Newsletter 17 March

National

India, Finland believe in transparent, humanitarian, democratic global order, says PM Modi

At a virtual summit with Finland PM Sanna Marin Tue, Modi said more than 58 million made in India coronavirus vaccine doses had reached about 70 countries in the recent weeks.

The Finnish prime minister said there was scope for further intensification of bilateral ties in areas of education, technology and trade.

The Ministry of External Affairs on Mon said the virtual summit will provide a blueprint for the future expansion and diversification of the India-Finland partnership.

Finland is 12^th among the countries investing in India (Ministry of Commerce & Industry, Govt of India 2019)

Trade in Goods in EUR million
Financial Year	2017		2018	2019
Finland to India	538.23		544.23	509.36
India to Finland	341.58		354.85	355.27
Total Trade in Goods	879.81		899.08	864.63
Trade in Services in EUR million
Financial Year		2017	2018	2019
Imports (Finland to India)		773	529	422
Exports (India to Finland)		607	661	826
Total Services Trade		1,380	1,190	1,248

US Congress report warns of repercussions over farmer protests in India

A new report by the US Congress’s non-partisan and autonomous research service (CRS) has taken a critical view of India’s handling of the farmer protests, warning that New Delhi’s position on the ongoing stir could “present a challenge” for the Biden administration as it shapes its Indo-Pacific policy with India as a key partner, which could potentially fuel the disquiet already voiced by US lawmakers.

What is CRS? The Congressional Research Service (CRS) serves as shared staff to congressional committees and Members of Congress.

Mission: To serve Congress with the highest quality of research, analysis, information and confidential consultation to support the exercise of its legislative, representational and oversight duties in its role as a coequal branch of government.

What It Says: “By some accounts, the crackdown on dissent has been excessive and reflective of a broader trend towards authoritarianism in India,” says the CRS report, drawing mostly upon news reports, commentaries and analyses in Indian and foreign media publications.

“Perceived backsliding in India’s democracy and human rights record may present a challenge for the Biden administration in formulating its policies towards India and the Indo-Pacific,” the report adds.

Interestingly, the report was published before the historic first-ever summit-level meeting of the Quad, called by President Joe Biden with the stated goals of making a “clear statement of the importance of the Indo-Pacific region” and to put his “stamp” on the Quad process.

As of now, Biden’s Indo-Pacific policy is on course and was rolled out seemingly unaffected by the Narendra Modi Govt’s handling of the farmer protests.

In its first response to the protests, America, Biden’s state department said it encouraged a resolution to the agitation through dialogue, but it also showed support for underlying reforms that triggered the protests.

“In general, the United States welcomes steps that would improve the efficiency of India’s markets and attract greater private sector investment,” the state department said on Feb 3^rd.

Not all banks are going to be privatized, said Sitharaman amid nationwide bank strike

Union Finance Minister Nirmala Sitharaman on Tue said in a press conference, after attending a meeting of the Cabinet Committee of Economic Affairs that not all banks are going to be privatized, adding that the interests of workers of banks, which are likely to be privatized, would also be protected.

We have announced a Public Enterprise Policy where we have identified 4 areas where public sector presence will be there, including the financial sector is there too.
Interests of workers of banks which are likely to be privatized will absolutely be protected — whether their salaries or scale or pension, all will be taken care of.

Background:

This information comes around a time when United Forum of Bank Union, which is an umbrella body of 9 bank unions, with over 10 lakh bank employees and officers had called a 2-day nationwide strike on March 15 and 16 against ‘retrograde banking reforms’.
Besides, all the unions in 4 general insurance companies will be on strike on Wed.
The strike came after Minister’s budget announcement where she announced the privatization of 2 public sector banks (apart from IDBI Bank) as part of the government’s disinvestment drive to generate Rs 1.75 lakh crore.

Meanwhile, Union Railways Min Piyush Goyal also stated in House on Tue that Indian Railway is property of countrymen and will never be privatized.

Why Opposition of Privatization:

In India, its general perception that no one can expel you from the job even if you don’t perform.

Secondly, perks and privileges in Public sectors are better than the Private sectors, which become more significant due to high rate of unemployment.

Due to higher unemployment, there is some extent of exploitation in private sector.

Parliamentary panel asks Govt to assess the need for a new law giving more power to CBI

The parliamentary committee on Tue sent a recommendation to Govt, after CBI apprised the panel that its investigations are impeded by the withdrawal of general consent by states, mainly those ruled by opposition parties.

the Govt to assess the need for amending existing laws or bring out a new legislation to clearly define the mandate of the CBI and vest more power in it.

Need: The main concerns are the absence of consent of the concerned states, especially, in the cases of bank fraud/ economic offenses and corruption involving central Govt employees, (with allegations of misappropriation amount), the involvement of officials of central Govt or central PSUs in the commission of criminal misconduct, the panel said in its report tabled in Parliament on Tue.

The Committee, therefore, recommended the Govt to assess if there is a need to amend the existing laws or bring out a new law altogether in order to clearly define the mandate of CBI and vest more powers in it, it said.

Background: 8 states; Mizoram, West Bengal, Chhattisgarh, Rajasthan, Maharashtra, Kerala, Jharkhand and Punjab — have withdrawn general consent to the CBI to exercise its powers under the Delhi Special Police Establishment (DSPE) Act, 1946.

The CBI proposes to set up the CTV, a state-of-the-art technology center, and build in-house central capacity for supporting specialized crime investigations dealing with digital forensic analysis, forensic accounting and fraud analytics, it said.

Despite of technicalities, states have blamed regularly the center of misusing of central agencies for political gains, which may oppose the move citing as an ‘attack on federal structure’.

PK Sinha, Principal Advisor to PM Modi, resigns citing ‘personal reasons’

His office confirmed that Sinha had submitted his resignation, but there were no immediate details behind the reason for his exit.
A 1977-batch Uttar Pradesh cadre officer, Sinha is the only IAS officer to get 3 extensions as cabinet secretary, and was appointed principal advisor in the PMO in Sept 2019.
Subsequently, the new position of Principal Advisor to the PM was especially created to accommodate Sinha in the PMO.
He oversaw policy issues and matters relating to all ministries/ departments/ agencies/bodies, except those specifically allocated to Principal Secretary P.K. Mishra and National Security Advisor Ajit Doval.

What Next: There is a possibility that Sinha could be considered by the Modi Govt for a constitutional post, such as Lt governor of Delhi or Puducherry, The Print reported.

Parliamentary panel asks govt to assess need for new law giving more power to CBI

The recommendation came after CBI apprised the panel that its investigations are impeded by the withdrawal of general consent by states, mainly those ruled by opposition parties.

As India, Pak Indus Commissioners Meet Next Week

Indus Commissioners of India PK Saxena and Pakistan commissioner, Syed Muhammad Meher Ali Shah will lead the meet in New Delhi later this month on Mar 23-24, first time since abrogation of Article 370 in Jammu and Kashmir.

Background: These annual ‘technical talks’ between the two commissioners and delegations have been taking place since the Indus Water Treaty (IWT) was signed in 1960 during Tenure of then PM, Nehru, which has survived 3 wars and has been adhered to by all 14 Indian PM.

The treaty gives the waters of eastern rivers–the Ravi, Beas, and Sutlej–to India and that of western rivers– Indus, Jhelum, and Chenab–to Pakistan.

Commentators on India-Pakistan relations see this as a step forward after the announcement last month by DGMO’s on adhering to the 2003 ceasefire agreement between the two countries, which seems less practical.

India has clarified and repeated again ‘terror and talks cannot go together’.

Meanwhile, Pakistani PM Imran Khan said want to resolve issues with India, including a resolution on Kashmir, adding that in the backdrop of 5^th Aug 2019 development, “India has to take the first step“.

Indian Experts say “if violence levels come down, infiltration level falls, ceasefire violations come down and some visible and potent action is taken against terrorists and existing terror infrastructure in Pakistan, only then there can be a movement forward in bilateral relations”.

IAF's MiG-21 Bison aircraft meets with accident during training mission, pilot killed

MiG21 Bison aircraft of IAF met with a fatal accident this morning while taking off in Gwalior Air Force Station for a combat training mission at an airbase in Central India.

Group Captain A Gupta is killed in the accident.

In Past: MiG21 fighter jet of the IAF crashed near Suratgarh in Rajasthan during a training sortie due to a technical malfunction. The pilot managed to eject safely.

The Indian Air Force has lost 27 aircraft, including 15 fighter jets and helicopters, in crashes since 2016, Minister of State for Defense, Shripad Naik had said in Parliament in 2019.
In the 2016-17 fiscal, 6 IAF fighter jets, 2 helicopters, 1 transport aircraft and one trainer crashed.
In 2017-18, the air force lost 2 fighter jets and one trainer aircraft in crashes.
The number rose sharply in 2018-19 with the IAF losing 7 fighter jets, two helicopters and two trainers.

'Saddam, Gaddafi used to win elections too', says Rahul Gandhi

Rahul Gandhi further said, “Bharatiya Janata Party MPs in Parliament tell me that they cannot have an open discussion. They say they are told what to say.”

What he said “Saddam Hussein and Gaddafi used to have elections. They used to win them. It wasn’t like they weren’t voting but there was no institutional framework to protect that vote,” Rahul Gandhi said in response to a question of Prof Ashutosh Varshney in an online interaction with Brown University.

I feel giving a comment on Rahul Gandhi’s opinion is worthless. He always makes an outlandish statement. I do not know, which planet he lives in? Comparing the country’s democracy to that of Gaddafi’s is an insult to India and to the 80 crore people who vote” replied Union Minister P Javadekar.

Background: A reports by Varieties of Democracy (V-Dem), a Sweden-based institute which downgraded India to an “electoral autocracy,” citing a decline in democratic freedoms and Freedom House analysis which shifted India’s status from a ‘free’ country to ‘partly-free.‘

The Indian Minister of external Affairs, Dr S Jaisahnker, has reacted on Sun strongly in a TV show and had disproved the report by Freedom House and called it “misleading, incorrect and misplaced.”

Covid-19: PM Narendra Modi holds meeting with chief ministers

PM Modi on Wed held a virtual meet with all chief ministers to discuss the prevailing Covid-19 situation and the vaccination drive in the country.

The meeting coincides with India recording this year’s highest single-day tally of fresh Covid-19 cases.

Chief ministers of Bengal and Chhattisgarh are not attending the interaction with the PM.

India allowed 45 year plus people could be vaccinated, without comorbid condition. Previously it was only 60+.

International

China is Acting Aggressively And Repressively In Asia, Said US Secretary of State

United States Secretary of State Antony Blinken is currently visiting Japan and South Korea on his first trip abroad since joining US President Joe Biden’s administration along with Defense Secretary Lloyd Austin to stir support among Washington’s allies in the region.

What He Said:

China is acting aggressively and repressively and cited Beijing’s territorial expansions in the East and South China seas (didn’t mention Laddakh standoff) where there are already ongoing disputes with Japan as well as other Asian countries, while speaking to a roundtable of Japanese journalists in Tokyo on Wed,
China was “raising tensions not diminishing them” in the region by its maritime actions and posturing over Taiwan.
Earlier, on Mar 16, Blinken warned Beijing against using “coercion and aggression”.
Beijing is “acting both more repressively at home and more aggressively abroad, including in the East China Sea as well the South China sea and also with regard to Taiwan”.

Senkakus (China call as Diaoyu) in China that depict the islets in the East China Sea controlled by Japan but are claimed by China.

Describing his Tue talks with Japanese officials, Blinken also said, “Japan has real interest in what happens with regard to Taiwan and Taiwan’s straits and we spent some time comparing notes on that.”

‘Acknowledged China’s behavior’

In a joint statement issued with their Japanese counterparts, Blinken and Austin, read as “The Ministers [US and Japan] committed to opposing coercion and destabilizing behavior toward others in the region, which undermines the rules-based international system. They reaffirmed their support for unimpeded lawful commerce and respect for international law, including freedom of navigation & overflight and other lawful uses of the sea.”

US Secretary of State’s remarks against China came just before his upcoming meetings in Alaska on Thu.

Chinese Response: Chinese Foreign Ministry immediately responded “It is not acceptable for the US side to pressure China before the China-US high-level strategic dialogue is held on Thu. China requires the US side to abide by the basic norms governing international relations and refrain from doing things that will harm China’s core interests.”