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English Newspaper Editorial 21-05
English Newspaper Editorial 21-05
English Newspaper Editorial 21-05
Editorial Delhi
T
he fifth phase of the general election, citizenship is turned down has aggravated is a lawyer at the Anoop Baranwal vs Union of India (2023) was a however ‘successful’ in its divisive agenda.
held on Monday, featured contests in the concerns over the issue. There is also a fear that Supreme Court radical judgment by the Constitution Bench of Anti-conversion laws in certain States in the
fewest number of seats — 49. But it includ- persons whose applications are disallowed might of India the top court that called for an independent body country also followed suit.
ed heavyweight seats such as Rae Bareli, Amethi end up in detention centres. Some of the to select the Election Commission of India (ECI),
and Faizabad in Uttar Pradesh, the urban areas of petitioners before the Court have also raised with no predominance for the executive of the An example in the U.S.
Mumbai, Thane and Nashik in Maharashtra, the concerns over dual citizenship to foreign day. But, recently, the Centre promulgated the In the United States too, the conventional view
southern parts of West Bengal, which saw strong applicants who need not have to abandon their Chief Election Commissioner and other Election did not favour judicial nullification of statutes on
contests between the Bharatiya Janata Party and original citizenship. This would create Commissioners (Appointment, Conditions of the ground of malice. John Hart Ely stated that
the Trinamool Congress (TMC) in 2019, besides uncertainty in the matter of citizenship, as it goes Service and Term of Office) Act, 2023. This Act the Constitution cannot be used as “an
simultaneous Assembly and parliamentary polls against the spirit of the parent Act, it is pointed revived the earlier position of the “Prime instrument for punishing the evil thoughts of
in the south-western seats of Odisha. In Maha- out. Minister’s Committee” choosing the ECI. It members of the political branches”. But evil
rashtra, the splintering of the main regional par- Interdicting a statute or set of statutory rules is comprises the Prime Minister, a Minister chosen thoughts of the majority in the legislative bodies
ties has made it a battleground State along with not a routine exercise undertaken by the by him and the Opposition Leader in the Lok are a harsh contemporary reality. Therefore,
Bihar, Karnataka and West Bengal. Voter turnout constitutional courts. Generally, a law made by Sabha, whose presence is inconsequential for all motivated legislations should call for a more
in Maharashtra was relatively low when com- Parliament is presumed to be valid unless it is practical purposes. Appointments were made rigorous judicial scrutiny. Scholar Susannah W.
pared to the rest of the country, with Mumbai re- shown to have ostensibly breached constitutional based on the new law. Pollvogt correctly writes that “animus can never
taining its unfavourable reputation of voter provisions. The law presumes that, normally, The law was challenged in Jaya Thakur vs constitute a legitimate state interest for purposes
apathy. The Uddhav Thackeray-led Shiv Sena fac- malice cannot be attributed to a process of Union of India (2024). The Court, however, of equal protection analysis”. By referring to the
tion counts these seats as some of its strongholds legislation (Manish Kumar vs Union Of India, refused to prevent the operation and judgment in United States Dept. of Agriculture vs
and its alliance’s performance here might well 2021). In Gurudevdatta Vksss Maryadit and Ors. vs implementation of the statute based on Moreno, 413 U.S. 528 (1973), she said that the
decide the course of the battle now as well as in State Of Maharashtra and Ors (2001), the “presumption” of its validity. This is not a enactment to exclude “hippies” from collective
the Assembly elections later this year. The Maha Supreme Court said that “legislative malice is targeted legislation, but an enactment, which, on residential rights implies a “desire to harm” a
Vikas Aghadi-Mahayuti contest of coalitions has beyond the pale of jurisdiction of the law the face of it, is unconstitutional. The statute particular group and therefore reflects
upended the traditional patterns of support bas- courts....” threatens the very foundation of our democracy, discrimination (Unconstitutional Animus,
es for the extant parties in the State and this elec- of which free and fair elections are a basic Fordham Law Review, 2012).
tion could herald a new correlation of forces. The lack of interdiction feature. This is an illustrative case where the There are Indian precedents where the
In U.P., the Opposition has managed to keep This conventional wisdom, however, is incapable Court failed to protect its own judgment, Supreme Court has effectively interdicted
the contest going on issues related to livelihoods of addressing the contemporary challenges posed essentially on account of the judicial superstition operation of parliamentary legislations. In Ashoka
and has prevented it being a cakewalk for the BJP by populist regimes across the world, which often regarding the presumption of validity of the Kumar Thakur vs Union of India (2007), regarding
which has sought to use the Ram Mandir conse- invoke motivated or targeted legislation. Such enactment. It is no wonder that in the general the prescription of 27% quota for Other Backward
cration issue to register another near-sweep. The dispensations also manipulate the electoral election 2024, the commissions and omissions by Community (OBC) candidates to professional
Opposition’s focus is expected to give it a bigger system or process by legislative means. This the ECI on several occasions remain colleges, the Court initially issued a judicial
fillip in Bihar, where Rashtriya Janata Dal leader recent legislative trend calls for an advanced and questionable. injunction. The Court’s order of stay in the case
Tejaswi Yadav’s relentless campaigning on em- assertive juridical approach. Refusing to interdict of the three contentious farm laws in Rakesh
ployment issues has made the elections even the operation of such enactments, by adhering to A case of targeted legislation Vaishnav vs Union of India (2021) is another
more competitive. The BJP now seeks to bank on an obsolete presumption regarding validity of the The CAA and the rules under it, on the other example. The Court in that case effectively
its record in welfare delivery, expecting the sup- law would severely diminish the hand, clearly fall within the category of targeted prevented the implementation of the farm laws
port of poorer voters and women. Voter turnout counter-majoritarian role which constitutional
The process of legislation. Legislative malice is writ large in the which the Centre had to withdraw ultimately
in the fifth phase is in line with the trends seen in courts are supposed to play in critical times. judicial review law. The law classifies people in the name of following farmers’ protest.
the fourth phase in U.P., which registered better Every piece of legislation is a political should be religion and excludes Muslims from the process As regarding the statutes which are glaringly
numbers than phases two and three, while preli- statement. A regime that does not believe in the strong, for grant of citizenship. unconstitutional or divisive, the process of
minary trends in Bihar indicate a slight reduction idea of constitutional democracy would naturally immediate, and Another prominent example of targeted judicial review should be strong, immediate, and
compared to the previous phase. The turnout has enact laws with scant regard to the scheme of the unambiguous in legislation is the Muslim Women (Protection of unambiguous. The top court should be able to
in general been marginally lower than what it was Constitution. On such occasions, a sense of Rights on Marriage) Act (2019), which learn from its track record and understand the
the case of
in 2019 across the country. In Odisha and West judicial euphoria about the ‘validity’ of the laws criminalised instant triple talaq. Significantly, the political consequences of its insensitivity during
Bengal too, women voters could be crucial in de- has precluded the Supreme Court from statutes that are act of instant triple talaq had been invalidated by critical times. Delay often defeats the purpose of
ciding the fortunes of the ruling Biju Janata Dal interdicting the operation of laws. The absence of obviously the Supreme Court in Shayara Bano (2017) and, constitutional adjudication. Time is the essence
(BJD) and the TMC. While turnout was relatively an order of stay against demonetisation has unconstitutional therefore, there was no legal requirement to of judicial review when it comes to malicious and
low in Odisha, West Bengal registered close to allowed the tragedy to happen and by the time or divisive ‘criminalise’ an act which was non est in the eye unconstitutional laws.
73%, according to early numbers. Women out-
voted men in West Bengal significantly till phase
T
yield it strong support, especially in rural areas. he fatal crash, on May 19, 2024, of a Bell hidden and the pilots blamed. base datum. The Indian Air Force uses a system
212 helicopter flying the President of Iran, On December 8, 2021, India’s first Chief of called EVER-MD. Datum shift can result in an
Ebrahim Raisi, and Foreign Minister, Defence Staff, General Bipin Rawat, and his error of between 10 metres and 3,000m. The
Death of a President Hossein Amir-Abdollahian, is one more accident
involving high-profile passengers, in mountainous
entourage died in an Indian Air Force Mi-17
helicopter crash near Coonoor, Tamil Nadu. Here
Balakot fiasco, which is denied vigorously by the
Indian Air Force but confirmed to be a miss by
Change at the helm comes at a time of terrain and in very poor visibility. One hopes again, it was hilly terrain and in fog. Gen. Rawat world organisations with very accurate sightings,
people learn from these. Captain A. had the option of travelling by road but had was caused by the position input based on one
domestic and regional uncertainties Given the increased tensions in West Asia and (Mohan) insisted on flying. Did the crew point out the datum and the missiles using the co-ordinates
Ranganathan
T
he death of Iran’s eighth President, Ebra- the gung-ho attitude of Israel, with open danger due to foggy weather? We will never get to based on the WGS 84.
him Raisi, and Foreign Minister Hossein American support, suspicion will be raised about is a former airline know as accidents involving the armed forces are
Amir-Abdollahian, in a helicopter crash the Israeli hand. Tel Aviv has denied this and instructor pilot and hushed up. Attitude to safety, a contrast
in northwestern Iran amid bad weather has sent distanced itself from the crash, but neither the aviation safety Why do pilots let themselves be arm-twisted In the U.S., the most dangerous airfield in foggy
shockwaves across West Asia. Raisi and others, United States nor Israel have any credibility left adviser. He is also a into flying in weather conditions that are conditions is Aspen in Colorado. Pilots require
including local officials, were travelling to Tabriz for the world to accept their innocence without former member of the dangerous? They are the ones who are trained to special training. On March 29, 2001, a Gulfstream
after inaugurating a dam with Azerbaijan’s Presi- serious cross-checks. Civil Aviation Safety fly in all weather conditions. The passengers have Avjet charter flight crashed while on the steep
dent Ilham Aliyev, on the countries’ shared bor- Was the Iranian President’s plan known Advisory Council no knowledge of weather conditions, even if one approach in poor visibility conditions. The
der when his chopper went down in Iran’s East earlier? Was the flight arranged for some urgent (CASAC), India were to brief them. They have an agenda to fulfil. investigation showed that the crew were under
Azerbaijan province. Raisi, a conservative cleric, meeting? And was the President informed about Very few politicians will take inputs from pilots. pressure by the owner to fly even though a
rose to power in 2021 after eight years of rule by the dangerous weather conditions? It is not just the crew of helicopters with VVIPs Federal Aviation Administration official had
moderate President Hassan Rouhani, who signed who cave into pressure. On April 10, 2010, the advised against the flight. Because of the findings
the 2015 nuclear deal with the U.S. and other Pressure on crew aircraft carrying the President of Poland, Lech and transparent report, such accidents do not
world powers. Mr. Rouhani’s promise of change There have been a number of fatal crashes The Iran Kaczyński, and his wife, Maria, crashed in fog recur.
and prosperity through dialogue did not mate- involving very very important persons (VVIPs). helicopter crash killing 96 people. They were flying to a We have had several accidents, both fatal as
rialise as the then U.S. President, Donald Trump On September 2, 2009, a Bell helicopter crash spotlights the programme to commemorate the 70th well as hull losses without fatalities. Many of them
sabotaged the deal in 2018 and reimposed sanc- claimed the life of the Chief Minister of Andhra importance of anniversary of the massacre near Smolensk in have had pilots making similar errors, and blatant
tions on Iran. When moderates lost their face and Pradesh, Y.S. Rajasekhara Reddy. The copter Russia. The investigative agencies from Poland violation of rules by the Directorate General of
allowing the
morale, the conservatives tightened their grip on crashed in the hills near Kurnool, Andhra and Russia concluded that the pilots had made Civil Aviation, the Airports Authority of India and
the state through Raisi. A confidant of Supreme Pradesh, in poor visibility conditions, killing all crew to operate the approach in unsafe conditions. The pilots had airlines. Yet, we turn a blind eye to aviation
Leader Ayatollah Ali Khamenei, Raisi escalated a on board. Mr. Reddy had been proceeding to a unhindered made the approach in thick fog and the aircraft safety. It is a pity we have a judiciary whose
crackdown on civil rights at home, strengthened political meeting. As is the norm in accident and ensuring descended below the normal approach path, hit understanding of aviation safety is so poor.
Iran’s ties with Russia and China, doubled down investigation reports in India, the truth was flight safety trees, rolled over and crashed in wooded area Finally, there are questions that arise out of the
on its support for non-state militias such as Ha- short of the runway. Iran crash.
mas and Hezbollah and expanded Iran’s nuclear If one were to go back to crashes in India, The helicopter was U.S. made. Due to
programme. In three years, he emerged as one of highlighted above, the similarity is visible, except sanctions, were any vital components of the
Iran’s most powerful men and was seen as a po- that the Polish craft was an aircraft. navigation equipment or parts denied to Iran?
tential successor to Mr. Khamenei. Israel may deny its involvement, but can it be
The death of the President could not have Weather and judgement trusted? Will the U.S. agencies confirm that
come at a worse time for Iran. It is already strug- In fog and heavy rain, the visual illusions are neither Israel or U.S. agencies are not involved?
gling to stabilise a stricken economy, battered by plenty and depth perception induced by Will those in power, worldwide, leave the
U.S.-imposed sanctions, and trying to calm social rainwater flowing down the aircraft/helicopter decision on flight safety to the pilots who operate
tensions. The nuclear deal remains dead and windscreen makes a huge impact. Several the flight? Decisions about a flight by the pilot
West Asia is on fire. In April, Raisi oversaw an un- accidents have been caused due to should never be overruled by a person on board,
precedented attack on Israel following Israel’s misjudgements induced by optical illusions. irrespective of his or her rank. It takes just a few
strike on the Iranian consulate in Damascus. Is- Navigation in poor visibility has become easier seconds of delayed action induced by stress and
rael’s meek response avoided an all-out war but with the use of the Global Positioning System fatigue to court disaster. It is sad that several top
tensions remained high. In recent years, Iran has (GPS) with an accuracy as close as a metre. The officials, including the President of a country,
also lost key officials. In the deaths of Raisi and accuracy takes a hit if one uses a different system have died in the crash. The collateral damage is
Amir-Abdollahian, the Islamic Republic has lost where the datum shifts. Military aircraft, to avoid the loss of lives of innocent fellow passengers and
an experienced, crisis-hardened cleric adminis- enemy interception or identification, tweak the the crew. One hopes that better sense prevails on
trator and a seasoned diplomat. It is understan- system. Worldwide, it is the WGS 84 which is the leaders.
dable that Iran would need time to get over the
shock that it is in now. Given the geopolitical ten-
sions, Raisi’s death could also fuel conspiracy
theories, which could further inflame the region. LETTERS TO THE EDITOR
So, it is imperative for Iran to get to the bottom of
the crash. Another priority is that the transition Ebrahim Raisi between India and Iran was also focus the spotlight on by Raisi’s absence. Given that too in an election year. local body, Assembly and
to a new presidency is handled smoothly. First In the passing of Iran’s getting strengthened, as the U.S. given its constant the uncertainty over the R. Narayanan, parliamentary elections.
Vice-President Mohammed Mokhber will assume President, Ebrahim Raisi, reflected in the signing of (political) interference. bent of the incoming new Navi Mumbai This lethargy needs to be
interim presidential powers and the country is and also its Foreign the agreement on the With the near direct and leadership in Iran, the U.S. condemned. It proves that
expected to hold a presidential election within 50 Minister, there is bound to Chabahar port. ongoing conflict between needs great sagacity to Urban voter apathy people in the city talk much
days. A change in presidency is unlikely to alter be suspicion. Tehran’s A.G. Rajmohan, Iran and Israel, the U.S. has avoid a sharp flare-up in an The major cities in the but vote less. Urban voter
Iran’s foreign policy direction, but the loss of one relations with Israel are Anantapur, Andhra Pradesh to tread with caution now. already volatile region. U.S. country, often labelled as apathy has serious
of the most experienced and ideologically disci- certain to be more strained Its every assistance to Israel President Joe Biden has an vibrant hubs of diversity implications for any
plined defenders of the revolution and a transi- than before. However, for The death of President Raisi here onwards will be seen opportunity to prove his and progress, have democracy.
tion amid domestic and regional uncertainties, is India it is a matter of is in the midst of the unrest as moves to leverage the own mettle as also the consistently grappled with Kshirasagara Balaji Rao,
an added challenge to the Islamic Republic. concern as the relationship in West Asia. This would leadership vacuum caused pre-eminence of his nation, record-low voter turnouts in Hyderabad
CM A ND-NDE
YK
THE HINDU
Tuesday, May 21, 2024 7
Delhi
Opinion
T
he year 2024 marks the One of the striking features of the the political implications of the
50th anniversary of the general strike was the pivotal role strike must be acknowledged,
railway workers’ played by the railway workers’ considering it merely as a political hra Pradesh for 10 years,
general strike, a families, especially women. In campaign used by the opposition STATE OF PLAY Mr. Naidu operated from
monumental event in the history Delhi, they went around railway to discredit the government would there only for a year before
of organised labour in India. This residential colonies, painting the be a gross simplification of the P. Sujatha Varma moving to Vijayawada. Many
general strike, a remarkable Robert Rahman faces of strikebreakers with workers’ motivation and collective pothuri.varma@thehindu.co.in people attribute his hurried
display of working-class unity, was Raman vermilion and forcing them to put will to carry out the campaign. shifting to his fear of an immi-
J
unparalleled in its geographical is a labour historian on bangles. They demonstrated The strike grew out of the railway ust days before the dea- nent arrest in the cash-for-vote
spread and public involvement. with a PhD from outside local police stations and workers’ bid to address their dline of June 2, 2024, scam that broke out in 2015.
Faced with gruelling work CeMIS, University of gheraoed them against the arrest two-decade-long grievances, the day when Hydera- Some political experts feel
conditions, diminishing wages and Goettingen. Views of railway workers and blocked which were neglected by the bad will cease to be the joint that Hyderabad would have
bonuses, and soaring prices of expressed are tracks to prevent train services. government and the industrial capital of Telangana and And- probably become Andhra Pra-
essential goods and oil, personal The railway workers’ tenacity to relation machinery of grievance hra Pradesh, the political class desh’s permanent capital,
exacerbated by a meagre wage continue with the strike was met redressal through collective in residual Andhra Pradesh hundred crores from the much like how Chandigarh is
hike proposed by the Third Pay by unprecedented violence by the actions. The general strike was a maintains a stoic silence on World Bank, and ₹1,500 crore the capital of Punjab and Ha-
Commission, the railway workers incumbent government. Besides unique event, not just because it the issue of choosing a capital. from the Union government. ryana, if Mr. Naidu had stayed
decided to go on a general strike declaring the strike illegal under challenged the government’s As per Section 5 of the And- But in the 2019 elections, Y. in the city for 10 years.
on May 8. The strike, however, the Defence of India rules, the ability to govern; its significance hra Pradesh Reorganisation S. Jagan Mohan Reddy’s In view of the looming dea-
began unexpectedly when more government mobilised police and further lay in the rank-and-file Act, 2014, Hyderabad will be YSRCP came to power. The dline of June 2, Telangana
than a million railway workers paramilitary forces to maintain militancy it inspired and the wider the common capital of Telan- new Chief Minister stalled all Chief Minister A. Revanth Red-
deserted their posts across India train services, arrest union solidarity it weaved among the gana and Andhra Pradesh for the projects and slashed the dy has set the ball rolling for
following the arrest of George leaders, and intimidate workers. railway workers, who were a period not exceeding 10 budget of the new capital to completing the distribution of
Fernandes, president of the All At most stations, the security divided into innumerable years with effect from June 2, ₹500 crore. This resulted in assets and liabilities between
India Railwaymen’s Federation, at forces outnumbered passengers categories and fragmented labour 2014, the official date of the bi- the withdrawal of the World the two States, a contentious
Lucknow on May 1. The station and striking workers. As many as regimes. The impetus for the furcation of the combined Bank and the Singapore firms issue which has been pending
masters of Victoria Terminus 50,000 railway workers were general strike came from these State. The 10-year window pe- from the project. Amaravati due to lack of consensus. After
sealed its gates in the early hours arrested during the strike; 10,000 independent unions, not riod was given to the residual now looks like a ghost capital. many rounds of bilateral
of May 2, thereby challenging the were put behind bars within the recognised ones. One of the State of Andhra Pradesh to Meanwhile, Mr. Jagan Mo- meetings failed to address the
ruling government and asserting first 24 hours. More than 30,000 lasting legacies of the strike was build its own capital. But And- han Reddy’s plan to decentral- issue, Andhra Pradesh moved
their authority over a symbolic families were evicted from the the workers’ assertiveness in hra Pradesh continues to be ise development by establish- the Supreme Court seeking a
and physical unifier of the nation. railway colonies. Railway colonies exercising power in their own where it had started. The tra- ing three capitals in the State ‘fair’ division of assets and lia-
of Mughalsarai, Jamalpur, Jhansi organisations for the redressal of gedy is that the presidents of has run into legal issues; the bilities between the two
Bringing life to a standstill and other important towns their grievances, thus turning the the incumbent YSR Congress case is pending in the Su- States. A total of 245 institu-
Despite the initial lack of emerged as the centre of this union into a site of struggle as Party (YSRCP) and the Opposi- preme Court. tions with a fixed asset value
coordination, the strike swiftly brutal repression. Police and much as an instrument of struggle. tion Telugu Desam Party The people of the State of ₹1.42 lakh crore are at stake.
brought normal life to a standstill paramilitary forces frequently While the strike was withdrawn (TDP) have been pulling in dif- blame both the Chief Minis- Of them, 91 come under Sche-
in all the major cities. It halted the raided and ransacked homes, unconditionally, it would be a ferent directions on the issue. ters for being insensitive to dule IX and 142 under Sche-
railway system, disrupting train threatened eviction, and harassed mistake to call it a complete The first five years post bi- their emotions and problems dule X of the Andhra Pradesh
movement across the country. workers and their families to defeat. Once the Janata furcation were marked by hul- in the last 10 years. They also Reorganisation Act. The divi-
There was not a single major coerce them to resume work. government came to power, a labaloo over a “world class fu- accuse the Congress of letting sion of another 12 institutions,
railway centre that was not shut These military-style operations, substantial number of casual and turistic and smart capital” at them down by implementing not mentioned in the Act, has
down or severely affected. The which confronted the workers and regular employees dismissed Amaravati for Andhra Pra- the bifurcation process in the also become contentious.
strike was all-encompassing in the their families as enemies rather during the strike were reinstated. desh. This was generated by most unscientific manner. It The leaders of Andhra Pra-
metropolitan centres, and along than protesting citizens, marked a Railway workers ensured that the N. Chandrababu Naidu, who brings to their mind grim me- desh are apprehensive about
with the long-distance passenger new authoritarian turn by the government accepted their was Chief Minister then. To mories of the bifurcation Bill the Congress government in
trains, the suburban services were government, which culminated in demand for a bonus. Today, build a “people’s capital”, esti- being passed without any dis- Telangana doing a fair job of
also immobilised. In Bombay, a the Emergency of 1975. Although railway workers face similar mated at ₹51,000 crore in cussions in Parliament, the the distribution process. They
general strike was called in the strike mobilised the workers, precarity due to the pension 2015, Mr. Naidu acquired mics in the Lok Sabha being feel that even if Mr. Revanth
solidarity, bringing the city to a under the weight of unparalleled scheme’s scrapping, Railways’ 33,000 acres of land from switched off, the live telecast Reddy makes any attempt to
grinding halt. All the major railway In retrospect, state repression and financial privatisation, increasing work farmers through land-pooling of the proceedings being sort out the tangle, the Oppo-
towns with a substantial the response to hardship, the strikers had to casualisation, and the adverse and promised to make them a stopped, and members oppos- sition Bharat Rashtra Samithi
population of railway workers, the strike has capitulate, and the general strike recommendation of the Seventh partner in the capital develop- ing the Bill being forced out of is bound to target him by
such as Jamalpur, Perambur, often been seen was formally called off on May 27. Pay Commission. Various trade ment plan. He roped in Singa- the House by the marshals. whipping up the Telangana
Mughalsarai, and Kharagpur, as a dress unions and federations of Indian pore-based firms and paid The people feel that develop- welfare issue again.
emerged as the strongholds of the A dress rehearsal Railways have again come together them thousands of crores to ment in the State has taken a On the capital, there is still
strike. Despite the Railway Board
rehearsal for the In retrospect, the response to the to resist these assaults. In the build the project. He also back seat even as leaders in- no clarity. Whichever party
and the government’s assertions, Emergency strike has often been seen as a context of these renewed attacks pooled ₹7,500 crore from the dulge in vendetta politics. comes to power this election
the railway system was thrown declared the dress rehearsal for the Emergency on labour, the strike of 1974 Housing and Urban Develop- Though Hyderabad was de- must address the issue; they
into disarray for over three weeks. following year declared the following year. While remains relevant as a struggle. ment Corporation, a couple of clared the joint capital of And- owe it to the people.
After the COVID-19 lockdowns and jet fuel hikes, aviation firms are now grappling with crew troubles
FIFTY YEARS AGO MAY 21, 1974
DATA POINT
flights, and about 2% of Air India’s No political motive behind
flights were cancelled. Even in the
month prior, cancellations ranged timing of test, says Sethna
Rhythanya, Sherin R., between 1% and 2% for these air-
and Niha Thasneem R. lines. Bombay, May 20: Dr. H.N. Sethna, Chairman of
While the cancellation rate may the Atomic Energy Commission, asserted to-day
S
ince December 2023, hun- statistically appear insignificant, that the timing of India’s first underground
dreds of cancellations and the absolute number of passengers nuclear test had been entirely left to him by the
poor on-time performance affected even when 1-2% flights get Government of India and that there was no
of airlines have left thousands of cancelled in a month is staggering. political motive behind it.
people stranded at airports across For instance, in the four months He told a largely attended news conference
India. Between March 31 and April between December 2023 and here that the decision to conduct the test on
3 this year, 150 Vistara flights were March 2024, 1.5 lakh passengers May 18 was his and his alone and that the Union
cancelled and 200 flights were de- couldn’t travel due to cancella- Government had no hand in it.
layed by more than two hours. On tions. Chart 2 shows the number Asked whether the Prime Minister had asked
May 8, Air India Express cancelled of passengers affected by cancella- him to undertake the test at this stage to divert
90 of its 360 flights. Similar cancel- tions. When an airline with a sig- the people’s attention from the economic crisis
lations, though not at this scale, nificantly higher number of sche- facing the country, Dr Sethna emphatically
were recorded across many large duled flights cancels even 1% of its declared: “It was my decision, I named the
airlines at various points this year. flights, the number of passengers date.” He told a questioner that the May 18 test
The recent crisis to hit the avia- affected too is considerably higher. was the first conducted by India and it turned
tion industry is fuelled by the un- which explains the bigger boxes out to be successful. No previous experiment
availability of crew. In the case of for IndiGo. In total, since January was carried out.
Air India Express, about 200 cabin 2022, 6.5 lakh passengers have “Experiments like this require a good deal of
crew reported “sick”. In the case been affected by cancellations. preparation,” Dr. Sethna said adding that with
of Vistara too, crew unavailability Cancellations result in a de- India’s logistics and communications if anybody
was cited as the reason. There has mand for refunds by passengers. could conduct a nuclear test at short notice “I
been a mismatch between de- Data show that the refund process will lose my job.”
mand and supply of crew amid the has not been smooth. Chart 3 Asked how long it took to complete the
expansion of the network. shows complaints about refunds preparations, he replied: “No comments.”
The new troubles have come as a share of total complaints re- The news conference began with presentation
just as the aviation industry has ceived by airlines month-wise in of bouquets to Dr Sethna and Dr R Ramanna,
started shrugging off the effects of the January 2022-March 2024 pe- Director of the Bhabha Atomic Research Centre
the COVID-19 pandemic, which re- riod. In 2022, across many by newsmen on behalf of Bombay journalists as
sulted in record losses for all air- months, over 25% of the total com- a token of appreciation of their greatest
lines. During the first few months plaints were about refunds. In achievement.
of the pandemic, in 2020, passen- 2023 and 2024, this share reduced Asked whether a nuclear experiment had
ger flow came to a halt as airlines to 15%, which is commendable gi- been conducted on May 16 as reported by the
were grounded. In later months, ven the high number of cancella- Delhi observatory Dr Sethna clarified that
passenger flow trickled in as air- tions. But problems persist. explosion perhaps occurred in some other
lines had to follow pandemic-relat- The on-time performance of air- country. “Our experiment was carried out on
ed protocols. Despite that, airlines lines has also been drastically fall- May 16,” he declared.
continued to pay salaries, airport ing in the past two years. Chart 4 (The Meteorological Department in Delhi
fees, and aircraft and engine ren- shows the on-time performance of while announcing that it recorded the Saturday’s
tals and thus faced heavy losses. airlines, based on data from the nuclear explosion in Rajasthan also said that two
Later in 2022, when passenger Bengaluru, Delhi, Hyderabad, and days earlier, i.e., on May 16, it recorded an
flow returned to pre-COVID-19 le- Mumbai airports. The figure in the explosion the source of which it could not
vels, aviation fuel prices shot up. chart corresponds to the % of on- locate.)
Airlines continued to suffer since time (with some margin) landings
passing on the fuel price to cus- and take-offs. In December 2023,
tomers was not an option. the on-time performance of all ma- A HUNDRED YEARS AGO MAY 21, 1924
Chart 1 shows the cancellation jor airlines fell to the lowest level in
rate of various airlines month-wise two years (SpiceJet: 30%, Air In- Cotton in the British Empire
in the January 2022-March 2024 dia: 47.6%, IndiGo: 60%). The poor
period. The bigger and darker the on-time performance continued in London, May 23: The British Cotton Growing
box, the higher the cancellation 2024 as well. In the last two years, Association’s annual report states that 178
rate. In January 2024, 5% of Indi- 45 lakh passengers have been im- thousand bales of cotton were grown in new
Go’s flights, 3.4% of SpiceJet’s pacted by this issue. fields in the British Empire last year.
CM A ND-NDE
YK
Delhi www.thehindu.com Tuesday, May 21, 2024
● ●
Text&Context 0
NEWS IN NUMBERS
Net addition in EPFO Biden administration The number of times Arrests made during The increase in China’s
membership in the holds up the shipment the Nepal PM won the domestic violence crude imports from
month of March of bombs vote of confidence crackdown in Australia Russia
ECONOMIC NOTES
Amit Kumar
I
n 2023, India surpassed China to
become the world’s most populous
country. The development came
against the backdrop of a declining
birth rate (6.4 births per 1,000 people)
and total fertility rate (~1%) in China.
China also recorded a negative population
growth rate for the first time in six
decades. This means a rising dependency
ratio, which is projected to increase over
time. In contrast, India’s population,
despite reaching replacement levels (total
fertility rate of 2.1), is expected to grow
and peak around 2060.
These developments have significant
consequences on domestic consumption
in the two countries. Consequently, it
becomes imperative to compare their
consumption figures and
strengths/weaknesses. A
cross-comparison also assumes
significance owing to the contrasting
experiences of the two countries in their
respective geopolitical landscapes.
was founded on this date in 1904. A quiz on the international regulatory body
Joan Sony Cherian Cup held? Who won? Questions and Answers to the previous
X day’s daily quiz: 1. This Slovenian pioneered
X QUESTION 5 modern beekeeping techniques. Ans: Anton
QUESTION 1 The bankruptcy of this Janša
Apart from football, what company in 2001, which 2. The pairs of wings and eyes honey bees have.
are the other two sports the held media rights to the Ans: Two and five respectively
federation governs? World Cup in Europe 3. The name given to the dance that bees
X and the U.S., financially perform to communicate the location of food
QUESTION 2 set back the federation. sources. Ans: Waggle
This journalist of the French This event is seen as the 4. To an apiarist, this is what ‘Propolis’ means.
paper Le Matin was beginning of a string of Ans: It is a substance used in construction of
instrumental in the controversies and the bee hive and also for preserving honey
founding of FIFA. Name him. scandals in the and other perishables
X federation regarding 5. The function of invertase. Ans: It change
QUESTION 3 charges of fraud, bribery sucrose into equal parts glucose and
When and where was the and corruption. Name fructose. It’s the beginning of the
first FIFA World Cup hosted? the company. production of honey
Why did England not X 6. The name given to the male bees which do
participate in the game? QUESTION 6 not have a stringer. Ans: Drone bees For feedback and suggestions for
X In 1961, FIFA banned X Visual: Name the part of a flower from which Text & Context, please write to
QUESTION 4 this country over its Visual question: bees collect pollen. Ans: Anther letters@thehindu.co.in
When and where was the discriminatory sports This incident is considered one of the most shameful events in the history of the FIFA World Early Birds: ViswanadhaRao Batchu| Vineet Giri| with the subject ‘Text & Context’
first FIFA Women’s World rules. Name the country. Cup. Name the incident and the player featured here. WIKIMEDIA COMMONS Jyot Prakash Gulati| Jagrati Shukla
CM A ND-NDE
YK
4 . bl . think
DELHI
businessline.
TUESDAY - MAY 21 - 2024
T
China, worth $18 billion, could ratchet up here no clarity on what
the simmering trade war between the two countries. ‘Aatmanirbhar’ means as an
The Biden administration has proposed sharp economic concept and a
policy direction.
increases in tariffs on certain steel and aluminium Interpretations tend to be
products, semiconductors, electric vehicles, dominated by the literal translation of
lithium-ion batteries, solar cells, ship-to-shore the word, which is reliance on the self.
But this plays to fears of a reversal of
cranes and medical consumables. The reasons cited liberalisation and a closing of the
by the US include China’s unfair practices relating to economy again.
technology transfer, intellectual property and The policy emphasis, however, is not
on self-sufficiency but on
innovation and the threats posed by large self-confidence. This requires
manufacturing capacities. pragmatism and diversity, both of which
entail more, not less openness to
The impact of these hikes may not be too strengthen capabilities of people and the
material on US, since these imports account organisations they work for.
for just 4 per cent of the country’s total
CAPACITY BUILDING SCALING UP. Mobile phone exports have been one of the success stories of the PLI scheme BLOOMBERG
imports from China. But there could be For learning and developing dynamic
repercussions on global trade as the comparative advantage it is necessary to
impacted Chinese goods flow to other stay away from extremes of full partly since of stringent performance regulatory simplification, policy initially restricted to white males.
countries. If there are retaliatory tariff hikes liberalisation or full protection. and audit requirements to prevent consistency, speeding up Indian courts, Inclusive politics should have led to
The current export competition gaming of the system. Even so, there are lowering logistics and other costs and so inclusive economic policies with good
by China and if this spirals into a trade war as regime differs from the earlier failed many large MNCs that have come in and on. public services like health and education
it did in 2018 under Donald Trump, other import substitution regime in that benefited from Indian markets. Court reform is especially important that are essential to enhance human
countries, including India, will be faced with manufacturing has to become efficient Apple has contributed to India’s since India has been correcting bilateral capital equitably. But a heterogeneous
both positive and negative effects. in order to compete internationally. It is, reversal from being an importer of investment treaties that were biased in electorate allowed politicians to
First the positives. Indian exporters need however, being helped to develop mobile phones to an exporter. These favour of foreign capital since they gave cultivate vote-banks and populist
economies of scale under a broad set of success stories and good Indian them the ability to bring cases against schemes instead of delivering on
to make the most of opportunities created policies primarily aimed at lowering prospects will attract others but the Indian policies in friendly foreign governance and public services.
by the trade war. Exporters of face masks, costs of doing business. Protection from process will be gradual. jurisdictions. This needs to be
syringes and needles, medical gloves and unfair competition and incentives such Last year gross FDI inflows slowed accompanied by reducing delays in PUBLIC GOODS FOR INCLUSION
natural graphite are the best placed to as from the PLI schemes are to be marginally to $59.9 billion in Indian courts thus improving The neglect of public goods such as
temporary and targeted so they do not April-January 2023-24 from $61.7 billion confidence of foreign capital in the health, education and environment
benefit from the recent round of tariff hikes become permanent crutches. over the same period last year, while net domestic legal system. Indian courts hurts the poor more, for whom these are
by the US. While China is the biggest In a country of India’s size and FDI inflows fell more sharply to $14.2 have a reputation for fairness and necessary not only to build capabilities
exporter to US in these categories, India too diversity growth requires multiple billion from $25 billion. The reason was impartiality but they take too long. but also to convert them to diverse
has a good presence in the US in these sources. Moreover, service exports alone that reparations rose. FDI sends back functionings. The rich can pay for
cannot give the technological depth to the large profit it earns to its home EDUCATION OUTCOMES private substitutes. Many such services
products. With regard to the possible rise to middle income levels. A labour country. One estimate is that in 2024 Improving education outcomes is a need to be delivered at the 3rd Tier, so
adverse effects, Indian authorities need to force with varying skill levels requires a there will be a net outflow of up to $50 major component of the multiple patchy decentralization is a major
up the ante in checking dumping of range of matching jobs. Graded billion from developing countries to strategies required to build capabilities bottleneck.
low-priced Chinese goods diverted into protection is required until supportive advanced economies because of foreign and confidence. Developing human Even so, a policy focus on building
India, which can negatively impact Indian ecosystems and industry clusters come debt repayment obligations. capital, the required skills and assets for the poor has resulted in access
up. While FDI has many benefits it also technological capabilities is also the way to sanitation, nutrition, cooking fuel,
manufacturing. It has been observed that has costs, so in some ways it is better to leverage India’s youth advantage. financial inclusion, drinking water and
tariff hikes in 2018 did not lead to a DOMESTIC AND FOREIGN FIRMS that tax-payer resources are used more India has a large number of electricity reaching adequate levels for
reduction in China’s exports; they only went Such trade policy also takes advantage of to boost domestic firms. In any case FDI universities and institutions but quality an additional 135 million people in the
to other destinations, or through third the post-pandemic impetus to diversify has never exceeded 2 per cent of GDP, varies. Improvements in governance, five years to the end of the last decade,
sourcing. But, in order to enhance while domestic investment exceeds 30 more competition, independence and according to a UNDP study.
countries into the US. The tariff hike by the economic security, many countries are per cent. Diversification reduces risks freedom to differentiate are essential Such a reduction in
US is highest on electric vehicles, from 25 giving inducements for ‘re-shoring’ of and over-dependence on any one type of reforms. Multiple sources of finance, multi-dimensional poverty and
per cent to 100 per cent. With the EU too firms back from China. investment increases them. including from CSR funds, can improvement in own assets creates
contemplating increasing duties on EV It is difficult for India to compete with So rather than pay FDI to come here, contribute to this as well as help develop confidence, ability to take risks and to
governments of high per capita income or give it special favours, it is better to industry integrated innovation clusters. participate in growth.
imports from China, there is risk of the countries in giving incentives to foreign work on making it more attractive for all Countries with broadly inclusive As more atmanirbharta reduces
latter pushing cheap EVs into India, capital. It is more feasible to collaborate types of firms to produce in India. These political and economic institutions tend dependence, doles and distortions,
deterring Indian businesses. Whether this and use ‘friend-shoring’ to increase types of measures include further to succeed in the long run since inclusive government finances, which are not
warrants a review of India’s EV policy is participation of domestic firms in global progress in ease of doing business, institutions generate the creative unlimited, can be spent on public goods
worth considering. Products slapped with supply-chains. destruction and innovation that sustains that raise productivity and attract good
higher US duties such as lithium ion
In order not to compete to the Schemes such as PLI are wealth even while they temper jobs to match rising skills. Voter
bottom, multiple reinforcing strategies extractive state power. India started out awareness and insistence on sustainable
batteries and semiconductors from China have to be adopted. Incentives alone will a temporary incentive to with highly inclusive political inclusion is a major way to ensure
could also be diverted to India. China is not work. PLI has had clear success so help Indian firms scale up institutions since it adopted democracy continuing delivery and rising
far only in a couple of areas. There is with universal suffrage at independence. capabilities.
already India’s biggest trading partner, with
much potential in ‘green’ industry. and compete with foreign Few democracies had that advantage.
India’s imports from that country totalling Disbursal has been less than committed, firms on an equal footing In the West voting rights were The writer is Emeritus professor, IGIDR
$101.7 billion in FY24.
India has a process for identifying imports
which are priced lower than the selling price
in the country of origin with the Directorate
General of Trade Remedies levying
anti-dumping duty on such products. But
Indian elections and the looming presence of Modi
there is delay in accessing and analysing the
trade data and taking action. The Centre Given the BJP’s huge winning margins in 2019, the Opposition has a mountain to climb
could consider setting up a department to For example, if you are Muslim nearly 20 per cent. The BJP had 38 per
analyse the trade data on some key imports TCA Srinivasa Raghavan woman, you may have a reason to vote cent.
daily so that action can be expedited. A trade for Modi because he banned triple talaq
F
policy with China that bolsters rather than ive of the seven phases of this and gave you a gas connection and a ECONOMIC ANGLE
general election are over. The toilet. But, equally, you may dislike the But there’s the economic aspect of high
impairs India’s recent manufacturing boost campaign has had one major, or BJP for its political rhetoric about prices and low incomes. This affects
deserves attention — especially given perhaps only one, issue: Narendra Modi. Muslims. everyone because most voters now feel
India’s keenness to be a ‘China plus one’ hub. In that sense he has become like How would such a woman vote? Will they are worse off now than they were in
Margaret Thatcher in the UK. After 1979 it be a last moment decision or a 2014. This may not be true objectively
all elections were about her. She had pre-decided one? We simply don’t know. but that’s the perception and in voting
once famously said “I will go on and on Or, on the other hand, it may be a it’s perceptions that determine
FROM THE VIEWSROOM. and on and on”.
In terms of a quadrant graph the way
Hindu voter who strongly disagrees with
Modi’s political tactics of self promotion
outcomes. The Opposition is saying that
these people will vote against both Modi
ELECTORAL OUTCOMES. Many
to look at such political personalities is and exaggeration and over-the-top imponderables PTI
and the BJP. They could and may already
I
ndia’s recent ranking at 159th is reportedly concerning, with per cent, give or take; and those who RPM record aspect. These were musical love me, love my dog problem. seats. Eighty per cent of these were
out of 180 countries in the reporters reined in by police and dislike both are also about 40 per cent, vinyl records in the 1960s that had two This is even more true of the against the Congress.
World Press Freedom Index paramilitary forces, and some give or take. songs on either of the record. Opposition. Along with the Congress Or, to put it another way, in 2019 the
by Reporters Without Borders detained for extended periods This means the election will be So you couldn’t buy just the one song come a whole cartload of politicians who BJP had won nearly 300 seats with a lakh
(RSF) is a dire warning. without formal charges. decided by one of the two other you liked. You had to buy both. It was a count for nothing when not and half more votes. The Opposition
While the nation climbed two Although there have been no categories, namely, ‘Like BJP, Dislike way of selling unpopular compositions. piggybacking on it. Remember: even group has to reverse those margins to
spots from the previous year, this journalist deaths reported since Modi; Like Modi, Dislike BJP’. This In exactly the same way Modi and the taking them all together, the vote shares get 273 for itself. But is the voter angry
marginal improvement is not due January 2024, the atmosphere makes it very hard for the voters to BJP come together. This makes the of the non-Congress parties was less enough against Modi or the BJP or both
to progress but rather a decline in remains grim. This climate of fear decide. choice more complicated. than 15 per cent. The Congress had to vote them out? We simply don’t know.
press freedom across other creates a chilling effect, deterring
nations. Ironically, Pakistan, a journalists from pursuing critical
country often criticised for its and investigative reporting.
media restrictions, ranks above us This decline in press freedom is LETTERS TO EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.
at 152nd. part of a broader regional trend,
Beginning in 2014, India’s press with the Asia-Pacific region seeing
freedom has faced unprecedented 26 of 32 countries’ scores fall. Lauding the FM’s views returns to the public exchequer are for the scorecard of achievements responsibility. suggest the FM to review the
challenges. The report emphasises However, as the world’s largest Apropos bl.interview (May 20), the vital. and the perspectives brought to play As regards FM's appreciation for mandatory CIBIL score demand for
an “unofficial state of emergency” democracy, India must set a FM’s clarity of thought and The FM’s assertion, “banks should in diverse areas. RBI's consultations with stakeholders farmers to avail themselves of
for India’s media. Notably, higher standard. Protecting forceful expression must be not lend for long term from the Jose Abraham prior to policy formulation, this has financial facilities.
Mukesh Ambani’s Reliance group journalists and ensuring a free and appreciated. money borrowed for short term Vaikom (Kerala) become an established practice for In view of the uncertainty of agrarian
owns over 70 media outlets, independent press are crucial Profit no longer is a bad word. That and get into asset-liability mismatch decades now. Even the transparent sector, medium and small farmers
reaching 80 crore Indians, steps. is good economics. situation” is a guiding principle Banks, focus on banking functioning of MPC can be seen from eternally under financial debt, I
showcasing a concerning The government must act For ease of business we cannot go banks should follow. Apropos FM's interview (May 20), it this perspective. suggest the FM to do away with CIBIL
concentration of media power. decisively to safeguard press to a situation where no questions On GST reforms not keeping pace, is heartening to see the finance MG Warrier for farmers since it has made the
Journalists who dare to freedom, repealing oppressive are asked. the FM’s admission of the GoM minister speaking at length about the Mumbai entire community paranoid about
challenge the government measures and fostering an While spurring private ceding priority to politicking and business of banking and the need for banking transactions and the
narrative (both at the Centre and environment where journalism participation in infrastructure electioneering over policy matters, bringing all stakeholders on the same Farmers and CIBIL Jan-Dhan zero-balance account
State level) often face severe can thrive without fear. Only then development, prudent norms of is an eloquent commentary on our page. Apropos “Banks should focus on facility is becoming redundant.
repercussions. They are subjected can India claim to be a beacon of accountability and fair trade political reality. Banks dealing with depositors’ core banking business: Sitharaman” Rajiv Magal
to online harassment, threats, democracy and freedom. practices of ensuring the rightful The FM needs to be complimented money bear an onerous social (May 20). As a plantation farmer, I Halekere Village (Karnataka)
Published by Nirmala Lakshman and Printed by Praveen Someshwar at HT Media Ltd. Plot No.8, Udyog Vihar, Greater Noida Distt. Gautam Budh Nagar, U.P.201306, on behalf of THG PUBLISHING PVT. LTD. Chennai-600002. Editor: Raghuvir Srinivasan (Editor responsible for selection of news under the PRP Act). ISSN 0971 - 7528
CM
YK . . . . . . . . ND-NDE
think . bl . 5
DELHI
businessline.
TUESDAY - MAY 21 - 2024
An uninsurable future?
Climate change is forcing insurers to decline cover
TN neglects small water bodies
REMOVE THE CLOGS. Water scarcity in the State can only be solved by restoring and increasing storage capacity of tanks
Bose Varghese
cent in 1960-61 to 14 per cent in 2022-23
I
nsurers and reinsurers in in Tamil Nadu (seeChart 2). The
Dubai are expected to bleed unprecedented water scarcity
in the aftermath of the experienced now in Tamil Nadu is partly
recent floods. Could they have due to the neglect of tanks.
predicted and priced this risk? A NARAYANAMOORTHY
That is only one part of the POINTERS FOR THE FUTURE
T
challenge insurers are facing; the he climate change To face the challenges posed by climate
other part is about places already experienced in recent years change, immediate steps are to be taken
becoming uninsurable under has not only changed the to repair, renovate and restore the tanks
heightened climate risks. rainfall pattern but also to increase their storage capacity.
In 2015, the then chairman accentuated water scarcity Encroachments on catchment areas and
and CEO of AXA Group stated across India. In many parts of Tamil water-flow channels should be removed,
CLIMATE RISK. Hard to guage
that most assets would be Nadu, for instance, people meet their facilitating rainwater to flow unhindered
uninsurable if global warming daily needs by paying ₹10 for a bucket of to the tanks. Respecting the judgment by
rose 4°C. In 2018, the current taking unprecedented hits water. The data released by the Ministry the Madurai Bench of the Madras High
CEO of AXA SA said that because of climate related of Water Resources indicatethat the Court on September 6, 2014, the
basement shops in New York or events. Global insurance losses demand for water will exceed supplyby government should ban all construction
Mumbai will not be insurable exceeded $100 billion in each of 2050 due to increased requirement for activities in places where tanks are
with 3-4 degrees warming. the last four years. The industry and agriculture. As the located.
The world is quickly finding unprecedented wildfires in un-utilised water resources is shrinking Due to poor storage of water in tanks,
out that it may not take even that California during 2017-18 have at a faster pace, there is a need to groundwater continues to be
to make places uninsurable. reportedly wiped out twice the renovate and rebuild existing small water over-exploited for agriculture and
Global average surface underwriting profits for the past bodies (tanks, etc), especially in Tamil drinking water needs. The data from the
temperature rose 1.45oC in 2023, 26 years for California home Nadu where water scarcity is rampant Central Groundwater Board (March
the warmest recorded year, insurers. Many insurers have already. 2020) showthat of the 1,166 blocks in
according to the World gone bankrupt in Florida due to Tamil Nadu, 723 are classified as
Meteorological Organization. increased hurricane claims and BENEFITS OF TANKS over-exploited. Therefore, it is necessary
And it is wrecking lives, property, litigation. Unlike in the northern States, tanks have to increase water availability from tanks
and insurance companies. Insurance companies are been the main water source of Tamil to reduce the exploitation of
According to Climate and waking up to this reality. Nadu for centuries. The State has a total groundwater.
Catastrophe Insight reports by However, they face significant of 41,127 tanks with a total storage In the past, under the
Aon, a risk advisory firm, global challenges in predicting climate capacity of 347 tmc (thousand million ‘Kudimaramathu’ scheme of the Tamil
economic losses from climate risks and pricing them. During a cubic feet). This is more than the total Nadu government to renovate tanks,
and catastrophe events are US senate hearing in 2023 on water storage capacity of all the dams in emphasis was given to increasing the
increasing. Reported losses for climate change and insurance Tamil Nadu. Therefore, the State’s water water storage capacity by removing silt
2022 and 2023 stand at $355 market, Eric Andersen, scarcity cannot be solved without tanks. from the tanks’ basin. Emphasis must,
billion and $380 billion, President of Aon, stated that Although tanks are small in size, the therefore, be given to repairing the
respectively. ‘you can’t insure what you can’t benefits they provide are huge. water-flow channels blocked by
More importantly, only $151 predict’. Due to the presence of tanks in all main reason for defunct tanks. Due to Tamil Nadu has not increased even in encroachments.
billion and $118 billion He also stated that the old parts of Tamil Nadu, water is provided at continuous encroachment in the years with above-average rainfall. To increase water retention, tanks also
respectively in 2022 and 2023 models of looking backwards to alow cost for all purposes — drinking, catchment areas including the One of the main reasons for vanishing need to be renovated regularly by
were covered by insurance, predict risk are not very valuable domestic needs, animal husbandry, and water-flow channels that carry rainwater tanks is rapid urbanisation that has led to allocating adequate funds. Some
indicating an insurance in predicting climate risks. irrigation. Unlike large dams, tanks are to the tanks, their water storage capacity encroachment of water-spread area for corporates are involved in renovating
protection gap of 57 per cent and Despite these challenges, easy to manage due to their small size. has declined, resulting in a sharp decline construction of buildings. The Central tanks under the corporate social
69 per cent respectively. insurers are responding by The maintenance cost of tanks is also in the area irrigated by tanks. Government’s Standing Committee on responsibility scheme. If the government
increasing premiums and even very low as compared to canal irrigation. India’s tank irrigated area in 1960-61 Water Resources, in its 16th Report on joins hands with them in modernising
A BIG DIVIDE declining insurance. Unlike canal irrigation, conflicts was 46.30 lakh hectares (lha), which ‘Repair, Renovation and Restoration of tanks, the overall performance of the
A geographical breakdown of According to S&P Global between tail-end and head-reach farmers declined to 22.05 lha in 2021-22. During Water Bodies’, has stated that municipal tanks can be improved.
these numbers shows the divide Market Intelligence data, are negligible under tank irrigation. Since the same period, the tank irrigated area in and panchayat bodies have mostly Due to climate change, India received
between the developed and the cumulative home insurance tanks are the main source of irrigation for Tamil Nadu decreased from 9.36 lha to encroached upon tanks for construction below-average rainfall in 17 of the 32
developing worlds; the insured premiums grew 4.5 per cent to resource-poor small and marginal 3.99 lha (seeChart 1). Most of the and other purposes. years from 1990 to 2021. Some have
and the insurance losses are 36.4 per cent across the US farmers, they help improve their farmers who are cultivating crops using India’s Fifth Minor Irrigation Census warned that rainfall may decrease due to
mostly in the developed world during 2022-23. The high livelihood. Increased storage of water in tank irrigation have left agriculture. (2013-14) reports that of a total of 5.92 climate change, further exacerbating
while those in the developing premiums are forcing the poorer tanks helps in recharge of wells, reducing Surprisingly, the tank-irrigated area in lakh tanks and small water bodies in water scarcity in States like Tamil Nadu,
world are largely uninsured and to drop out of coverage, risking the over-exploitation of groundwater. India, 72,853 are defunct due to poor which has now the lowest per capita
thereby extremely vulnerable to everything they own. This is also The tanks located in every village prevent To face the challenges maintenance. Similarly, the First Census annual water availability (750 cubic
climate change and (natural) laying the path for some areas women from having to walk long of Water Bodies published by the meters) among the major States (1,544
disasters. In 2023, of the (that are highly prone to climate distances to fetch drinking water. posed by climate change, Ministry of Water Resources in 2023 cubic meters). Therefore, measures are
estimated $114 billion losses events) within states such as immediate steps are states that 38,496 water bodies (mostly needed to repair and restore all the tanks
reported in the US, insurance Florida and California towards PRESENT STATUS small ones) have been encroached upon to increase their storage capacity and
protection gap was only 30 per their uninsurable future. The tanks which have been meeting the to be taken to repair, in India. As many as 7,828 water bodies reduce water scarcity emanating from
cent. This could be true for many water needs for a long time are now renovate and restore the have been encroached in Tamil Nadu climate change.
In the Asia-Pacific, that gap other climate risk-prone areas rapidly disappearing. Analysis carried out alone. As a result, the share of
stood at 91 per cent of the $65 across the world. However, in using time-series data suggests that tanks to increase their tank-irrigated area to net-irrigated area The writer is former full-time Member (Official), CACP,
billion reported losses. The countries like India, where changes in rainfall patterns cannot be the storage capacity. has consistently declined from 38 per New Delhi. Views are personal
estimated losses in India in 2023 homes, crops, animals and even
stood at close to $6 billion, made lives remain largely uninsured,
up mostly of crops, houses, and there is no strong insurance
animals; however, very little of baseline or pricing action from
that was protected through
insurance. India also lost a great
number of human lives.
the insurers to witness that.
T
he Punjab and Haryana High trigger taxability. The concept of real GST collaborating and issuing a
thehindu businessline. Court recently stayed the
operation of GST applicability
income is thus not applicable to TP
provisions. Legislative amendments
country-wise pricing/rates, at least to
key countries where Indian corporates
on guarantee commission given by a were also done to scope guarantees and have a sizeable presence of AEs. These
TWENTY YEARS AGO TODAY. parent to its subsidiary. Such cross-border funding/capital might be pegged to market rates or be
guarantees take different forms like transactions as an international made floating to the changing
May 21, 2004 letter of awareness/comfort, transaction under TP provisions. circumstances to accommodate market
corporate/bank guarantees besides the This being one side of the story, the TOUGH. Imputing arm’s length price dynamics.
No privatisation of strong PSUs, says Manmohan fact that they may be issued with or form/structure of these guarantees are The purpose of both laws, GST and
With coalition partners, including the Left parties, closely watching his every without any consideration. contextual/need based. The same may the assessee, their bargaining power, TP, are certainly different. GST is an
step, the Prime Minister-elect, Dr Manmohan Singh, said that the United In case of guarantees without any also arise across different countries/tax volume of the transaction besides a indirect tax with the charge on the
Progressive Alliance (UPA) Government would not privatise strong public consideration or inadequate jurisdictions. Applying a flat/nominal number of other internal/external implicit pricing of the guarantee (in this
sector companies (PSUs) and that the Government holding in public sector consideration the challenge before law rate universally on these as per Indian factors as well. case) while TP is a direct tax to check
banks would not be allowed to fall below 51 per cent. is in imputing an arm’s length price market rates, though being one form of Country specific credit and plug cross border tax arbitrage.
(ALP) or a market price as the notional abenchmarking, might be incorrectas rating/market pricing has been accepted Eventually both rely on market pricing
Buffer stock for sugar goes consideration for fastening the tax on a they ignore the differential in cross border financing amongst AEs to fix the consideration or the ALP
Maintenance of buffer stock for the sugar industry has been terminated, transaction that was factually not counterparty risk dimension between a to a large extent that even dues from which if streamlined or circularised, will
leaving the industry poorer by about ₹300 crore a year, according to industry priced/underpriced/ unpaid. third party and an assessee vis-a-visto AEs arising in the normal course of the obviate superfluous litigations besides
sources. A notification issued by the Ministry of Consumer Affairs, Food and The same topic is mired in that of an assessee with his associated business have been read as a means of bringing greater transparency and
Public Distribution said that it had decided to terminate the maintenance of a controversy but of a different texture in enterprises (AEs). financing with notional dis-allowances certainty on tax costs/implications.
20-lakh tonne buffer stock of sugar from May 18. transfer pricing (TP) under income tax or add-backs to expenses/incomes Such simple measures will lead to
law as well. It has been held in many THE RIGHT PRINCIPLE being telescoped (at market rates as the greater ease of doing business on this
Nortel lowest bidder for BSNL order decisions that Chapter X enshrining TP Accordingly, country-specific pricing case may be) under TP provisions. otherwise controversial topic.
Nortel Networks has emerged as the lowest bidder for BSNL’s ₹6,000-crore provisions are anti-avoidance should be the right principle taking into ECGC gives cross border premium
tender for 11 million new mobile phone lines using the GSM platform. Bids provisions where in the actual cognisance country risk, positioning of rates based on individual country risk The writer is a chartered accountant
were opened for the Northern, Southern and Eastern circles. The contract for
the Western region has already been awarded to Alcatel-ITI.
CM
YK ... . . . . . . ND-NDE
>
OPINION 9
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM
I
n a recent interview, Prime Minister Narendra Modi was asked what reforms prices of goods and services commonly used by the
were required to increase interest globally about investing in India. In response, general public. High prices impact the poor the most,
and the aim should be to contain the type of inflation
targeting mandate
governments, investors would continue to struggle. If, when it came to ease of doing 4+/-2 per cent. This was fixed by the government, in
business, the Union government received support from the states, argued Mr Modi, consultation with the RBI, in 2016 for a period of five
there would be no need for any investor to look elsewhere other than India. years, and later re-adopted for another five years in
Mr Modi, who was, after all, once chief minister himself, cannot be faulted 2021. What is the basis for selecting this target, includ-
ing the wide band of +/-2 per cent? Considering the
on his analysis of the problem. His administration’s experience in office also
reveals the importance of taking states along when it comes to major economic A key focus for the new govt should be to ensure wider inflation rate-economic growth dynamics, knowing
what inflation rate to target is crucial for the growth of
reform. Tax reform, namely the introduction of goods and services tax, was consultation in setting inflation target any economy. Should achieving near-full employment
accomplished when consensus was achieved with state governments. But both or minimising the output gap in the economy be the
W
land and labour reform, which are central to increasing investor interest and orld over, doubts are being raised about the issue that should be prioritised by the new government objective, while deciding the optimal target inflation
market efficiency in India, has stalled because of significant opposition, not effectiveness and even relevance of the infla- formed in June. rate? The government should take a fresh look into
least among state governments. The four proposed labour codes that consolidate tion targeting mandate of central banks. But before that, a few words on the current stand the matter and have wider consultations while final-
existing central labour laws cannot be properly rolled out, for example, until all Central banks have faced criticism for failing to cor- taken by the RBI on inflation. The RBI is right in focus- ising the inflation target. The broad contours of the
states pre-publish draft rules under those codes. Union Finance Minister Nirmala rectly judge and predict the interest rate-inflation ing on bringing the CPI-based inflation below 4 per rationale, the assumptions made, and the computation
dynamics during the post-Covid period. cent. The RBI Act, as amended in 2016, mandates the methodology ought to be in the public domain.
Sitharaman, also in a recent interview, stated the next target for reforms in India
Take the Indian case. The Reserve Bank of India RBI to keep CPI within 4+/-2 per cent. The RBI lacks One of the arguments put forth by the RBI for not
would have to be at the level of local governance, given that panchayats and (RBI) kept the interest rates quite low during 2020-21 discretion to target some other inflation index. In fact, being able to meet the inflation target during 2021-22
urban local bodies controlled a lot of regulatory activity as well as land. Both Mr and 2021-22. Inflation had conspicuously started rais- had the RBI adhered strictly to its mandate in 2021-22, was that the monetary policy wasn’t the right tool to
Modi and Ms Sitharaman stressed that competitive energy had built up among ing its head by the middle of 2021-22, but was consid- the current situation of high real interest rates might contain the inflation then, which was primarily on
many states, and the desire to attract investment was universal. ered transitory by the central bank and ignored. Then, have been averted. Even from a growth perspective, account of supply-side disruptions. There is some
There is, however, a great deal more that the Union government can and all of a sudden, in May 2022, the RBI began one of the there are no compelling reasons for the RBI to cut merit in this argument. But then, what is the way for-
should do to build a consensus. Mr Modi has spoken occasionally of the level of steepest interest rate-raising cycles in recent history. rates; gross domestic product (GDP) is projected to ward in such a situation? Can the RBI be completely
cooperation between the state and Union governments visible during the height The repo rate was increased from 4 grow by 7.6 per cent in FY24 and more let off the hook?
per cent to 6.5 per cent by February than 7 per cent in FY25. As for ignor- That brings us to the issue of RBI’s accountability
of the Covid-19 pandemic. What should be recognised, however, is that cooper-
2023, and rates have been kept at this ing the US Fed actions, there are lim- under the law, and ensuring transparency. Section
ation came about because of frequent meetings between the Prime Minister and
level since then. itations, given the dollar’s hegemony 45ZN of the RBI Act, 1934, mandates the RBI to submit
chief ministers. The institutionalisation of Union-state interaction is essential if For quite some time now, the mar- in international trade and finance. a report to the government if it fails to contain average
a common approach to reform is to be constructed. In the past, the Planning kets have been speculating about when When it comes to the inflation inflation below 6 per cent during the previous three
Commission played part of that role. Its successor, the NITI Aayog, needs to take the RBI would start reducing interest targeting mechanism, to begin with, quarters. The report should contain the reasons for
more measures to replicate that effort. The Inter-State Council, a constitutional rates. Many experts view the current an ab initio look at what is being tar- failure to achieve the inflation target; proposed reme-
body that last met in 2017, also needs more frequent interactions. real interest rates to be high, discour- geted would be helpful. What are dial actions to be taken by the Bank; and an estimate
More communication between the political leadership of states and the aging new investments and hurting the commonly used different infla- of the time-period within which the inflation target
Union government is essential, ideally with minimal politicisation and a focus growth. The arguments circulating tion measuring indices and the pur- shall be achieved following timely implementation of
suggest that the increase in repo rate AJAY TYAGI poses they serve? What is the inter- proposed remedial actions.
on common-policy priorities such as welfare delivery and investment. This
has achieved its purpose, and it is time play amongst these indices — are The RBI did submit such a report to the government
would also help check the increasing pressures on Indian federalism, which for the RBI to announce a road map for rate cuts. Some they often projecting a conflicting picture of inflation? in November 2022. What does that report say and what
come from multiple avenues — whether contrasting approaches to law or fiscal advocate that the real interest rates shouldn’t be more There is a need to revisit the constituents of these action has been taken by the government on that
policy — and which, if ignored, could cause destabilising sub-nationalism to than 1-1.5 per cent, and question whether consumer indices as well as their weights. report? Considering the hullabaloo about inflation,
take hold. But it would also be necessary that the government in New Delhi price index (CPI) is the right inflation index to target. The CPI, wholesale price index, and GDP deflator and the fact that the genesis of inflation getting out of
respect the political desires, aspirations, and requirements of state leaders, some They argue that the RBI should take the lead in reducing are the three indices commonly used by economists control lies in the second half of 2021-22, it would be
of whom will naturally be from Opposition parties. This understanding has been rates without waiting for the US Fed to do so. On the in various analyses. While they surely serve different fair for the government to publicly disclose, in an
somewhat lacking in recent years, and needs to be built again. contrary, there are others who support keeping the purposes, of late, the lack of correlation in their move- appropriate manner, the gist of the report and the
rates high to bring the CPI below 4 per cent. Some have ments has raised many eyebrows. Enough commen- action taken thereafter.
even raised the basic doubt of whether the central bank tary is available in the public domain, debating the
can actually credibly control inflation. usefulness of these indices, besides doubting their
The heat is on
The writer, formerly in the Indian Administrative Service
This column examines the need for tweaking the computation methodologies. The unusually low GDP and chairman of Sebi, is a distinguished fellow at the
present inflation-targeting mechanism in India, an deflator during 2023-24, which pushed up the GDP Observer Research Foundation
Substantive, practical adaptation policies can help
E
lections have never been won or lost solely TMC manifesto that mentions the need for having expansion and storage capacity. The DMK emphasises
might account for almost 43 per cent of global job losses from heat stress-associated
based on voters reading manifestos! But it is a coastal economic zones. river-interlinking projects and cold storage facilities.
productivity declines by 2030. The government data shows the spread and incidence
fact that think-tanks and policy cells of various Water is clearly the next big item after railways. The The TMC mentions cold-chain infrastructure.
of heatwaves are also rising — from nine states in 2009 to 23 states in 2020 (and this political parties spend considerable time drafting their manifestos of the BJP, Congress, and TMC all prioritise In the realm of housing infrastructure, the BJP
when the pandemic lockdown had stalled economic activity). In the same period, manifestos and getting them cleared by their political providing access to clean and safe drinking water. The vows to expand the PM Awas Yojana and strengthen
the number of average heatwave days has risen sharply, from 7.4 to 32.2. The encour- bosses. The recent skirmish between the Bharatiya DMK and Congress manifestos specifically mention the RERA Act. The Congress champions the Right
aging news is that the Centre and state governments have taken cognizance of the Janata Party (BJP) and the Congress party on certain the establishment of desalination plants in all coastal to Homestead Act.
problem and acted with some urgency. Since 2016, for instance, after heatwave specific items in the Congress manifesto confirms that areas. The BJP and Congress manifestos focus on In the sphere of power sector policies, the BJP, TMC,
deaths exceeded 2,000, the Centre drew up national guidelines for preventing and manifestos have not completely lost their relevance. addressing water quality, effluent management, and and DMK all converge on promoting renewable energy.
managing heatwaves as a broad framework for states to create heatwave action So, here are some of the key infrastructure high- river revitalisation. The CPI(M) proposes reformulating The Congress presents a Green New Deal Investment
lights from the manifestos of the BJP, Congress, the National Water Policy to treat water as a scarce pub- Programme, aiming to boost renewable energy adop-
plans. The National Disaster Management Authority (NDMA) stipulated that heat-
CPI(M), DMK and TMC. lic good and emphasises protection of rivers, expansion tion and generating green jobs. Notably, it proposes
waves should be declared when the actual maximum temperature remains 45 It is not surprising that the railways has taken centre of water bodies, and increased groundwater recharging. incentivising panchayats to establish solar grids for
degrees Celsius, irrespective of normal maximum temperature. Among the most stage in the manifesto of the BJP, lending credence to In aviation, the BJP mentions expanding interna- communal use, aligning with its focus on grassroots
useful practices have been regular heatwave warnings by the India Meteorological the increasing belief that the railways tional airports and implementing the empowerment. The BJP vows to expand green hydro-
Department (IMD) and a standard package of Dos and Don’ts for managing them. is set to be of greater significance in Amrit Kaal Civil Aviation Master Plan gen production, envisioning India as a hydrogen hub.
Employers have responded by shifting heat-exposed work to cooler night- the next five years than roads. The to upgrade airports into regional At the policy level, the BJP’s manifesto emphasises
time hours, a transition that agricultural labour had made some time ago. The BJP talks of constructing 5,000-plus hubs. The CPI(M) advocates public- the need for a robust resource mobilisation strategy,
upshot has been a rapid diminution in heatwave-related deaths from 2,040 in km of new tracks every year, expand- sector control over airport construc- blending public and private investment across sectors
2015 to 27 in 2020. Though these numbers are creditworthy, the bigger challenge ing the Kavach safety systems, re- tion, operation, and maintenance. like railways, airports, and digital infrastructure. The
developing over 130- plus railway sta- Transport and logistics feature manifesto aims to attract private investment by sim-
is to expand and institutionalise heatwave management as an ongoing imperative.
tions, and introducing rapid rail prominently in party manifestos, plifying regulations for private investment in infras-
Doing so will require much more than issuing heatwave warnings and advisories; inter-city train services like Delhi- reflecting diverse strategies for their tructure. The Congress also prioritises reviving pub-
substantive and practical adaptation policies at micro and macro policy levels Meerut. Initiating metro rail projects development. The BJP’s manifesto lic-private partnerships (PPPs) whilst expressing
are called for. For instance, with reservoir levels falling to 35 per cent, a water in 20-plus cities is high on the agenda, talks about expanding the fleet of e- concern over the effectiveness of the current PPP
crisis is imminent, as Bengaluru demonstrated earlier this year. This calls for an as is the propagation of user-friendly Buses, strengthening waterways, and model. If one were to commend consistency across
urgent exercise by urban authorities to enforce water harvesting in all high rises, super apps. The Congress party’s only INFRATALK urges the creation of unified past and current manifestos, the prize would surely
a mandate that appears to be observed more in the breach in water-scarce cities. contribution to the railway discussion metropolitan transport systems to go to the CPI(M) for never wavering from its espousal
At the policy level, state governments may need to bite the admittedly hard is insisting on safety and modernising VINAYAK CHATTERJEE integrate multi-modal transport facil- that all infrastructure development, maintenance,
outdated infrastructure. In the safety ities. The Congress manifesto sup- and operations should be by the public sector!
political bullet and reconfigure incentives given to water-guzzling crops such as
aspect, it is joined by the DMK and TMC. Rather sur- ports the idea of integrated multi-modal public trans- A key missing area across all the manifestos
sugarcane and rice in irrigated areas in Punjab, parts of Uttar Pradesh and prisingly, both the DMK and TMC want the re-intro- port in urban areas. All this should logically lead to the relates to the concern about urban infrastructure.
Maharashtra in favour of water-maximising grains such as millets that also have duction of a separate Rail Budget like old times! implementation of a Unified Metropolitan Transport Whether it is the development of Smart Cities or
the potential to improve public-health outcomes. The BJP appears to have no fresh ideas on roads Authority (UMTA) for Indian cities, which is still await- raising municipal bonds to fund India’s booming
Other obvious measures would include planting more trees in public spaces other than building 15,000 km of access-controlled ing real implementation after its first policy announce- city infrastructure requirements, the political will
as cities such as Dubai and Singapore have mandated and stipulating architectural highways. There is no mention of the much-antici- ment in 2006. The TMC aims to expand Kolkata Metro appears to be absent.
standards that reduce the pressure on air conditioning. At the same time, white- pated GPS-based tolling system. The makings of a into the suburbs. Only the BJP and DMK address elec- Overall, it must be said, with a certain amount
collar work hours could also be reworked to start earlier in the day and end more investor-friendly Build Operate Transfer for- tric vehicles (EVs) in their manifestos, where they pri- of disappointment, that the manifestos do not have
before day temperatures peak. With polluting coal-fired plants doing the heavy mat also does not find mention. The Congress wants marily focus on establishing nationwide charging much to offer by way of inspirational programmes
a new formula for calculating road tolls, though the infrastructure and increasing subsidies for EVs. and ideas for India’s infrastructure development.
lifting as demand for electricity peaks, there is some urgency in accelerating the
specifics are left unsaid. Road safety is only alluded Agricultural infrastructure emerges as a pivotal But maybe one should not expect too much
adoption of battery-storage technologies so that renewable sources such as wind to in the BJP manifesto. battleground for parties vying for the rural vote, with from manifestos.
and solar can play a more significant role in power generation. With the risk of In terms of ports, the BJP manifesto restricts the manifestos of the BJP, Congress, DMK, CPI(M),
heatwaves likely to grow exponentially in the decades to come, India, one of the itself to doubling the share of inland water transport and TMC all laying out a range of strategies. The BJP The writer is an infrastructure expert and founder and
epicentres of this trend, will need to adapt at a faster rate than ever. and the CPI(M) wants withdrawal of the Landlord underscores integrated planning via initiatives like managing trustee of The Infravision Foundation. Research
Model of public sector port development. It is the the Krishi Infrastructure Mission, focusing on irrigation inputs were provided by Vrinda Singh
Deconstructing India’s national security system deploys three deputy NSAs. There is a
large complement of officers on
deputation from other security agencies.
It is both a central intelligence
external security environment. serving as a border guarding force on the The book acknowledges the positive ahead of the technology curve. processing and evaluation centre as well
The book is divided into four parts. Sino-Indian border; the Seema Suraksha role played by the country’s security The study is comprehensive enough as a policy research and analysis
Part 1 looks at the Indian armed forces — Bal (SSB), which is currently deployed on system against difficult odds. But it has but there could have been a further platform. The NSC is supported by a
the Army, Navy and Air Force, their the India-Nepal and India-Bhutan identified certain common challenges elaboration of the changes brought about National Security Advisory Board
strengths and vulnerabilities. Part 2 borders; and the Border Security Force, that confront virtually all the different in the wake of India becoming a declared (NSAB) composed of eminent but retired
examines the structure and capacities of which guards the India-Pakistan and the security-related institutions. They suffer nuclear weapon state in 1998. This led to public officials, domain experts and
BOOK REVIEW the country’s premier intelligence India-Bangladesh borders. These are from lack of capacity on the one hand but the setting up of the National Security academics who advise on a wide range of
agencies, the Research and Analysis Wing under the home ministry. The Central have to manage Council (NSC), national security issues. The Indian
SHYAM SARAN (R&AW) for external operations and the Reserve Police Force (CRPF) is the largest overlapping and Institutional chaired by the prime nuclear doctrine in the aftermath of the
Intelligence Bureau (IB) with a domestic paramilitary force (over 330,000) ambiguous Roots of India’s minister and nuclear tests of 1998, was drawn up by
I
n recent years, several books have remit. Neither has any legal instrument as available for internal security duties jurisdictions on the Security Policy including the the NSAB. During the time I was chairing
been published on India’s national its basis and therefore, are not subject to throughout the country in support of other. They are ministers of home, the NSAB, it had worked on a draft
security, but what makes this volume parliamentary or judicial oversight. state police forces and for anti-insurgency plagued by
Editor: Milan external affairs, national security strategy but this could
edited by Milan Vaishnav both unique Part 3 is devoted to agencies operations against the Naxal and Maoist significant and Vaishnav defence and finance. not be put in the public domain.
and especially useful, is its responsible for internal and border armed revolutionary movements. The persistent vacancies Publisher: Oxford The newly The book should have also looked at
comprehensive description and critical security. They include the Assam Rifles, Central Industrial Security Force (CISF), at all levels. They University Press established office of the institution of the Chief of Defence
analysis of the institutional which is deployed in the Northeast both also under the home ministry, guards tend to be top heavy the National Services (CDS) who will play a key role in
Pages: 336
underpinnings of India’s security policy. for guarding the border with Myanmar industrial and commercial with better trained Security Advisor the setting up of theatre commands and
Dr Vaishnav must be complimented on and China (through Arunachal Pradesh); establishments, airports and other and better paid Price: ~1,440 (NSA) was a major in the nuclear command authority and
assembling a group of bright and the Rashtriya Rifles, deployed in Jammu critical infrastructure. And the National personnel at senior departure in the the Strategic Forces Command, which
relatively young academics as and Kashmir for counter-insurgency and Security Guard (NSG) was set up as a levels but ill-trained national security manages India’s nuclear deterrent.
contributors, who bring both rigour and anti-terrorist operations. Assam Rifles commando force. While under the home and poorly treated lower ranks. A feudal system. He serves as secretary to the This sets the agenda for a further
acuity to their examination of a complex functions under, and is financed through, ministry, it is managed operationally by culture pervades the security forces. NSC. There is no legal sanction for the study but Dr Vaishnav’s edited volume
and often opaque subject. This is an the home ministry but is operationally the defence ministry. Constables often serve as domestic staff office of the NSA but he has emerged as a will remain an indispensable and one of
opportune time to explore the various under the Indian Army. The Rashtriya Part 4 is devoted to the premier for senior police officers and so do critical and indispensable node in the the best researched reference volumes
institutions through which the Indian Rifles is under the defence ministry and investigative agencies, the Central soldiers for higher rank military officers. security system, both domestic and on India’s national security system.
state seeks to uphold the security of the functions under the operational control Bureau of Investigation, which covers The intelligence agencies operate in a external and in the nuclear domain.
country because they are inevitably being of the Indian Army. The other criminal matters, and the National legal limbo, immune from parliamentary The National Security Council The reviewer is a former foreign secretary and
affected by the rapid and significant shifts paramilitary formations are the Indo- Investigation Agency (NIA), which scrutiny and public accountability. And Secretariat is now a powerful institution served as chairman, National Security
taking place in both the domestic and Tibetan Border Force (ITBP), primarily focuses on anti-terrorism. none of the institutions are geared to stay headed by the NSA and currently Advisory Board (2013-15)
14 NEW DELHI
TUESDAY
MAY 21, 2024
Opinion
E S TA B L I S H E D IN 1 9 24
Arunabha Ghosh
{ OUR TAKE }
Saving trees to
Rethinking economics
beat the heat in times of climate crisis
India has lost a chunk of its farmland trees. This trend an economics student. These lessons nodes within cleantech supply chains.
In a warming world, no longer hold true and need a reality Second, contrary to neoclassical
needs to be reversed, which may need policy tweaks businesses and countries check. economics, capital does not flow from
First, we were taught that indus- capital-rich to capital-poor regions.
in the Global South
T
he exceptionally high summer temperatures trial policy is bad, rife with ineffi- Nobel Laureate Robert Lucas pointed India is currently reeling under severe heat waves AFP
hold a lesson: India badly needs affordable, need to become climate- ciency and crony capitalism. How- this out as the Lucas Paradox. For
ever, given the current clean energy instance, in the case of the energy ment. This means that EMDEs either 1970s. This needs more diversified
easy- access adaptation measures to protect ready and tap into landscape, industrial policy can be a transition, money does not flow to face high cleantech acquisition costs and interdependent value chains,
people from extreme heat, an impact of the opportunities that tool for emerging markets and devel- where the sun shines the most, or do not have the time to reverse-en- access to capital, and co-developed
climate crisis that manifests regularly every summer. oping economies (EMDEs) to gain namely the Global South. The cost of gineer existing technologies. A new technologies, but also rules and stan-
arise from the competitiveness along new techno- capital in developing countries and paradigm of technology co-develop- dards to preempt regulatory islanding
Access to shade from the scorching sun can help save logical and industrial frontiers. It can, economies is several percentage ment must be pursued between and non-tariff barriers to trade in
people, especially in rural areas. However, evidence
energy transition for example, tackle some of the cur- points higher than in OECD countries. advanced economies and EMDEs. cleantech. The absence of an energy
A
suggests a trend in the reverse. seismic shift is under- rent concentration of clean energy Some of that is driven by the real risks This not only requires financing but security architecture for the fuels of
way in the battleground technologies. According to an analy- of investing in these geographies, but also the exchange of technical and the future and price wars will create
New research that mapped 0.6 billion farmland trees between environmental sis by the Council on Energy, Environ- in large part, it is due to perceived human resources. The geographies of geopolitical risks and suboptimal
in India, excluding block plantations, and tracked them imperatives and eco- ment and Water (CEEW), 70% of the risks. Our priority, then, must be to emerging markets can be used as lab- markets rather than bring equilib-
over the past decade, found that around 11 ± 2% of the nomic realities, chal- global exports in solar photovoltaics use climate finance not just for the oratories for cleantech that will be rium and security to global energy
lenging the very core of came from only four countries in the deployment of cleantech, but also to deployed in these fast-growing econo- markets.
large trees (about 96 m2 crown size) from 2010/2011 had conventional economic wisdom. Cli- last decade. These concentrations build manufacturing capacity and mies. Last year, at the G20 Leaders’ Sum-
disappeared by 2018. Then, during 2018–2022, more mate change, once viewed only lead to high import dependence for supply chains across low-, middle- A fourth flawed lesson economics mit in New Delhi, the world’s major
than five million large farmland trees (about 67 m2 through the lens of extreme tempera- low- and middle-income countries. and high-income economies. For this students are often taught is that as economies came out and announced
ture fluctuations and weather pat- Nearly all low- and middle-income to happen, limited public capital and long as the price is right, energy and a bold new GDP — a Green Develop-
crown size) vanished, partly due to altered cultivation terns, and dismissed as a “polar bear countries were almost entirely finance from multilateral develop- resources will flow unhindered. This ment Pact. If we take these failed eco-
practices, where trees within fields are perceived as problem”, has morphed into a full- dependent on concentrated imports ment banks must be used to guaran- notion now stands on shaky ground nomic lessons and reality checks into
detrimental to crop yields. India’s farmland trees include blown crisis. It now reverberates of solar technologies and lithium-ion tee against policy risks and hedge in an era of energy insecurity and geo- account, this new GDP can help us
through global economies, impacting batteries over the last 10 years. We against currency risks. political turbulence. Fifty years have forge a covenant for green develop-
multipurpose ones such as khejri (Prosopis cineraria), everything from the prices we pay for must keep the global clean energy Third, conventional economic wis- passed since the oil shocks of the ment that is simultaneously sustaina-
neem (Azadirachta indica), mahua (Madhuca longifolia), goods and services, the heat to which market free, open and transparent. dom holds that technology, or the 1970s, which spurred cooperation ble and economical. Economics 101
gum (Acacia nilotica), and Indian rosewood (Dalbergia we have to adjust (India is currently Cartelisation, creating islands of pro- x-factor in growth equations, is exoge- towards pooled energy security makes sense only when we make
reeling under severe heat waves), the tectionist regulations, and creating nously determined, resulting in shifts among mostly rich and energy-hun- unreal assumptions about the real
sissoo), which provide a variety of ecosystem services location of industries, and the weight non-tariff barriers are neither eco- in the production frontier. But the gry countries. Today, we find our- world. We should stop expecting real-
from conservation (for example, soil fertilisation and of different voices in international nomically efficient nor politically world’s transition to cleaner energy selves grappling with similar ques- ity to fit theory and instead design pol-
shade) to consumption (fruits, fuelwood, fibre, mulch, forums. To emerge as a leader in this wise. Whereas China has aggressively shows why technology policy and tions but regarding the secure supply icy to correct for market failures — to
rapidly heating world, businesses and pursued subsidies to build up its clean development are endogenous and and distribution of sustainable energy build a clean future and jobs, growth
medicine, fodder). This is possibly the first time that the countries in the Global South need to energy prowess, now industrial policy often restricted within a few coun- resources, technologies and products. and sustainability for all.
status of individual large trees is being mapped using become climate-ready and tap into in the European Union and the United tries. We find that 95% of clean energy Solar panels, wind turbines, critical
microsatellites providing spatial resolution of 3–5 m. opportunities that arise from the States, while necessary for their own technology patents are owned by citi- minerals embedded in a battery, or Arunabha Ghosh is CEO, Council on
energy transition. But this is where clean energy transitions, risks divert- zens in high-income and upper-mid- green hydrogen electrolysers are Energy, Environment and Water.
The results are a cause for worry, suggesting that India is outdated economic logic challenges ing investment from EMDEs. So, fast- dle-income countries. The bigger missing a global architecture to The views expressed are personal.
gradually losing a major, low-hanging climate the evolving environmental logic. growing EMDEs must make con- challenge? Many of these patents will ensure security of supply to match This article draws on the author’s keynote
adaptation solution. This also reinforces why India’s I increasingly find myself reflecting certed pushes to invest in cleantech not expire before the 2030 climate burgeoning demand across much at the International Vienna Clean Energy
on four fundamentals I was taught as industries and position themselves as targets set under the Paris Agree- wider geographies compared to the and Climate Forum
rural heartland is becoming dustier and drier and living
conditions even more difficult.
This trend needs to be reversed, which may
{ SIMPLY ECONOMICS }
necessitate policy tweaks. For example, this newspaper { LAI CHING-TE } TAIWANESE PRESIDENT
reported in February that a new notification by the Pramit Bhattacharya
Union environment ministry said corporations and
other private entities could sponsor plantations on
P
degraded land, including open forest and scrubland,
wasteland and catchment areas, and avail green
Inequality debate must As the future of both sides of
the Taiwan Strait will have a
centre around evidence
credits, which could be traded. The fear that this could
result in a change in land use and impact biodiversity is
decisive impact on the world’s
genuine: India’s experience with plantations, especially development, we will be the
raised through social forestry schemes, is that they helmsmen of peace
A
he soft power of the world’s biggest in urban areas, in areas with high levels of
encourage monoculture and rarely enrich biodiversity
or contribute to livelihoods. It is time the conservation
ecosystem recognises the role of farmland trees,
especially their heat-mitigation potential, and
T superpower has been built on the
narrative of the “great American
dream”. This narrative suggests that
any American — regardless of her income,
location, or social background — can aspire
schooling and in South India, their research
suggests. Reservations for SCs and STs may
have helped them narrow the educational
gap with other caste groups, the authors
argue.
After he was sworn in as the president at a ceremony in Taipei
formulate policies in consonance with the needs of to a vastly richer life. One only needs to be A 2020 research paper by the economists
Need to transcend
voter apathy in cities
that of their parents. The great American
dream appears to be a great American myth
to many of its citizens today. The rise in eco-
nomic populism (and Trumpism) partly
reflects their insecurities.
argued. A 2022 research paper by the demog-
raphers Sangita Vyas, Payal Hathi, and
Ashish Gupta found similar patterns in
health outcomes. Compared to “high-caste
Hindus” (forward castes and OBCs), life
A sive in Gaza, western nations have of the ATT is more specific. It bars a country
come under scathing criticism for from supplying conventional arms if it has the
supplying arms to Israel. United “knowledge” that these arms “would be used
States (US) President Joe Biden recently said in the commission of genocide, crimes
the US would halt the shipment of offensive against humanity, grave breaches of the
The unravelling of the American dream expectancies of STs was four years lower, weapons to Israel if it invaded Rafah in the Geneva Conventions of 1949, attacks directed
has been chronicled most effectively by an that of SCs three years lower, and that of southern Gaza Strip. Simultaneously, there against civilian objects or civilians protected
arly trends from the polling in Mumbai
E
American economist of Indian origin, Raj Muslims about a year lower, the researchers are reports of the US planning to sell more as such, or other war crimes”. The word
constituencies on Monday suggest that the turnout Chetty. In a landmark 2016 research paper, wrote. than $1 billion in new weapons to Israel. As “knowledge” is not defined in the treaty. Thus,
will struggle to match the 2019 peak of 55.4%. Chetty showed that a child born in the 1940s Over the past four decades, India’s growth death and destruction continue unabated in whether the transferring State has the
had a 90% chance of exceeding her parents’ engine has lifted millions from poverty, and Gaza, the pressure is mounting on several “knowledge” that its arms would be used in
This is in line with the worldwide trend of apathy among income. By the 1980s, that chance had improved living conditions across the coun- countries, including the US, to stop the supply the commission of genocide and other war
urban voters towards elections. Mumbai, of course, is declined to 50%. A more recent Chetty paper try. But a growing body of evidence suggests of arms to Israel because of the apprehension crimes will have to be ascertained by examin-
not an exception in India: Metros such as Bengaluru, based on granular neighbourhood data sug- that the extent of improvement has varied that these arms are being used in ing the international circumstances.
gests a strong local effect on life outcomes. sharply across regions and social groups. allegedly committing war crimes. The transferring State must under-
Hyderabad and Pune tend to record turnouts lower than Whether one ends up being a successful Hence, the Opposition parties’ demand for But this is not just a political ques- take a risk assessment, also indi-
in their rural neighbourhood. Take Bengaluru. The city entrepreneur or ends up in jail for peddling better evidence on the extent of socio-eco- tion. There is a powerful legal cated in Article 7(1), to determine
recorded a turnout of 54.1% this election when polling drugs depends on the micro-location in nomic inequality in the country has merit. dimension to it. Several lawsuits whether the recipient State will use
which one is brought up, Chetty’s research The ruling party’s negative response to have already been filed in the the arms it supplies to commit war
across Karnataka concluded with a turnout of 69.9%. suggests. this demand may have been shaped by elect- domestic courts of countries like the crimes.
Prabhash
Similarly, Maharashtra recorded a 62.9% turnout in the Countries that are poorer than the United oral considerations. But once the elections United Kingdom (UK), the US, President Biden’s statement indi-
States (US) also tend to be poorer in statis- get over, both sides will need to shape a con- Canada, Denmark, and the Nether- Ranjan cates that the US has the “knowl-
first four phases, while Mumbai is struggling to match
tics. Hence the kind of high-quality granular sensus on how best to get accurate data on lands questioning the export of arms edge” that its arms would be used in
the 2019 figure. datasets that Chetty uses for his research is different aspects of socio-economic inequal- to Israel. A court in Hague has attacking civilians in the city of
Various reasons have been offered to explain simply unavailable in India. Nonetheless, the ity in the country. The results of a recent You- ordered the Dutch government to forbid the Rafah. Thus, under Article 6(3) of the ATT,
the urban voter’s apathy to cast his/her vote — from limited data that does exist suggests that the Gov-Mint-CPR survey suggest that even afflu- supply of F-35 jet fighter spare parts to Israel the US should not be supplying arms to Israel.
accident of birth has an outsized influence ent urban youth are not averse to the Opposi- due to a “clear risk” of serious violations of Moreover, South Africa’s case against Israel
weather to dissatisfaction with the candidates. on life outcomes even here. tion’s demand for a caste census. A large international humanitarian law (IHL) being before the ICJ for the alleged commission of
In Mumbai’s case, intense campaigning by candidates A 2018 report by World Bank researchers section of Bharatiya Janata Party (BJP) sup- committed in Gaza. Internationally, Nicara- genocide in Gaza and the ICJ’s two provi-
in what is a deeply polarised election, and the showed that intergenerational educational porters view this demand favourably. gua has brought a claim against Germany sional measures order against Israel earlier
mobility in India is much lower than in five The evidence and analysis presented by before the International Court of Justice (ICJ), this year constitute material international cir-
extra efforts by the administration to raise voter other large developing countries the Chetty and other scholars in the US have targeting the material assistance Germany cumstances that the US and other arms-sup-
participation, likely came up against these, and also the researchers studied – China, Brazil, Indone- sparked an intense debate on the causes and provides to Israel in alleged breach of the plying countries need to consider. While it is
prospect of an extended weekend (the elections were on sia, Egypt, and Nigeria. In other words, chil- consequences of inequality in the “land of Genocide Convention and IHL. Nicaragua not legally established yet that Israel has
dren of under-educated parents in India find opportunities”. The American philosopher requested the ICJ for provisional measures breached the Genocide Convention, it is criti-
Monday, which was declared a holiday). While there it much more difficult to rise up the educa- Michael Sandel has argued against the “myth against Germany, directing it to stop provid- cal to recall that the ICJ, earlier this year, held
are structural reasons such as flaws in electoral rolls tional ladder than in other parts of the devel- of meritocracy” that divides American soci- ing material support to Israel, including mili- that prime facie, South Africa’s claims may
that contribute to the low turnouts, the fact is urban oping world. A 2019 analysis of the Annual ety into two opposing camps of winners and tary assistance. The ICJ did not accept Nicara- fall within the Genocide Convention and that
State of Education Report (ASER) database losers. Most wins in life are the result of gua’s request. Nonetheless, this case demon- it is plausible that Israel has committed geno-
centres contain atomised societies, in which individuals showed that children from privileged fami- favourable circumstances, and the ideology strates the significance of this issue and the cide in Gaza. In its second provisional meas-
do not necessarily relate to the larger social dynamic, lies – those with access to better housing and of meritocracy tends to downplay that, San- need to understand the international legal ures order, the ICJ expressed its concern over
including the democratic process. And if rural voters household amenities – had better learning del has argued. Although disagreement per- obligations that bind countries when export- the deteriorating humanitarian situation in
outcomes (‘Privilege shapes school out- sists on how to remedy American inequality, ing arms to other countries. Gaza and ordered Israel to take all necessary
weaponise elections to censure the state, urban voters comes’, January 22, 2019) compared to peers. there is a fair amount of agreement on the The most noteworthy treaty containing the steps to provide humanitarian assistance.
do not necessarily view participation in elections from a Among under-privileged families, children nature and extent of the problem. law on arms exports is the Arms Trade Treaty Despite the ICJ’s orders, the ground situation
rights perspective. with better-educated parents had higher The world’s largest democracy also needs (ATT), adopted by the United Nations General in Gaza hasn’t improved materially. In light of
learning outcomes. to have a reasoned debate on inequality. Assembly in 2013 and entered into force in all of this, the US and other countries are
Delhi, which votes on Saturday, has a relatively better A 2021 research paper by economists Sam Gathering detailed and credible evidence on 2014. The objective of the ATT is to regulate under a legal obligation to pause the supply of
record (60.6% in 2019) — but the challenge this time is Asher, Paul Novosad, and Charlie Rafkin inequality patterns should be the first step international trade in conventional arms by arms to Israel.
posed by the fact that May 23 is a public holiday, suggests that intergenerational educational towards that goal. keeping the principles of the UN Charter in
mobility has improved for Scheduled Castes mind. Article 6(2) of the ATT prohibits a Prabhash Ranjan is a Humboldt fellow and
making for a four-day weekend for those willing to take and Tribes (SCs and STs) since the 1960s but Pramit Bhattacharya is a Chennai-based country from transferring conventional arms professor at the Jindal Global Law School.
Friday off. Will Delhi do better than its peers? not for Muslims. Upward mobility is higher journalist. The views expressed are personal to another country if such transfer would vio- The views expressed are personal
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stocks worth ₹339.7 billion just in May. profit in 2014-15. Clearly, among other
DIIs are institutions like insurance things, lower taxes have helped spruce
companies, mutual funds, provident up profits of listed companies, pushing
funds, banks, etc, which primarily up stock prices. Of course, the huge
invest the money they collect from amount of money printed by central
retail investors. Further, investments banks after the pandemic broke out
made by DIIs include money coming in also helped.
through systematic investment plans of These dynamics seem to have worked
equity mutual funds and investments wonderfully well for stock market
VIVEK KAUL made in government investment investors over the last few years. And
is the author of ‘Bad Money’. schemes like the Employees’ Provident now there seems to be a small fear, at
Fund and National Pension System. least among FIIs, that if the BJP-led
So, on the whole, Indian retail inves- NDA isn’t elected again, happy days will
tors seem confident that the current go away: If the opposition-led alliance is
A
ny stock market discounts future be declared. Also, FIIs on the whole in their manifestos.
possibilities, especially what may seem to have a very small doubt about Further, if the government chooses to
happen in the near future. The whether the BJP-led National Demo- finance higher expenditure through a
B
anks in India reported record prof- tilt towards retail lending over corporate loans 75,124.3 points and a low of 71,816.5 increasing the formalization of the product (GDP) in 2018-19 and are
its last fiscal year, public sector isn’t ideal. The big policy question is whether points has been 4.4%, which isn’t much Indian economy through moves like expected to rise to 3.42% in 2024-25.
when we take history into account. Also, demonetization and the goods and ser- Corporate taxes were at 3.51% in 2018-19
banks (PSBs) included, but a stellar and when further chunks of PSB equity will go on 17 May, the Sensex closed at 73,917 vices tax (GST). This was followed by a and are expected at 3.18% in 2024-25.
bank performance is no reason to private. The sense that this process may have points, or 1.6% lower than the highest cut in the rate of corporate income tax So, any extra expenditure is likely to be
abandon reforms in this sector. stalled stems from the government’s failure level since April, when the election in September 2019 and the destructive financed through a higher corporate tax
Bank privatization, for instance, last year to privatize IDBI Bank as planned. In started coming into focus. impact of the pandemic on the informal rate. The idea would be an easier sell to
has evidently taken a back seat, with no major the context of this miss, reports had emerged Now, the thing to remember is that sector, benefitting companies in the citizens as well. It will mean lower busi-
the parts can behave differently from listed space through higher sales, lower ness earnings, unless company sales
moves seen lately by way of the government that PSB privatization would be put through a the whole. And that seems to be hap- tax and increased profits. grow faster, and lower earnings typi-
diluting its ownership. Perhaps the big mergers rethink. The idea has always faced resistance. pening with the stock market as well. Data of more than 5,000 listed com- cally mean lower stock prices.
executed a few years ago that brought down the If PSBs can be profitably run and also serve as At a simple level, investors in the stock panies from the Centre for Monitoring Now most retail investors won’t have
count of PSBs in India to 12 from 27 got policy- instruments of state policy, some critics ask, market can be divided into two broad Indian Economy suggests that from thought this through in detail. If they do
makers to step off the pedal. Now with swelling why privatize them? As with the central bank’s categories: foreign institutional inves- 2018-19 to 2022-23, the net sales of so, they are more than likely to arrive at
tors (FIIs) and domestic institutional these companies went up 52%, corpo- this conclusion. Institutional investors
profits stuffing public coffers, off-loading banks surplus, the Centre may also be tempted to rely investors (DIIs). rate taxes paid went up only 36% and have probably already done so, though
may slide further down the priority order. But on profitable PSBs for revenues. These argu- Since April, FIIs have net sold stocks their net profit rose sharply by 187%. In they won’t say so in public. Indeed, a
banking remains much too public-sector domi- ments do not take the larger picture into worth ₹369.1 billion, or around $4.4 bil- comparison, between 2014-15 and stock market is a weighing machine for
nated. Government equity control must come account. As capital plays an ever larger role as lion. In the same period, DIIs have on a 2018-19, net sales had gone up 30%, the future, but, like anything else, it’s
down, so that these banks are subject to market the economy’s mover and shaker, we need a net basis bought stocks worth ₹781.6 corporate taxes by a higher 38% and net conditioned to think by taking only its
billion. Further, DIIs have net bought profit in 2018-19 was around 90% of the own incentives into account.
discipline, with private owners keeping watch. credit market that’s as efficient as it can get.
As a business of judging risk and pricing credit, This requires lenders to achieve corporate
banking tends to perform best over time when governance and operational efficiency levels
bank managers are held to account by a crowd that are globally competitive. Widely held
of owners united only by profit as a common bank shares would promote both and result in
interest. Which is why this upswell should be better allocation of financial resources.
taken as an opportunity to privatize PSBs. A profit bonanza should not get in the way of www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, May 21, 2014 Vol.8 No.120 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 24 PAGES
The finances of PSBs have never looked so bank privatization, an agenda that has its own No need to privatize
BANKING:
PSU banks, says Rajan >3
CORPORATE: Wipro’s Premji, Kurien get
hefty raises even as firm lags industry >8
robust. Their net profits hit ₹1.4 trillion in merits. It’s true that the Centre often depends CONTENT PARTNER
MARK TO MARKET: Slower growth ahead for
telecom companies in India >14
WSJ: Thailand’s Army chief declares martial
law nationwide >20
It is well enough that
2023-24, up 34% from 2022-23, while bad on its network of PSBs to meet welfare objec- SENSEX 24,376.88 Æ 13.83 NIFTY 7,275.50 Æ 11.95 DOLLAR `58.64 æ `0.05 EURO `80.23 æ `0.01 GOLD `28,605 æ `185 OIL $109.68 Æ $0.31
loans as a proportion of their total advances tives like financial inclusion; indeed, this is 26 May; business confidence up PTI
upheaval
T here’s an upheaval in
set to buy
B Y G YAN V ARMA Uttar Pradesh and
are at a decadal low of under 4%. These bright why banks were nationalized back in 1969. A n emotional Narendra Modi in the two states at the
moved a step closer to be- general election.
coming India’s 14th prime min- In Uttar Pradesh, chief
Myntra
ister after President Pranab minister Akhilesh Yadav
Mukherjee on Tuesday accepted has sacked 36 ministers. In
his formal claim to form the next Bihar, Nitish Kumar has
government and invited him to quit and a new chief
take the oath of office on 26 minister is in place. Not to
numbers are reflected in the stock-market However, retaining the State Bank of India is
The Modi-led Bharatiya Jana- Samaj Party chief Mayawati
ta Party’s (BJP) victory in the has dissolved all party
Long-awaited deal, general elections was widely an- committees.
estimated to be worth Snapdeal in ticipated, although the magni-
tude wasn’t, and investor and
These steps can be seen
as a bid to organize ahead
$300-330 mn, will help
Flipkart take on larger talks to raise business confidence had run-up
ahead of counting day, Friday,
of state assembly elections
in the coming years.
global rival Amazon fresh funds 16 May. All this would have been
strength of listed lenders. It is no surprise that all the government needs for that purpose; this
BSE’s benchmark Sensex unnecessary if the two
gained 3.79% between Monday’s governments had paid
private banks have performed even better. PSB’s vast reach across India should suffice.
in online fashion retailer Myn- vanced talks to raise an- agencies were quick to point out (United) in Bihar.
tra.com in a deal that is set to other large round of that a stable government would It is too early to say that
be announced this week, two funding merely three improve the business environ- voters now demand
persons with direct knowledge months after it raised ment. accountability from those
be a revolution before
of the matter said. $133.77 million, much of On Tuesday, Modi’s meeting who govern them. But it is
The long-awaited cash-and- it from eBay Inc.—an in- with the president took place af- not a bad assumption to
stock deal is likely to value dication of the continued ter a meeting of the Bharatiya Ja- make before going into
Myntra at about $300-$330 attractiveness of the Indi- nata Party (BJP), which formally election mode.
million, Mint had reported on an e-commerce market named the former Gujarat chief Overwhelmed: India’s prime minister-elect Narendra Modi gets emo-
Ever since being allowed in, they have been We should aim to privatize the rest as we go
6 May. and the cash burn-inten- minister as prime minister des- tional while addressing the BJP parliamentary party meeting at the
The proposed deal was sive approach of compa- ignate; this was subsequently central hall of the Parliament in New Delhi on Tuesday.
agreed upon in principle by
early April, but the companies
nies such as Snapdeal to
build market share at any
endorsed by the BJP-led Nation-
al Democratic Alliance (NDA).
SpiceJet says in
and their investors took “a
while” to work out a deal struc-
cost.
Snapdeal, promoted by
The BJP has 282 members in the
16th Lok Sabha, which gives it a ‘Modi is unapologetically in advanced talks
favour of pro-market reforms’ to raise capital
tomorrow morning.
ture that would be in compli- New Delhi-based Jasper simple majority in the 545-
ance with Indian laws, one of Infotech Pvt. Ltd, is like- member house. The NDA has
the persons cited above said. ly to announce the new 336.
taking business away from PSBs. Their net along. For the market discipline of private
Two common investors at Attention now has shifted to B Y J OJI T HOMAS P HILIP B Y P .R . S ANJAI
Flipkart and Myntra, Tiger TURN TO PAGE 2® the government formation and joji.p@livemint.com pr.sanjai@livemint.com
Global Management and Accel initiatives to heal the economy, ······················· ·························
Partners, first proposed the
deal last year—partly in re-
sponse to aggressive moves by
strategic development”.
India’s e-commerce market,
which has only recently bot-
tomed out after witnessing a
sharp deceleration in growth in
SINGAPORE
profits grew a stronger 42% to ₹1.7 trillion in ownership to take full effect, shareholder dis-
co-founders Sachin Bansal and After two years of consolida- clude Arun Jaitley, Rajnath citizens and government depart- debt. “We are in very advanced
Binny Bansal, and Myntra co- tion that involved many e- Singh and Nitin Gadkari. The ments, says Sanjeev Sanyal, Deut- stages of a capital infusion dis-
founder and chief executive commerce sites shutting shop, buzz is that Jaitley will be the sche Bank AG’s global strategist. cussion with an external entity
Mukesh Bansal approved the the top four—Flipkart, Snap- country’s next finance minister. Sanyal, who has written two that when completed will help
deal earlier this year, people deal.com, Myntra and Ja- The overwhelming mandate books on India—The Indian Renais- us clean up our arrears and re-
with direct knowledge of the bong.com—have raced away managed by the BJP and the sance: India’s Rise after a Thousand build with confidence,” a
talks said earlier in May. from the rest of the pack and smooth transition from the Con- Years of Decline and Land of the India positive: Sanjeev Sanyal SpiceJet spokesperson said.
Flipkart, which has received have been joined by Amazon. gress-led United Progressive Al- Seven Rivers: A Brief History of Shares of SpiceJet on Tues-
$560 million in funding since Amazon launched its India liance (UPA) has reduced the India’s Geography—said in an inter- chief minister. Indeed, he has explicit- day rose as much as 5.4% after
2023-24. The loan books of private banks also persal is key. Instead of strategic stake sales,
starting out in 2007, is also in marketplace in June last year political uncertainty among view that he sees Modi as “the first ly said so in his campaign speeches,” the announcement and ended
HE N RY F OR D
discussions to raise another and has already built one of nervous foreign investors and genuinely post-socialist political said Sanyal. “This will encourage and the day 3.32% up in flat broad-
round of funds, another person the largest online product as- improved sentiments in the leader” of India and also the first to enable states to reform in order to er markets.
familiar with the matter said. sortments in the country. Ama- economy. It has also stoked ex- be “unapologetically in favour of pro- compete with each other.” An equity infusion is critical
Flipkart declined comment. zon has been lobbying heavily pectations of a fresh wave of re- market reforms”. Investors are convinced Modi can for SpiceJet as losses mount.
Myntra too declined to com- to convince India to allow for- forms and policy measures in- Modi’s Bharatiya Janata Party move things. Stock market indices Last week, SpiceJet posted a
ment but a spokesperson said eign direct investment (FDI) in cluding those that will unlock (BJP) won 282 seats in the recent ran up ahead of the results in antici- record net loss of `1,003.24
that the company would hold a e-commerce, and the compa- big ticket infrastructure projects. general elections—a majority in the pation of a Modi win and have risen crore for the fiscal year ended
press conference on Thursday ny’s executives have told Mint Rating agencies have already 545-member house—and has a total since the numbers came in on Friday. March 2014. The loss widened
look cleaner, overall. With credit growth in let’s make public offerings of equity. Or per-
“to announce an important that it is investing “hundreds begun re-rating India’s pros- strength of 336 in the Lok Sabha India’s benchmark Sensex index has five times from `191.07 crore a
of crores” in India. pects. along with allies. No government gained 1.97% from its Thursday close. year ago, as a weak rupee and
NOTE TO READERS Given Amazon’s intentions,
its financial muscle and tech-
“Clearing the bottlenecks of
infrastructure projects is likely
since 1984 has had such a strength in
the lower house of Parliament. Sure,
“Expectations are running very
high. However, the new govern-
rising costs took their toll.
The airline, controlled by
The Media Marketing Initiative on nology expertise, local firms to be an early priority. However, the BJP will have to ensure passage ment’s supply-side measures will media baron Kalanithi Maran,
Page 11 is the equivalent of a would need large amounts of sustaining the investment cycle of bills through the Rajya Sabha, take at least 12-18 months to show lost an average of `2.75 crore
paid-for advertisement, and no money to compete with the on- over the long run will require a where it is in minority, and work with results,” said Sanyal. every day that it flew in the
Mint journalists were involved in line retailer, analysts say. broader improvement in the states that have considerable pow- “This is why it will be important country with a domestic mar-
creating it. Readers would do well Flipkart’s imminent deal business environment. Struc- ers under India’s federal structure. for Prime Minister(-elect) Modi to
good shape across the sector, most banks look haps award PSB shares to citizens at large via
to treat it as an advertisement. with Myntra will help the com- tural reforms related to gov- “As far as India’s federal structure manage expectations and maintain TURN TO PAGE 2®
pany keep Amazon at bay. ernance, and the reduction of is concerned, it is very likely that he focus on the long-term vision.”
“The battle now is clearly red tape, are essential to re-ac- may devolve more power to the Read the full interview on ALSO SEE
Mint is also available for R8 with states given his own background as a Page 6. >Mark To Market: cutting costs key to
Hindustan Times in Delhi-NCR only TURN TO PAGE 2® TURN TO PAGE 6® improving financial health >P14
reasonably well placed right now, even if their direct transfers. The status quo is sub-optimal.
T
his story is possibly apocryphal, but and to which people turn to for all their debate seems to be forgotten. In any case, the free or almost free housing and health insur- ple’s purchasing power caused by persistent
nevertheless worth telling. Just after problems. The legacy of subjecthood now extension of the free food- ance adds to people’s capa- inflation. Hence, for a variety of reasons,
independence, Jawaharlal Nehru survives as politics of patronage. The politi- grain scheme covering bilities and their ability to increasing welfarism is unquestioned.
instructed his party workers to go to the mas- cal dialogue is not being conducted with the two-thirds of India’s popu- Let’s downplay participate in the economy. What’s missing is an adult dialogue
ses in the hinterland and spread the good citizen, but with a beneficiary or “labhaar- lation for another five years The distinction between between principals (the people) and their
news. That the British had left, and we were thi.” This framing of the relationship robs is largely unquestioned. the role of the freebies, welfare benefits agents (the elected officials). This requires an
a free nation now. The workers heard a com- people of their agency as voter-citizens and We don’t know about how and subsidies is already awareness and acknowledgement of the fact
mon refrain, “Oh, the British have left? Who’s treats the electorate simply as recipients of much is meant for the poor,
beneficiary and blurred, and today’s elec- that welfare benefits do not come from some
is a Pune-based economist.
going to rule us now?” This was not the voice
of a broken spirit, but of instinctive subject-
largesse from the government or state.
Welfarism has been ascendant in India for
how much is resold and
how much goes to feed cat-
highlight that tion promises are solidify-
ing the legitimacy of welfare
magic bottomless reservoir. They come from
the government treasury, which is funded by
hood. This had been people’s default status
through the ages under various kingdoms
more than two decades. It has taken the form
of provisions such as free foodgrain, free elec-
tle. In competition the
leading opposition party in
of the Indian schemes. We might soon
get a universal basic income
taxes, both direct and indirect. In essence, all
election promises, “guarantees” and
and also the British. They naturally assumed tricity, water connections, a housing subsidy, its manifesto has promised citizen, voter for every citizen—nay, ben- increased welfare benefits are necessarily a
that new a set of rulers would reign. Hence cooking gas, almost free health insurance, to double the quantity of eficiary. Forgotten is the massive exercise in redistribution. It involves
the early work on strengthening the founda- crop insurance and of course cash transfers. entitlement of free grain. It and taxpayer crucial issue of why should transfers from the rich to the poor, from tax-
tions of our newly born democratic republic Its scope is ever expanding. In the current is quite likely that the the state be providing an payers to the rest. The larger the overlap
in 1947 was to champion the basic idea that election campaign, welfarism has turned into scheme of free food, which array of private goods? between taxpayers and voters, the fairer it
the people are supreme. Not elected officials, competitive welfarism. It is as if votes can be started during the pandemic, might have Welfare economics is a branch of the disci- will seem. The larger the size of the middle
not Members of Parliament, and not even the bought by whoever offers the bigger package delivered the twin objectives of food security pline that focuses on the well-being of indi- class, the fairer the bargain. India’s move
Constitution can be above the people. They of welfare benefits. Leave aside the issue of and protection from food inflation (since it viduals. It aims to evaluate economic policies toward an even bigger welfare state is inevita-
are the bosses. After 75 years, have we finally whether this constitutes bribery of the voter. was being given in kind and not as cash). But and outcomes based on their impact on peo- ble, but we can make this journey more
internalized this idea? Does it manifest in But in a subtle way, it undermines a legiti- we forget that the current free food scheme ple’s welfare. The fact of rapid expansion and meaningful by downplaying the role of the
our public life and governance? A sophisti- mate and mature political discourse between began with the National Food Security Act of bipartisan acceptance of welfarism is an beneficiary and highlighting the role of the
cated analysis of this question would need a electors and those who seek to be elected. 2013, which in turn was the result of a long acknowledgement of the fact that the com- citizen, the voter and the taxpayer.
LIVEMINT.COM VIEWS TUESDAY, 21 MAY 2024
NEW DELHI 13
THEIR VIEW M I N T C U R AT O R
Various social groups have shown encouraging enrolment rates but we must expand capacity vastly to fulfil aspirations
MINT
TIM CULPAN
is a Bloomberg Opinion columnist covering
technology in Asia.
T
o get an idea of how Toyota Motor
Corporation views the electric vehi-
cle (EV) business, just take a look at
T
he Indian higher education system is, how it reports car sales. Prominent in its Hybrids offer users the best of both worlds
by far, among the largest in the world breakdown is the category of electrified in this market BLOOMBERG
today. Latest available data from the Enrolment gains vehicles, divided into sub-categories:
All India Survey on Higher Education The numbers have broadly risen although there is scope for improvement in the case of minorities whose hybrids, plug-in hybrids, battery electric pumps as EV chargers in the US, according
(AISHE) under the ministry of educa- proportion of higher-education enrolment is significantly lower than their share in India’s population. vehicles and fuel-cell models. For most EV to one recent study. So rather than preach
tion from academic year 2021-22 makers, battery-electric is the only one that to unwilling customers, Toyota is letting
shows that 43.2 million students are enrolled in HE Enrolment matters. Tesla Inc, for example, exclusively car buyers dip their toe in greener waters
the system, having grown at 4.1% compounded Enrolment (in million) Population (in %) ships BEVs. In its view, and for many aco- via hybrid cars. But it still wants credit for
9-yr CAGR (in %)
annual growth rate (CAGR) over nine years from Community 2012-13 2021-22 Share (in %) Census 2011
lytes, a vehicle must have a battery and be selling electrified models.
30 million in 2012-13. exclusively charged from an external elec- Most people’s stance on this is more
Towards the objectives of inclusive enrolment SC 3.9 6.6 15.3 16.6 6.2 tricity source to earn the ‘E’ prefix. Its clos- philosophical than environmental:
and coverage, the country’s reservation policy has ST 1.3 2.7 6.3 8.6 8.3 est rival BYD exited the combustion-en- Hybrids do burn fossil fuels, but they’re still
undoubtedly yielded results. Between 2012-13 and gine car market in 2022 and last year pro- better than full-combustion models and
2021-22, enrolment among various social groups, OBC 9.4 16.3 37.8 40.90 6.3 duced a roughly even split between battery produce lower emissions than battery-
shown alongside, has increased at impressive Muslims 1.3 2.1 4.9 14.2 6.0 and hybrid passenger cars. electric vehicles charged by coal-fired
9-year CAGRs. Other minorities 0.6 0.9 2.1 6.0 5.4 For Toyota, the numbers are markedly power stations. The swing factor is the
Scheduled Caste (SC) enrolment has increased different. Just 37% of the vehicles it sold cleanliness of a region’s electricity supply.
General 13.8 14.6 33.6 13.6 0.7
by 6.2% CAGR, from 3.84 million in 2012-13 to last fiscal year were electrified, up from Toyota’s strategy may end up being the
6.6 million in 2021-22. Over the same period, All 30.2 43.3 100.0 100.0 4.1 30% the year prior. But purists point to a wiser choice. At first it seems like the Japa-
Scheduled Tribe (ST) enrolment has increased stark fact: Only 1.1% of its retail car sales nese company is taking a wait-and-see
by a significant 8.3% CAGR, from 1.32 million to were battery electric. This large disconnect approach, and there’s an element of that.
2.71 million. Other Backward Classes (OBC) enrol- Enrolment (male, in million) Enrolment (female, in million) stems from Toyota’s decision to label even Yet, executives will surely be aware that the
ment is also moving at an impressive 6.3%, having CAGR CAGR gasoline-powered EVs as “electric-pow- road to an all-electric future is littered with
Community 2012-13 2021-22 2012-13 2021-22
increased from 9.4 million to 16.3 million. Enrol- (in %) (in %) ered.” This can be confusing, but it’s not failed EV startups as well as product delays
ment of the country’s Muslim community has entirely false. Hybrids use a combustion and cancelled projects.
SC 2.1 3.5 5.6 1.7 3.2 7.0
increased from 1.25 million to 2.1 million at 6% engine to create electricity, which then In the annals of automotive history, early
CAGR, and that of other minorities from about ST 0.7 1.4 7.2 0.6 1.4 9.6 powers the motors. Plug-in hybrids split names like Butler, Elmore and Armstrong
560,000 to 900,000 at 5.4% CAGR. ‘General OBC 5.1 8.5 5.9 4.3 7.8 6.8 the difference, offering both gasoline and Electric—one of the original EV companies
merit’ enrolment, calculated by authors from total mains-powered fuelling. —are forgotten. The founders of MySpace,
Muslims 0.7 1.1 5.4 0.6 1 6.6
enrolment minus other listed groups, is stagnating Toyota reasons that in selling millions of Friendster and Pets.com will be aware that
at 0.7%. The government’s focus on inclusion Other minorities 0.3 0.4 6.0 0.3 0.5 4.9 hybrids to date, which have been more- there’s little advantage in being first.
in higher education has clearly enabled rapid General 7.8 7.8 0.0 6.0 6.8 1.5 readily embraced by consumers than EVs, Equally, many will forlornly remember
development of classes deemed as disadvantaged. All 16.6 22.6 3.5 13.5 20.7 4.8
it has done as much as anyone to cut carbon their Nokia cellphones and wonder why
Comparing the enrolment proportion of various dioxide. “Some people criticize hybrids the Finnish giant wasn’t able to adapt to the
groups with their population compositions is Source: Census 2011, NSSO, AISHE because they have engines, but the amount smartphone era.
revealing. Enrolment proportions for the SC, ST of CO2 emissions reduced by these hybrids Toyota’s decades-long dominance of the
SATISH KUMAR/MINT
and OBC communities in 2021-22 are close to their is the equivalent of 3 million BEVs,” Chair- global car industry doesn’t come from any
population composition. aspirations. The 10-year enrolment CAGR of Though the Muslim community’s representation man Akio Toyoda said on a company pod- first-mover advantage. The Japanese com-
For the SC community, it is 15.3% enrolment women is 4.7% compared to 3.4% for men. Women in higher education is far less than its population cast published in April. pany didn’t invent cars or internal-com-
against 16.6% of the population; remarkably close. are 48% of total enrolment in 2021-22, up from composition, here too, women’s enrolment CAGR Given that Japan, in particular, derives bustion engines and it wasn’t the premier
For the ST community, 6.3% enrolment against 44.6% ten years earlier. Women’s gross enrolment at 6.6% is far higher than men’s at 5.4%. The ‘other most of its electricity from fossil fuels, Toy- proponent of just-in-time manufacturing
8.6% of the population; this, too, is quite close. ratio (GER) at 28.5 is higher than men’s at 28.3. It minorities’ group is the only one where this score is oda argues that a direct switch to electric —Ford Motor Company was decades ahead
For the OBC community, 37.8% enrolment has grown faster, from 19.4 in 2011-12 compared to reversed: it is 4.9% for women versus 6% for men. charging isn’t necessarily cleaner. It’s a on that. Instead, the Japanese auto giant
against 40.9% of the population; close, as well. 22.1 for men, indicating that more women in the In the general merit category, men’s enrolment valid point, albeit one that doesn’t sit will climbed to prominence through a method-
The same progress, however, is not seen among 18-23-aged population view higher education as a has stagnated at zero as enrolment in years 2012-13 with EV purists. ical approach to vehicle and engine devel-
minority groups. Minorities constitute approxi- gateway to a higher-quality life. For the nation, this and 2021-22 is very similar. Women’s enrolment in Yet Toyota’s reason for pushing hybrids opment, product-market fit, as well as effi-
mately one-fifth of India’s population (as per is an encouraging trend that will vastly increase its this group is 1.5%, higher than men’s here as well. over pure electric models may be less about cient manufacturing and sales.
Census 2011; no recent census data is available), but qualified workforce. To fully capitalize on this, Overall, the country’s various social groups are the dirty power generators that still popu- In moving slowly into EVs, Toyota may
only about 7% of enrolment in higher education. quality employment prospects must be grown all faring well in higher education. Driving enrolment late the planet and more about the funda- be taking a detour around the ‘Pioneer’s
Within minorities, only information of the Muslim over the country that would help educated women up in key groups and regions across India remains mentals of market forces. Trap.’ There is a risk that a patient
community is available. The community consti- join the workforce in locations close to their homes an important national goal and can be facilitated by Despite all the hype about EVs, espe- approach will see it miss out on some or all
tutes 4.9% of total enrolment, versus 14.2% of and towns. expanding the capacity of existing institutions and cially in China, most consumers globally of the burgeoning market for EVs, espe-
India’s population (as per Census 2011). However, Disaggregating the social groups’ enrolment setting up greenfield institutions in regions with aren’t ready to make the shift. Range anxi- cially after Tesla and BYD careened head-
the 9-year enrolment CAGR of 6% is impressive data by gender reveals Indian women’s aspirations. low institutional capacity. Distance education can ety is among the primary reasons, Con- long into a product category even before
and can be utilized to drive enrolment up. Clearly, As the accompanying data shows, across groups, also be utilized to drive enrolment. sumer Reports found, because drivers are consumers were ready. If that happens, it
aspirations exist and can be encouraged. the women’s enrolment CAGR is ahead of men’s. It The key point here is that increasing the size of confident that there’s always a gasoline sta- could be caught short like a modern-day
Gender parity in Indian higher education drew is 7% for women versus 5.6% for men within the SC the country’s cake will enable more people to par- tion close at hand, but worry there’s a lack Nokia. Then again, going down in history
level in 2019-20 and remains equal. Women are community, 9.6% versus 7.2% among people of the take of it, rather than slicing the existing cake into of charging bays. They have reason for as the MySpace of cars isn’t a place it wants
increasingly joining higher education with higher ST community and 6.8% versus 5.9% among OBCs. thinner and thinner slices. concern—there’s five times as many gas to be either. ©BLOOMBERG
D
uring the spring of 1948 in post-war members from Europe and North America, school, like professor John Mearsheimer of more countries: Australia, New Zealand, plexing scenarios. If Israel were part of Nato
Europe, an extra-parliamentary coup including the US, Canada, Britain, France, the University of Chicago, Israel, India and Japan. and had invoked Article 5 after last year’s
brought Czech communists to power Norway and Denmark. Sweden chose not to believe that Nato’s east- For these countries, one Hamas attacks, for example, what would
in Prague. At the same time, there was an join and maintained a policy of non-align- ward expansion is culpable Russia’s recent advantage of the proposed have happened? Similarly, if India had
ongoing civil war in Greece and unrest in ment in peace and neutrality in war. Even of having goaded Russia Nato-plus grouping is that invoked Article 5 after China’s 2020 border
Turkey. In Italy, it appeared as if the Italian though the original idea of Nato was to pro- into conflict with Ukraine. aggression has the legislative process has incursions, it boggles the mind what might
communist party would make inroads in an tect Western countries against a potentially After the fall of the Berlin already been completed by have ensued.
upcoming election. Russian premier Joseph remilitarized Germany as well as communist Wall in 1989, despite
renewed Nato’s Nato’s 32 members. The Even if India gets permanent membership
10
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If there be cricket in heaven, Alec
let there also be rain Douglas-Home
O
N the last day of the league Indian talent shone brighter than ever at the 17th edition mat. But the last few years have seen
stage of IPL 2024, Travis Head the balance between bat and ball tilt
INDIAN EXPRESS IS NOT AN and Abhishek Shar ma of of the IPL. But with massive scores, the season also alarmingly in favour of batters.
INDUSTRY. IT IS A MISSION. Sunrisers Hyderabad—the showed a further tilt of balance towards batters The thousand-sixes-in-a-season mark
— Ramnath Goenka most feared opening combi- was first breached in 2022, with 1,062
RETAIL INVESTORS
have panicked after losing their been significant factors. Some of the
talismanic Australian opener. Instead, most fascinating matches were when
Rahul Tripathi walked in and nerve- teams scored smaller totals and the
T
lessly smashed 23 off the next 10 ball had a larger part to play. The Luc-
HE government has woken up to the dangers of retail balls. And then Abhishek Sharma got know-Gujarat game at the Ekana sta-
investors risking household savings in the futures and into the act, hitting 66 in just 28 balls— dium being a case in point, where a
including five more sixes—and JOY BHATTACHARJYA Sports producer and former Team score of 163 was defended.
options (F&O) market. Days after the finance minister Director, Kolkata Knight Riders
powered his team to a commanding For Indian cricket, more balance
raised the issue at a BSE event in Mumbai, the govern- four-wicket victory and into the would be a great idea, especially as
ment’s chief economic advisor, V Anantha Nageswaran, playoffs. In all his past 47 IPL appear- the national T20 team has not travelled
on Saturday warned against small investors trading in the ances since 2018, Sharma had hit a to- well in conditions where the ball
futures and options markets. The concern over small inves- tal of 32 sixes, this year he hit 40. was doing a bit and the boundaries
tors taking the plunge into F&Os has been building over the It’s been that kind of year. were a bit longer. The IPL probably
last couple of years as volumes in this highly speculative This, the 17th season of the IPL, has needs to cool down and give the
given us plenty to celebrate and a fair bowlers a more even chance.
segment of equity trading has been shooting through the amount to think about. The last, slightly discordant note in
roof. With only a handful of investors and traders making First, the good news. If this league the IPL actually happened before
any money, retail investors taking F&O bets without fully has often been dominated by interna- the tournament. In the final year of
understanding the risks is a recipe for disaster. tional talent and a few Indian super- his contract with the Gujarat Titans,
With the advent of discount broking and new-age trading stars, the last few years have seen their captain Hardik Pandya contrived
apps, equity trading is now easily accessible to anyone pos- a huge surge in the effectiveness and to get himself traded to the
perfor mances of domestic Indian Mumbai Indians in a deal where Gu-
sessing a smartphone. The F&O segment has attracted a lot
talent. And 2024 has seen that taken to jarat received nothing but cash.
of interest among retail investors because of the ‘betting’ a totally different level. One can understand the Titans allow-
nature of futures and options trading. The greed of making Abhishek Sharma and Nitish Reddy ing him to go—no point keeping a
a fast buck is also a key attraction for investors towards this starring for the Sunrisers, Shashank reluctant campaigner for an extra sea-
market. The segment’s popularity can be gauged from the Singh and Ashutosh Rana for Delhi, son if he really wanted to go, given that
fact that the monthly turnover of the F&O segment was Swapnil Singh making some vital con- he would have anyway left in a year.
tributions with the ball and the bat for But it is a disturbing precedent.
`8,740 lakh crore in March 2024, 40 times the `217 lakh crore
RCB, and Harshit Rana and Vaibhav If superstar players can push to be
turnover reported in March 2019. In March 2024, the average Arora with the ball for KKR. The list traded to a team of their choice, the
daily turnover in the equity cash segment of the market was can go on and on. And these were not auction, which ensures financial pru-
`1 lakh crore, while the F&O segment clocked average daily one-offs—instead, they gave consistent dence and an even playing field for
turnover of around `330 lakh crore. performances that took their teams to SOURAV ROY teams, would be bereft of meaning, and
The capital markets regulator in a report a year ago had victory over a series of matches. prices would spiral out of control, with
revealed that only 11 percent of the individual traders in Many of these players have been reg- was not really used effectively by Indian preparation for the World Cup richer teams stockpiling talent. The
ulars at the trial camps called by IPL teams in its first season. will only be evident in the next fact that the move was a disaster for the
2021-22 made gains in the equity F&O segment, with an aver- teams in the months before the IPL This year, the ‘impact player’ rule few weeks. It’s instructive to note that Mumbai Indians may be the best thing
age profit in the range of `1.5 lakh. The rest of the traders auction. The domestic players go from played a huge part in the tournament. the ICC also introduced a similar for the long-term health of the league.
made an average loss of `1.1 lakh during the year. Clearly, camp to camp hoping to impress scouts With a specialist bowler on hand to rule in 2005, allowing a ‘supersub’ So it has been a great year for the
the odds in the favour of losses are much higher than those and coaches enough to get a bid come bring in, all-rounders, once the for each team, but hastily withdrew IPL in terms of balance—not one of
for profits. Yet, easy access to trading apps and hundreds of auction day. And this year, many struck most valuable pieces for franchises, the rule after nine months. the four teams who qualified for
self-proclaimed trading gurus on social media are leading gold—not just getting picked, but get- were no longer the flavour of the sea- The other slightly worrying factor the playoffs in 2023 made it to this
ting their chance in the middle. son. So the likes of Shivam Dube is the overheating of the IPL: 200+ year’s playoffs—but a slightly worry-
gullible individuals into this risky segment of the equity
When players like Shashank Singh, or Venkatesh Iyer, who might have had scores, once winning totals in 90 per- ing trend in terms of the domination
market. The government and regulators must take decisive costing only `20 lakh, are winning to bowl in previous seasons, really did cent of matches, have now become rou- of the bat. And a few safeguards
steps to check this tendency, or else many individual inves- games in the middle, teams will not chance their ar m. And while tine. The likes of Abhishek Sharma that need to be in place for player trad-
tors would be left with irreparable losses. definitely increase their focus on hon- it made for more runs and options, and Travis Head are not unique. In ing. But the continual emergence of
ing and blooding local talent. it’s not great news for Indian cricket, the first season, 620 sixes were hit in top domestic talent is the gift that
T
and criminal proceedings against a 28-year-old man and held
HE release of the Human Devel- automatically enhance employment is
that downloading and possessing CSAM was not an offence opment Index (HDI) 2023-24 by based on the premise that there are idle
under the law (in this case, under the IT Act and POCSO). The the United Nations Development human resources in the economy to augment
Supreme Court rightly slammed the judgement, as the high Programme has once again the aggregate supply. Supply imbalances
court’s verdict was an incorrect reading of the two laws. brought this influential metric ARAVINDA Academic and public health physician are always there in developing economies
Now, the Delhi High Court has undertaken a suo motu to the forefront of global dis- CHINNADURAI because of voluntary employment transitions
revision petition after a PIL by an NGO brought to light that course. With a score of 0.644, In- and structural unemployment, among other
dia was ranked 134 out of 193 countries. things, leading to an inflationary spiral.
a sessions court had discharged two accused of offences un- Hence, debates around the ranking were tially more informative alternative. tary Pressures–Adjusted Human Develop- S Ramakrishnasayee, Chennai
der POCSO Act in a case in which CSAM was recovered inevitable in the electoral discourse of In the education domain, the index meas- ment Index, which adjusts the HDI accord-
from their electronic devices. The lower court’s reasoning 2024. But it’s crucial to revisit the use and ures mean years spent on schooling. This ing to a country’s environmental impact. Report card
was that as the children in the images could not be identified interpretation of this measure. does not measure employability, skillset or This is a step in the right direction. The TNIE report card of the Left Democratic
or traced, it was not possible to ascertain that they were The HDI was the brainchild of Mahbub quality of education to the population for Therefore, let’s shift our focus from a Front government in Kerala was well assessed.
indeed minors, and therefore POCSO could not be invoked. ul-Haq, who grew up amid the tumultuous economic activity or self-empowerment. snapshot view of the HDI rankings to a The coalition did little to improve in terms of
partition of the subcontinent and passion- Importantly, the HDI overlooks key fac- time series perspective. This approach efficiency and performance in the second term.
The Delhi HC termed this a miscarriage of justice and point-
ately believed in a human-centric approach tors such as legal accessibility, inclusivity, would highlight each country’s progress or The performance of some ministers was not
ed out there was no need to prove the persons are children to development. The index is calculated by inequality, disaster proneness, political sta- regression over time, providing a more nu- only lackadaisical, but casual and indifferent.
when the definition of child pornography under POCSO measuring longevity, health, education and bility and environmental sustainability. anced understanding of development. K V Raghuram, Wayanad
covers any sexually explicit conduct involving a child or standard of living. Longevity and health This is evident in the case of Delhi which, To illustrate, India has made significant
appearing to depict a child. Further, the investigation agen- are assessed by life expectancy at birth, strides in HDI over the past few decades, Teaching values
cy, the CBI, in its chargesheet had included the opinion of standard of living by gross national in- rising from 0.427 in 1990 to 0.644 in 2023. Ref: The marvellous narrative tradition of
come (GNI) per capita, and education by This is a testament to the country’s ongo- our country (May 20). The epics give us the
two doctors who examined the material and said the persons
the mean years of schooling for adults and ing efforts in areas like health, education essence of the Vedas and Vedangas so as to
in the content are children. The lower court, however, disre- the expected years of schooling for chil- and income. There is a 9.1-year increase in reach the common man for teaching values
garded the statements. dren. The HDI uses geometric mean (in- life expectancy at birth, 4.6 years in expect- in a simple and familiar manner. Since values
The case simultaneously illustrates the relatively far- stead of arithmetic mean) of the indica- ed years of schooling, and an increase of cannot be easily taught in formal classrooms,
sighted approach of a law that is over a decade old and the tors, thereby making sure no single 3.8 years in mean years of schooling our ancestors found stories as effective media
still-patchy understanding of the Act, and possibly the crime dimension can disproportionately influ- In a world that is becoming more com- for value orientation.
itself. CSAM is a particularly heinous crime in that it per- ence the overall score of a country. plex and interconnected, our measures of P Prema, Thanjavur
X.COM
While the HDI has undoubtedly been a development must evolve. We need to incor-
petuates the sexual violence against a child. Leaving aside valuable tool in measuring social progress, porate a broader set of indicators that cap- No condemnation
the correlation between consumption of CSAM and contact its ranking system and methodology war- The Human Development Index, ture the multifaceted nature of human de- Delhi CM Arvind Kejriwal’s statement
abuse, the perpetuation of the abuse through its circulation rant a re-evaluation. The index simplifies the brainchild of Mahbub ul-Haq, velopment. It is important to recognise during his address to party workers
and viewing retraumatises the child. When countries in the complex social dynamics into numbers, po- is a valuable tool to measure social aspects like environmental sustainability, before leading a protest march to the
West have dedicated resources to the destruction of such tentially distorting our understanding of gender equality, linguistic diversity and po- BJP headquarters over the arrest of aide
progress. It is skewed towards nations with progress. But it simplifies social litical freedom to create a more nuanced Bibhav Kumar alleging that the Centre is
material and identification of its victims, the seeming su-
smaller, homogeneous populations. dynamics, potentially distorting understanding of development. aiming to arrest all top functionaries of his
perficiality with which the Indian legal system engages with
The HDI’s true value lies in tracking a our understanding of progress. It In conclusion, it’s important to view the party is unfounded. Kejriwal’s stoic silence
this particular crime is just another reminder of how much nation’s progress over time, rather than HDI as a tool for self-evaluation rather than over his aide’s atrocious behaviour should
farther we have to go towards ensuring true justice to child comparing it with others at a single point.
is skewed towards countries with a global leader board. The HDI remains a have been condemned.
survivors of CSAM. Comparing China and Sri Lanka, for exam- smaller, homogeneous populations powerful measure of human development, H P Murali, Bengaluru
ple, is misleading. Despite their similar but it’s our interpretation of this tool that
scores (0.788 and 0.780, respectively), China despite severe air pollution, tops among In- needs to evolve. Instead of getting fixated Tragic loss
Q U I C K TA K E is an economic powerhouse while Sri Lan- dian states with a score of over 0.750. The on rankings, we must focus on understand- The untimely death of Iranian President
ka recently survived a balance of payments quality of life of an average citizen does ing the unique socio-economic contexts of Ebrahim Raisi in a helicopter crash is a
MADUKKARAI SHOWS THE WAY crisis with external aid.
Per capita income, one of its primary
not reflect in the HDI as it utilises only life
expectancy at birth and doesn’t take mor-
each nation and their progress over time.
In this spirit, let’s strive for a more com-
significant and tragic event, resulting in the
loss of not only the president but also several
A
FTER witnessing 10 forest fires in the previous three components, is a mean value that’s sensi- bidity into account. Ignoring Disability prehensive measure of human develop- other high-ranking officials. This incident has
tive to outliers with smaller denominators and Quality adjusted life years provides a ment that truly reflects the diverse realities elicited profound grief worldwide, reflecting
years, the nearly 8,000-hectare Madukkarai forest in west- (population in this case). In the standard of distorted picture of health of the nation. A of our world. By raising these concerns, the substantial impact of Raisi’s leadership.
ern Tamil Nadu has seen off this summer without one living index, incorporating median house- lot of people with ill health would be unde- our intention is not to undermine the cred- Asim Puttur, email
despite the record heat. The local forest department staff of hold income could provide a more accurate tectable in the score since we prolong their ibility of the HDI, but rather encourage its
40 kept up regular vigil, engaged villagers in ‘perambulation’ reflection of the economic well-being of the lifespan by medical means, but their qual- refinement. In the pursuit of development, Climate challenges
around the range, and kept a weekly watch on the most likely typical citizen, especially in terms of ine- ity of life is not necessarily desirable. we must ensure no aspect of human Understanding the significant regional shifts
spots from atop hills. They also used drones to check on deep- quality. The median income aligns with the Thus, as we delve deeper into the intrica- progress is left behind. With the rise of gen- in weather conditions reveals a daunting sign
HDI’s goal of measuring human develop- cies of the HDI, it becomes increasingly erative AI based on large language models, of widespread climate change. Now, Palakkad
er terrains. Meanwhile, the Supreme Court last week chided
ment by offering a more equitable perspec- clear that this tool, while undeniably valu- a big chunk of skillset might be underval- is experiencing heavy rainfall just days after
the Uttarakhand government for failing to act on forest fires tive on standard of living. While the HDI able, may oversimplify the complex social ued over time. So the methodology last re- recording record high temperatures. It’s
and summoned the state’s chief secretary. This is one thing currently uses GNI per capita, availability dynamics at play within nations. vised in 2010 needs a major revision. imperative that we address such challenges.
the northern state can surely learn from the southern one. of data makes the median income a poten- The 2023-24 report introduces the Plane- (Views are personal) Savad Vittal, email
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DUHDOVRFRQFHUQHGDERXWULJKWVDEXVHVDQGUHVWULF because it offended Hindu senti- April 1946 that if Hindus took clashes or friction between the tions. Islam accords priority to
WLRQVRQFLYLOOLEHUWLHVFDOOLQJIRUWKHSURWHFWLRQRIWKHLUEDVLFULJKWVIUHHGRPRIH[SUHV ments. an obstructive attitude to pop- two communities ought to the ummah (community) over
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VLRQDQGDQHQGWRSROLWLFDOUHSUHVVLRQ$GGLWLRQDOO\HFRQRPLFGHYHORSPHQWLVDPDMRU e-Ulema-e-Hind, founded by would re-enact the murderous They would have been so but can be no denying that former
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FDWLRQDORQJZLWKLQFUHDVHGLQYHVWPHQWWRGULYHUHJLRQDOJURZWK%XWFDQ,QGLDLQWHU to avoid killing cows as it offends Khan. Iftikhar Husain, the to 30 into the Constitution of Singh had said that Muslims
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the Partition of India was that December 1946 said he sup- the country’s first PM national resources’ ‘ and he
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HQFHHOHFWRUDOG\QDPLFVZLWKWKHSDUW\KRSLQJWROHYHUDJHWKLVQDUUDWLYHWREROVWHULWV Hindu sentiments. Qaid-e-Azam Ismail Chundrigar, later why a Uniform Civil Code was regime, he appointed no less
Mohammad Ali Jinnah had clear- Pakistan’s sixth prime minister, made a non-justiciable part of than five commissions to
SHUIRUPDQFHLQWKHRQJRLQJ/RN6DEKDHOHFWLRQV,QWHUQDWLRQDOO\WKHVHVWDWHPHQWVPD\ ly stated in his Lahore speech of said that the British had no , the Constitution. While ‘enquire’ how and why
IXUWKHWVWUDLQ,QGLD3DNLVWDQUHODWLRQVSRWHQWLDOO\HVFDODWLQJWHQVLRQVLQDQDOUHDG\YRODWLOH March 22, 1940, that “Hindus and right to hand over Muslims to zamindaris and jagirdaris were Muslims in India were disad-
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VLRQWRWKHGLVFRXUVHSRWHQWLDOO\LQYLWLQJJOREDOVFUXWLQ\DQGGLSORPDWLFHQJDJHPHQWV cannot exist in the same country”. they had ruled for 500 years. been nationalized in many done to pull them up.
Dr BR Ambedkar endorsed this Shaukat Hayat Khan, son of Islamic countries, were left Qutbuddin Aibak captured
ZKLFK,QGLDKDVEHHQDYRLGLQJHYHUVLQFHWKLVLVVXHVWDUWHG7KHVHUHPDUNVDUHPRUH view in his 1941 book Thoughts Sikandar Hayat Khan, said untouched. Every other aspect Delhi in 1192 AD and there-
GULYHQE\SROOH[SHGLHQF\DQGHOHFWLRQUKHWRULFUDWKHUWKDQWKH*RYHUQPHQW·VVWDWHGSRO on Pakistan that an exchange of the exchange of population of the separateness of the after, one Muslim dynasty
LF\7KHVHVWDWHPHQWVFRXOGH[DFHUEDWHUHJLRQDOWHQVLRQVDQGFRPSOLFDWHGLSORPDWLFHIIRUWV population should be organized was an integral part of the ) 3 6 = community’s separate identi- after another ruled Delhi till
on the Turko-Greek lines in 1923, demand for Pakistan. Ismail ty, like Urdu, polygamy, instant 1857, i.e., a total of 665 years
under the auspices of the League Mohammed, a Muslim % verbal talaq, etc., was not only before they were erased by the
! of Nations. Jinnah, Ambedkar
and Dr Rajendra Prasad endorsed
Leaguer from Madras said
that Muslims were in the mid-
= =, not touched but continuously
pampered. Madrasas, which
British Crown. With such a
long rule, has any Government
this view. Rajendra Babu, India’s dle of a jihad. Similar were the foster a parallel and obscuran- asked why the community is
President from 1950 to 1960, had views of Raja Ghazanfar Ali, tist education system, contin- backward and needs a lift-up?
written India Divided, wherein he who was later Pakistan’s food, ue to thrive, preaching sectar- Is taqlid (orthodoxy) in pref-
proposed that Muslims who agriculture and health minis- , ianism and schism, to the erence to ijtihad (re-interpre-
couldn’t emigrate to Pakistan ter. detriment of their communi- tation) the reason for this?
could be specially permitted to To the extent that Professor M ), ty. Does the neglect of women
stay back, not as citizens but as Mujeeb, Vice-Chancellor of The present Government has also further this state of near-
aliens with visas. Jamia Millia Islamia University = = been bold to bring in some perpetual backwardness? Who
Jinnah and other League func- in Delhi met the Turkish rep- > reforms, however limited. is answerable for these crimes
tionaries in 1946 and 1947, had resentative to the General Instant verbal divorce has been of omission? Is the present
repeatedly demanded an Assembly of the United , abolished and educational prime minister, the first Indian
exchange of population. Their Nations Organization (UNO), facilities and initiatives have leader to ask these uncomfort-
views were published in the the latter was surprised and been expanded to include able questions, in any way
Dawn, newspaper Jinnah (now asked Mujeeb, “How are you Muslim girls. The womenfolk answerable for this?
published in Karachi but initial- representing India? I thought of the community, who have (The writer is a well-known
ly printed in Delhi). Sir Feroze all Muslims went away to benefitted from these reforms, columnist, an author and a
Khan Noon, later Pakistan’s first Pakistan”. are being suspected of voting former member of the Rajya
prime minister, threatened in The point here is that all for a Hindu party in these elec- Sabha; views are personal)
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Madam — Apropos the news article, 3_]RQdY^WgY\T\YVUdbQVVYS[Y^W
“Economic crisis takes a backseat in elec-
tions,” published on May 20, this is my
response. In this dance of democracy,
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in understanding the
history of human civilisa-
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British East India Company
and other colonial powers
research, serving as reposito-
ries of knowledge, culture
and history, but also in the
out sufficient job creation.
The International Labour Organisation
highlights severe forced labour issues, ques-
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tion. It is proof of our exis- began collecting artefacts, conservation and preserva- tioning India’s progress. With inflation -- [6,, \ ! #(+ ( ]3]ZZ 885((#("8(5%
tence on this planet and mate- often to showcase their con- tion of the region’s cultural soaring and trade deficits widening, the Q(--:#(!#(+#8# +-#26,, ^88(3+5-(
rial evidence of human activ- quests and understand local heritage. Their contributions economic situation remains dire. Public- :(2-##"(%( (2((:-
ity carried out during our life- cultures. The Indian Museum extend beyond simply dis- sector job cuts and reliance on self- 2#3^(-((#88( #+#8#2#
time. Understanding the tions of art and artefacts ded- in Kolkata, founded in 1814, playing artefacts; they provide employment indicate systemic failures. To (!2#5% (+322 q-!"+(-%
diverse cultural tapestries that icated to the gods. The word is the oldest museum in India immersive learning experi- truly uplift the marginalised and revitalise (-5(8-2((5_(8(5! Neha Gupta | Delhi
make up human history helps “museum” originates from and one of the earliest in the ences, support scholarly the economy, a robust public sector and
build more inclusive soci- the Greek “mouseion,” a term world. It was established by research and engage the pub- equitable competition with the private sec- phase of political asphyxiation, the disil- ed to be affected. It is time for them to go
eties. used to describe a place ded- the Asiatic Society of Bengal lic in various educational tor are essential. Would politics support lusioned electorate is dispirited to defend to human settlements for drinking water.
Museums come in various icated to the Muses, the god- and housed collections that activities. Museums offer such a transformation? a system that has failed to champion its All this is happening due to many things.
types, each focusing on differ- desses of the arts and sciences. ranged from geological to interactive exhibits that Kunal Singh | Patiala cause. Worse, it could be more than ever It seems that more than 5 million trees
ent aspects of human knowl- The concept of the public archaeological artefacts. engage visitors in hands-on before that ballots may no longer be the have been cut in India only from 2018 to
edge, culture and the natural museum began to take shape Post-independence, the activities. These interactive D85DBE=@CI>4B?=5 sole guarantee of true democracy. Apathy 2022. This was recently stated in the report
world, like Art museums, in the late 17th and early 18th National Museum under the elements make learning more Madam — In US politics, Donald Trump towards democracy is a gateway to larger “Nature Sustainability.” According to this
history museums, natural his- centuries. Many consider the Ministry of Culture was estab- engaging and memorable, was not the cause of a democratic crisis of unrest. report, most trees have disappeared in
tory museums, science muse- Ashmolean Museum, which lished in Delhi in 1949. It helping visitors, especially faith. He just rode to power on it. Once in R Narayanan | Mumbai Telangana and Maharashtra.
ums, military and war muse- opened in 1683 at Oxford houses a vast collection of children, to grasp complex control, he leveraged the same disillusion- It has come to light that big trees have been
ums, aviation and space University, as the first public artefacts representing over concepts in science or histo- ment that helped him into office. Debasing 3<9=1D5381>759=@13D cut down to expand agriculture in many
museums, etc. This range of museum of its kind. 5,000 years of Indian history. ry through experience. democratic norms and abusing tall insti- Madam — Various things on earth now areas. The remaining trees are also affect-
purposes results in a remark- The founding of the British It was a significant step Museums also act as centres tutions led to the subversion of democra- feel the effect of climate change. Due to ed by forest fires and fungal infections.
able diversity of museums in Museum in London in 1753 towards preserving and show- of active research. Researchers tic systems. This Trump syndrome of climate change, it has been seen that the One factor that mitigates overall temper-
terms of their form, content was a watershed moment in casing India’s cultural her- in archaeology, anthropology, relentless polarisation, which spawns apa- negative impact on the mental health of ature rise is the current state of the tree.
and function. the evolution of museums itage. To propagate science biology and art history rely on thy and disconnect in the polity, is seen people has increased. This research has The temperature rise will affect many
The history of museums is a worldwide. Numerous and develop scientific temper, museum collections for their creeping into nations across the globe to been published in the journal “Lancet things and many cities near the sea are also
fascinating journey that national museums were the National Council of studies. Much breathtaking keep the political brew on a boil. Scandals Neurology.” Fluctuations in temperature likely to go under water. The increase in
reflects humanity’s evolving founded in the 19th century, Science Museums (NCSM) research in science, especial- and crises would shake voters’ faith in the are now affecting brain diseases as well. I temperature should be stopped by
ways of collecting, preserving frequently serving as was established on April 4, ly on paleogenomics, was political system occasionally, but an engi- recently read in the news that the severi- humans. Otherwise, it seems that he will
and interpreting objects of emblems of cultural identity 1978. Today, it administers 26 done using the artefacts from neered schism and dysfunction in the poli- ty of diseases like cerebral palsy and have to face many problems and the
significance. The concept of and national pride. Science Centres/Museums museums. ty with agenda-driven governance turned encephalitis is increasing. Cases of cere- Government should also take measures for
collecting valuable or signif- The history of museums in spread across the country (The writer is an adjunct corrosive. bral palsy are also increasing due to the rise this.
icant objects dates back to India is deeply intertwined and is considered the world’s faculty at the National Universally, people feel that democracy is in nighttime temperatures. Overall, the Shantaram Wagh | Pune
ancient civilisations. In with the country’s rich cultur- largest network of science Institute of Advanced failing because the Governments it pro- scope of climate change is becoming very
ancient Greece, for instance, al and historical legacy. The centres/museums. Studies, Bengaluru; views duced were unable or unwilling to address large. Due to the increase in temperature, ) ( 6
temples often housed collec- colonial period saw the estab- Museums not only play a vital are personal) their greater concerns. In the ongoing various birds and animals have also start- !"#$%&'"()&
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T Diversity for Dialogue and
Development”, celebrated annu-
ally on May 21st, stands as a
beacon of hope in a world often
marred by conflicts stemming from cul-
tural, religious and socio-economic dif-
ferences. In such a situation of growing
HW\RIIDFWRUVHDFKDGGLQJWRWKHJURZLQJVHQVHRIXQHDVHLQRXUVRFL discord, dialogue emerges as a powerful
tool for fostering understanding, cooper-
HW\*LYLQJWKHUDWLRQDOHEHKLQGWKLVIULJKWHQLQJSKHQRPHQRQWKH\H[SODLQ ation and ultimately, development.
WKDWVRPHFDVHVDUHGXHWRWKHPRWLYHRIPRQH\RWKHUVGXHWRUDJH Dialogue serves as the cornerstone of
KDWHHQPLW\DQGUHYHQJHDQG\HWRWKHUVGXHWRRGLRXVGLVFULPLQDWLRQ development in a world, characterized by
EDVHGRQFDVWHUHOLJLRQHWKQLFLW\FXOWXUHRUQDWLRQDOLW\RUGXHWREXVL its diversity. The 1984 Nobel Peace Prize
QHVVULYDOU\RUSURIHVVLRQDOMHDORXV\+RZHYHUWKH\GRQRWJRLQWRWKH winner from South Africa and Theologian
FRPPRQURRWFDXVHRIDOOWKHVHPXOWLIDULRXVPDQLIHVWDWLRQVDQGPRWLYHV Desmond Tutu had eloquently Stated, “We
RIFULPH$VDUHVXOWWKH\IDLOWRDGGUHVVWKHPVHOYHVWRWKHUHDOSURE are different so that we can know our need
for one another,” thus necessitating the
OHPDQGWRUHPHG\WKHZRUVHQLQJDQGWKUHDWHQLQJVLWXDWLRQ6RLWZRXOG essence of cultural diversity - an oppor-
EHFRUUHFWWRVD\WKDWLQUHDOLW\WKHUHLVQRRWKHUSUREOHPEXWWKDWSHR tunity to learn, grow and empathize with
SOHGRQRWNQRZDQGHUDGLFDWHWKHURRWVRIWKHWUHHRIDOOSUREOHPVDQG others.
LQVWHDGWKH\WU\WRJHWULGRIVRPHRILWVEUDQFKHVRQO\2IFRXUVHQR UNESCO established the “World Day for
RQHFDQGHQ\WKDWLQDVRFLHW\ZKHUHFRUUXSWLRQDQGFULPLQDOWHQGHQ Cultural Diversity for Dialogue and
FLHVKDYHEHFRPHVWURQJO\HQWUHQFKHGDQGZKHUHWKHYLUXVRIFULPHKDV Development” in response to the 2001 ter-
HQWHUHGDQGVSUHDGLQWRWKHZKROHERG\RIVRFLHW\LWKDVEHFRPHGLIIL rorist attack that destroyed the Bamyan
Buddha statue in Afghanistan. In
FXOWWREUHDWKHWKHSXUHDLURIIUHHGRPRUOLEHUDWLRQIURPZRUU\IHDUDQG December 2002, the United Nations
WHQVLRQDQGGHVSLWHODFVRIDEOHERGLHGPLOLWDU\PHQDQGSROLFHDQGWUDLQHG General Assembly officially designated
DQGWKRXJKWIXOLQYHVWLJDWLQJRIILFHUVOLIHLVQHLWKHUVDIHIURPUXIILDQVQRU May 21st as this day. The 2002 Universal
*RYHUQPHQWDODSDWK\(YHU\RQHLVIHGXSZLWKWKHGHOD\LQJWDFWLFVRI Declaration recognized the need to
WKRVHZKRVHMRELVWRIDFLOLWDWHUDWKHUWKDQREVWUXFW(YHU\RQHLVWLUHGRI “Enhance the potential of culture as a
WKHFRUUXSWZD\VRIHYHU\RQHZKRFDQGRVRPHWKLQJJRRGDQGJUDFLRXV means of achieving prosperity, sustainable
EXWZKRLQSUDFWLFHLVGRLQJWKHUHYHUVH development and global peaceful coexis-
tence”.
Moreover, with 89% of all current conflicts elements for the progress and where is a threat to justice every- CEO of the East African Centre for
in the world occurring in countries with well-being of all. where,” emphasize the intercon- Human Rights, Judith Oloo, writ-
low intercultural dialogue, to forge effec- Thus the ‘World Cultural Diversity nectedness of human experiences ing for “The Standard” in her arti-
tive cooperation and sustain peace, Day’, commemorating the and the pivotal role of dialogue in cle “The World Day of Cultural
strengthening intercultural dialogue UNESCO Convention on the addressing systemic inequalities in Diversity: Children’s role as carri-
becomes a necessity. Further, according to Protection and Promotion of the this landscape. ers of culture” (standard
UNESCO data Diversity of Cultural Expressions, Engaging in dialogue, not only media.co.ke), lays importance on
(https://www.un.org/en/observances/cul- also emphasizes four key objec- enhances self-awareness but also the role of children as torchbear-
tural-diversity-day), the cultural and cre- tives. First, it advocates for policies fosters profound connections with ers of cultural diversity. She says
ative sector is one of the most powerful fostering the creation, produc- others. For instance, movements that children, “As participants in
engines of development worldwide. It tion and dissemination of diverse like ‘Black Lives Matter,’ sparked by and carriers of our culture… are a
accounts for more than 48 million jobs Q3 cultural goods and services. tragic incidents like George Floyd’s critical part of our population - the
globally - almost half of which are held by Secondly, it encourages initiatives and Breonna Taylor’s deaths, future of our societies”. According
%XWVWLOOHYHU\RQHLVGRLQJPRUHRUOHVVZKDWKHRUVKHFRQVLGHUVGLV women - representing 6.2% of all existing facilitating a balanced exchange of underscore the imperative of dia- to her, culture profoundly shapes
WDVWHIXOGLVGDLQIXOREQR[LRXVRUKRUULEOH,IZHJRGHHSLQWRWKLVSURE employment and 3.1% of global GDP. It cultural products while enhancing logue in combating systemic children’s development, influenc-
is also the sector that employs and pro- , the mobility of artists and cultur- racism and police brutality. ing emotional, social, physical
OHPWKHQZHZLOOILQGWKDWHPRWLRQDOGLVWXUEDQFHLVWKHRULJLQRIDOOGLV vides opportunities for the largest num- al professionals. Thirdly, it pro- Meaningful conversations among and linguistic growth from birth.
WXUEDQFHV<HVHPRWLRQDOLPEDODQFHRULQVWDELOLW\RIWKHPLQGLVWKHIRUH ber of young people under the age of 30.
, motes sustainable development communities, law enforcement Customs, beliefs and practices
UXQQHURIDOOLPEDODQFHVDQGLQVWDELOLWLHV(PRWLRQDOLPEHFLOLW\LVWKHPRWK However, the cultural and creative sector ) = policies and international aid pro- agencies and policymakers are surrounding food, art, language
HURIDOONLQGVRIDQDUFK\GHYLDQWEHKDYLRXUDQGFULPH³ELJRUVPDOO still does not have the place it deserves in grams that embrace cultural inte- essential for driving substantial and religion play significant roles.
,WLVDODFNRIHPRWLRQDOLQWHOOLJHQFHWKDWLVDWWKHEDFNRIHYHU\NLQGRI public policies and international cooper- ,Q) gration. Lastly, it underscores the reforms and promoting racial Recognizing this, professionals
ZD\ZDUGQHVVZDQWRQEHKDYLRXUDQGYLFLRXVWHQGHQFLHV ation. Thus, in a bid to change this, in importance of aligning interna- equity. working with children, such as
September 2022, delegations from 150 tional and national legislation Throughout history, numerous social workers and child rights
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States gathered in Mexico for MONDIAC- ,), with human rights and fundamen- instances underscore the transfor- advocates, must grasp these influ-
ULT 2022 - the largest world conference tal freedoms, ensuring the preser- mative potency of dialogue in ences to bring about a change.
EHFRPHVRLUUHVLVWLEOHDVWRJURZLQWROXVWDQGGLVOLNHIRUFHUWDLQSHU devoted to culture (in the last 40 years) - % vation and flourishing of cultural conflict resolution. One such In today’s world, addressing glob-
VRQVPD\EHFRPHVRVWURQJDVWRJURZLQWRGHHSKDWUHGDQGLQWKH where they unanimously adopted the his- diversity worldwide. All this is example is the Gandhian model of al challenges requires collaborative
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WUROZKDWZHPHDQLVWKDWZHKDYHWRKDYHDPHDVXUHRIGLVFLSOLQHRU ing for it to be integrated “as a specific goal cally, but also personally. ‘Satyagraha’ or truth force, advo- According to the UN, “Three-
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in its own right” in the Development ) Simultaneously, ‘Dialogue’ also cating peaceful resistance against quarters of the world’s major con-
Agenda beyond 2030. v= transcends geographical and cul- oppression. His commitment to flicts have a cultural dimension.
OLNLQJRUORYHDQGKDWHVRWKDWWKHVHQDWXUDOWHQGHQFLHVHQDEOHXVWRNHHS But what exactly are the concepts of diver- tural boundaries, catalysing cross- dialogue and nonviolence inspired Bridging the gap between cultures
WKHFRPSDQ\RIZKDWLVJRRGDQGVDOXEULRXVDQGNHHSDZD\IURPZKDW sity and inclusion along with culture? , ,^% cultural understanding and coop- millions, to follow the path of non- is urgent and necessary for peace,
LVEDGDQGKDUPIXO Diversity encompasses the intentional and eration. As Rumi, the 13th-centu- violence against the might of stability and development.”
:KHQZHUHIHUWRHPRWLRQDOLQWHOOLJHQFHZHUHIHUWRRXUVRXQGMXGJ inclusive gathering of individuals from ry Persian poet, poignantly British colonial rule. Through Each of us has a role in fostering
PHQWDVWRZKDWDUHWKHWKLQJVRUZKRDUHWKHSHUVRQVZLWKZKLFKRU various backgrounds, encompassing dif- expressed, “The wound is the nonviolent protests, civil disobedi- understanding to cultivate thriving
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gion, gender, gender identity, disability, =, a profound insight underscoring Gandhi showcased the power of nize how culture, in its various
sexual orientation, age, educational back- the potential for growth and dialogue in effecting profound diversified forms, enriches dis-
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adversity. oppression’s legitimacy, spurring a realms - social, environmental,
VLRQZLWKWKHSXVKDQGSXOORIFULPLQDOWHQGHQFLHVSRXQGLQJWKHLUPLQGV positively and contribute to a shared envi- In today’s complex landscape, dia- global movement for civil rights economic and so on. Is it then not
%XWZKDWHOVHLVWKHPHDQVRIHPRWLRQDOWUDLQLQJWKDQVSLULWXDOHGXFD ronment. Inclusion goes beyond merely logue emerges as an urgent neces- and social justice, across the coun- the time for us to at least sit across
WLRQ"2XUVWUXJJOHIRULQGHSHQGHQFHZLOOUHPDLQLQFRPSOHWHXQOHVVSHR acknowledging and respecting each per- sity, given the multitude of global try and inspiring others world- the table and start communicating?
son’s distinct experiences and identities. challenges like climate change, wide. Gandhi’s legacy underscores (The writer is Programme
SOHDUHHGXFDWHGWRKDYHHPRWLRQDOVHOIFRQWURO It requires fair treatment and widespread economic disparity and geopolit- dialogue’s enduring potential in Executive, Gandhi Smriti and
:ULWHULVDVSLULWXDOHGXFDWRU SRSXODUFROXPQLVW recognition. It means embracing and ical tensions. Martin Luther King resolving conflicts and advancing Darshan Samiti; views
YLHZVDUHSHUVRQDO appreciating these differences as essential Jr.’s timeless words, “Injustice any- justice worldwide. are personal)
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he disclosure by and valued the answer sheets. were decimated by the Islamist period 2001 to 2004. The 2003 CPI(M) was sworn in as chief posters of Achuthanandan giv- seven-time legislator who had
T Mohammed Sharshad, a
Chennai-based busi-
nessman, who is also a CPI(M)
No Arabic student has failed in
BA Arabic examination in
Maharajas College those days.
leaders. Before the 1991 assem-
bly elections, there was a sug-
gestion from certain CPI(M)
Marad beach massacre that
saw the slaughtering of eight
Hindu fishermen by Islamic
minister in 2006 after the
assembly election.
Achuthanandan was always
ing an impression that he
would be the automatic choice
of the CPI(M) as chief minis-
defeated both the LDF and the
UDF in assembly elections
was made to bite the dust in his
activist, that Malayalam cine- The title super mega star leaders like E K Nayanar and radicals happened during against any kind of communal- ter after the election. But home turf of Poonjar for lam-
ma’s “super mega star” reminds one of the age-old M V Raghavan (both left to Antony’s tenure. Antony was ism and fanaticism. During a Pinarayi Vijayan, whose pic- basting Love Jihad and the role
Mammootty has shocked the adage in the land of the blind, meet Marx, Lenin and Stalin) for an investigation by the CBI press meeting in the national tures or posters were conspic- of various Islamist outfits in
secular, liberal and democra- the one-eyed is the King. that the party should ally with but made a hasty retreat as capital in 2010, uously absent, was nominated this operation. For more than
tic political leaders of Kerala. Mammootty is no match for the Muslim League. But Muslim League leaders throt- Achuthanandan said that Love as chief minister by the party’s four decades, George was a
The CPI(M), CPI and %#$''( his counterparts in Hindi Namboodirippadu was quick tled the move. But he warned Jihad was a reality. “The leadership and since then the secular leader acceptable to the
Congress leaders have come movies or Hollywood. to retort that the Muslim the League leaders openly that Muslim fundamentalists have former has become the Muslim community. But when
out openly against the Sangh speeches and writings that Being a Jihadi or communal- League should get rid of its the organized bargaining an agenda to convert Kerala uncrowned king of Kerala. he pointed out the plight of the
Parivar for portraying India could be liberated only ist is not a crime. The issue name and flag (that resembled power of communal outfits into a Muslim majority State Achuthanandan was sidelined victims of Love Jihad, George
Mammootty as a Jihadi. The through Islam. Then other here is that one who questions the Pakistani national flag) to would not be entertained by within the next two decades,” not because of the influence became an enemy of human-
disclosure about Mammootty’s ministers took up the issue and the organized bargaining be considered an ally. Leaders his Government. This hurt the he had said. wielded by the Muslim com- ity and the entire Muslim
links with Jihadi organisations it has caused ripples in Kerala. capacity of the Muslim com- of the Muslim League became Muslim League leadership Though the CPI(M) lost the munity in the CPI(M). . community voted against him
was made by a Muslim youth, Mammootty, who was a munity becomes persona non furious and they saw to it that who asked the Congress High 2011 elections by a whisker, the The ire of the Muslim League in the 2021 assembly election.
a local leader of the CPI(M). below-average student during grata in Kerala. Leaders who Namboodirippadu was cut to Command to remove Antony party returned to power in and community leaders also This is Kerala’s brand of secu-
The first person to attack his college days is an Arabic were bold enough to point out size and the CPI(M) removed from the chief minister’s post 2016 making use of the good- claimed the political career of larism. Caveat Emptor would
Sangh Parivar about the report graduate from Maharaja’s the hidden agenda of the him from the coveted position at the earliest. That’s how will enjoyed by G Sudhakaran, a CPI(M) min- be the ideal word of caution for
about Mammootty’s Jihadi College Ernakulam. While he Muslim political and spiritu- of general secretary in 1992. Antony tendered his resigna- Achuthanandan all over ister who was disliked by the those daring to question the
links was K T Jaleel MLA, a was a student, Prof Ummer al leaders ended up in dust- The next to earn the wrath of tion post-2004 Lok Sabha polls Kerala. The highway from district-level leaders of Islamic outfits.
former CPI(M) minister and was the head of the Arabic bins. leaders of the Muslim commu- and moved over to New Delhi. Kasaragod to Alappuzha (all belonging to (The writer is a special corre-
former president of the banned Department and it was the lat- EMS Namboodirippadu tops nity was A K Antony who was V S Achuthanandan, a wide- Thiruvananthapuram was dot- the Muslim community) from spondent with the Pioneer,
SIMI. Jaleel is famous for his ter who set the question papers the list of such persons who the chief minister during the ly respected leader of the ted with larger-than-life-size where he hails. PC George, the views are personal)