
the main business. A specific
concern has been the need to ensure
that promoter groups are kept at arms
length from the new banks. The
failure by big business houses to
adhere to this basic principle with

regard to banks in which they were
major shareholders was one of the
principal reasons behind Indira
Gandhis bank nationalisation drive
in 1969. Since then, the door has
been shut for them. Even with the
onset of liberalisation, while new
private banks have come into being,
none of them has had any connection
with industrial houses.
27. With reference to the passage,
consider the following
statements1. None of the private banks
which came into being
after liberalisation were
allowed to be started by
any industrial house.
2. The RBI and the Central
government do not agree
on the issue of licensing
of new commercial banks
having any connection
with Industrial houses.
given above is/are correct
(a) Only 1
(b) Only 2
(c) Both 1 & 2
(d) Neither 1 nor 2
28. What is holding the RBI from
finalising the existing draft
guidelines before issuing new
commercial bank licenses?
1. Existing regulations in
the RBIs views are not
sufficient to address any
possible violations by
industrial houses who are
already entrenched in
different kinds of
business.
2. As of now the RBI is not
legally empowered to
supersede the boards of
directors of recalcitrant
banks if the need arises.
105


(a) Only 2 (b) Both 1 & 2
(c) Neither 1 nor 2
(d)None of these
29. Which of the following is the
theme of the passage
(a) To stop industrial houses
who are promoters of
such business, other than
banking.
(b) To point out the bone of
contention in policy
making between the
Central government and
the Central Bank of
India.
(c) To point out the reason
behind Indira Gandhis
bank nationalisation
drive in 1969.
(d) To emphasise upon the
need of an effective
regulation
before
finalising any draft
guideline or issuing
licenses to commercial
banks promoted by big
industrial houses of
diverse business.
Passage 6
There is a Portuguese word
Saudade, a word that makes into lists
of those hardest to translate into
English. It describes a deep, heartcrushing nostalgic longing for
something someone loves,
something someone lost. That is the
word to describe the emotion that
must have driven Housefull: The
Golden Age of Hindi Cinema, edited
by Ziya Us Salam. This record of
notable films from the
1950s and 1960s is written by
journalists Ziya Us Salam, Suresh
Koh li, Anuj Kumar, and Vijay
Lokapally.
How do you write about films
you obviously love? It is a tricky feat
106
to accomplish. You could part the

curtains and delve into the inside
story, which could slip into gossip
magazine territory. Or you could start
analysing these movies as
compositions of images and signs. It
could range from insightful to
boring, at worst pretentious. Or you
use the movies as a starting point and
funnel out the discussion into the
social, economic, and political
context, and then land in academic
territory.
30. What according to the passage
is difficult to achieve?
1. The homesickness in
translating a work into
English which is close to
ones heart.
2. To find out a way of how
to start writing about a
film which is very close to
ones heart.
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor2
31. The problem in writing about
good films is that, one may
end up
1. infringing the academic
territory.
2. reducing it to gossip
mongering.
3. trying to be pretentious.
4. boring
and
over
insightful.
(a) Only 1, 2, 3
(b) Only 1, 2, 4
(c) Only 1, 3, 4
(d) 1, 2, 3 and 4
32. What does the passage imply?
(a) A book review by its
author (of Housefull: The
Golden Age of Hindi
Cinema).
(b) A book review by Zia Us
Salam.
(c) A book review by Zia Us
Salam, Suresh Kohli,
Anuj Kumar and Vijay
Lokapally.
(d) Obstacles in writing a
film review.
Passage 7
The South Asian region is energy
deficient as it does not produce
enough oil and gas to meet its needs.
Thus, it depends heavily on imports.
In the emerging energy and
environmental crises, the SAARC
region stands quite vulnerable,
compared to developed economies.
It is estimated that the energy needs
of South Asia will increase three
times in the next 15 to 20 years.
Some of the SAARC member
states have considerable experience
in using environment-fr iendly,
renewable energy sources. This
includes wind, solar and biogas
plants in India, micro-hydro plants
in Nepal, micro financing for rural
energy in Bangladesh, grid
connected small hydro plants in Sri
Lanka and small hydro and solar
plants in Pakistan. The clean energy
resource potential is yet to be
exploited as countries like Nepal,
Bhutan and Pakistan either remain
energy deficient or are not able to
optimally harness and utilise their
resources. The dependence on
import
calls
for
greater
diversification of energy options
especially towards renewable
resources.
33. In the emerging energy and
environmental crises, the
SAARC region stands quite
vulnerable as compared to the
developed economy because1. It depends heav ily on
imports.


2. Diversification of energy
options
especially
towards
renewable
resources
remains
unexplored.
Which one of the statements
given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) None of these
environmental-friendly
energy resources and is
able to optimally harness
them.
3. The SAARC Region
imports technology from
the developed economy
to optimally harness its
untapped renewable
resources rather than
importing petroleum
products.

statements conveys the key
message of the passage?
(a) India, a SAARC member
country
has
a.
considerable experience
in
environmentalfriendl y, rene wable
energy resources than
other member countries.
(b) Other member countries
should also explore their
wind, solar and biogas
energy options like India.
(c) Nepal, Bhutan and
Pakistan are extremely
lagging behind, than
their counterparts in the
SAARC region.
(d) All the SAARC member
countries should try to
reduce their dependence
on oil and gas imports
and should try to explore
their untapped renewable
resources optimally.
36. A guy sent an email to the boss

of a big firm saying we were
not able to access the
following application, and
we need to know why, the
boss gets angry on reading
this the reason may be
(a) Email did not convey the
right massage.
(b) The language used in the
email was not good.
(c) Emails are not good way
for formal massages.
(d) The
Pshchological
method
and
the
expression was not
conveyed
properly
because of lack of physical
interaction.
35. With reference to the passage,

energy and environmental
crises can improve in South
Asian Region, if
1. The SAARC region
reduces its oil and gas
imports.
2. The SAARC region
explores new avenues of
non-conventional,
37. Technology is play ing an

important role in interaction
processes of common people
with the government, the
reason could be
(a) Efficiency and freedom.
(b) Growing numbers of
mobile phones and
internets in far flung
areas also.
Select the correct answer from

the following codes:
(a) Only 1
(b) Only 2
(c) Only 1 and 2
(d) 1, 2 and 3
(c) Accessibility is short

time, thus saving time and
energ y and money.
(d) All of the above.
38. The best way to answer
financial inclusion is
(a) Use of mobile phones.
(b) Use of internet
(c) Use of knowledge of
banks.
(d) Use of private sectors.
39. There is a danger of bomb
blast in your area. You, as the
superintendent of police will
use which of the means to
disseminate the news and
alert the people. Your mean
should be the best.
(a) E- mails and SMS
(b)Television and radios.
(c) Newspapers(d)
Campaigning
40. Chief Executives and other
senior leader place the highest
value
on
effectives
i n t e r p e r s o n a l
communication. What could
be the reason for this?
(a) The productivity depends
on
effectives
communication .
(b) Effective communication
makes the workers
fearless.
(c) Effective inter personal
communication ensures
good
working
conditions.
(d) Personality of a person
depends on the effective
communication skills.
Direction: P, Q, R, S, T, U, V, and
W are sitting around a circle and are
facing the centre.
1. P is second to the right of
T
107


2. S is not the neighbors of
P
3. V is the neighbors of U
4. is not between S and W
5. W is not between U and
S.
41. Which two of the following
are not neighbors?
(a) R, V
(b) U, V
(c) R, P
(d) Q, W
42. Which one is immediate right
to the V?
(a) P
(b) U
(c) R
(d) T
correct?
(a) P is to the immediate right
of Q
(b) R is between U & V
(c) Q is to the immediate left
of U
(d) U is between W & S
44. What is the position of S?
(a) Between U & V
(b) Second to the right of P
(c) To the immediate right of
W
(d) Between P & Q
45. Who is sitting opposite to U?
(a) P
(b) W
(c) S
(d) Q
Direction: Eight persons- E, F, G,
H, I, J, K, and L are seated around
a square table two on each side.
There are three ladies who are not
seated next to each other. J is
between L & F. G is between I & F.
H a lady member is second to the
left of J. F, a male member is seated
opposite to E, a lady member. There
is a lady member between F & I.
46. Who among the following is
to the immediate left of F?
(a) G
(b) I
(c) J
(d) H
108
47. What is true about J & K?

(a) J is male, K is female
(b) J is female K is make
(c) Both are female
(d) both are male
48. How many persons are seated
between K & F?
(a) 1
(b) 2
(c) 3
(d) 4
49. Who among the following
are three lady members?
(a) E, H & J (b) E, F, & J
(c) E, H & G(d) C, H & J
50. Who among the following is
too seated between E & H?
(a) F
(b) I
(c) K
(d) J
Each question below is followed by
two arguments numbered I and II.
You have to decide which of the
arguments is a Strong argument
and which is a weak argument from
the codes given below:
(a) If only argument I is
strong.
(b) If only argument II is
strong.
(c) If neither argument I nor
II is strong.
(d) If both argument I and II
are strong.
51. Statement: Should all the
factories in the cities be
shifted to the outskirts; far
away from the main city?
Arguments:
(I) Yes, this is an ess ential
step for controlling
pollution in the city.
(II) No, such a step will lead
to a lot of convenience to
the employees of the
factories and their
families as well.
Direction: In each of the following
questions two statements are given
and there statements are followed by

two conclusions numbered (i) & (ii).
You have to take the given two
statements to be true even if they
seem to be at variance fro m
commonly known facts. Read the
conclusions and then decide which
of the given conclusions logically
follows from the two given
statements disregarding commonly
known facts.
Give answer
(a) if only (i) conclusion follows
(b) if only (ii) conclusion follows
(c) if neither (i) nor (ii) follows
(d) if both (i) and (ii) follow
52. Statements:
Some actors are singers.
All the singers are dancers.
Conclusions:
(i) Some actors are dancers.
(ii) No singer is actor.
53. Statements:
Some Mangoes are yellow.
Tino is a Mango.
Conclusions:
(i) Some Magoes are green.
(ii) Tino is a yellow.
54. Statements:
Some pearls are jewels.
Some jewels are ornaments.
Conclusions:
(i) Some jewels are pearls.
(ii) Some ornaments are
jewels.
55. Statements:
All the actors are girls.
All the girls are beautiful.
Conclusions:
(i) All the actors are
beautiful.
(ii) Some girls are actors.
56. A car covers a certain distance
at the speed of 52km/hr in 6
hours. If car was to cover the

57. The sum of the squares of two

consecutive even number is
6500, what is the smaller
number?
(a) 54
(b) 56
(c) 52
(d) 59
58. If 2/3 of a number is 560, than
what is of that number?
(a) 730
(b) 530
(c) 630
(d) 830
59. What is the number of
diagonals of a polygon of 15
sides?
(a) 45
(b) 90
(c) 180
(d) 135
1 54
32417
23
M utu al Fund s - 40%
H igh r isk sto ck - 30%
60. The ratio of the speed of bus

and car is 3:2, if bus takes 16
Blue Chip more time taken the car
hours
Stock s - 1 8%
to cover the distance, find the
Gov. Bo nds
actual
time
and Secu rities
- 5 9% taken by the car?
(a) 8 hrs
(b) 12 hrs
(c) 16 hrs (d) 24 hrs
61. If the parallel side of the
trapezium are 45 cm and 35
cm respectively, and the area
is 4000 sqcm,what is the
height of the trapezium?
(a) 80 cm (b) 100 cm
(c) 120 cm (d) 50 cm
(a) 10 : 3
(b) 11:13
(c) 3 : 10
15%
At yiel d
20%
64. 20 person sit around the

circular table. What is the
probability that 10 particular
person sit together?
(a)
5
3 26
(b)
(c)
(d)
65. A tank has a leak which would
empty it in 12 hours. A tap is
turned on which fills the tank
at the rate of 125 litre/hr. It
gets emptied in 28 hours.
What is the capacity of the
tank?
(a) 3045 Litres
(b) 2265Litres
(c) 2025Litres
(d) 2625Litres
Direction: The question below are
based on the following pie- charts.
Total Investment Funds = Rs 10
Core 5 lakhs
60% At
7% - 9%
yield
Municipal Bonds
66. How much money was

invested in high risk stocks
from investment portfolio?
(a) Rs. 35,15,000
(b) Rs. 30,15,000
(c) Rs. 80,10,000
(d) Rs. 19,00,000
67. Least amount of money for
the investment portfolio was
earned by which of the
following?
(a) Gov. bonds and securities
(b) Municipal bonds
(c) State issued bonds
(d) Blue chip-stock
68. How much money belovging
to the investment portfolio
was invested in state-issued
bonds approx?
(a) Rs. 20,00,000
(b) Rs. 16, 87, 600
(c) Rs. 16,57,800
(d) Rs. 15,67,800
Direction: (24-26)
Year 2010
Year 2009
90
62. (5 2)2= ? 80
(a) 45 + 4 (b) 45
(c) 9 45 (d) 9
63. The area of square is 625
sq.cm. Find the ratio of the
length to the breadth of
rectangle whose length is
twice the side of the square
and breadth is 10 cm less than
the side of this square?
25%
At yi eld
18%
(d) 3 : 7
Percent Pro?t
same distance in 4 hours, at

what speed should the car
travel?
(a) 78 km/hr(b) 80 km/hr
(c) 85 km/hr(d) 90 km/hr
80
70
60
50
40
30
20
10
y
en )
as %
Tr e s ( 10
State i ssued
te
o
bonds (30%) n
Municipal bond (60%)
Gov. Bon ds an d Securities
C
D
Co mpany
69. If the expenditure by

company D in year 2009 was
Rs. 40 lacks, what was its
income in that year?
109


(a)
(b)
(c)
(d)
Rs. 60 lakhs
Rs. 56 lakhs
Rs. 70 lakhs
Rs. 68 lakhs
(c) Rs. 36 lakhs

(d) Rs. 30 lakhs
70. If the income of company A

in 2010 was Rs 50 lakhs, what
was its expenditure in that
year?
(a) Rs. 31.25 lakhs
(b) Rs. 32.15 lakhs
71. If the expenditure of company

B in 2010 and 2009 are equal,
what was the ratio of its
income in year 2009 to that
of 2010?
(a) 18:17
(b) 17:16
(c) 16:17
(d) 19:16
Direction: The given depicts the accidents reported in a state study carefully
and answer the questions
Types of Accidents
Year
Daths
Terminal
major
Minor
2005
130000
65200
45000
46200
2006
180200
42500
35200
45000
2007
120000
38400
40000
50000
2008
98400
5000
45000
46000
2009
102000
40500
53200
40000
2010
110600
60000
50400
37000
72. What is the approx

percentage , reduction in
deaths in 2008 from the
previous year?
(a) 16%
(b) 18%
(c) 28%
(d) 8%
(e) 26%
73. In which of the following **
of years is the ration of
number of (accidents
terminal 85: 81)?
(a) 2007: 2008(b)
2005:2006
(c) 2007:2005(d)None
74. In which year the total no. of
accidents reported the hights?
(a) 2005
(b) 2006
(c) 2007
(d) 2008
75. What is the ratio of minor
accidents in2009 to those in
2010?
(a) 14:69
(b) 30:41
(c) 40:37
(d) 15:47
Direction: In each question below
is given a statement followed by two
assumptions numbered I and II. You
110
have to consider the statement and

the following assumption and decide
which of the following assumption
is implicit in the statement. Given
answer.
(a) If only assumption I is
implicit
(b) If only assumption II is
implicit
(c) If neither I nor II is
implicit
(d) If both I and II are
implicit
76. Statement: The railway
authority has rescheduled the
departure of many long
distance trains and put up the
revised fining on its website.
Assumption:
(I) The passengers may note
the change in departure
time from the website.
(II) The passengers may be
able to notice the change
and board their respective
trains before departure.

77. Statement: The school has
decided to give five grace
marks in English to all the
student of std. IX as the
performance of these students
in English was below
expectation.
Assumption:
(I) Majority of the students of
std. IX may still fail in
English even after giving
grace marks.
(II) Majority of the students of
std. IX may now pass in
English after giving grace
marks.
78. Statement: You need to be
talented to identity talent.
Assumption:
(I) Talent is acquired and
developed.
(II) Talent is hereditary.
79. Statement: Job rotations help
employees get an overview of
the organization.
Assumption:
(I) Job rotation is the only
method to get an
overview
of
the
organization.
(II) It is requised to have an
overview
of
the
organization.
80. Statement: Banks should
always checks financial status
before lending money to a
client.
Assumption:
(I) checking before lending
would give a true picture
of the clients financial
status.
(II) Clients sometimes may
not present the correct
picture of their ability
foreplay loan amount to
the bank.

Answers with Explanations

1.
(a)
2.
(d)
3.
(c)
4.
(b)
5.
(d)
6.
(c)
7.
(c)
8.
(b)
9.
(a)
10.
(b)
11.
(a)
12.
(b)
13.
(a)
14.
(c)
15.
(c)
16.
(a)
17.
(c)
18.
(d)
19.
(d)
20.
(c)
21.
(a)
22.
(b)
23.
(d)
24.
(c)
25.
(b)
26.
(a)
27.
(c)
28.
(b)
29.
(d)
30.
(b)
31.
(d)
32.
(a)
33.
(c)
34.
(d)
35.
(b)
36.
(d)
37.
(d)
38.
(a)
39.
(a)
40.
(a)
41.
(a)
42.
(d)
43.
(c)
44.
(c)
45.
(a)
46.
(c)
47.
(d)
48.
(c)
49.
(c)
50.
(c)
51.
(a)
52.
(a)
53.
(c)
54.
(d)
55.
(d)
56.
(a)
57.
(b)
58.
(c)
59.
(b)
60.
(b)
61.
(b)
62.
(d)
63.
(a)
64.
(c)
65.
(d)
66.
(a)
67.
(d)
68.
(d)
69.
(d)
70.
(c)
71.
(d)
72.
(d)
73.
(d)
74.
(c)
75.
(d)
76.
(d)
77.
(d)
78.
(a)
79.
(a)
80.
(a)
111

MOCK PAPER
For GS Paper-I
Preliminary Examination 2016
1. Why did the trade and

industries of Bengal suffer
heavily after the battle of
Plassey?
(a) Indian
merchants
faced stiff competition
from the English.
(b) Indian merchants were
at a disadvantageous
situation on account of
payment of duties by
them while the English
trade was duty-free.
(c) Producers were forced
through the use of
violent methods to sell
their, commodities at
lower prices.
(d) All of the above
2. The market in Britain was
completely closed for the
goods produced in India. The
device which was used by
the English for achieving the
arrangement was:
(a) Orders were issued
that the ships carrying
Indian goods would
not be allowed to touch
ports in Britain.
112
(b) The British Indian

Government itself
purchased Indian
goods and sold them in
the markets in Africa at
fabulous profits.
(c) The British Indian
Government imposed
restrictions on the
export of Indian
goods.
(d) A heavy import duty
was imposed on Indian
goods imported into
Britain with a view to
make the export and
sale of Indian goods in
Britain an uneconomic
proposition.
incorrect?
(a) In 1859, the separate
armies
of
the
presidencies were
unified.
(b) The entire army of the
British Government in
India -was brought
under the control of
the Commander-in
Chief
(c) For every three Indian.

soldiers, there was one
European soldier.
(d) None of the above.
4. By passing the Regulating Act
of 1773, the British.
Parliament tried:
(a) To exercise its own
authority on the affairs
of the company
(b) To remove the evils
found under the rule of
the company
(c) To protect the Indian
rulers from the high
handedness of the
officers
of
the
company.
(d) To regulate the
companys trade with
India.
5. Which of the following was
NOT one of the effects of
Nadir Shahs invasion?
(a) It
caused
an
irreparable loss to the
prestige of the empire.
(b) It exposed the hidden
weakness of the
empire to the Maratha
Sardars and the


foreign
trading
companies.
(c) It ruined imperial
finances and adversely
affected the economic
life of the country.
(d) It destroyed all the
initiative of the
impoverished nobles,
most of whom retired
from active court life.
6. Match the following List-I
with List-II and answer as
per the code given below:
List-I
List-II
A. Eka
1. N.G. Ranga
Movement
B. All India
Kisan
2. Khoodi Mullah
and Sabha Shambhu Pal
C. Pabna
3. Madari Pasi
Revolt
D. Andhra 4. Swami
Ryots
Sahajanand
Association
Code:
(a)
(b)
(c)
(d)
A
3
4
4
3
B
4
3
3
4
C
1
1
2
2
D
2
2
1
1

statements: .
1. The revolt of Chhatar
Singh, the governor of
Multan, precipitated the
second Anglo-Sikh war.
2. The Indian War of
Independence was written
by V.D. Savarkar.
Code:
(a) Only 1 is correct
(b) Only 2 is correct
(d) Neither 1 nor 2 is
correct
8. Match the following List-I
with List-Il and answer as
A.
B.
C.
D.
per the codes given below:

List-I
List-II
Delhi.
1. Colin Campbell
Jhansi
2. John
Nicholson
Lucknow 3. Hugh Rose
Arra
4. Winset Taylor
Code:
(a)
(b)
(c)
(d)
A
2
1
4
2
B
3
3
1
3
C
1
4
2
4
D
4
2
3
1

movements can be said to
have initiated the process of
associating the workers with
the wider nationalist struggle
against British?
(a) Swadeshi Movement
(b) Home Rule Movement
(c) N o n - C o o p e r a t i o n
Movement.
(d) Anti-Simon Agitation
NOT
one
of
the
administrative and economic
causes of the Rebellion of
1857?
(a) The Indian aristocracy was
deprived.of power and
position since all high
posts, civil and military,
were reserved for the
Europeans.
(b) The administration of
Awadh
after
its
annexation, received
popular acclaim and
aroused the jealousy of
other ruling princes.
(c) The land revenue policy
was most popular.
(d) None of the above
11. The main motive of the British
Indian Government in
developing modern road and

rail communication was:
(a) To improve the general
communication facilities
available to the people
(b) To modernize India
(c) To improve t he prospects
of the British companys
trade and commerce in
India(d) To improve trade. and
commerce inside India
incorrect?
1. In 1877 the Prarthana
Samaj of Bombay was
founded.
2. Two of its chief architects
were Mahadev Govind
Ranade and Ramkrishna
Bhandarkar.
3. The leaders of the
Prarthana Samaj were not
influenced by the Brahmo
Samaj.
4. The Prarthana Samaj
leaders condemned the
caste system and the
practice of untochability.
Code:
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1 and 3
(d) 3 and 4
statement is wrong?
(a) The Hindu College of
Calcutta founded in 1817,
played an important role in
modernising the ongoing
movements in Bengal.
(b) David Hare, an associate
of Rammohan Roy, took
keen interest. in starting the
Hindu College.
(c) Henry Vivian Derozios
students, collectively
113


called the Young Bengal
ridiculed all old social
traditions and customs.
(d) The young Bengal
movement came to an end
after Derozios dismissal
from the Hindu College and
his sudden death in 1831.

wrong?
(a) Dayananda, whose
original name was
Mula Shankara, was
born in Kathiawad in
1824.
(b) In 1863 Dayanand
started preaching his
doctrine - there was
only one god who was
to be worshipped not
in the form of images
but as a spirit.
(c) In 1875 he founded the
Arya Samaj in Lahore.
(d) The Satyarth-Prakash
was
his
most
important book.
15. Assertion (a): The early
nationalists in the initial
phases paid relatively little
attention to the question of
workers.
Reason (R): The early
nationalist did not wish to,
in any way; weaken the
common struggle against
British rule, by creating any
divisions within the ranks of
the Indian people.
statements:
1. The period after 1858
witnessed a gradual
widening of the gulf
between the educated
Indians and-the British
Indian administration.
2. In 1876, Dadabhai
114
Naoroji organized The

East India Association
in London to discuss
the Indian question and
to influence British
public men to promote
Indian Welfare.
Code:
correct
statements:
1. The system of Dual
G o v e r n m e n t
established by the
company in Bengal
remained in operation
for five years.
2. The establishment of
this masked system
was a sign of the
c o m p a n y s
unwillingness
to
recognize that it had
ceased to be a mere
trading body and
became a ruling
power.
Code:
correct
machine based industries
were established in India, in
the second half of the 19th
century?
1. Cotton-Textile
2. Jute
3. Coal-Mining
4. Cement
Select.the answer from the
codes given below:
(a) Only 1 and 2

(b) Only 1 and 3
(c) Only l, 2 and 4
(d) All the above
statements:
1. The All India Trade
Union Congress was
formed in 1920.
2. Lokamanya Tilak,
played an important
role in the formation of
the AITUC
3. Lala Lajpat Rai, was
appointed as its first
president.
Code:
(a) Only 1
(b) Only 2 and 3
(c) Only 1 and 2
(d) All the above
statements regarding the
Pitts India Act 1784:
1. The Board of control
was established to
control all civil,
military and revenue
affairs
of
the
company.
2. In India, the chief
government
was
placed in the hands of
a Governor General
and a council of four.
Code:
correct
statements:
1. One
significant
development in the
second half of the 19th
century
was
establishment of large


scale machine based
industries in India.
2. The first textile mill
was started in Bombay
by
Cowasjee
Nanabhoy in 1863 and
the first jute mill in
Rishra (Bengal) in
1865.
Code:
correct
22. Which of the following Acts
authorized for GovernorGeneral to appoint Indian
Law Commission to study
and codify various rules and
regulations prevalent in
India?
(a) Charter Act of 1813
(b) Charter Act of 1833
(c) Charter Act of 1853
(d) The Act for the better
Government
of
India,1858
23. Assertion
(a): The
Communist
Party
dissociated itself from the
Quit India Movement
launched by Gandhiji in
August 1942.
Reason (R): With the Nazi
attack on the Soviet Union
in 1941,: the communist
argued that character of the
war had changed from an
imperialist war to peoples
war.
statements:
1. The decision to
boycott
Simon
Commission
was
taken by the Congress
in its 1927 Bombay
Session.
Muslim League also
decided to Boycott
Simon Commission.
Which of the above
statements are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements is wrong in the
context
of
Karachi
Congress 1931?
(a) It was presided over
by Vithalbhai Patel
(b) The congress decided
to participate in the
Second Round Table
Conference.
(c) The resolution on
Fundamental Rights
was passed
(d) The future economic
policy of the Congress
was also spelt out
26. Arrange the following
events chronologically:
1. Cripps Mission
2. Cabinet Mission
3. Quit India Movement
4. Individual Satyagraha
5. R.I.N Mutiny
Select the correct answer
from the codes given below:
Code:
(a) 1-4-2-3-5
(b) 4-1-3-5-2
(c) 4- 1-3-2-5
(d) 4-1-2-3-5
not correct?
(a) The decision to launch
Individual Satyagraha
Movement was taken
in Ramgarh session of
the Congress
(b) The session presided
2.
by
MaulanaAbul
Kalam Azad in 1940
launched the Individual
Satyagraha Movement
(c) The first Satyagrahi of
Individual Satyagrahi
Movement
was
Rajagopalachari
(d) Srikrishna Sinha, the
premier of Bihar
during Congress rule
participated
in
Individual Satyagraha
Movement
not included in the Nehru
Report?
(a) India must be given
Dominion Status.
(b) The Governor General
must be only the
constitutional head.
(c) There was to be no
separate electorate
(d) Dyarchy should be
introduced both at the.
centre as well as in the
provinces
29. In the elections held in
January-February 1937,
Congress failed to emerge
as a party with absolute
majority in which of the
following province?
(a) Bengal (b) Madras
(c) United Provinces
(d) Central Provinces
statements:
1. Sisir Kumar Bose
formed the Indian
Independence League.
2. A womens regiment of
Azad Hind Fauz was
formed under the
command of Kalpana
Dutta.
115


Codes:
(d) Neither 1 nor 2
31. Match
the
List-I
(Grasslands) and List-II
(Regions) and choose the
correct answer from the
code given below.
List-I
List-II
(Grasslands) (Regions)
(a) Steppes 1. Australia
(b) Pustaz 2. North America
(c) Prairies 3. Hungary
(d) Downs 4. Eurasia
Code:
(a)
(b)
(c)
(d)
A
4
3
4
3
B
3
4
3
4
C
2
2
1
1
D
1
1
2
2

statements:
1. Polar climate exist
poleward beyond 70
latitude.
2. The icecap climate
occurs over interior
Greenland
and
Antartica.
3. The main areas of
marine west coast
climate
are
Northwestern Europe,
Southern
Chile,
Southern Australia and
New Zealand.
Which of the above
statements is/are correct?
(a) only 1 and 2
(b) only 1 and 3
(c) only 2 and 3
(d) All the above
statements about global
warming:
1. The
primary
116
Greenhouse gases are

Chlorofluorocarbons,
Methane, nitrous oxide
and ozone.
2. The
largest
concentration of green
houses
in
the
atmosphere is carbon
dioxide
3. The processes that
warm the atmosphere
are
collectively
referred to as the green
house effect.
Which of the above
(a) only 1 and 2
(b) only 1 and 3
(c) only 2 and 3
(d) All the above
statements:
1. The time taken for
atmospheric CO2 to
adjust to changes in
sources to sinks is 4060 years.
2. It is estimated that the
global temperature will
rise by between 1C
and 3.5C by the year
2100.
3. The mean sea level may
rise upto 100 cm by the
year 2100.
Which of the above
(a) only 1 and 2
(b) only 1 and 3
(c) only 2 and 3
(d) All the above
statements:
1. Nearly 70 percent of
the water that falls on
land returus to the
atmosphere through
evaporation from over
the oceans as well as

from other places.
2. The percentage of
lakes water is only
0.01 percent of the
total water.
Which of the above
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. The temperature of
surface
water
decreases from the
equator towards the
poles because the
amount of insolation
decreases poleward.
2. Cold ocean current
raise the temperature in
cold areas.
3. Warm ocean currents
decrease
the
temperature in warm
ocean areas.
Which of the following
(a) only 1 and 2
(b) only1
(c) only 2 and 3
(d) All the above
statements:
1. The
average
temperature of surface
water of the oceans is
about 21C
2. The rate of decrease of
temperature
with
increasing latitude is
generally 0.5C per
latitude.
Which of the above
(a) only 1


(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. The oceans in the
northen hemisphere
record relatively higher
temperature than in the
southern hemisphere.
2. The average annual
temperatures for the
northern and southern
hemisphere are around
12C and 19C
respectively.
Which of the above
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. The salinity of water in
the surface layer of
oceans depend mainly
on evaporation and
percipitation.
2. Salinity of 20.7 percent
has been considered as
the upper limit to
demarcate brackish
water.
Which of the above
(a) only 1
(b) only2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. The average salinity of
the Atlantic ocean is
around 36 percent.
2. The average salinity of
the Indian ocean is 37
percent.
Which of the above

(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. Humbolt is a warm
current of the pacific
ocean.
2. Benguela is a cold
ocean current of the
Atlantic ocean.
3. Agulhas is a warm
current of the Indian
ocean.
Which of the above
(a) only 1 and 2
(b) only 3
(c) only1
(d) All the above
statements:
1. Out of the total solar
insolation that reaches
the earths surface only
0.1 percent is fixed in
photosynthesis.
2. The producers include
green plants and
decomposers in an
ecosystem.
Which of the above
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. Tropical regions which
occupy only about
one-fourth of the total
area of the world,
contain about threefourth of the world
human population.
The tropical rain
forests contain 65
percent of the species
on the earth.
Which of the above
(a) only 1 (b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. When the sun, the
moon and the earth are
in straight line the
height of the tide will
be lower.
2. Twice in a month,
when the moons orbit
is closet to the earth
unusually high and low
tides occur.
Which of the above
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
statements:
1. An ocean current is
usually strongest at the
surface and decreases
in strength with depth.
2. Most current have
speeds less than or
equal to 5 kw.
Which of the above
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
46. Prohibition of discrimination
on groups of religion etc
(Article 15 of the
constitution of India) is a
fundamental
right
2.
117


classifiable under
(a) The right to freedom of
religion
(b) The right against
exploitation
(c) The
cultural
&
educational rights
(d) The right to equality.
47. According
to
the
constitution of India the
term district judge shall
not include.
(a) Chief
presidency
magistrate
(b) Sessions Judge
(c) Tribunal Judge
(d) Chief justice of a small
cause court.
statements is incorrect?
(a) Goa attainted full state
hood in 1987
(b) Diu is an island in the
Gulf of Khambhat
(c) Daman & Diu were
separated from Goa by
the 56th Amendment of
the constitution of
India
(d) Dadra & Nagar Haveli
were under French
colonial rule till 1954
49. If a new state of the Indian
union is to be created, which
one of the following
schedules
of
the
constitution must be
amended?
(a) First
(b) Second
(c) Third
(d) Fifth
50. Which
constitutional
authority recommends the
principles governing the
grants in- aid of the
revenues to the sates out of
the consolidated fund of
India?
118
51.
52.
53.
54.
55.
56.
(a) Inter- State Council

(b) Finance Commission
(c) Union Ministry of
Finance
(d) Public
Accounts
Committee
The tenure of Jammu &
Kashmirs Chief Minister is
(a) 4 years
(b) 5 years
(c) 6 years
(d) 7 years
By which Act was the
public service commission
established for first time in
India?
(a) Indian Council Act
1892
(b) Council Act 1909
(c) Government of India
Act 1919
(d) Government of India
Act 1935
When was the Antidefection Act passed?
(a) 1985.
(b) 1986
(c) 1987.
(d) 1988
According to Article 1 of
the constitution, India is a:
(a) Group of states
(b) Federation of states
(c) Confederation of states
(d) Union of states
National Development
Council was constituted on
(a) 6 August 1950
(b) 1 April 1951
(c) 6 August 1952
(d) 16 August 1952
Consider the following
statement about National
Anthem
(1) It was originally
composed in English.
(2) It was first sung on 27
December 1911 at the
Kolkata session of the

Indian
National
Congress.
(3) It was adopted by
constituent assembly
on 24 January 1950.
Which of the above
statement is/are true?
(a) All of the above
(b) 1 & 3
(c) 2 & 3
(d) 1 & 2
statement about National
Song
(1) It has an equal status
with Janagana- mana.
(2) First it was sung in
1896 session of the
I.N.C
Which of the above
(a) Both 1 & 2
(b) Only 1
(c) Only 2
(d) neither 1 nor 2
58. Match the following:
Article
Subject
1. 14.
a. Equal opportunity in
public employment.
2. 15.
b. Abolition of
untouchables.
3. 16.
c. No discrimination on
grounds of religion, race,
ease race.
4. 17.
d. Equality before law.
(a) 1- a,2- b,3- c, 4- d
(b) 1- d,2- c,3- a, 4- b
(c) 1- b,2- a,3- d, 4- c
(d) 1- c,2- d,3- b, 4- c

statement about Council Of
Ministers
(1) Its
function
is
determined by the
cabinet.
(2) It is collectively
responsible to the
Prime Minister.


Which of the above
(a) Only 1. (b) Only 2
(c) Both 1 & 2
(d) neither 1 nor 2
statements about Attorney
General of India:
1. He is entitled to the
privileges of a member
of parliament.
2. He is prohibited to take
appointment as a
director in any
company.
3. He is not allowed to
take up private
practice
Which of the above
statement is/are?
(b) 2 & 3
(c) 1 & 3
(d) 1 & 2
statements about CAG:
1. The CAG has control
over the issue of
money from the
consolidated fund of
India.
2. He is appointed by the
president for a full term
of 6 years or 65 years
of age whichever is
earlier.
Which of the above
statement is/are?
(a) Both 1 & 2
(b) Only 1 (c) Only 2
(d) Neither 1 nor 2
62. Match the following.
No. of
Seats in
States
1. 18
2. 16
3. 19
4. 11
a.
b.
c.
d.
Lock Saba
Bihar
Andhra Pradesh
Maharashtra
Gujarat
(a)
(b)
(c)
(d)
1- a,2- b,
1- b,2- a,
1. c,2- d,
1- d,2- c,
3- c,
3- c,
3- a,
3- a,
4- d
4- d
4- b
4- b

statements
1. Article 250 mentions
that the parliament can
legislate for the whole
or any part of India or
any matter mentioned
in the state list during
the
period
of
emergency.
2. Article 338 mentions
National Commission
for scheduled tribes.
Which of the above
(a) Both 1 & 2
(b) Only 1
(c) Only 2
(d) neither 1 nor 2
statements
1. High court judges
retire at the age of 65.
2. Out of 21 high court
three
having
jurisdiction over more
than one state.
3. Article 32 of the
constitution grants an
extensive original
jurisdiction of the
Supreme Court.
Which of the above
(b) Only 2
(c) 2 & 3
(d) 1 & 3
statements
1. The
appellate
jurisdiction of the high
court is both civil &
criminal.
2. According to article
227, every high court

has the power of
superintendence over
all court.
Which of the above
(a) 1 Only
(b) Only 2
(c) Neither 1 nor 2
(d) both 1 & 2
66. RBI uses its Liquidity
Adjustment Facility to
bring about changes in
(1) CRR and SLR
(2) Repo and Reverse
Repo Rates
(3) Bank Rate.
(a) 1, 2 and 3
(b) 1 and 2 only
(c) 1 only
(d) 2 only
67. Consider the following with
reference to India:
(1) Nationalisation of
commercial banks.
(2) Adherence to the Basel
norms by the banks.
(3) Adoption of village by
banks branches.
Which of the above can be
considered as steps taken to
achieve financial inclusion?
(a) 1, 2 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 3 only.
68. The objective of labour
Alleviation scheme, which
was started in 1994, is best
identified by the following:
(a) proper employment
for those employed in
hazardous work
(b) proper employment
for those employed in
manual scavenging
119


(c) proper employment
for
families
of
labourers in factories
and
other
establishment.
(d) proper employment
for laboures of
unorganized sector.
69. The RBI has taken the
following policy initiatives in
its monetary policy review
in December, 2011
(1) It has deregulated
interest rates on saving
& deposits with banks.
(2) It has permitted banks
to maintain one
percent lower SLR in
their books.
(3) It has deregulated in
interest rates on saving
Deposits above Rupees
one lakh.
(a) 1 and 2 only
(b) 1 only
(c) 2 only
(d) 2 and 3 only
70. Kasturba Gandhi Shiksha
Yojana was launched in
1997-98 in a few district
which of the following was
the criteria used to define
district as a unit for scheme
implementation?
(a) District should have
low female literacy rate
(b) District should have
low female literacy rate
and at least 50%
females belong to SC/
ST or OBC.
(c) Districts having low
females not more than
50% of general
population
(d) None of the above.
120

Not correct with regard to
the proposed Goods and
services tax (GST) in India?
(a) Tax revenues would be
shared between the
centre and states.
(b) Export will be zero
rated.
(c) Imports will be zero
rated.
(d) It will be on the basis
of tax on value addition
72. Which of the following are
correct with respect to
National Maternity Benefit
scheme?
(1) It was envisaged
in1995
(2) Financial assistance of
Rs.250 per pregnancy
is given
(3) It is a universal
scheme with no
distinction between
BPLI APL or Rural/
urban
(4) It covers only Rural
BPL women
(5) It covers only BPL
households.
(6) It covers Rural and
urban BPL households.
from the code given below:
(a) 1, 2 and 3 only
(b) 1 and 5 only
(c) 1, 2 and 4 only
(d) 1, 2 and 6 only.
statement:
(1) Rajrajeshwari Mahila
Kalyan Yojana provides
insurance projection to
women
(2) House loan Account
Scheme was started in
1989 for providing
housing facility.
given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
74. The lowering of Bank Rate
by the RBI many generally
result in
(1) More lending by
commercial banks.
(2) Mobilization of more
deposits
by
commercial banks.
(3) More liquidity in the
market
(4) Less liquidity I the
market
(a) 3 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1 and 4 only
75. Which of the following can
help in furthering the
objective of inclusive
growth in India?
(1) Expansion
and
strengthening
of
infrastructure.
(2) Implementing the
Right to Education Act.
(3) Promoting financial
inclusion.
(a) 2 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2, and 3 only
76. How many Bio Geographic
Zones in India?
(a) 8
(b) 6
(c) 12
(d) 10
77. Ocean Biomes are very
saturated Biomes and also

78.
79.
80.
81.
82.
they are ideal type of

Biomes.
Find from
following which are is
primary consumer in ocean
Biomes?
(a) Phytoplanktons
(b) Zooplankton
(c) Necton
(d) Benthos
Which one of the following
is pair of endangered
species?
(a) Garden lizard and
mexican poppy
(b) Hornbill and Indian
aconite
(c) Rhesus monkey and
saltree
(d) Indian peacock and
carrot grass
Genetic diversity in
agricultural crops are
threatened by:
(a) Indroduction with
high yielding varieties.
(b) Intensive use of
Fertilizers
(c) E x t e n s i v e
intercropping
(d) Intensive use of
biopesticises
The presence of diversity of
the junction of territories of
two different habitats in
known as:
(a) Bottle neck effect
(b) Edge effect
(c) Junction effect
(d) Pasture effect
Species very near to
extinction, if conservation
measures are not promptly
taken is:
(a) Rare species
(b) Endangered species
(c) Vulnerable species
(d) Mreatend species
The main reason for
83.
84.
85.
86.
extinction of species is:

(a) Pollution
(b) Destruction of habitat
(c) Hunting
(d) Climate change
Animals and plants are best
protected in
(a) Zoos
(b) National Park
(c) Botanical Garden
(d) Sanctuaries
Conservation
and
maintenance of wild life
within
the
natural
ecosystem is
(a) Ex Situ Conservation
(b) In Situ Conservation
(c) Botanical Garden
(d) All of the above
Which of the following is
not a characteristic of the
tropical rain forest Biome?
(a) About 200 cm of
precipitation
(b) Canopy
of
full
evergreen trees
(c) Climbing linans
(d) Permafrost
i) The cyclone Lehar is
about to hit the states
of Tamil Nadu and
Kerela and its impact is
likely is to be very
severe.
ii) Recently a case of
sexual harassment and
intimidation was filed
by a former female
employee of MY FM,
run by the Dainik
Bhaskar group (DB
corps), against CEO
Harish Bhatia .
Which of the above
statement/statements is/are
true?
(a) Only i
(b) Only ii
(c) Both i and ii

(d) Neither i nor ii
87. i) Pakistan
has
announced the setting
up of an Air Defence
Identification Zone
(ADIZ) to bolster its
claims over parts of the
disputed territories.
ii) Frances ban on the
Islamic face veil
(dating back to 2011)
was challenged in an
European
court
recently.
Which of the above
NOT true?
(a) Only i
(b) Only ii
(c) Both i and ii
88. i) The Sentinel Project
aims to improve our
understanding of how
many children at each
location of India have
TB disease in its
different forms.
ii) The
Insurance
Regulatory
and
Development Authority
(IRDA) has been asked
by The Union Health
and Family Welfare
Ministry, to remove,
from its draft circular,
provisions that exclude
people living with HIV
(PLHIV)
from
purchasing health
insurance products.
Which of the above
true?
(a) Only i (b) Only ii
(c) Both i and ii
121


89. i)
To curb dominance of
a single player in the
cable
sector,
broadcasting regulator
TRAI
has
recommended
restrictions on the
market share that a
single Multi System
Operator can hold.
ii) The Department of
Industrial Policy and
Promotion (DIPP) is
taking to the Cabinet on
a proposal to ban
complete takeovers by
foreign companies of
critical lifesaving drugs
production facilities.
Which of the above
NOT true?
(a) Only i
(b) Only ii
(c) Both i and ii
90. i) The New Pakistan
Army Chief is Major
Shabbir Sharif.
ii) The Italian Senate has
expelled three-time exPremier
Silvio
Berlusconifrom
Parliament over his tax
fraud
conviction,
ending, for now, his
two-decade legislative
run but not his political
career.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
91. i) A husbands refusal to
allow his wife to share
122
the household and stay

with him will amount to
domestic violence
under the Protection of
Women from Domestic
Violence Act (PWD),
as per a judgment of
Supreme Court .
ii) In
2005,
India
amended the Hindu
Succession Act to give
sons and daughters
equal
rights
in
inheriting agricultural
land barring five
southern States
Tamil Nadu, Kerala,
Andhra
Pradesh,
Karnataka
and
Maharashtra which
chose not to go
forward with the law.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
92. i) South Koreas and
Japan have gracefully
accepted Chinas new
air defence zone.
ii) Iran has invited U.N.
inspectors to visit its
Arak heavy-water
plant, in tune with the
spirit of the Geneva
agreement to be held in
the beginning of the
next year.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
93. i)
Odisha PCB has

recently ordered the
closure of TATA Steels
new blast furnace at
Dhenkanal district .
ii) Wind turbine major
Suzlon Group has
signed a contract with
Mitsui & Co for setting
up
106.6
MW
windfarm in Australia.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
94. i) To curb the growing
menace of insider
trading activities in the
stock market, regulator
SEBI are going to come
up with a new set of
norms.
ii) The National Green
Tribunal said that the
state law cant prevail
over central rules on
sand mining as it
dismissed Madhya
Pradesh governments
plea that its district level
environmental
committees be treated
as competent authority
for grant of clearance
for such activity.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
95. i) Maharashtra batsman
Vijay Zol has been
named captain of the


India Under-19 squad
for the ACC Asia Cup
in the UAE.
ii) Malala Yousafzai has
topped the list of
Britains
most
influential Asian .
Which of the above
false?
(a) Only i
(b) Only ii
(c) Both i and ii
96. i) Emphasising that a livein relationship is
neither a crime nor a
sin though socially
unacceptable in this
country, the Supreme
Court has urged
Parliament to consider
f r a m i n g
comprehensive
legislation to protect
the interests of women
and children in such
relationships.
ii) The Punjab and Haryana
High Court has
accepted a petition to
debar the Sehajdhari
Sikhs from voting in
Shiromani Gurudwara
Prabandhak Committee
(SGP) elections.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
97. i) China has been named
the country that
accounts for the largest
number of worldwide
hacking incidents.
ii)
The legislation, known

as the Ley Habilitante,
or Enabling Act, would
grant the Venezuelan
President Mr. Maduro
special powers which
allow him to rule the
country by decree.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
98. i) The Cabinet has
unanimously rejected a
proposal from the
Department
of
Industrial Policy and
Promotion (DIPP) to
ban complete takeovers
by foreign companies
of critical lifesaving
drugs
production
facilities.
ii) The CAD, which is the
difference between
inflow and outflow of
foreign exchange is
likely to come down
below 3 per cent of
GDP in the current
fiscal .
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
99. i) HIV/AIDS Bill aims to
protect the rights of
people infected and
affected by HIV and
was finalised by the
union health ministry in
2006.
ii)
CCAMLR stands for

Commission for the
Conservation of Arctic
Marine
Living
Resources and its
meeting was held at
Perth, Australia this
year.
Which of the above
true?
(a) Only i
(b) Only ii
(c) Both i and ii
100. i) P r o - m o n a r c h y
Rastriya Prajatantra
Party is all set to
become the fourth
largest party in the new
Constituent Assembly
(CA) Nepal .
ii)
Mamata banerjee has

been voted as Indias
most inspiring female
political leader who
has been able to strike
a perfect balance
between her career
and family life,
according to a survey.
Which of the above

true?
(a) Only i
(b) Only ii
(c) Both i and ii
123

ANSWERS WITH EXPLANTIONS

1.
7.
13.
19.
25.
31.
(d)
(c)
(d)
(d)
(a)
(a)
2.
8.
14.
20.
26.
32.
(d)
(a)
(c)
(a)
(d)
(d)
34. (c) The time taken for

atmospheric CO2 to adjust to
changes in sources to sinks is
20-50 years.
35. (b) Nearly 59 percent of the
water that falls on land returns
to the atmosphere through
evaporation from over the
oceans as well as from other
places.
36. (b) Warm ocean currents raise
the temperature in cold areas.
Cold ocean currents decrease
the temperature in warm ocean
areas.
37. (b) The average temperature of
surface water of the oceans is
about 27C.
38. (a) The average annual
temperatures for the northern
and Southern hemisphere are
around 19C and 16
respectively
39. (a) Salinity of 24.7 percent has
been considered as the upper
limit to demarcate brackish
water.
40. (a) The average salinity of the
Indian Ocean is 35 percent.
41. (b) Humbolt is a cold ocean
current of the Pacific Ocean.
Benguela is a cold current of
the Atlantic Ocean.
42. (a) The producers include all
green
plants,
which
manufacture their own food
through photosynthesis.
43. (a) The tropical rain forests
contain 50 percent of the
species on the earth.
124
3.
9.
15.
21.
27.
33.
(C)
(a)
(a)
(a)
(c)
(d)
4.
10.
16.
22.
28.
(b)
(b)
(a)
(b)
(d)
5.
11.
17.
23.
29.
44. (d) When the sun, the moon

and the earth are in a straight
line, the height of the tide will
be higher, these are called
Spring tides.
45. (c)
46. (d)
47. (c)
48. (d)
49. (a)
50. (b) Under the Article of 280 F.C
Recommends the grants
distribution.
51. (c) Under the provision of
Article 370 of Indian
constitution.
52. (c) Public Service commission
is in Article 312.
53. (a) During the Prime Minister
ship of Rajiv Gandhi.
54. (d)
55. (c) N.D.C. headed by Prime
Minister of India is not a
constitutional body.
56. (c) originally composed in
Bengali.
57. (a)
58. (b)
59. (a) It is collectively responsible
to the Lok Sabha.
60. (d) He is allowed to take up
private practice provided the
other party is not the state.
61. (c) CAG has no control over
the consolidated fund.
62. (b)
63. (b) 338-Schedule castes.
64. (c) H.C. Judges retire at the age
of 62
65. (d)
66. (d)
67. (d)
68. (a) [The aim was to provide
employment for those
(d)
(c)
(d)
(a)
(a)
6.
12.
18.
24.
30.
(d)
(c)
(c)
(b)
(d)
employed in hazardous work].

69. (d)
70. (a) [Districts having lowest
literacy rates, amongst females
are chosen].
71. (c)
72. (b) The scheme was launched
with to desease maternal
mortality Rate and improve the
health of women specially
those falling below poverty
line.
73. (c)
74. (c) [Lowering of Bank Rate by
RBI desease the Deposited by
commercial & increase in the
Liquidity in the Market].
75. (d)
76. (d)
77. (b) Zooplanktons are primary
consumers in ocean Biomes.
78. (a)
79. (a) High yielding crops variety
decrease the diversity of old
crops.
80. (b) Diversity at the junction of
territories called edge effect.
81. (b)
82. (b) Due to destruction of
habitats species dont survive
they gonna extinct.
83. (b) Best protection for animals
and plants are in National Park.
84. (b) In Situ Conservation
85. (d) 86. (b)
87. (a)
88. (c) 89. (d)
90. (b)
91. (a) 92. (b)
93. (b)
94. (c) 95. (d)
96. (a)
97. (b) 98. (c) 99. (a)
100. (a)
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Indian Satellite System

Amendments to the Arbitration and

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Sustainable Development Goals

SUSTAINABLE DEVELOPMENT GOALS

farm productivity for most

Paramparagat Krishi Vikas

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Sustainable Development Goals

and other centrally sponsored

advise States appropriately

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allocation of funds under Atal Mission

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depletion, boost local

development or a mix thereof, and

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AGRICULTURAL PROBLEMS AND ACTION TAKEN

provides unique opportunity to India

compliment the skill development

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Agricultural Problems and Action Taken

freedom in terms of resource

Mission will have a three-tiered, high

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Gujarat, the state Prime Minister

such steps as offering singlewindow clearances for

Many cities selected for new

(HRIDAY), the common

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cities, which are of cultural and

figured among the top 10 clean

as Viability Gap Funding for

The rail ministry is set to appoint

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promises made by rail minister

World Hindi conference in Bhopal

The 10th World Hindi

Chouhan made efforts to use

she corrected herself and stuck

Global rating agency Moodys

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banks from about 27 public

do not invest in infrastructure to

The National Implementation

According to official sources,

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The court, while granting their

to both short service as well as

calculate the base rate for

India has added 52 million

India has added 52 million

RBI suggested banks to

RBI proposes formula to