18 August 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – Rohingya Muslims: GS III – Internal Security related issues

About:

• The most persecuted minority in the world, according to the UN, is the Rohingya Muslims.
• In 2017, they allegedly fled their homes due to a military crackdown in Myanmar.
• For decades, the minority Rohingya Muslims have left the predominantly Buddhist nation of Myanmar to neighbouring Bangladesh and other nations, notably India, in order to avoid prejudice and violence.

What Security Issues & Concerns Face India?

• Threat to National Security: It has been determined that the Rohingyas’ ongoing illegal immigration into India and their continuous presence there have major implications for national security and represent serious security threats.
• Conflict of Interests: In locations where there are significant influxes of illegal immigrants, it affects the interests of the local populace.
• Political Instability: It also worsens political instability when leaders begin to incite national sentiment against immigrants in an effort to seize political power.
• Rise of Militancy: Radicalization has taken the place of the ongoing attacks on Muslims who were thought to be illegal immigrants.
• People trafficking: In recent years, cross-border human smuggling and trafficking in women have grown very common.
• Law and Order Issues: Illegal immigrants who participate in illegal and anti-national activities are undermining the country’s integrity and rule of law.

Steps to Take:

• Despite not being a signatory to the 1951 Refugee Convention and its 1967 Protocol, India has been one of the top countries in the world to take in refugees. This highlights the need for a framework for refugee protection.
• Therefore, any tyrannical government in the region would have been discouraged from oppressing its population and forcing them to migrate to India if India had domestic legislation protecting refugees.
• South Asia Association for Regional Cooperation (SAARC) Framework on Refugees: India should take the lead in pressuring other SAARC members to create a convention or statement on refugees.

Source The Indian Express

2 – Custom Duty: GS III – Indian Economy related issues

About:

• The customs department of a nation assesses a fee on imports and exports known as a customs duty. Typically, it is determined by the cost of imported goods.
• It is occasionally employed as a tool to punish a certain country by levying excessive import taxes on its goods.
• The customs duty is a type of tax that the country’s customs authorities collect for the export and import of goods and services.
• Import duty is the name of the tax imposed on goods being imported, whereas export duty is the name of the tax imposed on goods being exported to another country.
• Import taxes are designed to bring in money for local governments while also giving locally produced or manufactured goods that are not subject to import tariffs a competitive edge.
• Both specific and ad valorem customs duty rates are based on the value of the items being imported.
• Customs duties must be paid on almost all imported goods.
• Food grains, fertilisers, and life-saving pharmaceuticals are excluded from customs taxes.
• In India, custom duty is defined by the Customs Act of 1962, and the Central Board of Excise & Customs is in charge of all related issues.

Factors used in the calculation of customs duties:

Customs duties are determined by a number of variables, including the following:

• The location where the commodity was purchased.
• Where the goods were produced.
• The goods’ composition.
• Dimensions and weight of the item, etc.

The benefits of customs duty:

• By controlling the flow of goods into and out of a country, particularly restricted and restrictive goods, customs duties aim to protect each nation’s economy, jobs, environment, and residents.
• Every good has a predetermined rate of duty that is based on a number of factors, such as where it was bought, where it was made, and what materials it is made of. This provides a clear picture of how the country taxes its international partners.
• Additionally, you must disclose anything you bring into India for the first time in accordance with customs laws. For instance, you must declare any goods you buy abroad and any gifts you receive from outside India.
• Promoting renewable energy, lowering non-essential imports, boosting domestic manufacturing, and increasing income can all be achieved through manipulating customs duties.
• While tax on finished goods can be raised to raise more money, duty on many inputs can be decreased to promote domestic manufacturing.

Customs duty disadvantages include:

• It is generally widely accepted that increasing import duties only works as an anti-dumping measure against another nation.
• Due to customs duty manipulation, the economy continues to struggle. As a result of a duty reduction in one area, manufacturers in other industry sectors will fiercely strive for similar protection from imports.
• Customs Duty reduces the economy’s ability to compete, which may lead consumers to accept subpar goods.
• The protection provided by raising the import duty is a reward for the continuing inefficiency of local firms, driving up the cost of goods.
• A protected environment would favour businesses that spend money on research and development, which would discourage innovation.
• Competing nations have already referred to the increase in customs tax as a violation of WTO regulations.
• It will be difficult to convince players like Japan, the EU, and the US of the validity of these hikes, even though India has employed emergency powers in its Customs laws to implement them.
• India’s reputation as a reliable trading partner could be damaged as a result, which would make foreign markets less welcoming to Indian goods.

Source The Hindu

3 – Emergency Credit Line Guarantee Scheme: GS II – Government Policies and Interventions

Objective:

• To give MSMEs, business enterprises, MUDRA borrowers, and individual borrowers with extra credit that is fully guaranteed and collateral-free for business purposes to the extent of 20% of their outstanding credit as of February 29, 2020
• While banks and non-banking financial institutions (NBFCs) offer loans, the National Credit Guarantee Trustee Company offers 100% guarantee coverage.

Eligibility:

• As of February 29, 2020, borrowers with credit balances up to Rs. 50 crore and a maximum annual revenue of Rs. 250 crore are eligible to participate in the scheme.
• On August 1st, the government expanded the reach of the Rs. 3 lakh crore-ECLGS programme by increasing the maximum amount of outstanding debt and bringing certain loans made to professionals like doctors, lawyers, and chartered accountants for commercial reasons inside its purview.
• The four-year loan term offered by the Scheme includes a one-year moratorium on principal repayment.
• Under the Scheme, interest rates for banks and other financial institutions (FIs) are restricted at 9.25%, while they are capped at 14% for NBFCs.

Current Situation:

• A total of Rs. 2.03 lakh crore has been sanctioned under the Scheme to 60.67 lakh borrowers so far, while a total of Rs. 1.48 lakh crore has been disbursed, according to data posted by Member Lending Institutions on the ECLGS portal.

Source The Indian Express

4 – National Security Act: Prelims Specific Topic

The NSA’s (National Security Act’s) details:

• A preventive detention law is the NSA.
• In preventive detention, a person is detained (contained) to prevent them from committing new offences or from eluding prosecution in the future.
• The Constitution’s Article 22 (3) (b) permits preventative detention and restrictions on personal freedom for the sake of public safety and state security.

According to Article 22(4):

• A person cannot be detained for more than three months under a legislation allowing preventive detention unless:
• A sufficient basis for continued detention has been reported by an advisory board.
• The detention term without seeking an advisory board’s opinion was cut from three to two months by the 44th Amendment Act of 1978. The old three-month period is still in effect because this provision has not yet taken effect.

Duration of Imprisonment:

• A person may be detained for a maximum of 12 months. However, if the government discovers new evidence, the sentence may be prolonged.
• A person may be detained for up to 10 days before learning the allegations pending against them. The defendant will not be permitted to have a counsel present during the trial but may appeal before a high court advisory body.

Concerns regarding potential abuse of this law:

• A person who has been arrested cannot be refused the right to speak with and be represented by a lawyer of his choosing, according to Article 22 (1) of the Indian Constitution.
• Any individual who is arrested must be advised of the reason(s) for the arrest and have the option of posting bail, as per Section 50 of the Criminal Procedure Code (CRPC).
• The person who is being held, however, is not able to exercise any of these rights under the National Security Act. The government has the power to withhold information that it deems would be against the interests of the public.

Source The Hindu