Context:

• The United Nations Environment Programme (UNEP) released the14th Emissions Gap Report 2023.

Critical Climate Report: Alarming Trends, and a Widening Implementation Gap

• Chances of limiting global warming to 1.5 °C : There is only a 14 percent chance of limiting global warming to 1.5 °C over pre-industrial levels considering the most optimistic climate action projects.
• Breach of 2°C target: Even if the existing nationally determined contributions (NDC), both conditional and unconditional, are delivered by 2030, the world will warm by 2.5°C, breaching the 2°C target set by the Paris Agreement.
• Implementation gap: Warming under the current policy scenarios will reach 3°C, given the implementation gap still stands at five gigatonnes of carbon dioxide (CO2) equivalent.
  • Implementation gap is the difference between the commitments made by countries in their NDCs and the actual measures and policies implemented to achieve those commitments.
• Rise in alarming climate trends: There is a spike in the number of climate records being shattered. Ex- 86 days have experienced warming higher than 1.5°C this year.
  • September 2023 was the hottest September ever recorded, and in 2022, global emissions peaked at 57.4 gigatonnes of carbon dioxide equivalent.

Climate Injustice: Unfair Emissions from Rich Countries and Wealthy Households

• Inequalities in contributions to climate change: A minority of nations, led by the United States, the European Union and China, account for a disproportionate share of historical emissions and warming. 
  • The G20 collectively are responsible for three-quarters of the current burden of warming. 
• Role of Affluence: Wealth plays a critical role, with affluent households responsible for nearly half of worldwide consumption-based emissions. 
  • At the household level, the global top 10 percent income bracket generates a staggering 45-49 per cent of total emissions, while the bottom 50 percent contributes a mere 7-13 per cent. 

Net Zero Targets: A Global Landscape of Pledges, Diversity, and Implementation Concerns

• Countries adopting Net Zero pledges: By September 2023, 97 parties from 101 countries, representing 82 percent of global greenhouse gas emissions, had adopted Net Zero pledges. 
  • Net zero refers to the balance between the amount of greenhouse gas (GHG) that’s produced and the amount that’s removed from the atmosphere. It can be achieved through a combination of emission reduction and emission removal.
• Diversity and scope of these commitments: While 37 per cent of global emissions are covered by Net Zero targets for 2050 or earlier, 44 per cent have commitments beyond 2050. 
  • Concerns arise regarding the implementation of Net Zero pledges. 

• Insufficient progress indicators: Despite all G20 members setting Net Zero targets, progress indicators such as legal status, implementation plans, and emission reduction pace remain deeply insufficient signaling a low confidence in the Net Zero targets.
• Need for affordable clean energy financing: As many as 2.4 billion people lack clean cooking sources and 775 million are without electricity. 
  • There is an urgent need for affordable finance in low- and lower-middle-income countries for clean energy investments. 
  • These nations face challenges like high debt, low clean energy investments, and vulnerability to volatile fossil fuel markets. 

• Exploring carbon dioxide removal strategies:  The carbon dioxide removal (CDR) is necessary, given that Net Zero emissions will be impossible without residual emissions being balanced out through removals. 
  • Delaying significant global reductions in greenhouse gas emissions will make us more dependent on future efforts to remove carbon dioxide from the atmosphere.

News Source: DTE

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• The International Cricket Council’s board recently came up with new regulations for cricket.

New Regulations in Women’s Cricket: Restrictions on Transgender Players Post-Male Puberty

• Under the new regulations, any player who has transitioned from male to female and has been through any form of male puberty will not be allowed to participate in women’s international cricket, regardless of any surgery or gender reassignment treatment they may have undertaken.

Revised Transgender Eligibility Rules in Cricket Impact First International Trans Player

• Earlier, a transgender woman had to keep testosterone serum to 5 nanomoles or below for a period of 12 months.  This was in line with the International Olympic Committee’s (IOC)recommendations. 
  • The new rule means Canada’s Danielle McGahey, who became the first transgender player to feature in international cricket earlier this year, will no longer be eligible to play women’s cricket. 
  • McGahey, originally from Australia, had fulfilled ICC’s old criteria that made her eligible to play in the Women’s T20 Qualifiers for the 2024 T20 World Cup.

Transgender Inclusion Policies: World Rugby Takes Stand, Other Sports Follow Suit

• In 2020, World Rugby became the first international sports federation to say transgender women cannot compete at the elite and international level of the women’s game.
• Female world ranking competitions: No transgender athlete who had gone through male puberty is permitted to compete in female world ranking competitions. FINA (now known as World Aquatics) – swimming’s world governing body also stops transgender athletes from competing in women’s elite races if they had gone through any part of the process of male puberty. 
  • In 2020, World Rugby became the first international sports federation to say transgender women cannot compete at the elite and international level of the women’s game.

News Source: Indian Express

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• The 59th International Tropical Timber Council (ITTC) concluded recently which was held in Thailand.

Key Decisions at International Tropical Timber Council Council Session

• Budget: The session approved and adopted a budget of $7.1 million for the coming financial year 2024-25.
• Work programme for 2024-25: It was adopted which included a request to the executive director to collaborate closely with members of the Collaborative Partnership on Forests and other partners on implementation.
• Trial Measure: The council approved a trial measure that will allow ineligible members to submit project proposals and concept notes. 
  • Members who have fallen behind on their financial contributions and are thus ineligible will be allowed to submit one project and concept note for every two years of arrears paid. 

About International Tropical Timber Organisation (ITTO): 

• About: It is an intergovernmental organisation for promoting the sustainable management, restoration and conservation of tropical forests and trade in tropical forest resources including improved market intelligence. 

• Establishment: ITTO was established under the International Tropical Timber Agreement 1983 (ITTA 1983), negotiated under the auspices of the UN Conference on Trade and Development.
• Headquarters: It began operations in 1987 and its headquarters are located in Yokohama, Japan.
• Project Funding: It facilitates funding for forestry projects in tropical timber producing countries.All projects are funded by voluntary contributions from governments.
• Members: There are 75 member countries including EU, out of these countries, 37 are producer member countries and 38 are consumer member countries. India belongs to the group of the producing member countries. 

ITTO Projects in India:

• ITTO has funded a project titled ‘Establishment of network to facilitate collection, processing and dissemination of statistics pertaining to tropical timber and other forestry parameters in India. 

News Source: DTE

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• The government wants to replace the ‘use-and-throw’ design philosophy of products with a ‘right to repair’ framework. 

Revolutionizing Consumer Rights: The Emergence of Right to Repair Initiatives Globally

• The Ministry of Consumer Affairs unveiled this idea in July 2022 and has set up a committee to prepare the framework.
• Framework: It will give consumers the option to repair their products rather than discard them and buy new ones. 
• Aim: To ensure the product can be repaired at a reasonable cost via third party service providers (even during the warranty period) rather than depending solely on original equipment manufacturers (OEMs), who are often costlier. 
  • To enable this, the OEMs will have to mandatorily share their product details with consumers. 
  • The government recently asked 112 companies in four sectors viz. farming equipment, electronic gadgets, consumer durables and automobiles to ensure that consumers enjoy the right to repair.
• International Practices: In March 2021, the European Union passed legislation on mandatory right to repair followed by the USA in July 2021. The United Kingdom too has a similar policy.

Navigating Challenges: Obstacles and Controversies Surrounding the Right to Repair Movement

• Resistance from Manufacturers: Manufacturers are resisting change and citing concerns over protecting their intellectual property rights.
• Lack of Voluntary Registration: A right to repair portal was unveiled by the consumer affairs ministry in December 2022 for voluntary registration of manufacturers, only 41 manufacturers registered. 
• Substantial Disruption to Business Model: It will force companies to change their business models. 
  • For example, OEMs restrict the availability of quality spare parts to their dealers thus the customer ends up paying more. Once the law takes effect, the dealers will lose customers, possibly impacting their viability.

Environmental Impact and Economic Benefits: The Crucial Role of the Right to Repair

• Boost Circular Economy: It seeks to replace the existing product design philosophy that prefers ‘use-and-throw’ and ‘planned obsolescence’ (making a product unusable in time) with one that fosters a circular economy.
• Enable Reuse and Recycling: India generated 1.6 million tonnes of e-waste in 2021-22, and only a third of it was recycled, with the rest ending up in landfills. 
  • Right to repair will save consumers money, reduce e-waste by extending the life of a gadget, boost third-party repair shops, create jobs and enable reuse and recycling of parts.
• Achieving Carbon Neutrality: Right to repair is critical for India to achieve carbon neutrality by 2070 as it will reduce e-waste by extending the life of a gadget.
• Reduced costs: Restoring worn components and third party service providers can reduce replacement costs.

News Source: Mint

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• Recently, the Indian Navy successfully undertook Guided Flight Trials of the first indigenously developed Naval Anti-Ship Missile (ASM). 

Indian Navy Achieves Milestone in Indigenous Missile Tech

• Testing: Indian Navy in association with Defence Research and Development Organisation successfully tested the missile from a Sea king 42B helicopter. 
• Achieving Self Reliance: This is a step towards achieving self-reliance in niche missile technology, including seeker and guidance technologies.
  • The missile employs several new technologies, including an indigenously developed launcher for the helicopter.
• Missile Guidance System: It includes a state-of-the-art navigation system and integrated avionics.

Naval Defense Dynamics: From Anti-Ship Missiles to MRSAM Advancements

• Anti-ship missiles are guided missiles that are designed for use against ships and large boats. 
• Launch Platform: Many anti-ship missiles can be launched from a variety of weapons systems including surface warships, submarines, bombers, fighter planes, patrol planes, helicopters, etc.

• Threat Posed by ASM: ASMs are a significant threat to surface ships, which have large radar, radio, and thermal signatures that are difficult to suppress. 
  • Once acquired, a ship cannot outrun or out-turn a missile.
• Countering ASM: The modern surface combatant has to either avoid being detected, destroy the missile launch platform before it fires its missiles, or decoy and/or destroy all of the incoming missiles.

India’s ASM Tests:

• Short-Range ASM: In May 2022, India tested its first indigenously built ASM falling in the short-range category weighing around 380 kilograms with a range of 55 kilometres. 
• Named as ‘Naval Anti-ship Missile-short range’ (NASM-SR), they can be launched from attack helicopters.
• Long-Range ASM (LRASM): DRDO is set to test the LRASM which would enhance the Navy’s capabilities in the realm of ship-based missile systems with extended range. 

News Source: Mint

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• OneWeb India, a subsidiary of Eutelsat Group, has received authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to launch its commercial satellite broadband services in India. 

The Eutelsat OneWeb: Pioneering Integrated GEO-LEO Satellite Operation

• The Eutelsat OneWeb group was formed  after the merger between two satellite operators, becoming the first fully integrated GEO-LEO satellite operator with a fleet of 37 geostationary satellites and a LEO constellation of more than 600 satellites placed 1200kms above the earth’s surface.
• At present, the company is awaiting satellite spectrum allocation from the Government of India. 

Satellite Broadband: High-Speed Connectivity Anywhere with LEO and GEO Satellite

• It Provides internet network connectivity through LEO or geostationary satellites, ensuring high-speed internet services even in remote areas.

How does satellite internet work?

• Internet service providers send an internet signal to a satellite in space, which then comes back to the users and is captured by their satellite dish. 
• The dish is connected to the user’s modem, which finally connects their computer to the internet signal. 
• This process then reverses back to the internet service provider and is repeated every time. 

News  Source: The Hindu

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Context:

• The Organization of the Petroleum Exporting Countries and allies (OPEC+) are likely to extend and may even deepen oil supply cuts into next year.

IEA Forecasts 2024 Oil Surplus Despite OPEC+ Efforts

• The International Energy Agency (IEA) expects a surplus oil supply in 2024, even if OPEC+ nations extend their cuts into next year
• Decline in Oil Price: Since late September 2023, oil prices have witnessed a nearly 20% decline with the recent drop sparked by a significant increase in US crude inventories and production remaining at historic highs.
• OPEC+: Saudi Arabia, Russia and other members have pledged total oil output cuts of about 5 million barrels per day (bpd), or about 5% of daily global demand. 

Evolution of OPEC: From Founding Members to Global Collaboration with OPEC+

• Founding Members: OPEC was formed in 1960 by Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela. 
• Headquarters: OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria in 1965. 
• Objective: OPEC regularly meets to set oil production targets and coordinate output to help manage global oil prices for the entire group.
• Members: Apart from founding members, other countries who joined OPEC include Algeria, Angola,Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and United Arab Emirates.
• OPEC+: In 2016, largely in response to falling oil prices driven by significant increases in U.S. shale oil output, OPEC signed an agreement with 10 other oil-producing countries (including Russia) to create OPEC+. 

News Source: Reuters

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• According to the Ministry of Education (MoE), all States need to encourage aspirants to utilize the newly launched SATHEE portal for  Joint Entrance Examination (JEE) exam preparation.

SATHEE’s 45-Day Crash Course and Time Mapping Techniques for JEE Aspirants

• Crash Course: SATHEE has launched a 45-day crash course for aspirants to test their level of preparation and it hosts live and recorded lectures, expertly designed curriculum, and doubt-clearing sessions for students to brush up their knowledge. 
• Time Mapping: The time an aspirant student takes to crack a question versus that taken by a student of IIT-Kanpur will be mapped, and the novel shortcuts used by students to crack the question will be shared with aspirants.

About SATHEE Portal: Free Education, AI Assistance, and Inclusive Approach Aligning with National Education Policy

• SATHEE (Self Assessment Test and Help for Entrance Exams): It is an initiative by the Ministry of Education in association with IIT Kanpur. 
• Objective: SATHEE has been launched to give students a free learning and assessment platform. 
  • Whereas private coaching centres and portals seek payment, SATHEE is an open learning platform available to students at no cost. 
• Registrations: About 5,000 students from the Kendriya Vidyalayas, Navodaya Vidyalayas, and schools under the Central Board of Secondary Education (CBSE) have registered on the platform so far. 
  • Goal: According to MoE the goal is to reach 1,00,000 students. 
• Utilises Artificial Intelligence (AI): The portal uses AI to interact with students, and can be customised to each student’s pace of learning. 
  • SATHEE’s integrated AI chatbot helps students align their learning needs. 
• National Education Policy (NEP): It is in line with the National Education Policy, with the goal to provide inclusive, high quality education even to remote parts of the country.
• Mock Tests: Pan India mock tests are held every weekend, with the same look and feel adopted by the National Testing Agency (NTA) for conducting the JEE.
• Lectures and Content: SATHEE hosts lectures and video content prepared by Professors and students of the IITs, and the All India Institute of Medical Sciences (AIIMS). 
• Languages: Currently, digital learning material is available in four languages viz. English, Hindi, Odia, and Telugu and it will soon be launching in Bengali with plans to extend it to 13 languages.
• SATHEE Mitras: SATHEE mitras (friends) are aimed at increasing rural coverage of students appearing for entrance tests, including the JEE and NEET.
• Covering NCERT Syllabus: Further, the portal intends to provide lectures and live courses on all National Council of Educational Research and Training (NCERT) syllabus topics. 
  • This will involve refresher courses for Class 11th and 12th students, and later for Class 9th and 10th students. 

News Source: Hindu

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Context:

• The State Educational Achievement Survey by PARAKH was conducted to understand the baseline performance in the development of the competencies at the end of the foundational, preparatory and middle stages.

Insights from the State Educational Achievement Survey 2023

• Objective: To assess the learning competencies of students at the end of each educational stage, i.e., foundational, preparatory, and middle with a primary focus on Language and Mathematics.
• Coverage: The survey covered approximately 80 lakh students from 3 lakh schools at 5917 blocks across the nation. 
  • Non-Participants: Chhattisgarh, Delhi, Odisha, Punjab, Rajasthan and West Bengal                              
• Assessment methodology: Tools to assess students’ competencies were designed using scientific procedures, while the assessment methodology employed a paper-pen-based approach with OMR technology for data capture and analysis, which ensured the precision and efficiency of data acquisition and validation.

Significance of the State Educational Achievement Survey 2023

• A tool for evidence based policy making: It  will give crucial insights into the strengths and potential areas for enhancement within the education system. .
• Increasing sample size: It saw the expansion of the sample size to understand the learning gaps at the block level, a strategic shift from the district.

News Source: PIB

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• The yield spread between 10-year state bonds and 10-year government bonds has widened by 8-10 basis points (bps) in the current quarter of the financial year (2023-24) due to the increased supply of state bonds.

More on News: States Raise Rs 11,620 Crore in Loan Auctions

• In the state loan auctions held recently, 11 states raised Rs 11,620 crore. The 10-year state bonds witnessed cut-offs ranging from 7.65 per cent to 7.68 per cent, indicating a yield spread of 40-41 bps compared to the central government paper.

Government Securities (G-Secs): A Comprehensive Guide to Debt Instruments in India

• A Government Security (G-Sec) is a tradable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.
• Types of G-SECs on the basis of maturity: 
  • Short term (usually called treasury bills, with original maturities of less than one year)
  • Long term (usually called Government bonds or dated securities with original maturity of one year or more). 
  • Issuing Authorities: In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs). 
• G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.
• Dated G-Secs: Exploring Fixed and Floating Coupon Securities
  • Dated G-Secs are securities which carry a fixed or floating coupon (interest rate) which is paid on the face value, on a half-yearly basis. 
    • Generally, the tenor of dated securities ranges from 5 years to 40 years.
• Cash Management Bills (CMBs)
  • In 2010, Government of India, in consultation with RBI introduced a new short-term instrument, known as Cash Management Bills (CMBs), to meet the temporary mismatches in the cash flow of the Government of India. 
  • The CMBs have the generic character of T-bills but are issued for maturities less than 91 days.

• Treasury bills or T-billsTenure
  • Treasury bills or T-bills, are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. 
  • Discount Issuance and Face Value Redemption:Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity. 
    • For example, a 91 day Treasury bill of ₹100/- (face value) may be issued at say ₹ 98.20, that is, at a discount of say, ₹1.80 and would be redeemed at the face value of ₹100/-
• State Development Loans(SDLs):
• • State Governments also raise loans from the market which are called SDLs.
  • SDLs are dated securities issued through normal auction similar to the auctions conducted for dated securities issued by the Central Government 
  • Interest Servicing: Interest is serviced at half-yearly intervals and the principal is repaid on the maturity date. Like dated securities issued by the Central Government, SDLs issued by the State Governments also qualify for SLR.

How are The G-SECs issued? – Insights into RBI Auctions and Electronic Platforms

• G-Secs are issued through auctions conducted by RBI. 
• Electronic Auction Platform: Auctions are conducted on the electronic platform called the E-Kuber, the Core Banking Solution (CBS) platform of RBI.
• Indicative Auction Calendar: The RBI, in consultation with the Government of India, issues an indicative half-yearly auction calendar which contains information about the amount of borrowing, the range of the tenor of securities and the period during which auctions will be held. 
• Auction Notifications: A Notification and a Press Communique giving exact particulars of the securities, viz., name, amount, type of issue and procedure of auction are issued by the Government of India about a week prior to the actual date of auction.
• T-Bills Auction Schedule: The Reserve Bank of India conducts auctions usually every Wednesday to issue T-bills of 91 day, 182 day and 364 day tenors. Settlement for the T-bills auctioned is made on T+1 day i.e. on the working day following the trade day. 

News Source: BS

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• India’s External Affairs Minister attended the virtual BRICS-Plus joint meeting on the Middle East situation in Gaza.

BRICS-Plus Summit: India’s Absence Reflects Unease on Israel-Gaza Debate

• The BRICS-Plus meet titled ‘Extraordinary Joint Meeting on the Middle East situation’ was attended by leaders of the participating countries – Brazil’s Lula da Silva, Russia’s Vladimir Putin, China’s Xi Jinping and South Africa’s Cyril Ramaphosa.
• India’s Prime Minister declined to attend the summit due to other commitments. 
  • However, the decision to skip an appearance with the other leaders of the Brazil-Russia-India-China-South Africa grouping also indicates New Delhi’s discomfort with deliberations that were likely to be critical of Israel’s bombardment of Gaza.

Key Highlights of Virtual BRICS-Plus Joint meeting: Diverse Perspectives on Israel-Hamas Conflict

• South Africa: South Africa urged for an ‘immediate ceasefire’ and called Israel’s “collective punishment of Palestinian civilians” a war crime. 
• China: China too called for an “immediate end to hostilities” in the Gaza Strip and urged for an end to “the collective punishment of Palestinians”
• India: India outlined that  ‘Where terrorism is concerned, none of us should or can compromise with it. Hostage-taking is equally unacceptable and cannot be condoned’.
• Russia: Russia called for a ceasefire in Gaza, the freeing of hostages and the evacuation of civilians from the Gaza Strip.
• Brazil: Brazil called the war a “humanitarian catastrophe” but avoided using the word genocide as he has in the past. 

Related Article: Israel Palestine Conflict, Causes, Impacts, Gaza Strip

News Source: The Hindu

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• This article is based on an Editorial “Quad, CECA on the agenda at India Australia 2+2 Ministerial dialogue” which was published in The Hindu. Recently, India Australia held a 2+2 Ministerial Dialogue in New Delhi.

India Australia 2+2 Ministerial Dialogue: Strengthening Strategic Partnerships in Bilateral Settings

• Defence Minister Rajnath Singh and External Affairs Minister S Jaishankar met Australian Deputy Prime Minister and Defence Minister Richard Marles and Foreign Minister Penny Wong as part of the second India Australia 2+2 Ministerial Dialogue.
• What are Ministerial Dialogue meetings about?
• • The 2 + 2 is a unique ministerial dialogue that brings senior ministers together in a bilateral setting. 
  • India maintains Ministerial Dialogue format only with a few key partners like Australia, the United States, Japan, Russia and the United Kingdom. 
  • This will be only the second 2+2 Ministerial Dialogue round with India’s Quad partner Australia after the first round was held in 2021. 

2+2 Ministerial Dialogue – Military, Geopolitical Challenges, and Educational Collaboration 

• Deepening Military Cooperation:  Enhancing collaboration in critical military areas such as anti-submarine warfare and air-to-air refueling.
• Geopolitical Discussions: Addressing Regional Instability – Insights from India Australia Ministerial Dialogue
  • Crisis in West Asia: The ongoing Geo-political challenges of the Israel-Palestinian conflict  in West Asia were part of the dialogue, reflecting the shared concern for regional stability.
  • War in Ukraine: The ministers addressed the war in Ukraine, expressing deep concern over its humanitarian consequences and reiterating support for a just and durable peace.
• Specific Areas of Cooperation
  • Focus on Niche Training Areas: The ministers highlighted the importance of cooperation in niche training areas, including artificial intelligence, anti-submarine and anti-drone warfare, and the cyber domain.
• Security in Indo-Pacific: Charting Responses to China’s Growing Influence
  • China’s Growing Influence: The talks acknowledged the security implications of China’s growing influence in the Indo-Pacific, emphasizing the need for strategic cooperation to address common challenges.
  • Example: China claims nearly all of the disputed South China Sea, though Taiwan, the Philippines, Brunei, Malaysia and Vietnam all claim parts of it. It has built artificial islands and military installations in the South China Sea.
• Defence Industry and Research: Advancements in Defence Industry and Underwater Technologies Collaboration
  • The discussions explored potential collaboration in areas such as shipbuilding, maintenance, repair, and joint research in underwater technologies.
• Advancements in India Australia Education and Skills Partnership
  • Mechanism for Mutual Recognition of Qualifications: Both sides welcomed the signing of the Mechanism for Mutual Recognition of Qualifications between the two countries.
    • The mechanism covers both education and skill qualifications of the two countries and will help facilitate two way mobility of young people for education and employment purposes by mutually recognizing various levels of education and skill qualifications.
  • Progress in Migration and Mobility Partnership Arrangement (MMPA): The first Joint Working Group Meeting on MMPA held in Canberra on 13 October 2023. 
    • Progress towards the launch of the Mobility Arrangement for Talented Early-professionals Scheme (MATES),  will support the mobility of young Indian professionals in identified sectors to Australia.
  • The Indian side welcomed the interest shown by Australian Universities in setting up offshore campuses in India. 
  • Australia-India Education and Skills Council (AIESC): The Ministers commended the first meeting of the AIESC held recently at Gandhinagar, Gujarat
  • ‘Maitri’ fellowship Programme:  Australian Foreign Minister announced  the ‘Maitri’ fellowship programme, under which Indian researchers will get to spend six months to two years at a think-tank in Australia, while researchers from the country will spend the same time at an Indian institution.

The Evolution of India Australia Bilateral Relations into a Comprehensive Strategic Partnership

• Diplomatic Relations: Australia and India established diplomatic relations in the pre-Independence period, when the Consulate General of India was first opened as a Trade Office in Sydney in 1941. 
  • India’s first High Commissioner to Australia arrived in Canberra in 1945.
• Shared Values: India Australia bilateral relationship based on shared values of pluralistic democracy, expanding economic engagement, and high-level interaction. 
  • Both countries have common traits such as strong, vibrant, secular, and multicultural democracies, independent judicial system, free press, and English language. 
• Development of Closer Ties: The end of the Cold War and India’s economic reforms in 1991 strengthened ties. 
  • Growing tourism, sports, and increasing number of Indian students studying in Australia played a significant role in strengthening the relationship.
• Evolution to strategic ties and plurilateral cooperation: Over time, the India Australia relationship became strategic and not just economic. 
  • Recently, they have cooperated on issues like international terrorism and promoting a rules-based order in the Indo-Pacific region.
  • The two democracies have taken their cooperation to plurilateral formats, including the Quad (with the United States and Japan).
• Strategic Ties: Historic Visits and Collaborative Milestones
  • In September 2014: Australia’s Prime Minister Tony Abbott visited India, and in November that year, PM Narendra Modi became the first Indian Prime Minister to make an official visit to Australia after Rajiv Gandhi in 1986.
    • He also became the first Indian PM to address a joint sitting of the Parliament of Australia.
  • June 2020: At the India Australia Leaders’ Virtual Summit in June 2020, Modi and Prime Minister Scott Morrison elevated the bilateral relationship from the Strategic Partnership concluded in 2009 to a Comprehensive Strategic Partnership (CSP).

Diverse Dimensions of India Australia Cooperation in Trade, Education, Defence, and Clean Energy

• Geographical Proximity and Strategic Ties Between India and Australia
  • Australia is situated in India’s extended neighborhood, fostering a unique geographical closeness.
  • Former Australian Foreign Minister Stephen Smith highlighted the proximity, emphasizing that Perth and Chennai are closer than Sydney is to major cities like Seoul, Shanghai, or Tokyo.
• Economic cooperation: The Impact of ECTA on India Australia Bilateral Trade and Cooperation
  • The Economic Cooperation Trade Agreement (ECTA), the first free trade agreement between India and a developed country in a decade, came into force in December 2022. 
  • Reduction in Duties: It has resulted in an immediate reduction of duty to zero on 96% of Indian exports to Australia in value (that is 98% of the tariff lines) and zero duty on 85% of Australia’s exports (in value) to India.
  • Bilateral Trade: The bilateral trade, which was worth US$ 27.5 billion in 2021, is expected to reach US$ 50 billion in five years due to ECTA.
    • Australia is currently India’s 17th largest trading partner and India is Australia’s 9th largest trading partner.
• People-to-people ties: India’s Vibrant Presence in Australia at India@75
  • India is one of the top sources of skilled immigrants to Australia. 
  • As per the 2021 Census, around 9.76 lakh people in Australia reported their ancestry as Indian origin, making them the second largest group of overseas-born residents in Australia. 
  • To celebrate India@75, the Australian government illuminated more than 40 buildings across the country.
• Fostering Student Mobility and International Campus Expansion in GIFT City
  • The Mechanism for Mutual Recognition of Educational Qualifications (MREQ) was signed in March 2023 to facilitate student mobility between India and Australia. 
  • Australia’s Deakin University and the University of Wollongong Indian campuses are being opened in the GIFT City (Gandhinagar). These are the first two international universities to be approved to set up a campus in India
  • More than 1 lakh Indian students are currently studying in Australian universities, making Indian students the second largest cohort of foreign students in Australia.
• India Australia Defence Cooperation
  • The First  2+2 Ministerial Dialogue was held in September 2021.
  • Mutual Logistics Support Agreement (MLSA) was concluded during the Virtual Summit in June 2020.
    • The agreement allows the two countries to access military bases for refueling and logistics purposes, as well as to enhance military engagement and maritime domain awareness between the two countries.
    • India has a Mutual Logistics Arrangement with many countries such as the U.S., France,South Korea and Singapore. 
  • Defense Exercises: 
    • “Malabar” exercises: Australia participated in the MALABAR naval exercise joining India, the United States, and Japan.
    • AUSINDEX: Royal Australian Navy and the Indian Navy  bilateral exercise
    • Pitch Black: For the first time, the Indian Air Force participated in Exercise Pitch Black in Darwin in 2018.

• Clean Energy: 
  • The countries signed a Letter of Intent on New and Renewable Energy in February 2022 which provides for cooperation towards bringing down the cost of renewable energy technologies.During the Virtual Summit in March 2022, India announced matching funds of AUD 10 million for Pacific Island Countries under Infrastructure for Resilient Island States (IRIS) and of AUD 10 million for Pacific Island Countries under International Solar Alliance (ISA).

Challenges in India-Autralia Relations: Visa Issues, Security Concerns, and Economic Hurdles

• Visa issues:
  • There have been concerns over visa restrictions for Indian students and professionals seeking to work in Australia.
  • In April 2023, at least five Australian universities placed bans or restrictions on students from some Indian states, amidst a surge in fraudulent applications from South Asia seeking to work – not study – in this country, according to a media report.
• Khalistan Movement Concerns: The recent surge in ‘khalistani’ activities in Australia to the extent of the ‘Kill India’ rally and open threats to Indian diplomats is a grave concern that needs to be addressed.
  • Prime Minister during his visit to Australia in may 2023, raised the issue of attacks on temples in the country.
• Economic Relationship Limitations:
  • Narrow Economic Ties: The economic relationship is narrow and primarily dominated by coal exports, with challenges in diversifying and expanding trade beyond this sector.
  • Mining Investment Challenges: Indian companies’ plans for significant investments in Australian mining, particularly in coal projects, have faced obstacles, impacting the economic partnership.
• Free Trade Agreement Challenges:
  • Market Access and Labor Mobility: India’s reluctance to liberalize market access in agriculture and Australia’s reservations about allowing significant labor mobility are obstacles to finalizing a comprehensive free trade agreement.
• Lack of Uranium Supply: The progress on uranium supply has been very low, despite efforts from both sides.
  • In 2017, Australia had sent its first uranium shipment to India but that was cited as “a small sample of uranium” transferred “purely for testing purposes”.
• Adani coal mine project in Australia: The proposed Adani Carmichael coal mine project in Queensland, Australia, led by the Indian company Adani Group, has faced environmental and regulatory hurdles.
  • Protesters have raised concerns that the project can possibly increase global warming and also threaten the Great Barrier Reef.

Way Forward: Overcoming Economic Challenges, Advancing Science & Technology, and Ensuring Regional Security

• Navigating Market Challenges: Although the government has achieved a favorable trade deal, India faces hurdles entering the Australian market, given Australia’s 16 operational FTAs.
  • The key to success lies in improving competitiveness, especially considering competition from nations like China, ASEAN, Chile, Japan, Korea, and New Zealand with established FTAs.
• Amended tax laws: The Economic Cooperation and Trade Agreement (ECTA) between India and Australia addresses taxation challenges faced by Indian IT companies. 
  • Australia should commit to amending tax laws, preventing taxation of offshore income from Indian firms providing technical services.
• Science & Technology: The Australia-India Strategic Research Fund (AISRF) serves as a pivotal avenue for collaborative scientific endeavors, jointly funded and managed by both nations.
  • AISRF contributes to India’s and Australia’s integration into the global Science and Technology system, facilitating access and participation on a broader international scale.
  • AISRF paves the way for innovation in crucial sectors, promoting mutual growth and advancements.
• Economic Cooperation: 
  • India and Australia are continuing the momentum over free trade negotiations, following the interim trade pact coming into force at the end of 2022. 
  • Seeking to reap further dividends, the two countries appear to be on the fast lane to conclude a Comprehensive Economic Cooperation Agreement (CECA) by December 2023.
• Control of khalistani activities: Australia should take proactive measures to enhance the safety and security of the Indian community. 
  • India has requested Australia to “ensure the safety and security of members of the Indian community and their properties” and to not allow the use of Australian territory for “activities that would be detrimental to the territorial integrity, security and national interests of India”.
• Open Indo-Pacific Cooperation:
  • Acknowledge and strengthen cooperation between India and Australia in promoting the principles of an open and inclusive Indo-Pacific. 
  • Both countries reaffirmed their support for sovereignty and territorial integrity in the Indo-Pacific, democratic values, rule of law, freedom of navigation and overflight and the peaceful resolution of disputes.

Conclusion: 

• The 2+2 ministerial dialogues have underscored mutual interests in defense, security, and economic collaboration. Despite challenges, including geopolitical complexities and regional tensions, both nations recognize the need for an inclusive Indo-Pacific security framework.
• The ongoing negotiations for a comprehensive economic cooperation agreement reflect a shared vision for diversified collaboration beyond defense. Effective management of challenges posed by China and addressing them.

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Context:

• This article is based on an Editorial “We need well-designed and nationally-accepted tools to measure social inequality” which was published in LiveMint. Current social inequality estimates do not tell us much about the country’s wealth concentration process, and how that varies across regions.

The Evolving Discourse on Economic & Social Inequality in India

• Shifting Narrative on Social Inequality: Over the past two decades, the narrative on Social inequality has shifted considerably as new data sets and innovative estimation techniques have forced a re-appraisal of economic inequality in the country.
• India Human Development Survey (IHDS): The two IHDS rounds conducted in 2004-05 and 2011-12 provided nationally representative income distribution estimates. They showed that consumption inequality was in line with the official estimates, and comparable to developing country peers, but income inequality in India was higher than in most parts of the world.

Exploring the Dimensions of Social Inequality in Modern Society

• Social Inequality is the uneven distribution of resources or opportunities among individuals or groups. It can be measured in several ways, including income inequality, wealth inequality, and inequality of access to education, healthcare, and other essential services.

Beyond the Divide: Navigating Distinctions Between Social Inequality and Poverty

Wealth Disparities: Oxfam’s Insight into India’s Social Inequality Landscape

• Oxfam India’s report (“Survival of the Richest: The India story”) on Social inequality in India (Published in January 2023):
• Key Findings:
  • Economic Inequality: It finds that  5 percent of Indians own more than 60 percent of the country’s wealth. In comparison, the bottom 50 percent of the population possess only 3 percent of the wealth.
  • Income inequality:It further finds between 2012 and 2021, 40 percent of the wealth created in India has gone to just 1 percent of the population and only a mere 3 percent of the wealth has gone to the bottom 50 percent, adding that the total number of billionaires in India increased from 102 in 2020 to 166 billionaires in 2022.
  • Wealth Concentration: The combined wealth of India’s 100 richest has touched $660 billion (Rs 54.12 lakh crore) — an amount that could fund the entire Union Budget for more than 18 months.

Challenges in Measuring Inequality in India

• Challenges with Measuring Economic Inequality:
  • Lack of comprehensive Income data: India does not have a comprehensive income distribution survey, making it difficult to assess income inequality levels accurately. Instead, economists rely on household consumption expenditure surveys, which provide insights into spending patterns but may not fully capture income disparities.
    • The data on household consumption expenditure collected by National Sample Survey Office (NSSO) is among the prominent proxy measures used to capture economic inequality, however data is held by the government citing quality issues in June 2019.
  • Informal economy: India has a large informal economy, where many people work without formal employment contracts or records. This makes it difficult to measure income levels in the informal sector accurately.
    • Underreporting income can lead to underestimating true income inequality levels.
• Challenges with Measuring Social Inequality:
  • Sensitivity of caste data: The public discourse on the caste census has focused largely on its electoral implications and there is a reluctance to provide accurate caste information in surveys. 
    • Also, the 2011 socio economic caste census failed to produce jati-wise details because of inadequate preparatory work.
  • Resistance to caste-based census:  Forward castes fear that the ambit of caste quotas may be enlarged. Upper segments of Other Backward Classes (OBCs) fear socioeconomic data on subcastes will expose the wide chasm between them and lower OBCs. 
    • Some forward caste groups, which want to be included in the list of OBCs, fear that such data might undermine their claims of backwardness.
  • Measuring intersectionality: Social inequality often intersects with other factors such as gender, religion, and ethnicity. Measuring these complex interactions can be challenging.
• Challenges with Measuring Political Inequality:
• • Subjective assessments: Assessing political influence and power can be subjective, making it difficult to quantify political inequality accurately.
  • Changing dynamics: The political landscape in India is constantly evolving, making it challenging to track changes in political inequality over time.

Roots of Disparity: The Complex Web of Social Inequality in India

• Poverty and Lack of Resources: One of the main reasons for Social inequality in India is poverty and lack of resources. This prevents them from participating fully in the economy and improving their lives.
• Education and Health: Education and health are essential for economic and social mobility, but access to these services is unequal in India. This Social inequality in education and health perpetuates the cycle of poverty.
  • The All India Survey of Higher Education (AISHE) 2020-21 showed that the gross enrollment ratio (GER) for higher education in India was 27.1%, but this varied significantly by socioeconomic status.
  • For example: the proportion of SC students is 14.2% and the proportion of OBC students is 35.8% in 2020-21.
• Lack of Employment Opportunities: The lack of employment opportunities disproportionately affects the poor and marginalized groups, further exacerbating their disadvantaged position. The inability to secure a decent job limits their ability to earn a living, access essential services, and improve their quality of life.
  • India has an unemployment, quality of jobs and quality of income challenge. Unemployment in India stood at 8.1% in February 2022, as per Centre for Monitoring Indian Economy (CMIE) data.
• Social Structures and Hierarchies: Caste, religion, and gender have long shaped India’s social stratification. These structures shape Indian society’s opportunities and outcomes. Lower castes face discrimination in school, employment, and marriage. Discrimination maintains their social disadvantage.
  • A study by the Pew Research Center found that 64% of Indians believe that caste discrimination is a major problem in the country (Pew Research Center, 2022).
• Gender inequality and patriarchal norms:. Women face discrimination in education, employment, and social participation, limiting their economic opportunities and perpetuating their marginalized position.
  • Global Gender Gap Report: India has ranked at 127 out of 146 countries in terms of gender parity — an improvement of eight places from last year.
• Regressive Taxation System: There is a fundamental problem with India’s current tax system. India simultaneously has a tax base for direct taxes that is too small and a tax base for indirect taxes that is too large.
  • For Example: The corporate tax to GDP ratio stood at 3.1 per cent whereas GST collections were at 6.6 per cent of GDP in 2022-23.
• Malgovernance and Corruption: Corruption is a major problem in India, contributing to Social inequality in several ways. For example, corrupt officials can divert resources from the poor and into their own pockets. They can also use their power to favor certain groups of people over others.
  • Transparency International’s Corruption Perception Index ranked India 86th out of 180 countries in 2022, indicating a significant level of perceived corruption 
  • The Comptroller and Auditor General of India (CAG) reported that the central government’s budget utilization rate was only 78.7% in 2022-23 (CAG, 2023).

Way Forward: A Comprehensive Framework for Tackling Multidimensional Inequality in India

• The Multidimensional inequality Concept: A new approach focuses on the interrelationship between variables like income, labor, education, health and household conditions to emphasize the degree of deprivation.
  • Income deprivation can increase the probability of descent into poverty, a multidimensional understanding is important to assess the degree of deprivation in terms of the lack of basic necessities, such as quality education and healthcare, which can improve living standards (The State of Inequality in India Report-2022).

• Official database: Officials from the Ministry of Statistics and Programme Implementation, Reserve Bank of India and the income tax department must work together to create a new income and wealth distribution database.
  • Moni Mukherjee (Statician) paired consumption data from surveys with savings data from the Reserve Bank of India (RBI) to estimate decile-wise income shares. Such efforts need to be revived.
• Socio Economic Caste Census: Integrating the census with statistical functions will improve its quality and policymaking. Detailed case studies and representative state-wise surveys of caste groups can uncover facets of the caste system that a short census questionnaire is unlikely to reveal. 
  • The census office roped in independent scholars to conduct village-level case studies documenting rural India’s changing caste relations and mobility profiles.
• Progressive taxation:
  • Wealth Tax:  In 2020, the Economist S Subramanian estimated that a tax of just 4 percent on the estimated wealth of the top 953 richest families (based on the Hurun India wealth list for 2019) would yield the equivalent 1 percent of GDP in additional taxes more than three times the central government’s health expenditure.
  • Property Tax: 
    • Currently, India barely relies on property taxes, with a property tax to gross domestic product (GDP) ratio of 0.2%. By comparison, the average property tax to GDP ratio for OECD countries is almost 2%. 
• Welfare Schemes: Raising minimum income, introducing a universal basic income scheme, Universal Health care system  and an urban equivalent of the MGNREGS, allocating of a higher percentage of expenditure towards social services, equitable access to education, and creating more jobs with long-term growth will help to bridge inequality gaps.
• Reforms to the economy’s structure could further support efforts to reduce social inequality by reducing adjustment costs, minimizing regional disparities, and preparing workers to fill a growing number of green jobs.
  • Geographically targeted policies and investments can complement existing social transfers.

Conclusion:

Measuring inequality accurately and comprehensively is essential for designing effective policies and interventions to address it. The emphasis on the interaction between social and economic aspects of inequality helps us holistically drive policy action through social protection frameworks.

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