Wednesday, October 5, 2011

India-EU Free Trade Agreement ; Challenges Ahead

With out having conceptual clarity and basic general information on what is happening in the Economy, UPSC would be a tough battle to win. Economics include both Indian Economy and International Economic phenomena which directly or indirectly affects Indian Economic situation. India-EU FTA (Free Trade Agreement) becomes a hot topic with its relevance to both Indian and International Economics.

The India- EU FTA , a long cherished Trade Pact has been in deadlock over some serious issues. The FTA, if realized would open the vast Indian market for European firms and India would benefit hugely in terms of increased job opportunities, Outsourcing, IT and Pharmaceuticals etc.

However, the India- EU  FTA talks that resumed last month (September) have brought no improvement, as both the parties are not ready to budge from their positions. The differences are over Intellectual Property Rights, Pharmaceuticals, and Automobiles. Other Social and Environmental issues like labour standards worsen the problem.

The European Union has been insisting on India to implement strict Intellectual Property Regime, for which India hasn't been ready, as it would adversely affect our Pharmaceutical sector. European Union has also been demanding us to impose fewer taxes on exports. India on the other hand has taken up the issue of travel restrictions on its professionals. India wants it to be eased and more job opportunities to be offered for its professionals. As the two sides are not ready to give up, it seems like the FTA is not likely to be inked in the near future. Concerted efforts and sacrifices from both sides are required without forgoing the legitimate demands, not to miss a golden opportunity.

Wednesday, September 14, 2011

India-US Relationship: Present Status and Future Scope

India-US relationship has always been a relevant topic for UPSC Civil Service Exams. It has been frequently asked by the UPSC in the General Studies paper regarding the Present Status and Future Scope of the bilateral relationship.


India and US are good allies who enjoy mutual trust, confidence, and cooperation and face common challenges in the present global scenario. Both these major players of the world together can provide a balanced world order and address the future challenges.


Presently US is the Largest Trading Partner of India. India's emerging economy offers a threshold to opportunities for US and the well established US economy is a major contributor of foreign investment and remittance to India and offer jobs for lakhs of Indians.

India and US are mutual allies in defence sector, who conduct joint military and maritime exercises and cooperate in maintaining international peace and security and in fighting terrorism. India's recent big order for US Defence equipments would give a boost to crisis ridden US Economy. The 2006 Civil Nuclear Agreement which benefit both nations in terms of economic prosperity and energy security is a landmark in energy cooperation.

Though both the nations have been engaging in bilateral and international issues, there lie greater scope for the mutual relationship, notwithstanding the challenges which await.

Both India and US have a joint role to play in international issues ranging from Afghanistan to Africa, cooperation in combating Terrorism, Maritime Piracy,and Climate Change. To maintain a just world order and international peace India and US must together persuade other nations to act without violating the international laws and humanitarian and ethical concerns. India can get advantage from joint ventures in research and development in Science and Technology and Agriculture.

While leveraging the greater possibilities of the bilateral relation India must take care not to hurt it integrity, sovereignity and also the legitimate interests of other nations. India shouldn't be a mere protector of US interests, instead it should be an equal ally with a firm stand, for the benefit of its people and territory.






Tuesday, September 13, 2011

Sex Ratio in the 2011 Census Report: A Major Concern for India

As per the 2011 Census Report, the sex ratio is a major concern for India's future social development, as the nation is poised to be a super powers in the near future. As per the 2011 Census Reports the Sex Ratio  is 940 females per 1000 males, way behind the world average, and highly  undesirable for a nation of billion plus people.

It is a shame on the nation, with a great tradition of 'respecting women' that we have not been able to bring the number of women on par with that of men even after six decades of independence. More outrageous is the Child Sex Ratio, 914 girls per 1000 boys in the 0-6 age group, which is at an all time high. All these owe to the intrinsic gender inequality and son preference that have been prevailing in Indian society.

No doubt, such a low Sex Ratio would only help  all our development policies go in vain. A Sex Ratio below 1000 is not at all good for a myriad of reasons. It has affected the institution of marriage,leading to unconventional marriages, sale of girls, and women trafficking. If this attitude is perpetuated, it would make our women vulnerable and our policies of Women Empowerment, Child Development, Inclusive Growth would be hit seriously. Women will continue to lead their miserable life, and it will affect social development and progress of the entire nation and hamper India's popularity in the international arena.

Moreover, it has a cultural and emotional aspect. Woman, who adorns a respected position in our culture, being neglected would question our boasting of the great Indian Culture(Arsha Bharatha). This SMS joke that comes in to my mind is an eye-opening question. "Do you require tiger or girl on the back of your bike? save girls before shouting for Tigers." Though funny, this gives a strong message for us. Robust GDP figures doesn't make sense until you ensure a descent living for all, especially woman.

Friday, September 9, 2011

India's 'No First Use Policy' in Context of Nuclear Weapons

India's 'No First Use Policy' on Nuclear Weapons has always been a relevant topic for UPSC Civil Service Exams General Studies paper. It was asked directly in GS Paper-2 in 2002. To add up, in almost all years, questions regarding India's nuclear policy have been figured out in the UPSC question papers. So it is above doubt that no IAS aspirant can neglect this topic if he really wish to succeed.


'No First Use Policy' refers to 'a declaration by a nuclear weapon holding nation to not to use the weapons unless first attacked by an enemy with nuclear weapons.' This policy has gained importance in the present scenario  as around a dozen countries in the world are known to have been possessing nuclear weapons.


India, though is not a signatory to the Nuclear Non Proliferation Treaty (NPT), has assured 'not to use first' after its Operation Shakti in 1998. Since independence, India has been a strong campaigner for nuclear disarmament and non-proliferation. It was because of its peculiar Geo-security concerns India had to develop nuclear weapons, to protect its people and territory and to ensure its sovereignity.

Even though India possesses nuclear weapons, it has taken many steps towards a nuclear free world. Our former Prime Minister Rajiv Gandhi had envisaged an 'Action Plan' for 'Universal Disarmament'. We have been campaigning widely for a nuclear free world and we have our own policy of 'Universal Disarmament'. India along with China and North Korea is one among the three countries to have declared its 'No First Use Policy'. We have been able to get a clean waiver from NSG partly  because of a strong 'No First Use Policy'. This fact bears testimony for the credibility of India's nuclear policies.

Thursday, September 8, 2011

India's Economic Growth Story since Independence

India's Economic Growth Story since Independence had been lackluster till 1990s. The world only  heard stories of poverty,illiteracy,famines,jam-packed slums and a lot similar from this largest democracy.

Though things have not turned-around completely, India has achieved the status of an 'emerging economy' with a robust growth rate which we have been able to maintain since the economic reforms. India has been  among a few nations which post 8% GDP growth for the last many years, baring the crisis period. Thanks to the sound financial system and the timely intervening of our regulators, we could post a far better growth rate of 6.2%  when the developed world were having a bad time. A diverse and vast working population
(what we call 'The Demographic Dividend'), huge though yet untapped market, progressive economic policies, and our new image of investor friendly nation(though the road is not fully smooth) have helped us to achieve this excellent growth saga.


However, things had been quite different before 1990s. Though India had been having a 4-5% growth since Independence, owing to huge public spending in industry and its mixed economy system, it had  been uneven. Some sectors lagged behind. Agriculture, which was the sole livelihood for around 75% of its population, even posted negative growth due to an utter neglect from the part of policy makers and the post dated technology and inputs we had been using. Whereas, with the advent of 'Green Revolution' agriculture sector improved enough to register 4-5% growth from the late sixties onwards.


Meanwhile, industrial growth slowed down as policy makers were busy with 'Green Revolution'. However, service sector has grown incessantly due to increased urbanisation, modernisation, economic reforms and a slew of other reasons including cost competitiveness. Though overall GDP growth rate had been increasing since 1980s, the BOP crisis in 1991 took India to have a u-turn in its economic policies and post high growth henceforth , though uneven , albeit   our rhetoric of and continuous efforts to make it inclusive.