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My notes by RB - 31 March 2016 31-03-2016

Editorials

President’s rule and federal politics – P15q2

  • Political cooperation and maintaining good relation with party in power at Centre yielded rich dividends to the states – in terms of easy access to funds, a share in central power, undisturbed reign in the state. MGR in TN and Bhajan Lal in Haryana followed similar strategy.
  • But the maintenance of good relations for every state with Centre may not be possible. Maneuverability is very difficult if national party is in power at the state level.
  • In 1977 and 1980 Janata and Indira Government dismissed the state Governments ruled by the opposition on the ground that they lost the people mandate. Supreme court in the state of Rajasthan vs Union of India case dismissed the cases on imposition of Art 356 and declared that president satisfaction to impose Art 356 is non justiciable.
  • Situation changed i9n SR Bommai case and Supreme Court clearly laid down the guidelines.

E commerce – New Government rules - O9

  • The rules states that
  1. It makes a distinction between market place e commerce and inventory based e commerce.
  2. New rules place an upper limit of 25% as the maximum sale that an e commerce entity can source from any of its vendors. It means e commerce enterprises cannot sell their own brand beyond a limit. Ex – flip kart has much of its sale from WS retail and Amazon from cloud tail. These need to be restricted to 25%.
  3. E tailers shall not directly or indirectly influence the sale of price of goods and services. It is expected to end predatory pricing.

Impact of the policy

1)      Pricing freedom is central to the functioning of the market. Policy has taken that away from e retailers. So, it may decrease the low price offers offered by the

2)      It appears to benefit brick and mortar shop and 100% FDI applies only for market place retail.

Defence procurement – Developing robust defence industry in India – E5q7

1)      Raising FDI limits to 100%

2)      Strong protection to the intellectual property regime

3)      Offset clause need to be redefined to move away from maintenance, servicing, assembling to actually produce certain critical components in India.

4)      Financing R&D production in private sector by the Government

5)      Establishing a separate department of overseas acquisitions in the ministry of defence for assisting private companies willing to take over foreign companies.

Development and urban areas – P10q2

Main problems of Urban poor

1)      Displacement – As these people live in temporary settlements without any proper documentation, civic authorities repeatedly take down their settlements.

2)      Urban penalties – No civic amenities are available. So, they have worse health and education indices compared to other city dwellers.

Solution

Rural prosperity can contribute substantially to create sustainable cities and better economic development.

Palmyra victory – D3q2

Factors led to the victory of Assad force in Palmyra over Islamic State

1)      Loss of the critical town of Tal Abayad on turkey Syrian border to the Kurd rebels. The town is the main access point for weapons, material and fighters for Islamic State.

2)      International pressure on Turkey squeezed IS border supply lines.

3)      Ceasefire in Syria helped the Syrian forces to focus on Islamic State

4)      Russian intervention and support restored the morale of the state fighters.

Impact

Territorial ambition of Islamic State is on hold now. Loss of idea of a caliphate makes Islamic State weaker.

 

 

News

 

BTIA – India – EU – D2q3

  • Greater access to Indian services in EU market( It needs securing a status of data secure nation )
  • Easing of Visa norms

 

Employment growth slows down – E7

  • New jobs in eight labour intensive industries fell to a six year low in the first nine months.
  • There is also a sharp decline in hiring of contract labour

India – Pakistan talks – D1q1

  • Major developments after Prime minister Modi visit to Lahore is

1)      Direct lines of communication is established between the national security advisors.

2)      Diplomatic lines of engagement are kept open

3)      Focus of the world shifted away from persuading India Pakistan to engage to Issues of engagement and Terrorism taking the central stage.

Nuclear security summit –D5

Pakistan is deploying the battle field nuclear weapons (tactical nuclear weapons). It increases the nuclear security threat.

 

Indian Express

Drama in the hills –P15q2

Art 356 is viewed differently by the political parties based on their status of power at the Centre. Any political party at power in Centre sees the merit of a strong Centre and when out of it, it can see the limitations of a strong Centre.

Government – opposition relations are central to make a sense of Centre state relations in India. Different leaders used Art 356 to their political advantage. Indira Gandhi used Art 356 to reduce the dissent within her political party and also to check the opposition parties of the time.

Small states with less than 100 legislators are more frequent victims of misuse of Art 356. Strong central model and weak financial position of many small states make them vulnerable to the influence of the Centre.

Question of the day

Indian e commerce market is expected to touch $69 billion by 2020. Do you think the present policy guidelines are in the said direction to develop the market?  Analyze.  

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