TOPIC : GS 3 Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Rattling foreign investors
What is the news?
- Prime Minister Narendra Modi laid down his vision for an Atmanirbhar Bharat Abhiyan (self-reliant India initiative).
- India is emerging as a major destination for foreign direct investment (FDI) and is shifting its focus from ‘make in India’ to ‘make for the world’.
- In pursuit of this ambition, the Commerce Ministry recently reported that India attracted the highest ever FDI of $81.72 billion in 2020Â21.
- Economists argue persuasively that the surge in FDI inflows is driven by unprecedented shortÂterm portfolio investment inflows and a few major acquisition deals involving select corporations.
- An important factor that propels investors to invest in foreign lands is that the host state will keep its side of the bargain by honouring contracts and enforcing awards even when it loses.
- The host state refuses to do so, it rattles the investors, shakes their confidence in the host state’s credibility towards the rule of law, and escalates the regulatory risk enormously.
- India lost two highÂprofile bilateral investment treaty (BIT) disputes to two leading global corporations — Vodafone and Cairn Energy — on retrospective taxation.
High Profile Cases
HighÂprofile BIT disputes which stick out like a sore thumb for India rose from the cancellation of an agreement between Antrix, a commercial arm of the Indian Space Research Organisation, and Devas Multimedia, a BengaluruÂbased startÂup, for the lease of satellite spectrum.
This annulment led to three legal disputes —
- Commercial arbitration between Antrix and Devas Multimedia at the International Chambers of Commerce (ICC)
- BIT arbitrations brought by the Mauritius investors in Devas Multimedia under the India-Mauritius BIT and by Deutsche Telekom
- German company, under the India Germany BIT.
- India lost all three disputes. The ICC arbitration tribunal ordered Antrix to pay $1.2 billion to Devas after a U.S. court confirmed the award earlier this year.
- India challenged the Deutsche Telekom tribunal award in the Swiss Federal Tribunal requesting for annulment, but lost the case.
Way Forward
- Indisputably, transgressions by foreign investors should be dealt with firmly.
- Closer reading of these cases reveals that whenever India loses a case to a foreign investor, immediate compliance rarely happens.
- While these efforts may be legal, it sends out a deleterious message to foreign investors.
- It shows a recalcitrant attitude towards adverse judicial rulings. This may not help India in attracting global corporations to its shores to ‘make for the world’, as India correctly aspires.
PRELIMS PUNCHERS
- The Black Sea
It  is a marginal sea of the Atlantic Ocean lying between Europe and Asia, east of the Balkans (Southeast Europe), south of the East European Plain in Eastern Europe, west of the Caucasus, and north of Anatolia in Western Asia. The Black Sea is bordered by Bulgaria, Georgia, Romania, Russia, Turkey, and Ukraine.
The Black Sea ultimately drains into the Mediterranean Sea, via the Turkish Straits and the Aegean Sea. The Bosporus Strait connects it to the small Sea of Marmara which in turn is connected to the Aegean Sea via the Strait of the Dardanelles. To the north, the Black Sea is connected to the Sea of Azov by the Kerch Strait. The Black Sea undersea river is a current of particularly saline water flowing through the Bosporus Strait and along the seabed of the Black Sea, the first of its kind discovered.
Sources : https://www.thehindu.com/news/international/ukraine-us-launch-black-sea-drills/article35023668.ece
- Crimea
It is a peninsula located on the northern coast of the Black Sea in Eastern Europe that is almost completely surrounded by both the Black Sea and the smaller Sea of Azov to the northeast. Russia formally annexed Crimea incorporating the Republic of Crimea and the federal city of Sevastopol as the 84th and 85th federal subjects of Russia. The status of Crimea is disputed. It is claimed by Ukraine and recognized as Ukrainian by the United Nations and most other countries.
Crimea is located south of the Ukrainian region of Kherson, to which it is connected by the Isthmus of Perekop, and west of the Russian region of Kuban, from which it is separated by the Strait of Kerch though linked by the Crimean Bridge since 2018. The Arabat Spit is located to the northeast, a narrow strip of land that separates a system of lagoons named Sivash from the Sea of Azov. Across the Black Sea to its west is Romania, and to its south, Turkey.
Sources : https://www.thehindu.com/news/international/ukraine-us-launch-black-sea-drills/article35023668.ece
- Rajaji National Park
It is an Indian national park and tiger reserve that encompasses the Shivaliks, near the foothills of the Himalayas. It is spread over 820 km2, and three districts of Uttarakhand: Haridwar, Dehradun and Pauri Garhwal. In 1983, three wildlife sanctuaries in the area namely, Chilla, Motichur and Rajaji sanctuaries were merged into one. Rajaji National Park has been named after
- Rajagopalachari (Rajaji), a prominent leader of the Freedom Struggle.
Rajaji National Park of India is nestled between the Shivalik ranges and the Indo-Gangetic plains. Broadleaved deciduous forests, riverine vegetation, scrubland, grasslands and pine forests form the range of flora in this park. The dense jungles here are home to vivacious wildlife. The varied topography of the national park is also responsible for vivid animal life inhibited here.
- itat e-dwar
Union Minister for Law & Justice, Communications and Electronics & IT, launched the e-filing portal of Income Tax Appellate Tribunal (ITAT), ‘itat e-dwar’. It is a larger narrative of transformation that India is undergoing through digital medium.
The launch of e-filing portal ‘itat e-dwar’ will enhance the accessibility, accountability and transparency in the day to day working of the ITAT. It would not only result in economization of the use of paper, savings in costs but also rationalization of the fixation of cases leading to quicker disposal of cases.
Sources: https://pib.gov.in/PressReleasePage.aspx?PRID=1730394
PRELIMS QUESTIONS
- Consider the following statement regarding to The Black Sea
- It is a marginal sea of the Atlantic Ocean lying between Europe and Africa
- The Black Sea ultimately drains into the Mediterranean Sea
Select the correct statement using code given below.
(a). 1only      (b) 2 only
(c).Both      (d). None of above
Answer: A
It  is a marginal sea of the Atlantic Ocean lying between Europe and Asia, east of the Balkans (Southeast Europe), south of the East European Plain in Eastern Europe, west of the Caucasus, and north of Anatolia in Western Asia. The Black Sea is bordered by Bulgaria, Georgia, Romania, Russia, Turkey, and Ukraine.
The Black Sea ultimately drains into the Mediterranean Sea, via the Turkish Straits and the Aegean Sea. The Bosporus Strait connects it to the small Sea of Marmara which in turn is connected to the Aegean Sea via the Strait of the Dardanelles. To the north, the Black Sea is connected to the Sea of Azov by the Kerch Strait. The Black Sea undersea river is a current of particularly saline water flowing through the Bosporus Strait and along the seabed of the Black Sea, the first of its kind discovered.
- Rajaji National Park is located in which of the following state
- Uttarkhand
- Himachal Pradesh
- Sikkim
- Assam
Answer: A
It is an Indian national park and tiger reserve that encompasses the Shivaliks, near the foothills of the Himalayas. It is spread over 820 km2, and three districts of Uttarakhand: Haridwar, Dehradun and Pauri Garhwal. In 1983, three wildlife sanctuaries in the area namely, Chilla, Motichur and Rajaji sanctuaries were merged into one. Rajaji National Park has been named after
- Rajagopalachari (Rajaji), a prominent leader of the Freedom Struggle.
Rajaji National Park of India is nestled between the Shivalik ranges and the Indo-Gangetic plains. Broadleaved deciduous forests, riverine vegetation, scrubland, grasslands and pine forests form the range of flora in this park. The dense jungles here are home to vivacious wildlife. The varied topography of the national park is also responsible for vivid animal life inhibited here