Leadership Media

China braces to play dirty in Nepal

Delicate political applecart has the potential to throw up a storm given multiple coalition partners, communists &Maoists may go Beijing way! Rohan Giri Himalayan Kingdom Nepal is going through trying times as no single party would enjoy even simple majority in the Parliament following the November 20 elections. Having said this, the five-party alliance led by Nepali Congress Sher Bahadaur Deuba is set to form the next government in the 275 member Nepali House as the five coalition partners began their power sharing formula in the new dispensation. For a stable government to be sustainable, the alliance will have to get 138 of their candidates elected as members. This seems to be within the reach for the coalition in this Hindu majority state – Kingdom. The results and trends indicate that Nepali Congress has emerged as front runner while the Communist Party of Nepal (Unified Marxist-Leninist) is at second place. Nepal Communist Party (Maoist Centre) follows it at third position and Nepal Communist Party (Unified Socialist) would have fourth largest block of elected members. There are currently two significant coalitions in the election, one led by Nepali Congress (NC) and the other by the Nepal Communist Party (United Marxist-Leninist). Apart from this, the National Independent Party entered the fray for first time with its own set of candidates. Nepal Communist Party (United Marxist Leninist) made Nepal’s territorial integrity as its campaign call. Its supremo K.P.Oli took upon himself to withstand pressure from purported India pressure. On the other hand, Nepali Congress party included the country’s territorial conflict with China as its rallying point. International concerns on Belt and Road Initiative (BRI) and the Millennium Challenge Corporation (MCC) were brought to national debate. After a decade-long deadly Maoist insurgency followed by 10 years of political instability, Nepal adopted new constitution in 2015. This election is the second federal and provincial election in Nepal after the enactment of its constitution in September 2015. Last five years of government have been in turmoil and instability owing to bickering and coups of a different variety. Internal power struggles and flipping sides by political leaders defined the instability in Nepal while the country evolved as an exciting full democracy in South Asia with its own unique character. China’s aggression in Nepal through its wolf diplomats and direct involvement in the political overturns bring to fore its expansionist streak. Case in point is the Chinese Foreign Minister Wang Yi’s state visit to Kathmandu, transfer of the Chinese Ambassador to Nepal, and other high-level interactions in the midst of electoral process. This is typical to the Oligarchs driven Chinese Community Party and its general secretary Xi Jinping. During O.P. Sharma’s term as Prime Minister in 2015-16 and 2019-21, Nepal’s engagement with China was elevated to one of strategic partnership. Chinese scholars believed that since the Nepali Congress took reins, the country progressively drifted away from China. Due to United States presence in Nepal and India being natural ally of the Himalayan Kingdom, Chinese strategists have been working overtime to gain full control on the country as was the case with Pakistan. From Indian perspective, Nepali Congress led by Deuba may be the best bet as of now. New Delhi has been a benevolent partner in Nepal’s progress under the monarchy as well as the new democratic state. India’s concern may accentuate in case communist elements within the majority coalition and maoist extremists driven opposition look at realignment to carve out a pro-China political formation and edge out Nepali Congress even after having emerged the largest party. It is undeniable that during KP Oli’s leadership, relations between Nepal and India deteriorated over a number of issues, including the modification of the map of Limpiyadhura, Lipulekh, and Kalapani. The roti-beti culture of India and Nepal makes their relationship unique, and the open borders between the two countries provides the facility for citizens to move and manage trade and relationships, especially the Madhesis. During KP Oli’s tenure, he turned to China for supplies, signing a trade and transit treaty that led to the Chinese invasion of Nepali territory. Oli not only attempted to position himself against India to please China but willingly ignored China’s encroachment Nepal territory. India believes in neighbor first policy and Nepal is the immediate neighbor. India has been Nepal’s “firm partner” on the path to peace, progress, and development. This election is important for both Nepal and India to sustain the bilateral ties, cultural and civilizational relations, and geopolitical situation. In this backdrop, China’s mobilization of Nepal’s communist parties may put India’s long-standing relations in a bind. An unholy alliance between Deuba and Oli is being attempted as a way for China to have foothold in the new power structure. Chinese encroachment in the Himalayan state is a challenge for New Delhi as well. Although Nepal elections outcomes are expected to benefit India, it entails strengthening interpersonal links and structurally incorporating Kathmandu into connectivity projects focused on sub-regional trade with India. One would keep fingers crossed as the political slugfest in Nepal unfolds and Chinese dragon breaths down the Himalayan Kingdom’s neck. (Rohan is a journalism graduate from Indian Institute of Mass Communication (IIMC) New Delhi, and Manager Operations at CIHS.)

Guest Column

1.03K

Panch tatva philosophy to guide India’s G-20 Presidency

Push for partnerships, hope, harmony and healing. Decisive leadership voices policy against war, conflicts and confrontation Narendra Modi Today, India commences its G20 Presidency. The previous 17 Presidencies of the G20 delivered significant results — for ensuring macro-economic stability, rationalising international taxation, relieving debt-burden on countries, among many other outcomes. We will benefit from these achievements, and build further upon them. However, as India assumes this important mantle, I ask myself — can the G20 go further still? Can we catalyse a fundamental mindset shift, to benefit humanity as a whole? I believe we can. Our mind sets are shaped by our circumstances. Through all of history, humanity lived in scarcity. We fought for limited resources, because our survival depended on denying them to others. Confrontation and competition — between ideas, ideologies and identities — became the norm. Unfortunately, we remain trapped in the same zero-sum mindset even today. We see it when countries fight over territory or resources. We see it when supplies of essential goods are weaponised. We see it when vaccines are hoarded by a few, even as billions remain vulnerable. Some may argue that confrontation and greed are just human nature. I disagree. If humans were inherently selfish, what would explain the lasting appeal of so many spiritual traditions that advocate the fundamental one-ness of us all? One such tradition, popular in India, sees all living beings, and even inanimate things, as composed of the same five basic elements — the panch tatva of earth, water, fire, air and space. Harmony among these elements — within us and between us — is essential for our physical, social and environmental well-being. India’s G20 Presidency will work to promote this universal sense of one-ness. Hence our theme — “One Earth, One Family, One Future”. This is not just a slogan. It takes into account recent changes in human circumstances, which we have collectively failed to appreciate. Today, we have the means to produce enough to meet the basic needs of all people in the world. Today, we do not need to fight for our survival — our era need not be one of war. Indeed, it must not be one! Today, the greatest challenges we face — climate change, terrorism, and pandemics — can be solved not by fighting each other, but only by acting together. Fortunately, today’s technology also gives us the means to address problems on a humanity-wide scale. The massive virtual worlds that we inhabit today demonstrate the scalability of digital technologies. Housing one-sixth of humanity, and with its immense diversity of languages, religions, customs and beliefs, India is a microcosm of the world. With the oldest-known traditions of collective decision-making, India contributes to the foundational DNA of democracy. As the mother of democracy, India’s national consensus is forged not by diktat, but by blending millions of free voices into one harmonious melody. Today, India is the fastest growing large economy. Our citizen-centric governance model takes care of even our most marginalised citizens, while nurturing the creative genius of our talented youth. We have tried to make national development not an exercise in top-down governance, but rather a citizen-led “people’s movement”. We have leveraged technology to create digital public goods that are open, inclusive and interoperable. These have delivered revolutionary progress in fields as varied as social protection, financial inclusion, and electronic payments. For all these reasons, India’s experiences can provide insights for possible global solutions. During our G20 Presidency, we shall present India’s experiences, learnings and models as possible templates for others, particularly the developing world. Our G20 priorities will be shaped in consultation with not just our G20 partners, but also our fellow-travellers in the Global South, whose voice often goes unheard. Our priorities will focus on healing our “One Earth”, creating harmony within our “One Family” and giving hope for our “One Future”. For healing our planet, we will encourage sustainable and environment-friendly lifestyles, based on India’s tradition of trusteeship towards nature. For promoting harmony within the human family, we will seek to depoliticise the global supply of food, fertilisers and medical products, so that geopolitical tensions do not lead to humanitarian crises. As in our own families, those whose needs are the greatest must always be our first concern. For imbuing hope in our future generations, we will encourage an honest conversation among the most powerful countries — on mitigating risks posed by weapons of mass destruction and enhancing global security. India’s G20 agenda will be inclusive, ambitious, action-oriented, and decisive. Let us join together to make India’s G20 Presidency a presidency of healing, harmony and hope. Let us work together to shape a new paradigm — of human-centric globalisation. (author is India’s Prime Minister and the write up coincides with India taking over presidency of G-20)

Leadership Media Policy

630

India to assume G-20 Presidency on Thursday

On Thursday, India will take formal charge of G-20 as President from Indonesia amidst several challenges faced internationally especially terrorism, radicalization and recession staring in the face across Europe, Covid 19 virus and challenge to President Xi Jingping’s leadership in China apart from unending war in Ukraine. India brings to table a lot of value to G-20 – the most influential global forum of developed and developing countries representing roughly 4.6 billion people – as President till November 30, 2023. Showcasing unity with diversity, India’s culture, products from each of the districts with over 200 events, stakeholders meetings across the country including Jammu & Kashmir as well as Arunachal Pradesh may be attempted by India gearing up to lead the world. If initial reports are to be believed, stakeholders, Presidents & Prime Ministers apart from negotiating groups and officials from these countries will be hosted in 50 cities in India. About 100 Indian monuments will be illuminated with G-20 logo that pushes for ‘Vasudaiva Kutumbakam’, world as one big family. Students and youth from colleges and universities in different states will get to be part of this largest international outreach during next one year. G-20 group accounts for 20 major economies of the world, more than 80 per cent of global GDP, 75 per cent international trade and 60 per cent of the population. The forum has met every year since 1999. Its leaders meet for an annual G20 Leaders’ Summit since 2008.

Fact Sheet

953

Why the tirade against ‘Hindus’?

Does this point to intellectual bankruptcy of ‘The Guardian’ or part of an agenda driven journalistic pursuit that needs to be debunked Hindus neither spew hatred nor Chauvinism ever. By belief, Hindus are tolerant and all inclusive in nature, thought and practice. ‘Vasudaiva Kutumbakam’, entire humanity across world is a large family is the concept which Hindus in India and elsewhere have believed and are wedded to. In blatant diatribe, ‘The Guardian’ editorial “Modi’s India: the danger of exporting Hindu Chauvinism” (Sunday edition of November 27, 2022) is an unacceptable position on Hindus that have lived for ages peacefully and contributed socio-economically in about 100 countries including US, the UK and Europe. India and Hindus over the years has had been a victims of radicalization and imperialistic aggression of every shade and variety including that from United Kingdom for over two centuries. Plunder, abuse and destruction of the entire Hindu civilization was at the root of this anti-human invasion that happened all in the name of business. In fact, these historical facts were hidden from the younger generations in UK forcing a few British youngsters to recently take up a project to explore afresh the abuse that was heaped on Hindu civilization over centuries by Britain. Whether ‘The Guardian’ as a media house likes it or not, India’s leadership at G-20 and its lead in cleaning up the environmental mess created by industrialized western economies cannot be questioned. This ‘clean up’ act of India continued immediately after Paris accord was concluded by the then COP 26 though the much promised $ 100 billion funds and technology in support from the western polluters never happened. With regards to state of Muslims in India, ‘The Guardian’ editorial board and the management seems to be clueless on tremendous strides made by 200-odd million people (State of Religious Minorities in India) across sectors including political spectrum. Muslims are neither intimidated second class citizens as claimed by ‘The Guardian’ nor have they been targeted as suggested in the edit. Hindus have never ever supported hatred of any kind in stark contrast to what has been pushed as ‘agenda’ based writing through ‘The Guardian’ editorial that lacks basis, evidence or testimony. Blowing out of proportion, a few handful incidents to denigrate the entire Hindu civilization, India and its political leadership by extension is rather bankruptcy of worst kind seen in recent times. While BBC had pursued a similar ‘anti-Hindu’ and ‘anti-India’ editorial line, the British broadcaster had to face huge protests from otherwise peace loving Hindus living in United Kingdom. ‘The Guardian’ has built its reputation over decades and moving towards disrepute through such flippant commentary does not augur well for British media at large. Denying Prime Minister Narendra Modi visa while he was chief minister of Gujarat was an unpardonable mis-adventurism that US administration had resorted to. Realizing its mistake perhaps was understandable to say the least. ‘The Guardian’ did not care to recognize the sequence of Godhra riots of 2002 when peaceful Hindus that included women and children were burnt alive by a frenzy misled radicalized Muslim mob. US Commission on International Religious Freedom has been on an anti-India and anti-Hindu trip over the years. Why should Hindus become the whipping boys in managing larger political posturing by political parties in US? Hindus and India are well within their right to debunk biased and inaccurate observations made in the reports dished out periodically to suit the predominant US diatribe. Birmingham and Leicester attacks were clearly aimed at Hindus that were executed in a premeditated fashion by design. Whether ‘The Guardian’ acknowledges or not, harsh reality is that targeted attacks on Hindus and fermenting Hinduphobia is on the rise. Several media houses including ‘The Guardian’ have peddled half-truths and lies that masjids were attacked by Hindus. Henry Jackson Society’s centre on radicalization and terrorism in its detailed report has exposed this ‘false narrative’ on Hindus in the Leicester attacks by Muslims. Tolerance and forgiving the perpetrators of colonial rule and radicalization has been trademark of Hindus and not the other way.

Fact Sheet Media

648

Corrupt Pak Army General, rudderless security establishment

Qamar Bajwa turned billionaire in six years On November 29, 2016, General Qamar Bajwa took charge as Pakistan’s sixteenth chief of Army staff (COAS), succeeding General Raheel Sharif. Within six years of being Army chief, Bajwa’s family became a billionaire, with assets and businesses within Pakistan and outside accumulated of Pakistani rupees 12.7 billion translates to $56.5 million. Prior to his appointment as a COAS, his wife, Ayesha Amjad, was not even a taxpayer but owned three properties worth Pakistani rupees 70 lakhs. Currently, Ayesha Amjad is a multi-billionaire with large farmhouses in Gulberg Greens Islamabad and Karachi, multiple residential plots in Lahore, commercial plots and plazas under Defence Housing Authority schemes, with over half a million dollars in US accounts. his daughter-in-law Mahnoor Sabir was declared zero assets in October 2018, and just a week before her marriage on November 02, 2018, the assets touches one billion Pakistani rupees. Similarly, Bajwa’s close friend and other family members’ assets jumped to billions, but this is not shocking as Bajwa is Pakistan’s COAS, and Pakistan Army holds the country’s political, economic, social and criminal wealth.

Business Policy

693

FTAs, free for all?

Free trade agreements with Japan and South Korea have not worked in India’s favour. Will the deals with Australia and UAE deliver? K.A.Badarinath After Canberra ratified the India Australia Economic Cooperation and Trade Agreement (IndAus ECTA) on Tuesday there was huge sense of achievement that overtook the establishment and media outlets. While fine print was still hazy given that second phase of the deal was yet to be concluded, duty cuts and liberalized visa regimes was touted as a big deal for Indian side. There’s no denying that bilateral trade deals are here to stay given that multi-lateral negotiations at forums like World Trade Organization have come to a virtual standstill, limited trade and investment blocks take long time to get going. Taking bilateral trade to US $ 50 billion in five years from the prevailing $ 31 billion with Australia is laudable. Billion-dollar question however, would be which side will the trade balance tilt? The next deal that may get operative is the pact with United Arab Emirates which was also signed eight months ago. Comprehensive Economic Partnership Agreement (CEPA) between Abu Dhabi and New Delhi may be more comprehensive. UAE foreign minister Sheikh Abdullah bin Zayed Al Nahyan is in New Delhi to give a big push to CEPA. Here again, the trade balance is in favour of UAE as of now and it may only widen further after the CEPA.As per Indian commerce ministry figures, imports from UAE were US $ 28.4 billion as against $ 16 billion exports during April – September 2022. Widening trade imbalance may be a source of concern in free trade agreement with Australia or CEPA with UAE. After a hiatus during first three years, Narendra Modi government signed 13 trade deals or operationalized agreements with partners in last five years. Hastening bilateral agreements became a necessity given the $ 5 trillion economic target that India set for itself in its economic expansion game plan. But then, have these agreements done well for Indian industry, exporters, service providers, farmers and consumers is a valid question that needs to be answered. There’s no verifiable data to back any claims of a big benefit to Indian side. Data available with Commerce Ministry, RBI and Finance Ministry also needs to be collated and reconciled. In the past, industry and trading community in India have complained that deals with Japan and South Korea never worked in India’s favour as the trade balance and investment gap only widened with several desi companies, services losing out. Sri Lanka, Nepal, Bhutan, Mauritius, Thailand, Malaysia bracketed as neighbourhood countries or South East Asian neighbours were others with whom free trade deals were operative. Even if trade balance was in their favour, India has the potential to play ‘big brother’ role. But with biggies like Japan, South Korea, UAE and Australia, terms of engagement may be a clinching factor. Two regional deals with ASEAN and SAFTA were also scrutinized on cost benefit issues. In addition, six preferential trade agreements with limited scope became operative between India and its partners like Afghanistan, Chile etc. In this category also falls the agreement India has with Mercosur (South American block) and Asia Pacific nations through APTA. Free trade negotiations will be kicked off with United Kingdom, Canada, European Union and Gulf nations later this week. Here again, the big question is what are India’s gains? While bilateral and limited blocks trade is an imperative, Indian negotiators must be sensitive enough to ensure that FTAs do not turn out to be free for all and nothing much for India. Free trade as a concept has undergone serious makeover especially after Western developed economies including US has shunned the hitherto flexible economic, investment and trade partnerships. There’s no alternative to engaging the world on multiple fronts. But, big question is on what’s in it for India? (The writer is Director and Chief Executive of New Delhi based think tank, Centre for Integrated and Holistic Studies)

Hindus Policy

774

Population Conundrum: Policy options

Population Prospects 2022 of United Nations has estimated that on November 15, 2022 there will be eight billion people on the planet that would move up to 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100. Since 1990, the global average lifespan has increased by over nine years and in 2019 it was 72.8 years.[1] As of now, India is the world’s second-most populous country after China. In 2023, India is projected to surpass China as most populous country. As per the 2011 census, population of India was 1,210,569,573.[2] Statistical errors notwithstanding, private consultancies have projected India’s population to have already surpassed that of China. UN report cited vulnerabilities to infrastructure, jobs, economy, governance, social cohesion and other factors that emerged owing to growing population. Various countries faced social issues such as child or early marriages, migration, lack of family planning, etc., as well as imbalance in population that resulted in concerns like religious conversions, inequality, social violence, etc. All of these strongly correlated with population’s growth. In the past, population imbalance has brought about division in numerous nations including India. Afghanistan, Bangladesh, Bhutan, China, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka are immediate neighbours to India. Infiltration has been seen in border regions as no uniform population policy was pursued by the Indian Government. In response to a query in the Parliament, Indian Ministry of Home Affairs has stated that the border between India and Bangladesh has seen greatest documented incidences of cross-border infiltration into India. In a written reply, Minister of State in the Ministry of Home Affairs, Nisith Pramanik said, “128 infiltrations reported along Pakistan border, 1787 along Bangladesh border, 25 along Nepal border, 133 along Myanmar border while nil at China and Bhutan border.”[3] Five Indian states of West Bengal, Assam, Meghalaya, Mizoram, and Tripura surround Bangladesh whose people made most attempts to infiltrate into India. The invasion drives illegal immigrants and alteration of geographical boundaries resulting in serious national security concerns. The imbalance and population growth can be addressed through public education and stricter regulatory enforcement. To produce a uniform population policy, the government and policymakers must adopt significant and pervasive actions. In addition, it’s essential to make sure that the laws that are already in place are being adhered to. In a recent national meeting held in Prayagraj, Uttar Pradesh in India, Rashtriya Swayamsevak Sangh (RSS) – a Hindu centric organization –Sarkaryavah (General Secretary) Dattatreya Hosabale expressed concern about India’s population imbalance and emphasized the importance of strict enforcement of anti-conversion laws and formulation of a uniform population policy.[4] CHALLENGES DUE TO POPULATION IMBALANCE One of the top risks is the enormous population expansion apart from infiltration, illegal entry of people from neighbouring countries in search of livelihoods, work opportunities and permanent settlement. The threat has increased owing to political and social instability that fuelled imbalanced and unregulated population growth. Figure: It shows the growth rate and imbalance in population. The percentage of population increase for major religions has decreased over the past ten years (2001–2011). Hindu population decreased from 19.92% to 16.76% over the previous decade while Muslim population decreased from 29.52% to 24.60% (Even after this, the Muslim population is growing at the fastest rate) over the same period. Sikh population growth was 8.4 percent compared to 15.5% for Christians. Jainism is at 5.4 percent and Buddhism is at 6.1 percent.[5] Though overall population growth slowed down, uneven expansion of population from some religions remains problematic. Governments and society must therefore confront the issue of demographic imbalance in unison. Religious Conversions After independence, the Indian Parliament proposed a variety of anti-conversion laws, but none of them were adopted. The Indian Conversion (Regulation and Registration) Bill was initially submitted in 1954 with the intention of ensuring “the licence of missionaries and the registration of conversion with government officials,” but the bill was unsuccessful in gaining the support of majority members. After that, in 1960, the Backward Communities (Religious Protection) Bill was presented with the intention of prohibiting Hindus from converting to “non-Indian religions,” which the bill defines as include Islam, Christianity, Judaism, and Zoroastrianism. The Freedom of Religion Bill was introduced in Parliament in 1979. Lack of political support prevented Parliament from passing these measures which called for “formal limitations on inter-religious conversions.”[6] According to Indian Union Law Minister in 2015, a law against coerced and fraudulent conversions could not be passed at the national level. It is also claimed that the Constitution gives state the authority to uphold law and order. Such legislation may, however, be passed by state governments.[7] S. No State Implemented (as on) 1 Odisha 1967 2 Madhya Pradesh 1968 3 Arunachal Pradesh 1978 4 Gujarat 2003 5 Chhattisgarh 2006 6 Himachal Pradesh 2006 7 Jharkhand 2017 8 Uttarakhand 2018 Source: Library of Congress[8] Several states established “Freedom of Religion” legislation to ban religious conversions carried out through coercion, fraud, or inducements. These laws prohibit conversions to other religions. Migration The fundamental purpose of human life is survival and not rivalry. The same is true of migration; it involves more than just human movement from one place to another. People move for a variety of reasons, including work, psychological pressure, safety and security concerns, identity issues, etc. The imbalance in religious population makes their lives and existence insecure. In the concept of migration, employment comes second; everyone wants to exist. The minority population in the area is seriously threatened by population imbalance. According to migration statistics (Census), India had 5.1 million migrants out of the total population in 2001who had crossed international borders with or without valid papers. They came from the eight nearby nations in almost 97% cases (including Afghanistan). Of these, nine lakh were from Pakistan and 30 lakh were from Bangladesh.[9] Main motivation for migration from Afghanistan, Pakistan, and Bangladesh was security worries brought on by religious practices, not work. The “vagueness” of social identity, inability to make decisions about life goals, morals, standards and lack of socially acceptable positive patterns

Business Policy

819

Sovereign Green Bonds for India’s Green Goals

Background In the budget speech of 2022, India’s Finance Minister, Nirmala Sitharaman had announced issuance of sovereign green bonds (SGBs) to achieve the country’s objective of carbon neutrality by 2070[1]. In October this year, the Finance Ministry approved the SGB framework which is designed to gather funds for supporting state-run projects which will reduce carbon emissions in the years to come. Explained What are sovereign green bonds (SGBs)? Sovereign green bonds are issued by the Indian government to assist those organisations and projects which will focus on climate change mitigation, reduction in greenhouse gas emissions, climate adaptation, and reduce environmental risks. These are debt instruments and are a crucial part of ESG (environmental, social, and governance) investing[2]. In India, green bonds have been issued since 2015. During 2018 – 2022, $8 billion worth green bonds were issued which accounts for about 0.7 percent of bonds[3] issued in the financial market. In a report, titled, “Green Finance in India: Progress and Challenges” compiled by the Reserve Bank of India in 2021, till February 2020, India accounted for an outstanding debt of $16.3 billion in green bonds[4]. This has made India the second largest emerging green bonds market in the world after China. Indian banks and other financial institutions (like NBFCs and Indian Railway Finance Corporation which issued bonds which raised $500 million[5]) have rolled out their instruments for public sector organisations and firms to catalyse them for green initiatives. For instance, in 2018, State Bank of India (SBI) raised $650 million by the issuance of the first tranche of green bonds[6]. These are sovereign debt and reflect the Government of India liabilities. These instruments are fully backed by the government. How are green bonds issued in India? For the purpose of listing and trading in sovereign green bonds, the government designated India International Exchange (India INX) situated in Gandhinagar, Gujarat as the forum[7]. This allows global investors and high-networth individuals to purchase green bonds in multiple currencies. For instance, the green bonds that were issued by SBI in 2018 were listed on India INX, Luxembourg Stock Exchange, and Singapore Stock Exchange. Table 1 lists recent issuances of green bonds by Indian firms in 2021 and 2022. Apart from these, Rural Electrification Corporation listed their bonds in 2017 and Yes Bank in 2015. Table. 1. A few examples of recent green bonds issued by Indian firms Issuer Amount (in $ million) Tenure Issued in ReNew Energy Global [8] 400 <5 years January 2022 State Bank of India 650 5 years November 2021 Adani Green Energy Limited[9] 750 3 years September 2021 ACME Solar[10] 334 5 years July 2021 Adani Electricity Mumbai Limited[11] 300 10+ years July 2021 Most green energy companies or those into new and renewable energy resources have seriously taken these bonds as a sustainable route to raise debt funds for expansion of their greenfield projects. Fig. 1. Volume of Sovereign Green Bonds issued in India during 2017-21[12]. Source: Statista; Climate Bonds Initiative; CIHS Analytics. Most of these have been issued for a period of over five years, with an exception of Adani Electricity Mumbai Limited which issued them for a period over 10 years. At present, green bonds are not open for all investors but for those individuals and investors which have focused projects for the green economy. Global status Ever since nations pledged the Sustainable Development Goals (SDGs), there has been an increase in issuance of green bonds all over the world. Fig. 2 shows the cumulative amount of green bonds issued across the world during 2014 to 2021. Fig. 2. Amount of green bonds issued globally. Source: Climate Bonds Initiative; CIHS Analytics. Key insights from global issuance of green bonds during 2021-22[13]: Table. 2. Top 10 issuers of SGBs across the world (2021-22) Institution No. of debt instruments Bond value (in $billion) Société du Grand Paris 4 7.62 China Development Bank 3 6.17 India (cumulative) NA 6.11 ICBC Limited (London branch) 1 3.23 Queensland Treasury Corporation 1 2.21 DNB Boligkreditt AS 1 1.67 Geysers Geothermal 1 1.5 Republic of Chile 1 1.24 Westpac 1 1.21 Japan Rail Construction Transportation and Technology 5 1.21 Ferroive dello Stalo 1 1.18 Certified sectors for investment across the globe SGBs are certified by institutions across the world and are classified into five broad categories. These sectors have been certified by nations internationally. These have been shown in Fig. 3. Fig. 3. Certified sectors for issuance of SGBs. Source: Climate Bonds Initiative; CIHS Analytics. A gist of India’s SGBs Framework At the core of India’s framework for sovereign green bonds[14] is the need to create a mechanism which will ensure that only green projects are financed. For this, the framework has the following provisions: Concluding observations India’s newly launched framework for sovereign green bonds can aid in achieving India’s climate goals and its pledge towards the SDGs. The net value of these bonds has increased multifold in the last few years which is indicative of India’s seriousness in achieving net-zero carbon emissions by 2070. The framework will work in tandem with norms laid down by SEBI which requires companies to publish reports on their environment and climate related activities. With the framework in place, companies and high-net-worth individuals now have a plethora of options to choose from compared to earlier years where green bonds were largely limited to the private sector. This will also help India emerge as a key market in the green debt instruments. [1] Budget2022 is a step towards innovative & Sustainable Development in New India to strengthen our energy transition journey and fight climate change: Power minister (no date) Press Information Bureau. Available at: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794473 (Accessed: November 16, 2022). [2] ESG investing and analysis (no date) CFA Institute. Available at: https://www.cfainstitute.org/en/research/esg-investing (Accessed: November 16, 2022). [3] Green Finance in India: Progress and Challenges (no date) Reserve Bank of India – RBI Bulletin. Available at: https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=20022 (Accessed: November 16, 2022). [4] Green Finance in India: Progress and challenges* – reserve bank of India (no date). Available at:

Business Policy

736

New India’s Rupee Goes Global & Dematerialized!

Oil and gas deals, gold imports, small & medium ticket trade payments must be settled in rupees. Russia jumping on to the rupee bandwagon is a big breakthrough even as India readies to overtake Germany as third largest economy. K.A.Badarinath Two significant developments this week have made the trajectory on Indian rupee very clear. One, Indian government’s fancy idea of taking the modest rupee global has taken wings. And, there’s definitive movement forward on digitizing the rupee after having rejected calls for legalizing private crypto currencies. Both these movements point to the ambition and forward looking policy stance of the Indian government and Reserve Bank of India if one were to gauge the implications. First things first, how does one make Indian rupee a global currency to reckon with after Chinese Yuan or Renminbi that has emerged as the fifth largest trading currency in last few years? Some baby steps seem to have been taken with regards to the rupee though naysayers think that it’s more of positioning the Indian currency by ultra-patriotic Narendra Modi government and Hindutva forces. Using Special Rupee Vostro (SRV) and bespoke accounts to expand international trade and settle export import deals on rupee terms is good beginning to internationalize the Indian currency. By-passing the dollar, euro, yuan or pound sterling denominated trades is no doubt the first step. The advantage in settling trade deals against rupee is many folds. Apart from internationalizing the rupee, Indian payment systems and gateways get popularized across trading and currency community. Secondly, volatility in global currencies that hitherto rummaged our trading community and foreign exchange traders catering to a large community of Indian students and travellers may now have limited impact once the deals are squared in rupees. Russia, a large energy and strategic partner for India, became the first large economy to open a special rupee vostro account to settle trade deals in rupees. Gazprombank of Russia has already opened a rupee denominated account with UCO Bank. Two largest banks, Sberbank and VTB Bank from Russia are also in the process of opening such accounts through their branches in Delhi. This will give a big push to non-dollar, euro or Yuan designated trade between India and Russia that’s facing issues as it has been cut off from the Swift payment system globally after its attack on Ukraine. Sri Lanka, Maldives, several South East Asian, African and Latin American countries may also follow suit given their inclination to pursue non-dollar trade deals concluded in Rupees. Countries like Zimbabwe, Malawi, Djibouti, Ethiopia, Sudan, Madagascar, Kenya, Namibia and Bangladesh may also be willing to do rupee denominated trade deals. Current volumes and value of trade with these countries may be very insignificant. But, with big players like Russia joining the bandwagon, Indian rupee is bound to get the foothold it’s looking for in the global currency and trade markets. With over $ 800 billion merchandise trade clocked annually, there may be no reason why India should not have a say in determining payment terms. An equivalent value in services trade or more should add muscle to Indian negotiators seeking to make rupee settlements. While non-oil trade products and services deals may take a while to settle in rupees, oil and natural gas deals should be done in rupees. Given that Russia has emerged biggest supplier of oil after Iraq, Saudi Arabia, UAE and USA in that order, negotiation with Moscow on rupee denominated payment terms seems to have been concluded. Moreover, both India and Russia have long history of clinching oil deals in rupee – roubles during protracted cold war era. With Iraq, UAE and Saudi Arabia as well, there’s no limitation on India to settle oil and gas deals bypassing the US dollar or the euro. In the non-oil trade, small and medium ticket deals with a dozen countries can still be targeted. Chinese President Xi Jingping may be more than willing to do a Yuan – rupee designated deals thereby disrupting virtual monopoly of US dollar and euro denominated deals. Given that India continued to be a big customer for China, non-dollar deals should be okay irrespective of the geo-political tensions and border disputes between the two countries. Gold imports are something that should move to rupee denominated settlements. With India being largest consumer of gold at about 1050 – 1200 tonnes annually valued at about $ 55 – 60 billion, New Delhi should begin rupee pitch on the bullion market. Gold is the second largest import item after oil and natural gas imports that range between $ 100 – 120 billion yearly. Second big development is modest rupee going digital on pilot basis that kicked off last few days beginning with Government securities. This is a definitive milestone in India’s banking history that goes beyond the British imperialist era. Rejection of cryptos as decentralized, speculative and block chain based currency in India was a difficult step but the right one. Having rejected private crypto currencies for commercial transactions, recognition as an asset and banks’ collateral, India’s foray into digital space through the rupee monitored and regulated by RBI marks a new beginning for the world’s fourth largest economy. As India prepares to surpass Germany and emerge third big economy internationally, phased roll out of e-rupee was the most desirable and sustainable option that Modi government and RBI has taken recourse to. This is in contrast with countries like Hong Kong that legalised crypto-currencies and El Salvador that set up a dedicated cryto-currency city. Central Bank Digital Currency (CBDC) or e-rupee has nothing to do or common with the private crypto-currencies. E-rupee is equivalent in value and acceptable to Indian government as much as the rupee in physical notes and coins. Even most advanced economies like US, UK and European geographies are grappling with the havoc unleashed by private crypto currencies that are speculative in values, not backed by an asset and mostly used for narcotic drug deals and laundering by terror groups internationally. It would

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Brief: Cybersecurity, Meta and The Wire Fiasco

In October 2022, a media outlet called the Wire, which presents itself as a critical dissenting voice and champion of free speech, published a three-story series alleging that Meta, the big tech and social media giant, had given unchecked authority to Amit Malviya, the head of the Indian ruling Bharatiya Janata Party’s (BJP) Information Technology (IT) Cell. It claimed that by using Meta’s XCheck Program, Malviya and his staff could censor content on Facebook and Instagram that they did not agree with. Meta rejected the dubious assertions made by the Wire. Read more…

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