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GD-WAT Bible
TABLE OF CONTENTS
2 Impact of AI on jobs 11
6 Brexit 23
17 WAT-Topics 67
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On March 8, 2018, President Trump announced a 25 percent tariff on steel imports and a
10 percent tariff on aluminum. Trump said, “Trade wars are good and easy to win.” But
the markets disagreed. Global stock markets tumbled in fear of a trade war between the
world’s three largest economies (US,China, & EU)
The U.S. Congress is the only body authorized to impose tariffs. But Trump used a special
power granted by Congress in 1962. It allows a president to curb imports that threaten
national security. The Commerce Department reported that dependence on imported
metals threatens the U.S. ability to make weapons.
Eight countries filed formal complaints with the World Trade Organization. Five of them -
Canada, India, and Mexico, the European Union, Norway, and Switzerland - point out
they are allies. Trump can’t use national security as a defense against them. The other two
complainants are China and Russia.
Causes of U.S. Trade War with China
Mr Trump made a big point on the campaign trail about cutting the country’s trade
deficits.He’s convinced it hurts US manufacturing, and has said time and time again that
the US must do more to tackle them. A trade deficit occurs when exports are less than
imports.And the US has a massive trade deficit with China.Last year, it stood at about
$375bn. Mr Trump’s not happy about that
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In 2017, the United States exported $130 billion to China. The three largest export
categories are aircraft at $16 billion; soybeans, $12 billion; and automobiles, $11 billion.
U.S. imports from China were $506 billion. Most of it is electronics, clothing, and
machinery.
( a lot of the imports are from U.S. manufacturers that send raw materials to China for
low-cost assembly. Once shipped back to the United States, they are considered imports. As
a result, tariffs hurt U.S. corporations as well as foreign ones.)
Things USA wants from China
On May 4, 2018, the Trump administration presented China with five demands. It asked
China to:
End subsidies to tech companies.
Stop stealing U.S. intellectual property.
Cut tariffs on U.S. goods by 2020.
Open China to more U.S. investment.
Reduce the trade deficit by $200 billion by 2020.
China is unlikely to comply with the first two demands. They are at odds with China’s goal
of becoming a tech leader. On the other hand, China does want to reduce its trade deficit.
China’s economic reform plan is to become less reliant on exports. But it cautions there isn’t
much it can do, since the deficit is fueled by high U.S. demand for low-cost Chinese goods.
On May 10, China agreed to import more U.S. products ( which will reduce the trade
deficit)
The Hidden Agenda ?
Trump is trying to deal with two serious concerns facing the American economy: Counter
the threats to the dollar’s status as the reserve currency, and retain the near monopoly in
Digital and Hi-Tech space. These issues, central to the US power and eminence, are now
under serious challenge
It’s about the Reserve Currency: The dollar has become the reserve currency because over
70 per cent of world trade happens in dollars. This may look strange as the US share in
world trade is less than 15 per cent. The US manages this by ensuring that large trade
contracts for commodities like crude oil are always denominated in dollars.
The dollar’s position as the reserve currency is under strain . Many countries including
China are taking steps to denominate their trade contracts in local currency and reduce
dependence on the dollar. China plans to denominate all Belt and Road Initiative (BRI)
contracts in local currencies. No wonder China is the primary target in the trade war.
Threat to hi-tech
Trump’s second concern is to retain the US lead in digital and high tech space. It is under
threat from China which is going all-out to become a leader in Artificial Intelligence and
high technology by 2025. Loss of US monopoly in digital space is a worry too.
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Many of China’s home-grown firms are large unicorns ready for global operations in direct
competition to the US firms. Worse, the China model of not allowing entry to Google and
Facebook is being copied by Russia, Brazil, and many others. The EU is also thinking of
creating an EU wide internet. All this would mean an end of the dominance of the US firms
in digital space.
The US tariffs on imports from China will impact not only its exports to the US but to all
countries. Most of China’s exports are produced in the tariff-free global supply chains
(GVC) where collaborative manufacturing happens among a group of countries. Tariffs by
partner countries will delay numerous Customs clearances and significantly reduce the
effectiveness of GVCs. The US would love to think that this will rock the Chinese boat and
force them to a compromise.
A tit-for tat of tariff announcements
Round 1(March 2018)The Trump administration it would levy tariffs on $60 billion of
imports from China. The administration also said it would limit U.S. technology transfers to
Chinese companies. China responded by announcing tariffs on $3 billion on US products
Round 2 (April 2018) :the Trump administration announced it might impose tariffs on $50
billion in Chinese imported electronics, aerospace, and machinery.
China retaliated hours later. It announced 25 percent tariffs on $50 billion of U.S. exports to
China. These also won’t go into effect immediately. China’s tariffs strategically targeted 106
products. China also penalized two other U.S. exports: sorghum and Boeing airplanes. It
targeted industries located in states that supported Trump in the 2016 election.
Round 3 : (April 2018) :Trump said he might impose tariffs on $100 billion more of Chinese
imports. It would cover just one-third of U.S. imports from China. If China retaliates, that
would impose tariffs on all U.S. exports to China.
As things stand in DEC 2018,
While the US-China war dominates the headlines (due to the sheer trade volume and given
the political tensions playing out), US has been embroiled in a trade war with many
countries
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The prices on almost all of these items would quickly skyrocket beyond the reach of the
lower economic brackets—not because of manufacturing costs, but because of the tariffs.
Foreign tariffs on U.S. exports will make them more expensive. U.S. exporters may have to
cut costs and lay off workers to remain competitively priced. If they fail, they may cuts
costs further or even go out of business. The 12 million U.S. workers who owe their jobs to
exports could get laid off.
Implications for China
The trade war with the U.S. could cut China’s export growth by almost half next year,
putting around 4.4 million jobs at risk.Economists expect the trade war will cut China’s
export growth by almost half to 5.1 percent in 2019 ,denting GDP growth by 1.04
percentage points.
Implications for India
India has spotted an opportunity to boost its exports in sectors such as chemicals,
pharmaceuticals and electrical parts, where India could have a comparative advantage.
Global Implications
Mr Trump’s decision to take on China could lead to adverse effects for consumers in the US
and in China, but also worldwide.
An economic showdown between the world’s biggest economies doesn’t look good for
anyone.
Consultant Oxford Economics predicted the trade war could cost the global economy $800
billion in reduced trade.
That could slow growth by 0.4 percent. It’s occurring at the same time that oil prices and
interest rates are rising.
The Settlement or Temporary Truce
In December 2018, it was announced that the US tariffs on Chinese goods will remain
unchanged for 90 days, but warns: “If at the end of this period of time, the parties are
unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent.”
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The US says China agreed to “purchase a not yet agreed upon, but very substantial,
amount of agricultural, energy, industrial, and other products from the United States to
reduce the trade imbalance between our two countries”.
China has pretty much given up nothing in this deal because the future tariffs threatened
from the Beijing side were retaliatory in nature and only to be applied if the United State
escalated.
This is not a suspension of the trade war but a suspension of the escalation of the trade
war.
Conclusion
While many believe that the US is winning the trade war (given how it has got other
countries to open their markets/ revisit tariffs on US goods), economists warn that it is too
early to predict the long-term impact. While a few individual countries may gain, the global
economy is most likely to be hit hard.
Here’s a statement by legendary economist Gary Shilling “When you’ve got plenty of supply
in the world,plenty of industrial capability, plenty of raw materials a - it’s the buyer that
has the upper hand not the seller. The buyer has the ultimate power and who’s the
buyer? US is the buyer, China is the seller.
China isn’t going to collapse obviously, but I think in this trade war, that the US has the
upper hand.I think US-China probably will settle and China will begrudgingly give
ground. They’ll import more US goods, they’ll ease up on required tech transfers, steal less
of it.
In the long term, trade wars slow global economic growth. They create more layoffs, not
fewer, as foreign countries retaliate. Whatever form this conflict takes, and however long it
lasts, there will be no winner.
Recommended Further Reading
https://www.economist.com/finance-and-economics/2018/06/21/a-full-blown-trade-
war-between-america-and-china-looks-likely
https://www.thebalance.com/trade-wars-definition-how-it-affects-you-4159973
https://www.bbc.com/news/world-43512098
https://www.thehindubusinessline.com/opinion/columns/ajay-srivastav/the-real-
reason-behind-trumps-trade-war/article24856757.ece
https://www.youtube.com/watch?v=Iwa3vLoeNmQ
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Impact of AI on jobs
With the advent of any new technology whether it was the steam engine during the
Industrial Revolution or the Artificial Intelligence in the present times, it brings forth
questions pertaining to its impact on the job market. If we really dig deep into some of the
major historical events we will realize that AI is just another chapter in humankind’s
continuous drive to greater innovation. Having said that, in the previous technological
revolutions, machines took over many physical tasks that humans were doing, but humans
still had the cognitive tasks. This time, as AI takes up the cognitive tasks too, what would be
left for humans is something to ponder upon. The author of The Second Machine Age and The
Race Against Machine, Erik Brynjolfsson states that what makes the present scenario
different from the Industrial Revolution of the past is the pace at which digital technologies
are growing in power, together with signs that computers are already diminishing the role
of human labour.
Industrial Revolution and its impact
To better understand how technological innovations should not be looked at solely as a
cause of unemployment and mass mayhem; let’s take a look at a scenario from 1947.
According to data from Berkshire Hathaway 2015 Annual Letter, in 1947, shortly after the
end of World War II, the American workforce totaled 44 million. About 1.35 million
workers were employed in the railroad industry. The revenue ton-miles of freight moved by
Class I railroads that year totaled 655 billion. By 2014, Class I railroads carried 1.85 trillion
ton-miles, an increase of 182%, while employing only 187,000 workers, a reduction of 86%
since 1947… As a result of this staggering improvement in productivity, the inflation-
adjusted price for moving a ton-mile of freight has fallen by 55% since 1947, a drop saving
shippers about $90 billion annually in current dollars. Another startling statistic: If it took as
many people now to move freight as it did in 1947, we would need well over three million
railroad workers to handle present volumes. (Of course, that level of employment would
raise freight charges by a lot; consequently, nothing close to today’s volume would actually
move.)
So, in short seventy years ago a little over 3% of the U.S. workforce was employed by the
railroad industry moving freight and passengers around the country compared to only 0.1%
of the workforce in present time and yet it moves nearly three times the amount of freight
around the country. So, with the changing scenarios humans have been upgrading their
skills and not necessarily become unemployed.
Alan Manning, professor of economics at the London School of Economics said, “If I take a
historical perspective then technical change has always destroyed some jobs and created
others, and this would in some sense be no different from that. There will be some people
who have spent 20 or 30 years specialised in a job and suddenly there is no demand for
that. They suffer big losses but in the long run that washes out, no young people go into
those jobs and they go into something else and there is always something else to go into.”
Fear of job loss
In 2016, World Bank president Jim Yong Kim stated that the World Bank data has predicted
that the proportion of jobs threatened by automation in India is 69 percent, 77 percent in
China and as high as 85 percent in Ethiopia. But this is still data and it is indeed very
difficult to work on assumptions here. No one can predict exactly all of the jobs that AI will
take over from humans over the next few decades. We just don’t know where the
technology will take us. During the early 1980s, the age of computer had arrived and along
with it came “computerphobia”. There were people who felt they can be replaced by a
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machine or even worse become a slave to it. Just because 50 % jobs have become automated
does not mean that there will be 50 % unemployment. With the AI Revolution in upswing
we will become more productive and a task that usually used to take a week could be done
in 3 days. That was the case in the Industrial Revolution. Before the Industrial Revolution,
many worked 60 hours per week. After the Industrial Revolution, work reduced to around
40 hours per week. So, it might be a possibility that there will be more free time for humans
to pursue their hobbies or volunteer.
So, while it is a natural human tendency to look at any massive technological shifts with
anxiety and paranoia, history has shown us that we humans are extremely flexible and we
continue to upgrade ourselves and find ourselves relevant in the job market.
AI revolution and human skills
With AI taking up the chunk of jobs that are time consuming and repetitive, human skills
will be far more appreciated. Thus, all those professions that involve a lot of sensorimotor
skills, the jobs that require the skills of ideation, large-frame pattern recognition, and
complex communication can rejoice as these are the roles that humans would be preferred
over machines. Professions wherein, human interactions are key such as job roles that
involves motivating, nurturing, caring and comforting people will remain with humans.
Machines with their stunted social skills will not replace health care and wellness
professionals, salespeople, managers and entrepreneurs, nurses, kindergarten teachers and
so on and thus these professionals have a reasonably bright future. According to
Brynjolfsson, this is the best time to be a creative professional as in his book he mentions,
“Digital technologies in many ways complements, not substitutes for, creativity… If
somebody comes up with a new song, a video, or piece of software there’s no better time in
history to be a creative person who wants to reach not just hundreds or thousands, but
millions and billions of potential customers.” Also, jobs that did not exist a few decades ago
such as state-of-the-art programming, data science, web security and so on will find high
relevance in the job market as humans will still be needed to create and manage new
technology.
Also, the low-paying menial jobs such as plumbing, repair work, gardening and cooking are
some of the jobs where humans would be preferred, as studies show that machines are not
as agile when it comes to handling certain activities that humans can do far more skillfully
and easily.
The way forward
Thus, looking at the gamut of jobs that will be impacted with AI revolution, we can either
lament at the job roles that will be eliminated or world leaders should be looking at it as an
opportunity to replace job roles that are boring and non-creative by having AI and machine
learning to handle those jobs and provide new job roles comprising of higher level tasks that
requires more human ingenuity and problem solving skills. After all, human skills
combined with AI technologies does allow humans to achieve more and with the AI
Revolution we are getting a chance to rediscover the reasons that make us human and
appreciate human experience. However, we cannot expect people to just jump on the
technology bandwagon right away. Education and university curriculum at large need to
be reconfigured to prepare the future generations to work alongside AI and remain relevant
in the second machine age.
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“Wouldn’t it be nice if you can just tell your phone - ‘Uber ride Crowne Plaza San
Francisco’ - and then the Uber app just gives you the car?” - said Dekang Lin, Naturali’s
co-founder and chief technology officer.
This is possible through bots which either classifies or predicts what’s going to happen.
It has been popularly termed as Artificial Intelligence.
There has been a significant development in the technology sector, which is a consequence
of the substantial improvement in the lifestyle of humans. The concept of artificial
intelligence, termed earlier as fiction, has now become a reality in our lives.
Artificial intelligence is a broad branch of computer science which are designed and
programmed in such a manner that they can think and act like a human. The goal of
artificial intelligence is to create systems that can function intelligently and independently.
It has reduced human effort in many ways, and its role can be observed significantly in
our daily life.
In our day-to-day life, we come across different sets of data in different types of
organisations. For example, if you have lots of data for sales vs advertising spend, you
can plot the data to see some pattern.
If the machine can learn this pattern, then it can make predictions based on what it has
learnt. Machines can learn in many more dimensions – like hundreds or even thousands.
That is why machines can look of high dimensional data and can determine the patterns.
Once it learns these patterns it can make predictions, that human cannot even come close
to. You can use all these machine learning techniques to do one of two things –
classification or prediction.
Machine learning accompanied with neural networks mimics the actual processes of the
real neurons, which allows machines to process complex data and provide accurate
information through artificial intelligence.
Understanding the scope of artificial intelligence, you can observe that artificial
intelligence has penetrated into our daily life. Nowadays in many organisations, humans
are using this technology to speed up the process of completing the work with a greater
level of accuracy. The technique of artificial intelligence has brought out the idea of
error-free world, with reduced human effort and faster results.
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Following are some of the domains where artificial intelligence is having the greatest of
impacts:
• Automated Transport System
Technological advancement termed artificial intelligence has helped the transport
system to automate the running of vehicles, popularly known as ‘self-driving cars’.
The technology enables the car to navigate cross-roads and avoid colliding with
other vehicles. It has significantly helped in reducing the number of accidents. In
most cases, accidents are attributed to several factors which include the influence
of alcohol and drugs, over-speeding, and ignorance of road signs, which can be
reduced through self-driving cars. According to the Atlantic, researchers estimate
that self-driving cars could save 29,447 lives a year (taking number of fatalities in
2013 as the baseline).
For further reading on automated transport system, follow the following links:
· https://interestingengineering.com/the-25-ways-ai-can-revolutionize-
transportation-from-driverless-trains-to-smart-tracks
· https://www.lanner-america.com/blog/examples-artificial-intelligence-
applications-transportation/
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· https://www.cabotsolutions.com/how-artificial-intelligence-is-changing-the-
healthcare-industry
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Artificial intelligence has developed an ecosystem where it has taken over some
of the dangerous jobs currently in the world such as defusing of bombs. In coming
years, it will also provide benefit to the labourers or professionals working under
intense heat and noise. Thus, implementation of artificial intelligence has helped
considerably to provide protection and offer safety measures to humans.
Thus, we see that artificial intelligence impacts our day-to-day life ranging from healthcare
system to banks, from transport system to applications in jobs. It also has a wide area of
applications in gaming, air-transport systems, and computerised methods.
Application of Global positioning system (GPS) during travel; prediction of what we are
going to type and correcting it when wrongly-typed; identify and tag a person on social
media; execution of tasks through digital assistants like Cortana, Siri, Alexa; all form
essential components of application of artificial intelligence.
The development and invention of artificial intelligence have made a considerable impact
on the humans. Consequently, the advent of the next era of artificial intelligence also
plays a part in war prediction and hence eradication, proper means of fighting diseases
and thus developing appropriate preventive measures against it. It is predicted to help
in fighting against poverty, which would be one of the significant roles of artificial
intelligence to be played in the coming days.
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Doubling farmer incomes was a key promise made by the Narendra Modi led government
after it assumed power. As its tenure comes to an end, farm distress has emerged the biggest
headache for the Bharatiya Janata Party's (BJP) 2019 campaign.
Congress president Rahul Gandhi raised the ante recently when he said he won’t allow Modi
to sleep until the centre announced a nationwide farm loan waiver, even as Gandhi promised
to waive all farm loans if his party came to power in 2019.
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“Loan waivers are a band-aid solution, but necessary at times to provide some immediate
relief,” said R. Ramakumar, a professor at Tata Institute of Social Sciences, Mumbai, and an
expert on agriculture credit. “They help little to solve the fundamental problem of rising costs
and falling profitability in agriculture. But it is an easy solution for politicians.”
“Farm loan waiver is not a solution to farm sector distress. It is not a solution but is palliative,”
says Niti Aayog Vice Chairman Rajiv Kumar said . Mr Kumar, however, added that in states
where there is genuine farm distress, some short-term measures have to be taken.
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A few specific models/schemes implemented that can address the root issues are :
1. Widening of weather-based crop insurance schemes could be a quicker method of
alleviating farmer distress. Use of weather data for providing immediate interim relief
should be made mandatory under the crop insurance scheme.
2. Telangana model of farmer income support: All farmers to get Rs 8,000 per acre(in two
tranches) — irrespective of crop grown, price or quantity sold.The amount is expected
to meet a major part of their seed, fertiliser, pesticide and field preparation expenses.
3. Shivraj Singh Chauhan-led BJP government in Madhya Pradesh (MP) has, from the
2017-18 kharif season, been implementing a Bhavantar Bhugtan Yojana. This, too, is an
income support scheme for farmers, wherein they are paid the difference between the
official minimum support price and the average mandi rate for crops during the
marketing season.
4. Along with these schemes plans, a lot of work needs to be done at the systemic/
institutional level - these include
a. Making institutional credit available to all farmers ( including tenant farmers)
b. Strengthening of the MSP ( Minimum Support Price) program
c. Infrastructural facilities ( irrigation, cold storage, warehousing facilities)
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Further Reading
https://www.google.com/url?q=https://www.livemint.com/Politics/
zL8mErALC6vw96u5wcKlaP/8-states-19-trillion-Its-raining-farm-loan-
waivers.html&source=gmail&ust=1546319120982000&usg=AFQjCNEe_zOwT0_uJjnAoK_rU-
mMqK1HRQ
https://www.thehindu.com/business/agri-business/why-do-farmers-need-more-
than-loan-waivers/article25860374.ece
https://indianexpress.com/article/india/agriculture-income-support-telangana-
breaks-new-ground-in-farm-subsidy-5064469/
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• Place names, or toponyms, are directly related to the place of the people: place in
which inhabitants are included, or from where they are excluded, as well as to
“ideological and nation-building constructions.
• Controversies around changes of place names need to be positioned within the context
of divisions between nationalism and internationalism.
• Linking Place and Identity. Place name plays a major role in the creation of a positive
or negative ‘sense of place’. Names change because society changes. However, place
names are often transformed to propose or bring about evolution in society. The very
symbolic nature of a name, its whole historical, cultural, social, topographical and
linguistic backing, has its bearing on the degree of acceptance of a particular change.
• In a society characterized by a multiplicity of diverse political and cultural values,
changes in place names can be a unifying or dividing catalyst. In this regard, place
names may be used as symbols to mobilise and develop a political and historical
consciousness of common identity.
• One of the ways in the renaming process is to use pre-colonial historical references.
However, pre-colonial historical facts are sometimes difficult to establish and verify.
Changing the name of the locality/town/state can be sometimes justified, as was the case
with several roads and junctions in Delhi, which were renamed after several foreign dignitaries
to show the gratitude and respect of the country towards them. This token of gratitude often
helped India to create a positive impression in front of fellow nations and held the nation’s
interest in international unity and cooperation at several forums. Tolstoy Marg (Delhi),
Richmond Town (Bangalore), Coles Road (Bangalore), and Santa Cruz (Mumbai) etc. are
some of such areas and localities in India which carries a legacy, from an individual who
contributed for the welfare of the society or the eminent personalities or leaders. There is even
a village called ‘Moscow City’ named after the USSR capital to commemorate the revolution
of 1917.
West Bengal (Bengal, now) wanted to have a second name change; the State plans to change
its name from Bengal to Bangla. Several memes have popped up regarding this recent decision,
and evidently, the entire idea of replacing and modifying names is gaining traction, negatively
and positively both, among the public.
The underlying reason behind a majority of such renaming processes is emerging out of a
meaningless sense of egoism and regionalism. It is a well-known fact that West Bengal got
renamed to Bengal because the state administration felt that they were always positioned last
in the rolls of several national events and important meetings.
Rather than a mere change in names or alphabets, what political leadership must aim for
should be a change in terms of living standards; a change in terms of health care; a change in
terms of literacy; a change in terms of liberty, harmony and peace. The change must be in the
in the form of the quality of human life. After all, what is there in a name?
Further Reading:
https://www.telegraphindia.com/india/renaming-spree-been-there-done-that/cid/
1239170
https://timesofindia.indiatimes.com/india/six-facts-on-the-city-renaming-spree/
articleshow/66584042.cms
https://www.thehindu.com/opinion/editorial/in-whose-name/article25457701.ece
https://www.siasat.com/news/renaming-spree-erasing-muslim-heritage-1434292/
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Brexit
Brexit: (an abbreviation for the term “British exit”), explained simply as Great Britain leaving
the European Union (EU) as it was earlier part of the EU.
What is the European Union (EU)
The European Union is a club of 28 European Countries. Each of these countries pays to be a
member and in return, they get access to special ways of working together. This includes
being part of a “single market”, which means that countries can trade with one another
and people can move around freely – as if we were all living together in one big country.
The EU has its own parliament, laws and currency (the euro – although the UK doesn’t use
this and retained its currency). The EU was set up after World War 2 with the idea that if
countries work together, they are unlikely to go to war again.
Note: Britain had always maintained some distance from the EU. It joined the European
Economic Community (EEC) in 1973 and hence the EU in the 1990s. But Britain never fully
accepted the legitimacy of European control over British institutions in a way that other
EU members did. It refused to join the Schengen Area, which eliminates internal border
controls and opted out of the common currency Euro.
The referendum
A referendum was held in the UK on June 23rd 2016. Contrary to what the economists were
predicting (and hoping), the United Kingdom (UK) voted to leave the European Union
(EU) by 52% to 48%. ‘Leave’ won the majority of votes in England and Wales, while every
council in Scotland voted to remain in the EU
Technically speaking, the referendum was not legally binding. Theoretically speaking, British
Prime Minister Cameron could have ignored the will of what is after all only a slight majority
of voters, and not made any moves to exit the Union. But that is not how the British do their
politics.
Possible reasons for Britons deciding to leave EU :
• Financial: Each member nation of the EU pays an amount to the EU annually to continue
their membership. As regards the UK, the amount is around $12 billion dollars (£9
billion). This big annual commitment was one possible reason for a ‘leave’ vote where
the money can be spent for domestic purposes
• Immigration: One of the many principles laid out while forming the EU was that of
being free members where people can freely move and live in another EU nation without
the hurdles of getting a visa. It is believed that almost 1 million people have moved to
the UK due to the free labour laws. Britain also gives child benefits and it is believed that
many of these migrants are transferring that money to their children who aren’t living in
the UK.
• Control & Autonomy: the European Parliament decides on many rules and standards
that EU countries have to follow and critics felt that UK was losing control of our own
affairs and laws.
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In essence, it was about autonomy, monetary benefits, & immigration that got 52% of the
Britons voting to leave the EU
Immediate impact
The referendum results did not mean Britain’s exit by default. This marked the beginning of
the end of Britain’s membership of the EU. In the coming months, British and European
leaders negotiated the terms of Britain’s departure. The EU got itself one more crisis to deal
with. As if the Greek crisis, the mass migration and the slow economic growth were not enough.
The then Prime MinisterDavid Cameron had vociferously campaigned for ‘Remain’.The British
Prime Minister shocked everyone by resigning from the post. His chair has become the first
casualty of Brexit. Teresa May was then elected as the next leader of the Conservative Party
& the Prime Minister.
Spooked financial markets
The FTSE (Britain’s stock market ) plunged 11% on news of Brexit verdict
In India, the Sensex was down 1000 points on fears that Britain without the EU may not be
good for India’s business interests.
In Japan, the Nikkei 225 was down some 8 %
Sterling has fallen 10 % against the dollar and 3.83 % against the euro. This is the lowest
level of the British currency in three decades.
The two kinds of Brexits
Two options were floated since the Brexit referendum result of 2016 is whether the UK should
embark on a ‘hard Brexit’ or ‘soft Brexit’.
The two different terms essentially refer to the kind of relationship and level of participation
the country will have with the EU’s Single Market – the free movement of people, goods
and services – and the Customs Union – the bloc’s trade and tax agreement.
A soft Brexit is generally more favoured by Remain supporters – second to no Brexit, of course
– and a hard Brexit is typically more likely to be supported by those who voted Leave.
Key elements of a soft Brexit:
It would keep the UK closely aligned with the EU. The UK could gain special access to the
single market but might have to, in return, compromise on immigration agreements. It aims to
minimise the impact on trade and businesses by essentially staying in the customs union. The
result would be that the UK would still be bound by some of the rules of the bloc, but it would
have less of a say in how the rules are made. And it would be harder for the UK to sign its own
new trade deals.
Key elements of a hard Brexit:
It essentially means taking the UK completely out of the EU – including both the single
market and the customs union, so it is free from its regulations and tariffs. It would give
the UK more control over its borders and immigration. It would mean leaving both the single
market and the customs union and accepting the (possibly) short-term disruption that would
cause in order to have the freedom to operate independently. It could cause more economic
damage to both the UK and the EU but supporters think this would be worth it for the country
to be able to then draw up its independent trade agreements.
When is the UK due to leave the EU?
For the UK to leave the EU it had to invoke Article 50 of the Lisbon Treaty which gives the
two sides two years to agree on the terms of the split. Theresa May triggered this process on 29
March 2017, meaning the UK is scheduled to leave EU on Friday, 29 March 2019* and Theresa
May has put it into British law.
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*(A European court has ruled that the UK can decide to stop the process. Alternatively, it can
be extended if all 28 EU members agree, but at the moment all sides are focusing on that date
as being the key one),
Ground Already Covered: The vote was just the start. The UK and the EU have spent more
than a year trying to agree on how the divorce - as it’s often called - will work in practice. This
has now been agreed with the EU and backed by the cabinet. The discussions have been
mainly over the “divorce” deal, which sets out exactly how the UK leaves - not what will
happen afterwards.
This deal is known as the withdrawal agreement which covers some of these key points:
• How much money the UK will have to pay the EU in order to break the partnership
- that’s about £39bn
• What will happen to UK citizens living elsewhere in the EU, and equally, what will
happen to EU citizens living in the UK
• How to avoid the return of a physical border between Northern Ireland and
the Republic of Ireland when it becomes the frontier between the UK and the
EU ( note: this has turned out to be a very contentious issue - read more about the
issue here (optional read)
• A length of time, called the transition period, has been agreed to allow the UK
and EU to make a trade deal and to give businesses the time to adjust.That means
that if the withdrawal agreement gets the green light, there will be no huge
changes between 29 March 2019 and 31 December 2020.
Another, much shorter, document has also been drawn up that gives an overview of what the
UK and EU’s future relationship will be in the longer term.This is the political declaration.
However, neither side has to stick exactly to what it says - it is a set of ambitions for the future
talks.
Note: The Withdrawal agreement & Political declaration has been approved by EU & UK
Cabinet but has not been approved by the UK Parliament ( as on 26th Dec)
So is Brexit definitely happening?
The UK is due to leave the European Union on 29 March, 2019 - it’s the law, regardless of
whether there is a deal with the EU or not. Stopping Brexit would require a change in the
law in the UK.
But things are far from certain..
MPs were due to vote on the deal on 11 December but Mrs May was heading for a major
defeat. In a dramatic U-turn, she postponed the meaningful vote on the proposal until January
2019. Many Tory MPs were opposed to the deal and launched a vote of no confidence against
Mrs May. She survived the vote, winning 200-117, but still faces an issue getting Parliament
to accept the deal.
The Prime Minister outlined the three choices facing her country:
1. Keep the deal. The U.K. doesn’t have the economic clout to negotiate a better one.
2. Leave with no deal. That would be worse than the hard Brexit option that the opponents
favor. Without a trade agreement, ports would be blocked and airlines grounded. In no
time, imported food and drugs would run short. ( explained later as ‘No deal Brexit)
3. No Brexit. As the negotiations have dragged on, many people are campaigning to remain
in the EU by having another referendum. They argue that voters did not understand the
economic hardships that Brexit would impose. On December 10, the European Court of
Justice ruled that the U.K. could revoke its Brexit application unilaterally. No other EU
body is needed to approve the withdrawal.
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More on ‘No Deal Brexit’ : It means the UK and the EU would be unable to reach a withdrawal
agreement. If no agreement can be made, it means there would be no 21-month transition
period. If that was the case, consumers, businesses and public bodies would have to respond
immediately to changes as result of leaving the EU.
So what would actually happen with no deal? These are just some of the consequences:
Trade: The UK would revert to World Trade Organisation rules on trade. While Britain would
no longer be bound by EU rules, it would have to face the EU’s external tariffs. The price of
goods in shops for Britons could go up as businesses would have to place tariffs on goods
imported from the EU.But Britain would be able to broker trade agreements with other countries
The fate of expats – there are 1.3 million Britons in EU countries and 3.7 million Europeans in
Britain – in terms of their rights to live and work would be unclear.
Money The Government would not have to pay the annual £13 billion contribution to the
EU budget. However Britain would lose out on some EU subsidies
The Irish border: The issue of the border between Northern Ireland and the Republic would
remain unresolved.
The Deadlock
It seems that the current deal is likely to be approved by the House of Commons. It would
stunt Britain’s economy, burden its companies, and infringe its sovereignty, offering essentially
no benefits and solving no problems. Everyone hated it.
The European Union’s negotiators have made it clear that they won’t make significant changes
to the deal — let alone substantial revisions on the most divisive issue of all. What May is
seeking, and the best she can hope for, is a cosmetic tweak, and that will change few if any
minds in Parliament.
The Uncertain Future
A second referendum?: A deep cabinet split has opened up over whether Theresa May should
back a second referendum in a final attempt to end the political deadlock over Brexit. The PM
has publicly denied a possibility of a second referendum but it seems most MPs are backing
a second referendum ( the unstated reason is that during the first referendum the complex
effects & consequences of a Brexit vote was not clear and the current deal does not do justice
to the original intent of the Brexit vote)
As of 26th Dec, a soft Brexit, no deal and a referendum ( in favour of Remain) look to be
the possible outcomes but it is a very complex issue and events during the first quarter of
2019 may well be the most important event in Britain’s Post-world War history
Further Reading
https://www.independent.co.uk/voices/brexit-european-union-how-to-explain-to-your-
child-theresa-may-article-50-a7968411.html
https://www.bbc.com/news/uk-politics-46192884
https://www.bbc.com/news/uk-46318565
https://www.bbc.com/news/uk-46551986
https://www.wallstreetmojo.com/brexit-explained-simply/
https://www.bbc.com/news/uk-politics-32810887
https://inews.co.uk/news/brexit/no-deal-brexit-what-meaning-uk-leave-uk-
consequences/
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6. Prior to the implementation of the IBC, only an average 25% of the asset value was
recovered by the creditors even after the liquidation process.
7. All these compounded to the pitiable position our Public Sector Banks find themselves
in. Rising NPAs and mounting Stressed Assets have also eroded their profits. The
easing of liquidation process can help the banks recover a lot of bad debts.
8. India still fares quite poorly in the Ease of Doing Business index of World Bank.
Easiness of Exit is an important parameter in this index. The previous morass of laws
did not help in easing the exit of trouble-prone entities.
9. According to World Bank data, it takes more than four years to wind up an ailing
company in India, almost twice as long as it does in China.
10. Just like the US Bankruptcy Code that provides for fairly quick liquidation or
reorganisation of business, India too needed a new code that would prevent the
economy from tumbling southwards
Key Players & Processes of the IBC
The Insolvency and Bankruptcy Board of India (IBBI) : The Code establishes
the Insolvency and Bankruptcy Board of India, to oversee the insolvency proceedings in the
country and regulate the entities registered under it. The Board will have 10 members,
including representatives from the Ministries of Finance and Law, and the Reserve Bank of
India. The IBBI was established on 1st October, 2016 under the Insolvency and Bankruptcy
Code, 2016 (Code)..
Bankruptcy and Insolvency Adjudicator: The Code proposes separate tribunals to oversee
the process of insolvency resolution, for individuals and companies: (i) the National
Company Law Tribunal (NCLT) for Companies and Limited Liability Partnership firms; (ii)
the Debt Recovery Tribunal (DRT) for individuals and partnerships and (iii) National
Company Law Appellate Tribunal (NCLAT) which acts as the Appellate Authority
Corporate Insolvency Resolution Process (CIRP) : The Code outlines separate insolvency
resolution processes for individuals, companies and partnership firms.The process may be
initiated by either the debtor or the creditors. A maximum time limit, for completion of the
insolvency resolution process,has been set for corporates and individuals. For companies,
the process will have to be completed in 180 days, which may be extended by 90 days, if a
majority of the creditors agrees .The minimum default amount to initiate the CIRP is Rs 1
lakh
Committee of Creditors - “Committee of Creditors” is a committee consisting of the
financial creditors of the Corporate Debtor. This Committee eventually forms the decision
making body of the various routine tasks involved in Corporate Insolvency Resolution Process
(CIRP), responsible for giving approval to the IRP to carry out actions that might affect the
CIRP.
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Corporate Debtor
An individual or corporate (proprietory, partnership or limited firm ) that has borrowed
money is referred to as a Corporate Debtor under the IBC. For the purpose of IBC , a
corporate debtor is a an entity (individual or corporate) that defaults on the debt
repayment in whole or any part of the instalment of the amount of the debt that has
become due.
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which includes education and sensitization – that has been lacking. One critical mistake in the
implementation of the IBC was of choosing the National Company Law Tribunal (NCLT) as
the forum. The NCLT was anyway burdened with other matters, and then IBC just added to
it. Dedicated benches should have been set up for the same . Also, not many people in the
NCLT actually have an understanding in economics or finance? The IBC is a law which is
hugely driven by finance and economics, so you can’t do justice to the implementation of this
law if people who are responsible for its implementation don’t have a connect with finance
and economics
Lack of momentum from the investor community
The M&A activity in the stressed assets space has not been complemented by the much
spoken enthusiasm of investors and a conducive investment landscape. Many investors are
waiting on the side-lines to gauge the outcome of the settlement of big cases and evolution
of IBC before investing. There are concerns on too little time being allowed to bidders to do
their due diligence. Absence of virtual datarooms, is keeping foreign funds away from the
process as is the relatively small window to conduct due diligence on the
numbers .Furthermore, modifications to IBC have not put to rest certain looming issues,
which are of concern to investors relating to operations of plants in India following transfer
of assets under the IBC, period of commitment towards the units and expected timelines to
close the allocation process. Certain sector-specific concerns with companies under the IBC
may require intervention from the Government.
Arguments for : IBC –Definitely a Game Changer
In the period of time that the insolvency code has been in force, both the NCLT and the
NCLAT have attempted to adapt to new legal concepts and strict procedural timelines.
This must continue, of course, as an efficient judicial process is also critical in protecting the
going concern value of distressed companies. Creditors have recovered Rs 49,783 crore, or
almost 56% of their admitted claims, from 32 stressed companies where insolvency
resolution plans were approved by the NCLT by the end of June 2018, showed data
compiled by the insolvency regulator. Despite the average 44% haircut that the creditors in
general had to take in these cases, analysts said the Insolvency and Bankruptcy Code (IBC)
has performed much better than the earlier system where the recovery process was
strenuous and yielded too little.Some of the steps taken by the government in the
implementation of the IBC are:
Development of Infrastructure to support the implementation of IBC
In less than a year of its enactment, new networks of the National Company Law Tribunal
(NCLT), the new regulator ‘Insolvency and Bankruptcy Board of India’ (IBBI), new stream
of professionals ‘Insolvency Professionals’ (IPs), new stream of Information ‘Information
Utilities’ (IUs) and Insolvency Professional Agencies (IPAs) were established to control and
monitor the IPs’ registrations and proceedings. The IBBI charted the course of it’s
implementation under the guidance of the Ministry of Corporate Affairs (MCA),
Government of India.
Fine tuning the IBC
Constant improvements and updates to IBC have followed in response to the feedback
received and practical experience of processes under execution. To its credit, the
Government has been willing to hear out suggestions. An expert committee was constituted
to suggest modifications required by the IBC to fine tune it and plug-in loopholes. The
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By allowing women of all ages to enter the Sabarimala Temple, the Supreme Court has set a
positive precedent regarding questions of religious equality. It is a significant milestone in,
· Unconditional respect for the equality of women and men
· Respect for the Constitution and the institutions the constitution has created
· Respect for the rights of religious adherents to follow their beliefs and practices, so long
as they do no harm to others; and the rule of law.
What is unusual about Sabarimala is that it offers the first example of these invaluable and
seemingly unchallengeable principles clashing with each other. Constitutionalistsand
liberalsand democrats can easily uphold the above principles.
The problem is that the some of these admirable values are diametrically opposed to each
other on Sabarimala.
The Temple:
Sabarimala is a prominent Hindu temple in Kerala. The temple is dedicated to Ayyappa or the
God of growth. The temple attracts pilgrims from Kerala, Tamil Nadu, Karnataka and Andhra
Pradesh and from various parts of the country and the world. The temple is open for worship
only in the first five days of each Malayalam month; during specials occasions during
November-December, then on January 14 and again on April 14. It is an ancient temple mostly
unreachable till it was rediscovered in 12th century. The pilgrims of Sabarimala have to reach
the temple through difficult treks in the forest as the vehicles cannot reach there. The pilgrims
have to observe celibacy for 41 days before going to Sabarimala. They are also required to
strictly follow a lacto-vegetarian diet, refrain from alcohol, not use any profanity and allow
the hair and nails to grow without cutting. They are expected to bath twice in a day and visit
the local temples regularly. They wear black or blue clothes, do not shave until the completion
of the pilgrimage, and smear sandal paste on their forehead.
Controversy over women entry:
The ban on women entering the temple premises is being practised for centuries, as devotees
consider Lord Ayappa, the presiding deity of the temple, to be celibate.
History: 1991 Photograph
A plea was filed in Kerala High Court in 1991 after a photograph showing a rice-feeding
ceremony at the Sabarimala temple was published in a newspaper. The photograph was from
the first rice-feeding ceremony of the grand-daughter of an ex- commissioner of the temple
board. The photo showed women relatives present at the function in the temple.In 1991, the
Kerala High Court restricted entry of women above the age of 10 and below the age of 50 from
Sabarimala temple as they were of the menstruating age.
27 years later on September 28, 2018, the Supreme Court lifted the ban, saying that
discrimination against women on any grounds, even religious is unconstitutional, which kick
started the current controversy.
The protests took a political turn after BJP ally Shiv Sena warned of “mass suicides” if women
set foot inside the Sabarimala temple. The protests intensified as the date of opening neared.
On October 17, when the doors to Sabarimala opened, the protesters camped at the base of
the trek and at the last stretch of the trek (at Pamba) to stop women from entering the temple.
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of various sects have the freedom to practise their faith in accordance with the tenets of their
religion. It is irrelevant whether the practice is rational or logical. Notions of rationality cannot
be invoked in matters of religion by courts. Ayyappa is in the form of a NaishtikBrahmachari.
The belief in a deity, and the form in which he has manifested himself is a fundamental right
protected by Article 25(1) of the Constitution. The prohibition in vogue for time immemorial
qualified to be an “essential practice”. A religion can lay down a code of ethics, and also
prescribe rituals, observances, ceremonies and modes of worship.Imposing the court’s morality
on a religion would negate the freedom to practise one’s religion according to one’s faith and
beliefs. It would amount to rationalising religion, faith and beliefs, which is outside the ken of
courts.India is a country comprising diverse religions, creeds, sects each of which have their
faiths, beliefs and distinctive practices. Constitutional morality in a secular polity would
comprehend the freedom of every individual, group, sect, or denomination to practise their
religion in accordance with their beliefs and practices.
Equality is not the problem in Sabarimala. Instead, it is an issue concerning the holiness and
the rituals of the temple. In Kanyakumari, there is a temple where men are not allowed to
enter. Nobody has gone to court saying that they want to enter the temple. There are other
Ayyappa temples for women, for those who want to pray to him. Eeveryone should respect
the speciality of Sabarimala. Democracy, one must respect religious beliefs, the Constitution,
the law and so on. Balancing all of this is what democracy is all about.Sabarimala has now
become a police camp. How can anyone pray peacefully there.
The notifications issued by the Travancore Devaswom Board in 1955 and 1956, which refer to
the devotees as “Ayyappans”. The worshippers of Lord Ayyappa together constitute a religious
denomination, or sect thereof, as the case maybe, follow a common faith, and have common
beliefs and practices. They are designated by a distinctive name wherein all male devotees are
called “Ayyappans”; all female devotees below the age of 10 and above the age of 50 are
called “Malikapurams”. A pilgrim on his maiden trip is called a “KanniAyyappan”. The
devotees are referred to as “Ayyappa Swamis”. A devotee has to observe the “vratham” and
follow a code of conduct, before embarking upon the “PathinettuPadikal” to enter the temple.
Thus, Ayyappa devotees are a separate religious denomination and their rights need to be
protected and not interfered with.
Popular sentiment and political conflict
The state government’s decision to implement the Supreme Court verdict has given opportunist
politicians the chance to fish in troubled waters.
The BJP seeks to reassert anew its role as the self-appointed custodian of Hindu sensitivities,
creating outrage and violence by leading an agitation to prevent women from accessing the
temple. Congress is playing the soft hindutva. Meanwhile, the ruling party CPI-M blows hot
and cold, saying one day that it will implement the Court order by escorting women to the
shrine, then ordering its police not to do so and indeed to escort them back if they attempt it.
They have converted a sacred spot into an unseemly stage of political theatre.
The reactions in Kerala have demonstrated that abstract notions of constitutional principle
also have to pass the test of societal acceptance — all the more so when they are applied to
matters of faith. Judges are, of course, rational beings applying legal principles and precedents.
Worshippers have no such constraints. The overwhelming majority of Kerala Hindus, including
a significant majority of women, have now demonstrated that their faith is offended by the
Supreme Court verdict. Informal surveys suggest that opposition to the court judgment among
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Kerala Hindus is above 75 per cent and perhaps as high as 90 per cent. The intensity of emotions
on display have surprised many liberals, not least because so many women seem outraged
that other women might be allowed to go into the Sabarimala temple and disturb its sanctity.
It is all very well to say that religions must adhere to the normal rules of liberal democracy, but
the truth is they don’t. Gender equality is a vital principle in civic society and in political
democracy, but it is by no means universally observed in the religious world. Muslim mosques
don’t allow men and women to pray together in the same space. The Catholic Church does
not permit female priests. Some Shinto monasteries are off-limits to women altogether. There
are Hindu temples which do not allow men to enter during specified periods, and the Kumari
Amman temple situated in Kanyakumari does not permit them at all. The law does not interfere
in such matters.
In implementing the Supreme Court verdict, politicians should have sought to reconcile the
principles upheld by the Court with the believers’ sense of the sanctity of their faith. There is a
need for mutual engagement between the liberals and the traditionalists on what their
convictions and doctrines mean in a changing world.
Conclusion:
With its Sabarimala verdict, the SC underlines the Constitution’s transformative power. The
Constitution protects religious freedom. The legal challenge to the exclusion of women in
the 10-50 age group from the Sabarimala temple in Kerala represented a conflict between
the group rights of the temple authorities in enforcing the presiding deity’s strict celibate
status and the individual rights of women to offer worship there. The decision reaffirms the
Constitution’s transformative character and derives strength from the centrality it accords
to fundamental rights. Liberals are thus torn between their basic respect for gender equality
and their democratic duty to respect the beliefs and wishes of the people. In religious
matters, beliefs must prevail; in a pluralistic democracy, legal principles and cultural
autonomy must both be respected.
Further Reading:
https://thewire.in/law/watch-sabarimala-verdict-what-the-judges-said
https://thewire.in/women/sabarimala-women-entry-supreme-court-judgement-kerala
https://www.hindustantimes.com/india-news/ban-on-entry-of-women-facts-
controversies-about-kerala-s-sabarimala-temple/story-K4Xi6GKMacPDmQO2jAmjNO.html
https://timesofindia.indiatimes.com/india/what-is-sabarimala-case/articleshow/
66054724.cms
https://www.firstpost.com/india/why-women-are-barred-from-sabarimala-its-not-
because-they-are-unclean-2583694.html
https://www.thehindu.com/opinion/editorial/keep-the-peace/article25265690.ece
https://www.hindustantimes.com/india-news/why-the-sabarimala-verdict-allowing-
women-s-entry-is-not-against-mass-opinion/story-TbhvfuhI8myB0SW3qoAxeM.html
https://www.financialexpress.com/india-news/the-constitutional-and-legal-bases-of-the -
sabarimala-verdict-october-17-2018/1352605/
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“Section 377 is irrational, indefensible and manifestly arbitrary.” – Former Chief Justice of India
Deepak Mishra
Supreme court has now given a mandate on Section 377 and has created a new wave of
discussions. This judgement of the Supreme Court has thrust diversity and plurality in the
public discourse.
What is Section 377?
Section 377 of the Indian Penal Code was introduced in 1860 during the British rule and it
refers to the ‘unnatural offences’. According to section 377, whoever voluntarily indulges in
carnal intercourse against the order of nature with any man, woman or animal, shall be
punished with imprisonment for life, or with imprisonment of either description for a term
which may extend to 10 years, and shall also be liable to pay a fine.
How is section 377 linked with individual identity or gender identity?
Gender identity is an individual’s choice of self-identification as a man, woman, transgender
or any other identified category. As per article 15 and 16, the discrimination on the grounds of
‘sex’ also includes discrimination on the ground of gender identity. ‘Sex’ included in article 15
and 16 also considers people who are gender agnostic or who don’t believe in categorising
themselves to be either male or female. Sex here according to article 15 and 16 is not just
restricted to biological sex.
Is ‘Section 377’ legitimate?
The issue of Section 377 was first raised by NGO Naaz Foundation, which had in 2001
approached the Delhi High Court which had decriminalised sex between consenting adults of
the same gender by holding the penal provision as “illegal”. This 2009 judgement of the high
court was overturned in 2013 by the apex court which had also dismissed the review plea.
The rights of every individual is an integral and innate facet of every identity and the lesbian,
gay, bisexual and transgender (LGBT) community which comprises of 7- 8% of the total Indian
population, need to be recognized and protected, for sexual orientation. A person belonging
to the said community does not become an alien to the concept of individual and his
individualism cannot be viewed with a stigma. There is a stigma associated with one’s sexual
orientation and preference and section 377 was to an extent legitimising the stigma linked
with sexual expression.
Implications for heterosexuals
The consensual oral and anal sexual acts between two adults were treated as unnatural and
punishable earlier because of section 377 but now the rule has given a right to such
consenting acts done in private.
What was the need to lift the ban?
What is natural to one may not be natural to other but the said natural orientation and personal
choices can’t be allowed to cross the boundaries of law hence there was a need to give it a
constitutional legality. According to DY Chandrachud, “It is difficult to right a wrong by
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history. But we can set the course for the future. This case involves much more than
decriminalising homosexuality. It is about people wanting to live with dignity.”
A game changer verdict:
With the decriminalising of section 377, the apex court has once again established the right of
every Indian human being to be free irrespective of sexual preference and orientation. With
this encoding of right to freedom, the age-old punitive section 377 of the Indian Penal Code
(IPC) will no longer apply to consensual sexual relations among adults in private.
With Supreme Court scrapping Section 377 of the IPC and decriminalising the 158-year-old
colonial law, the law will no longer be available for use or abuse, to foster, facilitate, or
perpetuate, an atmosphere conducive to human rights violations of a certain kind, and will
put an end to the discrimination that many millions have faced because of their sexual
orientation or gender identity for so many years now. India now joins a proud league of
nations that recognises true freedom of gender identity and sexual expression. This ruling of
the Supreme Court will not only impact India, but will also undoubtedly have immense
transnational value. The effect of this judgement is especially likely to be felt in other common
law countries, and it will, hopefully, provide an impetus to those countries that still have
equivalent provisions in their statute books, to critically consider the lawfulness and legality of
provisions that similarly criminalise consensual sexual relations. We have come a long way
from the journey that started with Naz Foundation.
Social inclusion, identity seclusion and isolation from the social mainstream are still the stark
realities of society and it is when the human being is liberated from the shackles of such bondages
and is able to work towards the full development of his/her personality that we can call a
truly free society. In 2017, in ‘Justice Puttaswamy vs Union of India’, a Constitution bench of
the Supreme Court held that privacy is a fundamental right. Justice Chandrachud, in particular,
called out the Section 377 decision as being “unsustainable”, noting that the “right to privacy
and the protection of sexual orientation lie at the core of the fundamental rights guaranteed
by Articles 14, 15 and 21 of the Constitution”.
No kind of prejudice and discrimination can continue in perpetuity. Section 377 was introduced
in Indian criminal law in furtherance of western notions of morality, based on Abrahamic
ideologies. At the time of its introduction, limited consideration was given to a contradictory
morality that existed in the subcontinent, which acknowledged and recognised homosexuality,
and did not criminalise it. Even as the UK and other jurisdictions abandoned it for a more
reasoned position of homosexuality being nothing but a variation in human nature, Indian
governments and other public institutions, over the decades, have tried to perpetuate
antiquarian ideas. There was no explicable justification for this law to remain. This decision
has thankfully undone the artificial construct that was Section 377, and in doing so, it also
recognises the triumph of constitutional morality over public morality.
Throughout this process, and indeed, through deliberations around law making generally, we
should not lose sight of the fact that laws like the IPC are neither Indian nor god-given. Laws
like these are not immutable. And in fact, they lose value if they are not abandoned, rewritten,
or amended, to suit changing social, cultural, and economic needs.
Even as our immediate reaction is one of relief, and joy, this decision is only the beginning of
the long walk to ultimate freedom for all. International law strictly prohibits any discrimination
on the grounds of sexual orientation or gender identity. The Office of the UN High
Commissioner of the Human Rights oblige states to protect individuals from homophobic
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quoted as saying the figure is now as high as Rs 16,000 crore. Under ideal conditions, either
of these figures could have helped IL&FS stall the crisis.
Where is the money that IL&FS owes?
That is an Rs 90,000-crore question. (Let’s spell it out: Rs 90,000,00,00,000)The complex structure
of the company makes the task more difficult. Market analysts confess that IL&FS is a difficult
company to track as it does not have the most transparent annual reports.
The money is lying in various projects that are either completed or are unfinished or have
not yet taken off. The government also feels that the money has been siphoned off from
the company and has launched an inquiry to look into the failure of the company.
The complex structure of the company with 24 direct subsidiaries, 135 in-direct subsidiaries,
six joint ventures, and four associate companies are under the umbrella of the parent IL&FS.
Maze of subsidiaries created to spirit away funds to tax havens, protect parent firm?
Subsidiaries are standalone companies, and thus can be bought and sold without much ado
where in case of a multi-division company, the division on sale has first to be hived off in a
demerger exercise which takes time and cost.
The unfolding saga of Infrastructure Leasing and Financial Services (IL&FS) has turned out to
be the same old script—float mind-boggling maze of subsidiaries in a manner of wheels within
wheels in a clutter of confusion so that it takes a herculean effort to figure out where exactly
the amount flowing out of the parent went.
As per Uday Kotak, Chairman of the temporary board of directors of IL&FS, appointed by the
central government in place of the one that presided over the crisis, there are as many as 347
subsidiaries of IL&FS, with 100 of them incorporated abroad.
Yes, one can say without the fear of contradiction that these 100 foreign subsidiaries would
presumably be in tax havens such as Camay Island, British Channel Islands, Panama etc, the
usual suspects that always figure in the roll-call of financial rogues and renegades. And these
are the companies through which the IL&FS promoters would have ultimately reached their
objective—spiriting away funds, rubbing off all possible audit trails unless the Indian
government is lucky in persuading the government of these renegade states harboring the ill-
gotten wealth to spill the beans. The record hitherto, sadly, is none too inspiring.
When was the first sign of trouble visible in IL&FS
IL&FS defaulted on inter-corporate deposits and commercial papers in October 2018. On
September 4, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore
from SIDBI, while a subsidiary has also defaulted on Rs 500 crore dues to the development
financial institution.
But the stress on IL&FS books was visible much before the institution defaulted on its loans.
Many experts now say that the Ravi Parthasarathy’s founder and Chairman of IL&FS untimely
exit on health grounds in July 2018 was the first tell-tale sign of trouble.By the way Chairman
Ravi Parthasarathy, last year gave himself a 144% increase, taking his salary to Rs 26.3 crore.
The unreality of it all is staggering. The government stepped in on October 1. But just two days
earlier, the company’s shareholders approved a Rs 4,500-crore rights issue. And a mere month
before that, the company gave out a final dividend of 10%. (In the previous year, the dividend
was 42.5%). And you thought only profit-making companies gave out dividends? In the same
vein, have you heard of companies facing virtual insolvency, awarding massive pay raises?
IL&FS gave a 66% increase to its management staff.
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The entire issue has raised doubts about the working of watchdogs like auditors and rating
agency who could not locate the stress in the company and jumped into action only after the
default.
Consolidated debt of the company increased from Rs 49000 crore in 2014 to Rs 91,000 crore in
2018, as a result, its interest outgo rose from Rs 3,900 crore to Rs 7,900 crore during the same
period. However, operating profit increased at nearly half the pace increasing from Rs 5,100
crore to Rs 7,300 crore. By 2018 the company was not even making enough to take care of its
interest expense, hence the default.
Ironically a company which in the business of Financial Advisory in infrastructure space
did not heed its own advice.
Why has the board of IL&FS been sacked?
The IL&FS saga took many by surprise after the government decided to move the National
Company Law Tribunal (NCLT) to take over IL&FS by replacing all board members as defaults
by the infrastructure group and its subsidiaries triggered concerns about contagion in the
financial markets.
Government and other agencies feel that a surgical strike is needed to clear the mess in IL&FS
and in order to implement changes need going forward a completely new team is needed. The
government superseded the existing board of IL&FS with six new board members.
Kotak Mahindra Bank MD Uday Kotak has been appointed as the Chairman of the board.
In a press conference post the first board meeting of the new team, Kotak said that the board
will do what is in the right interests of the different categories of stakeholders by bringing in
clarity, rebuild trust and do it in an open, fair, objective manner.
How will the IL&FS mess be cleared?
While the investigating agencies will do its job of finding the culprits the new board has a task
in hand of keeping the company running and stopping further defaults. The only way to do it
is by finding money wither from within the company or outside to keep the company floating.
Thankfully IL&FS has enough assets in its books, including its posh office, to reduce debt
levels and continue with its business. Reports say that the company may sell rights to operate
toll roads to National Highway Authority of India (NHAI) and raise immediate money.
There are talks of equity infusion in the company from its shareholders including LIC, SBI,
HDFC, Abu Dhabi sovereign fund and Orix of Japan. Raising money through debt option is
also one of the ways the company is evaluating to raise money.
A stake sale or a complete selloff is another option that is being discussed in media.
Names to remember
Chairman Parthasarathy,
VC and MD Hari Sankaran
Jt MD and CEO ArunSaha.
List of Companies of the IL&FS group in different domains.
Infrastructure Services
• IL&FS Infrastructure Development Corporation Limited: advisory and project
development
• IL&FS Transportation Networks Limited: involved in the development and
implementation of projects related to surface transport (highways, flyovers, bridges
and roads)
• IL&FS Environmental Infrastructure & Services Limited
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On 23 September 2013 the Supreme Court issued an interim order saying that the government
could not deny a service to anyone who did not possess Aadhar, as the identity number was
voluntary.
2014 to present
On 5 July 2014, Modi announced that his government would retain theAadhar project, and
asked an official to look into the possibility of linking the project with passports. In March
2015 the Aadhar-linked DigiLocker service was launched, using which Aadhar-holders can
scan and save their documents on the cloud, and can share them with the government officials
whenever required without any need to carry them.
During the budget presentation on 29 February 2016, Jaitley announced that a bill would be
introduced within a week to provide legislative support to the Aadhar project. On 3 March
2016 the Aadhar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services)
Bill, 2016, was introduced in the Parliament as a money bill by Jaitley. The decision to introduce
it as a money bill was criticised by the opposition parties. GhulamNabi Azad, an INC leader,
wrote in a letter to the Jaitley that the ruling party, the BJP, was attempting to bypass the
RajyaSabha, as they did not have the majority in the upper house. A money bill is only required
to pass in the lower house LokSabha.TathagataSatpathy of BijuJanata Dal (BJD) raised concerns
that the project could be used for mass surveillance or ethnic cleansing in the future.
On 11 March 2016 the Aadhar (Targeted Delivery of Financial and other Subsidies, benefits
and services) Act, 2016, was passed in the LokSabha. During the RajyaSabha debate on 16
March, SitaramYechury of the CPI-M said that bill should not have been passed when the
issue of the right to privacy was still in the Supreme Court. On 16 March 2016 the bill was
returned to the LokSabha by the RajyaSabha with some suggested amendments, which the
LokSabha promptly rejected.
BJP’s opposition to Aadhar (while in opposition)
In 2012, BJP’s national spokesperson MeenakshiLekhi had slammed Aadhar as a “fraud”
programme and demanded a probe. “This is a dangerous programme to regularise the illegal
stay of migrants in the country. Is Bharat Mata so open to illegal migrants? The Aadhar is also
in contravention of Supreme Court directives. The entire biometric data of people enrolled has
been stored outside the country,” Lekhi had said.
Ananth Kumar, the parliamentary affairs minister of the NDA government, had said that
Aadhar’s contribution was to provide citizenship to illegal immigrants. “If you illegally enter
other countries, you are shot at or put in jail. But if anyone illegally enters India, he is given
citizenship. This is the contribution of Aadhar. Half of Assam is occupied by Bangladeshis.
Aadhar is the biggest fraud in the country,” Ananth Kumar said.
In 2010, at a function in New Delhi, SmritiIrani, who is the Union textile minister, had said,
“The reality is that the National Identification Authority of India Bill, 2010, which gives sanction
to this particular card was rejected by the standing committee on finance.”
Thus, the alleged U-turn on the part of BJP on Aadhar gave ample ammunition to the opposition
parties to make the issue a political slugfest.
Chronology of Aadhar case
• Jan 2009: Planning Commission notification on UIDAI.
• 2010-2011: National Identification Authority of India Bill, 2010 introduced.
• Nov 2012: Retired Justice K S Puttaswamy and others file PILs in SC challenging
validity of Aadhar.
• Nov 2013: SC orders all states and Union Territories be impleaded as respondents.
• Mar 3, 2016: Aadhar Bill - 2016 introduced in LokSabha; later passed as Money Bill.
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• May 2017: Former Union minister and Congress leader Jairam Ramesh moves SC
Challenging the Centre’s decision to treat Aadhar bill as a money bill.
• Aug 24, 2017: SC nine-judge bench rules that right to privacy is a fundamental
right.
• Dec 15: SC extends deadline for mandatory linking of Aadhar with various services
and welfare schemes till March 31, 2018.
• Jan 17, 2018: SC five-judge bench begins hearing Aadhar case.
• Jan 25: SC asks Chhattisgarh HC to modify in 10 days its order directing all trial courts
in the state to mandatorily accept copies of Aadhar card for releasing an accused on
bail.
• Feb 19: Delhi BJP leader Ashwini Kumar Upadhyay seeks direction to EC to take
appropriate steps to implement an Aadhar based election voting system.
• Feb 21: SC says the alleged defect that citizens’ biometric details under the Aadhar
scheme were being collected without any law, could be cured by subsequently bringing
a statute.
• Mar 7: SC says Aadhar number not mandatory for enrolment of students in all India
exams.
• Mar 13: SC extends March 31 deadline of Aadhar linking till it gives its order.
• Mar 22: UIDAI CEO says breaking the Aadhar encryption may take “more than the
age of the universe for the fastest computer on earth”.
• Mar 28: Social activist Reshma Prasad seeks direction to the Centre to create a separate
third gender category option on PAN cards for transgenders.
• Apr 3: Centre tells SC Aadhar law is just, fair & reasonable.
• Apr 17: SC raises concerns that there is a threat of Aadhar data misuse.
• Apr 25: SC questions Centre on mandatory seeding of Aadhar with mobile.
• Sep 26: SC upholds constitutional validity of Aadhar but strikes down certain
provisions including its linking with bank accounts, mobile phones and school
admissions.
Decoding the Judgment:
The following summary from the judgment gives clear idea about which all provisions got
erased from the statute and which all will remain in a changed form.
Section 2(d) struck down:
Section 2(d) which pertains to authentication records, such records would not include metadata
as mentioned in Regulation 26(c) of the Aadhar (Authentication) Regulations, 2016. Therefore,
this provision in the present form is struck down. Liberty, however, is given to reframe the
regulation, keeping in view the parameters stated by the Court.
Section 2 (b)
Insofar as Section 2(b) is concerned, which defines ‘resident’, the apprehension expressed by
the petitioners was that it should not lead to giving Aadhar card to illegal immigrants. The
court directed the government to take suitable measures to ensure that illegal immigrants are
not able to take such benefits.
Regulation 27
Retention of data beyond the period of six months is impermissible. Therefore, Regulation 27
of Aadhar (Authentication) Regulations, 2016 which provides archiving a data for a period of
five years is struck down.
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Section 29
Section 29 imposes a restriction on sharing information and is, therefore, valid as it protects
the interests of Aadhar number holders. However, apprehension of the petitioners was that
this provision entitles Government to share the information ‘for the purposes of as may be
specified by regulations’. The Aadhar (Sharing of Information) Regulations, 2016, as of now,
do not contain any such provision. If a provision is made in the regulations which impinges
upon the privacy rights of the Aadhar card holders that can always be challenged.
Section 33(1)
Section 33(1) of the Act prohibits disclosure of information, including identity information or
authentication records, except when it is by an order of a court. The SC held that this provision
is to be read down with the clarification that an individual, whose information is sought to be
released, shall be afforded an opportunity of hearing. If such an order is passed, the individual
will also have right to challenge such an order passed by approaching the higher court. During
the hearing before the concerned court, the said individual can always object to the disclosure
of information on accepted grounds in law, including Article 20(3) of the Constitution or the
privacy rights etc.
Section 33(2) National Security.
In so far as Section 33(2) of the Act is concerned, the SC held that held that as far as disclosure
of information in the interest of national security cannot be faulted with. However, for
determination of such an eventuality, an officer higher than the rank of a Joint Secretary
should be given such a power. Further, in order to avoid any possible misuse, a Judicial Officer
(preferably a sitting High Court Judge) should also be associated with. We may point out that
such provisions of application of judicial mind for arriving at the conclusion that disclosure of
information is in the interest of national security, are prevalent in some jurisdictions.
In view thereof, Section 33(2) of the Act in the present form is struck down with liberty to
enact a suitable provision on the lines suggested above.
Section 47 – Criminal complaints of data breach.
Under Section 47 of the Aadhar Act, criminal complaints with regards to data breach could
only be filed by UIDAI; individuals were not allowed. However, this clause has now been
revoked, allowing individuals to report any incident of a data breach. Insofar as Section 47 of
the Act which provides for the cognizance of offence only on a complaint made by the
Authority or any officer or person authorised by it is concerned, it needs a suitable amendment
to include the provision for filing of such a complaint by an individual/victim as well
whose right is violated.
Section 57
Last but not the least, the top court also struck down Section 57 of the Aadhar Act, which
basically means that users will not have to share their Aadhar data with any other third-
party for availing services. In a nutshell, you will not have to share any of your authentication
details or biometric data to sign up or use a service.
Insofar as Section 57 in the present form is concerned, it is susceptible to misuse inasmuch as:
(a) It can be used for establishing the identity of an individual ‘for any purpose’. We read
down this provision to mean that such a purpose has to be backed by law. Further, whenever
any such “law” is made, it would be subject to judicial scrutiny. (b) Such purpose is not
limited pursuant to any law alone but can be done pursuant to ‘any contract to this effect’ as
well. This is clearly impermissible as a contractual provision is not backed by a law and,
therefore, first requirement of proportionality test is not met. (c) Apart from authorizing the
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State, even ‘anybody corporate or person’ is authorized to avail authentication services which
can be on the basis of purported agreement between an individual and such body corporate
or person. Even if we presume that legislature did not intend so, the impact of the aforesaid
features would be to enable commercial exploitation of individual biometric and demographic
information by the private entities. Thus, this part of the provision which enables body corporate
and individuals also to seek authentication, that too on the basis of a contract between the
individual and such body corporate or person, would impinge upon the right to privacy of
such individuals.
This part of the section, thus, is declared unconstitutional.
Aadhar Do Not Tend To Create A Surveillance State.
The majority judgment holds that the architecture of Aadhar, as well as the provisions of the
Aadhar Act, do not tend to create a surveillance state. It was observed that this aspect is
ensured by the manner in which the Aadhar project operates. The judges also found that it is
very difficult to create profile of a person simply on the basis of biometric and demographic
information stored in CIDR and -Insofar as authentication is concerned, there are sufficient
safeguard mechanisms. In this regard, the majority judgment held as follows:
• Authentication records are not to be kept beyond a period of six months, as stipulated
in Regulation 27(1) of the Authentication Regulations. This provision which permits
records to be archived for a period of five years is held to be bad in law.
• Metabase relating to transaction, as provided in Regulation 26 of the aforesaid
Regulations in the present form, is held to be impermissible, which needs suitable
amendment.
• Section 33(1) of the Aadhar Act is read down by clarifying that an individual, whose
information is sought to be released, shall be afforded an opportunity of hearing.
• Insofar as Section 33(2) of the Act in the present form is concerned, the same is struck
down.
• That portion of Section 57 of the Aadhar Act which enables body corporate and
individual to seek authentication is held to be unconstitutional.
• Bring out a robust data protection regime in the form of an enactment on the basis of
Justice B.N. Srikrishna (Retd.) Committee Report with necessary modifications.
‘Reasonable Expectation Of Privacy’
The Court held that all matters pertaining to an individual do not qualify as being an inherent
part of right to privacy. Only those matters over which there would be a reasonable expectation
of privacy are protected by Article 21. It also held that the Aadhar scheme, which is backed by
the statute, i.e. the Aadhar Act also serves legitimate State aim. However, the court clarified-
‘Benefits’ and ‘services’ as mentioned in Section 7 should be those which have the colour of
some kind of subsidies etc., namely, welfare schemes of the Government whereby Government
is doling out such benefits which are targeted at a particular deprived class
It would cover only those ‘benefits’ etc. the expenditure thereof has to be drawn from the
Consolidated Fund of India
On that basis, CBSE, NEET, JEE, UGC etc. cannot make the requirement of Aadhar mandatory
as they are outside the purview of Section 7 and are not backed by any law.
Aadhar and Children
With regard to enrolment of children, the court held as follows:
For the enrolment of children under the Aadhar Act, it would be essential to have the consent
of their parents/guardian.
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On attaining the age of majority, such children who are enrolled under Aadhar with the
consent of their parents, shall be given the option to exit from the Aadhar project if they so
choose in case they do not intend to avail the benefits of the scheme.
Insofar as the school admission of children is concerned, the requirement of Aadhar would
not be compulsory as it is neither a service nor subsidy. Further, having regard to the fact that
a child between the age of 6 to 14 years has the fundamental right to education under Article
21A of the Constitution, school admission cannot be treated as ‘benefit’ as well.
Benefits to children between 6 to 14 years under SarvShikshaAbhiyan, likewise, shall not
require mandatory Aadhar enrolment.
For availing the benefits of other welfare schemes which are covered by Section 7 of the Aadhar
Act, though enrolment number can be insisted, it would be subject to the consent of the parents,
as mentioned in (a) above.
The court also clarified that that no child shall be denied benefit of any of these schemes if, for
some reasons, she is not able to produce the Aadhar number and the benefit shall be given by
verifying the identity on the basis of any other documents.
Upholds Passing of Aadhar Act as Money Bill
The bench which also observed that Aadhar Act meets the concept of Limited Government,
Good Governance and Constitutional Trust, upheld the passing of the Act as a ‘Money Bill’.
It said that Section 7 is the core provision of the Aadhar Act and this provision satisfies the
conditions of Article 110 of the Constitution.
PAN Linking Upheld, Bank-Mobile Linking Unconstitutional
The court further held that Section 139AA of the Income Tax Act, 1961 is not violative of
right to privacy as it satisfies the triple test (I) existence of a law; (ii) a ‘legitimate State
interest’; and (iii) such law should pass the ‘test of proportionality’, However, the bench
held that the move of mandatory linking of Aadhar with bank account does not satisfy the
test of proportionality. It has been also held that Mandatory linking of mobile number with
Aadhar is held to be illegal and unconstitutional as it is not backed by any law.
Conclusion
The 5-judge bench of the Supreme Court in a crucial verdict watered down several sections
of the Aadhar Act. While the constitutional validity of Aadhar was upheld, the top court
has eliminated some clauses, which required information sharing with third parties in
various scenarios. Linking of mobile and bank account is no more mandatory under the
Aadhar Act, said the five-judge SC bench which was hearing the judgement. However,
linking of PAN with Aadhar remains mandatory under 139AA of Income Tax Act.
The Supreme Court finds a pragmatic middle path between the Aadhar scheme’s excesses
and its benefits to the marginalized. The Aadhar project has survived a fierce legal
challenge. Ever since a nine-judge Bench ruled unanimously last year that privacy is a
fundamental right, opinion began to gain ground that the unique identification programme
was vulnerable in the face of judicial scrutiny. It was projected by sceptics, detractors and
activists as an intrusion on citizens’ privacy, a byword for a purported surveillance system,
a grand project to harvest personal data for commercial exploitation by private parties and
profiling by the state. But the government has staved off the challenge by successfully
arguing that it is essentially a transformative scheme primarily aimed at reaching benefits
and subsidies to the poor and the marginalised. Four of the five judges on a Constitution
Bench ruled that the law enabling the implementation of the programme does not violate
the right to privacy of citizens; instead, the project empowers marginalised sections and
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procures dignity for them along with services, benefits and subsidies by leveraging the
power of technology.
In upholding the constitutional validity of Aadhar and clarifying areas in which it cannot
be made mandatory, the Supreme Court has restored the original intent of the programme:
to plug leakages in subsidy schemes and to have better targeting of welfare benefits. Over
the years, Aadhar came to mean much more than this in the lives of ordinary people,
acquiring the shape of a basic identity document that was required to access more and more
services, such as birth and death certificates, SIM cards, school admissions, property
registrations and vehicle purchases. A unique identity number, that could be availed on a
voluntary basis and was conceived to eliminate the rampant fraud in the distribution of
benefits, had threatened to morph — with the Centre’s tacit acceptance — into something
that was mandatory for various aspects of life. The judgment narrows the scope of Aadhar
but provides a framework within which it can work. The majority opinion has sought to
limit the import of the scheme to aspects directly related to welfare benefits, subsidies and
money spent from the Consolidated Fund of India. Thus, controversial circulars and rules
making it mandatory to link mobile phone numbers and bank accounts to Aadhar numbers
have been declared unconstitutional. Section 57 of the Aadhar (Targeted Delivery Of
Financial And Other Subsidies, Benefits And Services) Act, 2016, has been struck down to
the extent that it authorised body corporates and individuals to use the Aadhar number to
establish someone’s identity. Schools have been barred from making the submission of the
Aadhar number mandatory to enrol children.
https://www.thehindu.com/opinion/editorial/Aadhar-survives/article25051397.ece
https://en.wikipedia.org/wiki/Aadhar#Critical_views
https://www.hindustantimes.com/india-news/Aadhar-flip-flop-when-the-bjp-called-it-a -
fraud-scheme-aimed-at-legalising-illegal-immigrants/story-
tRxUVr8qTDbPHwInD7m3tN.html
https://www.indiatoday.in/india/story/10-things-to-know-about-Aadhar-card-287673-
2015-08-11
https://www.livelaw.in/Aadhar-read-the-summary-of-majority-41-judgment/
https://www.timesnownews.com/business-economy/economy/article/sc-strikes-down-
section-332-57-47-of-Aadhar-act-what-it-means-for-you/290275
https://www.livemint.com/Companies/cpSHu1fjQ1WvOP8vMi27aL/What-Supreme-
Courts-Aadhar-verdict-means-for-you-10-point.html
https://www.livemint.com/Companies/egjWCYZXFLH6OTVAnSGw6N/How-Supreme-
Courts-Aadhar-order-affects-you.html
https://www.ndtv.com/india-news/Aadhar-verdict-key-takeaways-from-todays-
supreme-court-verdict-on-Aadhar-1922742
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Also, if inflow of dollars results in making dollar cheaper. If dollar becomes cheaper, exports
from India will appear more expensive. (For example, if current dollar rate is $1 = Rs.60, the
dollar price of a thing worth Rs.300 in the international market will be $5. However, if
dollar becomes cheaper and new dollar rate is $1 = Rs. 50, the dollar price of the same thing
will be $6. This will harm the exports).
Can there be any alternative to the Floating Exchange Rate regime? The alternative is called
‘Fixed Exchange Rate’ regime.
Fixed Exchange Rate regime
Under the ‘Fixed Exchange Rate’ regime, the central bank of the country (RBI in India)
intervenes in the foreign exchange market. If there is an inflow of dollars in the country, the
central bank purchases excess dollars and keeps them in its reserves so as to maintain the
dollar rate at a fixed value. Similarly, if there is an outflow of dollars (and hence greater
demand of dollars), the central bank supplies dollars from its reserves and maintains the
dollar exchange rate at a fixed value.
As you can see, the biggest factor limiting effective implementation of Fixed Exchange Rate
regime is the amount of dollars in the reserves with the central bank. If the central bank
starts running out of dollars, either dollars have to be borrowed from abroad and/or the
domestic currency has to be ‘devalued’. (For example, suppose the current dollar exchange
rate is $1 = Rs. 50 and there is a huge demand of dollars from importers which RBI cannot
satisfy. In that case, RBI can choose to devalue the rupee from $1 = Rs. 50 to say $1 = Rs. 60.
This devaluation will force the importers to shell out more rupees for buying the dollar,
which will reduce the demand of dollars. Similarly, devaluation makes domestic exports
more competitive because the price of the exported goods, denominated in dollars becomes
cheaper. Greater export from India will lead to inflow of dollars, which will correct the
imbalance in dollar reserves.)
Managed Floating Exchange Rate Regime
In the Managed Floating Exchange Rate regime, normally the central bank of the country
(RBI in India) does not intervene in the Foreign Exchange Market and lets the forces of
demand and supply determine the exchange rates. However, the central bank intervenes
only when there is extreme volatility in the exchange rate. If the dollar is becoming
expensive too fast, the central bank intervenes and supplies dollars in the market from its
reserves and stabilizes the dollar price. Similarly if the dollar is becoming cheaper too fast,
the central bank buys dollars in the foreign exchange market and does not let the dollar
price fall too fast.
India was on Fixed Exchange Rate regime up-to early 1990s. Since early 1990s, India is on
‘Managed Floating Exchange Rate’ regime.
Balance of Payments crisis of 1991
First Gulf war of 1991 resulted in increase in oil prices. This caused significant strain on
India’s dollar reserves. By January 1991, India’s dollar reserves were around $1.2 billion,
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which were reduced to about $500 million by June 1991. By June 1991, India had enough
forex reserves to suffice for only 3 weeks of exports. At that crucial juncture, Government of
India had to pledge 67 tonnes of gold with Bank of England and Union Bank of
Switzerland and raise about $2.2 billion emergency loan. In July 1991, Government of India
devalued Indian rupee from $1 = Rs. 17 to $1 = Rs. 23. In the union budget presented by the
Finance Minister Dr. Manmohan Singh in February 1992, India officially adopted ‘Managed
Floating Exchange Rate’ regime.
After the managed floating rate regime was adopted, by 1996, the dollar exchange rate was
$1 = Rs. 35.
Dollar price movement in recent years
Dollar rate saw some movements in the decade 1996-2006. Dollar became cheaper from
Rs.48 in the aftermath of parliament attack and possibility of India-Pakistan war in 2001-
2002 to Rs. 39 in 2007 due to the influx of dollars from international investors to take
advantage of rapid progress of the Indian economy in the intervening period.
In 2008, US economy faced the biggest crisis in almost 8 decades. Whenever any big crisis
hits, international investors substantially pull out their investment in the international
market as well as American companies and buy US government bonds, which are supposed
to be the safest investment vehicle available. As a result, international investors pulled out
their dollars from India in 2008-09, which resulted in dollar becoming substantially more
expensive at about $1 = Rs. 52 by March 2009.
After Barack Obama became President of the US in January 2009, his administration took
some steps to tide over the crisis of 2008. The US Fed (central bank of the US- equivalent of
RBI) initiated a programme called ‘Quantitative Easing’. As a result of this programme,
financial institutions had excess dollars, which were again brought to India for investment.
Due to this additional dollar inflow, Indian rupee appreciated from Rs. 52 in March 2009 to
Rs. 45 in August 2011. However, as the US economy showed improvement, QE programme
was wound up, which reduced the dollars inflow in India. As a result, by 2013, dollar
exchange rate was about $1 = Rs. 60.
The dollar exchange rate continued in the range 58-66 in during 2013 to 2017.
In January 2017, after Donald Trump became the president of the US, there was increased
concern of trade war between the US and China. Trump imposed tariff on several goods
imported from China. As a result, China also retaliated with tariff on goods imported from
the US. In July 2018, the US imposed sanctions on the steel industry of Turkey. The
currency of Turkey, called Lira was devalued in August 2018. Donald Trump’s
administration in the US also imposed sanctions on Iran.
The result of these developments was short-term uncertainty about the flow of foreign
capital in Indian markets till more clarity emerged on the unfolding situation. Remember in
the times of uncertainty, international institutional investors prefer to park their funds in
the US and that too in the safest instrument i.e. US government bonds.
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One other factor adding to complexity was good performance of the US economy. In 2018,
the unemployment rate in the US dropped to multi-year low and in general, economy was
doing well. As a result, international institutional investors expected to get good returns by
investing in the US and cut the dollar inflow in Indian markets.
On the one hand, India needs to import about $6 to 6.5 billion worth of goods every month
more than the exports. In simple terms, that drains out dollar reserves of India to that extent
every month. Even if there is short term uncertainty about the inflow of dollars into India
from abroad, that can have significant adverse impact on rupee. The result of all these
factors resulted in depreciation of Indian rupee from about 65 to a dollar in January 2018 to
about 74 to a dollar in October.
(Reference: https://markets.businessinsider.com/currencies/usd-inr)
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India’s FX reserves depleted from 426 billion dollars in May 2018 to about 390 billion dollars
by October 2018 because RBI had to supply dollars in the market, in the absence of which,
rupee would have depreciated even further.
(Reference: https://tradingeconomics.com/india/foreign-exchange-reserves )
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In the following graph, we can see the variations in crude oil prices in the international
market over the years.
(Reference: https://www.macrotrends.net/1369/crude-oil-price-history-chart)
Steps taken by Government of India to stop rapid depreciation of Indian rupee
In September-October 2018, due to the concerns over the trade war between US and China,
imposition of tariff on Turkey, imposition of sanctions by Trump administration on Iran etc
led to temporary slowdown in dollar inflow into India, which resulted in sharp
depreciation of Indian rupee. Government of India took the following steps to tackle the
same:
1. During Prime Minister Narendra Modi’s visit to Japan in October 2018, India and
Japan signed a currency swap agreement of $75 billion. As a part of this agreement,
India could avail loan up-to $75 billion from Japan at concessional rates. If RBI feels
that there is a downward pressure on Rupee in the future, this loan can be availed of
to support rupee. Why did Japan agree to extend this deal to India? Because
Japanese companies have been given contracts in Indian infrastructure projects such
as bullet train.
India first obtained exemption from the US sanctions for importing oil from Iran
(https://economictimes.indiatimes.com/industry/energy/oil-gas/us-agrees-to-
grant-india-waiver-from-iran-sanctions/articleshow/66454042.cms). Later India
and Iran signed an agreement for using Indian rupee for oil imported from Iran.
(https://www.tehrantimes.com/news/430390/In-a-rebuff-to-U-S-India-Iran-agree-
on-rupee-payment-mechanism) India signed similar agreements with UAE and
Russia. As a result, Indian rupee (and not US dollars) will be used for India’s
bilateral trade with these countries. This will reduce the likely pressure on India’s
foreign exchange reserves in the future.
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the right to life & personal liberty to all citizens. In the recent past, a widespread
movement like India against corruption (2011) was marked by a series of
demonstrations and protests across the country. It intended to establish strong
legislation and enforcement against perceived endemic political corruption. The
movement was primarily one of non-violent civil resistance, featuring demonstrations,
marches, acts of civil disobedience, hunger strikes, and rallies, as well as the use of
social media to organise, communicate, and raise awareness. The spontaneous
outburst of public sentiment is largely considered to be one of the key factors that
toppled the incumbent central government in the next general elections. A dictator,
however benevolent in nature, would have tended to smother such expressions of
public dismay & as a result, would have violated the spirit of personal liberty, a key
feature of a strong democracy
2. The legislature, the government, the judiciary and the press are considered as four
pillars of democracy. Time & again, these pillars have reflected public opinion at large
& helped genuine victims who sought justice. Criminal Law (Amendment) Act-2013
was brought against the backdrop of the country-wide outrage over Delhi gang-rape
case in 2012 to provide a strong deterrent against crimes like rape. Only a model of
strong democracy can entertain & appreciate public demands towards a strong cause
3. In the initial years of NDA governance, it did not hold a majority in the Rajya Sabha,
hence quite a few bills that were important to the government could not be passed &
converted into a law. The government, at times, tried to circumvent the Rajya Sabha
route by proposing ordinances & pushed for the President’s consent to pass them. The
President, however, turned them down on quite a few occasions narrating that
ordinances should be passed as one-off instances, only when the parliamentary
session is not on & should not become a precedent to take a deviation from the
standard parliamentary norm to fulfil vested interests of a ruling party. In case of a
dictatorship, it will be much easier to fulfil such vested interests. A similar instance in
2016 when democratically elected Uttarakhand state government was ousted by the
central government but re-installed later by the Supreme court, which is another
crucial pillar of democracy. Such controls only make the democracy strong
4. Finally, the Indian armed forces have never tried to over-power the democratically
elected government in spite of differences, at times. This is due to the deep-rooted
respect for democracy. As a result, India never faced an anarchy unlike a few
neighbouring countries & law and order situation, by and large, remained intact in
most parts of the country. In fact, act like Armed Forces (Special Powers) Acts
(AFSPA), 1958 that empowers the Indian Armed Forces to conduct search, arrest or
shoot to kill people without warrant also came under a heavy scrutiny & was revoked
from a few states due to alleged instances of misuse. A dictatorship, however
‘benevolent’ it claims to be is less likely to give such freedom to judiciary & people
against its own armed forces
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Classrooms of 2030
What is your envision of a classroom in the year 2030? With technology playing a pivotal
role in every aspect of human life it won’t be a surprise to see its impact on the changing
architecture of a classroom in about a decade from now. While we already know that the
learning process has already changed in the past few years, for instance we do have online
posting of grades and assignments, students are already using cloud storage to store their
notes, students from different countries are attending classroom lectures conducted
virtually. Also, we can see the steady rise in E-learning apps and how they are gaining
popularity with students of all age groups. So, yes there is metamorphosis of education in a
big way. Thus, coming back to the question of how the classroom in 2030 would look like?
Let’s imagine some of the broad facts.
Layout of the classroom
The traditional classroom setup with rows of desks and chairs with students staring at a
black/ white board with the teacher delivering a lecture will become a thing of the past as
the method to disseminate knowledge will change. The class room design will not be one
template for all. It will be flexible. Class room will be designed to understand student’s
comfort and how to make the environment conducive for a student to absorb more
knowledge. Classrooms will be there to optimize the knowledge absorption of the students,
thus, perhaps the seating arrangements will be flexible so as to cater to the aptitude of the
students for instance some absorb knowledge better while standing and so on. Private
workstations and collaborative work spaces will be provided. Interactive projectors will
replace will replace blackboards/ whiteboards.
MOOCs: A potential game changer
As classrooms go beyond the walls of traditional schools and break all geographical
boundaries, it will make education accessible to all through the rise of Massive Open Online
Courses (MOOCs). With MOOCs, students will be able to master multiple subjects. So, by
the time they finish high school they have already mastered multiple subjects according to
their aptitude. Also, MOOC is free to users and cheaper to deliver for providers and offers
opportunities for flexible learning, and open up education to a vast audience. Although
MOOCs have been slow on their take off at least for schools but by 2030, it will become one
of the preferred mediums to disseminate knowledge. Why? Simply because it increases
accessibility to knowledge as it is independent of geographic locations, and as the walls of
the traditional schools disappear or become more flexible, MOOC will become a popular
choice.
Flexibility in learning style
One size fits all learning style will be a thing of the past. In the present scenario students
irrespective of their aptitude has to work on assignments in the same way, whereas in the
future because of technological help students will have flexibility of assignments and the
teacher’s primary role will be to analyse the competency of the student. For instance,
instead of one way of presenting an assignment, students will be given an overview of the
subject or the concept that they need to demonstrate through the assignments, but they will
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have the freedom to use different mediums according to their aptitude to demonstrate their
understanding of the subject.
Virtual and augmented reality
Now, coming to the most crucial aspect of classroom of 2030 is that classes will become 3D
instead of 2D. Classrooms will have interactive projectors. For instance, if it is a class
showing how a volcano erupts, students will be looking at 3D and thus will be able to
understand the different landforms and see the spectacular phenomenon almost as if they
are seeing it in real time. With Augmented Reality becoming a part of classroom learning,
when students will open a book, instead of seeing a flat image of a planet the students will
on a pair of special glasses and a 3D image will pop out at them. Augmented Reality (AR) is
the way forward. Apps and other educational devices act upon trigger images to create an
augmented reality. So, what does AR do? AR gives humans a computer-generated
environment from “real world” surroundings. AR merges one’s perception of the real
world into a digital format. Thus with Holographic technology, once the image is
processed, it looks like a 3-Dimensional object. Lasers create various kinds of holograms
and video projections. There are Universities that are using AR in the classroom. At present,
Case Western University in Cleveland, Ohio, uses holographic technology to teach physics
and anatomical instruction at its Medical school.
Thus, looking at the following aspects, the question is what does this mean for the
classroom of 2030? It definitely means that Geography and Finance will cease being a
barrier for students to access knowledge and teachers to disseminate knowledge. It also
means that learning styles will become flexible catering to individual aptitude. Also, with
Holographic technology studying several subjects will become more effective, such as
Medicine, Physics, Geography and so on.
Another major change that one could assume is that the teachers won’t be the authoritarian
figures as they are today, rather their role will be more of a mentor. And, schools will
become more student-centric, in terms of flexibility and making it conducive for their
learning. The aim would be not to just get degrees, but to acquire knowledge and
competency in their field of interests. Thus, industry experience certificates will become very
important to get a job in that particular industry and not just a University degree, as that
would test a student’s applied knowledge in that subject.
Now, the question is, will the traditional classroom still exist? Yes, at least in 2030, we can
say that they will still be standing and operating, alongside the new age classrooms, but will
they be as popular as they are now, is something that we have to wait and see. Definitely,
with interactive learning facilities, it will provide a greater impetus to effective learning. Just
the thought that a student who is struggling with math can use technology that would help
to make equations come alive – with physical representations of what the numbers mean,
gives us a fair idea of the exciting future of knowledge dissemination that awaits us.
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like India to skill and protect their workers - and not Globalization - that caused this
distress.
• Globalization’s benefits have brought many countries food security, fiscal stability and
energy independence. However, this has also brought aboutimmense social changes
such as immigration. Add to that the global financial slowdown, and many people
across countries believe that globalization is detrimental to their own and the
country’s economic well-being.There is a belief that Isolationism will help in curbing
any social ills. However, proponents of isolationism do not state how withdrawing
from the global arena will solve these problems. At best, an isolationist stance is a
chimera that has not delivered any solutions as yet.
• Also, governments are motivated to limit and alter market outcomes for political or
social ends. While governments can limit the rise in prices of some products, they
cannot control how much people want to buy or how much firms are willing to
sell.The laws of demand and supply still hold.
• Furthermore, Isolationism may temporarily create jobs for domestic workers. The
protection of tariffs, quotas or subsidies allows domestic companies to hire locally, but
again, if a company in a protectionist state wants to expand, they won’t be able to.In
the long term, trade protectionism weakens the industry. Without competition,
companies within the industry have no need to innovate. Eventually, the domestic
product will decline in quality. It will be lower quality and more expensive than what
foreign competitors produce.
• One example that is often propagated is that China has gained from an Isolationist
policy.It is said that modern day China originated from one of the oldest civilizations
in mankind and has kept its power and solitude by isolating themselves. However, it is
often forgotten that the huge growth in economy was prompted by restructurings
initiated in the 90s by Zhu Rongji, fifth Premier of China, who advocated market
reforms, open economy and increased intermingling with the global community. This
lead to double-digit growth of the Chinese economy and its increased assertiveness in
international affairs. Thus, advocates of Isolationism often ignore the benefits of
Globalization and clamor for chopping off the branch that bore the fruits of financial
stability in the first place.
Yes, Isolationism is the Answer:
• The backlash against globalization draws its force not onlyfrom the perceived damage
done todeveloping countries by global market forces but also from the inequities in the
global tradingsystem. Many developing countries, including Venezuela, Zimbabwe
and Greece, have been assisted by multilateral organizations to helpthem adjust to
crises and imbalances. Unfortunately, this has had a cascading effect which led to
more hunger, discontent and riots in many countries. Even when results were not so
dire and there was some growth for a while - such as in the cases of Haiti, African
countries, Sri Lanka and Pakistan, all of whom benefited with Chinese and American
help - often the benefits went disproportionatelyto the elite, with those at the bottom
sometimes facingeven greater poverty.
• In his book ‘Globalization and its Discontents’, noted author Joseph E Stiglitz observes
that, “riots and protests against the policies of and actions by institutions of
globalization are hardly new. For decades, people in the developing world have rioted
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when the austerity programs imposed on their countries proved to be too harsh, but
their protests were largely unheard in the West. What is new is the wave of protests in
the developed countries”. From this, it is clear that even people in developed countries
- the very same which were the torch-bearers of globalization - are agitating against
globalization and pinning for an isolationist stance. In that case, what moral authority
do the developed countries have to carry on with globalization with a zealous
approach? “ Let us view the example of the erstwhile Soviet Union. Globalization and
the introduction of a market economy have notproduced the promised results in
Russia and most of the other economies that were making the transition from
communism to the market.These countries were told that the new economic
systemwould bring them unprecedented prosperity. Instead, it broughtunprecedented
poverty. For most of the people, themarket economy proved even worse than their
Communist leaders. Today, many of thesecountries are wary on getting entangled in
multilateral treaties and like to pursue a balanced approach that does not encroach on
their financial sovereignty.
• Offshoring is a deliberate policy of multinational corporations to weaken domestic
labor and boost profits.The ability of companies to allocate jobs globally changes the
nature of the discussion about the “gains from trade.” In fact, there are no longer
guaranteed “gains,” even in the long run, to those countries that export technology
and jobs. If countries like China combine Western technology with lower labor costs,
trade with them will depress Western wages. Citizens of the West will have cheaper
goods, but being able to purchase groceries 20% cheaper does not necessarily make up
for wage losses.
• Between 1991 and 2013, China’s share of global manufacturing exports increased
from 2.3% to 18.8%. Some categories of US manufacturing production were wiped
out. The United States might gain “eventually.” But the gains might take “decades” to
be realized, and would not be equally shared.
Globalization and Isolationism hold many different characteristics. Although both of them
are very different, both have greatly affected many aspects of society such as trade,
employment rate, and diversification within the economy. Each nation and its people must
evaluate the pros and cons to arrive at the right mix of policies that is suitable for their
growth and development.
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In India, the history of High Speed Rail (HSR) started with an announcement made in the
Rail Budget of 2000-2001 about high speed railways, which resulted in a general feasibility
study done by Rail India Technical and Economic Service (RITES). The signing of a pact for
the Mumbai-Ahmedabad High-speed rail corridor - a massive project involving a cost of
98000 crore rupees - created news in the mainstream media. Both India and Japan have
invested time, energy and diplomatic resources in this showpiece project for which the
Japanese are committed to advancing a loan of 8 billion dollars. India has inched closer to
getting a bullet train after Prime Minister NarendraModi and Shinzo Abe laid the
foundation for the high-speed train network. It will cost Rs. 1.1 lakh crore to see this
ambitious project through. Indian Railways, with help from Japan government, is now set
to begin work to set up a 500-km route for high-speed trains between Ahmedabad and
Mumbai. Railways Minister PiyushGoyal has indicated that the bullet train project will be
completed by August 15, 2022, one year before the official deadline of December 2023.
Japan has offered to lend India a soft loan of Rs. 88,000 crore at an interest of 0.1 per cent.
The loan will have to be paid in the course of 50 years, with a moratorium of 15 years.
Although, the bullet train project brings with it several promising prospects, there also exist
hurdles which might hinder them.
Points in favour of bullet trains:
• High-speed connectivity - The bullet train running between Ahmedabad and Mumbai
will cover the distance of 508 km within two to three hours. The project is supposed to
connect bustling economic corridors in the states of Gujarat and Maharashtra. This
will facilitate economic growth.
• Convenience and Comfort –TheShinkansen high-speed trains(colloquially called as
bullet trains for their appearance and speed) would provide comfortable journey
within just a few hours. The conventional Indian Railways lag considerably on the
comfort level of train journeys and the introduction of bullet trains would be a great
development in this factor.The train will have wheelchair-friendly toilets, feeding
rooms for new-borns, and other features for comfort and safety.Also, the bullet train
has several advantages over air transport, including scheduling frequency and
flexibility, punctual operation, comfortable seats, and convenient city-centre terminals.
• Safety - Safety has been one of the major concerns of Indian Railways.The record of
bullet trains in the field of safety has been impeccable.The Shinkansentrains of Japan,
started in 1964, have reportedzero fatalities till date.
• Employment - The bullet train project will create employment. The project is expected
to create 4,000 direct job opportunities, along with 20,000 indirect jobs. 20,000
construction workers will also be employed during the set up period.
• Urban expansion - New bullet train stations set to come up along the route will attract
urban growth and lessen the burden of settlement and migration in major cities.
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• Open new avenues - When completed, the Ahmedabad-Mumbai bullet train project
will present as a favourable destination for high-speed train technologies.
• The purpose of creating an HSR Corridor is not to simply showcase speedy travel. The
main takeaway is stringing in 10 other cities and ushering in development along the
way.
• Once operational in 2023, the high-speed service will cut travel time between the cities
to two hours from the current eight hours. The other advantages included safety,
comfort and reduction in commuting time, addressing issues of regional imbalance
and reducing pressure on growing urban areas.
• Proponents of high speed rail argue that the lines will reduce traffic burdens, provide
an environmental benefit, and create jobs. If people come to favour the high speed rail
lines over transit by car, especially over longer distances, there will be a positive effect
for the environment, as far less pollution will be created overall. In addition, this will
reduce traffic congestion, leaving far less people on the roads.
• The act of the creation of the rail line will in itself provide a benefit - many workers
will be needed to work on the project, providing economic stimulus. In addition, if the
high speed rail does indeed make travel easier and cheaper, many who would have
previously been unable to may be able to get jobs further away from their homes.
Supporters of high speed rail say that the benefit to the community, the environment,
and the economy far outweighs any costs.
Points against bullet trains:
• Land acquisition - Acquiring new land pieces for laying down the tracks for bullet
trains and constructing new stations might face legal hindrances, delaying the
process.
• Stoppages - With limited stoppages (only two in Vadodra and Surat), the
Ahmedabad- Mumbai bullet train will complete its journey in 2 hours, where
increasing the stoppages will increase the journey time up to three hours.
• Profitability - The origin stations - Ahmedabad and Mumbai - have airports and
passengers from these cities could consider taking a flight instead of boarding the
bullet train..
• A total of 80 per cent of the funds for the project will come from Japan, and will have
to be returned after a period of 15 years. The profits this project make will decide how
easy or difficult it will be for India to pay this loan back.
• India is seeking loans to build the HSR but is ambivalent in the approach to acquiring
technology and indigenous manufacture of high-end components in the traction
chain. Essentially, India’s Ministry of Railways projects the image of a buyer of rolling
stock rather than that of a technology seeker.
• The infrastructure projects required for HSR are meant for the elite and not the
middle- class passengers.
• The cost of laying a bullet-train corridor is estimated to cost up to Rs 100 crore a
kilometre. After summing up the costs of signals, rolling stock, etc, the cost can rise up
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to Rs 115 crore a km. thus, one of the major disadvantages includes high capital cost,
operation and maintenance cost, and need to change alignment. Another important
dissuading factor is that planning and implementation could take a long time, while
change of government could upset the project.
• The high speed rail program will just eat the budget and reap no real rewards. Critics
argue that very few people will take the trains, opting instead for the freedom offered
by personal automobiles and/or airlines. Some also claim the prices for high speed rail
tickets might be too expensive for many people to take the trains regularly.
• This lack of riders will render the supposed benefits of the high speed rail network
moot. Given the amount of government funding that is being used on the project and
the doubter’s lack of belief in its success, they argue that the funding should be instead
used for improving the current transportation infrastructure.
• Proposed systems and technologies like Maglev &Hyperloop might make investing a
humongous capital on bullet train seemobsolete.
• Noise pollution - Noise pollution concerns make it difficult to increase the speed of
these trains. In Mumbai & Ahmedabad, the population density is high leading to
limits on noise levels in residential areas.Thus, it would be necessary to reduce
operational noise, particularly the tunnel boom phenomenon caused when trains
transit tunnels at high speed.
Conclusion: The future of high speed rail is rapidly approaching, with many lines planned
and some already constructed, but whether this future will be a good one is in question.
There’s no way of telling at this juncture whether the project is a boon to the country or an
albatross that will weigh the country down.
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WAT-Topics
Current Affairs
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Abstract
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Argumentative
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