Newspaper Reading: Class 2 - 03/07/2021



From UPA to NDA:
UPA: United Progressive Alliance (Congress + Alliance).
Period: 2004 to 2014.
Prime Minister: Manmohan Singh.

NDA: National Democratic Alliance (BJP + Alliance).
Period: 2014 to present day.
Prime Minister: Narendra Modi.

Important schemes and events during UPA Government:
• 2005 - RTI Act, MGNREGA.
• 2007 - On going Talks of Rafale aircrafts.
• 2008 - After Mumbai attack, lot of reforms and through U.S. model - National Counter Terrorism were brought up.
• 2010 - Aadhar card - UIDAI - Basic Identity of Indians introduced.

May 26, 2014 - Beginning of NDA:
• Narendra Modi, who was elected as the Chief Minister of Gujarat, became the Prime Minister - formed NDA (National Democratic Alliance).
• Invited the 8 SAARC countries in the ceremony. This shows that they give more importance to foreign affairs, so that they don't need to worry about the cross-border terrorism by the neighboring countries by maintaining a friendly relationship with them.

Important schemes and events NDA Government:
• Telangana has been announced as a state in 2nd June, 2014.
• NITI Aayog (National Institution for Transformation of India), an advisory organization formed for assisting in planning and proceedings of the implementation of schemes. E.g.: While Artificial Intelligence brings unemployment in some sectors, at which sector and when should AI be implemented ? This needs an analysed suggestion which will be given by NITI Aayog.
• Many schemes such as Make in India, New India, Clean India, Pradhan Mantri Garhib Kalyan Yojana (PMGKY), One Nation One Ration, Smart City, Crop insurance schemes, etc., were introduced.

Rafale Aircrafts:
Need of Aircrafts?
• The country's defence forces such as the Army, the Air Forces, the Navy, which are headed by the President of India, are more important for National Security and Disaster Management.
• After Independence ('drain of India' by British rule), India suffered from poverty, unemployment, lower literacy rate etc. At that time India depended on the U.S. for food security. Then India became self-sufficient, started green revolution, developed PDS, and now started One Nation One Ration scheme.
• Similarly India was traditionally dependent on Russia (MiG) for defence equipments. During the period of UPA Government, they found the need for modernizing their air forces as the neighboring countries developed their air force technologies. But traditional partner, Russia's MiG was not reliable
• In 2007, there were talks with U.S. (Boeing Aircrafts), France (Rafale-Dassault), Europian Union (Typhoon Aircrafts) offered through middlemen.

Why Rafale?
• Rafale was selected on the basis of features and cost through middlemen.
• Only in 2012, UPA Government decided to purchase Rafale aircrafts (126 aircrafts were to be purchased).
• Out of which 18 aircrafts were to be purchased as ready-to-use and 108 aircrafts were to be produced in India by Hindustan Aeronautical Limited with the help of Dassault Aviation through transfer of technology.
Associated Issues: Need for the 5 year-long gap and corruption involved through middlemen.

Rafale through NDA:
• The NDA Government blamed the UPA Government for the corruption involved in purchasing Rafale aircrafts.
• In 2015, the NDA Government cancelled all the Rafale deal with France made by the UPA Government. But the Chief of the Air Force chose Rafale as a better aircraft.
• In 26th Jan 2016, (on Republic day), the President of France, François Hollande was invited. India and France officially signed Rafale deal through Intergovernment Agreement.
• This Agreement was made to purchase 36 ready-to-use Rafale aircrafts at a price of Rs. 59,000 crore. No middlemen were involved in this Agreement.

Opposition by UPA Government (2017 - 2018):
• There was a contradiction between introduction of 'Make in India' scheme and purchasing Rafale from France.
• Cost of 36 aircrafts (Rs. 59,000 crore) was higher than 126 aircrafts by UPA Government.
• Lack of transparency.
• Reason for the involvement of Reliance Defence and why not Hindustan Aeronautical Limited.
• UPA Government accused NDA Government of involving corruption in Rafale deal and filed a case in Supreme Court.

Clarifications by NDA Government:
• Under the offset clause, a foreign company that wins a defence deal is supposed to invest a part of the contract value in the country, thus developing skills and bringing in technology, while also generating employment.
• Hence under offset clause, 30% to 50% of the Rs. 59,000 crore will be invested in India to provide spare parts to Dassault Aviation to assemble and build aircrafts.
• Dassault Aviation announced that Hindustan Aeronautical Limited was not equipped to do this job and hence Reliance defence was chosen.
• Higher cost was due to the specific provisions made to the aircrafts that was kept as a defence secret.
• In 2019, Supreme Court announced that there were no evidence of corruption involved.

Need for Defence Manufacturing Industry in India:
• Higher concerns for National Security.
• Ongoing disputes with Pakistan and China.
• India is one of the top importers of defence equipments.

May 12, 2020 - 'AatmaNirbhar Bharat' - Self-Reliant India was formed.

Credits: Leo Subheksha Kumar
Economy Module 2 Class 3- 19/02/2022