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Apr 02 2024

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India China GDP Comparison: Overview, and Current Status

April 2, 2024

Context

As India aims for its vision for a “developed India” by 2047, this article presents a comparison of economic growth story of India and China.

Relevance for Prelims: Vision India@2047, Economic Indicators, and Growth Rate Dynamics: Insights From India, China. 

Relevance for Mains: Relative economic growth of India and China. 

Overview of Indian GDP Growth Rate

  • Real GDP of  India: India’s real GDP grew at a much slower rate by 5.8% in the 1990s and 6.3% in the 2000s. 
  • Nominal GDP of India: At the end of 2010, India’s nominal GDP, at $1.7 trillion, was 5.2 times its 1990 level. Yet, its world ranking, in terms of economic size, had improved only marginally from No. 12 to No. 9.

India China GDP Comparision

India China GDP Comparison

  • Widening of Gap: In 1990, China’s economy was just over 1.2 times India’s and it became 3.6 times and 5.3 times India’s in 2010 and 2022 respectively.
  • Size of Chinese Economy: The 1990s and 2000s were China’s decades. The size of its economy in 2010, measured by nominal GDP, was already larger than that of the US in 1990.
  • Growth Rate of India during 1990-2022: India has witnessed such a transformation with an average annual real GDP growth of 6% during 1990-2022.
  • Growth Rate of China During Same period: China’s average of 8.9% over the same 33-year-period.
  • Increase in Per Capita GDP of China: The Chinese story has been accompanied by an increase in per capita GDP from $348 (less than India’s $369) to $12,720 (far more than India’s $2,411) during this period. 

Conclusion

At current per capita GDP levels, India currently falls within the category of “lower-middle income” countries ($1,136 to $4,465) and China is classified as an “upper-middle income” country ($4,466 to $13,845). To reach the status of a developed country ($13,846 or higher), is a goal worth striving for.

Also Read: Declining China GDP: How Can It Benefit India?

 

Prelims PYQ (2015):

A decrease in tax to GDP ratio of a country indicates which of the following? 

1. Slowing economic growth rate 

2. Less equitable distribution of national income Select the correct answer using the codes given below. 

(a) 1 only 

(b) 2 only 

(c) Both 1and 2 

(d) Neither 1 nor 2 

Ans: (d)

 

Mains Question: Despite India being one of the countries of Gondwanaland, its mining industry contributes much less to its Gross Domestic Products [GDP] in percentage. Discuss. [150 Words, 10 Marks]

 

Must Read
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100 Years of Vaikom Satyagraha

April 2, 2024

Context

Vaikom Satyagraha has completed 100 years on March 30, 1924.

Relevance for Prelims: Vaikom Satyagraha, Socio-Religious Reform Movement, and Non Cooperation Movement 1920.

Relevance for Mains: Caste system and social Hierarchy present during colonial times

Background of Vaikom Satyagraha

  • Temple Entry Ban: According to the prevalent caste system in Kerala and the rest of India, low-caste Hindus were not allowed to enter into the temples.
    • In Kerala, they were not allowed even to walk on the roads that led to the temples also.
  • Discrimination: In the Kakinada meet of the Congress Party in 1923, T K Madhavan presented a report citing the discrimination that the depressed castes’ people were facing in Kerala.
    • It was after this session that movements against untouchability need to be promoted.
  • Formation of Committee: In Kerala, a committee was formed comprising people of different castes to fight untouchability
    • The committee was chaired by K Kelappan, composed of T K Madhavan, Velayudha Menon, K Neelakantan Namboothiri and T R Krishnaswami Iyer.
  • Launch of Temple Entry Movement: In February 1924, launched a ‘Keralaparvatanam’ in order to get temple entry and also the right to use public roads for every Hindu irrespective of caste or creed.

About Vaikom Satyagraha

  • Overview: Vaikom Satyagraha (1924-25) was a satyagraha in Travancore, India (now part of Kerala) against untouchability in Hindu society.
  • Centre of the Vaikom Movement: The movement was centered at the Shiva temple at Vaikom, near (present district) Kottayam.
  • Aim of the Movement: The Vaikom Satyagraha aimed at securing freedom to all sections of society through the public roads leading to the Sri Mahadeva Temple at Vaikom.

Mahatma Gandhi’s Association with Vaikom Satyagraha

  • Non-Participation: While he was consulted at every stage of the Satyagraha, Gandhi neither led it nor participated in it.
  • Visit of Gandhi: He visited Vaikom only once during the 20-month-long struggle from 1924 to 1925.
    • Gandhi’s 10-day visit was, however, a turning point, and led it to its ultimate triumph.

  • Three Proposals of Gandhi

    • First Proposal: The first was to hold a referendum among all adults in either Vaikom or in Travancore.
    • Second Proposal: The second was mediation, if this proposal was accepted, Gandhi would nominate Madan Mohan Malaviya to represent the satyagrahis.
    • Third Proposal: The orthodox should produce a scriptural text that authorised the practice. Gandhi left it to the orthodox to choose. 

  • Aftermath

    • Acceptance of Third Proposal: The orthodox accepted the third proposal and produced a text called Sankara Smriti in their defence.
    • Authenticity of Text: Gandhi doubted the authenticity of the text but promised to get back after consulting experts in the matter. Vallathol Narayana Menon confirmed that it was not reliable.
    • Meeting with Maharani Regent: Gandhi next met the Maharani Regent as she expressed her position in favour of opening all public roads. 

Conclusion

In November 1936, the Maharaja of Travancore signed the Temple Entry Proclamation which removed the age-old ban on the entry of marginalized castes into the temples of the state, was the great success of the Vaikom satyagraha.

Also Read: New Social Movements In Agrarian And Worker Struggles

 

Prelims PYQ (2016):

The ‘Swadeshi’ and ‘Boycott’ were adopted as methods of struggle for the first time during the 

(a) Agitation against the Partition of Bengal 

(b) Home Rule Movement 

(c) Non-Cooperation Movement 

(d) Visit of the Simon Commission to India

Ans: (a)

 

Mains Question: Discuss the pivotal roles of the Vaikom Satyagraha of 1924 and the Self Respect Movement in shaping modern Indian history. (10 M, 150 Words)

 

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Rise of Fake Job Scams: China’s Organized Crime Nexus

April 2, 2024

Context

Recently, about 5,000 Indians are trapped in Cambodia with 250 people having been rescued, and the foreign ministry is working with Interpol to rescue the remaining individuals.

Relevance for Prelims: Growing Cyber Crimes, China’s Belt And Road Initiative, and NCRB Data On Cyber Crime In India. 

Relevance for Mains: Issues Related to Organised Crimes, and Cyber frauds.

China’s Nexus in Fake Job Scams

China’s Role in the Rise of Online Organized Crime

  • Role of Gambling Mafias in China: Powerful casino and gambling mafias in China led to a ban on casinos.
  • Relocation of Mafias to South-East Asia: Mafias moved to Southeast Asian countries to run casino and gambling centres.
  • Shifting of Mafias to Online Fraud: When these countries cracked down on casinos and COVID-19 halted casino activities, the mafias shifted to online fraud.
  • Organized Crime Syndicate: Chinese mafias are the key players in this organized crime syndicate. Compounds and buildings used for fraud are built or related to BRI proiects.

China’s Influence in Southeast Asia

  • Influence of China: China has established significant influence in countries like Cambodia, Myanmar, and Thailand through BRI.
  • Nexus of Corruption: Chinese mafias have formed a nexus of corruption with governments and officials in these countries, providing them with protection.
  • Sharing of Illegal Profits: In return, these countries receive a share of the profits from the billion-dollar fraud industry.
  • Loss Incurred: The US alone suffered a loss of $2.6 billion due to these frauds in 2022.

The Corporate Culture of the Racket

  • Culture of Rackets: The racket operates like a corporate culture, with compounds instead of companies.
  • Definition of Compounds: Compounds have small dormitories where hundreds of thousands of people are trapped through human trafficking and forced to commit fraud.
  • Report of United Nations: UN reports suggest that 200,000-300,000 people may be trapped in these compounds.
  • Punishments: Victims are given fraud targets, and failure to meet targets results in torture, sale to other compounds, or even death.

Common Fraud Techniques

  • Pig Butchering Scam

    • Fraudsters create fake social media profiles and build emotional relationships with victims.
    • After gaining trust, they convince victims to invest in fraudulent platforms or ask for money citing personal emergencies, then disappear.

  • Parcel Scam (Commonly Used in India)

    • Victims receive calls claiming that a parcel containing illegal items has arrived in their name.
    • Fearing arrest, victims pay money to save themselves, falling prey to fraud.

India’s Efforts to Resolve the Fake Job Scams Issue

  • Operation Storm: India has conducted Operation Storm with Interpol to rescue trapped Indians.
  • Establishment of Anti-Trafficking Cell: The Home Ministry has established an anti-trafficking cell to prevent trafficking at the district level.
  • Ratification of Treaty: India has ratified the United Nations Convention on Transnational Organized Crime (UNCTOC) and its Protocol on Prevention, Suppression and Punishment of Trafficking in Persons, particularly Women and Children. 

Way Forward

While governments of other countries often remain helpless against these mafias, India should focus on creating a basic awareness campaign to protect people from fake job scams.

Also Read: FICCI’s Insights: Tackling Illicit Trade

 

Mains Question: Enumerate different types of cyber-crimes affecting individuals and organisations. What preventive measures should be taken? (10 Marks, 150 Words)

 

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PMLA: A Law that Has Lost Its Way

April 2, 2024

Context

The Prevention of Money Laundering Act (PMLA), 2002, is being scrutinized because it expanded beyond its primary focus on combating drug money laundering.

Relevance for Prelims: Money Laundering, Enforcement Directorate (ED), Central Vigilance Commission (CVC), and The Authority Of ED And Usage Of PMLA. 

Relevance for Mains: Issues in PMLA legislation, Money Laundering and Impact

PMLA: Background and Original Objective

  • Objective of PMLA: To curb the laundering of black money and to save the economy from being destabilised.
  • Global Concerns: The implementation of the PMLA was motivated by international efforts to combat money laundering, particularly revenues from drug trafficking.
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988: All countries were urged to take urgent steps to prevent the laundering of the proceeds of drug crimes and other connected activities. 
  • Formation of FATF: Seven major industrial nations held a summit in Paris (July 1989) and established the Financial Action Task Force (FATF) to examine the problem of money laundering and recommend measures to tackle this menace.
  • UNGA Resolution: The United Nations General Assembly (UNGA) adopted a resolution, namely, the Political Declaration and Global Programme of Action which called upon all member-countries to enact suitable legislation to effectively prevent the laundering of drug money.
  • Parliamentary Enactment: The PMLA was passed by India’s Parliament under Article 253 to implement international treaties and decisions, with a focus on fighting drug money laundering.
Aspect PMLA Cases Normal Criminal Cases
Reverse Burden of Proof In certain circumstances, the accused has to prove that alleged proceeds of crime were legally earned. The burden of proof is always on the prosecution to prove the guilt of the accused.
Bail Bail is an exception, jail is the rule under Section 45 of PMLA. Accused has to prove prima facie innocence to get bail, which is a tough condition. Bail is the rule, jail is an exception. If prosecution fails to establish a prima facie case, bail can be granted.
Burden of Proof for Bail Accused has to prove prima facie innocence to get bail, contrary to general principles where the burden of proof is on the prosecution. Prosecution has to establish a prima facie case against the accused for denial of bail.
Property Attachment Authorities can attach suspected proceeds of crime without trial or conviction under strict provisions. Attachment of property usually happens after conviction or with more due process.
Recording of Statements Statements recorded before the investigating officer can be used as evidence in court, which is not allowed in normal criminal trials. Statements recorded by police are not admissible as evidence unless certain conditions are met.

Concerns Associated with PMLA

  • Inclusion of Diverse Offenses: Over time, the PMLA schedule grew to encompass a variety of offences unrelated to its initial aim, such as those specified in the IPC or other special laws, diverging from its concentration on drug money laundering.
  • Uniform Application: The PMLA’s harsh provisions, originally designed for drug traffickers, are now applied equally to all scheduled offenses, including non-drug-related crimes such as corruption under the Prevention of Corruption Act of 1988.

The Bail Provisions under PMLA

  • Presumption of Guilt: The PMLA’s bail provision (Section 45) reverses the presumption of innocence, requiring the accused to prove innocence in order to be granted bail, resulting in lengthy incarceration without trial and generating concerns about individual rights.
  • Unconstitutional Bail Provision: It was held unconstitutional by a two-judge Bench of the Supreme Court of India in Nikesh Tarachand Shah vs Union of India (2018) as violating Article 14 and Article 21.
  • Vijay Madanlal Choudhary vs Union of India (2022) Case: Parliament restored this provision with certain amendments which was upheld by a three-judge Bench headed by Justice A.M. Khanwilkar in Vijay Madanlal Choudhary vs Union of India (2022). 

Conclusion

Denying bail takes away personal freedom, a fundamental right under Article 21 of our constitution. The power to deny bail is a significant responsibility for the courts, to be exercised with serious consideration for its impact on both the individual and society.

Also Read: Pan India Mechanism For Directorate Of Enforcement (ED)

 

Prelims PYQ (2021):

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India? 

(a) Diversion of resources to the purchase of real estate and investment in luxury housing 

(b) Investment in unproductive activities and purchase of previous stones, jewellery, gold, etc. 

(c) Large donations to political parties and growth of regionalism 

(d) Loss of revenue to the State Exchequer due to tax evasion 

Ans: (d)

 

Mains Question: Critically examine how the Prevention of Money Laundering Act (PMLA) stands in combating money laundering, considering the challenges in its implementation, effectiveness in prosecution, and safeguards against misuse. (15 M, 250 Words)

 

Must Read
NCERT Notes For UPSC UPSC Daily Current Affairs
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Daily Current Affairs Quiz Daily Main Answer Writing
UPSC Mains Previous Year Papers UPSC Test Series 2024

 

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