15 Jun 2024: UPSC Exam Comprehensive News Analysis

15 June 2024 CNA
Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
SOCIAL JUSTICE
1. NEET scam
INTERNATIONAL RELATIONS
1. In Burgenstock, leaders seek a peace framework for Ukraine, without Russia
C. GS 3 Related
D. GS 4 Related
E. Editorials
INTERNATIONAL RELATIONS
1. One more chance
ECONOMY
1. India growth story has a ‘beneficial ownership’ hurdle
F. Prelims Facts
1. Thousands of Kashmiri Pandits take part in Kheer Bhawani temple festival
2. Residents oppose allotment of flat under CM scheme to a Muslim woman in Gujarat
3. Manipur Naga body prescribes social boycott of MP-elect
4. G-7 leaders say they will back Ukraine ‘as long as it takes’
G. Tidbits
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions
FIP Magazine

Category: INTERNATIONAL RELATIONS

1. In Burgenstock, leaders seek a peace framework for Ukraine, without Russia

Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s Interests

Mains: Russia-Ukraine war

Context​: A significant peace summit for Ukraine is set to take place in Burgenstock, Switzerland, on June 15-16. This summit aims to create a framework for a future peace process in the ongoing Russia-Ukraine war. However, the notable absence of key stakeholders, particularly Russia, raises questions about the effectiveness and neutrality of this initiative.

Background of the Burgenstock Summit

  • Location and History: Burgenstock is a luxurious resort in the Swiss Alps with a history of hosting notable figures and diplomatic events.
  • Summit Details: The summit will see the attendance of 90 countries and international organizations, including Ukrainian President Volodymyr Zelenskyy and European leaders.

Key Absences

  • Russia: President Vladimir Putin has not been invited.
  • United States: President Joe Biden will not attend; Vice-President Kamala Harris and NSA Jake Sullivan will represent the U.S.
  • China and Brazil: Both countries have chosen to stay away, impacting the summit’s global representation.

Challenges and Criticisms

  • Effectiveness Without Russia: The absence of Russia raises doubts about the sustainability and effectiveness of any peace framework developed.
  • Swiss Neutrality: Switzerland’s traditional stance of neutrality is questioned due to its alignment with EU sanctions against Russia.
  • India’s Stance: India, a strategic partner of Russia, has opted for lower-level representation, indicating the complexities in its diplomatic balancing act.

Issues

Lack of Comprehensive Dialogue

  • Absence of Key Players: The absence of Russia, a primary party in the conflict, undermines the potential for a balanced and effective dialogue.
  • Neutrality Questions: Switzerland’s perceived partiality due to sanctions against Russia may affect its role as a neutral mediator.

Political Implications

  • Internal Political Dynamics: Domestic politics in attending countries, especially Ukraine and its supporters, influence the summit’s agenda and outcomes.
  • International Relations: The summit’s outcomes may affect diplomatic relations and geopolitical alignments, particularly concerning the involvement or exclusion of major powers.

Significance

Potential for Peace Framework

  • Dialogue Platform: The summit provides a platform for discussion and potential formulation of a peace framework, even in the absence of key parties.
  • European Stability: Efforts to establish peace in Ukraine are crucial for the stability and security of Europe.

Diplomatic Engagement

  • Swiss Diplomacy: The summit highlights Switzerland’s role in international peace efforts, despite the challenges to its neutrality.
  • Global Diplomacy: The participation of a diverse range of countries and organizations underscores the global interest in resolving the Ukraine conflict.

Solutions

Inclusive Dialogue

  • Engagement of All Parties: Future peace efforts must strive to include all relevant parties, including Russia, to ensure comprehensive and sustainable solutions.
  • Neutral Mediation: Reinforcing the role of truly neutral mediators can help facilitate more balanced negotiations.

Addressing Political Realities

  • Acknowledging Ground Realities: The summit and subsequent efforts must consider the on-ground realities and the positions of all stakeholders to devise practical solutions.
  • Leveraging International Organizations: Organizations like the UN and OSCE can play a crucial role in mediating and implementing peace agreements.

Nut Graf: The Burgenstock summit represents a significant but complex step towards establishing a peace framework for Ukraine. While the absence of key players like Russia poses a challenge, the efforts to foster dialogue and explore potential solutions are crucial. Moving forward, ensuring inclusive and neutral mediation will be essential to achieving lasting peace in the region.

Category: ECONOMY

1. India growth story has a ‘beneficial ownership’ hurdle

Syllabus: GS-3, Foreign investments, trade and exports

Mains:  Significance of foreign investments in India’s aspiration to become a $5 trillion economy by the financial year 2025-26

Context:​ India’s aspiration to become a $5 trillion economy by the financial year 2025-26 heavily relies on foreign investments. However, regulatory bottlenecks, particularly the ambiguity surrounding ‘beneficial ownership,’ pose significant challenges. 

Amendment Conundrum

  • Press Note 3 of 2020: The amendment to the Indian Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (FEMA NDI), introduced a requirement for prior government approval for investments from countries sharing land borders with India or where the beneficial owner is situated or a citizen of these countries.
  • Objective: The amendment aimed to prevent opportunistic takeovers during the COVID-19 pandemic.
  • Issue: The term ‘beneficial owner’ remains undefined, leading to regulatory uncertainty and conservative interpretations by the Reserve Bank of India (RBI).

Regulatory Challenges

  • RBI Notices: Foreign Owned or Controlled Companies (FOCCs) have received notices regarding downstream investments, indicating that they are subject to the same restrictions as non-residents.
  • Legal Ambiguity: Lack of clear guidelines on beneficial ownership has resulted in varying interpretations and increased legal risks for companies and investors.

Approval Process Hurdles

  • Time-Consuming and High Rejection Rates: The process for obtaining government approval is lengthy and has a high rejection rate, with proposals worth ₹50,000 crore pending, withdrawn, or rejected in recent years.
  • Compliance Burden: The responsibility of compliance falls on Indian companies, with severe penalties for non-compliance, which can jeopardize their financial stability.

Issues and Solutions

Indemnity Challenge

  • Foreign Investor Indemnities: Indian companies might seek indemnities from foreign investors to ensure compliance, but this could deter investment.
  • Solution: Amend the PN3 Requirement to provide a comprehensive definition of ‘beneficial owner,’ including ownership thresholds and control tests.

Defining Beneficial Owners

  • Ownership Thresholds: Establish precise thresholds for beneficial ownership, possibly between 10% and 25%, depending on the sector’s sensitivity.
  • Control-Conferring Rights: Define rights that confer control, such as veto powers over significant operational decisions, while excluding investor protection rights.

Consultation Mechanism

  • Ambiguity Mitigation: Introduce a time-bound consultation mechanism with regulatory authorities to clarify control-conferring rights and reduce ambiguity.

Significance

  • Investment Climate: Clearer regulations will enhance the attractiveness of the Indian market for foreign investors, crucial for achieving the $5 trillion economy goal.
  • Startup Ecosystem: Reduced regulatory uncertainty will benefit startups and smaller enterprises, enabling them to secure necessary investments.
  • Economic Growth: Streamlined foreign investment processes will contribute to overall economic growth and development.

Nut Graf: Addressing the ‘beneficial ownership’ hurdle through clear definitions, streamlined processes, and regulatory clarity is vital for attracting foreign investments. Such reforms will not only support India’s economic aspirations but also strengthen its position as a global investment destination.

F. Prelims Facts

1. Thousands of Kashmiri Pandits take part in Kheer Bhawani temple festival

Context: The Kheer Bhawani temple festival, an annual religious event for Kashmiri Pandits, witnessed a significant gathering this year in Ganderbal district of Kashmir Valley. This festival, celebrated on Zyestha Ashtami, attracted thousands of devotees, including many who had migrated during the 1990s due to militancy. The event was marked by a harmonious display of Kashmiriyat, with local Muslims also participating.

Background and Context

  • Historical Significance: The Kheer Bhawani temple, located amid chinar trees and featuring a natural spring, holds immense religious significance for Kashmiri Pandits. The festival has been celebrated for centuries.
  • Current Scenario: This year’s festival saw the participation of over 30,000 devotees, including many who had left the Valley due to past conflicts. Enhanced security measures were in place following a recent militant attack on pilgrims in Reasi’s Katra area.

Participation and Activities

  • Devotees’ Involvement: Devotees from across the country, including many who now reside outside Kashmir, returned to participate in the festival, praying for peace and the return of Pandits to the Valley.
  • Muslim Participation: Local Muslims also joined the festivities, setting up stalls and selling puja paraphernalia, symbolizing communal harmony and the spirit of Kashmiriyat.

Significance of the Festival

  • Religious Importance: The temple and its spring are considered auspicious, and the festival is a vital religious observance for the Pandit community.
  • Symbol of Hope: The clear and transparent water in the temple spring is seen as a good omen, fostering hope for peace and the eventual return of Kashmiri Pandits to their ancestral homes.

Issues

Security Concerns

  • Recent Attacks: The recent militant attack on pilgrims highlights ongoing security challenges in the region, necessitating stringent measures during large gatherings.
  • Return of Pandits: The safe and dignified return of Kashmiri Pandits remains a critical issue, requiring sustained efforts for rehabilitation and reintegration.

Communal Harmony

  • Kashmiriyat: The participation of local Muslims underscores the enduring spirit of Kashmiriyat, though communal harmony needs continuous nurturing amid political and social challenges.
  • Political Support: Statements and visits by political leaders emphasize the broader support for peace and the return of displaced communities.

2. Residents oppose allotment of flat under CM scheme to a Muslim woman in Gujarat

Context: A recent controversy in Vadodara, Gujarat, has emerged over the allotment of a flat to a Muslim woman under the state government’s Mukhyamantri Awas Yojana. Residents of the housing scheme have protested the decision, arguing that the locality is intended “only for Hindus,” which highlights the deep-seated issue of housing segregation in the state.

Background and Context

  • Housing Scheme: The flat in question is part of Motnath Residency, a housing project built by the Vadodara Municipal Corporation under the Gujarat government’s Mukhyamantri Awas Yojana, intended for lower-income groups.
  • Allotment Process: The allotment was done through a lottery system. The Muslim woman, who was allotted the flat six years ago, has faced continuous opposition from other residents.

Protest Details

  • Resident Protests: Residents argue that the housing complex is meant exclusively for Hindus, and they have threatened to escalate their protests to Gandhinagar and Delhi if the allotment is not cancelled.
  • Legal Backdrop: Protesters cite the Disturbed Areas Act, which they claim prohibits the sale of property between different religious communities without approval from the District Collector.

Official Response

  • Municipal Commissioner’s Statement: Dilip Rana, the Municipal Commissioner, stated that the situation is under review and a decision will be taken after examining all relevant documents to determine if the complex falls under the Disturbed Areas Act.
  • Resident Concerns: The residents believe the allotment violates the Act and could disturb the communal harmony they perceive in their area.

Issues

Housing Segregation

  • Segregation Practices: This incident underscores the near-complete housing segregation in Gujarat, where Muslims often face difficulty in leasing or purchasing homes in predominantly Hindu areas.
  • Disturbed Areas Act: While intended to prevent distress sales in communally sensitive areas, the Act is often cited in ways that reinforce segregation.

Social Tensions

  • Communal Harmony: The protests reflect underlying social tensions and the challenges of fostering communal harmony in diverse societies.
  • Discrimination: The opposition to the allotment based on religion points to broader issues of discrimination and exclusion faced by minority communities.

3. Manipur Naga body prescribes social boycott of MP-elect

Context: The United Naga Council (UNC), the apex body of Nagas in Manipur, has prescribed a seven-year social boycott of Congress MP-elect Alfred Kanngam S. Arthur and two other Independent candidates. This action is a response to their defiance of the UNC’s pre-poll appeal to support a consensus candidate in the Outer Manipur constituency.

Context and Background

  • Election Results: Alfred Kanngam S. Arthur of the Congress won the Outer Manipur seat, defeating Kachui Timothy Zimik of the Naga People’s Front (NPF) by 85,418 votes. Independent candidates S. Kho John and Allyson Abonmai finished third and fourth, respectively.
  • Pre-Poll Appeal: The UNC had appealed to support Mr. Zimik as the consensus candidate representing the Naga tribes of Manipur.

UNC’s Decision

  • Social Boycott: The UNC has decided to impose a seven-year social boycott on Mr. Arthur, Mr. John, and Mr. Abonmai. This includes debarring them from public platforms and leadership positions within the Naga society.
  • Reasons for Boycott: The trio is accused of defying the UNC’s position and challenging the unity of the Naga people by contesting the election against the consensus candidate.

Public Notification

  • Directive: The UNC has instructed its constituent units and the Naga populace to enforce the resolution within their respective jurisdictions.
  • Official Statement: The notification, signed by H. James Hau, the information and publicity secretary of the UNC, formalizes the boycott.

Issues

Internal Divisions

  • Fragmentation: The UNC’s decision highlights internal divisions within the Naga community, with different factions supporting different candidates.
  • Unity and Representation: The boycott raises questions about the representation and unity of the Naga tribes, especially when pre-poll agreements are not honoured by all parties.

Democratic Principles

  • Right to Contest: The action by the UNC can be seen as undermining democratic principles, where every individual has the right to contest elections.
  • Freedom of Choice: The boycott may infringe on the freedom of choice for both candidates and voters within the Naga community.

4. G-7 leaders say they will back Ukraine ‘as long as it takes’

Context: The G-7 leaders have reaffirmed their commitment to support Ukraine in its ongoing conflict with Russia, promising continued financial and military aid. This declaration was made during a summit in Fasano, Italy, where a new $50 billion loan for Ukraine was agreed upon. This aid aims to bolster Ukraine’s military efforts and reconstruction initiatives.

Key Details of the G-7 Commitment

  • Loan Agreement: The G-7 leaders agreed on a $50 billion loan to Ukraine, underscoring their support for Ukraine’s sovereignty and territorial integrity.
  • Funding Mechanism: The loan will be backed by revenues from the immobilization of Russian sovereign assets held in the EU and other jurisdictions.
  • Disbursement Channels: Funds will be directed to Ukraine’s military, budget, and reconstruction needs, adhering to respective legal and administrative frameworks.

Context and Background

  • Invasion of Ukraine: The financial support follows Russia’s invasion of Ukraine in February 2022, which has led to ongoing conflict and significant geopolitical tensions.
  • Western Sanctions on Russia: Western powers have frozen Russian central bank assets, using accrued interest to fund Ukraine’s loan.
  • Ukraine’s Struggle: Ukraine continues to fight for its freedom and requires substantial aid for military defense and post-war reconstruction.

Issues

Financial and Legal Challenges

  • Asset Utilization: Legal and administrative hurdles in utilizing immobilized Russian assets for loan repayment.
  • Sustainability: Ensuring long-term financial support without compromising the economic stability of the supporting nations.

Political and Diplomatic Implications

  • Russia’s Reaction: The move could provoke further hostility from Russia and complicate diplomatic efforts for a ceasefire.
  • Global Diplomacy: Balancing support for Ukraine with global diplomatic relations, especially with non-G7 countries.

G. Tidbits

Nothing here for today!!!

H. UPSC Prelims Practice Questions

Q1. Consider the following statements about the National Testing Agency:
  1. It is an autonomous and self-sustained premier testing organization.
  2. It conducts entrance examinations for Higher Education Institutions (HEIs) in India.
  3. It is chaired by an eminent educationist appointed by the Ministry of Human Resource Development.

How many of these statements is/are incorrect?

  1. One only
  2. ⁠Two only 
  3. All three 
  4. ⁠None of the above
CHECK ANSWERS:-

Answer: d

Explanation: All three statements are correct. 

Q2. Consider the following statements about the Kheer Bhawani temple recently 
seen in the news:
  1. Kheer Bhawani temple is located in Tulmulla in central Kashmir’s Ganderbal.
  2. The temple is dedicated to the goddess Ragnya Devi.
  3. It is well known for the Zyeshth Ashtami annual celebrations.

How many of these statements is/are correct?

  1. One only
  2. ⁠Two only 
  3. All three 
  4. ⁠None of the above
CHECK ANSWERS:-

Answer: c

Explanation: All three statements are correct. 

Q3. PN3 Requirement often seen in the news is associated with:
  1. Foreign Direct Investment
  2. ⁠Stock Market Trading
  3. Wastewater Management
  4. ⁠Rainwater Harvesting
CHECK ANSWERS:-

Answer: a

Explanation: During the COVID-19 pandemic, the Union government amended the Foreign Direct Investment (FDI) policy through a Press Note 3 (PN3) Requirement – to check opportunistic acquisitions of stressed Indian companies.

Q4. Consider the following statements about the G7:
  1. It is an informal bloc of industrialized democracies.
  2. Russia was expelled as a member of the grouping in 2014 following its annexation of the Crimea region of Ukraine.

Which of these statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
CHECK ANSWERS:-

Answer: c

Explanation: Both the statements are correct. G7 is an informal bloc of industrialized democracies—France, Germany, Italy, the United Kingdom, Japan, the United States, and Canada.

Q5. The Balfour Declaration often seen in the news can be associated with:
  1. Armenia Azerbaijan Conflict
  2. Israeli-Palestinian Conflict
  3. Russia – Ukraine War
  4. Afghanistan Crisis
CHECK ANSWERS:-

Answer: b

Explanation: The Balfour Declaration was a public statement issued by the British Foreign Secretary, Arthur Balfour expressing British support for the creation of a Jewish state in Palestine.

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*