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The World Bank has estimated that India will grow 6.5% in the current fiscal year (FY22-23), after having grown at 8.7% in the fiscal year ended March 31.
The estimate for the current year was revised downwards by one percentage point since June due to persistent pressures. The Indian economy is expected to speed up to 7.0% in the next fiscal year, before settling back down to 6.1% in FY24-25.
The numbers were released as part of the World Bank’s twice yearly South Asia Economic Focus, titled, ‘Coping with Shocks: Migration and the Road to Resilience’, ahead of the World Bank IMF annual meetings in Washington DC.
With Sri Lanka’s economic crisis, the devastating floods in Pakistan, and recovery from the pandemic impacted by the war in Ukraine, recovery in the region will be uneven, with the economies that are more services-led (India, Nepal, and Maldives) expected to “maintain a reasonable recovery trend despite headwinds”. Afghanistan, Sri Lanka and Pakistan are more at risk and will see poverty increase in 2022.
The slowing in India’s growth during the current fiscal year, relative to the previous one, was because most of the COVID recovery happened last year, the report said. The impact of the Russia-Ukraine war, global monetary tightening, high commodity prices and interest rates impacting domestic demand (especially private consumption in FY2023-24), contributing to this slowing.
Manufacturing and services have been expanding in India since January, and growing at a rate faster than the rest of the world. With a relaxing of COVID restrictions, economic activity had picked up, as had demand in contact-intensive sectors.
Output had grown at an estimated 13.5% (year on year) in the April –June period this year, a contraction however, relative to the preceding quarter.
Services and construction had expanded the fastest on the production side, the report said, and private demand had grown year on year, but this was largely due to a low base effect from the second quarter of 2021 when the economy was reeling under the delta wave of Covid.
Although India growth estimates are above the South Asian average, there is weakness in employment and supply chains, the report says, with supply chain delays having improved only marginally since June this year.
Annie Ernaux wins Literature Nobel (Page no. 1)
(Miscellaneous)
French author Annie Ernaux, known for her deceptively simple novels drawing on personal experience of class and gender, was awarded the Nobel Prize in Literature.
Ms. Ernaux, 82, was honoured “for the courage and clinical acuity with which she uncovers the roots, estrangements and collective restraints of personal memory”, the jury said.
Interviewed on Swedish television immediately after the announcement, Ms. Ernaux called it a “very great honour” and “a great responsibility”.
Her more than 20 books, many of which have been school texts in France for decades, offer one of the most subtle, insightful windows into the social life of modern France.
Personal experiences are the source for all of Ms. Ernaux’s work and she is the pioneer of France’s “autofiction” genre, which gives narrative form to real-life experience.
UN Council rejects debate on Xinjiang (Page no. 1)
(GS Paper 2, International Relations)
The U.N. Human Rights Council voted against holding a debate on alleged abuses in China's Xinjiang region in a major setback for Western nations.
The United States and its allies last month presented the first-ever draft decision to the U.N.'s top rights body targeting China, seeking a bare minimum of holding a discussion on Xinjiang.
The move came after former U.N. rights chief Michelle Bachelet released her long-delayed Xinjiang report last month, citing possible crimes against humanity against Uyghurs and other Muslim minorities in the far-western region.
But following intense lobbying by Beijing, countries on the 47-member council in Geneva voted 19-17 against holding a debate, with 11 countries abstaining.
The nations voting against having a discussion were Bolivia, Cameroon, China, Cuba, Eritrea, Gabon, Indonesia, Ivory Coast, Kazakhstan, Mauritania, Namibia, Nepal, Pakistan, Qatar, Senegal, Sudan, the United Arab Emirates, Uzbekistan and Venezuela.
Those abstaining were Argentina, Armenia, Benin, Brazil, Gambia, India, Libya, Malawi, Malaysia, Mexico and Ukraine.
Western allies had been scrambling for votes in the run-up to Thursday's moment of drama at the U.N. Palais des Nations.
The draft decision was co-sponsored by Britain, Canada, Sweden, Denmark, Finland, Iceland, Norway, Australia and Lithuania.
One Western diplomat stressed that regardless of the outcome, "the number one objective has been fulfilled" in putting the spotlight on Xinjiang.
Bachelet's report, which was published on August 31 minutes before her term ended, highlighted "credible" allegations of widespread torture, arbitrary detention and violations of religious and reproductive rights.
It brought U.N. endorsement to long-running allegations by campaigners and others, who accuse Beijing of detaining more than one million Uyghurs and other Muslims and forcibly sterilising women.
Beijing vehemently rejected the charges and accused the U.N. of becoming a "thug and accomplice of the U.S. and the West".It insists it is running vocational training centres in the region to counter extremism.
Metro plus
Look up (Page no. 5)
(GS Paper 3, Science and Technology)
For tourists visiting Ladakh, the itinerary is most likely to include the Pangong Lake in the State’s capital Leh, and for the more adventurous lot, an expedition to the Khardung La pass.
What many don’t know is that the region’s arid landscape, sparse population and therefore minimal artificial light also makes it a destination for stargazing.
And soon, India will have its first Dark Sky Reserve in Hanle, located about 250 kilometres from Leh. The initiative mooted by the Department of Science and Technology, Ladakh Autonomous Hill Development Council and the Indian Institute of Astrophysics, Bengaluru, is expected to give astro tourism in India a boost.
Globally, designated dark sky regions developed by tourism boards of different countries, in collaboration with astronomers and local communities, are equipped with facilities to aid astro tourism.
Since stargazing requires driving to remote locations at night, tourists look for accommodation facilities and this, in turn, can spell revenue for local tourism.
Some of the visitors to Leh might be aware of observatories and homestays that facilitate stargazing experiences. Astro tourism is courted by a niche section of tourists, propelled by astronomy clubs in different cities.
A few groups venture into remote locations in Ladakh, Spiti Valley in Himachal Pradesh, and the deserts of Gujarat and Rajasthan to gaze at the clear night skies and spot the stars, nebulae, the Milky Way and other far off galaxies, guided by astronomers.
A designated dark sky region has the potential to bring in domestic and international tourists. The International Dark Sky Association (IDA), in the USA, has so far certified 200 dark sky destinations as part of its International Dark Sky Places (IDSP) program. Following a rigorous application procedure, places are certified as International Dark Sky Sanctuaries, Reserves, Communities or Parks.
Ashley Wilson, IDA’s director of conservation and lead for IDSP, says on an average, IDA certifies around 20 nominations a year. 2021 was an exception with the certification of 37 new places.
Editorial
Domestic ideologies in external settings (Page no. 10)
(GS Paper 2, International Relations)
National statements made by the world’s political leaders during the general debate at every fresh session of the United Nations General Assembly (UNGA) are directed primarily to the international community but take into account domestic political and social constituencies.
Naturally, the latter consideration should not outweigh or undercut the primary objective and direction of any statement.
This time — it was the 77th UNGA session — the Indian statement was delivered by External Affairs Minister S. Jaishankar on September 24.
Mr. Jaishankar deserves to be applauded for the professionalism and precision with which he covered India’s positions on international issues. However, his articulation of some areas of the Modi government’s domestic agenda raises several deeply troubling questions.
Praising the “determination, innovation and enterprise of millions of ordinary Indians”, Mr. Jaishankarasserted that “They are rejuvenating a society pillaged by centuries of foreign attacks and colonialism”.
Clearly, his formulation distinguished between “centuries of foreign attacks” and “colonialism”. Many in the Assembly chamber, who are unaware of the fierce ideological contestations under way in contemporary India, may have been left wondering at the distinction Mr. Jaishankar was drawing between the two.
However, those who follow the ideological divisions in present-day India would have caught on to the distinction he was making.
There is little doubt that Mr. Jaishankar’s words “centuries of foreign invasions” could not be a reference to the Kushan and Hun invasions of India in the remote past.
So, this formulation were code words for the invasions which began with the Arab attack in Sindh in the eighth century, but more specifically to the incursions into India beginning with those of Mahmud of Ghazni and later of Mohammad Ghori. The latter’s invasion led to the beginning of the establishment of centuries of Muslim rule in India.
As far as this writer can recall there has never been a disparaging reference made to pre-colonial India in an Indian statement during the general debate, or indeed in any UN forum.
The connotation of the word “pillage” is obvious in this context. Therefore, this is perhaps the first time that the basic interpretation of Indian history of the current ruling dispensation has been projected in the UNGA, although in coded language.
Strengthening the CSR framework is a profitable idea (Page no. 10)
(GS Paper 2, Polity and Governance)
Ever since the establishment of the Corporate Social Responsibility (CSR) regime in India under Section 135 of the Companies Act 2013, CSR spending in India has risen from ₹10,065 crore in 2014-15 to ₹24,865 crore in 2020-21.
But there is no data to verify whether this increase is commensurate with the increase in profits of Indian and foreign (having a registered arm in India) companies.
Besides, there were 2,926 companies in 2020-21 with zero spend on CSR while companies spending less than the prescribed limit of 2% rose from 3,078 in 2015-16 to 3,290 in 2020-21.
There was also a decline in the number of companies participating in CSR — 25,103 in FY2019 to 17,007 in FY2021.
If a company spends an amount in excess of the minimum 2%, as stipulated, the excess amount is liable to be set off against spending in the succeeding three financial years.
The latter proviso in the Act weakens the former provision since the requirement of 2% is only a minimum requirement. Ideally, companies should be encouraged to spend more than this.
Besides, many private companies have registered their own foundations/trusts to which they transfer the statutory CSR budgets for utilisation. It is unclear if this is allowed under the Companies Act/CSR rules.
The first proviso to Section 135(5) of the Act is that the company should give preference to local areas/areas around it where it operates. This is logical.
However, a report by Ashoka University’s Centre for Social Impact and Philanthropy says that 54% of CSR companies are concentrated in Maharashtra, Tamil Nadu, Karnataka, and Gujarat (receiving the largest CSR spends) while populous Uttar Pradesh and Madhya Pradesh receive little.
A high-level committee observed in 2018 that the emphasis on ‘local area’ in the Act is only directionary and that a balance has to be maintained.
Unfortunately, this ambiguity has left much to the discretion of the boards of these companies in the absence of clear percentages for local spends vis-à-vis other area spends.
Item (iv) of Schedule VII of the Act deals with broader environmental issues to create a countervailing effect. However, an analysis of CSR spending (2014-18) reveals that while most CSR spending is in education (37%) and health and sanitation (29%), only 9% was spent on the environment even as extractive industries such as mining function in an environmentally detrimental manner in several States.
Opinion
Is India in a bind over its relations with Russia? (Page no. 11)
(GS Paper 2, International Relations)
On October 1, when India abstained from voting at the United Nations Security Council on a draft resolution against Russia for conducting referendums and annexing four regions of Ukraine, it was a reminder of New Delhi’s precarious tightrope walk on ties with Moscow.
In the backdrop of the war in Ukraine and in the face of Western sanctions against Russia, India has continued to carry on oil and defence trade with Russia, even as it remains committed to deepening its relations with the West, including the U.S.
In a discussion moderated by KallolBhattacharjee, AnuradhaChenoy and Ashok Kantha discuss India’s choices and actions in a changing geopolitical landscape, especially with regard to China. Edited excerpts:
It’s not that the Ukraine war has suddenly brought them together. The proximity has been going on since the end of the Cold War and it has gradually reached a peak now.
It is linked to a combination of factors, such as Russia’s export of defence equipment, of energy, the two countries’ understanding of a multi-polar world, etc. — and also, from the rise of American paranoia about, and phobia towards, China. So, this closeness is not new, but it has increased. I think it is pretty irreversible.
I witnessed linkages between China and Russia being upgraded following Russia’s annexation of Crimea in 2014, when Russians came under great pressure from the West.
I was India’s Ambassador to China then, and saw first-hand how Russia’s attitude in working with China in certain sensitive sectors changed — for instance, in the supply of sophisticated defence systems such as S-400 or Sukhoi Su-35 aircraft, or in accommodating the Belt and Road Initiative, or in accepting a greater role for China in Central Asia. All these developments took place at least partly because Russia needed China more then.
This trend has continued. The joint statement of February 4, 2022 between Chinese President Xi Jinping and Russian President Vladimir Putin predated Russia’s invasion of Ukraine.
It talked about a partnership “without limits”. There is no doubt that after Russia’s “special military operation” against Ukraine, strategic collaboration between Russia and China has increased.
If Russia is more dependent on China today, that is because it has been subjected to intense sanctions and other measures by the West.
Explainer
Is it time for the gig economy? (Page no. 12)
(GS Paper 3, Economy)
Moonlighting — or employees working for remuneration with entities other than their employers — has been a hot topic in recent months.
During the pandemic, those with desk jobs had more time on their hands and thus it was easier to take on a few projects outside of work.
In July, Kotak Securities said in a study that at least 60% of 400 employees surveyed said they themselves had, or knew someone who had engaged in moonlighting.
In August, Wipro chairmanRishadPremji tweeted: “There is a lot of chatter about people moonlighting in the tech industry. This is cheating — plain and simple.”
The company sacked 300 employees following the discovery that they were working for rival firms on the side, leading to conflict of interest. Infosys has warned staff against moonlighting, saying it could lead to termination.
Another software firm DXC Technologies said that moonlighting by employees was a challenge for employers but that wouldn’t affect its WFH (work from home) policy that has worked well for both the firm and its staff.
Swiggy announced a ‘moonlighting policy’ that allows employees “to pursue their passion for economic interests alongside their full-time employment.”
Moonlighting is not defined in any of the statutes in India, says S. Ravindran, Senior Advocate who specialises in labour laws.
“To my knowledge so far, no Constitutional Court has rendered a decision on the subject,” he says. However, there are enactments that deal with double employment.
Section 60 of the Factories Act deals with restriction on double employment stating that “No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed”. However, this enactment is applicable only to employees working in factories, Mr. Ravindran points out.
There are State enactments which deal with employment of persons working in offices, banks, shops, etc. In Tamil Nadu, it is termed as “The Tamil Nadu Shops & Establishments Act, 1947”. However, there is no provision wherein dealing with dual employment.
However, moonlighting is subject to law of the land. Mr. Ravindran refers to the Supreme Court’s observation in the case of Glaxo Laboratories (I) Limited vs Labour Court, Meerut and others.
The apex court held that “The employer has hardly any extra territorial jurisdiction. He is not the custodian of general law and order situation nor the Guru or mentor of his workmen for their well-regulated cultural advancement.
The Indian Made LCH ‘Prachand’ and its significance (Page no. 12)
(GS Paper 3, Defence)
The indigenously developed Light Combat Helicopter (LCH) ‘Prachand’, meaning fierce was formally inducted into the Indian Air Force at the Jodhpur airbase .
Designed, developed and extensively test-flown for over a decade by Hindustan Aeronautics Ltd (HAL), the multi-role attack helicopter has been customised as per the requirements of the Indian armed forces to operate both in desert terrains and high-altitude sectors.
The LCH is the only attack helicopter in the world that can land and take off at an altitude of 5,000 metres (16,400 ft), which makes it ideal to operate in the high altitude areas of the Siachen glacier.
It is also capable of firing a range of air-to-ground and air-to-air missiles and can destroy air defence operations of the enemy.
Defence Minister Rajnath Singh, who presided over the formal event, termed the induction of the LCH into the Air Force as an “important milestone” reflecting India’s capability in defence production.
The LCH meets the requirements of modern warfare and necessary quality parameters under varied conditions of operations. This versatile helicopter perfectly meets the needs of our armed forces in various terrains and as such LCH is an ideal platform for both our Army and Air Force.
The LCH project can be traced to the 1999 Kargil war when the armed forces felt the need for a dedicated platform capable of operating at high altitudes and delivering precision strikes as the existing attack choppers couldn’t effectively hit targets. This laid the foundation for the research and development of an India-made attack helicopter.
In October 2006, the government sanctioned the design and development of the LCH. The Indian Army joined the programme in December 2013.
The HAL built four LCH prototypes — technology demonstrators or TDs — and flight-tested them with over 1,600 total flights logging 1,239 flight hours. The helicopter prototypes were tested for around a decade under difficult conditions including sea trials in Chennai, extreme cold weather in Leh, desert conditions in Jodhpur and high altitudes in Siachen.
The ground run was first carried out in February 2010 and the first prototype ‘TD-1’ took its maiden flight on March 29, 2010, as the crew carried out low-speed, low-altitude checks on the systems.
News
Can read, talk’:Vyommitra’s skills get a lift¬off with digital grey matter (Page no. 16)
(GS Paper 3, Science and Technology)
‘Vyommitra’, the humanoid designed and developed by the Indian Space Research Organisation (ISRO) to fly aboard unmanned test missions ahead of the Gaganyaan human space-flight mission, is undergoing pre-flight ground tests at the ISRO Inertial Systems Unit (IISU) here.
Over the past few months, IISU has successfully integrated it with a computer ‘brain’ which enables it to ‘read’ control panels aboard the unmanned test flights and communicate with the ISRO ground stations.
ISRO and IISU were in the news when they unveiled Vyommitra — the ‘female’ robot astronaut — in 2020. Vyommitra is a half-humanoid lacking lower limbs. IISU was responsible for the design, development, and integration of the robot, while sister ISRO centre Vikram Sarabhai Space Centre (VSSC) at Thumba here developed its fingers.
The AI-enabled robot is designed to fly aboard a rocket, withstanding vibrations and shock during the flight, the IISU director said. It has been designed to resemble a human with facial expressions and speech and sight capabilities.
It has a certain level of intelligence. What we intend is that it should operate and read the display panels and communicate back to us using its own voice. Vyommitra will fly aboard the first unmanned test flight ahead of the crewed Gaganyaan flight expected in 2024.
The IISU, which designs and develops navigational systems for ISRO launch vehicles, had special teams working on the humanoid over the past several months.
In the meantime, Vyommitra is also set to get a digital twin. The ‘twin’ will undergo computer simulations where the control systems are tested for microgravity conditions. The twin will be developed in collaboration with academic institutions like the IITs.
In September this year, the Minister of State (Independent Charge) for Science and Technology, Jitendra Singh, had indicated that the first unmanned test-flight of the Gaganyaan mission would take place later this year. The Gaganyaanprogramme would demonstrate human spaceflight by sending a crew of three astronauts to the 400-km Low Earth Orbit (LEO) and bringing them back safely.
‘Vyommitra’, the humanoid designed and developed by the ISRO to fly aboard unmanned test missions ahead of the Gaganyaan human space-flight mission, is undergoing pre-flight ground tests.
IISU has successfully integrated it with a computer ‘brain ‘which enables it to ‘read’ control panels aboard the unmanned test flights and communicate with the ISRO ground stations.
The AI-enabled robot, which can withstand vibrations and shock during the flight, has been designed to resemble a human with facial expressions and speech and sight capabilities.
Business
Govt. releasesRs.7,183¬crore deficit grant to 14 States (Page no. 18)
(GS Paper 2, Polity and Governance)
The Finance Ministry released the monthly instalment of revenue deficit grant of ₹7,183 crore to 14 States.
With the release of seventh instalment for the month of October, 2022, the total amount of Revenue Deficit Grants released to the States in current fiscal has gone up to ₹50,282.92 crore.
The Post Devolution Revenue Deficit Grant is released based on the recommendation of the 15th Finance Commission to 14 States — Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
"The Department of Expenditure, Ministry of Finance has on Thursday released the 7th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of ₹7,183.42 crore to 14 States.
The eligibility of States to receive this grant and the quantum of grant for the period from 2020-21 to 2025-26 was decided by the 15th Finance Commission based on the gap between assessment of revenue and expenditure of the state after taking into account the assessed devolution during this period.