Daily News Analysis (Prelims + Mains) – 6th October 2018

General Study – II

Topic:

Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

India- Russia

Background

The Indo-Russian strategic partnership has been built on five major components: politics, defence, civil nuclear energy, anti-terrorism co-operation and space.
The Soviet Union gave India substantial economic and military assistance during the Khrushchev period.
In 1965 the Soviet Union served successfully as peace broker between India and Pakistan after an Indian-Pakistani border war.
India signed with the Soviet Union the Indo-Soviet Treaty of Friendship and Cooperation in August 1971.

Developments

Recently a sixth component, economic, has grown in importance with both countries setting a target for US$30 billion in bilateral trade by 2025.
India is the second largest market for the Russian defence industry.
In 2004, more than 70% of the Indian Military’s hardware came from Russia, making Russia the chief supplier of defence equipment.
India has an embassy in Moscow and two consulates-general (in Saint Petersburg and Vladivostok). Russia has an embassy in New Delhi and four consulates-general (in Chennai, Hyderabad, Kolkata, and Mumbai).
According to a 2014 BBC World Service Poll, 45% of Russians view India positively, with only 9% expressing a negative view.

Political relations

India and Russia began with the Strategic Partnership signed between the two countries in 2000.
Both countries closely collaborate on matters of shared national interest these include at the UN, BRICS, G20 and SCO
Russia also strongly supports India receiving a permanent seat on the United Nations Security Council.
In addition, Russia has vocally backed India joining the NSG and APEC.
Moreover, it has also expressed interest in joining SAARC with observer status in which India is a founding member.
Russia currently is one of only two countries in the world (the other being Japan) that has a mechanism for annual ministerial-level defence reviews with India.

IRIGC

The Indo-Russian Inter-Governmental Commission (IRIGC) is the main body that conducts affairs at the governmental level between both countries.
It is divided into two parts, the first covering Trade, Economic, Scientific, Technological and Cultural Co-operation.
The second part of the commission covers Military Technical Co-operation
Other bodies include the Indo-Russian Forum on Trade and Investment, the India-Russia Business Council, the India-Russia Trade, Investment and Technology Promotion Council and the India-Russia Chamber of Commerce.

Military relationship

In 1997, Russia and India signed a ten-year agreement for further military-technical cooperation.
That agreement encompassed a wide range of activities, including the purchase of completed weaponry, joint development and production, and joint marketing of armaments and military technologies.
Today, the co-operation is not limited to a buyer-seller relationship but includes joint research and development, training, service to service contacts, including joint exercises.
An Inter-Governmental commission on military-technical co-operation is co-chaired by the defence ministers of the two countries.
The seventh session of this Inter-Governmental Commission was held in October 2007 in Moscow.During the visit, an agreement on joint development and production of prospective multi-role fighters was signed between the two countries.
An India–Russia co-operation agreement was signed in 1988.It has resulted in the sale of a multitude of defence equipment to India and also the emergence of the countries as development partners as opposed to purely a buyer-seller relationship.
Two programmes that evidence this approach are the projects to form Indian-Russian joint ventures to develop and produce the Fifth Generation Fighter Aircraft (FGFA) and the Multirole Transport Aircraft (MTA). The agreement is pending a 10-year extension.
India and Russia have several major joint military programmes including:
BrahMoscruise missile programme
5th generation fighter jet programme
Sukhoi Su-30MKIprogramme (230+ to be built by Hindustan Aeronautics)
Ilyushin/HAL Tactical Transport Aircraft
The value of India’s defence projects with Russia will further zoom north after the imminent inking of the final design contract for the joint development of a futuristic stealth fifth-generation fighter.
This R&D contract is itself pegged at US$11 billion, to be shared equally by the two countries.

Economic relations

Bilateral trade between both countries is concentrated in key value chain sectors : machinery, electronics, aerospace, automobile, commercial shipping, chemicals, pharmaceuticals, fertilisers, apparels, precious stones, industrial metals, petroleum products, coal, high-end tea and coffee products.
Bilaterial bodies that conduct economic relations between the two countries include IRIGC, the Indo-Russian Forum on Trade and Investment, the India-Russia Business Council, the India-Russia Trade, Investment and Technology Promotion Council, the India-Russia CEOs’ Council and the India-Russia Chamber of Commerce.
Both Governments have jointly developed an economic strategy that involves using a number of economic components to increase future bilateral trade.
These include development of an FTA between India & the EEU, a bilateral treaty on the promotion and protection of investments, a new economic planning mechanism built into IRIGC, simplication of customs procedures, new long term agreements in the expansion of energy trade including nuclear, oil and gas.
Finally, long term supplier contracts in key sectors such as oil, gas and rough diamonds. Companies such as Rosneft, Gazprom, Essar &Alrosa will act as long term suppliers respectively.
Russia has stated it will co-operate with India on its “Make in India” initiative by engagement in the development of “Smart Cites”, the DMIC, the aerospace sector, the commercial nuclear sector and enhancement in manufacturing of Russian military products through co-development and co-production.
Russia agreed to participate in the vast, over $100 billion, DMIC infrastructure project which will eventually connect Delhi and Mumbai with railways, highways, ports, interconnecting smart cities and industrial parks.
Both countries have also agreed to work together in the aerospace sector to co-development and co-produce aircraft, examples include the SukhoiSuperjet 100, MS-21, FGFA, MTA and Kamov Ka-226.
Both countries have agreed to streamline their bilateral trade in diamonds through reductions in regulations and tariffs.
Both governments have set up a joint study group (JSG) to negotiate the specifications of an agreement, a final agreement would be signed between India and Eurasian Economic Union of which Russia is a part of (also including Kazakhstan, Armenia, Kyrgyzstan & Belarus).
Thereby, the Indo-Russian FTA would result in a much bigger free trade agreement including India, Russia, Kazakhstan, Armenia, Kyrgyzstan & Belarus.
Cooperation achieved in diamond sector, including the signing of new long-term contracts for rough diamond supplies by PJSC ALROSA to Indian companies, opening of the ALROSA representative office in Mumbai and joint financing by the ALROSA and the Gem & Jewellery Export Promotion Council of India of the International Diamonds Producers Association on the development of programmes of generic marketing of diamonds, including in the Indian market. Welcoming sign of investments by Indian companies in the diamond manufacturing in the Russian Far East.
India-Russia cooperation in outer space is mutually beneficial and measures like setting up measurement data collection ground stations of the Indian Regional Navigation Satellite System NavIC and the Russian Navigation Satellite System GLONASS in the territory of the both countries.

Co-operation in the Energy sector

In 2001, ONGC-Videsh acquired 20% stake in the Sakhalin-I oil and gas project in the Russian Federation, and has invested about US $1.7 billion in the project.
Gazprom, the Russian company, and Gas Authority of India have collaborated in joint development of a block in the Bay of Bengal. Kudankulam Nuclear Power Project with two units of 1000 MW each is a good example of Indo-Russian nuclear energy co-operation.
Both sides have expressed interest in expanding co-operation in the energy sector.
In December 2008, Russia and India signed an agreement to build civilian nuclear reactors in India

Recent:

India –Russia , Mutual trade grew by 21 percent 2017, and this year has been 20 percent
Russia to collaborate with India on large infrastructure projects

Russian railway company agreed to help build modern railroads in India.
Russia is also ready to help India launch a manned space mission

Russia plans to share its defence technology and build 12 nuclear power units in India the next 20 years
Trade and defence deals worth $10 billion has been signed between India and Russia. With special focus on trade, defence and terror operations.
India signs deal for 5 Russian S-400 Triumf missile shield systems

Manufactured by the Russian government-owned arms company Almaz-Antey, the S-400 Triumf is known as the SA-21 Growler by the North Atlantic Treaty Organisation or NATO.
It can hit aircraft, cruise missiles and even fast-moving intermediate range ballistic missiles. The S-400 has three components — the missile launchers themselves, a powerful radar and a command centre.
The S-400 can engage almost every type of modern warplanes. Advanced jet fighters with stealth capabilities will also find it difficult to operate in a battle space where the S-400 is deployed.
The first S-400 systems became operational in 2007 and entered service with the First Air Defence Corps responsible for defending Moscow.

General Study – II

Topic:

Issues relating to development and management of Social Sector/Services relating to Health, Education,
Human Resources.

National Nutrition Month

National Nutrition Month (Poshan Maah) witnesses overwhelming People’s participation

More than 23 lakh activities taken up and around 27 Crore people reached across the country during the National Nutrition Month under Poshan Abhiyan.

Poshan Maah Awards to be presented to best performers in New Delhi

Under POSHAN Abhiyaan, September was celebrated as the Rashtriya Poshan Maah across the country to address the malnutrition challenges and sensitize our countrymen regarding the importance of holistic nutrition.

Poshan Maah aimed at making people aware of the importance of nutrition & giving individual access to government services to support supplement nutrition for their children & pregnant women /lactating mothers.

Ministry of Women & Child Development as the nodal agency, launched Rashtriya Poshan Maah or National Nutrition Month, across the length and breadth of the country on the 01^st of Sep 2018.

With wide range of activities focusing on antenatal care, anaemia, growth monitoring, girl’s education, diet, right age of marriage, hygiene and sanitation, eating healthy as themes were organised during the Poshan Maah.

Entire range of themes were exhibited and showcased in form of food melas, rallies, school level campaigns, anaemia tests camps, recipe demonstration, radio & TV talk shows, seminars all across country.

National Institute on Nutrition will come out with Status of India Nutrition report next year. This report, dealing with various parameters of nutrition will now be compiled annually to give more frequent feedback on status of nutrition in the country.

The secretary also disclosed that the ICDS-CAS rollout is also moving at a good pace and more than 4 lakh Anganwadis will be covered by this IT tool by December this year.

General Study – III

Topic:

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and
employment.

MPC bi-monthly statement

The Monetary Policy Committee (MPC) in its fourth bi-monthly statement, on the basis of an assessment of the current and evolving macroeconomic situation decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent.

Monetary Policy Committee

It’s the Committee of the Reserve Bank of India that is responsible for fixing the benchmark interest rate in India. The meetings of the Monetary Policy Committee are held at least 4 times a year and it publishes its decisions after each such meeting.

The committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India. They need to observe a “silent period” seven days before and after the rate decision for “utmost confidentiality”.

The Governor of Reserve Bank of India is the chairperson ex officio of the committee. Decisions are taken by majority with the Governor having the casting vote in case of a tie.

The current mandate of the committee is to maintain 4% annual inflation until March 31, 2021 with an upper tolerance of 6% and a lower tolerance of 2%.

The committee was created in 2016 to bring transparency and accountability in fixing India’s Monetary Policy.

The monetary policy are published after every meeting with each member explaining his opinions. The committee is answerable to the Government of India if the inflation exceeds the range prescribed for three consecutive months.

General Study – III

Topic:

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and
employment.

Task Force for Closing the Skills Gap in India

Launched by Ministry of skill development in collaboration with the World Economic Forum. The task force will bring together leaders from business, Government, civil society, and the education and training sectors to accelerate the future-proofing of education and training systems in the country.

Minister of skill development will co-chair the task force along with Shri Salil Parekh, Chief Executive Officer and Managing Director, Infosys.

The goal of the Task Force is to develop an action plan to address skills gaps in India and make the Indian workforce ready for jobs of future.

The Task Force is the second country-led public-private collaboration of the World Economic Forum’s Closing the Skills Gap Project after South Africa.

Facts for Prelims

GI Tag for Alphonso from Konkan

Alphonso from Ratnagiri, Sindhudurg, Palghar, Thane and Raigad districts of Maharashtra, is registered as Geographical Indication (GI).

The king of mangoes, Alphonso, better known as ‘Hapus’ in Maharashtra, is in demand in domestic and international markets not only for its taste but also for pleasant fragrance and vibrant color.

It has long been one of the world’s most popular fruit and is exported to various countries including Japan, Korea and Europe. New markets such as USA and Australia have recently opened up.

A Geographical Indication or a GI is an indication used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.

Darjeeling Tea, Mahabaleshwar Strawberry, Blue Pottery of Jaipur, Banarasi Sarees and Tirupati Laddus are some of the GIs.

The first product to get a GI tag in India was the Darjeeling tea in 2004. There are a total of 325 products from India that carry this indication.

Benefits

GI products can benefit the rural economy in remote areas, by supplementing the incomes of artisans, farmers, weavers and craftsmen. Our rural artisans possess unique skills and knowledge of traditional practices and methods, passed down from generation to generation, which need to be protected and promoted.

Recently, Union Minister of Commerce and Industry, launched the logo and tagline for the Geographical Indications (GI) of India and said that the GI will give the rightful share in the intellectual property to the artisan and the place of origin of the product.

The Department of Industrial Policy and Promotion has taken several initiatives in this regard and is actively involved in promotion and marketing of GIs with a vision to enhance the horizon both socially and economically for GI producers.