Successful anti-satellite missile test puts India in elite club                                                                 

Electoral bonds will affect transparency, EC tells SC                                                                           

In 2018, Official Secrets Act invoked in five cases                                                                                 

‘66% employers looking for different skills than three years ago’                                                       

Poverty down from 55% to 28% in a decade till 2015-16, study shows                                             

‘Deposits ordinance does not cover gold schemes’                                                                            

India in pact to ease U.S. firms’ compliance                                                                                        

 

Successful anti-satellite missile test puts India in elite club

GS PAPER - 03 SCIENCE AND TECHNOLOGY - science & technology; indigenization of technology and developing new technology.

Context :

     ♦   Prime Minister announced that India has successfully completed Mission Shakti.

     ♦   Mission Shakti is an anti-Satellite(ASAT) missile test.

     ♦   With this test, dubbed as Mission Shakti, India is only the fourth country after the U.S., Russia and China to have the technology.

 

Anti-satellite (ASAT) weapons :

     ♦   ASAT  is the technological capability to hit and destroy satellites in space through missiles launched from the ground.

     ♦   The development of such systems has a long history — fuelled by the Cold War between the United States and the former Soviet Union

    ♦   In the Cold War/Space Race era, 1985 was the last time that the United States had used an anti-satellite system to destroy its P-781 satellite that had instruments aboard to study solar radiation.

          

Why was the test done now?

    ♦  The test was done to verify that India has the capability to safeguard our space assets. It is the Government of India’s responsibility to defend the country’s interests in outer space.

     ♦   Satellites are extremely critical infrastructure of any country these days. A large number of crucial applications are now satellite-based.

     ♦   These include navigation systems, communication networks, broadcasting, banking systems, stock markets, weather forecasting, disaster management, land and ocean mapping and monitoring tools, and military applications.

    ♦   Destroying a satellite would render these applications useless. It can cripple enemy infrastructure, and bring it down on knees, without causing any threat to human lives.

     ♦  The tests were done after India acquired the required degree of confidence to ensure its success, and reflects the intention of the government to enhance India’s national security.

     ♦   The test, however, can be carried out only on one’s own satellite. There are a large number of satellites currently in space, many of which have outlived their utility and orbiting aimlessly. One such satellite was chosen for the test.

India’s Anti missile Test :      

     ♦   As is mandatory for any missile test, India did issue a Notice to Airmen (NOTAM) to airline authorities across the world informing them about an impending missile test.

     ♦   This notice does not have to specify the kind of missile being tested, only the flight path and the region affected, so that airborne systems are able to avoid it.

What are India’s capabilities so far?

     ♦   While ‘Mission Shakti’ may have targeted an object in outer space, India has long developed the ability to intercept incoming missiles.

     ♦   In 2011, a modified Prithvi missile, mimicked the trajectory of a ballistic missile with a 600-km range. Radars at different locations swung into action, tracking the “enemy” missile, constructing its trajectory and passing on the information in real time to the Mission Control Centre (MCC) to launch the interceptor, an Advanced Air Defence (AAD) missile.

     ♦   It had a directional warhead to go close to the adversarial missile before exploding to inflict damage on it.

Low-Earth Orbit satellites :

     ♦   The Indian satellite that was shot down was a Low-Earth Orbit (LEO) satellite. These are satellites roughly at an altitude of 2,000 kilometres from the earth and that’s the region where majority of satellites are concentrated.

     ♦   A database from the Union of Concerned Scientists, a non-government organization based in the United States, says that there are at least 5 known Indian satellites in LEO: India PiSat, Resourcesat 2, Radar Imaging Satellites 1 and2 and SRMsat.

Didn’t Indian test add to the debris?

     ♦   Indian test was done in the lower atmosphere to ensure that there was no space debris. “Whatever debris that is generated will decay and fall back on to the earth within weeks,”

Significance of the mission :

     ♦   The use of ASAT is seen as crossing new frontier just like India’s 1998 nuclear tests. The technology is aimed at destroying, if necessary, satellites owned by enemy countries.

     ♦   The fact that this anti-satellite technology is indigenously developed adds to India’s credentials, given that for many decades India was kept away from acquiring key technologies, forcing the country to develop its own space and nuclear capabilities.

     ♦   The anti-satellite space technology shows India’s focus on security challenges, emanating beyond Pakistan.

     ♦   The acquisition of this technology is expected to have spin-offs that India can exploit for commercial use, both domestic and globally.

Implications :

     ♦   Mission Shakti will not have any effect on India’s status in the MTCR (Missile Technology Control Regime) or other such treaties.

     ♦   The acquisition of this A-SAT technology is also expected to have spinoffs that India can exploit for domestic and international commercial use.

     ♦   Mission Shakti’s success will help in strengthening India’s defence capabilities.

Is India entering into an arms race in outer space?

     ♦   India has no intention of entering into an arms race in outer space.

     ♦   India has always maintained that space must be used only for peaceful purposes.

     ♦   It is against the weaponisation of Outer Space and supports international efforts to reinforce the safety and security of space based assets.

     ♦   India believes that Outer space is the common heritage of humankind and it is the responsibility of all space-faring nations to preserve and promote the benefits flowing from advances made in space technology and its applications for all.

                                                                                                                                     Source :- The Indian express

Electoral bonds will affect transparency, EC tells SC

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Context :

♦The Election Commission of India (ECI) has told the Supreme Court that the electoral bonds, wreck transparency in political funding.

♦In its affidavit submitted to the Supreme Court, the EC pointed to the amendments made to key laws, with dangerous consequences.

 

More about the issue :

     ♦   Coupled with the removal of cap on foreign funding, electoral bonds invite foreign corporate powers to impact Indian politics, Election Commission said in an affidavit filed in the apex court.

     ♦   Besides detailing how donations received through electoral bonds would cause a “serious impact” on transparency in funding of political parties, The ECI ripped apart amendments made to various key statutes through the two consecutive Finance Acts of 2016 and 2017.

     ♦   It opined that these amendments would pump in black money for political funding through shell companies and allow unchecked foreign funding of political parties in India which could lead to Indian politics being influenced by foreign companies.

     ♦   The Election Commission of India has time and again voiced the importance of declaration of donations received by political parties and also about the manner in which those funds are expended by them for better transparency and accountability in the election process.

     ♦   It said the amendments made in 2017 virtually derailed ECI guidelines of August 29, 2014, requiring political parties to file reports on contributions received, their audited annual accounts and election expenditure statements.

Issues with Amendments :     

     ♦   By virtue of the amendment made to Section 29C of the Representation of Peoples Act 1951(RPA), political parties need not report to ECI the donations received through electoral bonds.

     ♦   The ECI has described this a "retrograde step as far as transparency of donations is concerned" and called for withdrawal of the amendment

    ♦  The ECI said that if contributions are not reported, it will not be possible to ascertain if political parties have taken donations from government companies and foreign sources, which is prohibited under Section 29B of RPA.

     ♦   The amendments made to Companies Act 2013 were also flagged by the ECI.

     ♦   The amendment to Section 182 of the Act took away the restriction that contribution can be made only to the extent of 7.5% of net average profit of three preceding financial years, enabling even newly incorporated companies to donate via electoral bonds.

    ♦   This opens up the possibility of shell companies being set up for the sole purpose of making donations to political parties, with no other business consequence of having disbursable profits"

    ♦   Also, the amendment to Section 182(3) abolished the provision that companies should declare their political contributions in their profit and loss accounts. Now, this requirement is diluted to only showing the total expenditure under the head. This would "compromise transparency" and could lead to the "increased use of black money for political funding through shell companies"

     ♦   ECI had urged the Ministry to ensure that only profitable companies with proven track record should be permitted to make political donations.

     ♦   The amendment to Foreign Contributions Regulation Act with permitted acceptance of donations from foreign companies with retrospective effect.

     ♦   This would allow unchecked foreign funding of political parties in India which could lead to Indian policies being influenced by foreign companies.     

Electoral Bond :      ♦   Electoral bonds were introduced by amendments made through the Finance Act 2017 to the Reserve Bank of India Act 1934, Representation of Peoples Act 1951, Income Tax Act 1961 and Companies Act.      ♦   On January 2, 2018, the Centre notified the scheme for electoral bonds, which are in the nature of bearer instruments like a Promissory Note capable of being purchased by an Indian citizen or a body incorporated in India.     ♦   The identity of the donor will be known only to the bank, which will be kept anonymous.      ♦   The bonds can be purchased only from the State Bank of India for any value, in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh or Rs 1 crore during notified days.      ♦   The name of the donor will not be there in the bond.      ♦   The bond will be valid for 15 days from the date of issue, within which it has to be encashed by the payee-political party.

                                                                                                                                                                                        Source :- The Hindu

 In 2018, Official Secrets Act invoked in five cases

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

     ♦   The Ministry of Home Affairs (MHA) has issued five prosecution sanction orders in 2018 under the Official Secrets Act (OSA),1923.

 

Official Secret Act :

     ♦   Official Secret Act has its roots in the British colonial era.

    ♦  The original version was The Indian Official Secrets Act (Act XIV), 1889. This was brought in with the main objective of muzzling the voice of a large number of newspapers that had come up in several languages, and were opposing the Raj’s policies, building political consciousness and facing police crackdowns and prison terms.

     ♦   It was amended and made more stringent in the form of The Indian Official Secrets Act, 1904, during Lord Curzon’s tenure as Viceroy of India.

     ♦   In 1923, a newer version was notified. The Indian Official Secrets Act (Act No XIX of 1923) was extended to all matters of secrecy and confidentiality in governance in the country.

 

What's come under its Purview ?

     ♦   It broadly deals with two aspects — spying or espionage, covered under Section 3, and disclosure of other secret information of the government, under Section 5.

     ♦   Secret information can be any official code, password, sketch, plan, model, article, note, document or information.

     ♦   Under Section 5, both the person communicating the information, and the person receiving the information, can be punished.

     ♦   The disclosure of any information that is likely to affect the

♦   sovereignty and integrity of India

♦   the security of the State or

♦   friendly relations with foreign States, is punishable by this act.

 

Has there been any effort to change provisions of OSA?

     ♦   In 2006,the Second Administrative Reforms Commission (ARC) recommended that OSA be repealed, and replaced with a chapter in the National Security Act containing provisions relating to official secrets.

      ♦    In 2015 also, government had set up a committee to look into provisions of the OSA in light of the Right to Information(RTI) Act. It recommended that OSA be made more transparent and in line with the RTI Act. Since its inception, the OSA has not been amended even once.

                                                                                                                                Source :- The Hindu

‘66% employers looking for different skills than three years ago’

GS PAPER - 02 GOVERNANCE - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Context :

     ♦   A new study released by the International Labour Organisation in collaboration with the International Organisation of Employers has revealed recruiting people with relevant skills is a major challenge for businesses in India.

Key Findings :          

     ♦   The report has revealed that 66% of Indian businesses look for quite different skills in new recruits than that they looked for 3 years back.

     ♦   The major reasons behind low employability of graduates is backdated education curriculum which do not match industrial needs.

     ♦   Further, automation has emerged as a new challenge which has threatened the informal sector.

     ♦   Globally, 60% of employers have opined that new graduates are not adequately prepared for current work.

     ♦   The report has further noted that by 2020 there might be a global shortage of 38-40 million highly skilled workers.

    ♦  However, there would be a potential surplus of 90-95 million low skilled workers. This imbalance is likely to adversely affect both developed and developing countries.

           

International Labour Organization (ILO) :      ♦   The International Labour Organization (ILO) is the United Nations agency for the world of work.      ♦  The only tripartite U.N. agency, since 1919 the ILO brings together governments, employers and workers of 187 member States , to set labour standards, develop policies and devise programmes promoting decent work for all women and men.      ♦   As the ILO celebrates its 100th anniversary in 2019 Functions : setting international labour standards, promoting rights at work and encouraging decent employment opportunities, enhancing of social protection for workers and strengthening of dialogue on work-related issues. Main Bodies :       ♦   the International labour Conference  sets the International labour standards and the broad policies of the ILO.        ♦    It meets annually in Geneva.      ♦ Often called an international parliament of labour, the Conference is also a forum for discussion of key social and labour questions.        ♦   the Governing body  is the executive council of the ILO. It meets three times a year in Geneva. It takes decisions on ILO policy and establishes the programme and the budget, which it then submits to the Conference for adoption. the International Labour Office  is the permanent secretariat of the International Labour Organization.      ♦   It is the focal point for International Labour Organization's overall activities, which it prepares under the scrutiny of the Governing Body and under the leadership of the Director-General .

                                                                                                                                                                                      Source :- The Hindu

Poverty down from 55% to 28% in a decade till 2015-16, study shows

GS PAPER - 02 GOVERNANCE - Issues relating to poverty and hunger.

Context :

     ♦   According to the Global multidimensional poverty index(MPI) 2018 Report,India has reduced its poverty rate drastically from 55% to 28% in 10 years.

Highlights :

     ♦   India has taken 271 million people out of poverty between 2005-06 and 2015-16.

     ♦   However,India still has 364 million poor in 2015-16,the largest for any country.

     ♦   The report says that in India,poverty reduction amongst the children, poorest states,Scheduled Tribes,and Muslims was fastest.Although Muslims and STs reduced poverty the most over the 10 years,these two groups still has the highest rates of poverty in 2015-16.

     ♦   Further,Bihar was the poorest state in 2015-16,with more than half its population in poverty.

     ♦   The four poorest states are Bihar,Jharkhand,Uttar Pradesh and Madhya Pradesh.

   ♦  In terms of multidimensional poverty reduction,Jharkhand had the greatest improvement,followed by Arunachal Pradesh,Bihar, Chhattisgarh and Nagaland.

         

Global MPI 2018 : prepared by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative. The report measures multidimensional poverty index (MPI) which can be broken down to show Who is poor:Poverty rate as a percentage of the population and How they are poor:Intensity as the average share of deprivations that poor people experience.The product of these two is MPI. The criterion for someone to be declared as deprived as per MPI are as follows: Education (year of schooling,child enrollment) Health (child mortality,nutrition) and Standard of living (electricity,drinking water, sanitation,flooring,cooking fuel,assets).A person is multidimensionally poor if she/he is deprived in one third or more (means 33% or more) of the weighted indicators (out of the ten indicators).

                                                                                                                                                                                 Source :- The Indian Express

‘Deposits ordinance does not cover gold schemes’

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Context :

      ♦   Tax experts have said that the Banning of Unregulated Deposit Schemes Ordinance, 2019 does not cover gold schemes.

      ♦   There has been a lack of clarity on whether deposits taken by jewellers from customers falls under the ambit of the ordinance.

     ♦   Several gold jewellers across India run monthly deposit schemes to improve liquidity for working capital and facilitate customers’ redemption for jewellery purchase on maturity.

Background :     

     ♦   In February 2019, the Union Cabinet had approved the promulgation of the Banning of Unregulated Deposit Schemes Ordinance, 2019.

     ♦   The ordinance is in regard to the Banning of Unregulated Deposit Schemes Bill, 2018.

     ♦   The Lok Sabha had passed the bill, however, the bill could not get approval from the Rajya Sabha.

     ♦   The ordinance seeks to tackle the problem of illicit deposit taking activities in India and protect the interests of depositors.

     ♦   It provides for complete prohibition on promoting, operating, issuing advertisements or accepting deposits in any Unregulated Deposit Scheme.

     ♦   It bans the unregulated deposit-taking activities by making the offence ex-ante i.e. based on assumption and prediction.

                                                                                                                                                    Source :- The Hindu

 India in pact to ease U.S. firms’ compliance

GS PAPER - 02 INTERNATIONAL RELATIONS - Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

Context :

     ♦   India and the United States have signed an Inter-Governmental Agreement for Exchange of Country-by-Country (CbC) Reports, which will reduce the compliance burden for Indian subsidiary companies of U.S. parent companies.

Country-by-Country (CbC) Reports :

     ♦   The Base Erosion and Profit Shifting (BEPS) Action Plan adopted by the Organisation for Economic Co-operation and Development (OECD) and G20 countries in 2013 recognised that the way forward to mitigate risk from base erosion and profit shifting was to enhance transparency.

     ♦   The Base Erosion and Profit Shifting (BEPS) Action 13 report (Transfer Pricing Documentation and Country-by-Country Reporting) provides a template for multinational enterprises (MNEs) to report annually and for each tax jurisdiction in which they do business the information set out therein. This report is called the Country-by-Country (CbC) Report.

     ♦  A Country-by-Country (CbC) Report contains aggregated country-by-country information relating to the global allocation of income, the taxes paid, and certain other indicators of a multi-national company.

     ♦ It also contains a list of all the constituent entities of the multi-national company operating in a particular jurisdiction and the nature of the main business activity of each constituent entity. This information enables an enhanced level of assessment of tax risk by both tax administrations.

Provision of CBC report :

     ♦   The Income Tax Act requires Indian subsidiaries of multinational companies to provide details of key financial statements from other jurisdictions where they operate.

      ♦   This provides the IT department with better operational view of such companies, primarily with regards to revenue and income tax paid.

      ♦   The provision was a part of the base erosion and profit shifting action plan, and later incorporated in IT Act also.

Significance :

     ♦   This Agreement for Exchange of CbC Reports, along with the Bilateral Competent Authority Arrangement, will enable the countries to automatically exchange CbC Reports filed by the parent entities of Multinational Enterprises (MNEs) in the respective jurisdictions with effect from January 1, 2016.

     ♦   It would also obviate the need for Indian subsidiary companies of US MNEs to do local filing of the CbC Reports, thereby reducing the compliance burden.

     ♦   India has already signed the Multilateral Competent Authority Agreement (MCAA) for Exchange of CbC Reports, which has enabled exchange of CbC Reports with 62 jurisdictions.

                                                                                                                                                    Source :- The Hindu

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