This refers to an investment model in which the private sector invests in various ventures. Such investment can come from domestic or international markets in the form of Foreign Portfolio Investment (FPI) or Foreign Direct Investment (FDI).

Role of Private Investment in Economy

• Supplements Government Resources: Private investment complements government resources in creating value, especially when tax revenue falls short of meeting economic demands(for e.g. in road infrastructure).
• Improves Efficiency: It enhances efficiency through increased competition, economies of scale, and greater flexibility.(e.g. Mobile company)
• Fosters Innovation: Private investment emphasises research and development and consumer behaviour mapping, fostering greater innovation(e.g. Companies like TATA, Tesla fosters innovation etc).
• Access to Foreign Technology: Foreign Direct Investments (FDIs) introduce foreign technology, enhancing competitiveness.
• Changes Global Perception: Increased private investment signals economic progress, altering global perception.
• Encourages Entrepreneurial Risks: It embraces entrepreneurial risk-taking, promoting job creation, wealth generation, and income growth.

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Shortcomings of private investment

• Favors Advanced States: Private sector investment tends to favour regions with existing infrastructure, disadvantaged poorer states like Bihar and Jharkhand.
• Global Fluctuations: Private investment, particularly through Foreign Portfolio Investments (FPIs), is susceptible to global economic fluctuations.
• Poor Public Perception: Driven by profit motives, private investment often faces allegations of crony capitalism and has a negative public perception.
• Low Investment During Recession: Private investment tends to decrease during economic downturns, despite being crucial during such times.
• Inequality: Profits from the private sector often concentrate in the hands of a few, leading to increased inequality among different sections of society, as observed in India following the 1991 reforms and after pandemic lockdown.

Conclusion

While private investment plays a vital role in driving economic growth and fostering innovation, it also presents challenges that need to be addressed to ensure inclusive and sustainable development.

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A recent Supreme Court ruling has redefined watching and downloading child pornography as a serious crime, emphasising the protection of children.

Recent Developments

• The Supreme Court’s landmark judgment, following a petition by the Just Rights for Children Alliance, marks a significant shift in addressing online sexual abuse. 
• This decision contrasts sharply with a January 2024 ruling by the Madras High Court, which stated that merely downloading or viewing child pornography was not a crime. 
• Such a stance risks normalising child exploitation and undermines the intent of the Protection of Children from Sexual Offences (POCSO) Act, 2012.  

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About the Supreme Court Judgment

• Expanded Definition of Crime: The Court declared that downloading and storing child sexual exploitation and abuse material (CSEAM) is an offence. 
  • This broadens the scope of criminality beyond just viewing to include those who engage in any form of distribution.
• Demand-Supply Chain: The judgment highlights that individuals who search for or download such material contribute to a demand-supply chain that fuels the rape and exploitation of children.
• Framework for Combating CSEAM: The Court mandated the establishment of a comprehensive framework to combat CSEAM, placing strict responsibilities on social media intermediaries to ensure compliance with Indian law.
• Reframing the Issue: By shifting the terminology from “child porn” to CSEAM, the ruling redefines the issue as a serious crime rather than an adult indulgence, challenging the normalisation of such behaviour.
• Continuing Victimisation: The Court emphasised the ongoing nature of this crime, noting that the persistent online presence of these images subjects children and their families to continuous re-victimization. 
  • Alarmingly, many victims remain unaware that their images are being circulated in secrecy.

Measures Required

While the Supreme Court’s ruling is a significant victory, several critical measures must be implemented to ensure the safety and rehabilitation of children:

• Comprehensive Support Framework: The government should establish a globally coordinated preventive and protective framework that addresses child victims’ needs alongside targeting offenders. 
  • Current strategies predominantly focus on punishing offenders without providing adequate support to the child victims.
• Define Cybercrime Clearly: Indian laws must explicitly define cybercrime, incorporating CSEAM as a form of organised and economic crime.
• Outlaw Emerging Crimes: New forms of exploitation, such as enticement through electronic means and trafficking for forced labour or sexual exploitation, need to be explicitly criminalised.
• Address AI-Generated CSEAM: Legal amendments are essential to treat the creation of AI-generated CSEAM, including deepfakes, as equivalent to actual child abuse, recognizing the blurred lines between real and synthetic images.
• Accountability for Social Media Platforms: Social media platforms should be mandated to report CSEAM in real-time to law enforcement authorities, as stipulated in the Supreme Court judgement.
• Establish a Forensic Lab: India should set up a specialised forensic lab equipped with advanced technology to respond promptly to reports of CSEAM. 
• National Database for Offenders: Individuals prosecuted for downloading or searching CSEAM should be recorded in the National Database on Sexual Offenders, preventing them from working in child-related sectors.
• Global Cooperation: A legally binding international convention is necessary to combat this multibillion-dollar industry effectively.
  • By fostering collaboration among law enforcement, governments, and stakeholders, targeted interventions can be made to dismantle exploitation networks and protect vulnerable children.

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Conclusion

In light of the Supreme Court’s landmark ruling, comprehensive measures are essential to protect children from exploitation. Strengthening legal frameworks, enhancing support systems, and fostering global cooperation will be crucial in combating child sexual exploitation effectively.

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The Union Ministry of Labour and Employment is drafting a national law to include gig workers in social security schemes, providing benefits like health insurance and retirement savings. 

Proposed Legislation Provisions

• Revenue Contribution: Aggregators (For example Zomato, Swiggy) will be required to contribute 1%-2% of their revenue to a social security fund for gig workers, providing health insurance and other benefits.
• Welfare Board Model: The legislation will establish a welfare board to oversee the social security fund for gig workers.
• Worker Registration: All gig workers must be registered on the e-Shram platform by platform companies.
• Termination Notice: Aggregators must provide a 14-day notice with valid reasons before terminating a gig worker.
• Transparency: The law will ensure transparency in automated systems, detailing the criteria for work allocation.
• Dispute Resolution: Mechanisms will be introduced to protect gig workers’ rights.
• Inclusive Definitions: The government will revise the definitions of gig and migrant workers to better reflect current employment realities.

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Current Provisions and Lacunae

The only existing legislative framework that addresses gig workers in India is the Social Security Code 2020. Some provisions and gaps include:

• Gig Workers Under Social Security Code: The Social Security Code 2020 mentions gig and platform workers, but places them outside the traditional employer-employee relationship, treating them as informal workers.
  • The gig workers are allowed to register on the e-Shram portal for accessing basic social security schemes such as life and accidental insurance.
• Lack of Institutional Social Security:
  • Formal sector employees: They are entitled to institutional social security benefits such as paid maternity leave and job security.
  • Gig workers: They are only entitled to limited social security schemes, like cash benefits ranging from ₹5,000-₹10,000 for maternity, rather than the 26 weeks of paid leave offered to formal employees.
• Absence of Occupational Safety and Minimum Wage: These regulations do not apply to gig workers, leaving them exposed to significant vulnerabilities.
• No Industrial Relations Mechanism: The Industrial Relations Code 2020, which includes dispute resolution mechanisms for formal employees, does not cover gig workers.
• Ambiguous Employment Relations: Aggregator companies classify gig workers as independent contractors or freelancers, circumventing the traditional employer-employee framework. 
  • This “camouflaging” tactic leaves gig workers outside the purview of existing labour laws.

What Needs to Be Done?

• Clarification of Employment Relations: The Ministry should clearly define gig workers’ employment status, ensuring they are recognized as employees. 
  • This would require aggregators to abide by labour laws applicable to formal employees, including minimum wage, job security, and dispute resolution mechanisms.
• Inclusion Under Existing Labour Codes: Once the employment relationship is clarified, gig workers should be integrated into the four existing labour codes—Wages, Social Security, Industrial Relations, and Occupational Safety and Health—eliminating the need for a separate legislative framework. 
• Learning from Global Precedents: India can take inspiration from international rulings, such as the U.K. Supreme Court’s 2021 decision on Uber, which classified Uber drivers as workers and required the company to comply with labour laws..
• Ensuring Effective Welfare Board Implementation: While the welfare board model is part of the proposed legislation, past experiences, such as with construction workers, have shown limited success. 
  • The government must ensure better governance and accountability in these welfare boards, including efficient fund allocation and access to benefits.
• Eliminating Separate Laws: The overarching goal of the labour codes was to simplify and rationalise India’s labour laws. 
  • Introducing separate legislation for specific workforce segments, such as gig workers, may complicate the legal landscape. It is more efficient to include gig workers within the existing codes to streamline protections.

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Conclusion

A robust social safety net for gig workers is vital. Clearly defining employment relationships and integrating them into existing labour frameworks will enhance their rights and protections, promoting a more equitable society.

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External Affairs Minister S Jaishankar will visit Islamabad for the Shanghai Cooperation Organisation (SCO) Heads of Government meeting on October 15-16. This will be the first trip by an Indian foreign minister to Pakistan since Sushma Swaraj’s visit in December 2015.

Timeline of the SCO

• 1996: Formation of the Shanghai Five group, comprising China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan.
• 2001: The SCO is officially established on June 15 by the members of the Shanghai Five, adding Uzbekistan to the group.
• 2017: India and Pakistan become full members of the SCO.
• 2023: Iran joins the SCO as a full member.
• 2024: Belarus becomes a full member of the SCO.

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Importance of SCO for India

• Security Concerns:
  • These countries border Afghanistan, where the Taliban is active. 
  • Terrorism has always been a major focus for the SCO, as it affects multiple member states. 
    • For example, Russia experienced a major terror attack in March, and following the U.S. withdrawal from Afghanistan, Central Asian nations fear militant groups could spread into their territories. 
  • India is part of the SCO’s Regional Anti-Terrorist Structure (RATS), which plays a key role in addressing these security threats.
• Energy Resources:
  • India imports 85% of its energy needs. Turkmenistan has the fourth-largest natural gas reserves, and Kazakhstan is the biggest producer of uranium ore. 
• Military Collaboration:
  • India conducts military exercises with Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan, strengthening defence ties.
• Connectivity and Trade:
  • The SCO can facilitate better connectivity and enhance trade and investment opportunities for India in Central Asia.
• Countering Chinese Influence:
  • The Central Asian region is strategically important for India. By participating in the SCO, India can counter China’s growing presence and influence in the area.
• Balancing Interests:
  • India aims to balance its involvement in Western alliances like the Quad, which sees China as a competitor, with its participation in the SCO, which is often viewed as anti-Western.
• Sharing Digital Infrastructure:
  • India is eager to share its experience in digitalizing the economy as a global good, which it will promote at the SCO.
• Cultural ties with Central Asia
  • Countries like Kazakhstan, Uzbekistan, Tajikistan, and Kyrgyzstan are crucial for India due to strong historical and cultural ties, dating back to Emperor Ashoka and Buddhism. 

Speculations About the SEO Meeting

• Conflict Discussions: It’s expected that the Russia-Ukraine war and the Israel-Hamas conflict may be discussed, given that both Russia and Iran are SCO members.
• India’s Initiatives: India, having chaired the SCO last year, will likely advocate for continuing initiatives it introduced, such as promoting traditional medicine, millets, startups, and Buddhist heritage.
  • India is also expected to push for discussions on digital public infrastructure, which was a key theme at the G20 summit.

PM’s Approach to the SCO: “SECURE”

• S: Security
• E: Economic Development
• C: Connectivity
• U: Unity
• R: Respect for Territorial Integrity and Sovereignty
• E: Environmental Protection

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Impact of SCO on Bilateral Ties

• India-Pakistan: India holds that talks and terrorism cannot coexist, and the SCO is unlikely to shift this stance.
• India-China: The SCO has facilitated dialogue, such as the 2017 “Astana Consensus” during the Doklam standoff, and meetings after the 2020 Galwan clash, showing its role in easing tensions.

Conclusion

India’s multialignment policy, balancing roles in both the Quad and SCO, is crucial for fostering regional peace. By engaging in the SCO, India can safeguard its strategic interests while acting as a facilitator in resolving disputes and promoting cooperation.

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