SYNOPSIS- IASbaba’s TLP 2017 [28th March] – Day 52

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1.Make in India along with the implementation of the Goods and Services Tax (GST) can transform the economy. Elaborate.

Make in India is probably the biggest initiative to put India on the World map as the biggest manufacturing hub and to transform India’s economy by increasing the share of manufacturing in India’s GDP to 24% by 2020.

GST is probably the biggest economic reform after the 1991 economic reforms.

The question asks you to make a connection between the two.

Apart from infrastructural shortcomings, there are certain institutional impediments which can hinder the success of Make in India, current tax laws are one of them. Several problems are:

Non Uniform tax laws.

Confusing and different state tax laws which discourages international firms to invest in India.

Because of tax the manufacturing is shifted to areas where the tax is less rather than the places where manufacturing is efficient. For example, in a place the manufacturing cost of a single unit is Rs 10 but tax is Rs5 per unit, which makes final cost as Rs 15, while at another, place, the per unit manufacturing cost is Rs 12 but tax is Rs 2 this makes final cost as Rs 14, so manufacturing units are shifted to the second place.

Once there are uniform tax rates, the manufacturing will automatically shift towards the more efficient area which will benefit in the long run.

Uniform tax laws will not only benefit the local industries but it will also attract foreign investors as they will have more faith in the market.

Uniform tax laws will also increase tax compliance and provide incentive to tax payers. This will generate more revenue and government will be able to invest more in infrastructure to boost growth.

(Note: this is the basic connection that you had to make between the two. If you are writing in point form, you can add more points to it. Read the best answer)

Best Answer: Neha

Make india program and the roll-out of GST are touted as the biggest steps towards transforming the economy .

Make in India would turn India into manufacturing hub and GST would create a uniform tax structure. The sluggish growth of manufacturing sector can be improved by Foreign investments and GST can be a tool to realise this vision. Various tax laws had caused the hindrance of growth of manufacturing sector which the GST can addres through its uniform tax structure.

1. Under GST the tax laws would be simplified and improve ease of doing business thus encourage industries to expand their business and which would help to boost jobs and thus provide jobs and thus realise the vision of Make in India and promote growth of Economy.
2. The GST tax regime would provide conducive atmosphere for setting up of companies which was earlier over riden with multiple taxes thus attract foreign investers.
3. Due to GST cascading effect on manufactured goods would come down making Indian products more competitive in the market..
4. GST would make the system more transparent thus promte tax compliance and reduce tax evasion and thus more revenue to govt which can be used for development of country.
5. India is blessed with rich demographic dividend and Make in India would become a tool to tap the potential of india and thus help to contribute to the growth of economy.
6. Under the make in India 25 priority sectors have been identified ranging from defense to textiles which would reduce india’s dependence on imports and thus would become self sustaining and turn from importer to an exporter.

Thus Make in India and GST if rightly implemented can go a long way in transforming India’s economy.

2. Why does India need smaller ports and airports today? Examine.

This can be seen as the continuation of the previous question.

Infrastructure is the basic requirement for the overall growth of economy. Right now there is a lot of pressure on the current ports and airports as far as the passenger and freight load is concerned. Some of the important reasons for having subordinate infrastructure are:

• It will release pressure from current infra. Which will let larger ports to tackle specialized and heavy goods.
• It will provide more connectivity to internal areas.
• It will support local manufacturers in transporting the goods faster and reduce the transportation time.
• Attract FDI
• Provide backend and forward end linkages.
• Boost tourism
• Provide sustainable employment on a large scale.
• Will reduce the load on roads.
• Railways has played a major role in uniting the country getting diverse people in touch with each other. Same role can be played by airways and waterways now.
• Smaller projects will be economically and environmentally viable as they’ll have smaller carbon footprint and lesser operational cost.

(Note: More points can be added. You need to remember that if you are writing separate points for ports and airports, you do not repeat the same points.)

Best Answer: Fara dar

What India was before fifty years ago is now totally different with respect to population seize, growth of industries, city growth and growing coordination between states. As sasikha rightly called modern world as global village due to highly interconnectedness.

Need of smaller ports

To mitigate the heavy lord on major ports

India is endowed with huge coastline of above seven thousand kilometers and huge turnover on western ghats like Mumbai, etc and every year about 1.3%turnover increase creating time lags

To facilitate transhipment

Minor ports and landlocked ports are immensely helping the internal trade by carrying inland cargo to major ports and then send to other countries

Better and unhindered passage

Compared to land transport, they are eco-friendly and efficient in terms of carrying capacity

Indias transformative initiatives like make in India, stand up India etc need greater number of these smaller ports for manufacturing sector, this will make resources available in real time

Need of smaller airports

Airport authority of India came up with a model of increasing number of airports to facilitate effective, accessible, affordable air transport for large population

The regional connectivity need to be accelerated as time demands it

It is more promising in northeastern states which have limited accessibility due to geographical constraints and government taking efforts (greenfield port in ap) ”

In that direction, last year ministry of transport came up with 20/5formula to enhance regional connectivity especially in low functional airports by reducing fare charges

In order to make India dynamic lies in building its every part a viable sources, it’s therefore need of hour to connect 1,213billion population in developing India through varrrious initiatives like make in India

3. What is Swiss Model and Hybrid Annuity? Where do they find relevance? Explain by taking suitable examples

Introduction:

Write a brief introduction.

Body:

Swiss challenge method is recently doing the rounds as the Railways has decided to redevelop 400 stations using this method. This refers to the government receiving an unsolicited bid from the private player. The government then published the bid, the other parties challenge the bid and the project is awarded. The original party is also given the chance to increase its bid.

This method is not new and has been used by multiple state governments in the past and has positive features

1. It reduces red tapism in the process of avoiding contracts as the bid is presented by the private players
2. It fosters innovation and enterprise in the infrastructure sector
3. Timeline of awarding contracts is shortened
4. An element of competition can be introduced by the modifying the model

It has a great potential for India:

1. India has a huge infrastructural deficit and this model can fill the gaps
2. Innovation is lacking in infrastructural sector and this model can foster much needed innovation
3. Since the project is initiated by the private sector itself, this model can help in doing away with the delays in PPP projects due to the private sector not able to take the risks

However, there are certain challenges too:

1. It can bring about crony capitalism
2. Since the government authorities might not have complete knowledge of the infrastructural requirements, this model might result in wasteful expenditure
3. A strong regulatory and legal framework to handle this model is absent

Conclusion:

Write a brief solution.

Best answer: Axi tak

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4.Do you think terrorism poses a great threat to globalisation? Critically examine.

Introduction:

Write a short introduction.

Body:

• Globalization has resulted into integration of economies, exchange of ideas and movement of people around the world. Now events too have global repercussions so does activities. it is argued that terrorism too has benefited from Globalization and threatens it, as can be seen from following,
• Globalization has made the world a smaller place. Information travels fast, and thus influences people it doesnt affect directly. This breeds self-radicalization and lone wolf attacks. (E.g. Bangalore IS techie)
• Terrorist organization have used the ICT to further their global agenda, gain sympathisers, funding and attract recruits (Social media mastery of ISIS, High no of UK and Maldives citizens joining, etc.).
• Rise of virtual currencies and use of dark net to transfer money and encrypted communication for terror purposes.
• Terrorism has led to rising Islamophobia and Anti-immigration sentiments in the west. This prevents collective solution to human tragedies (Eg refugee crisis), thus harming globalization.
• Targeting popular tourist destinations and places to terrorize tourist from other countries especially being visited by western nationals.
• Rising Hate crimes against immigrants and refugees (Sikhs in Australia, Muslims in America etc.) due to fears fueled by terrorism. This prevents cultural assimilation (another aspect of globalization)

Despite such developments it can also be stated that:

• Terrorism works on an exclusivist agenda. Thus, with the rise of a global village, heterogeneity of populations will mitigate, rather than be threatened by terrorism.
• Globalisation is still primary economic. Financial attractive centres in developed and emerging markets remain relatively immune to the threat of terrorism (Except Paris.)
• Rise of social media and virtual world have helped in bringing people from all corners of the world together developing a sense of common world.
• Globalization allows for show of solidarity in the face of terrorism (Rise of a global citizenry and common humanity, e.g. Not in my name movement after the Paris attacks). This helps calm fears and prevent spread of misinformation, thus mitigating the plans of terrorists.

CONCLUSION:

Write suitable conclusion.

BEST ANSWER:  abhishekrwt597

Globalisation has led to tremendous growth in the global economy, helping some countires achieve high prosperity and also facilitate the diffusion of global capital, labour,etc.

However, it is argued that terrorism too has benefited from Globalisation and threatens it as:

1)Globalisation has made the world a smaller place. Information travels fast, and thus influences people it doesnt affect directly. This breeds self radicalisation and lone wolf attacks.(Eg Bangalore IS techie)

2)Terrorist organisation have used the ICT to further their global agenda, gain sympathisers, funding and attract recruits(Social media mastery of ISIS,High no of UK and Maldives citizens joining, etc).

3)Terrorism has led to rising Islamophobia and Anti immigration sentiments in the west. This prevents collective solution to human tragedies(Eg refugee crisis), thus harming globalisation.

4)Economic interests of companies seeking cheaper labour too are affected by Terrorism activities(Rising ethnocentricism and america first in US, H1B visa issues, Brexit driven by fear of unemployment,etc).

5)Rising Hate crimes against immigrants and refugees(Sikhs in Aus, muslims in America,etc) due to fears fuelled by terrorism. This prevents cultural assimilation(another aspect of globalisation)

But it can also be stated that:

1)Terrorism works on an exclusivist agenda. Thus, with the rise of a global village, heterogeneity of populations will mitigate, rather than be threatened by terrorism.

2)Globalisation is still primary economic. Financial attractive centres in developed and emerging markets remain relatively immune to the threat of terrorism(Except Paris.)

3)Globalisation allows for show of solidarity in the face of terrorism(Rise of a global citizenry and common humanity, eg Not in my name movement after the Paris attacks). This helps calm fears and prevent spread of misinformation, thus mitigating the plans of terrorists.

5. Should Aadhaar be made compulsory for availing the benefits of government schemes? Examine in the light of the recent SC judgement in this regard.

Introduction:

Aadhar is a 12-digit individual identification number issued by UIDAI (Unique identification authority of India) on behalf of Government of India to every resident of India. It is considered as major milestone in overhauling welfare governance model in the country. The government intends to link aadhar to various welfare schemes and programs and recently it was made compulsory to link it with bank accounts and for filing IT return.

Body:

Supreme Court made various observations about use of aaadhar.

Initially it countered the government push to make Aadhaar compulsory for access to social welfare schemes, the Supreme Court said obtaining the 12-digit Unique Identification number, which requires the holder to part with his personal bio-metric data, and using it to avail himself of government subsidy is a voluntary exercise.

However, a Bench led by Chief Justice of India in Supreme Court recently found no fault with the government’s choice to make Aadhaar mandatory for “non-welfare” activities like opening a bank account or filing Income Tax returns.

Benefits of Aadhar

1. Individual:

• Easy hassle free access to services (banking, LPG, phone number, etc).
• Migrants: Provides identification to large number of migrant labors to avail services.
• Financial inclusion: The identification enables easy opening of bank account leading to financial inclusion of rural folks and ease of operations for banks through Banking Correspondent.

1. Administrative:

• Online cost effective verification of beneficiaries leads to Good Governance (minimum government maximum Governance).
• Unique and robust platform to check duplication and ghost cards.
• Subsidy costs can be hugely reduced by cutting down intermediaries and eliminating ghost cards.

1. Reduction in fake identity:

• As only one identity card is provided to a person (linked to individual biometrics), there is incentive to be genuine.

The Lok Sabha’s recently-passed Finance Bill made Aadhaar mandatory for filing tax returns and getting a permanent account number (PAN).In recent government circulars government made Aadhaar mandatory to access welfare schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme and Employees Pension Scheme.

Making aadhar mandatory also have its fears and raises some serious questions about Privacy, data base security, sharing of information and complain and redressal mechanism. Also people would stand to lose benefits or be denied routine services unless they enrolled themselves. Aadhaar Card is also not still available to every eligible citizen of the nation many citizens are still to be enrolled under aadhar scheme.

Conclusion:

Write brief conclusion.

BEST ANSWER:  Axi Tak

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