Current Account Deficit widens to 9 year high, EC outlined remote voting for migrant workers, First 3D printed dwelling unit for soldiers
Current Account Deficit (CAD) widens to 9-year high
India’s current account balance recorded a deficit of $36.4 billion (or a nine-year high of 4.4% of GDP) in the quarter that ended September, rising from $18.2 billion (2.2% of GDP) in the previous quarter.
What is Current Account Deficit (CAD)?
● A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
● This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
● A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.
Current Account Deficit (CAD) = Trade Deficit + Net Income + Net Transfers
● Trade Deficit = Imports – Exports
● A Country is said to have a trade deficit when it imports more goods and services than it exports.
● Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.
● A trade deficit represents an outflow of domestic currency to foreign markets.
● Net Income = Income Earned by MNCs from their investments in India.
● When foreign investment income exceeds the savings of the country’s residents, then the country has net income deficit.
● This foreign investment can help a country’s economy grow. But if foreign investors worry they won’t get a return in a reasonable amount of time, they will cut off funding.
● Net income is measured by the following things:
1. Payments made to foreigners in the form of dividends of domestic stocks.
2. Interest payments on bonds.
3. Wages paid to foreigners working in the country.
● In Net Transfers, foreign residents send back money to their home countries. It also includes government grants to foreigners.
● It Includes Remittances, Gifts, Donation etc
How does Current Account Transaction takes place?
● While understanding the Current Account Deficit in detail, it is important to understand what the current account transactions are.
● Current account transactions are transactions that require foreign currency.
● Following transactions with from which component these transactions belong to :
1. Component 1 : Payments connection with Foreign trade – Import & Export
2. Component 2 : Interest on loans to other countries and Net income from investments in other countries
3. Component 3 : Remittances for living expenses of parents, spouse and children residing abroad, and Expenses in connection with Foreign travel, Education and Medical care of parents, spouse and children
What are the reasons for the current account deficit?
● Intensifying geopolitical tensions and supply chain disruptions leading to crude oil and commodity prices soaring globally have been exerting upward pressure on the import bill.
● A rise in prices of coal, natural gas, fertilizers, and edible oils have added to the pressure on trade deficit.
● However, with global demand picking up, merchandise exports have also been rising.
How will a large CAD affect the economy?
● A large CAD will result in the demand for foreign currency rising, thus leading to depreciation of the home currency.
● Nations balance CAD by attracting capital inflows and running a surplus in capital accounts through increased foreign direct investments (FDI).
● However, worsening CAD will put pressure on the inflow under the capital account.
● Nevertheless, if an increase in the import bill is because of imports for technological upgradation it would help in long-term development.
EC outlined remote voting for migrant workers
The Election Commission (EC) announced that it is ready to pilot remote voting for domestic migrants, so they don’t have to travel back to their home states to vote. This comes on the back of EC’s acknowledgement of migration-based disenfranchisement.
Migration-based disenfranchisement
1. As per the 2011 census (the numbers will have risen since then), there are nearly 45.36 crore migrants in India (both intra and interstate) – amounting to approximately 37 per cent of the country’s population.
2. Migration can be driven by a variety of different reasons from marriage to natural disaster to employment.
3. According to EC’s concept note for Remote Electronic Voting Machine (RVM), “voters who are absent from their home locations on the day of polling, even if they wish to vote, are unable to travel to vote due to various reasons.
4. This means that there is a large chunk of the population which is denied its franchise due to exigencies of work or lack of resources to travel. This goes directly against the EC’s “No voter left behind” goal.
The proposed solution
1. The EC had formed a “Committee of Officers on Domestic Migrants”, which submitted a report in late 2016 after considering various possible solutions such as internet voting, proxy voting, early voting and postal ballots for migrant workers.
2. However, all of these ideas were rejected due to reasons such as the lack of secrecy of the vote, the lack of sanctity of one person one vote principle, issues of accessibility for unlettered voters, etc.
3. Thus, a technological solution was proposed which relies on the creation of a robust electoral roll and identification mechanisms (to stop duplicate voting), and allow voters to vote remotely, in a safe and controlled environment.
4. The RVM was developed with the assistance of Bharat Electronics Limited (BEL) and the Electronics Corporation of India Limited (ECIL). It is based on the currently used EVM system.
More about RVMs
1. The RVMs are “stand alone, non-networked systems,” effectively providing the voter the same experience as currently used EVMs.
2. They will be set up in remote locations outside the state under similar conditions as current polling booths.
3. The unique feature of RVMs is that a single Remote Ballot Unit (RBU) will be able to cater to multiple constituencies (as many as 72) by using a “dynamic ballot display board” instead of the usual printed paper ballot sheet on EVMs.
4. The Ballot Unit Overlay Display (BUOD) will show the requisite candidates based on the constituency number read on the voter’s Constituency card. A barcode scanning system will be used to read these cards.
First 3D-printed dwelling unit for soldiers
The Army has inaugurated its first 3D-printed dwelling unit for soldiers at Ahmedabad Cantonment, the defence ministry said. 3D printing technology uses complex software and a robotic unit that helps in creating a structure through multiple stages from a digital model.
More about the unit
1. The Indian Army inaugurated its first 3D-printed house dwelling unit (with ground-plus one configuration) for soldiers at Ahmedabad Cantonment on 28 December 2022, the ministry said in a statement.
2. The dwelling unit has been constructed by the Military Engineering Services (MES) in collaboration with MiCoB Pvt Ltd incorporating the latest 3D rapid construction technology.
3. Construction work of the dwelling unit measuring 71 sqm with garage space was completed in just 12 weeks by utilising the 3D-printed foundation, walls and slabs.
4. The disaster-resilient structures comply with zone-3 earthquake specifications and green building norms.
5. The 3-D printed houses are symbolic of the modern-day rapid construction efforts to cater for growing accommodation requirements of the armed forces personnel.
6. This structure also stands testament to the commitment of the Indian Army in fostering the ‘Atmanirbhar Bharat Abhiyan‘.
7. The technique utilises a concrete 3D printer that accepts a computerised three-dimensional design and fabricates a 3D structure in a layer-by-layer manner by extruding a specialised type of concrete specifically designed for the purpose.
Flashback
1. Indian Army units have already dovetailed 3D printing technology in the construction of pre-casted permanent defences and overhead protection meant for operations.
2. These structures are currently being validated over a period of one year and can be seen being incorporated in all terrains, the recent being in the UT of Ladakh.
Leveraging voice technology to combat cyber-fraud
According to data by the Reserve Bank of India, frauds have cost the country an estimated ₹100 crore a day over the last seven years. The frauds reported in 2021-22 were 23.69% higher than in the previous year (9,103 cases reported compared to 7,359 in 2020-21.
More about the news:
1. The main reasons for the rise in fraud include greater use of digital payments, telephone banking, and online banking services.
2. Growing fraud also means rising losses for financial institutions and increasing cases for law enforcement to solve.
An emerging technology:
1. One way to reduce losses is by adopting Voice Technology (VT), which encompasses voice biometrics or voice/speech recognition technology.
2. The global adoption of smartphones has led to a dramatic increase in biometrics for security; these methods are cumbersome, not entirely secure, and vulnerable to deep fakes.
3. With banks and establishments looking for ways to reduce fraud and identity theft risks, one of the best ways to do this is through the use of voice biometrics.
4. An emerging technology, it uses the unique characteristics of a person’s voice as identification. The technology creates a digital voiceprint and compares it to a caller’s voice.
Its advantages:
1. Compared to other biometrics, voice use is the cheapest technology, and does not require a reader or special device. It is also non-invasive, portable and affords remote identification.
2. Unlike a password, a customer’s voice is impossible to spoof or copy, and is far more challenging to hack.
3. VT verifies a caller swiftly in seconds by analysing the caller’s voice and flags suspicious calls. VT allows privacy because it does not require users to reveal personal information.
4. Voice biometrics can help financial institutions to ensure higher levels of protection for customers and employees. In February 2019, HSBC became the first bank to take the revolutionary leap in introducing voice recognition for mobile banking customers, telephone banking fraud cases fell by over 50%.
5. The voice biometrics industry is growing exponentially now. Experts expect the market to reach a market size of $3.9 billion by 2026, with a compound annual growth rate of 22.8%.
National Archives of India
The National Archives of India (NAI) does not have records of 1962, 1965, and 1971 wars, or even of the Green Revolution, as told by its Director-General. The admission shocked historians, with many calling this a ploy by successive governments to control the narrative, and saying that the country is losing its history.
NAI, the record-keeper:
1. The NAI, which functions under the Ministry of Culture, is the repository of all non-current government records, holding them for the use of administrators and scholars.
2. It was originally established as the Imperial Record Department in 1891 in Calcutta, the NAI is now located in Delhi.
3. It keeps and conserves records of the government and its organisations only, and does not receive classified documents.
4. The holdings in NAI are in a regular series starting from the year 1748, and the languages of the records include English, Arabic, Hindi, Persian, Sanskrit and Urdu.
5. NAI has also made efforts to make available all the records digitally on the newly created Abhilekh Patal portal.
How does it receive documents?
1. As per the Public Records Act, 1993, various central ministries and departments are supposed to transfer records more than 25 years old to the NAI, unless they pertain to classified information.
2. It is up to the respective ministries and departments to ascertain what classified information is, and that is where subjective opinions may kick in.
What it holds, and what’s amiss
1. There are in all 151 ministries and departments, and the NAI has only records of 64 agencies, including 36 ministries and departments.
2. Several Union ministries and departments have not shared their records with NAI.
3. It does not have any records of the Green Revolution, which we hail all the time, or the 1962 war, the 1965 war, and the 1971 war – the great victory.
Tamil Nadu worst performer in RTI responsiveness
The State Information Commission of Tamil Nadu has been the worst performing as far as responsiveness under the RTI Act is concerned, furnishing only 14% of the information sought for 2021-22.
● Maharashtra was second-worst, sharing 23% of the information asked for.
● Only 10 ICs provided full information in response to the RTI applications filed as part of this assessment.
● These included Andhra Pradesh, Haryana, Jharkhand and northeastern States of Sikkim, Nagaland and Tripura.
● Uttar Pradesh and Andhra Pradesh returned around 40% of the appeals or complaints received by them.
What is the Right to Information (RTI)?
● RTI is an act of the parliament that sets out the rules and procedures regarding citizens’ right to information.
● It replaced the former Freedom of Information Act, 2002.
● Under the provisions of RTI Act, any citizen of India may request information from a “public authority” (a body of Government or “instrumentality of State”) which is required to reply expeditiously or within 30.
● In case of a matter involving a petitioner’s life and liberty, the information has to be provided within 48 hours.
● The Act also requires every public authority to computerize their records for wide dissemination and to proactively publish certain categories of information so that the citizens need minimum recourse to request for information formally.
What led to the introduction of RTI in India?
There has been a variety of internal and external pressures on governments to adopt RTI.
● Corruption and scandals: The crisis was brought into force due to a lack of transparency in the working of the government.
● Modernization and the Information Society: The expansion of the Internet into everyday life has increased the demand for more information by the public, businesses and civil society groups.
● International pressure: The World Bank, the IMF and others have pressed countries to adopt laws to reduce corruption and to make financial systems more accountable.
● Wider recognition of Public Interest: Public interest is a nebulous concept, not defined in any freedom of information laws, understandably so, as it is a very subjective concept.
The Right to information in India is governed by two major bodies:
1. Central Information Commission (CIC) – Chief Information commissioner who heads all the central departments and ministries- with their own public information officers (PIO)s. CICs are directly under the President of India.
2. State Information Commissions (SIC)– State Public Information Officers or SPIOs head over all the state department and ministries. The SPIO office is directly under the corresponding State Governor.
State and CIC are independent bodies and CIC has no jurisdiction over the SIC.
Constitutional backing of the RTI
● The Indian constitution has an impressive array of basic and inalienable rights termed as fundamental rights contained in part-III.
● These include the right to equal protection of the laws and the right to equality before the law, the right to freedom of speech and expression also the right to life and personal liberty.
● Since RTI, is implicit in the Right to Freedom of Speech and Expression under Article 19 of the Indian Constitution, it is an implied FR.
● These are backed by the right to constitutional remedies that is, the right to approach the supreme court and high court under Article 32 and 226 respectively in case of infringement of any of FRs.
● The state is not only under an obligation to respect the FRs of the citizens but also equally under an obligation to ensure conditions under which the right can be exercised.
● The objective of the right to information act is to protect these constitutional rights.
● Greater accessibility of information: A person can seek information from any public authority in the form of copies, floppy disks, sample material etc under RTI.
● Efficient governance: RTI Act helps us in knowing the efficiency of the government functioning.RTI has become a reality consistent with the objectives of having a stable, honest, transparent and efficient government.
● Citizen’s participation: Information under RTI can be sought easily by requesting the public officer and assistant public officer in any public authority.
● Government obligation: Obtaining information from any public authority is obligatory for them.
● Maintenance of public record: Under RTI Act, it is the duty of public authorities to maintain records for easy access and to publish within 120 days the name of the particular officers who should give the information and in regard to the framing of the rules, regulations etc.
● Empowerment of Citizens: Every citizen has been empowered to be informed about anything that affects their life directly or indirectly.
● Not an absolute right: The RTI and Right to Privacy are not absolute rights, both the rights, one of which falls under Article 19(l)(a) and the other under Article 21 can obviously be regulated, restricted and curtailed in the larger public interest.
● Subjected to restrictions: The RTI, being integral part of the right to freedom of speech, is subject to restrictions that can be imposed upon that right under Article 19 (2).
● Limitations under the rules: Rule 4 of RTI Act puts word limit (No. of words needed in different language is different to express the same idea) as 250 words. Word Limit, The Hidden power of Information Officer, is the cause of rejection of an application.
● Only information already available on record is accessible: The RTI Act provides access only to that information that existent and is available in records of the public authorities.
● Certain information may constitute contempt of court: Any information, the disclosure of which is expressly barred by any Court of law or tribunal or, which may constitute contempt of Court under the Contempt of Court Act, 1971, cannot be released.
● Information causes a breach of privilege: The Constitution of India provides some privileges to the Parliament and the State Legislature, so it is clear that such information cannot be issued by the public authority.
● Information relating to Intellectual Property and trade secrets: Any information, including commercial confidence, trade secrets or intellectual property cannot be disclosed.
● Speedy disposal: The increasing backlog of cases is exacerbated by the fact that most Commissions are functioning at reduced capacity.
● Prioritization of cases: There should be a prioritization of cases dealing with information related to life and liberty.
● Digitalization: Governments should put in place a mechanism for online filing of RTI applications and bring all authorities under one platform.
● Reducing technicalities: The technicalities of filing an RTI application should be more simplified. The literacy rate of rural India is quite low and thus they find it quite difficult to comply with the procedural.
● Protecting whistleblowers: There is an urgent need to protect the whistle blowers who are targeted or attacked so easily.
1 Comment
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