Context: The Indian government has been facing issues related to the migration of its citizens, particularly to the United States, as desperate Indians seek better livelihoods and opportunities abroad.

Background:

India has a significant diaspora, with over 29 million Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing outside the country. The Indian diaspora is the world's largest overseas diaspora, and every year, around 2.5 million Indians migrate overseas, making it the highest annual number of migrants in the world. From November 2022 to September 2023, up to 96,917 Indians were arrested while crossing illegally into the US alone. This highlights the growing number of Indians leaving the country in search of decent livelihoods.

Reasons for Indians Leaving the Country:

   The reasons for Indians leaving the country are multifaceted and include:

• The main issue is the perceived favoritism in government jobs for those who pay money or are well-connected, leading to frustration among those who cannot afford it.

• Lack of well-paying private jobs in India.
• Difficulty in securing government jobs without financial means or connections.
• Wealthy individuals seeking better opportunities and acquiring foreign citizenship through investment programs.
• Rising demand for school education that enables admission overseas, indicating the middle class's desire to leave India.
• Fear of harassment by government agencies, particularly among the wealthy.

What Needs to Be Done:

   To address the out-migration of Indians, several measures can be considered, such as:

   - Creating more well-paying private job opportunities in India.

   - Reforms in the government job recruitment process to ensure transparency and equal opportunities.

   - Providing a conducive environment for investment and business growth to retain wealthy individuals.

   - Improving the overall quality of life, safety, and opportunities in India to reduce the desire to migrate.

The Indian government has responded to the issue of Indians leaving the country through various measures and initiatives. These include:

• Strengthening Online Mechanisms: The government has strengthened its online mechanism to address the problems faced by the Indian diaspora in foreign countries
• Emphasizing the Need for Improved Living Conditions and Opportunities: Experts have highlighted the need for India to create more opportunities and focus on improving living conditions and education to prevent migration. They have emphasized that a large number of Indians are giving up their citizenship, and the pursuit of economic gains, better quality of life, and lower tax rates in other countries are some of the reasons for migration
• Recognizing the Significance of the Indian Diaspora: The Indian government has recognized the significance of the Indian diaspora in enhancing India's soft power, economic contribution through remittances, and the role of the diaspora in bridging the gap between India and other countries

Conclusion:

 The article underscores the need for India to address the factors driving its citizens to leave the country and to create an environment that encourages them to stay and contribute to the nation's growth and development. Additionally, recognizing the Indian diaspora as an asset and creating policies to engage and benefit from their knowledge and expertise can contribute to India's national development.

SOURCE: IE

Context: The current nuclear order has evolved over time, with nine states possessing nuclear weapons: the United States, Russia, France, the United Kingdom, China, India, Pakistan, Israel, and North Korea

Background: The global nuclear order is the process by which nuclear weapons affect the world order, dominated by powerful states, mostly from the Global North, with excessive  influence by nuclear weapons states (NWSs). The nuclear status quo is institutionalized in the United Nations.

News:

• The global nuclear order is under strain due to various factors such as North Korea’s nuclear program, the Iran nuclear deal, and the Trump administration’s decision to pull out.
• The African nuclear weapon-free zone treaty (Pelindaba Treaty) is central to challenging the global nuclear order.
• India’s relationship with the global nuclear order has strengthened at a modest pace between 2014 during the first term of Prime Minister Narendra Modi.

Issues:

• The global nuclear order is facing various issues such as the growing divide between nuclear haves and have-nots, North Korea’s nuclear program, and the Iran nuclear deal.
• The global nuclear order is facing increasing tension, with many states feeling that the structure and distribution of benefits is unjust. This tension is primarily due to debates and disputes in global forums such as NPT Review Conferences or at the IAEA.
• The existing order primarily benefits states that developed nuclear technology earliest and wrote the rules, leading to frustration among states that feel their interests are not completely served by the existing system.
• The evolution of the nuclear order will likely be driven by middle-ground states that have developed nuclear technology but whose interests are not completely served by the existing system.
• These states, such as Argentina, Brazil, China, India, and Pakistan, are particularly important in determining how the nuclear order will adapt. The future of the nuclear order will depend on how these states navigate the existing system and whether they choose to work within it or seek to change it.
• The global nuclear order is also facing a crisis of the nuclear non-proliferation regime, with frustration about the lack of nuclear disarmament and concerns about the humanitarian consequences of nuclear weapons.
• The changing geostrategic context, the breakdown of nuclear arms control, intra-regime conflicts, the relationship between the Treaty on the Prohibition of Nuclear Weapons (TPNW) and the NPT, and current proliferation crises are all contributing to the crisis of the nuclear non-proliferation regime.

Treaties and agreements

The global nuclear order has evolved over time through various key treaties and agreements that have shaped the structure and distribution of benefits in the nuclear world. Some of the most important treaties and agreements that have shaped the global nuclear order include:

• Nuclear Non-Proliferation Treaty (NPT): The NPT is a landmark treaty that aims to prevent the spread of nuclear weapons and promote disarmament. It has been signed by 191 countries and is considered the cornerstone of the global nuclear order
• Treaty on the Non-Proliferation of Nuclear Weapons (TNP): **The TNP is another significant treaty that seeks to prevent the spread of nuclear weapons and promote disarmament. It has been signed by 110 countries and is an important component of the global nuclear order.
• Comprehensive Test Ban Treaty (CTBT): The CBTB is a treaty that aims to ban all nuclear testing, thereby reducing the risk of nuclear accidents and promoting disarmament. It has been signed by 183 countries and is an important aspect of the global nuclear order
• Convention on the Prohibition of Chemical Weapons (CWC): The CWC is a treaty that bans the production, stockpiling, and use of chemical weapons. While it does not specifically target nuclear weapons, it is an important component of the global nuclear order as it seeks to reduce the risk of chemical weapons being used in conflict
• International Atomic Energy Agency (IAEA) Safeguards Agreement: The IAEA Safeguards Agreement is a treaty that aims to ensure the peaceful use of nuclear energy and prevent its misuse for military purposes. It has been signed by 159 countries and is an important aspect of the global nuclear order

The global nuclear order has been facing a crisis due to various factors, such as the lack of nuclear disarmament, concerns about humanitarian consequences of nuclear weapons, and the changing geostrategic context

To address this crisis, several solutions can be considered:

• Cooperative resolution of power struggles among major powers: Restabilizing the global nuclear order requires a resolution to the power struggles among the major nuclear-armed statesThis can be achieved through diplomacy, dialogue, and cooperation in international forums.
• Reinvigorating the Nuclear Non-Proliferation Treaty (NPT): The NPT is a central element of the global nuclear order, and its strengthening is essential for addressing the crisisThis can be achieved by addressing the concerns of member states, promoting disarmament, and ensuring the humanitarian consequences of nuclear weapons are considered.
• Improving the distribution of benefits: Many states feel that the structure and distribution of benefits in the global nuclear order are unjust Addressing this issue requires a reevaluation of the existing order and finding ways to distribute benefits more equitably.
• Involving middle-ground states: The evolution of the global nuclear order will likely be driven by middle-ground states that have developed nuclear technology but whose interests are not completely served by the existing system. Engaging these states in the decision-making process and providing them with incentives to work within the existing framework can help stabilize the global nuclear order.
• Re-evaluating risk reduction measures: Nuclear risk reduction mechanisms should be reassessed to ensure they are effective and impartial. This can be achieved by revisiting global risk reduction norms, including the Comprehensive Test Ban Treaty Organization (CTBTO), and generating a broader debate on identifying caveats in nonproliferation and risk reduction.
• Promoting Nuclear Responsibilities: Approaching the issue through the Nuclear Responsibilities Toolkit allows for identifying fractures in the global nuclear order and generating consensus and constructive discussions on these issues. This can help pave the way for a more secure and stable global nuclear order.

In conclusion, addressing the crisis in the global nuclear order requires a combination of cooperative efforts, reevaluation of existing institutions and treaties, and involving key states in the decision-making process. By implementing these solutions, the international community can work towards a more stable and secure global nuclear order.

Context: The newly elected far-right President of Argentina, Javier Milei, pulled out of plans to join the BRICS bloc. Argentina was set to join on January 1, 2024.

Reasons for withdrawal:

• The decision to join BRICS had been taken by the previous administration, and the new dispensation was reviewing such policies. Milei cited China's communist ideology as a pivotal factor in Argentina's decision to disengage from BRICS.
• The Brics alliance is often portrayed as promoting a more multipolar world, but it is economically dominated by China, which accounts for more than 70% of the bloc's combined GDP.
• Milei has strongly criticized China and has pledged to pursue a foreign policy that aligns with Western countries, moving away from the previous administration's efforts to build ties with other developing countries.

BRICS

• BRICS, initially known as BRIC, is an acronym that represents an intergovernmental organization comprising Brazil, Russia, India, China, and South Africa.
• The term was coined by Goldman Sachs in 2001, and South Africa was added to the group in 2010. Together, the BRICS countries represent a significant portion of the world's land mass, population, GDP, and global trade.
• The organization was established to deepen economic cooperation, development financing, political coordination, social and cultural exchanges, technology and innovation, sustainable development, and peace and security.
• The principles governing BRICS relations include solidarity, openness, pragmatism, neutrality regarding third parties, and a non-bloc nature.
• The organization seeks to establish deeper ties between member nations and cooperate on economic and political matters. Over the years, BRICS countries have come together to deliberate on important issues under the three pillars of economic and financial and cultural and people to people exchanges.

Context: India and Pakistan exchanged the list of nuclear installations, covered under the Agreement on the Prohibition of Attack against Nuclear Installations and Facilities.

About:

• India and Pakistan have a history of exchanging lists of their nuclear installations under a bilateral pact that prohibits the two sides from attacking each other's atomic facilities.
• This agreement, signed in 1988, mandates the two countries to inform each other of nuclear installations and facilities to prevent any conflict or misunderstanding.
• The 33rd consecutive exchange of such lists between the two countries took place on January 1, 2024, through diplomatic channels in New Delhi and Islamabad.

Significance:

• This is the 33rd consecutive exchange of such lists between the two countries, the first one having taken place on January 1, 1992.
• The exchange of the list came amid weakening ties between the two countries over the Kashmir issue as well as cross-border terrorism.
• The agreement mandates both countries to inform each other about any nuclear installations and providing a confidence-building security measure environment.

How does the exchange of nuclear installations between india and pakistan impact global nuclear security?

• The exchange of nuclear installations between India and Pakistan impacts global nuclear security by promoting transparency and confidence-building measures between the two countries.
• This practice, which has continued for over three decades, serves as a bilateral pact that prohibits the two sides from attacking each other's atomic facilities. By exchanging these lists, both countries are able to maintain awareness of the other's nuclear installations, which can help prevent misunderstandings and reduce the risk of accidental conflict.
• This practice contributes to regional stability and enhances global nuclear security by promoting open communication and reducing the potential for miscalculation or unintended escalation.

Context: India is considering proposals to connect Bangladesh’s Matarbari Port to Northeastern States.

About:

Matarbari Port is a deep-sea port under construction at Matarbari in Maheshkhali Upazila of Cox's Bazar District, Bangladesh. Some key details about the port include:

- Type of harbor: Artificial

- Construction started in 2011

- Located near the Bay of Bengal coast

- Modeled after the Kashima Port in Japan, but 2.5 times larger in terms of construction

- Connection to the sea will be made through building breakwater dams to prevent silting up

- Japanese funding and technical assistance involved in the project

Significance:

- Expected to become South Asia's commercial hub due to strategic location

- Planned to reduce pressure on the Port of Chittagong

- Transformation of Matarbari into an industrial hub, increased trade, job opportunities, and economic growth

- Development of a special economic zone, including a logistics park, power plants, and LNG terminal

Recently, the Financial Intelligence Unit India (FIU IND) issued show-cause notices to 9 offshore virtual digital asset service providers (VDA SPs) like Bitfinex and MEXC Global, among others.

What is FIU-IND?

• Established in 2004 under the Finance Ministry.

• Aim: To act as a nodal agency for receiving, analyzing, and disseminating information relating to suspected financial transactions.

• Function: It receives reports from private and public sector banks every month, which are
  • Cash transaction reports (CTRs)
  • Suspicious transaction reports (STRs)
  • Cross-border wire transfer reports
• It is based on the mandate of the Prevention of Money Laundering Act, 2002 (PMLA).
• Cash transaction reports It is mandatory for banks in India to furnish a monthly CTR to the FIU on
• • All transactions over Rs. 10 lakh or its equivalent in foreign currency
  • A series of integrally connected transactions that add up to more than Rs. 10 lakh or its equivalent in foreign currency

What are Virtual Digital Assets (VDA)?

According to the Financial Action Task Force (FATF), a virtual asset service provider (VASp) can be any natural or legal person who conducts activities like carrying out transfers of virtual assets, administering them, or overseeing their sale by an issuer’s office.

• India’s Union Budget for 2022-23 for the 1^st time defined VDA in the newly-inserted clause (47A) under Section 2 of the Income Tax Act, 1961.

VDA – It refers to

• • any information or code or number or token
  • generated through cryptographic means
  • providing a digital representation of value exchanged  with the promise of having inherent value
  • or functions as a store of value or a unit of account
  • can be transferred, stored or traded electronically
• Thus it includes cryptocurrencies, DeFi (decentralized finance), and non-fungible tokens (NFTs).

Indian currency and foreign currency,

As defined under the Foreign Exchange Management Act of 1999, have been excluded from the ambit of VDAs.

• Tax in India – 30% income tax on gains made from cryptocurrencies and also rules regarding 1% tax deducted at source on cryptocurrency came into effect.
• Compliance: Entities dealing in VDAs, crypto exchanges, and intermediaries are considered ‘reporting entities’ under PMLA and thus brought under anti-money laundering/counterfinance of terrorism regulations.
• Obligations: To verify the identities of onboarded clients and maintain records of their financial positions and potentially suspicious transactions.
• Applicability: To all VDA SPs operating in India irrespective of physical presence.
• The entities, though catering to a substantial part of Indian users, were not getting registered and coming under the Anti Money Laundering (AML) and Counter Financing of Terrorism Network (CFT) framework’.

Currently, 31 VDA SPs have registered with FIU IND.

• Significance: It would ensure a lack of anonymity and businesses not encounter multiple hurdles.

Some global regulations of VDA SPs are the Dubai Virtual Assets Regulatory Authority (VARA) in Dubai and the Markets in Crypto-Assets Regulation (MiCA) in the European Union.

What approaches emerge when looking to regulate VDAs?

• The Bureau for International Settlements (BIS), has considered provisions to regulate VDA in its report about financial stability from crypto assets in emerging economies.
• Policy options under consideration are outright ban, containment and regulation. 
  • An outright ban – It may not prove enforceable because of the pseudo-anonymous nature of crypto markets and there could be a possibility that regulators become non transparent.
  • Containment – It would imply controlling the flows between crypto markets and traditional financial systems or limiting their connections.
  • But it would not address the vulnerabilities inherent in the crypto markets and could result in financial stability risks. 
  • Regulation –The report holds that it must be ensured that benefits of regulating and supervising are greater than the costs involved.
• Challenges – Issues for emerging market economies (EMEs) are
  • Defining the (regulatory) authority or entity
  • Defining their scope of regulation
  • Filling in the data gaps to understand the technology and interconnections

Water Governance poses one of the biggest challenges in modern-day India that looks out for definitive solutions.

Every place and every community have their unique stories and problems associated with water, wherein the governance addresses complications of the governor than the benefits of the governed.

How this scare water resource is to be allocated? How to generate livelihood in the food-energy nexus? How to keep the order of the biosphere balanced.

Key aspects of water governance:

The key aspects of an effective system of water governance in a water-blessed country include a comprehensive policy followed by an action plan to formulate the policy.

We need to emphasize the importance of resource literacy on water and building institutions in line with framed policies.

Experts prescribed the top-down approach and definition of ‘per capita availability’ to be rechecked and substituted with a bottom-up approach and relevant definitions, that is, a more localized treatment of governing water.

India aspires to become the 2^nd largest economy by 2047 which will have an enormous impact on the use of water resources and thus highlight the need for effective water governance.

• Water governance: The OECD defines water governance as the set of rules, practices, and processes through which decisions for the management of water resources and services are taken and implemented, and decision-makers are held accountable.
• Actors involved: Central and local governments, regulators, NGOs, communities, and the private sector.

Need for water governance: India is a water-stressed country due to erratic rainfall and excess removal of groundwater.

• The data (1990-2021) show that about 30% of the districts received less than normal Southwest monsoon rainfall in 20 out of 32 years.
• Out of 766 districts, 256 districts are water-stressed.
• By 2050, India is likely to experience water scarcity.
• There are bureaucratic hurdles like the Easement Act 1882, which is still followed, which gives unlimited power of groundwater withdrawal to the owner of the land.
• There is a lack of equity in water access.

At 1.4 billion, India accounts for 17.5% of the world’s population but has only 4% of the freshwater resources. The per capita annual freshwater availability has gone down from 5177 cu m (1951) to 1486 cu m (2019).

What is the significance of water governance?

• It ensures the sustainable and efficient use of water resources and addresses water-related challenges.
• It promotes equitable access to water services.
• It is also essential to address water-related challenges, such as water scarcity, water quality degradation, and climate change.

What are challenges in water governance?

• Fragmented policies: Owing to different jurisdictions and control of states, the interconnectedness of surface and groundwater systems resulted in fragmented policies.
• Data gaps: data is scattered across multiple agencies and inadequate for sound decision-making.
• Looming Water Crisis: A NITI Aayog report held that 21 major cities are expected to run out of groundwater as soon as 2020, which may affect nearly 100 million people.
• Absence of River Boards: While the River Boards Act was passed in 1956, no river board was ever created till this date.
• Federal issue: In India, water is a state subject enter-state except for inter-state regulation of rivers, which is under the Central purview.

What is the agenda for action?

• To work for cooperative federalism in water governance.
• To revamp the existing National Water Resource Council.
• To introduce an overarching institution for regulating the entire water sector at the state level. At present, only 5 states have water regulators in India.
• To develop a model water regulatory framework for adoption by various states.
• To restructure the CWC (Central Water Commission) and CGWB (Central Ground Water Board).
• To adopt multidisciplinary expertise, bridging silos in the water sector, and building multi-stakeholder partnerships.