CYBERCRIME
1. Context
The Indian Cybercrime Coordination Centre (I4C) has introduced a new system that automatically converts financial cybercrime complaints with a fraud value above ₹10 lakh, and registered on the 1930 helpline or cybercrime.gov.in portal, into first information reports (FIRs)
2. About cybercrime
Cybercrime is essentially any illegal activity that involves computers, networks, or digital devices. Criminals can use these tools to steal data, commit fraud, disrupt computer systems, or cause other harm. Some common types of cybercrime include:
- Stealing someone's personal information like their name, Social Security number, or credit card details to impersonate them and commit fraud.
- Tricking people into giving up their personal information or clicking on malicious links by disguising emails or websites as legitimate ones.
- Malicious software that can be installed on a computer to steal data, damage files, or disrupt operations.
- Gaining unauthorized access to a computer system or network to steal data, install malware, or cause damage.
3. What is NCRP?
The National Cybercrime Reporting Portal is an online platform established by the government of India to facilitate the reporting of cybercrimes by citizens. The portal allows individuals to report incidents of cybercrime in a streamlined and accessible manner.
Key features and functions of the National Cybercrime Reporting Portal include
- Individuals can report various types of cybercrimes such as online harassment, financial fraud, ransomware attacks, and identity theft. The portal provides specific categories for different types of cyber incidents to ensure proper documentation and handling.
- The portal places a special emphasis on crimes related to women and children, providing a dedicated section to report cases of online harassment, child pornography, and other related offences.
- The portal allows users to report crimes anonymously if they choose, ensuring the confidentiality and privacy of the complainant.
- Once a complaint is filed, the portal provides a tracking number which can be used to follow up on the status of the complaint.
- The portal offers resources and guidelines on how to protect oneself from cybercrime, as well as information on legal recourse and support available for victims.
4. What is the Indian Cyber Crime Coordination Centre (I4C)?
The Indian Cyber Crime Coordination Centre (I4C), established by the Ministry of Home Affairs (MHA), is essentially India's central command centre for combating cybercrime.
Functions
- The I4C serves as a focal point for coordinating efforts between various Law Enforcement Agencies (LEAs) across the country to tackle cybercrime effectively.
- It facilitates the exchange of information on cybercrime investigations, cyber threat intelligence, and best practices among LEAs. This allows for a more unified approach to combating cyber threats.
- The I4C is citizen-centric. It played a role in launching the National Cybercrime Reporting Portal (NCRP) which allows people to report cybercrime complaints online. There's also a National Cybercrime Helpline (1930) to report incidents and get assistance.
- The I4C identifies the need for adapting cyber laws to keep pace with evolving technology. They recommend amendments to existing laws and suggest the creation of new ones if necessary.
- The I4C works with academia and research institutes to develop new technologies and forensic tools to aid in cybercrime investigations.
- They promote collaboration between the government, industry, and academia to raise awareness about cybercrime and develop standard operating procedures (SOPs) for containing and responding to cyberattacks.
5. What is the Budapest Convention?
The Budapest Convention, also known as the Council of Europe Convention on Cybercrime, is the world's first international treaty specifically designed to address cybercrime. It came into effect in 2004 with three main objectives:
- The convention aims to improve how countries investigate cybercrime by setting standards for collecting electronic evidence and fostering cooperation between law enforcement agencies.
- It facilitates cooperation among member states in tackling cybercrime. This includes sharing information, assisting with investigations, and extraditing cybercriminals.
- The convention encourages member countries to harmonize their national laws related to cybercrime. This creates a more unified approach to defining and prosecuting cyber offences.
India's Stand: India is not currently a party to the Budapest Convention. There are concerns that some provisions, like data sharing with foreign law enforcement agencies, might infringe on India's national sovereignty. India has also argued that it wasn't involved in drafting the initial convention.
6. What is the Global Cybersecurity Index?
The Global Cybersecurity Index (GCI) is an initiative by the International Telecommunication Union (ITU) to measure and rank the cybersecurity capabilities of countries around the world. The index provides insights into the commitment of countries to cybersecurity at a global level, assessing their strengths and identifying areas for improvement. The key aspects of the Global Cybersecurity Index
Purpose
- To promote cybersecurity awareness and foster a global culture of cybersecurity.
- To encourage countries to enhance their cybersecurity infrastructure and strategies.
- To facilitate knowledge sharing and cooperation among nations.
Assessment Criteria
The GCI evaluates countries based on five main pillars:
- Examines the existence of cybersecurity legislation and regulatory frameworks.
- Assesses the implementation of cybersecurity technologies and technical institutions.
- Looks at national cybersecurity strategies, policies, and dedicated agencies.
- Evaluate the availability of cybersecurity education, training, and awareness programs.
- Measures the extent of international and national cooperation in cybersecurity efforts.
Methodology
The assessment is conducted through a comprehensive survey sent to ITU member states, followed by analysis and validation of the responses. The countries are then scored and ranked based on their overall cybersecurity posture.
Impact
The GCI serves several important functions:
- Provides a benchmarking tool for countries to assess their cybersecurity maturity.
- Helps policymakers identify gaps and prioritize areas for improvement.
- Encourages international cooperation and collaboration to tackle global cyber threats.
The GCI reports typically highlight the growing importance of cybersecurity due to increasing digital transformation and the rising number of cyber threats. They showcase best practices and successful initiatives from top-ranking countries, serving as models for others.
7. The challenges related to cyber security in India
India faces numerous challenges related to cybersecurity, reflecting its rapidly growing digital economy and increasing reliance on technology.
Increasing Cyber Threats:
- India has seen a significant rise in cybercrimes, including hacking, phishing, ransomware attacks, and identity theft. Sophisticated, state-sponsored attacks targeting critical infrastructure and sensitive data are becoming more common.
- Many public and private sector systems rely on outdated technology, making them vulnerable to attacks. Inadequate implementation of robust cybersecurity measures and protocols leaves systems exposed.
- There is a significant gap in the number of trained cybersecurity experts needed to protect against and respond to cyber threats. Ongoing education and training programs are insufficient to keep pace with evolving cyber threats.
- The absence of a unified regulatory framework complicates cybersecurity management. While laws like the IT Act 2000 exist, enforcement and implementation remain inconsistent and weak.
- Many individuals and small businesses lack awareness of basic cybersecurity practices. Practices like using weak passwords, not updating software, and falling for phishing scams are common.
- The absence of robust data protection legislation makes it difficult to safeguard personal and sensitive data. Ensuring privacy and protection of personal information remains a significant challenge.
- Effective cybersecurity often requires international cooperation, which is currently limited and inconsistent. Cross-border cyber threats and geopolitical tensions complicate collaboration and response efforts.
- The rapid adoption of IoT devices, often with minimal security features, increases vulnerabilities. While AI can enhance security, it also introduces new risks and attack vectors.
- Sectors like banking, healthcare, and energy are increasingly targeted, requiring enhanced protection measures. Ensuring coordinated efforts among various governmental and private entities involved in critical infrastructure protection is challenging.
- Limited financial resources allocated for cybersecurity initiatives hinder the development and implementation of comprehensive security measures.
- Staying abreast of the latest cybersecurity technologies and tools is difficult due to financial and logistical constraints.
8. Way Forward
Addressing these challenges requires a multifaceted approach involving improved regulatory frameworks, enhanced public awareness, investment in cybersecurity infrastructure, international cooperation, and the development of a skilled workforce. By strengthening these areas, India can better safeguard its digital ecosystem against the growing threat of cybercrime.
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For Prelims: Cyber Crime, Artificial Intelligence, Internet of Things, Indian Cyber Crime Coordination Centre, National Cybercrime Reporting Portal, Budapest Convention, Global Cybersecurity Index, International Telecommunication union
For Mains:
1. India witnesses a high number of cybercrimes originating from Southeast Asia. Analyze the challenges this poses for Indian Law Enforcement Agencies and suggest measures to improve cross-border cooperation in tackling cybercrime. (250 words)
2. What are the key functions of the Indian Cyber Crime Coordination Centre (I4C)? Critically evaluate its effectiveness in combating cybercrime in India. (250 words)
3. The rise of Internet of Things (IoT) devices introduces new vulnerabilities in cyberspace. Analyze the cybersecurity challenges posed by IoT and suggest measures to mitigate these risks. (250 words)
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Previous Year Questions
1. In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (UPSC 2020)
1. Cost of restoration of the computer system in case of malware disrupting access to one's computer
2. Cost of a new computer if some miscreant wilfully damages it, if proved so
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
4. Cost of defence in the Court of Law if any third party files a suit
Select the correct answer using the code given below:
A.1, 2 and 4 only B.1, 3 and 4 only C.2 and 3 only D.1, 2, 3 and 4
2. Global Cyber Security Index (GCI) 2020 is released by which of the following organizations? (RRB Clerk Mains 2021)
A. World Bank
B. United Nations Development Programme
C. International Telecommunication Union
D. World Economic Forum
E. None of these
Answers: 1-D, 2-C
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Source: The Indian Express
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)
1. Context
A review of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2024-25 reveals that while the coverage has increased, with an 8.6% rise in number of registered households under the programme, the delivery of promised employment has gone down, with person days having dropped by 7.1%
2. About the National Level Monitoring (NLM) report
- The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
- The report is based on field visits and interviews with stakeholders at the grassroots level.
- The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
- The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.
The NLM report typically identifies the following areas:
- The coverage of rural development programs
- The quality of implementation of rural development programs
- The impact of rural development programs on the lives of rural people
The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.
3. The findings of the NLM report
- In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
- In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
- In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
- The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
- The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.
4.1. Mandate and Goals
- The mandate of MGNREGA is to provide employment and ensure food security for rural households.
- The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
- The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity.
4.2. Core Objectives
- The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
- MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
- The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.
4.3. Key Stakeholders
- Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
- Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
- The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
- The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
- Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.
4.4. Role of Gram Sabha and Gram Panchayat
- The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
- The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.
4.5. Issues with MGNREGA
- Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
- There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
- Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
- Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
- Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
- Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.
5. Conclusion
MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.
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For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G),
For Mains:
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
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Previous Year Questions
Prelims
1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011) (a) Adult members of only the scheduled caste and scheduled tribe households Answer: D 2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: A 3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: C 4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: B 5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017) A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
Answer: A
Mains
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
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Source: indianexpress
PRESIDENTIAL REFERENCE
1. Context
Court can uphold its directions (however modified) and risk being accused of overreach, or allow a fundamental breakdown of constitutional order
2. Historical context of presidential reference
The Supreme Court's advisory role, as outlined in Article 143, traces its origins to the Government of India Act of 1935. This act granted the Governor-General the authority to seek the opinion of the federal court on significant legal matters.
A comparable feature exists in the Canadian Constitution, where the Supreme Court of Canada is empowered to give advisory opinions on legal issues referred by either the federal or provincial governments. In contrast, the U.S. Supreme Court has consistently refused to issue advisory opinions to the executive branch, adhering strictly to the principle of separation of powers embedded in the American Constitution
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Under Article 143 of the Constitution, the President has the authority to seek the Supreme Court’s opinion on any legal or factual issue deemed to be of public significance. This referral is made based on the advice of the Union Council of Ministers. According to Article 145, such matters must be examined by a bench comprising at least five judges of the Supreme Court. Following the hearing, the Court may deliver its opinion as it deems appropriate. While the opinion is not legally binding on the President and does not set a judicial precedent, it holds considerable persuasive value. Consequently, it is generally respected and adhered to by both the executive and the judiciary |
3. Past instances
- Since 1950, approximately fifteen presidential references have been made to the Supreme Court, excluding the most recent one. Below are brief summaries of some notable opinions delivered by the Court in response to these references.
- The first such reference came in the Delhi Laws Act case (1951), where the Court outlined the concept of delegated legislation, allowing the legislature to delegate certain law-making powers to the executive for efficient law implementation.
- In the Kerala Education Bill case (1958), the Court established the principle of harmonious interpretation between Fundamental Rights and the Directive Principles of State Policy, while also clarifying the constitutional safeguards for minority-run educational institutions under Article 30.
- In the Berubari Union case (1960), the Court held that any transfer or acquisition of Indian territory requires a constitutional amendment as per Article 368. The Keshav Singh case (1965) addressed the scope of legislative powers and privileges.
- In the Presidential Election case (1974), the Court ruled that elections for the President must proceed even if there are vacancies in the electoral college due to the dissolution of state assemblies.
- The Special Courts Bill reference (1978) was particularly important, as the Court clarified that it can choose not to respond to a reference, that the questions posed must be clear and precise, and that the judiciary must not intrude into Parliament's domain when giving its opinion.
- The Third Judges case (1998) resulted in a comprehensive set of guidelines shaping the collegium system for appointing judges to the higher judiciary.
- Although the Supreme Court is not bound to respond to every reference, it has declined to provide an opinion on only one occasion — in 1993, concerning the Ram Janmabhoomi dispute
4. Current reference
- The current presidential reference stems from a recent Supreme Court ruling that established specific timelines for the President and State Governors to act on Bills passed by State legislatures.
- In that judgment, the Court also asserted that the decisions made by the President and Governors regarding such Bills are open to judicial scrutiny. This reference has posed 14 key questions, mainly focusing on the interpretation of Articles 200 and 201 of the Constitution.
- The central government has raised concerns about whether courts can impose timelines when the Constitution itself does not prescribe any. It also questions whether the actions of the President and Governors, taken before a Bill becomes law, can be subjected to judicial review. Additionally, the reference seeks clarity on the scope of the Supreme Court’s powers under Article 142.
- This legal dispute has largely been driven by political tensions between the Union government and Opposition-led State governments. In its judgment, the Supreme Court had referred to the timelines mentioned in a Ministry of Home Affairs Office Memorandum concerning the President's assent to Bills.
- Notably, in the Cauvery dispute reference (1992), the Court had stated that, in an advisory capacity, it does not have the authority to review its previous rulings.
- Nevertheless, a definitive opinion in the present case is expected to bring clarity to important constitutional questions, thereby aiding in the effective functioning of federalism and democratic governance
5. Way Forward
The advisory jurisdiction of the Supreme Court under Article 143 plays a vital role in clarifying complex constitutional questions and ensuring the smooth functioning of India's democratic framework. While not binding, the Court’s opinions carry significant persuasive authority and are generally respected by both the executive and judiciary. Historical references, from the Delhi Laws Act case to the Third Judges case, have helped shape important legal doctrines on delegated legislation, federalism, judicial appointments, and legislative privileges
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For Prelims: Article 143, Supreme Court's advisory jurisdiction
For Mains: General Studies II - Indian Polity & Governance
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Previous Year Questions
Prelims
1. Consider the following statements: (UPSC 2017) 1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.
Which of the statements given above is/are correct? A. 1 and 2 only B. 2 only C. 2 and 3 only D. 3 only Answer: D 2. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following? (UPSC CSE 2019) Answer: B 3. Consider the following statements : (UPSC 2021) 1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. 1 and 3 D. 2 and 3
4. Consider the following statements about Electoral Bond Scheme 2018: (RPSC RAS Prelims 2018)
(A) The aim of this scheme is to bring about transparency in the funding process of political parties.
(B) Only the political parties recognized by the Election Commission which secured not less than one per cent of the votes polled in the last general election to the House of People or the Legislative Assembly of the State shall be eligible to receive the Electoral Bonds.
(C) Electoral Bonds shall be valid for fifteen calendar days from the date of issue.
(D) The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.
Which of the above statements are correct?
1. Only (A) and (B)
2. (A), (B), (C) and (D)
3. Only (B), (C) and (D)
4. Only (A), (C) and (D)
Answer: 2
5. With reference to the PM CARES Fund, consider the following statements: (AFCAT 27 2022)
I. The amount collected by it directly goes to the Consolidated Fund of India.
II. It can avail donations from the foreign contribution and donations to fund can also avail 100% tax exemption.
Which of the above statements is/are correct?
A. I only B. II only C. Both I and II D. Neither I nor II
Answer: B
6. The Prime Minister's National Relief Fund is operated by which one of the following bodies? (CDS 2019)
A. The Prime Minister's Office (PMO)
B. The National Disaster Management Authority
C. The Ministry of Finance
D. The National Development Council (NDC)
Answer: A
Mains 1. In the light of recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India? (UPSC 2018) 2. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. ( UPSC 2022) |
Source: The Hindu
INDIA-BANGLADESH
1. Context
With Bangladesh set to graduate from the United Nations’ Least Developed Country (LDC) category in November 2026 — a move that will end its duty-free access to export markets such as the European Union, posing fresh challenges — the country has begun a sharp economic pivot away from New Delhi towards Beijing, thereby straining trade ties with India
2. The Evolution of India-Bangladesh Ties
- The genesis of India's relationship with Bangladesh traces back to the 1971 Bangladesh Liberation War when India played a crucial role in providing military and material support for Bangladesh's fight for independence from Pakistan.
- However, in the aftermath, relations faced challenges as military regimes took control, leading to a rise in anti-India sentiment in the mid-1970s.
- Issues such as boundary disputes, insurgency, and water-sharing disputes contributed to the strained ties.
- The situation persisted for several decades until Sheikh Hasina assumed power in 1996, ushering in a new era in bilateral relations.
- Under her leadership, a significant milestone was reached with the signing of a treaty on the sharing of Ganga waters.
- Since then, India and Bangladesh have successfully fostered cooperation in various areas, including trade, energy, infrastructure, connectivity, and defence.
3. India-Bangladesh Economic Ties
- Over the past decade, bilateral trade between India and Bangladesh has demonstrated consistent growth.
- Bangladesh has emerged as India's largest trade partner in South Asia, with bilateral trade surging from $10.8 billion in 2020-21 to $18 billion in 2021-2022.
- However, a slight dip occurred in 2022-23 due to the impact of the pandemic and the Russia-Ukraine war.
- In return, India stands as Bangladesh's second-largest trade partner, with exports amounting to $2 billion in the Indian markets.
- In 2022, both countries successfully concluded a joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA).
- This agreement, designed to reduce or eliminate customs duties on traded goods and streamline trade norms, is expected to unlock broader social and economic opportunities.
- The CEPA gains added significance as Bangladesh is poised to lose its Least Developed Country (LDC) status after 2026, thereby forfeiting its duty-free and quota-free market access in India.
- Dhaka is keen to finalize a Free Trade Agreement (FTA) with New Delhi and simultaneously pursue the China-backed Regional Comprehensive Economic Partnership (RCEP). This dual-track approach raises concerns for India.
4. India's Infrastructural Investments in Bangladesh
- As a significant development partner for Bangladesh, India has been actively contributing to various infrastructure and connectivity projects.
- Since 2010, India has provided Lines of Credit totalling over $7 billion. A milestone in this collaboration was achieved last year when Prime Minister Modi and Sheikh Hasina inaugurated the Akhaura-Agartala rail link, connecting Bangladesh and the northeast through Tripura.
- This link grants India access to Chattogram and Mongla ports in Bangladesh, facilitating cargo movement and poised to stimulate small-scale industries while fostering the development of Assam and Tripura.
- In the energy sector, Bangladesh imports nearly 2,000 megawatts of electricity from India.
- The BIMSTEC Master Plan for Transport Connectivity is instrumental in connecting major transport projects in India, Bangladesh, Myanmar, and Thailand, thereby establishing a comprehensive shipping network.
- India's focus is likely to be on the Matarbari Port, situated approximately 100 km from Tripura, being developed by Bangladesh.
- This port will play a pivotal role in establishing a crucial industrial corridor, connecting Dhaka with the northeastern part of India.
5. Navigating Challenges in the India-Bangladesh Relationship
- Several points of tension mark the diplomatic landscape between India and Bangladesh.
- Foremost among them is the impending Teesta dispute, which holds a central position in the agenda of the Hasina-led government.
- This dispute revolves around the equitable sharing of Teesta's waters, with Bangladesh seeking a fair distribution.
- Another source of contention is the Rohingya issue. The Hasina government aims for the peaceful repatriation of Rohingyas to Myanmar, but talks with the military junta have proven unsuccessful thus far.
- Bangladesh seeks India's cooperation to influence Myanmar, but the Modi government, with ties to the junta, asserts its intention to deport Rohingyas from its mainland.
- Cross-border terrorism and infiltration pose additional threats to internal security. The rise of majoritarian forces adds complexity to the already intricate landscape.
- While violence against Muslims has increased in India in recent years, Prime Minister Hasina has consistently condemned these attacks and expressed dissatisfaction with comments by Indian leaders concerning "illegal" immigrants.
6. Global Influences on the India-Bangladesh Relationship
- The Awami League government under Sheikh Hasina has faced vocal criticism from the U.S., particularly concerning "democratic backsliding."
- In 2021, the Biden administration imposed sanctions on a Bangladeshi anti-crime and anti-terrorism task force, citing human rights violations.
- Tensions escalated further as the U.S. announced a policy to restrict visas for Bangladeshis deemed responsible for undermining the election process in the country. This external pressure has implications for the global ties of Bangladesh.
- Adding to India's concerns is the deepening relationship between Bangladesh and China, marked by substantial Chinese investments in infrastructure in recent years.
- According to the Chinese Ambassador to Bangladesh, China has undertaken the construction of 12 highways, 21 bridges, and 27 power and energy projects in Bangladesh.
- However, Prime Minister Hasina has asserted that her government is "very much careful" about its partnership with China.
7. The Way Forward
Despite challenges, the India-Bangladesh relationship boasts strong potential for further growth. Open communication, constructive dialogue, and focus on shared interests are crucial for navigating the complexities and ensuring a prosperous future for both nations.
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For Prelims: India-Bangladesh, Free Trade Agreement, Rohingyas, Teesta River, BIMSTEC, Comprehensive Economic Partnership Agreement
For Mains:
1. Assess the role of China's growing influence in Bangladesh and its implications for the India-Bangladesh relationship. How can India navigate this complex geopolitical landscape? (250 Words)
2. Discuss the potential benefits of the BIMSTEC Master Plan for Transport Connectivity for India, Bangladesh, and the broader region. What are the key considerations for effective implementation and ensuring equitable benefits? (250 Words)
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Previous Year Questions
1. With reference to river Teesta, consider the following statements: (UPSC 2017)
Which of the statements given above is/are correct? (a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3 2. Consider the following countries: (UPSC 2018)
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the free-trade partners' of ASEAN?
A. 1, 2, 4 and 5 B. 3 , 4, 5 and 6 C. 1, 3, 4 and 5 D. 2, 3, 4 and 6
3. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 2018) (a) Industrial output fails to keep pace with agricultural output. 4. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (UPSC 2010)
Which of the above are the objectives of this Act? (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3
5. A “closed economy” is an economy in which (UPSC 2011) (a) the money supply is fully controlled
6. Consider the following pairs:(UPSC 2016)
Community is sometimes mentioned in the news In the affairs of
1. Kurd Bangladesh
2. Madhesi Nepal
3. Rohingya Myanmar
Which of the pairs given above is/are correctly matched?
A. 1 and 2 B. 2 only C. 2 and 3 D. 3 only
7. With reference to the BIMSTEC, which of the following statements is/are true? (UPPSC 2022)
1. P. M. Narendra Modi addressed the 5th BIMSTEC Summit on 30th March 2022.
2. 5th Summit of BIMSTEC had been chaired by India.
Select the correct answer from the code given below:
A. Neither 1 nor 2
B. Both 1 and 2
C. Only 2
D. Only 1
8. Which of the following statement/s is/are true about the three-day international Seminar on 'Climate Smart Farming System' for BIMSTEC countries held during December 11-13, 2019? (UPPSC 2020)
1. It was held at Katmandu, Nepal.
2. It was aimed to have experience sharing for more resilience to climate change through an ecological approach to enable the improvement of tropical small-holding farming systems.
Select the correct answer from the codes given below:
A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2
9. The term 'Regional Comprehensive Economic Partnership; often appears in the news in the context of the affairs of a group of countries known as (UPSC 2016)
A. G20 B. ASEAN C. SCO D. SAARC
10. Recently, with which one of the following countries did India sign the 'Comprehensive Economic Partnership Agreement' ? (UPSC CAPF 2022)
A. Egypt B. Israel C. South Africa D. United Arab Emirates
Answers: 1-B, 2-C, 3-C, 4-A, 5- D, 6-C, 7-D, 8-B, 9-B, 10- D
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Source: The Hindu
LEAST DEVELOPED COUNTRY
1. Context
With Bangladesh set to graduate from the United Nations’ Least Developed Country (LDC) category in November 2026 — a move that will end its duty-free access to export markets such as the European Union, posing fresh challenges — the country has begun a sharp economic pivot away from New Delhi towards Beijing, thereby straining trade ties with India.
2. What is a Least Developed Country?
The LDCs are developing countries listed by the UN that exhibit the lowest indicators of socioeconomic development. The concept first originated in the late 1960s and was codified under UN resolution 2768 passed in November 1971.
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As of 2024, there are 45 LDCs (down from 47, due to some countries graduating from the list like Bhutan and Vanuatu).
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Most LDCs are in Africa, followed by Asia-Pacific and a few in the Caribbean.
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The UN provides special support to LDCs, such as preferential market access, technical assistance, and funding opportunities
3. UN definition of Least Developed Country
According to the UN, an LDC is defined as “a country that exhibits the lowest indicators of socioeconomic development, with low levels of income, human capital, and economic diversification, high levels of economic vulnerability, and a population that is disproportionately reliant on agriculture, natural resources, and primary commodities.”
- The UN identifies three criteria for a country to be classified as an LDC:
First, it must have a gross national income (GNI) per capita below the threshold of USD 1,230 over a three-year average. - Second, it must perform poorly on a composite human assets index based on indicators including nutrition, health, and education.
- Lastly, the country must demonstrate economic vulnerability such as being prone to natural disasters and possessing structural economic constraints.
4. Data of present LDC Countries
These 46 LDCs are distributed among the following regions:
Africa (33): Angola, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Togo, Uganda, United Republic of Tanzania and Zambia
Asia (9): Afghanistan, Bangladesh, Bhutan, Cambodia, Lao People’s Democratic Republic, Myanmar, Nepal, Timor-Leste, and Yemen
Caribbean (1): Haiti
Pacific (3): Kiribati, Solomon Islands, and Tuvalu.
Image Source: UNCTAD5. How does a country get off the LDC list?
- At the UN 2021 triennial review of LDC countries, the organization recommended that Bangladesh, Laos, and Nepal be removed from the list.
- To graduate from the LDC list, a country must meet certain criteria in the three areas stated before namely, income, human assets, and economic vulnerability.
- A nation must have a GNI per capita of at least USD 1,242 for two consecutive triennial reviews to meet the income requirement.
- The nation must also show that this level of income can be sustained over the long term.
- By using measures like education, health, and nutrition, a nation must show that it has improved its human capital to achieve the human assets requirement.
- This entails expanding literacy rates, lowering malnutrition rates, and enhancing access to healthcare and education.
- A nation also must show that it has improved its ability to withstand external economic shocks like natural catastrophes or shifts in commodity prices to pass the economic vulnerability test.
- To achieve these goals, a country might need to implement a combination of policies, including promoting economic growth through investment in infrastructure, improving governance and reducing corruption, diversifying the economy, addressing environmental challenges, and investing in human development.
6. Previous countries that get off the LDC list
- Botswana achieved graduation in 1994 primarily due to its strong economic performance driven by its diamond mining industry and investments in education and infrastructure.
- Similarly, Carbo Verde graduated in 2007 following investments in tourism, fisheries, and services, as well as positioning its strategic location as a hub for sea and air transportation to help attract foreign investment.
7. How did Bhutan get off the LDC list?
- Bhutan was included in the first group of LDCs in 1971.
- Over the last few decades, it has made remarkable progress on a variety of socio-economic metrics.
- Bhutan first fulfilled the requirements for graduation in 2015, and then again in 2018.
- Bhutan was therefore scheduled to graduate in 2021.
- The Un viewed Bhutan's request to match the effective graduation date with the conclusion of the nation's 12th national development plan in 2023 as a legitimate request and thus postponed the delisting.
- Bhutan has taken several measures to reach this point and the results have been significant.
8. Driving factors that led Bhutan to get off the LDC list
- Bhutan’s economy increased more than eight times in the last 20 years, from just under USD 300 million in 2000 to USD 2.53 billion in 2017, with an average annual growth rate of more than 7 percent.
- Additionally, the percentage of people living in poverty, as determined by the amount of money they make each day, decreased from 17.8 percent in 2003 to 1.5 percent in 2017.
- In the same vein, the percentage of people living below the national poverty line decreased from 23.2 percent in 2007 to 8.2 percent in 2017.
- Bhutan has mostly accomplished this by increasing exports of hydropower to India, which now accounts for 20 percent of its economy.
- The nation also established Brand Bhutantoo to diversify exports while acknowledging the modest size of its local market.
- The idea was to target high-end markets with specialized exports of high-value, low-volume Bhutanese goods.
- Their goods come from sectors of the economy including textiles, tourism, handicrafts, culture, and natural resources.
9. Advantages of being an LDC
- Being an LDC confers certain economic benefits to the listed country. As such, advancing out of the list is often only the first step in overall development.
- To begin with, due to their reliance on exports of raw materials, LDCs are suffering badly from the most recent decline in raw materials prices.
- LDCs continue to be significantly more vulnerable to catastrophic natural and economic disasters, including threats from climate change, and, are significantly less prepared to handle such difficulties.
- Small island developing states, which make up 10 of the LDCs, are amongst the most affected by this.
- Importantly, LDCs also enjoy duty-free and quota-free (DFQF) access to the markets of developed countries. This means that LDCs are not restricted by trade restrictions or tariffs when exporting their goods to wealthier nations. For LDCs, this is a significant advantage because it enables them to expand their exports and get access to new markets, which can boost their economic development.
- A nation can lose access to the DFQF as it transitions from being an LDC to a middle-income developing nation. As a result, a nation that leaves the category of LDC may encounter new trade obstacles that it had not previously encountered, making it more challenging for it to expand its exports and get access to new markets.
- LDCs are also eligible for loans with special terms for development, which include loans with a lower interest rate and a longer repayment time than those given to other nations.
- The term “Official Development Assistance” (ODA) or “aid” is frequently used to describe this form of support. This money is intended to aid LDCs in their initiatives to meet their fundamental requirements, promote sustainable economic growth and development, and fight poverty.
Previous year Question
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1. Which of the following statements about the 'Nairobi Package' adopted in the Tenth Ministerial Conference of WTO is/are correct? (UPSC CAPF 2015)
1. No safeguard mechanism for developing country members.
2. Preferential rules of origin for least developed countries.
3. Public stockholding for food security purposes.
Select the correct answer using the code given below:
A. 1 only
B.1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: C
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For Prelims & Mains
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For Prelims: United Nations (UN) list of Least Developed Countries (LDC), United Nations Organisation (UNO), Duty-free and quota-free (DFQF), Gross national income (GNI), UN resolution 2768, Official Development Assistance (ODA), Nutrition, Health, and Education.
For Mains: 1. What is a Least Developed Country? Discuss the significance and advantages of being a least developed Country(LDC).
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Source: The Indian Express
