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The Finance Ministry has reversed a proposed customs duty increase on imported laboratory chemicals after the protests of the scientists.

Laboratory Chemicals

• About: The Customs Department defines laboratory chemicals as “all chemicals, organic or inorganic, whether or not chemically defined, imported in packings not exceeding 500 gms or 500 millilitres and which can be identified with reference to the purity, makings or other features to show them to be meant for use solely as laboratory chemicals.”
• Types and Uses: Laboratory chemicals include imported chemicals, reagents, and enzymes essential for experimental research in various scientific fields.
  • These chemicals consist of oxidizers, corrosive acids, and compressed gases used in experiments and product development. 
  • They are also critical in the medical diagnostics industry.
  • Laboratory chemicals are used with instruments like funnels, beakers, test tubes, and burners.
• Regulation and Cost: Due to their potentially hazardous nature and specialised use, these chemicals are regulated and their imports are scrutinised. 
  • Most are niche and can be quite expensive.

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Recent Issue

• Duty Increase: The Budget 2024-25 had increased the Basic Customs Duty (BCD) of chemicals under HS Code 9802 from 10% to 150%. 
• Scientists discovered that this hike significantly raised the cost of chemicals, with prices jumping from ₹1,00,000 to ₹2,50,000 for certain products.
• Additional Hike: There was also a 25% increase in the duty on plastic components used in laboratories.
• Jurisdiction: Customs duty issues fall under the jurisdiction of the Ministry of Finance and the Commerce Ministry.

Reason for Duty Hike

• The customs department increased the duty to address the misuse of the ‘laboratory chemicals’ classification for importing ethanol, which was being used to avoid the 150% customs duty.
  • Ethanol is available in two forms: ethanol for alcohol production and ‘denatured’ ethanol, which is mixed with additives and used in laboratories and commercial applications.
  • Denatured ethanol is typically produced locally and does not usually need to be imported.

Importance of Imported Chemicals

• Local Demand and Investment: Despite India’s strong pharmaceutical and chemical manufacturing sectors, there is insufficient local demand for niche chemicals to justify the substantial capital investments needed for their production.
• Replication of Research: A key feature of experimental research is trying to replicate results of experiments conducted abroad and this often requires the exact materials used.

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Revised Notification

The Finance Ministry reverted to the original duty rate but introduced a requirement for a declaration that imported laboratory chemicals are for research use only and not for further commercial trade. This may still cause some delays in procurement.

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This Article sheds light on innovative farming techniques, including herbicide-tolerant crops and new cultivation methods like Direct Seeded Rice (DSR) and Zero-Tillage (ZT) wheat, offering sustainable solutions to these challenges.

Innovations in Sustainable Agriculture

• Water-Efficient Rice Cultivation and Zero-Tillage Wheat
  • Water-Saving Techniques in Rice Farming: Efforts are being made to cultivate rice with reduced water usage and eliminate the practice of burning leftover straw post-harvest.
  • Zero-Tillage Wheat: The focus is also on growing wheat without traditional ploughing and land preparation, which helps minimize soil disturbance.

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• Herbicide-Tolerant Crop VarietiesAdvancements in Herbicide Tolerance: New crop varieties and hybrids have been developed to tolerate the herbicide Imazethapyr, which is effective in controlling weeds and grasses that compete with crops for essential resources like nutrients, water, and sunlight.
  • Public and Private Sector Involvement: Both public and private entities are actively involved in breeding these herbicide-tolerant crops.
• New Varieties of Rice 
  • Kharif Season Rice Varieties: The Indian Agricultural Research Institute (IARI) and Savannah Seeds Pvt. Ltd have introduced two basmati rice varieties (Pusa Basmati 1979 and Pusa Basmati 1985) and two non-basmati hybrids (Sava 134 and Sava 127). 
    • These contain a mutated acetolactate synthase (ALS) gene, enabling the use of Imazethapyr to manage weeds like Echinochloa colona (jangli chawal), Cyperus rotundus (motha), and Trianthema portulacastrum (patthar-chatta).

What is Weed Control?

• Weed control refers to the methods used to prevent or reduce the growth of unwanted plants, especially harmful or invasive species. 
• Pest and Disease Vectors: Weeds can harbor pests and diseases that spread to cultivated crops. For example, chickweed can harbor eelworms, and the cucumber mosaic virus can be carried by various weeds.

Importance of Weed Control in Agriculture

• Competition with Crops: Weeds compete with crops for essential resources like space, nutrients, water, and light. This competition can reduce crop yields and quality.
• Impact on Livestock: Some weeds are poisonous or unpalatable to livestock and can interfere with grazing and forage production.

Current Weed Control Practices

• Traditional Rice Cultivation

  • Flooding and Transplanting: Farmers traditionally flood paddy fields and perform 3-4 ploughings for wheat to control weeds. 

• Traditional Wheat Cultivation

• • Stubble Burning and Ploughing: Farmers often burn paddy stubble and plough the field multiple times, using a harrow or cultivator, followed by irrigation. 
    • This process helps control weeds before sowing wheat seeds.

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Herbicide-Tolerant Solutions

Herbicide-tolerant (HT) crops are genetically modified to withstand specific herbicides, allowing farmers to control weeds without harming the crops.

• Direct Seeded Rice (DSR) 

  • DSR Technology: Direct Seeded Rice(DSR) is also known as the ‘broadcasting seed technique.
  • It is a water-saving method of sowing paddy.
    • DSR eliminates the need for paddy nurseries, puddling, transplanting, and field flooding. 
• ZT Wheat Technology: The ‘FreeHit’ ZT technology allows wheat sowing without paddy stubble burning or land preparation. 
  • Farmers can use tractor-mounted Super Seeder machines with rotavators or Happy Seeder machines to sow seeds with minimal tillage, saving costs and time. 
  • Herbicides Imazethapyr and Metribuzin are applied to control weeds when the crop is about 25 days old.

Non-GMO Herbicide-Tolerant Crops

• ALS Gene Mutation: These herbicide-tolerant rice and wheat varieties are not genetically modified (GM). 
  • They possess a mutated acetolactate synthase (ALS) gene, naturally present in rice and wheat, which has been altered using chemical mutagens or radiation. 
  • This mutation prevents the herbicide Imazethapyr from binding to the ALS enzyme, allowing crops to tolerate the herbicide while it kills weeds.
• Broad-Spectrum Herbicide: Unlike existing DSR methods using Pendimethalin and Bispyribac-sodium, which have limited effectiveness, Imazethapyr is a broad-spectrum herbicide that offers wider weed control and is safer, as it doesn’t affect humans and mammals.

Benefits of HT Crops

• Enhanced Crop Productivity: By effectively controlling weeds, HT crops allow for increased crop yields and better quality produce.
• Cost-Effective Weed Management: Reduced reliance on manual labor or other traditional weed control methods can lead to significant cost savings for farmers.
• Conservation of Soil Moisture: Improved weed control helps retain soil moisture, which is crucial in regions with limited water resources.
• Environmental and Resource Savings: The adoption of DSR and ZT technologies leads to reduced water and fuel consumption and prevents environmental pollution from crop residue burning. 
  • The fact that these crops are not GM may further encourage their adoption among farmer

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Challenges of HT Crops

• Development of Herbicide Resistance: The primary concern with HT crops is the accelerated development of herbicide-resistant weeds, which can render the technology ineffective over time.
• Increased Herbicide Use: While HT crops can reduce herbicide use in some cases, there is a risk of increased herbicide applications to manage resistant weeds.
• Economic Dependence: Farmers may become overly reliant on HT technology, limiting their options for weed control and increasing vulnerability to economic fluctuations in seed prices.
• Environmental Concerns: Some critics argue that the widespread adoption of HT crops can lead to negative environmental impacts, such as increased pesticide use and potential harm to beneficial insects.

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Timekeeping as a practice has evolved through centuries from observing natural forces like the Sun, Moon, water etc to progressing to measure atoms and their nuclei in the present time. The advent of advanced  technology entails the development of next generation devices ie. Nuclear Clocks.

• Three Major Developments have been reported in building functional Nuclear Clocks: 
• • A laser to excite thorium-229 nuclei to a specific higher energy state
  • A way to link a thorium-229 nuclear clock with an optical clock
  • A precise estimate of the excitation energy. The nucleus’s de-excitation emission has a frequency of 2,020 terahertz, alluding to an ultra-high precision.

About Clocks

• Clocks are devices that measure the passage of time and display it. 
• Parts: Modern versions of Clocks contain a power source, resonator, and counter.
• A clock measures the amount of time that has passed by tracking something that happens in repeating fashion, at a fixed frequency.
  • Example: 
    • The sundials of ancient times tell time by casting shadows of changing lengths against sunlight.
    • Water Clock: The water would slowly fill a vessel, with its levels at different times indicating how much time had passed. 
      • The water clocks were fitted with additional water tanks, gear wheels, pulleys, and even attached musical instruments to the point where they were practically developing rudimentary analog computers.
    • Modern Clocks: They use quartz crystal. 

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Modern Clocks: Evolution of Mechanical Clocks

• Invention of the Verge Escapement Mechanism: It was the first major revolution in timekeeping  invented in the 13th century, paving the way for modern clocks opening the door for the development of mechanical clocks. 
• Process: The fundamental element here was a gear that, through a combination of mechanical arrangements, could only move in fixed intervals. 
  • Escape Wheel: The first gear was called an escape wheel if it was circular.
  • Balance Wheel: A second gear, called the balance wheel, was enmeshed with the first such that when the escape wheel moved forward one gear tooth at a time, the balance wheel would oscillate back and forth.
  • This oscillation would drive the ‘hands’ of a clock on a clock face as long as some force was applied on the balance wheel to keep it moving.
• Invention of Spring-Driven Clocks:
  • Using Coiled Spring: Clockmakers developed and improved on the previous mechanical devices between the 15th and 18th centuries by replacing the suspended weight that applied the force on the balance wheel with a coiled spring. 
    • The balance spring would return the balance wheel to its neutral position after every ‘tick’ motion before the ‘tock’ motion towards the other side. As a result, the clocks lost a few minutes a day versus a few hours a day before.
  • New Mechanisms like the Fusee were developed to ensure the spring always delivered a uniform force and does not become inaccurate as the spring unwound. 
    • The idea to couple a balance spring with the balance wheel also led to the advent of pocket watches
• Pendulum Clock: The Clock was invented in the mid-17th century, by the Dutch inventor Christiaan Huygens.
  • The clock also used the escapement mechanism, Huygens made an important contribution by working out a formula to convert the pendulum’s swings to the amount of time passed.
• The Marine Chronometer: It was developed in the 18th century in 1761 AD by a  carpenter named John Harrison and delivered to the British government for its longitude prize.
  • Need: For measuring time on a ship. A ship needs to accurately know its latitude, longitude, and altitude for it to locate itself on the face of the earth.
  • Measuring the Longitude required  an accurate clock onboard each vessel. The Marine Chronometer featured mechanisms to ensure the clock’s operation wasn’t affected by the ship’s rocking, the force of gravity, and some temperature changes.
• Electric Clocks:  They were developed in the 19th century whose energy source was a battery or an electric motor rather than suspended weights or springs, although the former and latter were attached to improve the effciency of existing designs.

The 20th Century Clocks

It heralded the development of two important types of clocks ie. the Quartz clock and the Atomic clock with a similar fundamental setup ie. consisting of a power source, a resonator, and a counter.

• Quartz Clocks: Quartz clocks are inexpensive to make and easy to operate, and their invention led to watches and wall-clocks becoming very common from the mid-20th century.
  • Quartz Crystal: The resonator here is a quartz crystal. The power source sends electrical signals to a quartz crystal, whose crystal structure oscillates due to the piezoelectric effect. 
  • The signal’s energy can be tuned to make the crystal oscillate at its resonant frequency, making it the resonator. The counter counts the number of periodic oscillations and converts them into seconds (depending on the crystal’s period). 
  • A digital display shows the counter’s results.
• Atomic Clocks: The resonator here  is a group of atoms of the same isotope and the power source is a laser. 
• The laser imparts a specific volume of energy for the atom to jump from its low energy state to a specific higher energy state. The atom releases radiation with a well-established frequency when it jumps back down.
  • Example:  The Caesium atomic clock uses caesium-133 atoms as the resonator. These atoms release radiation of frequency 9,192,631,770 Hz when they excite and  de-excite.
    • The counter records one second has passed when it detects 9,192,631,770 full waves of the radiation.
  • Time Standard: Atomic clocks are distinguished by their resonator and each such clock is called a time standard. 
    • Example:  India’s time standard is a caesium atomic clock at the National Physical Laboratory, New Delhi, which maintains the Indian Standard Time.
  • Range: The Frequency  emitted in a caesium atomic clock is in the microwave range (gigahertz), and the resulting clock loses or gains a second only once in 20 million years or so.

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Future Clocks

• Next -Generation Optical Clocks: The radiation in the next-generation clocks is in the optical range (hundreds of terahertz).
  • These devices use strontium or ytterbium atoms as resonators and don’t miss a second in more than 10 billion years.
• Nuclear Clocks: Their resonators are the nuclei of specific atoms rather than the whole atom. Atomic clocks need to make sure the resonator atoms aren’t affected by energy from other sources, like a stray electromagnetic field. 
  • An atom’s nucleus, however, is located well within each atom, surrounded by electrons, and thus could be a more stable resonator.

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Recently, Securities and Exchange Board of India (SEBI) proposed a series of measures to curtail speculative trading in the index derivatives segment. 

• This comes amidst concerns about an exponential rise in the volume of trade in the futures and options (F&O) segment, particularly by individual investors.

What are Derivatives?

• About: The term derivative refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. These contracts can be used to trade any number of assets and carry their own risks.
  • A derivative contract is between two or more parties, where the value of the derivative is derived mainly from fluctuations that occur in the price or value of the underlying assets.
  • Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or leverage holdings.
• Financial Derivatives: Contracts whose value is derived from underlying financial instruments.
  • Examples: Stocks, bonds, interest rates, currencies.
• Commodity Derivatives: Contracts based on physical goods.
  • Examples: Agricultural products (wheat, corn), energy resources (oil, natural gas), metals (gold, silver).
• Index Derivatives: Derivatives based on market indices.
  • Examples: Nifty 50, S&P 500.

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Why did Sebi propose these measures?

• AIM: The proposed steps aim at enhancing investor protection and promoting market stability in derivative markets.
• Annual loss: An annual loss of Rs 50,000 – Rs 60,000 crore of household savings through derivatives trading is a macro concern. 
  • The same money could get deployed into IPOs, mutual funds or other productive use for the Indian economy.
• Excessive speculative trading activity taking place in F&O. 
  • NSE data shows that retail investors alone account for around 50 per cent of the trading volumes in index derivatives, leaving behind proprietorship traders, foreign investors and domestic institutional investors.
• Trading Loss: As per Sebi, the cumulative trading loss incurred by 9.25 million unique individuals and proprietorship traders in the index derivatives of NSE alone stood at Rs 51,689 crore in FY24.
• In the Union Budget 2024-25: Finance Minister Nirmala Sitharaman proposed to double the Securities Transaction Tax (STT) on F&O of securities, effective October 1, 2024. 
  • The STT, which is levied on transactions in specified securities, has been increased to 0.02 per cent and 0.1 per cent, respectively.

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The Budget 2024-25 promised that “a policy for promoting pumped storage projects will be brought out.

• It aims for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable and intermittent nature.”

About Pumped Storage Hydropower (PSH)

According to the International Hydropower Association (IHA), PSH is the largest form of renewable energy storage, with an installed capacity of nearly 200 gigawatts.

• Refers: PSH iRansomware Attacks a type of hydroelectric energy storage. 
• Types: Pumped storage is of two types: on river and off river. 
  • On-river is like any hydroelectric project supplied by a river. Existing hydro projects could become pumped storage. 
  • Off-river projects are those that have two reservoirs at two different levels to which the water is pumped up or falls down to under gravity in a closed loop. 
    • Abandoned mines can be converted to such reservoirs. 
    • When there is surplus power, water is pumped up from lower to upper reservoir and when power is needed the water can fall down under gravity to turn the turbines and generate power.
• Working: It is a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other (discharge), passing through a turbine. The system also requires power as it pumps water back into the upper reservoir (recharge). 
  • PSH acts similarly to a giant battery, because it can store power and then release it when needed. 
• Need: 
  • Energy Target: India has planned to create an ambitious 500 GW of non-fossil power by 2030. India has 3.3 GW of pumped storage. Main ones are Nagarjunasagar, Kadana, Kadamparai, Panchet and Bhira. 
  • China Factor: China leads the world with 44 GW of pumped storage supporting 1,300 GW of wind and solar. India would therefore need to ramp up its pumped storage capacity by several times if it wants to meet its renewable power generation targets.
• India’s Notable Projects: The Kadamparai plant in Tamil Nadu is among the highest in the country. It has a capacity of 400 MW and operates by pumping water to a higher reservoir during periods of surplus power generation.
  • Nagarjunasagar, Kadana, and Panchet also contribute to managing the variability of renewable energy generation in the country.
• India’s Status: Current potential of ‘on-river pumped storage’ in India is 103 GW. Out of 4.76 GW of installed capacity, 3.36 GW capacity is working in pumping mode. About 44.5 GW including 34 GW off-river pumped storage hydro plants are under various stages of development. 
• Significance:  
  • Consistent Energy Supply: PSH dams store energy and deliver it consistently, unlike solar and wind sources which are dependent on weather conditions.
  • Control Over Output: PSH allows for adjustable power output to meet varying electricity demands, acting as a reliable backup for renewable energy sources.
  • Environmental Benefits: PSH is a clean and environmentally friendly technology.
  • Economic Importance: The cost of energy from pumped storage is competitive compared to other energy storage technologies.
  • Promote Atmanirbhar Bharat: PSH plants use domestically produced material and even the electrical mechanical parts are made in India.
• Challenges:
  • Clearance Issues: PSH plants have to obtain land, forest and environmental clearances.
  • Expensive: Users like discoms find them too costly and less attractive as a storage option. 
  • Less Private Participation: With High investment costs and long gestation period for a PSH project, private participation has been low.
  • Dependency on Government: The PSH projects are a state government legislative subject, and require the support of many policymakers and electricity regulators, apart from state governments.

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Way Forward

The Ministry of Power, in April 2023, notified the guidelines to promote pumped storage projects. The Report on “Pumped Storage Plants – essential for India’s Energy Transition” recommends measures to contribute to the development of pumped storage projects in India.

• Adoption of Standard Guidelines: There is a need to adopt the sustainability guidelines of the International Hydropower Association and to carry out an ex-post analysis of a few operational storage projects.
• Transparent Process: States should decide and announce a basis for PSH-project allotments through a process that is transparent but different from that for conventional hydro projects.
  • PSH projects should be delinked from a per-unit energy cost basis for speedy development.
• Development of Market Mechanism: India must develop market mechanisms and innovative economic models that let energy-storage technologies be evaluated on the basis of merit.
• Green Finance: Since PSPs will be utilised for avoiding greenhouse gas emissions, PSPs will be supported through concessional climate finance. 
• Others: There is a need to prioritise projects based on location, duration of storage, availability of a pre-feasibility report, detailed surveys, investigations and project reports, etc.

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According to a statement by National Payments Corporation of India (NPCI), C-Edge Technologies Ltd which is a technology service provider to co-operative and regional rural banks was “possibly” hit by a ransomware attack

About Ransomware

• Ransomware is a form of malware designed to encrypt files on a device, rendering any files and the systems that rely on them unusable. 
• Malicious actors then demand ransom in exchange for decryption.
  • Given the challenge in tracing the victim, attackers typically demand payment through cryptocurrency.

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Atmospheric rivers are invisible to the naked eye but are growing in intensity over India and contributing to extreme rainfall and deluges.

• Experts are ascribing the recent Wayanad landslide to intensifying monsoon rains and land-use change favoring plantations over forests. But the role of a more ‘invisible’ atmospheric event cannot be overlooked. 

About Atmospheric River

Atmospheric Rivers (AR) are pole-bound streams of water vapor fed by the warming oceans in the tropics. As they travel north, they are propelled by strong winds and bring heavy rainfall to areas in their path

• Refers: An atmospheric river is a plume of moisture, or water vapour, that moves from the tropics and is dumped over a region as heavy rain or snow. 
• Narrow Bends: Atmospheric rivers are narrow bands that tend to occur on the eastern side of strong mid-latitude storms.
• Impact: It usually causes heavy precipitation and rainfall when it hits the land region. 
• Measurement: ARs are identified and measured using a metric called vertical integrated vapour transport (IVT). 
  • Scientists going through satellite or model data “look for corridors that are greater than 2,000 kilometres long and less than 1,000 km wide that have at least 2 centimetres of vertically integrated precipitable water.  

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Impact of Atmospheric Rivers in India

India has also seen its impact during 1985 and 2020. During this period, India’s 70% flooding was due to atmospheric rivers. The southern region of western ghats and eastern ghats of India face major issues like heavy rainfall and precipitation. 

• High Heat and Rainfall: Among the climate change-induced factors causing this increase in rainfall intensity is a meteorological phenomenon known as ‘atmospheric rivers’ (AR). 
  • Humid heat in summers and heavy rainfall during the monsoon is usual for the subcontinent but the intensity of both has palpably increased in recent years. The monsoon months from July-September have become wetter, along with erratic precipitation patterns as the world warmed. 
  • In the last five years, the number of stations receiving ‘very heavy’ and ‘extremely heavy rainfall’ in July has more than doubled across the country, hitting a high of 1,113 and 205, respectively, in 2023. 
• More Landslides and Flash Floods: As per the Indian Institute of Tropical Meteorology, there is higher fluctuation in the moisture transported towards the Indian subcontinent during the monsoon season. As a result, there are short spells when all that moisture from the warm seas is dumped by the atmospheric rivers in a few hours to a few days. This has led to increased landslides and flash floods across the country.
  • Both the maximum and minimum IVT of AR over land have increased in India since the 1950s, indicating a strengthening of these systems. The most prominent increase happened in peninsular India and the Indo-gangetic plain. 
  • These are also the regions in the country which have seen the deadliest floods in the last few years, including the ongoing season. 
• Change in Microclimate: Naturally, at greater intensity, they can significantly alter the microclimate of places it moves through, stuffing the air with water vapour, increasing wind speeds and causing violent showers.

Various Reports Findings

In India, its formation is largely caused by sea surface temperature in the south-central Indian ocean.  Evaporation has increased in the Indian ocean due to higher Vapour Pressure Deficit (VPD). VPD is a measurement unit that measures the pressure needed to turn liquid into vapour.  

• Journal Nature 2023: 70% of all major floods in the country in the last 35 years were associated with ARs. 
  • Moreover, 65% of all landfalling ARs in the period led to floods. 
  • ARs can sometimes carry many times the volume of moisture and flow at a higher speed than some of the world’s major rivers.
  • Moreover, they hover much closer to land than the dry jet streams and pick up moisture moving over the vast, warm oceans, which they shed while traversing over land.
• Nature Study: The researchers of the Nature study observed the arrival and impact of these moisture conveyors over India from 1950-2020. 
  • They noted that 596 ‘major’ AR events occurred in the country during the period, almost all during the summer-monsoon months from June-September. 
  • Moreover, the month of July, when the devastating Wayanad floods occured, recorded the most number of days (28%) with an AR event. 
• Atmospheric Research: In 2021, it illustrated the association between floods and ARs for Kerala specifically. It noted that “a multi-day AR in the second week of August 2018 was pivotal in causing extreme precipitation over the south-west coast of India that eventually led to record-breaking floods”.

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Recently, Sheikh Hasina’s resignation as Prime Minister and departure from Bangladesh created multiple uncertainties for India. 

• India has been a crucial supporter of Sheikh Hasina, For over one-and-a-half decade she was India’s strongest ally, and during this time, India-Bangladesh relations reached new heights.

Crucial Insights on Bangladesh Crisis 2024

There are multiple factors of the Bangladesh Crisis such as allegations of election rigging, autocratic rule, impact of covid 19 on textile industries, taka depreciation, job scarcity, etc, but the immediate cause is 30% reservation quota.

• Political Discontent: Hasina’s administration has been accused of systematically suppressing opposition voices and dissent. Her long reign in power saw arrests of opposition leaders, crackdowns on freedom of expression and suppression of dissent.
  • Critics argue that Hasina’s government undermined democratic processes and institutions. Elections during her tenure were marred by allegations of rigging and violence.
• Human Rights Violations: There have been numerous reports of human rights violations under Hasina’s government, including enforced disappearances and extrajudicial killings.
• Media Censorship: The Hasina administration has faced criticism for curbing press freedom. Journalists and media outlets critical of the government often faced harassment, legal action, or shutdowns.
• Economic Factors: Bangladesh’s economy, although growing, faces issues like unemployment, inflation, and economic disparity. The dissatisfaction among the youth, particularly regarding job opportunities and economic prospects, fueled the unrest.
• About Controversial Quota System:
  • Agitation by Students: The protests began in July with students demonstrating against the controversial quota system that allocated government jobs following a High Court order to restore 30% job quotas for descendants of freedom fighters. 
  • Demand to Struck Down Reservation Quota: Nearly 32 million young people are out of work or education in Bangladesh, which has a population of 170 million. Agitated students called for the 30% reservation quota for the families of freedom fighters to be struck down. 
  • Violent Protest: The protest turned violent on July 16 as student protesters clashed with security officials and pro-government activists. This led to a curfew with a shoot-on-sight order. The internet and mobile data were also turned off.
  • Demand for Resignation: Quota reduced but enraged students demand Sheikh Hasina’s resignation. The protest quickly escalated, spreading civil unrest across the nation. 
  • Action by Judiciary: To control the protest, the Apex court of Bangladesh scaled back the controversial quota system. The Supreme Court reduced the quota from 30 to 5%, with 93% of jobs to be allocated based on merit. 
  • Further Degrading of Situation: Adding fuel to the fire, the then PM labelled the protesting students as ‘terrorists’ and urged the people to ‘suppress them with a firm hand’. This led the students to demand the resignation of Hasina and her Cabinet. 
  • Resignation and Coup: On 5th August 2024, the now ex-PM Sheikh Hasina resigned and fled the country. Thousands of protesters stormed her residence while millions celebrated on the streets. 
    • Bangladesh’s army chief, General Waker-Uz-Zaman, announced in a broadcast that Sheikh Hasina had resigned and that the military would form an interim government.

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Significance of Sheikh Hasina’s Tenure to India

The Awami League (AL), led by Prime Minister Sheikh Hasina, has ruled Bangladesh since 2009. From eradicating anti-India terrorist groups which operated out of safe havens in Bangladesh to facilitating greater economic, social, and cultural ties, her tenure has fostered a healthy relationship between India and Bangladesh.

• Acting against Security Threats: It alleviated India’s security challenges along the eastern border of India with proactive measures in tackling terror groups and militancy.
  • It acted against ethnic insurgent groups operating from Bangladesh.
  • Bangladesh signed an Extradition treaty in 2013 for deporting militants to India.
  • It handed over key leaders of the secessionist (United Liberation Front of Asom) to India.
• Significant Strategic Ties: Over the past decade, strategic ties between India and Bangladesh have grown significantly. Bangladesh has been a key beneficiary of India’s “Neighbourhood First” policy, receiving grants and lines of credit to boost energy, financial, and physical connectivity.
• Action against anti-India Militant Groups: Bangladesh shares borders with several Indian northeastern states, many of which have faced militant challenges. Bangladesh cracked down on such activities which operated training camps and transported arms through routes in Bangladeshi territory.
• Land Boundary Agreement: The historic agreement facilitated the transfer of 111 enclaves, from India to Bangladesh. Conversely, India received 51 enclaves which were in Bangladesh.
• Line of Credit: In 2010, during Hasina’s visit to India, India extended $1 billion in credit to Bangladesh under its development assistance programme. 
• Ganga Water Treaty: In 1996, both countries signed the Ganga Water Treaty.
• Connectivity to the North Eastern States: Access to India’s northeastern region via Bangladesh diminishes the vulnerability previously associated with connecting to the northeast solely through the Siliguri Corridor, commonly referred to as the Chicken’s Neck region.
  • She also granted India transit rights, facilitating the movement of goods from the Indian mainland to its northeastern states.
  • Key Achievements in Connectivity: It includes the Maitri Setu bridge over the Feni River in Tripura and the Chilahati-Haldibari rail link.

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Sheikh Hasina’s Ouster and Impact on India

Sheikh Hasina’s departure from Bangladesh after a 17-year-old tenure means that India has lost its strongest ally in the region. Hasina had always been a friend to India. The protests that led to her departure also carried an anti-India sentiment, given the close association perceived between Hasina and India. 

• Unclear Nature of Interim Government: Bangladesh army chief Waker-uz-Zaman has taken charge, and so far he has made the right noises in proposing an interim government. But the nature of this interim government remains unclear as yet. 
  • Nor is there a time-table for fresh elections. The interim government will naturally have a big impact on Bangladesh’s future political direction, which in turn will impact ties with India. 
  • Also, transit and trans-shipment arrangements with Bangladesh may be revised by the incoming regime in Bangladesh. India needs these for better logistics supply to its Northeast. 
• Diplomatic Challenge: India’s strong support for Hasina over the past decade led to minimal interaction with Bangladeshi opposition groups, leaving India in a challenging position now. 
  • Addressing the current anti-India sentiment in Bangladesh will be difficult. 
• Impact on Border Security: 
  • Jamaat-e-Islami: It is likely that Jamaat-e-Islami may have some influence over the interim government in Bangladesh. India’s equation with Jamaat has been uneasy and it could open the door for the return of Pakistan in Bangladeshi polity. That in turn will have an impact on India’s border security with Bangladesh. 
  • The China Challenge: China has been aggressively seeking to expand its influence in Bangladesh and has the financial resources to support the post-Hasina government. A strong Chinese presence in Bangladesh poses a significant challenge for India, potentially leaving it:
    • Strategically encircled by unfriendly or indifferent neighbours: China and Pakistan to the west and north
    • A communist-led government in Nepal
    • Taliban-controlled Afghanistan to the far west
    • An anti-India Maldives in the Indian Ocean
    • A potentially ambivalent regime in Bangladesh 
      • It would be detrimental to India’s strategic and security considerations.
• Concern over Trade and Free Trade Agreement (FTA): It is unclear if and how an FTA plan would proceed under the interim Bangladeshi government, or the dispensation to follow. The bilateral ties flourished with advances in cross-border trade, transit arrangements, security collaboration, and people-to-people exchanges. However, Hasina’s ouster casts doubt on these achievements. 
  • Bilateral Trade: According to the Union Ministry of Commerce, in trade terms, Bangladesh is India’s biggest partner in the subcontinent, and India is Bangladesh’s second biggest partner in Asia after China. Their total bilateral trade amounted to $13 billion in the financial year 2023-24.
    • Export from India: Bangladesh is the biggest export destination for India’s cotton, accounting for 34.9% of India’s total cotton exports (some $2.4 billion in FY24). 
      • India’s main exports include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel, and vehicles.  
    • Import to India: India’s top import from Bangladesh are readymade garments, amounting to $391 million in FY24. In recent years, Bangladesh has emerged as a major global hub for textiles.
      • The main import items are fish, plastic, leather, and apparel, among others.
    • On Free Trade Agreement (FTA): In October 2023, India and Bangladesh began discussions on an FTA during a meeting of the Joint Working Group on Trade in Dhaka. 
      • A successful FTA would substantially expand Bangladesh’s market reach and give Indians access to more manufactured goods.
      • An FTA would reduce or eliminate customs duties on goods traded and ease norms to help promote further trade and investments.
      • A 2012 working paper published by the World Bank estimated that a full FTA for goods would increase Bangladesh’s exports to India by 182%, whereas a partial FTA could lead to a 134% increase. 
      • An FTA accompanied with improved transport infrastructure and better connectivity could see Bangladesh’s exports rise to 297%. India, too, would see an increase to its exports by as much as 172% in this scenario. 
• Impact on Infrastructure and Connectivity: A disruption in Indo-Bangladesh ties could restrict India’s access to the Northeast, which will be connected to mainland India only through the narrow “Chicken’s Neck” — only 22 km at its narrowest — between West Bengal and Assam.
  • According to the Minister of External Affairs, infrastructure and connectivity has been a growing part of India-Bangladesh ties. India has extended three lines of credit to Bangladesh since 2016 amounting to $8 billion for the development of road, rail, shipping and port infrastructure. 
  • In November 2023, two joint projects – the Akhaura-Agartala cross-border rail link and Khulna-Mongla Port rail line – were inaugurated.
    • The Akhaura-Agartala link provides an alternate route from mainland India to the Northeast, was the sixth cross-border rail line between the countries. This has cut down the travel time (by train) between Agartala and Kolkata from 31 hours to 10 hours and was expected to boost tourism, trade, and people-to-people exchanges between the two countries.
    • Besides rail, there are currently five operational bus routes between India and Bangladesh, including connections from Kolkata, Agartala and Guwahati to Dhaka. 
    • In 2023, the countries had agreed to operationalise the agreement for the usage of the Chittagong and Mongla ports to ease the movement of cargo between mainland India and the Northeast.
• Return of Islamist Extremism: The ousted Prime Minister represented the secular and modernising version of Bangla nationalism, and her uncompromising politics was for long a bulwark against radical extremism. However, the current scenario has cleared the way for the resurgence of Islamist, anti-Hindu minority, and pro-Pakistan politics in Bangladesh. 

Way Forward

Bangladesh is facing its worst political crisis since independence in 1971, with Prime Minister Sheikh Hasina resigning amid massive anti-government protests. While expressing hope for an early resolution to the political instability in Bangladesh, India said that it remains concerned about the status of minorities until law and order is restored. 

• Offer Humanitarian Aid: India is prepared to offer humanitarian assistance, including medical aid and supplies, to support Bangladesh during this challenging time.
• Ensure Diplomatic Relations with Interim Government: India needs to move fast to build bridges with the incoming regime. Substantial diplomatic efforts will be required to recover lost ground. 
  • Similar to India’s stance during Nepal’s 2006 movement, India should respect the popular will in Bangladesh and avoid being perceived as pro-Hasina.
  • Transit and trans-shipment arrangements may be revised by the incoming regime in Bangladesh and India needs these for better logistics supply to its Northeast. Hence, India must work with the interim govt to ensure their continuity. 
• Trade Adjustments: Indian exporters and businesses are making contingency plans to mitigate the impact of the crisis as the next few days will be critical in determining the extent of the disruption to trade and economic stability.
• A Collaborative Approach: India will need to work with its friends and partners like the US, UK and Europe to limit the violence at the current juncture and work with the Bangladesh Army in ensuring a peaceful transition to a new order within Bangladesh.
  • India would want to work with its partners in the Gulf, especially the UAE and Saudi Arabia, to develop pathways for the economic stabilisation of Bangladesh and limit the dangers of extremism.

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Conclusion

In the current evolving situation in Bangladesh, India as a vibrant multi-party democracy, should be seen as supporting the expression of popular will in a sensitive neighbouring country. India will need enormous strategic patience, faith in the logic of geography, belief in the centrality of commerce, and a strong political commitment to transcend the Partition pathologies in building relations with a changing Bangladesh.

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