Let’s protect our environment

Introduction

This has become a matter of debate about protecting our environment. But the question lies on the surface of why it has become so important nowadays. This is because there are many instances where the fury of climate change is seen, such as forest fire, flood, drought, acidification of the ocean, the changed pattern of precipitation, melting of glaciers, etc. Many scientists and researchers are making comprehensive efforts to combat climate change that may toll human existence. It has become a global revolution to take part in those measures that can minimize the fury of climate change. According to IPCC (2007), climate change is a change in the state of the climate that can be identified (e.g., by using statistical tests) by changes in the mean and the variability of its properties, and that persists for an extended period typically decades or longer. The climate is influenced by nature itself (biogeographical) and human activities (anthropogenic). Furthermore, various international government organizations are coming forward to mitigate climate change’s fury or suggest numerous alternatives to protect our environment. It is well known that human wants are unlimited but being selfish for their desire is unacceptable. Human activities led to the devastation of the landscape, including rampant cutting of trees, poaching, wasting, or polluting water, polluting the air, etc. All these led to the destruction of our environment and our existence. In this regard, our national father, Mahatma Gandhi well said, “The earth, the air, the land, and the water are not an inheritance from our forefathers but on loan from our children.”It is appalling that we have closed our eyes and recklessly misused our natural resources. If it continues in the future, how can we achieve a sustainable environment?

Discussion

Many factors contribute to climate change, but the foremost phenomenon is global warming due to greenhouse gases.

1. Greenhouse Effect: The main factor that intensifies climate change is the massive concentration of carbon dioxide that causing the warming of the earth for 60 years. The reckless increase of carbon dioxide in the environment led to the unique phenomenon known as the “greenhouse effect.”Gases like water vapour, carbon dioxide, ozone, methane, and nitrous oxide act as heat trappers, which absorb heat radiation from the earth’s surface and radiate back towards the earth. Further, looking at various gases will make us believe that they are devastating our environment.

I. Carbon dioxide: The large concentration of Carbon emanates from the burning of fossil fuels for electricity generation; manufacturing of cement. Massive deforestation reduces the taking up of carbon dioxide from plants and trees. It is shown in figure 1 that how global emission of carbon dioxide in billion metric tons is increasing fast on the other side concentration of carbon dioxide is much higher starting from 1750 to 2000.

Figure:1

Source: eia.gov

                                   

Figure:2

Source: worldpopulationreview.com

The carbon footprint shown in figure 2 represents the total greenhouse gases emissions caused by an individual, community, event, organization, service, or product, expressed as a carbon dioxide equivalent. China is the top contributor to carbon emission, followed by the United States, India, and Russia.

II. Methane: This gas oozes from agriculture, raising livestock, mining, fossil fuels, sewage, and decomposing garbage in landfills.

III. Nitrous oxide: Fertilizer and fossil fuel burning are the leading cause of large concentrations.

IV. Halocarbon: Such gas emits into the atmosphere and depletes the ozone layer, which is present in the stratosphere. The ozone hole over Antarctica is caused because of halocarbon. An example of such gas is chlorofluorocarbons (CFCs). It’s a sigh of relief that it is reducing due to international regulations designed to protect the ozone layer.

V. Ozone: This greenhouse gas continuously increases in the troposphere by releasing gases like hydrocarbon, carbon monoxide, and nitrogen oxide. It is produced due to chemical reactions in the presence of sunlight. Despite the above, the presence of ozone in the troposphere also causes respiratory problems and many other illnesses.

2. Deforestation: Intentionally cutting trees in forested land is called deforestation. Since older times,the land has been cleared to obtain wood for fuel, commercial logging, fodderconstruction, and many other works. Thus, indiscriminately clearing of forest land will lead to an alarming situation where we may have problems getting oxygen as more carbon dioxide is released into the atmosphere, soil erosion, and drought.

3. Air pollution: The air we breathe should be clean. Unfortunately, we have to inhale polluted air with hazardous substances. Polluted air directly affects our health and makes us prone to unlimited diseases and illnesses with a shorter lifespan. The pollutants involved in polluted air include particulate matter, PAHs, lead, ground-level ozone, heavy metals, sulfur dioxide, benzene, carbon monoxide, and nitrogen dioxide. The factors contributing to air pollution are tobacco smoke, combustion of solid fuels for cooking, heating, home cleaning agents, insecticides industries, automobiles, power generation, poor environmental regulation, less efficient production technol, age, and poor maintenance of vehicles. The natural sources include incinerators and waste disposals, forests, and agricultural fires.

4. Water pollution: Water is the basic necessity of human life. What happens when it also gets polluted? According to WHO, one-sixth of the world’s population, approximately 1.1 billion people, do not have access to safe water, and 2.4 billion lack basic sanitation. The polluted water source consists of industrial discharged effluents, sewage water, and rainwater pollution and is polluted by agriculture or households.

Solutions and Way Forward

Various nonprofit, trust and government organizations worldwide have emerged to conserve the global environment. Some organizations are given here to acknowledge how they are devoted to environmental protection.

1. World Nature Organization (WNO): It was started in 2010 by developing countries. These countries are situated around the Pacific oceans, Caribbean, and some parts of Africa. Although it did not come into effect due to lack of motivation and interest, it was come into the picture to promote a sustainable environment.

2. United Nations Environment Programme (UNEP): It was established in 1972 after UN Conference on Human Environment. It was started to address environmental issues to track and suggest measures to protect and spread awareness to support the environment.

3. International Union for Conversation of Nature (IUCN): It came into existence in 1948 and assimilated over 1200 government and non-government members. It has the sole motive of protecting nature and sustainable use of natural resources so that the upcoming generation also has assessed it. This organization also publishes the IUCN Red List, categorizing biological species by conservation status.

4. Intergovernmental Panel on Climate Change (IPCC): It was started in 1988 by the World Meteorological Organization and UNEP. This organization communicates a scientific and unbiased assessment of climate change and its effect.

5. Global Environment Facility (GEF): The GEF was rolled out in 1991 to collaborate among 183 nations and other stakeholders. This organization is the largest public funder, basically finances projects related to climate change, land degradation, water issues, biodiversity, and the ozone layer.

6. United Nations Climate Change Framework Convention (UNFCCC): It was established in 1994. The motive for this formation is to stabilize the greenhouse gas emission and to protect the earth from climate change. The Conference of Parties (COP), which meets every year starting from 1995, is the apex decision-making body of UNFCCC. The most popular Kyoto Protocol in 1997 was adopted in the Third Conference of Parties (COP3) in Kyoto, Japan.

Thus, there is a way forward to protect our environment. We can take many small steps to mitigate the ruin of human existence. As we know, those natures have intrinsic, instrumental, and relational values. Albert Einstein had beautifully said, “Look into nature, and then you will understand everything better.” So, we need to look into nature with open eyes and think about what we can do to protect our benevolent nature. Here are some of the measures.

I. No plastic: Everywhere, plastic bottles and bags can be seen easily. Even oceans are not left. Recreational fishing is responsible for dumping a considerable amount of marine debris in the form of plastic. Now it is our responsibility to restrict ourselves from the use of plastics. Try not to litter plastics here and there.

II. Green technology: Nowadays, the government is more focused on various alternatives for energy generations. Green and clean energy is the motive of every stockholder. Solar energy, wind energy, and hydro energy are helpful in energy production without emitting harmful effluents. Thus, renewable energy is proved to be beneficial in alleviating climate change.

III. Afforestation: It means the conversion of croplands or marginal lands into forests. In simple words, the introduction of trees and seedlings to an area that has previously not been forested is termed Afforestation. This step is helpful in the sequestration of carbon and can be done through tree planting and seeding.

IV. Blue carbon: This concept was emerged in 2009beingsupported and promoted by many organizations to save the marine ecosystem. Blue carbon helps remove carbon dioxide from the earth’s atmosphere, known as carbon sequestration. Algae, seagrasses, macroalgae, mangroves, salt marshes, tidal marshes, and other plants in the ocean and coastal ecosystems help remove carbon.

V. Green tax: In response, to protect the ozone layer, local air quality, biodiversity loss, acid rain, and global warming. Green tax or pollution tax is assumed to be a useful measure to combat environmental degradation. Many countries like Sweden, Denmark, the Netherlands, the United Kingdom, Finland, Norway, Germany, and Italy had already implemented. In India, the central government has proposed charging a green tax on renewable registration certificates of personal vehicles after 15 years. Thus, levying taxes will increase government revenue and help in reducing pollution levels.

VI. Mangrove Rehabilitation: Looking at the threat of climate change, Mangrove became vital nature-based solutions to counter climate change in addition to providing socio-economic and ecological services. Carbon sequestration, forestry and fishery products, timber, fuelwood, coastal protection, and ecotourism are some of the economic benefits of mangrove forestry.

VII. Eco-tourism: Tourism is about sightseeing, holiday vacations, and having a good time and involves environmental aspects, social aspects, and sustainability. Thus,eco-tourism emerged to attain sustainable development without affecting the ecosystem. It is one of the ways of tourism that implies visiting a natural environment without interfering with its habitat. Many countries have promoted eco-tourism because it will help to protect the fragile ecosystem and provoke environmental awareness. In India, 90 potential eco-tourism sites have been identified for promoting a better understanding of nature conservation added to income generation.

Conclusions

Climate change poses various threats to ecosystems, biodiversity, and human lives. Thus, the mounting ecological problems must be curbed as early as possible to lead a secure and sustainable life. We have to integrate to conserve our environment. Environment protection is not unilateral but a multilateral action, so taking small steps from each one will make a significant change. Moreover, COP 26 declared significant goals like net-zero by 2050, coherent work to secure and protect the ecosystem, mobilize funds to combat climate change. Recently, Bhutan, Suriname, and Panama have been declared carbon-negative countries. But there is a need for more countries to come to the carbon-negative list to achieve a sustainable life. So, it is high time to engage everyone in combating the factors that provoke an environmental disturbance as there is no planet B.

References

Karl, T. R., Melillo, J. M., Peterson, T. C., &Hassol, S. J. (Eds.). (2009). Global climate change impacts in the United States. Cambridge University Press.

Akpodiogaga-a, P., &Odjugo, O. (2010). General overview of climate change impacts in Nigeria. Journal of human ecology, 29(1), 47-55.

Chan, K. M., Balvanera, P., Benessaiah, K., Chapman, M., Díaz, S., Gómez-Baggethun, E., & Turner, N. (2016). Opinion: Why protect nature? Rethinking values and the environment. Proceedings of the national academy of sciences, 113(6), 1462-1465.

Khan, M. A., & Ghouri, A. M. (2011). Environmental pollution: its effects on life and its remedies. Researcher World: Journal of Arts, Science & Commerce, 2(2), 276-285.

Derraik, J. G. (2002). The pollution of the marine environment by plastic debris: a review. Marine pollution bulletin, 44(9), 842-852.

Lovelock, C. E., & Duarte, C. M. (2019). Dimensions of blue carbon and emerging perspectives. Biology Letters, 15(3), 20180781.

Glomm, G., Kawaguchi, D., & Sepulveda, F. (2008). Green taxes and double dividends in a dynamic economy. Journal of policy modelling, 30(1), 19-32.

Agaton, C. B., &Collera, A. A. (2022). Now or later? Optimal timing of mangrove rehabilitation under climate change uncertainty. Forest Ecology and Management, 503, 119739.

Ogweno, E. O. (2021). Improving Sustainable Development of Eco-Tourism in Kenya. East African Journal of Business and Economics, 3(1), 98-103.

Written by Ms Anita Prasad, Research Scholar, Department of Economics, Faculty of Behaviour and Social Science (FBSS) Manav Rachna International Institute of Research and Studies (MRIIRS)

Promoting Trade through ICP Sutarkandi – Challenges and Opportunities

1. India-Bangladesh Macro Level Trade

India and Bangladesh share strong trade and economic relations. Bangladesh is India’s largest trading partner in South Asia, and the bilateral trade between the two countries is worth over US$10 billion (Figure 3). Moreover, Bangladesh is one of the largest contributors to India’s tourism industry. The Indian High Commission in Bangladesh issues more than one million visas annually, amongst the highest numbers issued by Indian missions globally. Most of these are tourist visas, and the majority of these visitors enter India through the land border.

Trade and connectivity are crucial to bilateral ties. In this regard, India has taken some key initiatives to further its relations with Bangladesh. These include the provision for duty-free entry of Bangladeshi products into Indian markets, investments in the development of infrastructure in Bangladesh, and the simplification of the visa process. Such steps encourage and are likely to increase, the cross-border movement of people and goods.

Figure 1: Value of Exports and Imports (Ind-Ban Trade)

Source: Export-Import Databank, Government of India.

It can be seen in Figure 2 that the total value of exports is much greater than the total value of imports in the India – Bangladesh macro-level trade. Further, the value of exports and imports have both risen significantly over the last 10 years which can be attributed to trade promotional policies, a higher level of cooperation between the two countries and increasing demand for commodities due to increased consumption patterns.

Now let’s take a look at the commodity basket of exports and imports between India and Bangladesh.

Table 1: India’s Major Commodity Exports to Bangladesh (at the HS 2-digit level)

Source: Export-Import Databank, Government of India.

Table 2: India’s Major Commodity Imports from Bangladesh (at the HS 2-digit level)

Source: Export-Import Databank, Government of India.

It can be noted from Table 1 and Table 2 that majorly raw materials and primary products are being exported to Bangladesh from India and intermediate/finished goods are being imported to India from Bangladesh. This indicates the existence of value chains between the two countries which are governing the commodity baskets of exports and imports. For example – Raw cotton is being exported from India to Bangladesh, which is then processed to apparel, clothes (finished) and paper yarn (intermediate) and exported back to India. Thus a textile value chain exists between the two countries. Similarly, other value chains can also be identified between the two countries.

Finally, let’s take a look at the trend in the total number of items exported and imported between India and Bangladesh:

Figure 2: Number of Exported& Imported Items (Ind-Ban Trade)

Source: Export-Import Databank, Government of India.

2. India-Bangladesh Macro level Border (Land) Trade

Border Trade with Bangladesh - Currently, NER has over 38 trading points (known as LCSs) with Bangladesh, of which most are functional. Tripura and Meghalaya have seven and eight functional LCSs, respectively. Importantly, more ICPs in Assam are yet to be functional. NER contributes only 8 to 10 per cent of India’s export to Bangladesh. NER’s exports to Bangladesh are mostly primary horticulture items and minerals such as coal, quick lime, ginger, oranges, and dry fish and other citrus fruits, boulder stones, dry fish, rawhides, woven fabrics & synthetic filament, etc. On the other, NER’s imports from Bangladesh are well diversified and mostly secondary items such as cement, processed foods, plastics, knitted & crocheted synthetic fabrics, garments, cement, fish, PVC pipes, wooden furniture, etc. About 75 per cent of imports from Bangladesh and 50 per cent of exports to Bangladesh cross India–Bangladesh land border. Furthermore, the land border is the favoured route for people to move between the two countries (Bhattacharjee, 2019). Thus, ICPs are very crucial for the overall India-Bangladesh Trade.

Let’s take a look at all the major ICPs on the Ind-Bangladesh border:

Table 3: Trade and Passenger movement through ICPs on Ind-Ban border (2016-17)

Source – Land Ports Authority of India, Ministry of Home Affairs.

As it can be seen in Table 3 trade through ICP Sutarkandi formed a very minute part of the overall land trade between Ind-Ban in 2016-17. This part has grown fractionally over the last 5 years but still, it is not that significant and there’s a lot of room for improvement by leveraging the opportunities and tackling the challenges which will be discussed in the coming sections. The majority of land trade between India and Bangladesh happens through ICP Petrapole which is attributed to its vast size, advanced facilities and existence of regional value chains. There is often a delay in trade through ICP Petrapole because of traffic congestion and road blockage which is why some load (Trade) needs to be shifted to other ICPs like Sutarkandi which are relatively new but are gradually developing all the required facilities to handle large consignments.

3. Trade through ICP Sutarkandi

Integrated Check Post (ICP) Sutarkandi is located in the Karimganj district of Assam, around 48kms from the main district. Sutarkandi is connected to Karimganj and Sylhet in Bangladesh by two national highways, NH-151 and NH-7. The Sutarkandi ICP was a Land Customs Station (LCS) under the North Eastern Region Commissionerate of Customs and Shillong. In January 2009, South Assam designated the LCS as a "Border Trade Centre" and it was declared an ICP in the year 2018. After being proclaimed as an ICP, this check post is maintained by the Lands Ports Authority of India (LPAI), Ministry of Home Affairs. Now, ICP Sutarkandi is used for international trade (exports and imports) and cross border passenger movement with Bangladesh. On the Bangladeshi side, the closest LCS is Sheola LCS (Sylhet), which is overseen by the Commissionerate of Customs, Excise, and VAT, Sylhet division.

Figure 3: ICP Sutarkandi – Location

Source: Author's own based on google map

Formal Trade:

In September 2019, Border Tarde Centre was taken over from the Assam government by the Lands Ports Authority of India and was declared as an ICP. It was operationalised from the same day. ICP Sutarkandi is the smallest ICP and is built over an area of only 3.38 acres. According to an LPAI official, a minimum of 30 acres of land is required for a fully functional ICP to be made with all the necessary facilities like warehouses, separate cargo & passenger terminals, quarantine facilities, testing labs, cold storage, space for loose cargo etc. Thus, currently, land acquisition is going on in Sutarkandi by LPAI, Govt. of India to expand the facilities of the ICP. It is noted that before being declared as an ICP, the LCS was used for both commodity and passenger movement. The LCS, till the time it was operational, had a separate office building for Customs and Immigration purposes. The building had a parking lot, baggage scanner, fax and computer facility, powerhouse, and trans-shipment platform, 2 weighbridges of 50 metric tonne capacity each as other facilities required to facilitate movement. All these facilities were in a dilapidated condition as they were created in 2008 and thus LPAI gave a contract to renovate these existing facilities in 2019. New facilities that are proposed at ICP Sutarkandi and are likely to be constructed after the land acquisition is done includes – Animal & Plant Quarantine, Cold Storage, Exchange Counter, Independent Truck Terminal and a Separate entrance for Indians and Bangladeshis. Right now there is a common entrance for Indian and Bangladeshi travellers due to which intermingling happens which leads to informal trade. It is to be noted that in the first step of the export process, exporters have to prepare a shipping bill with the help of a CHA (Customs House Agent). Now, there is only one qualified CHA in the entire NER who sits in Sutarkandi itself. Thus, there is a need for more qualified CHAs to facilitate the export process and make it more efficient. After this step, the shipping bill comes to ICP Sutarkandi’s Weight Bridge Operator where the items are weighed and a list of a number of vehicles is given to the BSF (Border Security Forces) & Customs. BSF’s role is to verify the driver’s identity and check him/her for any potential safety threat. Custom’s role is to check the goods that are being exported/imported and verify the quality and quantity of the same. After talking to different stakeholders in the export-import process we identified several problematic areas:

(1) Customs check all the consignments manually due to the lack of truck scanners and other technological tools. Thus, they only check 2 or 3 trucks randomly out of the entire consignment and often rely on intuition and informers to detect illegally traded items.

(2) Even though every stakeholder has a specific role in the import-export process, sometimes BSF tries to get outside of their purview and try to unnecessary scrutinize products that delay the consignments.

(3)Some exporters try to bring goods that weigh more than the specified weight carrying capacity mentioned by MoRT which causes a delay in the overall process.

Further, unlike ICP Sutarkandi, there is no weighbridge at ICP Sheola, thus items are weighted using the traditional ‘feeta’ system / volumetric system. Weight gets reduced in Bangladesh due to the feeta system which is a loss to the Indian exporters. Trade is seasonal in nature, ginger and perishable goods like citrus fruits are seasonal while coal is exported throughout the year. A maximum number of 147 trucks have passed through ICP Sutarkandi for exports in a day. Goods like limestone are cleared quickly due to the mechanised unloading process (within the vehicle) whereas coal takes a lot of time to get cleared due to manual unloading. Now let’s analyse the value of exports and imports through ICP Sutarkandi:

Figure 4: Total Trade Value through ICP Sutarkandi (2014-15 vs 2018-19)

Source: Customs, ICP Sutarkandi

As it can be seen in Figure 4 the total traded value has increased by a marginal six per cent from 2015-15 to 2018-19. This is because the value of exports has fallen by 40 per cent and the value of imports has risen by 27% over the same period, thus these two opposite phenomena have cancelled each other out leaving a marginal change in the total traded value. Also, it can be observed that the total value of imports is much greater than the total value of imports through ICP Sutarkandi in all the years. This is counterintuitive because at a macro level the value of exports to Bangladesh is much greater than the value of imports from Bangladesh as shown earlier. To further analyse these phenomena let’s compare the average value per export and average value per import through ICP Sutarkandi over the past few years.

Figure 5: Average value per export through ICP Sutarkandi in US$ (2014-15 to 2019-20)

Source: Customs, ICP Sutarkandi

Figure 6: Average value per import through ICP Sutarkandi in US$ (2014-15 to 2019-20)

Source: Customs, ICP Sutarkandi

Key Observations from Figures 5 and 6:

(1) Average value per export is much lesser than the average value per import across all the years.

(2) Average value per import has risen significantly (2.4 times) over these 6 years whereas the average value per export has almost remained the same.

Thus, despite of the large quantities of exported items through ICP Sutarkandi, the value of exports is very less compared to the value of imports because of the significantly low average value per export in contrast to the high average value per import. This difference in average value per export and import is because of the types of goods that are being exported and imported through ICP Sutarkandi. The major goods being exported are Coal, Fruits - Apple, Orange, Ginger etc., Limestone, dry fish and Imported goods like Drinks, Sweet toast, oil, food, plastic and more respectively. Raw materials like coal and raw fruits which are of low value are being exported and value-added products like drinks and food items are being imported through ICP Sutarkandi. Also, over the years, the proportion of coal (very low value) has increased in the export basket leading to a slight decrease in the average value per export, whereas the average value per import has increased significantly due to the addition of more value-added products to the import basket. Bangladesh has a very large brick manufacturing industry and Indian coal is used majorly as a raw material for this purpose. A large proportion of coal that is exported through Sutarkandi comes from Meghalaya where a local tribe called ‘Khasi’ engage in coal mining and trading. During national festivals like Eid, there is a surge in demand for products from the Bangladesh side leading to a surge in exported items. In 2020, Bangladesh couldn’t source ginger from China due to Covid-19 and hence a lot of ginger was also exported from India to Bangladesh through ICP and Steamer Ghat (riverine port) in Sutarkandi. Some exporters told that there is a huge demand of pressure cookers in Bangladesh but they can’t export it because of restrictions by the Indian government. Other such items include motorcycles and bicycles.

Informal Trade:

Apart from the formal trade that is mentioned above, there is also a significant level of informal trade going on in Sutarkandi. Since the current area of ICP is only 3.38 acres, there is a lot of open area with weak fences which is exposed to vulnerability and opportunity for informal trade.

1. Due to the intermingling of people at the border, the smuggling of YAPA tablets (a type of drug) happens in huge amounts. These tablets originate from Southeast Asian countries like Indonesia, Myanmar and Vietnam and then they enter the Indian market from where they are illegally exported to Bangladesh (since drugs are banned in Bangladesh) and they finally reach the international market. The value of these tablets grows exponentially throughout the value chain, especially when they enter the international market from Bangladesh.
2. There is also a presence of cattle smuggling in Sutarkandi on the Ind-Ban border. There is a huge tannery industry in Bangladesh, thus cattle are in huge demand. Local exporters try to export the cattle illegally through the broken fences because they find the formal channel cumbersome and time inefficient. During Ramzan, there is a huge demand for cattle from Bangladesh and thus cattle smuggling spikes during this time of the year.
3. It is also found that there exists some illegal trading of counterfeit currency at the border.

The existence of this informal trade indicates that there is a potential to increase exports through ICP Sutarkandi if this demand is catered through the formal channel. Items like YAPA tablets and counterfeit currency cannot be exported through the formal channel for obvious reasons but cattle could be a major product that could contribute to overall exports through the ICP. Thus, there is a need to streamline the exporting process by developing adequate facilities and informing the cattle exporters about the ease and efficiency of the same.

4. Conclusions and Recommendations

ICP Sutarkandi is located at a very strategic location on the India-Bangladesh border with access to all three modes of transportation – railways, roadways and waterways. This fact coupled with the vicinity of the BCIM corridor that is currently under construction makes ICP Sutarkandi a very important ICP from the trade point of view. However, to unlock its full potential several challenges which were mentioned before need to be eradicated by land acquisition, development of new facilities, leveraging tech for cargo scanning, setting up EOUs & local manufacturing units and channelizing informal trade through the formal route. Key policy recommendations are:

1. Setting up a Multi-Modal Transhipment Hub in Karimganj district by incorporating ICP Sutarkandi, Steamer Ghat and Mahisashan Railway Station.
2. Setting up Export Oriented Units (EOUs) and local manufacturing units and leveraging the prospective BCIM Corridor to boost exports through the region.
3. Inclusion of technology at the ICP for smooth and efficient cargo scanning and a clear demarcation of duties between the different stakeholders involved in the export-import process.

References

• Bhattacharjee, J. (2019) Integrated Check Posts on the India-Bangladesh border: A Field Survey and Brief Analysis. Observer Research Foundation.
• Banerjee, S.(2019) Bridging the East: Trade and Transport Connectivity in the Bay of Bengal Region. CUTS International.
• CUTS (2019) Role of Multi-modal Connectivity in Fostering Value Chains in the BBIN Sub-region.Jaipur: CUTS International.
• Shelly, B.(2009) Karimganj-Bangladesh Border Trade: A case study of Sutarkandi LCS, Assam.
• Ghosh, D. (March 2021) Field Diary Karimganj: A Strategic Location for India-Bangladesh Trade.Jaipur: CUTS International
• Karim, M. (June 2018) Bangladesh-China-India-Myanmar (BCIM) Economic Corridor: Challenges and Prospects. The Korean Journal of Defence Analysis.
• Export-Import Data Bank, Department of Commerce, Government of India (Aug 2019).
• World Bank, (May 2016) The Potential of Intra-regional Trade for South Asia.The World Bank.

Written by Mr Amol Goel, BS Economics, IIIrd Year, Indian Institute of Technology (IIT), Bombay and Dr Durairaj Kumarasamy, Associate Professor and Head, Department of Economics, Faculty of Behavioural and Social Sciences, Manav Rachna International Institute of Research and Studies (MRIIRS)

Acknowledgement: The article is written based on the research paper prepared during the internship period (August-October 2021) at the Land Port Authority of India (LPAI), New Delhi.  All the views and opinions are the author's own. Usual disclaimers apply.

MSMEs in India: Challenges and Opportunities

Introduction

After independence, the focus has been given to either agriculture or big industries through different planning. But much focus has not been given to some sectors like micro, small and medium enterprises (MSMEs). Even big industries established by Government, we called licence raj. Also, some MSMEs have been set up by the private sector. The Government tried to protect MSMEs by increasing tariffs on imports, in addition, policy (liberalization, privatization and globalisation (LPG)) reform in 1991 and allowing foreign direct investment (FDI) in various sectors, investment in MSMEs has been increased significantly. Some companies were produced the same goods that produced by domestic companies as well and as a result, MSMEs could not compete with foreign companies and failed further due to lack of technological advancement. But gradually government is realising that the MSME sector is more important for the growth and development of the nation.

The Role of MSMEs in India

MSMEs have always played a vital role in the Indian economy. It has emerged as a highly vibrant and dynamic sector in the Indian economy over the last 5 decades. It contributes significantly to the economy and social development. MSMEs have always ensured some competitive intensity between domestic and imported products. This is a reason behind country does not rely on imported goods. Government is currently more emphasising ‘Atmanirbhar Bharat’ because MSMEs have even more significance to our economic and financial strategy of the country.

Figure 1: Registered units yearly in the 

manufacturing and services sector

        Source: Annual Report 2020-21, Ministry of MSMEs, Government of India.

MSMEs are an instrument of inclusive growth which touches upon the lives of the most vulnerable and marginalised for many families. This sector seeks to empower people to break the cycle of poverty and deprivation and if nurtured well can bridge the gap and create a 1 crore job in the next 5 to 6 years. Among the entire sector, MSMEs were the largest job creator in the last 5 years. It has been found that clustering facilitates MSMEs help to combat the challenges thrown up by globalisation-cluster policies. Over time there are definitional changes happed to the sector. The following diagram brings the changes in one frame.

Figure 2: Change in MSME definition

Source: JainSurbhi(2020, October), Business line: MSMEs –redefined for growth.

Their export share is 45 per cent. It has contributed approximately 33 per cent to the GDP of the country in 2020-21. It is expected to go long way in the coming future as compared to developed countries like Germany where MSMEs contribute 55 per cent of the GDP and are already in a saturated stage. China is a manufacturing hub which is a reason that MSMEs of China is contributing 60 per cent to the GDP. If we want sustainable economic growth and also increasing export, then we have to focus on MSMEs because non-traditional products account for more than 95 per cent of MSME export. Dominating in the export of sports goods, ready-made garments, plastic products etc. Since their product is mostly handicrafts that are eco-friendly in nature. There exists a tremendous potential to expand the MSMEs leads export to boost economic growth. It also helps in creating backward linkages for large scale industries provide them with raw materials.

Importance of MSMEs

It is a major provider of employment to a large segment of the population, particularly to the informal or unorganised sector in a country like India which is more services hub than a manufacturing one. Table 2 is recorded some employment figures related to village industries during 2016-17 to 2020-2021. It is showing a constantly growing trend. It is expected that when more and more investment of capital will happen in MSMEs, it will create more employment opportunities and also help in stopping migration from rural to urban areas.

Figure 3: Village Industries: Employment per year

Note: * up to 31/12/2020; # - up to 31/03/2021

Source: Annual Report 2020-21, Ministry of MSMEs, Government of India.

They produce a diverse range of goods and services to meet the demand of domestic as well as global markets. MSMEs are thought to have lower capital-output and capital-labour ratios than large scale industries, and therefore, better serve growth and employment objective. Even not only to help in enhancing employment opportunities in the upcoming times but also help in the growth of the nation.

Figure 4: The percentage share of employment in 

rural and urban areas in the country

Note: Numbers are in Lakhs.

Source: Annual Report 2020-21, Ministry of MSMEs, Government of India. 

It has almost 3.6 million MSMEs working in the geographical expanse of the country. They are also important for the promotion of industrial development in the rural area use of local resources and mobilization of resources. The development of MSMEs is expected to lead to the regional and social development of people in the backward area as more MSMEs settle in rural and tier-3 cities. It also leads to an increasing standard of living and will reduce poverty. As per the annual report of the ministry of MSMEs in the year 2017-18, the sector contributed around 3.6 crore jobs (70 per cent) in the manufacturing sector.

Issues faced by MSMEs

Before the corona pandemic, the MSME sector endured a liquidity crunch and the pandemic further increase their problem.

1. As small businesses have declined during the lockdown phase across the country, sales plummeted to zero even when costs did not cut, this sector hitting hard pressure for money as it is.
2. During the journey of MSMEs have already faced various challenges, most of the MSMEs in India rely on NBFCs and microfinance institutions for their financing need, but lack access to the banking sector, as most of them are performing in the informal or unorganised sector.
3. There is a gap in the lack of formalization the main reason for facing the problem of financial access in the banking sector.
4. Some enterprises of MSMEs don’t have complete knowledge about the market dynamics, product trends and challenges to access the supply-demand gap to mitigate the risk.
5. Enterprises have been established in rural areas facing a lack of basic infrastructure like electricity, road connectivity, transportation, market access, etc.
6. Non-availability of suitable and advanced technology according to trend, in the digital era they use the traditional method for marketing.
7. Non-availability of skilled labour at affordable cost.
8. Government take more steps to simplify labour law but some labour laws are more challenging, therefore facing problems for working.

Government Initiatives

a) Formalization: Registration, documentation and certification of entities have been rapidly increasing in the last 5 to 6 years. In 2015, only 22 lakh MSMEs registered, now increasing at 88 lakh, a trend which is accelerating by enabling government action and the focus on ease of doing business.

b) National Manufacturing Competitiveness Programme (NMCP): This is made with the aim of enhancing the competitiveness of the Indian manufacturing sector by reducing their manufacturing costs through

• Better space utilization,
• Scientific inventory management,
• Improve process flow,
• Reduced engineering time etc.

c) Credit Guarantee Scheme: This scheme provides a guarantee to member lending institutes for loan sanction without collateral.

d) MSE Cluster Development programme: This includes infrastructure development, common facility centre etc.

e) PM Employment Generation Programme: Credit linked subsidy scheme for generation of employment opportunities through establishment of micro-enterprises in the rural and urban area.

f) Market Development Assistance scheme: This has been built to encourage exporters to access and develop overseas markets. The scheme offer funding for participation in international trade delegations and publicity.

g) Building Awareness for IPR in MSM: The government implemented several awareness programmes that stimulate the growth of the MSMEs sector to increase competitiveness between the clusters.

h) Technology and Quality Upgradation Support to MSMEs: The scheme advocates the use of energy-efficient technology in manufacturing units to reduce the cost of production.

i) Labour Reform: Introduction of Shram Suvidha Portal.

j) Stand Up India/ Start-Up India scheme: This one is made for funding for businesses start-up to particularly vulnerable weaker sections of society like SC/ST women to get easy loans from the banking sector. This scheme leads to women empowerment.

k) Mudra scheme: This scheme is for providing loans up to rupees 10 lakh to the non-corporate, non-farm small/micro-enterprises.

Need of steps to reform MSMEs

To reach the vision of a US$ 5 trillion economy, MSMEs have to play a much bigger role in employment generation, in export, in skilling people so we need more such a measure, especially in the current environment.

1. The government wants to create an independent body that can advise and provide consultancy to MSME business firms and enable them to win in the new digital world.
2. It also must want to set up a regulatory body to maintain the right balance between workers and management in industries and a growth-oriented framework for MSMEs to run in and provide sufficient protection for the rights of workers.
3. While ease of doing business has been a focus area of government, the reporting approval and compliance requirement for small businesses. India’s rank had 63rd among 190 economies in the ease of doing business index 2019. It shows an alarming situation for the emerging economy.
4. If we truly want to create a country where MSMEs can influence our economic growth then we provide a free regulatory framework that works for them rather than against them.
5. Tax reform gives tax incentives to compete with big industries.

Conclusion

MSMEs are the backbone of the resilient national economy. Prioritising their development is created to the future of the country. We are required to work on related all common national agendas and scientific solution frameworks for all stakeholders at the grassroots level.

Written by Mr Ritesh Bhurse, MA Economics, 1st Semester, Department of Economics, Faculty of Behavioural and Social Sciences (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS)

Life is a Gift

"If you don’t like the road you are walking, start paving another one" - Dolly Parton

"Life is not so much what you accomplish as what you overcome" - Robin Roberts

Now it probably seems like an article on the beauty of life, well, it isn’t.

Those two wonderful quotes on life, makes you ponder, dive into thought, about innumerable possibilities you can make and choose, but that’s not the story of everyone. It seems like now instead of using the lens of optimism, people are choosing to go with the flow, stop fighting and just put an end to it all, to their very life, to inclusively add.

Spoiler Alert! Now those lives happen jokes may not apply.

Quite recently I became familiar with the term Euthanasia, that’s an act of ending one’s life to make the pain and suffering go away, and moreover, and then linked to it but not the same, assisted suicide, was mentioned in one of the articles about Sarco Pod, and guess what? it’s a suicide machine that gives the autonomy to kill themselves, and by the way, a Did you know fact: that the practice of assisted suicide is legal in some countries.

Well, I had this word in my mind, and after reading it you may too: Why? At first, the tendency to think that’s what the world’ Headed towards, ruthless, how could they, etc., is quite common and even natural.

But even as obvious as it seems, let’s think it through, why would countries, people, in general, legalise such a practice.

Doesn’t the life of a personal matter, or maybe that ‘I’ does matter and not another person, truly and unfortunately it’s all around us, people don’t care about each other, and even if they do (which isn’t entirely absent) it’s not the same as it used to be in earlier times, and with a pandemic, we had around the corner, hearts have grown cold. Sounds cruel but the rationale for building such machines is “Too make the process easier and uncomplicated”, and now I totally think mental health should be more in focus, Added that suicide is seen as the only resort by some people, But none of them can be blamed, in fact sometimes the hurt is too much to handle, or they can’t go on without their loved ones who passed away, really, reasons are many.

The people who actually make that decision may seem or even be of sound mind when they decide to ahead and give up their life, but it could be a mere misjudgement, deception, or even loneliness, etcetera which could have caused them to take such an extreme step, that it may not even seem extreme to themselves.

But let’s go deeper, deeper enough to look at those who are constructing, building and encouraging suicidal techniques, machines, etc.

Maybe there is indeed a hidden agenda going on, to reduce the population to construct such devices in order that the person can die on their own terms, without any sort of review in between and by the way, not forgetting to mention, the Sarco Pod costs, so thinking about profit by people’s demise, sounds like an evil master plan at the back, but showcased as a welfare policy upfront, sounds like a conspiracy to me.

One of the most creative yet deceptive parts, is the term itself, sarcophagus which is different from a coffin but acts like one, as it is also adorned with inscriptions or sculptures, and this idea dates back to ancient civilizations of Egypt, Greece and Rome. Seriously what are the makers trying to say? Have a great afterlife or we are truly going to miss you, so here’s a token of our gratitude for all the days you spent here, hence we thought couldn’t decorate the device but it’s inbuilt with the latest tech, so you can even kill yourself even if you simply blink.

Even though it’s being marketed as something which can cause a peaceful and painless death, it isn’t worth it.

However we can rule out various communities, groups and in total, cultures out there with different thinking than ours, so it might seem inhuman to us, but quite humane to them, with their views as “it’s crazy for people to live against their will”, or “better to die without pain than with pain due to an incurable disease a person is currently suffering, after some time”, and for your information, that’s a part of Euthanasia.

Such an expensive project, surely they know people are suffering, and that’s no surprise, as the people who want to end their life, the figures of it are soaring.

But there are quite a number of differences from the device used in Egypt, to the one being used now and its practices, sarcophagus at that time was for the burial of the ones who had already passed away, the Sarco Pod in use now kills people but with their consent. So if you ask my take on it: Life is all about struggles, and how we become strong fighting and overcoming those, and I do admire this saying: “you don’t win or lose”, but “you win and learn”, and that’s quite true, it’s our perspective, as we can always choose to stand back up and not accept the fall that just came by, After all, if there we no problems, it would’ve been such a monotonous journey (I know you agree) as there would have been nothing to build us up.

Remember, we are never in isolation but we exist in the social cycle, A web full of twists and turns, ups and downs, holes and fulls, and acceptance is always the first step. The value of a life is very high, that’s why people, even if they don’t want to live for themselves, they live for others, who matter to them and that’s what makes it all the more meaningful when we add along with the essence of our existence, the precious and Vital being of others around us. Trust me when I say this, the life that could’ve been saved, that very breath which still was working, could be a pillar to so many in not just times that are perilous, but even in basic happiness, grief, guilt, joy, and really that’s an amazing blessing of God: Fellowship, and that’s complete when it’s not just ‘I’ but also ‘You’, Making it an ‘Us’ so stay alive, enjoy the beautiful days that have been given to you, make the right choices and save lives, even literally if you can!

Written by Ms Ocean Kalra, MA Applied Psychology, 1st Semester, Department of Applied Psychology, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS)

What if the Ongoing COVID-19 Pandemic Stretches Till 2050?

Introduction

It is a dreadful dream if this pandemic continues till 2050. But as nothing is certain in this world, we may be required to keep ourselves ready for this worst condition. Here are some comments on what might happen if this Pandemic stretches till 2050. Individually, people will lose their social abilities and become averse to social events. There will be no celebrations, gatherings, or communal cohesiveness at the local level. And on a national level, it is predicted that by 2027, India would surpass China in terms of population.

Photo copyright: www.timeshighereducation.com

Context and circumstances

At an individual level, people will lose social skills and will be averse to gatherings. Masks have already become as essential as clothes for roaming out. As a result of this, random smiles at strangers will be a thing of the past. People won't have an erect body any longer because of extremely bad posture practices. Diseases like migraine, headache, and neck pain have to befall common as cough and cold due to an exponential increase in screen time. Due to excessive concern for sanitation, there is an increase in OCDs which is expected to rise if this continues. People will gradually lose the habit of eating out. Even many set norms like compulsory waxing for women (which shouldn't be there now as well), bodybuilding for men, putting on makeup, and uncomfortable fashion; will be broken.

At the community level, there will be no parties, gatherings or community unity. Public transport, movie halls, hotels, amusement parks will never be seen as they might have been closed because of being non-profitable. A destination wedding with a few relatives from close family is the future of social events. Public places will be replaced by private centres where only one family is allowed at once. People will be more concerned about themselves and their families. Bondings will be non-existential. With the increased use of social media and lost real touch among people, society will turn more partial and biased. Minorities in terms of caste, religion, sex, or region will not be able to raise their concerns due to overwhelming reactions from the majority. Society will leave its basic structure and will redefine itself. This change can be good as well as bad. Good changes can be increased recognition of women's work, decreased physical bullying, abundant time for exploration and self-realization, overhauling of the current education system and introduction of a new education system that redefines education. While bad things will be lost unity and connection.

At the national level, there is a prediction that India will take over China in terms of population by 2027. Adding 23 years to it, It's difficult to predict which country will be the most populous, India or China. But India will definitely be a technical hub growing and expanding a lot. Drone delivery, robot assistance, and Al will be as common as plastic products nowadays. The transportation sector will renew itself and will sustain on technology. Unemployment will be widespread with many people crowding the agriculture sector. The manufacturing sector couldn't be efficient due to rules of social distancing, so it will prefer capital intensive technology leading to more unemployment. This extra workforce is likely to face two situations in which either the government upskills them and they shift to the service sector or they continue to live on petty jobs which may not provide them with a decent living. This extra unskilled labour force will eventually wipe due to famines, increased cyclones, and climate change effects. Since India will be losing many of its coastal areas due to increased flooding. Huge numbers of deaths are inevitable.

Conclusions

There will be a whole new generation who would not have seen faces without masks. They will never see community gatherings, movie halls, sharing autos, street food, hotels, amusement parks, etc. The new generation wouldn't know who those four people are in "Char log kya kahenge", because probably either there will be no one or too many people on Instagram. These all are the predictions, but this world is simply beautiful the way it is. Humans are social animals that cannot be forced to live in their silos. Human interaction and bonding together make society. Silos need to be broken as life is not about spending, it's about living.

Written by Ms Siya Sardana, BA Economics, IVth Semester, Department of Economics, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research & Studies (MRIIRS)

Eco-Bizz Magazine, Vol.1, June 2021

                    Click here to access the Magazine: Eco-Bizz Magazine, Vol.1 June 2021