The horizon for India beyond the G-20, SCO summits.

Topic: GS2 – International relations.

Context:

• India must manage its expectations as it assumes the presidency of the G-20 and leadership of the SCO.
• The country faces challenges, and the global situation is deteriorating, with the possibility of conflicts.
• India must balance the demands of the G-20, SCO, and Global South and proceed cautiously.

Issue: Distrust between two camps:

• The world is on the verge of a global conflict due to the growing distrust between the United States and China/Russia.
• Countries like India that have yet to take sides have little room for manoeuvre.
• The US and its allies provide Ukraine with sophisticated weapons and training, while Russia also receives equipment and material from its partners, including China. As a result, both sides are positioning themselves to demonstrate the superiority of their modern weaponry.
• Many countries, including South Korea, are participating in supplying military equipment to Ukraine, risking being perceived as participants in the conflict. A single misstep could trigger an Armageddon.

Issues between India and China:

• India is facing deepening concerns about its relationship with China, which is currently on a major diplomatic and strategic offensive across Asia – particularly in West Asia
• China also displays its naval prowess in the seas around East and Southeast Asia and flexes its military muscle on the Sino-Indian border.
• This reduces India’s room for manoeuvre, mainly as China targets India for going closer to the US and the Western bloc and seeking to limit India’s influence in its extended neighbourhood, such as West Asia.
• India is also aware of China’s ability to engage in hybrid warfare, including cyber tactics and the ‘politics of water’, and is cautious about its approach.

Relationship of India with Russia and the Neighbourhood:

• It is also important to understand India’s challenges and concerns, including dealing with China’s aggression, losing traction with the Taliban in Afghanistan, and uncertainty in its relationship with Russia.

Conclusion:

It underlines that India has emerged relatively unscathed from the COVID-19 pandemic and economic crisis. However, there are still many obstacles to overcome before it can achieve its goal of becoming a global power. The author suggests India should only claim to have attained its goal after leading the G-20 and SCO simultaneously.

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Need for policy changes and regulatory overhaul in the aviation sector.

Topic: GS3.

Context:

• Go Airlines – has become the first domestic airline in the country to seek bankruptcy protection since the COVID-19 pandemic began.
• The regular happening of such events in the aviation industry necessitates policy changes and changes in the regulatory regime in the aviation sector.

Issue:

• The financial difficulties the aviation industry faces are symptomatic of broader problems in the commercial air transport industry.
• The industry operates with slim margins, and intense competition in India’s budget airline sector has led to aggressive pricing strategies that have made companies vulnerable to shocks.

Issues with government policy and regulations in the aviation sector:

• Prohibitive tax structure on aviation turbine fuel (ATF), which keeps the fuel cost high for airlines
• Outdated regulatory apparatus that needs to be reformed to keep pace with changing industry dynamics
• Inefficient allocation of airport slots, leading to congestion and delays
• Inadequate infrastructure development, including airports and air traffic management systems
• Limited access to financing options for airlines, hindering their growth and expansion
• High import duty on aircraft and aircraft parts make it expensive for airlines to acquire and maintain aircraft
• Limited scope for foreign investment in the sector, restricting access to capital and expertise from foreign investors
• Inconsistent policies and frequent changes in regulations create uncertainty for airlines and investors
• Limited competition in the industry leads to higher passenger fares and reduced airline choices.

Way Forward:

• Rationalise tax structure : The government should rationalise the tax structure to reduce the burden on airlines, particularly the high taxes on aviation turbine fuel (ATF), a significant cost component for airlines.
• Modernise regulations: The regulatory framework needs to be modernised to keep pace with the rapidly changing aviation industry. This includes streamlining processes for licensing, safety oversight, and security.
• Attract foreign investment: The government should attract foreign investment to provide much-needed capital and technical expertise to the sector.
• Encourage competition: Competition should be encouraged to bring down fares and stimulate demand. This includes opening up more routes to new airlines and allowing more foreign airlines to operate in India.
• Invest in infrastructure: The government should invest in infrastructure, including airport modernisation and expansion, to support the sector’s growth.
• Support airlines: This can include reducing taxes, providing low-interest loans, and offering other assistance.
• Promote tourism: The government should promote tourism to boost demand for air travel. This can include developing tourist infrastructure and marketing campaigns to attract more foreign visitors.
  

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 Reaping benefits of India’s smart electricity future.

Topic: GS3.

Context:

• With changing times and growing energy demand, India must shift towards a smart electricity future to ensure steady economic growth.

Issue:

• India has installed over 5.5 million smart meters and aims to replace 250 million conventional electric meters with prepaid smart meters by 2025-26.
• The government supports this initiative through financing to help power distribution companies become financially sound and efficient.
• Smart meters provide consumers with information on electricity use and cost and enable them to trade solar power. However, there are challenges to implementing this initiative on the ground.

Challenges in implementing the smart metering system:

• Technical challenges in implementing and maintaining the smart meters
• Consumer awareness and acceptance of the new technology and its benefits
• The need for proper regulation and policies to support the deployment of smart meters
• The financial viability of the initiative, including the cost of installing and maintaining the smart meters, as well as the revenue streams for power distribution companies
• The need for robust cybersecurity measures to protect the data collected by smart meters
• The need for training and capacity building for stakeholders involved in installing and maintaining smart meters.

 Some possible steps that could be taken include:

• Improving the financial health of power distribution companies (DISCOMS) through results-linked grants and financing could help to support the rollout of smart meters and other energy efficiency measures.
• Addressing on-ground challenges related to installing and maintaining smart meters, including connectivity and data management issues.
• Developing effective consumer education and engagement programs to help people understand how to use smart meters and maximise their benefits.
• Encouraging the development of innovative business models and partnerships can help drive the adoption of smart meters, such as peer-to-peer energy trading and demand response programs.
• Addressing any regulatory barriers or uncertainties that may be preventing the widespread adoption of smart meters, such as issues related to data privacy, security, and ownership.

More information for possible solutions:

• Firstly, there needs to be a nationwide campaign to educate consumers about smart meters and ensure the accessibility of smart meter apps.
• Secondly, power distribution companies (discoms) must take ownership of the programme and work with Advanced Metering Infrastructure Service Providers (AMISPs) for a smooth installation and recharge experience for users.
• Thirdly, discoms, system integrators, and technology providers should collaborate to devise innovative and scalable data solutions.
• Finally, policymakers and regulators must strengthen regulations to empower consumers to unlock new retail markets and enable simplification and innovation in tariff design.