Introduction

On December 2, 2024, the Indian government withdrew the windfall gains tax on domestic crude oil production and fuel exports (diesel, petrol, and aviation turbine fuel - ATF). This tax, initially imposed in July 2022, was introduced in response to the surge in global oil prices following Russia's invasion of Ukraine. Its removal reflects the current global oil market stability and the improved fuel supply situation in India.

What is Windfall Gains Tax?

Definition

A windfall tax is a levy imposed on unexpected profits that result from extraordinary events, such as geopolitical crises or market disruptions. In the case of India, the tax was applied to the super-normal profits of oil producers and fuel exporters due to the global energy turmoil.

Key Features

• Domestic Crude Oil: The Special Additional Excise Duty (SAED) was imposed on domestic crude oil production.
• Fuel Exports: A combination of SAED and Road and Infrastructure Cess (RIC) was levied on diesel, petrol, and ATF exports.

Rationale Behind the Windfall Gains Tax

Immediate Context

The tax was introduced during a period of soaring global crude oil prices, driven by the Russia-Ukraine conflict. India, which imports over 85% of its oil, faced concerns about the availability of fuels and the impact of rising prices on domestic consumption. The tax was seen as a way to:

• Ensure Domestic Fuel Supply: By discouraging excessive fuel exports during a period of global supply chain disruptions.
• Increase Government Revenue: The tax aimed to capture windfall profits and offset the duty cuts on domestic fuel sales.

Global Context

Other countries also implemented similar windfall taxes during this period, as energy companies saw record profits due to the price surge.

Decline in Windfall Gains Tax Revenue

Revenue Collection

The windfall gains tax initially raised significant revenue, but the amount has decreased over time due to falling global oil prices:

• FY 2022-23: Rs 25,000 crore
• FY 2023-24: Rs 13,000 crore
• FY 2024-25 (so far): Rs 6,000 crore

This decline, combined with reduced oil prices, led to the tax being effectively inactive before its formal withdrawal.

Withdrawal of the Windfall Gains Tax

Reasons for the Withdrawal

• Global Stabilization: Crude oil prices, which had exceeded $100 per barrel, have now stabilized under $75 per barrel, with no immediate signs of a significant price surge.
• Domestic Fuel Availability: There is now a robust fuel supply in the domestic market, making the tax less necessary.
• Declining Revenues: With the tax generating diminishing returns, it was no longer economically viable for the government to maintain it.

Impact of the Scrapping

The government's move to scrap the windfall gains tax is seen as a signal of stability and predictability in the taxation regime. It assures the oil industry that the government is confident in the stability of global oil prices and supply chains.

Criticism of the Windfall Tax

Industry Opposition

The windfall tax faced opposition from the oil industry, which argued that it:

• Reduced Profitability: The tax limited the profits of publicly listed companies like ONGC and Reliance Industries.
• Discouraged Oil Production: By making the taxation environment unpredictable, it deterred investment in oil exploration and production in a country that is heavily dependent on oil imports.
• Created Uncertainty: Frequent revisions of the tax led to an unstable business environment.

Conclusion

The scrapping of the windfall gains tax is a significant policy shift. It not only provides relief to oil companies but also signals a more predictable and stable taxation regime. By withdrawing the tax, the government is fostering a conducive environment for future investments in domestic oil production and signaling its confidence in the stability of global oil prices. This move is a crucial step in ensuring that India’s energy policies remain adaptable and aligned with the evolving global market conditions.

In News:

The Central Armed Police Forces (CAPFs) of India, comprising forces like CRPF, BSF, CISF, and others, play a crucial role in maintaining internal security. Women’s participation in these forces has been historically limited, but recent efforts have focused on increasing their representation. As of 2024, women constitute only 4.4% of the total personnel in CAPFs, highlighting the slow progress despite various initiatives.

Current Representation and Changes Over Time

• Overall Representation: Women make up 4.4% of the 9.48 lakh-strong CAPFs. Within this, the Central Industrial Security Force (CISF) has the highest representation at 7.02%, followed by the Sashastra Seema Bal (SSB) at 4.43%, Border Security Force (BSF) at 4.41%, Indo-Tibetan Border Police (ITBP) at 4.05%, Assam Rifles at 4.01%, and Central Reserve Police Force (CRPF) at 3.38%.
• Growth of Women Personnel: From 15,499 women in 2014, the number has tripled to 42,190 in 2024, reflecting a steady increase in recruitment. However, the percentage remains low despite these gains.
• Recruitment Trends: In 2024, 835 women were recruited, with 5,469 more in the process. In 2025, 4,138 women are expected to be recruited.

Government Efforts and Parliamentary Committee Recommendations

• Policy Measures: The government has introduced several steps to encourage women’s participation in CAPFs, such as reservations in constable-level positions: one-third for CRPF and CISF, and 14-15% for border forces like BSF, SSB, and ITBP.
• Challenges in Recruitment: Despite these policies, recruitment has not kept pace with the targets. The 2022 Parliamentary Committee on Home Affairs expressed disappointment over the “abysmally low” number of women in CAPFs, noting that women made up only 3.68% of the forces at that time.
• Recommendations by Parliamentary Committees:
  • The Home Affairs Committee recommended fast-tracking phase-wise recruitment of women, particularly in CISF and CRPF.
  • The Standing Committee on Personnel (2023) suggested “soft postings” for women to avoid difficult working conditions, especially in remote or strenuous terrains. It also called for reservations for transgender individuals.
  • In 2024, further steps like fee waivers, relaxed physical standards, and provisions for maternity and child care leave were introduced to make the work environment more inclusive.

Reasons Behind Low Representation

• Cultural Barriers: Traditional gender roles and societal expectations deter many women from pursuing careers in security forces.
• Work Environment: The demanding nature of the job, which includes postings in remote areas and high-risk operations, makes it less appealing, especially for women with family responsibilities.
• Infrastructure Issues: Lack of adequate accommodation, sanitation facilities, and safety measures for women are deterrents to joining and retaining female personnel.

Conclusion and Future Outlook

Although the representation of women in CAPFs has seen improvement, it remains below expectations due to persistent challenges. The government’s continuous focus on recruitment reforms, better working conditions, and policy incentives will be crucial to achieve gender parity in these forces. As societal attitudes evolve and the infrastructure improves, more women may be encouraged to serve in these vital security roles. Future efforts must include targeted recruitment drives and creating a more inclusive and supportive environment to enhance women’s participation in CAPFs.

Introduction

India’s gig economy is experiencing rapid growth, with projections indicating it will significantly contribute to the national economy and employment generation. A recent report by the Forum for Progressive Gig Workers estimates the gig economy could reach $455 billion by the end of 2024, growing at a 17% compounded annual growth rate (CAGR). By 2030, it may add 1.25% to India’s GDP and create 90 million jobs.

What is the Gig Economy?

• Definition: The gig economy refers to a labor market based on short-term, flexible jobs, typically facilitated by digital platforms. Gig workers, also called freelancers or independent contractors, are compensated for each task they complete.
• Key Features:
  • Flexibility in work schedule and location.
  • Task-based employment through digital platforms.
  • Common sectors: e-commerce, transportation, delivery services, and freelance work.

Status of the Gig Economy in India

• Market Growth:
  • In 2020-21, India had 7.7 million gig workers, which is expected to grow to 23.5 million by 2029-30.
  • Key sectors contributing to growth include e-commerce, transportation, and delivery services.
• Driving Factors:
  • Digital Penetration: With over 936 million internet subscribers and 650 million smartphone users, digital infrastructure is a key enabler of the gig economy.
  • Startup and E-commerce Growth: The rise of startups and e-commerce platforms has increased demand for flexible labor.
  • Changing Work Preferences: Younger generations seek work-life balance, opting for flexible gig work.

Gig Economy and Employment Generation

• Contribution to GDP: The gig economy is expected to contribute 1.25% to India’s GDP by 2030.
• Job Creation:
  • The gig economy could create up to 90 million jobs by 2030.
  • It is estimated that by 2030, gig workers will comprise 4.1% of India’s total workforce.
• Benefits:
  • Women’s Empowerment: Gig work provides financial independence and flexibility, especially benefiting women in the workforce.
  • Regional Growth: Tier-II and Tier-III cities are seeing accelerated growth in gig work opportunities.

Challenges Faced by Gig Workers

• Job Insecurity: Many gig workers experience instability in their employment, especially in low-skilled jobs.
• Income Volatility: Earnings are unpredictable, and workers face difficulty in financial planning.
• Regulatory Gaps: There is no comprehensive legal framework to protect gig workers’ rights and ensure fair working conditions.
• Delayed Payments: A significant number of workers face delayed payments, affecting their financial well-being.
• Skill Development: Many workers report a lack of opportunities for career advancement and skill development.

Government Initiatives for Gig Workers

• Code on Social Security, 2020: Recognizes gig workers and aims to extend social security benefits, though it lacks comprehensive coverage.
• e-Shram Portal & Welfare Schemes: Initiatives like Pradhan Mantri Shram Yogi Maandhan Yojana and PMJJBY aim to provide financial security to gig workers.
• State-level Initiatives:
  • Rajasthan’s Platform-Based Gig Workers Act (2023) focuses on registration and welfare.
  • Karnataka’s bill mandates formal registration and grievance mechanisms.

The Way Forward

• Legal Reforms: India can draw from international models like California and the Netherlands, where gig workers are reclassified as employees to ensure protections such as minimum wages and regulated working hours.
• Portable Benefits System: Implementing a system where gig workers can access benefits like healthcare and retirement plans regardless of their employer.
• Skill Development: Strengthening collaborations with vocational institutions to enhance skills and improve earning potential.
• Technological Solutions: Establishing robust feedback mechanisms for workers to report exploitation and ensure fairness within the gig economy.

Conclusion

The gig economy in India is poised to become a significant driver of economic growth and job creation. However, addressing challenges such as income volatility, job insecurity, and regulatory gaps is crucial to ensuring sustainable growth.

Introduction

In response to the evolving threat of pandemics, NITI Aayog has released an Expert Group report titled "Future Pandemic Preparedness and Emergency Response — A Framework for Action." The report offers a strategic blueprint for India to enhance its pandemic preparedness, drawing from the lessons learned during the COVID-19 crisis and global best practices. This framework aims to create a rapid, well-coordinated response system for future public health emergencies.

Rationale Behind the Expert Group

The COVID-19 pandemic underscored the vulnerability of global and national health systems to emerging infectious diseases. As future pandemics are inevitable, especially with increasing zoonotic threats, India has taken a proactive step in planning for such eventualities. The WHO has warned that 75% of future pandemics may be zoonotic, caused by pathogens transmitted from animals to humans.

Key Findings from COVID-19 Response

India's response to COVID-19 highlighted several strengths and weaknesses in the public health system. Key efforts included developing vaccines, enhancing research and development frameworks, and deploying digital tools for data management across its 1.4 billion population. However, gaps were identified in governance, data management, and cross-sectoral coordination. These lessons have been integrated into the expert group’s framework for future preparedness.

The 100-Day Response Framework

A crucial aspect of the report is the emphasis on the first 100 days of a pandemic. The expert group argues that a rapid response within this period is essential for minimizing the impact of any outbreak. The framework outlines a detailed roadmap for preparedness, which includes tracking, testing, treating, and managing outbreaks efficiently. A robust system for quick deployment of countermeasures, including vaccines and treatments, is pivotal during these critical days.

Four Pillars of Pandemic Preparedness

The report's recommendations are organized around four pillars:

• Governance, Legislation, Finance, and Management:
  • Proposes a new Public Health Emergency Management Act (PHEMA) to address modern pandemic needs.
  • Creation of an empowered group of secretaries (EGoS) for rapid decision-making and coordination.
• Data Management, Surveillance, and Predictive Tools:
  • Calls for a unified data platform to aggregate and analyze data for timely decision-making.
  • Emphasizes strengthening genomic surveillance and establishing a national biosecurity network.
• Research, Innovation, and Infrastructure:
  • Recommends a high-risk innovation fund to support research on diagnostics, vaccines, and therapeutics.
  • Suggests enhancing manufacturing capacity and building biosafety containment facilities.
• Partnerships and Community Engagement:
  • Stresses the importance of private sector involvement and community engagement in managing pandemics.
  • Proposes a risk communication unit at the National Centre for Disease Control (NCDC) to manage public information and prevent misinformation.

International and National Collaboration

The report underscores the need for cross-border collaboration, aligning India’s efforts with international frameworks such as the WHO’s revised International Health Regulations and the Pandemic Accord negotiations. Collaboration with global institutions, academia, and the private sector is essential for sharing data, technology, and expertise during health crises.

Lessons from Past Epidemics

The report draws lessons from several past epidemics, including SARS, H1N1, and Ebola, which revealed the importance of timely diagnostics, coordinated surveillance, and rapid response. These lessons highlight the need for stronger international regulations, integrated data systems, and enhanced public-private partnerships in tackling future pandemics.

Conclusion and Recommendations

The framework offers actionable recommendations to strengthen India’s pandemic preparedness. From institutionalizing governance structures and creating a dedicated pandemic fund to enhancing surveillance and fostering innovation, these steps are designed to ensure rapid response and minimize the impact of future health crises. By focusing on governance, data management, research, and community partnerships, India aims to build a resilient health system capable of facing future challenges effectively.

In News:

In 2024, India has witnessed an alarming rise in cybercrime, particularly a new scam called "digital arrests." This type of fraud involves criminals impersonating law enforcement officials to extort money from victims. With more than 92,000 people targeted and ?2,141 crore defrauded from victims, these scams are rapidly becoming a significant concern for the public and law enforcement.

Nature of ‘Digital Arrests’

The modus operandi of digital arrest scams is sophisticated and emotionally manipulative. Cybercriminals contact victims through video calls, often using fake police officers' profiles and official documents to build credibility. They accuse victims of serious crimes such as money laundering or drug trafficking, claiming urgent action is needed to avoid arrest. The scammers create a false atmosphere of fear and urgency, convincing the victim to transfer large sums of money under the pretext of settling legal dues.

A notable example involves Ruchi Garg, who was targeted by scammers posing as police officers, falsely claiming her son was involved in a major scam. She was coerced into transferring ?80,000 before realizing it was a scam. Similar cases have affected hundreds, with perpetrators using AI-generated voices and fake visuals to amplify the deception.

The Growth of Cybercrime in India

Digital arrest scams are part of a broader increase in cybercrime in India. The Indian Cyber Crime Coordination Centre (I4C) has reported a rise in cyber fraud, with financial losses exceeding ?27,900 crore between 2021 and 2024. The most significant sources of these losses include stock trading scams, Ponzi schemes, and digital arrest frauds. As criminals adapt to emerging technologies and use social engineering tactics, the scale and complexity of scams are growing.

The surge in cybercrimes is fueled by vulnerabilities in India's digital landscape. With over 95 crore Internet users, many people, particularly the elderly or less tech-savvy, remain susceptible to such fraud. Cybercriminals often exploit this lack of awareness, combining fear and confusion to manipulate victims.

International Scope and Challenges

One of the challenges in combating digital arrests is the transnational nature of cybercrime. Scams often originate from countries like China, Cambodia, and Myanmar, where "scam compounds" run operations to train individuals in fraudulent techniques. These groups use virtual private networks (VPNs) and encrypted apps to conceal their identities and locations, making it difficult for Indian authorities to trace them.

Moreover, the involvement of mule bank accounts to launder defrauded money complicates investigations. Thousands of such accounts are identified and blocked regularly, but the flow of money continues through multiple channels, including cryptocurrencies.

Government Efforts and Preventive Measures

To address the growing menace of digital frauds, the Indian government has initiated several measures. The I4C, launched in 2020, aims to strengthen the response to cybercrimes by coordinating with various law enforcement agencies. The National Cyber Crime Reporting Portal allows citizens to report cyber fraud, while real-time alerts are sent to banks to prevent financial losses.

Additionally, the Cyber Crime Coordination Centre and other initiatives like Cyber Surakshit Bharat and CERT-In are working to enhance cybersecurity awareness and support victims. The Digital Personal Data Protection Act, 2023, also aims to regulate data security, which can reduce the sale of personal data on the dark web, a key enabler of these scams.

Conclusion

‘Digital arrests’ exemplify the evolving nature of cybercrimes in India. As digital threats become more complex and widespread, it is essential for citizens to remain vigilant and informed. Effective law enforcement, technological innovations, and public awareness are critical to reducing the impact of these scams and safeguarding the digital economy.