Economy - Basics

What is an Economy ?

Economy is defined as wealth and resources of a country or region, esp. in terms of the production and consumption of goods and services.An economy consists of the economic systems of a country or other area - the labor, capital, and land resources; and the manufacturing, production, trade, distribution, and consumption of goods and services of that area.A given economy is the result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as a few of the main factors. 

Types of  Economies or Economic Systems 

There are many different kinds of economies around the world, but they all fall into two basic categories. One category is the command economy which is also called central planning. It has strong government control. The other type is the free market economy which is also called capitalistic economy. In this type of economy, there is very little government control. Currently, all real economies combine parts of capitalism with those of central planning. Each country around the world differs from one another in the amount they use the two systems. For example, the United States and Canada have economic systems that use very little government control so they are usually described as capitalistic.

Command economies have strong government control. So if you wanted to start your own business, you would have to get permission from the government. In a command economy, the government owns most of the industries and companies. One type of command economy is communism. True communism is a type of economic system that doesn't allow ownership of private property. Most of the command economies that existed in the world had strong central governments. These governments dictated how much was made and what was made by industry. The communists believed that life is a class struggle between workers and the owners of a industry or factory.In a communistic economy, goods were distributed on an as-needed-basis. In the command economy, the government makes the decisions as to what goods to supply to the people. The Soviet Union was an example of a communistic command economy. Many people think China is still a communist country. But they, and other countries like them, have given control over some of their economic activities back to the people. 

The other basic type of economy is the free market or capitalistic economy. It is an economy that has very little  government control. So if you wanted to start your own business, you would not have to get permission from the government. In a free market economy, the consumer decides what they want to buy. A consumer is a customer. The law of supply and demand is what drives the free market economy. Supply and demand is what sets the prices of goods and services in the free market economy. As supply goes up the prices go down. When the demand goes up the prices go up. Due to low government control, people are free to spend their money the way they want to. People can take the risk of starting their own business and losing money or starting their own business and making lots of money. People like James Ford Bell and Will Kellogg took risks in starting their own breakfast cereal businesses. Some examples of countries with a free market economy are The United States of America, Germany, and England.

 In the world today free market economies have social programs such as the Social Security Systems. Command economies like China are introducing free market economies into their economy. 

The basic and general economic systems are :

Market economy  ("hands off" systems, such as Laissez-faire capitalism)

Mixed economy  (a hybrid that blends some aspects of both market and planned economies)

Planned economy  ("hands on" systems, such as state socialism or state capitalism)

Traditional economy  (a generic term for older economic systems)

Command (Centrally Planned) Economic Systems: (a generic term for older economic systems)

Participatory economics (a system where the production and distribution of goods is guided by public participation)

Gift economy (where an exchange is made without any explicit agreement for immediate or future rewards)

 Barter economy (where goods and services are directly exchanged for other goods or services)

List of Economic Systems - Click Here  

An open economy is an economy in which there are economic activities between domestic community and outside, e.g. people, including businesses, can trade in goods and services with other people and businesses in the international community, and flow of funds as investment across the border. Trade can be in the form of managerial exchange, technology transfers, all kinds of goods and services. Although, there are certain exceptions that cannot be exchanged, like, railway services of a country cannot be traded with another to avail this service, a country has to produce its own. This contrasts with a closed economy in which international trade and finance cannot take place. No economy is totally open or closed in terms of trade restrictions, and all governments have varying degrees of control over movements of capital and labor. Degree of openness of an economy determines a government's freedom to pursue economic policies of its choice, and the susceptibility of the country to international economic cycles. In terms of the percentage of the GDP dependent on foreign trade, the UK is a more open economy than the US.

Closed Economy is an economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no imports are brought in and no exports are sent out. The goal is to provide consumers with everything that they need from within the economy's borders. A closed economy is the opposite of an open economy, in which a country will conduct trade with outside regions.

Sectors of Economy : 

A nation’s economy can be divided into various sectors to define the proportion of the population engaged in the activity sector. This categorization is seen as a continuum of distance from the natural environment. The continuum starts with the primary sector, which concerns itself with the utilization of raw materials from the earth such as agriculture and mining. From there, the distance from the raw materials of the earth increases.

Primary Sector

The primary sector of the economy extracts or harvests products from the earth. The primary sector includes the production of raw material and basic foods. Activities associated with the primary sector include agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying. The packaging and processing of the raw material associated with this sector is also considered to be part of this sector.

In developed and developing countries, a decreasing proportion of workers are involved in the primary sector. About 3% of the U.S. labor force is engaged in primary sector activity today, while more than two-thirds of the labor force were primary sector workers in the mid-nineteenth century.

Secondary Sector

The secondary sector of the economy manufactures finished goods. All of manufacturing, processing, and construction lies within the secondary sector. Activities associated with the secondary sector include metal working and smelting, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding.

Tertiary Sector

The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, health care, and law.

In most developed and developing countries, a growing proportion of workers are devoted to the tertiary sector. In developed countries like the U.S., more than 80% of the labor force are tertiary workers.

Quaternary Sector

The quaternary sector of the economy consists of intellectual activities. Activities associated with this sector include government, culture, libraries, scientific research, education, and information technology.

Quinary Sector

Some consider there to be a branch of the quaternary sector called the quinary sector, which includes the highest levels of decision making in a society or economy. This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media.

An Australian source relates that the quinary sector in Australia refers to domestic activities such as those performed by stay-at-home parents or homemakers. These activities are typically not measured by monetary amounts but it is important to recognize these activities in contribution to the economy.

Informal Economy or Informal Sector :

An informal economy is economic activity that is neither taxed nor monitored by a government, contrasted with a formal economy. The informal economy is thus not included in that government's Gross National Product (GNP). Although the informal economy is often associated with developing countries, all economic systems contain an informal economy in some proportion.The terms "under the table" and "off the books" typically refer to this type of economy. The term black market refers to a specific subset of the informal economy. The term "informal sector" was used in many earlier studies, and has been mostly replaced in more recent studies which use the newer term.

The two types of informal sector activities can be described as follows:

1. Coping strategies (survival activities): it includes barter of goods and services, mutual self-help, odd and casual jobs, temporary jobs, unpaid jobs, street trading, and other such direct sale activities,subsistence agriculture, multiple job holding.n less developed countries much of the work done by women is in the informal sector; this includes such activities as petty trading, small-scale agriculture, and crafts.

2. Unofficial earning strategies (illegality in business):
a) Unofficial business activities: tax evasion, avoidance of labor regulation and other government or institutional regulations, no registration of the company;
b) Underground activities: crime, corruption - activities not registered by statistical offices.

Ways to measure Economic Activity :

There are a number of ways to measure economic activity of a nation. These methods of measuring economic activity include:

Consumer spending
Exchange Rate
Gross domestic product
GDP per capita
GNP
Stock Market
Interest Rate
National Debt
Rate of Inflation
Unemployment
Balance of Trade

What is Economic Growth ?

Economic growth is  an increase in the capacity of an economy to produce goods and services, compared from one period of time to another . It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.

What is GDP ?

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time.Gross Domestic Product, is a primary indicator used to assess the strength of a country’s economy representing the total value of all the goods and services produced over a particular time frame. Normally, GDP is articulated as an evaluation to the preceding quarter or fiscal. It helps the foreign investors to assess the safety of their investments, popularly known as FDI – Foreign Direct Investments in overseas countries and may either fix caps in dealing or may safely stay from investing. It has a great bearing on the value of the overseas countries’ currency value vis-à-vis its own currency to determine the value of business likely to be obtained while dealing with other countries.

"Gross" means that GDP measures production regardless of the various uses to which that production can be put. Production can be used for immediate consumption, for investment in new fixed assets or inventories, or for replacing depreciated fixed assets. "Domestic" means that GDP measures production that takes place within the country's borders.

  GDP can be contrasted with gross national product (GNP) or gross national income (GNI). The difference is that GDP defines its scope according to location, while GNP defines its scope according to ownership.
 
Why Is the GDP Growth Rate Important?

The GDP growth rate is the most important indicator of economic health. If it's growing, so will business, jobs and personal income. If it's slowing down, then businesses will hold off investing in new purchases and hiring new employees, waiting to see if the economy will improve. This, in turn, can easily further depress the economy and consumers have less money to spend on purchases. When the economy is expanding, the GDP growth rate is positive. However, in a recession, the economy contracts. When that happens, the GDP growth rate is negative.

What is the GDP Growth Rate?

The GDP growth rate measures how fast the economy is growing. It does this by comparing one quarter of the country's economic output (Gross Domestic Product) to the last.The GDP growth rate is driven by the four components of GDP. By far, the most important driver of GDP growth is personal consumption, which is 70% of the total economic output. This includes retail sales. GDP growth is also driven by business investment, which includes construction and inventory levels. Government spending is another driver of growth, and is sometimes necessary to jump start the economy after a recession. Last, but not least, are exports and imports. Exports drive growth, but increases in imports have a negative impact.

How is GDP Calculated ?

GDP = private consumption + gross investment + government spending + (exports − imports)

GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X – M).

Y = C + I + G + (X − M)

Description of each GDP component:

C (consumption) is normally the largest GDP component in the economy, consisting of private (household final consumption expenditure) in the economy. These personal expenditures fall under one of the following categories: durable goods, non-durable goods, and services. Examples include food, rent, jewelry, gasoline, and medical expenses but does not include the purchase of new housing.

I (investment) includes, for instance, business investment in equipment, but does not include exchanges of existing assets. Examples include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean purchases of financial products. Buying financial products is classed as 'saving', as opposed to investment. This avoids double-counting: if one buys shares in a company, and the company uses the money received to buy plant, equipment, etc., the amount will be counted toward GDP when the company spends the money on those things; to also count it when one gives it to the company would be to count two times an amount that only corresponds to one group of products. Buying bonds or stocks is a swapping of deeds, a transfer of claims on future production, not directly an expenditure on products.

G (government spending) is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchase of weapons for the military, and any investment expenditure by a government. It does not include any transfer payments, such as social security or unemployment benefits.

X (exports) represents gross exports. GDP captures the amount a country produces, including goods and services produced for other nations' consumption, therefore exports are added.

M (imports) represents gross imports. Imports are subtracted since imported goods will be included in the terms G, I, or C, and must be deducted to avoid counting foreign supply as domestic.

What is Economic Development ?

Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.

Difference between Economic Growth and Economic Development :

 Economic development differs from economic growth.Economic development is a policy intervention endeavor with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP.

Economic Growth and Development

How Economy Works ?

An economy consists of all the wealth and resources of a society. Within this society, individuals and businesses interact daily--buying, selling, working and producing. Understanding how an economy works is a central task of economics, which studies how societies allocate scarce resources to satisfy wants and needs. Economists believe understanding the ways in which different societies allocate scarce resources helps to explain why some nations are prosperous and others are not. To explain how economics and economies work, economists rely on economic models, which represent in mathematical or graphic forms a simplified version of real-life economic activity.

A favourite model among economists for explaining how economies work is a circular flow diagram. This simplifies the overall economy by reducing it to two basic economic actors: consumers and companies. The circular flow depicts an ongoing process of buying and selling among these two classes. Companies use factors of production, or inputs, such as land, labour, and capital (production facilities and machinery, for example) to manufacture goods and services. They offer these products for sale, and consumers buy them. Meanwhile, consumers sell inputs, such as their labour, to companies, for which they receive money, which they then use to purchase the goods and services they want and need.

NAM Summit - 2012

The 16th Summit of the Non-Aligned Movement was held from 26 to 31 August 2012 in Tehran, Iran. The summit was attended by leaders of 120 countries,including 24 presidents, 3 kings, 8 prime ministers and 50 foreign ministers.The summit consisted of two preceding events: a "Senior Officials Meeting" on 26 and 27 August 2012, and a "Ministerial Meeting" on 28 and 29 August 2012. The leaders summit took place on 30 and 31 August. Egyptian President, Mohammad Morsi, officially handed the presidency of the Non-Aligned Movement (NAM) to Iranian President Mahmoud Ahmadinejad, during the inaugural ceremony of Leaders' Meeting.Iran will hold the NAM presidency for three years until the 17th summit in Venezuela in 2015.As of August 2012, the organisation consists of 120 member states, including the non-UN member state of Palestine, and 21 other observer countries. The countries of the Non-Aligned Movement represent nearly two-thirds of the United Nations' members and contain 55% of the world's population.

Final Document of 16th NAM Summit,Tehran 

Final Document of NAM Summit - 2012


Tehran Declaration - 2012

 The following declaration issued by the Tehran summit at its conclusion on 31 August sums up the summit's perspective and demands on some key international issues

WE, the Heads of State or Government of Non-Aligned Countries, gathered at our XVI Conference held in Tehran, the Islamic Republic of Iran, on 30-31 August 2012, undertook a review of the international situation with a view to making an effective contribution to the solution of the major problems of concern to all NAM Member States and to entire Humankind, and,

Inspired by the vision, principles and objectives of the Non-Aligned Movement, articulated in Bandung (1955) and Belgrade (1961), and guided by the Declaration of Purposes and Principles in our efforts to achieve a world of peace, equality, cooperation and well-being for all, drawing upon the Movement's experience in the past and its great potential today,

Reaffirming the lasting validity and the continuing relevance of the NAM vision, principles and objectives in the contemporary international situation,

Strengthened by our past achievements in the struggle against imperialism, colonialism, neo-colonialism, racism, apartheid and all forms of foreign intervention, interference, aggression, occupation, domination or hegemony, and staying away from power alliances and their confrontations, continue to be fundamental elements in the policy of non-alignment,

Renewing our commitment to the NAM principles and objectives and our pledge to strive to make a constructive contribution towards building a new pattern of international relations based on the principles of peaceful coexistence, cooperation among nations and the right to equality of all States,

Continuing to uphold the principles of sovereignty and the sovereign equality of States, territorial integrity, self-determination and non-intervention in the internal affairs of any State; taking effective measures for the prevention and suppression of acts of aggression or other breaches of peace, to defend, promote and encourage the settlement of international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered; refraining in international relations from the threat or use of force against territorial integrity or political independence of any State or in any other manner inconsistent with the purposes and principles of the UN Charter,

Declare that:

1. To build a fair, inclusive, transparent and effective system of joint global governance, based on justice and equitable participation of all countries and to address present challenges and risks stemming from global security threats, environmental hazards, climate change, migration, contagious diseases, extreme poverty, among others, the NAM Member States should coordinate their positions and join force in pressing on the interests of the developing world. To do so, a number of priorities are as follows:

a. Global governance is broad in scope and encompasses many issues of global interest and concerns than merely economic issues. The world faces challenges in security, social and environmental fields. International peace and security still continue to be high on the priority scale of many countries. The current international decision-making architecture in the fields of peace and security is outdated and much more resistant to any change.

b. The United Nations as the universal and inclusive multilateral body should play a fundamental role in the institutional and legal framework of global governance. Thus, the United Nations could and should have a major role in efforts undertaken to find common solutions to common problems, including a coordinating role among all international and regional agencies. Nonetheless, for the UN to remain at the forefront of any discussion on global governance, focus should further be on its strengthening and modernising. Towards this end, it is especially essential to revitalise the UN General Assembly, including in the area of international peace and security, and reform the UN Security Council to reflect the realities of today's world.

c. The growing importance of developing countries is yet to be sufficiently reflected in the governance structures of existing international key decision-making bodies. Key decisions concerning the issues of global governance can no longer be the preserve of a small group of countries. Policies are being made across a broadening range of issues, which affect all in world politics. Thus, it is imperative that developing countries could have a greater voice and participation in the major institutions, which coordinate policies at the international level.

d. Crises in the past several years have exposed the shortcomings and failures of international financial institutions, which adversely affect their ability to address crises and achieve adequate macroeconomic policy coordination. As they were established following World War II, they fail to address appropriately current world challenges and, therefore, adversely affect developing countries.

e. In the international community not every nation shares similar values and opinions. To live in peace and harmony the diversity within the global society should be acknowledged and respected. Thus, the attempts to impose values on other members of the international community should be thwarted.

2. Occupation of Palestine lies at the heart of the protracted crisis situation in the Middle East. Any solution to this crisis requires the termination of the occupation, crimes and violations committed by Israel, the occupying power, restoration of the inalienable right of the Palestinian people to self-determination and the establishment of their independent and viable State of Palestine with Al-Quds al-Sharif as its capital. The restoration of the national rights of the Palestinian people is a basic prerequisite for the establishment of an equitable, comprehensive and lasting peace in the area.

3. Racism and racial discrimination are affronts to human dignity and equality, and the resurgence of contemporary and new forms of such abhorrent crimes in various parts of the world is a matter for grave concern. Thus, it is imperative to address with greater resolve and political will all forms and manifestation of racism, racial discrimination, xenophobia and related intolerance including new forms of slavery and trafficking in persons, wherever they occur.

4. All human rights are indivisible, interdependent and interrelated, and human rights issues must be addressed through a constructive, non-confrontational, non-politicised, non-selective and dialogue-based as well as cooperative approach, in a fair, equal and balanced manner, with objectivity, respect for cultural diversity and national sovereignty and territorial integrity, non-interference in the internal affairs of States, taking into account the political, historical, social, religious and cultural particularities of each country. Special attention should be paid to the rights of the youth and women and the way be paved for building capacity in this respect and facilitating their participation in the politico-social and economic processes.

5. Nuclear weapons are the most inhumane weapons ever conceived. The maintenance of strategic and tactical nuclear stockpile and their continued modernisation, as well as new military doctrines setting the rationale for their possible use, particularly against non-nuclear weapon states (NNWS), represent the greatest threat to humankind. The Non-Proliferation Treaty (NPT) did not provide a right for nuclear weapon states to keep their nuclear arsenals indefinitely. States Parties to the NPT have obligations under Article VI of the NPT to destroy all nuclear weapons within a time-bound framework, which is yet to be fulfilled. It is imperative to conclude a comprehensive convention on nuclear disarmament.

6. All states should be able to enjoy the basic and inalienable right to the development, research, production and use of atomic energy for peaceful purposes, without any discrimination and in conformity with their respective international legal obligations. Therefore, nothing should be interpreted in a way to inhibit or restrict the right of states to develop nuclear energy for peaceful purposes. States' choices and decisions, in the field of peaceful uses of nuclear technology and their fuel cycle policies, including those of the Islamic Republic of Iran, must be respected.

7. The inviolability of peaceful nuclear activities should be upheld and any attack or threat of attack against peaceful nuclear facilities operational or under construction amounts to a serious danger to human beings and the environment, and constitutes a grave violation of international law, of the principles and purposes of the Charter of the United Nations, and of regulations of the IAEA [International Atomic Energy Agency]. There is a pressing need for a comprehensive multilaterally negotiated legal instrument prohibiting attacks, or threat of attacks on nuclear facilities devoted to peaceful uses of nuclear energy.

8. Non-Aligned countries agree to refrain from recognising, adopting or implementing extra-territorial or unilateral coercive measures or laws, including unilateral economic sanctions, other intimidating measures, and arbitrary travel restrictions, that seek to exert pressure on Non-Aligned Countries - threatening their sovereignty and independence, and their freedom of trade and investment - and prevent them from exercising their right to decide, by their own free will, their own political, economic and social systems, where such measures or laws constitute flagrant violations of the UN Charter, international law, the multilateral trading system as well as the norms and principles governing friendly relations among States; and in this regard, they agree to oppose and condemn these measures or laws and their continued application, persevere with efforts to effectively reverse them and urge other States to do likewise, as called for by the General Assembly and other UN organs; agree to request States applying these measures or laws to revoke them fully and immediately.

9. All acts of terrorism, in all their forms and manifestations, wherever and by whoever committed, are unequivocally condemned. All States should abide by their international obligations in addressing the threat of terrorism, which continues to adversely affect peace, security, stability and development of many NAM countries. All victims of terrorism, including the Iranian civilian researchers and scientists who have fallen victim to inhumane terrorist campaign, deserve the deepest sympathy.

10. Dialogue among religions, cultures and civilisations should be enhanced, through supporting efforts made at the international level, towards reducing confrontation, suppressing xenophobia and islamophobia, promoting respect for diversity based on justice, fraternity and equality should be promoted, and all attempts of uniculturalism or the imposition of particular models of political, economic, social, legal or cultural systems should be opposed, and promote dialogue among civilisations, culture of peace and inter-faith dialogue, which will contribute towards peace, security, stability and development.

11. The Non-Aligned Movement should mobilise all its capabilities in order to implement the decisions of its leaders, as expressed in its documents. Accordingly, NAM should consider the possibility of creating necessary mechanism with a view to following up on its decisions.

 

Tehran Declaration 2012

Agro-Ecological Regions of India

 The concept of Agro-ecological region is a modification and improvement on agroclimatic regions.There is distinction between agro-ecological region and agro-climatic region.Agroclimatic region is a land unit in terms of major bioclimate and length of growing period and which is climatically suitable for certain range of crop cultivation.Agro-Ecological region is the land unit carved out of agro-climatic region when superimposed on landform and soil condition that acts as modifier of the length of growing period.Therefore,within an agro-climatic region there may be a few agro-ecological regions depending on soil condition.This approach has been used in delineating agro-ecological regions of India. In the demarcation of agro-ecological regions of India,the agro-climatic regions of India have been subdivided on the basis of soil type.In the meso regions thus obtained,the length of growing period has been superimposed. This method has resulted into 20 agro-ecological regions.

Agro-Ecological regions (list)
Agro - Ecological Zones in India
Agro-Ecological Zones in India 1

More Info - Click Here

Environmental Laws in India

Introduction 

In 1972,113 world governments assembled in Stockholm to participate in the UN conference on Human Environment. The Stockholm conference proclaimed that,"The protection and improvement of human environment is a major issue which affects the well being of people and economic development throughout the world and it is the duty of all government and people to exert common effort for the preservation and improvement of human environment, for the benefit of all people and their posterity". After the United Nations Conference on the Human Environment held at Stockholm in 1972, where India was a participant, it was realized that that a framework of laws was necessary to deal with environmental hazards that was resulting from the process of development.

India was the first country to impose a constitutional obligation on the state and citizens to protect and improve the environment as one of the primary duties.

Environmental law is an important instrument of environmental management. The existing laws relating to the environment has developed through legislative and judicial initiative in India. For a long time the subject of environment was a part of various civil and criminal laws specifying rights of individuals, groups of people and the state over the nature i.e., land, water, air, plants, wild life, etc. The Constitution of India clearly states that it is the duty of the state to 'protect and improve the environment and to safeguard the forests and wildlife of the country'. The Constitution of India imposes a duty on every citizen 'to protect and improve the natural environment including forests, lakes, rivers, and wildlife'. Both the Directive Principles of State Policy and Fundamental Rights refer to the environment. In 1976, the forty-second amendment to the Constitution introduced principles of environmental protection through Articles 48A and 51A (g). Article 48A, part of the Directive Principles of State Policy imposes obligation upon the State to protect and improve the environment. Article 51A (g) of the Constitution also imposes obligation upon the citizens to protect and improve the environment. Owing to the amendment, the subjects of “forests” and “protection of wild animals and birds” have been moved from the State List to the Concurrent List. These constitutional provisions have been endorsed by a number of Acts, Rules, and Notifications. After the United Nations Conference on the Human Environment held at Stockholm in 1972, where India was a participant, it was realized that that a framework of laws was necessary to deal with environmental hazards that was resulting from the process of development. The first law on protection of environment in India was the Water (Prevention and Control of Pollution) Act of 1974 and it was followed by other major enactments.

Constitutional Provisions 

The Constitution of India came into force on 26th January, 1950. Originally, the constitution contains no specific provisions for environmental protection. However, certain specific provision have been incorporated by the Constitution (Forty Second Amendment) Act, 1976 and subsequent amendments. Indian Constitution is one of the very few constitutions in t he world, which provides for specific provision for the protection and improvement of the Environment. 

The amendment provided for the following inclusions:

(1) Directive Principles-Article 48 A: By the Constitution (42nd Amendment) Act - "The State shall endeavor to protect and improve the environment and to safeguard the forest and wildlife of the country".
(2) Fundamental Duties -Article 51A(g): By Constitution (42nd Amendment) Act - "It shall be the duty of every citizen of India to protect and improve the natural environment including forests, lakes, rivers and wildlife and to have compassion for living creatures".
Thus the Indian Constitution makes two fold provisions:

(a) On the one hand, it gives directive to the State for the protection and improvement of environment.
(b) On the other hand the citizens owe a constitutional duty to protect and improve natural environment. 

The Government of India to accelerate the pace for environment protection, further amended the constitutional text by making the following changes: 

(I) Seventh Schedule of the Constitution:

 In the Concurrent List, 42nd Amendment Inserted

(a) Entry 17-A, providing for forests.
(b) Entry 17-B, for the protection of wild animals and birds.
(c) Entry 20-A, providing for population control and family planning.

(II) Eleventh Schedule of the Constitution

This new schedule is added by the Constitution 73rd Amendment Act, 1992. This schedule has 8 entries (2, 3.6.7, 11, 12, 15 and 29) providing for environmental protection and conservation.

(III) Twelfth Schedule of the Constitution

The entry number 8 of this schedule added to the constitutional text by the 74th Amendment Act, 1992, provided for the Urban Local bodies, with the function of environment protection and promotion of ecological aspects to them.

Due to the above changes the division of legislative power between the Union and the States is spelt out in the following three of the 7th Schedule of the constitution.

List I (Union List) Entries 

52. Industries.
53. Regulation and development of oil fields and mineral oil/resources.
54. Regulation of mines and mineral development.
56. Regulation and development of inter -State rivers and river valleys.
57. Fishing and fisheries beyond territorial waters. 

List II (State List) Entries 

6. Public health and sanitation.
14. Agriculture .protection against past and prevention of plant diseases.
18. Land.colonisation .etc.
21. Fisheries.
23. Regulation of Mines and Mineral development subject to the provisions of
24. Industries 

List III (Common or Concurrent List) Entries

17- Forests.
17-B Protection and wild animals and birds.
20. Economic and social planning.
20-A Population control and family planning. 

The constitutional changes effected in the 7th Schedule by the 42nd Amendment Act, 1976 is a milestone steps, in the direction of the protection of environment. Because the subject of forests originally was in the State list as entry 19, this resulted into no uniform policy by the State so as to protect the forests. By placing the item 'forest' now in the concurrent list by the entry 17-A, along with the State, Parliament has acquired a law making power. 

Because of the above change, in order to have a uniform policy in the forest management the Government of India in the year 1980 set up the Ministry of Environment and Forests. By virtue of this change Parliament also enacted, the central legislation i.e. Forest Conservation Act, 1980, which was amended in 1988. The government also adopted the new National Forest Policy in 1988 with a twin object. One to protect the forests and another to consider the needs of the forest dwellers. 

Similarly the insertion of the entry 17-B in the concurrent list has empowered the Parliament to enact a law with a view to protection of wild animals and birds. Although we had a comprehensive legislation in the form of Wildlife Protection Act of 1972 the 42nd Amendment has considered the wildlife along with forests. India has also formulated National Action plan for the Protection of wild life. The new entry 20 A in the concurrent list embowers the Parliament to regulate the population explosion one, of the prime cause of the environmental pollution. By these changes, legally and constitutionally it has become possible to lake a uniform action in the matters of proper management of the environment.

  

Fundamental Rights 

The judiciary's dynamic interpretation of fundamental rights have regulated into the rights to healthy environment from the following Articles:
(a) Article 14: "State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India".

(b)Article 15(2) prohibits discrimination on the ground of sex, race, religion, caste, place of birth etc. to make use of the public places the general public. The public places, which are part and parcel of the human environment should be made available to the public. The preamble to our constitution ensures socialistic pattern of the society and decent standard of life, which can be pollution free environment.
(c) Article 19 (6): State is empowered to make any law imposing in the interests of the general public, reasonable restrictions on the exercise of freedom to practice any profession, or to carry on any occupation, trade or business. Guaranteed by (1) (g).
(d) Article 21: "No person shall be deprived of his life or personal liberty except according to procedure established by law".

(e) Article 24: “No child below the age of 14 years shall be employed to wok in any factory or mine or engaged in any other hazardous employment” this provisions is certainly in the interest of public health and part of the environment.  

The constitutional provisions are backed by a number of laws – acts, rules, and notifications 

Following is a list of the environmental legislations that have come into effect:

General

1986 - The Environment (Protection) Act authorizes the central government to protect and improve environmental quality, control and reduce pollution from all sources, and prohibit or restrict the setting and /or operation of any industrial facility on environmental grounds.

1986 - The Environment (Protection) Rules lay down procedures for setting standards of emission or discharge of environmental pollutants.

1989 - The objective of Hazardous Waste (Management and Handling) Rules is to control the generation, collection, treatment, import, storage, and handling of hazardous waste.

1989 - The Manufacture, Storage, and Import of Hazardous Rules define the terms used in this context, and sets up an authority to inspect, once a year, the industrial activity connected with hazardous chemicals and isolated storage facilities.

1989 - The Manufacture, Use, Import, Export, and Storage of hazardous Micro-organisms/ Genetically Engineered Organisms or Cells Rules were introduced with a view to protect the environment, nature, and health, in connection with the application of gene technology and microorganisms.

1991 - The Public Liability Insurance Act and Rules and Amendment, 1992 was drawn up to provide for public liability insurance for the purpose of providing immediate relief to the persons affected by accident while handling any hazardous substance.

1995 - The National Environmental Tribunal Act has been created to award compensation for damages to persons, property, and the environment arising from any activity involving hazardous substances.

1997 - The National Environment Appellate Authority Act has been created to hear appeals with respect to restrictions of areas in which classes of industries etc. are carried out or prescribed subject to certain safeguards under the EPA.

1998 - The Biomedical waste (Management and Handling) Rules is a legal binding on the health care institutions to streamline the process of proper handling of hospital waste such as segregation, disposal, collection, and treatment.

1999 - The Environment (Siting for Industrial Projects) Rules, 1999 lay down detailed provisions relating to areas to be avoided for siting of industries, precautionary measures to be taken for site selecting as also the aspects of environmental protection which should have been incorporated during the implementation of the industrial development projects.

2000 - The Municipal Solid Wastes (Management and Handling) Rules, 2000 apply to every municipal authority responsible for the collection, segregation, storage, transportation, processing, and disposal of municipal solid wastes.

2000 - The Ozone Depleting Substances (Regulation and Control) Rules have been laid down for the regulation of production and consumption of ozone depleting substances.

2001 - The Batteries (Management and Handling) Rules, 2001 rules shall apply to every manufacturer, importer, re-conditioner, assembler, dealer, auctioneer, consumer, and bulk consumer involved in the manufacture, processing, sale, purchase, and use of batteries or components so as to regulate and ensure the environmentally safe disposal of used batteries.

2002 - The Noise Pollution (Regulation and Control) (Amendment) Rules lay down such terms and conditions as are necessary to reduce noise pollution, permit use of loud speakers or public address systems during night hours (between 10:00 p.m. to 12:00 midnight) on or during any cultural or religious festive occasion

2002 - The Biological Diversity Act is an act to provide for the conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of the benefits arising out of the use of biological resources and knowledge associated with it 

Forest and wildlife

1927 - The Indian Forest Act and Amendment, 1984, is one of the many surviving colonial statutes. It was enacted to 'consolidate the law related to forest, the transit of forest produce, and the duty leviable on timber and other forest produce’.

1972 - The Wildlife Protection Act, Rules 1973 and Amendment 1991 provides for the protection of birds and animals and for all matters that are connected to it whether it be their habitat or the waterhole or the forests that sustain them.

1980 - The Forest (Conservation) Act and Rules, 1981, provides for the protection of and the conservation of the forests. 

Water

1882 - The Easement Act allows private rights to use a resource that is, groundwater, by viewing it as an attachment to the land. It also states that all surface water belongs to the state and is a state property.

1897 - The Indian Fisheries Act establishes two sets of penal offences whereby the government can sue any person who uses dynamite or other explosive substance in any way (whether coastal or inland) with intent to catch or destroy any fish or poisonous fish in order to kill.

1956 - The River Boards Act enables the states to enroll the central government in setting up an Advisory River Board to resolve issues in inter-state cooperation.

1970 - The Merchant Shipping Act aims to deal with waste arising from ships along the coastal areas within a specified radius.

1974 - The Water (Prevention and Control of Pollution) Act establishes an institutional structure for preventing and abating water pollution. It establishes standards for water quality and effluent. Polluting industries must seek permission to discharge waste into effluent bodies.The CPCB (Central Pollution Control Board) was constituted under this act.

1977 - The Water (Prevention and Control of Pollution) Cess Act provides for the levy and collection of cess or fees on water consuming industries and local authorities.

1978 - The Water (Prevention and Control of Pollution) Cess Rules contains the standard definitions and indicate the kind of and location of meters that every consumer of water is required to affix.

1991 - The Coastal Regulation Zone Notification puts regulations on various activities, including construction, are regulated. It gives some protection to the backwaters and estuaries.

Air

1948 – The Factories Act and Amendment in 1987 was the first to express concern for the working environment of the workers. The amendment of 1987 has sharpened its environmental focus and expanded its application to hazardous processes.

1981 - The Air (Prevention and Control of Pollution) Act provides for the control and abatement of air pollution. It entrusts the power of enforcing this act to the CPCB .

1982 - The Air (Prevention and Control of Pollution) Rules defines the procedures of the meetings of the Boards and the powers entrusted to them.

1982 - The Atomic Energy Act deals with the radioactive waste.

1987 - The Air (Prevention and Control of Pollution) Amendment Act empowers the central and state pollution control boards to meet with grave emergencies of air pollution.

1988 - The Motor Vehicles Act states that all hazardous waste is to be properly packaged, labeled, and transported.

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Origins of Us

Origins of Us is a documentary series in which Dr Alice Roberts reveals how the body tells the story of human evolution. She looks at how the way people think, look and behave is a result of a six-million-year journey that took man from forest-dwelling apes to the most successful species living on the planet.Origins of Us tells the story of our species, homosapiens. In every one of our bodies is the evidence of how we evolved away from our ape cousins to become the adaptable, successful species we are today.

Anatomist and physical anthropologist Dr Alice Roberts reveals the key adaptations in our body that has contributed to our extra-ordinary success. Far from being inevitable, the evolution of our species is a product of pure chance. And with each anatomical advantage comes a cost, which many of us are still paying today. Bad backs, painful childbirth, impacted wisdom teeth are all a by-product of our evolutionary success.

This is a journey through your own body, 6 million years and 300 000 generations of our family, from a tree dwelling ape in the forests of Africa, to you and the six billion other humans on Earth today.

Episodes

Bones 

Bones : In the first episode, Dr Alice Roberts looks at how our skeleton reveals our incredible evolutionary journey.

Guts

Guts : In this second episode Dr Alice Roberts charts how our ancestors’ hunt for food has driven the way we look and behave today – from the shape of our face, to the way we see and even the way we attract the opposite sex.

Brains 

Brains : In the final episode Dr Alice Roberts explores how our species, homo sapiens, developed our large brain; and asks why we are the only one of our kind left on the planet today?

Indian Constitution - The Basic Structure

 The Basic Structure doctrine is an Indian judicial principle that the Constitution of India has certain basic features that cannot be altered or destroyed through amendments by the parliament.

Introduction 

There has been a historical controversy as to whether an amendment of the constitution made in the manner provided for under Article 368 must have to conform to the requirements of Article 13 or in other  words,whether constitution amendment act would be void if it seeks to take away or is is inconsistent with a fundamental right enumerated in part III of the constitution.The question whether fundamental rights can be amended under article 368 came for consideration in the Supreme Court in Shankari Prasad case.In this case validity of constitution (1st amendment) act, 1951 which inserted inter alia , articles 31-A and 31-B of the constitution was challenged. The amendment was challenged on the ground that it abridges the rights conferred by part III and hence was void. The Supreme Court however rejected the above argument and held that  power to amend including the fundamental rights is contained in Article 368 and the same view was taken by court in Sajjan Singh case.In both cases, the power to amend the rights had been upheld on the basis of Article 368.

In 1967, in Golak Nath vs. The State of Punjab,the validity of 17th Amendment which inserted certain acts in Ninth Schedule was again challenged.A bench of eleven judges (such a large bench constituted for the first time) of the Supreme Court deliberated as to whether any part of the Fundamental Rights provisions of the constitution could be revoked or limited by amendment of the constitution. The Supreme Court ruled the parliament had no power to amend Part III of the constitution and overruled its earlier decision in Shankari Prasad and Sajjan Singh case.Chief Justice Subha Rao in effect ruled that Fundamental Rights cannot be abrogated even by an amendment of the Constitution because amendments are also laws within the meaning of Article 13.Therefore, amendments which "take away or abridge" the Fundamental Rights provisions cannot be passed.The shift in the Court's perception can be understood only in terms of the socio-political developments of the times.In order to remove difficulties created by the decision of SC in Golak Nath case parliament enacted the 24th Amendment act.  

Six years later in 1973, 25th Amendment act made by the parliament was challenged in the court along with the 24th and 29th Amendments.Thirteen judges of the Supreme Court, including then Chief Justice Sikri, heard arguments in Kesavananda Bharati vs The State of Kerala (1973) and thus considered the validity of the 24th, 25th and 29th amendments, and more basically the correctness of the decision in the Golak Nath case. This time, the court held, by the thinnest of margins of 7-6, that although no part of the constitution, including fundamental rights, was beyond the amending power of Parliament (thus overruling the 1967 case), the "basic structure of the Constitution could not be abrogated even by a constitutional amendment".The Supreme Court recognized Basic Structure concept for the first time in the historic Kesavananda Bharati case in 1973.

The basic structure doctrine was further clarified by Supreme Court in Minerva Mills v. Union of India (case citation: AIR 1980 SC 1789). The Constitution (Forty-Second Amendment) Act had been enacted by the 

government of Indira Gandhi in response to the Kesavananda judgment in an effort to reduce the power of the judicial review of constitutional amendments by the Supreme Court. In the Minerva Mills case, Nani Palkhivala successfully moved the Supreme Court to declare sections 4 & 55 of the 42nd amendment as unconstitutional.Chief Justice Yeshwant Vishnu Chandrachud explained in the Minerva Mills judgment that since the power of Parliament to amend the constitution was limited, as had been previously held through the basic structure doctrine in the Kesavananda case, the parliament could not by amending the constitution convert this limited power into an unlimited power (as it had purported to do by the 42nd amendment).In addition, the court also ruled that the parliament's "power to amend is not a power to destroy". Thus the parliament did not have the power emasculate the fundamental rights of individuals, such as the right to liberty and equality.

The Supreme Court has refused to foreclose its list of 'Basic Features'.From various decisions and judgements so far,the following list may be drawn up : 

1.Supremacy of constitution
2.Rule of Law
3.The Principle of separation of powers
4.Objectives specified in the preamble of constitution
5.Judicial Review
6.Federalism
7.Secularism (declared a basic feature in the S.R. Bommai Case)
8.The Sovereign,Democratic, Republican Structure
9.Freedom and Dignity of the individual
10.Unity and integrity of the nation
11.Principle of Equality
12.Social Justice
13.Free and fair elections
14.Independence of Judiciary
15.Effective access to Justice
16.Presumably, socialism as interpreted by the Supreme Court in the nationalization era is also a basic feature.  

What is the core concern of the doctrine of basic structure of the Constitution? What is its singular objective?

Since this doctrine emerged as an antidote to parliament’s unlimited amending power, we may crystallize the core concern of the basic structure doctrine by stating: 

The Parliament’s amending power under Article 368, in pursuance of Article 31B read with the Ninth Schedule of the constitution, granting that it has the power to amend every part of the Constitution, including Part III that incorporates fundamental rights, cannot be absolute, unlimited, uncontrolled or uncontrollable.

What are the rationale for reaching this principle?  

In the light of the ‘concerns’ reflected in the post-Kesavananda Bharati cases,19 at least the following four rationale may be culled out:

The first rationale of limiting the unlimited amending power of Parliament under the basic structure doctrine flows from the principle of separation of powers, invariably sanctified through the written Constitution. This principle gives effect to the strategy of checks and balances. It is a strategy to preserve liberty and protection against tyranny. In functional terms, it means that there is a diffusion of power by dispersing it amongst the three centres of decision-making,namely, legislature, executive, and judiciary. Each one of these is quite independent of the others in one’s own area demarcated by the Constitution. Under this separation of power principle, the review-role of the exercise of amending power by the legislature, usually propped up by the executive, is clearly entrusted to the judiciary. On this score,the principle of separation of powers is well entrenched and there does not seem to be any disagreement.

The second rationale of limited amending power is that under article 368 the power of amending the Constitution is not truly and essentially a ‘constituent power’ – the ‘plenary’ or ‘absolute’ power, which is
exercised to make or unmake a Constitution, a power that has “no limitations or constraints.” Such a power was vested, for instance,in the Constituent Assembly, which framed our Constitution in the first
instance.

The third rationale of limiting the amending power is that the very idea of ‘amendment’ carries its own rough and ready measure. Such a measure was deciphered by the Supreme Court in Waman Rao31 by
invoking the analogy of ‘permissibility of an amendment of a pleading’,that is, how far the amendment of a pleading is consistent with the original. In this respect, emphasized the apex court, you cannot by an
amendment transform the original into opposite of what it is.

The fourth rationale of the core concern of the basic structure doctrine is the ‘Judicial Review’, which is its integral or inseparable part. In this sense, without judicial review, the basic structure doctrine
is simply inoperable or non-functional. That is, by taking away the component of judicial review, we would be denying the very existence of the doctrine of basic structure, which is simply impermissible.

Principally, the basic structure doctrine is conceived in terms of certain basic principles or values underlying the basic document, namely,the Constitution.

What are these principles or values on the basis of which the structure of the Constitution itself has been raised? 

By implication, such principles or values may be termed as ‘preconstitutional’.

What are these values ?

The ‘pre-constitutional’ values are universally perceived in terms of certain ‘basic human rights’ that are considered essential for the very existence of a human being. These are assumed and assimilated as some “intrinsic” or “foundational” values, which exist as such in the scheme of nature. Such values are not “a gift from the State to its citizens,” but exist “independently of any constitution by reason of the fact that they are members of human race.” These are invariably crystallized in the Constitution in the form of fundamental rights, which “occupy a unique place in the lives of civilized societies.” This is the perspective with which the apex court has expounded the nature of fundamental rights contained in part III of our Constitution as the very basis of the basic structure principle. 

Criticism :

Presumably, socialism as interpreted by the Supreme Court in the nationalisation era is also a basic feature.If so, it may raise several questions for policy-planners now involved in disinvestment and privatisation, which the court alone can clarify.Judicial review and judicial independence are considered part of "basic features." When the court claims exclusive jurisdiction in deciding judicial appointments to superior courts, interpreting the written text that way, and limits power expressly given to the Executive by the Constitution, it is legitimate to ask whether we are heading for an arrangement contrary to the spirit of parliamentary democracy and concentration of unfettered power in one institution which, incidentally, is not an elected body.Can one proceed on the assumption that judges cannot go wrong and what they decide would always be in the best interests of the people? Or is it that people themselves do not know their interests and they need to be told by an expert body? These are discomforting questions that loom large in the whenever controversial decisions on popular issues are rendered by the court. 
 

South China Sea Dispute

What is the South China Sea Dispute ?

It is a dispute over territory and sovereignty over ocean areas and the Paracels and the Spratlys - two island chains claimed in whole or in part by a number of countries. Alongside the fully fledged islands, there are dozens of uninhabited rocky outcrops, atolls, sandbanks and reefs, such as the Scarborough Shoal.

Who claims what?

China claims by far the largest portion of territory - an area stretching hundreds of miles south and east from its most southerly province of Hainan. Beijing has said its right to the area come from 2,000 years of history where the Paracel and Spratly island chains were regarded as integral parts of the Chinese nation.

In 1947 China issued a map detailing its claims. It showed the two island groups falling entirely within its territory. Those claims are mirrored by Taiwan, because the island considers itself the Republic of China and has the same territorial claims.

Vietnam hotly disputes China's historical account, saying China never claimed sovereignty over the islands until the 1940s. Vietnam says both island chains are entirely within its territory. It says it has actively ruled over both the Paracels and the Spratlys since the 17th Century - and has the documents to prove it.

The other major claimant in the area is the Philippines, which invokes its geographical proximity to the Spratly Islands as the main basis of its claim for part of the grouping.

Both the Philippines and China lay claim to the Scarborough Shoal (known as Huangyan Island in China) - a little more than 100 miles (160km) from the Philippines and 500 miles from China.

Malaysia and Brunei also lay claim to territory in the South China Sea that they say falls within their economic exclusion zones, as defined by the United Nations Convention on the Law of the Sea in 1982. Brunei does not claim any of the disputed islands, but Malaysia claims a small number of islands in the Spratlys.

How much trouble does the dispute cause?

The most serious trouble in recent decades has flared between Vietnam and China. The Chinese seized the Paracels from Vietnam in 1974, killing more than 70 Vietnamese troops. In 1988 the two sides clashed in the Spratlys, when Vietnam again came off worse, losing about 60 sailors.The Philippines has also been involved in a number of minor skirmishes with Chinese, Vietnamese and Malaysian forces.The most recent upsurge in tension has coincided with more muscular posturing from China. Beijing officials have issued a number of strongly worded statements, including warning their rivals to stop any mineral exploration in the area.The Philippines has accused China of building up its military presence in the Spratlys. The two countries have engaged in a maritime stand-off, accusing each other of intrusions in the Scarborough Shoal. Chinese and Philippine vessels refuse to leave the area, and tension has flared, leading to rhetoric and protests.Unverified claims that the Chinese navy deliberately sabotaged two Vietnamese exploration operations has led to large anti-China protests on the streets of Hanoi and Ho Chi Minh City.Vietnam has held live-fire exercises off its coast - an action that was seen as a gross provocation by Beijing.

Is anyone trying to resolve the row?

Over the years, China has tended to favour arrangements negotiated behind closed doors with the individual leaders of other countries. But the other countries have pushed for international mediation.So in July 2010, when US Secretary of State Hillary Clinton became involved in the debate and called for a binding code of conduct, China was not pleased. The Chinese Foreign Ministry dismissed her suggestion as an attack on China.Agreements such as the UN's 1982 convention appeared to lay the framework for a solution. But in practice, the convention led to more overlapping claims, and did nothing to deter China and Vietnam in pressing their historical claims.Both the Philippines and Vietnam have made bilateral agreements with China, putting in place codes of conduct in the area. But the agreements have made little difference.
The regional grouping Asean - whose membership includes all of the main players in the dispute except China and Taiwan - concluded a code of conduct deal with China in 2002.Under the agreement, the countries agreed to "resolve their territorial and jurisdictional disputes by peaceful means, without resorting to the threat or use of force, through friendly consultations and negotiations".But recent events suggest that Vietnam and China at least have failed to stick to the spirit of that agreement. And Asean continues to discuss new ideas for resolving the dispute.

India and South China Sea

China’s hard line on the South China Sea(SCS) has affected India too. New Delhi was a bit taken aback after Beijing denounced plans by an Indian Company to develop oil fields in the region. The Chinese objection was to ONGC Videsh’s (OVL) venture for off-shore oil exploration in water’s belonging to Vietnam (not recognized by China), Beijing urged India to refrain from entering into deals with Vietnamese firms exploring oil and gas in the disputed SCS over which China enjoys ‘indisputable’ sovereignty.However, while China opposes India’s entry into the SCS, it insists on building strategic projects in Pakistan occupied Kashmir (POK) and on deploying troops there. There were recently unconfirmed reports of confrontation between the Chinese warship and INS Airavat in the international waters of SCS. India has responded to Chinese objections by stating that its cooperation with Vietnam is in accordance with international laws.

The afore-stated developments need to be seen in the context of India’s stated naval doctrine. The Indian Navy document (2007) “Freedom to use the Seas: India’s Maritime Military Strategy”, lays down clearly that India's area of interest which “extends from the north of the Arabian Sea to the South China Sea''. In the 2010 ARF meeting, India was among 12 (of 27 participating countries) that backed the United States’ multilateral approach, instead of China’s “bilateral approach” for resolution of the SCS disputes. During the 17th ARF meeting, India joined other countries to openly declare that the SCS should remain open for international navigation. 

India has a strong interest in keeping sea lanes open in the South China Sea . The SCS is not only a strategic maritime link between the Pacific and the Indian Oceans, but also a vital gateway for shipping in East Asia. Almost, 55% of India’s trade with the Asia Pacific transits through the SCS. Apart from helping secure energy supplies for countries like Japan and Korea, India has the unique distinction of shipping oil from Sakhalin to Mangalore through sea routes of the region. Therefore, it is vital for India to have access to the region. If China continues to assert dominance over these waters, it will be difficult for India to continue with its activities through this channel. New Delhi realizes, now more than ever, that capacity building and maritime cooperation between India and ASEAN will be the key to stability in the region. It is important for India to sustain its position in the South China Sea.

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