Shinzo Abe defers visit to India amid North-East protests

Syllabus subtopic: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora.

Prelims and Mains focus: about Citizenship Amendment Act 2019 and the diplomatic pressure faced by India, About Indo-japan relations

News: Japanese Prime Minister Shinzo Abe’s visit to India for a planned summit with Prime Minister Narendra Modi has been deferred amid violent protests over the citizenship law in Assam and elsewhere in the North-East.

The Japanese government clearly conveyed to New Delhi that it would not be possible for Abe to travel to Guwahati in view of large-scale protests in the northeastern region, news agency PTI reported, citing diplomatic sources.

However, given the importance of Japanese-funded infrastructure projects in the North-East, it was expected to be held in Guwahati.

Resentment among the Indian States

Some state governments have said they will not implement the amended Citizenship law. West Bengal chief minister Mamata Banerjee said the amended law will not be implemented in West Bengal. Besides, Punjab, Kerala, Madhya Pradesh and Chhattisgarh have voiced their disapproval of the law.

What does the Citizenship Amendment Act propose?

The Citizenship (Amendment) Bill was signed into law by President Ramnath Kovind late on Thursday night.

The amended law says that Hindus, Sikhs, Buddhists, Jains, Parsis and Christians who have come to India till 31 December 2014 from Pakistan, Bangladesh and Afghanistan due to religious persecution are eligible for Indian citizenship.

Indo-Japan relations

India and Japan have robust economic and defence ties bolstered by heads of state-level annual summits. Both nations signed deals for defence exchange and technology cooperation as well as for protection of classified military information during Prime Minister Abe’s visit to India in December 2015.

These deals lay down the framework for enhanced cooperation in defence including through joint research, development and production.

Boris Johnson wins a huge majority

Syllabus subtopic: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora.

Prelims and mains focus: Brexit and its consequences for geopolitics in Europe and the world

News: Britain was speeding towards Brexit on Friday after Prime Minister Boris Johnson won a crushing election victory, ending three years of uncertainty since the country decided to leave the bloc.

Background

Exiting the European Union (EU), a goal Mr. Johnson has pursued relentlessly since he put himself forward as the face of the victorious “Leave” campaign in a 2016 referendum, is Britain’s biggest leap into the unknown since the Second World War..

Meets Queen

Later, he went to Buckingham Palace to ask Queen Elizabeth for permission to form a new government — a formal step required under the U.K.’s constitutional monarchy system.

Results pouring in from the 650 parliamentary constituencies showed that Mr. Johnson’s Conservative Party had trounced its main opponent, winning 365 seats to the Labour Party’s 203. The Scottish National Party won 48, while Liberal Democrats got 11 seats.

A vindication for Mr. Johnson and his simple campaign message “Get Brexit Done”, the result represented the biggest House of Commons majority for the Conservatives since Margaret Thatcher’s 1987 triumph.

Way ahead

Mr. Johnson is now free to lead his country swiftly out of the vast trading bloc, but faces the daunting task of negotiating trade deals around the world, not least with the EU itself, and of keeping a divided kingdom in one piece.

About the Brexit issue

The Brexit issue, which has consumed politics and the public debate since 2016, has eroded traditional party loyalties, dividing the nation along new fault lines. The Brexit effect was most starkly illustrated by the crumbling of Labour’s so called Red Wall, a rampart of working class areas across northern and central England where most people had voted “Leave” in 2016.

Frustrated at the country’s failure to quit the EU and at Labour’s equivocal stance on Brexit, large numbers of voters deserted the party and flocked to the Conservatives.

The Irish backstop

The “Irish backstop” is effectively an insurance policy in UK-EU Brexit negotiations. It’s meant to make sure that the Irish border remains open (as it is today) whatever the outcome of the UK and the EU’s negotiations about their future relationship after Brexit.

The “Irish backstop” would kick in at the end of the transition period if the UK and EU had failed to negotiate a future trade deal that kept the Irish border open as it is today.

Under the backstop the whole of the UK would enter a “single customs territory” with the EU. There are many parts to this but essentially there would be no tariffs on trade in goods between the UK and the EU and some (though not all) trade restrictions would be removed.

However, Northern Ireland alone would remain aligned to some extra EU rules to ensure the Irish border remains open as it is today. These separate regulations for Northern Ireland would mean there would be some checks on goods entering Northern Ireland from the rest of the UK.

The Irish backstop has been highly controversial among some MPs, and is one of the main reasons why the withdrawal agreement has so far failed to pass through parliament. The new Prime Minister, Boris Johnson, now claims the backstop is “dead”.

Syllabus subtopic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

Prelims and mains focus: about the ‘special status’ and how is it different from ‘special cateogory status’; benefits associated with them

News: The Ministry of Home Affairs (MHA) is holding consultations with the Union Territories of Jammu and Kashmir (J&K) and Ladakh to grant them “special status” on the lines of Article 371 of the Constitution, a senior government official said.

Background:

Jammu and Kashmir enjoyed a special status as per Article 370 and also Special Category Status. But now that Article 35A has been scrapped and it has become a union territory with legislature, SCS doesn't apply to J&K anymore.

People in Leh and Ladakh were initially very happy and by and large welcomed the announcement of the Union Territory as opposed to the people of Kargil. However, that initial euphoria is now giving way to a lot of apprehension, fear and disenchantment, if they are not able to protect and safeguard their resources or their unique cultural identity.

Where is Article 317 applicable?

The said provision is applicable in States of Maharashtra, Gujarat, Nagaland, Assam, Manipur, Goa, Andhra Pradesh, Sikkim, Arunachal Pradesh and Karnataka to protect their unique cultural identity and economic interest.

In Maharashtra and Gujarat, the provision enables separate ‘boards’ in certain areas for “equitable allocation of funds for developmental work” and “adequate opportunity for employment in service under the control of the State government.”

The proposal is still at a consultation stage. The Centre has sought response from the two UTs.

Meaning and history of the term SCS

SCS is a classification given by Centre to assist in the development of those states that face geographical & socio-economic disadvantages like hilly terrains, strategic international borders, economic & infrastructural backwardness and non-viable state finances.

1. Introduced in 1969.
2. 5th Finance Commission sought to provide certain disadvantaged states with preferential treatment in the form of central assistance and tax breaks.
3. National Development Council grants the status of Special Category States.
4. Initially three states Assam, Nagaland and Jammu & Kashmir.
5. Since then eight more have been included – Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura and Uttarakhand.
6. Direct transfers subsequently abolished in 2013–14.
7. In 2013, Centrally Sponsored Schemes (CSS) were restructured into 66 schemes, including 17 flagship programmes with significant outlays.
8. In 2016, CSS restructured into only 28 schemes.
9. From 2017–18, the distinction between plan and non-plan expenditure removed,
10. Therefore the Gadgil formula is a thing of the past

What is Special Category Status to states and how is it different from Special Status?

Special Category Status (SCS) is a classification given by Centre to assist in the development of those states that face geographical and socio-economic disadvantages like hilly terrains, strategic international borders, economic and infrastructural backwardness, and non-viable state finances.

Historical background

The concept of a special category status was first introduced in 1969 when the fifth Finance Commission sought to provide certain disadvantaged states with preferential treatment in the form of central assistance and tax breaks, establishing special development boards, reservation in local government jobs, educational institutions, etc.

This formula was named after the then Deputy Chairman of the Planning Commission, Dr Gadgil Mukherjee and is related to the transfer of assistance to the states by centre under various schemes.

Initially, three states; Assam, Nagaland and Jammu & Kashmir were granted special status but from 1974-1979, five more states were added under the special category. These include Himachal Pradesh, Manipur, Meghalaya, Sikkim and Tripura.

In 1990, with the addition of Arunachal Pradesh and Mizoram, the states increased to 10. The state of Uttarakhand was given special category status in 2001.

But after the dissolution of the planning commission and the formation of NITI Aayog, the recommendations of the 14th Finance Commission were implemented which meant the discontinuation of the Gadgil formula-based grants.

The 14th Finance Commission effectively removed the concept of special category status after its recommendations were accepted in 2015.

The rationale for special status is that certain states, because of inherent features, have a low resource base and cannot mobilize resources for development.

Who grants special status to states?

The decision to grant special category status lies with the National Development Council, composed of the prime minister, union ministers, chief ministers and members of the planning commission, who guide and review the work of the commission.

Special category status for plan assistance has been granted in the past by the National Development Council (NDC) to some states that are characterized by a number of features necessitating special consideration.

Criteria for special category status:

1. Hilly and difficult terrain
2. Low population density or sizeable share of tribal population
3. Strategic location along borders with neighbouring countries
4. Economic and infrastructural backwardness
5. Non-viable nature of state finances

Can special category status be granted to more states now?

In the present scenario, it is believed that no more states can be given the status of a special category state.

The Constitution of India does not include any provision for the categorization of any state in India as a 'special category state.

However, a wide range of provisions are available to as many as 10 states that have been listed under Articles 371, 371-A to 371-H, and 371-J.

Some of these states are Maharashtra and Gujarat, Nagaland, Assam, Manipur, Andhra Pradesh, Sikkim, Mizoram, Arunachal Pradesh and Telangana and Goa. (Art 371I deals with Goa, but does not include any provision that can be termed 'special'.)

While these set of provisions were incorporated into the Constitution by Parliament through amendments under Article 368, Articles 370 and 371 have been part of the Constitution from the time of its commencement on January 26, 1950.

Why these special provisions?

The intention behind these provisions is to safeguard the interest and aspirations of certain backward regions or to protect cultural and economic interests of the tribal people or to deal with the disturbed law and order in some parts.

Benefits states confer with special category status:

States which are granted special category status enjoy several benefits.

1. The central government bears 90 percent of the state expenditure on all centrally-sponsored schemes and external aid while rest 10 percent is given as loan to state at zero percent rate of interest.

2. Preferential treatment in getting central funds.

3. Concession on excise duty to attract industries to the state.

4. 30 percent of the Centre's gross budget also goes to special category states.

5. These states can avail the benefit of debt-swapping and debt relief schemes.

6. States with special category status are exempted from customs duty, corporate tax, income tax and other taxes to attract investment.

7. Special category states have the facility that if they have unspent money in a financial year; it does not lapse and gets carry forward for the next financial year.

What is the difference between special category status and special status?

1. The constitution provides special status through an Act that has to be passed by 2/3rds majority in both the houses of Parliament whereas the special category status is granted by the National Development Council, which is an administrative body of the government.
2. For example, Jammu and Kashmir enjoyed a special status as per Article 370 and also special category status. But now that Article 35A has been scrapped and it has become a union territory with legislature, special category status doesn't apply to J&K anymore.
3. Special status empowers legislative and political rights while special category status deals only with economic, administrative and financial aspects.

Which states have been demanding special category status

1. Andhra Pradesh
2. Bihar
3. Goa
4. Odisha
5. Rajasthan

Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Prelims and Mains focus: about Accessible India Campaign and its significance, steps taken for its implementation

News: The deadline for the government’s Accessible India campaign that aims at making public spaces friendly for persons with disabilities has been extended due to “slow progress,” the Ministry of Social Justice and Empowerment has informed the Lok Sabha.

Due to slow progress, revised deadlines have been extended to March 2020.

Steps taken and challenges

State­wise details of the facilities for the disabled at railway stations were not maintained, but the Indian Railways was committed to making its stations accessible.

Short­term facilities like standard ramps, non­slippery walkways, signages, disabled­friendly toilets and help desks are included in the plan.

In the long­term, inter-platform transfer and engraving on the edges of the platforms are proposed. Regarding Central government buildings maintained by the Central Public Works Department, 211 CPWD buildings had been made accessible. In all, a total of ?354.45 crore had been released for making 1,058 public buildings accessible around the country, the reply said.

Under the Rights of PwD Act, 2016, all existing and new public buildings have to follow the accessibility standards notified on June 15, 2017. The existing buildings were given five years to comply.

The original deadlines under the Accessible India campaign were July 2016 for conducting an accessibility audit of 25­50 of the most important government buildings in 50 cities and making them completely accessible and March 2018.

Syllabus subtopic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Prelims and Mains focus: about NPPA and its mandate, DPCO order 2013; India’s efforts to regulate essential medicines and check price hike

News: To ensure supply of crucial medicines, India’s drug pricing regulator has allowed an increase in the maximum retail prices of 21 drugs currently under price control by as much as 50 per cent.

This is the first time the National Pharmaceutical Pricing Authority (NPPA) — which is known to slash prices of essential and life-saving medicines — is increasing prices in public interest to prevent patients opting for costlier alternatives in the face of shortage of these drugs.

Why?

The Authority is of the considered view that unviability of these formulations should not lead to a situation, where these drugs become unavailable in the market and the public is forced to switch to costly alternatives.

Where will it apply?

The decision by the NPPA, taken at a meeting on December 9, will apply to formulations like the BCG vaccine for tuberculosis, vitamin C, antibiotics like metronidazole and benzylpenicillin, anti-malarial drug chloroquine and leprosy medication dapsone.

Most of these drugs are used as first line of treatment and are integral to public health programmes.

Present scenario of affordable drugs in India

With India still dependent on China for over 60 per cent of its API (active pharmaceutical ingredient) requirement, higher API costs for price-controlled medicines eat into profits and sometimes make production of these drugs unviable here.

For instance, costs of ingredients to make vitamin C went up as much as 250 per cent, leading to a 25-30 per cent shortage of this drug in India last year.

Suppliers of key ingredients do not want to negotiate the prices they charge companies, because they are not affected by price control. In such an environment, firms would begin to exit the market over time.

About Drugs (Prices Control) Order (DPCO)

The Drugs Prices Control Order, 1995 is an order issued by the Government of India under Sec. 3 of Essential Commodities Act, 1955 to regulate the prices of drugs.

The Order interalia provides the list of price controlled drugs, procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., penalties for contravention of provisions etc.

For the purpose of implementing provisions of DPCO, powers of Govt. have been vested in NPPA. Later, the Drugs (Prices Control) Order (DPCO) 2013 was notified.

Why the DPCO is issued under Essential Commodities (EC) Act ?

Drugs are essential for health of the society. Drugs have been declared as Essential and accordingly put under the Essential Commodities Act.

Are all the drugs marketed in the country under price control ?

No. The National List of Essential Medicines (NLEM) 2011 is adopted as the primary basis for determining essentiality, which constitutes the list of scheduled medicines for the purpose of price control. The DPCO 2013 contains 680 scheduled drug formulations spread across 27 therapeutic groups. However, the prices of other drugs can be regulated, if warranted in public interest.

About NPPA and its mandate

National Pharmaceutical Pricing Authority (NPPA), was established on 29th August 1997 as an independent body of experts as per the decision taken by the Cabinet committee in September 1994 while reviewing Drug Policy.

The Authority, interalia, has been entrusted with the task of fixation/revision of prices of pharmaceutical products (bulk drugs and formulations), enforcement of provisions of the Drugs (Prices Control) Order and monitoring of the prices of controlled and decontrolled drugs in the country.

Why are the prices of medicines rising ?

The reasons for rise in the prices of medicines are :

1. rise in the price of bulk drugs;
2. rise in the cost of excipients used in the production of medicines like Lactose, Starch, sugar, glycerine, solvent, gelatine capsules etc.;
3. rise in the cost of transport, freight rates;
4. rise in the cost of utilities like fuel, power, diesel, etc.;
5. for imported medicines, rise in the c.i.f. price and depreciation of the Rupee;
6. changes in taxes and duties.