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- Right to access internet is fundamental right declares Kerala High Court
- Legal rights of Deities in India, Difference in Natural and Juristic Person
- Bru refugees refuse to return to Mizoram
- No animal sacrifice in Tripura temple-Orders High Court
- EC’s Order on Reducing Sikkim CM’s Disqualification Period
- Law Ministry issues corrigendum to Jammu and Kashmir Reorganisation Act
- Appointment of the Judges in India.
- New Chief Justice of India- How is CJI appointed?
- Indian Penal Code 1860, HM Amit Shah wants to Overhaul IPC
- National Population Register (NPR) 2020
- Whistle Blowers Allegations on Infosys
Governance & Social Justice
- 60% girls in Delhi colleges anaemic
- Niti aayog’s School education quality index
- Multipurpose National Identity Card
- Population pyramid : India Vs China, Demographic dividend Phase of India
- UN Population Report, India will become the most populous country by 2027
- Supreme Court upholds SC and ST (Prevention of Atrocities) Amendments Act
- Comparing Population Pyramids of India and China
- Waqf boards-Their governance and purpose
- Harvard Admissions Case
- Pradhan Mantri Jan Arogya Yojana- Ist Anniversary, Problems and solutions
- Significance of sexual and Reproductive Health-Status of reproductive services in India
- Pregnancy in Old Age, What is In Vitro Fertilisation-Risks and legal shortcomings
- Supreme Court Judgement on NGOs and RTI
- Social Stock Exchange
- Rajasthan Govt changes EWS norms, Sets Rs 8 lakh family income as only criteria
- Global hunger index 2019
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- Cyprus dispute explained
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- India Pakistan Cross LOC Trade suspended, Should India revoke suspension?
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- Mizoram to have Broad Gauge railway line by 2021
- Demand downturn in Indian Economy
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- Nagas Kukis Conflict, What is the cause of the latest tensions?
- Case against 50 Celebrities controversy
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Science & Technology
- ISRO’S Project NETRA
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- WHO launches first World report on Vision
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- New King of the Moons in the Solar system is Saturn
- What Is Spectroscopy ?
- Quantum supremacy
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- C40 Cities
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- Forest Plus 2.0
- Himalayan States seeks Green Bonus
- India to Phase Out Single Use Plastic (SUP) by 2022
- Role of Volcanoes in Global Warming
- NH 766 ban controversy, Protests in Kerala against night traffic ban on the forest stretch
- Climate Change needs Global Solution
- Aarey Forest -2185 trees to be cut for Mumbai metro
- Government to build 1400 km long Green wall
- Graded Response Action Plan in Delhi
- Aerosol formation brightening clouds
- Anthrax outbreak in Pobitora Wildlife Sanctuary, Two affected buffaloes died
- Species in News from June to October 2019
- Climate Action Summit 2019
Tag:GS-2||International Relations|| India & it’s Neighbours|| Pakistan
What is the issue?
- In April 2019, cross-LoC (Line of Control) trade was suspended by India.
- With the increasingly strained relations with Pakistan now, it is wise that India makes a revised strategy on restarting cross-LoC trade.
When was connectivity established?
- Shimla Agreement
- It was in 1972 that the LoC between India and Pakistan was thought of, as a part of the Shimla Agreement.
- Though the LoC was mostly an issue of contention, it was 33 years later that the two governments decided to take a significant step.
- On April 7, 2005, then Indian PM Manmohan Singh flagged the first cross-LoC bus, called ‘Karwaan-e-Aman’.
- It was operated from the Sher-i-Kashmir stadium in Srinagar towards Muzaffarabad.
- The Confidence Building Measure (CBM) came as a humanitarian reform reuniting divided families and friends.
How did trade come up?
- In 2008, the two governments decided to take forward the existing transport potential to trade.
- The Indian and Pakistani Foreign Ministers decided to finalize the intra-Kashmir trade and truck service modalities.
- According to the barter system, cross-LoC trade began in October 2008.
- It took place across Uri-Muzaffarabad and Poonch-Rawalakot for a list of 21 mutually agreed tradable items.
How significant was this?
- The purpose of the trade measure was to turn social interconnectivity into economic interdependence between the two different but distinct sides of the LoC.
- It was correctly expected that commerce would prosper on the basis of people living on either side’s emotional capital.
- In all, the LoC gave rise to hope in the virtuous cycle of trade, confidence, and people-to-people contact, bridge-building and re-connecting societies.
- Cross-LoC trade was much more than simply an exchange of goods, as the sentiments of the people involved made it efficient.
- Cross-LoC trade has been significantly successful in connecting the two divided sides of Jammu and Kashmir.
- It thus created a peace constituency in a region that was otherwise tense.
- Trade in the amount of 7,500 crore was transacted across the LoC during 2008-2018.
- This resulted in more than 1.7 lakh working days and an approximate freight income of Rs.66.4 crore for J&K and Rs. 90.2 crore for workers.
- A sizeable community of traders, businesses, transporters, and labourers have benefited from this trade.
What are the trade facilitation measures to be taken?
- Given the present situation in J&K, it is imperative that India plans an outreach connecting all stakeholders including the ecosystem of cross-LoC trade.
- Besides, there is a need for a revised strategy towards the re-initiation of cross-LoC trade.
- Concerns around transparency have negatively impacted this trade over the last decade.
- So, the lack of transparency needs to be addressed in the complete ecosystem.
- The measures could include standard operating procedures, invoicing, GST norms, and trader registration.
- Other steps to address the long-standing concerns around cross-LoC trade include –
- Clarifications on harmonized system codes to avoid misrepresentation of commodities.
- Rules of origin to avoid third country goods.
- GST rates and inter-State taxation rules to avoid tax evasions.
- A trader registration policy to ensure that credible traders are involved in the trade
- Digitization of systems and procedures at the trade facilitation centers at Uri and Poonch is another important step to help take LoC trade to the next level.
- Globally too, digitization of procedures and lower human intervention are the two major pillars that drive trade across borders.
- Digital platforms to monitor invoicing, traders’ records, balancing and truck details will ensure real-time checks by the authorities, leaving lesser room for misuse.
- Until the trade suspension, both bus links and trade had survived for more than a decade despite intermittent suspensions and ceasefire violations.
- The current suspension of LoC trade could be seen as a window of opportunity to address the concerns hitherto unaddressed.
- The cross-LOC trade should be revived in a stronger and more organized manner.
- In its new avatar, Cross-LoC trade could continue to prove the value of a peace-through-trade policy, and one that has stood the test of time globally.
Mains model question
- Suspension of cross LoC trade between Jammu & Kashmir and Pakistan-Occupied-Kashmir (PoK) is part of a larger change in the strategy for dealing with kashmir at the policy level. Discuss.