Interstate Migrant Workmen Act 1979

Part of: GS-II- Labour Act (PT-MAINS-PERSONALITY TEST)

The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 is an Act of the Parliament of India enacted to regulate the condition of service of inter-state labourers in Indian labour law. The Act's purpose is to protect workers whose services are requisitioned outside their native states in India. Whenever an employer faces shortage of skills among the locally available workers, the act creates provision to employ better skilled workers available outside the state.

Background

The employment system of interstate migrant labour was an exploitative system prevalent more or less in all over India. It was rampantly institutionalized in Orissa and in some other states. In Orissa, the migrant labour (called dadan labour locally) through contractors or agents (called Sardars / Khatedars) are sent for work outside the state in large construction projects. This system lends itself to various cases of abuse. Sardar promised at the time of recruitment that wages would be calculated on piece rate basis would not be settled every month as promised. Once the worker came under clutches of the contractor he took him to a far off place on payment of railways fare only. No working hours were fixed for interstate migrant workers and they had to work on all days in a week under extremely bad working conditions.

The twenty-eighth State Labour Ministers conference held on 21-10-1976 recommended for setting up of a small compact committee to examine all issues and suggest measures for eliminating the abuses prevalent in the interstate worker's deployment. The compact committee which was constituted in February 1977, recommended the enactment of separate central legislation to regulate the employment of interstate migrant workers.

Provisions

Rights of interstate workers

In addition to the general labour laws applicable to all workers, the interstate workers are entitled with

• equal or better wages for the similar nature & duration of work applicable for the local workmen or stipulated minimum wages under the Minimum Wages Act, 1948 whichever is more,
• displacement allowance (Section 14),
• home journey allowance (Section 15) including payment of wages during the period of the journey,
• suitable residential accommodation and medical facilities free of charge on a mandatory basis.
• Termination of employment after the contract period without any liability.
• Right to lodge a complaint with the authorities within three months of any incident, accident, etc.

Role of contractors

Registration of all contractors who employ or employed five or more Interstate Migrant Workmen on any day of the preceding 12 months.

• Furnish the details of workmen periodically in such forms as prescribed by the state government.
• Maintain the registers indicating the details of interstate workers and make them available for scrutiny by the statutory authorities.
• Issue of passbook affixed with a passport-sized photograph of the workman indicating the name and the place of the establishment where the worker is employed, the period of employment, rates of wages, etc. to every inter-state migrant workman.
• Reporting by the contractor the incidence of fatal accident or serious injury of such workman to the specified authorities of both the States and also the next of kin of the workman.
• Liable for the prescribed punishments for violations committed under this Act.

Role of principal employers

• Registration of all principal employers who employs or employed directly or indirectly five or more Interstate Migrant Workmen on any day of the preceding 12 months.
• Maintain the registers indicating the details of interstate workers and make available for scrutiny by the statutory authorities.
• Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner and may be prescribed.
• The principal employer shall be liable to bear the wages and other benefits to interstate workers in case of failure by the contractor to effect the same.
• Liable for the prescribed punishments for violations committed under this Act.

Role of state governments

• Appointment of inspectors to oversee implementation of this act.
• Appointment of registration officers to grant and revoke registration of contractors / principal employers / establishments.
• Appointment of licensing officers to grant, suspend and revoke licenses to contractors / principal employers/establishments
• Making rules for carrying out the purposes of this Act subject to the condition of previous publication
• Entertaining appeals from the aggrieved parties and disposal of the same as per this Act

Proposed amendment

The Interstate Migrant Workers (Regulation of Employment and Conditions of Service) Amendment Bill, 2011 is proposed to make this Act gender neutral by amending its title and replacing the word ‘workman and workmen’ by the words ‘worker and workers’ respectively.^[6] However, the lawmakers have not thought of bringing additional provisions to implement this Act strictly with more accountability and punishments for violations.

Possible improvements

• All interstate workers should be registered in gram panchayat or municipality or corporation compulsory.
• All interstate workers shall be provided with the benefits of Public Distribution System (PDS) Cards to avoid buying food grains and kerosene at higher prices. Adhar identity card shall be made compulsory for the interstate workers.
• The remuneration to interstate workers shall be deposited in their bank accounts and not by cash by the contractors
• Every state government shall mandatorily operate an internet portal indicating the registered principal employers, contractors, establishments and interstate workmen details including Adhar card data for general public information and verification. The details of interstate workmen shall be uploaded by the principal employers and contractors promptly. Non-compliance by the principal employers or contractors is treated as a violation of the Act and liable for punishment.
• No contractor shall deploy the workers outside the state without getting registered in that state. All the details of the interstate workers'

  ---

  deployment outside the state shall be made available to the state authorities promptly.
• The state government authorities shall conduct a mandatory yearly audio of all employers/contractors in a state regarding the deployment of interstate workers and submit yearly compliance status or implementation report to the state assembly for their scrutiny.
• The ongoing finance commission shall give weight age in devolution of central government funds to the states which are giving more employment to interstate workers as they are ahead in demographic transition. Demographic transition of a state is a real index & status of all round human and economical development.

Consumer Protection act

Part of: GS-II- Rights/Consumer rights (PT-MAINS-PERSONALITY TEST)

The Lok Sabha passed the Consumer Protection Bill 2019 after due consideration and discussion. The Union Minister for Consumer Affairs, Food and Public Distribution said that the bill aims at protecting the interests of consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes, simplifying a number of rules, quick redressal of their complaints and consumers will be able to get speedy justice. He said the government aims to simplify the entire process of redressal of consumer grievances.

Under the Bill, there is a provision for the central government to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers and will be empowered to investigate, recall, refund and impose penalties. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. There is also a provision for a class action lawsuit for ensuring that the rights of consumers are not infringed upon. The authority will have the power to impose a penalty on a manufacturer or an endorser of up to 10 lakh rupees and imprisonment for up to two years for a false or misleading advertisement.

Several countries like Canada, and Estonia have devised advertisement regulations for unhealthy foods targeted at children. Countries such as the UK, Ireland and Belgium have specifically banned celebrity endorsement of unhealthy foods. The impact of such restrictions has been reported to be significant.

The present passed Bill seeks to replace the three-decade-old Consumer Protection Act, of 1986.

Salient Features of the Bill

1. Central Consumer Protection Authority (CCPA): Executive Agency to provide relief to a class of consumers. The CCPA will be empowered to-

1. Conduct investigations into violations of consumer rights and institute Complaints /Prosecution
2. Order recall of unsafe goods and services
3. Order discontinuance of Unfair Trade Practices and Misleading Advertisements
4. Impose penalties on Manufactures /Endorsers /Publishers of Misleading Advertisements

2. Simplified Dispute Resolution process

i) Pecuniary Jurisdiction enhanced to-

• District Commission –Up to Rs1 crore
• State Commission- Between Rs1 crore and Rs 10 crore
• National Commission –Above Rs.10 crore

ii) Deemed admissibility after 21days of filing

iii) Empowerment of Consumer Commission to enforce their orders

iv) Appeals only on questions of law after the second stage

v) Ease of approaching consumer commission

• Filing from a place of residence
• E-filing
• Videoconferencing for hearing

3. Mediation

• An Alternate Dispute Resolution (ADR) mechanism
• Reference to Mediation by Consumer Forum wherever scope for early settlement exists and parties agree for it.
• Mediation cells to be attached to Consumer Forum
• No appeal against settlement through mediation

4. Product Liability

A manufacturer or product service provider or product seller is responsible to compensate for injury or damage caused by defective products or deficiency in services

The Basis for product liability action will be:

• Manufacturing defect
• Design defect
• Deviation from manufacturing specifications
• Not conforming to express warranty
• Failing to contain adequate instruction for correct use
• Services provided are faulty, imperfect or deficient

New Bill- Benefit to Consumers

Presently consumers only have a single point of access to justice, which is time-consuming. Additional swift executive remedies are proposed in the bill through Central Consumer Protection Authority (CCPA)

Deterrent punishment to check misleading advertisements and adulteration of products

Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services

Ease of approaching Consumer Commission and Simplification of the Adjudication process

Scope for early disposal of cases through mediation

Provision for rules for new age consumer issues: e-commerce & direct selling

Rights of consumers: Six consumer rights have been defined in the Bill, including the right to:

1. be protected against marketing of goods and services which are hazardous to life and property;
2. be informed of the quality, quantity, potency, purity, standard and price of goods or services;
3. be assured of access to a variety of goods or services at competitive prices; and
4. seek redressal against unfair or restrictive trade practices.

The bill proposes strict action against the advertiser in case of misleading advertisements but not against the media through which the advertisement is being publicised.

Celebrities can be fined up to ?10 lakh. For repeat offences, this may rise to ?50 lakh, with a jail term of up to five years.

Concerns

The principle of separation of powers:

• The Bill does not specify that the Commissions will comprise a judicial member. If the Commissions were to have members only from the executive, then the principle of separation of powers may be violated. This is in contrast with the existing Consumer Protection Act, 1986, which states that the Commissions at various levels will be headed by a person qualified to be a judge.

Independence of these quasi-judicial bodies:

• The Bill empowers the central government to appoint, remove and prescribe conditions of service for members of the District, State, and National Consumer Disputes Redressal Commissions. The Bill leaves the composition of the Commissions to the central government. This could affect the independence of these quasi-judicial bodies.

Qualification:

• The Bill delegates the power of deciding the qualifications of the Commission’s President and members to the central government. It is in contrast to the 1986 Act which specifies the minimum qualification of the members.

Advisory function:

• Consumer Protection Councils will be set up at the district, state, and national level, as advisory bodies. The State and National Councils are headed by Ministers in-charge of Consumer Affairs. The Bill does not specify whom the Councils will advise. If the Councils advise the government, it is unclear in what capacity such advice will be given.
  Within the Consumers Protection Act, there is a need for expansion of persons allowed to petition consumer courts. Due to the rigidity of the act, only a “consumer”—that is, someone who purchases goods and services, could approach the court to complain about harmful practices.

Unfair trade by rivals and penalizing misleading celebrity endorsement:

• It does not include unfair trade practices by rival companies, which may negatively affect the sale of products.
• The Act also hints at imposing penalties upon any celebrities who endorse misleading products and the extent of liability of advertisers or endorsers and celebrity rights and protection. The Act falls short on the extent of liability on stakeholders in such cases.

Standing Committee recommendations not addressed:

• The right to terminate a contract on the grounds of quality of goods or services received.
• In order to facilitate early disposal of cases, the involvement of advocates in complaints involving compensation value of up to Rs 20 lakh should be prohibited. It attributed the inordinate delay in disposal of cases to the deployment of advocates.
• The Standing Committee noted that Consumer Commissions do not admit complaints in relation to services to which a special law applies. It recommended that a provision may be inserted to clarify that the proposed Bill will apply to any matter covered under a special law unless the special law excludes the application of the proposed Bill.
• The advertising code presently being followed by the Advertising Standards Council of India (ASCI) should be given legal backing.

Suggestion for Improvement

• Countries within the European Union provide consumers with a “distance contract,” wherein parties that conduct business (ONLINE, E-commerce) without being in each other’s presence can cancel the contract (sale) within 15 days from the date of purchase. Such a clause, that provides a “cooling off period” post-purchase, within which time a consumer can return an item and ask for a refund, will not only protect the consumer but also improve the quality of services offered.

Way Forward:

Misleading ads, tele-marketing, multi-level marketing, direct selling and e-commerce pose new challenges to consumer protection and will require appropriate and swift executive intervention to prevent consumer detriment.

However, certain issues such as the appointment of mediators to settle disputes are contentious as this would lead to arm-twisting of the weaker parties and may encourage corruption.

The Bill does not address the fundamental problem of protracted and complicated litigation, the bane of consumer forums constituted under the Consumer Protection Act of 1986. Instead, it provides an alternative to the consumer forums, in the form of mediation.

The setting up of a Consumer Authority and absence of provisions to streamline the conducting of cases in courts may only lead to greater regulations and complexities.

Addressing these issues is necessary to ensure that the new amendments bring about definitive improvements in the CPA.

Conclusion:

India is likely to cross China’s population by 2024 and consumerism is growing fast.

With the passage of the Consumer Protection Bill in Parliament, consumer rights are set to receive a massive boost. The new regulations put more responsibility on companies for misleading advertising and faulty products.

In a global first, it also lays out penalties for celebrities endorsing or promoting false advertising and adulterated goods.

The emergence of the global supply chain, rise in global trade and rapid development of e-commerce have led to a new delivery system for goods and services and also provided new options and opportunities for consumers.

Oil Crisis Past to Present

Oil crisis during 1973-74 :

• An oil crisis is a sudden rise in the price of oil that is often accompanied by decreased supply. Since oil provides the main source of energy for advanced industrial economies, an oil crisis can endanger economic and political stability throughout the global economy.

• In the post-World War II period there have been two major oil crises. The first occurred in 1973, when Arab members of OPEC (Organization of the Petroleum Exporting Countries) decided to quadruple the price of oil to almost $12 a barrel (see Arab oil embargo). Oil exports to the United States, Japan, and western Europe, which together consumed more than half the world’s energy, were also prohibited. OPEC’s decision was made in retaliation for Western support of Israel against Egypt and Syria during the Yom Kippur War (1973) and in response to a persistent decline in the value of the U.S. dollar (the denominated currency for oil sales), which had eroded the export earnings of OPEC states.
• With the global capitalist economy already experiencing difficulties, these actions precipitated a steep recession accompanied by rising inflation. This forced capitalist countries to embark on a process of economic restructuring in order to reduce their dependency on oil and prompted fears that the United States might take military action in order to secure free access to its energy supplies. Although the oil embargo was lifted in 1974, oil prices remained high, and the capitalist world economy continued to stagnate throughout the 1970s.

Oil Crisis 1978-79:

• Another major oil crisis occurred in 1979, as a result of the Iranian Revolution (1978–79). High levels of social unrest severely damaged the Iranian oil industry, leading to a large loss of output and a corresponding rise in prices.
• The situation worsened following the outbreak of the Iran-Iraq War (1980–88), which further added to the level of instability throughout the region. In 1981 the price of oil was stabilized at $32 per barrel.
• By 1983, however, major capitalist economies had adopted more-efficient methods of production, and the problems of the 1970s had been transformed into a relative oversupply of oil rather than a shortage.

Reason for drop in oil prices by 2014

• Oil prices have been one of the most watched trends in economics during the 21st century. From 1999 to 2008, the price of crude oil saw an unprecedented spike, going from under $25 per barrel to more than $160 per barrel.
• Rapidly increasing demand in emerging economies such as China and India and production cuts by the Organization of Petroleum Exporting Countries (OPEC) in the Middle East drove the price of oil to its record heights.
• Shortly thereafter, a deep global recession throttled demand for energy and sent oil and gas prices into a precipitous free fall. By the end of 2008, the price of oil had bottomed out at $53. The economic recovery that began the following year sent the price of oil back over $100; it hovered between $100 and $125 until 2014, when it experienced another steep drop.
• Numerous factors contributed to the 2014 drop in oil prices. Economies such as China, whose rapid growth and expansion created an unquenchable thirst for oil in the first decade of the new millennium, began to slow after 2010. China is the world's largest country by population, so its lower oil demand had significant price ramifications.
• Other large emerging economies such as Russia, India and Brazil experienced similar economic trajectories in the early 21st century – rapid growth during the first decade, followed by much slower growth after 2010.
• The same countries that pushed up the price of oil in 2008 with their ravenous demand helped bring oil prices down in 2014 by demanding much less of it.
• Spurred by the negative effect of high oil prices on their economies, countries such as the U.S. and Canada increased their efforts to produce oil. In the U.S., private companies began extracting oil from shale formations in North Dakota using a process known as fracking.
• Saudi Arabia's decision between letting prices continue to drop or ceding market share by cutting production in an effort to send prices upward again, the Middle Eastern country kept its production stable, deciding that low oil prices offered more of a long-term benefit than giving up market share.

Why oil prices have come down to Rs.1/barell during COVID-19?

• Pulling off all onerous feats since its inception, the Covid-19 crisis just added another victim to its list - oil.
• In an unprecedented event, oil for the first time in history breached the $0 mark, forcing the mankind to readjust the axes – another impossibility coming true! The WTI (West Texas Intermediate) futures contract of May expiry fell by over 300% to trade at below ‘minus US$39 per barrel’ on the NYMEX on Monday, April 20th.
• The Indian counterpart, MCX, accordingly had to settle the price at just INR 1 per barrel showing that it was unprepared for such an unusual volatility in the international markets.

• The primary reason behind this freefall is the lack of fuel demand across the world followed by a glut in global oil markets leading to an acute dearth of available storage capacities.
• Thus, increasing the number of market participants who are unwilling to risk doing physical deliveries anymore.
• Instead of obeying the future contracts at expiry, the idea of relentlessly selling the front month’s contract at the open market and rolling it over to the next month appears more feasible.
• Unlike Brent crude which is produced near the North Sea and settled in cash at expiry, West Texas Intermediate is produced in landlocked areas and has to be delivered physically, thus, making costs a burden for the latter from a transportation standpoint.
• This leads to greater uncertainties revolving around WTI prices than Brent crude as can be seen from the fact that Brent crude prices declined less dramatically on Monday and were still trading at levels close to US$25/barrel.

What did this mean for the global economies?

• With no recovery in sight in the foreseeable future, the key issue of oil storage is likely to stay. If the oil stays at pennies, the US shale companies would have to pay to dispose of the excess stock! As a result, they may have to further reduce production by shutting down their rigs and oil wells to avoid plunging into deeper financial troubles.
• Keeping aside the theoretical aspects, there are additional operational and strategic challenges in cutting production. Operationally, there is only up to an extent that a company can do so. To cut production further, they may have to seal their oil wells and thus, risk losing the asset permanently. Strategically, this would mean recurring capital and abandonment expenditures when the market revives and losing its market share to its competitors in the longer run.
• If major oil-producing nations like the OPEC countries choose to do this, their currency might devalue significantly.
• However, cheaper fuel may appeal to consumers in the shorter run, but this would also mean lower or no dividend payments by the financially burdened oil companies to the pension funds in the long run; indirectly affecting millions who are reliant solely on their pension incomes.

What does this mean for India?

• The government earns a large chunk of its income from excise duties with roughly 90% of it coming from oil imports.
• It is interesting to note that the prices for retailers have not been reduced since the government is using the buffer to fund its expenses. However, once the lockdown ends, the government can face increased pressure to reduce fuel prices for consumers.
• Indian oil companies, especially in the E&P space (upstream) like ONGC and Oil India, may face tough times ahead because of increased pressure to sell their products at lower prices ahead.
• The refiners and distributors (downstream) like HPCL, Reliance and IOCL are likely to see improved margins in the coming quarters, once the demand picks up again. As for the storage, if the Indian companies can manage their stockpile well, this is a good time to buy and reserve oil for future use.
• As per the Reserve Bank of India, India’s current account deficit (CAD) stands at 0.2% of GDP, as of the December quarter in FY20 as compared to 2.7% in the same quarter in FY19. Since India imports more than 80% of its oil consumption, lower oil prices are likely to reduce the CAD for the economy.
• The current savings in CAD can, then, be used to continue financing the urgent relief measures against the domestic Covid-19 outbreak.

India’s Fiscal Federalism

In India, the Finance Commission and the Planning Commission promote fiscal federalism by carrying out systemic fiscal transfers in the nature of devolution or conditional ones but with the replacement of Planning Commission by NITI Aayog there is an urgent need for revisiting and redefining the fiscal architecture of India.

Need for Redefining India’s Fiscal Federalism

Horizontal imbalances and rising regional inequalities: Replacing the Planning Commission (which was mandated to give grants to the states as conditional transfers using the Gadgil-Mukherjee formula) with NITI Aayog (Government think tank with no resources to dispense) has reduced the policy outreach of government by relying only on single instrument of fiscal federalism i.e Finance commission. This approach if not reviewed can lead to a serious problem of increasing regional and sub-regional inequities.

Restructuring the Fiscal Federalism

India’s Fiscal Federalism needs to be restructured around the four pillars namely Finance Commission, NITI Aayog, GST and decentralization in order to eliminate the inadequacies of vertical and horizontal imbalances.

1. Finance Commission must be relieved from the dual task of dealing with provision of basic public goods and services and capital deficits. It should be confined to focussing on removal of basic public goods imbalance (Type I).
2. NITI Aayog can serve as the second pillar for dealing in the realm of infrastructure and capital deficits (Type II).

• It should be engaged with the allocation of capital in a way different than that used by the Finance Commission with different parameters for allocation.
• Regional Imbalances: NITI Aayog should receive significant resources (1% to 2% of the GDP) to remove regional and subregional disparities among states by reducing development imbalances in the areas of infrastructure deficit.
• Independent Evaluation Office: NITI Aayog should be mandated to create an independent evaluation office which will monitor and evaluate the efficacy of the utilization of revenue and capital grants.
• Decision-Making Body: It should also be an integral part of the decision making processes as it can effectively negotiate between the states for the transfer of resources.

3. Decentralization can serve as the third pillar of the new fiscal federalism by strengthening local finances and state finance commission.The creation of an urban local body/Panchayati Raj institutions consolidated fund.

• Centre and States should contribute an equal proportion of their Central GST (CGST) and State GST (SGST) collections and send the money to the consolidated fund of the third tier.
• One-sixth sharing of the CGST and SGST with the third tier can generate more than 1% of the GDP every year for the financing of public goods by urban-level bodies.
• State Finance Commissions should be accorded the same status as the Union Finance Commission and the 3Fs of democratic decentralization (funds, functions, and functionaries) should be implemented properly.

4. Goods and Services Tax should be simplified in its structure and can serve as the fourth pillar of our fiscal federalism, by ensuring:

• Single Rate GST: with suitable surcharges on “sin goods,” (goods that are harmful to society and individuals, for example, alcohol and tobacco, drugs, etc), zero ratings of exports and reforming the Integrated Goods and Services Tax (IGST) and the e-way bill.
• Transparency: The GST Council should undertake reforms in an informed and transparent manner, by creating its own secretariat and independent experts (as its staff).

Challenges of fiscal federalism

• Fiscal federalism is the economic counterpart to political federalism.
• It assigns functions to different levels of government and also offers appropriate fiscal instruments for carrying out these functions.
• Determination of these specific fiscal instruments is a challenging task.
• Building the principles into an actual scheme of assignment of taxes to different levels of government in a Constitution is difficult.
• In India, income tax is levied only by the Central government though shared with the States.
• Given the possibility of imbalance between resources and responsibilities, many countries have a system of inter-governmental transfers.
• There is huge economic and cultural diversity among the various States. It is a terrible mistake to presume that all of India can be governed from Delhi.
• Elected State governments and leaders cannot be made dummies without any fiscal powers for long.
• This fiscal federalism tension between the Centre and States can erupt into something more dangerous and spread wide.

SAGAR programme- Indian Ocean

Part of: GS-II- SAGAR Doctrine and Indian Ocean (PT-MAINS-PERSONALITY TEST)

India has for a long time had a “continental outlook,” with insufficient attention paid to maritime aspects of security. But this has begun to change over the last two decades, a reflection of India’s growing economy and the resultant need for secure trade routes and the growing security competition in the maritime space as a consequence of China’s naval expansion.

One aspect of this shift has been India’s efforts to build security partnerships in the Indian Ocean region. On this score, the record of India’s strategic shift is at best mixed. Indeed, while there are often headlines about India’s successes, with an example being India’s outreach to Indonesia with India gaining access to a strategically vital Sabang port earlier this month, in fact, India’s efforts to partner with other states have actually been less than successful, be it an agreement with Seychelles or the Maldives.

Significance of the Indian Ocean

The geopolitical significance of the Indian Ocean stems from the fact that it is a centrepiece in the wider Indian Ocean Region (IOR). The combination of economic growth and slowdown, military expansion, increasing demand for natural resources, demographics combined with the geo-political situation, the increased presence of nuclear-capable actors and variances in regional structures of governance, highlights the geo-political significance of this area.

Major points that merit attention are: -

• The Indian Ocean is the third largest water body in the world that has vital sea lanes of communication crisscrossing it and which feeds Asia’s largest economies. Around 80 per cent of the world’s seaborne oil trade passes through the choke points of this ocean and therefore it literally connects the east to the west.
• The varying system of governance in the area determines the outline of the regional security architecture. The relations between nations both intra and extra regional shapes the complex matrix that define the overall architecture. Changes in political thought processes and any alteration in relations could alter the security scenario of the region.
• There has been a gradual to an accelerated expansion of maritime forces and their capabilities in the region. The growing presence of extra-regional powers and nuclear-capable nations has further altered the existing security framework. This is affecting the existing military balance and the impending imbalance could create a new architecture that could affect the prevailing security scenario.
• The economic upsurge of some nations and stagnation/slowdown of others is throwing up challenges that could affect the regional and international markets. The lack of intra-regional trade as compared to the extra-regional trade has limited the relations between nations in the region. Added to it is the growing competition and race for exploiting available natural resources, which could bring in new challenges to the region in times to come.

SAGAR Programme (Security and Growth for All in the Region)

SAGAR Doctrine was unveiled by India in 2016 underlining the growing salience of the Indian Ocean and global maritime commons in India’s strategic calculus. It calls for intensifying cooperation among navies and maritime agencies of the world to engineer virtuous cycles of cooperation. It is a maritime initiative which gives priority to the Indian Ocean region for ensuring peace, stability and prosperity of India in the India Ocean region.

Importance:

• SAGAR Doctrine approaches significant importance while India playing the role of a security provider for the entire Indian Region.
• It calls for intensifying cooperation among navies and maritime agencies of the world to engineer virtuous cycles of cooperation.
• Its goal of it is to seek a climate of trust and transparency; respect for international maritime rules and norms by all countries; sensitivity to each other`s interests; peaceful resolution of maritime issues; and an increase in maritime cooperation.

Key Points

1. SAGAR is a term coined by PM Modi in 2015 during his Mauritius visit with a focus on the blue economy.
2. It is a maritime initiative which gives priority to the Indian Ocean region for ensuring peace, stability and prosperity of India in Indian Ocean region.
3. The goal is to seek a climate of trust and transparency; respect for international maritime rules and norms by all countries; sensitivity to each other`s interests; peaceful resolution of maritime issues; and an increase in maritime cooperation.
4. It is in line with the principles of the Indian Ocean Rim Association.

Indian Ocean Rim Association (IORA)?

• The Indian Ocean Rim Association (IORA) was previously named the Indian Ocean Rim Initiative.
• It was also called the Indian Ocean Rim Association for Regional Cooperation or the IOR-ARC for short.
• It is a regional tripartite forum that gathers government representatives, academia and business leaders for encouraging cooperation and greater interaction between them.
• The organisation is founded upon the values of open regionalism for boosting economic cooperation, especially in the realms of trade facilitation, investment, the region’s social development and promotion.
• Currently, it has 21 member states.
• The IORA was formed in March 1997.
• The idea for the IORA was formed by India and South Africa.

Indian Ocean Rim Association (IORA) Objectives

• Promoting balanced development and sustainable growth in the regions of the Member States.
• Considering areas that provide maximum opportunities for development through economic cooperation.
• Other objectives to help member countries achieve an enhanced flow of goods, services, investment, and technology include:
  • Promoting liberalisation
  • Removing impediments
  • Lowering barriers

Indian Ocean Dialogue (IOD)

The Indian Ocean Dialogue (IOD) is a flagship initiative of the Indian Ocean Rim Association (IORA), with its origins in the 13th Council of Ministers meeting, held in November 2013 in Perth, Australia.

The IORA Sustainable Development Program (ISDP)

The ISDP is a project-based program intended to meet the needs of the Member States of the IORA. Project proposals are formulated by the Member countries in collaboration with IORA Secretariat. As an instrument of sustainable development, the ISDP Program is expected to strengthen regional cooperation and forge new partnerships within the IORA Member States and with Dialogue Partners.

ISDP Objectives:

• Encouraging lesser developed member countries to participate in IORA.
• Encouraging capacity building, peer-to-peer learning and sharing of information to IORA member countries.
• Enhancing and strengthening bonds amongst member countries.
• Extending opportunities to lesser developed member countries to share their experience and expertise in specific areas that would benefit their economies.
• Encouraging less developed member countries to host various IORA events.

IORA Council of Members Meeting 2019

• Held in Abu Dhabi under the theme ‘Promoting a Shared Destiny and Path to Prosperity in the Indian Ocean.
• The UAE was declared Chair and Bangladesh was declared Vice-Chair for the period 2019-2021.
• India published guidelines for Disaster Risk Management. India also encouraged partners to join the Coalition for Disaster Resilient Infrastructure that was launched in the United Nations in 2019.
• The Indian navy launched the Information Fusion Centre in Gurugram to assist member countries of the Indian Ocean Region with real-time crisis information. With this, India is aiming at becoming a net provider of information. Countries that are part of this information support structure of India are:
  • Maldives
  • Mauritius
  • Seychelles
  • Sri Lanka
  • Bangladesh

Key Points

• It is the only ministerial-level organization that focuses purely on the Indian Ocean region, bound together by growing economic and trade linkages and a shared interest in promoting prosperity, peace and stability.
• In 2014, India hosted the first Indian Ocean Dialogue in Kochi, Kerala bringing together officials, academics and other strategic thinkers to discuss six broad themes – the geo-political contour of the Indian Ocean Region, maritime security challenges, strengthening regional institutions, information sharing, cooperation in disaster relief and management, and economic cooperation. The Kochi Consensus was adopted as its outcome document.
  • The Indian Ocean Dialogue (IOD) is a flagship initiative of IORA, with its origins in the 13th Council of Ministers meeting, held in November 2013 in Perth, Australia.
  • The sixth edition of IOD will be held on 13 December 2019 in New Delhi, India.