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  • 29 Jan 2021
  • 30 min read
International Relations

Chinese Incursions in Taiwan

Why in News

The USA has reaffirmed its support for Taiwan following China's warplanes entering Taiwan’s air defence identification zone.

  • These overflights were part of a long-standing pattern of incursions by China aimed at pressuring the present democratically elected government of Taiwan to accept China's demand to recognise Taiwan as a part of Chinese territory.

Key Points

  • Conflict between China and Taiwan (Background):
    • China and Taiwan separated amid civil war in 1949 and China considers Taiwan part of its territory to be taken control of by force if necessary.
    • But Taiwan's leaders say that Taiwan is a sovereign state.
    • After decades of hostile intentions and angry rhetoric, relations between China and Taiwan started improving in the 1980s. China put forward a formula, known as "one country, two systems", under which Taiwan would be given significant autonomy if it accepted Chinese reunification.
    • In Taiwan, the offer was rejected, but the government did relax rules on visits to and investment in China.
    • There were also limited talks between the two sides' unofficial representatives, though Beijing's insistence that Taiwan's Republic of China (ROC) government is illegitimate prevented government-to-government contact.
    • China's implementation of a national security law in Hong Kong in 2020 was seen by many as a yet another sign that Beijing was becoming significantly more assertive in the region.
  • USA vis-a-vis- China over Taiwan:
    • The Chinese government passed an Anti-Secession Law in 2005 that provides conditions under which China might employ non-peaceful means to prevent the permanent separation of Taiwan from mainland China.
    • The USA as part of the Taiwan Relations Act (TRA) 1979, is required to assist Taiwan if coerced or attacked by China.
    • Thus, the recent chinese incursions and USA’s opposition to it are manifestations of this contradicting stand of the USA and China on Taiwan.
  • USA’s Stand:
    • The USA criticised the pattern of ongoing attempts by China to intimidate its neighbours, including Taiwan.
    • It has urged China to cease its military, diplomatic, and economic pressure against Taiwan and instead engage in meaningful dialogue with Taiwan’s democratically elected representatives.
  • China’s Concerns:
    • USA’s Strategic and Defense Support to Taiwan:
      • Taiwan has sought to improve its defenses with the purchase of USA weapons, including upgraded F-16 fighter jets, armed drones, rocket systems and Harpoon missiles.
      • The Taiwanese government has also boosted USA’s support for Taiwan’s indigenous arms industry, including launching a program to build new submarines to counter China’s ever-growing naval capabilities.
    • Presence of the USA forces in Neighboring Waters:
      • A USA aircraft carrier group led by the warship Theodore Roosevelt has entered the South China Sea to ensure freedom of the seas, and build partnerships that foster maritime security.
    • One China Policy Challenged:
      • This means that countries seeking diplomatic relations with the People's Republic of China (PRC, Mainland China) must break official relations with the Republic of China (ROC, Taiwan) and vice versa.
      • The existent diplomatic relationship of the Taiwan and its membership in intergovernmental organizations challenges this policy:
        • The ROC, Taiwan has diplomatic relations with 15 countries and substantive ties with many others such as Australia, Canada, EU nations, Japan and New Zealand.
        • Besides, Taiwan has full membership in 38 intergovernmental organizations and their subsidiary bodies, including the World Trade Organization, Asia-Pacific Economic Cooperation, Asian Development Bank and Central American Bank for Economic Integration.
  • India’s Stand on the Issue:
    • Since 1949, India has accepted the “One China” policy that accepts Taiwan and Tibet as part of China.
    • However, India uses the policy to make a diplomatic point, i.e., if India believes in “One China” policy, China should also believe in a “One India” policy.
    • Even though India has stopped mentioning its adherence to One China policy in joint statements and official documents since 2010, its engagement with Taiwan is still restricted due to the framework of ties with China.

Taiwan

  • Taiwan - the Republic of China (ROC), home to twenty-three million people, is an island off the southern coast of China that has been governed independently from mainland China since 1949.
  • Its neighbours include China (officially the People’s Republic of China, PRC) to the west, Japan to the northeast, and the Philippines to the south.
  • Taiwan is the most populous state that is not a member of the United Nations and the largest economy outside the UN.
  • Taiwan is Asia’s 5th largest economy.
  • It is a global leader in chip manufacture and the second-largest manufacturer of IT hardware, etc.

Source: TH


Agriculture

GI Tag for Pakistani Basmati

Why in News

Recently, Pakistan received the Geographical Indication (GI) tag for its Basmati rice under its Geographical Indications Act 2020.

  • Pakistan is fighting a case in the European Union (EU) against India’s move to get Basmati Rice as its product.

Key Points

  • India-Pakistan on Basmati Rice:
    • The issue of protecting Basmati rice as a product of Pakistan came to the forefront after India submitted an application to the European Union (EU) claiming sole ownership of the commodity in September 2019.
      • India also claimed that the region producing basmati is a part of northern India, below the foothills of the Himalayas forming part of the Indo-Gangetic plain.
      • The Indian claim to the EU was challenged in December 2019 and the main argument by Pakistan was that Basmati rice was a joint product of India and Pakistan.
    • International laws require that before applying for registration of any product in the international market it has to be protected under the geographical indication laws of that country.
      • Pakistan enacted the Geographical Indications (Registration and Protection) Act in March 2020, which gives it the right to oppose Indian application for registration of Basmati rice exclusive rights.
  • Significance of Pakistan’s GI tag for its Basmati:
    • A GI tag would strengthen Pakistan's case in the EU.
      • Pakistan exported 5,00,000-7,00,000 tonnes of Basmati rice annually to different parts of the world out of which 2,00,000 tonnes to 2,50,000 tonnes is being shipped to EU countries.
  • Effect on India:
    • Basmati rice was a joint heritage of India and Pakistan and Pakistan is as entitled to secure its Basmati rice trade as India.
    • However, Pakistan securing the GI tag for its basmati rice would, in no way, affect India’s Basmati exports.
    • Since Basmati rice fetches higher prices in the international markets, India had attempted to block Pakistan’s trade in the EU by declaring that its Basmati was the geographically original one.
  • GI tag for Basmati Rice in India:
    • India is a producer of premium Basmati and it has been grown from time immemorial in the Indo-Gangetic Plains (IGP) area of India and 18 districts of Pakistan’s Punjab.
      • It had been a tough battle for the country to protect Basmati name from the encroachment of various nations which all came out with their own versions of Basmati.
    • Agricultural and Processed Food Products Export Development Authority (APEDA) got GI tag for the region located in IGP below the foothills of the Himalayas, spread across seven states (Himachal Pradesh, Jammu and Kashmir, Punjab, Haryana, Uttarakhand, Western Uttar Pradesh (26 districts) and Delhi) in May 2010.
    • Reasons Given:
      • The origin and reputation of Basmati rice as a ‘long-grain, aromatic rice’ from the IGP is found in tradition, folklore, scientific and culinary literature and political-historical records.
      • Dehraduni Basmati, Amritsar Basmati and Tarawari Basmati are few varieties which have become famous over the period of hundreds of years.

Geographical Indication (GI) Tag

  • About:
    • A Geographical Indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place.
    • In addition, the qualities, characteristics or reputation of the product should be essentially due to the place of origin.
      • Since the qualities depend on the geographical place of production, there is a clear link between the product and its original place of production.
    • It is used for agricultural, natural and manufactured goods.
  • Benefit of GI tag:
    • Once the GI protection is granted, no other producer can misuse the name to market similar products. It also provides comfort to customers about the authenticity of that product.
    • A registered Geographical Indications prohibits a third party to use such GI by any means in the designations or presentations of goods indicating that such goods originate in a geographical area.
  • International Protection for GI:
  • GI Protection in India:
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration & Protection) Act, 1999 which came into force with effect from 2003.
      • The Act provides registration and also protection of GI goods in India.
      • This Act is administered by the Controller General of Patents, Designs, and Trademarks, who is also the Registrar of Geographical Indications.
    • The Geographical Indications Registry for India is located in Chennai.
    • The registration of a geographical indication is valid for a period of 10 years. It can be renewed from time to time for a further period of 10 years each.

Source:DTE


Indian Economy

Gold Schemes in India

Why in News

The government is planning to bring changes in the existing gold deposit and gold metal loan schemes to gradually stop investors from excessive investment in physical gold.

Key Points

  • Background:
    • Despite the government’s emphasis on gold monetisation over the last few years, including issuing gold bonds as part of its borrowing programmes, investment in physical gold and purchases of jewellery continues to outpace investment through financial channels.
  • Government’s Plan:
    • A number of amendments have been finalised in the existing revamped Gold Deposit Scheme, revamped Gold Metal Loan Scheme and India Gold Coin Scheme.
    • The existing scheme will be made far from attractive from investment convenience and taxation aspects.

Gold Schemes

  • Gold Monetisation Scheme (GMS):
    • GMS, which modified the then existing ‘Gold Deposit Scheme’ (GDS) and ‘Gold Metal Loan Scheme (GML), was launched in 2015 to mobilise gold held by households and institutions of the country and facilitate its use for productive purposes, and in the long run, to reduce country’s reliance on the import of gold.
  • Revamped Gold Deposit Scheme (R-GDS):
    • Deposit limit: The minimum deposit at any one time shall be raw gold (bars, coins, jewellery excluding stones and other metals) equivalent to 30 grams of gold. There is no maximum limit for deposit under the scheme.
      • Proposed Changes in the existing scheme: The minimum requirement of 30 grams could be reduced to 1 gram. Interest earnings and capital gains under the scheme will continue to be exempt from capital gains tax, wealth tax and income tax.
    • Time period:
      • The designated banks can accept gold deposits under the Short Term (1-3 years) Bank Deposit (STBD) as well as medium (5-7 years) and long (12-15 years) term government deposit schemes.
    • Implementing agency:
      • All scheduled commercial banks are allowed to implement this scheme and are also free to fix interest rates.
    • Premature Withdrawal:
      • Depositors can also make premature withdrawal of their deposits. It will be subject to a minimum lock-in period and penalty to be determined by individual banks.
    • Associated Issue:
      • Cultural issue: For long, Indians have been closely associated with gold. Getting them to part with their gold, especially when it is in jewellery form, is very difficult.
        • Under the scheme, the depositor has to make clear in the beginning whether he/she wants to redeem it in cash or in gold. Even if it is in gold, the banks will return them in standardised gold bars, that is likely to meet with a lot of reluctance.
      • Returns on gold: Banks pay interests on the deposited gold. These interests, rather than encouraging individuals to part with the gold they already hold, encourages more entities to import large quantities of gold and deposit them with Indian banks as the returns will be high. If that happens, then the entire purpose of the Gold Monetisation Scheme is negated.
  • Revamped Gold Metal Loan Scheme (GML)
    • It is a mechanism under which a jewellery manufacturer borrows gold metal instead of rupees and settles the GML with the sale proceeds obtained.
    • GML can be availed for 180 days in case of domestic jewellery manufacturers and for 270 days in case of exports.
    • Amendments are also being planned in the GML scheme.
    • Issue of Liquidity: According to the Scheme, the banks can lend or sell gold to jewellers or other banks that are part of the Scheme.
      • However, a cash deposit can be given to anybody. But a gold deposit can only go to those looking specifically for gold.
      • Thus, there is a chance of banks finding it difficult to match gold borrowers with gold depositors.
      • That means there could be a situation where banks don’t have enough interest accruing to them to cater to the interest they have to pay gold depositors.
  • Sovereign Gold Bond Scheme:
    • Aim: It seeks to encourage people to buy gold bonds instead of actual gold.
    • Issuer: The Reserve Bank of India (RBI) issues these bonds on behalf of the central government.
    • Features:
      • The gold bonds will be denominated in multiples of gram (s) of gold with a basic unit of one gram while the minimum investment limit is two grams.
      • The maximum subscription is 500 grams per person per fiscal (April-March) and for joint holders, the limit will be applied on the first holder.
      • The gold bonds will be sold only to resident Indian entities including individuals, Hindu undivided families, trusts, universities, and charitable institutions.
      • The bond tenure is eight years with exit option beginning the fifth year onwards. They will also be tradable.
      • These bonds can also be used as collateral for loans.
    • Associated Issue (Discourages rupee bond): The price of gold internationally is linked to the dollar. The new gold bonds, if made attractive enough, could become a substitute to rupee bonds.
      • Indians will start putting their money into a type of dollar bond rather than rupee bonds. This might exert an upward pressure on interest rates.
  • The Gold Coin and Bullion Scheme:
    • The government issues gold coins, which have the Ashok Chakra engraved on them.

Source:IE


Governance

India Justice Report 2020

Why in News

The India Justice Report (2020) prepared by the Tata Trusts in collaboration with the Centre for Social Justice, Common Cause, DAKSH, Vidhi Centre for Legal Policy and the Commonwealth Human Rights Initiative has been released recently.

  • The Report assesses the capacity of various states to deliver justice.

Key Points

  • About the Report:
    • The report analysed expenditure, vacancies, representation of women, human resources, infrastructure, workload, diversity across 18 large and medium-sized states with a population of over 1 crore and 7 small states.
  • Findings:
    • Overall Ranking:
      • The overall ranking is a result of a state’s ranking across the four pillars of justice delivery system - Judiciary, Police, Prisons and Legal aid.
      • Maharashtra was ranked topmost among 18 states for the second time in a row, followed by Tamil Nadu and Telangana. Uttar Pradesh remains last.
      • Amongst the smaller states, Goa remained at the top and Arunachal Pradesh at the bottom.
    • Women Ratio in Police Force:
      • Bihar leads the list of 25 states for employing most women in its police force which is 25.3%.
      • It is the only state to have more than 20% women in the police force. However, women account for only 6.1% in the officer category.
      • Tamil Nadu has the highest percentage of women police officers (24.8%), followed by Mizoram (20.1%).
    • Women Ratio in Judiciary:
      • Overall, only 29% judges in High Courts across the country are women, but no state except Sikkim has over 20% women judges.
      • Four states - Bihar, Uttarakhand, Tripura and Meghalaya have no woman judges in high courts.
    • Social Justice:
      • Karnataka is the only state to meet its quotas for SC, ST and OBC in both officer cadre and constabulary.
      • Chhattisgarh being the only other state that meets the diversity requirements for constabulary.
    • Lack of Finances:
      • In the last 25 years, only 1.5 crore people have received legal aid with the Centre spending Rs. 1.05 per capita in 2019-20.
    • High Proportion of Undertrials:
      • Two-thirds of all prisoners are undertrials awaiting a conviction.
        • A person who is being held in custody awaiting trial for a crime.
    • Causes of Poor Justice Delivery:
      • Legal services institutions remain affected by a lack of infrastructure, uneven human resource distribution, poor utilization of central funds and an inability to effectively harness Lok Adalats to ease the burden on the judiciary.

Source:IE


Indian History

Lala Lajpat Rai

Why in News

Recently, the Prime Minister paid tribute to Lala Lajpat Rai on his Jayanti.

  • Lala Lajpat Rai’s birth anniversary is celebrated on 28th of january every year.

Key Points

  • About:
    • Lala Lajpat Rai was one of the greatest freedom fighters of India.
    • He was also called ‘Punjab Kesari’ and 'Lion of Punjab'.
    • He studied law at the Government College, Lahore.
    • Was influenced by Swami Dayananda Saraswati and joined the Arya Samaj in Lahore.
    • He believed that the ideals in Hinduism combined with nationalism will lead to the establishment of a secular state.
    • Along with Bipin Chandra Pal and Bal Gangadhar Tilak, he formed the Lal-Bal-Pal trio of extremist leaders.
    • He was also involved with the Hindu Mahasabha.
    • He fought against untouchability.
  • Birth:
    • He was born on 28th January, 1865 in a small village named Dhudike in Punjab’s Ferozepur district.
  • Contributions:
    • Political:
      • He joined the Indian National Congress (INC) and participated in many political agitations in Punjab.
      • For his political agitation, he was deported to Burma without trial in 1907 but returned after a few months because of lack of evidence.
      • He was opposed to the partition of Bengal.
      • He founded the Home Rule League of America in 1917 in New York. In the USA, he worked to get moral support for the Indian independence movement from the international community.
      • He was also elected President of the All India Trade Union Congress.
      • He supported the non-cooperation movement of Gandhi at the Nagpur session of the Congress in 1920.
      • He protested against the Rowlatt Act and the Jallianwala Bagh massacre that followed.
      • He was elected deputy leader of the Central Legislative Assembly in 1926.
      • In 1928, he moved a resolution in the assembly refusing cooperation with the Simon Commission since the Commission had no Indian members.
    • Social:
      • He founded Hindu Relief movement in 1897 to provide help to the famine -stricken people and thus preventing them falling into the clutches of the missionaries.
      • He founded the Servants of People Society in 1921.
    • Literary:
      • His important literary works include Young India, England’s Debt to India, Evolution of Japan, India’s Will to Freedom, Message of the Bhagavad Gita, Political Future of India, Problem of National Education in India, The Depressed Glasses, and the travelogue ‘United States of America’.
    • Institutional:
      • He founded several institutions and organizations such as Hisar Bar Council, Hisar Arya Samaj, Hisar Congress, National DAV Managing Committee.
      • He was the editor of the Arya Gazette, which he had founded.
      • He co-founded the Punjab National Bank in 1894.
  • Death:
    • In 1928, he was leading a silent protest against the Simon Commission in Lahore when he was brutally lathi-charged by Superintendent of Police, James Scott. He died of injuries sustained a few weeks later.

Source:PIB


Important Facts For Prelims

Kala Utsav 2020

Why in News

Recently, Kala Utsav 2020 - an annual function to promote arts in education, was organised by the Ministry of Education.

Key Points

  • About Kala Utsav:
    • Ministry Involved: Kala Utsav is an initiative of the Ministry of Education (MoE) to promote arts in education.
    • Aim: Kala Utsav aims at nurturing and showcasing the artistic talent of school students at the secondary stage in the country.
      • District/State/National Level Utsav is structured as an art festival which includes performances and display of exhibits.
    • In Accordance with NCF 2005:
      • In the context of education of Arts (Music, Theatre, Dance, Visual Arts and Crafts), the initiative is guided by the recommendations of the National Curriculum Framework 2005 (NCF-2005).
    • Importance:
      • Introduction of Indigenous Toys and Games segment in Kala Utsav 2020 supported the ‘Vocal for Local’ initiative.
      • It is in sync with the recommendations of National Education Policy 2020 which emphasises the promotion of arts and culture through education.
      • It complements the Samagra Shiksha Scheme by enhancing aesthetics and artistic experiences for secondary-level students, which play a major role in creating awareness of India’s rich cultural heritage and its vibrant diversity in line with ‘Ek Bharat Shreshtha Bharat'.
      • It enhances the students' reasoning, comprehensibility, problem solving, cognitive and decisive abilities, which are helpful in the all-round development of the student.
  • Other Initiatives Taken for Promoting Arts:

Source:PIB


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