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Daily News Simplified -

DNS
07 09 20
Notes
SL. THE HINDU
Title NO. 1. Mixed messaging: India’s TOPICS
integration into global value chain (GVCs) – Prospects and
PAGE NO.
challenges (The Hindu - Page No. 06)
Syllabus Mixed messaging:
Mains: GS Paper III:India’s integration into global value chain
Indian Economy
Theme 1 Integration of Indian economy into Global Supply Chains 06
(GVCs) – Prospects and challenges
Highlights Recently, Prime Minister Narendra Modi addressed the US-India Strategic Partnership Forum. In
Courts drift and
his speech, chinks
PM Modi in the
pitched for judiciary armour: into
greater investment Problem withUS-based Companies so that
India from
2 06
theIndian Economy
master of thegets integrated
roaster systeminto Global Supply Chains. Now, the call for Integration of Indian
Economy into Global Value Chains has been appearing in the newspaper repeatedly and hence
3 Research
becomespaper calls important
extremely for the change in perspective
from the the India’s of
Forest Policy
Examination. 04

4 Close1.old power
Budget plants:
2020-21Prelims pointer the
had highlighted on India’s energy
need for sector
"Assemble 10 lines of "Make
in India" on the
in India".
5 Government
2. suspends
Volume FCRA liscence
I: Chapter of four Christian
5 of Economic group Creating Jobs01and Growth by
Survey 2019-20:
Specializing to Exports in Network Products
6 Policy
3. lessons
Japaninhas
Tamil Nadupitched
recently language
for formula - Reference
Supply Chain 06 as a trilateral
Resilience Initiative (SCRI)
approach involving India, Australia and Japan. Once again, this initiative is to reap the
benefits of the Global Supply Chains (GVCs) and to reduce dependence on China.
4. This editorial here highlights that a large number of US-based companies are keen to
relocate from China and hence PM Modi has pitched for India as alternate destination. This
would enable India to get integrated into Global value Chains and reap multiple benefits.
 
Now, the Integration into GVCs has the potential to bring about structural shift in our economy-
From Agriculture to Manufacturing, From Low-end Manufacturing to high-end Manufacturing,
From Self-Employed and Casual Workers to Salaried Workers, From lower Productivity to higher
productivity. The Integration of Indian economy into GVCs is considered as a strategy to not only
help us realise
Date: 07.September.2020DNS Notes - Revision

the vision of $ 5 trillion economy, but also enable us to Double farmers Income as well.

In recent times, phenomenal rise of China as Manufacturing Hub and its emergence as Economic
powerhouse has been linked to its successful Integration into GVCs. Even, a number of smaller
economies such as Vietnam, Indonesia, Malaysia etc. have reaped huge benefits from integrating
with GVCs.

This topic of " Global Value Chains: A Tool for Structural Transformation of Economy" is
extremely important from the perspective of UPSC Mains. Hence, we shall focus on the following
dimensions keeping in mind, the requirements of the Examination.

1. Understanding Global Value Chains (GVCs)


2. Measurement of Country's Integration into GVCs
3. Evolution of GVCs across the World
4. Why should India get Integrated into GVCs?
5. Reasons for India's Poor Integration into GVCs
6. Way Forward
 
What are Global Value Chains?

GVCs refer to the full range of activities (design, production, marketing, distribution and support
to the final consumer, etc) that are divided among multiple firms and workers in multiple
countries to bring a product from its conception to its end use and beyond. The Global value
Chains(GVCs) have been developed for number of products such as Automobiles,
Pharmaceuticals, Textiles, Electronics, Chemicals, Gold and Jewellery etc.
 

The iPhone is a good example to understand how GVCs work. The US prepares the iPhone design
and prototypes, while Taiwan and South Korea produce critical inputs such as integrated circuits
and processors. Final assembly takes place in China from where the iPhones are marketed all
over the world. The value addition done in China is hardly around 5%, but still China has
immensely benefitted from its Integration with GVCs leading to increase in FDI, Exports,
Employment and consequently higher GDP Growth.
Date: 07.September.2020DNS Notes - Revision

 
Measurement of Country's Integration into GVCs

To understand the extent of Country's Integration into GVCs, we need to look at the share of
Value-added Goods and Services in the overall exports. From perspective of India, these Value-
Added Goods and services could be of two types:

 
Foreign Value Added (FVA): Under this, India imports Goods from other countries and then does
value addition before exporting them. So, India is basically relying on foreign imports to export
value-added Goods and hence it is referred to as Backward Linkages in GVCs.

1. Raw Materials imported from USA --> Value Addition in India--> Export of Intermediate
Goods to China --> Value addition in China --> Export to Japan.
2. Raw Materials imported from USA--> Value Addition in India--> Export of Final Goods to
China.

Domestic Value Added (DVA): Under this, India either supplies the Intermediate Goods or Final
Goods to other countries without relying on foreign Imports. So, here, India is doing value-
Date: 07.September.2020DNS Notes - Revision

addition to its own domestic Goods and then exporting it to other countries and hence it is
referred to as Forward Linkages in GVCs.

1. Exports of Final Goods from India to USA


2. Export of Intermediate Goods to USA--> Value addition in USA--> Sold in US Market
3. Export of Intermediate Goods to USA--> Value Addition in USA--> Export of Final Goods
to Japan.
 
Evolution of GVCs across World

The overall share of GVC Trade in the total world trade stands at around 50%, which clearly
highlights the significance of GVCs. In particular, the GVCs have registered phenomenal growth
post 1990s on account of following reasons:

1. Declining air and sea freight costs


2. Growth in ICT technologies leading to increase in Trade in Services
3. Decrease in the trade barriers across the world after formation of WTO
4. Free flow of foreign Investment and Technology
5. Emergence of European Union and China as major links in GVCs
6. Relocation of Production centres to countries having cheap labour force etc.
 
Why should India get Integrated into GVCs?

Bangladesh presents an excellent example as to how participation in global value chains (GVCs)
leads to multi-faceted benefits. In 1980's Bangladesh’s exports of apparel and footwear were
negligible. However, since then, the business of exporting apparel made from imported textiles
has grown on average by nearly 18 percent a year. Bangladesh now exports 7 percent of the
world’s apparel and footwear, third only to China and Vietnam. The apparel sector accounts for
90 percent of the country’s exports and 14 percent of GDP, and it employs 3.6 million workers,
55 percent of them women. This clearly highlights that GVC participation promotes development
beyond what countries can achieve through standard trade.

Economic Growth and Development: According to World Bank, 1 percent increase in the level of
GVC participation increases average productivity by 1.6 percent and per-capita Income by more
than 1% in long-run. This is on account of following reasons:

 Provides fast track route to Industrialisation since there is no need to build entire supply
chain right from scratch. Joining the existing Supply chain established by Advanced
economies would be sufficient enough to promote Industrialisation.
 Better access to a greater variety of higher-quality or less costly intermediate inputs
 No need for firms to focus on entire supply chain and instead focus on specialised tasks
leading to Hyper-specialisation.
Date: 07.September.2020DNS Notes - Revision

 Transfer of technology and know-how from the foreign partners.


 Promotes collaboration rather than competition between Domestic and Foreign Firms
wherein each of them focus on specialised task in the production cycle. Both Domestic and
Foreign firms collaborate with each other in order to minimise the costs and maximise the
profits.
 Knowledge Intensive firms in other countries would share product innovations with
Indian Firms and thus provide scope for the Indian firms to move higher up the value chain
 Increase in Employment creation and Exports

Increased Job Creation and Labour Welfare:

 Potential to provide fillip to Manufacturing sector leading to structural change in Indian


Economy.
 Shift in the Workers from agriculture to Manufacturing.
 Higher Paying Jobs accompanied by Social Security benefits
 Induce shift in type of employments from Self-employed and Casual workers towards
Salaried Workers

Socio-Economic Transformation: GVCs support employment of not just men, but also women.
Notably in the apparel and electronics sectors, where assembly of many small parts must be
done manually, firms report preferences for female employees because of the high levels of
dexterity required. Thus, as seen in Bangladesh, higher employment creation for Women would
have following benefits:

 Higher Expenditure on Girls' Education


 Decline in IMR and MMR
 Political, Economic and Social Empowerment of Women

Doubling of Farmers' Income: Even though, India is one of the largest producers of Agri-
commodities, its share in global exports stands at merely 2.2% (9th Rank). This clearly highlights
India's poor Integration into Global agricultural supply chains. Hence, greater integration would
translate into expanded market access and higher prices for the farmers leading to doubling of
their income levels.

Higher Resilience: According to OECD, Integration of economies into GVCs lead to resilience,
stability and flexibility in their production network and hence capable of responding to domestic
shocks. On the other hand, economies which are less integrated into GVCs are more vulnerable
to shocks and hence may see decline in economic activity and fall in National incomes in
response to domestic shocks
 
India's Poor Integration into GVCs

According to OECD-WTO’s TiVA (Trade in Value Added) database, India’s GVC participation index
stands at 43, as compared to 52 for Vietnam and 60 for Malaysia. The GVC participation index
displays a country’s integration into the GVC and is the sum of forward and backward linkages
divided by total exports. The foreign value added of India's Gross Exports (Forward Linkages) has
reduced from 25% (2012) to 16% (2016).

Some of the reasons for India's poor Integration into GVCs are as given below:

 Historical Reasons: Inward-looking Industrial policies with focus on State-led


Industrialisation, Import-substitution, Licence-raj System etc.
Date: 07.September.2020DNS Notes - Revision

 Lack of Lead Firms in India: The lead firms are the firms that establish supply chains
across the world and hence major drivers of GVCs. For example, in India, Tata Motors
(Automobile) and Ranbaxy (Pharmaceuticals) have emerged as lead firms by attracting
foreign Investment, transferring technology, establishing supply chains etc. However, there
is a need to have such lead firms in almost all sectors.
 Higher Focus on Domestic Market: Indian Firms have traditionally focussed on Indian
Domestic Market since it is quite large. However, they have failed to realise that
integration into GVCs would give them much wider market.
 Inward Oriented FDI Policy: Countries such as China and Vietnam have been inviting
MNCs with GVC linkages to their countries leading to their Integration. However, India has
so far not given due-emphasis on this aspect of FDI policy.
 Lack of Focus on R&D leading to limited knowledge transfer
 Lack of access to Finance- Higher Dependence of Banks, Under-developed Bond Market
etc.
 Inability of the Government to bring about long-pending Labour Reforms
 Lack of availability of skilled manpower in crucial sectors Electronics.
 Higher Logistics Cost (14%) as compared to USA (9%) and Japan (11%) - leading to
Uncompetitive Indian exports.
 Poor Focus on Quality due to higher share of Small scale enterprises
 Inverted Duty structure making import of Finished Goods cheaper
 
 

Way forward

The Government should address the various constraints highlighted above in order to
successfully integrate Indian Economy into GVCs. India should target the entire production cycle
in the Smile Curve of the Global Value Chains (GVCs). In some of the selected products such as
Automobile, Pharmaceuticals etc, India needs to focus on high-end activities such as
Conceptualisation and Design in order to reap its expertise in R&D, technology. On the other
hand, India must also focus on lower-end of the curve (Production and Assembly) in order to give
fillip to "Make in India" and "Assemble in India".
Date: 07.September.2020DNS Notes - Revision

Personal
Notes
Date: 07.September.2020DNS Notes - Revision

Title 2. Courts drift and chinks in the judiciary armour (The Hindu - Pg 6)
Syllabus Mains: GS Paper II: Polity & governance
Theme Problem with the master of the roaster system
Highlights Context:
As per the Indian Constitution, the Supreme Court is required to act as guarantor of FRs. It is
required to keep a check on the powers of the executive and ensure basic rights to Indian
Citizens. However, many legal scholars and legal luminaries have highlighted that in recent
times, there has been marked shift in the stance of Supreme Court from Rights based court to
Executive court.

What do you mean by Executive court? A Executive court is a court that fails to keep a check on
the executive powers. It means that a court instead of being neutral and impartial in its
Date: 07.September.2020DNS Notes - Revision

judgements delivers verdicts in the favor of the Government. This in turn leads to political
interference in the functioning of Judiciary, shatters the image of the judiciary in the eyes of
people and leads to loss of trust and confidence of people in Judiciary.

1. Acceptance of Post-retirement Jobs by the Judges


2. Pro-Government CJI
3. Master of Roster

Now, this issue of Master of Roster is quite important since in the year 2018, 4 SC Judges held a
press conference to register their differences with the then CJI. It was considered to be
unprecedented since normally internal conflicts within Judiciary do not come out openly. In the
press conference, the 4 SC Judges had highlighted that the CJI was misusing his powers as
"master of roster" by selectively allocating politically sensitive cases to certain selected benches
in order to get a favorable verdict.
 
Now, this particular article is written by A.P Shah, who is former Chief Justice of Delhi and
Madras High Court. This article is highly critical of a particular SC Judge who has recently retired.
Now, keeping this thing aside, we will consider only those aspects of the article which is
relevant from the UPSC Exam.
 
Article 145: Supreme Court with the approval of the President may make rules regulating the
practice and procedure of the Court.

Master of Roster which refers to the privilege of the Chief Justice of India (CJI) to constitute
benches to hear cases. Roster is prepared by the Registrar of Supreme Court under the orders
of CJI.

The Roster may contain:

 General or specific instructions regarding assignment or allocation of case to a particular


Bench
 Also includes allocation of work of a Bench, on account of non-availability of Judges to
another Bench.
 
Procedure to allocate cases:

 There is no written procedure in the top court that is followed to allocate cases.
 When a case is filed, its details and subject matter are scrutinized by the SC registry,
which receives and processes all documents.
o The cases are then categorised on the basis of subject matter. There are 47
broad categories such as letter petitions, public interest matters, taxation, service
matters and criminal appeals. Each category has multiple sub-categories.
 The registry notifies the roster for the benches, which is done on the basis of the
subjects (or categories), and the CJI approves it. More than one bench is allocated the
same subject matter.
 The CJI can issue a specific instruction to list a case before a particular bench.
o The CJI, as the master of roster, has the right to mark the sensitive cases to
specific benches. As the institution’s head, the CJI also has the discretion to set-up
larger benches.
 The CJI is informed by registry officials that a case is sensitive.
o It is then left to the CJI to decide if he wants to mark it as per the roster, retain
it with himself or let another bench hear it.
Date: 07.September.2020DNS Notes - Revision

o As per convention, the CJI, on being informed in advance, either hears the
matter or refers it to the top four judges in seniority after him.
 
Issues raised here:

No written procedure to allocate the cases. Discretionary powers in the hands of CJI may be
misused to allocate cases to certain selected benches to a get a verdict in favour of
Government.
 
Way Forward

 Allocation of cases to benches should be free from bias- random computer allocation.
 Allocation based on subject expertise of the Judges
 Politically sensitive cases should be handled by larger bench.
 Cooling-off period for the Judges.
 Recuse themselves from hearing of cases on account of perceived conflict of Interest.
Date: 07.September.2020DNS Notes - Revision

Personal
Notes
Date: 07.September.2020DNS Notes - Revision

Title 3. Research paper calls for the change in the India’s Forest Policy (The Hindu Page 04)
Syllabus Mains: GS Paper III: Environment & Ecology
Theme India’s Forest Policy

Highlights Context:
 Domestic timber production has slumped while imports soared because of decades of
policies which were focused on conservation instead of production.
 In this regard a paper has been published, which demands a relook at the forest
policy.

So what is the Background?

 Until the 20th century, forests across the globe were specifically managed for timber
production to meet industrial demand, and there was increasing pressure to divert
forest land for agricultural use to meet the demands of the growing population.
o The Food and Agriculture Organization (FAO) estimated an annual loss of
about 16 million ha of forest between 1990 and 2000 due to agricultural use,
timber removal and natural causes, with a higher rate of loss in Latin America,
South East Asia and Congo (FAO, 2010).
 However, with an increasing emphasis on biodiversity conservation, the principle of
managing forests shifted to their sustainable use rather than exclusively managing
them for timber production.
 As a result, existing forest policies, laws and national forest programmes in various
countries across the globe were revised to promote sustainable forest management
and biodiversity conservation, and to restrict uncontrolled timber logging.
 Additionally, more forest land was designated for the conservation of biological
diversity under the new management plans.

So what was the impact of the shift in focus to conservation?

 Such regulations on tree felling reduced the supply of timber from government
forests starting in the mid‐1990s, while the demand for timber has significantly
increased due to population growth, infrastructural development, economic growth
and industrialization.
 This has resulted in a huge gap in timber supply and demand due to a shortage of
production from domestic sources, thus leading to a sevenfold increase in imports
over the past 20 years.

Hence the option of increasing timber production from trees outside forests (TOFs) to meet
domestic demand also gained importance.

So what is Trees Outside Forests


 Trees grown outside government recorded forest areas (RFAs)

Why were we not able to project the shortage?


 Lack of reliable data relating to growing stock,
 non availability of consumption and production of timber

Increase in demand of Timber:


 The domestic demand of timber is growing owing to increasing population and per
Date: 07.September.2020DNS Notes - Revision

capita GDP.
 And the dependency on imports could backfire as exporters worldwide were shifting
to a conservation-based approach, warranting a revision in the Indian policy to boost
domestic production.

Benefits of Timber production from trees outside forests (TOFs)

 Massive potential
o Timber production from government forests to be 3.17 million m³ and
potential timber production from TOFs to be 42.77 million m³.
 Climate change mitigation
o Increasing wood production will also push carbon sequestration, and help in
mitigating effects of climate change
 Boost to rural economy
o Increasing timber production from TOFs can revive the rural economy

The changes which have been recommended?

 The conservation policy must focus on maintaining ecological balance and improving
biodiversity through protected area management.
 The restoration policy must target reclamation, rehabilitation and regeneration of
degraded landscapes and wastelands.
 Production forestry should focus on “sustainable increase in forest productivity from
TOFs and RFAs”.
 To boost production through RFAs, the paper recommends, States must devise
working plans and demarcate 10% of the forests for plantations. For TOFs, a
synchronised nationwide policy could be developed.

Few Definitions:

Recorded Forest Area


 Forest Area recorded as forests in Government records.

Forest Cover

 All lands, more than one hectare in area, with a tree canopy density of more
 than 10 percent irrespective of ownership and legal status. Such lands may not
 necessarily be a recorded forest area. It also includes orchards, bamboo and
 palm.

Reserved Forests

 These forests are under the direct supervision of the government and no public entry
is allowed for collection of timber or grazing of cattle. About 53 per cent of the total
forest area falls in this category.

Protected Forests

 These forests are looked after by the government, but the local people are allowed to
collect fuel-wood/timber and graze their cattle without causing serious damage to the
forests. These forests occupy about 29 per cent of the total forest area of the country.
Date: 07.September.2020DNS Notes - Revision

Unclassified Forests
 The unclassified forests are those in which there is no restriction on the cutting of
trees and grazing of cattle. About 18 per cent of the total forest area of the country
falls under this category.

Personal
Notes
Date: 07.September.2020DNS Notes - Revision

Title 4. Close old power plants: Prelims pointer on India’s energy sector (The Hindu Page 10)
Syllabus Prelims: Environment & Ecology

Theme India’s energy sector


Highlights Context:
According to recent analysis carried out by Climate Research Horizon, shutting down thermal
power plants which are more than 20 years old can lead to financial savings of around Rs
53,000 crores. These savings are on account on mainly 2 reasons -
1. Not having to spend on retrofitting these old power plants to reduce the toxicity of the
emissions.
2. Savings due to shift towards Renewable Energy
Apart from that, the article also highlights that India has surplus power generation capacity
wherein several states have installed capacity that is far higher than their actual
requirements.
Date: 07.September.2020DNS Notes - Revision

Personal
Notes
Date: 07.September.2020DNS Notes - Revision

Title 5. Government suspends FCRA liscence of four Christian group (The Hindu Page 01)
Syllabus Mains: GS Paper II: Polity & governance

Theme The Foreign Contribution Regulation Act


Highlights Context: Licence provided by Ministry of Home Affairs (MHA) under The Foreign Contribution
Regulation Act (FCRA) is necessary or mandatory for a non-profit organisation to receive
foreign funds in India. MHA has suspended FCRA licence of six NGOs out of which 4 are
Christian Associations. Concerns have been raised regarding the impact of U.S.-based
evangelical donors as they indulge in religious conversions in India.  

Foreign Contribution (Regulation) Act, 2010

 FCRA, 2010 was enacted to consolidate the law to regulate the acceptance and
utilization of foreign contribution or foreign hospitality by certain individuals or
associations or companies and to prohibit acceptance and utilization of foreign
contribution or foreign hospitality for any activities detrimental to national interest.

To whom FCRA is applicable?

 As per Section 1(2) of FCRA, 2010, the provisions of the act shall apply to:
(i) Whole of India
(ii) Citizens of India outside India; and
(iii) Associate Branches or subsidiaries, outside India, of companies or bodies
corporate, registered or incorporated in India

Who can receive foreign contribution?

 Any “Person” can receive foreign contribution subject to following conditions


(a) It must have a definite cultural, economic, educational, religious or social
programme.
(b) It must obtain the FCRA registration / prior permission from the Central
Government, specifically Ministry of Home Affairs.
(c) It must not be prohibited under Section 3 of FCRA, 2010.

Who are prohibited to receive foreign contribution?

 As defined in Section 3(1) of FCRA, 2010, the following are prohibited to receive
Date: 07.September.2020DNS Notes - Revision

foreign contribution:
(a) candidate for election;
(b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a
registered newspaper;
(c) Judge, Government servant or employee of any corporation or any other
body controlled or owned by the Government;
(d) member of any legislature;
(e) political party or office bearer thereof;
(f) organization of a political nature as may be specified by the Central
Government.
(g) association or company engaged in the production or broadcast of audio
news or audio visual news or current affairs programmes through any
electronic mode, or any other electronic form or any other mode of mass
communication;
(h) correspondent or columnist, cartoonist, editor, owner of the association or
company referred to in point (g).
(i) Individuals or associations who have been prohibited from receiving foreign
contribution.

How can permission to accept Foreign Contribution be obtained?

 There are two modes of obtaining permission to accept foreign contribution


according to FCRA, 2010:
(i) Registration
(ii) Prior Permission

What are the eligibility criteria for grant of registration?

 For grant of registration under FCRA, 2010, the association should:


(i) be registered under an existing statute like the Societies Registration Act,
1860 or the Indian Trusts Act, 1882 or Companies registered under Section 8
of the Companies Act, 2013 for Charitable Purposes
(ii) Normally be in existence for at least 3 years and has undertaken reasonable
activity in its chosen field for the benefit of the society for which the foreign
contribution is proposed to be utilised.

What are the eligibility criteria for grant of Prior Permission?

 Prior permission is granted for receipt of a specific amount from a specific donor for
carrying out specific activities/projects. For this purpose, the association should meet
following criteria:
(i) be registered under an existing statute like the Societies Registration Act,
1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956
etc;
(ii) submit a specific commitment letter from the donor indicating the amount of
foreign contribution and the purpose for which it is proposed to be given; and
(iii) For Indian recipient organizations and foreign donor organizations having
Date: 07.September.2020DNS Notes - Revision

common members, FCRA Prior Permission shall be granted to the Indian


recipient organizations subject to its satisfying the following:
(i) The Chief Functionary of the recipient Indian organization should not be a
part of the donor organization.
(ii) At least 75% of the office-bearers/ members of the Governing body of the
Indian recipient organization should not be members/employees of the
foreign donor organization.
(iii) In case of foreign donor organization being a single person/individual that
person should not be the Chief Functionary or office bearer of the recipient
Indian organization.
(iv) In case of a single foreign donor, at least 75% office bearers/members of the
governing body of the recipient organization should not be the family
members and close relatives of the donor.

What are the conditions to be met for the grant of registration and prior permission?

In terms of Sec.12 (4) of FCRA, 2010, the following shall be the conditions for the grant of
registration and prior permission:

(a) The 'person' making an application for registration or grant of prior permission-
(i) is not fictitious or benami;
(ii) has not been prosecuted or convicted for indulging in activities aimed at
conversion through inducement or force, either directly or indirectly, from
one religious faith to another;
(iii) has not been prosecuted or convicted for creating communal tension or
disharmony in any specified district or any other part of the country;
(iv) has not been found guilty of diversion or mis-utilisation of its funds;
(v) is not engaged or likely to engage in propagation of sedition or advocate
violent methods to achieve its ends;
(vi) is not likely to use the foreign contribution for personal gains or divert it for
undesirable purposes;
(vii) has not contravened any of the provisions of this Act;
(viii) has not been prohibited from accepting foreign contribution;
(ix) the person being an individual, such individual has neither been convicted
under any law for the time being in force nor any prosecution for any offence
is pending against him.
(x) the person being other than an individual, any of its directors or office bearers
has neither been convicted under any law for the time being in force nor any
prosecution for any offence is pending against him.
(b) the acceptance of foreign contribution by the association/ person is not likely to
affect prejudicially –
(i) the sovereignty and integrity of India;
(ii) the security, strategic, scientific or economic interest of the State;
(iii) the public interest;
(iv) freedom or fairness of election to any Legislature;
Date: 07.September.2020DNS Notes - Revision

(v) friendly relation with any foreign State;


(vi) harmony between religious, racial, social, linguistic, regional groups, castes or
communities.
(c) the acceptance of foreign contribution –
(i) shall not lead to incitement of an offence;
(ii) shall not endanger the life or physical safety of any person.

Personal
Notes
Date: 07.September.2020DNS Notes - Revision

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