Context: Tal Mitnick of Israel has been slapped with a prison sentence for being a conscientious objector.

Why has Israel imprisoned an 18-year-old ‘conscientious objector’?

• Israeli law mandates that all citizens serve in the military for a certain duration( also known as Conscription). 
• Tal Mitnik will spend 30 days in prison for refusing to join the Israeli military.
• He has refused on the ideological grounds that ‘Slaughter cannot solve Slaughter’ and has become the latest Conscientious Objector to conscription in Israel. 

Who Is A Conscientious Objector?

• A conscientious objector is an individual who refuses to perform military service on the grounds of their conscience, often for ideological and religious reasons.
• First Example: The earliest documented conscientious objector was Maximilianus, a 21-year-old who refused to serve as a soldier in the Roman army in 295 CE. 
• Other Examples: 
  • Muhammad Ali : In 1967, as the reigning world heavyweight champion, Ali refused induction into the military, claiming the Vietnam War was against the teachings of the Quran.
  • Punishment To Ali: He was Stripped of his heavyweight title, suspended from boxing, a $10,000 fine, and a five-year prison sentence.
• International Recognition: The Universal Declaration of Human Rights (1948), adopted the right to “conscience” in international law. This has provided a legal basis for Conscientious Objector. 

Crisis of Conscience

• Definition: A crisis of conscience refers to a situation in which an individual’s beliefs or values conflict with their actions or decisions. 
  • It is a moral or ethical dilemma that arises when one is faced with a choice that goes against their conscience.
  • This can manifest when an individual is confronted with a decision or action that goes against their beliefs or values.

Source: Indian Express

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Context: The Union government has issued an order paving the way for Persons with Disabilities (PwDs) to be considered for reservation in promotions. 

Reservation in Promotion to Persons with Disabilities (PwDs) 

• Mechanism: The reservation will be provided in promotions up to the lowest rung of Group A posts in the Central government, with effect from June 30, 2016. 
• On June 30, 2016 Supreme Court in Rajeev Kumar Gupta Vs. UOI case had ruled that PwD candidates must be entitled to reservation in promotions irrespective of whether the positions were filled through reservation or not. 

Legal Battle

• Persons with Disabilities (PwDs) candidates have been fighting for the benefit of reservation in promotions for more than a decade, with the matter passing between multiple Benches of the Supreme Court. Finally, the apex court withheld the right to reservation in promotions for PwDs in 2021. 
• The government has decided to grant notional promotion to PwD candidates with effect from June 30, 2016. 

Why do Persons with Disabilities (PwDs) demand reservation in promotion?

• Equity: Reservation in promotion will improve the equity in the Persons with Disabilities and allow them access to opportunities like other people. 
• Social Justice: The reservation will ensure inclusion and participation by all the sections of the society. 
• Historical Disadvantage: The Supreme Court has recognized the historical disadvantage faced by PwDs and the need for affirmative action like reservation in promotion to address it. 
• Representation: The Rights of Persons with Disabilities Act, 2016, mandates reservation in promotions for PwDs in government jobs to ensure their presence.
• Constitutional Provision: Article 16(4) provides the Fundamental Right of ‘equality of opportunity’, under which the PwDs are provided the reservations. 
• Their own Demand: They have been pursuing the case for reservation in provision for a long time. 

About Rights of Persons with Disabilities Act, 2016

• Increased Cover: The types of disabilities have been increased from 7 to 21 such as mental illness and muscular dystrophy.
• Reservation: It increases the reservation from 3% to 4% in government jobs and from 3% to 5% in higher education institutes.
  • Section 34 of the act provides for reservation in Promotion.
• Funds:  A separate National and State Fund will be created to provide financial support to PwDs.
• Grievance Redressal: The Chief Commissioner for PwDs will act as a regulatory body and Grievance Redressal agency, monitoring the implementation of the Act.

Source: The Hindu

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Context: The Home Minister has announced in Parliament that doctors will be exempted from criminal prosecution in cases of death due to negligence. 

Medical Negligence Decriminalised in New Criminal Law Bill: Views From Both Sides

• In the Bharatiya Nyaya (Second) Sanhita (BNSS), (the rulebook set to replace the Indian Penal Code), doctors will now be exempted from “criminal prosecution” in alleged medical negligence cases when a patient dies. 
  • However, under other sections of BNSS, doctors will continue to face a two-year imprisonment and/or a fine if convicted. 
• The Indian Medical Association (IMA) has long argued that medical negligence should not be considered a crime. 

To know more about SSE: Refer to Parliament Passes Three New Criminal Law Reform Bills

Arguments for Exemption from Criminal Prosecution

• Coercion: Criminal prosecution of doctors has become a form of harassment and doctors are mortally afraid of the criminal law. 
  • IMA reported around 98,000 deaths per year due to medical negligence in contrast with 52 lakh medical negligence cases filed against doctors.
• Crisis of Conscience: The fear of criminal prosecution influences the decision a doctor makes in critical moments, with the doctor choosing safe over necessary. 
• Commitment to Duty: Exemption of doctors from criminal prosecution will provide the nation better results in patient care.
  • Over 75% of doctors and paramedics face violence as per IMA.
• Unforeseen Complications: Accidents, though unfortunate, can happen even with the best intentions and due diligence. Unforeseen complications during surgery, adverse reactions to medication, or equipment malfunction are some examples.

Arguments in Favour of Criminal Prosecution

• Accountability and Justice: Absence of criminal prosecution for the wrongdoing doctor will impinge on the patient justice and accountability. Eg- Organ Trade etc. 
• Informed Consent: Innovative AI based treatments require a deep understanding of the procedure before providing informed consent. This can be enforced through legislation. 
• Privacy of the Patient: Having legislation will help improve the framework for ensuring medical privacy. 
• Discriminatory: Might lead to an increase in cases of deaths by medical negligence among women, queer, and transgender persons, and those who live in rural areas.
• Unequal Power: Owing to the “power imbalance” in the doctor-patient relationship, an act of negligence on the part of the doctor calls not for a lower punishment but a higher one. 
• Misuse: Blanket exemption of doctors from criminal prosecution for negligence might lead to an increase in medical malpractice.
• Non-Participatory: Patient advocacy groups have not been given the voice they deserve before deciding.
• Faith in Legal System: In the absence of a legal recourse for medical negligence, victims may lose faith in the legal system and resort to violent attacks on doctors.

What is Medical Negligence? 

• Definition: The failure to act in accordance with the standards of established medical guidelines at the time. 
• IPC: Section 304A of the Indian Penal Code (Old) – “Whoever causes the death of any person by doing any rash or negligent act not amounting to culpable homicide, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.” 
• IMA Recommendation: BNSS should make a clear distinction between medical “negligence” and medical “accident”. 
  • “Negligence” would refer to a “reckless”, “conscious and voluntary disregard of the need to use reasonable care” on part of the doctor. 
  • “Accident” would involve sudden and unexpected deaths of patients under medical care without conscious intention to harm on the part of the doctor.

Way Forward

There should be a nationwide survey on Decriminalisation before the government decides on medical negligence. The survey will provide the data to frame the legislation with evidence. 

Source: The Hindu

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Context: Phase 1 of the Bharatmala project deadline has been extended by six years, to FY 2027-28. 

Bharatmala Project deadline Extended to 2027-28

• The first phase of Bharatmala Project was announced in 2017 and was to be completed by 2022.
• Estimated Cost: The Cabinet Committee on Economic Affairs (CCEA) approved the first phase of Bharatmala Project with an estimated cost of  Rs 5.35 trillion.
  • Cost overrun: There was a 100% increase in the estimated cost of the project which was appraised by the Public Investment Board (under Department of Expenditure, Ministry of Finance) at Rs 10.95 trillion. 
    • The per km cost of the project increased from Rs 14 crore to Rs 24 crore as per CAG report.
  • Time overrun: Till November end, only  76% (24,416km) of the total length of 34,800 km have been awarded with only  42%( 15,045 km) of the project completed.
• New deadline for Bharatmala Project: 
  • Award:  Ministry of Road Transport and Highways (MoRTH) has been targeted to obtain all clearances( land acquisition, environmental, etc) by the end of 2024-25 and award the remaining project.
  • Completion: The completion of construction has a new deadline of 2027-28.
• Reasons for Delay Bharatmala Project:
  • Increase in raw material cost.
  • Increased land acquisition costs and unresolved land disputes.
  • Impact of the COVID-19 pandemic on construction activities.
  • Absence of a systematic prioritization method and no clear completion timelines (as per CAG report).
  • Increase in Goods and Services Tax rates.

About Bharatmala Project

• About:  Bharatmala Project is a centrally funded road and highway development project conceptualised in 2 phases across India.
  • Objective:  To develop road connectivity linking  Border areas, Coastal roads and port connectivity of major and Non-Major ports, improvement in the efficiency of National Corridors, development of Economic Corridors, expressways,  Inter Corridors and Feeder Routes along with integration with Sagarmala.
  • Phase I: It is to develop economic corridors, feeder roads, and expressways. It covers 34800 km out of the total length of 74942.
• Nodal Ministry: Ministry of Road Transport and Highway
• Implementing Agencies: National Highways Authority of India (NHAI), National Highways and Infrastructure Development Corporation Limited (NHIDCL), and State Public Works Department.  
• Funding Mechanism: The project will be funded through, Cess collected from Petrol & Diesel (as per Central Road & Infrastructure Fund Act, 2000) ;Toll Tax ;Monetisation of National Highways through TOT (Toll-Operate-Transfer) ;Internal & Extra Budgetary Resources (IEBR) ; Private Sector Investment.

Also Read: Road Accidents In India-2022′ Report Released By MoRTH

News source: financial Express

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Context: India’s Financial Intelligence Unit has issued show-cause notices to nine offshore crypto-currency operators, including Binance, for not complying with the Prevention of Money Laundering Act, 2002 (PMLA).

Financial Intelligence Unit India (FIU IND) issues compliance Show Cause Notices to nine offshore Virtual Digital Asset Service Providers (VDA SPs)

• The compliance Show Cause Notices have been issued to nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the PMLA.
  • These include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
• The Ministry of Electronics and Information Technology has been asked to block the URLs of these nine entities as they have been operating illegally in India without complying with the provisions of PMLA.

About Virtual Digital Asset Service Providers (VDA SPs)

• VDA SPs are engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets etc.
• They were brought under the ambit of the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PML) Act, 2002 in March 2023.
• They must be registered with Financial Intelligence Unit  as a Reporting Entity and comply with the set of obligations as mandated under the PML Act.
  • The obligation is activity-based and is not contingent on physical presence in India. 
  • The regulation casts reporting, record keeping, and other obligations on the VDA SPs under the PML Act, including registration with the Financial Intelligence Unit .
• Till date, 31 VDA SPs have registered with Financial Intelligence Unit .

About Financial Intelligence Unit

• Financial Intelligence Unit is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
• Functions: To receive cash/suspicious transaction reports, analyse them and, as appropriate, disseminate valuable financial information to intelligence/enforcement agencies and regulatory authorities.
  • Information Gathering: Serve as the primary point of contact for reports on the purchase or sale of immovable property (IPRs), suspicious transaction reports (STRs), cross-border wire transfer reports (CBWTRs), and cash transaction reports (CTRs) from various reporting institutions.
  • Information Analysis: Analyze received information to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.
  • Information sharing: Sharing information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.
  • Central Repository: Establish and maintain a national database on cash transactions and suspicious transactions based on reports received from reporting entities.
  • Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.
  • Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments.
• It is a multidisciplinary body with a sanctioned strength of 75 Personnel from various government departments. 
  • The members are inducted from organizations including the Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC), Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Department of Legal Affairs and Intelligence agencies.

News Source: HT

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Context: The Securities and Exchange Board of India (SEBI) has issued guidelines for public issuance of zero coupon zero principle instruments by not-for-profit organisations (NPOs) and listing of such instruments on the Social Stock Exchange (SSE).

SEBI Norms for Public Issuance of Zero Coupon Zero Principle Instruments by NPOs

• Not Transferable: Such instruments will be issued in dematerialised form only and are not transferable.
• Minimum Sizes:  The minimum issue size has been set at Rs 50 lakh. 
  • The minimum application size at Rs 10,000. 
  • The minimum subscription required to be achieved will be 75 per cent of the funds proposed to be raised through issuing such instruments.
• Process for listing on SSE: 
  • Filing of Draft Document: NPO must file the draft fundraising document with the SSE through the lead manager and an application seeking in-principle approval for listing the instrument on the SSE. 
  • The SSE will provide its observation on the draft fundraising document to the NPO within 30 days of filing the papers or receipt of clarification, if any, sought by the exchange from the NPO, whichever is later.
  • NPO will incorporate the observations of the SSE in a draft document and file the final papers to the SSE before opening the issue. The SSE must specify the details in the fundraising document.
• Under-Subscription: The funds will be refunded if the subscription is less than 75 per cent of the issue size.
• Maintenance of records:  SSE will be required to maintain the details of the allotment following the issuance of zero coupon zero principle instruments by an NPO. 
  • SSE will have to specify the additional norms concerning the issue procedure, such as agreements with depositories, banks, duration for public issuance, allocation methodology and any other ancillary matter related to the issue procedure.

About Zero Coupon Zero Principle Instruments

• Zero coupon zero principle instruments (ZCZP) are financial instruments that a non-profit organisation may use to raise funds.When an entity issues these securities and raises money, it is not a loan but a donation. 
  • The borrowing entity does not have to pay interest—therefore zero coupon—and does not have to pay the principal (zero principal) either.
  • Like any other debt instrument, it will come with a time duration.
• Any individual or corporate can buy the security through SSE once they are open for business.
• The Finance Ministry had declared zero coupon zero principle instruments (ZCZP) as securities for the Securities Contracts (Regulation) Act, 1956.
• These instruments will be governed by rules by the SEBI.
• Significance: It will help organizations and corporates to utilize their social responsibility funds and support non-profit organizations more transparently.

To know more about SSE: Refer to Social Stock Exchange

News Source: IE

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Context: The Union government will extend export benefits under its duty remission scheme (RoDTEP)  to e-commerce exports.

India’s Roadmap For E-Commerce Exports 

• Present Export status: India’s exports of goods via e-commerce is about $1-1.5 billion (through postal and courier exports) in comparison to China’s e-commerce exports $300 billion annually.
• Target: India aims for USD 200 billion in exports through e-commerce by 2030, when total merchandise exports will touch USD 1 trillion.
• Encouraging MSMEs: MSMEs are expected to benefit to the tune of USD 1-2 billion in annual exports.
• • Beneficiary sectors:  Gem and jewellery, handloom, handicraft, AYUSH products, pharma, leather and textiles.
  • The government is actively roping in online marketplaces such as Amazon to handhold MSMEs at the district level under the District as Exports Hubs Program.

Government Initiatives to Promote E-Commerce Exports

• Foreign Trade Policy of 2023, has raised the limit per consignment of goods through e-commerce to Rs 10 lakh from Rs 5 lakh.
• Enabling e-commerce exports: DGFT (Directorate General of Foreign Trade) and Shiprocket has signed an MoU to  hold capacity building and handholding sessions as part of the ecommerce outreach under its Districts as Export Hubs Initiative.
  • DGFT  will put in place an  IT framework to enable the exporters for smooth navigation.
  • An  e-commerce export handbook for MSME was launched  to serve as a  comprehensive guide for new entrepreneurs looking to export through the ecommerce route.
  • District as Export Hubs Initiative: As part of the program, Amazon and DGFT will co-create capacity building sessions, training and workshops for MSMEs in districts identified by the DGFT.
    • The initiative will link local producers even in rural and remote districts with global supply chains.
  • Setting up export facilitating post-offices across the country.
  • Creating e-exports zones.

Remission of Duties and Taxes on Exported Products (RoDTEP) 

• About: The Scheme provides for refund of taxes, duties and levies that exporters incur in the process of manufacturing and distribution of goods.
• Under the scheme, a rebate is provided for all hidden taxes at every level on the exported product that has not been refunded under any other existing scheme.
• Budget: For 2023-24, a budget of Rs 15,070 crore is made available with the scheme already  supporting USD 450 billion worth of exports at the cost of Rs 13,020 crore.
• The RoDTEP scheme is WTO compliant. This means that it does not violate any international trade agreements. 
• Tax range: The refund rate under the scheme ranges from 0.5 per cent to 4.3 per cent of the product’s value, and it varies depending on the product and the country of export. Examples:
  • Textiles: 2.4% for exports to the United States
  • Machinery: 1.0% for exports to all countries
  • Agricultural products: 0.5% for exports to all countries

Also Read: Empowering MSMEs For Export Success

News source: The economic times

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Context: The 82nd Session of Indian History Congress(IHC) began at Kakatiya University in Warangal.

Indian History Congress to be held at Kakatiya University

• Kakatiya University will host the Indian History Congress after a 30 years gap.
• The IHC is a two day annual conference which will begin on 28th December and conclude on December 30.
• It will have a discussion panel on Dalit History and a Panel on Deccan Past and Present among others. A total of 1067 papers are set to be presented at the event.

About Indian History Congress

• About: It is the largest professional and academic body of Indian historians with a membership of over 35000 historians; it is the oldest national organisation of Indian historians.
• Establishment: It was established under the name of Modern History Congress, with its first session being held at Poona in 1935.
• Vision:  To study all aspects of history(political, economic, cultural, nationalist, etc) and  emphasize the integrative factors in the past. 
  • To represent a secular and scientific approach to our past.
• Journal: “The Proceedings of the Indian History Congress” is an annual journal of IHC carrying  research papers selected out of papers presented at its annual sessions on all aspects and periods of Indian History
• Notable members: Historians such as  Mohammad Habib, Ram Sharan Sharma, Satish Chandra, Bipan Chandra, Romila Thapar, Irfan Habib,  Barun De, B. N. Mukherjee, K. N. Panikkar 

News source: the hindu

Also Read: Tansen Samaroh Or Tansen Music Festival 2023

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Context: Minimum temperatures in several parts of Kashmir have dropped below -3° Celsius, leading to a cold wave in the region.

Kashmir in the grip of ‘Chilla-i-Kalan’

• Chilla-i-Kalan is a local name given to a 40-day harsh winter period in Kashmir. Chilla-i-Kalan will be followed by the 20-day “Chilla-i-Khurd” and the 10-day “Chilla-i-Bachha“.
• Freezing Temperature: Kashmir is currently in the grip of “Chilla-i-Kalan“, when temperatures drop considerably, leading to freezing of water bodies.

• Snowfall: The chances of snowfall are the highest during this period, and most areas, especially the higher reaches, receive heavy snowfall. 

About Cold Wave

• According to the World Meteorological Organisation (WMO), a cold wave is a period of marked and unusually cold weather characterised by a sharp and significant drop in air temperatures near the surface over a large area and persisting below certain thresholds for at least two consecutive days during the cold season.
  • Qualitatively, It is a condition of air temperature which becomes fatal to the human body when exposed. 
• Criteria of Cold Wave According to IMD: When the minimum temperature of a station is less than or equal to 10°C for plains and less than or equal to 0°C for hilly regions.
  • Based on departure:
    • Normal: Negative Departure from normal is 4.5°C to 6.4°C
    • Severe Cold Wave:  Negative Departure from normal is more than 6.4°C.
  • Based on actual Minimum Temperature (for Plains only):
    • Normal: When Minimum Temperature is less than or equal to 4.0°C
    • Severe Cold Wave: When Minimum Temperature is less than or equal to 2.0°C
  • For Coastal Stations: When Minimum Temperature departure is less than or equal to -4.5 °C or actual Minimum Temperature is less than or equal to 15 °C.

Major Factors for Cold Wave Occurrence Over India

• Build up of a ridge (an extended area of relatively high atmospheric pressure) in the jet stream over northwest Asia.
• Formation of surface high-pressure over north & central India.
• Movement of cold air masses in response to steering by upper-level winds.
• Triggering mechanisms like strong westerly waves approaching northwest India to enhance winds for the transport of cold air southeastward.
• Extensive snow covers over the Northwest Himalayas.

Effects of Cold Wave

• Humans: It can lead to hypothermia and other cold-related illnesses, especially among people who are not properly dressed for the cold weather. People with heart problems, older people, and infants are likely to experience increased heart problems, breathing issues, and other issues including deaths, from colder weather. 
  • According to NCRB, the highest number of human deaths were reported during 2015, which was the deadliest Cold Wave. 
• Agriculture: According to IMD, It can also negatively impact agriculture and ecosystems by damaging crops and causing droughts.

News Source: ET

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Context: The Court of Appeal in Qatar commuted the death sentence of eight former Indian Navy personnel who were arrested last year on alleged charges of espionage. The details of their charges are still unknown.

Explained Dahra Global Case: How India’s Diplomatic Prowess Saved Lives of 8 Ex-Navy Officers in Qatar

• The verdict has been given in the Dahra Global Case, in which the sentences have been reduced.
• The naval personnel who worked for Dahra Global in their capacity were involved in supervising the introduction of Italian U212 stealth submarines into the Qatari Emiri Naval Force. 
• The families of the ex-Navy personnel also submitted a Mercy Plea to the Emir of Qatar, renowned for granting pardons during Ramadan and Eid.
• According to statements by MEA, the next steps will involve negotiating the prisoners’ repatriation to India.

India-Qatar Relations in Brief

• Defense: Both share strategic and defense cooperation.
• Naval exercise: Za’ir-Al-Bahr is a naval exercise between the Indian and Qatar Navy.
• Energy: India sources 40% of its LNG needs from Qatar. 
• Trade: India is Qatar’s third biggest source of imports, particularly raw materials for construction and fresh food items. 

• Migrants: Approximately 7 lakh Indian migrants are integral to Qatar’s institutions, industry and workforce. 

Pardoning Powers in India

• Pardon: The convict is completely absolved from all sentences, punishments and disqualifications.
• Respite: A lesser sentence is awarded instead of one originally awarded to the convict. 
• Reprieve: The execution of a sentence (especially that of death) is stayed for a temporary period. With this, the convict has time to seek pardon or commutation.
• Remit: The period of the sentence is reduced, but the character of the sentence remains the same. For example, a sentence of rigorous imprisonment for two years may be remitted to rigorous imprisonment for one year, but the imprisonment remains rigorous.
• Commute: One form of punishment is substituted for a lighter form. For example, a death sentence may be commuted to rigorous imprisonment, which may be commuted to simple imprisonment.

News Source: Indian Express

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Context: This article is based on the news “There is no substitute for an industrial policy” which was published in the Indian Express. The government has put the implementation of the new industrial policy (NIP 23) on hold which has been under development for more than two years. 

About New Industrial Policy 2023

• Third Economic Policy: The Union commerce ministry released the draft of Industrial Policy to replace the 1991 policy. 
  • This will be the third industrial policy, after the first in 1956 and next in 1991.
• Disruptions in Economic Activity: The new industrial policy has been fuelled primarily by the disruptions in economic activity due to the COVID-19 pandemic and the shocks driven by uncertainties and disruptions in supply chains. 
• Objectives of New Industrial Policy 2023: This resurgence of industrial policy to deal with exogenous shocks has two objectives: 
  • enhance the pace of economic activity at the national level
  • devise mechanisms to impart resilience to the industrial sector. 

About Make in India Initiative

It was launched by India in September 2014 aimed at creating a robust and competitive manufacturing industry. 

• The Make in India initiative built upon the dynamic goals of NMP 2011, aspires to “transform India into a global design and manufacturing export hub,” positioning MII for the global market.

Objectives of Make in India Initiative

• To increase the manufacturing sector’s growth rate to 12-14% per annum;
• To create 100 million additional manufacturing jobs in the economy by 2022;
• To ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2025.

Significance of Make in India Initiative

• Increased FDI: FDI inflows in India increased to $83.6 billions  in 2021-22 from  $ 45.15 billion in 2014-2015.
• Improvement in the ease of doing business in India: The government has implemented various reforms to simplify regulatory processes, reduce bureaucracy, and create a more favorable environment for businesses.
• India is ranked 63 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.
• Skilling Labour force: The government has launched programs like Skill India to enhance the employability of the workforce and promote entrepreneurship among the youth. 
• This has resulted in the creation of a skilled labor force, which is vital for the success of manufacturing industries.
• Smartphone Manufacturing in India: Local manufacturing of mobile phones grew at 23% compounded annual rate between 2014 and 2022.India has become the second-largest mobile phone manufacturing country after China, with cumulative shipments of locally produced handsets crossing two billion during 2014-2022.
• Growth in Toy Industry: Complimented by sincere efforts of domestic toy manufacturers, the import of toys in FY21-22 have reduced by 70% to USD 110 Mn.
• Growth in localism mindset among Indian consumers:  As per the report by KPMG on consumption habits of Indian consumers, around 60 percent of respondents across all age groups expressed their desire to replace foreign brands with indigenous brands. 

Challenges with Make in India Initiative

• Increased Protectionist policies: There are concerns regarding expansion of protectionist policies to other sectors with the increased tariffs as this will lead to emergence of shortages, black markets, and widespread rent-seeking.
  • India recently imposed an import ban on 928 military equipment for self-reliance in the manufacturing of defence items.
• Biasness towards Capital Intensive Industries: The industrial policy practice through the PLI scheme is biased towards capital-intensive industries. 
• • The scheme focuses on providing subsidies to selected large and medium-scale industries. 
  • Ex- automobiles, pharma, advanced battery cells, telecom equipment, etc. despite having comparative advantages in labour-intensive manufacturing activities.
• Focus on assembling rather than Manufacturing: Major focus industries under the Make in India scheme are restricted to the assembling of knocked-down kits despite many global companies having set up units in the country.
• Ex- Mobile, telecommunication and electronics equipment manufacturing, etc.

• Stagnant Manufacturing Sector: Despite the significant diversification of manufacturing observed in East Asian countries since the late 1970s, India’s manufacturing share has remained stagnant at approximately 15% of the GDP. 
  • Rather than adding 100 million manufacturing jobs, India reported a loss of 24 million jobs between 2016-17 and 2020-21, according to a recent analysis by Ashoka University’s Centre for Economic Data and Analysis.
•  Serious crisis of underemployment and disguised unemployment: 

Way Forward

• Export Competitiveness:  Since the domestic market has its limitations, the focus must also be on exports.
  • To improve export competitiveness, there should be an attempt to reduce production costs, improve quality and be more innovative.
  • It should identify segments within the high value manufacturing value chain where it possesses a comparative cost advantage and can contribute effectively. 
  • Achieving this necessitates aligning the industrial policy with an optimal industrial structure that aligns with the country’s inherent strengths, encompassing the relative abundance of labor, skills, and capital.
• Expanding PLI to Labour Intersive Sectors: The scope of the PLI scheme needs to be expanded to include labour intensive sectors such as leather, garment, light engineering goods, toys, and footwear. 
  • These sectors have maximum local value addition. Ex- textiles, food products, etc.
  • It is critical to scale up the domestic manufacturing in these sectors and generate employment and build industrial capabilities.
  • Although the PLI scheme is advantageous for high-end manufacturing, the traditional manufacturing sector remains the most viable choice to create jobs for the masses.
• Financial Incentives: India’s industrial strategy under Atma Nirbhar Bharat needs to ensure that financial incentives are extended to sectors or firms that foster strong domestic inter-sectoral linkages and facilitate industrial upgrading. 
  • These sectors  will generate a real economic surplus for the economy which will contribute to the effective utilisation of the factor of production as well as their advancement for upgrading industrial structures. 
  • This will ultimately deepen domestic manufacturing capabilities, thereby creating possible opportunities to plug in global production networks.
• Integrating ‘Make in India’ with ‘assemble for the world’ : In China, it worked in integrating its domestic manufacturing industries with assembling units for global ‘network product’ companies. 
• • By importing components and assembling them in China for the world, China created jobs at an unprecedented scale.
  • Similarly, by integrating “Assemble in India for the world” into Make in India, India can raise its export market share to about 3.5 per cent by 2025 and 6 per cent by 2030.
  • As per the economic Survey, this may create about 4 crore well-paid jobs by 2025 and about 8 crore by 2030. 

Must Read: Vision 2047: A Roadmap To A $30 Trillion Economy

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Context: This article is based on the news “Balancing acts” which was published in the Business Standard. Recently, United States President Joe Biden decided not to come as chief guest at the 2024 Republic Day parade.

Biden Won’t Be the Republic Day Chief Guest

• The United States President’s decision indicates a challenging phase in Indo-US ties. 
• Notably, Mr Biden did not offer a specific reason for not coming. Mr Biden’s refusal comes soon after Washington accused New Delhi of a plot to assassinate US-based Sikh separatist.
• As a result, India had to cancel the Quad Leaders’ summit, scheduled for January 27, 2024, since the other members, Australia and Japan, were unlikely to attend in the absence of the US.

Must Read: France President Emanuel Macron to be the Republic Day Chief Guest of 2024

Evolution of Indian Diplomacy

• Objective of Foreign Policy: A successful Indian foreign policy creates the external circumstances conducive to realizing India’s fundamental aims, viz. protecting its physical security and its decisional autonomy, enlarging its economic prosperity and its technological capabilities, and realizing its status claims on the global stage. 
• Non-Alignment Movement: India started its journey internationally by remaining strategically autonomous under the Non-Alignment Movement (NAM) umbrella. 
  • India, also a founding member state of the NAM, stayed true to its decision for more than two decades by not moving into any of the two primary security blocs (US, USSR) during the Cold War. 
• New Opportunities: From Non-Alignment in the 20th century, Indian Foreign Policy underwent tremendous changes with changing times in the global order. 
• New Approach: India slowly started to reach out to the West and its allies, with Indian Foreign Policy moving on to Strategic Realism and Economic Pragmatism. 
  • India now has strong relations with multiple poles of power while still exercising its strategic autonomy without much external influence from a certain or any blocs of power
• Attaining Objectives: It requires New Delhi to engage at three different levels abroad: 
• • Within the subcontinent and its immediate periphery. 
  • The intermediate level of the international system, populated by various middle powers.
  • The core of the system where the great powers reside.

Significance of Indian Diplomacy

• Diplomatic Balancing: India has been trying to ensure good relations with all major powers.
  • For example, US-Russia Balancing: The US considers India an important ally in the Indo-Pacific region to counter China’s growing assertiveness. And India balances its ties with Russia by engaging in a massive defence deal, like the purchase of the S-400 Russian missile defence system, notwithstanding the possibility of American sanctions through CAATSA.
  • In 2017, the US passed the CAATSA  to punish countries with deep ties to Russia, North Korea, and Iran with economic sanctions.
• Changing Indian Foreign Policy: India is shedding its past hesitation in foreign policy matters and is boldly crafting partnerships for a rules-based, democratic international order. 
  • For example, shaping global outcomes: In its 75th year after independence, India’s centrality in the wider Indo-Pacific is today well-established, and it wants to play a leading role in the international system so that it can shape global outcomes.
• Economic Balancing: The Indian government enters into multiple alliances and seeks partnerships that correspond to its interests. 
  • For example, India has vested interests in the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) and Russia’s Eastern Economic Forum. 
  • Buying Russian Oil: Notwithstanding pressure from the West, India saved roughly $2.7 billion by importing discounted Russian oil in the first nine months of this year,
• Political Balancing: At the political level, India has been trying to make it work with the Quad as well as BRICS, the Shanghai Cooperation Organization (SCO), and other partnerships in recent years. 
  • India is balancing the Western nation-backed G20 with the China-founded SCO grouping of regional nations. 
  • India’s differing behaviour towards Ukraine and Israel, both of which have been attacked in violation of international law, can be explained by this balancing politics. 
  • For example, the Indian government has assured Israel of its full solidarity following the Hamas terrorist attack, whereas India refused to condemn Russia for the invasion of Ukraine.
• Maintaining Strategic Autonomy: India is engaging in simultaneous military exercises with the United States and Russia, trying to balance its strategic interests. 
  • For example, the annual India-U.S. military exercise called Yudh Abhyas is held in Alaska. Meanwhile, the Indian Army was on another joint exercise, with a small contingent of Indian troops participating in a multinational exercise in Russia. 
• Championing Global South: India has emerged as a champion the interests of the Global South, visible throughout its G20 Presidency.
  • Before the Delhi Summit and at the start of its presidency, India convened the first-ever Voice of the Global South Summit with 125 countries participating. India made the Delhi Summit most inclusive by inviting the largest number of guest countries from the Global South. 

Challenges Faced by Indian Diplomacy

• China’s Rise: China is a direct military threat to India, particularly in light of the recent border disputes in Ladakh. China’s influence in both established international organizations like the United Nations and new institutions such as the Asian Infrastructure Investment Bank gives it opportunities to hamper Indian interests and goals in multilateral forums. 
  • China’s alignment with Pakistan and deepening relations with other South Asian countries and China’s growing economic and military power present a complex challenge.
• India and the Middle Powers: India’s outreach to Pacific Asia has faltered because its economic policies have prevented commercial integration with this region. 
  • For example, the Indian economic concerns leading to its exit from the Regional Comprehensive Economic Partnership prevented India from becoming relevant to mitigating the strategic threats posed by China in East and Southeast Asia. 
• Limitations to the Balancing Act: India finds different routes to avoid sanctions and meet its goals, but this may not work in the long term. Diplomatic highs might run out, and India in the upcoming years, may have to take a side, whether with Russia or the West.
• Lack of Reliable Partners: A nation that maintains cordial relations with all may lack reliable allies in times of uncertainty. 
  • India stands as the outsider within various international groupings, like the Quad, BRICS, and the SCO, as prominent member states exhibit stronger connections with each other than they do with India. 
• Regional Rivalries: Maintaining stable and cooperative relations in the region is challenging, as seen in India’s relationships with neighboring countries, including Nepal, Sri Lanka, and Bangladesh, due to various historical and political factors.

Way Forward to the Indian Diplomacy

• Shaping Global Politics: India’s role in the geopolitical world is significant, as evidenced by its SCO presidency and hosting of the Voice of the Global South. With its strategic location and growing economic power, India could play a significant role in shaping the future of global politics.
• Providing a Negotiating Platform: For the first time since the beginning of the Russia-Ukraine war. Russia, the Western nations, and the US were in conversation during the Raisina Dialogue and during the G20 meeting. 
  • India provided an exclusive platform for the nations, facilitating dialogue and demonstrating the country’s commitment to promoting peace and stability in the region and globally. 
• Global Governance Reforms: The UNSC’s inability to handle wars like China’s aggression on Taiwan, Azerbaijan and Armenia’s dispute, Ukraine-Russia conflict, Israel-Hamas conflict, etc. is a global concern. As part of numerous groupings advocating urgent UNSC reform, Africa and India can lead this reform effort.
• Tackling Chinese Problem: A closer alignment with the United States, along the same policy path India is already pursuing, represents the best way to meet the challenge of China’s rise. 
  • A nonalignment, hedging, or alignment strategy with China likely would not serve India’s interests because China’s power, geographical proximity, and policies already represent a clear danger to India’s security and global interests.
  • For this, the Quad grouping serves as its means for balancing China’s rise in a friendly, gentle, and non-hostile way.

Conclusion:

Indian diplomacy, marked by its dynamic evolution, adept balancing of global partnerships, and commitment to shaping a democratic international order.

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