SERVICES and INVESTMENT pact with ASEAN

What signing of SERVICES and INVESTMENT pact with ASEAN means for INDIA ?

The 10 members ASEAN and India share an ancient and deep economic, cultural and societal ties which in contemporary times has received a greater thrust by India’s ‘Look East’ policy and the reciprocation of the same from the ASEAN member countries.

The economic ministers of the member states of ASEAN and Indian representatives assembled in Myanmar are expected to sign a services and investment trade pact. By signing this India takes an apprehensive step not only of “look east”, but also “act east”.




So what ACTUALLY 
is going to be signed ?

What now is going to be signed is the  free trade agreement(FTA) on services and investment (we already have signed one on TRADE )


REACH ?

The FTA if signed will be one of the largest FTAs in which the population of  1.8 billion with the combinedGDP of $2.8 trillion.

Benefits:

1. India being a net-exporter of services and the ASEAN countries net-importer of services, there is no doubt that both the sides are to be immensely benefited.

2. India’s strength in services will counter balance the strength of some ASEAN nations in primary goods and manufacturing.

3. This agreement will help India gain a greater market access for its professionals in some developed ASEAN member countries.

4. This agreement not only bring monetary benefits but also, benefit the customers by increasingcompetetion and introduction of more products and shelved prices.

5. This strengthens India’s vision of the world regarding look east policy and also places India in the evolving global economy.

6. By signing this agreement India can overcome the primary hurdles to the services free trade agreement which was subjected to apprehensive attitude of Philippines and Indonesia to India’s growing power in services segment.

7. It will also help in countering CHINESE DOMINANCE in the region .

How  can it benefit North - East ? 

Will help in North east region development and connectivity ,Manipur development as medical tourist spot,effective counter terrorism operations etc.

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Various stakeholders deriving benefit out of India’s services and investment pacts can be divided into two group: Domestic beneficiaries and ASEAN beneficiaries.

DOMESTIC BENEFICIARIES

(a) Government: Relaxation and syncronisation of investment regime will attract huge FDI from ASEAN who are preferred by Western MNCs to route their FDI to India.
(b) Service sector: Service sector, a growth driver of Indian economy since liberalisation will get new markets to foray.
(c) Factor and Non-Factor services: Especially labour and capital will have better options to explore.
(d) Infrastructure: New government’s dream of smart cities is linked with collaboration from SE Asian countries like Singapore.
(e) Education sector: Increased demand for service related skills will boost, diversify and raise the level of education sector to global standards.

ASEAN BENEFICIARIES

(a) Labour supply: ASEAN can access the technically skilled and globally cherished pool of Indian Engineers, Doctors and Research personnel.
(b) Economy: The productive capacity of ASEAN, that has stagnated offlate, will be rekindled with access to Indian market.
(c) Collaborative enterprise: In globally contested negotiation platforms ASEAN will get support of India’s diplomatic might.
(d) Regional strength: Emergence of regional bloc will leverage both ASEAN and India’s stand in globalisation process.

CERTAIN APPREHENSIONS ::--

Apart from multifarious benefits there are certain apprehension among ASEAN nations especially considering the advancement of Indian service sector. The competetion India offers in global market in areas like software, KPO, BPO etc. especially to Philippines and Thailand need to addressed if a sutainable and mutually prosperous FTA is to evolve.

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MISCELLANEOUS :- 

1.) Despite strong pressure from the US, India managed to remove any mention of the recent fiasco over the WTO’s trade facilitation agreement (TFA) in the final document of East Asia Summit economic ministers meeting.

2.)

Analysing various problems in Discoms

Discoms Problems

Geography

Geo-Youtube Videos

World history

WH -Youtube videos

Vector Borne Diseases

Vector borne Diseases- PIB

Regarding e-waste

http://www.ipublishing.co.in/ijesarticles/twelve/articles/volthree/EIJES31033.pdf

Wһаt іѕ e-waste?

Electronic waste (e-waste) comprises waste electronics/electrical goods tһаt аrе חοt fit fοr tһеіr originally intended υѕе οr һаνе reached tһеіr еחԁ οf life. Tһіѕ mауinclude items such аѕ computers, servers, mainframes, monitors, CDs, printers, scanners, copiers, calculators, fax machines, battery cells, cellular phones, transceivers, TVs, medical apparatus аחԁ electronic components besides white goods such аѕ refrigerators аחԁ air-conditioners. E-waste contains valuable materials such аѕ copper, silver, gold аחԁ platinum wһісһ сουƖԁ bе processed fοr tһеіr recovery.

Iѕ e-waste hazardous?

• E-waste іѕ חοt hazardous per se. Hοwеνеr, tһе hazardous constituents present іח tһе e-waste render іt hazardous wһеח such wastes аrе dismantledаחԁ processed, ѕіחсе іt іѕ οחƖу аt tһіѕ stage tһаt tһеу pose hazard tοhealth аחԁ environment.
• Electronics аחԁ electrical equipment seem efficient аחԁ environmentally friendly, bυt tһеrе аrе hidden dangers associated wіtһ tһеm once tһеѕеbecome e-waste. Tһе harmful materials contained іח electronics products, coupled wіtһ tһе fаѕt rate аt wһісһ wе′re replacing outdated units, pose a real danger tο human health іf electronics products аrе חοt properly processed prior tο disposal.
• Electronics products Ɩіkе computers аחԁ cellphones contain a lot οf different toxins. Fοr example, cathode ray tubes (CRTs) οf computer monitors contain heavy metals such аѕ lead, barium аחԁ cadmium, wһісһсаח bе very harmful tο health іf tһеу enter tһе water system. Tһеѕеmaterials саח cause ԁаmаɡе tο tһе human nervous аחԁ respiratory systems. Flame-retardant plastics, used іח electronics casings, release particles tһаt саח ԁаmаɡе human endocrine functions. Tһеѕе аrе tһе types οf things tһаt саח happen wһеח unprocessed e-waste іѕ рυt directly іחlandfill.

• They are biologically non-degradable. Some of the highly toxic substances found in E-waste and their ill effects on human beings are as follows –

• Lead – Lead is found in television and computer monitors on the glass panels. Exposure to high levels of lead can result in vomiting, diarrhea, convulsions, coma or even death. Other symptoms are appetite loss, abdominal pain, constipation, fatigue, sleeplessness, irritability, and headaches. Lead damages the central and the peripheral nervous system, the circulatory system, the reproductive system and mental development of young children.
• Cadmium – It is used in making semiconductor chips and cathode ray tubes (CRTs). Inhalation of cadmium can cause severe damage to the lungs, kidneys and can even cause death.
• Mercury – The electronic goods industry consumes about 22 per cent of all the mercury produced in the world. Mercury is used in the manufacturing of circuit boards, cell phones, and batteries. Mercury is also used in flat screen displays in television and computer monitors. Mercury causes severe damage to organs such like the brain and the kidneys.
• Barium – Barium is used to protect people from radiation from the cathode ray tube (CRT) screen panels. It can cause the brain to swell, weaken muscles and cause severe damage to the heart, liver and spleen.
• Beryllium – Beryllium is used in the electronics industry because it is light, strong, a good conductor of electricity and non-magnetic . However it is extremely harmful if inhaled and can cause lung cancer.
• Hexavalent chromium – Chromium is used to prevent corrosion in steel and in steel housing. Chromium can enter the body and is absorbed by human cells. Once in the body it has toxic effects on the body. It can also damage DNA.
• Poly-vinyl-chloride (PVC) – Poly-vinyl-chloride or PVC makes up for the largest percentage of plastic used in electronic equipment. An average computer contains about 13.8 pound of plastic, including PVC. The burning of PVC generates dioxins, a class of super-toxic chemicals that can damage the immune system and cause birth defects in children. PVC can also cause diseases such as brain and liver cancer.

Electronic Waste (Management and Handling) Rules 2011

• Dumping of e-waste, comprising electronic items like television sets, mobile phones and computers is illegal from now on. 
• It is also illegal to sell e-waste to local scrap dealers. 
• Under the Electronic Waste (Management and Handling) Rules 2011 such waste must be routed to one of 73 authorized recyclers in India. 
• As per the law, non-compliance can entail imprisonment or a fine. 
• As of now, these penalties are only for manufactures and bulk consumers. 
• India's e-waste had hit an all-time high estimated at around eight lakh metric tonnes in 2012.

The Ministry of Environment & Forests is implementing a Scheme to provide financial assistance for setting up of treatment, disposal and storage facility for hazardous and integrated recycling facilities for E-waste on public private partnership mode.

• The concept of Extended Producer Responsibility (EPR) has been enshrined in these rules. As per these Rules the producers are required to collect e-waste generated from the end of life of their products by setting up collections centers or take back systems either individually or collectively. E-waste recycling can be undertaken only in facilities authorized and registered with State Pollution Control Boards/Pollution Control Committees. Waste generated is required to be sent or sold to a registered or authorized recycler or re-processor having environmentally sound facilities. 

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What ails EPR in India

• “One of the major bottlenecks from the producers' viewpoint is lack of capacity and clarity in the directives given by the regulatory bodies which has made it difficult to implement EPR in India. 
• But more than the obstacles, it is lack of effort from producers which has resulted in limited implementation of EPR. In the absence of accountability, the producers have chosen the easy way out.”  
• The E-waste Rules simply talk about financing and organising a system for environmentally sound management of e-waste without any mechanism to check how this system would be put into practice. 
• Nowhere in the Rules is it mentioned what kind of penalty will be imposed if EPR is not followed.

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E-waste management: Nokia sets example

• Nokia began its e-waste management campaign in 2008 when e-waste disposal was given little attention.  
• In the first phase of its campaign, Nokia set up drop boxes across the country to take back used phones, chargers and accessories, irrespective of the brand, at Nokia Care Centres or Priority Dealers. 
• After the necessary infrastructure was set up, Nokia entered into the second phase of the campaign, which involved the public. 

• Nokia’s mass campaign was implemented on January 1, 2009 in four cities of the country: Delhi, Bengaluru, Mumbai and Ludhiana. The campaign was advertised on the front pages of all the major newspapers in the pilot cities and around 600 articles relating to it were published in different newspapers across the country.

• “The response to the 'Take-back' campaign has been extremely positive since the beginning. The total quantity of mobile phones and accessories collected from this campaign since its launch in 2009 is 160 tonnes. The e-waste collection has grown from three tonnes in 2009 to 65 tonnes in 2012,” says Pranshu Singhal, head of sustainability operations with Nokia

• The campaign was followed by a programme to involve small repair shops in e-waste recycling. “In the course of our dealings with multiple stakeholders for management of e-waste, we realized that a very significant number of old mobile phones, after getting transferred through multiple ownerships, end up in small repair stores that have very little knowledge of e-waste,” says Singhal. Nokia then started a programme in 2011 in partnership with Humana People to People India (HPPI), a New Delhi based non-profit, to reach out to such stores, educate them on e-waste and provide them access to responsible recycling. Since then Nokia has enrolled over 6,000 stores in 25 cities and towns.  Each of these stores takes responsibility of engaging with their neighbourhood network of mobile phone stores and channels their e-waste to a responsible recycler via Nokia.

RuPay basics

What is it?

RuPay is a combination of two words – Rupee and Payment. RuPay Card is an Indian version of credit/debit card. It is very similar to international cards such as Visa/Master.

Who initiated it?

National Payments Corporation of India (NPCI) initiated the launch of RuPay card in India. It was done with the intention of integration of payment systems in the country. It has also tied up with Discover Financial Services firm for promoting this.

How will it work?

RuPay debit cards are similar any other debit cards that you might hold now. You can access them in the 1.45 lakh ATMs and 8.75 lakh POS terminals across the country. It will also be accepted on 10,000 e-commerce websites. All major public sector banks, including SBI, have started issuing these cards to all their customers. The card also comes with a high end technology chip named EMV (Europay, Master Card and Visa) especially for high end transactions. It also has an embedded micro processor circuit with information about the card holder.

What are the Benefits of RuPay card?

Lower transaction cost – International transactions lead to higher transaction costs. Such costs can be reduced by using RuPay card since processing will be done within the country. Also, transactions will be faster.

Sms alerts – Users will get alerts for every transaction made through this card.

Reduced processing fees – Processing fees for RuPay card compared with regular debit/credit cards will be considerably lower.

Lower cost and affordability : Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction. This will make the transaction cost affordable and will drive usage of cards in the industry. Customized product offering : RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers. Protection of information related to Indian consumers : Transaction and customer data related to RuPay card transactions will reside in India. Provide electronic product options to untapped/unexplored consumer segment :  There are under-penetrated/untapped consumers segments in rural areas that do not have access to banking and financial services. Right pricing of RuPay products would make the RuPay cards more economically feasible for banks to offer to their customers. In addition, relevant product variants would ensure that banks can target the hitherto untapped consumer segments. Inter-operability between payment channels and products :  RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well placed in nurturing RuPay cards across these platforms. The solution offers enhanced security measures in addition to the RBI mandated 2-Factor authentication viz. registration, OTP, image based authentication and anti-phishing measures. Highly secure with unique anti-phishing properties User friendly and smooth adaptability Simplified architecture & transaction flow reduces transaction time, resulting in faster transaction processing and reduction in drop-outs Customer Experience: During the online payment the cardholder’s authentication data is collected in a secured manner. Further, with help of a bank themed (Looks exactly similar to the card that the customer is holding) PIN pad the cardholder has to enter the PIN number while making the payment. The pad shuffles each time a digit is entered as an additional security measure.

China’s Maritime Silk Route: Implications for India

In recent days, China’s proposal for a Maritime Silk Route (MSR) has been a subject of speculation and debate. Beijing’s plan for a maritime infrastructure corridor in the broader Indo-Pacific region, first proposed by President Xi Jinping’s during his trip to Southeast Asia in October 2013, has attracted attention because of its potential to establish a Chinese foothold in the Indian Ocean. Needless to say, China’s outreach to India - inviting it to join the project - has generated much analytical curiosity.

The first thing of interest about the MSR is that it was initially mooted as an ASEAN-centered project. The intention then was to enhance connectivity and cultural links in China’s strategic backyard – the South China Sea. Beijing later expanded the scope of the project to include the Indian Ocean, but in reaching out to Colombo and New Delhi, it found a willing partner only in the former. India has been ambivalent about the MSR and is yet to make up its mind on joining the project.

During Indian Vice President’s Hamid Ansari’s visit to Beijing in end-June, China made another unsuccessful attempt at getting India to sign-up. Beijing’s renewed pitch for the construction of ports, logistical stations, storage facilities and free-trade zones in the Indian Ocean was again met with a passive response. While acknowledging Beijing’s sincere approach, the Indian side requested for more details on the project to help reach an early decision. 

This is the second time running that India has successfully skirted the controversial MSR project. The last occasion was in Feb 2014 during the Special Representatives Talks in New Delhi, when the Indian representative had declined any comment or opinion on the issue. India, however, is not alone in inquiring about the project’s commercial viability – many ASEAN countries have been equally probing about is intended benefits. This raises fundamental questions about the project, the principal one being: Why, despite its scale and scope of the planned investment, does the MSR not inspire any confidence? 

The problem with the MSR, essentially, is the ‘opaque’ nature of its proposal. Outwardly, the project is about the development of massive maritime infrastructure and connectivity in the Indian Ocean and the Western Pacific. Beijing has been careful to project the MSR as an exclusively commercial venture, trying hard to dispel any impressions of it being a cover for maritime military bases. Surprisingly, however, China has released no details about the project, and this makes many countries doubt Beijing’s strategic intentions. The lack of specifics not only makes it hard to decipher the MSR’s real purpose, it gives credence to suspicions of geopolitical game play by China. Indeed, for a project being touted as a critical enabler of regional sea-connectivity, Chinese planners would have spent much time and effort developing the fine-print. The lack of firm plans, proposals and timelines then does lead to a suspicion that there may be something about the MSR that Beijing is hesitant to reveal quickly.

Even on the few specifics that China has released, claims appear doubtful. According to Beijing, the MSR involves the development of maritime nodes that will help enhance trade and sea-connectivity and assist substantially in the development of local economies. Beijing has been promoting the project as an economic game-changer and an enormously beneficial enterprise for all host nations. Even so, it is hard to disregard the fact that China is the source of much of the maritime turbulence in South East Asia. China’s positioning of an exploration rig in the Vietnam’s EEZ, its skirmishes with Philippines over the Scarborough reef, and the aggressive patrols off the Senkaku islands clearly shows Chinese intensions in the Western Pacific are anything but benign. With unsettled issues of sovereignty and sovereign jurisdiction over disputed Islands in the South China Sea and the East Sea, Beijing’s expectation of a free-pass to create an entire infrastructure corridor in a contested maritime space, appears seriously doubtful.

Since it has already shown its approval for China’s BCIM (Bangladesh-China-India-Myanmar) development plan, chances are New Delhi will be favourably inclined to consider the MSR. It is, however, certain to go over the details carefully before agreeing to the development of Chinese infrastructure in Indian waters. Even though it will be keen to start-off with Beijing on a positive note, the new NDA government in New Delhi would be wary of displaying undue haste in giving the MSR its full approval.

It is felt that India, like some other Indian Ocean states, is so overwhelmed by the scale and scope of the MSR that even in the face of misgivings it will go ahead and sign-up to the project. According to MSR observers, the fear of being left out of its commercial benefits would lead many nations to uncritically accept the project as an economic and strategic enabler. Since the project proposal comes coupled with the “New Silk Road” – a land infrastructure project that envisages the development an ancient route connecting Western China with South and Central Asia – it will be hard for national policy-makers to desist from signing-up.

The Chinese state-owned Xinhua News Agency’s recently revealed some information about the Maritime Silk Route. A map attached to the news report showed Kolkata and Colombo (and not the Pakistani port-city of Gwadar) as possible venues of infrastructure development. The omission of Gwadar from the plan appears to be an overt incentive for India to join-up. Saying ‘yes’ to the MSR will, however, serve as an Indian endorsement of China’s supposed ‘benign’ motivations in the IOR. Worse, as informed voices point out, joining the project will not in any way serve to allay India’s original concerns about a ‘string of pearls’ in the Indian Ocean.

This is not to deny the MSR its short-term benefits, which could - by some accounts - be substantial. China’s announcement of a 10 billion Yuan ($1.6 billion) fund to finance the “maritime silk road plan” is a clear sign that it is serious about moving ahead with its stated plans. These supposedly include port-building and connectivity-enhancing projects within Southeast Asian and Indian Ocean littoral countries that could help local economies enormously. The financial payoffs, however, will likely come at a price and entail long-term strategic implications – especially for regional maritime security.

The MSR’s essential rationale is the leveraging of Chinese soft-power. The aim apparently is to shore-up China’s image as a benevolent state. Beijing’s would also conceivably use the project’s commercial investments to establish its legitimate interests in the Indian Ocean. And while China can be expected to do everything in its power to force region states to join the project - including offering economic aid to potential partners - the bottom-line for it will be to make an offer to India that is hard to refuse. 

For India, it is instructive that the sales pitch of shared economic gains does not conceal the MSR’s real purpose: ensuring the security of sea lines of communications (SLOCs) in the Indian and Pacific oceans. Since African resources are China’s focus right now, the project could well be a surrogate for a giant Chinese SLOC running all the way from the East African coast, to the Southern coast of China – created, maintained and controlled by Beijing. In its ultimate form, therefore, the MSR could end up setting up Chinese logistical hubs in the Indian Ocean, linking up already existing string of pearls.

India’s appreciation of the MSR must be based on an objective appraisal of these new realities. Even assuming the project delivers on its economic promise, it could well turn out to be detrimental to India’s geopolitical interests in the IOR. As Beijing becomes more involved in building infrastructure in the Indian Ocean, it will play a larger part in the security and governance of the IOR, which could pose a challenge to India’s stature as a ‘security provider’ in the region and also adversely affecting New Delhi’s strategic purchase in its primary area of interest.

Views expressed are of the author and do not necessarily reflect the views of the IDSA or of the Government of India